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Dart: Rauner budget cuts “alarming,” lack “financial sense”

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Cook County Sheriff Tom Dart had this letter delivered to the governor’s office yesterday evening…

Illinois is in serious financial distress and we owe the citizens of this state an honest conversation about how we address the crisis, both from a fiscal standpoint and a moral one. Like many, I welcome a fresh look at how taxpayer dollars are being used and abused in all levels of government.

Yet, your budget proposals are alarming, not only for their insensitivity to the millions of lives they impact, but also for their lack of financial sense. In the face of jaw-dropping budget shortfalls, politicians for years have looked to cut state services that are crucial to large segments of our population who lack the cash and the lobbyists to fight back.

After just a month in office, you are proposing more of the same. Cutting already strained mental health programs; alcoholism and substance abuse treatment programs; criminal justice services and youth services does nothing to make Illinois a place people want to live. Slashing funding for our most vulnerable children through DCFS and kicking 18-year-old wards to the curb with no transitional support does nothing to right our ship.

Morality aside, such tactics – which are scaring hundreds of thousands of people and children across this state – are simply bad budgeting. When mental health and substance abuse programs are shuttered, where do you think the people needing that care end up? When a DCFS ward – even the ward’s child in some cases – is sent into the world without adequate help, what do you think will happen to that teenager on the street?

We know, all too often, they end up in the most costly government system of all, the criminal justice system. Once there, costs for prosecution and incarceration start racking up every minute, every day, every month.

You know this too. Your own budget calls for spending more money to reduce recidivism to save the state prison system money. You recently announced an ambitious goal to lower the state prison population by 25% in the next 10 years. Yet, cutting social safety net programs will only widen the pipeline to state prison for the most vulnerable members of our society.

Knowing your business acumen, I expected a budget proposal that was not so penny wise and pound foolish with people’s lives. Please reconsider this short-sighted proposal.

  66 Comments      


It’s about the unions, governor, not the tycoon

Thursday, Feb 19, 2015 - Posted by Rich Miller

* President Obama is in Chicago to designate the Pullman Historic District as a national monument. It’s Chicago’s first national park. From the pool report…

THen at 2:25 [the President] gathered with officials, including Emanuel, and signed the official documents presumably designating the monuments.

Rauner tried to make his way onstage for the signing but was left at the rope-line.

Asked afterwards about not being invited onstage, Rauner just smiled and walked away.

Hmm. Quite a large number of other folks made it to the stage, including GOP US Sen. Mark Kirk. Obama even helped Kirk to the stage.

* So perhaps this is why the governor was rebuffed?…


Some helpful background on the Pullman strike is here.

  126 Comments      


Governing ain’t easy

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Last year, candidate Bruce Rauner’s “Bring Back Blueprint” promised $500 million in savings by reforming CMS.

But Gov. Rauner’s proposed budget contains a $22 million, 97 percent increase for CMS’ operational, grants and awards lines.

* Meanwhile, here’s candidate Bruce Rauner last October

“(W)hat I am advocating and always have and always will is we’ve got to restructure Medicaid in Illinois. It is filled with waste and fraud.”

Also from last October

“The waste and fraud under our Medicaid program is out of control.”

That same “Bring Back Blueprint” mentioned above claimed Rauner would save $250 million by implementing Medicaid verification reform.

His proposed budget produces nowhere near those savings

Rauner proposes saving $75 million by being more aggressive in determining eligibility and by adding new efforts to “detect and prevent fraudulent and abusive billing practices by providers,” according to the budget document.

  34 Comments      


Spiking, living large and the Supremes

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Riopell writes about a little-noticed Bruce Rauner proposal from yesterday

Rauner wants to change a state law that makes local school districts pay penalties if they give big end-of-career pay raises to teachers and administrators.

School districts can still give the pay raises, but the state says local officials have to pay for the pension consequences.

Now, school districts have to pay penalties if they give late-career pay raises of more than 6 percent. Rauner wants to enact penalties for those pay raises if they’re greater than the rate of inflation, which lately has been around 1 percent. […]

Most districts avoid big penalties, even writing in a 6 percent pay raise cap into their contracts with teachers. But 1 percent is a lot lower, of course.

“While a so-called reform was enacted in an effort to prevent pension spiking, teacher contracts in recent years have made the six percent cap a floor rather than a ceiling,” Rauner spokesman Lance Trover said.

Whew.

* Meanwhile

The ABC7 I-Team has been looking into a mind-boggling statement made by the Gov. Bruce Rauner on Wednesday.

“One out of every four dollars taken from taxpayers by the state goes into a system that is giving more than 11,000 government retirees tax-free, six-figure pensions worth as much as, in one case, $450,000 per year,” Rauner said. […]

The person receiving a $450,000 pension went unnamed, but the I-Team has learned he is a man named Tapas Das Gupta, a doctor retired from University of Illinois Chicago Hospital. Currently taxpayers are footing his annual pension of $452, 843, but what the governor didn’t mention is that the No. 2 top pensioner also makes about that much. […]

Runner-up top state pensioner is Dr. Edward Abraham, a UIC orthopedic surgeon educated in Beruit, Lebanon, who retired at age 66 and receives a $439,000 a year pension.

Even as he receives that pension, Dr. Abraham has been hired back here at UIC part-time. It’s double dipping that is perfectly legal in Illinois and that other state pensioners take advantage of.

* And

The Illinois Supreme Court has announced it will hear oral arguments in the state’s landmark pension-overhaul case on March 11.

Arguments will begin at 2:30 p.m. in the high court chamber in downtown Springfield.

  56 Comments      


Illinois vs. Indiana – Workers’ Compensation

Thursday, Feb 19, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Illinois is often compared to our neighbor Indiana when it comes to workers’ compensation costs for businesses. Unfortunately, it is not a fair or accurate comparison. Wages are the main driving factor when it comes to workers’ compensation costs. Workers’ compensation benefits (non-medical) are based on a worker’s average weekly wage. On average, Indiana pays its workers 27 percent less than Illinois. Illinois ranks 8th in the country for average weekly wages, while Indiana ranks 35th. Because workers’ compensation replaces lost wages, lower wages in Indiana naturally creates lower workers’ compensation costs.

Indiana businesses may have lower workers’ compensation costs for employers; however workers injured on the job have meager options for their health care under Indiana’s workers’ compensation laws. In addition, Indiana’s early return to work program often forces injured workers back to work sooner than they should be and often leads to re-injury or new injuries.

Workers in Illinois deserve better. A fair and reasonable workers’ compensation system in Illinois helps injured workers get back on their feet and back to work.
For more information on workers’ compensation, click here.

  Comments Off      


Today’s quotable

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Illinois State University President Larry Dietz reacts to the governor’s proposed 31 percent cut to his school’s state funding

“Some areas that could be affected include tuition – as set by our Board of Trustees – scholarships, faculty and staff compensation, hiring decisions and maintenance projects.

“Throughout the process, I want to assure you that protecting the jobs of our outstanding faculty and staff is our highest priority. We will do everything we can to prevent measures such as layoffs and forced furlough days.”

So, tuition and scholarships are on the table then?

I believe it’s imperative that we strengthen our university systems. But this insistence on protecting the bureaucracy to the detriment of the students is preposterous.

  58 Comments      


Sen. Kirk and Mrs. Rauner to tout Gov. Rauner funding hike

Thursday, Feb 19, 2015 - Posted by Rich Miller

* From a press release…

[US Sen. Mark Kirk], Diana Rauner To Highlight Success of Early Childhood Education Programs in Englewood

Participating Children were 35% Less Likely to Visit an Emergency Room

Every Dollar Spent Provides Return Investment of $5.70

* It’s probably no accident that Gov. Rauner proposed increasing early childhood education funding yesterday by $25 million. From a Wednesday press release by Illinois Action for Children…

Governor Rauner should be applauded for making early childhood a clear priority today. As the Governor said in his address, every dollar invested today in early childhood saves us more than $7 in the future.

It is a positive sign that the Governor has proposed to increase Pre-K investments and maintain child care funding in FY16, while also signaling that he and the General Assembly are negotiating to reach an agreement to fill the current $300 million shortfall facing the Child Care Assistance Program. Ending that crisis now must be the highest priority of our elected officials.

But much of that increase will be paid for by zeroing out all state funding for Advance Placement, Arts/Foreign Language, Agricultural Education, After School Matters, the Parent Mentoring Program, Lowest Performing Schools, funding to East St. Louis SD 189, Regional Safe Schools, Children’s Mental Health Partnership, National Board Certified Teachers, Tax Equivalency Grants, Teach for America, and Targeted Initiatives.

I wonder what Sen. Kirk and Mrs. Rauner think about those cuts?

* Greg Hinz has additional thoughts

The advisory notes—correctly—that Diana Rauner heads the Ounce of Prevention Fund, which has done some very nice work trying to help poor families. It says that the federal Maternal, Infant and Early Childhood Visiting Program has provided assistance to young mothers that not only makes childhood injuries less likely but has cut teen pregnancy rates. […]

I just have to wonder whether such needy folks might have a harder time of it if hospitals are less willing to provide treatment in the future because the governor has cut reimbursement rates. Or whether the fewer government-funded slots that will be available in alcohol and drug treatment programs might make a difference in their lives.

  22 Comments      


Question of the day

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Gov. Bruce Rauner visited Hormel Foods in Rochelle today

* The Question: Caption?

  131 Comments      


Stop the satellite TV tax

Thursday, Feb 19, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

The cable industry is asking lawmakers to place a NEW 5% tax on satellite TV service. The satellite tax is not about fairness, equity or parity – it’s a tax increase on the 1.3 million Illinois families and businesses who subscribe to satellite TV.

Satellite Tax Will Hurt Illinois Families and Small Businesses

    • Satellite TV subscribers will see their monthly bills go up 5%.
    • This tax will impact every bar, restaurant and hotel that subscribes to satellite TV service, which will translate into higher prices, decreased revenues, and fewer jobs.
    • Rural Illinois has no choice: In many parts of Illinois, cable refuses to provide TV service to rural communities. Satellite TV is their only option.

Satellite Tax Is Not About Parity or Fairness

    • Cable’s claim that this discriminatory tax is justified because satellite TV doesn’t pay local franchise fees could not be further from the truth. Cable pays those fees to local towns and cities in exchange for the right to bury cables in the public rights of way—a right that cable companies value in the tens of billions of dollars in their SEC filings.
    • Satellite companies don’t pay franchise fees for one simple reason: We use satellites—unlike cable, we don’t need to dig up streets and sidewalks to deliver our TV service.
    • Making satellite subscribers pay franchise fees—or, in this case, an equivalent amount in taxes—would be like taxing the air. It’s no different than making airline passengers pay a fee for laying railroad tracks. They don’t use; they shouldn’t have to pay for it.

