Hardhats required?
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* Finke…
Access to the north entrance of the state Capitol is being restricted after concerns were raised about the structural integrity of brickwork supporting the entryway.
Secretary of State spokesman Henry Haupt said workers recently noticed some flaking underneath the brickwork supporting the north entryway.
“We had a structural engineer look at that brickwork beneath the entrance way and he determined it needed to be shored up and fortified,” Haupt said. “He’s putting together a plan to proceed. In the meantime, he recommended to err on the side of caution, that large groups of individuals, particularly just standing on that north porch, was not a good idea.”
Haupt said the office was told there isn’t a danger of collapse, but was advised that large groups of people should not be allowed to stand on the north porch.
Consequently, the north entrance will be limited to lawmakers, staffers, lobbyists and others who are issued ID badges by the secretary of state’s office. They are allowed to enter the building without passing through metal detectors.
There’s gotta be a good joke in there somewhere. I’ll leave it to you…
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Zion Park District in junk bond territory
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* They’re borrowing to make debt service payments? Uh-oh…
Moody’s Investors Service has downgraded the rating on Zion Park District, IL’s general obligation (GO) debt to Ba1 from Baa3 and the rating on the district’s general obligation limited tax (GOLT) debt certificates to Ba2 from Ba1. The Ba1 rating applies to $1.9 million in outstanding general obligation (GO) alternate revenue debt and $540,000 in GOLT debt service extension base (DSEB) debt. The Ba2 rating applies to $400,000 in outstanding GOLT debt certificates.
The outlook is negative.
SUMMARY RATING RATIONALE
The Ba1 rating reflects the district’s rapidly declining tax base; limited revenue raising ability as the district is operating at property tax rate caps in almost all of its major operating funds, and narrow Operating Fund cash reserves. Also incorporated in the rating is the district’s reliance regular borrowing to support debt service payments on outstanding debt, including plans to fully leverage its debt service extension base (DSEB) to support GO alternative revenue source debt service.
The district’s Ba2 debt certificate rating reflects the lack of a dedicated property tax levy for repayment of debt service, along with the
district’s narrow liquidity position.
OUTLOOK
The negative outlook reflects our expectation that the district’s finances will remain limited, requiring regular borrowing to pay debt service
on existing debt, as well as expectations for continued, material tax base declines.
WHAT COULD MAKE THE RATING GO UP (or remove the negative outlook)
-Stabilization or growth in the district’s property tax base
-Growth in overall liquidity supported by balanced operations
-Formalized planning toward and the attainment of self supporting enterprises
-Discontinuation of the practice of borrowing to support recurring debt service on outstanding debt
WHAT COULD MAKE THE RATING GO DOWN
-Further deterioration in property tax base valuations
-Recreation Fund tax rate hitting property tax rate cap
-Erosion of operating liquidity
-Increased Enterprise Fund dependency on the General Fund
The district’s last Moody’s downgrade from exactly one year ago is here.
Hat tip: Bond Buyer.
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Today’s number: 14 months
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* We have probably discussed this before, but not as a stand-alone topic. Just one more example of why Gov. Rauner’s proposed budget (like so many budgets before him) is so phony. From CoGFA…
The Governor has requested that a total of $2.025 billion be appropriated for the State Employees’ Group Health and Life Insurance program for FY 2016. The requested FY 2015 appropriation request for the Group Health Insurance Program was $2.790 billion. […]
CMS estimates the FY 2016 liability to be $2.777 billion, a 6.8% increase from FY 2015. The CGFA FY 2016 estimate of liability is $2.803 billion, $25.9 million more than CMS.
So, the estimated liability is $2.8 billion and the requested approp is $2 billion, leaving $800 million in unpaid costs.
This is by no means a new thing…
* Consequences…
Currently, for the Quality Care Health Plan (CIGNA), the delay for preferred providers and non-preferred providers is 273 and 350 days. In FY 2016, the cycle is expected to be extended significantly… CMS has calculated the amount of time it takes to make payments to managed care providers (HMOs and OAPs) at approximately seven months, which is expected to increase to 14 months in FY 2016… PPO claims would be held up to 360 days in FY 2016, above the 273 days utilized in FY 2015. Out-of-network PPO claims would rise from 350 days currently to 380 in FY 2016.
Can you imagine waiting 14 months to get paid?
Sheesh.
More bleak news here.
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Setting the Record Straight on Illinois’ Nuclear Facilities
Wednesday, Mar 25, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Recently, ads on Capitol Fax have distorted the facts about the Illinois Low Carbon Portfolio Standard (SB 1585). Let’s set the record straight.
Myth: “Exelon is profitable, so they don’t need more money to keep these plants open.”
Fact: Much like a retail business with multiple stores, every location has to make money on its own. No retail chain could survive for long using profitable stores to keep unprofitable ones open. Exelon would not operate Plant A at a loss simply because Plant B is earning a profit.
