Gov. Pritzker Appoints 29-Year IDOT Veteran to Lead Department
Building on a strong team of diverse experts in their fields, Governor JB Pritzker announced the following personnel appointment:
Omer Osman will serve as Secretary of the Illinois Department of Transportation (IDOT). Osman has over 29 years of experience in the civil engineering and management field at IDOT. In his most recent role as Deputy Secretary for the Office of Project Implementation, he is responsible for guiding day-to-day program delivery and developing both short- and long-term technical policies and procedures. Prior to his current position, Osman served as the Director of Highways, Deputy Director of Region 5 and District Four Project Implementation and Operations Engineer. He has been an integral member of the statewide Diversity and Recruitment Team that had managed to increase and integrate a diverse population of IDOT’s technical staff. Osman received his Master of Science in civil engineering from Bradley University and his Bachelor of Science in civil engineering from Southern University.
Osman is an African-American and that agency has been very white throughout the decades.
S&P Global Ratings believes that Illinois’ (BBB-/Stable) executive budget proposal precariously balances the current budget, but punts measures to address fiscal progress to future years. It prioritizes service solvency at the expense of lower pension contributions and does not make meaningful progress toward tackling the $7.9 billion bill backlog or projected out-year deficits. The governor called the fiscal 2020 budget a “bridge” and laid out the framework of a multiyear strategy whose success hinges largely on a tough campaign to pass a progressive income tax that requires a constitutional amendment. Its pension component also relies on unidentified asset transfers to the pension plans, but no savings from those asset transfers are built into the fiscal 2020 budget plan. Illinois has a track record of leaving difficult fiscal choices to future budgets, and to the extent that reforms do not materialize to offset weaker pension funding, the fiscal 2020 budget could weaken the state’s credit trajectory. […]
The new administration laid out a five-step plan that infuses assets into the pension systems, but undermines funding progress through extending the plans’ amortization period for budgetary relief. […]
We consider the fiscal 2020 budget’s balance dubious. First, it relies on legalization of sports betting and recreational marijuana, which could take the state longer than it estimates to implement. Second, revenue projections could prove optimistic given our expectation that U.S. economic growth will slow. The budget estimates 3.19% growth in base individual income taxes and 2.79% growth in base sales taxes, and if the state misses these projections, it would quickly exhaust its 0.4% budgeted surplus and has minimal cushion to weather additional fiscal pressures that would accompany an economic downturn. However, in our view, reliance on a degree of uncertain revenues and lingering structural imbalance is status quo for Illinois.
More consequential for credit quality, the proposed budget asks legislators to reduce pension contributions based on the faith that future years’ budgets will address fiscal sustainability. The governor has predicated his multiyear strategy on a progressive income tax that requires a constitutional amendment that will not appear on the ballot until November 2020. This revenue stream is far from certain, and there is no detail yet on rates, brackets, or the amount of revenue it is supposed to generate. Despite the potential for a more collaborative budget process with single-party control of state government, Illinois has yet to prove its ability to make politically difficult decisions in favor of structural balance and sustainability. If it adopts the budget in its current form, it remains at risk of repeating a pattern of putting off hard choices while eroding pension funding. Illinois cannot indefinitely push out pension payments given benefit payout requirements, and we saw in 2017 that it faces limits to its bill backlog. If the state fails to redeem its longer pension amortization schedule through a practical reduction in liabilities, its credit trajectory could slip.
Cook County Board President Toni Preckwinkle announced Sunday she would return $116,000 raised at a campaign fundraiser that embattled Ald. Edward Burke hosted at his home last January, an about-face after a week of potentially damaging revelations about her history with him. […]
A copy of the invitation for the fundraiser at Burke’s home reads, “Chairman Edward M. Burke would like to invite you to a fundraiser in support of Hon. Toni Preckwinkle.” But Preckwinkle on Friday said it was Burke’s wife, Illinois Supreme Court Justice Anne Burke, who arranged the fundraiser.
Asked why the justice’s name wasn’t on the invite instead of the alderman’s, Preckwinkle replied, “She was a candidate at the time, so the invitation came from Ed.” Anne Burke was seeking retention to a second 10-year term as a justice, and such high-level jurists often try to maintain an appearance of being above the political fray.
[Mayoral candidate Lori Lightfoot] argued that Preckwinkle has “made herself a fact witness in the Ed Burke case” because of the fundraiser and would be “questioned by the FBI” if she hasn’t been already.
“They’re gonna want to know what was said. How did this fundraiser come to be? And they’re gonna look, of course, at every dollar that was raised during that fundraiser to make a determination if Ed Burke put the arm improperly on anybody else,” Lightfoot said.
Lightfoot scoffed at Preckwinkle’s claim that Illinois Supreme Court Justice Anne Burke —not the alderman— was responsible for throwing the January, 2018 fundraiser at the Burke home.
“She threw Anne Burke under the bus. Of course, Anne Burke had nothing to do with that fundraiser…She’s a good and able judge. She knows what the rules are. That had nothing to do with Anne Burke. It had everything to do with Toni Preckwinkle’s relationship with Ed Burke,” Lightfoot said.
* And now, this…
There is only one way to get to the truth so today I filed a request with the Judicial Inquiry Board to investigate Justice Anne Burke's fundraiser for Toni Preckwinkle. Either Anne Burke violated the judicial code of ethics or Toni Preckwinkle is lying. #ChiMayor2019#twillpic.twitter.com/ttHckRcQN8
Asked about the complaint filed with the Illinois Judicial Inquiry Board, a spokesman for the state's high court @illinoiscourts just told @WBEZ: 'No comment as this is a pending matter.'
Jeff Orr told WBEZ he does not support any candidate in Tuesday’s mayoral election, but his father has endorsed Preckwinkle rival Lori Lightfoot.
And Preckwinkle’s campaign accused Jeff Orr of being a Lightfoot supporter, too.
“This is pure politics from a supporter of one of Toni’s political opponents the weekend before the election,” the campaign said in a statement Friday. “The details of the event have been known for several months. But now, a couple of days before the election, this supporter of millionaire corporate attorney Lori Lightfoot files a claim. Why?”
* About 25 minutes ago, I received a text message with a link pointing me to this Tribune op-ed by Greg Baise, who, according to the paper, is the “chairman of Ideas Illinois, a pro-job-creation political committee.” The op-ed was published online at 11:40 this morning. Exerpt…
To be clear, Illinois has the second highest property taxes in the nation. Politicians in Springfield have raised income taxes by historic amounts, yet we are still billions in the hole.
The Pritzker administration would say that’s where its “progressive income tax” comes in. The state raises taxes on people at a certain income level, and they pay for all the new spending ideas. Ask some of the small business owners and job creators you know how they feel about that.
Let’s call it the “jobs tax” — because it will accelerate the push of already-struggling job creators out of Illinois.
In addition, the governor has floated this idea without telling voters the rates at which they would be taxed.
Raise your hand if you think it’s a good idea to give Springfield politicians, through a state constitutional amendment, an unfettered ability to raise taxes year after year.
* Then minutes later I received a texted heads-up about a forthcoming statement from Senate Republican Leader Bill Brady. It arrived a few minutes ago…
The Democrat’s graduated income tax plan is nothing more than a tax increase on the middle class. What we need to be focusing on is advancing policies that attract businesses and jobs, grow our economy and provide our over-taxed homeowners with relief.
* Exactly one minute later, this statement from House Republican Leader Jim Durkin landed in my in-box…
State Rep. Jim Durkin (R-Western Springs) today released the following statement on the Progressive Tax:
My caucus is united in its opposition to the Democrats’ tax increase on Illinois families and employers. Higher taxes won’t solve our problems, nor have they ever as history has shown. Higher taxes only lead to more spending and more government programs. Until our state learns to live within its means, we should not ask for another penny from Illinois families, workers and businesses.
* There’s a bit of a competition brewing between Baise’s group and the Illinois Policy Institute to lead the anti-progressive tax charge. There’s potentially a whole lot of money to harvest for this push, so it should be fun to watch. And while I’m not saying that Brady and Durkin are aligning with Baise, I’m just saying that was an interesting little coinkydink. (The SGOPs, by the way, say it was a total coincidence.)
Both advocacy groups are currently running Facebook ads railing against the progressive tax. Click here for the Policy Institute ads and click here for the Baise ads.
The Institute is also running dozens of Facebook ads railing against a possible tax hike on motorists. Click here to see those ads.
To ensure the public is better protected from those who lose their right to carry deadly weapons, Cook County Sheriff Thomas J. Dart proposed legislation Thursday to create countywide police units to recover those weapons and to improve information sharing about those firearms.
The move would close loopholes in state law and processes that Sheriff Dart and anti-violence advocates have long pointed out. Currently, Illinois law relies on an “honor system” when an individual’s firearm license (FOID) is revoked, which often happens because of an arrest, an order of protection or a court’s determination that the person is a danger to themselves or others.
Under the law, such an individual is sent a letter by state police directing them to turn their weapons over to police or another person lawfully able to carry weapons. Additionally, critical information about whether the person attempted to purchase weapons – before or after the revocation – is not shared with local law enforcement.
Sheriff Dart’s proposal requires such information to be shared with local police within 24 hours of a revocation or attempted purchase.
The legislation also mandates the creation of countywide units to recover weapons from those who have their FOID cards revoked. The units will be led by the county sheriff and include members of the county state’s attorney office and local law enforcement. The legislation directs a portion of existing state FOID fees to the effort. Plus, the proposal increases the penalty from a misdemeanor to a Class 4 felony for those who fail to relinquish their weapons when their FOID is revoked.
In 2013, Sheriff Dart created a specialized unit to recover weapons and revoked FOID cards in Cook County. So far, the unit has recovered more than 1,000 firearms.
Additionally, the Sheriff is proposing an increase in the FOID card application fee from $10 to $15, the additional money would be deposited into a fund dedicated to revocation enforcement.
“Last week’s tragedy at the Henry Pratt Company serves as a stark reminder of these dangerous loopholes in our current laws,” Sheriff Dart said. “Too many times there are clear warning signs about deadly violence. We must do more as a state to ensure law enforcement is reacting to those signs and has the information and tools necessary to do so. As we are constantly and tragically reminded, lives are at stake.”
* The Question: Your opinion of Dart’s ideas? Make sure to explain.
Matt Magalis, acting secretary of the Illinois Department of Transportation, laid out just some of the numbers to a Senate panel that’s been tasked with putting together a plan.
“We currently have 79 million square feet of bridges requiring maintenance and updates,” he said. “That’s over 730 state bridges. We also have a need over the next 10 years of additional funding of $13-15 billion for our highways. That is just maintenance. We also have a need for capacity (highway expansion) that is in the billions of dollars.”
In addition to highways, Magalis said there is a long list of needed upgrades for other forms of transportation: $250 million in state funds for airports around the state, not including Chicago’s O’Hare and Midway airports; $19.1 billion for public transit; $800 million for passenger rail; and $4 billion for freight rail.
