[Rockford] Mayor Tom McNamara is unsure if he’ll run for the 17th district seat currently held by Congresswoman Cheri Bustos.
“I haven’t made any final decisions,” McNamara said. “I’m absolutely considering the position… We as elected officials we’re here to make a difference in residents lives, and I think we can do a better job of that.” […]
McNamara said he’s getting a “strong push” by local, state and national Democrats to run for the seat. […]
Regardless of whether or not he runs, McNamara said the candidate should be someone from the district.
OK, but there are no districts yet. And there may not be until October.
* Meanwhile, from the same area…
The campaign for Republican Esther Joy King today announced it had raised over $425,000 in the second fundraising quarter that ended June 30th.
King’s campaign, fueled by grassroots momentum of a now-open seat, raised nearly $400,000 since becoming the frontrunner in the race on April 30. Her total raised since formally entering the race for the 2022 election now tops $575,000 as her campaign has moved into one of the top 3 GOP pickup opportunities nationwide. […]
King’s Q2 fundraising by the numbers:
Total Raised in Q2: $426,384.32
Total Raised since April 30: $393,101.40
Total Raised in 2021: $581,544.23
Number of Q2 Donors: 1,219
Number of Q2 IL Donors: 820
Percentage of donors from IL: 67%
Pretty good, but she hasn’t yet filed her report, so we don’t know what she spent.
* In other news, this is from the Democratic Party of Illinois and the Illinois Democratic County Chairs Association…
Fringe Illinois Republican Congresswoman Mary Miller welcomed conspiracy theorist and hate speech provocateur Georgia Republican Congresswoman Marjorie Taylor Green to Illinois this week. Today, Abby Witt, Executive Director for the Democratic Party of Illinois, and Dan Kovats, Executive Director for the Illinois Democratic County Chairs Association, released the following statement:
“Mary Miller and Marjorie Taylor Green are two peas in a pod blindly following their dear failed leader Donald Trump. They voted against honoring the police officers who protected them and others from the January 6 failed insurrection instigated by Trump. Miller and Green both purposely spew hate concerning statements referencing Hitler, the Holocaust, and Nazi ‘Brown Shirts’ into their remarks.”
“The Miller and Green show are now fundraising together in Illinois, continuing their grift and conspiracy theory partnership. If they are the Republican Party, they don’t represent the majority of middle Americans and they don’t belong in Congress spewing hate and division.”
Mary Miller quoted Hitler the day before the failed insurrection. Marjorie Taylor Green, again, made another Nazi-era reference regarding the push to vaccinate more Americans – her second comment in months.
Miller’s 15th Congressional District is by far the most conservative in Illinois — Donald Trump won it with 72 percent last year — and Greene undoubtedly will be a big draw at Thursday’s event and will help replenish Miller’s campaign treasury.
But in terms of advancing thoughtful conservative values and civility in government, and in finally helping to repel the damaging myth that the election was stolen from Trump, Miller has chosen chaos over contemplation.
She is doing her district and her country a disservice by promoting Greene and driving more loosely based, ideologically suspect wedges among the broader electorate.
Chicago-based Boeing has emerged as the largest corporate donor in the country this year to political groups that back members of Congress who voted against certifying the election of President Joe Biden.
In a new report, watchdog group Citizens for Responsibility & Ethics in Washington, or CREW, said that since recently lifting a ban on congressional donations imposed after the Jan. 6 Capitol riots, Boeing’s political action committee has donated $210,000 to groups affiliated with what CREW calls “the Sedition Caucus.”
Koch Industries, whose founders long have been active in conservative causes, is second, at $122,500, and Walmart third at $60,000, according to the report, based on Federal Election Commission records. The only other Illinois company on the list of top 25 donors is Deere, with one donation for $5,000.
* I told subscribers to expect this earlier today. Press release…
Governor JB Pritzker hailed the state’s improved bond rating from S&P Global Ratings on Thursday, the second such rating upgrade in recent days. The announcement follows Moody’s credit upgrade and Fitch’s upgraded credit outlook for the state—a trifecta of good news from the three major credit rating agencies.
Since taking office, Gov. Pritzker has tirelessly focused on strong and responsible fiscal management, working with the General Assembly to hold the line on spending while making key investments in programs working families rely on while continuing to strengthen Illinois’ fiscal outlook.
“A well-known proverb states, a journey of a thousand miles begins with a single step. Throughout my administration we’ve remained steadfast in our goal to return Illinois to fiscal stability. That has meant making responsible decisions step by step, day by day, working closely with our partners in state government,” said Governor JB Pritzker. “These responsible decisions are paying dividends, as evidenced by today’s upgrade from S&P, last week’s upgrade from Moody’s and our outlook rise to positive by Fitch. My administration has worked diligently to make real progress, the rating agencies are acknowledging our progress and we remain committed to further strengthening Illinois’ fiscal standing.”
S&P last upgraded the state’s bonds in July 1997 and today’s upgrade analysis credited “improved liquidity,” “demonstrated operational controls during the COVID-19 pandemic” and an “improving economic condition” in making the rating change.
“Throughout the pandemic, the state has been able to deliver needed services and programs, both traditional governmental and pandemic-response-related without meaningfully changing the debt profile,” S&P stated.
The Governor noted all the positive reports from the top rating agencies are the result of many leaders working cooperatively in the best interest of Illinois’ taxpayers, especially thanking Speaker Welch, President Harmon, Leader Greg Harris, Senator Sims, Comptroller Mendoza and Treasurer Frerichs for their continued partnership.
S&P upgraded Illinois’ rating on its General Obligation bonds from BBB- to BBB with a stable outlook also upgraded the Metropolitan Pier and Exposition Authority ratings to BBB+ from BBB based on the state’s support. Build Illinois bonds were upgraded to BBB+ from BBB.
Last week Moody’s upgraded Illinois’ rating on its General Obligation bonds from Baa3 with a stable outlook to Baa2 with a stable outlook, and also upgraded the Metropolitan Pier and Exposition Authority ratings to Baa3 from Ba1 based on the state’s support. Build Illinois bonds were upgraded to Baa2 from Baa3.
In an updated credit analysis issued by Moody’s released Wednesday, the rating agency noted last week’s credit upgrade was supported by a material improvement in the state’s finances, demonstrated by the ability to repay emergency Federal Reserve borrowings promptly and keep unpaid bills in check at a low level.
“One of the most striking developments in recent months was the state’s reduction of a “backlog” of unpaid bills, underscoring the improvement in the state’s finances,” Moody’s wrote.
The rating of a state’s bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars.
…Adding… Speaker Chris Welch…
For the first time in decades, Illinois has received not one, but two bond rating upgrades. I am incredibly proud of our state’s responsible financial choices that continue to improve our fiscal standing, as well as put hardworking Illinoisans and their families first. These are the types of positive changes you see when government leadership is truly working for the people they represent.