Tell Your Lawmakers to Stop The Satellite TV Tax

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The right way and the wrong way

Thursday, Feb 19, 2015 - Posted by Rich Miller

* The response from the Senate Black Caucus to Gov. Bruce Rauner’s budget proposal was mostly predictable, but on point

“Yes, government leaders in positions of power hold many responsibilities, one of which is ensuring a thriving private sector, attractive to business and industry – but not to be forgotten are the awesome responsibilities of protecting and serving the people.” – State Senator Kimberly Lightford (D-Maywood 4th)

“Cutting services that uplift communities are not only a slap in the face, but it’s an attack on the lower and middle class. This irresponsible, smoke-and-mirrors budget balances our state’s debts on the backs of the neediest, but refuses to close corporate loopholes.” – State Senator Donne E. Trotter (D-Chicago 17th)

“I am outraged that the governor is knocking middle and lower-class families down when they are already facing tough economic circumstances. He’s putting lives and livelihoods in jeopardy by treating our state’s most vulnerable people like burdens.” – State Senator Mattie Hunter (D-Chicago 3rd)

“This proposed budget would close doors of opportunity for youth in disadvantaged communities throughout the state.

“By cutting funding for anti-violence initiatives and services for wards of the state who face homelessness and exploitation when they turn 18, this administration signals that it is giving up on the tremendous potential within our young people struggling to emerge from difficult circumstances.

“And with one-third of higher education funding eliminated in the Rauner budget, young men and women who beat the odds and make it to college would face higher tuition, less assistance and fewer resources.” – State Senator Jacqueline Y. Collins (D-Chicago 16th)

* Sen. Gary Forby also got in some licks…

“It’s pretty cold of the governor to propose cuts to energy cost assistance at a time when working families are struggling to deal with spikes in the utility bills.”

“This budget is filled with cut after cut after cut,” Forby continued. “Tuition costs are going to go up putting more of the burden on our students when they are trying to prepare themselves for the workforce.”

* As did Sen. Heather Steans…

In hearings starting next month, my colleagues and I will thoroughly discuss each agency’s needs and where savings can be achieved. But the numbers in today’s proposal simply don’t add up. I look forward to working with the governor’s office on a balanced budget that is realistic and fulfills our responsibilities to our most vulnerable residents.

* And Sen. Daniel Biss…

(T)he Governor’s proposal singles out working families and the most vulnerable among us for the deepest cuts, while asking nothing of the rich. It is simply unconscionable to slash Medicaid, foster care, and much of the rest of our safety net while leaving the most fortunate among us untouched.

* Sen. Trotter and others also did a credible job during WBEZ’s extensive coverage. But then Donne reverted to one of his bad habits

Sen. Donne Trotter said Wednesday Rauner has proposed a “slash-and-burn budget.” The Chicago Democrat says Rauner acted “as if he was an ISIS warrior fighting a battle, not against the state of Illinois but against the people of Illinois.”

Rauner spokesman Lance Trover says the administration welcomes dialogue with legislators. But he’s urging lawmakers “to refrain from over the top rhetoric that demeans the process.”

Trover is right, Trotter is wrong.

What the Senator did was distract attention away from the governor’s cuts and put it onto himself.

C’mon, man.

  32 Comments      


When spending less costs more

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Tribune

Gov. Bruce Rauner’s proposed $1.47 billion in Medicaid cuts includes reductions in dental services, mental health care and other coverage. But some legislators and patient advocates say the targeted services don’t just help keep people healthy — they also save the state money. […]

“We found, for example, that if you cut people’s dental services and then they don’t go to a dentist, they end up going to an emergency room and it costs us more money,” Cullerton said. “So we went back and examined that and made a change.”

“People will not miraculously get better if they’re denied care for services,” said Rep. Greg Harris, D-Chicago. “They’ll just end up at a higher level of care in an acute care setting at the most expensive end of their disease.”

Other legislators responded that the added costs of emergency room services have not been well-documented.

“It’s theory,” said Sen. Dale Righter, R-Mattoon.

No, it’s not a theory. This does happen.

* From a 2012 New York Times story

In a report this year, [the Pew Center on the States] estimated that preventable dental problems were the primary diagnosis in 830,590 emergency room visits in 2009 — up 16 percent from 2006.

“It’s penny-wise and pound-foolish,” said Shelly Gehshan, the director of the Pew Children’s Dental Campaign. “Rather than an $80 extraction or a $300 filling, states are spending much more on emergency room visits that can’t fix the problem.”

* Also, this

(M)any Medicaid enrollees continue to live with the pain and discomfort of tooth decay and gum disease, which can exacerbate other health problems, such as heart disease, diabetes and rheumatoid arthritis. Eventually, some go to costly emergency rooms, which can do little but provide short-term pain relief.

…Adding… More on this general topic from the Treatment Alternatives for Safe Communities group…

Governor Bruce Rauner’s $27 million cuts to drug treatment services undermine the very criminal justice reforms that he has been publicly championing.

Criminal justice reforms and cost savings simply cannot happen without drug treatment and coordinated case management upon which Illinois courts rely.

Last year alone, working with judges and community-based treatment providers, TASC diverted 2,080 people from prison and immediately saved Illinois $35 million. Under the governor’s proposed budget for next year, millions of those savings would be wiped out.

  32 Comments      


Shared sacrifice is pretty one-sided

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Tribune

“If you’re going to look for major reforms and finding savings, I suggest you look at the tax code where there’s a bunch of corporate giveaways and corporate loopholes,” Emanuel said. “That’s a perfect place to start, but do not think you are going to do this, not only on the backs of families and children, but the resources that go directly to the city are things that we use to pay for our police, firefighters and first responders.” […]

Rauner’s draconian budget offers little hope for Emanuel that such solutions are on the horizon. Instead, it’s estimated Chicago could lose $135 million in income tax distributions, which Emanuel said would lead to sharp cuts in city services.

“We use those resources to pay for police officers, firefighters, basic services. The idea that you would be look at basic services and cuts to the municipalities when you have a tax code that has giveaways to corporations, in my view is the wrong priorities,” Emanuel said. “I understand the need for change. I understand the need for reform. Start with the tax code that doesn’t actually meet the obligations of the state’s economic opportunity and future.”

The mayor criticized Rauner’s mass transit cuts saying, “This is not the time to cut back on the support for mass transit. This is the time to double down, just the opposite” to drive economic growth and create more jobs.

Last year, Rauner repeatedly said he wanted to close several corporate loopholes. So, why didn’t he include them in his budget yesterday? Well, state law forbids this. Governors are required, by statute, to introduce budgets with existing tax revenue streams. The law was designed to prevent fantasy budgets from being submitted with tax hikes that couldn’t pass anyway.

He could have, of course, mentioned his desire for loophole closures yesterday. But that phrase has not crossed his lips since the election. Almost all the sacrifice he demanded is placed on the backs of public employees and the poor and those who serve them.

* Well, almost. He did make one cut that has gone mostly unnoticed. Rauner proposed cutting a $1.5 million DCEO grant to the Illinois Manufacturers’ Association. Even so, the IMA had nothing but plaudits for Rauner’s overall budget yesterday

While it’s a dose of tough medicine, Illinois needs to take action in order to get a healthy financial outlook once again. It’s important to stop kicking the can down the road and restore fiscal stability. Balancing the budget while preserving critical programs like education and vocational training will help jump start Illinois’ economic engine leading to job growth and economic development.

  74 Comments      


Rauner’s pension proposal won’t balance the budget

Thursday, Feb 19, 2015 - Posted by Rich Miller

* AP

Rauner said Illinois could save more than $2 billion by moving all state workers to a less-generous pension system lawmakers approved in 2010 for employees hired after Jan. 1, 2011. Workers also would have the option of moving to a 401(k)-style plan. He said firefighters and police would be able to keep their current benefits.

Projected savings from any pension changes aren’t likely to be realized in the next fiscal year, however. Even if Rauner could get a bill through the legislature, the state’s powerful labor unions — with whom Rauner has clashed repeatedly since taking office — would challenge it in court.

Those unions and retirees already have sued over a 2013 pension overhaul that cut benefits. A lower court found the measure unconstitutional, and the Illinois Supreme Court is considering the case.

* Sen. Daniel Biss, who helped craft the current pension reform law, agreed via press release yesterday…

“It is completely irresponsible to claim to balance a budget through pension reforms that would surely be litigated. An inevitable lawsuit will leave the state in financial limbo while the proposal meanders its way through the judicial system, and banking the savings of such a plan during that process puts us at risk of further damaging the fiscal condition of the pension systems.”

* And so did Senate President John Cullerton

Governor Rauner leaves a $2.2 billion hole in the budget by relying on unrealistic revenues from a questionable pension proposal. Even as the courts review a significant test case, the governor’s plan banks phantom savings for a pension plan that may fail key legislative and judicial tests. When we passed pension reform last year, we took care to exclude possible savings from budget plans pending a legal resolution. The governor’s plan rejects that wisdom.

* Speaker Madigan piled on

Madigan said the governor shouldn’t be balancing his budget with money from a pension reform plan that has yet to pass, let alone be tested in court.

“I think the governor proposes to engage in conduct which I would consider reckless,” Madigan said.

He said Rauner’s plan cuts benefits, unlike the pension reform bill he championed that he said only cut increases in benefits going forward. Also, Madigan said the state did not count on any savings from the pension reform bill, which is currently being heard by the Illinois Supreme Court.

* But I agree with Mark Brown

On Wednesday, House Speaker Mike Madigan renewed his call for an income tax surcharge on millionaires, which I don’t regard as either serious or responsible

The truth is, nobody is being serious about this budget. Not Rauner and not Madigan. The Democrats have been completely unserious for way too long, and the new governor clearly demonstrated yesterday that he’s not above the same sort of ridiculous sleight of hand games that the Democrats have played for years.

  61 Comments      


What Rauner didn’t mention yesterday

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Jamey Dunn points out that Gov. Bruce Rauner skipped over quite a few of the cuts he proposed yesterday

Rauner touted increased education spending in the form of General State Aid. He talked about waste and special interest groups and laid out ways to combat both. But what he did not talk about are the cuts he proposed to programs that serve children, the elderly, the poor and the disabled in Illinois. Rauner’s budget plan includes substantial cuts to:

    * The Department of Children and Family Services. It would also eliminate services for youth ages 18 to 21.
    * Community care for senior citizens.
    * Mental health services.
    * Addiction treatment.
    * Dental Care for adults on Medicaid.
    * Support for children on ventilators.

After the speech, Democratic lawmakers on budgeting committees decried the proposed cuts of state funding for the Arc of Illinois, a nonprofit that provides services to developmental disabled residents and their families, The Autism Project, a major statewide provider of services to Autistic Illinoisans, and programs for epileptic.

Rauner wants to pump more into general funding for schools, but he is also making some cuts to education. The plan would zero out line items in the State Board of Education’s budget for:

    * Arts and foreign language
    * The Children’s Mental Health Partnership program
    * Advance placement courses
    * Regional Safe Schools, which offer education to students who are expelled or suspended.

Failure to mention those reductions shows either that he’s not wedded to those cuts, or he just didn’t have the guts to talk about them. Or?…

  90 Comments      


The consequences of leadership

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Kurt Erickson on GOP react to the governor’s budget

Republican lawmakers downplayed Rauner’s tough talk, saying it is early in the budgeting process.

“It’s opening day here for the budget in Springfield,” said state Rep. Dan Brady, R-Bloomington.

But, he added, “All of those are going to be sacrifices, painful sacrifices.”

Brady himself will be asked to make a painful political sacrifice.

Illinois State University, which is in Rep. Brady’s district, is slated to receive a $23 million cut in state subsidies, a 31.5 percent reduction. Rep. Brady is the Republican Spokesman on the House Higher Education Appropriations Committee - which means if these university cuts survive the budget process, Brady will have to sponsor and argue for the approp bill in his chamber.