The fact is, three of Illinois’ six nuclear plants are at risk of closing, and the consequences of these closures are catastrophic:
• $1.8 billion every year in lost economic activity
• Nearly 8,000 highly skilled jobs
• Up to $500 million annually in higher energy costs statewide, according to a PJM analysis
• $1.1 billion per year due to increases in carbon and other pollutants
• Hundreds of millions of dollars to construct new transmission lines
Only one legislative solution, the Illinois Low Carbon Portfolio Standard (LCPS), properly values all low-carbon sources of energy, including the state’s nuclear facilities.
According to a State of Illinois report, the cost to Illinois of allowing nuclear plants to prematurely retire are as much as 12 times greater than the maximum cost of the Illinois LCPS.
MEMBERS OF THE ILLINOIS SENATE ENERGY AND PUBLIC UTILITIES COMMITTEE:
VOTE YES ON THE LOW CARBON PORTFOLIO STANDARD (SB 1585)
Learn More: http://www.NuclearPowersIllinois.com
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Question of the day
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* Legislation introduced in both chambers has Facebook and Yahoo worried…
Creates the Uniform Fiduciary Access to Digital Assets Act. Defines terms. Provides procedures and requirements for the access and control by guardians, executors, agents, and other fiduciaries to the digital assets of persons who are deceased, under a legal disability, or subject to the terms of a trust.
The Senate bill passed unanimously out of committee and is sitting on 3rd Reading.
The idea is to create a legal structure for taking over somebody’s online accounts and other “digital assets” when they pass away or become incapacitated. But there could be some big privacy problems with this idea. Your executor would have complete access to all your stuff, even if you didn’t officially appoint an executor, or your court-appointed guardian in the case of incapacitation. And there are some unintended consequences as well. What if a woman is incapacitated by her abusive husband, who then gets access to all her private info?
* From Dan Sachs, Facebook associate manager of state policy…
“The people that use our service should be able to control who has access to their digital archives, particularly their private communications, upon their death – not legislators and not a fiduciary that a person did not affirmatively select. There are many Illinoisans with online accounts. This bill would effectively ignore the wishes of all of those people when they die, set aside decades of settled law, and override the innovative tools and options companies provide to protect those accounts.”
Facebook offers a “Legacy Contact” function which allows users to select someone to manage their account after they pass on – or to decide if they’d like to have their account deleted upon verification of their death.
* From Bill Ashworth, Senior Legal DIrector, Public Policy, Yahoo…
“At Yahoo, we take our users’ privacy seriously. That’s why we’re concerned with the draft legislation currently before the Illinois State House of Representatives (HB 4131) which, if approved, would automatically–and without permission–give access to the online lives of our Illinois users to their fiduciary at the time of their death. Each of our users should decide when and how they share their personal emails, messages and photos. We believe that account holders and individuals—not legislators—should determine what happens to a person’s digital archives at the time of their death.”
* Companies almost never welcome these sorts of intrusions. But what about all the other online services one might have? A well-written statute would give us a uniform standard. Not saying that these bills are well-written, just sayin.
I personally haven’t set up any mechanism to give anyone authority to access my website, e-mail accounts, Facebook, Twitter, ScribbleLive, mobile phone, fax and e-mail distribution services, my computer password or even (come to think of it) my electronic gun safe passcode.
I really need to get that done soon. Not that I’m planning on going anywhere any time soon, mind you, just that stuff happens in life.
Anyway, to the bill…
* The Question: Regardless of how you feel about the particulars of this legislation, should there be a state law to determine a process for passing along digital assets when one dies or is incapacitated? Take the poll and then explain your answer in comments, please.
survey solution
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Rauner opens new front against unions
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* Erickson reports that Gov. Bruce Rauner’s administration asked the Illinois Municipal League to send an unusual e-mail to its members…
In an email to mayors across the state, the head of the lobbying organization for municipalities said Rauner has asked for city councils to consider a resolution asking the state to allow local right to work zones, as well as changes to prevailing wage laws and worker compensation laws.
* The governor even provided a draft resolution…
“Voters in our community should be allowed to decide via referendum whether or not employees should be forces to join a union or pay dues as a condition of employment.”
Also included in the sample resolution sent to more than 1,000 cities and villages is a question about right to work zones.
“Local control of bargaining would allow voters or local governments to determine if certain topics should be excluded from collective bargaining, including contracting, wages, provisions of health insurance.”
The governor’s office claims that there is no quid pro quo here, meaning that they won’t take into account how many municipalities pass their resolution when deciding how much to ding the locals in the ongoing budget process. As you already know, the governor wanted to sweep a ton of state revenue sharing money this fiscal year, but was blocked by the Senate Democrats. He’s also proposed a big sweep for next fiscal year.
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Your FY 15 House vote roundup
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* Monique Garcia…
Gov. Bruce Rauner and legislative leaders appear on track to resolve an immediate $1.6 billion deficit and avoid running out of money for prison guards and day care programs, though there’s no guarantee the rare show of bipartisan cooperation will hold up when the stakes get higher over a new budget in just a few weeks.