…Adding… Comptroller Mendoza…
“S&P’s upgrade of the state’s credit rating is further evidence that Illinois is moving in the right direction. Upgrades are good news because they mean lower costs for taxpayers on the bonds that we use to build roads, bridges, schools and other projects. A top priority of mine as comptroller has been paying down the state’s bill backlog, knowing that credit rating agencies would recognize our hard work. From a high of $16.7 billion during the prior administration’s budget impasse, that backlog is down to $2.9 billion today.
“As the state comptroller, my priority continues to be managing the state’s bill backlog and providing evidence to the credit rating agencies that Illinois is an excellent investment and is on a path to financial stability and certainty.”
…Adding… Senate President Harmon…
This is further proof we are on the right track in balancing our fiscal realities with the real-world needs of working men and women. We are moving Illinois forward by paying our debts while at the same time investing in education, health care, child care and other key programs people need to get ahead.
*** UPDATE *** From the S&P report…
The adopted fiscal 2022 $44.3 billion general funds budget is similarly sized to the fiscal 2021 spending and is designed to generate an $88 million surplus. In addition, the fiscal 2022 budget anticipates using $2.8 billion in federal American Rescue Plan (ARP) funding for pandemic-related purposes, $1.8 billion for economic recovery and other pandemic needs, and $1 billion for capital. The capital money will be split approximately $575 million for project types specifically authorized in the ARP guidelines (broadband, water, and sewer) and the remaining $425 million on other projects once the reimbursement rules are finalized. That leaves $5.3 billion for additional uses to be determined through the ARP spending deadline of Dec. 31, 2024. The plan for spending the ARP money is ongoing but looks to be aimed at pandemic expenses, supporting economic development, and aiding small businesses affected by the pandemic.
Although Illinois’ fiscal 2022 general fund budget is flat compared with the previous year’s spend, and balanced in terms of current-year obligations, we do not view it as structurally balanced due to the treatment of pension obligations. Pension contributions of $9.4 billion are budgeted to fully meet increasing statutorily set amounts but are still less than actuarially determined amounts. We view the difference between the statutorily set contribution amounts and our defined minimum funding progress as a structural gap.
Illinois’ bill backlog remains, but according to the state comptroller at the end of fiscal 2021 was approximately $2.6 billion, the lowest level in more than a decade. As of July 7, the bill backlog was $2.9 billion, but such variation is expected. Continued reduction in these liabilities could give the state needed budgetary flexibility and help it avoid unnecessary interest charges. We expect the state’s focus will remain on paying the past-due obligations (although most are now less than 45 days’ delinquent), before shifting to establishing a reserve for future recessions.
The remaining $5.3 billion in ARP funds come with some use limitations, such as a prohibition on using this money to resolve pension-funding deficiencies, depositing into rainy day reserves, and paying back the MLF; the federal funds could be used to replace lost revenue, repay part of the $4.2 billion borrowed from the federal government for unemployment payments, or further reduce the bill backlog.
Credit weaknesses supporting the ‘BBB-’ rating include:
• An almost empty budget stabilization fund that would further limit budgetary flexibility;
• The remaining bill backlog;
• Pension funding practices where the statutory pension funding is designed to attain a 90% funded status in 2045, which is one of the least conservative funding methodologies in the nation among peers; and
• A recurring practice of relatively late audit reports. The audit for the fiscal year ended June 2019 was not released until April 2020 and the fiscal 2020 audit is still not published. Although not required for us to consider an upgrade, a return to a more abbreviated audit release period would be in line with that of higher-rated peers.
Credit strengths include:
• On the revenue side of the budget, various tax revenues have held up stronger than forecast during the depths of the economic trough, and the receipt of unbudgeted federal stimulus to help bridge the gap to a fully functioning economy;
• On the expenditure side of the budget, whereas in the recent past the state has hesitated to make expenditure cuts during times of fiscal stress, the administration made more than $700 million in budget cuts and freezes in fiscal 2021 during the budget year. Not all cuts and freezes were general fund-related, but the recurring actions indicate a potential change in practice;
• Overall, the budget, aside from the inherent pension gap between the statutory funding and actuarial recommendations, during this current period of favorable and improving economic conditions is seeing improved structural balance; and
• The political gridlock that stymied governance a few fiscal years ago has dissipated.
The stable outlook reflects the expected strength of the liquidity position, continued economic recovery, and regular revenue and expenditure reporting and budgetary control usage.
A WBEZ analysis of Cook County vaccination data by municipality found a stark gap between the most vaccinated suburbs and least vaccinated ones. The 10 communities with the highest vaccination rates are all majority white and affluent, while the 10 communities with the lowest vaccination rates are majority Black and low-income.
“I personally didn’t imagine there would be that wide of a gap,” said Dr. Rachel Rubin, co-lead of the Cook County Department of Public Health.
* Here are the highest vaccinated suburban towns that are entirely within Cook County…
Northbrook 81.4%
Des Plaines 78.2%
Riverside 75.5%
Glenview 73.9%
Northfield 68.5%
Wilmette 63.6%
Morton Grove 63.1%
Winnetka 63.1%
Palos Heights 62.9%
Western Springs 62.6%
Rubin said now the county plans to shift resources toward more community-focused, on-the-ground efforts.
“We really need to be going door to door with outreach,” Rubin said. “To say, ‘We have a van that’s doing vaccinations that’s in the elementary school yard,’ and draw a circle and knock on all the doors and say, ‘We’re going to be here all weekend.’ ”
The gift of immunization against COVID-19 is about to get significantly sweeter for four Illinois residents — and a million times sweeter for one of them.
The state will draw the first four winners of its coronavirus vaccination lottery Thursday, making one inoculated adult $1 million richer and providing $150,000 scholarships to three minors who have gotten their jabs.
It’s the first of nine weekly drawings being held throughout the summer as an incentive to get more people to roll up their sleeves. A total of $7 million in cash prizes will be doled out to adults, and $3 million in scholarships will go to kids aged 12-17.
Thursday’s prizes include one of only three $1 million jackpots in the lottery.
As Illinois continues to lead the Midwest in vaccinating its residents, Governor Pritzker announced a new pilot program offering a range of incentives to state employees who work in direct care facilities and receive at least one dose of the vaccine. The Illinois Department of Human Services (IDHS), the Illinois Department of Veterans’ Affairs (IDVA), the Illinois Department of Juvenile Justice (IDJJ) and the Illinois Department of Corrections (IDOC) announced the drawings to eligible employees in late June and will announce winners on July 19.