Also, Margalis said, locks and dams along the state’s waterways, which carry a significant volume of freight, are facing costs in the “hundreds of millions of dollars.”
That totals $39 billion without the highway expansions, Chicago airports and the locks and dams.
* And that doesn’t include “vertical.” NPR Illinois…
Requests for money from across state government and beyond are starting to pile up.
The leaking roofs, aging plumbing, and failing heating and cooling systems at state facilities could cost up to $7.8 billion and, at public colleges and universities, $6.5 billion, according to the Capital Development Board, the agency responsible for state construction. And the Illinois State Board of Education says deferred maintenance at local schools totals around $9.6 billion. […]
While senators heard testimony from state agencies, elsewhere in the Capitol state representatives fielded requests for money for more pre-K classrooms and other deferred maintenance in schools, upgrades to Navy Pier, 10,000 units of affordable housing, and replacement of drinking water pipes that contain lead.
That totals $23.9 billion without the stuff in the second paragraph.
“Given available data from public health research on smoking habits in Illinois, cigarette consumption is likely to continue decreasing over the next few years,” said an entry in the budget book prepared by Pritzker’s office.
It was accompanied by a chart showing cigarette tax receipts dropping from $807 million in the 2016 fiscal year (which ended June 30, 2016) to an estimated $700 million this year. The last cigarette tax hike was in 2012 when it was increased by $1 a pack to $1.98.
Illinois ranks 19th in the country now for the level of its cigarette tax. The only state adjoining Illinois with a higher tax is Wisconsin at $2.52 a pack. It would still be higher if Illinois enacts the latest increase.
However, Illinois will be surrounded by other states with far lower cigarette taxes, including Missouri which ranks 50th at 17-cents a pack.
“They’re putting nails in our coffins,” said Bill Fleischli, executive vice-president of the Illinois Petroleum Marketers Association, Illinois Association of Convenience Stores, who also pointed to the effort to raise the tobacco purchasing age. “They raised the minimum wage, they’re going to try to tax gasoline.”
On February 6th, University of Chicago College Republicans President Brett Barbin spoke to David Krupa, a candidate for alderman in Chicago’s 13th Ward, over the phone. They discussed allegations against Krupa made by the candidate’s ex-girlfriend, Juliet Schmidt. These allegations are outlined in an emergency order of protection filed by Schmidt’s family, which has since been vacated.
The content of the conversation left Barbin unsettled, and he came to Gate reporters with his concerns. The Gate has since spoken with Barbin, Krupa, Schmidt, and others to investigate the allegations ahead of the February 26th Chicago election. […]
Krupa claims that the allegations in the documents were falsified by [Juliet’s father] Michael Schmidt in order to keep the couple apart. […]
However, Juliet Schmidt told the Gate that she agreed with her parents that an EOP was necessary, and that she was afraid of seeing Krupa at the time the order of protection was filed.
Schmidt said the idea of filing an order of protection was first suggested by a social worker she met with due to issues in her relationship with Krupa. Her teacher, Amy Fritsch, confirmed she sent Schmidt to see the social worker during school hours. Her father corroborated that the idea of filing an EOP was first proposed by the social worker. Schmidt said that her father filed the EOP on her behalf due to the fact she was only 17 years old at the time. “My dad did file it,” she said, “but it was my decision.”
[Krupa] said the judge in the case was never going to side with him because she was female. He wished he had had a white, male judge who had faced these kinds of allegations in the past, stating that then he would have been fine. In the midst of our conversation about the case, Mr. Krupa admitted to one of the allegations. In a conversation about his condom use, Mr. Krupa said he did not like wearing a condom during sex and never did early on in his relationship with his ex-girlfriend. But, later on, his ex-girlfriend asked him to start using a condom when the relationship was falling apart. I then asked if he ever took his condom off without her consent. He confirmed this, and said that she never had a problem with unprotected sex at the beginning of their relationship. He then questioned the difference that it made.
To the best of my knowledge, Mr. Krupa has only categorically denied these allegations to the public. He has dismissed them as politically motivated and fabricated by his ex-girlfriend’s father who did not want them to date. Based on the conversation I had with Mr. Krupa on February 6, I believe his public denials to be at least partially false. […]
Mr. Krupa is seeking an office with the responsibility of handling millions in public tax dollars. He has opened himself up to criticism and rigorous vetting in order to earn the public’s endorsement and trust. I would never want a representative who could so easily and consistently lie about his background.
As a Republican in Chicago, I often find myself at odds with the prevailing opinion. However, I think we can all agree that City Council does not need any more lies and deception.
Contrary to recent releases, Paul Vallas will not be participating in aldermanic candidate David Krupa’s “New Chicago Way Coalition” or joint press conference regarding the initiative. We did not provide or approve use of our logo. Any questions regarding the matter can be directed to our media contact.
And…
Our press conference for this afternoon has been postponed. Another date will be announced.
Other [Gov. Pritzker budget] ideas included making a recent [pension] buyout program permanent.
State Rep. Mark Batinick, R-Plainfield, who helped craft the buyout program last year, said making it permanent could be irreversible and possibly be abused, costing taxpayers more.
“The way to do something like this is to expand it, not make the small thing we’re doing permanent, but to expand the buyouts and do it for a short period of time,” Batinick said.
Batinick said if the buyout were made permanent, the state constitution’s pension-protection clause would make it impossible to undo. He said the program needs a sunset date. Instead, Batinick said the state needs to find other incentives to get eligible people to take the buyout in a limited time frame.
“I didn’t hear those,” Batinick said after Pritzker’s budget speech Wednesday. “What I just heard was more borrowing, higher taxes, more spending and counting on revenue that has yet to be realized with new programs.”
Fitch analysts said extending the plans indefinitely could add to current year budget pressures by eliminating the incentive for those eligible to sign up for a buyout this year, reducing estimated savings.
State Rep. Robert Martwick, D-Chicago, who also helped usher in the buyout plans last year, said there’s also the risk of negative selection.
“The most common example would be ‘I’m set to retire but I found out that I only have three weeks to live and so I go in and I take a buyout,’ and so the state loses because it would be a negative selection.”
Gov. J.B. Pritzker said Thursday he will press the General Assembly to approve a graduated income tax before it adjourns in May — with both a constitutional amendment to put before voters and companion legislation setting forth the new tax rates.
Pritzker’s ambitious timetable would set the stage for an immediate political showdown in the legislature to be followed by a protracted 17-month public campaign leading up to a November 2020 referendum.
In the past, Democratic legislative leaders have insisted they would not consider constitutional amendments in odd-numbered years when no statewide election is held.
But Pritzker said both House Speaker Mike Madigan and Senate President John Cullerton have promised to support his strategy to address the tax issue this spring.
* From Cullerton’s spokesman…
The Senate President is eager to support the governor’s ideas and timeline for accomplishing them. He recognizes how important this is to finally fixing the lingering structural deficit and providing financial stability going forward.
Illinois State Police rescinded more than 10,000 gun licenses last year — and more than 75 percent of the revocation recipients ignored it, according to newly released data.
The state agency provided the staggering figures late Thursday, as part of trove of law-enforcement documents involving Gary Martin, the convicted felon who fatally shot five co-workers and wounded several police officers at an Aurora warehouse last week. Martin, 45, went on a rampage after learning he was being terminated — opening fire with a gun he never should have been allowed to purchase.
In the shooting’s wake, authorities disclosed that Martin passed two background checks before buying the Smith & Wesson .40-caliber handgun used in the mass killing. As convicted felon, Illinois law prohibited Martin from holding a Firearm Owners Identification Card or owning a gun.
* ISP…
In 2018, 10,818 FOID Cards were revoked. In 2018, ISP received only 2,616 Firearm Disposition Records. During that year, only 3,469 FOID cards were returned to ISP. More than 75% of FOID card revocations failed to result in a Firearms Disposition Record being returned.
From 2014 through 2019 (YTD) there have been a total of 110 arrests for violation of 430 ILCS 65/9.5(a) - Failure to Return FOID card or/ not submitting a Firearm Disposition Record. In 2018, there were only 10 arrests statewide for this offense. Therefore, of the 7,531 revocations that did not result in a Firearm Disposition Record being returned, less than 0.004% of revocations resulted in an arrest or conviction.
In his first TV interview since being sworn in, new Illinois Attorney General Kwame Raoul told the I-Team this week that Illinois’ FOID card enforcement needs to be examined as part of a comprehensive look at gun laws.
Raoul pointed to Martin’s false answer on his FOID application in 2014 that went unchecked. Martin declared that he had never been convicted of a felony, which he had. The new state attorney general suggested to the I-Team that lying on a FOID application should be more than a misdemeanor, which is where it now stands.
The penalty is actually a Class 2 Felony, not a misdemeanor. It needs to be enforced.
* Concealed carry applicants can submit fingerprints to expedite the process. For whatever crazy reason, Martin chose to do that, which led to a search result that finally showed his previous felony conviction. Back to the ISP…
Upon receipt of the court documents, Martin’s FCCL application was denied on March 26, 2014. A letter dated April 15, 2014, was sent to Martin notifying him of his FCCL application denial as well as indicating he was no longer eligible for a FOID card. Martin was notified he was responsible for surrendering his FOID card and any weapons in his possession. FCCL staff notified FOID staff for purposes of revoking Martin’s FOID card. Martin’s FOID card was subsequently revoked on April 17, 2014.
The ISP’s procedure in 2014 was to notify local, county, and state law enforcement of the revocation, where the FOID card holder resides, electronically by means of the LEADS system. ISP records do not contain a copy of an electronic notification sent to law enforcement for Martin. These LEADS administrative messages are only maintained for three years. As of March 16, 2015, notification to law enforcement regarding FOID revocations is made via a typed letter sent through the United States Postal Service. After an exhaustive search of paper and electronic records, neither Martin’s FOID card nor a related Firearms Disposition Form could be located.
Sheesh.
FOID cards are valid for 10 years. The ISP needs to keep records longer than they are and do a much better job of keeping those records.
And putting the sole onus on the felon for turning in his or her guns is just ridiculous.
Richard Pearson, the executive director of the Illinois State Rifle Association, said he would oppose fingerprinting because of the potential cost to those who apply for a FOID card. Pearson estimated that the current $10 fee could go up dramatically if the cost of a fingerprinting would be passed onto applicants.
“It is just too expensive,” he said, calling what happened in Aurora a “tragedy,” but adding that this was an example of one error.
Pearson told me, however, that he’s willing to work on other issues related to this to get these guns away from people who shouldn’t own them.
* ISP…
There are currently 2,285,990 active FOID cards and 325,187 active FCCL statewide. Of FCCL holders, only 126,559 submitted fingerprints with their applications. Therefore, only 0.06% of FOID card holders were fingerprinted as part of the FOID/FCCL application process.
