Capitol Fax.com - Your Illinois News Radar
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Delegation goes to bat for Exelon

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* Greg Hinz

In a most unusual letter signed by 13 of the state’s 18 House members, both leading Democrats and Republicans asked Gov. Bruce Rauner and legislative leaders to act quickly on a bill they say “will allow Illinois’ nuclear plants to continue to operate.”

The letter—signators include Democrats like Mike Quigley and Bobby Rush, Bill Foster and Tammy Duckworth, and Republicans such as Randy Hultgren and Bob Dold—says the industry is “in jeopardy if state and federal policymakers do not act soon” to protect it from “market challenges, including historically low natural gas prices.”

The bill does not detail the “market-based solutions” it proposes. But that’s a reference to an Exelon bill pending in Springfield that would hike rates on an average home by $2 a month, distributing the proceeds to “non-carbon” providers, such as nuclear plant operators.

Look for lots of debate on that, though the letter says that Illinois would lose 8,000 jobs and $1.8 billion in economic activity if just three nuclear plants close.

The letter is here.

  35 Comments      


Question of the day

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* KMOV TV

Illinois Gov. Bruce Rauner gave the Oath of an Officer to the newly appointed director of the Illinois State Police on Wednesday.

Director Leo P. Schmitz was appointed by Rauner on Feb. 4 and unanimously confirmed by the Illinois State Legislature 13 days later.

The accompanying photo…

Well, well. Rauner raised his right hand this time. He’s learnin’!

* The Question: Caption?

  98 Comments      


Reach out and touch someone

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* From an e-mail…

Hi Rich:

What would we have to do for you to get some attention on two senate bills that are trying to [identifying legislation info deleted]?

We are open minded folks.

The first time I read that, I thought they were trying to offer me a bribe or something.

I e-mailed them back to say they should just send me the info and I’d look at it.

But, sheesh, man, try not to get all Soprano’s on me next time. Thanks.

* I just absolutely despise these e-mails…

Hello,

Please see the attached Press Release for [deleted]. Thank you.

Please, please, PLEASE put your press release in the body of your e-mail. C’mon, man, it’s 2015.

* From an action alert

More than 150 shelter residents, homeless providers and students are in Springfield Wednesday with the Chicago Coalition for the Homeless (CCH) to talk to legislators about devastating cutbacks to homeless services proposed in Gov. Rauner’s FY16 state budget.

The action day includes a Twitter storm from 11 a.m. to 1 p.m. today to protest the proposed cutbacks – please follow @ChiHomeless and tweet using the hashtags #nocuts and #twill.

More than 12,500 Illinois households would lose shelter, housing or services, as CCH detailed on our blog after the budget was announced on Feb. 18.

The “Twitter storm” is quite informative. Click here.

I invented the “twill” hashtage (a combo of Twitter and Illinois), so I’m always on the watch for it. But a legislator tagged me as well, just to make sure I got the hint…


Message received.

* I almost always ignore these e-mails…

Hello Rich,

I tried to reach you some days ago but something obviously went wrong, or you just didn’t have the time to check my email. Could you please revert to our infographic [deleted] If you liked it, then please consider sharing it along with your readers.

With Gratitude,

Xxxxx

Unless it’s specifically about Illinois, I’ll pass on the infographic, thanks.

* And I most certainly got the attention of Rep. Greg Harris, a well=known “Sharknado” fan, by asking him via a Facebook post what he thought about the news that Anne Coulter has been cast in “Sharknado 3″ as the nation’s vice president.

Harris’ response

Breaking News!!! Whilst I drove to Springfield to Serve You the People, my friend Rich Miller posted this alert. What I want to ask is would any self-respecting Sharknado devour Ms. Coulter or would they just squeal EEEEEK and fly away?

  25 Comments      


*** UPDATED x1 *** “Downton Abbey” story was no random thing

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* The Washington Post’s Ben Terris was the guy who broke Aaron Schock’s “Downton Abbey” office decor a few weeks ago.

Chris Cillizza interviewed Terris and he revealed something for what I think is the first time

“Somebody actually called a couple of days before that and said ‘You gotta check out Aaron Schock’s office, it’s totally crazy looking.’”

He said he initially declined to bite on the story, but then decided that Schock was “an interesting guy” and maybe it would be worth the trip.

In any case, this wasn’t a self-motivated story. Somebody tipped him off. I’ve reached out to Terris on Twitter to ask who called him and whether that person was a political operative.

As we’ve seen multiple times, this Schock story has been ginned up and even directed by somebody and/or some entity in or very near politics. The DCCC has their fingerprints on this as well. Finding out who was behind the office decor story might possibly help lead us to who’s really behind this and why.

*** UPDATE *** He responded, sorta…


[ *** End Of Update *** ]

* Meanwhile

A Peoria County grand jury indicted two men for allegedly trying to rob a house rented by U.S. Rep. Aaron Schock last month.

Derek H. Martin, 24, of 3016 Springfield Road in East Peoria and Adam F. Bennett, 27, 23906 Veterans Road in Morton, both are charged with attempted residential burglary. Martin also faces an additional count of being a felon in possession of a firearm.

Prosecutors allege police were called to the house by a realty company on Feb. 7 after a representative had found the men there. Officials believe Bennett was the lookout and that Martin’s fingerprints allegedly were found on the windows around the house on Detweiller Drive.

The men were allegedly caught with a handgun and a recent Journal Star article which had discussed how the property, which isn’t owned by the Peoria Republican, often is vacant.

Oof.

  111 Comments      


Most suburban towns could survive a year of state cuts

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* The Daily Herald took a look at municipal reserves in 90 suburbs

Already in the red by nearly $200,000, [Island Lake] would lose $400,000 more next year if Rauner’s [revenue sharing cuts are] implemented by the legislature.

“In 2014, the village reduced the deficit but still did not eliminate it. The village still remains insolvent,” said Ed McGinty, the village’s treasurer. “Any reductions in revenues will result in more cuts to local people and services.” […]

On average, the 90 suburbs would use up a quarter of the reserves to cover the loss of income tax revenue in the first year, according to the analysis. […]

The Government Finance Officers Association recommends reserves be kept at a minimum of two months of spending, or roughly 17 percent of annual spending. The state does not mandate any levels.

The reserves of the 90 suburbs analyzed averaged 60 percent of annual expenses. Besides Island Lake with its deficit, only West Dundee, Aurora and Hampshire reported reserves below the minimum suggested threshold. Hampshire reported reserves of just 1.1 percent of the village’s annual expenses last year. Four more towns — Antioch, Barrington Hills, Carpentersville and Prospect Heights — could drop below two months of reserves after an initial year of income tax cuts.

The rest were in pretty good shape. Go read the whole thing. Downstate, however, could be a very different story. And towns already in fiscal trouble which also aren’t home rule units would be hit particularly hard.

* Related…

* Rantoul would lose more than $600,000 a year under governor’s proposal: Bennett said the county of Champaign would be hit, too, under Rauner’s proposal — losing $1.5 million. Two other villages in Rauner’s district that are in the Press’ coverage area would lost substantial funds. Gifford’s payment would decline from $92,948 to $46,474 a year, and the village of Thomasboro’s from $107,342 to $53,671 according to Bennett’s figures.

* Ottawa opposes Rauner tax grab

* Thomasboro formally opposes governor’s resolution to cut money to local government: Mayor Brad Morris said if the governor’s proposed budget went through, the village would stand to lose more than $55,000 from the state. Morris did say the money was a luxury for Thomasboro but not for other small communities around Illinois.

* Mayors Call On Rauner To Rethink Plan To Cut Local Government Revenue: On Monday, the Arlington Heights village board approved a resolution opposing the proposed reduction in local governments’ share of income tax revenue. Groups representing mayors and local government officials, like the Will County Government League, also oppose that portion of the budget proposal, and have sent a letter of opposition to the governor. Steve Quigley, executive director of the Will County Government League, said local governments in Will County would stand to lose more than $55 million.

* Skokie mayor: Rauner budget would force tax increase or cut in services

* State superintendent warns of ‘perfect storm’ for districts: State Superintendent Christopher Koch told a House appropriations committee that the numbers of low-income and minority students are growing while budget cuts force districts to cut staff and eliminate various programs.

* Mixed feelings on budget cuts: Although Gov. Bruce Rauner’s proposed budget includes $300 million in education funding, [Ashton-Franklin Center School District Superintendent John Zick] said AFC would only receive $27,000. Factor in the lost of student enrollment, and the district would only get an estimated $12,000. “$300 million sounds really good, but we would only get a small piece of that pie,” Zick said.

  36 Comments      


Editorial: “Don’t fall for Exelon bailout”

Wednesday, Mar 4, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Editorial boards are sounding the alarm about the Exelon bailout bill.

Crain’s Chicago Business: “THIS ‘MARKET SOLUTION’ ONLY BENEFITS EXELON”

You know you’ve got a good thing going when profitability is only a bailout away…

Bailouts for profitable enterprises? That’s not the kind of juice that ratepayers should be shelling out for.

Chicago Sun-Times: “EXELON MUST MAKE CASE FOR BAILOUT”

Not so long ago, Exelon…was extolling the merits of an open market for power as its profits rolled in. Now, with power prices plunging, Exelon has lost enthusiasm for the open markets it championed in the 1990s and wants the Legislature to devise a new formula that will protect its profits, quite likely driving up utility bills for homeowners and businesses.

If Exelon is hard up, they can show us. The company should open its books to show how its nuclear fleet is performing.

What’s good for Exelon doesn’t much matter if it’s bad for the rest of Illinois.

Belleville News Democrat: “DON’T FALL FOR EXELON BAILOUT”

Good old Exelon. The company has come up with legislation to subsidize its nuclear reactors, get electric users throughout the state to pay for it and claim it’s in the interest of clean energy.

State lawmakers need to see this bill for the dirty trick it is and kill it.

  Comments Off      


The consequences of cuts

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* Windy City Times

Among the budget cuts handed down in the Feb. 18 budget from Gov. Bruce Rauner was the elimination of funding for programs that stem school bullying. […]

“While I know every penny counts right now, we’re talking about half-a-million dollars that saves a lot of money for the state further down the road,” said [Rep. Kelly Cassidy]. “Besides the human cost, there is a financial cost to bullying as well—it drives up law-enforcement costs, for example. Remember, in Minnesota a school district got sued because of the bullying that took place there.” […]

“This impacts not just LGBT students, but students with disabilities, students of color [or] students who identify as female,” [said Anthony Papini of Illinois Safe Schools Alliance]. “We need to ask ourselves, do we want to be a state that promotes unsafe learning environments for our children? This is going to require a community effort, to reverse. I guarantee you that these cuts are going to result in unsafe schools.” […]

The Alliance is also concerned with Rauner’s appointment of Rev. James Meeks, who has opposed numerous pro-LGBT initiatives, as chair of the Illinois State Board of Education.

“He’s somebody who has preached that LGBT people are not normal,” Papini added. “Of course, it’s an ‘equal-opportunity’ hate. He’s spoken out against Jews and Hispanics as well. Is that the message the governor wants to send to students?”

