* From John Tillman at the Illinois Policy Institute…
In the past several days, the Illinois Policy Institute has been accused of introducing elements of incivility, aggression, and discord into Illinois’ public discourse. The accusers are uniformly tax-hiking lawmakers and their enablers in media.
Their accusations are false.
We are on record urging the members of our community to act with decency, civility, and candor — and we have an unblemished record of doing the same ourselves. This is not pro forma: it is central to our identity and mission.
In the aftermath of a destructive 32-percent income-tax hike, in a state budget that achieves nothing beyond worsening the already-staggering burden on Illinois families and taxpayers, the Springfield elites are desperate to talk about absolutely anything else. They know they are the epicenter and cause of a series of cascading failures that have engulfed our once-great and once-prosperous state.
The real threat is not to lawmakers who enact policies that drive out our jobs, impoverish our communities, and diminish our dreams. The real threat is to average Illinoisans who suffer the consequences of those lawmakers’ serial failures to responsibly govern. Illinoisans have a lot to be upset and even angered about. Yet even now, with one of America’s great states brought to the brink of insolvency and ruin, the overwhelming majority of Illinoisans are still showing more respect for their lawmakers than their lawmakers have shown them.
Click here for a reminder about their decency and civility.
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Stuff I just can’t quite believe
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* From Tio Hardiman’s LinkedIn page…
Message to the People,
Do not believe the recent poll that Chris Kennedy paid for to make his numbers look bigger than everybody else. Pritzker and Kennedy are not the only candidates in the race for Governor on the Democratic side. Tio Hardiman is currently polling at 18 percent and the numbers will continue to grow.
I’m not sure how he paid for that alleged poll because his campaign committee has been shut down since 2014.
* Moving right along…
Uh-huh. Sure.
* But I can buy into this one…
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Top Teamsters official indicted
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* Click here to read the indictment. Here’s the US Attorney’s office press release
A high-ranking official in a Chicago-area labor union threatened a local business with economic loss if it didn’t pay him quarterly cash payments of $25,000, according to a federal indictment returned today.
JOHN T. COLI SR. used the threat of economic harm to extort quarterly payments of $25,000 from a local company, according to the indictment. The attempted extortion occurred from approximately October 2016 to April 2017, while Coli served as President of Teamsters Joint Council 25, a labor organization that represents more than 100,000 workers in the Chicago area and northwest Indiana. The organization has approximately 26 local union affiliates, including Teamsters Local Union 727, where Coli also served as Secretary-Treasurer during the time period referenced in the indictment.
The indictment was returned today in U.S. District Court in Chicago. It charges Coli, 57, of Chicago, with one count of attempted extortion and five counts of demanding and accepting a prohibited payment as a union official. The indictment seeks forfeiture from Coli of at least $100,000.
Arraignment in federal court in Chicago will be held at a future time to be set by the Court.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.
According to the charges, Coli accepted a $25,000 cash payment on July 7, 2016; two cash payments totaling $25,000 on Oct. 4, 2016, and Nov. 29, 2016; and $25,000 cash payments on Dec. 22, 2016, and April 4, 2017. The indictment does not identify the individual who made the payments nor the company Coli allegedly extorted.
Coli previously served as International Vice President of the Central Region of the International Brotherhood of Teamsters, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Attempted extortion is punishable by a maximum penalty of 20 years in prison. Each count of demanding and accepting a prohibited payment is punishable by up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
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* But Moody’s is still out there…
They’re right, of course, about the prolonged “fiscal hangover” and the “disconcerting lack of consensus.”
*** UPDATE 1 *** Greg Hinz…
Despite the budget, “The state almost certainly (will) suffer an extended hangover” from two-year impasse that preceded it. “Revenue spent on servicing and retiring the roughly $15 billion in unpaid bills is unavailable for contribution to the state’s severely underfunded pension systems or to fund state services. It also crowds out fiscal capacity the state might otherwise use to accommodate a reduction in tax rates.”
“Nevertheless,” it concludes, “despite being fractured and delayed, passage of the budget represents an affirmation of lawmakers’ collective willingness to prioritize the state’s fundamental claims-paying ability at an investment-grade level.”
S&P’s action won immediate praise from Senate President John Cullerton. Said his spokesman, “The entire point of this balanced budget was to end the chaos and move the state toward the stability it desperately needs. Those efforts appear to have been recognized and appreciated, but obviously more work is needed to get Illinois back to greatness.”
No word yet from Rauner, who in recent days has lost or pushed out almost all of his media team, or House Speaker Michael Madigan.
*** UPDATE 2 *** Press release…
Speaker Michael J. Madigan issued the following statement Wednesday after Standard & Poor’s reacted positively to passage of a bipartisan balanced budget:
“S&P’s action today is a strong signal that the balanced budget enacted by Republicans and Democrats is an important step in the right direction. At the end of June, I wrote to the rating agencies and asked that they temporarily withhold judgment and give legislators more time to enact a budget, and I’m grateful for the legislators on both sides of the aisle who used this time to work together and make the difficult decisions needed to start getting Illinois back on track.
“There is more work to be done, and it’s clear from S&P’s statement that rating agencies, like all Illinois residents, are hoping Governor Rauner will work in good faith with legislators to address these challenges rather than rejecting compromise by turning further to the extreme right.”
*** UPDATE 3 *** Comptroller Susana Mendoza…
We can all be thankful that S & P recognized the brave votes by legislators of both parties to put our state back on the right path to fiscal responsibility. The markets can be confident the state will meet its obligations on debt service and pensions. Much more work is needed to fix the state’s finances — and Democratic and Republican legislators proved last week they can work together — with or without the governor — to get necessary reforms done.
Nothing yet from the governor’s office, which has been silent pretty much all week.
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* The Illinois Policy Institute’s Austin Berg writing in the Decatur Herald & Review…
The 2011 tax hikes passed on a straight party-line vote, with Democrat majorities in both chambers and a Democrat in the governor’s seat.
This time, 15 House Republicans rolled over for Madigan, allowing him to protect vulnerable Democrats. A lone Republican cast a “yes” vote on Madigan’s tax hike in the Senate, Dale Righter of Mattoon. Righter’s was the deciding vote that sent the tax hike to Gov. Bruce Rauner’s desk. He was also the deciding vote to override the governor’s veto.
Analysis of the House’s last-minute amendment to the budget revealed Righter was showered with $4.8 million in earmarks for his district.
Madigan wins again.
* From Dan Proft’s East Central Reporter newspaper…
State Sen. Dale Righter (R-Mattoon) made a trade.
He’d cast the decisive vote and give the Chicago Democrats what they wanted– large individual and business income tax hikes and a $700 million bailout for Chicago’s bankrupt public schools– if they would just agree to send a few more state dollars to his district.
And so it was.
Page 508 of House Speaker Michael Madigan’s 638-page budget lays out the $4,757,100 that Eastern Illinois University (EIU) in Charleston will receive “for remodeling of the HVAC in the Life Science Building and Coleman Hall.”