That’ll be fun.

  11 Comments      


Smith sentencing today

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Prosecutors are asking that former state Rep. Derrick Smith (D-Chicago) be sentenced to four to five years in prison for accepting a $7,000 cash bribe. He’ll be sentenced today

Prosecutor Marsha McClellan argued in court papers filed ahead of Thursday’s sentencing that Smith’s “steadfast refusal to accept responsibility, no doubt contributes to the erosion of the public’s trust in its elected officials.”

But Smith’s attorney Vic Henderson urged U.S. District Judge Sharon Johnson Coleman not to compare “Smith’s conduct to that of other Illinois politicians, such as Governor Ryan and Governor Blagojevich,” citing the small sum of cash involved and adding, “Derrick Smith did not orchestrate the incident leading up to his indictment.

“The situation was created by the government.”

Given Smith’s ongoing denial of guilt, he is unlikely to offer a full-throated apology on Thursday, though Henderson said Smith is “is remorseful for bringing himself and his family shame as a result of his arrest and conviction.”

In other words, he’s ashamed that he got caught.

  19 Comments      


*** LIVE *** Session coverage

Thursday, Feb 19, 2015 - Posted by Rich Miller

* Follow along with ScribbleLive

  5 Comments      


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

Thursday, Feb 19, 2015 - Posted by Rich Miller

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

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Brauer steps down

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Rep. Rich Brauer (R-Petersburg) is resigning from the House effective Friday. Brauer has been widely rumored to be moving into the Rauner administration.

  45 Comments      


Kimme moves up

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Last year’s winner of our Golden Horseshoe Award for Best Insider is moving up in the world

Nancy Kimme, who was the top aide to the late Illinois Comptroller Judy Baar Topinka, is hanging out a lobbying shingle. Given that she privately was very much inside Gov. Bruce Rauner’s kitchen cabinet, she should do quite well.

Kimme’s clients so far include the Illinois Hospital Association—man, do they need help, given what Rauner is proposing to do with cuts to Medicaid—the Illinois Casino Gaming Association, Ameren and a cable TV group. All are top clients.

“I am going to lobby both the General Assembly and the (Rauner) administration,” Kimme tells me in an email. “That’s the one good thing about being around so long. I have gotten to know a lot of folks.”

She should do more than quite well. She’s one of those people who knows everybody and everything and has been indispensable to Team Rauner. They’ll be lining up around the block to give her contracts.

She’ll also be setting up Comptroller Munger’s campaign.

Good luck, Nancy!

  25 Comments      


The Credit Union Difference

Wednesday, Feb 18, 2015 - Posted by Advertising Department

[The followihg is a paid advertisement.]

  Comments Off      


Question of the day

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Your response to the governor’s budget address?

  304 Comments      


EXELON 2014 Profits: $236,000/per HOUR and THEY WANT A BAILOUT???

Wednesday, Feb 18, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

While the state budget crisis increasingly hits struggling Illinois families, Exelon demands a corporate bailout. This is exactly the wrong thing for Illinois’ citizens and businesses.

Exelon is a successful, profitable company. While we appreciate success, when they claim they need more of OUR MONEY, it’s time to be skeptical.

EXELON 2014 PROFITS: $2,068,000,000.00

That’s two BILLION with a B. And yet this wildly profitable company is asking US for a bailout while Illinois struggles. So let’s review:

In 2014, EXELON made $5,665,753 per day or $236,073 per hour

When legislators are being asked to slash everything from education to healthcare to mental health services, and when Crain’s Chicago Business says Exelon actually MADE money from its Illinois Nuclear Fleet, how can anyone think having struggling Illinois businesses and families bail out a highly profitable company is a good use of OUR money?

It just isn’t fair.

Just say no to the Exelon Bailout.

www.noexelonbailout.com

  Comments Off      


Arduin takes the stage

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* The Tribune has a profile today on Donna Arduin, Gov. Rauner’s $30,000 a month CFO. Here are a couple of excerpts about her time in New York and California

While Arduin was working for Pataki, the state enacted tax cuts, reduced the number of employees and had a run of budget surpluses. But those successes came at a time when tax revenues were booming from a bull market. Pataki was criticized for not preparing for tougher times ahead, and after a recession hit in 2001, Albany again faced major budget problems. […]

Schwarzenegger used voter-approved borrowing to finance the state deficit and won a one-year, $2 billion cut from education. The rest of the budget was balanced by shifting local property tax revenue and transportation funds, and raising some taxes and fees.

Arduin lasted just 11 months in Sacramento. Some said she had never intended to stay more than a year, but others questioned whether the political environment drove her away.

“Maybe it was difficult because it was a Democratic legislature facing a Republican governor, but it’s also possible that a governor and a finance director with a different approach might have made some headway,” said Graves, the budget advocate. “A lot of it has to do with personal relationships. It seems pretty clear that Donna Arduin did not put much stock in developing personal relationships with members of the legislature.”

Go read the whole thing.

* A group called the United Working Families has been pushing stories on Arduin for the past few days. Here’s the latest…

Cutting Medicaid for the sake of cutting, then hoping “for the best”

Before she became more polished in selling her massive cuts to Medicaid, Arduin experienced a rare moment of candor, explaining massive cuts to Medicaid acknowledging that there was nothing to support an argument that it produced efficiency.

In 1995, as a deputy budget director for New York Gov. George Pataki, she told the New York Times: “The first thing you can do is hope that the cut will force industries to create efficiencies. We can only hope for the best there.”
(“In New York The Dying Days of Expansive Government” The New York Times, May 8, 1995)

Replacing more effective drugs with down-brand, generic alternatives

Arduin proposed a cost-cutting plan for then-Florida Gov. “Jeb” Bush to replace effective drugs for Medicaid recipients with down-brand, less-effective generic alternatives. “If they started switching people from the new drugs to the old drugs, it would turn the clock back years,” one critic told the St. Petersburg Times in 1999.
(“Plans Push Cheaper Medicines” St. Petersburg Times, February 28, 1999)

Political appointees limit drugs to Medicaid patients

Arduin’s radical plan for Jeb Bush included installing a politically-appointed panel that “would describe which drugs require authorization,” according to the St. Petersburg Times.
(“Medicaid Cost-Cutters looking to lose Viagra” St. Petersburg Times, April 19, 1999)

Getting “compassionate conservative” rhetoric down, Arduin begins to claim that limiting Medicaid drugs was to benefit other social programs

Where before Arduin provided no “compassionate conservative” justification, in 2000, she justified a draconian program to limit Medicaid drugs by claiming (falsely) that it was being done to expand other social spending. She told the Ledger that, “We’re trying to manage our funds better so we can use the funds for other needs like developmental disabilities and improving student achievement.”
(“Bush Aims to Cut Medicaid Drug Costs” The Ledger [Lakeland, Fla] February 21, 2000)

Arduin’s “efficiency” rhetoric is a sham

As Arduin continued to work for Republican governors seeking to cut Medicaid and social services, her game plan was clear. A Florida lobbyist described it thusly in 2003: “There have been a lot of serious cuts proposed…It was always done in the name of efficiency and streamlining, and the rhetoric always followed that it was not going to hurt the delivery of servides, which in fact never was true.”
(“Budget auditor may target social services” Sacramento Bee [California] October 19, 2003)

Cuts to therapy for the disabled and AIDS programs and reduced payment rates for Medicaid

As part of her controversial 2003 proposal of cuts to California’s Medicaid program, Arduin targeted disabled children and immigrants with AIDS. As well, she sought lower payments to doctors and hospitals for Medicaid patients.(“Schwarzenegger Aide Offers First List of Proposed Budget Cuts” The New York Times November 26, 2003)

Would put tens of thousands of children on a waiting list for Medicaid

Arduin proposed placing tends of thousands of California children on a waiting list for Medicaid benefits as part of her 2003 proposal.
(“Schwarzenegger proposal alarms children health advocates” Associated Press December 1, 2003)

“Donna Arduin is (Gov. Schwarznegger’s) John Ashcroft.”

As she proposed massive cuts to California’s Medicaid program, Arduin was compared in 2004 to the ideologically pure member of George W. Bush’s cabinet. “Her history has been one of slashing and burning on social programs,” one legislator said.
(“Governor’s Hard-Nosed Budget Boss; Arduin Known for Tough Fiscal Views” San Jose Mercury News March 8, 2004)

Draconian proposals included ending access protections for developmentally disabled

Arduin’s massive cuts to Medicaid and social programs were rejected in budget talks in California in 2004, but not before she proposed ending legislation guaranteeing access to programs for the developmentally disabled, care for homebound family members and a string of Medicaid caps.
(“Revised budget backs off cuts; $103 billion plan mostly spares health services” Sacramento Bee [California] May 14, 2004)

Rejects legislative oversight and storms out of hearing

During Schwarznegger’s first week in office, according to the Los Angeles Times, Arduin stormed out of a committee hearing during a question. She left the position in California after 11 months and in controversy.
(“Audit to Leave Finance Position” Los Angeles Times October 14, 2004)

Sought to end $10 million program for strays and more quickly euthanize cats and dogs

As part of her round of cuts in California, Arduin proposed ending $10 million in aid to shelters which would have “shortened the length of time dogs and cats are kept alive at shelters.”
(”A Florida Transplant, Arduin was on Job for Less than a Year” San Francisco Chronicle October 14, 2004)

Anti-ObamaCare, free-market Medicaid voucher program a failure

Arduin has been a critic of ObamaCare and has proposed vouchers as a replacement. A pilot plan in Florida she supported was a total failure. “Hardly any of the 300,000 Medicaid patients enrolled in the pilot project…” the Ft. Lauderdale Sun-Sentinel reported.
(“Skimming Through the GOP Gubernatorial Job Plans” Sun-Sentinel [Fort Lauderdale, Florida] July 29, 2010)

The clips are compiled here.

  23 Comments      


*** LIVE *** Budget address coverage

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* I’ll be on Jak Tichenor’s Illinois Lawmakers program today before and after the governor’s budget address. Click here to watch. You can watch Speaker Madigan’s budget react by clicking here.

Watch all the carnage via ScribbleLive

  100 Comments      


Rauner to keep promise on P-12 funding

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Tribune

Republican Gov. Bruce Rauner on Wednesday plans to propose a 6.7 percent increase in general school spending despite signals that he’ll call for major cuts elsewhere during his first budget speech.

A Rauner adviser said the governor will suggest a $300 million boost in general state aid, the main pot of state dollars for education. […]

The increase would build on the more than $4.5 billion lawmakers in general aid signed off on last year. However, it would fall $266 million short from what the Illinois State Board of Education says is needed to reach what’s called the “foundation level” — the minimum amount of spending per student to provide a basic education. That benchmark is $6,119 per pupil, which education officials said would require spending more than $5 billion a year.

Still, Rauner’s office said it was “proud of the commitment we are making in this budget,” saying education spending has been cut in recent years even when it didn’t need to be.

Discuss.