* Meanwhile, the governor’s proposed $1.5 billion in Medicaid cuts could have a major impact on kids

As Illinois lawmakers consider a $1.5 billion cut in Medicaid spending proposed by Gov. Bruce Rauner, a new report is out that underlines just how widespread Medicaid and other health-related state spending has become in every corner of Illinois, even the most prosperous. […]

Overall, those in state health programs—the vast bulk in Medicaid, but also some ancillary programs such as Kid-Care and a high-risk insurance pool known as CHIP—total 2.8 million, or 1 in 5 Illinoisans overall, the study found. But among children, from infants to age 18, the figure is much higher, hitting 52 percent of those in that age group statewide.

The figure is at least 16 percent—1 kid in 6—in every single Senate district in the state. In most it’s 30 percent or more.

Figures also are high among seniors, many of whom go on Medicaid to pay for care in nursing homes. Despite getting Medicare, 1 senior in 10 in Illinois also gets Medicaid, too.

* The district-by-district study is here. From the narrative

How does this play out in individual districts? Let’s use the example of State Senator Dale Righter whose district includes Mattoon, Illinois. He was quoted in the Chicago Tribune saying that “we can’t afford” the medical programs we have, and he clearly supports Governor Bruce Rauner’s proposal to slash $1.5 billion from Medicaid.

It turns out that Sen. Righter’s constituents need medical care as much as anyone else. One in five or 21 percent of his constituents are in state medical programs. Almost half — 47 percent — of children in his district are covered by state medical programs. How does a legislator seek to reduce medical care that half the children in his district are in need of?

* Other cut stories…

* Gov. Rauner’s proposed budget cuts are not acceptable: The governor’s proposed budget drastically cuts state funding for substance use disorder treatment by more than 20 percent. The presumption that cutting addiction treatment programs will save the state money is profoundly wrong and has no basis in fact. The opposite is true.

* Sen. Morrison hosts group in discussion on Rauner budget

  45 Comments      


It’s just a bill, but it’s interesting

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* Considering that we have a Republican governor and all but one other statewide constitutional officers are Democrats, Rep. Tryon may be doing the Democratic Party a favor with this bill

In response to the appointment process that followed the death of Illinois Comptroller Judy Baar Topinka last year, State Rep. Mike Tryon (R-Crystal Lake) has filed legislation that would outline how a replacement would be chosen. […]

“There was a great deal of confusion surrounding the appointment process for Judy’s successor, and my House Bill 3094 clears up some ambiguities in the current statutes,” said Tryon.

“The bill simply states that in the event of a vacancy in a statewide elected office, the Governor must appoint a successor from the same political party as the individual who previously held the post. Pat Quinn put a Democrat in a seat that had been held by a Republican, and I think that was wrong.”

Your thoughts?

* Other bills…

* Illinois bill would name planned I-74 bridge in Quad Cities for late US Rep. Lane Evans

* Illinois Lawmakers Will Soon Consider Cameras in Nursing Homes

* Illinois Senate bill would update DCFS investigator training for first time in history

* Rep. Flowers: Medical cannabis makes state bank necessity; committee hearings could feature school choice, professional licensing, Link card photo ID and more from INN Radio

* State Sen. Chapin Rose introduces bills to change MAP grant rules

* Barbara Flynn Currie introduces legislation to increase access to campus police information

* Conroy Introduces Legislation Recommending Civics Education Requirements

* Illinois House panel backs painting of toy guns

* State House passes resolution supporting map-making agency move to Illinois

  25 Comments      


Martin’s Story: A Medical Error Changed Everything

Wednesday, Mar 4, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

My name is Donna Harnett. My eldest son’s life was destroyed the moment it began as a result of a medical error.
Martin’s disabilities were severe. He was a quadriplegic. He didn’t walk and was unable to talk. He wore diapers.

The doctor who delivered Martin was a teaching physician at a prominent hospital in Cook County. My case against him was not the first; there were several others with similarly disastrous outcomes. Despite the other lawsuits, the doctor retained his license to practice and was not listed on the Illinois Department of Financial and Professional Regulation website as ever being disciplined.

Let me tell you about this lawsuit lottery winner’s life. Martin had at least one doctor appointment per week. He received physical therapy, not only at home but also at school every week. He was unable to socialize with others. He couldn’t run or play with his brothers. His existence consisted of laying or sitting in a wheelchair, completely helpless.

Martin passed away at the age of 14. I would give it all back if I could just have had my son as he should have been.
The Illinois Trial Lawyers Association fights to ensure all citizens get equal footing in the courtroom. To learn more about Martin, click here.

  Comments Off      


SDems upset GOPs by advancing partial FY 15 fix

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* The Senate Democrats explain their latest budget move via press release

State Senator Heather Steans (D-Chicago 7) presided over a Senate committee that took the first step today toward solving the crisis caused when a program that assists working parents with the high cost of child care ran out of money earlier this year.

“Reliable, affordable child care is absolutely essential for parents who are doing their best to participate in our economy and improve their families’ prospects,” Steans said.

“Our solution to the shortfall involves no borrowing and no new revenues, and it is imperative that we move forward immediately to resolve this short-term crisis, which has already shut down child care centers and left working parents without options.”

The plan, Senate Bill 274, allows the governor to move $579 million in excess money sitting unused in various state funds to fill gaps in essential areas of spending, including the Child Care Assistance Program, which helps low-income parents who are working or attending school afford care for their young children. The $300 million shortfall in CCAP funding threatens to leave 100,000 families without access to affordable child care. The measure will also provide overtime owed to prison guards and services for people with developmental disabilities. Today, the Senate Appropriations I Committee approved the legislation.

“The governor has sought broad budgetary powers, and we have continued engaging in a dialogue with the governor’s office while focusing on giving him the authority needed to keep working parents on the job,” said Steans, who chairs one of the Senate’s two budget committees. “It’s been almost a month since parents who rely on this program came to us with their stories, asking us to support them as they build better lives for their families, and we owe them a solution.”

SB 274 now advances to a vote of the full Senate.

* The measure passed committee without any Republican support. Tribune

Rauner is seeking extraordinary powers to manage the $1.6 billion budget shortfall he inherited that threatens subsidized child care and paychecks for state prison workers. But talks stalled after Rauner unveiled a spending plan for the next budget year that calls for massive cuts, with Democrats who control the legislature saying they want more details about how he’d manage the current budget crisis.

Senate Democrats said Tuesday they’ve run out of patience and began moving a proposal that would take money from funds earmarked for special purposes ranging from road construction to oversight of doctors. The measure sailed through a Senate appropriations committee with nine Democrats voting in favor. […]

Sen. Matt Murphy, R-Palatine, accused Senate Democrats of breaking off negotiations with Rauner. Murphy said the proposal falls short of fixing the entire problem and wouldn’t give Rauner the proper authority to spend the money.

“Why are you going off on this tangent right now rather than solving this problem?” Murphy said. “The reason is this is an early test of the governor, and what you are doing today is choosing to play politics with the lives of working mothers and their children.”

* From the governor’s press shop…

This is the exact type of short-term thinking that created this mess and it does not even solve the major crises that will occur at the end of this month. The people of Illinois deserve a comprehensive solution instead of another half-baked idea that will lead to yet another crisis in the immediate future. After weeks of detailed negotiations, including three hours yesterday morning, it is clear that Senate Democrats are more interested in playing politics than solving this problem.

* From House GOP Leader Jim Durkin…

“The unbalanced FY 15 budget needs to be corrected immediately and brought into balance. For over a month, Republicans and the Governor have been ready to move forward with a plan to fund child care, court reporters, payroll at our correctional facilities and also balance the remainder of the deficit. We are ready to clean up the mess Governor Rauner inherited on January 12, 2015.”

* Finke

With Republicans all voting “present,” the Senate Appropriations Committee approved the plan that will allow Gov. Bruce Rauner to use nearly $580 million from dozens of special state accounts. Among them, the bill allows for taking $59 million from the state’s road fund, $37 million from a fund set aside to buy land in congested areas for open space and $63 million from the personal property replacement fund that distributes money to local governments around the state. […]

Murphy contended negotiators were making good progress toward a compromise on giving Rauner emergency budget powers as recently as Monday. Senate Democrats had been demanding Rauner provide greater detail about how he planned to use those powers – such as which programs would get a spending cut – before granting him that authority.

However, Sen. Dan Kotowski, D-Park Ridge, said the bill doesn’t derail those negotiations. He also noted that Rauner has indicated a desire to use money from the funds to help fix the current budget. Kotowski said people have “no patience left” waiting for lawmakers to negotiate an agreement with Rauner.

Still, Kotowski acknowledged he had not spoken to anyone in the House about the bill to tap into special state funds. If the Senate approved the bill, it would still have to be approved by the House before it could be sent to Rauner.

* AP

Democratic House Speaker Michael Madigan’s spokesman, Steve Brown, said Madigan doesn’t have a position on the Senate’s legislation at this point. But Brown reiterated Madigan’s statements that he believes this year’s budget hole should be patched with a combination of special funds and reductions in spending.

  39 Comments      


Forby asks AG Madigan for formal opinion on right to work zones

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* The attorney general doesn’t usually issue an opinion on a proposal unless she is specifically asked. So, I’ve been wondering when somebody was gonna do this. From a press release

In the ongoing fight to protect working families from overreaching anti-employee initiatives, State Senator Gary Forby (D-Benton) sent a letter to Attorney General Lisa Madigan to inquire about the constitutionality of right-to-work zones.

Across the country, right-to-work laws have crippled unions’ ability to protect workers’ rights. Studies of other states concluded that right-to-work laws drive down wages and benefits and do not improve a state’s business climate or create jobs.

Governor Rauner wants to experiment with their anti-worker policies at the state level.

“Right-to-work zones are the opening shot to roll back the protections we take for granted,” Forby said. “I want to know if the Governor’s proposal is constitutional because it doesn’t seem legal.”

Workers living in right-to-work states earn about $1,500 less per year than workers in states without these laws.

“Our economy is finally getting back on its feet,” Forby said. “Right-to-work zones mean a pay cut to the middle class, which goes against what the people in Illinois voted for last November.”

* Forby has 3 specific questions for AG Madigan. Click the image for the complete letter…

  36 Comments      


*** LIVE *** Session coverage

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* Watch the news as it happens with ScribbleLive

  1 Comment      


Rate hizzoner’s new humble pie TV ad

Wednesday, Mar 4, 2015 - Posted by Rich Miller

* Press release…

In his first ad of the runoff, Mayor Rahm Emanuel speaks directly to the voters and shares why he fights so hard for Chicago’s future. The Rahm for Chicago campaign begins airing “Chicago’s Future” today.

* Ad

* Script…

“They say your greatest strength is also your greatest weakness. I’m living proof of that. I can rub people the wrong way or talk when I should listen. I own that.

“But I’m driven to make a difference. When politics stood in the way of a full day kindergarten or tougher gun laws, I charged ahead. And when business interests said a $13 minimum wage was too high, I didn’t back down.