The fast-moving, short-term budget fix also put on public display the new political dynamic at the Capitol.
For more than a decade, Democrats controlled the legislature and the governor’s mansion, so Republicans were able to vote against budget measures without political repercussions while Democrats had to take tough votes. On Tuesday, Republicans in the House had to do much of the heavy lifting to support their rookie Republican governor, and Democrats had more political freedom to vote no. […]
Rauner would be given discretion to use a $97 million pot of money to help school districts that might be harmed by the cuts that come in the middle of the school year. He’ll also have access to another $90 million to help plug unforeseen budget problems that might arise.
The governor wanted complete discretion to make the cuts and transfers himself. He ended up with considerably less authority, but it’s a far better plan because legislators were not given a free pass.
* Doug Finke…
“The (plan is) evidence of our discussions with the House and governor’s office as it relates to education, health care and local government funding,” said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago. “Cullerton will be meeting with his caucus to measure support for passage.”
Two bills implementing the plan passed the House on votes of 69-48 and 72-45 on Tuesday. All House Republicans voted for the legislation except for Rep. Joe Sosnowski of Rockford, who was absent. All of the “no” votes on both bills came from Democrats. […]
Some parts of the budget will not be reduced. Pensions, state employee health care and programs to aid the mentally ill, developmentally disabled and autistic children will escape cuts.
Likewise, some of the special state funds will be left intact, particularly the local government distributive fund that channels state income tax money to cities and other local governments.
The mayors were big winners yesterday.
* Kerry Lester…
“This is not a perfect bill. It’s not a perfect solution. Some might say it’s not pretty but it responds to the governor’s request. It responds to the problem. It ought to be supported,” Madigan said.
Heather Steans, a Democrat and appropriations chair, expressed optimism that it could pass with fewer than half of Democrats supporting it and most Republicans.
Senate Democrats had resisted for weeks Rauner’s request for authority to move what he calls “nonessential” funds, fearing that he would take the money from programs Democrats support. The money is desperately needed to avoid child care, prisons and court reporter programs running out of money.
* Kurt Erickson…
The Senate could take the proposals up Thursday, the final day before lawmakers take a two week Easter recess. […]
The moves will allow Rauner to divert as much as $350 million from the fund that pays for downstate road construction projects. […]
Although the measure moved out of the House on a bipartisan vote it still faces hurdles in the Senate.
The Laborers International Union, for example, called on lawmakers to be wary of taking money out of the road construction fund.
“Projects — and the jobs they create — will be dropped either now or in years to come as a result of a road fund sweep,” noted a letter from the union to lawmakers.
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The story of Martin Brown
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* House Speaker Michael Madigan’s spokesman Steve Brown endured a heart-rending tragedy last year. He writes about it today in the St. Louis Beacon…
About four months before the shooting of Michael Brown in Ferguson, police less than 15 miles down I-70 in St. Charles shot another man named Brown. The event barely drew any attention from anyone except immediate family and friends.
The man killed was Martin Brown; Martin Brown is my brother.
St. Charles police were called to his home on Clark Court about 9 p.m. on April 16. One call came from his wife, and she said he needed a mental health evaluation. Another caller said the man was shooting fireworks and disturbing the neighbors. Police were told there were no weapons in the St. Charles man’s house. The fireworks complainant said, however, that the Brown had a “belligerent attitude and was pointing what looked like a large pistol.”
Within seven minutes of their arrival on the scene, one officer fired a failed Taser. Another repeatedly told Brown to drop the object in his hand and did not attempt a Taser shot. A third officer issued the same command, but did not fire a Taser. Less than three minutes after arriving on the scene, he had fired his SigSauer P226 nine times, and he was on the radio requesting an ambulance.
Martin Brown, 52, was pronounced dead at a nearby hospital.
Martin Brown was a brother, husband, father and grandfather. He had series of health problems in recent years. He had been drinking before the shooting. The medical examiner’s autopsy showed a blood alcohol level of 2.0, but no evidence of other drugs. St. Charles Police provided no records or reports of additional police incidents involving Brown.
Take a moment today and go read the whole thing.
* Brown also sent an accompanying note with his e-mail today…
Some of you know this story. Some do not.
A few months ago it was suggested this story might contribute to the efforts to help reform the use of lethal force. A version of this article is now part of the official record of the Presidential Task Force on 21st Century Policing. The following was published this morning by St. Louis Public Radio/St. Louis Beacon.
I think it is appropriate for you to have a little heads up. I am not certain how much attention, if any, it might draw. Several lawyers have reviewed the incident and determined there are not grounds for action. I am not sure Marty’s immediate family has reached the same conclusion.
I can only hope it might spur broader use of body cameras and more importantly better awareness by police on how to deal with incidents involving persons with health issues.
Police have a tough job, but they also have total control of lethal force . The combined elements create responsibility that must be treated very seriously.
Discuss.