In a news release, the Illinois State Police blamed authorities in Mississippi for failing to link Martin’s criminal history with a so-called “state identification number” (SID). That failure reportedly prevented detection of a conviction from the nineties for aggravated assault for which he served five years in prison.
On a related matter, Pritzker acknowledged he has provided some of the initial funding for Think Big Illinois, a new non-profit issue advocacy organization expected to provide political cover for his policies — including the switch to a graduated income tax.
But Pritzker said he doesn’t know how much he’s donated and denied he’s made any specific future dollar commitment to the group, which is being run by one of his former top campaign aides.
Dude doesn’t know how much he’s given to the group set up by his former deputy campaign manager? Please.
A freshman Republican state representative is calling a Democratic senator a “hero” for successfully performing the Heimlich maneuver on him after he choked on food at a reception.
State Rep. Mike Murphy, R-Springfield, said state Sen. Michael Hastings, D-Tinley Park, intervened after noticing he was in distress.
Murphy said he stopped by the gathering Wednesday at the President Abraham Lincoln Springfield–a DoubleTree by Hilton, put on by pipe trades unions. He took a bite of a roast beef slider, and “it immediately lodged in my throat.”
“I walked over, grabbed some water, tried to swallow,” Murphy said. But he “couldn’t swallow at all, and was panicking. I turned and looked and everybody had their back to me. Then I turned the other way, and Senator Hastings was walking in the door, and I frantically waved at him. He came over and performed the Heimlich on me twice and got the food to come up. So I got some good help from a good Democrat.” […]
Hastings, a former U.S. Army captain who played football at West Point, served in Iraq and on the borders of Iran and Syria, and is trained in advanced combat lifesaving, said he administered the Heimlich maneuver.
“I lifted him off the ground, and little did I know that he was choking on a piece of steak, and it came out,” Hastings said, saying he also gave Murphy “a good swat on his back” as part of the throat-clearing maneuver.
As of today, Scott Cisek is no longer affiliated with my campaign in any capacity. His recent social media post was unconscionable and showed insensitivity to the issue of anti-semitism. It does not reflect my values or the values of my campaign. I apologize to Lori Lightfoot and everyone who was offended by this insensitive comment.
That is huge. Cisek has been a top Preckwinkle aide.
* This thing blew up fast…
Over the line? Top political advisor for @toniforchicago, Scott Cisek, posts a picture of nazis and the Nuremberg Trials to reference a story about @LightfootForChi being reprimanded by a federal Appeals Court Judge when she was a federal prosecutor. pic.twitter.com/VaSmAEru7O
Chicago mayoral candidate Lori Lightfoot released the following statement in response to a Facebook comment in which Scott Cisek, a top adviser to mayoral candidate Toni Preckwinkle, posted a picture of Nazis at the Nuremberg Trials in an argument about whether to support Lightfoot.
“Politics is a tough business,” said Lightfoot. “I knew that before I jumped in. But it is disturbing to me that a mayoral candidate’s top adviser believes the genocide of millions of people is a casual enough subject to be used as a joke to settle a political argument. Take note of those that surround the people we expect to lead.”
* And this from Amara Enyia…
This foolishness from Toni Preckwinkle’s senior adviser is a testament to the values and character of her campaign. This is the latest in a long history of problematic behavior from several of Preckwinkle’s closest advisors. Does she condone this kind of behavior and attitude? Being progressive is not just about policies, it’s about the integrity and authenticity of your values. This is actually regressive and indicative of the kind of mayor she would be, and it’s exactly why voters are cynical about politics. Chicago deserves better.
A top campaign adviser to Cook County Board President Toni Preckwinkle apologized Thursday after invoking Nazis to criticize former federal prosecutor Lori Lightfoot in a Facebook post. […]
Cisek, who is a former executive director of the Cook County Democratic Party and has worked for Preckwinkle’s administration, is a longtime Preckwinkle adviser. […]
Cisek later deleted the post and also tweeted, “I apologize for my Facebook comment. It was a stupid comment and I took it down.”
“It was revenge for Billy Batts, and a lot of other things.”
* I briefly chatted with some SIUC students who were waiting to meet with Senate President John Cullerton yesterday. They seemed pretty stoked to be there…
Shortly after delivering his first budget address as governor, J.B. Pritzker put on a Saluki baseball cap, and met with about 20 SIU Carbondale students in his office.
They asked questions, took photos, and presented Pritzker with a bag of Saluki gear. In total, the students met with some two dozen state lawmakers Wednesday, according to organizer Clay Awsumb, president of the SIUC Graduate and Professional Student Council, and a doctoral student in sociology.
“Other universities are showing up in Springfield pretty consistently, and we didn’t have anything scheduled in terms of a student lobbying day or legislative day,” Awsumb said. He teamed up with Undergraduate Student Government President Toussaint Mitchell to get some face time with state leaders. […]
Murphysboro State Rep. Terri Bryant pitched in, calling Pritzker’s office to arrange the meeting and photo op with the students. Downstate Sens. Dale Fowler and Paul Schimpf both took out time for meetings.
Few will argue that Illinois has significant issues with the underfunding of its five public employee pension systems. In fact, many say the state faces a continuing “pension crisis.”
However, three University of Illinois researchers argue that this “crisis” framework or mentality surrounding the issue actually impedes a sustainable solution. Their new report urges policymakers to rethink the conversation about pensions and Illinois’ finances. Download the report.
“Illinois lawmakers have long sought a silver bullet solution that will not increase (or even lower) the state’s required contributions while simultaneously shoring up pension systems’ finances,” write researchers Robert Bruno, Amanda Kass and David Merriman. “We view such a policy as unattainable and its pursuit a distraction from the job of responsible policymaking.”
Bruno is director of the Project for Middle Class Renewal and is a professor in the School of Labor and Employment Relations at the University of Illinois at Urbana-Champaign. Kass is associate director of the Government Finance Research Center at the University of Illinois at Chicago. Merriman is director of the Fiscal Futures Project and a senior scholar at the University’s Institute of Government and Public Affairs and a professor at the University of Illinois at Chicago.
Their paper makes three arguments: 1) that to resolve the pension underfunding issue the focus should be on long-term trends and peer comparison; 2) that a “pension crisis” is a situation in which the pension system is insolvent and unable to pay benefits – which is not the current case in Illinois; and 3) rather than a singular problem, there are two interrelated and in-conflict issues – the concern over pension finances and state operating budgets where expenses regularly exceed revenue.
Bruno, Kass and Merriman suggest that referring to the issue as a “crisis” leads to focusing only on short-term metrics and solutions. They urge state lawmakers to abandon the crisis rhetoric and to also abandon the practice of reducing that state’s pension contributions in order to balance the state budget.
“Our goal with this paper is to change the conversation about pensions and the state’s finances,” the report says. “We believe this is important for addressing the challenges facing the state in a calm, thoughtful and deliberate manner.”
If future Illinois GDP growth is similar to growth over the past 20 years and if pension contributions increase in-line with the current actuarial projections, then the state’s annual pension payments will stabilize at about one percent of state GDP over the next several decades.
In other words, it’s relatively manageable, but only if you think current contributions are not too high.
* Gov. Pritzker obviously thinks current state pension payments are too high, so he’s proposing several things to deal with it, including extending the ramp out an additional seven years, which will “save” the state $878 million (not “about $800 million” - the actual number is $878 million) this coming fiscal year and about that in each of six years afterward. Pritzker’s “plan” fits right in to this section…
Assuming a “pension crisis” narrative has costs that are evident in Illinois’ legislative history. Not only in how it impacts the finances of the pension systems but also in the way it predetermines approaches to the subject. As Section III highlighted there are two main issues that are interrelated, yet in-conflict: (1) the financial condition of the pension funds, and (2) the state’s annual pension contributions as burdensome for the state budget. Importantly, in moments of political pressure to do something about pensions, what often materializes is legislation that alleviates the short-term pressure with the creation of a future, long-term problem. As a result, Illinois is stuck in a seemingly endless cycle of pension crises and problematic legislation.
Yep.
There’s a whole lot more, so click here to read it all. If Amanda Kass is part of a study, you know it’s good.
Thursday, Feb 21, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
It’s simple. Credit unions are member-owned, so any earnings are simply returned in the form of lower loan rates, higher interest on deposits and lower fees. Credit unions create a fair financial alternative for the taxpayers of Illinois. Credit unions are not-for-profit financial cooperatives that don’t focus on increasing revenue or paying dividends to outside stockholders. Illinois credit unions are focused on the member-owners we serve. Visit www.asmarterchoice.org to learn more about the benefits of credit union membership.
The only way to save the pension funds, and protect taxpayers, is to amend the Illinois Constitution’s pension clause. No, Pritzker didn’t say anything about that.
From his budget address…
Throughout my campaign I said that we must pay the pensions that are owed
He didn’t say anything about a constitutional amendment to cut pension benefits because he’s clearly against it.
For some state lawmakers, it’s not what they heard at Wednesday’s budget address, it’s what wasn’t addressed.
“I’ll tell you what is top of mind is what wasn’t heard: Property taxes,” said State Rep. Mark Batinick, R-Plainfield. “We didn’t hear about property tax relief.”
State Rep. Robert Martwick, D-Chicago, agreed he didn’t hear enough about how to tackle the second highest property taxes in the country.
“If you really wanted to improve the overall health and economic wellbeing in our state, you need to address property taxes,” Martwick said.
He did mention property tax relief, but he said it wouldn’t happen until a progressive income tax hike is enacted…
This is only Year One of a multi-year endeavor, and very importantly it is built on the state’s current regressive tax structure that I do not favor and that puts the greatest burden on working families. Not only is our tax system unfair, it’s also inadequate to solve our long-term financial challenges.
It’s time for a change.
Workers deserve an income tax cut and a property tax break. A fair tax system will allow us to eliminate the structural deficit that has plagued our state for nearly two decades.
IL Gov JB Pritzker says he already voted by mail for Chicago mayor, but won’t say who he voted for because he wants a better relationship with the next mayor than Rauner had with Emanuel; “you’ve got to have the governor and the mayor speaking no matter who becomes mayor”
Gov. J.B. Pritzker is formally asking lawmakers to shut down Illinois’ private school scholarship program and pour more into public schools.
In his budget proposal Wednesday, Pritzker proposes taking the $100 million cap on donations to the Invest in Kids private school scholarship program and cutting it down to $50 million, $11 million less than what was donated in the program’s first year. He proposed to phase it out over the next three years.
As part of the overhaul of Illinois’ education funding formula in 2017, lawmakers added the five-year Invest in Kids pilot program, which grants a 75 percent income tax credit to those who donate scholarship funds for private schools. Officials with the program said most of the donations were for less than $1,000 and from individual donors.
“The governor is proposing to phase out the program over the next three years so that the state can direct its limited revenues to funding its commitments to public schools first,” according to the proposal. […]
More than 40,000 students applied for scholarship funds through the program in 2018. The program raised $61 million statewide that year, a national record for the first year of this kind of program, and paid the private school tuition for more than 6,700 students. Pritzker’s administration estimated that ending the pilot program would put $6 million into the state’s coffers.