“Look, I’m not going to always get it right. But when it comes to fighting for Chicago and Chicago’s future, no one’s going to fight harder.”

Aldertrack reports this morning that the mayor’s campaign purchased $605,000 of network TV ads for next week and $55,000 in cable TV for this week.

  155 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, Mar 4, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


Mess with the bull…

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Rep. Joe Sosnowski (R-Rockford) writing in the Kankakee Daily Journal

As the Illinois Legislature searches for ways to provide taxpayers relief, everything must be on the table.

That is why I have introduced House Bill 261, which will remove the state unfunded mandate requiring local units of government to publish public notices in newspapers. HB 261 will save local units of government and taxpayers’ money by allowing public notices to be placed on government websites instead of in newspapers. […]

One quick example that happens all over Illinois: Boone County spent more than $17,000 in 2013 on assessment publications for property taxpayers who had an assessed value change. That’s $17,000 to publish assessment information. Currently, a resident receives notification in the mail of changes in assessed value and Boone County has property assessment information on their website every day.

We should not financially punish local governments that are accountable and transparent to their taxpayers; therefore, why do we require local governments to pay more to put this information in the newspaper that will be published and viewable only once?

The answer is the newspapers lobby. Yes they have lobbyists in Springfield looking to get their cut of taxpayer money. The newspaper lobby claims they are increasing accountability and transparency by fighting for these types of notices to be filed in the paper. Articles written by some journalists claim my proposal will decrease government transparency. That is utterly false.

The only thing that will be affected is the profits of newspapers. It’s not the taxpayer’s responsibility to keep newspapers afloat. If we are being serious, how many of us are avidly searching their local weekly newspaper to find a fire protection district budget, school annual statement of affairs, taxpayer property ID numbers, etc.? If you miss it, it is not printed again, whereas if the notice was posted online it would be available all the time and readily available for public viewing.

Discuss.

  68 Comments      


Credit unions serve as not-for-profit cooperatives; Banks elect Subchapter S to avoid taxes

Tuesday, Mar 3, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Credit unions were first exempted from federal income tax in 1917 because of their unique structure as not-for-profit financial cooperatives. Contrary to what some banks may suggest, credit unions pay property, payroll, and sales taxes.

Yet while banks decry the credit union tax exemption, nearly 40 percent of banks in Illinois elect Subchapter S status under the Internal Revenue Code to avoid federal income taxation. That’s $59 million in diverted tax dollars. These for-profit Sub-S banks also pay dividends and fees — not to customers, but to directors/investors/stockholders who may or may not be depositors — to the tune of more than $1.3 billion. This is far in excess of the estimated federal income tax credit unions would pay.

In contrast, credit unions return net revenue to their members. The banker argument against the credit union tax exemption is simply disingenuous. If banks really believed that credit unions operate with an unfair competitive advantage, they would restructure their institutions to credit union charters. None would, however, because doing so would expose them to becoming democratically controlled, locally-owned financial cooperatives governed by their very own volunteer members that put people before profits — all the virtues that define the credit union difference.

  Comments Off      


*** LIVE *** Session coverage

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Watch it all with ScribbleLive

  Comments Off      


They got him on tape

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* From a press release…

Randolph County State’s Attorney Jeremy R. Walker and Attorney General Lisa Madigan today announced that defendant Drew Peterson waived his right to a preliminary hearing and entered a plea of not guilty in the state’s case charging him with one count of solicitation of murder for hire and one count of solicitation of murder.

Peterson, 61, an inmate at the Menard Correctional Center, waived his right to a preliminary hearing and entered the plea before Randolph County Circuit Judge Richard A. Brown.

The charges, both Class X felonies, allege that between September 2013 and December 2014, the defendant solicited an individual to carry out a murder-for-hire plot against Will County State’s Attorney James Glasgow. The case is being jointly prosecuted by the Randolph County State’s Attorney’s Office and the Illinois Attorney General’s Office.

Also today, the state filed a required notice disclosing the case involved the use of a court-ordered eavesdropping device on two occasions – from Oct. 24 to Nov. 23, 2014 and from Nov. 23 to Dec. 22, 2014.

  12 Comments      


Question of the day

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Trenton, New Jersey columnist Jeff Edelstein doesn’t much care for Gov. Bruce Rauner’s claims about his home state

When I think of Illinois, I think of women shaped like fire hydrants wearing sausage-stained Chicago Bears sweatshirts. For the men, I just add a mustache.

I just wanted to get that out there.

Why? Because Illinois’ newly-elected governor, Bruce Rauner, said the following last week about our fair state: “New Jersey is lost. They’re going down the drain and they ain’t turning it around.” He said this in remarks to the Illinois Farm Bureau, a group with the motto, “Farm. Family. Food,” which makes me wonder if full sentences are beyond the grasp of Illinois farmers.

But enough with the cheap insults.

Rauner, who may or may not have once fed his family dog to serial killer and Illinois native John Wayne Gacy, was speaking about the property tax situation in the Prairie State, which he claims is second worst only to the property tax situation here in the Garden State. (Yes, the Prairie State. Prairies are wide open spaces. Like the craniums of most of Illinois residents.) (“Cranium” is another word for “skull,” Illinoisans.) (Say, how are those Cubbies looking this year?)

“I don’t want to compete with New Jersey on anything, especially that. That’s a disaster,” Rauner said, according to the State Journal-Register in Springfield, Illinois.

Believe you this, Rauner, we don’t want to compete with Illinois on anything either. We prefer stiffer competition. Like from New York, California, Texas. That’s the A-league right there. You guys are B-league at best. Go play with Iowa or something.

* The Question: Your response to Mr. Edelstein?

  128 Comments      


Get well soon, Mika!

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* This was posted yesterday on Facebook

My sister in law Mika Baugher and father in law Eric got in a car accident today. Eric seems to be doing okay so far, but Mika has 7 broken ribs. This is particularly bad for Mika because she has Cystic Fibrosis, and needs to cough often in order to keep her lungs from getting infected. It’s days like this that make me so thankful that Jason Kozemczak and I have such incredible families, and grateful that technology can connect us all in times of need. Warm thoughts and prayers are welcomed/requested for Mika and Eric. Life is precious.

Mika is the front-office receptionist for House Speaker Michael Madigan. She takes a whole lot of grief from the public almost every day, but she always manages to maintain a super-sweet and friendly demeanor. I don’t know how she does it.

* Mika posted an update on her condition yesterday

Hi everyone! I am blessed for all the wonderful friends and family. I am ok. Very sore. Seven broken ribs in the left side and some are broken numerous times. The fear is my lungs will fill with fluid as I lay here. My goal is cough as I can and get up and walk as I can. I’m working on that.

Thank god for my husband. He’s been here and is going to be back tomorrow. Waiting on me hand and foot. He’s an angel. My Mom she is my rock and such a huge help to us. My in laws thank you for everything! Today was scary and it was a jolt but could have been so much worse! Thank you all again! Love you all.

Please join me in sending best wishes to Mika. Thanks.

  28 Comments      


Comprehensive heroin bill introduced

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* A bipartisan anti-heroin package was unveiled yesterday

Republican Reps. John Anthony of Plainfield and John Cabello of Loves Park and former Rep. Dennis Reboletti joined Assistant House Majority Leader Lou Lang, D-Skokie, at a news conference Monday to announce the introduction of legislation to combat the drug. Lang said he filed House Bill 1 after a 2014 task force found the problem was much worse than he expected.

The bill looks to attack the problem from a variety of different angles instead of just focusing on treatment, Lang said.

It includes provisions for the disposal of certain potentially addictive medications, limits the number of those medications to a 10-day supply, changes Medicaid to cover rehabilitation services and provides at no cost to police departments medicine used to remedy heroin overdoses. Money would also be allocated for education and treatment purposes.

Lang estimates the entire proposal would require about $25 million. He said he thought the program was worth it, but acknowledged the state faces tough fiscal times and may need new revenue streams to fund the initiative.

* The pricetag is an issue

“Heroin is a huge problem but the budget is very tight this year also,” said Rep. Patti Bellock, House Republicans’ point person on the Medicaid health program for the poor. “I would try to look at cost effective ways of doing things.”

* And it steps on some interest group toes

Lang acknowledged that portions of the legislation -including limiting painkiller prescriptions and requiring pharmacies to serve as prescription “take back” sites - could be opposed by the powerful pharmaceutical and hospital lobby in Springfield, because of increased regulation. […]

While Illinois State Medical Society President William McDade said the group was still reviewing the legislation, he pointed to a recent paper released by the group stating support for expanding access to antidotes but urging caution in limiting the number of pills a physician can prescribe.

“In short, there’s going to be a lot of pushback,” Lang said.

* That NARCAN antidote is pretty remarkable

“It’s an antidote that works,” said Lang. “But it’s not an antidote that everybody has.”

The bill requires [and pays for] first responders to carry the product. West Frankfort Police Chief Shawn Talluto supports the idea, as long as officers get the proper training. […]

“We’ve had people who’ve been overdosed,” said Talluto. “Once they bring them into the ambulance and administer that drug, it will bring them back.”

However, the EMTs could be farther away in some of the smaller counties. A police officer may be the first on scene.

“They’re not for sure if that person is overdosed or not, because they’re not a medical person,” said Talluto. “They can administer that drug, and there are no ill effects against an individual if they are not an overdose victim.”

* Also in the bill

• An increase in the number of times an individual can be admitted to drug court, providing people with more potential access to rehab instead of a direct path to prison.

• A mandate that requires all coroners to share information involving death due to drug overdose with Illinois’ Department of Public Health and requires hospitals to report all controlled substance overdoses to the Department of Public Health within 48 hours.

• A measure to improve the Prescription Monitoring Program, which ensures people aren’t “doctor shopping” to receive more opioids than needed, by mandating that pharmacies update dispensing information every day and barring patients from having more than two prescribers in a 30-day period.

• A mandated statewide prescription return program that would allow Illinois residents to return unused medications to any pharmacy for disposal.

The bill’s full text is here.

  13 Comments      


Viewer mail

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* This e-mail was entitled “Chicago Credit Downgrade”…

One step closer to going bankrupt due to the out of line pensions. Are you and Karen Lewis ready to float out to the middle of the lake together in shame when the city goes belly up? Just wait until the whole state goes belly up trying to pay pensions such as our former govenor’s pension that is 11, 000 a month. Oh, and what Quinn paid in for his pension will only last 18 months and then the rest of his life will be funded by taxpayers. Read up on it dope, it is all true. The only people that think this is sustainble are either idiots or biased or both. Pension default is headed our way followed by pension reform approved by the US Supreme court, not the crooked pro union courts in Illinois. Reality trumps all, and reality says the pensions are done. Once the state rejects pension reform Chicago’s credit rating will go to junk and with already too high of taxes there will be nothing left to do but go belly up as the mayor has hinted at over and over now. Enjoy the collapse!

Thoughts?

  87 Comments      


Former “role model” running a “lost” state

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Last Wednesday’s gubernatorial speech to the Illinois Farm Bureau is still generating news. AP

The Republican governor of Illinois has some harsh words for Republican New Jersey Gov. Chris Christie, who campaigned hard for his election last year.