Dozens of frontline employees will be chosen in drawings conducted by the Illinois Lottery. Lucky winners will receive:
• Cash bonuses: ranging from $5,000 to $10,000
• State prizes: a choice among lifetime hunting and fishing licenses, Abraham Lincoln Presidential Museum passes or memberships, and State Fair admissions and concert passes
• Airline vouchers: first-class tickets to any domestic U.S. destination or coach tickets to any international destination on American Airlines
• Sports tickets: home game tickets to cheer on the Chicago Bears, Chicago Cubs, Chicago Fire FC and St. Louis Cardinals
“Our state employees have worked tirelessly on the frontlines throughout the pandemic and I’m thrilled to announce this new opportunity to encourage them to get vaccinated,” said Governor JB Pritzker. “By further increasing state employee vaccination rates, we’re not just protecting our staff, we’re protecting our vulnerable residents in state facilities and our surrounding communities. Getting vaccinated is truly how we protect ourselves from new variants and put this pandemic behind us.”
“While our vaccination rates in Illinois are good, we cannot let our guard down,” said IDPH Director Dr. Ngozi Ezike. “Across Illinois, we are seeing COVID-19 variants that spread more easily and quickly, and are more dangerous. Right now, the vaccines available have proven to be effective against these variants. However, if the virus is allowed to further circulate, it can and will mutate further. Getting vaccinated now can help stop the spread and mutation of the virus, and protect you and those around you.”
From the onset of the pandemic, frontline state employees have protected Illinois’ most vulnerable residents from IDHS developmental centers and psychiatric hospitals to IDVA veterans’ homes to IDJJ and IDOC facilities. To recognize their ongoing service to the state, employees who have taken at least one COVID-19 vaccine dose by July 12, 2021, will be entered into the free drawing. State agencies announced the drawings to eligible employees in late June.
More at the link. No comment from AFSCME was included, so I reached out. Here’s Anders Lindall…
Our union welcomes this incentive to encourage everyone to protect themselves, their families and their communities by getting vaccinated. Safe and highly effective, the vaccines are the road back to normalcy: Seeing family and friends, going to movies and restaurants, traveling and more. That’s why since December we’ve been doing everything possible to reduce barriers to access for AFSCME members and to help overcome hesitancy by providing accurate information on the importance of vaccination.
*** UPDATE *** Press release…
The first winners of Illinois’ $10 million ‘All In for the Win’ vaccine lottery have been chosen in the first drawings conducted by the Illinois Lottery.
“Getting vaccinated is your shot to save lives and win big,” said Governor JB Pritzker. “Especially with more dangerous variants spreading, getting vaccinated is the best way to protect yourself from COVID-19. I’m excited we’re able to offer enticing prizes to reward residents for getting the shot.”
“With 10 million additional reasons to get a COVID-19 vaccine, we hope to increase the number of Illinoisans who make the importance choice to secure the best protection against COVID-19 by getting vaccinated,” said IDPH Director Dr. Ngozi Ezike. “We are seeing an increase in the test positivity rate in Illinois. With the more contagious Delta variant circulating, we need more people to be fully vaccinated to better control this pandemic.”
The Illinois Department of Public Health will be notifying winners by phone or email starting this afternoon. The first round of winners are from the following locations across Illinois:
$1 million cash prize: Chicago
$150,000 scholarship: DeKalb County
$150,000 scholarship: Suburban Cook County
$150,000 scholarship: Chicago
Illinoisans from those cities and counties should keep their phones on and check their emails regularly to find out if they’ve won. IDPH will call from 312-814-3524 and or email from DPH.communications@illinois.gov. No personal information will be requested in the initial phone or email notification. Winners will have seven days to securely complete, sign and send the authorization form to IDPH to accept their prizes. The Illinois Lottery will then guide winners through the claims process. Winners will be announced eight days after each draw unless they choose to remain anonymous.
Lake Michigan’s water level has historically risen or fallen by just a matter of inches over the course of a year, swelling in summer following the spring snowmelt and falling off in winter. Bigger oscillations, a few feet up or down from the average, also took place in slow, almost rhythmic cycles unfolding over the course of decades.
No more.
In 2013, Lake Michigan plunged to a low not seen since record-keeping began in the mid-1800s, wreaking havoc across the Midwest. Marina docks became useless catwalks. Freighter captains couldn’t fully load their ships. And fears grew that the lake would drop so low it would no longer be able to feed the Chicago River, the defining waterway that snakes through the heart of the city.
That fear was short-lived. Just a year later, in 2014, the lake started climbing at a stunning rate, ultimately setting a record summertime high in 2020 before drought took hold and water levels started plunging again.
In just seven years, Lake Michigan had swung more than six feet. It was an ominous sign that the inland sea, yoked for centuries to its historic shoreline, is starting to buck. […]
If the lake were to drop just a couple of feet below its all-time low, or surge a couple of feet above its record high, the consequences for the city could be dire. […]
If a two-foot storm surge were to strike when the lake level was just a couple of feet higher, the lock itself would in effect be useless. Lake water would overtop its gates and race into the city, and beyond. “It would be a problem,” Mr. Schmidt said as waves crashed nearby. “It would be a big problem.”
Added Mr. Valley: “All the way down to the Mississippi.”
* Advocates continue to push for equitable energy bill: “The truth of the matter is that some trade unions have stood in the way of Black and brown workers and contractors sharing and the chance to earn jobs, to build businesses and to create generational wealth by controlling access to apprenticeships and other job training programs, especially in the energy and construction industries,” Buckner said.
* Renewable energy? UI’s new Campus Instructional Facility can dig it: Its geothermal system can pump 135 tons of hot or cool air into the building. That’s twice as much as the next biggest geothermal system on campus, and about 30 times the amount pumped into an average home.
* More 20th Century entertainment hired more than two decades into the 21st Century. Press release…
The Illinois State Fair will be rocking when Bret Michaels with special guests Dee Snider and Dokken (featuring special guest appearance by George Lynch) take the Illinois Lottery Grandstand Stage on Saturday night, August 21.
After over a year removed due to the pandemic, music icon and humanitarian of the year award recipient Bret Michaels makes his triumphant return to the stage and is bringing the biggest party of the summer to the Illinois Lottery Grandstand. Michaels’ “Nothin’ But A Good Vibe” Summer Concert Tour will, as always, showcase the global superstar’s high octane live show providing the ultimate summer party soundtrack.
“I am without a doubt fired up and ready to bring an insane party and night of real, live good music combined with the great outdoors,” said Michaels. “It has been too long since live shows were a thing. We are bringing the big show back on the road and make that connection with 3 generations of amazing friends and fans whom I am sure are ready to party just as much as I am.”
In addition to a successful solo career, Michaels emerged as a reality TV star with the record breaking, VH1 franchise, Rock of Love, following up with Bret Michaels: Life As I Know It and Rock My RV, and was voted fan favorite of his winning season of The Celebrity Apprentice.