  23 Comments      


Today’s number: 54.5 percent

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Greg Hinz

In a report released [yesterday], the Center for Tax and Budget Accountability—a group that leans left but generally gets its math right—says just 11.8 percent of Illinois individual income tax payers got 54.5 percent of the savings when… the tax rate dropped from 5 percent back to 3.75 percent. […]

According to the analysis of state tax collections, those with an adjusted gross income of more than $1 million make up just 2 percent of tax filers, but they got 13.5 percent of the savings, with an average of $37,000. Those with AGI of $200,000 to $1 million got 19.2 percent of the savings, and those earning between $100,000 and $200,000 captured 21.7 percent.

Of course, it’s hard to get much money out of low-income people who don’t make much. To put that a different way, the rich of course will benefit most from a tax cut, at least in the short run, because they make the most.

But the relative shares of who got what still are pretty stark. According to the analysis, the combined savings netted by every taxpayer in the state who reported AGI of under $35,000 was less than the savings earned by the 0.2 percent of taxpayers who are millionaires.

* From the report

(B)y focusing the majority of tax relief on top income earners, the phase-down of the personal income tax rate cannot be expected to generate much economic activity. That’s because the economy is primarily made up of consumer spending, and typically, affluent families are not likely to spend most of the tax relief they receive, because their disposable income is already increasing significantly over time. Given this growth in disposable income, affluent families do not have significant unmet needs, and tend to save rather than spend what they receive in tax relief.

Low and middle income families, however, have greater unmet needs because in real terms their earnings are declining over time.1 So when low or middle income households obtain an additional dollar of income—say through targeted tax relief—they tend to spend that dollar in the consumer economy. Unfortunately, the bottom 60 percent of income earners in Illinois will receive only $491 million or 13.2 percent of the $3.7 billion in tax relief from the phase-down, which greatly diminishes any potential the phase-down has to stimulate spending.

In fact, to the extent that there is any mild stimulative impact that can be anticipated from the phase-down of the personal income tax rate, it will be negated by the public service spending cuts that will have to be made to pay for the $3.7 billion loss in recurring tax revenue it causes.

  38 Comments      


Explaining Rauner’s hostiity toward unions

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* A commenter pointed to this 2014 statement yesterday by Cook County Board President Toni Preckwinkle as an explanation for why Gov. Bruce Rauner is so hostile to unions. He’s always been hostile to unions

[Preckwinkle] told a reporter that long before Rauner was a gubernatorial candidate, she had interviewed him for an opening on the board of the county health system, and was turned off by him then.

“First of all, he was very arrogant. He was a know-it-all,” Preckwinkle said.

“Second, he made claim to know about health care, and when I said, ‘What do you know?’ he said, ‘You know I own this health care company,’ and we’ve seen what that’s about. And then he went on a rant against public employee unions when I asked where the challenges were. I said, ‘You understand that almost all our workforce is unionized? How are you going to be an effective board member if that’s your attitude?’

  50 Comments      


AP: Rauner to propose huge budget cuts, pension reform

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Subscribers know so much more….

Illinois’ new Republican governor on Wednesday will pitch a plan for fixing the state’s budget mess that includes deep cuts to Medicaid and higher education and a new plan for reducing pension costs, according to three lawmakers with knowledge of the proposal. […]

The three legislators, briefed on details of the plan discussed in a Tuesday meeting between Rauner and legislative leaders, told The Associated Press that the governor will recommend cutting Medicaid by $1.5 billion and reducing funding for higher education by nearly $400 million, or 31 percent. They said he’ll also propose reducing state aid to local governments and ask lawmakers to approve a new pension reform plan he says will save Illinois $2.2 billion. […]

A Rauner administration official said Tuesday the governor will call for hiring more prison guards and spending more money on mental health care for inmates. The official spoke on condition of anonymity because the person was not authorized to speak publicly before the noon speech.

The mental health funds are aimed at meeting a federal court mandate that requires Illinois to improve its services, while the official said hiring more than 470 new prison guards would reduce overtime costs by about $10 million.

* Meanwhile

Gov. Bruce Rauner’s proposed budget for the fiscal year that begins July 1 would establish the Abraham Lincoln Presidential Library and Museum as an “independent entity,” according to an administration source with knowledge of the budget.

No details were immediately available on what form that entity would take.

The presidential library and museum is now managed by the Illinois Historic Preservation Agency, which oversees more than 50 historic sites and memorials across the state, including Lincoln’s Tomb and the Old State Capitol in Springfield and Cahokia Mounds in Collinsville.

Under Rauner’s proposal, the management of all sites under the Historic Preservation Agency — except the Lincoln Presidential Library and Museum in Springfield — would be transferred to the Department of Commerce and Economic Opportunity. DCEO’s Illinois tourism office would be in charge of administration of the sites.

You’re not going to get a better overview unless you subscribe. Just sayin…

* Sun-Times

Rauner wants to cut off services for former foster care children who have passed the age of 18, the source said.

News of that recommendation already drew the ire of the American Civil Liberties Union, which has longstanding legal battles with the state and its child welfare agency.

“For us to essentially throw them out on the street at age 18, if that’s what the governor is going to propose, is just plain cruel,” said Benjamin Wolf, associate legal director of the ACLU of Illinois. “If you want to increase homelessness and suffering, abandoning them at age 18 is a good place to start.”

Child-related funding that was spared the budget ax includes early childhood education. The governor wants to increase state support by $25.3 million. He also wants to continue funding for the All Kids health care program, including for undocumented children, and leave intact health and human services programs for children of immigrants.

* And

Rauner wants the ability to move funds within the current budget to plug gaps in a day care program that helps low-income parents. The state’s main tax collection agency, the Department of Corrections and the Illinois State Police also face funding challenges that could be resolved by giving the governor more flexibility to shuffle money within the budget.

Madigan, however, said that concept remains a hard sell among Democrats.

“There are certain members of the legislature, Democrats and Republicans, who will not be anxious to give up authority,” Madigan said. “It’s going to require some persuasion.”

  172 Comments      


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

Wednesday, Feb 18, 2015 - Posted by Rich Miller

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

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Good morning!

Wednesday, Feb 18, 2015 - Posted by Rich Miller

* Let’s wake up with Dr. John

Slipping, dodging, sneaking
Creeping hiding out down the street
See me life shaking with every who I meet
Refried confusion is making itself clear
Wonder which way do I go to get on out of here

  4 Comments      


Madigan continues to push for more revenues, against major cuts

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* As subscribers were told this morning, the four tops met with the governor this afternoon. The Tribune has some MJM quotes

“We had a very pleasant discussion,” said House Speaker Michael Madigan, D-Chicago. “The governor simply said that he’s got some tough medicine to deliver tomorrow. He understands that some people will not be happy, but he’s committed to reforming the finances of the state. And he has a program and an agenda to accomplish that.” […]

Madigan said he doesn’t expect the governor to propose ways to raise new revenue but does anticipate at Rauner push for large spending reductions. Madigan indicated Rauner was in store for a tough fight on that front.

“I said 10 days ago, I don’t think you can cut your way out of the problem,” Madigan said. “I think you need some additional revenue, and that’ll be my position tomorrow.”

Speaker Madigan is scheduled to hold a press conference at 1:15 tomorrow afternoon, shortly after Rauner’s budget address.

  56 Comments      


Question of the day

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* It’s just a bill

An Illinois lawmaker wants motorcycle safety to be a formal part of driver’s education courses.

The proposal by Republican Rep. Tom Bennett of Gibson City would amend the driver’s education act in the Illinois School Code to require that all behind the wheel instruction include lessons on motorcycle safety and awareness “to ensure students understand their surroundings when operating a motor vehicle.”

* Another bill

A bill filed in the Illinois House would form a new task force to address thefts of recyclable metals, including copper.

The Belleville News-Democrat reports the panel would review efforts to combat theft and come up with new ideas. Findings would be reported to the governor annually.

Members of the task force would include state legislators, local police chiefs and industry representatives, among others.

* Another

Smokers who favor electronic cigarettes could be pushed outside under an Illinois lawmaker’s proposal.

State Rep. Kathleen Willis wants the use of e-cigarettes, called vaping, to be subject to the same laws that prevent indoor smoking in public places

* The Question: What bill(s) would you like to see introduced?

  55 Comments      


EXELON 2014 Profits: $236,000/per HOUR and THEY WANT A BAILOUT???

Tuesday, Feb 17, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

While the state budget crisis increasingly hits struggling Illinois families, Exelon demands a corporate bailout. This is exactly the wrong thing for Illinois’ citizens and businesses.

Exelon is a successful, profitable company. While we appreciate success, when they claim they need more of OUR MONEY, it’s time to be skeptical.

EXELON 2014 PROFITS: $2,068,000,000.00

That’s two BILLION with a B. And yet this wildly profitable company is asking US for a bailout while Illinois struggles. So let’s review:

In 2014, EXELON made $5,665,753 per day or $236,073 per hour

When legislators are being asked to slash everything from education to healthcare to mental health services, and when Crain’s Chicago Business says Exelon actually MADE money from its Illinois Nuclear Fleet, how can anyone think having struggling Illinois businesses and families bail out a highly profitable company is a good use of OUR money?

It just isn’t fair.

Just say no to the Exelon Bailout.

www.noexelonbailout.com

  Comments Off      


John’s Story: Chicago Legend Gets a Tough Call

Tuesday, Feb 17, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

My name is John Lattner. I grew up and raised my family in the Chicago area. I played football for the University of Notre Dame and was honored to have won the Heisman Trophy in 1953 and went on to continue my football career playing for the Pittsburgh Steelers in 1954.

I have recently learned from my doctors that I have been diagnosed with malignant mesothelioma and that I have a challenging prognosis. I am hoping that I get luckier than most folks who get this kind of news. I have been very lucky most of my life and I hope that luck holds up. Any man who has had the life I have had and the family with which I have been blessed with has already had more than his share of good luck.
Back when I was playing at the University of Notre Dame, I was able to get summer jobs working with asbestos in Chicago. No one ever told us anything about it being dangerous and I was happy to have a job at all. I went on to do other things and now learn years later that this asbestos has given me cancer.

My doctors told me that it is medically impossible to get mesothelioma before a minimum of 15 to 20 years of exposure. The outlook for my condition is not good and I’ve been told most people who are diagnosed with this disease die within a year or two. I am someone who has always believed in fairness. I don’t think anyone should have a leg up on any other person. A strong civil justice system in Illinois provides that fairness not just for me, but for the other men and women who get the call from the doctor that I got. I know how tough of a call it is to get.

For John’s story, click here.

  Comments Off      


Consulting firm quietly pushing Schock stories to reporters, DPI

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* I started hearing about this story last week. I’m not sure there’s an Obama connection here, but there might be a Dick Durbin connection

A Democratic consultancy run by former top Obama campaign aides is working to place stories designed to stir up controversy over the personal finances of a House Republican leader.

The firm is working with other Democratic operatives who are trying to seize on a media frenzy that began with a humorous if slightly embarrassing Washington Post story about the Downton Abbey-themed office of Rep. Aaron Schock (R., Ill.). […]

Behind the scenes, a prominent Democratic consultancy run by former top Obama campaign aides has contacted reporters covering Schock’s tastes in interior design and offensive comments by his staff. The firm is pushing those reporters to cover the sale of Schock’s home as well. […]

The allegations originated at Blue Nation Review, a blog run by Jimmy Williams, a former senior advisor to then-Sen. Joe Biden (D., Del.) and Senate Minority Whip Dick Durbin (D., Ill.), whose leadership PAC has donated $10,500 to Schock’s Democratic opponents. […]

Democratic consultancy Smoot Tewes pitched the story to reporters. The firm is run by former Obama 2012 deputy campaign manager Julianna Smoot and Paul Tewes, a senior official on the president’s 2008 campaign.