Illinois Gov. Bruce Rauner says New Jersey “is lost.” He said during an Illinois Farm Bureau conference last week his state has the highest property taxes in America after New Jersey. He says he doesn’t want to compete with New Jersey on anything — especially that.

He says the situation in New Jersey is a disaster. He says: “They’re going down the drain, and they ain’t turning it around.”

* My, how times have changed

In September, Christie appeared at a campaign event with Rauner, where the GOP challenger praised Christie as “one of the greatest public servants in America today, and one of the greatest governors in the United States” as well as “a role model for me,” a “superstar” and “a friend of mine.”

  54 Comments      


Today’s number: $41,237

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Lynn Sweet

Less than a day after the Chicago Sun-Times revealed that Rep. Aaron Schock, R-Ill., billed taxpayers for a private plane ride to Chicago for a Bears game, on Monday he repaid the government $1,237 for the trip. […]

With the latest check, Schock in the past weeks has paid $41,237 back to the U.S. Treasury to cover expenses billed to taxpayers. The bulk of the money was to cover costs for the redecoration of his “Downton Abby” House office in Washington.

  43 Comments      


Strong Chicago business growth powering Illinois economy

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* There are tons of state business rankings out there, but many are based on perceptions. Site Selection Magazine looks at hard data

Not too bad for a state which is supposedly in a “death spiral.”

* Chicagoland finished in first place

Frank Sinatra once famously crooned, “My kind of town, Chicago is.” These days he would be joined by a chorus of business and industry executives who have chosen to invest in the Windy City. In fact, 385 companies either expanded or located in Chicago in 2014, resulting in the city being named Site Selection’s Top Metro in the US for the second straight year. The consecutive wins are a pleasant endorsement, says Jeff Malehorn, president and CEO of World Business Chicago.

“Winning back-to-back speaks to the economic leadership and the work being done here in the city and the region,” he says, tipping his cap to Mayor Rahm Emanuel, assorted partner organizations and the business community.

Chicago’s appeal is hardly surprising. The city’s boasts outstanding transportation and logistical assets, including two international airports, a rail hub and seaport, and stands at the crossroads of major Interstates. Chicago and the region are home to a wealth of talent educated at some of the nation’s premier colleges and universities. Foreign companies looking for a US home are drawn to the city’s diverse ethnic population. “Any company outside the US can look to Chicago and see a home,” says Malehorn.

Project highlights for Chicago in 2014 include:

    Valence Health — a health services company based in Chicago adding 500 jobs over the next five years;
    Yelp — the online review and advertising site based in San Francisco, Calif., is opening an office in Chicago and plans to hire 300 employees;
    Braintree — the global payments platform expanded into a 65,000-sq.-ft. (6,000-sq.-m.) headquarters on the eighth floor of the Merchandise Mart. The company is adding 360 new jobs by 2017.
    ADM — the food services company opened its new global headquarters in downtown Chicago in August 2014.

But no other Illinois city cracked the top ten in rankings for smaller towns.

* Meanwhile

For all of the positive national press Indiana, Kentucky and Ohio seem to receive on a regular basis, a recent breakdown of the Gallup-Healthways 2014 Well-Being Index makes the region look less appealing.

Analyzed by Yahoo’s 24/7 Wall St. blog , Indiana, Kentucky and Ohio landed among the nation’s 10 most miserable states, according to key measures of the index.

Areas such as poverty, unemployment, obesity, mental health, smoking habits, vaccination and insufficient sleep were highlighted in Yahoo’s ranking.

Indiana fared worse than Ohio, ranking number 3 on the list with a 31.8 percent obesity rate, among other measures.

The full rankings are here. Illinois finished 36th, behind New York, New Jersey and Pennsylvania.

Also, this Illinois Policy Institute study purports to show how high our “global” tax rates are in comparison to surrounding states. But four of the bottom five states (Illinois included) are separated by only half a percentage point.

  47 Comments      


Consequences of a trooper hiring freeze

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* Gov. Bruce Rauner wants to cut $9.2 million from the Illinois State Police’s budget next year, which means no new troopers

The lack of new hires, combined with a number of troopers heading off to retirement, will mean fewer officers patrolling.

That has budget officials projecting a continuing drop in the number of alcohol-related citations handed out by the state police, from more than 16,800 in the fiscal year ending July 1, 2012, to an estimated 12,224 citations in the year ending July 1, 2016.

Despite that decrease, a state police spokesman said public safety for Illinoisans and others on the roads roadways remains a top priority for the governor.

“Given the inherited budget crisis, Governor Rauner faces some extremely tough budgetary challenges,” said Master Sgt. Matthew Boerwinkle.

He added that Rauner’s pick to run the state police, former Chicago Police Department administrator Leo Schmitz, “will utilize strategic enforcement strategies and best practices in order to maximize resources” to protect the lives and property of Illinois citizens.

Discuss.

  56 Comments      


Rauner still on the warpath

Tuesday, Mar 3, 2015 - Posted by Rich Miller

* The governor made two speeches yesterday. One was in Pontiac

“You choose” was the motto of Gov. Bruce Rauner in an address Monday at the Livingston County Courthouse.

From union rules to public employee pensions to term limits for elected officials, Rauner promoted local control in a 15-minute speech that raced through his post-election agenda.

The Republican governor specifically said he does not support the idea of making Illinois a “right-to-work” state — one where unions can’t make employees of a specific business pay union dues — but added certain areas of the state need to function that way for Illinois to attract businesses currently going to neighboring states with “right-to-work” laws.

If the Legislature passes a proposal to allow those areas — which Rauner calls “economic opportunity zones” — he said, “I’m going to Indiana, and I’m getting companies to move to Livingston County.” […]

“The state orders you in how to do your teachers’ pensions, your police officers’, your government workers’,” he said. “You should decide that.”

More from Pontiac

“I want you to have the power to control your future. That’s the key to turning our state around. If you want your teachers to be in the union and pay dues, terrific, have it, keep it. If you don’t, you shouldn’t have to force them to join a union. And you should be able to decide what you collectively bargain with your teacher’s union. You decide. Springfield doesn’t decide. Special interest don’t decide. You decide,” said Governor Bruce Rauner.

* The other speech was in Mundelein

Although Rauner didn’t explain in much detail, he said he plans to introduce 12 bills over the next year that will change the way government works. […]

“I want local voters to take the power over collective bargaining in your schools, municipalities, county and state,” Rauner said. “If you’re happy with status quo, then fine. Keep it. I won’t stop you. But if you want to even the playing field, I’ll stand with you.”

School districts typically cannot survive a teachers strike of 10 days or more, Rauner continued, saying the administrators have little leverage to bargain with.

“I’m not anti-teachers; I just don’t think they should have unlimited power,” Rauner said.

* The governor also refused to take questions from reporters

Rauner posed for photographs with club members but refused to answer questions from reporters after the speech.

“No gaggling,” he told the Daily Herald.

When one reporter asked him about his political agenda while he was buying a Rotary raffle ticket, he asked her if she planned to purchase a ticket and ignored her questions.

  53 Comments      


Economic trouble ahead?

Monday, Mar 2, 2015 - Posted by Rich Miller

* The U of I’s Jorge Chapa takes a look at Illinois’ demographic trends

Sometime in the 2000s, California became a majority-minority state. Sometime in the 2020s, Illinois likely will do the same.

At first glance, it appears majority-minority status is a long way off for Illinois. The latest U.S. Census data show that 63 percent of Illinoisans are non-Latino white, 30 percent are African American and Latino, 5 percent are Asian and 2 percent are Native American.

But the major differences in the age distributions of these groups will accelerate change. Whites are much older than any other racial group. For example, Illinoisans aged 65 or older are 80 percent white, while only 17 percent of these seniors are African American or Latino. In contrast, Latinos and African Americans make up almost 40 percent of the Illinois population under age 25.

This age-race shift was just as pronounced in California — back in the 1980s. Today, Latinos and African Americans make up 45 percent of the Golden State’s population and a majority of the younger age groups. Illinois appears well on its way to joining California — and Texas, New Mexico and Hawaii — as a majority-minority state.

* And that makes him worry about our future if things don’t change soon

As the age-race shift progresses, Latinos and African Americans will make up a much larger proportion of the workforce. For a variety of reasons, to date, neither group has attained the education levels of whites. For example, white adults are more than twice as likely to have graduated college as African Americans or Latinos. Not coincidentally, the per capita income of whites is at least twice that of African Americans and Latinos.

If such differences persist, they will have a significant negative effect on the Illinois economy and state budget.

As white baby boomers age, they will place a tremendous demand on pensions and other senior support programs. If the prime earning population is made up of more minorities, and if they continue to earn less money, the economy will be depressed and government revenue will decline.

The state of Illinois faces a $100 billion shortfall in funding for public pensions and needs tens of billions more for infrastructure, education and other investments. Where will this money come from if a large part of our future workforce has low levels of education and lower earnings?

Discuss.

  56 Comments      


Chicago loses another great

Monday, Mar 2, 2015 - Posted by Rich Miller

* First Ernie and now Minnie

White Sox legend Minnie Minoso died Saturday night in Chicago, the team announced Sunday.

Minoso, whose full name was Saturnino Orestes Armas “Minnie” Minoso Arrieta, was the first black player White Sox history when he debuted with the team on May 1, 1951, the Sox said.

The so-called “Cuban Comet” was a seven-time All-Star who was almost as well known for his post-retirement job an ambassador for the team, interacting with many fans at Sox games at U.S. Cellular Field and at community events.

“Our organization and our city have suffered a heart-breaking loss today,” said Jerry Reinsdorf, chairman of the White Sox. “We have lost our dear friend and a great man. Many tears are falling.”

* Rick Telander

Player after player has said Minoso was the perfect teammate, with a love for the game that bubbled up like a spring.

‘‘When I die, I want to be playing baseball,’’ Minoso once said. ‘‘They don’t bury me without my uniform.’’

It would have been nice, in its way, to see him right there on the green grass of the Sox’ lovely spring-training complex when he took his last breath. And if he’s buried in his No. 9 Sox uniform, so be it.

His accomplishments — he ran the bases like a gazelle, drove in 100 or more runs four times and hit .300 or higher eight times in an era when hitting was hard and steroids were unheard of — make him worthy of special honors. But the equanimity he showed while breaking into a sports world that was foreign and didn’t necessarily want him is the amazing part.

‘‘I know we are all going to go at some time, but I had gotten to the point where I really felt Minnie was going to live forever,’’ Sox chairman Jerry Reinsdorf said. ‘‘I don’t think he ever had an unhappy day. If he did, he never let anyone know he was unhappy. He was always upbeat. He always had a smile. He always had something nice to say to somebody.’’ […]

As new Sox pitcher Jeff Samardzija put it, sadly and succinctly: ‘‘What a great dude.’’

* A bit more background

Born in Cuba, Minoso was the only player ever in professional ball to play in seven different decades, in Cuba, the Negro Leagues, the Majors, in Mexico, and in the Minors. He was an eight-time All Star, and had a lifetime .298 average. He barely missed being elected to the National Baseball Hall of Fame in 2011 and 2014.

