* From former acting legislative inspector general Julie Porter back in April…
My term ended Feb. 28, 2019, and this month — as required by law — the new LIG and the commission presented their quarterly reports to the General Assembly. The quarterly reports are hard to read and do not convey much information. But a careful look reveals that near the end of my term, I issued a founded summary report — a report where I found that a legislator engaged in wrongdoing — that was not published. I requested publication, and the commission refused.
Also buried in the numbers is a second founded summary report that I requested to be published; the new LIG chose to close the case.
Accusations flew among state Republicans Tuesday after a suburban lawmaker called for an investigation of Illinois House Republican Leader Jim Durkin’s organization over a “buried” misconduct report.
A representative for Durkin called the comments off-base.
Leader Jim Durkin has had an opportunity to be a statesman and take the bold step of rooting out corruption and wrongdoing in his own caucus. It is easy to be for ethics when the other party is under fire - it is not so easy when it potentially involves your own party. Leader Durkin is being tested and, so far, he is miserably failing that test. I’m willing to stand up against misconduct on both sides of the aisle. […]
In Springfield, there are insiders and then there are real insiders. Legislative leaders, by virtue of their position as leaders, are privy to information that most rank and file members simply do not have. I believe that Leader Jim Durkin is aware of the founded misconduct that Porter is referring to and that it likely involves a Republican House member.
Even if the buried report is about a Democrat, Durkin very likely has access to the information. Two members of Durkin’s leadership team are on the Legislative Ethics Commission, with one serving as the chairman of the commission. It is highly doubtful that Leader Durkin is truly in the dark about this situation.
* Response from House Republican spokesperson Eleni Demertzis…
The House Republicans have addressed each and every allegation of abuse and misconduct swiftly and publicly. We will continue to ensure a safe workplace for all staff and employees. This is just more ramblings from someone who hasn’t even taken the time to show up for caucus in the last 5 years.
McSweeney said Durkin likely is aware of who the legislator is and that “Leader Durkin is being tested and, so far, he is miserably failing that test.”
Demertzis countered that “the [Legislative Ethics Commission] is an independent body that the legislative leaders have no involvement with. That’s why Rep McSweeney’s statements are once again not based in fact,” she said.
…Adding… Grant usually lashes out at Democrats on the Twitter machine…
Nothing is buried Rep McSweeney. House Republicans moved swiftly on issues of unethical behavior. Auditor General Mautino, Sen T Cullerton and former Clerk of the House & Madigan capo Tim Mapes all under investigation yet you are silent where actual bad behavior exists? https://t.co/coNacWo3tj
Rauner’s cabinet is 79 percent white, with only four blacks, two Hispanics, and two Asians among his 38 picks to lead state government agencies.
And reports obtained by WBEZ show his nearly 1,200 appointees to boards, commissions, and task forces in the past three years were 73 percent white, 10 percent black, 6 percent Hispanic, and 3 percent Asian. No race was given for 7 percent of the people Rauner chose. […]
The WBEZ investigation also found men far outnumber women in Rauner’s cabinet and among his board appointments.
When pressed about whether his own administration would be more diverse than Rauner’s, Democratic gubernatorial challenger JB Pritzker said he would do better than the incumbent, by appointing the most diverse state government ever. But asked if he could promise that his high-level appointments would reflect the state’s overall population, Pritzker would only say it would be his “goal” to have a cabinet and boards that mirror the diversity of Illinois.
As Gov. JB Pritzker approaches the nine-month mark in office, he has appointed 225 people to key posts within his administration and to state boards and commissions — a diverse group that’s more than 41 percent female and 44 percent people of color. […]
Illinois is one of the nation’s most diverse states. According to the latest stats available from the U.S. Census Bureau, the people of Illinois were 61.3 percent white, 17.3 percent Hispanic, 14.6 percent black and 5.7 percent Asian. […]
The Daily Line is tracking Pritzker’s appointments, as Rauner’s administration was slow to cooperate with a state law that requires the governor release demographic data about appointees to boards, commissions, and task forces on an annual basis. A WBEZ investigation last year found that Rauner’s appointees were overwhelmingly white and male. […]
Pritzker has mostly met those diversity goals, with 94 females named to director posts for state agencies and to state boards and commissions, and 98 people of color announced since January. Pritzker’s hires in the governor’s office are also a diverse group, though The Daily Line’s analysis does not extend to his direct reports.
He just announced the appointment of a white male today to be the Assistant Director of the Illinois Department of Labor.
After telling me on Sunday that he’s “definitely looking at” running for Congress, @SenChapinRose tells me he has decided not to run for IL-15 in 2020. “It is absolutely the wrong time for my family,” he says. He has three kids between grade school and high school. https://t.co/G519CrunJr
Righter says Senator @JasonPlummerUSA is a “young, bright guy” who “has to be drowning in frustration in Springfield right now.” He says @ErikaHarold “would have made a great Attorney General.” Righter says both would be “an outstanding nominee for our party.”
State Rep. Michael Marron (R-Fithian) is “definitely interested” in running to replace @RepShimkus in Congress, per a campaign aide. He is set to make an announcement about his 2020 plans on Tuesday in Danville. https://t.co/qctVEPbiyb
* Marron announced an exploratory committee today…
At the Vermilion County Administration Building in front of family, friends and supporters, State Representative Mike Marron (R-Fithian) announced the creation of an exploratory committee to seek the 15th Congressional seat currently held by John Shimkus. Shimkus has recently announced that he will not be seeking reelection.
“For over 20 years, Congressman John Shimkus has represented parts of Southern Illinois in Congress,” said Marron. “When John decided not to run again, I knew that it would be a huge loss for Southern Illinois, and our country. Anyone trying to replace him will have incredibly large shoes to fill. He has a legacy of rolling up his sleeves and getting to work for Southern Illinois in the good times and fighting the liberal Obama and Pelosi policies in the bad times. I want to continue that legacy that reflects Southern Illinois values.”
Marron highlighted his experience as Vermilion County Board Chairman and State Representative at the press conference. Mike has had success in getting a strong consensus on a partisan county board. During his tenure, he was successful in working through differences the board members had with other board members and with the opposition party.
Mike took this leadership style to Springfield as State Representative, and as a freshman representative, he was able to work within a super-minority caucus to pass legislation that helped the citizens of the 104th Legislative District. Legislation such as helping protect the public health of his constituents by creating the regulatory framework that prevents coal ash pollution like what occurred at the Vermilion Power Station and protecting taxpayers from fronting the bill.
“Now, everyone knows that Springfield politics, especially from the past year, don’t reflect the values of us downstate, rural Illinoisans,” said Marron. “I fought against Springfield Democrats implementing the largest minimum wage increase in this state’s history, the implementation of a massive tax increase being billed as a “fair and progressive” tax, and the most expansive abortion law in the country. Unfortunately, due to Chicago’s influence, all of these things passed despite my opposition.
“A true leader knows when to get to work and when to fight for what’s right. Politicians and political insiders in Washington DC fight when they need to get to work and make compromises when they need to fight. I am here today to announce that I am opening an exploratory committee to run as the Congressman in the 15th District.”
Chairing the exploratory committee is Vermilion County Board Chairman Larry Baughn. Other members of the committee include Pat O’Shaughnessy of Danville, Stan Harper, Champaign County Board Member from St. Joseph and Bill Raben, a farmer from Ridgeway. More members will be invited in the coming weeks.
It’s been more than five years since the Sun-Times disabled its online reader comments, claiming to be developing a new system that would be introduced “in the weeks to come.” Now that may be happening at last.
“I think we’re getting to the point where hopefully soon we can restore comments in sort of a targeted way on the right stories,” editor-in-chief Chris Fusco said on Ben Joravsky’s podcast Saturday. “Comments are a tool that, if we use them wisely, I think they can be back on a targeted basis and help us build more engagement.”
* The Question: Your comment section advice for Chris Fusco?
Mayor Lori Lightfoot today declared “unsustainable” the 3 percent annual compound pension COLA many city workers and retirees have been promised—and hinted she would not object if further conversations occurred about amending the pension clause in the Illinois Constitution to allow change.
(A) few comments about the annual annuity increases, also referred to as the COLA.
First, police and fire do NOT have a compounded 3% COLA–these two funds account for ~51% of Chicago’s pension liabilities. Only municipal employees and laborers have had 3% COLA.
Second, that 3% COLA was only applicable for people hired before Jan 1, 2011….everyone else is now in Tier 2. Tier 2 COLA isn’t compounded, and is designed to basically guarantee retirement income doesn’t keep pace w/inflation. […]
so let’s now turn to the history of the 3%, compounded COLA (remember only applicable to 2 of the 4 funds). It was set in 1998. What did things look like at the time? well both labor and municipal funds were pretty well funded [in 2000 municipal fund was about 95% funded, labor was over 100%] […]
At the time, and until v recently, the city’s contributions were a multiplier of employee contributions. for every $1 municipal employee put in, city put in $1.25. This was already bad because it meant city’s contributions weren’t tied to cost of benefits or unfunded liabilities
To me, the 3% compounded COLA isn’t the root of the problem, it’s that lawmakers chose to enhance benefits while 𝓭𝓮𝓬𝓻𝓮𝓪𝓼𝓲𝓷𝓰 the city’s contributions and have those contributions be totally de-linked from the pension funds’ finances…and not changing for years.
the problem snowballed and snowballed, compounded by the recession.
changing COLA would mean changing benefits for Tier 1 members of 2 systems…there has been several attempts at cutting benefits, each one struck down by the state supreme court.
another thing to add is that Public Act 100-23 created a third benefit tier (Tier 3) for municipal employees and labor. Tier 3 COLA is same as Tier 2. tier 2 and 3 comparison for municipal is here meabf.org/legislature
John Tillman formally files "APPEAL TO THE ILLINOIS FOURTH DISTRICT APPELLATE COURT FROM THE CIRCUIT COURT OF SANGAMON COUNTY" on the GO lawsuit ruling from judge last week denying petition to move forward with taxpayer action.