Smoot Tewes consultant Gary Ritterstein, who has worked on numerous Democratic congressional campaigns, emailed reporters last week linking to coverage of Schock’s home sale controversy and encouraging them to follow up.

“If you’re interested, I’d be happy to get you on the phone with the folks who have been helping research the story,” he wrote.

In addition to the other connection, Julianna Smoot once worked for Durbin. But why would he care? I’m not sure who’s actually behind this, but consultants don’t usually get involved if there’s no paycheck or reciprocity involved.

* After i heard about this, I started checking around last week. An operative with the firm, I’m told, reached out to the Democratic Party of Illinois to ask what DPI was going to do to help push the Schock stories. The operative was told the party wasn’t much interested, but was given some names of reporters who might be.

The only contact I’ve ever had with the consulting firm was them sending me press releases over the past year promoting ethanol use.

  23 Comments      


Rauner goes one way, workers go another

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* News-Gazette

A second University of Illinois campus has formed a union for tenured faculty, even as organizing efforts continue at the Urbana-Champaign campus.

The Illinois Educational Labor Relations Board on Friday certified the faculty union at the UI Springfield, which has 137 members and is affiliated with the Illinois Federation of Teachers. […]

The UI’s Chicago campus signed its first faculty union contract in May 2014, and about 475 non-tenure-track faculty at Urbana won recognition for their union in July. The Campus Faculty Association is also pushing for a union to represent tenured and tenure-track faculty at Urbana.

The lecturers, instructors and other “specialized faculty,” as the campus refers to non-tenure-track faculty, represent about 20 percent of the total faculty at Urbana, according to the Campus Faculty Association Local 6546.

* From the IFT

This win is part of a trend in higher education where faculties are pushing back against college administrators turning university teaching into an unstable, temporary job. Stability for educators means higher retention rates and more experience in the classroom. Faculty organized with the goals of: negotiating fair wages and benefits, sharing governance with the administration, and for freedom from retaliation when advocating for the rights of students.

  23 Comments      


Rosenthal replacement named

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* Subscribers already know what I think this means

A 22-year-old Washington University law school student has been selected to replace Wayne Rosenthal as state representative in the 95th District.

Avery Bourne of Pawnee, one of 10 people who applied for the job, was chosen Saturday at a meeting of Republican leaders from the four counties within the 95th District: Macoupin, Montgomery, Christian and Madison. […]

She is a law student at Washington University in St. Louis and has volunteered on several candidates’ campaigns, including those of U.S Rep. Rodney Davis, Rauner and Rosenthal.

“Avery shares the conservative values of the constituents in the 95th District. She is very intelligent and has a bright future ahead of her,” Macoupin County Republican Party Chairwoman Terri Koyne, one of the leaders on the committee that chose Bourne, said in a press release. “Avery has shown that she is talented and that she will make it her mission to represent and serve the residents in the district, regardless of their background, experience or views.”

* Check out her “Experience” on her LinkedIn page

Assistant Field Coordinator
Rodney for Congress
May 2014 – August 2014 (4 months)Taylorville, Illinois

Grassroots Intern
Citizens for Rauner, Inc.
June 2014 – July 2014 (2 months)Taylorville, IL

Congressional Intern, Running Start Wal-Mart Star Fellow
Congresswoman Lynn Jenkins
January 2014 – April 2014 (4 months)Washington, D.C.

Etc.

She’s never held a job outside politics, never had a job longer than 6 months, and all but one of her jobs was an internship.

* And subscribers already know what I think this and another possible GA appointment means

Now, the governor may be poised to launch another set of political dominoes in motion by naming state Rep. Rich Brauer to a job at the Illinois Department of Transportation.

Other than confirming that rumors about Brauer’s departure have been running rampant through the Capitol for weeks, no one is saying the new position is a done deal for the Republican from Petersburg. […]

Already there is jockeying for the seat. Among those identified as possible appointees is Tim Butler, who is currently chief of staff for U.S. Rep. Rodney Davis of Taylorville.

Butler, a Springfield resident who also served as a spokesman for former U.S. Rep. Ray LaHood of Peoria, could have a leg up on the competition since he hails from the county with the biggest percentage of the weighted vote.

I told subscribers about Butler’s possible appointment last week. He’s not high on the list because he lives in Sangamon County, it’s because he’s close to Team Rauner.

  117 Comments      


Munger learning fast

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* Last week, Illinois Comptroller Leslie Munger decided to stand with the state constitution and laws (and public employee unions) against her party’s governor. Munger wasn’t supported by a single union in her 2014 state House bid, but she’s obviously not holding a grudge.

The appointed GOP incumbent capped her week by attending Equality Illinois’ Valentines Day event - the only statewide Republican official to show for the gay rights gala.

Running in 2016 isn’t going to be easy for any Republican here, but she’s proving to be a quick study.

  28 Comments      


*** LIVE *** Session coverage

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* The House isn’t in today, but the Senate convenes at noon. Follow along with ScribbleLive

  1 Comment      


Governing ain’t easy

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* From the AP

First-term Gov. Bruce Rauner has come under increasing pressure to overhaul Illinois’ troubled child welfare system after a leading civil rights group asked for quick federal court action over “dangerously inadequate” care and services.

The American Civil Liberties Union of Illinois filed a complaint against the Illinois Department of Children and Family Services late Friday, the latest turn in a decades-old consent decree aimed at keeping adequate foster care and child protective services in place. Rauner’s administration responded Monday by touting a new director and efforts to help foster care children. But days ahead of his first budget address, questions lingered over how the Republican will make and fund any major changes. […]

[ACLU attorney Benjamin Wolf] said Rauner’s administration inherited issues but that recent talks over problems raised by newspaper stories and lawmakers’ hearings weren’t productive. He said agency officials wouldn’t agree to immediate overhauls, which triggered the lawsuit. In previous years, DCFS has agreed to comply on issues such as reducing worker caseloads.

The complaint said the care of juveniles with mental health needs is “dangerously inadequate,” with long waiting lists for children who need specialized placements and lengthy stays in temporary shelters. The complaint cited reports from experts, providers, clients and caregivers.

That’s gonna cost money.

* And speaking of money, Reboot breaks down the numbers

$32.1 billion Total projected state revenue, FY 2016.

$37.8 billion Estimated spending, FY 2016.

$5.2 billion/35.3 percent Amount of decline in state income tax revenue from FY 2014 to FY 2016.

$6.4 billion Estimated amount of unpaid bills on June 30,2015.

$9.9 billion Projected backlog of unpaid bills by end of FY 2016.

$6.8 billion Owed to pension funds in FY 2015.

$3.6 billion/86.7 percent Amount by which pension costs grew from 2010 to 2014.

25 percent Portion of state-generated income that goes toward pensions.

$5.4 billion Amount saved in pension payments from FY 2016-2019 if Illinois Supreme Court upholds pension reform law

$650 million Amount borrowed from special state funds for 2015 budget that must be repaid in 2016 budget

$789 million Amount of 2015 spending pulled from FY 2015 budget and placed into FY 2014 to hide spending.

$1.439 billion total hidden spending/borrowing from current budget that must be paid back in FY 2016.

* How to resolve this without income tax hikes?

Rauner, who has pledged to manage the state’s budget crisis without raising taxes, has asked lawmakers for broad powers to move money around within the current budget and is negotiating with legislative leaders.

“I’ve got to reallocate money from nonessential government services and move it over into essential services,” Rauner told students Tuesday at Lanphier High School in Springfield.

* Finke has more on Rauner’s reallocation demands

“It is very broad, what has been put on the table and asked for. Very unusual,” [Sen. Heather Steans] said. “We have done emergency budget acts before, but nothing in terms of the scope that’s been requested to date.”

She said the power would essentially take the legislature out of the budget picture. […]

She also said the administration has pushed for latitude over $2.5 billion in “statutory transfers,” which includes things like income tax money shared with local governments. The administration could also be given authority to take about $700 million from special state funds and not be required to repay it. Money in those funds usually comes from fees and assessments on a comparatively small group that benefits from those funds, such as regulating certain businesses.

Subscribers know more about this stuff.

* Related…

* 29 more kids among Illinois child-welfare agency’s faces of failure

* Could DCFS Child Abuse Deaths Move Rauner’s Budget?

* Parents, child care providers worry about funding delays

* State owes some Illinois State Police troopers $10,000

* Suburban day cares, court reporters hold out hope for Rauner’s plan

* Chuck Sweeny: Gov. Bruce Rauner’s budget must reveal the details he’s dodged

* Genoa continues to dream Amtrak

* Study shows economic benefits to county fairs

  35 Comments      


Rauner approval rating drops 11 points in a month

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* The Illinois Policy Institute commissioned a statewide poll and reported this result via e-mail…

Gov. Bruce Rauner job approval: 41.2 percent approval, 35.6 percent disapproval and 23.3 unsure

They haven’t posted this online yet, as far as I can tell, and no crosstabs were provided.

But, wow, man. A 41 percent approval rating after only a month in office?

The Policy Institute didn’t say when the poll was conducted, but did disclose this…

According to the pollster [Odgen & Fry], 36.8 percent of respondents self-identified as independent, while 34.5 percent of Illinoisans polled self-identified as Democrats while 28.7 percent self-identified as Republicans. The poll surveyed 481 people with a margin of error at 4.56 percent at a 95 percent confidence interval.

Odgen & Fry conducted a poll on February 11th which found Rauner’s approval at 43 percent, with 28.2 percent disapproving. That poll was of 908 voters, so its MoE was much lower. A poll conducted by We Ask America on January 14th had Rauner’s approval rating at 52 percent, with just 23 percent disapproving.

So, either the two February polls are wrong, or Rauner is already disappointing his constituents.

  67 Comments      


*** UPDATED x1- AFSCME disputes Rauner numbers *** Disputes continue over worker pay

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* Kurt Erickson fact checks this excerpt from the governor’s lawsuit against state employee unions

“Since 2004, the unions have negotiated wage increases of approximately 80 percent during collective bargaining negotiations. By comparison, total inflation over the same time period was approximately 26 percent, and private sector employee salaries increased by a total of 31 percent,” the suit notes.

Erickson calculated that the lawsuit claims a person making $50K a decade ago would be earning $90K right now. Could that possibly be true? He took a look at state union contracts and concluded it wasn’t

Based on those contracts, workers were in line to receive wage increases totaling just over 32 percent — a figure that matches up more favorably with the private sector number cited by Rauner in his lawsuit.

The Rauner administration’s response

“It includes overtime and is based on salary averages,” Lance Trover wrote in an email last week.

Overtime costs are mainly driven by worker shortages. Hiring more workers would drastically lower those OT costs, but doing so would also drive up other costs for things like training, health insurance and pensions.

However, there are other ways to get pay raises under the contract, including step increases. I’m no expert here, so maybe some commenters can fill us in. And I have yet to see someone challenge Rauner’s basic fact: State employee salary costs have risen 80 percent over the past decade.

* Meanwhile

Three top administrators at the Illinois education agency took big bonuses home in their paychecks earlier this month.