That last snub was ridiculous. The man belongs in the Hall.

* More

Minoso’s No. 9 was retired by the Sox in 1983, and his statue was unveiled at U.S. Cellular Field in 2004. He made his major-league debut with the Cleveland Indians in 1949 and was acquired by Sox general manager Frank Lane in a three-team trade two years later. In his first game with the Sox, he homered against the Yankees’ Vic Raschi in his first at-bat.

  29 Comments      


Today’s quotable

Monday, Mar 2, 2015 - Posted by Rich Miller

* Rep. Poe doesn’t look like he’ll be following recent paths out the House door. Just the opposite, in fact

Representative Raymond Poe’s return to Illinois may not be the best news for Governor Bruce Rauner. Poe will be back at work next week after spending three months in Texas receiving treatment for a blood disorder.

And he’s ready to oppose some of the governor’s proposals… including Rauner’s call to move all state workers to the less generous Tier 2 pension system. Poe says he’s also willing to consider additional revenue for the state… so long as the money is used to pay off old bills and make required pension payments.

  36 Comments      


Question of the day

Monday, Mar 2, 2015 - Posted by Rich Miller

* I ran into Tim Butler Friday night at the Tossers’ show in Springfield. Everybody who knows him thinks he’s a solid dude. And if he likes Irish punk, that’s a pretty good start

Republican Party leaders in the 87th District have selected Tim Butler of Springfield to fill former state Rep. Rich Brauer’s vacant seat.

The replacement committee chose Butler at a meeting Saturday afternoon in Springfield. He received a unanimous vote from the GOP chairmen of Sangamon, Tazewell, Logan and Menard counties. Butler is the district chief of staff for Republican U.S. Congressman Rodney Davis of Tayorville.

The committee chose Butler from a pool of 15 hopefuls after it received two late applications by fax on Friday. He was the only candidate formally interviewed.

Dave Bender, Logan County Republican Party chair and head of the committee, said Saturday that Butler’s experience, education and political background gave him the advantage. He said they didn’t discuss specific policies.

* He’s also a big Pearl Jam fan…

* The Question: Caption?

  57 Comments      


*** UPDATED x1 *** A curious little e-mail survey

Monday, Mar 2, 2015 - Posted by Rich Miller

* A subscriber sent me this e-mail today. My mom also received one of these in mid February…

From: DanRutherford@danrutherford.org
Date: March 2, 2015 at 11:36:15 AM CST
To: xxxxxxxxx
Subject: Rutherford Asks You to Weigh in on Taxes some want to raise

Xxxx,

The financial health of our state is my top priority and was as State Treasurer. People have expressed concern that no one asks their opinion or takes it into consideration, especially when it comes to taxes. I am going to change that.

There are those in Springfield who are looking to raise taxes and fees, again. I am NOT a supporter of tax increases or creating new ones. I am posting a survey on my website for you to express your position on this matter.

I am NOT advocating these raises. I am providing this survey as an outlet for you to express yourself. I appreciate you taking time to participate. The link to it is http://danrutherford.org/survey/income-tax/

All information provided is confidential. Results will be posted as a cumulative of those who respond.

If you participate in the survey, you will receive an email letting you know when the results are posted. The cumulative results will be known to the media and public policy makers.

Thank you for your participation.

Sincerely,
Dan Rutherford
Illinois State Treasurer
(2011-2015)

The results are here.

I called Rutherford today and left a message. I’ll let you know if he responds and tell you what he says.

*** UPDATE *** Rutheford just called me back and said, “I’ve been doing this for years.” I asked whether this was any indication of any future political plans and he said, “No, my gosh, no.”

“I’ve only been out of office two months,” said. “I’m taking some time, I’m relaxing, I’m doing some travel… By no means should anyone read into this any future plans.”

He said he has an “extensive database” and this was just a way to use it to test some issues for those who are still in touch.

  23 Comments      


Ploy or not, Chicago has to administer exams

Monday, Mar 2, 2015 - Posted by Rich Miller

* This was inevitable

Reversing its decision to limit a new state standardized test to just 10 percent of Chicago Public Schools students, CPS officials said Monday that with a week to go before the PARCC testing window opens, all CPS students in 3rd through 8th grade will take it.

CPS had tried to buck state regulations for every public school student to take PARCC — the Partnership for the Assessment of Readiness for College and Careers — saying that Illinois’ largest district would instead do another year of pilot testing in about 66 schools. Chicago children lacked the technology and technological skills to take the exam, which is largely given on a computer, officials said.

The state resisted, telling CPS officials repeatedly that the district had to offer the test to all eligible students — or jeopardize the entire state’s federal funding for poor children, which tops $1 billion. The latest warning from the state came Friday in a letter. […]

Some have accused CPS officials of playing politics with the test, appealing to a swath of parents who say CPS tests their kids too much and who were also disenchanted with many of Mayor Rahm Emanuel’s education policies. CPS’ announcement Monday came less than a week after Emanuel was forced into a runoff with Jesus “Chuy” Garcia.

As we’ve discussed before, the feds threatened to withhold all education money from Illinois if the state allowed Chicago to skip the exams. The state held firm and threatened to cut off the city’s money to save its own money. The CS-T report above could be right about this being a political ploy which was only designed to be played out through the first round, which Rahm was supposed to win… and didn’t.

Oops.

* Tribune

(T)he district began an effort to administer the test to just 66 of its more than 600 schools. All schools were still told to prepare for the test, while a district spokesman insisted through late last week that CPS was still pursuing a limited rollout.

But at a sometimes heated hearing last week in Springfield, a CPS official said all district schools have been ordered to prepare for the exam and that all but about two dozen schools are technologically prepared to give the computer-based test.

Still, CPS Chief Accountability Officer John Barker told lawmakers: “We feel like the implementation of PARCC for this year is going to be extremely problematic for our district and others across the state.”

Parent groups and the Chicago Teachers Union have opposed the exam amid broad debate over rigorous Common Core educational standards and so-called high-stakes testing.

  13 Comments      


The master of understatement strikes again

Monday, Mar 2, 2015 - Posted by Rich Miller

* Sigh…


Anyone who compares Chicago to Detroit hasn’t spent any time in Detroit and/or hasn’t looked at that city’s many problems, which have festered for decades upon decades.

If there’s any comparison for Chicago, it might possibly be New York City, which teetered badly in the ’70s and came roaring back because of its sizable built-in advantages.

Detroit is a special case. St. Louis also dealt with massive population loss (for the same sorts of reasons) and poor leadership in the 1960s and 1970s, but it has avoided Detroit’s fate. If you’ve been to STL in the past few years, you know that its revitalization - which still has a ways to go - has been remarkable.

* That said, it’s probably a fairly smart move for Kirk, who won’t have an easy race in 2016

The senator portrays himself as the reasonable moderate in unreasonable Washington, the “bipartisan bridge between two warring tribes,” as he puts it.

It’s a powerful argument, and I wouldn’t dismiss it lightly. “Anybody who thinks it will be easy to beat him is fooling themselves,” says consultant Eric Adelstein, who helmed Alexi Giannoulias’ 2010 race against Kirk. “He’s a very savvy politician.” […]

Problem One for Kirk is Rauner. If organized labor and other Democratic constituencies are looking for a candidate to take it all out on after two years of dealing with the new governor, Kirk is likely to be their top target.

Problem Two is that walking the line between being a moderate sometimes and being a regular Republican at others requires quite a bit of balancing.

“His rhetoric has not been helpful,” says northwest suburban U.S. Rep. Tammy Duckworth, a Democrat who is considering a race against him but has not yet made up her mind. Her reference in part is to an episode in February in which one day Kirk threatened to pile “coffins” outside the doors of Democratic offices if the Department of Homeland Security shut down, but then the next day broke with GOP leadership to urge passage of a funding bill without any anti-immigration-reform riders.

  17 Comments      


AG Madigan’s “top 10″ list

Monday, Mar 2, 2015 - Posted by Rich Miller

* Attorney General Lisa Madigan released her list of top ten consumer complaints in 2014 today…

1. Consumer Debt (mortgage lending, debt collections, credit cards) 3,655
2. Identity Theft (fraudulent credit cards and utility accounts, bank fraud) 2,617
3. Telecommunications (wireless service, local phone service, cable/satellite) 2,162
4. Construction/Home Improvement (remodeling, roofs/gutters) 1,900
5. Motor Vehicles/Used Auto Sales (as-is sales, financing, warranties) 1,305
6. Promotions & Schemes (sweepstakes, pyramid, work-at home scams) 1,199
7. Mail Order (Internet purchases, catalog ordering, television/radio) 868
8. Fraud Against Business (consulting, directories/publications) 762
9. Motor Vehicle/Non-Warranty Repair (collision/body, engines) 608
10. Utilities (electric, natural gas/propane, water/sewer, waste removal) 566

* From a press release…

“Identity theft has long been a top concern for Illinois residents,” Attorney General Madigan said. “But in light of last year’s massive data breaches, it is clearer than ever that much more must be done to protect sensitive data while ensuring that people know when their information has been compromised and what they should do to minimize the damage.”

Madigan’s office received 21,791 complaints in 2014. For the seventh year in a row, consumer debt ranked as the top complaint filed with Madigan’s Consumer Protection Division, with 3,655 complaints involving issues such as mortgage lending, abusive debt collection practices and predatory payday loans. Number two on the list for the seventh year is identity theft, with Madigan’s office receiving 2,671 complaints.

While identity theft has long been a top complaint to the Attorney General’s office, Madigan attributed last year’s ranking to the numerous major data breaches reported in 2014, which many have termed “The Year of the Data Breach.” Madigan’s office is leading multi-state investigations into the data security practices of a number of entities that have suffered breaches, including Target and Neiman Marcus.

To help Illinois residents, Madigan’s office has an Identity Theft Unit and Hotline (1-866-999-5630), run by a team of experts who provide one-on-one assistance to victims of identity theft and data breaches. Since the creation of the hotline, the Attorney General’s office has helped remove more than $27 million worth of fraudulent charges on over 37,000 Illinois consumers’ accounts.

Madigan also has testified before the U.S. Senate and the U.S. House of Representatives in recent years to stress the urgent need for stronger laws to address the epidemic of data breaches nationwide, including her testimony last month on Capitol Hill about the importance of strong data notification laws both at the federal and state levels.

In Illinois, Madigan recently drafted legislation to strengthen the state’s Personal Information Protection Act (PIPA). Originally passed in 2005 at Attorney General Madigan’s direction, PIPA made Illinois among the first states in the country to require entities that suffer a data breach to notify Illinois residents if the breached information included residents’ drivers’ license numbers, social security numbers, or financial account information. Since the law’s enactment, the extent of sensitive information collected about consumers has expanded and the threat of data breaches has increased significantly, necessitating the need to update and strengthen the state’s law.

