Gov. Pat Quinn today said the Illinois Senate will not head back to Springfield to vote on a nearly $3.7 billion pension borrowing plan until after the November election.
…Adding… I suppose this means I can finally get a haircut. My wife will be pleased, as will my mother.
But not on every topic…
Meanwhile, Quinn defended giving raises to certain members of his staff amid the state’s budget crisis, saying the bumps in pay corresponded with increases in responsibility. An Associated Press report found that Quinn has given 43 salary increases averaging 11.4 percent to 35 staffers in the past 15 months.
But Quinn said that despite the pay hikes, the budget for the governor’s office is less than it was when he took over for disgraced ex-Gov. Rod Blagojevich in January 2009.
“I raised individual members of my staff when they had a new assignment that required them to do a different jobs,” Quinn said. “Having said that, the overall budget of the governor’s office is 25 percent lower than it was when I was sworn in. I think that’s what the taxpayers are looking for. If you don’t cut the budget, then you’re not getting the job done. I’ve cut the budget of the governor’s office. I’ll continue to do so.”
*** UPDATE *** Bill Brady’s campaign responds…
“Today’s revelation shows there are two rules under Governor Pat Quinn - one for him and the powerful insider crowd, and another for all the rest of us.
While working families are tightening their belts and doing more with less, Pat Quinn is doling out massive pay raises to his own staff - and we’re paying for them. Today’s revelation shows, once again, that Pat Quinn is incapable of solving our fiscal crisis, and has lost control of state government. How many other agencies received pay raises?”
* Why Alexi Giannoulias didn’t just take a credit for future years’ taxes on his ‘09 tax return is beyond me. As it is, he’s hurt his own campaign by accepting a 100 percent tax refund on his state salary.
[Mark Kirk] said there is a big difference between the financial situation of Mr. Giannoulias and Mr. Brady, even though neither has had any income-tax liability of late due to reversals in their families’ businesses.
The difference is that “the Giannoulias family transferred this incredible $394-million bill” to the Federal Deposit Insurance Corp. when its Broadway Bank recently collapsed, he said.
But, in the same way that Mr. Giannoulias ought to pay something because he draws a state paycheck as Illinois treasurer, so should Mr. Brady, a state senator, Mr. Kirk said.
“If you are dependent on a salary paid by the taxpayers, you ought to pay tax,” Mr. Kirk said. “You ought to find a way to pay taxes.”
Kirk is exactly right on that second point. If you’re a politician, you need to find a way to pay taxes on your state salary.
And don’t think for a minute that Pat Quinn won’t use that quote against Bill Brady. This is obviously a game of every man for himself. Kirk played it today, Quinn will play it as well.
*** UPDATE *** Jason Plummer wasn’t spared, either…
And in another statement that could come back to hit the Republican candidate for lieutenant governor, Jason Plummer, Kirk said, “All statewide [candidates] should release their tax returns.” Brady initially refused to release his tax returns but relented. Plummer still has not released his and says he won’t.
But Kirk repeatedly dodged a question about himself…
Kirk also refused to say during the news conference whether he stands behind a statement that he was fired on while riding in a dutch armored vehicle in Afghanistan. He repeated several times that reporters should just look at the fitness reports he released about his military service.
I thought he was pledging to be Mr. Honesty these days?
* The McLean County Medical Society formed a PAC back in late March and transferred $201,000 out of what appears to be the Society’s operating fund to the PAC on June 23rd. It then contributed $200,000 to Sen. Bill Brady’s campaign on June 30th. Brady is from Bloomington, which is in McLean County. Quite a nice chunk of change there.
* This doesn’t look like a huge deal to me. I think 11th District GOP candidate Adam Kinzinger did a pretty good job explaining the reasoning in the final graf of our excerpt…
In the primary election, Kinzinger’s biography on his website and his news releases said he was serving in the Air Force Special Operations Command. […]
It turns out Kinzinger was detailed to Air Force Special Ops for two three-month stints in 2008 and 2009, but was not permanently assigned to Special Ops, Air Force officials said.
“The way it was worded was incorrect,” Dawn M. Hart, chief of community relations for AFSOC public affairs in Florida, told the Chicago Sun-Times on Saturday. “He only worked for [Air Force Special Operations Command] for those two assignments.” […]
Kinzinger was never disciplined by the Air Force for saying he works for Special Ops. But he changed his website to say that he “has worked for” Special Ops. […]
Changing “is” to “has” on his website was no bigger deal than changing his age from 31 to 32 in February, Kinzinger said.
If there’s more to this than I’m seeing here, then we’ll of course revisit. Your thoughts would be appreciated, however.
* The Tribune wants a new state law to guarantee special elections for vacant US Senate seats, but it does point out a serious problem with the case moving through the federal court system right now, which could force a special Senate election on the state…
Elections officials need 180 days lead time for a special election. That allows time for candidates to gather petitions and for challenges to be resolved, plus time to prepare the ballots, program the machinery, handle early and absentee balloting and deal with emergencies. As of Tuesday, there are 119 days until the Nov. 2 election.
* Roundup…
* Lawmaker divests nursing home stake: State Sen. Heather Steans has divested her ownership stake in a troubled southwest suburban nursing home that has faced repeated citations for serious patient neglect, including medical failures that allegedly contributed to two patients’ deaths. The December death of Cordelia Lee at Evergreen Health Care Center in Evergreen Park and another death of a 90-year-old patient last year are part of a pattern of substandard care that moved state health authorities earlier this month to revoke the facility’s license… Steans had no operational role in Evergreen, and the Chicago Democrat said that, following a Tribune report on the facility earlier this month, she shed her 2.8 percent interest in the home.
* David Axelrod headlining Giannoulias fund-raiser July 25
* Giannoulias: Obama will campaign for me: “I have a feeling he’ll be out here a few times before November,” Giannoulias said Tuesday in an appearance on the ABC News/Washington Post “Topline” Web show. Giannoulias said that he had not personally asked Obama to stump for him, but added: “The White House has been great; they’ll be out here.”
* Yet another charge that is gonna send Rod Blagojevich to prison. Lying to FBI agents. From this morning’s testimony by FBI supervising agent Patrick Murphy…
During that 2005 [FBI] interview, held in the offices of Winston & Strawn, Blagojevich said he maintained a separation between politics and fund-raising.
“He said he did not track who was contributing to him or how much they were contributing,” Murphy said. “This was a decision he made when he became governor,” he said Blagojevich told him.
Murphy, who is lauded as the investigative architect of the case, is testifying to the false statement charges in the indictment. Blago is charged with lying to the FBI about material matters in the investigation.
The surveillance tapes clearly show those statements to be outright lies. I’m not a huge fan of that “lying to a federal agent” law, but these are clear violations.
* My weekly syndicated newspaper column takes a look back…
During the long, excruciating overtime state legislative session of 2007, Illinois House Speaker Michael Madigan complained that Gov. Rod Blagojevich had a habit of diverting high-level discussions away from the budget and toward Madigan’s ties.
Madigan, it should be said, does wear some eye-catching ties. He takes no credit for his taste in clothing, however. His wife, he says, picks his ties out for him.
Speaker Madigan confided to me one day back then that whenever Blagojevich would compliment Madigan on his choice of ties, he would always complain that, as governor, he couldn’t afford such fashion gems. Madigan has a lucrative law practice which brings in a pretty penny. Blagojevich couldn’t do side jobs as governor, he would repeatedly explain to Madigan and everyone else in the room, so he couldn’t afford to dress like Madigan.