Far more important, however, Davis seems unaware of the bedrock principle in American law – that courts have the power and duty to invalidate laws that conflict with the federal constitution or their state’s constitution. It’s not a court’s place to “substitute its judgement” for the legislature’s, he says.
Marbury vs Madison established in 1803 that courts should invalidate laws that violate the constitution. That’s a central tenet of separation of powers. Since then, federal and state courts have invalidated hundreds of statutes and administrative actions as unconstitutional. Illinois and all other states routinely do the same, testing their statutes against their state constitutions. Judge Davis, however, might as well have written, “Politicians decided to do this so it must be permitted.”
Courts assume laws are constitutional and proceed from there. Tillman claimed the Legislature skirted the “specific purposes” requirement, when it clearly did not. This is a taxpayer lawsuit, so he had some serious legal hurdles to overcome and the judge ruled his case did not overcome those hurdles.
Judge Davis ignored, among other things, the most interesting aspect of the case, which warrants a full, reasoned opinion. That’s the relevance of the balanced budget requirement in our state constitution, and it’s especially pertinent to the 2017 bonds. They were used simply to pay down part of Illinois’ huge bill backlog.
That backlog obviously results from budgets that weren’t balanced.
Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.
There are several loopholes here, among them: 1) It doesn’t say “expenditures,” it says “appropriations.” Things can happen after a budget is enacted; 2) There is no clear and specific mandatory requirement for a hard revenue estimate. Should they do that? Yep. But courts have yet to force their hands.
When he introduced his budget in February, Gov. Mike Dunleavy did not say he wanted to start a conversation.
“I promised to fix our budget and I will keep my promise to Alaskans,” he said. “We will fix the budget and we will fix it this year.”
This was the occasion at which temporary budget director Donna Arduin introduced herself to Alaska by frequently talking about “our” fiscal problems and declaring, “The cost to transport a vehicle on a state highway is about 2 cents per mile, where it’s about $4.58 per mile on a ferry.”
“We’re here to solve our problems, not to ask Alaskans to do it for us,” she said, touching on the plan to gut the University of Alaska, K-12 schools and Medicaid, while sending 500 prisoners out of state and getting rid of the ferry system.
The governor made those cuts, in part, to fulfill a campaign promise to pay a full Permanent Fund dividend using the traditional formula, which this year amounts to about $3,000.
“The governor’s approach is tough,” said Matt Shuckerow, his press secretary. “But it’s necessary.”
Others disagree — vehemently — and some economists estimate Dunleavy’s cuts would lead to 4,000 jobs lost in the short term, plunging Alaska into recession.
“This is a dismantling of our state: economically, emotionally, morally,” said Kodiak Rep. Louise Stutes, a Republican who represents parts of Southcentral Alaska, including Cordova. “It’s unreal. It’s just stinking unreal.”
The University of Alaska could lay off more than 1,000 and cut dozens of programs, thanks to a dramatic slash in money it gets from the state – a 41% cut from a line-item veto by Alaska Gov. Mike Dunleavy.
University officials say the $130 million cut could prove disastrous for Alaska’s future, endangering local economies, school employees and rural programs for Alaska Native students. They have pleaded with the Legislature to override the veto but say they have little hope that will happen.
A state program that costs nothing to administer was restored this week to keep Alaska-grown produce in groceries, but the state’s nascent hemp program remains in limbo.
* From a post I did when Governor-elect Bruce Rauner announced he’d hired Arduin…
“She has a complete tin ear with respect to the political ramifications of particular cuts, ” University of California-Berkeley political scientist Bruce Cain told the Los Angeles Times in a story published in 2004.
“Because she’s the best in America,” Rauner said when asked by a reporter how he can justify that [$30,000 per month Arduin contract] expense. “She’s a brilliant lady who’s done financial turnarounds at a number of states. She’s the smartest state government budget person in America that I was able to find and she’s well worth it, because she’s going to save us billions.”
* The Department of Children and Family Services. It would also eliminate services for youth ages 18 to 21.
* Community care for senior citizens.
* Mental health services.
* Addiction treatment.
* Dental Care for adults on Medicaid.
* Support for children on ventilators.
Organizers of the effort to remove Gov. Mike Dunleavy from office announced Thursday that one week after launching, they had gathered more than 18,000 signatures and were more than two-thirds toward completing a first-round signature drive.
The campaign to recall Gov. Mike Dunleavy has gathered 36,731 signatures as of Thursday, Aug. 22. […]
The campaign’s website says the petition phase will continue until the campaign collects 71,252 signatures, which is equal to 25% of the voter turnout in the last general election.
The state agency in charge of monitoring campaign finance laws in Alaska says backers of a movement to recall Gov. Mike Dunleavy from office can accept unlimited campaign contributions and do not have to immediately disclose the source of that money. The same rules apply to any organization formed to oppose the recall. […]
“You can get (money) from labor organizations, businesses, nonprofits, folks out of state — the only limitation is foreign nationals. But that’s the only limitation,” Lucas said.
Remember when candidate Mike Dunleavy promised every man, woman, and child in Alaska checks in excess of $6,000 if he was elected governor?
Recently, Governor Mike Dunleavy took the road less travelled and issued a video statement, avoiding the press altogether, to announce that he has mostly accepted the Legislature’s budget, complete with a $1,600 PFD.
The University of Illinois Flash Index fell to 105.1, its lowest level so far this year. The dip in August comes after an uptick in July, when the index was at 105.4.
Two of the three components of the Flash Index, individual income and corporate tax receipts, were down from the same month last year after adjusting for inflation and rate changes. The third component, sales tax receipts, increased.
University of Illinois economist J. Fred Giertz, who compiles the monthly index for the Institute of Government and Public Affairs, said that despite conjecture about a possible recession in the national economy, this decrease in the Flash Index does not signal a recession. Generally, a recession is characterized by the GDP declining for two quarters.
“The Illinois economy appears to be slowing slightly from its recent moderate pace. This, however, is far from an indication of a recession,” Giertz said. “The national and Illinois economies are still growing, albeit at a slower rate. Remember that any Index reading above 100 denotes growth.”
The unemployment rate in Illinois fell slightly to 4.2 percent, tied for the lowest in recent decades. This suggests continued strength, although unemployment is a lagging indicator that tends to increase only after the overall economy slows.
The Flash Index is a weighted average of Illinois growth rates in corporate earnings, consumer spending and personal income as estimated from receipts for corporate income, personal income and retail sales taxes. These are adjusted for inflation before growth rates are calculated. The growth rate for each component is then calculated for the 12-month period using data through August 31, 2019. See the full Flash Index archive.
The Epilepsy Foundation of North Central Illinois was supposed to get $500,000 from the state this year, with the DeKalb office’s share being $79,000, Garcia-Martinez said. This year, however, there was no money from the state.
The DeKalb office rent costs $950 a month. Other monthly expenses include $500 a month for transportation, which Garcia-Martinez said is imperative to DeKalb County since many clients face transportation limitations.
Johnson said the office has applied for a community-needs grant through the DeKalb County Community Foundation but has not yet heard back.
Garcia-Martinez said the only difference in the application this year for state funds was a change in the number of clients. She said the DeKalb office serves 81 clients with epilepsy, with more than 400 clients who receive additional support services.
For more than a decade, the Child Advocacy Center of McHenry County collected $13 for every traffic, misdemeanor and felony conviction — a deal negotiated years ago among agency and county leaders, Executive Director Misty Marinier said. The funding has been crucial for the nonprofit’s operations, which include conducting forensic interviews and offering free services for victims of child sexual and physical abuse, among other violent crimes, she said.
However, a recent statewide overhaul of the system set court fees collected by all CACs at $10 per offense, and funding from traffic cases has been eliminated.
The impact on the McHenry County center? A projected loss of at least $120,000 a year, or 40% of its $300,000 budget. […]
A sunset clause was included in House Bill 4594 when it passed about a year ago, forcing lawmakers to revisit the legislation by the end of 2020. When the General Assembly reconvenes in January — six months after the law went into effect — it is expected to review the data that has been collected so far and “adjust the numbers accordingly,” said Andersson, the bill’s chief sponsor. “We didn’t pretend like we knew everything.”
* Meanwhile, from a union press release…
Just days before the new semester UIS Administration announced deep cuts to programs and budgets that support teaching and learning at UIS. Despite receiving a 5% increase over last year’s appropriation from the state, UIS administrators are cutting as much as 10% from their operating budgets.
Illinois Department of Natural Resources Director Colleen Callahan says authority to hire more people has helped ease morale at the agency.