While perhaps best known as the lead singer of rock band, Twisted Sister, there is much more to Dee Snider. He has starred in several reality TV shows including appearances in three seasons of Celebrity Apprentice; Gone Country with John Rich; MTV’s Rock The Cradle with his son Jesse; Growing Up Twisted, an A&E series featuring the entire Snider family and their Long Island lifestyle; ABC’s Celebrity Wife Swap, and Celebrity Holiday Homes. He is also a frequent host on MTV Networks and his own long running nationally syndicated radio show House Of Hair is heard on more than 200 stations in North America.
Dokken exploded out of the hard rock/heavy metal scene in Los Angeles in the early 1980s. 1983’s “Breaking the Chains” with its catchy title track, set the stage for Dokken becoming the most dominant creative and commercial force in the world of melodic hard rock for the following years. Classic albums as “Tooth and Nail”, “Under Lock and Key” and “Back for the Attack” all became Multi-Platinum selling smashes and the live “Beast from the East” went gold in Europe and Japan. Songs like “Alone Again”, “Just Got Lucky”, “Into the Fire”, “In My Dreams”, “Unchain the Night”, “Dream Warriors”, “Burning like a Flame” and “Heaven Sent” are still regarded among the genre’s finest. […]
There are changes being made to track (SRO) admission for the 2021 grandstand. The track will be open for General Admission, but the exclusive VIP gated area on the track is no longer being offered. The Illinois State Fair is continuing to offer the Stage Side Pre-Show Parties for all nights of paid concert events. While attendees of the Stage Side Party are required to have both a concert ticket and a party ticket to enter the party tent, all party attendees are allowed entrance into the venue prior to other ticketholders. Stage Side Party tickets are only $30 each and include a parking pass if purchased prior to July 15. There are a limited number of party tickets available for each concert.
All respect to Dee Snider, though. He stood up to the would-be congressional censors back in the day.
* The lineup, in case you’ve lost track…
Thursday, August 12: Sammy Hagar & The Circle
Friday, August 13: Kane Brown with Restless Road
Saturday, August 14: Gabriel “Fluffy” Iglesias
Sunday, August 15: Toby Keith with Craig Morgan
Monday, August 16: The Traveling Salvation Show – A Tribute to Neil Diamond
Tuesday, August 17: Chris Young with Ingrid Andress and Payton Smith
Wednesday, August 18: I Love the 90’s Tour
Thursday, August 19: Badflower with Dorothy and Dead Poets Society
Friday, August 20: Brett Young with Russell Dickerson
Saturday, August 21: Bret Michaels with special guests Dee Snider and Dokken (featuring special guest appearance by George Lynch)
Sunday, August 22: George Thorogood with 38 Special
Revenues flowing into state coffers surged in the fiscal year that ended June 30, spurred largely by an influx of federal funds, the delayed deadline for filing income tax returns last year and an economic recovery that boosted income and sales tax collections beyond what had been estimated.
A report from the Commission on Government Forecasting and Accountability, a legislative agency that monitors the budget and state revenues, showed base receipts to the General Revenue Fund jumped nearly $6.8 billion, or 17.8 percent, during the fiscal year, fueled by big increases in personal and corporate income taxes and retail sales taxes.
That growth does not include money the state borrowed from the Federal Reserve last year or any of the money the state routinely borrows on a short-term basis from other state funds.
Combined net income tax receipts, both individual and corporate, grew by more than $5.5 billion over the previous year, to a total of just over $26 billion. That was more than $1 billion more than CGFA had estimated as recently as May, and it was over $1.7 billion more than the Governor’s Office of Management and Budget had estimated.
A recent study by researchers at Loyola University Chicago found that bail reform in Cook County “had no effect on new criminal activity or crime,” a finding in line with studies of crime data from other large cities.
The percentage of Cook County defendants released prior to bail reform who were charged with a new violent criminal act: 3%.
The percentage of defendants released after bail reform who were charged with a new violent criminal act: 3%. […]
Defendants’ probability of new criminal activity prior to bail reform: 17.5%.
Defendants’ probability of new criminal activity after bail reform: 17.1%.
Community activists on Wednesday called on Gov. J.B. Pritzker to declare a state of emergency decree for gun violence after Chicago recorded its deadliest and most violent weekend yet this year. […]
Green called gun violence a “public health crisis” and said “it’s clear” city leadership can’t get a handle on the situation. That’s why, he said, the group is asking Pritzker to step in. […]
In a statement Wednesday evening, Jordan Abudayyeh, a spokeswoman for Pritzker’s office, did not mention Pritzker issuing a state of emergency decree, though she said the Democratic governor is committed to a “comprehensive approach to gun violence,” which includes investing in programs that produce pathways to better education, careers and safe communities.
“The Governor believes we have to treat the epidemic of gun violence as a public health crisis, which is why since day one his administration has significantly increased funding for violence interruption and prevention programs,” said Abudayyeh, noting that Pritzker increased funding to these programs by $50 million in his first year in office.
Abudayyeh also said this year’s budget allocates $128 million for violence prevention programs.
In comparison, CPD’s annual budget is $1.7 billion.
In about half of Illinois’s counties — 52 of 102 — measured by a Federal Communications Commission study, broadband access is available to at least 74% of residents. Yet in about half of the state measured by Microsoft — 52 of 102 counties — no more than 24% of households actually have high-speed access, a USA TODAY analysis shows. […]
The proportions of Illinois households that have high speed access varies widely: In Calhoun County, it’s just 2%; in Alexander County, it’s 3%; and in Pulaski County, it’s 6%. Leading the state are DuPage County with 80%, Lake County with 63% and Kendall County with 61%. […]
Among Illinois’s wealthiest counties: 61% of Kendall County has access, 80% of DuPage County has access and 63% of Lake County has access. Among the least-wealthiest counties, access rates are 6% in Pulaski County, 3% in Alexander County and 27% in Jackson County.
* There are two schools of thought on this. One is that competitive races are good because they give people actual choices and increase overall turnout. The other, more dominant one in Illinois, is that this is a bad idea because fielding candidates in uncompetitive districts can backfire by driving up turnout for the other side as the dominant party expends energy and resources to crush the opposition.
The libertarian-leaning Illinois Policy Institute will be trying its hand at candidate recruitment this summer and fall, sending out at minimum tens of thousands of postcards to households the organization identifies as “high propensity voters” who also align with the think tank on issues of “economic freedom,” seeking out those who may be interested in running for office.
Illinois Policy’s outreach drive — a pilot for a possible more robust candidate training program in the future — is being launched in tandem with a new paper from three staff researchers at the organization. The paper argues that because Illinois’ legislative and congressional district maps are drawn with a low degree of competitiveness, incumbents go uncontested because a House or Senate district is all but guaranteed to a Republican or Democrat, leading to lower voter turnout.
The researchers estimated that uncontested races translated to 1.7 million “missing votes” since 2012 — the first election cycle under the state’s current legislative and congressional maps, or an average of 334,000 votes per election year, though presidential election cycles yield higher voter turnout.