EIU will also get $59,282 “for upgrading the electrical distribution system” and and $10,790 “for renovating and expanding the (EIU) Fine Arts Center.”
All told, Righter received a little less than $5 million for EIU. And his vote will result in $5 billion more in tax dollars sent to Springfield from voters in his district and across the rest of Illinois.
* From the university’s website…
This project was originally appropriated in FY 2010 but is not yet funded. This request is to recognize the inflation needs for the project from the original request date.
The HVAC systems in the Life Science building (1963), the Life Science Annex building (1964), the Coleman Hall East building (1965) and the Coleman Hall West building (1968) are original equipment and are failing to provide adequate levels of comfort in seasonal service. Air handling units that fail to deliver acceptable indoor air quality compromise the normal delivery of education to our students. In addition, poor temperature control and air delivery are energy inefficient. Also, the building heating and chilled water distribution systems have experienced numerous leaks due to internal and external corrosion and thinning of pipe wall thickness. The deterioration has made the piping systems virtually impossible to repair due to insufficient pipe material remaining to thread. During the past several leak events, faculty offices had to be evacuated and important academic work interrupted. In the event of longer - term system outages, research occurring in the Life Sciences complex could be compromised. The building infrastructure requires an entire mechanical upgrade. [Emphasis added.]
Those HVAC systems are almost as old as I am.
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The budgetary fine print
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* This story is making the rounds on social media, but it’s not accurate…
When state lawmakers approved the Illinois budget last week that included a provision to raise the state income tax rate to one of the highest rates in the history of Illinois, state lawmakers, under the direction of Illinois House Speaker Michael Madigan (D), snuck in another tax increase, that will hit you every time you fill up your car or truck.
Yes, a gas tax increase of 5 cents a gallon. Rockford Senator Dave Syverson, took to social media on Monday night to remind his constituents that “back door gas tax increase” was approved. So how does this work, according to Syverson, the back door gas tax is:
a tax at the wholesale level, which raises the retail price. This move will add approximately 5 cents a gallon. ($95 million total)
Yet another reason why this budget plan was wrong.
So, if you fill up a 20 gallon tank when you go to fill up, it will add a $1.00 on to the average fill up. If you fill your car. If you fill up once a week, this new back door tax will add about $52 to you gasoline bill, every year. Truck divers and transportation companies will notice it even more as their gas consumption levels are much higher. Those costs, of course will be passed on to the cost of good the consumer will pay.
* This new law is actually about ethanol blends, not “pure” gasoline.
Current state law taxes “gasohol” (10 percent ethanol blends) on only 80 percent of the sales price. Biodiesel and E85 (85 percent ethanol) are exempt from all sales taxes.
All three sales tax incentives were scheduled to expire on December 31, 2018. If no legislative action was taken by then, all three fuels would be taxed at 100 percent of sale price.
The new law accelerates the sunset of the gasohol tax break to July 1 of this year. So, from here on out, 10 percent gasohol blends are taxed at 100 percent of purchase price.
So, if you don’t use gasohol (E10), you won’t see any price increase.
According to the Department of Revenue, 4.6 billion gallons of gasoline were sold in Illinois last year, compared to 5.1 billion gallons of gasohol and 517 million gallons of E85. Thanks to an eagle-eyed commenter, I now realize I misread that particular chart. That’s the fuel blending amounts. Thanks!
* The new law also extends the total sales tax exemption on biodiesel and E85 through the end of 2023. The ag community understandably likes the idea of extending these exemptions…
“One of those being that the biodiesel sales tax incentive was extended until 2023,” said Mark Gebhards, Illinois Farm Bureau’s executive director of governmental affairs and commodities. “The E-85 sales tax incentive was extended as well until 2023.”
The revenue bill also included a sunset provision on the E-10 sales tax incentive.
“So that was the trade-off of giving up something that at least from the renewable fuel industry, they feel that E-10 is well on its way and didn’t need the incentive that was needed for E-85 and biodiesel,” Gebhards said.
* Meanwhile…
The city of Chicago may be able to end junk status on much of its debt—potentially saving $100 million or more in interest charges each year—thanks to a clause that was quietly tucked into the state’s new budget.
The provision will allow home-rule entities such as Chicago to separate out money they get from the state from other receipts and use that dedicated revenue to pay for new debt, or to pay for retiring old debt.
The city now gets well over $1 billion from the state each year, including $630 million in sales taxes collected by the Illinois Department of Revenue on the city’s behalf, the $368 million city share of local income tax receipts, and $71 million in motor fuel taxes.
City officials hope the provision will allow them to save as much as 3 full percentage points—300 basis points—compared to what junk-level city general-obligation debt now costs. With more than $8 billion in outstanding general-obligation debt, the city would save $30 million a year on each $1 billion that could be refinanced, assuming it indeed can sell such “statutory lien” debt at the lower rates. […]
The Illinois Municipal League was aware of the provision and “didn’t have any issue with it,” according to Brad Cole, the league’s executive director. The provision mostly will affect Chicago, though some other large cities around the state could take advantage of the clause, he added.
* And…
Built into legislation that passed last week is a $293 million increase in the bonding capacity for the Metropolitan Pier & Exposition Authority. The agency maxed out its borrowing limit two years ago.
Despite a gargantuan long-term debt burden that totaled $3.7 billion as of June 2016, McPier officials plan to take advantage of the new line of credit immediately to change the way they pay for the 1,205-room Marriott Marquis hotel going up on the Near South Side convention campus.
The agency plans to sell the bonds “as soon as possible” and will use $250 million of the proceeds to repay its construction loan for the Marriott, said McPier Chief Financial Officer Larita Clark.
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Family PAC urges “sellout” phone calls
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* Family PAC describes itself as the “leading pro-family, anti-tax political action committee in Illinois.” From a member action alert…
Michael “Hinky Dink” Kenna, a Chicago Alderman of old, once said: “Chicago ain’t ready for reform.” Last week, aided and abetted by 10 “sellout” Republican House members, Illinois Democrats proved that “Illinois ain’t ready for reform”…despite the near bankruptcy status of state government.
Governor Rauner for 2 ½ years has demanded fundamental reforms in the way Illinois does business…runaway pension costs…an end to collection of public employee union dues by the state…ridiculous workmen’s compensation laws created to benefit trial lawyers, etc., etc., etc., etc.
Rauner was doggedly consistent. He would consider a modest tax increase in return for these and other badly needed reforms so that Illinois finally could be moving in the right direction and stop the mass exodus of taxpayers and businesses from our state.
As a result of the perfidy of 10 House Republicans who caved in to the “fake” budget and 32% tax increase dictated by Mike Madigan…the Governor’s veto of the tax increase was overridden by a single vote.
Here are the Republicans who must take personal responsibility for the “Illinois Train Wreck:” […]
Family-Pac worked to sustain the Governor’s veto. Last Wednesday, we made 25,000 calls to voters in these districts demanding support for the Rauner veto. Our Family-Pac lobbyist, Rev. Bob Vanden Bosch, encouraged pro-family legislators to support sustaining the Rauner veto. The “sellout” Republicans ignored us and their own constituents.
But don’t give up all hope for Illinois at least not yet. Here’s why: 1) We now have a great opportunity to replace each and every one of these “sellouts” with real pro-family conservatives next March (if not sooner). 2) In 2018, as the Madigan “fake” budget falls apart, Madigan will need to again seek help from Republicans as Illinois falls further into financial crisis.
Please call each of the “sellout” Republicans who made the “Illinois Train Wreck” possible. Say one word, “sellout,” and hang up the phone.
When the times get tough, the tough get going…so let’s get going. Grassroots power can still save Illinois.
Blessings,
Paul Caprio, Director of Family-Pac
Gee, that’ll be such fun for the secretaries who answer the phones.
Also, notice how Paul says Rauner would accept a “modest” tax increase, but then describes that exact same income tax hike as a “32% tax increase dictated by Mike Madigan.”
Not only that, but the bipartisan plan that passed didn’t include other revenue streams that the governor wanted, like a new tax on services and a tax on cable TV and streaming and a sugary beverage tax.
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* From the Illinois Policy Institute’s news service…
Three-quarters of Illinois’ state lawmakers will be accepting their per diem for last month’s 10-day special session, which will cost taxpayers at least $145,000.
According to a response to an Illinois News Network Freedom of Information Act request, of the 177 state lawmakers, only 46 denied the .39 cent-per-mile travel reimbursement and a $111 a day per diem for the special session that started June 20 and ended June 30. Although lawmakers were in Springfield for a few days in early July, they were not eligible for the per diem because that was not special session called by the governor.
Because the per diem and travel reimbursement vouchers have not been sent from the House and Senate to the comptroller’s office, the comptroller’s doesn’t have an exact total of what ultimately will be paid out to lawmakers from the 10-day special session.
But, excluding the 39 cent per mile travel reimbursement – which only covers one round trip per week – all state lawmakers who will accept the $111 per day per diem will cost taxpayers at least $145,410 for last month’s special session.
* Those who declined…
In the Senate (6 Democrats, 10 Republicans): Neil Anderson, R-Rock Island; Jason Barickman, R-Bloomington; Daniel Biss, D-Evanston; Dale Fowler, R-Harrisburg; David Koehler, D-Peoria; Andy Manar, D-Bunker Hill; Iris Martinez, D-Chicago; Sam McCann, R-Plainview; Laura Murphy, D-Des Plaines; Christine Radogno, R-Lemont (retired); Sue Rezin, R-Morris; Tom Rooney, R-Rolling Meadows; Paul Schimpf, R-Waterloo; Heather Steans, D-Chicago; Jil Tracy, R-Quincy; and Chuck Weaver, R-Peoria.
In the House (2 Democrats, 28 Republicans): Patricia Bellock, R-Hinsdale; Avery Bourne, R-Raymond; Daniel Brady, R-Bloomington; Terri Bryant, R-Murphysboro; Tim Butler, R-Springfield; John Cabello, R-Machesney Park; Jerry Costello, D-Smithton; C.D. Davidsmeyer, R-Jacksonville; Jim Durkin, R-Western Springs; Mike Fortner, R-West Chicago; Randy Frese, R-Paloma; Brad Halbrook, R-Shelbyville; Sheri Jesiel, R-Winthrop Harbor; Sara Wojcicki Jimenez, R-Leland Grove; Jerry Long, R-Streator; Michael McAuliffe, R-Norwood Park; Tony McCombie, R-Savanna; David McSweeney, R-Barrington Hills; Charlie Meier, R-Okawville; Thomas Morrison, R-Palatine; Michelle Mussman, D-Schaumburg; Lindsay Parkhurst, R-Kankakee; Reginald Phillips, R-Charleston; Nick Sauer, R-Lake Barrington; Dave Severin, R-Benton; Allen Skillicorn, R-East Dundee; Keith Sommer, R-Morton; Ryan Spain, R-Peoria; Daniel Swanson, R-Woodhull; and David Allen Welter, R-Morris.
*** UPDATE *** Senate President Cullerton also rejected his per diem.
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* Chicago Public Radio…
A union-backed bid to buy the Chicago Sun-Times is moving forward, according to sources involved in the deal.
Wrapports, which owns the newspaper, had given the union-backed group a Monday deadline to put “north of $11 million” in an escrow account, according to Bill Brandt, a restructuring expert and one of the private investors on board with the bid.
“The money is there,” Brandt said late Monday. “I believe there will be a transfer of ownership.”
That money is not the sale price of the paper, Brandt said.
“The real issue was what does it take to make sure that you can operate the paper and pay off its obligations in the future,” he said.
The sale price has been reported as being a dollar.
* Sun-Times…
The potential ownership group includes several local labor unions, including the CFL, and about eight individual investors, including corporate restructuring expert Bill Brandt.
“I think it’s a worthwhile challenge,” Brandt said. “It’s a money-losing venture, but this is one of those things where you take a gulp and you do it for the good of the city. Chicago needs two newspapers.”
Eisendrath and Brandt declined to identify the other investors, but Brandt said the group included several people “well-known in the political scene.” […]
On Tuesday, Sun-Times publisher and editor-in-chief Jim Kirk sent an email to his staff that reminded them, “…This is not the last step in the process. The parties continue to negotiate to see if a deal can be completed. In addition, the offer from Tronc still remains active.”
*** UPDATE *** Done deal?…
An investment group led by former Chicago Ald. Edwin Eisendrath along with a coalition of labor unions is poised to acquire the Chicago Sun-Times and Chicago Reader, Eisendrath and others familiar with the transaction said on Wednesday.
The deal was expected to be completed by Thursday morning, with a press conference to take place at some point that day.
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“Outside the simulator”
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* WGN…
There’s a sense among some Rauner loyalists that the governor, discouraged by defeat in the Illinois legislature, is now being influenced to go to the right rather than the middle. “It was one thing when nobody cared what they have to say it will be interesting to see how they perform outside the simulator,” an insider said.
That is a very good point. Rauner’s new hires are mostly from outside government. They’ve spent their careers criticizing government, particularly Illinois’ government, from the relative safety of a “think tank.” And now the government’s success (and failure) is all on them.
And I’ll bet you a dollar that Rauner is surprised to hear this new and growing media hot take that he’s behaving like someone who just suffered a traumatic defeat. Just days ago, the view was Rauner “won” the budget fight because he was handed new revenues to run his government as well as the popular political issue of opposing a tax increase.
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*** UPDATED x2 - Not - Or not *** Clark out
Wednesday, Jul 12, 2017 - Posted by Rich Miller
* Another head rolls…
Before joining the Rauner administration in 2015, Clark was Cook County Commissioner Tim Schneider’s chief of staff. Schneider is the chairman of the Illinois Republican Party and a fierce Rauner loyalist, so this is a most interesting development and we’ll see how it plays out.
…Adding… From a buddy on the Clark ouster…
The guy who carried Bruce’s water getting local governments to endorse the turnaround agenda.