According to a review of state payroll records by the Quad-City Times Springfield Bureau, the Illinois State Board of Education paid a total of more than $41,000 in bonuses to the trio.

A state board spokesman said the employees received the extra cash because each of them took on added duties.

“(T)heir salaries will return to the previous levels during the next pay period,” Illinois State Board of Education spokesman Matt Vanover said in an email. […]

“Given the significant reduction in agency headcount and the increased burdens placed on the agency by the Legislature, it is disingenuous to suggest that only the senior level administrators have had to take on additional duties meriting these adjustments in pay,” noted Aviva Bowen, spokeswoman for the Illinois Federation of Teachers.

ISBE employees are represented by the IFT, and those frontline workers have indeed taken on extra duties without additional pay - unlike the top brass.

*** UPDATE *** From AFSCME Council 31…

FALSE CLAIM: “Since 2004, unions have negotiated wage increases of approximately 80 percent”

FACT: Negotiated wage increases since 2004 are 32.25 percent. The average increase over that period is 2.9 percent per year.

FACT: The average wage increase in the current contract is just 1.3 percent per year — below inflation for that period (1.73 percent per year).

FACT: Adjusted for inflation, payroll is effectively flat since 2004 – up just 0.5 percent per year.

FACT: Payroll is a small share of state spending, and dropped from 7.5 percent in FY05 to 6.7 percent in FY13.

Two charts…


  63 Comments      


Mark Kirk should be so lucky

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* The Hill

Controversial former Rep. Joe Walsh (R-Ill.) is talking up a Tea Party challenge to Sen. Mark Kirk (R-Ill.).

“I am very seriously considering challenging him in a primary,” Walsh told The Hill on Thursday. “Mark Kirk has got to be challenged.” […]

Observers speculate that Walsh is likely looking to stir controversy to boost ratings. Many think that he’s ultimately unlikely to run and is a longshot, at best, if he does. […]

Walsh argued that Kirk’s 2012 stroke, which has left him with slightly slurred speech and forced him to use a wheelchair much of the time, was scaring off other potential primary foes. But he said that the senator’s health is part of the reason he shouldn’t win another term.

“I think because of his overall physical condition I don’t know anyone else would consider challenging him and that’s just plain wrong,” he said. “If you privately talk to people who would ordinarily primary him, they’d all say ‘he’s got no business running, but I can’t challenge him, look at who he is, people are going to say I’m mean spirited because I’m challenging him.’ Because of sympathy for Mark Kirk I don’t know of a serious candidate who would challenge him besides me.”

* Kirk’s response

“Based on the polling, I’d say a Republican candidate would be very foolish to come up against me… that’d be a pretty stupid move,” he told The Hill.

  47 Comments      


Big Jim and Rauner’s end game

Tuesday, Feb 17, 2015 - Posted by Rich Miller

* My Crain’s Chicago Business column

Every governor over the past 25 years—Republican and Democrat—has learned a lesson from Gov. Jim Thompson.

Every governor except one.

Running for re-election in 1982, Thompson was in the fight of his political life, and the Republican speaker of the House was making things worse.

Illinois had plunged into recession under Republican President Ronald Reagan, and Thompson was running against a household name, former U.S. Sen. Adlai Stevenson III.

Then, House Speaker George Ryan of Kankakee allowed an anti-union “right to work” bill to move to the House floor. Organized labor was furious. Thousands of workers gathered on the Statehouse lawn in June to angrily denounce Ryan. Thompson was met with a resounding chorus of boos when he took the stage.

Click here to read the rest. Thanks.

* And my weekly syndicated newspaper column

More than a few statehouse types have been wondering aloud for weeks what Gov. Bruce Rauner is up to with his almost daily attacks on organized labor.

Just what, they ask, is the end game here?

His people say that the governor feels “liberated” since the election to speak his mind about a topic that stirs great personal passion in him. He played up the issue during the Republican primary, then all but ran away from it in the general election, including just a few weeks before Election Day when he flatly denied that “right to work” or anything like that would be among his top priorities.

Yet, there he is, day after day, pounding away at unions, demanding right-to-work laws, vilifying public employee unions as corrupt to the point of issuing an executive order barring the distribution of state-deducted employee “fair share” dues to public worker unions such as AFSCME. The dues are paid by people who don’t want to pay full union dues.

Some top Democrats believe that Rauner may be setting them up for a grand bargain this spring. Democratic lawmakers most certainly are going to freak out when Rauner presents his draconian budget. Rank-and-file members undoubtedly will demand some sort of tax hike to prevent draconian cuts to their cherished programs. Rauner eventually could say he’d agree to additional revenues in exchange for passage of his economic package.

But some top Republicans who have regular contact with the governor say they haven’t yet discerned a rhyme or a reason. “I just don’t see an end game here at all with them,” confided one GOP operative. Another concurred, saying if there is an end game, it hasn’t been shared with anyone else.

For their part, the Democratic House speaker and Senate president have asked the governor gently to focus his considerable energy on attacking the state’s massive budget deficit, rather than spend his time attacking labor. The governor will need all the cooperation he can get to fix that budget problem, and he’s making more enemies than friends right now.

Rauner and his top people are misreading the Senate President in particular, I’m told. The Senate Democrats, much like the U.S. House Republicans, vote privately on pretty much every major issue. If a majority is opposed to an idea, they don’t move forward.

So even if Rauner manages to muscle all 20 Senate Republicans onto a bill, that doesn’t mean the majority party will allow it to be called for a vote. And the more Rauner attempts to undermine their traditional supporters in organized labor, the less they may be willing to go along with him on other things.

And the Democrats aren’t his only problem.

Rauner met with members of the Senate Republican Caucus in a Springfield restaurant earlier this month and delivered a stern warning. Rauner started by reportedly referencing the $20 million sitting in his campaign account and said he wanted to be their partner in the upcoming session and would support those who supported him.

But then the hammer came down. Sources say the governor told the Republicans that he would ask for their votes on 10 issues and he needed them all to vote “yes” on all 10. Not five, not seven. Ten. And if anyone in the room didn’t vote for all 10, then they’d have a “[f-bomb expletive deleted] problem” with him.

Organized labor doesn’t have many friends among Senate Republicans, but they do have some House Republican allies. So top House Republicans hope Rauner will exempt those members from taking any anti-union votes. They point to folks such as Rep. Mike Unes, R-East Peoria, as a Republican who represents a traditionally Democratic district. If he starts voting against his district, he could be on the bubble.

In a major Democratic presidential wave year, with unions completely engaged against a hated governor, the Republicans fret they could lose even more seats if any of those 10 votes Rauner wants has to do with demolishing labor unions.

And the governor isn’t exactly inspiring confidence in the ranks. Rauner’s executive order about fair share dues was declared illegal by the attorney general last week. He reworked it to keep it on track, but it’s still not legal, according to the state’s highest-ranking lawyer.

In politics, it’s always unwise to threaten somebody with an unloaded pistol. Then again, $20 million can buy a whole lot of bullets, whatever the objective may be.

  45 Comments      


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

Tuesday, Feb 17, 2015 - Posted by Rich Miller

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Reader comments closed for the holiday weekend

Friday, Feb 13, 2015 - Posted by Rich Miller

* Wow, what a week. I’ve been telling people lately that I think I was put on Earth to cover this spring session. I hope it doesn’t wind up putting me in the ground. We all gotta take it easy every now and then, so rest up this weekend and I’ll talk to you Tuesday

I’ve paid my dues to make it

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*** UPDATED x3 - AFSCME responds *** This just in… Rauner works around Munger refusal

Friday, Feb 13, 2015 - Posted by Rich Miller

* 4:41 pm - From the governor’s press shop…

The governor’s office consulted with the Comptroller’s office, and the governor’s office developed an operational solution.

State agencies under the control of the governor’s office will withhold unfair share fees when processing payroll. Additionally, agencies will retain an amount of money equal to the withheld unfair share fees until the legal issues are resolved.

The fact that the Governor pro-actively took steps from the beginning to segregate the unfair share funds shows his respect for the legal process underway. Whether it’s the Comptroller or the individual departments that keep the ‘unfair share’ funds in reserve, the Governor is making sure that he is able to carry out his obligation to protect the constitutional rights of the people of Illinois while recognizing that this important issue will ultimately be decided by the courts.

So, instead of ordering the comptroller to violate state law and state contracts, the governor’s gonna do it himself.

Sheesh.

…Adding… To be clear here, the comptroller has no say-so or choice in this matter if Rauner’s agencies deduct the fair share dues before submitting payroll to the comptroller’s office.

*** UPDATE *** Earlier today, a commenter posted this…

There has been a surge in AFSCME locals for those with fair share status to convert to full union membership.

So, is this true? Is a backlash building? I asked AFSCME’s spokesman about it…

That’s what we’re hearing from our local unions – and there are more than 70 locals that represent state employees – as well as anecdotally on social media, etc, but we won’t have any hard numbers until membership cards come in.

*** UPDATE 2 *** Dan Webb is now officially off the case

On Friday, Webb told the Sun-Times he could not represent the state on Rauner’s behalf in court due to conflicts. Rauner had said in his announcement on Monday that Webb’s involvement would be conditional on obtaining waivers.

“Like most major law firms, we have private clients with disputes with the state of Illinois. I could not work out the waivers,” Webb said. He told the Sun-Times he “reluctantly” had to call the governor’s office to decline. “I was grateful that they wanted to have me involved.”

Rauner has since tapped another high-profile attorney: Phil Beck. Most famously, Beck represented President George W. Bush and Vice President Dick Cheney in the Florida recount trial versus Democratic nominee Al Gore.

Beck’s involvement is destined to make some heads explode.

*** UPDATE 3 *** From Roberta Lynch at AFSCME Council 31…

“The comptroller is right to refuse to implement Gov. Rauner’s unlawful Executive Order regarding Fair Share. The governor’s response shows the lengths he’ll go to in his crusade to undermine unions.

“Clearly his mission is not to build up Illinois but tear down the institutions that provide a voice for working families in our state. He seems offended by the idea that workers who protect children, care for veterans, ensure safe prisons and provide other essential public services earn a decent living and have a voice on the job.

“Our state faces real challenges, yet Gov. Rauner devotes his time and energy to bizarre and illegal schemes to scapegoat workers and weaken their morale. His combative approach offers no path to work together for the common good.”

  61 Comments      


Rauner names new DCEO director

Friday, Feb 13, 2015 - Posted by Rich Miller

* A Friday afternoon appointment…

Governor Bruce Rauner announced today he has selected Jim Schultz, 55, as Director of the Illinois Department of Commerce and Economic Opportunity. Schultz’s experience in agribusiness and as a banking entrepreneur gives him the breadth of knowledge to develop and support businesses across the State of Illinois. He will bring 30 years of experience to the position.

Schultz is currently the chairman of Open Prairie Ventures, Inc., a company he founded in 1997. Open Prairie provides private equity services and manages more than $135 million in fund commitments.

Prior to founding Open Prairie Ventures, Schultz was the chairman and CEO of Telemind Capital Corporation. The company provides merger and acquisition guidance, and financial consulting services to businesses. Schultz assisted clients in a number of industries, including: software development, banking, manufacturing, retail, healthcare and entertainment.

Schultz earned his bachelor’s degree in business administration from Southern Methodist University in 1980. He holds a law degree from DePaul University and an MBA from Northwestern University.