“Roughly half of all Illinois House races were uncontested on average,” the paper argues. “That means that many voters were denied the opportunity to support a candidate who is more closely aligned with their own preferences.”
Thursday, Jul 8, 2021 - Posted by Advertising Department
[The following is a paid advertisement.]
Climate change is no longer an impending crisis. We’re in a state of emergency right now. Last month, more than 480 people died in the Pacific Northwest when temperatures skyrocketed to 117 degrees. Last week, the Gulf of Mexico was on fire.
But instead of taking action in Illinois, fossil fuel companies and out-of-state interest groups are working overtime to mislead consumers about the health, cost, and climate impacts of toxic coal plants. Recently, Congressman Rodney Davis earned a “Pants on Fire” rating for claiming that the Prairie State coal plant was somehow not a major polluter.
Here’s the truth: Prairie State is one of the largest polluters in the nation, and that one plant is responsible for nearly 30% of all CO2 emissions in the Illinois power sector.
The impact of this toxic coal plant isn’t theoretical: Prairie State causes roughly one premature death every week and costs nearly $2 billion a year in damage to our health and environment.
Legislators have an opportunity to pass an equitable energy bill that not only closes dangerous coal plants like Prairie State, but provides resources for impacted communities while maintaining reliable power for everyone in Illinois.
Gov. JB Pritzker visited the ‘Hub City’ on Thursday afternoon.
Pritzker was in town visiting Kennay Farms Distilling with a film crew in tow. He recognized the distillery for its work early in the COVID-19 pandemic when it adapted to making hand sanitizer rather than spirits. A member of Pritzker’s video team reached out to Kennay Farms Owner Rick Kennay and asked in the days before to set up a tour and interview, Aubrey Quinn, in charge of marketing at the distillery, said.
“It was a pretty cool experience,” Quinn said. “We were pleased they picked us out. We felt pretty special. It was cool to meet them. They were shooting video for four hours. They wanted to see products bottled. We bottled a single barrel whiskey. They filmed shots around the tasting room and we walked across the street to eat lunch. It was casual. We talked about the transition that we made last year.”
Quinn said that when the Kennays made the choice to switch to hand sanitizer last year, they didn’t think they would still see the impact and recognition over a year later. The family enjoyed bringing in the people that did the work to be recognized on Thursday. […]
Rochelle Mayor John Bearrows spent about five hours with Pritzker during his visit. He was sworn to secrecy upon learning the Governor would be coming to town three days earlier. They ate lunch together at Acres Bistro.
Governor J.B. Pritzker was in Staunton on Wednesday June 30, to shoot a commercial and talk to local business owners and residents. Pritzker and his crew shot the commercial at the Blackbird Bakery and Cafe, which is described as an ‘artisan cafe and bakery’ established by Harry and Emily Paul, and located on East Main Street.
Ashli Pernicka, who is currently both a baker and helping to run the front of house, answered some questions over her break regarding the Governors visit. When asked if the staff at Blackbird Bakery knew about the Governor’s visit beforehand she replied, “just a few days in advance we got some phone calls about it, asking if we were willing to have him come down and film a commercial here, about small businesses and his response to the pandemic, and just Emily and Harry’s story over the past year, so we did know about it.” Pernicka added, “we had some people we had told about it, close family and friends… but nobody really knew about it.”
Harry Paul, who co-owns the bakery with his wife, Emily and is a baker, took some time to answer questions about the visit as well. When asked how he felt the visit went, Paul replied, “it went well, it was fun, he was a nice guy and he was here for a couple hours.”
Gov. Pritzker sat down with the Paul’s to ask some questions about their life, family, and business. Paul says, “He just asked us about our business and how we did with the pandemic, and how we’re doing now. He was very complimentary and was looking around, checking out our place, and Staunton. I know he walked down the street a little bit too.”
We love seeing successful public campaign financing programs. Connecticut is demonstrating that #publicfinancing can lead to better governance. https://t.co/4LDh6sXhRW
— Reform for Illinois (@Reform4Illinois) July 6, 2021
Connecticut grabbed national headlines in 2005 and 2006 when the legislature and then-Gov. M. Jodi Rell enacted a sweeping campaign finance reform package that not only established public funding for state races, but also:
• Barred campaign committees from selling ad books to raise business and other special interest funds.
• Dramatically limited political action committees’ abilities to transfer funds.
• And restricted contributions by lobbyists and state contractors.
The Citizens’ Election Fund receives most of its funding from the sale of abandoned property. Candidates qualify for public funds by first raising seed money in small increments, between $5 and $250, from individuals. […]
The $27 million in public funds spent on state elections in 2018 — $12.8 million on legislative races and $14.2 million on gubernatorial and other statewide contests — represents 1/7th of 1% of all General Fund spending that year.
More importantly, advocates of the system say, as lobbyists’ influence over campaigns has dropped, legislators and governors have been more willing to revisit corporate and other business tax breaks.
An equivalent amount for Illinois would be a little over $60 million for all legislative and statewide races.
* The Question: Should Illinois adopt a similar campaign finance system? Take the poll and then explain your answer in comments, please…
City Clerk Anna Valencia picked up the support Tuesday of the woman who is expected to lead the Democratic ticket next year, securing the endorsement of U.S. Sen. Tammy Duckworth in Valencia’s bid to succeed outgoing Illinois Secretary of State Jesse White.
Duckworth, who is seeking a second term herself, is the first statewide elected official to weigh in on the heated four-way Democratic primary race for secretary of state.
In a video announcing the endorsement, Duckworth said she “can’t think of a better person to represent us and, more importantly, to serve the people of Illinois.”
“She comes from Granite City, she knows what working families are going through, she knows what every single one of us has faced in terms of difficulties in our life, but she’s persevered, and she’s continued to work hard,” Illinois’ junior senator said in the video. “I hope someday young girls and boys say ‘I want to be just like Anna.’ I certainly do.”
Probably worth mentioning that Sen. Duckworth backed another state party chair candidate against US Rep. Robin Kelly. Rep./Chair Kelly is a longtime Giannoulias ally.
Republican state Rep. Dan Brady hasn’t entered the race to lead the Secretary of State’s Office — he’s still considering it — but a poll he initiated shows him just five points behind Alexi Giannoulias, a frontrunner in the Democratic race.
The Ogden & Fry poll asked respondents: If the election for Secretary of State were held today, for whom would you vote, Giannoulias or Brady? Results showed 43.8 percent of respondents would vote for Giannoulias, the former state Treasurer, compared to 38.7 percent who said Brady. Nearly 18 percent were undecided. […]
Poll numbers show two-thirds of downstate respondents had never heard of Giannoulias or Brady.
Translation: Few actually know who either of those guys are and Giannoulias is performing at almost precisely the generic Democratic level for this poll while Brady is above the generic Republican level. Brady has more solid GOP support in this poll (90 percent) compared to Giannoulias among Dems (82 percent). But the Republican is also doing a bit better among independents (34-26), who often tend to lean more GOP.