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Schock’s former fundraiser piles on
Wednesday, Mar 25, 2015 - Posted by Rich Miller
* Oy…
Rep. Aaron Schock’s longtime fundraiser sent an email to the Illinois Republican’s donors, saying she feels “sad, angry, cheated” and filled with “total disgust, disbelief and disappointment” at the congressman’s alleged misspending of taxpayer and campaign dollars.
Lisa Wagner is an Illinois-based GOP fundraiser who worked for Schock for the past four years, helping to catapult him to the top tier of the Republican money world.
Wagner’s email offers a window into the sudden fallout and acute anger in Schock’s world from the scandal that brought down the fourth-term congressman, who announced his resignation last week effective March 31. Schock is now under investigation by the Justice Department. Schock aides have been called to testify before a federal grand jury next month in Springfield, Illinois.
“You personally and generously supported Aaron in the past and were very kind to him,” Wagner wrote in an email, obtained by POLITICO. “He deceived us all.” […]
“I believe he should be held accountable for his choices…. whatever the consequences [may] be…I have no sympathy for the him right now,” she wrote.
Go read the whole thing. To some folks I’ve talked with, her letter almost seemed like a note to the G that she was completely innocent. Others, however, saw it as a perhaps unintentional likely dangerous beacon for the feds. And to others, it appeared to be a way of shoring up her place in Jeb Bush’s presidential campaign.
I talked with Wagner on Monday. She called me about my own subscriber commentary on Schock and said writing her letter was “therapeutic” for her. She was genuinely saddened by this turn of events and seemed to be quite concerned about him. But she long ago went out of her way to alienate candidate Bruce Rauner when Schock was considering a gubernatorial bid, so she is most definitely out of favor these days.
By the way, she also told Politico that she’d since spoken with Schock and “started to separate the sin from the sinner.”
* Meanwhile, from a Jil Tracy press release…
“There have been reports that I am running for Congress in the 18th District, that I am not running, or that I am seeking a different office. All of that is flattering and I appreciate all of the encouragement and pledges of support. My career spans private business, legal practice, and public service, and I am fortunate to have had the opportunity to serve. I loved my time in the legislature and I miss working on solutions to serious problems and finding ways to make living in this country better for people who want to raise a family, build a career, and enjoy the freedom and opportunities that have made our country, and our state, great.
“To clarify, I am exploring the possibility of running but I believe that making any formal announcement is premature. I will continue my discussions and exploring the practicality of running until Governor Rauner announces the timetable for the special election. At that time I will take a final look at the electoral numbers, cost, and logistical realities of running and will then make a public announcement about what I intend to do.
Whether I decide to run, or to support another candidate and look for a different way to serve, I will continue doing my best to make sure that our region continues to be a place where we fight government overreach and wasteful spending, embrace fiscal responsibility, support the family, promote education, agribusiness, and commerce, and are unwavering in defense of our constitutional rights.”
* And from Ed Brady…
“I am looking at this race very seriously and will not make a final decision on becoming a candidate until Governor Rauner announces the timeline for the special primary and general elections. It appears I could be the only viable candidate in the race who is outside the political system.
“Washington needs someone with common-sense business experience, with conservative values and with practical experience working with issues that impact our district. We need pro-business legislation and less government regulation to help create jobs, stabilize employment and improve our economy in Illinois and the 18th District.
“I believe I could bring that perspective to Congress. I am continuing to assess the race and reach out throughout the district. Once Governor Rauner issues the election schedule, my wife, family and I, along with advice from my political allies, will decide whether running is the right thing for me to do at this time.
“It has been reassuring, when making calls throughout the district, that the voters have an open mind to someone new. I look forward to listening to their challenges and working toward solutions as we work for a better district, state and country.”
Rep. Dan Brady told me much the same thing yesterday.
The governor can’t formally set the election dates until Schock officially leaves office at the end of the month. Stay tuned.
* And in other news…
Kent Gray didn’t join the formal press conference at Saturday’s dinner, but said he’s also considering Schock’s seat. Gray said that as a Lincoln Land trustee, he represents seven on the 19 counties in the 18th Congressional District. He also remarked that 22 years ago he worked for Bob Michel, a former Republican member of the U.S. House of Representatives.
“I think if you talk to all the Republicans who end getting in this race, we’re gong to be very similar on our positions on pretty much everything,” Gray said. “My issues basically are government waste, cutting taxes and trying to get a hand on spending.”
Gray also said he’s focused on agriculture and free trade issues.
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Businesses fighting businesses
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* These B2B fights are never easy, but the Tribune has a solid story today about a legislative hearing on prohibiting floor prices for contact lenses and whether to prohibit lens manufacturers from refusing to sell to retailers which fail to comply with manufacturers’ demands…
Contact lens manufacturers began instituting price minimums more than a year ago, arguing that they would lower prices for consumers and encourage them to work with their eye doctors to find the right fit. But opponents say the price floors bar retailers from offering discounts on the products.
According to the article, just four manufacturing companies control 97 percent of sales.
* Retailers are crying foul…
Low-cost outlets such as Costco, Wal-Mart and 1-800-Contacts say nonnegotiable, minimum prices prevent retailers from selling lenses as cheaply as they’d like and, in some cases, drive up prices.
For example, a 30-day supply of Johnson & Johnson’s daily Acuvue Moist lenses that in 2014 cost $21.88 at Sam’s Club now sells for $33. At 1-800-Contacts, the same box cost $29.99 last year. This year it’s $33.00, according to data provided by 1-800-Contacts.
* But…
Eric Anderson of Northwestern University’s Kellogg School of Management, said many industries have pricing policies in place. Manufacturers of durable goods — refrigerators and coffee makers, for example — often set minimum prices so higher-end stores can compete with Amazon and Wal-Mart.
“If they don’t have a pricing policy for electronics, retailers will just stop selling the product,” Anderson said. “As a consumer, if you want to go see a television before you buy it — good luck. You won’t be able to go to Best Buy and see a television.”
Discuss.
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Question of the day
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* I know, I know, it’s just a bill and it won’t even be called for a vote this year…
Wisconsin and Virginia have begun conversations about privatizing flagship public universities. Now, Illinois is about to have the discussion. Bloomington Republican State Senator Bill Brady has introduced a bill to privatize Illinois’ public universities over six years. […]
Brady says he doubts he’ll call his bill this year but wants public debate on the measure.
* More from Brady…
“What is really the genesis of this bill is that when I was the Republican nominee for governor, I obviously spent time with university presidents, public and private, and really found two things that we’re really trying to solve here,” he said. “One is that the public universities told me how burdened they were by regulations from the Legislature, as compared to their private counterparts. My personal position is that we really ought to look at this because it may be the only way some of our universities thrive. I’m not saying survive, but thrive. We need to give them tools that would allow them to do a lot of things they just aren’t equipped to do now. […]
“It’s a discussion. A lot of people would probably be afraid to talk about what I’m suggesting here,” said Brady, a 22-year member of the General Assembly and graduate of Illinois Wesleyan University in Bloomington. “And my point is that someone’s got to be willing to say, ‘Let’s talk about it. Is there a way that this can be a win-win?’
“I’d like to elevate the discussion and what I’d like to find out is: How much do the regulations on the state universities weigh on those universities? Are they worth it? When we invest money in grants to Illinois residents, how do we hold them accountable? And is this a way that some of our universities that aren’t necessarily thriving — and by that, I believe they’re losing enrollment — do they need their own private board eventually and maybe they can raise more outside private money. And so that’s what this is all about.” […]
“I don’t pretend that my bill is the answer. I think it elevates the discussion. It could be the answer. I didn’t draft it with the idea that it didn’t make sense,” said Brady, whose Senate district includes part of Normal, the home of Illinois State University. “Having represented a campus for almost 20 years, I think I know a lot about what goes on in higher ed, so I think I bring a background in this. But I’m not suggesting that this answers every question that needs to be answered.”
Lucky for us, we can have a “discussion” right here.
* The Question: Should the state consider privatizing any of its universities? Take the poll and then explain your answer in comments, please.
picture polls
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[The following is a paid advertisement.]
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*** UPDATED x1 *** More union-related stuff
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* Somebody brought up this very same point over drinks last night…
Unions contend that Rauner is deliberately choking their resources in an attempt to weaken their position as they head into negotiations for a new employment contract, which is supposed to take effect July 1.
The Illinois AFL-CIO is the lead plaintiff in most of the cases, so they’re handling the money end. But AFSCME is named in the governor’s federal case and it has long had the Chicago firm of Cornfield & Feldman on retainer. They’re probably not cheap.
But an AFSCME spokesman avoided talking about short-term union finances today and focused instead on the long term, saying, in part, “The array of Rauner attacks seems clearly intended to wipe out the labor movement in Illinois, and not just in the public sector… Everybody understands what this is really about.”
* Meanwhile, the Illinois Policy Institute has become an issue in a Chicago aldermanic race. From a press release…
Alderman Mary O’Connor of the 41st Ward called on her opponent Anthony Napolitano to return campaign contributions from a right-wing, “dark money” organization with ties to the Illinois Policy Institute. Today, the Liberty Justice Center, an IPI backed law firm, filed a motion in court to bust unions in Illinois through the denial of collecting “fair share” dues. Napolitano has received thousands of dollars from the IPI’s sister organization, the Illinois Opportunity Project.
“41st ward families are sick and tired of the never-ending assault on unions who give working people a collective voice, and they deserve better than a candidate who takes money from the right-wing organizations pushing that very agenda. Anthony should immediately return the money he received from the extremist groups supporting his campaign, and denounce their union-busting efforts. They have no place in the 41st ward,” said O’Connor.
O’Connor, who was endorsed by the Chicago Federation of Labor, has fought for working people as Alderman the past four years in office through policies such as water and sewer reconstruction, a program that has put numerous union members to work rebuilding Chicago’s aging infrastructure. Her efforts have earned her the support of 9 labor organizations in her campaign for reelection.
Napolitano has taken thousands of dollars from organizations tied to the anti-union efforts of the Illinois Policy Institute and the Rauner administration.
* The totals aren’t much, just $3k from the Policy Institute’s political arm and $1k from the 43rd Ward GOP…
43rd Ward Republican Committeeman Chris Cleveland: “If Bruce Wins This Election, Then We Republicans Will Have a Mandate, A Very Big One, To Take on the Unions.” According to post by Chris Cleveland on 43rdwardrepublicans.com, “Bruce Rauner has made standing up to government unions the centerpiece of his campaign. He’ll follow through on it. And that, in my opinion, makes him the right choice for governor. I like Bill Brady, really I do. But now, a week out, neither he nor Dan Rutherford are serious contenders for the nomination. It’s time to make a choice, Rauner or Dillard. It’s an easy one. If Bruce wins this election, then we Republicans will have a mandate, a very big one, to take on the unions. We can go after them on the pension problem they created. We can go after them on failing schools. We can go after them on wild overspending. We can go after them on corruption. Imagine having a mandate, here in Illinois, to do what Scott Walker did in Wisconsin. Bruce will have it. The Rauner campaign didn’t write this. I did. And I mean it. Seriously, if you haven’t yet voted, please vote for Bruce Rauner. It’s time.”
* Despite that, Napolitano is getting even bigger bucks from firefighters and police unions.
The New York Times had an interesting story the other day about this very topic…
In recent weeks, Gov. Bruce Rauner of Illinois has traveled the state promoting his proposal for more than $2 billion in cuts to pensions for public employees. All public employees, that is, except police officers and firefighters.
“Those who put their lives on the line in service to our state deserve to be treated differently,” Mr. Rauner said in his February budget address to the state legislature.
By announcing the exemption, Mr. Rauner was following the lead of other Republican governors in the Midwest who have imposed unwelcome changes on state and local employees in the name of saving money and improving services.
In 2011, Gov. Scott Walker of Wisconsin introduced a bill that would roll back collective bargaining rights for government workers and require them to contribute more toward their own pensions and health coverage. He excluded police officers and firefighters from the legislation, known as Act 10, which he signed the following month.
On the state level, the first responder unions are not falling for the rhetoric. But this Chicago thing is an interesting little twist.
*** UPDATE *** With a hat tip to a commenter…
Rauner told WAND’s Doug Wolfe on Monday cities can offset the losses if a series of his reforms are enacted by the Illinois legislature. Among those would be giving municipalities more control over negotiating with police and fire unions. And, giving cities more control over police and fire pensions.
“If local governments can control what gets collectively bargained, who has to join a union or not in the local government, that frees up a significant amount of money as well,” Rauner stated. “They (police & fire) work for the local taxpayers, the local citizens. And there should be more control, local control of those pension issues.”
The commenter notes…
So just like right to work, he isn’t for it, but leave it up to someone else to do the dirty work.
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Why Illinois Needs The Low Carbon Portfolio Standard
Tuesday, Mar 24, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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* I had to meet some folks downtown last night, so I didn’t see this Rauner administration response to both the Illinois Policy Institute’s attempt to intervene on the governor’s side in his federal fair share court case and to yesterday’s federal court decision denying the governor’s attempt to have a state suit filed by unions moved to the federal bench. From Lance Trover…
“The unions are clearly attempting to avoid allowing the federal courts to decide this issue, but the governor’s lawsuit continues in the Northern District, where it was encouraging to see state employees file today to intervene in support of their First Amendment rights.”
Discuss.
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Rauner orders grant refunded to state
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* Sun-Times…
Gov. Bruce Rauner on Monday ordered a clout-heavy Chicago TV and movie studio to give back a $10 million state grant that his predecessor, Pat Quinn, had awarded to the studio’s owners to buy land that isn’t for sale.
The Rauner administration’s action came one day after the Chicago Sun-Times revealed that owners of six of the seven properties listed in the grant say they have no plans to sell their land to Cinespace Chicago Film Studios or anybody else. There’s no indication the seventh property is for sale, either.
Quinn’s administration, the Sun-Times also found, awarded the $10 million without any appraisals to justify the projected purchase prices listed by the studio’s owners.
Additionally, the former governor’s Department of Commerce and Economic opportunity had nothing to show that Cinespace had pending contracts to buy any of the properties — or even had been in negotiations to buy them, according to documents obtained under the Illinois Freedom of Information Act.
* We can talk about the value of these sorts of grants or even this particular grant, but there is some context here…
The former [Pat Quinn] aide, speaking only on the condition of anonymity, notes that the $10 million grant expires on June 30 and that Cinespace would have to repay any of the money it hasn’t spent.
The aide says it’s common practice for the state to write lump-sum grant checks to businesses like Cinespace that bring jobs to Illinois — particularly when the grants involve buying land.