Experience:
● Open Prairie Management, LLC., Founder and Chariman of the Board (1997-Present)

● Telemind Capital Corporation, Chariman/CEO (1990-2000)

● Prime Banc Corporation

o Chairman of the Board (1993-2001)

o Board Member (1993-Present)

● Pinnacle Ford-Lincoln-Mercury, Inc., Chairman and Founding Partner (1992-1996)

● Physicians Clinical Laboratories, Ltd., Chairman and President (1990-1993)

● Agracel, Investment Banking Parneter, General Counsel, CFO (1987-1992)

● Effingham Hi-Tech Partners, Managing Partner (1987-1991)

● Mark Twain Banks, Assistant Vice President (1985-1987)

Education:
● Northwestern University, MBA (1985)

● DePaul University, J.D. (1984)

● Southern Methodist University, B.S. in Business Administration (1980)

Personal Information:
● Age: 55

● Hometown: Effingham

* Meanwhile, from the Tribune

The incoming director of the Department of Children and Family Services said Friday that he got one clear message during his single meeting with his new boss, Gov. Bruce Rauner:

“He knows that it’s a problem agency,” said George Sheldon. “He seemed concerned and he also expressed a commitment to do what was necessary to fix the system. He’s totally aware of the need for change.”

Sheldon, 67, who was credited with efforts to reform Florida’s often-criticized Department of Children and Families when he ran that agency from 2008 through 2011, will be taking over the agency shortly after the Tribune’s “Harsh Treatment” series revealed that juvenile wards have been assaulted, raped and lured into prostitution at taxpayer-funded residential treatment centers.

During a 45-minute telephone interview from Florida, Sheldon said he warned Rauner that troubling headlines won’t cease with his appointment.

…Adding… The governor also made some temporary appointments today. Click here for the list.

  12 Comments      


Question of the day

Friday, Feb 13, 2015 - Posted by Rich Miller

* As we all know, the governor has been busily issuing executive orders since taking office. Some aren’t exactly legal. Another one is coming today.

It’s Friday, so let’s have a little fun.

* The Question: Future failed Bruce Rauner executive orders?

Snark is heavily encouraged.

  129 Comments      


Credit Union (noun) – not-for-profit, consumer-focused cooperative

Friday, Feb 13, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Credit unions are not-for-profit financial cooperatives. They were first exempted from federal income taxes in 1917 to fulfill a special mission as valuable and affordable cooperative alternatives to for-profit banks.

Even though credit unions are exempt from income tax, they still are subject to, and pay, property, payroll, and sales taxes, and a host of governmental regulatory supervision fees. Since their inception, credit unions have more than fulfilled their mission, as evidenced by Congressional codification of the credit union tax exemption in 1951 and 1998. Though the range of services has evolved to effectively serve their members in an increasingly competitive financial marketplace, the cooperative structure, which is the reason for their tax exempt status, has remained constant.

Nationally, consumers benefit to the tune of $6.6 billion annually because credit unions are tax-exempt. In Illinois, by most recent estimates credit unions annually provide nearly $205 million in direct financial benefits to almost three million members. In an era that continuously poses economic and financial challenges, credit unions remain true to one principle - people before profits - and represent a highly valued resource by consumers.

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What would cars be like without the civil justice system?

Friday, Feb 13, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

In the 1960s, court cases began highlighting the dangers of car design and the willful negligence of manufacturers in designing cars that they knew to be unsafe. Since then then the civil justice system has worked hand-in-hand with regulation to protect Americans, while spurring generations of safety innovations.

The drop in car crash fatalities is due in large part to the fact that cars are getting safer. For more information, click here.

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Comptroller won’t abide by Rauner union EO

Friday, Feb 13, 2015 - Posted by Rich Miller

* I told subscribers about this earlier today. The Sun-Times rewrote the story

Gov. Bruce Rauner’s appointee for Illinois Comptroller, Leslie Munger, won’t abide by his executive order setting aside “fair share” union fees without a court order.

It’s a decision that the state’s top lawyer is backing.

“We agree with the Comptroller,” Illinois Attorney General Lisa Madigan’s spokeswoman Natalie Bauer said in an email. “Fair share fees are constitutional under the current law and she must follow the law.”

That’s the same statement the AG’s office sent me yesterday.

…Adding… More from CS-T

(T)he governor’s executive order does not apply to other constitutional officers, according to Illinois Attorney General office chief of staff Ann Spillane.

“There’s no question that under the current law that fair share fees
are constitutional,” Spillane told the Sun-Times. “(Leslie Munger) can’t ignore validly-signed contracts. She is an independent constitutional officer, an executive order doesn’t change her conduct.”

Munger is charged with enforcing state statute and collective bargaining agreements unless or until a court order says otherwise, the Illinois Attorney General’s Office said.

Hint: There is at least one more EO out there which applies to other constitutional officers.

* The Illinois Federation of Teachers responded after my item was published…

Following a Capitol Fax report that Comptroller Leslie Munger (R) and Attorney General Lisa Madigan (D) will not implement Governor Rauner’s Executive Order regarding fair share fees, IFT President Dan Montgomery issued this statement:

    “As we said earlier this week, the Governor’s actions were a blatantly illegal abuse of his power, so we’re glad to see a bipartisan confirmation that the constitution still matters. A democracy does not allow one man to implement his ideological will as he chooses, and so Comptroller Munger and Attorney General Madigan rightfully put the law over politics. As he considers his upcoming budget plan, the Governor would be wise to do the same. Our state has serious financial challenges, and Governor Rauner’s out-of-touch, partisan attacks on middle class families and the unions who give them a collective voice isn’t the way to solve them. Let’s hope we can start working together in earnest next week.”

* From AFSCME Council 31 Executive Director Roberta Lynch…

“It is gratifying to know that two of our state’s constitutional officers are clearly committed to upholding the Constitution. That they include both a Democrat and a Republican shows that preserving the integrity of our democracy isn’t a partisan or political issue. No elected official has the right to place themselves above the law.

“We have said that Gov. Rauner’s executive order was clearly illegal, and meant solely to strip workers of their ability to have a voice in the decisions that affect their lives. State employees throughout Illinois will welcome Comptroller Munger and Attorney General Madigan’s determination that the order should not stand.

“We renew our pledge to work constructively with anyone of good faith to move beyond the governor’s polarizing attacks and begin to address our state’s real challenges.”

  100 Comments      


Caption contest!

Friday, Feb 13, 2015 - Posted by Rich Miller

* Yours truly and Illinois Public Radio’s Amanda Vinicky during an appearance on Jak Tichenor’s Illinois Lawmakers

Keep it clean, people. My mother reads this blog. Thanks.

  106 Comments      


Christie sucks up to no-show Rauner

Friday, Feb 13, 2015 - Posted by Rich Miller

* AP

Laying groundwork for a potential 2016 bid, New Jersey Gov. Chris Christie told supporters in suburban Chicago on Thursday that he and first-term Republican Illinois Gov. Bruce Rauner could take similar approaches to running states with divided government.

Christie frequently visited Illinois last year to boost Rauner’s campaign as the then-Republican Governors Association chairman. Rauner, a venture capitalist, ousted Democrat Pat Quinn in November to become the state’s first GOP governor in more than a decade. Christie said that such support was critical in “tough neighborhoods” like Democrat-leaning Illinois and that challenges were ahead for Rauner, particularly in working with Democratic majorities in the state House and Senate.

“Bruce Rauner and I compare notes all the time in that regard,” Christie told a receptive crowd of nearly 1,000 people at a fundraiser in Rolling Meadows. “But what I’ve told him is, when you’re governor, you don’t have the luxury to say, `I won’t work with the other side.”‘ […]

Tickets to the 8th Annual Northwest Suburban Republican Lincoln Day Dinner cost $100 or $250 for a private reception and photo op with Christie. Organizers estimated they’d raise $150,000. Rauner did not attend the event.

“Rauner did not attend the event.”

Not mentioned in the story is that Rauner’s 2014 campaign manager is now working for Rand Paul’s presidential campaign.

Just sayin’, but that probably explains the absence.

  9 Comments      


Civic Federation urges tax hikes

Friday, Feb 13, 2015 - Posted by Rich Miller

* Greg Hinz

Just days before Gov. Bruce Rauner unveils a budget that is expected to include few new revenues, one of the state’s leading taxpayer watchdog groups is proposing a sharply different path.

In a report issued [yesterday], Chicago’s Civic Federation proposes not massive spending cuts but a range of revenue hikes, including a partial rollback of the income tax cut that took effect on Jan. 1; expanding the sales tax base to include services; temporarily eliminating the sales tax exemption for food and nonprescription drugs; and taxing some retirement income.

The group also wants to slow spending growth to 2 percent from the recent 2.7 percent annual level but warns that much deeper cuts than that may be counterproductive. […]

[Civic Federation President Laurence Msall] said the federation looked for a way to balance the books and pay the state’s bills without making the roughly 20 percent across-the-board cuts in discretionary spending that would be needed. “We were not able to do it,” Msall said.

* Illinois Public Radio

The plan likewise calls for austerity, and holding state spending. But it’s clear that cuts alone should not be the only response to the state’s deficit. According to the report, in order balance the budget through reductions alone, Illinois would need to slim spending by 25 percent… something that would “come at the cost of eliminating entire areas of State services or completely restructuring how Illinois government functions.”

* From the report

1. Fix Fiscal Cliff in FY2015: Rather than sharply dropping income tax rates by 25% in one year, the State should retroactively increase the income tax rate to 4.25% for individuals and 6.0% for corporations as of January 1, 2015. The State could then provide additional tax relief by rolling back the rates on January 1, 2018 to 4.0% for individuals and 5.6% for corporations.

2. Control State Spending: The State should restrict discretionary spending growth from the 2.7% level shown in its three-year projections to 2.0%, closer to the rate of inflation. This could reduce total State spending by $1.3 billion over five years.

3. Broaden the Income Tax Base to Include Some Retirement Income: Out of the 41 states that impose an income tax, Illinois is one of only three that exempt all pension income. To create greater equity among taxpayers, the State’s income tax base should include non-Social Security retirement income from individuals with a total income of more than $50,000.

4. Expand Sales Tax Base to Include Services: Illinois should expand its sales tax base to include a list of 32 service taxes proposed by Governor Rauner. Due to the complexity of sourcing rules and collections for new businesses that are not currently required to collect sales taxes, it is estimated this expansion could take up to two fiscal years to fully implement.

5. Temporarily Eliminate Sales Tax Exemption for Food and Non-Prescription Drugs: To provide much-needed immediate revenue, the State should temporarily eliminate the tax exemption for food and non-prescription drugs. The State should apply the full 6.25% sales tax rate to food and over-the-counter drug purchases through FY2019 and then reinstate the exemption in FY2020 after the service tax expansion is fully implemented and the State’s backlog of unpaid bills is eliminated.

6. Expand the Earned Income Tax Credit to Provide Assistance to Low Income Residents: To help soften the impact of the State’s fiscal crisis on low income residents, the Civic Federation proposes an increase in the State’s Earned Income Tax Credit from 10% of the federal credit to 15% of the federal credit by FY2018.

Thoughts?