Madigan’s bill, which is sponsored by Sen. Daniel Biss and Rep. Ann Williams, will expand the type of information that requires a company to notify consumers of a breach, including medical information outside of federal privacy laws, biometric data, geolocation information, sensitive consumer marketing data, contact information when combined with identifying information, and login credentials for online accounts. The bill also requires entities holding sensitive information to take “reasonable” steps to protect the information and requires entities to notify the Attorney General’s office when breaches occur. Madigan said her office would create a website that lists every data breach that affects Illinois to increase awareness among residents.

Discuss.

  11 Comments      


The battle for Willie Wilson

Monday, Mar 2, 2015 - Posted by Rich Miller

* Willie Wilson made an unusual announcement yesterday

The African-American businessman, who was knocked out of the contest in the Feb. 24 primary, says he had private meetings over the weekend with the two candidates who will be on the April 7 ballot: incumbent Rahm Emanuel and Cook County Commissioner Jesus “Chuy” Garcia.

Wilson tells CBS 2’s Dana Kozlov he’s already decided he’ll vote for Garcia. That’s based in part, he says, on his dissatisfaction with public school closings under Emanuel’s administration and also the city’s continued use of red-light cameras.

“My personal vote is for anybody except for this mayor,” Wilson said Sunday.

Still, he said, he could end up publicly endorsing Emanuel, depending on what members of his own community tell him. Wilson insisted his personal vote is separate from who might be best for the city as a whole.

So, what weight would an endorsement carry if he’s actually voting for Garcia?

* From Sneed last week

Sneed hears Gov. Bruce Rauner has called former mayoral candidate Willie Wilson twice to encourage him to endorse Mayor Rahm Emanuel in April’s runoff election.

Rauner and Wilson are expected to meet Saturday. Wilson supported Rauner in his gubernatorial campaign last year, and in turn Rauner appointed him to his transition committee. […]

On Thursday, Wilson announced he was retracting the promise he made on the eve of Election Day that he would endorse Garcia in the event of a runoff.

Wilson said he will consult with his supporters to determine whom he will endorse.

* But

Gov. Bruce Rauner met Saturday with former mayoral candidate Willie Wilson, but the manager of Wilson’s campaign said Rauner did not seek an endorsement for Mayor Rahm Emanuel.

The Rev. Gregory Livingston, Wilson’s campaign manager, also denied a previous report that Rauner called Wilson twice to encourage him to endorse Emanuel in April’s runoff election. […]

Rauner confirmed Sunday that he met with Wilson. But he declined to say what they talked about, and he chuckled when asked about the Emanuel endorsement. […]

Livingston denied that Rauner had called Wilson seeking the endorsement. He said Wilson met with Rauner to discuss budget cuts proposed by the governor that would hurt social service groups.

* And check this out

The ongoing tug-of-war over landing businessman Willie Wilson’s endorsement in the mayoral race took a different turn on Saturday when Wilson met with powerful union leader Tom Balanoff.

Wilson and Balanoff, president of SEIU Local 1 and the state council, had a “productive and friendly meeting,” said Jerry Morrison, a top political operative in the group. Morrison said Wilson reached out to SEIU about having a sit-down meeting. A Wilson representative could not be immediately reached for comment.

SEIU local 1 is likely to make an endorsement in the race in upcoming days, reversing its pledge before the Feb. 24 election to remain neutral. SEIU health care has already been part of a coalition that has backed Garcia.

I’m told Wilson was invited to speak to the union’s executive board this week.

* Along this same front, the mayor’s campaign is pushing hard against Garcia over the city’s presidential library bid…

STATEMENT ON CHUY GARCIA CONTINUING TO JEOPARDIZE COMMUNITY EFFORTS TO BRING THE BARACK OBAMA PRESIDENTIAL LIBRARY TO CHICAGO
Attributable to Steve Mayberry, Emanuel Campaign Spokesman

Huh?

Thirty-six hours ago, Chuy Garcia repeated his opposition to landing the Barack Obama Presidential Library on the South Side. Today’s statement from Garcia doubles down on his opposition to using park land - continuing to jeopardize community leaders’ efforts to bring the library home.

It’s time for Chuy to take a clear stance:

    Does he fully support the existing South Side locations for Barack Obama’s legacy library?
    Will he actively defend the lawsuit that is likely to come from preservationists who do not represent the South Side?
    If he does now support the South Side locations, what is the rationale for the flip flop in the last 36 hours when he told the Chicago Sun Times that “Just because some interests with important connections want it there doesn’t mean it has to go there”?

* And

Emanuel angrily slammed [Gov. Bruce Rauner’s budget] plan, saying, “Do not think you’re gonna do this — not only on the backs of families and children, but on the resources that . . . pay for our police and firefighters and first responders.”

Garcia said he didn’t believe Emanuel and wanted to make sure the public knew the mayor and the governor had a high-flying backstory.

“He and Rauner are good friends,” Garcia said after Emanuel’s comments on the budget. “They apparently share expensive wines together. They talk on a very regular basis. I’m sure the mayor had advanced notice that these cuts were coming down. The mayor should have ensured that the governor wouldn’t have the audacity to even think about draconian cuts.”

Voters’ biggest beef with Emanuel was over closing 50 schools and for his reputation for making decisions unilaterally. So now isn’t the time to be seen hanging out with the governor, whose budget proposes cuts to the CTA and other city entities.

* And

A Chicago polling firm is calling the city’s runoff campaign between Mayor Rahm Emanuel and challenger Jesus “Chuy” Garcia a “dead heat.”

New numbers from Ogden & Fry show Garcia, a member of the Cook County board of commissioners, within reach of the one-term Emanuel. And the firm warned that the Hispanic population under-polls, meaning that population is underrepresented in the data.

“They’re likely dead even,” pollster Tom Swiss said Sunday night.

Ogden & Fry conducted two one-question polls for The Illinois Observer on Wednesday and Saturday. Emanuel had 42.7 percent support in the earlier poll of 1,058 likely voters one day after voters denied Emanuel a second term outright. Garcia had 38.7 percent support in that poll. The margin of error was +/- 3.07 percent.

In the Saturday poll of 979 likely voters, Emanuel had 42.9 percent support to Garcia’s 38.5 percent. The margin of error was +/- 3.2 percent.

Both polls show 18.6 percent of respondents were undecided.

Crosstabs are here.

  49 Comments      


Motorcycle safety spending up while mass transit, Amtrak and DNR cut

Monday, Mar 2, 2015 - Posted by Rich Miller

* The Daily Herald looks at more proposed budget cuts and, in one case, an increase

• Illinois’ Cycle Rider Safety Training Program, which provides free lessons for motorcycle owners and operates a public safety campaign, would get an extra $633,000 under the 2016 budget. The program was allocated $11.2 million in 2015 but is expected to use only $3.6 million this year. Next year’s allocation would be $11.9 million. […]

“Why protect those things and cut services for the disabled?” asked state Rep. Elaine Nekritz, a Northbrook Democrat. “To me, that’s not the right balancing act.” […]

• As the senior population grows, so does the demand for paratransit, the transit service for seniors and people with disabilities. Pace, which runs paratransit in the region, estimates ridership will jump about 5 percent a year. Rauner’s budget recommends dropping $8.5 million from paratransit, but that action is also subject to General Assembly consent. […]

• In 2008, Gov. Rod Blagojevich implemented a free-fares-for-seniors program. Transit agencies sounded the alarm after costs soared. It was scaled back to low-income seniors and disabled riders, and the state kicked in a reimbursement worth about $34 million to Metra, Pace and the CTA in 2014. The subsidy was scaled back to about half that in 2015, and under Rauner’s plan, the remaining $17.5 million would be eliminated in 2016.

The governor is an avid motorcyclist. I could be wrong, but I kinda doubt he’s an avid public transit rider.

* And speaking of transportation

Gov. Bruce Rauner’s proposed state budget would cut 40 percent from Illinois’ funding for Amtrak trains during a time when ridership has been climbing.

Passenger numbers and ticket revenue have grown during the past five years.

The Lincoln Service train between St. Louis and Chicago, for example, saw more than 633,000 passengers during the most recent federal fiscal year. That’s a 25 percent increase from five years earlier.

Ridership on the Illini-Saluki line between Carbondale and Chicago went up 22 percent to nearly 316,000 passengers during the same period. The Illinois Zephyr between Quincy and Chicago saw nearly 215,000 riders in the most recent year, up 6.2 percent from five years earlier.

* And speaking of cuts

Illinois hunters and outdoors enthusiasts see Gov. Bruce Rauner as a potential new ally in Springfield as they eye legislation this session that includes measures to ban the use of drones to track wildlife, allow silencers at gun ranges, expand coyote hunting to crossbows and resurrect a bobcat hunting season.

They’re hoping Rauner, a hunter and fisherman who frequently touts his love of the outdoors, will bring a friendly perspective to natural resource issues and dozens of proposed new laws related to guns and hunting. […]

At the same time, the sportsmen fear the state’s budget crisis will cast a cloud over the management of state parks and agencies that regulate their activities. They are banking on promises they say Rauner made to address problems at the Department of Natural Resources, encouraged by his appointment of former state Rep. Wayne Rosenthal, a fellow hunter and sportsman from Morrisonville, as the new DNR chief.

Under Rauner’s proposed budget for the coming year, the DNR’s operations budget would be reduced by $8 million, with most of the savings coming from managing staffing levels. The budget for conservation police would be reduced by $3 million. Grants that help pay for forest stewardship would drop by $2.1 million.

  48 Comments      


*** UPDATED x1 *** Cancer screening cuts decried

Monday, Mar 2, 2015 - Posted by Rich Miller

* Expect more stories like this one as the news media moves through the governor’s proposed budget

Without the Illinois Breast and Cervical Cancer Program, Janna Sullivan says she almost certainly would have delayed or avoided getting the screening X-ray that found cancer in her right breast and led to successful treatment nearly five years ago. […]

Sullivan joined other women’s health care advocates in criticizing Gov. Bruce Rauner’s proposed 71 percent cut in state funding for the program in the fiscal year that begins July 1. They called on the General Assembly to turn down or soften the proposed $9.8 million reduction.

If put into effect, they said, the new Republican governor’s proposal would lead to almost 50 percent fewer low-income women being screened by the program and longer waiting lists, all resulting in delayed diagnosis of cancer and earlier deaths. […]

The State Journal-Register requested an interview with a member of the Rauner administration. Rauner spokeswoman Catherine Kelly instead responded with an emailed statement: “With the implementation of the Affordable Care Act, women who may have used the program have now migrated to expanded Medicaid or to the Illinois Marketplace where they can find comprehensive health care and not just a stopgap measure.” […]

Despite the Affordable Care Act, the cancer society says more than 192,600 women in Illinois lacked access to cervical cancer screenings in 2014, and more than 80,000 women lacked access to breast cancer screenings — all because of lack of insurance or high out-of-pocket costs in insurance plans.

*** UPDATE *** From this past December

Chicago designer Barbara Bates will design the gown for Illinois’ new first lady, Diana Rauner.

In October, Bates held her annual fundraiser fashion show in which the models are breast cancer survivors. It was also during the closely-contested race for governor.