Some believe that lies about election laid the foundation for the insurrection. Bost voted to overturn the results of Pennsylvania and Arizona hours after the riots.
“I’m not worried about what history does with that,” Bost said. “Did they or did they not run their elections according to the Constitution? And the answer again is they did not.”
Narrator: They did.
* A silly story that produced an even sillier reaction last week…
Has anyone told him that he can't be appointed to this position by local committeemen? https://t.co/iRbZpiRyON
* For decades now, every time there’s a Chicago crime spike, some politician demands that the National Guard be called up. Republican gubernatorial candidate Gary Rabine is no exception to this hard and fast rule…
“As the leader of our state, Governor Pritzker needs to take a more active role in what is happening in our City,” Rabine said. “Real leaders get involved to solve the tough problems. They get their hands dirty. They work endlessly until they find resolution. We have blood in the streets. This is real life, Illinois citizens are being shot and killed at record numbers, this is a war zone. We need the Governor of our state to be an engaged leader who is involved and who will give problems of this magnitude the sense of urgency they deserve.”
Last weekend in Chicago there was a record-breaking weekend for violence as more than 104 people were shot with 19 fatalities. At least 13 of the people shot were children. Rabine said bad policies that are ruining policing have created these unforgivable outcomes.
“We have a Governor who not only is doing little to make our state safe, but he is also actively working to bring chaos and crime to our neighborhoods,” Rabine said. His Prisoner Review Board has used the pandemic as an excuse to release hundreds and hundreds of inmates – many of whom are violent offenders in Illinois communities. He signed into law a so-called ‘police reform’ bill that will only serve to make our communities and our police less safe. Gov. Pritzker must see the national news coverage of our City, depicting our City as a war zone. The lack of safety and security to our communities is unexceptable”
Rabine said it is time for Pritzker and the state to step up and lead to protect the citizens of Illinois. When it comes to real leadership, Pritzker doesn’t know what that looks like, he apparently has never had to lead in a crisis.
“If I were Governor, I would lead an urgent initiative to solve this dier problem,” Rabine said. “I would be putting major pressure on Mayor Lightfoot to get this situation resolved and when that doesn’t work, I would look at activating the National Guard to help clean up the streets and make the City safer. I would personally be doing everything I could to give the families of Chicago, Illinois the safety and security they deserve. Our communities deserve better than this massive lack of leadership currently displayed.”
I generally let this go, but I couldn’t help but notice the large number of typos in that release.
…Adding… Rabine’s spokesperson just called to say he inadvertently sent out the wrong version of the release. Click here.
Anyway, local crime is usually considered a local issue, but there are items in the new state budget that address local crime.
* Meanwhile, Rabine’s campaign bused in protesters to today’s Biden event. Pics from a subscriber…
Illinois superintendents are pressuring the state board of education to release public health guidance immediately as school districts prepare to reopen classroom doors in the fall.
The Large Unit District Association, which represents 52 of Illinois’ largest school districts and more than half a million students throughout the state, sent state superintendent Carmen Ayala a letter this week demanding that the state publish public health guidelines for schools aligned with the Phase 5 reopening plan.
“We request that social distancing, quarantining, and masking guidelines in schools be consistent with health guidelines of Phase 5 as applied to other venues in Illinois,” said the letter.
John Burkey, executive director of the Large Unit District Association, said in an interview with Chalkbeat Chicago that school districts are excited to get students back into classrooms after the pandemic year, but district leaders need immediate guidance to bring back students. […]
The state board of education passed a resolution in May requiring school districts to reopen in the fall with limited exceptions for remote learning. Since school districts have to operate at full capacity, the letter raises concerns about social distancing, masks and quarantining students who have or are exposed to COVID-19.
“Under the 6-feet social distancing guidelines, it is impossible for most of our schools to operate at 100 percent capacity, “ said the letter. “Using 3-feet social distancing guidelines, full capacity is possible in most cases, but only with significant modifications.”
* The state board has responded by saying that updated CDC guidance is expected sometime in early July. In the meantime, schools should plan for “both looser CDC guidance and the potential that current guidance will remain in place”…
Wednesday, Jul 7, 2021 - Posted by Advertising Department
[The following is a paid advertisement.]
Lawmakers are on the verge of passing legislation that would raise electric rates and turn Illinois into an exporter of jobs and importer of energy from neighboring states with higher carbon intensity. While masquerading as a clean energy bill, the proposal would shut down highly efficient, state-of-the-art power plants in Illinois in favor of energy produced in states that are far behind on meeting carbon reduction goals. Legislators must reject this plan and keep energy affordable, reliable and made in Illinois.
Coming online in 2012 during the Obama-Biden Administration and purpose-built with $1 billion of emissions controls, Prairie State Energy Campus stands apart from older, traditional coal plants. Employing more than 650 full-time workers and another 1,000 union contractors, Prairie State has also partnered with state and federal officials to study ways to further cut emissions. Illinois Electric Cooperatives and municipalities that own Prairie State are committed to keeping energy affordable and reliable while we invest in a cleaner energy future, but we cannot let policy get ahead of technology. Forcing a premature closure of Prairie State will have affordability and reliability impacts for Illinois electric cooperative and municipal consumers. Prairie State is the bridge to Illinois’ energy future.
Ogden & Fry,conducted a seven-question poll on Saturday June 26, 2021, with 554 respondents. Respondents were selected by random sampling of likely voters.The margin of error for this poll is +/-4.25% at the 95% confidence interval.
They did a test question of how respondents voted last year and were pretty close on the Biden vs. Trump result, 56.1-38.4 (57.5-40.5).
Illinois residents on Medicaid will have access to more services and some families with children in a state health insurance program may no longer have to pay premiums, thanks to a bill Gov. J.B. Pritzker signed into law Tuesday.
The new law puts into place an array of measures aimed at improving access to health care and affordability for those on Medicaid, which is a state and federally funded health insurance program for low-income people. More than 3 million people in Illinois were on Medicaid as of fiscal year 2020.
The law will give those on Medicaid access to marriage therapy and smoking cessation counseling, as well as require that every patient experiencing an opioid-related overdose or withdrawal be admitted to hospitals overnight when medically necessary. It increases the rates Medicaid will pay providers for certain services and will provide community-based support for veterans.
It will also require coverage of kidney transplant medications for undocumented people, among other things.
Among many provisions, the bill provides that people covered under Medicaid will continue to be eligible throughout the COVID-19 public health emergency and for up to 12 months after the emergency expires.
It also calls on the Department of Healthcare and Family Services to establish a program for implementation of certified community behavioral health clinics by Jan. 1, 2022, and to develop a “comprehensive behavioral health strategy” that is to be submitted to the governor and General Assembly by July 1, 2022.