“To get these deals done, you have to have liquidity,” the aide says. “There was quite a bit of due diligence and discussion, which is totally in keeping with these types of grants.” […]
Under the grant, Cinespace is required to put in twice as much of its own money as it spends from the state grant. That’s to go toward land acquisition and rehabilitation, as well as free rent for college film programs, including those at DePaul University and Columbia College Chicago.
Cinespace is a family-owned business run by former real estate developer Alex Pissios. It has used the millions of dollars it’s gotten from the state to turn what once was a Ryerson steel mill in North Lawndale into what the company touts as the biggest film studio east of Los Angeles.
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State budgets and personal budgets
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* Madeline Doubek…
Since Gov. Bruce Rauner proposed slashing spending so that it matches actual annual revenues, it seems all we hear about are the worst-case scenarios that would result as every group in Illinois fights to keep what they’ve been getting. And those worst-case scenarios sound pretty rough. […]
We know it will be painful and there might be some negative consequences from some of the cuts. It scares me, for instance, to think about having to cut help for young adults who’ve aged out of the foster system and who never have been dealt a decent hand in their short lives. But these are the conversations that must be had.
Illinois expects to collect $32 billion in tax revenue. Rauner proposes to cut more than $6 billion to deal with the deficit and spend $31.5 billion. It really would be painful if I had to cut my spending by 20 percent, but there was a time once when I had to find a way to cut 10 percent. Staycations happened rather than vacations. There were far fewer dinners out and drinks with friends after work.
I don’t kid myself. I know there are plenty of us in Illinois who cut all that and much more during the Great Recession. They’ve never recovered from it.
But now it’s up to all of us to figure out what we want to afford. What we’re willing to pay for and what we’re not willing to fund. What can we live without?
* OK, first of all, Gov. Rauner did not match spending with revenues. His budget plan is loaded with billions in phony savings.
And even with those magical mystery savings, he still had to do things like toss kids off ventilators. So, while most people might want to compare their own personal situations to the budget, being forced to take a “staycation” or buying fewer glasses of wine is quite a bit different than telling parentless kids who are wards of the state that DCFS will no longer be their parents and they’ll be completely on their own once they turn 18.
…Adding… From comments…
We need to cut, yes, but we need to cut things that would be described as those little luxuries she mentions cutting out of her personal budget. I didn’t see her mention cutting utilities, groceries, medical care out of her personal budget.
That’s exactly right.
* Also, not a word about revenues? Sheesh.
To compare my own family history to state budgeting, when I was a kid and my parents found themselves struggling financially (they had five boys) my dad would go out and get another job. He often worked three jobs when I was young. Did they also take out some loans to get through particularly tough times? Yep. Did my dad buy some cars (and an old tractor), fix them up and sell them for profits? Yep. Why? Because they recognized their need for more revenues. But did they also constantly watch their spending? Heck yes they did. Whew, did they ever.
* From a Senate Democratic press release…
Rockford resident and Illinois State University student Lauretta Schaefer testified in the Illinois Senate Appropriations I Committee yesterday about the effects Governor Rauner’s budget would have on the Department of Children and Family Services.
Schaefer receives a scholarship from DCFS that allows her to attend college - something she knew she couldn’t do otherwise.
“When I was 14 my adopted parents showed me the DCFS scholarship, and I knew that was my ticket to higher education. Without the scholarship, I wouldn’t be able to attend college. Even with it, I still work two jobs to make ends meet,” said Schaefer.
Under the proposed budget, DCFS’s budget faces a nearly $150 million cut. A majority of the cuts will eliminate services for DCFS youth who are 18 years or older.
Senator Steve Stadelman (D-Rockford) who sits on the Appropriations I Committee had concerns about the proposed cuts.
“Many of these children have no parents and no support system to fall back on once they reach the age of 18. As a parent of four, I know my children will still call me for help and advice once they reach 18. These children don’t have that safety net. If we cut these programs, these young adults will have no one to fall back on. We need to keep these programs to help these kids break the cycle of poverty, to grow up and become productive members of our society,” said Stadelman.
It’s truly worth your time to listen to her testimony…
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Is the ILGO another DLC?
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* Jim Dey writes about that new self described Democratic group Illinoisans for Growth and Opportunity, which claims to have $20 million for Democratic legislative races…
Perhaps a better comparison would be to the Democratic Leadership Council, the organization then-Arkansas Gov. Bill Clinton created in the late 1980s that was aimed at dragging the Democratic Party back from the political left to the more moderate center. Derided by the Rev. Jesse Jackson as “Democrats for the Leisure Class,” the DLC enjoyed vast success before folding.
“The DLC helped elect Bill Clinton to the presidency. That’s why people have to pay attention to the (ILGO),” said David Yepsen, who heads the Paul Simon Institute for Public Policy at Southern Illinois University in Carbondale.
The DLC did have a lot of political success, but it was constantly out there talking policy. And it folded because the rank and file grew tired of its corporatist rhetoric. The Democrats now talk a good populist game, which helps them be almost as corporatist as the DLC was. So far, we’re not getting much of anything from the ILGO except for vagaries about undefined principles.