Pritzker said he opposed using tax revenue to subsidize private schools when he said Illinois does such a poor job of funding public schools, the Sun-Times reported. […]
Holter said Pritzker’s assertion that the funding for the scholarships could be put into public schools is misleading.
“It’s not like there’s a big $100 million or $75 million pool of money out there that we’ve taken from some other pot of money,” he said. “We work hard to make sure that the story of [this program’s] importance and impact is out there so that these private citizens feel inspired to give.”
It’s a five-year pilot program. It began midway through Fiscal Year 2018. It’ll expire in three more years unless action is taken.
What he’s doing is starting the process of phasing it out by lowering the limit on tax credits for next fiscal year.
Rap icon Snoop Dogg is coming to the 2019 Illinois State Fair! Snoop Dogg and Friends will perform Friday, August 16 on the Grandstand stage.
With more than two decades of award-winning albums and songs, hit television shows, films, lifestyle products, philanthropic efforts, and digital ventures, Snoop Dogg is an unparalleled musical force at the forefront of popular culture. Since 1993, Snoop Dogg has released 17 studio albums, sold more than 35 million albums worldwide, reached #1 on Billboard charts, and received nearly 20 Grammy® nominations. His most recent album, Snoop Dogg Presents Bible of Love, debuted at #1 on the Billboard Charts in 2018 and was his first offering in the gospel music genre.
Snoop Dogg is the third Grandstand act announced for the 2019 Illinois State Fair; a capella group Pentatonix and country duo Dan + Shay were announced earlier this month.
I have been advocating for large investments in early childhood education for decades, long before I became governor. Real focus on the learning that happens from birth to age 5 can determine the entire arc of a person’s life. Investing in early childhood is the single most important education policy decision government can make, and it has proven to provide a significant return on investment. That’s why I’m proposing funding the Early Childhood Block Grant at $594 million, an increase of $100 million from fiscal year 2019. It will allow us to begin the march toward universal preschool so that every child in Illinois will have a real opportunity to succeed.
Later in the address, Pritzker detailed a smaller increase, but one that some advocates said was a welcome shift in policy: He described first steps toward repairing a child care assistance program that was drained of families and providers during the administration of his predecessor, Gov. Bruce Rauner. The new governor plans to spend $30 million more to rebuild the program. He also will increase income eligibility so an estimated 10,000 more families can participate. […]
The state early childhood grant also supports prenatal programs and infant and toddler care for low-income families. […]
But policymakers and advocates on Wednesday said the considerable $100 million increase is a step in the right direction for a state that has been spending less per student than many of its neighbors. According to the National Institute for Early Education Research, Illinois spent $4,226 per young learner in 2016-2017 compared with a national average that topped $5,000. Seven states spent $7,000 or more. […]
One item Gasner said she hoped to hear, but didn’t, was increased spending on home visiting programs for families with new babies. Spending on such programs next year will remain flat under Pritzker’s proposal. Home visiting has been suggested as one antidote to the state’s troublingly high maternal mortality rates. An October report from the state’s public health department found that 72 percent of pregnancy-related deaths in Illinois were preventable. […]
In addition to the $100 million, Pritzker’s office reportedly also will add $7 million to early intervention services for young learners with disabilities and set aside $107 million to help buffer the impact of his new minimum wage increase on daycare center owners and other child care providers who operate on thin margins.
Maria Whelan, CEO for Illinois Action for Children, said she likes the change in direction the governor’s budget seems to be proposing.
“We have 40,000 fewer children on the state’s child care assistance program than we had four years ago,” she said. “So we have a lot of rebuilding to do, but it’s very clear that we’re moving in the right direction.”
Ireta Gasner, vice president of Illinois policy at the Ounce of Prevention Fund, praised the increase to early childhood programs, but hopes it’s targeted. She said therapists who serve at-risk children haven’t received a rate increase since 2008.
With regard to a sex education course, provides that course material and instruction in grades 6 through 12 must include an age-appropriate discussion on the meaning of consent that includes discussion on recognizing that (i) consent is a freely given agreement to sexual activity, (ii) consent to one particular sexual activity does not constitute consent to other types of sexual activities, (iii) a person’s lack of verbal or physical resistance or submission resulting from the use or threat of force does not constitute consent, (iv) a person’s manner of dress does not constitute consent, (v) a person’s consent to past sexual activity does not constitute consent to future sexual activity, (vi) a person’s consent to engage in sexual activity with one person does not constitute consent to engage in sexual activity with another person, (vii) a person can withdraw consent at any time, and (viii) a person cannot consent to sexual activity if that person is unable to understand the nature of the activity or give knowing consent due to certain circumstances. Removes a provision requiring material and instruction to include, with an emphasis on workplace environment and life on a college campus, discussion on what constitutes sexual consent.
* Proponents held a press conference today…
Senate Leader Kimberly Lightford speaks passionately about the need to gain an understanding of consent in High School sex education pic.twitter.com/SY5qjjSSkD
Provides that the Act may be referred to as the Consent-Required Workplace Act. Amends the Illinois Human Rights Act. Defines terms. Provides that an employer shall require active consent for any physical touch beyond a handshake between colleagues, contractors, customers, students, direct reports, or business-to-business clients. Provides that a person with a higher pay grade or higher status than another person shall not ask the other person to initiate a physical touch beyond a handshake or engage in unwanted or offensive speech. Provides that if employees develop a personal relationship, active consent paperwork may be filed with their employer. Provides that if a non-consensual behavior complaint is filed against an employer, the employer’s policy shall be updated within 7 business days to address the current complaint. Provides that any employer having a complaint of a violation filed against it with the Department of Human Rights is subject to randomized auditing to ensure the company has an acceptable policy and is following the policy to protect its employees. Provides that if an employer receives 10 or more non-consensual behavior complaints, the Department is required to conduct an audit. Provides that a violation of the new provisions constitutes a civil rights violation. Provides that, in addition to any remedies available under the Act, a person or employer is subject to a $1,000 penalty for each violation, collectible by the Department and to be used by the Department for the administration of the new provisions. Effective January 1, 2020.
If you read the complete text, there are no exemptions for people like medical workers, who routinely touch patients. In fact, there are zero exemptions, including for people like child care workers and those who work with the aged and infirm, who do things like change diapers.
Reporters were briefed on the details after the speech by deputy Gov. Dan Hynes and Pritzker budget director Alexis Sturm, but the governor’s press office prohibited reporters from quoting the two directly. The Associated Press chose not to participate.
Regarding delaying pensions payments — which many have scoffed at — Hynes said it is the “sensible” thing to do with an unsustainable ramp that forces the state to dedicate 21 percent of revenue to pensions.
Heh. Let ‘em complain about that.
* Because she went to the briefing, Tina’s story had some info that the AP’s story lacked. For instance…
Should that new revenue package fail, the administration would propose a 4 percent cut to all state agencies, Deputy Gov. Dan Hynes said in a budget briefing Wednesday afternoon. A budget document stated those cuts would work to fill a budget gap but wouldn’t include employee health care or pension and debt service costs.
But the AP’s story was good, too.
I skipped the briefing, not because of the restrictions, but because I have my own system for covering these proposals which has always worked pretty well for me. The object here is to get the information to your readers. We all have our own way of doing that. The AP chose one path, the Sun-Times chose another and I went a different route.
State Rep. David McSweeney, a Republican from Barrington Hills, said he’s skeptical. “This budget is a joke. More of the same. Higher taxes. More spending. That’s the Pritzker plan.”
It took years for Illinois’ fiscal situation to get as terrible as it is. It will take time to dig out of it too.
That message clearly came through during Gov. J.B. Pritzker’s first budget address Wednesday. Pritzker did not try to sugarcoat the state of Illinois’ financial challenges during his address: $3.2 billion budget deficit, $15 billion debt in unpaid bills, $133.5 billion unfunded pension liability. We are cautious and concerned about some of the ideas he presented. Yet we found Pritzker’s speech to be a realistic, but still optimistic, message from the person who starts off the annual state budget process.
He proposes spending an additional $630 million on education, including more money for early childhood programs, elementary and secondary education, and public universities and community colleges. He also plans $542 million in added spending on social services, including money to provide child care assistance for the parents of 10,000 more children and hire 126 more child welfare workers at the Department of Children and Family Services.
K-12 education would also see a $5 million boost to career and technical education, $2 million in funding for an Advanced Placement low-income test fee waiver program, and $250,000 in added educator misconduct investigation funding.
Early intervention programming would see a $7 million increase, and the federal preschool birth-5 grant will be allotted $3.8 billion.
Mark Jontry, president of the Illinois Association of Regional Superintendents, said the group was pleased to see more money invested in education, but will emphasize alternative education going forward.
“I think we’re a little disappointed that we’re flat-funded with our alternative programs,” he said. “We’re going to want to continue to have conversations with the governor’s office around trying to put additional dollars into those programs, because it is a population with some real needs and we’ve been held level while our costs to serve those kids continue to escalate.”
The governor proposed a 5 percent increase for public universities and community colleges in fiscal 2020, which would boost the UI’s general operating funds by 5 percent, or $26.8 million, to $621.4 million, officials said Wednesday.
The UI had requested an increase of 16.5 percent, or almost $98 million more, but President Tim Killeen, who was in Springfield for the budget message, wasn’t complaining.
“We’re really happy to see the resolute attention to an investment strategy in higher education,” Killeen told News-Gazette Media on Wednesday. “It’s turning the tide after 20 years of less favorable budgets.” […]
On scholarships, Pritzker said he would expand the pool of matching funds for the new “Aim High” merit-based scholarship program to $35 million next year, up from the current $25 million. And he would expand funding for the Monetary Award Program’s need-based grants by $50 million.
“There’s still a gap there for what is really needed for socioeconomically disadvantaged students,” Killeen said, “but it’s great to see it going in this direction.”
Pritzker’s call for an increase in income eligibility for the Child Care Assistance Program would help local families who struggle to make ends meet because they don’t qualify for assistance but can’t afford child care, German said.
“While we are hopeful about the change in the minimum wage and the positive effect it will have in our state, we do have concerns there was no mention about adjusting reimbursement rates to help offset the substantial increase in program costs,” German said.
* I really think that proposed cannabis license fee is too high…
The governor’s plan includes an estimated $1.1 billion in new revenue, with the Pritzker administration banking on selling 20 sports betting licenses at $10 million a piece [$200 million], and selling “thousands” of marijuana business licenses for a one-time fee of $100,000 [$170 million].
Other tax bumps would include raising taxes on a pack of cigarettes from $1.98 to $2.30 [$55 million] and taxing e-cigarettes at a 36.5 percent rate, the same as all other tobacco products [$10 million]. The administration is also pushing for a 5 percent statewide bag tax [$20 million]. […]
[Revenues also include] a tax on [Managed Care Organizations] to generate $390 million in revenue to help cover the costs of the Medicaid system. Pritzker’s revenue package also includes $175 million from a proposed delinquent tax payment incentive program.