The House Speaker seemed quite frustrated at the time with Blagojevich’s fixation on his fetching ties, rather than on dealing with the budget deadlock and general political gridlock. After all, it wasn’t like Blagojevich dressed poorly. He always wore sharp clothes. He even showed up at the State Fair once dressed in designer blue jeans.
Thanks to his federal corruption trial, we now know that it was taste, not money, which caused Blagojevich to wax envious whenever he saw Madigan wearing a pretty tie.
According to testimony by an IRS agent last week, the former governor and his wife spent a mind-boggling $400,000 on clothes between 2002 and 2008.
Just for a little context, Blagojevich spent about half of his after-tax income as governor on clothes. Not to mention that the man usually worked out of his house or down the street at his campaign office.
All told, Blagojevich spent $206,000 at a single men’s store - the Tom James Company, a custom clothing maker. He spent another $31,000 at Geneva Custom Shirts. Blagojevich and his wife shelled out $57,000 to Saks Fifth Ave. and $29,000 to Neiman Marcus.
By August 2008, the Blagojeviches had run up over $90,000 in credit card debt - more than half of the governor’s gross annual salary. Their total “consumer debt” by the morning of Blagojevich’s arrest was more than $210,000.
Last week’s trial included the playing of a surveillance recording from November 2008 of Blagojevich bitterly complaining about how his wife’s real estate business was all but dead. Reporters had dug through Mrs. Blagojevich’s client list in an attempt to show she often did no work for the money she made off of connected insiders. During that process, reporters called several of her former clients, and that, combined with the negative publicity and Mrs. Blagojevich’s real fear of a federal indictment led to her company’s collapse.
A minute or two later, Blagojevich whined about an upcoming financial burden.
“Amy is going to college in six years and we can’t afford it. I can’t afford college for my daughter,” Blagojevich exclaimed.
During the six days after he complained about his dire financial situation, Blagojevich plunked down $858 for four ties at Saks.
Apparently, the man couldn’t help himself. It goes without saying that $400,000 would’ve paid for a whole lot of college tuition for both of his kids.
It also goes without saying that prosecutors have established a very strong financial motive for several of Blagojevich’s alleged crimes.
Financially, he was in way over his head. The very real possibility of impeachment, which he constantly fretted about on the tapes, would dry up his future earning prospects. His wife’s career was in ruins. He was at the end of the line. There would be no more designer ties, handmade shirts and custom suits he so clearly loved. When Barack Obama won the president’s race and his U.S. Senate seat suddenly became vacant, Blagojevich pounced on the opportunity as his ticket out of debt and back to the high life.
It won’t be difficult for Blagojevich’s jurors to make this connection. They’ve seen the fancy clothes he’s worn during the trial. None of them are millionaires who could afford such nonsense, so this is a devastating attack by the prosecution.
I hope Blagojevich doesn’t mind wearing orange, because a federal jumpsuit is most probably in his future.
* The FBI agent who ran wiretaps on Blagojevich: “He was in his running suit. He was stretching, running in place, animated. I couldn’t believe it. He couldn’t sit still,” Cullen said. “He kept combing back his hair. It was almost like he’s awaiting going on camera. But we were just here [in the FBI office] — no one was going to see him.”
* After taking a ribbing for not disclosing his income tax returns (the topic that won’t go away) Republican lt. governor nominee Jason Plummer was asked about his favorite baseball team. His answer wasn’t exactly standard IL GOP fare…
* The Question: I just got back from a baseball trip to Texas (Go Sox!), so how about telling us what your favorite baseball team is and why?
* The New York Times engaged in gross hyperbole over the weekend…
…but many analysts, liberal and conservative, warn of a potentially far grimmer reckoning — Greece by Lake Michigan. Borrowing costs are rising, nonprofits that depend on taxpayer money are dropping contracts, and the state’s pension costs and unpaid bills balloon each month.
That’s what’s known as lazy journalism.
The state is suffering through a fiscal crisis, no doubt about it. But one of those vaunted New York Times editors that I always read about should’ve demanded that this reporter reveal the names of those “liberal analysts” who are making that “Greece” comparison. Also, the state’s borrowing costs are predicted to rise (although strong interest from foreign buyers could mitigate the price increase), but haven’t really risen yet.
The “Little Tribune” editorial writers at the Daily Herald were quick to pounce, of course…
This is Illinois, which the New York Times over the weekend dubbed “Greece by Lake Michigan.”
* Things are undoubtedly horrific, but let’s take a look at some facts.
A recent report from the Illinois Commission on Government Forecasting and Accountability shows Illinois is ranked 9th in the nation per capita on its outstanding debt. That’s high, but far from the highest.
As for total state expenditures, Illinois ranked 21st in the nation per capita. K-12 state and local spending is ranked at 22nd per capita. State and local spending on public welfare programs was 30th in the nation on a per capita basis. All of those are below the national average.
And there’s plenty of room for future revenue increases, if the populace decides to go with a Democratic governor this fall…
Illinois ranked 7th in the nation in the amount collected from state government individual income taxes in 2009 with a total amount of $9.2 billion. On a per-capita basis, Illinois ranked 31st. Illinois’ per-capita rate of $711 was below the national average of $801 and well below the 1st ranked state in this category, New York, at $1,885 per capita. Illinois has had a flat personal income tax rate of 3.0% since it was
increased from 2.5% in July 1993. Of the seven states with a flat income tax (most have graduated rates) Illinois’ has the lowest rate. […]
In 2009, Illinois ranked 9th in the amount of sales tax revenue collected with a total of $7.5 billion. California collected the most, generating $29.0 billion. On a per-capita basis, Illinois ranked 37th in the nation with a value of $579 per capita. As shown in Chart 9, in the Midwest Region, only Missouri (42nd) was ranked lower than Illinois.
Illinois Gov. Pat Quinn has handed out raises topping 20 percent to his staff at a time when he’s promising $1.4 billion in spending cuts because of the fiscal crisis. An Associated Press analysis of documents shows Quinn has given 43 salary increases averaging 11.4 percent since he became governor.
They include a $24,000 bump to the man overseeing state spending. Budget Director David Vaught got a 20 percent raise — to $144,000 — when he was promoted in October.
* After endorsing his opponent in the Democratic primary and refusing to endorse either general election gubernatorial candidate four years ago, the Illinois Education Association has endorsed Pat Quinn for governor. From a press release…
“There never has been a more clear-cut choice for governor and lieutenant governor of Illinois. The Illinois Education Association enthusiastically recommends Governor Pat Quinn and Sheila Simon to our members and to everyone who supports public education,” Swanson said.
IEA represents more than 133,000 education employees including elementary and secondary teachers, higher education faculty and staff, educational support professionals, retired educators and college students preparing to become teachers.
* Acknowledging that the IEA has had its differences with Quinn, IEA President Ken Swanson. But Swanson lashed out at Republican Bill Brady’s opposition to new revenues, his plan to convert defined benefit pensions to 401(k) funds with no state contributions and his support for making Illinois a “right to work” state. Watch his video…
The backing of the IEA, one of the two major politically active teachers unions in Illinois, is a big victory for Quinn. Odds of the union backing Brady were slim because he opposes tax increases and backs dismantling the state’s education bureaucracy. But Quinn has done little to move his agenda with the Democratic legislature.
*** UPDATE *** From the Bill Brady campaign…
“The union leadership has unfortunately chosen the status quo. Governor Quinn’s answer to the crisis in Illinois is to keep spending, borrow money and raise taxes. Pat Quinn will fight for massive tax hikes, while I strongly oppose them. I am advocating a strong jobs climate that generates lasting job opportunities and revenues.