* Brown is kinda down on the group…
Steve Brown, a spokesman for Democratic House Speaker Michael Madigan, said his boss “generally welcomes” those who want to become active in the Democratic Party. Beyond that, Brown said, he’s waiting for specifics.
“I don’t know much more than what I’ve read,” he said, describing the organization’s criticisms of Democratic leadership as “vague.” He predicted, however, that Democratic legislators are “not going to turn (their) backs” on traditional constituencies because “rich” people demand a shift in course.
“I’m not sure $20 million gets you very far any more,” said Brown, referring to the organization’s bankroll.
Um, $20 mil is still a lot of dough, Brownie. But, so far, Brown’s boss has been working with the governor. As I’ve said before, this may be more about intimidating the Senate President and his liberal caucus.
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* AP…
Lawmakers are scheduled to consider a new plan introduced by House Speaker Michael Madigan to end weeks of negotiations over plugging a $1.6 billion hole in this year’s state budget.
The Legislature faces a fast-approaching deadline to act as money runs out for subsidized childcare programs, prisons and court reporters.
The Chicago Democrat introduced the plan late Monday. It would authorize Republican Gov. Bruce Rauner to transfer $1.3 billion from other purposes, including parks and conservation. The rest would come from a 2.25 percent across-the-board budget cut. […]
Madigan’s spokesman declined to comment as did the governor’s office. Senate Democrats said they planned to review the “progress” with their caucus.
Subscribers know more, but the amendments are here and here. House Republican Leader Jim Durkin was added as a chief co-sponsor yesterday on both measures. Both measures are posted for hearings this morning in the House Executive Committee.
*** UPDATE 1 *** The fast tracking begins…
*** UPDATE 2 *** Subscribers were told about this earlier today…
*** UPDATE 3 *** Finke…
Rep. Barbara Flynn Currie, D-Chicago, said the cuts, including about a $150 million cut to education will be painful, but more than 80 percent of the budget hole is being filled by taking money from the special state funds. […]
To ease the impact of the education cuts, Gov. Bruce Rauner will be given discretion to use up to $97 million to aid districts that are facing severe financial problems because of the cuts.
“I think what we are looking at here are very serious problems that could result in the stoppage of education across the board,” Currie said.
Federal funds will not be touched as part of the plan. Also, Illinois hospitals agreed to a plan in which they pay to help leverage federal health care matching funds that are then returned to them.
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Fixing a city that still doesn’t work well
Tuesday, Mar 24, 2015 - Posted by Rich Miller
* Crain’s published an op-ed today that has some advice for whomever is elected Chicago’s mayor: Help small businesses start and grow. Here are a few of their suggestions, which are all pretty good..
Create easy-to-find checklists for license and permit applications. Entrepreneurs often have to spend hours waiting in City Hall only to be told they do not have all the paperwork they need to receive a license or permit.
Treat minor regulatory infractions with a friendly warning rather than a fine. Today, a first-time offense means a fine that runs in the hundreds of dollars, and often an administrative hearing that requires expensive legal support.
Reduce the administrative hearings that require businesses to spend money on legal representation. Chicago has an online system to deal with minor traffic violations like red-light tickets, but none for minor business violations. When business owners get a ticket, they must appear before the Department of Administrative Hearings and then sometimes appear again before the Department of Business Affairs, even when the ticket has been dismissed […]
Simplify signage and awning rules. Chicago should have a one-step online application for sign and awning permits. Today, the entire City Council votes on each signage request and on every awning that hangs over the public way. Furthermore, a bonded sign-erector is required to put up every sign.
Foster home businesses. Don’t outlaw the next Jeff Bezos. Let home businesses operate in garages so long as they don’t disturb the neighbors or impact the environment. Repeal the prohibition against home businesses hiring more than one employee, especially for remote employees. And end the restriction on selling homemade products outside of the home.
Make it quick to start up. It takes 32 days to start a professional-services business in Chicago. In Phoenix, an online system gets businesses through permitting and licensing in one day.
Discuss.
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[The following is a paid advertisement.]
Credit unions are committed to several cooperative principles, including social responsibility. At Staley Credit Union in Decatur, encouraging their members and the community to make steps toward better health is a top priority. Since 2006, the credit union has been a primary sponsor of the annual Penguin in the Park 5K. As a result of the credit union’s staunch support, this important community event has grown from 135 to nearly 1,000 participants.
Now in its 10th year, Penguin in the Park will once again receive more than $3,500 from Staley Credit Union for medals, t-shirts, sports bags, and other items. This event continues to be highly important to the credit union because health statistics in Macon County relative to obesity and physical inactivity exceed comparable data for all other Illinois counties.
Helping the community develop and maintain healthy lifestyles is just one facet of the credit union’s extensive outreach, which also includes awarding college scholarships, financially supporting a wide variety of city and county school athletic programs, post prom parties, and helping to sustain local food pantries. At the heart of the credit union philosophy is the principle of people before profits – and another reason why members are so fiercely loyal.
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