A couple of things will catch the eye of business groups: a $75 million annual cap on how much retailers are paid to collect the sales tax—that expenditure has run over $100 million in some years—and $94 million in revenue that will come from closing what budget aides call a “loophole” by decoupling from the federal tax credit for repatriated international earnings.
* I’ve been calling for a graduated tax on the video gaming industry for a while now, so I’m glad to see it included in the budget proposal…
Pritzker would generate an additional $89 million from a higher tax structure on successful video gaming terminals
In a decision that may curb the rise of financial penalties and property seizures in the U.S. criminal justice system, the Supreme Court on Wednesday for the first time ruled that the U.S. Constitution’s ban on “excess fines” applies to states as well as the federal government.
The nine justices ruled unanimously in favor of an Indiana man named Tyson Timbs who argued that police violated his rights by seizing his $42,000 Land Rover vehicle after he was convicted as a heroin dealer.
Justice Ruth Bader Ginsburg, back on the bench for a second straight day after undergoing lung cancer surgery in December, wrote the court’s opinion, which clarified the applicability of the “excessive fines” prohibition contained in the Constitution’s Eighth Amendment.
“For good reason, the protection against excessive fines has been a constant shield throughout Anglo-American history. Exorbitant tolls undermine other constitutional liberties,” Ginsburg said in court as she announced the ruling.
The vehicle was taken in a process called civil asset forfeiture that permits police to seize and keep property involved in a crime.
The Eighth Amendment’s other two restrictions, forbidding cruel and unusual punishment and banning excessive bail, were previously declared to restrict state as well as federal authority.
When the Bill of Rights was ratified in 1791, it imposed limits only on the federal government. The Supreme Court has gradually ruled that most of its provisions also apply to the states. […]
Indiana argued that even if the ban on excessive fines applied to the states, the restriction should apply only to fines that a person has to pay, not to the seizure of property used to commit a crime.
“We disagree,” the Supreme Court said Wednesday, finding that the right is fundamental and deeply rooted in the justice system.
Thus, now the only rights enumerated in the Bill of Rights that are not incorporated through the Fourteenth Amendment to the states are: the Third Amendment prohibiting quartering of soldiers, Fifth Amendment right to a grand jury indictment in a criminal case; and the Seventh Amendment right to a jury trial in civil cases.
History can be a cruel exercise in pessimism if you narrow your gaze. But if you widen your vision just a little bit, you will see that the recurring reports from the past have been occasionally dotted with unapologetic optimists who focused on tackling old problems with new ideas and new vigor, reducing the burden for each generation along the way.
One of those unapologetic optimists was Governor Henry Horner, who took office in 1933. It puts the current day in honest perspective to think about the challenges Horner faced.
The Great Depression had just begun…Nearly half of Illinois’ work force was unemployed…Hungry workers were marching on Springfield…Teachers had not received a paycheck in nearly a year…Labor disputes were ending in bloodshed…Banks were shuttering… And to add to it all, floods were sweeping across wide swaths of the state.
Nevertheless, with the daunting nature of the state’s condition, Horner approached his job with optimism, with wit and with a dogged work ethic. In a speech soon after he took office, he said:
“We have got to hurdle a few more obstacles before we are on the broad highway of return to normal conditions. However, the road is clearly in sight.”
Today, that is where we find ourselves again. […]
I mentioned at the beginning of this speech that Henry Horner took office in 1933 at the start of the worst decade of economic decline in US history.
Horner was good friends with Carl Sandburg. They shared a love of all things related to President Lincoln. In the later years of his life, Sandburg granted an interview about his friend Governor Horner, in which he said, “Horner was the real goods…he got to high places without selling his soul.”
Indeed, despite all the economic struggles the state faced during the Great Depression, Horner still managed to increase school funding, institute unemployment insurance and pensions for older Illinoisans, create building programs for state institutions and improve public health services.
He understood that prosperity doesn’t trickle down…it trickles up. When we lift up those who have the least, our boats all rise together.
Horner was a fundamentally optimistic man. He approached his job as governor with a hopeful heart, and he never let that hope diminish under the uncommon burdens of being head of state.
He knew what I know…that the state of our state has always been strong because of the values of our people…not the value of our coffers.
Horner once said: “The only way to carry out any great purpose is not on your shoulders, but in your heart. Carry it on your backs and it may wear you down. Carry it in your hearts and it will lift you up. Thus, the heart strengthens the purpose, and the purpose gives poise and inspiration to the will.”
Like you, I carry the burdens of this state in my heart – and despite the heavy load it lifts me up every day. I share my purpose with you so that it may give poise and inspiration to our collective will – because I know the road ahead is hard, but I think it’s about time we all walk it together.
A probate judge in Cook County for many years, Horner was a Democrat like Pritzker. Horner became Illinois’ first Jewish governor when he was elected in 1932. His grandfather had been one of the first four Jews to settle in Chicago, 91 years before.
In his speech Wednesday, Pritzker repeated his call for a graduated income tax that will weigh more heavily on the wealthy. Horner also took on a tax issue, successfully pushing in 1933 for a state sales tax, a 3 percent levy that was roundly denounced by business interests. […]
An opponent of patronage and corruption, Horner sparred with powerful Chicago Mayor Edward Kelly. In 1936, Chicago’s Democratic machine sought to defeat Horner, but with strong Downstate support he won re-election. Two years later, a state ticket he supported in the face of machine opposition “triumphed,” the Tribune reported.
But, according to the Tribune, “the successful effort he then made to overcome the bosses cost him his health.” Horner suffered a stroke in 1938, and died while still in office in 1940. He was 61.
This message is coming from interested members of the Illinois Legislative Correspondents Association. As you know, it’s that time of year when we’re working to provide our readers, listeners, and viewers with thorough coverage of the governor’s budget proposal. To that end, we are requesting that the budget briefing be fully on the record (meaning anything said would be quotable with attribution).
Some of our members cannot attend with any restrictions.
This is in keeping with longstanding practices of past administrations, Republican and Democratic. (Until recently, they were embargoed until noon the day of the budget address, but they were still on the record. Even that limitation was dispensed with in recent years.)
Please do not hesitate to get in touch for further discussion.
Regards,
Members of the ILCA
— John O’Connor, The Associated Press
— Rick Pearson, Chicago Tribune
— Dan Petrella, Chicago Tribune
— Tina Sfondeles, Chicago Sun-Times
— Doug Finke, The State Journal-Register — Joseph Bustos, Belleville News Democrat — Shia Kapos, Politico — Hannah Meisel, The Daily Line — Rebecca Anzel, Capitol News Illinois — Peter Hancock, Capitol News Illinois — Jerry Nowicki, Capitol News Illinois — Jeff Rogers, Capitol News Illinois — Dan McCaleb, Illinois News Network — Daisy Contreras, NPR Illinois — Jaclyn Driscoll, NPR Illinois — Mary Hansen, NPR Illinois — Brian Mackey, NPR Illinois — Dusty Rhodes, NPR Illinois — Dave Dahl, WTAX — Mark Maxwell, WCIA, WMBD, WTVO, WHBF — Rachel Droze, WICS/WRSP — Doug Wolfe, WAND-TV — Tony J. Yuscius, Blueroom Stream
I am not on the list because I submitted my name too late.
* Response…
Brian - thank you so much for reaching out. Please let your members know that we strongly encourage them to attend, as we certainly want them and the public to understand what’s in this budget proposal. I hope you forward this email to all of them.
At the briefing, we’ll be running through the budget at a more granular level of detail than the speech itself, as well as giving them an opportunity to get their questions answered. All of this information can and should be reported. We encourage your members to use the information that they receive in that briefing to share with the public through all their reporting platforms, whether that’s print, broadcast or digital.
They are welcome to describe the budget briefing in detail, including that Deputy Gov. Hynes and Budget Director Sturm led the briefing and provided the facts. An example of attribution that we are comfortable with is below.
EXAMPLE OF ATTRIBUTION: According to Hynes and/or Sturm, this budget includes the first increase in funding for CTE programs in a decade.
We are asking that they not use direct quotes from either Dan or Alexis, so that today, the Governor has the opportunity to communicate his budget priorities himself, in his own voice.
For members who don’t attend, we’ll be happy to provide them with answers to their questions, and they should feel free to reach out to me or Jordan.
I’m told that at least three Statehouse reporters refused to attend.
After four years of unprecedented crisis, we are still uncovering the extent of the damage to our state’s budget. Bruce Rauner’s budget crisis has left us with billions of dollars in unpaid bills, frayed our social service infrastructure, and squandered $1 billion on late payment penalties instead of funding our schools, health care and critical human services. Without the efforts of House Democrats and some rank-and-file Republicans who worked together to make tough decisions and end Rauner’s crisis, the damage would have been even worse.
Amid the challenges we heard spelled out today, we also heard that we now have a governor who recognizes the magnitude of these challenges and will work with us to address them. House Democrats stand ready to work with Governor Pritzker and our Republican colleagues, bring all options to the table for honest negotiation, make the tough decisions, continue to stand strong and protect critical human services and quality schools, and move Illinois forward.
* House appropriation committee chairs Luis Arroyo, Kelly Cassidy, La Shawn K. Ford, Robyn Gabel, Rita Mayfield and Robert ‘Bob’ Rita…
“Governor Pritzker’s budget address was a sobering reflection of the real challenges facing our state after four years of Bruce Rauner’s neglect and mismanagement. The Rauner crisis has left us with a $3.2 billion structural deficit, and $14 billion in unpaid bills. Eight credit downgrades in just four years leave us on the verge of junk bond status. And the consequences are falling on those who can least afford it, from seniors, to children in need, to elderly veterans.
“House Democrats will continue to prioritize funding for essential services, and ensure that our most vulnerable residents receive the resources they need. This is the first of many steps as we work to restore Illinois’ fiscal house over several years, and with that will come many tough but necessary decisions. We will continue reaching across the aisle and working with our Republican colleagues to craft bipartisan budgets that set Illinois on a path to financial stability.
“Governor Pritzker’s straightforward assessment of the challenges Illinois faces is a welcome departure from Rauner’s years of neglect. While a lot of negotiation remains to be done, the governor’s proposal shares our commitment to funding our most critical services and lifting up our local communities by creating good-paying jobs and rebuilding our crumbling infrastructure. This is a starting point in a discussion of how we invest in education, repair our human services network, and ultimately create a better Illinois.
“As we begin the process of making a new budget and addressing these challenges, we come to the table prepared to work with the governor and legislators on both sides of the aisle with the goal of passing a responsible, balanced budget on time.”
* Senate Appropriations I Committee Chair Heather Steans…
“Having the governor propose a balanced budget is a positive step toward restoring stability to our state and ensuring long-term functionality within our government. Illinois continues to face structural budget challenges and I am encouraged that Governor Pritzker is addressing them head on.
“I look forward to working with the administration and my colleagues in the Senate over the next few months to develop a budget that significantly moves Illinois toward a solution that achieves financial certainty and builds trust that Illinois is back on the right track.”
* IFT President Dan Montgomery…
“After four years of divisiveness and destruction under Bruce Rauner, it was inspiring today to hear Governor Pritzker call for unity and collaboration to help Illinois get back on track.
“The problems we’re facing have taken decades to develop, and Rauner made them exponentially worse during his manufactured budget crisis. As a result, the new administration has inherited a $3.2 billion budget deficit and nearly $15 billion in unpaid bills.
“Despite these fiscal challenges, we are excited to see that Governor Pritzker is keeping his promise to prioritize public education and plans to dramatically increase funding at every level. It’s clear that he understands the importance of great public schools and higher education and is committed to fulfilling the state’s responsibility to invest in them.
“We are also interested to learn more about the pension ideas proposed today and glad they did not include any unconstitutional cuts to workers’ hard-earned retirements. We welcome the opportunity to work together to address the debt, and that’s why I’ve been proud to serve on the transition committee and advise on pension issues, to help ensure this is done responsibly and fairly.
“In the end though, none of our state’s economic problems can be solved without more revenue. We agree with the Governor – and 72 percent of Illinoisans – that our state’s wealthiest citizens should pay their fair share, while lower and middle-class families get a break. We are fully committed to helping pass a fair tax.
“We are heartened to have a governor who respects the vital work of public servants and our unions and look forward to tackling the challenges ahead – together.”
* IEA President Kathi Griffin…
Today marks a new day and a new focus for education in Illinois. It’s refreshing to have a governor not only focused on what is best for students and Illinois’ future, but who is willing to work collaboratively to get the best results.
Gov. J.B. Pritzker has proposed an additional $25 million toward K-12 education in Illinois, above and beyond the $350 million new dollars added last year through the new evidence-based funding law. There is also an additional $21 million in funding set aside for special education grants, $5 million for much-needed career and technical education programs for high school students and $2 million to help low-income students pay for Advanced Placement testing.
Gov. Pritzker also is proposing an additional boost over last year’s funding for higher education. While this is an amount still below what higher ed needs, it is a step toward fuller funding for higher education and, importantly, a move away from the financial starvation strategy we saw in recent years. It includes a 5 percent increase for community colleges and public universities and $50 million for MAP grants.
And, in what is a huge leap forward toward education equity in Illinois, Gov. Pritzker has proposed a boost of more than $100 million in birth to age five education funding. We have seen study after study that shows early education helps level the playing field for students over their entire learning careers and sets students on a path toward successful lives.
We applaud Gov. Pritzker for looking at various funding sources because funding has to play a role in the future he’s building for Illinois. A starving state cannot grow.
And, we find the Governor’s pension proposal an interesting start to the conversation. We understand this is a huge issue for Illinois and we also understand that any solution should be fiscally responsible, fair and constitutionally sound. We look forward to getting all stakeholders in the room to discuss viable solutions to find a healthy pathway forward.
* Illinois AFL-CIO President Michael T. Carrigan…
“Gov. Pritzker has signaled that he is taking on the state’s financial challenges in an open, fair, and productive manner. By enacting a minimum wage increase yesterday and putting forth plans for a state infrastructure improvement program along with a Fair Tax proposal, Pritzker is following through on his promise of investing in the working people of Illinois as a path to solid financial footing and economic security for our state. We welcome the opportunity to work with the governor and General Assembly on solutions that create an economy that works for all.”
* Illinois Working Together Executive Director Jake Lewis…
“Gov. JB Pritzker’s address today makes clear the hard choices facing Illinois as it begins to heal after four devastating years under Bruce Rauner. It will not be easy, but we commend the governor for taking a bold stand in tackling the challenges facing the state. We especially applaud Gov. Pritzker for recognizing that key to our future prosperity are a Fair Tax that asks the wealthiest to pay their fair share and a Capital Bill that invests in high quality infrastructure to keep our citizens safe.
“We welcome Gov. Pritzker’s commitment to move Illinois forward with high-road solutions that promote economic justice for all.”
* Chicago Federation of Labor President Bob Reiter…
“After four years of destruction and turmoil at the hands of Bruce Rauner, it is time for all of us to have the open and honest conversations that will get Illinois back on track to prosperity for all. Without mincing words, Governor Pritzker laid out the issues plaguing the state and his ideas to solve them, including a fair income tax. We are encouraged by Governor Pritzker’s message to Illinoisans and his refocusing our priorities on education, health and human services, and public safety. He laid out a thoughtful budget aimed at growing the economy and expanding the middle class. We stand ready to work with Governor Pritzker and the Illinois Legislature to find solutions that promote upward economic mobility among all working families.”
* Comptroller Mendoza…
Today, Governor Pritzker took a welcome departure from the past. His budget address shows he grasps the problems Illinois faces and is embracing serious solutions to attack them. As he said, it has taken decades to get Illinois into this mess, and Governor Pritzker knows it will take years for us to dig ourselves out.
Governor Pritzker’s proposed support for early childhood, elementary and higher education; crime prevention; veterans; mental health, child care and aging programs is both welcome and necessary.
Today is just the first step in the budgeting process, but it appears to be a good step. Now it’s time for Governor Pritzker and the legislature to get to work. My office will continue to serve as a resource for up-to-date fiscal information and transparency for taxpayers.
…Adding… Senate President Cullerton…
I give the governor credit for offering specifics. His plan is filled with ideas — real, doable, constitutional ideas. Now, whether or not they happen remains to be seen. That’s what the legislative process is for. But I commend Governor Pritzker for stepping forward today and presenting specifics. It’s a heck of a lot better than an empty “$4.6 billion by working together” line we saw in past years.
This is a budget that’s about restoring stability and functionality to state government. That’s what we need to build for the future.
Does it solve all of our problems? No. But it’s a vital step in the right direction.
There’s increased school funding. That means more resources for local public schools everywhere in Illinois, and that means more opportunities for our children.
There’s additional support for working families. You see it with the increased funding for child care assistance. Under this plan, a family of four making $50,000 would qualify for help with child care costs.
There’s more financial aid for college students.
The Chicago Veterans Home – a modern care facility for our veterans – would finally open.
I give the governor credit for being creative, aggressive and specific in his budget, and I look forward to working with him to bring it to reality.
…Adding… Jennifer Walling, Executive Director of The Illinois Environmental Council…
Governor Pritzker’s budget prioritizes moving Illinois to 100% clean energy and environmental justice communities by fully funding the nation-leading Illinois Solar for All program, as well as a new program designed to bring the benefits of energy efficiency to environmental justice communities. The proposed budget would also increase headcounts at both IEPA and IDNR, which will lead to better enforcement of environmental laws, and reverses the trend of leaving money on the table by fully appropriating federal funds.
* I’ve received several press releases supporting the governor’s proposed budget. Here are some in opposition. First up, Jessica Collingsworth, Lead Midwest Energy Policy Analyst, Union of Concerned Scientists…
In his State of the State address today, Illinois Governor J.B. Pritzker did not reiterate a campaign pledge that he will work to ensure all the state’s energy needs are met with solar, wind, and other carbon-free energy sources by 2050.
Below is a statement by Jessica Collingsworth, lead Midwest energy policy analyst at the Union of Concerned Scientists’ Midwest office.
“While Governor Pritzker neglected to lay out his plan to wean the state off fossil fuels by 2050, I’m hopeful he still plans to honor his campaign promises. He took a laudable first step in joining the U.S. Climate Alliance, becoming the 18th governor to uphold the environmental protections outlined in the Paris Climate Agreement. But he can do much more to make Illinois a climate leader.
“As the climate changes, so will the circumstances of many Illinoisans. We’ll likely experience more intense floods as well as droughts. More frequent and intense heat waves also will increase public health risks and energy demand.
“In addition, Illinois has several frontline communities battling pollution from the energy sector. The science is clear, we must invest in renewable energy and help communities, especially those hardest hit, withstand climate impacts. Illinois deserves a healthy economy and environment where everyone can thrive.”
* And…
The Smoke Free Alternatives Coalition of Illinois released the following statement in response to the governor’s budget proposal that includes a 36 percent wholesale tax on vapor products:
“The governor’s proposed tax would do nothing more than create another hurdle for adults who are trying to quit smoking. Studies have shown that vaping products are among the most useful tools to help adult smokers quit traditional cigarettes. In fact, they have even been shown to be twice as effective as other nicotine replacement products such as patches and gum. With vaping products proven to be 95% less harmful than traditional cigarettes, it seems unethical to tax a person for making better, healthier choices. The long term savings to our state is in improving the health of its citizens by moving them from deadly cigarettes to something that is far less harmful and we look forward to working with the Governor and the legislature to achieve this end,” said Victoria Vasconcellos, president of the Smoke Free Alternatives Coalition of Illinois.
* ILGOP…
“Skipping pension payments, borrowing new debt, raising taxes, increasing spending - it’s clear that J.B. Pritzker is the new Rod Blagojevich. Pritzker’s unbalanced budget proposal is more of the same, failed policies that got our state into the mess it’s currently in. Illinois taxpayers cannot afford to return to the budget deficits and failed policies of the Blagojevich era. Pritzker pledged to deliver a balanced budget, and he failed.” - Illinois Republican Party Chairman Tim Schneider
Today, Governor J.B. Pritzker gave his first budget address where he outlined his first, and probably not last, unbalanced budget proposal. In his speech, Pritzker advocated for a return to the same, failed budgeting that got our state in the mess it’s in:
Skip pension payments, $800 million a year for the next seven years
Madigan and Blagojevich supported a plan to skip pension payments
Issue $2 billion in new pension obligation bonds to make up for skipping pension payments
Madigan and Blagojevich supported a plan to issue pension obligation bonds
Increase spending by hundreds of millions of dollars
Levy new taxes
Theoretical graduated income tax, could not be enacted unless voters approve referendum in fall 2020, and Pritzker still refuses to release rates or revenue projections, yet Pritzker promises it will pay for everything - from pensions, to property and income tax cuts
Enact statewide plastic bag tax
Legalize recreational marijuana use, tax sales
Legalize sports betting, tax winnings
Increase video gaming taxes
Phase out the bipartisan Invest In Kids tuition tax credit scholarship program for low-income schoolchildren
Shorting the pension system $800 million a year might be the most irresponsible proposal from Governor Pritzker’s FY2020 budget. Pritzker’s decision to skip pension payments will cost billions of dollars more down the road. This is the exact opposite of what Pritzker pledged he would do during his campaign for governor. Last year, Pritzker told the Crain’s Editorial Board that the state should increase, not decrease, yearly contributions to the state pension systems.
Furthermore, Governor Pritzker’s spending plan relies on tax revenue the state has not yet received. It will take years to enact a theoretical graduated income tax, yet Pritzker is already committing that revenue to new projects. Pritzker’s budgeting is reckless and fiscally irresponsible.
It’s clear - J.B. Pritzker is the new Rod Blagojevich. Illinois taxpayers cannot afford to return to the budget deficits and failed policies of the Blagojevich era. Pritzker pledged to deliver a balanced budget, and he failed.
* Senate GOP Leader Bill Brady…
The Governor’s proposed budget represents a starting point for further negotiations.
We heard a lot in his speech about more spending, more tax increases and concepts tried in the past. And while we as legislators now begin digging into the details, I have grave concerns about the pension plan and I remain opposed to a graduated income tax.
The people of Illinois are demanding their elected officials address the fiscal crisis facing our state. If we are going to put Illinois on a path forward; then we need to learn from history, not repeat it.
* Illinois Manufacturers’ Association…
“In order to grow and provide more middle-class jobs, Illinois manufacturers need financial stability from state government, including a budget that doesn’t spend more than taxpayers can afford or rely on gimmicks that will only cost more in the long run. While we applaud the focus on education and workforce development, this budget has a structural deficit of $3.2 billion and continues to kick the can down the road on pensions,” said IMA President and CEO Mark Denzler. “It’s past time for lawmakers and the administration to make some tough decisions in order for Illinois to become a more attractive place for businesses to locate and expand. We stand ready to work collaboratively toward that goal.”
…Adding… Kelly Welsh, President of the Civic Committee of the Commercial Club of Chicago…
Our plan called Restore Illinois is a comprehensive roadmap to put Illinois on the path to fiscal solvency. Unfortunately, the proposed budget does not go far enough to address Illinois’ fiscal problems. Delaying an aggressive approach will worsen our state’s financial outlook, and continue to slow our economic and jobs growth. We urge the General Assembly and the Governor to work together to develop a plan that changes the trajectory of Illinois’ finances now, before they get worse.
* House GOP Leader Jim Durkin…
The Governor’s budget today shows the true need for bipartisan solutions to fix Illinois’ many fiscal challenges. We cannot tax, borrow and spend our way out of this deficit as the governor has proposed. Illinois families deserve a focus on reform, including our out-of-control pension costs and sky high property taxes, and not a penny more in new taxes or fees. My caucus is prepared to work with the Governor on crafting a balanced budget that reflects our priorities and moves Illinois forward.
…Adding… Ideas Illinois Chairman Greg Baise…
“Today we got a Blagojevich style budget, spending we can’t afford and the biggest jobs tax in Illinois history. We think the state needs to get its own fiscal house in order before it punishes families with another round of massive tax increases.”
Illinois will continue to face structural deficits, including an estimated deficit of $3.2 billion in FY2020
Um, what?
How can a budget be balanced and have an estimated $3.2 billion deficit?
Checking with the administration.
…Adding… The administration claims it closed the $3.2 billion hole. So, apparently what that above passage means is they projected a budget hole and then closed it.
Wednesday, Feb 20, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
Gov. J.B. Pritzker will stare down Illinois’ dismal state finances in his inaugural budget address today. According to the state’s own numbers, Illinois hasn’t balanced a budget in nearly two decades.
But why?
One simple reason: State spending has grown far faster than Illinoisans’ ability to pay for it.
From 2007 to 2017, Illinois state spending grew nearly 50 percent faster than personal incomes on a per capita basis. This rapid growth in spending has led to irresponsible budgeting, tax hikes and borrowing.
But there is an alternative.
The Illinois Policy Institute’s Budget Solutions 2020 plan provides a bipartisan path to a balanced budget without tax hikes, while responsibly paying down the state’s pension debt and bill backlog. Thankfully, lawmakers from both sides of the aisle have already introduced many of the tools Pritzker needs to balance the state budget in the current General Assembly, including a smart spending cap, school district efficiency and constitutional pension reform.
It is a civil rights violation to ask a candidate for election to public office in this State about: his or her parental status; his or her plans for childcare; his or her religion; his or her sexual orientation; or any other question that may result in unlawful discrimination.
Um, anybody remember that thing called the 1st Amendment?
* The gigantic loophole in this bill is that the cam footage wouldn’t be subjected to FOIA laws. I mean, why have all those body cams if the public can’t get access? Also, the bill (click here) would apply to all public officials, not just elected officials. Public officials are defined as “any person who is elected or appointed to public office,” so we’re talking about maybe tens of thousands of people here…
All elected officials in Illinois would be required to wear body cameras while conducting public business if a bill sponsored by state Rep. John Cabello, R-Machesney Park, becomes law.
The intent of the bill is to reduce corruption at the state and local levels, but Cabello acknowledges his idea has virtually no chance of winning approval.
“We see the dealings going on in Chicago with some of the wiretaps and some of the corruption that’s been going on for decades,” Cabello said. “We hear of the state lawmakers that get themselves into trouble with bribes and so on and so forth. So, I just thought that since the state was looking at making all police officers wear body cameras, I figured this might be a good way to have records of what lawmakers are doing.”
I’m betting he also figured it was a good way to get a few press pops.
But perhaps Rep. Cabello could wear a cam himself for a while and see how it goes before asking to impose this on everyone else.
* On a much more serious note, I didn’t realize Illinois still had this law on its books…
Recently released inmates people would no longer need to reimburse the Illinois Department of Corrections for the cost of their incarceration under a measure sponsored by State Senator Robert Peters (D – Chicago) which passed out of a Senate committee today.
“It’s ridiculous that a provision like this even exists in the first place,” Peters said. “These people already have a major burden placed on them by the criminal justice system. It’s unconscionable that there’s an additional financial burden placed on them once they’re finally released, and only makes a return to a life of crime more likely.”
Under current law, recently released persons are required to reimburse the DOC for any expenses incurred as a result of their incarceration. The measure, Senate Bill 1158, strikes this requirement from the statute.
The bill passed through the Senate Committee on Criminal law and will now proceed to the full Senate for consideration.
While the full scope of Pritzker’s spending plan remains unclear, an administration document shows the governor will propose spending an additional $630 million on education, from preschool through college.
A new statewide formula for funding elementary and secondary education already calls for an increase of $350 million for public schools compared with the current year, but Pritzker wants to add another $25 million.
His budget plan also will call for spending increases of $55.2 million for public universities, $13.9 million for community colleges and $50 million for tuition grants to low-income college students.
He also will call for $100 million in additional spending on early childhood education.
And since he’ll use this address as an opportunity to kick off his two-year campaign to implement a graduated income tax, expect a lot of talk today about how this budget is merely a “bridge” to the future…
“Tomorrow (Wednesday) I will deliver a budget that begins to stabilize our state finances while starting to rebuild our human services, our universities and P-12 education, and our public safety, along with the funding needed to make this minimum wage a reality,” Pritzker said.
Ideas Illinois has launched a digital ad campaign just hours before Gov. J.B. Pritzker makes his first budget address. The ad, obtained by POLITICO, highlights what chairman Greg Baise calls a “lack of new ideas” to solve Illinois’ serious financial problems.
“Even though Illinois has a new governor, all we hear are the same failed solutions to our state’s budgetary problems—higher taxes, shorting our pension funds and massive amounts of new spending,” said Baise. Ideas Illinois is a 501C4 not-for-profit that’s pro-business and anti-progressive income tax (which it refers to as a jobs tax). It’s the counter to Pritzker’s Think Big Illinois group.
The ad claims “Illinois leads in all the wrong categories” and it ticks off as examples “high property taxes, billions in unpaid pension obligations, never-ending tax increases and population that has declined for five years in a row.”
It’s all a shot at Pritzker, whose party controls both houses of the legislature—leaving Republicans wafting in the wind.
Incoming Gov. J.B. Pritzker will include revenue from Illinois sports betting when delivering his budget proposal to the state legislature Wednesday, according to an advance briefing to lawmakers Tuesday.
As the new Democratic governor who upended a Republican incumbent, Pritzker holds a lot of sway with his party members. Democrats dominate in each chamber of the Illinois General Assembly.
Illinois Rep. Mike Zalewski, who soon plans to introduce a sports betting bill, tells Legal Sports Report that Pritzker backing IL sports betting will be “a huge help” to his efforts.
“He’s trying to rectify a budget situation that’s four years in the making, and he sees sports betting as part of that solution,” Zalewski said. “He’s an incoming Democratic governor who won by a wide amount. Those in our caucus want to give him what he asks for to lead us.
“To have him ask for sports betting, I think we’ll be supportive of it.”
That’s a pretty good article, by the way. So click here and read the rest if you’re interested in the topic.
During his campaign for governor, Pritzker frequently attacked his predecessor’s handling of multiple Legionnaires’ disease outbreaks at a state-run veterans’ home in downstate Quincy, Ill. The families of 12 residents are suing the state for neglect over their loved ones’ deaths. Legislators overrode a veto from Rauner to raise the limit of what those families could win in their lawsuits, from $100,000 to $2 million.
Chicago attorney Steven Jambois, who represents one of those 12 families, told WBEZ Tuesday that those settlement negotiations have just begun. Jambois said he’s demanding the full $2 million for his client, the family of Valdemar Dehn, a Korean War veteran who died in 2017 — two years after the first Legionnaires’ outbreak at the Quincy home.
“How does one evaluate the value for that? Particularly on our case, he was one of the last persons to die and clearly in our mind the most preventable of all the deaths, since they clearly had sufficient notice,” Jambois said.
In addition, Pritzker vowed during the campaign to continue Rauner’s plan to rebuild the Quincy veterans’ home. Last year, lawmakers put $53 million as a down payment toward construction. Rauner estimated the total spending on a new veterans’ home in Quincy could cost about $245 million.
Recent pension proposals from Illinois’ new governor are an important first step in addressing the state’s significant fiscal challenges, according to Fitch Ratings. But whether or not they are implemented, Fitch anticipates Illinois’ long-term liability burden will remain elevated and amongst the highest for U.S. states for the foreseeable future. Fitch also anticipates annual employee retirement costs will continue to pressure the state’s expenditure flexibility. Fitch’s focus in the near term, reflecting the key rating sensitivity in resolving our Negative Outlook, remains Illinois’ ability to achieve progress in addressing its immediate structural budgetary challenges. The pension proposals offer a mix of potential revenue increases, cash and asset infusions, indirect benefit changes and an actuarial adjustment, to address the liability and budgetary demands of the states’ pension systems. Several elements will take months or even years before full implementation. […]
The pension plan outlined by Illinois’ Deputy Governor for Budget and Economy includes five closely related proposals. The first is to dedicate $200 million of new revenue from a proposed graduated income tax as an annual supplemental pension contribution. While this would be in addition to the statutory pension requirement, Fitch notes this statutory requirement only targets 90% funding of pension liabilities. In fiscal 2018, the gap between the state’s 90% statutory funding requirement and the actuarially determined contribution was over $1 billion dollars, more than five times the amount of the proposed supplementary funding. The graduated income tax requires a state constitutional amendment that must be approved by legislative super-majorities (which Democrats have in both chambers) and then by voters, also by a super-majority. Fitch estimates the earliest it could be approved would be in the November 2020 general election.