DNR has been working to fill nearly 100 positions this year, and the fiscal year 2020 budget, which began July 1, allows for a full-time-equivalent headcount of 1,250. There have been some retirements and some additions, and as of last week, there were about 1,192 positions filled.
“It means that we can actually begin to do our jobs more effectively and impactfully again,” Callahan said. “Staff would say that for a long period of time, they felt like they were in survival mode. Now, they feel like they survived. And now that we can hire again, it says help is on the way, and it’s a big morale booster, for sure.”
* Relief at Last - By Chief Justice Lloyd A. Karmeier: Fortunately, there has been a dramatic change. This year – for the first time – I was able to report to my colleagues at the Conference of Chief Justices that Illinois could not only boast of a functional court, but also of a government that was finally able to provide the judicial branch with a timely and workable budget. For Fiscal Year 2020, our appropriation from the General Revenue Fund was increased to $405,321,200, a figure that is $60.5 million higher than each of the previous five years.
* Years ago, I read an article about espionage advice given to our World War II moles by the Office of Strategic Services (the predecessor to the CIA). One suggested tactic for American sympathizers was to create large corporate study committees, which would slow down or even halt progress on whatever it was they were studying. Whenever Speaker Madigan brings a large number of his members and staff with him to a meeting in the governor’s office, I remember that article and chuckle.
As voters start to consider whether to replace Illinois’ flat income tax with a progressive-rate model, lawmakers are starting their work to overhaul the state’s property tax system too.
The Property Tax Relief Task Force recently begin its work, setting up seven subcommittees that will tackle thorny topics like school and economic disparities, school funding, and tax-increment financing (TIF) districts. State Rep. Dan Brady, R-Bloomington, is one of over 80 task force members.
There are actually 88 members of that task force. It has eight (8) co-chairs. And seven subcommittees? Oy.
The first organizational meeting was a cluster of enormous proportions. And members are not exactly getting along very well since then.
* From an August 29 press release…
State Representative Deanne M. Mazzochi (R-Elmhurst) today called upon her fellow legislators to study and end systemic conflicts of interest in the Illinois property tax system. These conflicts generate disproportionate outcomes; increase costs; and often benefit politically connected insiders. All but a few Democrats voted no, and rejected her request. Those voting “no” included members who profit from the property tax system; another was recently subject to a federal indictment.
After the vote, Rep. Mazzochi released the following statement:
“Currently this task force has 90 members. It is absurd to suggest we can’t have a subcommittee to target conflicts of interest that both sides of the aisle know exist. Today’s vote demonstrates that members of the majority are insincere about real reform. If this task force wants to achieve meaningful reform, we must address the problem of high-level political insiders who game the system, whether at the state, county or local level. Illinois residents already pay among the highest property taxes in the nation. They don’t need an added corruption tax. The antics on display at the meeting are the exact reason why we do not have property tax relief today. Whose interests are they really looking out for?”
Illinois residents attending the meeting also expressed concerns during public comment about public corruption. James Di Naso of Charleston explained, “The first issue that needs to be addressed is the corruption and conflict of interest at the top of Illinois government. Only then can the property tax issue be honestly dealt within this state.”
Mazzochi’s motion would have charged the task force with specifically looking at existing areas of conflict of interest, and making reform recommendations to improve the integrity of the property tax process. Once Mazzochi’s motion was made and seconded, additional task force members not present for the first 45 minutes of the meeting were added to the roll and allowed to vote. When votes were tallied, Rep. Mazzochi’s motion failed 40-23, with two additional members voting “present.”
Notwithstanding the result of the vote, Mazzochi vowed that she would continue to advocate for added transparency and integrity within the entire property tax system.
DuPage County legislators voting yes in support of Mazzochi’s motion included Grant Wehrli, Amy Grant; Anne Stava-Murray, as well as Mazzochi. Voting no were Suzy Glowiak; Tom Cullerton; Tara Costa Howard; Karina Villa; and Diane Pappas. Deb Conroy, a member of the task force, was absent.
Close to 200 Naperville residents opposed to the possibility of the city eventually allowing the sale of recreational marijuana held a rally downtown Saturday urging city officials to “opt out.”
“Naperville has built its reputation over the years as a family friendly community,” said Jennifer Bruzan Taylor, one of the rally’s organizers. “There is nothing family friendly about marijuana.” […]
“Fear is a drug that Americans are imbibing at a heavy pace,” [Dan Allen] said. “I’ve experienced the benefits of marijuana and there’s been a lot of studies showing the use helps get people off other heavier, more dangerous drugs like opioids.” […]
The rally was held in downtown’s Central Park a few blocks away from the city’s nightclub district. Naperville police often have to add extra patrols on the weekends in an effort to curb misbehavior by bar patrons. In the past, police ran sting operations intended to catch violators urinating in the city’s parking garages as well.
* Over the weekend, I decided to re-read Gay Talese’s 1966 “Frank Sinatra Has a Cold” essay for Esquire Magazine which sparked a new journalistic format. I re-read it every few years because it’s so phenomenal. As I was doing so, I came upon this passage…
Then after the last show at The Sands, the Sinatra crowd, which now numbered about twenty—and included Jilly, who had flown in from New York; Jimmy Cannon, Sinatra’s favorite sports columnist; Harold Gibbons, a Teamster official expected to take over if Hoffa goes to jail—all got into a line of cars and headed for another club. It was three o’clock. The night was young.
For some reason, Harold Gibbons’ name stood out to me, so I Googled him.
For a time, Gibbons was widely considered to be the heir apparent to Jimmy Hoffa. But Gibbons’ work and political stances landed him on the master list of Nixon political opponents. Nixon’s Chief Counsel, Charles Colson, directed White House Counsel John Dean to initiate tax audits on Gibbons, but Dean did not follow through. Gibbons’ opposition to the Vietnam War led to Hoffa moving to marginalize him. Hoffa supported the war, while Gibbons had been a founder of Labor for Peace, and had visited Hanoi. Another source of friction was Bobby Kennedy, who had hounded Hoffa, and whom Gibbons had befriended. While Gibbons remained head of the Teamsters in St. Louis, he was maneuvered out of posts in which he could influence policy. […]
Gibbons’ papers are in the archives of Southern Illinois University-Edwardsville which he was instrumental in founding, because Illinois union members who wished to pursue higher education had to make exhausting commutes to attend university in Carbondale.
*** UPDATE *** From Jeff Manuel at SIUE’s Department of Historical Studies…
Hi Rich,
I just wanted to share a brief comment in response to your post about Harold Gibbons and SIUE. If you (or any readers) are interested in digging deeper into Harold Gibbons, labor historian Robert Bussel wrote an excellent biography of Gibbons and Ernest Calloway a few years ago using the Gibbons papers in the SIUE archive. Calloway’s attempt, which ultimately failed, to unite the labor movement and the civil rights movement in the middle of the last century is a fantastic story that deserves more attention.
After decades of the state putting off things like fixing our roads and bridges, we started to see some very real progress this year.
Huge bipartisan legislative majorities approved a $45 billion infrastructure program.
In the process, however, the state’s motor-fuel tax went from 19 cents a gallon to 38 cents a gallon. My Facebook feed was jammed with exclamation points for days on end. Well, just wait until those angry Illinoisans find out their license plate fees are also going up next year, or they realize there’s a new tax imposed when they trade in their cars.
The idea back in May was to pass all these tax hikes and then go quiet. The governor would then focus attention on announcing new projects and grants, and eventually the furor would all die down.
But that hasn’t quite happened, partly because Chicago’s budget woes have kept taxation in the foreground.
New Mayor Lori Lightfoot clumsily floated a bunch of nonstarter ideas like taxing retirement income to help her bail out the fiscally troubled city. Taxing retirement income at the state level polls about as well as meningitis. Gov. J.B. Pritzker defeated two Democratic primary opponents partly by hammering them for opening the door just a tiny crack to the possibility of such a tax.
But because Chicago’s mayor was interested, it was big news everywhere. My Facebook feed went nuts again, and the governor was forced to publicly shoot it down.
The statement issued by Gov. J.B. Pritzker’s office last Thursday night had some good advice for Chicago Mayor Lori Lightfoot, who gave what was billed as a “State of the City” address earlier in the evening.
Lightfoot had outlined the challenges facing the city, including an $838 million budget deficit and her need for Illinois government’s help in changing some state laws to allow her to raise more tax revenues.
The Pritzker administration’s statement read in part: “In the weeks ahead, as Chicago pursues assistance from the legislature, it will be important for the mayor to reach out to leaders and lawmakers across the state and across the aisle to build a coalition for her ideas.”
The rookie mayor has had a habit of surprising Springfield with proposals offered up by unidentified sources to members of the news media, rather than working through established channels. That tendency has grated on some Statehouse nerves, partly because the mayor too often makes proposals that are dead on arrival and which put her natural allies on the defensive.
Some of this is probably due to her being so new. Some of it is likely because she ran for mayor as an outsider. She strongly endorsed Chris Kennedy for governor, ignoring her party’s preference for Pritzker. She then challenged a sitting mayor (Rahm Emanuel) and then when he dropped out, she stayed in the race and overwhelmingly defeated the Democrats’ powerful Cook County party chair (Toni Preckwinkle).
She believes voters gave her a mandate in April, and reporters and pundits of all stripes have mainly backed up her assertion.
Not often mentioned is that, while Lightfoot took 74% in the April runoff, Pritzker won the city with 81% last November. Also, 723,000 Chicagoans voted for the governor compared to the 396,000 who voted for the mayor.
Pritzker’s Chicago percentage and vote totals were both significantly higher than any Democratic gubernatorial nominee going back to 2002, when the party reinvigorated itself statewide after decades in the wilderness.
But, whatever. Everybody just needs to read the room and get along. The mayor should use the winning formula from the spring legislative session. Get the Democratic leaders on board, convince the unions to support it and then work rank and file members to keep the leaders honest while trying to pick up whatever Republican support she can find.
Lightfoot has a strong personal relationship with the House Republican Leader, and that can surely be helpful. She has to focus on three numbers: 60, 30 and 1 (majorities in the House and Senate and the governor’s signature) . Otherwise, it’s all just rhetoric.
”Our fates are intertwined,” Lightfoot said Thursday about the common struggles that towns and cities are facing throughout Illinois. “That is why I intend to continue working with Gov. Pritzker, the legislative leaders, and other state lawmakers, regardless of party or geography.”
It’s a good plan. It’s a plan that could’ve been devised by Michael Bauer, who chaired Lightfoot’s campaign and was her strongest link to the established political world. Michael passed away last night. “Sparkly, effervescent” is how his friend Rep. Sara Feigenholtz, D-Chicago, accurately described him in her grief.
As for me, I always sought him out when he came to Springfield and I always left our conversations with a smile on my face. He was a gem of a human being and, according to his friend Dave Lundy, he died while watching the mayor’s speech.
Michael truly wanted his friend to succeed. Heck, we all do. Even all the ultra-conservative Eastern Bloc members lined up to pose for photographs with the mayor when she came to town — and they want to kick the city out of Illinois. The rest of the governor’s statement included phrases like “Illinois succeeds when its cities succeed,” and he pledged to work with everyone involved to make that happen.
Build on that good will, mayor. It won’t last forever.
And whatever you do, stop not-so-subtly threatening to tank the governor’s progressive income tax if you don’t get your way, as you did on Friday when you spoke with the Sun-Times and said something your office had to retract (“We can’t keep taxing the hell out of all of our people who make substantial income. That’s not right. That’s not fair. It’s not gonna work.”).
Pritzker can spend whatever it takes to push his constitutional amendment past the finish line. He’s not the hostage, mayor. You are.
At an all-staff meeting today, News-Gazette Media CEO John Reed announced to employees that an agreement has been signed to sell substantially all of its assets to the family-owned Champaign Multimedia Group LLC, an affiliate company of Community Media Group. The sale is expected to close in early November.
CMG, headquartered in downstate West Frankfort, owns and operates community newspapers with websites in several Midwestern states, including Illinois, Indiana and Iowa, as well as newspapers in Michigan, Pennsylvania and New York.
The acquisition of News-Gazette Media will include three radio stations: WDWS, WHMS and WKIO, serving the Champaign-Urbana, Danville and East Central Illinois areas, Reed said. The acquisition will also include weekly newspapers, free distribution shoppers and websites serving Mahomet, Rantoul, Ford County, Piatt County and Vermilion County. […]
As part of the sale process, News-Gazette Media has filed voluntary petitions for relief under Chapter 11 of the U.S. bankruptcy code. Additionally, and in accordance with the state and federal regulations under the Worker Adjustment and Retraining Notice Act (WARN), employees were provided with formal notice of a potential layoff planned to occur in the 14-day period beginning on Oct. 31.
However, CMG has indicated that it is developing plans for the rehire of numerous News-Gazette Media employees following the sale to Champaign Multimedia Group.
Shaw Media has agreed to acquire the NewsTribune and the Illinois and Indiana AgriNews weekly publications from Catherine Miller and Miller Group Media, company leaders announced Monday.
The sale is expected to close Sunday. Terms were not disclosed.
The acquisition of the publications adds to Crystal Lake-based Shaw’s network of daily and weekly newspapers and specialty publications, which cover 15 counties across northern Illinois, as well as part of Iowa.
The company’s daily newspaper holdings include LaSalle County’s other five-day-a-week newspaper, The Times of Ottawa, as well as the Northwest Herald in Crystal Lake, The Herald-News in Joliet, the Daily Chronicle in DeKalb, the Telegraph in Dixon and the Daily Gazette in Sterling.
Illinois GOP Rep. John Shimkus announced Friday on the Mark Reardon Show that he will not run for reelection in 2020.
In his 12th term right now, Shimkus was reelected in 2018 with more than 70% of the vote. He has represented Illinois’ 15th Congressional District since 2013, before that he was represented Illinois’ 19th Congressional District, since 2003.
Sen. Jason Plummer has wanted that seat for a very long time.
…Adding… Keep an eye on retiring Sen. Dale Righter. Yes, he voted for the 2017 income tax hike, but he voted against the tax hikes to fund the capital bill this year. Why would he do that if he wasn’t running again and needed help for his district? Food for thought.
As Illinois candidates begin to circulate petitions next week, now is the time for me to announce that I will not be seeking re-election.
It has been the honor of my lifetime to be asked by the people of Illinois to represent them in our nation’s capitol. Each day I have tried to do this as best as I possibly could, and my success lies squarely at the feet of my incredible staff in Illinois and Washington, DC.
I will leave the political field knowing that I have served honorably and, with the help of many, accomplished a lot for my constituents, our state, and our nation.
Serving in Congress has been a blessing, but it has also been a sacrifice for my wife Karen, and our boys. Now young men, David, Joshua and Daniel continue to make me proud. I regret the times I have been away from the four of them and thank them for their constant love and support.
My family and I thank you for allowing us the honor to serve. Our dedication to our country, our state, our church, and our community will not waiver as we embark on the next chapter of life. God bless you, and God bless America.
Businessman Willie Wilson, who finished fourth in this year’s historically crowded race for Chicago mayor, said Friday he’s planning to run for the U.S. Senate next year.
Wilson, who’s been known for tapping into his personal wealth to help people pay their property taxes, said he’s going to run as an independent in hopes of unseating Illinois’ incumbent Democratic U.S. Sen. Dick Durbin in 2020.
“I’m still a Democrat and when I ran for president I still supported the Democratic Party, but this is the way to go,” Wilson told The Spin.
The 71-year-old Wilson has run for high-profile political offices before without success. He ran for Chicago mayor in 2015 and 2019, and got on the ballot in a handful of states when he ran for president in 2016.
Durbin received 53.5 percent of the vote in 2014.
…Adding… Press release…
Wilson will officially launch his campaign for United States Senator for the people of Illinois. Wilson is committed to making things better for ALL Illinoisans, but in particular minorities who feel lost and forgotten. “I am sick and I am tired of the same ol’ politicians like Senator Dick Durbin taking advantage of minorities, having not been fair and his record reflecting that… the same ol’ guard propping themselves up on the backs of minorities and selling them down the river. I MUST stand up for those who feel they do not matter or do not have a voice… for those who can’t seem to get a fair shake. His record shows he has taken the minority vote for granted and hasn’t put anything back of significance in the 20+ years he’s been a U.S. Senator. He hasn’t done nearly enough for prison reform and economic development in minority communities, but Durbin has supported sanctuary cities. Why hasn’t he given the same attention to the areas of prison reform and economic development as well as to Reparations for those of African American Descendants of Slaves? He has totally been unfair. The time has come that we all have equal access and be treated fairly, once and for all. And that is why I am running for United States Senator – to represent ALL people regardless of race, creed or color,” says a committed Willie Wilson.
* Two of my brothers on Labor Day, 1971 at my family’s rural Iroquois County house…
We weren’t farmers, but my mom grew up on a farm and my parents had five sons and thought they could better keep an eye on all of us if we were living in the country. So, they rented a house a few miles from my maternal grandparents, who were farmers.
Every Labor Day, we’d decorate our bicycles and ride them in the Herscher parade. It was all great fun, from the decorating (my mom did most of the work, as I recall) to the riding. Herscher will host its 99th Labor Day parade on Monday.
From 2002 to 2016, assault rates against men 60 and older are up 60% [according to the Centers for Disease Control and Prevention]; for women, 35%. From 2010 to 2016, the murder rate of men in that age group rose 7.1%. For women, it decreased slightly. […]
According to the state’s Adult Protective Services agency, there were 13,536 reports of abuse against seniors in 2017.
Financial exploitation (8,604) made up the most cases, followed by passive neglect (6,679), emotional abuse (6,476), physical abuse (3,782), willful deprivation (2,268), confinement (1,381), and sexual abuse (765).
Victims generally experience more than one type of abuse, according to the agency. For example, financial exploitation is highly associated with emotional abuse. About 67% of victims were women, as were 51% of abusers.
* At one point in her Sun-Times editorial board interview yesterday, Mayor Lori Lightfoot had this to say about her idea to create a progressive rate on the real estate transfer tax, for which she’ll need Statehouse approval…
Everybody pays the same amount regardless of the value of their home. We think that’s regressive and unfair. What we’d like to see is a progressive ramp that gives relief to homeowners at the lower end of the housing market value and make people upstream pay more of their fair share.
* But Lightfoot was also asked if she thought it was politically tough to get Downstaters on board for pension help for the city at the same time that the Democrats are trying to pass a progressive income tax…
We have to look at the entire eco-system of what’s happening. If we don’t get help from Springfield, we have limited options. And you know that one of those options is property taxes - a huge property tax given the size of the deficit for next year.
So we have to think about the timing of that. Right? We go first. Twice. This year, next year before the voters go to the polls to approve the Fair Tax. So we have to take the long view of what that’s going to mean. And I’m also mindful of the fact that in this state the vast majority of high net worth earners live in the city of Chicago.
We can’t keep taxing the hell out of all of our people who make substantial income. That’s not right. That’s not fair. It’s not gonna work.
What I think she’s trying to say here is that if upper-income folks get hit with two big property tax hikes between now and next November, they’re gonna rebel at the polls against the progressive income tax. OK, but they’re still a minority, including in the city, and Lightfoot herself is trying to impose her own progressive tax.
And that last little bit about the poor put-upon rich people was a big political mistake. You can probably bet a lot of money that this quote is gonna wind up in a TV ad against the Pritzker graduated income tax. And you can also bet that the legislators who voted to put that tax proposal on the ballot are not going to be pleased with the mayor.
A source close to the mayor worked quickly to walk back that statement, reasserting that Lightfoot supports a graduated income tax structure for the state. But is this Lightfoot’s power play? Get in the way of a plan the governor is spending millions on, so the city can get its needed casino and pension help?
The state-city power struggle came into full view during Lightfoot’s address, in which she tied the city’s woes to getting help from Springfield.
Mayor Lori Lightfoot today declared “unsustainable” the 3 percent annual compound pension COLA many city workers and retirees have been promised—and hinted she would not object if further conversations occurred about amending the pension clause in the Illinois Constitution to allow change. […]
Not only labor unions but Gov. J.B. Pritzker oppose doing that, and Lightfoot—who in other settings has said workers should not have their benefits reduced—said today that “I’m not advocating for a constitutional amendment.” […]
But a few minutes later, Lightfoot said that even if such efforts succeed, the current COLA is “unsustainable.” Asked if she’d like the constitution to be amended, Lightfoot replied that, “I’d like to put as many options as possible on the table.”
In response to another question, Lightfoot said she did not mean to imply that other pension efforts short of amending the constitution were useless, but that in today’s economy, “3 percent compounded is a tough climb.”
Pick a lane, please.
*** UPDATE 2 *** Michael Crowley at the mayor’s office…
As the Mayor has repeatedly made clear, she believes that our pension obligations are not optional. This administration is committed to finding ways to shore up the sustainability of our pension funds – including the COLA. We must secure the retirement of our working people by partnering with our allies from the State to identify progressive revenue streams. Mayor Lightfoot remains opposed to a constitutional amendment on pensions.
Republican state Rep. Steven Reick will still be able to drive after he pleaded guilty Friday to DUI in Sangamon County Circuit Court. Democratic state Rep. Kam Buckner’s DUI case has yet to be resolved. Buckner has pleaded not guilty.
Illinois State Police arrested Reick for DUI in Springfield on May 2. He took a breath test that showed his breath-alcohol concentration was 0.146 percent, nearly twice the legal limit. Dashcam video showed the Republican from Woodstock stumbling and admitting that he had too much to drink.
After Friday’s hearing in Springfield, he referred questions to the initial statement he made after he was arrested.
“I made a stupid and regrettable decision last night and accept full responsibility for my actions,” Reick said at the time.
Reick’s attorney, Scott Sabin, said Friday that his client pleaded guilty.
“He’s, I don’t want to say pleased, but ‘relieved’ is a better word, that this matter is put behind him in the court process,” Sabin said. “He’s been placed under court supervision, so long as he abides by the law and stays out of trouble, this won’t appear on his record and be happy to put this behind him.”
The year-long supervision comes with more than $1,600 in fines. Reick was also ordered to complete ten hours of counseling.
Gov. J.B. Pritzker’s administration is open to the creation of a public-private partnership as part of its plan to sell the Thompson Center in the Loop and relocate the state’s Chicago workforce to new office space.
That’s one takeaway from a request for proposals the state Department of Central Management Services issued Thursday as it seeks to unload the controversial Helmut Jahn-designed state headquarters. The state is seeking a project manager to oversee the sale of the 17-story, 1.2 million-square-foot building, assess the state’s Chicago real estate holdings, and plan for where state workers will move following the sale, among other services.
The document says the state is looking for a buyer that will help relocate the state’s workforce to an alternate site, which “may mean new construction on one or more sites of vacant land (owned or purchased) or renovation of a property in a Chicago neighborhood with adequate public transportation options (owned or purchased).” The Pritzker administration also wants its project manager to help negotiate an ownership stake for the state in the new site or sites, according to the 56-page document.
CMS will use this expertise and assess its current asset(s) to develop and execute a strategy for an alternate delivery of project, including but not limited to Public-Private-Partnership (“P3”) and Design-Build (“DB”) delivery methods. It is the intent of the State to package the sale of JRTC and relocations of its State occupants as one project delivery method. As part of the Offer, Respondents are encouraged to provide unique ideas around project delivery methods and include relevant and past project examples.
But prominent preservationist groups urged the state to include plans for retaining and repurposing the building even in the early steps toward selling it.
“Corporations continue to migrate to Chicago from suburbs and beyond, and we believe the Thompson Center presents itself as a desirable reuse option for corporate offices and many other uses,” said Bonnie McDonald, president of Landmarks Illinois, in a statement released Wednesday. “We urge the Pritzker administration to include our re-envisioning study … to ensure that the Thompson Center may shine as the one-of-a-kind postmodern marvel that it is.”
Landmarks Illinois placed the Thompson Center on its annual list of the Most Endangered Historic Places in the state in May for the third straight year. That built on a “Thompson Center Reimagined” study the group released last year, which included a proposed “new tower, with a footprint of approximately 13,000 square feet, … developed on the southwest corner with hotel uses on the lower floors and residential on the upper floors.”
Landmarks Illinois is requesting that the state at least include that study in its request for proposals to find a consultant to aid the sale, and it was backed by the National Trust for Historic Preservation, which included the Thompson Center earlier this year in its list of America’s 11 Most Endangered Historic Places.
“Millions of people visit Chicago every year to experience its diverse architectural landscape, a testament to the city’s longstanding commitment to preservation and innovative design,” said Jennifer Sandy, associate field director for the trust. “Now that many modern and postmodern buildings like the Thompson Center are at risk, Chicago can again demonstrate its leadership on a new generation of buildings worthy of preservation and reuse. Breathing new life into the Thompson Center — not throwing it away — is the right thing to do economically, environmentally, and architecturally.”
As long as it’s turned into the coolest water park in the world, I’m good.
* Sun-Times editorial about the decision by Churchill Downs to shutter the Arlington track and not apply for a racino license…
But nobody should be surprised. This is exactly the sort of thing that can happen when the state Legislature moves awfully darn fast on a big bill that has many moving parts. […]
For years, Arlington had sought a racino to shore up the racetrack’s bottom line, so its ownership’s announcement that it is no longer interested in one surprised pretty much everybody, beginning with Gov. J.B. Pritzker. […]
Churchill Downs says the gambling bill’s high taxes on Arlington and massive expansion of new gambling competition mean a new racino at Arlington would be “untenable” financially, rather than a lifeline. CEO Bill Carstanjen blames the requirement that part of casino earnings go to racing purses — something Arlington has, in fact, been clamoring to do for years.
Churchill Downs didn’t work against the bill. It was also at the table the whole time. As the editorial alludes to, it’s been clamoring for a racino ever since the Elgin casino opened 25 years ago so that it could share some of the gaming money with racehorse owners. Without that cut for the horse owners, the whole shebang falls apart and everyone knows it. Tracks don’t just get a racino handed to them without a requirement to use some of the money to build up the horse racing part of the equation.
So, how can the GA be blamed for giving Churchill Downs what it always said it wanted and didn’t appear to oppose?
Governor J.B. Pritzker suffered a hairline fracture to his left leg, his office confirmed on Thursday afternoon. The injury will not require surgery, but doctors orders will keep the state’s top executive from making a trip to Japan.
The island country represents one of the state’s biggest international trade partners. Governors and state leaders from the Midwest travel to Tokyo every other year, and host Japanese officials in alternating years. Pritzker had planned to attend the meetings next month, according to sources familiar with his travel plans. It remains unclear if Illinois will send another representative in his place.
* Maxwell, by the way, walked the state fairgrounds for half an hour with Pritzker earlier this month and his injury was not apparent at all and the governor never mentioned it…
* But watch this video from Tuesday…
Just learned that @GovPritzker was limping on Tuesday because he has a stress fracture in his left femur. Yet, he still stood in the Blue Room for almost an hour to sign the corporate board diversity bill! He is the people’s champ! Praying for a speedy recovery for our Governor! pic.twitter.com/MbOlT8ulmi
* Mark Brown wasn’t impressed with Mayor Lori Lightfoot’s speech last night…
“Yes, some of our solutions will be hard. Yes, they may involve putting ourselves at risk. And if it means that I sacrifice myself politically, so be it in pursuit of the right thing,” Lightfoot said.
Chicago could use a politician who says that and means it. So could the whole state of Illinois.
And when she shows she’s willing to make that sacrifice, I would like to be in her corner.
It’s Chicago’s curse that Lightfoot had to give this speech. Decade after decade, Chicago and Springfield politicians raised taxes and fees yet raised spending even more. Mayors, aldermen, governors, legislators — the people who caused the public finance debacles in Chicago and Illinois — weren’t at the microphone Thursday night. Just a newcomer who says the downward spiral stops now.
Sensibly, she said she wouldn’t follow the old playbook of “historically large tax increases,” or “a massive borrowing scheme,” or shortchanging payments into the city’s pension system.
Our immediate takeaway from her address: What’s significant here is a matter of degree — that looming deficit ― and a new mayor who’s willing to speak hard truths and own a big share of this mess. She’s decided she has no choice but to ask all of us to help her clean it up.
So, the Trib is for making the full pension payments now?
The state’s attorney general says two former lawmakers should not receive back pay for frozen cost-of-living increases and forced furlough days because they previously voted to approve the two laws and waited “for so long” to file a lawsuit challenging their constitutionality.
Those laws, a Cook County judge ruled last month, violated an article of the state’s governing document that dictates legislators’ wages cannot be changed during the terms for which they were elected.
Judge Franklin Valderrama’s ruling was a partial win for two former senators — Democrats Michael Noland, from Elgin, and James Clayborne Jr., from Belleville — who sued for lost wages. […]
The two voted “fourteen separate times over the course of nine years” in support of the statutes which their lawsuit claims are unconstitutional, the document states. It adds that Noland filed the case six months after he left office, and Clayborne joined the suit seven months after he announced his retirement from the General Assembly.
* Jamie Munks at the Tribune has written a couple of good stories about the Du Quoin State Fair. Here’s one…
Each year when the parade kicking off Illinois’ second state fair winds down, fairgoers stream by the hundreds to Wanda Rednour’s lawn, which sits in the middle of the state fairgrounds.
The longtime Du Quoin resident opens her home for a lawn party to kick off the fair. If the Du Quoin State Fair, located on a sprawling piece of lush southern Illinois land, is a “park with a party in the middle of it,” as fair manager Josh Gross describes it, then Rednour’s annual bash is the party within the party in the park.
It’s the sort of thing that engenders a more intimate experience than the much larger Illinois State Fair in Springfield about 150 miles north — so much so that some regulars say it reminds them more of a county fair than a state fair.
The Du Quoin State Fair, which the state has owned and operated since 1986, was previously run by private owners. In its heyday, when it was home to the Hambletonian, the “Kentucky Derby of harness racing,” the fair would draw hundreds of thousands of people from all over the region during its annual summer run.
The fairgrounds lost that race in 1980 but soon drew the prestigious World Trotting Derby, which held court in the summer in Du Quoin for decades. It was cut in 2010, when the state Department of Agriculture’s budget was slashed, part of widespread cutbacks aimed at closing a major deficit in the state budget that year. There were some concerns locally at the time that the fair itself would cease to exist because of the state’s budget woes.
Illinois first lady M.K. Pritzker is leading a restoration effort at the governor’s official Downstate residence in Du Quoin, marking what some locals see as more attentiveness to the region than they’ve seen in years.
The Pritzkers are privately funding the work on the state-owned Hayes House and so far have spent nearly $100,000, according to the governor’s office. […]
The home sits on the Du Quoin State Fairgrounds and has served as the Downstate executive residence for Illinois governors and their families since the state bought the sprawling property from a private owner in the lost ts. […]
“It’s important, because that house needed some renovation,” [Du Quoin Mayor Guy Alongi] said. “Other governors have just came and gone and not done anything to that mansion. At least they’re doing something to it.”
Mayor Lori E. Lightfoot today addressed residents on the state of the City, the City’s finances and the projected 2020 budget deficit during a live primetime speech delivered at Harold Washington Library. In an unprecedented act of transparency before the official City budget address in October, the Mayor appeared before residents to provide an overview of the city’s current financial state, including: a historic $838 million gap projected for 2020, measures taken to date to address the City’s long-term and short-term financial obligations, and the work remaining to put Chicago on track for a balanced and sustainable financial future.
During the speech, Mayor Lightfoot outlined her vision for strengthening the City by building stronger and safer communities, expanding access to education and vital services, and creating opportunities for working families – starting first by working to create structural reforms within City government that will contribute to Chicago’s long-term financial stability. Importantly, her reforms strive to make Chicago work for working-class families and create a model of good governance. These reforms include: fines and fees reforms, passing the Fair Workweek and an Ethics ordinance, and ensuring that Chicago remains a welcoming City.
“Today I am shining a light on Chicago’s current financial conditions. I want residents to know the full extent of the City’s finances and the path we plan to take to address our long-standing fiscal challenges,” said Mayor Lightfoot. “The 2020 Corporate Fund budget shortfall will be $838 million. And while I recognize this is a steep hill to climb, I am committing to residents that, together, we will do the hard work of finding sustainable solutions that will lead our city to long-term financial stability.”
In the address, the Mayor outlined her administration’s efforts to identify over $100 million in savings and efficiencies over the first 100 days and the work that remains to balance next year’s budget. These efficiencies include the elimination of $1.4 billion in short term borrowing, a review of departmental use of overtime and absenteeism, and implementation of a citywide hiring freeze allowing the city to work with departments to identify additional efficiencies in the coming weeks.
The City has begun to make progress in addressing its costs for 2020 and beyond by implementing structural reforms that drive down costs and improve financial stability, including: a complete overhaul of the $100 million workers’ compensation program, which is expected to reduce claims costs and improve services for workers; release of a new healthcare RFP to revisit competitive costs for the $471 million-a-year program; changes to refinance old debt for better rates; and the creation of the first citywide enterprise risk management system, led by Chief Risk Officer Tamika Puckett, which will seek to cut down on the high cost of legal settlements.
And within weeks of taking office, Mayor Lightfoot secured legislative approvals to authorize a casino in Chicago, which would generate a dedicated revenue source to finance underfunded police and fire pensions. The administration is now committed to working with State legislators on the taxation structure to ensure a Chicago casino will represent a structural solution for long-term sustainability.
The 2020 budget forecast reveals that The Corporate Fund, or the City’s operating fund, represented more than $3.8 billion, or more than 34 percent of the City’s $10.67 billion budget in 2019. This forecast reveals that in 2020, the pension, personnel and healthcare costs that make up a significant part of the Corporate Fund expenses will comprise 70 percent of the budget shortfall, while debt and legal settlement costs make up an additional 22 percent of the structural deficit.
As part of the annual budgeting process, the City is utilizing a zero-based budgeting method, where departments formulate 2020 budget proposals to request funding for programs and services in support of their core mission. New investments will be balanced with department savings, reforms and operational efficiencies in an effort to streamline existing processes and uphold a high quality of services for residents across all neighborhoods.
* More…
Two principals will guide decision making on revenue options: not hurting people who can least afford it, and not driving business out of Chicago
Lightfoot gets a round when she recommits to meeting pension requirements. “Our obligations are not optional,” she says, but adds that “All of Illinois is looking for solutions… we have to be partners in reform… our fates are intertwined.” pic.twitter.com/tVoOaiZDBq
We are exploring revenue options to address rampant congestion that solves the problems of traffic, pollution and other issues, while simultaneously bringing in a fair source of funding.
And…
Not quite how I read that. I read that as better regulating ride-share and changing the city tax structure for those services…
*** UPDATE *** Emily Bittner in the governor’s office…
The governor is committed to creating an environment in the state where all cities can thrive, because Illinois succeeds when its cities succeed. In the weeks ahead, as Chicago pursues assistance from the legislature, it will be important for the mayor to reach out to leaders and lawmakers across the state and across the aisle to build a coalition for her ideas. The governor looks forward to working with these stakeholders as the General Assembly weighs all these ideas carefully.
Today, the Seventh U.S. Circuit Court of Appeals announced its decision in the case Wilson v. Cook County, et al. handing the Cook County State’s Attorney’s Office (CCSAO) a big win in their ongoing fight to protect residents from gun violence. The Illinois State Rifle Association backed a challenge to a long-standing Cook County ordinance banning the possession, use, or sale of assault weapons and large capacity magazines, claiming the regulation violated the Second Amendment. The CCSAO’s Civil Actions Bureau beat back the challenge, arguing that the ordinance furthered a substantial government interest in protecting Cook County residents from the threat of mass casualty posed by semi-automatic assault weapons and related accessories.
After learning of the court’s decision, Cook County State’s Attorney Kimberly Foxx reaffirmed her commitment to public safety in Cook County.
“Assault weapons and large capacity magazines are designed to kill in mass and have no business on our streets,” said State’s Attorney Kimberly Foxx. “Public safety is our top priority, and we were proud to defeat the gun lobby’s challenge in court. While we are pleased with today’s decision, we anticipate that this will be appealed to the Supreme Court. If it is, we will be ready.”
Two Cook County residents appeal the dismissal of their complaint, which raises a Second Amendment challenge to Cook County’s ban on assault rifles and large-capacity magazines. Less than five years ago, we upheld a materially indistinguishable ordinance against a Second Amendment challenge. See Friedman v. City of Highland Park, 784 F.3d 406 (7th Cir. 2015). The district court dismissed the plaintiffs’ complaint on the basis of Friedman. We agree with the district court that Friedman is controlling. Because the plaintiffs have not come forward with a compelling reason to revisit our previous decision, we affirm the judgment of the district court.
Judge notes hedge fund Warlander's financial interest in the litigation -identified at hearing as credit default swaps hedging IL bonds - but doesn't reference it otherwise in his order despite having heavily questioned plaintiff attorney about fund's position during hearing
Tillman/Warlander had argued that 2003 and 2017 bond deals violated specific purposes clause of constitution bc used to shore up general fund, but judge says in order that enabling statutes outlined specific purposes clearly. +
*** UPDATE 1 *** Emily Bittner in the governor’s office…
The administration is pleased that the judge repudiated this sham lawsuit brought on by the same far-right actors whose pathological desire to bankrupt the state brought us four years of devastation under Bruce Rauner.
*** UPDATE 2 *** Comptroller Susana A. Mendoza…
We’re very pleased that Judge Jack Davis did the right thing and threw out this completely frivolous ‘political stump speech’ of a lawsuit. Now that it is clear that Illinois Policy Institute CEO John Tillman and the Warlander hedge fund filed this phony lawsuit just to try to sabotage Illinois’ credit rating for personal financial gain and headlines, anyone who has supported the IPI in the past should rethink their support. Under the new leadership of Governor Pritzker and the steady resolve and financial stewardship of the Comptroller’s Office, the state of Illinois is fixing its finances and the bond rating agencies are recognizing this.
*** UPDATE 3 *** Annie Thompson at the attorney general’s office…
As we stated in our written submissions and oral argument, the plaintiffs waited nearly two decades after the first bonds were issued and billions of dollars were paid into the pension funds, and then waited several years after the second bonds were issued and payments were made on the backlog of bills owed to the state’s service providers and other vendors. The delay alone demonstrates that the petition was always without merit. We are pleased with the court’s decision to deny the plaintiffs leave to file a taxpayer action that, according to the court, “resembles far more of a political stump speech than it does a legal pleading” that “would result in an unjustified interference with the application of public funds.”
“I strongly disagree with the Court’s decision, will appeal and am confident that I will prevail. It was premature for the Court to decide the case on the merits at the petition stage. Moreover, I disagree with the court’s conclusion that whether general obligation bonds have a specific purpose is a purely political question. The Illinois Supreme Court has ruled that the judiciary is in fact required to determine whether a challenged purpose is specific or not, and has done so on other occasions.”
John Tillman took on the lawsuit as an independent individual and concerned citizen. It is not an organizational initiative of the Illinois Policy Institiute.
*** UPDATE 6 *** Ted Hampton, Vice President and Senior Credit Officer of Moody’s…
The judge’s ruling today denying a lawsuit that sought to invalidate some of Illinois’ general obligation debt is positive for the state and in line with our view that the plaintiffs’ argument lacked merit. However, an appeal by the plaintiffs could still complicate the state’s near-term debt issuance plans.
* As we discussed earlier, the state has approved the first round of adult use cannabis licenses, including one in Effingham, the heart of Eastern Bloc country.
* The Question: Assuming that zoning is approved by the local government, what should be the motto of the new Effingham adult use dispensary?
* While I was on vacation, Center Square published a story about my questions to the governor’s office about the Confederate Railroad stuff. For whatever reason, they decided to FOIA my text conversations. Not all of their requests were granted.
So now Center Square is asking the Illinois Attorney General’s Public Access Counselor to force disclosure of an off the record exchange between myself and the governor’s Deputy Chief of Staff for Communications Emily Bittner.
For a self-described news organization to FOIA a reporter’s off the record remarks and then appeal the denial to the attorney general is downright reprehensible.
But in the interest of avoiding any legal fight which could set a precedent, I asked Bittner yesterday if she would lift her off the record restriction so I could publish the exchange here. She consented.
* The great mystery is now solved…
Oh my gosh that’s so fascinating!!! Congratulations, Center Square! I’m totally busted!
* Some other stuff was redacted for whatever reason. I had called Bittner about something else and she didn’t pick up, so I texted her…
The removal comes after blogger Rich Hill last month asked readers on his site, Capital Fax, whether they thought the band was an appropriate choice to feature in the fair’s lineup.
Bittner sent me the link, which the governor’s office redacted from the FOIA…
Heh.
* And here’s a bit of needling from me about a surprising editorial…
Sneed has learned Gov. J.B. Pritzker has a hairline fracture to his left femur.
The upshot: He is under doctor’s orders to rest and recover for the next four to six weeks.
Sneed is also told the governor, who does not know how the fracture occurred, is in “good spirits” and will find it difficult to take it easy. […]
His recovery will require some bedrest, but he plans to go into his office in Chicago. He won’t be going to Springfield anytime soon. The fall veto session is not until later this fall.
I’ve been hearing that he’s complained about a sore knee. It’s one reason he decided to ride and not walk in the Du Quoin State Fair parade. But he walked the entire length of the Illinois State Fair parade and walked all over the fairgrounds and did a bunch of public appearances which required him to stand. He must’ve been miserable.
Anyway, best of luck for a quick recovery. And, dude, obey your doctors.
…Adding… From the governor’s office…
* Governor Pritzker has a hairline fracture to his left femur, so under doctors’ orders, he will be resting and recovering for the next four to six weeks. Governor Pritzker is in good spirits and will be receiving frequent daily updates from his staff and agency heads, and he will be fully engaged in conducting the business of the state.
* Governor Pritzker received this injury some time ago, but it became significantly worse in recent weeks as he attended numerous public events where he stood or walked significant distances. This includes attending and walking around both state fairs.
* This won’t require surgery.
* The Governor is not certain what caused the injury, but he has been experiencing knee pain for several weeks.
* Aside from this injury, the Governor is in good physical health.
Experts estimate that well over $1 billion will be spent on digital ads this campaign cycle, with the majority going to Facebook and Google. For context, that’s about as much as analysts expect to be spent on local cable television ads this cycle.
Facebook is tightening its rules around political advertising ahead of the 2020 U.S. presidential election, acknowledging previous misuse. But it’s not clear if it will be enough to stop bad actors from abusing its system.
The changes include a tightened verification process that will require anyone wanting to run ads pertaining to elections, politics or big social issues like guns and immigration to confirm their identity and prove they are in the U.S. Beginning in mid-September, such advertisers confirm their group’s identity using their organization’s tax identification number or other government ID.
The verified group name will be listed on the “paid for by” disclaimers that disclose the backers of ads. Facebook says it will verify this information against government records and will note in the disclaimer for confirmed ads that they’re placed by a “confirmed organization.” […]
Advertisers who don’t have tax ID numbers, government websites or registrations with the Federal Election Commission will still be able to post ads by providing an address, verifiable phone number, business email and website. These advertisers won’t get a “confirmed” designation. Previously, only a U.S. address was required. But it’s not inconceivable that bad actors will find a way to spoof phone numbers and email addresses.
Last year, Vice News reported that it was able to take out [Facebook] ads in the name of Vice President Mike Pence, all 100 US senators and the Islamic State. In another high-profile instance from 2018, an attack ad targeting Virginia Democratic candidate for Congress Jennifer Wexton was shown by Facebook to have been paid for by a “freedom loving American Citizen exercising my natural law right, protected by the 1st Amendment and protected by the 2nd Amendment.” […]
But it’s not clear whether the new rules would prevent a group or person from simply registering as a company, getting a tax identification number and going forward with their advertisements without ever having to really tell Facebook users who they truly are and what their motivation is. In response to questions about the potential loopholes, Facebook told CNN Business the additional information will be vetted by a mix of automated and human reviewers and that it is working with governments and watchdogs to bolster election security. […]
The new rules will be put into effect in mid-September, and if an advertiser doesn’t provide the new information by mid-October, Facebook said, it will pause an organization’s ads.
Disinformation experts said the social network was still far from fixing the damage caused by the false news and ad campaigns that had run on the platform.
“This is all much too little, much too late,” said Dipayan Ghosh, a fellow at the Shorenstein Center at Harvard and a former privacy and public policy adviser at Facebook. “We’ve seen incredible impacts coming from illegitimate political ads, including from seemingly legitimate actors. And companies, particularly Facebook, are not doing enough to protect the public and our democracy.”
He added that Facebook’s new verification policy amounted to “incremental baby steps forward.” That would “not particularly position us well in the lead-up to elections,” he said.
The corporate ownership disclosure laws are not as strong in the US, and in some states, it’s possible to create anonymous LLC’s without providing identity or much ownership information at all.
That’s not something Facebook can necessarily fix - but it is still a way for sketchy operations to run political advertisements on Facebook and provide little information about who they actually are.
“At a certain point, Facebook won’t be able to do any more verifications because the US allows secret LLCs,” Carroll told Business Insider. “At that point it’s up to Congress to require corporate ownership disclosures like we see in UK on Companies House.”
It will turn its attention to Pages, too, by requiring national candidates or elected officials to go through Page Publishing Authorization, to verify their Pages are using real accounts and are based the U.S. Facebook will then begin exposing more information about the Page, including the business or organization behind it.
Michael Cornicelli, executive vice president of the Building Owners and Managers Association of Chicago, said he assumes any such tax [on high-end city properties at their sale] will cover commercial buildings and not just homes. “It’s a tax on business and employment in the city” that, coupled with a slowing economy and spikes in property tax assessments, “has alarm bells going off everywhere.”