Pouring more and more of our tax dollars into the bureaucracy with no plan and no accountability is not the solution for improving education. But under four more years of Pat Quinn, that is exactly what will happen. I am standing with teachers to redirect our tax dollars away from the bureaucrats into where we need them most — our classrooms. The choice is clear, and I welcome this debate in the months ahead.”
* Related…
* Cost of Governor’s Campaign Going Down: State Sen. Bill Brady (R-Bloomington), the Republican candidate for governor, estimates he’ll spend $13 million to $20 million on his campaign this year, far short of the $27 million Rod Blagojevich spent to win in 2006. Republican Judy Baar Topinka spent $9.8 million on her unsuccessful campaign. Brady says he’ll economize by allowing the Blagojevich corruption trial to do some of the talking. “A lot of people are focused on the trial right now, so spending money through the summer months is not necessarily the most productive use of resources, which may delay some of the spending,” Brady says.
* Tea party rally focuses anger on Obama policies, Illinois politics: “We don’t have a president, we have a usurper,” said McKiernan, who identified herself as a volunteer with the Brady campaign.
* Tea Party bags GOP speakers at rally of ‘true patriots’: “It’s time to turn the State of Illinois around, isn’t it?” Brady said, standing on the steps of the Ansel Cook Mansion with his wife, Nancy. “Are we tired of tax increases? Are we tired of not paying our bills? (Are) we tired of record unemployment?”
* Libertyville hosts Tea Party event: “We’re good, solid people who care about their government and won’t take for granted their government anymore,” Republican candidate for governor Bill Brady said.
Democratic U.S. Senate candidate Alexi Giannoulias didn’t have to pay any state and federal income taxes last year because of big losses tied to his family’s failed Broadway Bank, according to his campaign and tax returns released Friday.
The wealthy state treasurer stands to collect about $30,000 in refunds, but immediately announced he would donate the money to charities. Giannoulias sought to avoid having his tax situation become a campaign issue that could anger voters who make less money, pay their taxes and don’t have much sympathy for a rich guy getting a break.
Giannoulias reported $2.7 million in losses last year. That represents the 3.6 percent he owned in non-voting bank shares, said campaign spokeswoman Kathleen Strand.
You can try burying a story before the 4th of July weekend, but people like me won’t let you.
Also, what Giannoulias doesn’t say is that a charitable donation would give himself another big tax deduction for this year’s return.
* If you thought that Mark Kirk would tread a bit lightly on this topic since fellow statewide Republican candidate Bill Brady is basically in the same boat, you’d be wrong. From a press release…
“Alexi Giannoulias wants to raise our taxes but doesn’t pay any taxes himself. After costing the FDIC $394 million and wiping out $73 million in college savings, Illinois voters can no longer afford Alexi Giannoulias.”
In response, the Giannoulias campaign flat-out lied…
When asked for comment by TPMDC, the Giannoulias camp turned the story right back to Kirk’s own personal dirt, relating to his previous inaccurate statements about his military record. Giannoulias spokesman Matt McGrath told us: “It comes as no surprise given his record of mistruths, half-truths and untruths about his military record, but when he says Alexi wants to raise taxes, Congressman Kirk is lying. Again.”
Giannoulias doesn’t want to raise taxes? Then why did he tell the Illinois Education Association that he’s “said from Day One,” that Illinois “needs an income tax increase”? Here’s the video…
Giannoulias also told the Chicago Tribune that if he is elected he would vote to let some current federal tax cuts expire, which is, in effect, a tax increase…
The Bush tax cuts for the wealthiest Americans generated some of the largest deficits in U.S. history and contributed nearly $2 trillion to our deficits. Those tax cuts were unnecessary and irresponsible, and I would allow them to expire.
You can usually see the true character of a campaign during a crisis, and the Giannoulias campaign has totally failed the test this time.
* The Illinois Republican Party has called on Giannoulias to give the cash to the FDIC. From a press release…
The Illinois Republican Party today called on Alexi Giannoulias to send his $30,000 in tax refunds for 2009 to the Federal Deposit Insurance Corporation (FDIC) as a down payment on the $394 million loss the FDIC incurred after the collapse of Broadway Bank. […]
“Alexi Giannoulias’ unsafe and unsound banking practices ultimately led to the collapse of Broadway Bank and the loss of $394 million to the Federal Deposit Insurance Fund,” ILGOP Chairman Pat Brady said. “Alexi wants to raise our income taxes but doesn’t pay any income taxes himself. Instead of using his distasteful tax refund to win another tax write-off, Alexi should do the right thing and send his refund to the FDIC.”
Congressman Kirk just announced that he’s holding a press conference at one o’clock this afternoon. Kirk has a very real opportunity to turn this race around again. Charlie Cook recently moved this race from lean Republican to toss-up. It’ll probably go back to lean Republican again.
* My own opinion is that Giannoulias ought to write a check to the state and federal government equal to the amount owed on his state treasurer’s salary. It’s the same position I had on Bill Brady’s taxes.
Using private business losses to avoid paying taxes on an elected official’s government salary is just plain wrong. And it’s especially bogus during a period of time when the state can’t pay its bills and the federal deficit is soaring.
This was submitted by John Patterson, who is leaving the Daily Herald today….
Today is my final day in the Daily Herald’s Springfield bureau. The walls have been stripped clean of the decade’s worth of clutter I’d compiled with some help of some outstanding interns over the years. The fridge is Miller’s and I hereby bequeath him the futon — his interns have to sleep somewhere.
Note: Out of respect for the passing there is no sound…
And this seems like a fitting farewell. This guy spent some time in Springfield too…
Tax documents belonging to Alexi Giannoulias show the Democratic U.S. Senate nominee will receive a tax return of at least $26,000. From the AP…
Losing millions of dollars through his family bank allowed Senate candidate Alexi Giannoulias to get a tax refund of nearly $26,000.
An aide says the Chicago Democrat will donate the money to charity.
Giannoulias released tax returns Friday that show $2.7 million in losses related to the failure of Broadway Bank.
Spokesman Matt McGrath says Giannoulias lost more money that doesn’t show up on the returns. He says the total loss is between $7 million and $30 million.
The charity has yet to be identified in reports thus far.
The Sun-Times, which is reporting in its story that Giannoulias’ return is closer to $30,000, breaks it down a little more…
Giannoulias’ share in family trust funds plummeted from an estimated “$8 million to $40 million” down to an estimated “$2.5 million to $11.5 million,” according to the financial disclosure form he is required to file as a candidate for U.S. Senate.
Other family trusts are doing well enough that his net worth could range from $7 million to $29 million, the report said. That’s down from the $13 million to $62 million range he reported last year.
Giannoulias’ income tax returns show he earned $119,000 from his job as state treasurer. He reported $414,757 in capital gains.
More…
Also, the night his family bank was seized, Giannoulias said he would not be filing for an income tax break he might be entitled to for struggling businesses.
ADDING… Rich has asked whether Giannoulias received a complete tax refund on his state treasurer’s salary, but has heard no reply.
*** UPDATED ***
The Alexi camp says he did receive a complete tax refund on the salary.
* The Daily Southtown today praised Joe Berrios’ decision to drop his challenge to Forrest Claypool’s nominating petitions. Here’s how the editorial board summed up…
We wish more candidates would drop fruitless and expensive ballot challenges and adopt a more democratic approach toward contested races. Instead of trying to clear the field, they should embrace the fight. Prove yourself to voters. Game on.
May the best candidate win.
* The Question: Should it be more difficult to challenge petition signatures? Explain.
* Here’s some good news, the prosecution expects to wrap things up in two weeks…
Government prosecutors have on a couple of occasions said they’re ahead of schedule in their case against the former governor of Illinois.