When Rauner took the microphone it wasn’t for politics. She shared her mother’s battle with breast cancer and promised to call Bates if her husband won the governor’s seat. […]

Bates has been raising money for breast cancer awareness since she was diagnosed in 2006.

  31 Comments      


Rookie mistakes

Monday, Mar 2, 2015 - Posted by Rich Miller

* My Crain’s Chicago Business column

Gov. Bruce Rauner hasn’t been on the job for even two months, and the spring legislative session isn’t scheduled to end until the last day in May. Lots and lots of things can happen between now and then.

But I’d been hearing for a while that House Speaker Michael Madigan already was predicting that the spring legislative session would lapse into overtime and that the Illinois General Assembly could wind up spending the entire summer stuck in Springfield trying to pass a budget and dealing with other issues.

So one evening, I purposely bumped into Madigan, who was sitting in a quiet corner of a Springfield restaurant.

Click here to read the rest before commenting, please.

* And here’s my weekly syndicated newspaper column

A rookie mistake has led to some big problems.

House Speaker Michael Madigan and Senate President John Cullerton both believed that Gov. Bruce Rauner would ask to postpone the scheduled Feb. 18 budget address.

The current fiscal year’s outlook was so incredibly dire (by the Democrats’ own making), that the veteran Democratic leaders figured Rauner would want to first tackle that problem before moving on to the mess in next fiscal year’s budget, which begins July 1.

Rauner declined, declaring that a deadline was a deadline.

He should’ve asked for a delay.

Rauner claimed during his budget address that a deal on the current fiscal year’s problem was just “days away.” Madigan agreed with the governor’s prediction immediately after the speech.

In reality, though, the governor’s address undercut his negotiating stance so badly that Cullerton told Reuters two days later that the negotiations had gone completely off the rails.

The problem is very real and twofold.

First, Democratic legislators were open to giving the governor wide authority to move money around in this fiscal year’s budget to patch the gaping holes that they themselves caused last year when they passed the monster after failing to come to terms with the expiring income tax hike.

But then Rauner revealed that he wanted to do pretty much exactly the same thing in the coming year’s budget as this year’s, and the bitter pill of those cuts woke legislators up to some very harsh realities.

By now, you know the litany. Slashing municipal revenue sharing in half, eliminating a $165 million state heating assistance program funded by utility ratepayers, cutting higher education funding by 31 percent, seriously chopping Medicaid reimbursements to hospitals, pharmacies and nursing homes, not to mention the long list of cuts to relatively tiny social service programs added by individual legislators over the years.

Democrats reacted by saying they might be willing to allow Rauner to do some of that this fiscal year, but letting him do it again next fiscal year would be dangerously close to making those drastic cuts permanent.

Second, Rauner failed to even mention the possibility of new revenues during his address. By law, the governor cannot base a budget proposal on revenues that don’t yet exist under state statute. But there’s nothing in the statute books barring him from at least mentioning a few revenue options that he could live with.

For example, Rauner said repeatedly during the campaign last year that he wanted to eliminate corporate tax loopholes and put forward a modest plan to tax some services. He also adeptly refused to rule out the prospect of raising the income tax a bit before walking it down over four years.

* The Tribune has a story along those same lines

“We still need more information,” said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago. “There certainly have been conversations, but we’re still trying to mine out relevant information.” […]

“I think the easiest thing to do is for the governor to be specific,” [Steve Brown, spokesman for House Speaker Michael Madigan] said. “We haven’t seen a full bill. When the governor provides a full bill, then maybe something can move forward.” […]

Timing for the deal was better before last week’s budget address, when Rauner laid out his agenda for sweeping cuts to programs favored by Democrats, Phelon said.

It was during that speech that Rauner said a deal on the current budget crisis was imminent. Madigan agreed at the time. Negotiations appear to have stalled.

“Once (Democrats) got a picture of how he intends to manage and how he intends to prioritize, that just made it harder for them to grant him a blank check or to grant him expanded authority to do the same thing in this current year,” Phelon said.

  62 Comments      


Today’s number: 2

Monday, Mar 2, 2015 - Posted by Rich Miller

* Wow

Late-arriving absentee ballots have moved Northwest Side Ald. Deb Mell above the benchmark she needs to avoid a runoff — at least for the moment, according to city election officials.

When polls closed Tuesday, Mell sat just below the 50 percent-plus-one vote number required to win outright the Northwest Side 33rd Ward City Council seat her family has controlled since 1975. But Mell has received the vast majority of the votes on absentee ballots that arrived at the Chicago Board of Elections since Election Day, pushing her above the threshold, according to James Allen, spokesman for the Chicago Board of Election Commissioners.

Unofficial results on Friday put Mell at 4,037 votes — or 50.03 percent of the 8,069 ballots cast in the three-way 33rd Ward race. That’s two votes more than the 4,035 needed to avoid the runoff election April 7 against Tim Meegan, a high school teacher backed by the Chicago Teachers Union.

That Tribune story was published late Friday afternoon. About an hour earlier, this e-mail was sent by the city’s election board…

We received more than 1,200 ballots in the mail today from across the city.

That amount, plus the possibility of more ballots arriving Saturday and Monday, will mean that we will be processing absentee ballots again on Tues., March 3, in addition to Tues., March 10.

* DNA Info

“I’m a little disappointed,” Meegan said of the latest turn of events.

His campaign would be filing for a recount, which is allowable up to five days after an election.

The deadline for contesting results falls on Sunday, and on Monday the Board of Elections is closed for Pulaski Day, so candidates have until Tuesday to request a recount, Allen said.

“This is all new territory,” said Meegan, who remains committed to his campaign.

“If we’re in the run-off, we can win it,” he said.

  13 Comments      


Two more problems for Aaron Schock

Monday, Mar 2, 2015 - Posted by Rich Miller

* Lynn Sweet has the latest in an ever-continuing drip, drip drip campaign

Rep. Aaron Schock, R-Ill., used taxpayer money to pay for a private plane to travel from Peoria to Chicago for the Bears-Vikings game on Nov. 16, the Chicago Sun-Times has learned.

And a Sun-Times examination of House disbursement records and campaign finance reports suggests that Schock used taxpayer money to help underwrite a September trip to New York, where a political action committee he controls spent $3,000 for Global Citizen Festival concert tickets.

The use of $20,855 in taxpayer money for the Chicago and New York trips will raise more legal and ethical issues for Schock. […]

Schock chartered an aircraft to take him from Manassas Regional Airport in Virginia, about 30 miles from the Capitol, to Peoria on Friday, Nov. 14. The return trip to Reagan National Airport was set for the next Monday. The side trip to Chicago was tucked in between, on Sunday, according to the pilot who flew the plane.

The newest official House disbursement records show a November payment of $10,802 to pilot Keith Siilats for “commercial transportation.”

Siilats told me in an interview on Sunday, “That whole weekend was paid by the government.” The only invoice Siilats said he submitted was for government payment.

Go read the whole thing.

  63 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Monday, Mar 2, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


Reader comments closed for the weekend

Friday, Feb 27, 2015 - Posted by Rich Miller

* These guys are in Springfield tonight, so you’ll know where to find me

Beautiful in go-go boots, she waltzes to the bar

  Comments Off      


Protected: SUBSCRIBERS ONLY - More on the state grant suspensions

Friday, Feb 27, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


Protected: SUBSCRIBERS ONLY - Fundraiser/event list

Friday, Feb 27, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


How can we miss you if you won’t go away?

Friday, Feb 27, 2015 - Posted by Rich Miller

* AP

Former Gov. Pat Quinn says pushing consumer rights and organizing are in his immediate future during his first public appearance since leaving office.

Quinn addressed students and lawyers Friday at a Loyola University School of Law panel on forced arbitration.

The Democrat later told reporters that Republican Gov. Bruce Rauner’s proposed budget is the “worst” he’s seen in Illinois history because it’s unfair to “everyday people.”

There wouldn’t have been a problem in the first place if A) Quinn hadn’t made the income tax hike temporary, or had at least ramped it down in a more responsible manner; or B) Quinn hadn’t signed this fiscal year’s horrifically irresponsible budget into law.

  32 Comments      


Question of the day

Friday, Feb 27, 2015 - Posted by Rich Miller

* Stu Ellis at the Decatur Herald and Review writes about Gov. Bruce Rauner’s proposed elimination of the $1.8 million funding line for agriculture education

The elimination of that line item in his proposed budget apparently was made because his staff could see no need for agricultural education, despite the recommendation by the State Board of Education that the line item be raised to $3 million in the next fiscal year. So called “shared sacrifice” might diminish $1.8 million by several thousand, but it should not lead to total elimination.

The $1.8 million line item stimulates over $11.8 million in net earnings of agriculture education students in their yearly, work-based learning and agri-science projects. It generates another $2.1 million in partial matches from a statewide partnership. It spawns $1.7. million in funds and volunteer hours generated for local school vocational-agriculture programs. It pays for curriculum development that is used by over 50 percent of vocational agriculture teachers nationally. And it provides a pipeline for students to enter agricultural careers.

Elimination of the funds would mean deterioration of the agriculture education network which provides the structure to one of the top vocational programs in the nation. Data collection of programs, teacher information and student achievement will be lost. Professional education opportunities for vocational-agriculture teachers would be eliminated. Program growth would stagnate and would no longer provide employees for an important part of the Illinois economy.

The loss of the agriculture education line item would eliminate $620,000 in incentive grants that go to 321 local agriculture programs taught by 381 teachers at the secondary level. That money provides local programs with funds to meet goals for success and continuation of their program. While a local vocational agriculture program may not close in a school district due to the loss of the incentive grants, it would negatively affect program quality and the number of programs would deteriorate and decline.

* This will have a big impact on local FFA programs

First-year Flanagan-Cornell FFA Advisor Jessica Collins has a reason to be nervous about the upcoming annual auction on March 7. That’s because Gov. Bruce Rauner recently submitted his proposal for the 2016 fiscal budget for Illinois.

Among the proposed budget cuts is the elimination of crucial agricultural education funding. When the Flanagan-Cornell FFA program says it relies on the success of these auctions to fund future activities, nothing could be more truthful.

* From the Twitters…


* The Question: Caption?

  78 Comments      


Supreme Court justice ordered to testify

Friday, Feb 27, 2015 - Posted by Rich Miller

* Crain’s

Illinois Supreme Court Justice Lloyd Karmeier has been ordered to give testimony in a civil case that accuses State Farm Insurance of fraudulently concealing the extent of its involvement in his campaign.

Karmeier and State Farm had fought against requiring the justice to give a deposition in the case, which was filed in 2012 in U.S. District Court in East St. Louis and seeks $8 billion in damages. But Judge David Herndon rejected those arguments.

The plaintiffs can question Karmeier under oath “as to his knowledge concerning all aspects of his campaign including his decision-making process for running for the position in the first place and the persons with whom he consulted to make that decision, how the campaign was managed, how the campaign was financed, who was involved in the decision-making and strategy of the campaign,” Herndon ruled yesterday. “Without allowing the inquiry, there will never be light on the facts of this case and the federal rules will be thwarted.” […]

Herndon also granted the plaintiffs’ request to depose an attorney for State Farm, Robert Schultz, who served as a member of the judicial evaluation committee for the Illinois State Bar Association when Karmeier was elected to the Illinois high court in 2004. Schultz now works for State Farm.