Other provisions include recognizing veteran support specialists as mental health professionals under the state’s Medicaid plan; coverage of both individual and group tobacco cessation programs; requiring in-patient treatment for anyone experiencing an opioid overdose or withdrawal if it’s determined to be medically necessary; coverage of kidney transplant medications regardless of a patient’s U.S. residency status; and providing a 10 percent increase, through March 31, 2022, in reimbursement rates for supportive living facilities, to be paid for with federal funds from the American Rescue Plan Act.
House Majority Leader Greg Harris, a Chicago Democrat and member of the Medicaid working group, said this year’s bill is aimed at addressing many of the health care disparities that have existed in Illinois for years but which were exacerbated by the COVID-19 pandemic.
Stephanie Altman, with Shriver Center on Poverty Law, said the new law ensures more people impacted by the pandemic are covered, despite their income and employment status, with a provision that continues Medicaid eligibility up to a year after the COVID-19 emergency is lifted by the governor.
“This legislation will also make health care coverage for children under the All Kids or CHIP program guaranteed under Medicaid without monthly premiums and reduce the harmful turning on and off of health care coverage permanently in Illinois,” Altman said at the signing ceremony in Downers Grove Tuesday.
The Illinois Health and Hospital Association praised aspects of the new law, including allowing inpatient detox services more than once in 60 days and requiring inpatient coverage for opioid withdrawal treatment, if medically necessary.
“There are other notable provisions in the Medicaid Omnibus legislation including a provision to require reimbursement for vaccinations at 70% of the median regional maximum rate; inpatient reimbursement for long-acting injectable medication for mental health and substance use disorders; a pilot program to prevent ‘lock-out’ kids who are staying beyond medical necessity; and reimbursement for immunosuppressive drugs for kidney transplants covered for noncitizens who meet residency and income criteria,” the group said in a policy position last month.
The bill passed both chambers without any opposition.
President Joe Biden will make his first trip to the Chicago area as president Wednesday with a visit to northwest suburban Crystal Lake, where he will push a portion of his domestic agenda aimed at easing the financial burden on working- and middle-class families.
Biden is scheduled to stop at McHenry County College to make the case for creating free community college, extending the child tax credit and achieving universal pre-K education, all facets of his American Families Plan that so far has garnered little support from Republicans.
While Biden carried Crystal Lake in the 2020 election, then-President Donald Trump won McHenry County as a whole, with 50% of the votes to Biden’s 47%.
The stop is the latest by Biden to swing regions of the country to highlight his efforts to drive a strong recovery from the COVID-19 pandemic, which he has dubbed his Build Back Better agenda.
McHenry County is the only collar county Biden lost last year.
The president will discuss his American Families Plan, which includes checks of up to $300 for eligible families starting this month, and will be selling a bipartisan $973 billion deal on infrastructure.
“I’m excited about his coming, I know he wanted to go to one of the collar counties to visit suburban communities so I’m glad that he’ll do that,” Gov. J.B. Pritzker said Tuesday at an event in Downers Grove.
Assuming the infrastructure plan squeaks through Congress, it will dovetail with Illinois’ six-year capital plan passed in 2019, Pritzker said. […]
Republican state Sen. Craig Wilcox of McHenry is attending the event. “It certainly is momentous when a president comes to visit a part of the country that hasn’t seen that type of a visit before,” said Wilcox, a retired colonel in the Air Force. “For McHenry County, for Crystal Lake, for MCC, it’s a great honor to have any president come.”
I asked Psaki at the briefing, “Could you just explain a little bit more of how this trip to one of the redder parts of the bluest states in totality can advance the Biden policy and political agenda since there’s no swayable members of Congress? They’re all for you?”
Psaki said, “I would see this as less of a political trip” and that Biden “ran as someone who would represent not just Democrats, not just Republicans, not just independents, but all people.” […]
Mayor Lori Lightfoot and Gov. J.B. Pritzker will greet Biden when he lands Air Force One at O’Hare Airport before Biden takes a helicopter to McHenry College. Lightfoot will have a meeting with the president at the airport. Pritzker’s meeting may be in McHenry.
Biden and Lightfoot will huddle after Chicago suffered its most violent weekend of 2021, with 104 shot and 19 killed.
Just past the midpoint of 2021, the Chicago area is about to surpass the total number of expressway shootings for all of 2020.
As of Tuesday morning, the Illinois State Police had been called to 117 expressway shootings. That is more than twice the 51 shootings at this same time last year. And just short of the 128 for the entire year of 2020.
The menace of expressway shootings has been a vexing one for the Illinois State Police, who have previously noted to NBC 5 that the problem is especially severe here in comparison to other states.
And arrests are rare. Contrary to popular belief, expressway gunfire in Chicago is not typically spawned by road rage. Would-be victims often know their assailants and frequently refuse to cooperate with police.
* CBS 2 has been reporting on the super-slow rollout of expressway cams for quite a while. Here’s a story from early June…
But for years now, CBS 2 has tracked the delayed installation and upgrades of the cameras rolling on Illinois’ expressways. The 600 cameras up now still can’t record video.
Back in February, the Illinois Department of Transportation announced a $12.5 million investment of taxpayer dollars for cameras and license plate readers that will go up in 47 different locations – specifically meant to help investigate expressway shootings.
So, where is that technology now?
IDOT told us to ask Illinois State Police, who told us they’re still in the planning phase:
“In February of 2021, IDOT provided a $12.5 million grant to cover the costs of engineering, permitting, and labor associated with the purchase and installation of automated license plate readers (ALPR), controllers, servers/software, electrical power, and communications equipment required to install ALPR systems. The maintenance of the ALPR systems for up to two years is also included in this agreement. ALPR installations at 47 locations will include specialized cameras to read the license plate numbers of vehicles moving in traffic. The installations will also include a communication system to backhaul the video images to a central location where additional software is used to query and match license plates to existing license plate and vehicle databases. The purchase and installation of ALPR systems, software, and specialized cameras will aid in the investigation of Cook County expressway shootings. Currently, the Statement of Work is being finalized and a contract will follow to cover hardware and licensing for the next five years.”
* The law has been on the books since January of 2020. From a press release…
The Tamara Clayton Expressway Camera Act (Expressway Camera Act) was signed into law on July 12, 2019 and became effective on Jan. 1, 2020. On Feb. 4, 2019, Ms. Clayton was on her way to work when she was tragically shot and killed while driving on Interstate 57 near Cicero Avenue. ISP investigators responded and the investigation into her death remains open and ongoing. The Expressway Camera Act requires the ISP, IDOT, and Illinois State Toll Highway Authority (ISTHA) to conduct a program to increase the number of cameras along expressways in Cook County. The images from these cameras will not be used for petty offenses, such as speeding
One of the bill’s original sponsors, Rep. Thaddeus Jones, was so incensed by the delay that he called for the resignation of Illinois Transportation Secretary Omer Osman in January.