Lightfoot will need to bargain to get anything through the legislature, Cornicelli said.
“My gut is that in order to get something like that, she’ll have to give something,” he said. His suggestion: allowing a referendum on a state constitutional amendment to let governments reduce employee pensions.
If she is bargaining with people like Cornicelli, then yes. But she has to get that through the Illinois General Assembly. And the odds of Democrats and the governor approving that tax hike in exchange for cutting pension benefits are not exactly high.
The Illinois Department of Financial and Professional Regulation announced Thursday the first “Same Site” adult use cannabis licenses, which will allow an existing medical cannabis dispensary to obtain an adult use dispensing license. This license will permit the dispensary to begin adult use cannabis sales at that location starting January 1, 2020, provided the dispensary complies with local zoning rules or other local laws.
In addition to opening adult use dispensaries at the same site of their medical cannabis dispensaries, existing medical cannabis dispensaries are permitted under the law to open a second site for adult use sales at a different location.
The medical dispensaries who have applied for and received early approval adult use licenses to date are:
The Clinic Mundelein
1325 Armour Boulevard
Mundelein, IL 60060
3C Compassionate Care Center – Joliet
1627 Rock Creek Boulevard
Joliet, IL 60431
3C Compassionate Care Center – Naperville
1700 Quincy Ave. #103
Naperville, IL 60540
Salveo Health & Wellness Dispensary
3104 N. Main Street
Canton, IL 61520
The Clinic Effingham
1101 Ford Ave. Ste. C
Effingham, IL 62401
The Department anticipates receiving additional applications for early approval adult use licenses as municipalities adopt relevant zoning ordinances regarding adult use cannabis.
Starting January 1, 2020, the law permits Illinois residents to legally possess up to 30 grams of cannabis flower and up to 5 grams of cannabis concentrate. Registered patients in the medical cannabis pilot program may possess more than 30 grams of cannabis if it is grown and secured in their residence under certain conditions.
But Effingham? In the heart of the Eastern Bloc? From May…
Effingham County Sheriff Dave Mahon and Effingham Police Chief Jason McFarland voiced concerns over a recently proposed Illinois bill calling for the legalization of recreational marijuana. […]
“I know the legislators are looking into this pretty hard, and it’s kind of on the fast track, which really scares me,” Mahon said. “I think that we kind of need to step back and look at what’s happened in other states before we just jump right in. Illinois has already decriminalized marijuana, and this proposal is meant to commercialize the industry and product with proven health and safety concerns.”
That’ll be interesting. Commerce or dogma?
* Related…
* Cannabis dispensary to locate in former Aldi in Galesburg: Ken Springer, KCAPED’s president, said that currently existing medical dispensary license holders are the only entities who can seek a recreational cannabis business license. The two closest medical dispensaries are in Milan and Canton.
Lawmakers said a recently enacted state law designed to limit severance packages for outgoing public university officials needs more teeth after questioning university officials this week.
The high-profile instance of former Western Illinois University President Jack Thomas getting two years of salary worth $570,000 to take a sabbatical and then come back to teach at the university for $200,000 a year drew ire from state Sen. Laura Murphy, D-Des Plaines, during a hearing Tuesday. […]
Murphy said she was upset Thomas was getting the equivalent of CEO pay to come back as a teacher despite a new law meant to limit severance pay to 20 weeks. […]
University officials said Thomas’ exit was a transition agreement, not a severance agreement. […]
“I believe that Dr. Thomas’ contract is grandfathered in,” [WIU General Counsel Elizabeth Duvall] said. “It was still an active contract when it was signed (in 2011) prior to some of the laws that you’re speaking to.”
In recent years, the Illinois General Assembly passed two laws to limit that practice. Senate Bills 3064 and 2159 both were intended to curb a public employee’s ability to receive an unduly large severance package.
State Sen. Bill Cunningham (D, Chicago) helped negotiate both bills. He reiterated their intent during Tuesday’s hearing.
“That intent is, if for whatever reason — and the reason really isn’t all that important — a university decides they want to change their president, that they not offer him or her a golden parachute,” he said. […]
“I think [it] seems pretty clear to anybody who’s paid any attention to this that the Board of Trustees at Western Illinois University sought a way around that law,” he told a panel that included WIU. “If we can’t rely on the board of universities to follow the spirit of the law, maybe we need to figure out a different governing structure.”
The board did indeed get around prohibitions in the current law. So perhaps the law should be revised, but it won’t be easy to tie their hands like that.
The Comprehensive Annual Financial Report (CAFR) released today shows Illinois cut its general funds deficit by $6.849 billion — from a deficit of $14.612 billion in fiscal year 2017 to a deficit of $7.763 billion in fiscal year 2018. That is largely because of a refinancing of state debt from high-interest to low-interest repayment.
The state’s total assets were approximately $53.9 billion on June 30, 2018, a decrease of $400 million from June 30, 2017. The state’s total liabilities were approximately $248.1 billion on June 30, 2018, an increase of $33.3 billion from June 30, 2017. The state’s largest liability balances are the net pension liability of $133.6 billion and the other post-employment benefits liability of $55.2 billion.
Health and social services expenditures of $29.2 billion comprised the largest expenditure function for fiscal year 2018, decreasing by $1 billion from fiscal year 2017. The second-largest expenditures, education expenditures, including spending for elementary and secondary education as well as higher education, totaled $25.4 billion, an increase of $3 billion, or 14%, from fiscal year 2017.
The Illinois Office of Comptroller compiles the CAFR from reports submitted by individual state agencies that are required to be audited by the Auditor General’s Office. If any of those audits is not complete, the Office of Comptroller cannot publish the CAFR. Since December, the Office of Comptroller has been ready to publish the CAFR as soon as the remaining audits were completed.
A primary reason for delay in the release of the fiscal year 2018 CAFR was the need for the new administration to try to piece together data lost by an IT vendor working for the previous administration’s departments of Healthcare and Family Services and Human Services.
As the Illinois Office of Comptroller noted in a June 28, 2018, report, four months’ worth of long-term care eligibility findings in 2017 were missing. (see attached report)
Comptroller Susana Mendoza said the prior administration relied too heavily on third-party non-government contractors to perform sensitive data conversions without adequate monitoring controls from state agency officials.
“We should not expect outside consultants to perform critical government functions, especially regarding data involving eligibility determinations under the state’s Medicaid program serving the state’s most vulnerable citizens, without adequate controls to protect the state’s program and ultimately state taxpayers,” Comptroller Mendoza said.
In April, Comptroller Mendoza announced her office would institute new contract reporting requirements for IT vendor agreements of more than $5 million. The new Information Technology Milestone Report rules require state agencies to publish progress and performance updates on ongoing IT initiatives, precisely to avoid data losses like this.
In addition to the missing data the Auditor General’s Office encountered at the departments of Healthcare and Family Services and Human Services, late adjustments relating to receivables were required as a result of the audit of the Department of Employment Security.
Comptroller Mendoza agrees with a repeated finding by the Auditor General’s office that the state needs a coordinated financial reporting system. However, it is important to note that was not a primary reason for this year’s delay.
Illinois’ 852 school districts spend almost twice the national average on “administrative costs,” according to U.S. Census Bureau data. School districts in Illinois spend $581 per pupil on school district administration on average, according to the Illinois Policy Institute. That’s more than double the national average of $230 per student.
“We’re spending more and getting less for our investment in our kids because too much of the money is siphoned away by these six-figure administrators,” Illinois Policy Institute Director of Budget and Tax Research Adam Schuster said. “If we spent the national average [on district-level administration costs] we would have saved $708 million last year.”
District-level administration refers to positions such superintendents, not principals.
This spending comes amid a decline in the number of public school students. From the 2017-2018 school year, total students had decreased by more than 2 percent since 2014, according to Illinois’ Report Card figures.
An April report from the Metropolitan Planning Council found that Illinois was the only state in America that spent more than $1 billion in total administrative costs in 2016. Metropolitan Planning Council Associate Adam Slade said one issue common to Illinois is that many school districts have only one school, meaning a district and school administrator essentially duplicate their work.
Initial offers by Illinois’ attorney general to settle a dozen lawsuits linked to the state’s mishandling of fatal Legionnaires’ disease outbreaks at the Quincy veterans’ home have been so sparse, some families are calling them “insulting.”
During Kwame Raoul’s campaign to become the state’s top law enforcement official, the Democrat called the state’s mishandling of the outbreaks “unconscionable.” Fourteen people died after getting Legionnaires’ at the largest state-run veterans’ home.
Following a WBEZ investigation into the outbreaks, then-state Sen. Raoul voted last fall to raise damage caps on lawsuits against the state to $2 million, and to make that increase retroactive to apply to a dozen families who lost loved ones at the Illinois Veterans Home and had pending negligence cases against the state. […]
To date, however, the attorney general has only made settlement offers that range between $200,000 and $500,000, WBEZ has learned.
The plaintiffs, at least one of whom appeared in a JB Pritzker campaign ad, are hopping mad. Go read the rest for their react.
* I had one issue after another this morning. I’m working to resolve everything and finish up the subscriber edition. In the meantime, follow along with ScribbleLive…