  59 Comments      


Today’s number: 40 percent

Friday, Feb 13, 2015 - Posted by Rich Miller

* From a press release…

Ways and Means Oversight Subcommittee Chairman Peter Roskam (R-IL) hosted his first hearing on protecting small businesses from IRS abuse. Roskam prompted IRS Commissioner John Koskinen to apologize for the agency’s longtime practice of seizing banks accounts of individuals and small businesses without any proof of wrongdoing.

    Rep. Roskam: “Commissioner, the IRS grabbed these taxpayer by their throat and squeezed them…and nearly ruined them and made their lives miserable. Would you be willing today, on behalf of the IRS, to apologize for those taxpayers who were so abused?”

    IRS Commissioner: “If they paid their taxes, they weren’t doing anything consciously illegal, and they got wrapped up in the system, that was a mistake and I apologize for that.”

* It wasn’t easy to get that apology. Roskam had to ask three times. Watch

* Background

The Civil Asset Forfeiture Act of 2000, which was aimed at preventing money laundering, drug trafficking, or other crimes, has been criticized for enabling government agencies to use greatly reduced standards of evidence to seize assets. Agencies are able to confiscate and sell the property of individuals suspected of (but not necessarily charged with) a crime.

In his opening statement, Subcommittee Chairman Peter Roskam (R – Illinois) pointed out that the IRS has used the law “to seize the bank accounts of people suspected of ’structuring’ – that is, of making cash deposits worth less than USD10,000 to avoid reporting requirements.”

* This is just so un-American

On April 12, 2013, the IRS seized every penny of a nearly $1 million business account held by Georgia gun shop owner Andrew Clyde.

His misdeed — if you can call it that: depositing business checks into his bank account in increments under $10,000.

A bipartisan group of lawmakers on House Republicans are on Wednesday preparing to shine a spotlight on the government’s practice of seizing small business civil assets without charging them with a crime, signaling a new oversight focus on an issue gaining more attention and hinting at new legislation backed by both parties.

In one instance, a U.S. attorney suggested to one witness’s attorney that he may be getting a harsher punishment because the witness spoke to the press, according to an email reviewed by POLITICO.

* Bloomberg

The IRS reviewed its policy last year and changed it after media reports about asset seizures. The agency will now typically ignore cases where the money doesn’t come from illegal sourcing, such as drug dealing, instead of seizing assets only on evidence of structuring.

* Yeah, well they’re still doing it, Roskam’s office says. And the IRS refuses to disclose to Congress or anyone else just exactly how many non-criminal asset seizures it does every year

Structuring is “catching a lot of innocent people — a Mexican restaurant, a gas station, a dairy farmer,” [Roskam] said in his opening statement.

“Many people can’t afford a long, drawn-out fight, so they settle, handing over thousands of fairly earned dollars to the IRS — all without having done anything wrong,” Roskam said.

The IRS seized 147 accounts last year, Koskinen testified.

* And

“In 60 percent of those cases, the owner of the asset never shows up, which shows that they obviously had a criminal activity going on.” [said IRS Commissioner John Koskinen] […]

Roskam said the IRS has too much power to seize assets, even if the agency doesn’t have adequate evidence of a crime.

“The IRS doesn’t have to give notice to the account-holder before seizing the assets. And the IRS doesn’t have to prove that the person is actually guilty of anything — just that the account probably is involved in structuring,” Roskam said.

So, in other words, in 40 percent of the cases, the asset owner shows up, which indicates that no criminal activity was “going on.”

40 percent.

Sheesh.

  11 Comments      


Rauner visits state prison

Friday, Feb 13, 2015 - Posted by Rich Miller

* The governor did something this week that his predecessor never did

After announcing a commission to scrutinize sentencing policy in Illinois, Rauner visited a prison: Logan Correctional Center, a women’s facility in Lincoln, about a half-hour north of Springfield.

It’s something his predecessor, former Gov. Pat Quinn, never did — even as an independent watchdog reported flooding, roof leaks and other problems with aging facilities.

Despite requests from activists, Quinn said he had a lot to do, and trusted his staff to manage the prisons.

I didn’t see this on the governor’s public schedule and the Lincoln Courier didn’t even have a story about the tour. That may be a good thing. He’s gathering info rather than seeking an easy press pop. The governor did tweet about it, though…


  31 Comments      


Another day, another EO

Friday, Feb 13, 2015 - Posted by Rich Miller

* Today’s public schedule…

What: Governor Rauner Announces New Advisory Council on Innovation
Where: 1871
222 W. Merchandise Mart Plaza, Suite 1212, Chicago
Date: Friday, February 13, 2015
Time: 9:30 a.m.
Note: No Additional Media Availability

What: Governor Rauner Attends Grand Opening of New Health Tech Hub
Where: MATTER
222 W. Merchandise Mart Plaza, Suite 1230, Chicago
Date: Friday, February 13, 2015
Time: 10:30 a.m.
Note: No Additional Media Availability

What: Governor Rauner Delivers Keynote Address at America-Israel Chamber of Commerce Meeting
Where: Katten Muchin
525 W. Monroe, Suite 1900
Date: Friday, February 13, 2015
Time: 12:15 p.m.
Note: No Additional Media Availability

What: Governor Rauner Signs Executive Order on Government Consolidation
Where: DuPage Water Commission
600 E. Butterfield Rd., Elmhurst
Date: Friday, February 13, 2015
Time: 1:30 p.m.

I’m assuming this new EO forms yet another study commission. We’ll see.

* Meanwhile, this is a press release about the governor’s first stop today…

Governor Bruce Rauner visited 1871 today to announce the creation of the new Innovate Illinois Advisory Council, which he has formed to foster opportunity and increase Illinois’ global competitiveness. Following the announcement, Governor Rauner toured 1871’s 75,000-square-foot facility, held a roundtable discussion with startups from 1871 and MATTER, and visited the recently-opened MATTER space, which is immediately adjacent to 1871 in The Merchandise Mart.

“Illinois is home to a wealth of resources, including world-class educational institutions, leading national labs, 33 Fortune 500 companies, dozens of innovation and entrepreneurship hubs, a vibrant culture, and an extensive transportation network,” Governor Rauner said. “Yet our state continues to fall behind. In the last ten years, the Boston Consulting Group estimates our lagging growth has cost Illinois more than 175 thousand jobs. This council will help us create and implement a shared vision for a 21st century economy that will turn Illinois into a global innovation destination.”

The council will be co-chaired by Laura Frerichs, director of the University of Illinois’ Research Park, and Mark Glennon, managing director of Ninth Street Advisors. 1871 will participate.

Governor Rauner has charged the council with developing an agenda to grow the state’s innovation economy, including developing high-growth industry clusters, attracting resources, developing and retaining top talent, and fostering collaboration among all the parties in the state’s technology and innovation community. The council will meet regularly to develop and facilitate the execution of key growth initiatives. It will work closely with Illinois Department of Commerce and Economic Opportunity and will have a core mission of bringing new opportunities to the forefront on behalf of the community.

  22 Comments      


Indiana also suspends Illiana project

Friday, Feb 13, 2015 - Posted by Rich Miller

* From the Times of Northwest Indiana

The Indiana Department of Transportation has formally suspended its work on developing the Illiana Expressway, pending a decision by Illinois Gov. Bruce Rauner on whether to proceed with the project.

A letter from INDOT project manager James Earl released to state Sen. Rick Niemeyer, R-Lowell, states Indiana will halt all Illiana Expressway work until the Rauner administration completes its review of the project.

On Jan. 12, Rauner froze spending on all major interstate construction projects managed by the Illinois Department of Transportation, including the 40 miles of the Illiana Expressway planned for Illinois.

Just a year ago, the planned 48-mile bi-state toll road appeared to be barreling toward construction. But Rauner’s action and his appointment of a transportation chief who opposed the road have heartened opponents who want the project killed.

* More from Greg Hinz

In a letter sent to those who live near the proposed toll road, James Earl, Illiana project manager at the Indiana Department of Transportation, said that while the department “remains committed” to the project, it can’t participate without Illinois, which would build the western stretch of the road between I-55 in Illinois and I-65 in Indiana.

Although construction “will be managed separately by each state,” Earl wrote, “the Illiana Corridor is still a project that requires both states to work together and maintain similar schedules. Given the recent decision by the state of Illinois, INDOT is temporarily suspending project development until the Rauner administration completes its review of the Illiana Corridor.”

The Rauner administration has given no indication how long that review will continue. But it already has lifted the freeze on a variety of Illinois Tollway projects, and Randy Blankenhorn, the governor’s secretary of transportation, was a vigorous opponent of making Illiana a priority in his previous capacity as executive director of the Chicago Metropolitan Agency for Planning.

* Meanwhile, I heard last week that some folks who don’t want to see Blankenhorn run IDOT were shopping some oppo on him

Gov. Bruce Rauner’s pick to run the state’s transportation agency was caught driving drunk more than a decade ago.

A spokesman for the governor said Randall Blankenhorn’s 2004 Sangamon County arrest has been disclosed to lawmakers and should not be considered an issue in his role overseeing the Illinois Department of Transportation and its anti-drunken-driving campaigns.

“Governor Rauner has full confidence in Randy Blankenhorn and knows he will be an effective secretary for the Department of Transportation,” wrote spokesman Lance Trover in an email Wednesday.

According to records reviewed by the Lee Enterprises Springfield bureau, Blankenhorn, 56, received court supervision after he failed a blood-alcohol breath test during a traffic stop in April 2004.

He paid for his decade-old mistake. If people want to oppose him over Illiana or his past support for cutting Downstate’s share of the Road Fund, fine. Otherwise, move the heck along.

  26 Comments      


Organization headed by governor’s wife urges Rauner to fully fund child care program

Friday, Feb 13, 2015 - Posted by Rich Miller

* From a press release…

Joint Statement from Illinois Early Childhood Advocates on Early Learning and the Child Care Funding Crisis

Governor Rauner pledged to “increase funding for early childhood education so that more at risk children can enter kindergarten ready to succeed” during his inaugural State of the State address.

We applaud this commitment to our state’s youngest and most vulnerable learners, and we look forward to seeing more details of the Governor’s early education plan in his Budget Address on February 18th.

The Governor also stated that “from cradle to career, our children’s education needs to be our top priority.” We could not agree more. For that reason, we call on Governor Rauner and the General Assembly to fully fund all aspects of early care and education — including child care.

High-quality, affordable child care is often the very first connection that young children have to an educational experience – in conjunction with, or even prior to, preschool. In addition to the work support it provides to parents and the economic impact it has on the state, child care is a critically-important step on a lifelong path of education.

To truly realize the Governor’s stated priority, the Illinois Child Care Assistance Program must be fully-funded – both to alleviate the $300 million funding crisis facing child care during this fiscal year and to ensure its viability in Illinois for the coming fiscal year. Now is the time for the Governor and the General Assembly to take bold and decisive action on behalf of Illinois’ children and families.

Fight Crime: Invest in Kids Illinois

Illinois Action for Children

Latino Policy Forum

The Ounce of Prevention Fund

ReadyNation Illinois

Voices for Illinois Children

The Ounce of Prevention Fund is, of course, headed by Mrs. Rauner.

Discuss.

  31 Comments      


Good morning!

Friday, Feb 13, 2015 - Posted by Rich Miller

* Let’s start the day with Amy….

Your rolled up sleeves in your skull t-shirt

  8 Comments      


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

Friday, Feb 13, 2015 - Posted by Rich Miller

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