For the first time in nearly 16 months, Illinois has gone a full day without losing a resident to COVID-19.
The Illinois Department of Public Health reported no new COVID-19 fatalities Monday, which hadn’t happened previously since March 16, 2020 — a few days before Gov. J.B. Pritzker ordered residents to stay inside their homes as much as possible to stem the spread of the novel coronavirus.
It’s still possible one or more fatalities could eventually be added to the rare zero-total. Officials often adjust daily figures based on delayed reports from hospitals, especially after a holiday.
And the grief is far from over. The state reported 11 deaths over the weekend, and another 16 Tuesday.
But for now, the end of a miserable 476-day stretch with viral deaths is the latest sign of optimism for a state slowly emerging from the pandemic.
In the U.S., Illinois’ neighbor to the west, Missouri, is currently seeing the highest per-capita COVID infection rates in the nation, driven by that Delta variant. And Illinois’ three EMS regions that border Missouri are seeing an uptick in test positivity as well.
The Metro East’s 7-day average test positivity rate reached 5.1% as of June 3, the latest date made available by IDPH. The region’s test positivity rate has been climbing for two weeks, and has now reached positivity rates it hasn’t experienced since February. In contrast, the city of Chicago’s 7-day average COVID test positivity rate currently stands at 0.5%, after reaching a low of 0.3% early last week.
The Southern Illinois and West Central Illinois regions have also seen sharp rises in their COVID test positivity rates in the last week.
Counties with some of the lowest vaccination rates are in those three regions — especially Alexander County, which has lagged behind the rest of the state since vaccines began rolling out in December. Only 14.6% of Alexander County’s residents of all ages are fully vaccinated, compared with the entire state’s 48.9% vaccination rate.
You cannot on the one hand constantly harp about decades of Illinois credit rating downgrades and then blithely dismiss the first bit of good Illinois rating news since George Ryan was governor.
It’s OK to step away from the “Illinois is awful” screaming for a moment in the wake of last week’s upgrade of Illinois’ bond rating by Moody’s Investors Service. While not the end of our problems by any means, this signals yet another important fiscal turning point.
Illinois’ long credit ratings slide began in May of 2003, when both Moody’s and Fitch dinged the state’s grade. The last upgrade the state was granted before last week’s action was 21 years ago, in June of 2000. The last time Moody’s upgraded Illinois’ rating was June of 1998. House Speaker Chris Welch had just barely graduated law school at the time.
The state’s credit rating was downgraded a total of 24 times starting in 2003. Eight of those downgrades, a third, came during just 20 months of former Gov. Bruce Rauner’s fiscally catastrophic administration. To say he had an outsized impact would be putting it mildly.
The climb back began in 2017, when some Republicans joined Democrats to pass an income tax hike over Rauner’s veto. It was a turning point. The downgrades all but stopped.
Just remember those above two paragraphs when Rauner’s impasse cheerleaders try to dismiss this Moody’s upgrade. We’d be in a far worse spot right now had they and Rauner won.
And, yes, of course the federal government has played a huge role in Illinois’ fiscal rebound over the past year or so. It has repeatedly pumped up the economy, which unexpectedly boosted Illinois’ coffers to the point where it didn’t need to use federal funds to patch its budget holes or tap federal aid to pay back federal borrowing.
The state did so well that it ended the fiscal year, which concluded on June 30, with an expected $2 billion surplus. That surplus will allow it to pay off $2 billion in pandemic-related borrowing this fiscal year.
According to the Committee for a Responsible Federal Budget, Congress has committed $126 billion to Illinois, mostly to the private sector, with about a third of the total in loans.
The airline industry in Illinois alone will receive almost $16 billion, about twice what the state government received this spring from the American Rescue Plan Act.
But it’s not like Illinois got a special deal out of Uncle Sam. The aid has been distributed fairly evenly among the states. California ended its fiscal year with an $80 billion surplus.
Prudently, most of that $8.127 billion in federal money for Illinois’ government hasn’t been appropriated. $1 billion was spent on one-time capital appropriations and $1.8 billion was spent on mostly one-time grants or temporary aid allowed by the federal government.
That leaves more than $5.3 billion in reserve. The hope in many states is that the federal government will wipe out their huge unemployment insurance trust fund debts. If not, some of that $5.3 billion might be used here to cover some of Illinois’ hole, sparing employers a gigantic tax hike.
Senate Appropriations Committee Chair Elgie Sims has been telling me for weeks that he was confident the new state budget would result in a credit rating upgrade.
Sims is not only a budget expert (joining the Senate’s budget staff after graduating from college in 1993), but he’s also a bond lawyer. He knows what the industry is looking for, and he and many others did what they could to deliberately produce a well-received budget.
Illinois has been one step away from junk bond territory since the Rauner days, so, no matter what you think of the New York rating agencies, the urgent importance of upgrades cannot be overstated.
“We stayed the course, we did not do anything irresponsible with that federal money, we paid down all that debt,” which Sims said is exactly what the ratings agencies wanted to see.
Rating agencies also prefer sustainable state revenues. The new budget permanently closes $655 million in corporate tax “loopholes,” as the governor calls them. Gov. J.B. Pritzker noted last week the move helps permanently pare down the state’s still-large structural deficit, which passing the progressive income tax last year could’ve all but eliminated.
Obviously, this federal boost won’t last. And Moody’s warned that pension and other state obligations “could exert growing pressure as the impact of federal support dissipates, barring significant revenue increases or other fiscal changes.”
But now they have some time to tackle the problems.
Reaction has spanned the spectrum with market participants mostly saying it was deserved given the state’s fiscal progress and its COVID-19 pandemic recovery. Some said the upgrade was expected, a reason for the state’s narrowing spreads over the past few months. But they are quick to underline that’s the near-term view and chronic pension strains, past decisions that favored one-shots, an ongoing structural imbalance and out-migration weigh heavily on the state’s fiscal foundation.
“I think it’s important to bear in the mind Illinois is still the lowest-rated state” and “no one has waived a wand” and erased the state’s high liabilities, governances challenges and financial operating difficulties, Moody’s lead analyst Ted Hampton said in an interview last week. “But I think what’s going on now really represents the first very strong positive movement — positive enough to warrant an upgrade. It is to some extent a turning of the tide but the state still has a long way to go to look like the bulk of other states.” […]
Illinois should see some direct benefit when it next enters the market by drawing a broader base of buyers as some can’t purchase bonds at the Baa3 level and could help some hold on to the bonds. “To the extent that some buyers have an incrementally higher floor of credit quality” the state could draw more interest, Mousseau said.
“I think that the Moody’s upgrade will help the state GO and other related credits get better pricing when they next sell bonds,” said John Ceffalio, senior municipal research analyst at CreditSights Inc. “If Illinois continues on this credit path, which I expect, then it will lead to further positive ratings actions during fiscal 2022.”