*** UPDATE 1 *** As you can see, Mary Ann has deleted the tweet. I’m told that her report may have been premature. Stay tuned…
*** UPDATE 2 *** She retracted…
[ *** End Of Updates *** ]
* Meanwhile…
Lance Trover, Gov. Bruce Rauner’s deputy chief of staff, left that post last week because “it was the right time for me,” he said.
Trover, 37, is a Vienna native now of Chicago and was paid $150,000.
“I had given notice several weeks ago,” Trover said Tuesday, but he agreed to stay on as the General Assembly met in special session.
Lance wasn’t fired. His departure was an open secret last week, but he asked people to keep it quiet.
…Adding… From Trover…
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* I cannot ever remember a time when this much focus has been placed on a governor’s staff changes. But it’s most certainly news and therefore political fodder. From the Pritzker campaign…
The Rauner administration is going through a tumultuous transformation following a resounding defeat of the failed governor’s agenda. Rauner ousted top advisers who have been loyal for years and replaced them with a group of fresh faces with radical conservative views.
Let’s meet the new and radical hires making their way to the top of the Rauner administration:
* Kristina Rasmussen was named Chief of Staff. She comes to the Rauner administration following eight years at the Illinois Policy Institute, most recently as the president and CEO. The right-wing think tank is known for proposing radical cuts to state services and programs in their fantasy budgets.
* Michael Lucci is in as Rauner’s new Deputy Chief of Staff for Policy. He also comes directly from the Illinois Policy Institute, previously the Vice President of Policy. In that role, he wrote 147 propaganda posts decrying fair policies like a progressive income tax while pushing top items on the Koch brothers’ agenda like right-to-work.
* Laurel Patrick will serve as the administration’s Director of Communications. She left her short post at the D.C. version of the Illinois Policy Institute — the Franklin Center for Government and Public Integrity — and previously worked for union-busting Wisconsin Governor Scott Walker.
“Bruce Rauner is cleaning house and welcoming a who’s who of radical right-wing extremists into the governor’s office,” said Pritzker campaign spokeswoman Jordan Abudayyeh. “This is the Donald Trump playbook of playing to the worst extremes of your base when you have nothing left to lose. It will have deep and damaging repercussions for the people of this state.”
* DGA…
The Democratic Governors Association releases the following statement, attributable to Illinois Communications Director Sam Salustro, regarding the news that Governor Rauner spent most of Tuesday firing old staff and hiring right-wing Illinois Policy Institute staffers into his administration:
“Bruce Rauner’s operation is in chaos. Fresh off a stunning bipartisan rebuke of his uncompromising policies, Rauner has turned inward, firing seemingly everyone to be replaced by right-wing ideological staffers. These moves should be concerning for Illinois families. Rauner has surrounded himself with the same uncompromising group of people who would rather see the state fall off a fiscal cliff than pass a bipartisan budget. Two and a half years in and Rauner has doubled-down on the same failed leadership style that earned him the nicknames ‘Governor Junk’ and ‘Most Vulnerable Incumbent.’”
*** UPDATE *** From Ameya Pawar…
“Gov. Bruce Rauner is clearly losing his grip on the system he has propped up to benefit the billionaire class and corporate special interests after he lost the Illinois budget battle last week. Now, he’s trying to compensate for that loss by replacing his staff with even more conservative political ideologues who only seek to destroy our public institutions and preserve the system that only benefits the wealthy.
“When Bruce Rauner promised to shake-up Springfield, we didn’t expect just how far he would go to put his extreme agenda over the health and welfare of our state. Gov. Rauner clearly has no interest in governing. Instead he is doubling down on a failed agenda and waging war against working families, collective bargaining, livable wages and social services in Illinois. Any facade of executive leadership, collaboration and compromise has been thrown out the door.”
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* I told subscribers about these developments earlier today. This evening, Mary Ann Ahern published the full memo sent out today by Gov. Rauner’s new chief of staff Kristina Rasmussen…
Good morning, everyone!
Thank you for welcoming me to the team yesterday. I’m honored to join you as we position Illinois to become the most prosperous, compassionate, and free state in the nation.
As we discussed, there are four critical areas I’d like you to focus on in the coming month.
1. Please share with me your best ideas for transforming Illinois through better public policy and improved operations by Friday at 3:00 p.m. I follow the approach of Completed Staff Work; this will give you guidance on how to present your ideas.
2. We’re going to share incredible stories of the men, women, and children who deserve a revitalized Illinois. More information will follow, but here’s a good overview of where we are headed.
3. I’m looking for your excellence. How can you approach an aspect of your work in a new and better way today?
4. Mutual respect paired with radical candor will make this an even greater place to work.
I would like to announce two staff members joining us today:
Michael Lucci as Deputy Chief of Staff for Policy (Chicago)
Laurel Patrick, Director of Communications (Chicago)
Tomorrow we’ll welcome Jean Hutton as my Special Assistant.
My commitment to you is to share an updated organizational chart soon so you have clarity on where changes are happening.
Again, thank you for the warm welcome
~KR
* Lucci, of course, is the Vice President of Policy for the Illinois Policy Institute, and will now be Gov. Rauner’s policy director. Read more about Lucci by clicking here. He’s also an occasional commenter on this blog.
Laurel Patrick was Wisconsin Gov. Scott Walker’s spokesperson before eventually moving to the economic-right Franklin Center for Government and Public Integrity. Patrick replaced Brad Hahn, who was let go today. This is how Patrick describes herself on Linkedin…
Dynamic strategic communications and public relations professional with expertise in crafting messaging for high-profile elected officials and state agencies for political, legislative, and policy purposes.
Serve as an articulate spokesperson with extensive experience in media relations, message development, crisis communications, and team management. Skilled at creating communication teams, strategic plans, and building successful coalitions and partnerships with stakeholders, donors, and media partners to an organization’s mission and goals.
And Jean Hutton, Rasmussen’s new “special assistant,” is the Illinois Policy Institute’s Director of Operations. Click here for her background.
* Staff also received these three links this morning via that e-mail…
* Radical Candor — The Surprising Secret to Being a Good Boss
* SCARF: a brain-based model for collaborating with and influencing others
* The Doctrine of Completed Staff Work
* The JB Pritzker campaign’s response…
“The extreme right is taking over the governor’s office and Bruce Rauner is building a team to pursue a scorched earth policy in Illinois,” said Jordan Abudayyeh. “Rauner’s new radical right wing hires will destroy social services, attack working families, and tank the Illinois economy until they either get their way or drive this state into the ground.”
…Adding… “Could.” Right…
* Tribune: Rauner staff changes could signal a sharper tone
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* Subscribers know more, but, yeah, from what I’m gathering morale ain’t all that high…
The shakeup in Governor Bruce Rauner’s office continues as NBC 5 has learned Brad Hahn was fired Tuesday morning.
Hahn had served as deputy chief of staff for public engagement and communications director. He has been a longtime GOP staffer, working for both Comptroller Judy Barr Topinka and Leslie Munger.
When Hahn was hired last year, he was part of the 23 people who worked for Munger and were then hired by the Rauner administration when Munger lost her bid for re-election.
Insiders said the morale inside the Rauner office and campaign is very low among those who do not agree with the governor’s decision to shift his strategy to a more conservative tone.
Brad was top notch, but he never really fit in with the governor’s style. And now that Rauner’s office is becoming an adjunct of the Illinois Policy Institute, he’s probably much better off.
*** UPDATE *** Rauner spokesperson Catherine Kelly was just fired. What’s so unreal about this is that CK was a loyal Raunerite. She busted her tail for the governor.
CK was expected to be leaving perhaps as early as next month anyway because her husband has a job in another state. But this action today was unexpected.
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* Joe Cahill explains this pension funding gimmick well…
State contributions to pension plans will decline $1.5 billion in fiscal 2018, by far the largest single spending cut in the budget. And some $900 million of that reduction reflects wishful thinking about future investment returns at state employee pension funds.
Last year, overseers of the Teacher’s Retirement System and other large state employee retirement funds joined counterparts at public pension systems around the country in reducing assumed investment returns to around 7 percent from unrealistically high levels that prevailed for several years. It was a prudent step, based on actual long-term investment performance and current economic trends.
But it had the unpleasant effect of revealing that Illinois’ pension gap was even larger than previous estimates. A lower assumed rate of return means the pensions need more money now to generate enough investment earnings to cover future pension payments. And that, in turn, means legislators must allocate more current funds to pension contributions, not less.
Less is what the pension funds will get under the new budget, which delays implementation of the more-realistic investment return assumptions. Rather than impose the new rates of return immediately, as they should, lawmakers are phasing them in over five years. This allows them to contribute less while claiming to meet pension funding obligations.
Ironically, this is a rare area of agreement between arch-foes Madigan and Rauner. The governor excoriated Madigan’s 32 percent income tax hike, but uttered not a peep about his pension legerdemain. Perhaps that’s because he proposed “smoothing” in reduced rate-of-return assumptions in his own budget blueprint earlier this year.
Yep. He did. Remember how the governor railed against TRS for lowering their estimated rate of return?
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Question of the day
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Crain’s Chicago Business editorial…
So Illinois spent two years setting itself on fire in order to do . . . what, exactly? Income tax rates now stand at 2014 levels. Pensions are still underfunded. The major “Turnaround Agenda” ideas the governor ran on—”right to work,” workers’ comp reform and term limits—were kicked to the curb over time like so much roadkill. The state, meanwhile, has been the customer from hell to social service agencies and small businesses alike, demanding services and refusing to pay for them, racking up millions in unnecessary interest charges and forcing private-sector layoffs along the way.
Rauner presided over all of this—and, at key moments in the spectacle, could have prevented it. Not a good look for a man who ran as a business-minded pragmatist, a dealmaker who would put the needs of regular Illinoisans first and reject petty partisan politics.
In the end, Rauner’s stance on the budget compromise revealed how political this supposed “non-politician” has actually become. Despite knowing the damage that further ratings downgrades would do to the state, despite understanding the real damage being done to universities, businesses and municipalities by the ongoing standoff, despite recognizing that there is no way cuts and reforms alone will dig Illinois out of its financial hole without new revenue, the governor vetoed the budget legislation when it came to his desk. He did this knowing the chances were very, very good that his veto would be overridden.
There were plenty of political benefits for the governor in this irresponsible move: The guy who said he wasn’t a career politician gets to appease his base, which is howling to the point of threatening violence against lawmakers who voted yes on the budget. He also gets a workable budget that will hold the wolves of Wall Street at bay at least for a time. And as an added sweetener, he also gets plenty of partisan fuel for a re-election campaign he once told us he’d be happy to skip if it meant he could get the job done in Springfield for the people of Illinois.
What a waste.
* Tribune editorial…
Legislators who imposed this year’s increase despite Gov. Bruce Rauner’s opposition hope that by next year’s elections you’ll once again forget. Forget that they voted to raise your taxes before they passed major reforms. Forget how they set this state to shrivel as its neighbors thrive. Forget how they sabotaged Illinois.
Don’t forget.
* Bruce Rauner op-ed…
Over the past two years we’ve also been seeking common ground on the fiscal and structural changes necessary to restore our state’s fiscal health. This challenge is not just about one year’s budget; it is about reforming our state so that our economy grows faster than our government spending. Structural reforms that encourage job growth, provide property tax relief and make government more efficient are essential to our long-term fiscal health.
Yet instead of passing a budget with reforms that would move Illinois forward, the legislature collapsed under the pressure of entrenched interests and passed a 32 percent income tax hike.
* The Southern editorial…
Clearly the deep financial hole Illinois has dug for itself cannot by filled by cuts alone. In addition, legislators were looking at Illinois’ bond rating being lowered to junk status, a measure that would have cost the state even more when borrowing funds.
With unfunded pension liabilities, school districts and universities swimming in red ink, there is still plenty of work to do.
As much as we hate having our taxes raised, tough choices had to be made — this wasn’t going to be easy.
Bryant stepped up to make a choice that we believe benefits the state in both the long and short term. Voters are free to agree or disagree with her vote. But, they are obligated, morally and legally, to express that disagreement in a civil manner.
* The Question: Your tax hike winners and losers? Don’t forget to explain your answers.
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*** UPDATED x1 *** More on that Kennedy poll
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* The Chris Kennedy campaign just finished a call-in for political reporters about its latest poll. As we’ve already discussed, Kennedy’s poll has the candidate ahead of JB Pritzker 44-38. Here are a few notes…
* 45-5 positive/negative for Kennedy.
46-12 positive/negative for Pritzker.
Pawar and Biss are in “low single digits.”
In a December poll, Kennedy was leading Pritzker 34-18.
* 3 of 5 voters know both of the candidates. 80 percent know Pritzker. 70 percent know Kennedy. Among the “know both” it’s 49-37 for Kennedy.
After 4 pro-Kennedy statements were read, Kennedy’s lead went to 66-20.
* They mentioned two big problems for Pritzker in the polling. The FBI tapes of Pritzker talking to Blagojevich, for example, led to 55 percent of respondents saying they have “major doubts about supporting JB Pritzker.” That number was 60 percent on Pritzker’s property tax issues.
By contrast, the top testing negative on Kennedy was 21 percent: “He talks tough on property taxes but benefited” from property tax breaks.
A property tax issue polls worse than an FBI tapes issue. Think about that for a second. People are up in arms about property taxes, man.
* Consultant Eric Adelstein repeatedly said during the briefing that the campaign is confident that it will have the resources to get its message out and compete.
*** UPDATE *** Yesterday was the A-1 filing deadline day, and Kennedy reported a mere $438,834.92 in large contributions. That’s not good at all. [For some reason, my previous search included stuff that shouldn’t have been in there. This is a revised post.] He had $907K on hand at the beginning of the last quarter. We’ll see what their burn rate is by July 17th, when D-2s are due.
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DPI to receive small monthly bump from DNC
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* The Democratic Party of Illinois raised over $6.6 million last year, so this is a drop in the bucket…
In October, the DNC will give a $10,000 monthly grant to each state party, running through the 2018 midterms — a one-third increase over its 2016 commitments, which came when the party’s presidential campaign was winning the money wars. […]
The DNC is also launching a State Party Innovation Fund, with $10 million earmarked for grants that state parties can compete for by organizing and modernizing; funds, according to the party, will be devoted to “innovation, best practices and organizing in base, rural, millennial and youth communities, in addition to help with building technical infrastructure.”
Among the aids already available: Knock 10, a phone app designed to streamline the process of door-knocking to encourage extremely early voter persuasion. (A common post-election critique of Hillary Clinton’s campaign was that it failed to do early persuasion, letting a voter advantage slip away in the three states that decided the election.) “Anyone can use the app, but only Democratic state parties get the data back and already state parties have begun to take advantage of this app to get more people involved in their communities,” said the DNC in a statement.
I’m not exactly holding my breath that DPI will compete for those new innovation funds, either. It’s notorious for being the most Luddite organization in the land. And it’s a state party in name only, existing mainly to win Illinois House races.
I mean, can you imagine this conversation?…
Staffer: Mr. Speaker, the DNC has this cool new phone app called Knock 10.
Speaker: What is a ‘phone app’?
Staffer: It’s a software application for mobile phones.
Speaker: As you are aware, I have no knowledge of mobile phones. I prefer my rotary.
Staffer: But lots of people have mobile phones, Mr. Speaker, sir.
Speaker: I have a Knock 10 idea for you, young man. Please leave my office immediately and go knock on ten doors in Mr. Moylan’s district.
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* Heidi Stevens in the Tribune…
A simple question — weighed down by a clunky domain name — is drawing attention to the serious lack of estrogen in Illinois’ gubernatorial race.
AreThereAnyWomenRunningForILGovernor.com attempts to nudge some women into the race for Gov. Bruce Rauner’s seat and calls on Democratic leadership to diversify its 2018 offerings.
The site, once you take the clickbait, delivers you to a giant red NO. The answer’s fairly self-evident, but it sits atop a handful of statements that link to organizations encouraging women to seek higher office. […]
Illinois has a long and storied history of exclusively white male governors, four of whom went to prison. (Lock him up!)
I don’t know. Maybe it’s time to mix things up a little.
* From the website…
Illinois Democrats: Zero women are running for governor. What’s your plan to support women leaders in our state?
(sign your name if you agree–all are invited to sign)
We are disturbed that of all the Democratic candidates running for Illinois governor, zero are women. Zero.
Of these eight straight, cisgender men, six are white. This is a problem.
Make no mistake: We will fight like hell to elect whichever candidate wins the Democratic nomination, because no one could be more harmful for Illinois women than Bruce Rauner. But it is time to acknowledge the obstacles hindering women from running for office in our state–from the overwhelming presence of big money in elections to a lack of leadership from the Democratic Party in recruiting and training women and people of color to run.
So, Democratic Party leaders: What is your plan to address the hurdles keeping women, and especially women of color, from advancing in elected office in Illinois? We commit to fighting for those needed changes from the grassroots level.
Your thoughts on this?
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Lasting damage has been done
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Dean Olsen at the SJ-R…
A hoped-for academic pipeline at Springfield’s medical school to produce a steady stream of cancer doctors for patients in central and southern Illinois was quashed by the two-year state budget crisis.
Even though the crisis was resolved last week after the Illinois House and Senate overrode vetoes of Gov. Bruce Rauner, a proposal to establish an oncology training program now could take years to be resurrected.
The Springfield campus of Southern Illinois University School of Medicine had hoped to welcome the first two doctors this summer for a planned three-year fellowship program in oncology-hematology, according to Dr. Aziz Khan, executive director of SIU’s Simmons Cancer Institute.
But that plan — which would have cost about up to $450,000 per year for trainees’ salaries and benefits — was put on hold two years ago, Khan said. That’s when finances began to tighten for the medical school and the two Springfield hospitals that provide the school millions of dollars in financial support each year.
“This is a big loss, I feel, for the community,” Khan said.
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Budget games could lead to a cash crunch
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Greg Hinz asked Civic Federation President Laurence Msall and Illinois Taxpayers’ Federation President Carol Portman three questions about the budget. Here are the first two…
Question one: Democrats say the $36 billion spending plan they enacted last week is “balanced.” Rauner says it’s $2 billion out of whack. Who’s right?
Msall notes that the bulk of the $2 billion is due to extra spending in fiscal 2017 that was not financed then or in the fiscal 2018 spending plan that just was adopted by override. “We believe a calculation on of the operating surplus or deficit should be based on the current year’s results,” he adds. “The prior year’s results are reflected in the backlog of bills.”
So, one vote for the Democratic position—and Portman tends to agree. “We’ve frequently spent more than we’ve brought in and not cleaned it up before carrying on into the next year. That doesn’t make it OK,” she says. “But that doesn’t mean the FY18 budget package as passed doesn’t balance, if it truly spends no more than we expect to bring in for the fiscal year. . . .I’d say both sides are right—they’re just using a different definition of ‘balanced.’ ”
Question two: Democrats claim their version cuts spending by $1 billion or more below the budget Rauner introduced. True?
Msall sides with Rauner on this one. “The spending is roughly equivalent, even though on paper the governor’s budget is $37.3 billion and the General Assembly’s $36 billion. The (General Assembly’s) budget appears to be smaller mainly because of transfers out” from the general funds to other funds that spend the money themselves. That reduced general funds spending, but not total spending.
Yeah. They used the exact same accounting gimmick that Rauner and the Republicans used in their “Capitol Compromise” proposal.
* Rep. Greg Harris (D-Chicago) offered this explanation to the SJ-R…
Harris, however, says that with a change in how the state disburses the income tax and a boost from a tax hike on workers’ salaries, Springfield will come out with 6 percent more this year in its share of income tax.
Harris said the gains will happen because the state will accelerate payments to local governments by directly transferring the money to them instead of having them wait in line for a transfer from the state’s general revenue funds. Municipalities will receive their share within 60 days, Harris said. With those faster payments, cities would see 14 payments instead of 12 this year.
So, they moved money intended for the Local Government Distributive Fund out of GRF and into a new fund that directly transfers payments to the locals. That will, indeed, speed up payments and has the added “benefit” of taking the money off budget and making it look like locals get an increase when it was really just money that was owed to them.
However, expediting these payments means the comptroller can’t use her discretion to delay writing LGDF checks while she pays for something else more pressing. And that means there will be more cash flow pressures every month. Things could get super tight.
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* Press release…
In a Garin-Hart-Yang survey conducted June 26- 29, Chris Kennedy maintained a strong lead over billionaire J.B. Pritzker, despite Pritzker spending over $8 million on a television and direct mail blitz, nearly 10 months out from the Democratic primary. Kennedy led Pritzker 44% to 38% in the trial heat. Among voters that knew both candidates, Kennedy held a larger lead 49% to 37% in the trial heat, suggesting that Kennedy has room to grow as more voters hear his message.
“Democratic primary voters want radical change in Springfield, and they aren’t falling in love with Pritzker’s big wallet,” Brendan O’Sullivan campaign manager said. “Big money talks, it doesn’t listen, and voters are tired of billionaires in both parties trying to buy their votes. It’s why Chris has maintained a strong lead even in the face of record spending against him. Voters are respond to Chris’ message of being independent of the party machine, fighting for real reforms to make Springfield work for Illinois families, and restoring the promise of the American Dream for everyone in the state.”
OK, but Kurt Summers’ poll taken in early March had Kennedy at the very same 44 percent. Pritzker was polling at just 11 percent, so he’s more than tripled his support since then. It’s cost him a pretty penny to do that, but money is apparently no object. And keep in mind that Pritzker has not run any ads against Kennedy, which could be coming.
* And we’ll see what Kennedy’s quarterly fundraising reports show. Sen. Daniel Biss may be hard to top…
We have a first look at gubernatorial candidate Daniel Biss’ second quarter numbers; the Democrat says he’s preparing to report more than $1 million raised between April and June. The Biss campaign believes that will place him right up with Chris Kennedy (perhaps even surpassing Kennedy?) for second-quarter fundraising.
Breaking it down: Biss’ camp is basing this on the large-dollar contributions they’ve received. Biss’ campaign says so far he’s in the lead with an expected $560,000 raised. The largest donation, according to Illinois Campaign for Political Reform, is $100,000 from the Senate Democratic Victory Fund. A statement from the group said Biss had donated that amount to the fund last November and that it is not endorsing.
Kennedy, as of Sunday, had roughly $400,000 in large-dollar contributions and Pawar had $79,000. Of course, billionaire J.B. Pritzker far outpaces the Democratic field because he is self-funding. He has given $14 million to his own campaign thus far.
Totals: “Biss now sits with over $2.3 million cash on hand,” a release from his campaign states. “The second quarter haul came from more than 2,700 donors representing over 230 cities and towns across Illinois. Two-thirds of Biss’s Q2 donations were for under $100, and 95% of them came from in-state.” Full second-quarter filings are due July 17.
*** UPDATE 1 *** On background, I’m told by the Kennedy folks that the poll “is not good for JB.” Pritzker, they say, has a “low ceiling” and “explosive negatives. The electorate, they claim, “wants to go with Kennedy by every measure.”
They’re having a press briefing at 1:30, so we’ll know more then.
*** UPDATE 2 *** Pritzker campaign…
“It’s exciting to see Chris Kennedy’s own internal polling numbers confirming the surging support and enthusiasm that JB has been feeling around the state,” said Pritzker campaign manager Anne Caprara. “A 27-point polling jump in three months would be exciting for any campaign, but it’s particularly encouraging given the strong recognition of the Kennedy name. JB is proud to be growing his support with Illinois’ working families and grateful to Chris Kennedy for letting people know.”
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Could Erika Harold run against Lisa Madigan?
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Bernie…
Could ERIKA HAROLD, the former Miss America who ran for Congress from the 13th Congressional District in the 2014 primary, be a Republican candidate for attorney general?
MARK MAXWELL, Springfield bureau chief for WCIA-TV, recently said on Twitter that Harold is the state GOP’s leading candidate for that office, held since 2003 by Democrat LISA MADIGAN.
Harold got 41 percent of the vote in a three-way primary race in the 13th in 2014, losing to U.S. Rep. RODNEY DAVIS, R-Taylorville. The 13th includes part of Springfield.
I left messages for Harold — who practices law in Champaign — and got a reply back from a spokesman for the state GOP, who sent a quote from Davis.
“Erika Harold is exactly who we need to take on the Chicago machine,” the congressman said. “A Harvard-educated lawyer and a national leader combating school violence, Erika Harold tells the hard truths and always stands up for those in need. I know she’ll take on the corruption in state government.”
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Rauner rejects Frerichs’ suggestions
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Monday press release…
As the state’s chief investment officer, Illinois State Treasurer Michael Frerichs today laid out the steps Gov. Bruce Rauner must take to prevent Illinois from sinking into junk bond status now that a budget package has been approved.
“The credit-rating agencies have indicated that the new revenue and spending cuts alone are not enough to insulate the state against further credit downgrades, including junk bond status,” Frerichs said. “I understand that Gov. Rauner disagrees with the elected members of the House and Senate. However, should he not take these necessary steps, he is inviting the credit-rating agencies to plunge Illinois into junk bond status, the results of which will lead to higher property taxes.”
To avoid becoming the first state in history to be assigned junk bond status, the Governor must:
· Travel to New York, speak directly with the three ratings agencies, and convince them that he embraces the decision of the Legislature and will implement the budget package.
· Immediately take visible, responsible steps to implement the $6 billion in bonding authority, which will yield $3 billion in additional federal dollars to pay down the $15 billion bill backlog.
· Make sure that local schools open on-time. K-12 education funding in the budget package is predicated upon a separate agreement that state dollars will be distributed on an evidence-based model. Lawmakers passed legislation that does so. However, the Governor has promised a veto. Vetoing this agreement, or in the alternative, not striking a different deal, will create more instability, which the rating agencies are expecting Illinois to avoid. It also will threaten local schools from Cairo to Chicago and be a complete disaster for parents.
· Clearly and proactively communicate the new tax rates with Illinois employers to eliminate any confusion. Doing so will ensure that revenue estimates and cash-flow expectations are met.
· Eliminate the divisive rhetoric that is impairing our state from moving forward. This divisiveness counters the civility and bi-partisanship the rating agencies wish to see.
“This mix of revenue and cuts is far from perfect. It is, however, now the law and if implemented it is a critical first step to addressing Illinois’ deep, structural challenges,” Frerichs said. “It is clear that we will not begin to climb out of this debt if the Governor does not take the necessary steps to lead us away from the abyss.”
Earlier this year, Frerichs warned that the inability to reach a budget agreement would invite further credit downgrades that would increase the cost of necessary borrowing. Frerichs also warned of impending junk bond status and, if reached, how that would exasperate the financial markets because some investors are restricted from doing business with entities that have junk bond status. This is true even though entities that purchase Illinois debt have iron-clad constitutional guarantees that they will be paid.
Illinois also uses toxic credit-swap agreements. Junk status invites termination of these agreements. Termination penalties of up to $107 million, in addition to interest rate penalties, could be demanded by the lending agencies.
Illinois has endured eight credit downgrades since Gov. Rauner took office in January 2015. All involved the state’s bill backlog, now estimated to be $15 billion, the budget impasse, and other factors.
The budget package approved by Democrats and Republicans is the first in two years. It was enacted over the Governor’s opposition and plans to spend $36.1 billion in the fiscal year that began July 1, 2017. Currently, the state spends $39 billion annually, so the package represents a $3 billion spending cut. The cuts, combined with new revenue and federal matching dollars, could allow for up to $8 billion of the bill backlog to be addressed.
However, it will take several years, including the likelihood of several more challenging budget packages, for Illinois to eliminate the bill backlog and return to a more acceptable payment cycle of 30-90 days.
* The governor’s office responded via the Sun-Times…
“The low rating from the rating agencies is reflective of the fact that Madigan’s 32 percent permanent tax increase will not solve the problems created by decades of unbalanced budgets, unfunded pension liabilities, borrowing and high debt,” Eleni Demertzis said.
“Even with the tax increase, this budget remains $2 billion out of balance for fiscal year 2018. The best thing we can do is to work collaboratively to pass truly balanced budgets that pay down our debt, reform our pension system, and make the changes necessary to drive economic growth in our state.”
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Good for the goose…
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* Remember this?…
What happens when a Democrat in the Illinois House won’t kneel before Boss Madigan?
Punishment, isolation and mockery.
State Rep. Scott Drury, of Highwood, is paying for not voting for Madigan for speaker of the house, where Madigan has reigned for decades.
The former federal prosecutor has been stripped of his position on a judiciary committee. His ethics legislation, he understands, will die. And he’s been mocked by Madigan’s smarmier mouthpieces.
“I’m being punished, it’s fair to say,” Drury told me in an extensive interview on my podcast, “The Chicago Way,” on WGN-AM.
* And this?…
Also toying with throwing his hat into the ring is Lake County lawmaker Scott Drury of Highwood. If the 58th District representative takes the gubernatorial plunge, he can expect Madigan to ignore him about like the Trump administration ignores climate change.
That’s because Drury was the lone House Democrat who voted against re-electing Madigan speaker of the House to a record 17th term in January when the 100th General Assembly was reorganized. It was Drury’s finest “Mr. Smith Goes to Washington” hour.
It was also a lesson to the former U.S. attorney and his fellow lawmakers to find out what happens when a Democrat crosses cold-hearted Madigan’s iron rule in the House: Drury is now what only can be considered akin to an exiled member of the old Soviet Politburo. Instead of being sent to Siberia, he has to toil in Springfield with little serious committee assignments.
* And this?…
When readers last heard of Democratic state Rep. Scott Drury of Highwood — it was late January — he was being punished by House Speaker Michael Madigan for opposing Madigan’s re-election as the man in charge of the Illinois House of Representatives.
After Drury declined to support Madigan’s re-election as speaker — the only one of 67 House Democrats to do so — Madigan stripped Drury of his seat on an important committee where he served as vice chairman. The move not only cost Drury a coveted spot on a key committee, but also a roughly $10,000 stipend for serving in a leadership role.
Actually, he was a vice chairman of a committee.
* And this?…
A Democratic state representative said he’s being bullied for not voting for Mike Madigan as the House Speaker.
Rep. Scott Drury voted “present” earlier this month for Speaker. He also voted against the House Rules. After that, he noticed something strange: he didn’t receive a gift bag like other Democrat House members.
“I later learned that it was a deskclock that was engraved, touting Speaker Madigan’s lengthy tenure as Speaker of the House,” Drury said.
Madigan has been Speaker all but two years since 1983.
* I re-posted all of those clips because now I’m wondering if the same voices of outrage will rise to the defense of Rep. Steve Andersson, who was kicked out of House GOP leadership yesterday for supporting a budget package funded with a tax hike.
I’m not holding my breath.
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Nothing ended last week
Tuesday, Jul 11, 2017 - Posted by Rich Miller
* My weekly syndicated newspaper column…
After years of ugly gridlock and weeks of groups and political leaders whipping up an already-disgusted populace over a 1.2 percentage point income tax increase, lots of legislators were understandably on edge last week.
Rep. Will Guzzardi, D-Chicago, tweeted ahead of the votes to override Gov. Bruce Rauner’s vetoes of a budget package that it was “hard not to think about the (recent Virginia) congressional shooting showing up to work today.”
And so people were naturally a bit rattled when a woman triggered a more than two-hour delay of those override votes as police and a hazardous materials team frantically combed the Statehouse.
The woman, described by a friend as a “wonderful” person and “beloved” by many, threw some sort of substance at or into a few offices, including the governor’s. A couple of her friends said she might have been attempting to perform a “good luck” ritual.
Depending on your outlook, her possible good luck ritual either worked or failed. We now have a tax increase and a sort of balanced budget, and everyone can take a breather for a while. On the other hand, we now have a tax increase and a sort of balanced budget that are fabulously unpopular and will require more work to fix.
Next fiscal year’s budget is really not going to be pretty, but trouble will start even before then. Moody’s already has declared that it could downgrade the state to junk bond status even with the tax increase. If that happens, it will damage the government’s ability to borrow to pay off some of the $15 billion in debt that has been piling up during the two-year impasse.
And even if Illinois isn’t immediately downgraded, the state will hover on the precipice of junk status for the foreseeable future, perhaps for years. There just isn’t enough money on the revenue side of this plan and too much on the spending side to ensure balanced budgets into the future and to pay off that mountain of backlogged bills.
What lawmakers did was fix the state government’s immediate problem. A broader deal would have been preferable, but that obviously wasn’t possible. And there isn’t a person around Rauner who doesn’t think that he now has a dual political advantage of new state revenues to spend along with his popular opposition to the tax increase.
So, now what? There’s a belief by some that House Speaker Michael Madigan has the very thing he has wanted for more than two years: A working bipartisan super-majority to override the governor at will.
But that, I think, is a misinterpretation of what happened. Madigan didn’t create that super-majority, his members did. If it had been left up to Madigan alone, the tax increase probably would have failed. His members were the ones who reached out to their Republican colleagues to negotiate a budget and a tax increase. And when Madigan tried to send them home for a few days, they insisted he keep the House in session and call the votes.
When Republicans started dropping off the roll call last week after taking tremendous heat, Madigan could have let the override fail and made Rauner be forever tagged as “Gov. Junk.” But his members wanted it to pass, so he rounded up more Democratic votes, including a couple of his own targets — something that never happens in that caucus.
Madigan’s members will be hugely important to any further veto overrides, but those breakaway House Republicans will be even more crucial.
And that leads us to the education funding reform bill. As I write this, the Senate has not sent the bill to the governor, who has vowed to veto what he calls a “Chicago bailout.” While that bill helps more truly needy districts in the long run than the governor’s plan, it does contain more money for Chicago Public Schools.
After taking unimaginable heat for voting for a tax increase, it seems doubtful that those same 10 Republicans will then turn around and vote for a “Chicago bailout” that will be portrayed as stealing money from their own students. Without those votes, a veto can’t be overridden.
Both the Democratic and Republican school funding plans require state aid to be distributed via a new formula. No new formula, no school funding. No school funding, lots of schools don’t open after summer vacation. And just like that, we’re in another full-blown crisis.
Maybe that woman could be brought back to the Statehouse for another good luck ceremony, only without the haz-mat teams this time.
This column was written last week before the governor hired the Illinois Policy Institute’s chief operating officer to be his new chief of staff. As such, I’m now much more on the fence about what will happen with SB 1.
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