Now, the Chicago Sun-Times has just learned that prosecutors may rest its case against Rod Blagojevich the week after next.
Judge James Zagel had set aside 15-17 weeks for the trial.
The trial is only now in its fourth full week and the government is already moving on from the bulkiest part of its case — testimony about the U.S. Senate seat.
While there’s expected to be additional testimony in that regard, including about a $1.5 million promise of a contribution in exchange for a Jesse Jackson Jr. appointment, numerous key recordings were already played about the Senate seat.
Government witnesses have taken the stand and delivered explosive testimony at a quick clip. Key witnesses — including former chief of staff John Harris and lobbyist Lon Monk were on and off the stand in a matter of a few days.
By contrast, Stuart Levine, the chief witness in the trial of businessman Tony Rezko, was on the witness stand in that trial for parts of 15 days.
* Remember, this is the same guy who blasted “Gucci-wearing lobbyists” and worked mostly out of his home and his campaign office…
In November 2008, Rod Blagojevich was plotting for a new job with his advisers, loudly complaining he was desperate for cash.
“Amy is going to college in six years, and we can’t afford it,” Blagojevich screamed on the Nov. 10 call. “I feel like I’m f—— my children.”
Four days later, he dropped $429 on two ties at Saks Fifth Avenue.
Two days after that, he hit Saks again, spending another $429 on a pair of neckties.
Blagojevich and his wife were awash in more than $200,000 in consumer debt when he was arrested in December 2008, federal agent Shari Schindler said at the former governor’s corruption trial.
“Sometimes they used credit cards to pay for other credit cards,” Schindler said. […]
Several entries, Schindler said, showed Blagojevich spent more than $10,000 a day on suits. A basket-weave tie from Saks cost $179.85. Around the same time, Schindler said, Blagojevich spent $2,590 in a single store on shirts. A charge on Patti Blagojevich’s card showed a payment of $3,800 for furs.
The couple displayed a special fondness for Saks, spending around $57,000 there over the six-year period - the fifth-largest itemized expense; they spent $28,000 at Neiman Marcus, the 11th largest. By comparison, in the same period, they spent less than $50,000 on child care and less than $100,000 on groceries.
The Rezko cash payments weren’t enough. They needed a lot more money to stay afloat. As I told subscribers today, there’s your financial motive.
On Thursday, Rich Miller, who runs the Capitol Fax blog, asked his readers, “What’s the most money you’ve ever spent on an item of clothing?”
Few admitted to spending more than $500, even fewer said more than $1,000.
Money is a mirror. How you spend yours reveals who you are. It reflects your activities and your aspirations.
The $400,000 Blagojevich and his wife spent on clothes during his years as governor offer a telling portrait, and a sad one.
It’s a portrait of a man out of touch and out of control, consumed by appearances, striving to belong to an elite of leading men and titans that the best suits in the world would never let him enter.
The jury will never forget - and won’t likely forgive - that IRS testimony.
[Vaught’s] peculiar assertion that borrowing $3.7 billion to make the state’s 2011 pension payments would be a form of refinancing unfunded pension obligations that have been piling up for decades was a stretch too far for us to accept.
What Vaught actually said was the state was trying to convert far more expensive “soft debt” to much cheaper “hard debt.” The pension funds charge the state 8 percent interest on old, unpaid debt. The bond markets charge about half that or even less. Much of that $3.7 billion that Quinn wants to borrow is for old debt, but not all, of course. The state is borrowing the entire amount owed to the pension funds, including money to make this fiscal year’s individual pension payments.
That’s not too hard to understand, is it?
* Tribune reporters weren’t all that supportive, either…
Gov. Pat Quinn pledged Thursday to whittle $1 billion in spending, his cuts hitting students and the mentally ill especially hard.
Even with his unprecedented power to shape the budget, Quinn’s cuts will do little to chop down the state’s mountain of debt. Illinois still faces a $13 billion shortfall next year. […]
It’s a budget that counts on a large dose of hope. Quinn is counting on Congress and President Barack Obama to come up with $750 million to help pay for health care for the poor. And the governor is hoping the Illinois Senate changes its mind and votes to borrow $3.7 billion to keep the pension system afloat.
Republicans pounced, contending that $891 million in Quinn’s cuts simply are promises to keep money in reserv
When a state supposedly run by grownups fails to do its job, the result is the budget Gov. Quinn signed Thursday.
It’s built around borrowing and whacks people who can least take the hit. The latest victims are people with developmental or other disabilities and those seeking mental health services.
If you’re not Medicaid eligible and you received state-funded counseling in June, you’ll probably be cut off soon.
If you’re not dirt poor and disabled, you could be out of luck if you need rehabilitation services.
And the pain you’ll suffer really gets Illinois nowhere.
One of the main sentiments expressed Thursday about Illinois’ new budget was disappointment - either in the cuts made, or that the state put itself in a position to render such cuts necessary.
AFSCME is also concerned about an executive order Quinn issued Thursday directing state agencies to make further reductions on their own, ranging from curtailing travel to canceling unnecessary subscriptions and memberships to slashing printing expenses by 25 percent.
One part of the order also directs agencies to develop a plan “to limit expenditures associated with group insurance, including increasing employee and retiree group insurance co-payments and deductibles.”
“We’re very firm in our belief that our contract sets contribution rates for state employees and retirees,” Lindall said.
Vaught said the administration intends to bargain with unions over the issue.
After speaking with state Department of Human Service officials on Thursday, one thing is clear for SPARC in Springfield, according to Carlissa Puckett, SPARC chief executive officer.
The agency’s Epilepsy Resource Center, funded with grants from state general revenue, will close, Puckett said.
Republican State Senator Matt Murphy is skeptical about Illinois Governor Pat Quinn’s budget cuts. […]
MURPHY: I think it’s another insincere effort at convincing… a head fake towards fiscal responsibility to get through the election when they can pass an income tax hike.
The education budget cuts announced Thursday were not as bad as they could have been, according to local education officials, who remain uncertain about when they’ll actually get the money.
As part of $1.4 billion in budget cuts, Gov. Pat Quinn trimmed $241 million from several school grant programs. He left the general state aid formula, the centerpiece of the state’s funding for schools, intact.
“It’s far better than it could have been,” said David Wood, Bloomington District 87’s chief legal and financial officer.
Among the $6.5 million Decatur has yet to receive for the fiscal year just ended on June 30 is transportation funding.
“What am I supposed to do if I can’t fund transportation? How am I supposed to get children to school?” she said. “How are we supposed to function? What am I as a superintendent supposed to do? We’ve already cut $7 million from our budget. What am I supposed to do to make sure that the staff receives salaries and benefits and the children are educated? You need staff to educate children.”
The district is working on a month-to-month basis right now, she said, because there’s no way to predict when or if state funds will show up. Last week, districts throughout the state finally received a long-overdue payment, which brought them up to November. They’re all still owed payments from December through June.
The only agency that will see an increase in funding is the Department of Health Care and Family Services, where the budget went up by $162 million. The department will have to make a $7.2 million cut in operating costs. About $169.2 million will go toward getting certain Medicaid providers on a 30-day reimbursement cycle, which is required to capture a higher match of federal funds.
* I told you yesterday how Bill Brady reacted to the budget. Here’s the Quinn campaign’s response…
Governor Quinn’s strong action today makes the contrast between the two candidates even sharper.
After a thorough review of the state budget, Governor Quinn struck a balance - cutting $1.4 billion in state spending, while protecting healthcare, education, and public safety programs to nurture Illinois’ economic recovery.
As a member of the Illinois General Assembly, Senator Brady had the chance to lead this session. Instead, he stood in the way of every constructive plan that was put forward and has routinely placed politics ahead of Illinois residents.
He’s proposed a billion-dollar tax cut for big businesses without specifying how he’d pay for it. He has called for a 10 percent across-the-board cut for state departments, which would drastically reduce vital services such as education, health care, and public safety while making the state ineligible for federal matching funds. And he’d lower the minimum wage for hard-working families.
Bill Brady’s every economic proposal has been derided by experts. It’s apparent that Senator Brady fails to understand the complexities of our budget.
* If you were wondering whether gun owner rights groups would challenge Chicago’s new gun restriction proposals, this could be your answer…
“There are numerous problems,” said Alexa Fritts, a spokeswoman for the National Rifle Association. “It is extremely restrictive and completely against the intent of the Supreme Court ruling.
“It is ludicrous for someone to fear prosecution for fending off an attacker in their garage,” she added.
The National Rifle Association argued that mandatory classroom training, parental permission, registration fees and one gun-a-month limit are “unconstitutional impediments” to gun ownership.
Professor Ann Lousin of the John Marshall Law School said that doesn’t mean this ordinance won’t face legal challenges. She said the registration provisions will likely be the first thing challenged in court.
The National Rifle Association has already threatened to challenge a new gun ordinance.
In The Week Magazine, National Rifle Association chief Wayne LaPierre said any “byzantine labyrinth of regulations and restrictions” would be contrary to the spirit of the Supreme Court decision, and “the opinion of Mayor Daley doesn’t entitle him to throw out the Bill of Rights.”
Union leaders want construction contractors to come to the negotiating table this weekend, before a scheduled Wednesday meeting, to settle a strike that has stopped work on the Eisenhower Expy. and other area road and building projects.
“Our members are on strike, and we want to get back to negotiating,” said James Sweeney, president of the International Union of Operating Engineers, Local 150, which represents heavy-equipment operators. “Why wait?”
“Why strike?” retorted Tom Nordeen, chairman of the Mid-America Regional Bargaining Association, which represents contractors. MARBA wants to stick to the July 7 date.
Obviously, we have a complete standoff on our hands. More…
“We made ourselves available 24 hours a day, and the employers only agreed to meet four times in the entire month,” said James Sweeney. “The livelihoods of thousands of working men and women depend on these negotiations, and while we have made ourselves available, the employers are running out the back door of meetings.”
MARBA representatives have said that they are not seeking to reduce wages, and expressed surprise that working laborers would leave their jobs in the midst of such an unstable economy.
Sweeny said the union is not seeking a wage increase for the next three years, but added that the contractors have an obligation to help cover the increased costs of health care and unemployment benefits.
“We are feeding 1,000 families a week with boxes of food. We are covering COBRA payments for 1,200 families who have lost health-care coverage. We have spent millions upon millions of dollars to make sure that our members are provided for, so for them to insinuate that we are not aware of the economic conditions is insulting,” Sweeney said.
“Their negotiations have not been in good faith,” said James Sweeney, president of IUOE Local 150.
“We see no reason for a strike. We are going back negotiating on the 7th. It was mutually agreed upon yesterday,” said Lissa Christman, MARBA.
“It was a dictated date. They walked out and told us that would be the date they were coming. If they’re saying that, it’s an untruth,” said Sweeney.
* Gov. Quinn has asked his top staff to call around and see what he can do, but no action has yet been taken. Gov. George Ryan intervened years ago to stop a similar strike.
* Most of the projects would’ve been shut down anyway for the July 4th holiday, but without some sort of intervention, this work action could last well into the month…
The strike so far is not expected to cause major delays for state road projects because the Illinois Department of Transportation typically suspends construction wherever possible before a holiday weekend, said IDOT spokeswoman Marisa Kollias. She said that even without the strike, IDOT would have shut down construction on roadways by 3 p.m. today.
* The Eisenhower Expressway project appears to be the biggest one involved…
For now, the labor dispute has put the brakes on some 300 projects. If it drags on for awhile, the biggest concern is the Ike.
Projects on hold ranged from a 32-story structure being built at Roosevelt University to a main thoroughfare in Oak Park that will now have to wait for its second layer of asphalt.
Elgin-area projects on hold include work that was supposed to start Tuesday on a bridge between King Arthur Court and Rohrssen Road/Littleton Trail on Route 19 (Irving Park Road) that goes over the EJ&E rail line. The work had been expedited to take just a month because IDOT intends to close the road entirely in the work zone while completing the $248,000 project.
State Rep. Keith Farnham said he talked with IDOT officials, who told him if the strike should linger until late summer, the project could be delayed for a year to avoid closing the road while school is in session.
Motorists are enjoying a relatively traffic free commute into the city this morning after two major highway workers unions enacted a strike after negotiations with contractors fell through.
Cars were cruising, lanes were open and nary a construction worker could be seen.
The Illinois Department of Transportation cleared most roads of lane closures, signage and gear in preparation for the Laborers District Council of Chicago and the Local 150 of the International Union of Operating Engineers strike Wednesday morning. The workers’ equipment is parked out of the way on road shoulders.
Former Illinois governor Rod Blagojevich’s legal team confirmed to WLS Radio on Thursday that a subpoena was in fact mailed to attorney’s representing Illinois state treasurer and U.S. Senate candidate Alexi Giannoulias.
Defense attorney Sam Adam Jr. told WLS’ Holly Garland that the subpoena was mailed to Giannoulias between April 27th and April 29th.
Giannoulias disclosed the subpoena late last month.
* Keep in mind that this story is a targeted leak, not an actual report, but those are some pretty darned strong numbers…
Illinois Rep. Mark Kirk brought in $2.3 million for his Senate bid in the second quarter of 2010, making the last three months the strongest fundraising period of his campaign even as a sustained controversy over his military service threatened to undermine his standing in the polls.
A source close to the Republican’s campaign said Kirk raised $1 million just in the month of June, when the flap over a series of biographical misstatements was unfolding. Asked if the controversy impacted fundraising, a campaign adviser said: “The results speak for themselves.” […]
Kirk, a five-term North Shore Chicago congressman, has raised around $9 million through the cycle.
Alexi Giannoulias’ campaign isn’t releasing their numbers yet.
* Meanwhile, where the heck has Chris Cilliza been for the past year? Get a load of this lede…
In just the last 48 hours, the Illinois Senate race between state Treasurer Alexi Giannoulias (D) and Rep. Mark Kirk (R) has turned very nasty.
Please. These guys have been going at each other’s throats since day one.
*** UPDATE 1 *** A Mark Kirk campaign press release just revealed that the campaign is reporting $3.9 million cash on hand. Kirk had $3.7 million cash on hand at the end of the last quarter, [the number in that Lynn Sweet column is inacurrate - he actually had about $3 million COH] meaning he spent just about all most of the money he raised this quarter. That’s [still] a heckuva burn rate.
At one point, Quinn seemed to suggest he considers the budget balanced.
“There’s no hole left,” he said at a Chicago news conference.
* From Bill Brady’s campaign…
Governor Quinn has apparently cranked up the old Rod Blagojevich razzle dazzle machine.
It’s too little too late. Despite the $13 billion deficit and increased government spending – Governor Quinn has done nothing to address the structural problems in state government. Instead he continues to propose his 33 percent income tax increase that takes more money out of the pockets of Illinois residents.
The taxpayers have had enough.
Governor Quinn today cut less than one-half percent from the state budget with a supposed promise to cut more. The people of Illinois know that those cuts won’t happen. Last year, Governor Quinn promised to cut spending by $1 billion – and instead state spending increased.
Illinois has lost a record number of jobs. Unemployment is at a 26-year high. More than 200,000 jobs have been lost under Governor Quinn’s failed leadership.
Sen. Matt Murphy, a budget experts for Senate Republicans, was quick to criticize. He said Quinn’s outline contained “a lot more fiction, I think, than fact.”
Taking the brunt of the cuts are programs serving the physically and mentally disabled. There were no announced layoffs, but the state workforce will drop by about 1,000 employees by not replacing workers who leave the public sector. […]
State universities will see an overall cut of $96 million, which essentially reflects the absence of federal stimulus dollars this coming year.
Unlike former Gov. Rod Blagojevich, Quinn did not target the prison system for cuts. Rather than threaten to lay off workers or close prisons, Quinn hopes to save $42 million by managing overtime costs. […]
The Illinois State Police will see a $15.4 million reduction, but Quinn has backed off his earlier threat to shutter district headquarters.
The Illinois Department of Public Health will see a $17 million cut. Among programs on the chopping block are a prostate cancer awareness initiative and rural health grants.
Quinn also issued an executive order aimed at cutting costs for everything from in-state travel to magazine subscriptions.
*Elementary and secondary education: Cuts $241 million in categorical programs, including $84 million in transportation, $68 million in reading improvement grants and $70 million for other grants.
*Human Services: Cuts $312.6 million. More than $262 million is to come from grants. Non-Medicaid programs in mental health and developmental disabilities will be reduced or eliminated, payments will be delayed for developmental disabilities programs, and eligibility will be limited for several other programs.
*Healthcare and Family Services: Increases $162 million
*Public Health: Cuts $17 million. Women’s and rural health grants, medical student scholarships and community health center expansion are among areas to be reduced.
*Children and Family Services: Cuts $6 million. Bed counts will be reduced in institutions and group homes.
IRS Agent Shari Schindler just testified that Rod and Patti Blagojevich spent $400,000 in clothing expenses between 2002 and 2008. Of that, $207,000 was spent Oxxford Clothes, a luxury clothier that Rod fancied. Thousands more were spent at Saks Fifth Avenue, Neiman Marcus and Geneva Custom Shirts.
And he’s complaining about money troubles?
…Adding… Their clothing expense works out to roughly half of Blagojevich’s after-tax income as governor. You think this’ll stick in the jurors’ minds? Oh, yeah.
With charts and graphs, she’s explaining a flow of money from Tony Rezko’s Rezmar Corp. to Patti Blagojevich’s firm, River Realty.
Prosecutors noted that nowhere on the Blagojevich family’s tax returns — which were publicly released while Rod was governor — is there any indication that Rezko money went to Patti.
The Blagojeviches’ income peaked in 2004 at $392,392. By 2008 — the year we hear recordings of Blagojevich angsting about his cash flow — it’s down to $226,795.
By August of 2008, Schindler testified, the Blagojevich and his wife owed more than $90,000 in credit-card debt and were also $220,000 in the red on a home-equity loan. Several witnesses have testified that near the end of his term in office Blagojevich appeared to be obsessed with finding ways to make more money.
Schindler also explained charts she had prepared showing large flows of money ending up in the pockets of Blagojevich or his wife, Patti, from businesses associated with Rezko, a developer later convicted of corrupting state boards.
The money from Rezko began flowing to the Blagojeviches around the same time that a $600,000 loan connected to a state pension deal was made to a business associate of Rezko. The loan was extended by lobbyist Robert Kjellander, also a top official in the state Republican party who had just been paid more than $800,000 as his cut from brokering a deal to steer $10 billion in state underwriting business to Bear Stearns.
In another series of transactions explained by Schindler, Rezko’s development firm, Rezmar, was paid $40,000 in commissions on January 21, 2004, from a real estate deal. The next day, Rezmar wrote a check for the same amount to River Realty, a company owned by Patti Blagojevich. Then the following day, River Realty wrote another check to Patti Blagojevich for $40,000.
* Related…
* State ethics officer: Rod Blagojevich completed ethics training
* FBI tapes: Blago frustrated by Obama’s lack of cooperation: “They all leave town and I’m stuck with gridlock . . . impeachment . . . and a f—— president who’s all talk and no give?” Blagojevich said.
* Mayor Daley outlined his response today to the US Supreme Court’s ruling that struck down the city’s handgun ban…
* following DC ordinance and registration of no more than one handgun per month,
* two step process to own and register
* no ownership for anyone convicted of a violent crime
* no ownership for anyone with 2 or more DUIs
* no ownership for anyone convicted on a domestic violence charge
* bans assault weapons
* bans gun shops
* requires firearms safety training
* requires city firearms permit, state FOI card and registration with the Chicago Police Department
Mayor Daley today backed off his plan to limit Chicagoans to one handgun and dropped the idea of requiring liability insurance altogether in the wake of the U.S. Supreme Court’s decision to shoot down the city’s handgun ban.
The replacement ordinance outlined by the mayor was considerably weaker than Daley and top mayoral aides had initially described. […]
No more than one firearm in the home could be “assembled and operable.” The rest “must be broken down in a non-functioning state or shall have trigger lock or other mehanism making the firearm temporarily inoperable.”
As expected, gun shops would be prohibited in the city of Chicago, under the ordinance.
Chicagoans would be required to register their weapons, but only after obtaining firearms safety training comprised of at least four hours in the classroom and one hour on a firing range.
Also, if a gun owner “knows or has reason to believe” that a minor is present, the one operable gun would have to be “held by the person” or “physically seucred on the person’s body” to avoid falling into the hands of children. If not, that one gun would also have to be secured or disassembled.
* Assault weapons are banned, as is the possession of ammunition by anyone who does not have a valid FOID card and registration for a gun of the same caliber.
* Applicants must be at least 21 years old, unless a parent signs for a child age 18 or older.
* To protect the city against costs for a lawsuit in case a police officer shoots an armed person while responding to a home, Daley also said the city will pursue legislation at the state and federal levels granting liability immunity for first responders and the city.
* The ordinance bars anyone from possessing a handgun outside a home, which excludes garages, outdoor areas, hotel rooms and group-living quarters.
* Former Chicago Ald. Marty Oberman sued last year to force a special election for US Senate. He claimed the US Constitution requires a special election and the appointment of Roland Burris was only temporary and the state should’ve set special election dates.
The lower court ruled against his request for a preliminary injunction, so Oberman appealed last fall. As we’ve already discussed, a confusing, long-winded and obtuse appellate opinion [fixed link] was finally handed down in June that claimed a special election was necessary, but no election was actually ordered.
“It’s extremely difficult to try to shoehorn in a process where candidates file petitions to get on the ballot and then the ballots are prepared and the voting equipment is prepared and then to get all that stuff deployed in the polling places, then get all that machinery system back into the warehouse,” said James Allen, spokesman for the Chicago Board of Election Commissioners. “You still have to accept absentee ballots for 14 days after the election; you may not have a proclamation until say the end of September, and then at the end of September, you’re supposed to be sending ballots out to overseas and military voters for the general election.”
* You can read the attorney general’s motion that was filed yesterday by clicking here. From the motion…
…in declining to hold that the period between November 2, 2010 and January 3, 2011 is de minimis… the decision misapprehends Illinois law, which does not permit a candidate elected on November 2 to assume office until election results are certified in early December, when there will be few to no days left in the Senate session, and the decision fails to account for the risk of serious prejudice to Illinois voters if the State must include two elections for the same Senate seat on the November ballot. Finally, the decision errs in presuming that sufficient time remains before the general election to include an additional
Senate race on the November 2 ballot consistent with Illinois law.
Translation: Even if there was time to hold a special primary and a special election, which there isn’t if we follow state and federal laws, the new Senator would be in office about a month, over the Christmas break. That’s a lot of cash for no benefit. Ridiculous.
Plaintiffs argue that adding a second ballot could be done at no cost to taxpayers if the candidates are chosen by party leadership
Translation: The three state party chairmen could appoint candidates to the general special election ballot. According to the attorney general and the Chicago elections board, that would be against state law…
10 ILCS 5/7-1 of the Election Code states:
“Except as otherwise provided in this Article, the nomination of all candidates for all elective State, congressional, judicial and county officers … shall be made in the manner provided in this Article 7 and not otherwise.” ie through a primary.
10 ILCS 5/7-61 then reads: “Whenever a special election is necessary the provisions of this Article are applicable to the nomination of candidates to be voted for at such special election…” and then goes on to detail a primary.
Thus, even if the code does not specifically refer to a U.S. Senate special election, it does give clear direction.
Also, why bother to even hold a special general if the party leaders are gonna just appoint the nominees anyway?
* Yesterday’s court hearing produced no results, and we may not get any direction for weeks. It’s also possible, maybe probable, that the full appellate panel will take the case back and look at it. From James Allen of the Chicago Board of Election Commissioners…
The next hearing on this matter was scheduled for Wed., July 21 — but Judge Grady advised all parties to be prepared to return to court sooner in the event the 7th District Court of Appeals acts before then to affirm, clarify, amend or otherwise change the opinion it issued on June 16 regarding the need for a Nov. 2 Special Election for the U.S. Senate seat currently held by Roland Burris.
* I sure hope Oberman isn’t pursuing this suit because of any eligible reimbursable expenses from the state. But the timing of the appellate ruling now means that there just aren’t enough weeks left to run this silly special election. He needs to drop it and move on.
*** UPDATE 1 *** From Champaign County Clerk Mark Shelden’s blog…
In fact, if a special primary election would be held, it is all but certain that military ballots would not go out in time to meet the new standards set up by the MOVE Act.
It could also be argued, persuasively, that a simple tweak to the Election Code could clarify this issue for this election. That would require a special session, but the cost of that vs. the cost of a special primary is not even close. If Judge Grady, at the U.S. District Court, tries to take the authority for this process away from the legislature, the legislature should wrest it back and save taxpayers the money of the special election and not imperil the November election, especially the votes of those overseas.
*** UPDATE 2 *** From Marty Oberman…
The plaintiffs’ position is that, consistent with the election code and the constitution, the nominees for a special election to be held on Nov. 2, 2010, could be chosen through the same mechanism now contained in the election code for filling vacancies in nominations, i.e., the party central committees can choose the nominees. This appears to be what happened in the special election ordered by the 7th Circuit in 1970 when George Collins was elected to the House. This same approach was upheld by the 3rd Circuit Court of Appeals to flll the vacancy when Pennsylvania Senator Heinz was killed in a plane crash in 1991.
There is no requirement in the election code for a primary for a special senate election because the legislature never thought about it.
If the plaintiffs’ approach is followed, there will be not one penny of extra cost to the taxpayers and the principles in the constitution will be upheld. We still think the constitution is important, don’t we?
* As we discussed a bit yesterday, road-construction projects are being halted in the Chicago area as two unions have voted to strike. From the Sun-Times…
A strike today by construction workers could delay road-building projects such as the resurfacing of the Eisenhower Expy.
The Laborers’ District Council of Chicago and Vicinity voted to strike earlier this week, and workers were already striking at some locations Wednesday. The International Union of Operating Engineers, Local 150, voted to strike Wednesday night and expected to stop work this morning.
The unions seek health-benefit-package increases of 15 percent over three years, while companies have offered a 1 percent hike, according to Dennis Culloton, spokesman for the Mid-America Regional Bargaining Association, which represents local contractors.
The parties are scheduled to talk Monday. The current contract expired May 31.
“It’s MARBA’s position they should continue to work and continue to earn their $45 to $50 an hour in the meantime,” Culloton said.
Late Wednesday, Local 150 of the International Union of Operating Engineers, whose members operate heavy machinery, voted to authorize a strike that was expected to begin at midnight. Other unions that could follow include carpenters, cement masons and technical engineers.
The laborers and the equipment operators unions represent about 15,000 employees in a 10-county area that includes the Chicago region, officials said.
“We are in OK shape right now on the Eisenhower and we will be OK if the strike lasts a couple of days,'’ Kollias said. “But if this goes on for a couple of weeks or a month, the project will be seriously delayed.'’
Sticking points were 10 to 15 percent increases in health care and reduction in annual work hours from 1,600 to 1,000 on average.
“Contrary to the employers’ rhetoric, we understand full well the pain this economy has caused for construction workers,” Local 150 President James Sweeney said in a statement.
Contractors argued that operating engineers and laborers are paid between $35 to $45 an hour and demands for increases were impossible in the economic climate that has devastated the construction industry.
“Why not continue to work? There’s another negotiation session set for July 7,” MARBA spokeswoman Lissa Christman said.
* Yesterday, I asked both the Operating Engineers and the contractors to submit their sides of the story. Let’s start with the contractors…
Tom Nordeen, Chairman of the Mid-America Regional Bargaining Association (MARBA) today made the following statement in response to reports that local trade unions representing area construction workers are planning to or are on strike:
“For months, MARBA negotiators have been engaged in collective bargaining talks with unions representing the carpenters, cement masons, laborers, operating engineers and technical engineers. We are disappointed to learn the Operating Engineers Local 150 plans to join the Laborers District Council in authorizing a strike as soon as tomorrow (Thursday, July 1).
“We do not believe the unions should strike because we have another negotiating session scheduled with both unions for July 7th. In the meantime, the Operating engineers can continue to work and earn more than $45 dollars-an-hour in wages—totaling more than $68 dollars-an-hour in wages plus benefits –while both sides participate in good-faith talks. While both parties negotiate, the Laborers District Council members can continue to earn more than $35 dollars-an-hour—totaling more than $53 dollars-an-hour in wages plus benefits. While we talk, these union members can continue to earn good salaries on projects important to local taxpayers and consumers.
“Unemployment in the trades is as high as 40 percent, yet MARBA negotiators have been struggling to engage union representatives in an agreement that reflects the reality of the worst economic recession in 80 years. We are all competing for work at prices far below what we were able to secure in years past. But so far, the unions have been unwilling to reconsider their demands for substantial increases in hourly wage packages—15 percent over the next three years– that far exceed cost of living increases and health benefit plans available to the average Illinois worker.
“The hourly increases that the unions have proposed simply do not reflect the truth of what has happened to the industry. And they don’t reflect the reality that these increased costs would ultimately be borne by the taxpayers on publicly funded jobs.
“The talks are continuing and the unions do not have to go on strike. The only way the men and women of the union trades can again put their skills to work and provide for their families in these tough times is for their union officials to bring a sense of reality and some shared sacrifice to the table.”
* From the Operating Engineers Local 150…
[Last night], thousands of members of the International Union of Operating Engineers, Local 150 voted unanimously to authorize a strike, affecting approximately 8,500 members working under several agreements throughout 9 counties in northeastern Illinois.
The strike will begin at midnight, at the conclusion of at 30-day “cooling off” period, during which both sides were required to meet three times per week toward an agreement. “We made ourselves available 24 hours a day, and the employers only agreed to meet four times in the entire month,” said James M. Sweeney, President-Business Manager of Local 150. “The livelihoods of thousands of working men and women depend on these negotiations, and while we have made ourselves available, the employers are running out the back door of meetings.”
The agreement ended on May 31, and negotiations between Local 150 and employer groups Mid-America Regional Bargaining Association (MARBA) and Excavators, Inc. have produced little more than a stalemate. Employers walked out of negotiations on Monday, June 28th, and stated that they would not be willing to meet again until July 7th, fully aware that Local 150 members had been without a contract for nearly one month and that a meeting would be held to vote on a contract proposal tonight.
“Our proposal does not include wage increases over the next three years,” said Sweeney. “But with healthcare inflation estimated at 10-12 percent annually over the next three years, we have costs that need to be covered. Local 150 is going to use its reserves to cover the approximate $150 million healthcare shortfall over the next three years caused by the reduction in hours worked.” Members who averaged 1,600 hours annually a few years ago have seen their yearly hours sink to 1,000 on average. This results in significantly lessened contributions to the funds.
“Local 150 members took money out of their pockets to stabilize these funds last year, and now we are using our reserves. We have done our part, and we are asking employers to share the burden,” said Sweeney. “These funds are administered jointly by labor and management, so they have a responsibility as we do to ensure that these funds are stable.”
“Contrary to the employers’ rhetoric, we understand full well the pain this economy has caused for construction workers. We are feeding 1,000 families a week with boxes of food. We are covering COBRA payments for 1,200 families who have lost healthcare coverage. We have spent millions upon millions of dollars to make sure that our members are provided for, so for them to insinuate that we are not aware of the economic conditions is insulting.”
At this time, employers have not offered to meet any earlier than their originally set date of July 7. Local 150 will remain available for negotiations, but according to Sweeney, “we cannot make them sit down with us.”
The International Union of Operating Engineers, Local 150 is a labor union representing more than 23,000 working men and women in Illinois, Indiana and Iowa. Local 150 represents workers in various industries, including construction, construction material production, concrete pumping, steel mill service, slag production, landscaping, public works and others.
* Your thoughts?
*** UPDATE *** Todd Vandermyde of the Operating Engineers sent these dot points over yesterday. They could be helpful to the discussion…
· Our contract expires May 31st with a 30 day cooling off period.
· So June 30th is the end – it’s in the contract everyone knows it CONTRACTORS included.
· The contract also states that they – both sides are to meet 3 times a week during June.
· The contractors only wanted to & met 4 times in June.
· On Monday (6/28) during negotiations the contractors called for a caucus. After a while a representative came back to say they had left and would meet again on July 7th.
· We started announcing the special meeting for [last night] on June 15th for what we hoped would be for a contract ratification. In the absence of a contract proposal beyond the talked about .65 an hour total package – not even any real contract language changes proposed, it will turn to a strike vote with no formal proposal to bring to the membership.
· The contractors’ proposal of 0, 0, 0 for three years translates into a 20% reduction in wages on the check with what we will have to pull out just to meet healthcare inflationary costs, retire healthcare and pension costs.
· Our proposal is NOT looking for a wage increase, merely looking to cover inflationary cost of healthcare.
*** 10:36 am *** Click here for an advance look at $91 million in cuts to the community services program. An impact summary…
DMH projects over 70,000 consumers including over 4,200 children will lose access to basic mental health care including medications, psychiatry visits and case management. In addition, over 4,000 consumers will be displaced from their residential settings in the community. Most may be placed into nursing homes.
*** 10:38 am *** The governor has started talking.
After a thorough review of the state’s operating budget for the coming fiscal year, Governor Pat Quinn today announced major reductions to state spending while prioritizing the tools needed to keep the Illinois economy moving forward. Governor Quinn also issued an Executive Order to place additional restrictions on government spending.
Governor Quinn reduced the fiscal year 2011 budget by $1.4 billion, while preserving core services of education, health care and public safety. […]
Governor Quinn today acted on the following bills:
* House Bill 859: Appropriations: Reduction vetoed
* Senate Bill 1215: Technical Appropriation Changes: Signed into law
* Senate Bill 3660: Emergency Budget Act: Signed into law
* Senate Bill 3662: Budget Implementation Act: Signed into law […]
The Governor also allocated funds for several high-priority programs, including:
* $206 million to maintain early childhood education programs throughout the state
* $26.7 million to fund adult education programs at community colleges, which in turn qualifies for an additional $48 million in federal matching dollars
* $55 million to fund community mental health programs to maintain funding for community mental health residential programs
* $325 million to maintain funding that allows eligible seniors to remain in their homes, rather than moving into nursing home, through the Department on Aging’s Community Care Program
The Executive Order Governor Quinn signed today requires spending reductions such as: travel expenses, vehicle use, printing, telecommunications, overtime pay, leasing of office space, contractual spending, energy efficiency, managed care for Medicaid and sale of surplus equipment and property.
This year’s budget will be $24.9 billion, down from last year’s $26.3 billion, officials said. That represents the amount spent out of the state’s main checking accounts.
*** 11:48 am *** End. Thoughts?
[ *** End of Updates *** ]
* Gov. Pat Quinn will outline what he intends to do with state budget cuts in Chicago today at 10:30. The governor was given a “lump sum” budget by the General Assembly and granted extraordinary emergency powers as well.
Illinois Information Service will be streaming the presser live…
If you do watch or listen, help everyone else out by live-blogging in comments. I’ll also update this post.
* Your budget roundup…
* Painful cuts loom in OK of state budget today: The thinking is Quinn today will sign a state budget that is billions of dollars in the red, announce painful budget cuts for the 2011 fiscal year that begins today and push off paying billions of dollars in past-due bills.
* Quinn to unveil fix for budget gap: The Chicago Democrat also may use the occasion to pressure lawmakers to return to Springfield and approve borrowing about $4 billion to make the state’s annual contributions to government pension systems. Without permission to borrow the money, Quinn will have to find it elsewhere, meaning deeper cuts throughout the budget.
* Quinn to unveil his state budget plans today: The only area he identified was “bureaucracy,” implying reductions in direct government expenses, such as employee costs. However, Quinn is limited on that front because of an agreement the administration reached earlier this year with the American Federation of State, County and Municipal Employees, the largest of state government’s employee unions.
* Medicaid funds may not come through: All the governors involved said they have made historic cuts to their budgets, and ending the higher rate would force them to cut into basic essential services such as education… California Gov. Arnold Schwarzenegger, whose state would get about $1.8 billion from the proposed extension, agreed. He said it is wrong for Congress to mandate coverage levels but refuse to give states more funding when a recession makes demand go up. “The federal government cannot have it both ways. … It’s simply unfair and will have devastating consequences.”
* Cadillac or Chevy, pensions too costly: The Sun-Times editorial objects to the Civic Committee’s use of the word “Cadillac” to describe Illinois’ pension plan for its employees, but the facts are more important than the adjectives. State employees with enough years of service can retire with full pensions at age 55. (Chicago employees can retire with full pensions at 50.) State retirees get automatic 3 percent cost adjustments whether there is inflation or not.
* Critics say 401(k)-style state plan unworkable, expensive: Critics of creating a 401(k)-style retirement benefit for public employees Wednesday pounced on gubernatorial candidate Bill Brady’s suggestion that the state move away from its current pension programs and into a system widely used in private industry. The idea might actually increase the cost of retirement programs and would provide a less secure retirement for workers, opponents said. “It is idiotic on every level,” said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a leading critic of state budgeting.
* State’s unpaid bill tally stands at about $4.5B: Those still owed money from the state on Wednesday include schools, universities, caretakers of seniors and business owners like Decatur pharmacy owner Dale Colee.