A second proposal to repurpose or sell state-owned assets to support the pension systems is also uncertain. The administration recently created a taskforce to evaluate state assets for this purpose but has not yet indicated a specific target amount or a timeline. Fitch cautions that financial engineering transactions that use a government-owned asset to strengthen a pension plan’s funded condition and slow the burden of rising contributions are not a substitute for more fundamental reforms that correct an underlying sustainability problem.
The third proposal is for issuance of $2 billion in pension obligation bonds (POBs) to reduce the pension liability rather than as budgetary relief for annual contributions - this reflects about 1% of the most recent estimate of the Illinois’ Fitch-adjusted net pension liabilities of more than $162 billion. Fitch generally considers POBs a neutral to negative credit factor. If POB proceeds are deposited with a pension trust, while full actuarial contributions continue to flow uninterrupted from annual budgetary resources, the issuance of POBs offsets the unfunded liability and has little immediate effect on the issuer’s overall long-term liability burden. In announcing the plan, the Deputy Governor said the state would only pursue the bonds if interest rates are lower than the discount rate on pension obligations at the time of issuance. Fitch notes that the POBs could be multi-decade obligations and present inherent investment and timing risks.
Fourth, the administration proposes extending the buyout programs enacted with the state’s current year budget, perhaps permanently. Several of the buyout programs have accepted applications but no payouts have been made to date. Fitch previously indicated uncertainty in the savings budgeted in fiscal 2019 from these buyouts. Extending them indefinitely could add to current year budget pressure by eliminating the incentive for eligible pension system members to sign up for a buyout this year, thereby reducing the immediate savings to the state. Over the long-term, Fitch considers the proposed open-ended buyouts as indirect pension benefit changes that could gradually reduce the long-term pension liability, but would require an ongoing funding source. Illinois’ fiscal 2019 budget anticipated issuance of up to $1 billion in GO bonds to fund pension buyouts. Absent a constitutional amendment, Illinois’ ability to more directly reduce already-accrued retiree benefits appears sharply limited.
The fifth proposal is arguably the clearest and most achievable change, but one that comes with considerable risk. To reduce the annual budgetary burden, the governor proposes extending the current closed 26-year amortization by seven years to 2052, while maintaining the comparatively weak 90% funding target. Re-amortization has been used by other state and local governments when addressing pension challenges, but is typically in the context of a commitment to achieving full prefunding, making actuarially determined contributions, and sometimes, benefit changes for current or future employees and retirees. Illinois’ re-amortization would maintain an inadequate funding target and be combined with uncertain revenue commitments, and limited indirect benefit changes.
The pension proposals in aggregate attempt to reduce immediate budgetary demands and longterm net pension liabilities, but on their own are unlikely to affect Fitch’s rating trajectory for Illinois’ IDR in the near term. Resolution of our Negative Outlook hinges on the state’s ability to address structural budgetary issues in the current year and fiscal 2020, and demonstrate progress toward more sustainable fiscal management. Fitch has previously identified more than $2 billion in risks and one-time items in Illinois’ nearly $40 billion fiscal 2019 general funds budget. The administration recently estimated the structural deficit for fiscal 2020 at $3.2 billion. The governor’s pension plan and his upcoming executive budget proposal will begin the process of determining how Illinois will meet these pressing fiscal challenges. [Emphasis added.]
Daley was hand-picked by Bruce Rauner to co-chair his transition team, laying the framework for Rauner’s reckless policies.
And as Rauner drove Illinois billions into debt, Daley stood by and did nothing.
Now Daley’s the only candidate funded by Bruce Rauner’s biggest donor.
Daley even said he was “proud” to take 2 million dollars from Rauner’s billionaire Wall Street buddy.
And now we should trust Bill Daley to be different from Bruce Rauner?
Let’s get real.
…Adding… Daley campaign…
The following should be attributed to Jorge Neri, campaign manager:
“This week, the Better Government Association rated the claims made in this new ad as false. Bill Daley served under two Democrat presidents: as Chief of Staff for former President Barack Obama, and U.S. Commerce Secretary for former President Bill Clinton. He also served as campaign chairman for former Democratic Vice President Al Gore’s presidential campaign. Bill is proud to be a longtime Democrat and to suggest otherwise is ridiculous.
“Bill is the only person in the race with the ability and experience to ensure every Chicago neighborhood prospers. Special interest groups aligned with Susana Mendoza are scared and these groups have chosen to hide behind dark money to maintain their grip of perceived political influence.
“This dark money group, with suburban roots, has previously supported Republican candidates over Democrats like Sean Casten and Lauren Underwood. The fact that they want to tell the City of Chicago who to vote for is laughable.
“As mayor, Bill will be accountable to the people of Chicago.”
Building on a strong team of diverse experts in their fields, Governor JB Pritzker announced the following personnel appointments:
ILLINOIS DEPARTMENT OF HUMAN SERVICES
Grace Hou will serve as Secretary of the Illinois Department of Human Services (IDHS).* Hou is currently the president of Woods Fund Chicago, a grant-making foundation that funds organizations that draw on the power of communities to fight the brutality of poverty and structural racism. From 2003 to 2012, she served as the Assistant Secretary at the Illinois Department of Human Services (IDHS) where she was responsible for the oversight of the agency’s six program areas. During that time, she was a key leader in the creation and implementation of the state’s nationally acclaimed Immigrant Integration New American’s Executive Order. Hou previously served as executive director of Chinese Mutual Aid Association (CMAA) and has been a vocal advocate for immigrant rights. She received her Master of Public Administration from the University of Illinois Springfield and her Bachelor of Science in journalism from the University of Illinois at Urbana-Champaign.
ILLINOIS DEPARTMENT OF NATURAL RESOURCES
Colleen Callahan will serve as Director of the Illinois Department of Natural Resources (DNR).* Callahan currently manages her own communications consulting firm after spending over seven years as state director for USDA Rural Development in Illinois. During her tenure, she oversaw a 20% reduction in staffing while still being able to generate a $1 billion increase in the Illinois loan portfolio. Prior, Callahan served as the agribusiness director for WMBD in Peoria, a position she held for 30 years. She was the first female president of the National Association of Farm Broadcasting. Callahan received her Bachelor of Science in agricultural communications from the University of Illinois at Urbana-Champaign.
ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
Deborah Hagan will serve as Secretary of Illinois Department of Financial and Professional Regulation (IDFPR).* For over 36 years, Hagan has been a strong and exemplary advocate for consumer protection in the Office of the Illinois Attorney General. In her role as leader of the Consumer Protection Division, she advanced and defended the interests of Illinois consumers in critical areas such as mortgage origination and servicing, student loan servicing, debt collection, identity theft and other areas of financial risk. Hagan has played a critical leadership role in many groundbreaking settlements on the state and national level, helping to recover billions of dollars in restitution for victims of consumer fraud and other wrongful conduct. In addition to her current role which she has held since 2004, Hagan has served as bureau chief, deputy bureau chief and assistant attorney general. She received her Juris Doctor from the University of Dayton School of Law and her Bachelor of Arts in political science from Miami University.
Mario Treto, Jr. will serve as Director of Real Estate at IDFPR.* Treto currently serves as Deputy City Attorney for the City of Evanston where he provides legal counsel to its elected officials, departments, and staff with compliance, transactional, and corporate matters. Prior to entering the public sector, he worked at a Chicago-based law firm focusing his practice on commercial and residential real estate, corporate law and commercial transactions. Treto is a nationally recognized lawyer by various organizations, including the International Municipal Lawyers Association, the Hispanic National Bar Association, and the National LGBT Bar. He also serves as board chair of Howard Brown Health, a federally qualified health center in the Chicagoland area with ten clinics and a youth center serving 35,000 patients. He received his Juris Doctor from the Indiana University Maurer School of Law and his Bachelor of Arts in biology and psychology from Washington University in St. Louis.
Francisco Menchaca will continue to serve as Director of Financial Institutions at IDFPR.* Menchaca has held the post since his appointment by Gov. Quinn in July 2013 and previously served the department as credit union supervisor. Prior to beginning state service, Menchaca developed an extensive resume managing financial institutions and governmental agencies at the Federal Deposit Insurance Company (FDIC). He has spent over twenty years of his career in the financial industry, notably serving as the First Vice President at Bank One, where he also spearheaded the Latino Employee Network. Menchaca is a proponent of robust public‐private partnerships and community outreach, citing his youth in the Pilsen/Little Village neighborhood as his inspiration in seeking to provide opportunities for educational and economic development. He received his Master of Business Administration from the University of Illinois at Chicago and his Bachelor of Arts from Northwestern University.
Jessica Baer will continue to serve as Director of Professional Regulation at IDFPR.* Baer has held the post since her appointment by Gov. Rauner in September 2016 and previously served the department as general counsel. In that role, she oversaw the entire legal department for the agency, providing input on a number of topics including pending litigation, labor issues, and legislation. Prior to joining IDFPR, Baer spent six years as an associate at K&L Gates focusing on litigation and antitrust law. Her cases involved complex contractual disputes, antitrust litigation and regulatory compliance counseling. Baer is licensed to practice law in Illinois. She earned her Juris Doctor from DePaul University and her Bachelor of Arts from the University of Illinois at Urbana-Champaign.
Click here to view the previous appointments to the Pritzker administration.
* Appointment pending confirmation by the Illinois Senate.
He seems to be keeping around quite a few Rauner appointees.
* The Illinois Sierra Club is loving the Callahan appointment, by the way…
We applaud Governor Pritzker’s appointment of Colleen Callahan to be the be the first woman to head the Illinois Department of Natural Resources. We’ve had the pleasure of working with Colleen for years to protect natural resources and bring the benefits of the clean energy economy to central Illinois. She has a big job ahead of her at a Department that has been devastated in recent years by budget problems and neglect, and we look forward to working with her to rebuild Illinois’ commitment to conservation and protecting our natural heritage for today and for future generations.
* This is the second bill that I know of to be tabled this week. Yesterday, Rep. Monica Bristow (D-Alton) tabled a bill that would’ve required a DCFS investigation whenever a home-schooling registration form was submitted after an outcry from parents. And now this…
A bill that would test a mileage tax for vehicles driving on state roads has been tabled, but that doesn’t mean it’s dead.
Chicago Democrat Marcus Evans last week filed House Bill 2864, establishing a pilot program for a 2.1-cent tax on every mile a vehicle is driven on state roads.
But Evans tabled the bill Tuesday, saying he wanted to send the message that he’s not going to bring it back this session. “But if someone else wants to find a creative way to do that, then they can,” Evans said. […]
“This bill needs so much work — why have it out there?” Evans said. “Let’s just talk about the idea, and educate ourselves on what it is first. We can still have conversations, but not for bill purposes.”
The blowback on social media was pretty intense. He got his “conversation,” but it likely wasn’t what he expected.