Karmeier’s opponent in the election had written a lower court opinion upholding a $1.05 billion verdict against State Farm. After winning election, Karmeier cast the crucial fourth deciding vote to overturn that decision.

There’s whole a lot of smoke in this case, but nobody has yet even come close to proving that a fire actually exists. It’ll sure be interesting to see what he says under oath.

  21 Comments      


Chicago downgraded

Friday, Feb 27, 2015 - Posted by Rich Miller

* Greg Hinz

In a blow to Mayor Rahm Emanuel, one of the major bond-rating services today downgraded Chicago’s credit to just two levels above junk, saying the city has not been able to adequately control the soaring cost of worker pensions.

In a statement, Moody’s Investors Service moved city debt to Baa2 from Baa1, and kept the city on a negative outlook. The latter means that there is a likelihood, though not a certainty, that its credit will be further downgraded in coming months.

In response, Emanuel’s office today noted that two other ratings services, Fitch and S&P, have affirmed the city’s credit rating, and characterized the Moody’s view as an outlier “out of step with the other rating agencies, (and) ignoring the progress that has been achieved.”

But the action adds another element of uncertainty for the city and Emanuel just days after the mayor was forced into an April 7 runoff election for a new term.

Moody’s, which also lowered its rating on some sales-tax and water debt, said it acted because of “expected growth in Chicago’s already highly elevated unfunded pension liabilities and continued growth in costs to service those liabilities.”

* Tribune

Even if recent state pension changes survive a court challenge, the ratings statement said, “we expect Chicago’s unfunded pension liabilities — and the costs of servicing those liabilities — to continue to grow, placing significant strain on the city’s financial operations.”

The drop, to a rating of Baa2, could drive up borrowing costs for the city and cause problems with some of Chicago’s current interest-rate swap contracts.

Those problems with the swap contracts could be severe.

* To the Moody’s report

WHAT COULD MAKE THE RATINGS GO DOWN

• Determination by the IL Supreme Court that the State of Illinois’s pension reform package is unconstitutional, which, depending on the court’s rationale, could increase the risk that the city’s own pension reform would be overturned

• Determination by a court of law that the city’s reform of its Municipal and Laborer plans is unconstitutional

• Continued growth in the city’s unfunded pension liabilities

• Growth in direct and overlapping debt

• Narrowing of the city’s financial reserves

Those first three are very likely. That last one is likely, too, if the state takes Chicago’s income tax revenue sharing cash.

Budget proposals have consequences, folks.

  59 Comments      


Today’s number: 4-6 weeks

Friday, Feb 27, 2015 - Posted by Rich Miller

* Sun-Times

Derrick Rose had surgery Friday morning to repair the torn medial meniscus in his right knee. The Bulls said the surgery went well and Rose walked out after the procedure.

Bulls GM Gar Forman said Rose is expected to return in four to six weeks. […]

Unlike his previous two surgeries, Rose was “full weight-bearing” after this one, meaning rehab will begin Saturday.

Many folks thought he was gone forever after his latest injury.

  34 Comments      


Protected: SUBSCRIBERS ONLY - Human service cuts and state grant suspensions

Friday, Feb 27, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


Stating the obvious

Friday, Feb 27, 2015 - Posted by Rich Miller

* A Bloomberg story quotes some Illinois’ “debt investors” as saying the state can’t rely solely on budget cuts alone

“I’m very skeptical that his budget will be able to achieve balance by doing what he’s doing,” said Jim Schwartz, head of the municipal credit research team at New York-based BlackRock, which oversees $116 billion in munis. “The best way from his view is let’s cut spending, and I just look at it as very aggressive.” […]

“I don’t think they’re going to be able to get to the level that they need to with budget cuts alone,” said Dan Heckman, a senior fixed-income strategist in Kansas City at U.S. Bank Wealth Management, which oversees $126 billion. […]

Moody’s Investors Service said in a Feb. 24 report that the state’s political landscape will make it tough to enact the governor’s proposals without raising revenue. […]

“There’s going to have to be some balance between revenue enhancements and cutbacks on spending,” said Heckman, whose firm holds less Illinois debt than indicated in its benchmark. […]

“The feeling out there is that they have a lot of room to raise taxes, and theoretically they could,” said Peter Hayes, head of munis at BlackRock. “Eventually there will be some moment, some day of reckoning which makes everybody wake up and say we really need to pass something.”

* Related…

* $167M cuts to DCFS include major foster care program

* Home services program loses millions in Rauner’s proposal

* Social-service agencies fear painful cuts under Gov. Bruce Rauner’s budget plan

* Gov. Rauner proposes hard-hitting budget cuts - University administration prepares response to proposal

* Western to ‘wait and see’ over Rauner’s budget proposal

* Supporting Efforts to Advance Adult Dental Coverage and Access in Medicaid

  41 Comments      


*** UPDATED x1 - Double-down *** They really make this too easy…

Friday, Feb 27, 2015 - Posted by Rich Miller

* The same editorial board which defended candidate Bruce Rauner’s refusal to talk specifics about his magic beans budget ideas during the campaign, and has since refused to write about specifics of Gov. Bruce Rauner’s proposed budget cuts, is now demanding to know specifics about Chuy Garcia’s budget ideas.

* And that very same editorial board, which was so unconcerned about specifics during the 2014 campaign and the FY 2016 budget, is now demanding that Mayor Rahm Emanuel get specific and “tell us the whole truth” about how he’ll keep the city’s finances on an even keel.

Care to guess which editorial board that is?

*** UPDATE *** The editorial board doubled down this afternoon with a little ditty entitled: “Emanuel, Garcia: Tell voters how you’ll fix CPS”

We’ve been waiting — along with voters — to hear mayoral candidates tackle the budget issue head on, with specifics. […]

The campaign debate so far has focused on hot-button education issues — charter schools, the closing of those elementary schools, student standardized testing and whether to elect a Chicago school board. All of those are important. But none matters as much as the looming budget crisis.

Hilarious.

  60 Comments      


Crain’s: “Market-based” solution is rigged

Friday, Feb 27, 2015 - Posted by Rich Miller

* Exelon argues that its bill to keep its nuke plants open is a “market based” solution. But is it? An analysis by Crain’s is highly skeptical

The measure would slap an electric-bill surcharge of about $2 a month on the average household served by Commonwealth Edison and Ameren Illinois, creating more than $300 million of extra annual revenue to be distributed over the next five years to low-carbon energy sources. Those include obvious examples such as wind and solar—but also nuclear energy, which, unlike coal or natural gas, emits no carbon.

The legislation effectively would funnel most if not all of the $300 million to Exelon’s Illinois nuclear plants, the largest state fleet in the nation. But Chicago-based Exelon, which also owns ComEd, went out of its way to argue that the bill allows low-carbon sources of all types to bid for the special credits to be made available via an auction conducted by the Illinois Power Agency. […]

But the bill places such great limits on bidders other than Exelon’s Illinois nukes that Exelon is highly likely to win most if not all of the credits.

For example, generators with contracts of five years or longer to sell their output can’t bid. That keeps out most existing wind farms and utility-scale solar, which have such contracts. For those few wind farms that sell into the wholesale markets, they’re only eligible if they don’t already have renewable energy credit from Illinois or some other state. That’s a relatively small pool of projects, renewable industry representatives say.

The bill also limits eligible hydro producers to no more than 3 megawatts. The capacity of Exelon’s Illinois plants collectively is more than 11,600 megawatts. There are no nearby clean coal plants to speak of, so those won’t be bidding. […]

Once again, as it has before, Exelon refused to say whether its Illinois fleet as a whole is profitable. (In an analysis, Crain’s showed previously that it is.)

Discuss.

  28 Comments      


*** UPDATED x1 *** Even more problems for Schock

Friday, Feb 27, 2015 - Posted by Rich Miller

* Drip, drip, drip

Rep. Aaron Schock attended dinner and drinks in 2011 at Windsor Castle, Buckingham Palace and at a swank nightclub London — and never disclosed receiving a single gift on his financial disclosure form.

This past September, the Illinois Republican held a golf fundraiser — the “Aaron Schock Golf Classic” — at Anne Arundell Mannor in Maryland, but never reported a payment for use of the golf course and facilities on his campaign finance forms. […]

On the multi-day trip to London in June 2011, Schock attended several elaborate dinners as the guest of a person invited by the Prince of Wales Foundation. Guests were also given a customized china plate with a personalized inscription on the last day of the festivities.

Schock cannot accept a gift — including food and beverage — exceeding $50 from any source. There is an exception for close personal friends. He would have had to get approval in writing from the House Ethics Committee for any gifts worth more than $250 from personal friends, and he would have had to report accepting a gift on his annual financial disclosure forms. […]

“It is the PAC’s understanding that all required expenses in connection with this event have been paid,” a spokesman for Schock said in a statement. “However, if it is determined at the conclusion of the review that any required expenses remain unpaid, the PAC will make prompt payment. Congressman Schock takes his compliance responsibilities seriously which is why he has initiated a proactive review of this issue and others.”

Schock’s trip to London is also part of his internal audit. His office is reviewing compliance procedures in his official office, campaign and leadership PACs, it has said.

* And if you missed it the other night, click here for the Daily Show’s take.

*** UPDATE *** What kind of a guy bills taxpayers for a $40,000 job to make his office look like Downton Abbey? Sheesh

Illinois Rep. Aaron Schock repaid $40,000 from his personal checking account for redecorations to his congressional office in the style of the TV show “Downton Abbey,” according to financial records reviewed by The Associated Press.

Schock paid $35,000 earlier this month to the owner of the Illinois decorating firm Euro Trash, and $5,000 more on Thursday, the records showed. His official House expense account had previously paid the group for its services.

  129 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Hexaware: Your Globally Local IT Services Partner
* SB 328: Separating Lies From Truth
* When RETAIL Succeeds, Illinois Succeeds
* SB 328 Puts Illinois’s Economy At Risk
* SB 328: Separating Lies From Truth
* Hexaware: Your Globally Local IT Services Partner
* SB 328 Puts Illinois’s Economy At Risk
* When RETAIL Succeeds, Illinois Succeeds
* Reader comments closed for the next week
* Isabel’s afternoon roundup
* SUBSCRIBERS ONLY - Campaign updates
* Three-quarters of OEIG investigations into Paycheck Protection Program abuses resulted in misconduct findings
* SB 328 Puts Illinois’s Economy At Risk
* Sen. Dale Fowler honors term limit pledge, won’t seek reelection; Rep. Paul Jacobs launches bid for 59th Senate seat
* Hexaware: Your Globally Local IT Services Partner
* Pritzker to meet with Texas Dems as Trump urges GOP remaps (Updated)
* SB 328: Separating Lies From Truth
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today's edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2025
June 2025
May 2025
April 2025
March 2025
February 2025
January 2025
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller