Thank you for welcoming me to the team yesterday. I’m honored to join you as we position Illinois to become the most prosperous, compassionate, and free state in the nation.
As we discussed, there are four critical areas I’d like you to focus on in the coming month.
1. Please share with me your best ideas for transforming Illinois through better public policy and improved operations by Friday at 3:00 p.m. I follow the approach of Completed Staff Work; this will give you guidance on how to present your ideas.
2. We’re going to share incredible stories of the men, women, and children who deserve a revitalized Illinois. More information will follow, but here’s a good overview of where we are headed.
3. I’m looking for your excellence. How can you approach an aspect of your work in a new and better way today?
4. Mutual respect paired with radical candor will make this an even greater place to work.
I would like to announce two staff members joining us today:
Michael Lucci as Deputy Chief of Staff for Policy (Chicago)
Laurel Patrick, Director of Communications (Chicago)
Tomorrow we’ll welcome Jean Hutton as my Special Assistant.
My commitment to you is to share an updated organizational chart soon so you have clarity on where changes are happening.
Again, thank you for the warm welcome
~KR
* Lucci, of course, is the Vice President of Policy for the Illinois Policy Institute, and will now be Gov. Rauner’s policy director. Read more about Lucci by clicking here. He’s also an occasional commenter on this blog.
Laurel Patrick was Wisconsin Gov. Scott Walker’s spokesperson before eventually moving to the economic-right Franklin Center for Government and Public Integrity. Patrick replaced Brad Hahn, who was let go today. This is how Patrick describes herself on Linkedin…
Dynamic strategic communications and public relations professional with expertise in crafting messaging for high-profile elected officials and state agencies for political, legislative, and policy purposes.
Serve as an articulate spokesperson with extensive experience in media relations, message development, crisis communications, and team management. Skilled at creating communication teams, strategic plans, and building successful coalitions and partnerships with stakeholders, donors, and media partners to an organization’s mission and goals.
And Jean Hutton, Rasmussen’s new “special assistant,” is the Illinois Policy Institute’s Director of Operations. Click here for her background.
* Staff also received these three links this morning via that e-mail…
“The extreme right is taking over the governor’s office and Bruce Rauner is building a team to pursue a scorched earth policy in Illinois,” said Jordan Abudayyeh. “Rauner’s new radical right wing hires will destroy social services, attack working families, and tank the Illinois economy until they either get their way or drive this state into the ground.”
…Adding… “Could.” Right…
* Tribune: Rauner staff changes could signal a sharper tone
The shakeup in Governor Bruce Rauner’s office continues as NBC 5 has learned Brad Hahn was fired Tuesday morning.
Hahn had served as deputy chief of staff for public engagement and communications director. He has been a longtime GOP staffer, working for both Comptroller Judy Barr Topinka and Leslie Munger.
When Hahn was hired last year, he was part of the 23 people who worked for Munger and were then hired by the Rauner administration when Munger lost her bid for re-election.
Insiders said the morale inside the Rauner office and campaign is very low among those who do not agree with the governor’s decision to shift his strategy to a more conservative tone.
Brad was top notch, but he never really fit in with the governor’s style. And now that Rauner’s office is becoming an adjunct of the Illinois Policy Institute, he’s probably much better off.
*** UPDATE *** Rauner spokesperson Catherine Kelly was just fired. What’s so unreal about this is that CK was a loyal Raunerite. She busted her tail for the governor.
CK was expected to be leaving perhaps as early as next month anyway because her husband has a job in another state. But this action today was unexpected.
* Joe Cahill explains this pension funding gimmick well…
State contributions to pension plans will decline $1.5 billion in fiscal 2018, by far the largest single spending cut in the budget. And some $900 million of that reduction reflects wishful thinking about future investment returns at state employee pension funds.
Last year, overseers of the Teacher’s Retirement System and other large state employee retirement funds joined counterparts at public pension systems around the country in reducing assumed investment returns to around 7 percent from unrealistically high levels that prevailed for several years. It was a prudent step, based on actual long-term investment performance and current economic trends.
But it had the unpleasant effect of revealing that Illinois’ pension gap was even larger than previous estimates. A lower assumed rate of return means the pensions need more money now to generate enough investment earnings to cover future pension payments. And that, in turn, means legislators must allocate more current funds to pension contributions, not less.
Less is what the pension funds will get under the new budget, which delays implementation of the more-realistic investment return assumptions. Rather than impose the new rates of return immediately, as they should, lawmakers are phasing them in over five years. This allows them to contribute less while claiming to meet pension funding obligations.
Ironically, this is a rare area of agreement between arch-foes Madigan and Rauner. The governor excoriated Madigan’s 32 percent income tax hike, but uttered not a peep about his pension legerdemain. Perhaps that’s because he proposed “smoothing” in reduced rate-of-return assumptions in his own budget blueprint earlier this year.
Yep. He did. Remember how the governor railed against TRS for lowering their estimated rate of return?
So Illinois spent two years setting itself on fire in order to do . . . what, exactly? Income tax rates now stand at 2014 levels. Pensions are still underfunded. The major “Turnaround Agenda” ideas the governor ran on—”right to work,” workers’ comp reform and term limits—were kicked to the curb over time like so much roadkill. The state, meanwhile, has been the customer from hell to social service agencies and small businesses alike, demanding services and refusing to pay for them, racking up millions in unnecessary interest charges and forcing private-sector layoffs along the way.
Rauner presided over all of this—and, at key moments in the spectacle, could have prevented it. Not a good look for a man who ran as a business-minded pragmatist, a dealmaker who would put the needs of regular Illinoisans first and reject petty partisan politics.
In the end, Rauner’s stance on the budget compromise revealed how political this supposed “non-politician” has actually become. Despite knowing the damage that further ratings downgrades would do to the state, despite understanding the real damage being done to universities, businesses and municipalities by the ongoing standoff, despite recognizing that there is no way cuts and reforms alone will dig Illinois out of its financial hole without new revenue, the governor vetoed the budget legislation when it came to his desk. He did this knowing the chances were very, very good that his veto would be overridden.
There were plenty of political benefits for the governor in this irresponsible move: The guy who said he wasn’t a career politician gets to appease his base, which is howling to the point of threatening violence against lawmakers who voted yes on the budget. He also gets a workable budget that will hold the wolves of Wall Street at bay at least for a time. And as an added sweetener, he also gets plenty of partisan fuel for a re-election campaign he once told us he’d be happy to skip if it meant he could get the job done in Springfield for the people of Illinois.
Legislators who imposed this year’s increase despite Gov. Bruce Rauner’s opposition hope that by next year’s elections you’ll once again forget. Forget that they voted to raise your taxes before they passed major reforms. Forget how they set this state to shrivel as its neighbors thrive. Forget how they sabotaged Illinois.
Over the past two years we’ve also been seeking common ground on the fiscal and structural changes necessary to restore our state’s fiscal health. This challenge is not just about one year’s budget; it is about reforming our state so that our economy grows faster than our government spending. Structural reforms that encourage job growth, provide property tax relief and make government more efficient are essential to our long-term fiscal health.
Yet instead of passing a budget with reforms that would move Illinois forward, the legislature collapsed under the pressure of entrenched interests and passed a 32 percent income tax hike.
Clearly the deep financial hole Illinois has dug for itself cannot by filled by cuts alone. In addition, legislators were looking at Illinois’ bond rating being lowered to junk status, a measure that would have cost the state even more when borrowing funds.
With unfunded pension liabilities, school districts and universities swimming in red ink, there is still plenty of work to do.
As much as we hate having our taxes raised, tough choices had to be made — this wasn’t going to be easy.
Bryant stepped up to make a choice that we believe benefits the state in both the long and short term. Voters are free to agree or disagree with her vote. But, they are obligated, morally and legally, to express that disagreement in a civil manner.
* The Question: Your tax hike winners and losers? Don’t forget to explain your answers.
* The Chris Kennedy campaign just finished a call-in for political reporters about its latest poll. As we’ve already discussed, Kennedy’s poll has the candidate ahead of JB Pritzker 44-38. Here are a few notes…
* 45-5 positive/negative for Kennedy.
46-12 positive/negative for Pritzker.
Pawar and Biss are in “low single digits.”
In a December poll, Kennedy was leading Pritzker 34-18.
* 3 of 5 voters know both of the candidates. 80 percent know Pritzker. 70 percent know Kennedy. Among the “know both” it’s 49-37 for Kennedy.
After 4 pro-Kennedy statements were read, Kennedy’s lead went to 66-20.
* They mentioned two big problems for Pritzker in the polling. The FBI tapes of Pritzker talking to Blagojevich, for example, led to 55 percent of respondents saying they have “major doubts about supporting JB Pritzker.” That number was 60 percent on Pritzker’s property tax issues.
By contrast, the top testing negative on Kennedy was 21 percent: “He talks tough on property taxes but benefited” from property tax breaks.
A property tax issue polls worse than an FBI tapes issue. Think about that for a second. People are up in arms about property taxes, man.
* Consultant Eric Adelstein repeatedly said during the briefing that the campaign is confident that it will have the resources to get its message out and compete.
*** UPDATE *** Yesterday was the A-1 filing deadline day, and Kennedy reported a mere $438,834.92 in large contributions. That’s not good at all. [For some reason, my previous search included stuff that shouldn’t have been in there. This is a revised post.] He had $907K on hand at the beginning of the last quarter. We’ll see what their burn rate is by July 17th, when D-2s are due.
In October, the DNC will give a $10,000 monthly grant to each state party, running through the 2018 midterms — a one-third increase over its 2016 commitments, which came when the party’s presidential campaign was winning the money wars. […]
The DNC is also launching a State Party Innovation Fund, with $10 million earmarked for grants that state parties can compete for by organizing and modernizing; funds, according to the party, will be devoted to “innovation, best practices and organizing in base, rural, millennial and youth communities, in addition to help with building technical infrastructure.”
Among the aids already available: Knock 10, a phone app designed to streamline the process of door-knocking to encourage extremely early voter persuasion. (A common post-election critique of Hillary Clinton’s campaign was that it failed to do early persuasion, letting a voter advantage slip away in the three states that decided the election.) “Anyone can use the app, but only Democratic state parties get the data back and already state parties have begun to take advantage of this app to get more people involved in their communities,” said the DNC in a statement.
I’m not exactly holding my breath that DPI will compete for those new innovation funds, either. It’s notorious for being the most Luddite organization in the land. And it’s a state party in name only, existing mainly to win Illinois House races.
I mean, can you imagine this conversation?…
Staffer: Mr. Speaker, the DNC has this cool new phone app called Knock 10.
Speaker: What is a ‘phone app’?
Staffer: It’s a software application for mobile phones.
Speaker: As you are aware, I have no knowledge of mobile phones. I prefer my rotary.
Staffer: But lots of people have mobile phones, Mr. Speaker, sir.
Speaker: I have a Knock 10 idea for you, young man. Please leave my office immediately and go knock on ten doors in Mr. Moylan’s district.
A simple question — weighed down by a clunky domain name — is drawing attention to the serious lack of estrogen in Illinois’ gubernatorial race.
AreThereAnyWomenRunningForILGovernor.com attempts to nudge some women into the race for Gov. Bruce Rauner’s seat and calls on Democratic leadership to diversify its 2018 offerings.
The site, once you take the clickbait, delivers you to a giant red NO. The answer’s fairly self-evident, but it sits atop a handful of statements that link to organizations encouraging women to seek higher office. […]
Illinois has a long and storied history of exclusively white male governors, four of whom went to prison. (Lock him up!)
I don’t know. Maybe it’s time to mix things up a little.
Illinois Democrats: Zero women are running for governor. What’s your plan to support women leaders in our state?
(sign your name if you agree–all are invited to sign)
We are disturbed that of all the Democratic candidates running for Illinois governor, zero are women. Zero.
Of these eight straight, cisgender men, six are white. This is a problem.
Make no mistake: We will fight like hell to elect whichever candidate wins the Democratic nomination, because no one could be more harmful for Illinois women than Bruce Rauner. But it is time to acknowledge the obstacles hindering women from running for office in our state–from the overwhelming presence of big money in elections to a lack of leadership from the Democratic Party in recruiting and training women and people of color to run.
So, Democratic Party leaders: What is your plan to address the hurdles keeping women, and especially women of color, from advancing in elected office in Illinois? We commit to fighting for those needed changes from the grassroots level.
A hoped-for academic pipeline at Springfield’s medical school to produce a steady stream of cancer doctors for patients in central and southern Illinois was quashed by the two-year state budget crisis.
Even though the crisis was resolved last week after the Illinois House and Senate overrode vetoes of Gov. Bruce Rauner, a proposal to establish an oncology training program now could take years to be resurrected.
The Springfield campus of Southern Illinois University School of Medicine had hoped to welcome the first two doctors this summer for a planned three-year fellowship program in oncology-hematology, according to Dr. Aziz Khan, executive director of SIU’s Simmons Cancer Institute.
But that plan — which would have cost about up to $450,000 per year for trainees’ salaries and benefits — was put on hold two years ago, Khan said. That’s when finances began to tighten for the medical school and the two Springfield hospitals that provide the school millions of dollars in financial support each year.
“This is a big loss, I feel, for the community,” Khan said.
* Greg Hinz asked Civic Federation President Laurence Msall and Illinois Taxpayers’ Federation President Carol Portman three questions about the budget. Here are the first two…
Question one: Democrats say the $36 billion spending plan they enacted last week is “balanced.” Rauner says it’s $2 billion out of whack. Who’s right?
Msall notes that the bulk of the $2 billion is due to extra spending in fiscal 2017 that was not financed then or in the fiscal 2018 spending plan that just was adopted by override. “We believe a calculation on of the operating surplus or deficit should be based on the current year’s results,” he adds. “The prior year’s results are reflected in the backlog of bills.”
So, one vote for the Democratic position—and Portman tends to agree. “We’ve frequently spent more than we’ve brought in and not cleaned it up before carrying on into the next year. That doesn’t make it OK,” she says. “But that doesn’t mean the FY18 budget package as passed doesn’t balance, if it truly spends no more than we expect to bring in for the fiscal year. . . .I’d say both sides are right—they’re just using a different definition of ‘balanced.’ ”
Question two: Democrats claim their version cuts spending by $1 billion or more below the budget Rauner introduced. True?
Msall sides with Rauner on this one. “The spending is roughly equivalent, even though on paper the governor’s budget is $37.3 billion and the General Assembly’s $36 billion. The (General Assembly’s) budget appears to be smaller mainly because of transfers out” from the general funds to other funds that spend the money themselves. That reduced general funds spending, but not total spending.
Yeah. They used the exact same accounting gimmick that Rauner and the Republicans used in their “Capitol Compromise” proposal.
* Rep. Greg Harris (D-Chicago) offered this explanation to the SJ-R…
Harris, however, says that with a change in how the state disburses the income tax and a boost from a tax hike on workers’ salaries, Springfield will come out with 6 percent more this year in its share of income tax.
Harris said the gains will happen because the state will accelerate payments to local governments by directly transferring the money to them instead of having them wait in line for a transfer from the state’s general revenue funds. Municipalities will receive their share within 60 days, Harris said. With those faster payments, cities would see 14 payments instead of 12 this year.
So, they moved money intended for the Local Government Distributive Fund out of GRF and into a new fund that directly transfers payments to the locals. That will, indeed, speed up payments and has the added “benefit” of taking the money off budget and making it look like locals get an increase when it was really just money that was owed to them.
However, expediting these payments means the comptroller can’t use her discretion to delay writing LGDF checks while she pays for something else more pressing. And that means there will be more cash flow pressures every month. Things could get super tight.
In a Garin-Hart-Yang survey conducted June 26- 29, Chris Kennedy maintained a strong lead over billionaire J.B. Pritzker, despite Pritzker spending over $8 million on a television and direct mail blitz, nearly 10 months out from the Democratic primary. Kennedy led Pritzker 44% to 38% in the trial heat. Among voters that knew both candidates, Kennedy held a larger lead 49% to 37% in the trial heat, suggesting that Kennedy has room to grow as more voters hear his message.
“Democratic primary voters want radical change in Springfield, and they aren’t falling in love with Pritzker’s big wallet,” Brendan O’Sullivan campaign manager said. “Big money talks, it doesn’t listen, and voters are tired of billionaires in both parties trying to buy their votes. It’s why Chris has maintained a strong lead even in the face of record spending against him. Voters are respond to Chris’ message of being independent of the party machine, fighting for real reforms to make Springfield work for Illinois families, and restoring the promise of the American Dream for everyone in the state.”
OK, but Kurt Summers’ poll taken in early March had Kennedy at the very same 44 percent. Pritzker was polling at just 11 percent, so he’s more than tripled his support since then. It’s cost him a pretty penny to do that, but money is apparently no object. And keep in mind that Pritzker has not run any ads against Kennedy, which could be coming.
* And we’ll see what Kennedy’s quarterly fundraising reports show. Sen. Daniel Biss may be hard to top…
We have a first look at gubernatorial candidate Daniel Biss’ second quarter numbers; the Democrat says he’s preparing to report more than $1 million raised between April and June. The Biss campaign believes that will place him right up with Chris Kennedy (perhaps even surpassing Kennedy?) for second-quarter fundraising.
Breaking it down: Biss’ camp is basing this on the large-dollar contributions they’ve received. Biss’ campaign says so far he’s in the lead with an expected $560,000 raised. The largest donation, according to Illinois Campaign for Political Reform, is $100,000 from the Senate Democratic Victory Fund. A statement from the group said Biss had donated that amount to the fund last November and that it is not endorsing.
Kennedy, as of Sunday, had roughly $400,000 in large-dollar contributions and Pawar had $79,000. Of course, billionaire J.B. Pritzker far outpaces the Democratic field because he is self-funding. He has given $14 million to his own campaign thus far.
Totals: “Biss now sits with over $2.3 million cash on hand,” a release from his campaign states. “The second quarter haul came from more than 2,700 donors representing over 230 cities and towns across Illinois. Two-thirds of Biss’s Q2 donations were for under $100, and 95% of them came from in-state.” Full second-quarter filings are due July 17.
*** UPDATE 1 *** On background, I’m told by the Kennedy folks that the poll “is not good for JB.” Pritzker, they say, has a “low ceiling” and “explosive negatives. The electorate, they claim, “wants to go with Kennedy by every measure.”
They’re having a press briefing at 1:30, so we’ll know more then.
*** UPDATE 2 *** Pritzker campaign…
“It’s exciting to see Chris Kennedy’s own internal polling numbers confirming the surging support and enthusiasm that JB has been feeling around the state,” said Pritzker campaign manager Anne Caprara. “A 27-point polling jump in three months would be exciting for any campaign, but it’s particularly encouraging given the strong recognition of the Kennedy name. JB is proud to be growing his support with Illinois’ working families and grateful to Chris Kennedy for letting people know.”
Could ERIKA HAROLD, the former Miss America who ran for Congress from the 13th Congressional District in the 2014 primary, be a Republican candidate for attorney general?
MARK MAXWELL, Springfield bureau chief for WCIA-TV, recently said on Twitter that Harold is the state GOP’s leading candidate for that office, held since 2003 by Democrat LISA MADIGAN.
Harold got 41 percent of the vote in a three-way primary race in the 13th in 2014, losing to U.S. Rep. RODNEY DAVIS, R-Taylorville. The 13th includes part of Springfield.
I left messages for Harold — who practices law in Champaign — and got a reply back from a spokesman for the state GOP, who sent a quote from Davis.
“Erika Harold is exactly who we need to take on the Chicago machine,” the congressman said. “A Harvard-educated lawyer and a national leader combating school violence, Erika Harold tells the hard truths and always stands up for those in need. I know she’ll take on the corruption in state government.”
As the state’s chief investment officer, Illinois State Treasurer Michael Frerichs today laid out the steps Gov. Bruce Rauner must take to prevent Illinois from sinking into junk bond status now that a budget package has been approved.
“The credit-rating agencies have indicated that the new revenue and spending cuts alone are not enough to insulate the state against further credit downgrades, including junk bond status,” Frerichs said. “I understand that Gov. Rauner disagrees with the elected members of the House and Senate. However, should he not take these necessary steps, he is inviting the credit-rating agencies to plunge Illinois into junk bond status, the results of which will lead to higher property taxes.”
To avoid becoming the first state in history to be assigned junk bond status, the Governor must:
· Travel to New York, speak directly with the three ratings agencies, and convince them that he embraces the decision of the Legislature and will implement the budget package.
· Immediately take visible, responsible steps to implement the $6 billion in bonding authority, which will yield $3 billion in additional federal dollars to pay down the $15 billion bill backlog.
· Make sure that local schools open on-time. K-12 education funding in the budget package is predicated upon a separate agreement that state dollars will be distributed on an evidence-based model. Lawmakers passed legislation that does so. However, the Governor has promised a veto. Vetoing this agreement, or in the alternative, not striking a different deal, will create more instability, which the rating agencies are expecting Illinois to avoid. It also will threaten local schools from Cairo to Chicago and be a complete disaster for parents.
· Clearly and proactively communicate the new tax rates with Illinois employers to eliminate any confusion. Doing so will ensure that revenue estimates and cash-flow expectations are met.
· Eliminate the divisive rhetoric that is impairing our state from moving forward. This divisiveness counters the civility and bi-partisanship the rating agencies wish to see.
“This mix of revenue and cuts is far from perfect. It is, however, now the law and if implemented it is a critical first step to addressing Illinois’ deep, structural challenges,” Frerichs said. “It is clear that we will not begin to climb out of this debt if the Governor does not take the necessary steps to lead us away from the abyss.”
Earlier this year, Frerichs warned that the inability to reach a budget agreement would invite further credit downgrades that would increase the cost of necessary borrowing. Frerichs also warned of impending junk bond status and, if reached, how that would exasperate the financial markets because some investors are restricted from doing business with entities that have junk bond status. This is true even though entities that purchase Illinois debt have iron-clad constitutional guarantees that they will be paid.
Illinois also uses toxic credit-swap agreements. Junk status invites termination of these agreements. Termination penalties of up to $107 million, in addition to interest rate penalties, could be demanded by the lending agencies.
Illinois has endured eight credit downgrades since Gov. Rauner took office in January 2015. All involved the state’s bill backlog, now estimated to be $15 billion, the budget impasse, and other factors.
The budget package approved by Democrats and Republicans is the first in two years. It was enacted over the Governor’s opposition and plans to spend $36.1 billion in the fiscal year that began July 1, 2017. Currently, the state spends $39 billion annually, so the package represents a $3 billion spending cut. The cuts, combined with new revenue and federal matching dollars, could allow for up to $8 billion of the bill backlog to be addressed.
However, it will take several years, including the likelihood of several more challenging budget packages, for Illinois to eliminate the bill backlog and return to a more acceptable payment cycle of 30-90 days.
“The low rating from the rating agencies is reflective of the fact that Madigan’s 32 percent permanent tax increase will not solve the problems created by decades of unbalanced budgets, unfunded pension liabilities, borrowing and high debt,” Eleni Demertzis said.
“Even with the tax increase, this budget remains $2 billion out of balance for fiscal year 2018. The best thing we can do is to work collaboratively to pass truly balanced budgets that pay down our debt, reform our pension system, and make the changes necessary to drive economic growth in our state.”
What happens when a Democrat in the Illinois House won’t kneel before Boss Madigan?
Punishment, isolation and mockery.
State Rep. Scott Drury, of Highwood, is paying for not voting for Madigan for speaker of the house, where Madigan has reigned for decades.
The former federal prosecutor has been stripped of his position on a judiciary committee. His ethics legislation, he understands, will die. And he’s been mocked by Madigan’s smarmier mouthpieces.
“I’m being punished, it’s fair to say,” Drury told me in an extensive interview on my podcast, “The Chicago Way,” on WGN-AM.
Also toying with throwing his hat into the ring is Lake County lawmaker Scott Drury of Highwood. If the 58th District representative takes the gubernatorial plunge, he can expect Madigan to ignore him about like the Trump administration ignores climate change.
That’s because Drury was the lone House Democrat who voted against re-electing Madigan speaker of the House to a record 17th term in January when the 100th General Assembly was reorganized. It was Drury’s finest “Mr. Smith Goes to Washington” hour.
It was also a lesson to the former U.S. attorney and his fellow lawmakers to find out what happens when a Democrat crosses cold-hearted Madigan’s iron rule in the House: Drury is now what only can be considered akin to an exiled member of the old Soviet Politburo. Instead of being sent to Siberia, he has to toil in Springfield with little serious committee assignments.
When readers last heard of Democratic state Rep. Scott Drury of Highwood — it was late January — he was being punished by House Speaker Michael Madigan for opposing Madigan’s re-election as the man in charge of the Illinois House of Representatives.
After Drury declined to support Madigan’s re-election as speaker — the only one of 67 House Democrats to do so — Madigan stripped Drury of his seat on an important committee where he served as vice chairman. The move not only cost Drury a coveted spot on a key committee, but also a roughly $10,000 stipend for serving in a leadership role.
A Democratic state representative said he’s being bullied for not voting for Mike Madigan as the House Speaker.
Rep. Scott Drury voted “present” earlier this month for Speaker. He also voted against the House Rules. After that, he noticed something strange: he didn’t receive a gift bag like other Democrat House members.
“I later learned that it was a deskclock that was engraved, touting Speaker Madigan’s lengthy tenure as Speaker of the House,” Drury said.
Madigan has been Speaker all but two years since 1983.
* I re-posted all of those clips because now I’m wondering if the same voices of outrage will rise to the defense of Rep. Steve Andersson, who was kicked out of House GOP leadership yesterday for supporting a budget package funded with a tax hike.
After years of ugly gridlock and weeks of groups and political leaders whipping up an already-disgusted populace over a 1.2 percentage point income tax increase, lots of legislators were understandably on edge last week.
Rep. Will Guzzardi, D-Chicago, tweeted ahead of the votes to override Gov. Bruce Rauner’s vetoes of a budget package that it was “hard not to think about the (recent Virginia) congressional shooting showing up to work today.”
And so people were naturally a bit rattled when a woman triggered a more than two-hour delay of those override votes as police and a hazardous materials team frantically combed the Statehouse.
The woman, described by a friend as a “wonderful” person and “beloved” by many, threw some sort of substance at or into a few offices, including the governor’s. A couple of her friends said she might have been attempting to perform a “good luck” ritual.
Depending on your outlook, her possible good luck ritual either worked or failed. We now have a tax increase and a sort of balanced budget, and everyone can take a breather for a while. On the other hand, we now have a tax increase and a sort of balanced budget that are fabulously unpopular and will require more work to fix.
Next fiscal year’s budget is really not going to be pretty, but trouble will start even before then. Moody’s already has declared that it could downgrade the state to junk bond status even with the tax increase. If that happens, it will damage the government’s ability to borrow to pay off some of the $15 billion in debt that has been piling up during the two-year impasse.
And even if Illinois isn’t immediately downgraded, the state will hover on the precipice of junk status for the foreseeable future, perhaps for years. There just isn’t enough money on the revenue side of this plan and too much on the spending side to ensure balanced budgets into the future and to pay off that mountain of backlogged bills.
What lawmakers did was fix the state government’s immediate problem. A broader deal would have been preferable, but that obviously wasn’t possible. And there isn’t a person around Rauner who doesn’t think that he now has a dual political advantage of new state revenues to spend along with his popular opposition to the tax increase.
So, now what? There’s a belief by some that House Speaker Michael Madigan has the very thing he has wanted for more than two years: A working bipartisan super-majority to override the governor at will.
But that, I think, is a misinterpretation of what happened. Madigan didn’t create that super-majority, his members did. If it had been left up to Madigan alone, the tax increase probably would have failed. His members were the ones who reached out to their Republican colleagues to negotiate a budget and a tax increase. And when Madigan tried to send them home for a few days, they insisted he keep the House in session and call the votes.
When Republicans started dropping off the roll call last week after taking tremendous heat, Madigan could have let the override fail and made Rauner be forever tagged as “Gov. Junk.” But his members wanted it to pass, so he rounded up more Democratic votes, including a couple of his own targets — something that never happens in that caucus.
Madigan’s members will be hugely important to any further veto overrides, but those breakaway House Republicans will be even more crucial.
And that leads us to the education funding reform bill. As I write this, the Senate has not sent the bill to the governor, who has vowed to veto what he calls a “Chicago bailout.” While that bill helps more truly needy districts in the long run than the governor’s plan, it does contain more money for Chicago Public Schools.
After taking unimaginable heat for voting for a tax increase, it seems doubtful that those same 10 Republicans will then turn around and vote for a “Chicago bailout” that will be portrayed as stealing money from their own students. Without those votes, a veto can’t be overridden.
Both the Democratic and Republican school funding plans require state aid to be distributed via a new formula. No new formula, no school funding. No school funding, lots of schools don’t open after summer vacation. And just like that, we’re in another full-blown crisis.
Maybe that woman could be brought back to the Statehouse for another good luck ceremony, only without the haz-mat teams this time.
This column was written last week before the governor hired the Illinois Policy Institute’s chief operating officer to be his new chief of staff. As such, I’m now much more on the fence about what will happen with SB 1.
* From a memo just sent out by House Republican Leader Jim Durkin…
Following the conclusion of the spring and early summer legislative session, I decided that it would be in the best interest of the Republican Caucus to go in a new direction with the position of our Floor Leader. This afternoon, I asked Representative Andersson to step down from the position. He agreed, stating he also believed it would be in the best interest of the caucus. I hope to make an announcement on a new Floor Leader in the coming weeks.
Andersson, of course, was one of the House Republicans who voted for the tax hike/budget bills and in favor of overriding the governor’s vetoes. He was also “whipping” HGOP votes in favor of both sets of roll calls.
* Welcome to the new world. Dan Proft had an on-air scoop this morning that Richard Goldberg is out as Gov. Rauner’s chief of staff and is being replaced with Illinois Policy Institute President Kristina Rasmussen, and then one of Proft’s newspapers picked it up…
Dan Proft, principal of Local Government Information Services (LGIS), which publishes the Sangamon Sun, first reported the story on his morning radio show on Chicago’s AM 560.
Rasmussen, 34, of Springfield, has been with IPI since 2009. She was elevated to President and COO in 2015.
Goldberg, 33, of Skokie, joined Rauner’s staff in Jan. 2015. He became Chief of Staff in Jan 2016.
Unlike Richard, she has a very pleasant public personality, but is a true believer who will fit right in with the governor’s Randian ideology. We are heading for an even sharper turn right in the wake of four bipartisan veto overrides in a week (three on the budget and one on the 911 bill).
Ain’t gonna be any more deals.
* The Democratic Governors Association is already out with a press release…
ICYMI: Rauner’s New Chief of Staff Slams Governor for Supporting Tax Increase
Today, Kristina Rasmussen was announced as Bruce Rauner’s new Chief of Staff. Rasmussen was recently the President and COO of the Illinois Policy Institute.
Below is the last article she wrote at IPI [in June].
A new poll shows Gov. Bruce Rauner’s political base opposes the tax hike budget proposal the governor has supported. And Illinoisans who favor the tax hike budget proposal do not support Rauner.
The political calculation behind Gov. Bruce Rauner’s embrace of the tax hike budget plan backed by certain Republicans in the Illinois General Assembly would seem to be one of self-preservation. The benefit of appearing to back a solution – even one with over $5 billion in economically damaging tax hikes – might seem to outweigh the risk of standing firm on pro-taxpayer principle.
But new polling results show otherwise. Illinois Policy commissioned an overnight poll of 500 Illinois likely voters, which Fabrizio, Lee & Associates conducted on June 20. Pollsters asked Illinoisans whether they favor a budget with tax hikes and minimal reforms – a plan the governor has indicated he will support – or whether they favor a budget that balances through spending cuts with no tax hikes.
The results reveal that in supporting a tax hike budget plan, the governor is pursuing a politically disadvantageous course. The budget the governor is backing is unpopular with his own base of support – and that same base prefers Illinois Policy’s vision of a state budget that balances through spending reforms without tax hikes.
Rasmussen has been at the helm of the organization since 2009, when she joined the Institute as executive vice president. Under Rasmussen’s leadership, the Institute has become the state’s premiere economic research engine – producing impactful work on budget and tax issues, pensions, education reform, government transparency, economics, criminal justice reform and other issues.
Rasmussen, together with CEO John Tillman, shepherded the Institute’s rapid and successful expansion over the years. In 2012, the Institute launched its nonprofit, statewide news service, the Illinois News Network. Today, INN supplies opinion and news content to more than 50 news partners on a daily basis. In 2013, Illinois Policy Action was launched as a vehicle for taxpayers to join together and amplify their voice in the Illinois Statehouse. It operates as a nonprofit, nonpartisan 501(c)4 organization.
The Institute now has more than 45 full-time employees and is one of the the largest free market organizations in the country. In 2015, Rasmussen won the State Policy Network’s prestigious Overton Award for her leadership and contributions to the liberty movement.
*** UPDATE 1 *** No campaign role for Goldberg. He’s leaving town…
Governor Bruce Rauner today announced that Chief of Staff Richard Goldberg will be transitioning back to foreign policy, national security and consulting following a three-plus year term as senior adviser to the Rauner 2014 campaign, Deputy Chief of Staff for Legislative Affairs and Chief of Staff. Kristina Rasmussen will serve as Chief of Staff.
“Rich is one of the most talented policy, political and communications advisors I’ve ever met and I will forever be indebted to his faithful public service for the last three and a half years,” Governor Rauner said. “I respect his decision to return to national security, foreign policy and consulting. Diana and I will always value his counsel and we wish him the best of luck in his next adventure.”
Prior to his service with Governor Rauner, Goldberg served as Deputy Chief of Staff for then-Senator Mark Kirk where he helped negotiate three rounds of economic sanctions against the Islamic Republic of Iran and worked to secure the deployment of an advanced U.S. missile defense radar to Israel. Goldberg also serves as a Navy Reserve Intelligence Officer and served in Afghanistan in 2011.
* And…
Governor Bruce Rauner announced today that Kristina Rasmussen has been appointed Chief of Staff in the Office of the Governor. Rasmussen will replace former Chief of Staff Richard Goldberg, effective on July 10, 2017.
Rasmussen joins the Administration from the Illinois Policy Institute, where she has served as president and chief operating officer. Rasmussen previously served as director of government affairs for the National Taxpayers Union. She is a graduate of George Washington University and Randolph-Macon Woman’s College.
“Kristina has worked tirelessly to defend taxpayers over the course of her career,” said Governor Rauner. “Her record of achievement speaks for itself, both nationally and right here in the Prairie State.
“My vision has always been for an Illinois that is prosperous and compassionate, with a state government that serves the people, rather than the other way around. That’s Kristina’s vision too, and that’s why I have appointed her my next Chief of Staff.”
Like I said above, she fits in neatly with the governor’s ideological bent.
*** UPDATE 2 *** Goldberg has been wanting to leave for a while now, so his exit isn’t that much of a shock. Most figured he’d leave after a budget was in place. He’s been talking about returning the world of foreign relations for a while now.
His replacement, however, is somewhat of a shock. There was an identifiable internal replacement for Goldberg. Rauner most definitely went in a different direction.
And that new direction should help the governor avoid a Republican primary. He just shored up his right flank.
*** UPDATE 3 *** Press release…
Illinois Policy Institute CEO John Tillman issued the following statement in response to the news that former Illinois Policy Institute President Kristina Rasmussen has been appointed chief of staff to Gov. Bruce Rauner:
“Though we will miss her immensely at Illinois Policy Institute, we are thrilled that Kristina is bringing her passion for sound policy, her love of liberty, and her vision of an Illinois that is prosperous and free to the service of a governor who shares all those qualities. Gov. Bruce Rauner was elected on the promise to translate those ideas into action – and his engagement of Kristina is an unmistakable signal that he intends to fulfill it.
“The 32 percent tax hike without reform that the General Assembly just passed illustrates the imperative to win the fight to put the people of Illinois first. We must reform the system that has allowed House Speaker Mike Madigan and his political machine to create such hardship for working families. With the governor’s decision to add Kristina to his team, Illinois taxpayers and families have an effective and proven champion on their side.”
*** UPDATE 4 *** Press release…
This morning, Illinois Governor Bruce Rauner announced that Kristina Rasmussen replaced Richard Goldberg as the administration’s Chief of Staff. Rasmussen had been serving as President and Chief Operating Officer of Illinois Policy Institute (IPI) and Illinois Policy Action (IPA). Illinois Opportunity Project President Matthew Besler released the following statement in response to Rasmussen’s appointment:
“Since 2009, Kristina has contributed immeasurably to the freedom movement in Illinois. Under her bold leadership, the Illinois Policy Institute has become the largest, most respected state think tank in the country. She is a talented executive and understands the issues.”
“The addition of Kristina Rasmussen signals a welcome departure from the approach that has placed partisan maneuvering and political insiders ahead of families and businesses. The people of Illinois are suffering. Today, more than ever, they are ready for a transformation in state government. A driving force behind IPI’s expansion, Kristina is the ideal person to usher in that change.”
“The Illinois Opportunity Project is greatly encouraged by Governor Rauner’s choice of Kristina Rasmussen as his Chief of Staff. With her at the helm, we are confident the Governor is returning to the revolutionist instinct that won him the governorship in 2014 and brought hope to the people of Illinois. We sincerely thank Kristina for her tireless efforts toward protecting families from Springfield elites in the expansion of the liberty movement. And we fully support her in this new role.”
*** UPDATE 5 *** Check out the new Google ad announcing their takeover…
*** UPDATE 6 *** Pritzker campaign…
Bruce Rauner isn’t shaking up Springfield, but he is shaking up his own administration following four bipartisan veto overrides and a complete failure to accomplish any of his legislative goals during his time in office. Rauner knows the damage is done. Someone had to pay the price for Rauner’s failed leadership, and once again, it wasn’t going to be Bruce Rauner himself.
Richard Goldberg was ousted from the Rauner administration and will be transitioning back to consulting. Rauner’s new chief of staff, Kristina Rasmussen, previously ran the Illinois Policy Institute and will be perpetuating the governor’s extreme ideology.
“The Illinois Policy Institute proposes fantasy budgets that seek to decimate Illinois working families, so this is a perfect choice for Bruce Rauner,” said Pritzker campaign manager Anne Caprara. “Last week, after 736 days of crisis, Bruce Rauner’s own party rebuked his special interest agenda. This week, Rauner is doubling down with a new chief of staff who has proposed dramatic cuts to education, raiding local government funds, and decimating unions. This is a failed governor entirely incapable of learning from his many mistakes, seeking compromise, and getting anything done. His new chief of staff will be a partner in his continued damage to Illinois.”
*** UPDATE 7 *** The governor’s new chief of staff was a Breitbart columnist back in the day. Click here for the archive. (Hat tip: IWT)
…Adding… Noted…
https://t.co/wNGbWBriRI didn't exist until 2012, following Andrew's death when everything was re-launched.
*** UPDATE 8 *** From the Illinois Policy Institute’s news service…
Rasmussen is believed to be the first female chief of staff on a governor’s team in Illinois history. In the past 30 years, no other female has held such a position in the state.
* I checked today and this blog has been open and functioning at full speed every day, including weekends, since Monday, June 19th. I have published a subscriber edition every day but one since then. I’m not complaining and I’m not bragging. Lots of people work far harder and a whole lot more than I do. I also love my job. I’m just saying that I’m tired. I’m pretty sure I won’t re-open on Monday and instead take a three-day weekend. We could all probably use the break from each other and I could definitely use the sleep. I also need to catch up on some weekday-only errands.
* Not exactly a big news story, but an oppo file landed in my in-box a bit ago, so here it is…
Bruce Rauner Has Paid His Property Taxes Late 5 Times
The First Installment Of The 1996 Property Taxes On Rauner’s Winnetka Home Was Paid Late, Resulting In $31.64 In Interest Charges. (Cook County Treasurer Records)
The First Installment Of The 2000 Property Taxes On Rauner’s Winnetka Home Was Paid Late, Resulting In $231.66 In Interest Charges. (Cook County Treasurer Records)
The First Installment Of The 2005 Property Taxes On Rauner’s Winnetka Home Was Paid Late, Resulting In $284.26 In Interest Charges. (Cook County Treasurer Records)
The Second Installments Of The 2014 Property Taxes On Rauner’s Winnetka Home, Chicago Condos, And Parking Spaces Were Paid Late, Resulting In $1,179.58 In Interest Charges. (Cook County Treasurer Records)
The First Installments Of The 2016 Property Taxes On Rauner’s Winnetka Home, Chicago Condos, And Parking Spaces Were Paid Late, Resulting In $1,291.89 In Interest Charges. (Cook County Treasurer Records)
Chris Kennedy Has Paid His Property Taxes Late Four Times
The First And Second Installments Of The 2014 Property Taxes On Kennedy’s Kenilworth Home Were Paid Late, Resulting In $959.77 In Interest Charges. (Cook County Treasurer Records)
The First And Second Installments Of The 2015 Property Taxes On Kennedy’s Kenilworth Home Were Paid Late, Resulting In $985.36 In Interest Charges. (Cook County Treasurer Records)
Daniel Biss Has Paid His Property Taxes Late Twice
The Second Installment Of The 2006 Property Taxes On Biss’ Evanston Home Was Paid Late, Resulting In $44.57 In Interest Charges. (Cook County Treasurer Records)
The First Installment Of The 2014 Property Taxes On Biss’ Evanston Home Was Paid Late, Resulting In $47.43 In Interest Charges. (Cook County Treasurer Records)
Again, it doesn’t look all that horrible to me, but whatevs. Maybe somebody else will get riled about it.
* Social service providers are breathing a sigh of relief with the new budget, but they were whacked so hard by the gridlock that it’s going to take a while to recover…
For providers of drug-abuse and mental-heath treatment, the budget crisis-related gaps in funding and uncertainty led to the layoffs of more than 1,000 people at various agencies statewide, Howe said.
Several centers opted to close down permanently.
Because of political bickering, the capacity of human-service providers in Illinois to serve low-income patients seeking addiction-treatment services dropped during a nationwide opioid crisis, she said.
“It will take years to fix this devastation,” she said.
John Kelker, president of the Springfield-based United Way of Central Illinois, said the budget crisis caused many local human-service providers locally to lose highly trained professionals through layoff or people choosing to leave the field.
“How are they going to pay everybody?” said Merri Ex, CEO of Family Focus, which recently received enough funds from the state comptroller’s office to delay planned layoffs and program cessations. “It’ll take a long time before (the state) catches up.” […]
What the budget lacks is full funding to pay back bills from 2016 and 2017, [Illinois Collaboration on Youth CEO Andrea Durbin] said, adding that the coalition has been told that a combination of fund sweeps and bonding will be used to pay the bills.
“This is not a cash infusion,” said Abdon Pallasch, spokesman for Illinois State Comptroller Susana Mendoza. Once the income-tax hike takes effect, “it will take a while to catch up on all the unpaid bills once the new revenue comes in,” he said, adding that “the comptroller has been prioritizing social-services agencies and the state’s most vulnerable.”
The state owes about $5 million, for example, to Lutheran Child and Family Services of River Forest. Earlier this year, the agency laid off 100 staffers, or 25 percent of its workforce, and shut down nine programs. CEO Mike Bertrand is doubtful that the budget will help the agency restore the programs or rehire the workers. The agency has signed about $24 million in state contracts for fiscal 2018, Bertrand said. “We are certainly hopeful that we as a state will move forward and not let this happen again,” he said.
What the budget lacks is full funding to pay back bills from 2016 and 2017, Durbin said, adding that the coalition has been told that a combination of fund sweeps and bonding will be used to pay the bills. “This is not a cash infusion,” said Abdon Pallasch, spokesman for Illinois State Comptroller Susana Mendoza. Once the income-tax hike takes effect, “it will take a while to catch up on all the unpaid bills once the new revenue comes in,” he said, adding that “the comptroller has been prioritizing social-services agencies and the state’s most vulnerable.” The state owes about $5 million, for example, to Lutheran Child and Family Services of River Forest. Earlier this year, the agency laid off 100 staffers, or 25 percent of its workforce, and shut down nine programs. CEO Mike Bertrand is doubtful that the budget will help the agency restore the programs or rehire the workers. The agency has signed about $24 million in state contracts for fiscal 2018, Bertrand said. “We are certainly hopeful that we as a state will move forward and not let this happen again,” he said.
After yesterday’s historic bipartisan budget votes by the Illinois House, Do Your Job, Inc. is asking Governor Rauner to stop obfuscating responsibility, put politics aside and do his job in a new ad which will air on broadcast and digital platforms.
During the governor’s self-inflicted budget crisis, Illinois has experienced what former republican Gov. Jim Edgar described as the worst condition he can ever remember including the state’s tenure during disgraced former Governor Rod Blagojevich. Now, Gov. Rauner has engaged in a campaign spree blaming everyone but himself for a tax increase he supported for months. Rauner’s political apparatuses have also chimed in with threats of political retribution and dog-whistle politics.
Moving forward, the Governor can do his job by ensuring schools in Illinois are equitably funded. The legislature has passed Senate Bill 1, which Rauner overwhelmingly supports - to the tune of 90 percent per his education czar - but refuses to sign for what many perceive to be political reasons.
Do Your Job, Inc. is led by IL Sen. Michael E. Hastings of South Suburban Cook County, IL Rep. Lou Lang of Skokie and Illinois AFL-CIO President Michael T. Carrigan.
Last week, he tweeted. After 3 years of stalling, Governor Rauner said he was at his desk and ready to sign a budget. So Democrats and Republicans put politics aside sending Rauner a balanced, bipartisan budget. After 30,000 lost jobs, 15 billion in unpaid bills, schools faced with not reopening, it came down to one man. By vetoing the bipartisan budget, Rauner was the only obstacle to progress. Tell Rauner, next time, do your job.
ILGOP Releases Video – Mike Madigan’s Tax Hike
Madigan’s Tax Hike Will Hurt Taxpayers
Mike Madigan’s permanent 32% tax hike includes zero reforms to help the people and fix our political system. It only rewards Madigan and his cronies with more taxpayer money that they have proven incapable of spending wisely. It’s a disaster for the long term health of Illinois.
The Illinois Republican Party is highlighting Madigan’s tax hike with a new digital video.
The income tax increase all but guarantees that residents not directly affected by, and therefore who perhaps ignored, the last two years of dysfunction in the Capitol are about to get hit where they notice. If they weren’t paying attention then, you can bet they will be leading up to next year’s elections. Their ire in forking over more in income taxes might be tempered if lawmakers provide property tax relief and pass reforms that show the days of reckless fiscal policy in Illinois are over.
* The Question: Now that his budget vetoes have been overridden, should Gov. Rauner call a special session on purely non-budget issues? Click here to take the poll and then explain your answer in comments, please.
Steve Anderson, the Rep. from Geneva who, because of Rauner’s abdication of leadership, filled the void and became the de facto governor for the last week - organized with some help, but he was the lead organizer of the 15 Republicans who voted for this tax hike with no spending reforms as the Tribune opines.
KASS: So, if there’s an override today, Madigan is – is Rauner at fault for abdicating, for kind of disappearing?
PROFT: Yes…
KASS: For letting this happen?
PROFT: Yes, he is. And he’s tried to play this game, this inside game for the better part of the last 18 months, and it has been to no effect other than to diminish his standing, dilute his brand, and allow the likes of a Steve Anderson, allow the big government Republicans to be ascendant. So, I would say that’s a problem. That’s not – those aren’t good outcomes from the maverick who’s going to take on the power structure in Springfield to turnaround Illinois. […]
One of the questions is, does Rauner really want, his protestations not withstanding, does he really want his veto to be overridden? Because let me tell you, he doesn’t.
My hope of Dissolving Illinois — to save middle-class taxpayers from being stuck in this toxic wasteland of a state — hit a snag on Thursday.
It wasn’t the hazmat crews crawling over the Capitol Building in Springfield after finding some mysterious white powder tossed around the governor’s office.
It was what Democratic Boss Mike Madigan’s legislature did — with quisling Republican help — in overriding Gov. Bruce Rauner’s veto of their $5 billion, 32 percent tax increase without any real structural economic reforms.
A quisling… is a term originating from Norway, which is used in Scandinavian languages and in English for a person who collaborates with an enemy occupying force – or more generally as a synonym for traitor. The word originates from the surname of the Norwegian war-time leader Vidkun Quisling, who headed a domestic Nazi collaborationist regime during the Second World War.
He goes on to claim that Steve Andersson, “whined” about death threats. “I thought I could see his lower lip quivering a bit.”
And then he listed the “Republican Madigan enablers” by name.
Today, the JB for Governor campaign released new calls holding Bruce Rauner accountable for the damage he’s done to the people of Illinois through his 736-day manufactured budget crisis. Legislators overrode his desperate and reckless veto, but the suffering of Illinois families can’t be erased.
The robo calls will target state House and Senate districts across the state.
Among supporters, Mr. Rauner’s fierce opposition to a tax increase unless it included other items on his agenda — a freeze on property taxes, cuts to workers’ compensation, term limits — was seen as an example of sticking with principles in the face of overwhelming pressure. It also unveiled a 2018 campaign talking point against the Democrats who ushered through the increase.
“Nobody ever wins the next cycle running on a tax increase,” said Pat Brady, a former Illinois Republican Party chairman. “The governor came out way ahead.” […]
Bill Daley, a member of the Chicago Democratic political family who served on Mr. Rauner’s transition team, said he found the end of the two-year budget impasse “a little strange.”
“It’s pretty obvious that he didn’t get anything out of the last two years,” he said of Mr. Rauner. As for the 2018 election, “there’s only one strategy left for him, and that’s to run against everybody: Democrats, Republicans, the town.”
He’ll also benefit from that same New York Times article referring to him as a “fiscally conservative” leader, which is a crock. The budget he vetoed spent less than the budget he proposed in February, and it was far more balanced. The bill backlog tripled on his watch.
Spending has shot up to $38.1 billion this past fiscal year without a budget. The budget he vetoed spends $36 billion.
The Illinois Lottery has resumed sales of Mega Millions and Powerball tickets now that the state’s budget stalemate has concluded, lottery officials said.
The state stopped sales late last month of the popular Powerball and Mega Millions games due to its inability to contribute to the prize pool without a budget in place.
Road construction workers across the state will begin returning to work after the Illinois Department of Transportation said construction projects can resume with Thursday’s approval of a full-year state budget.
Workers were sent home or not called it at all on Monday, the first work day of the state fiscal year amid the ongoing budget impasse that led to the state shutting down approximately 900 transportation projects totaling $3.3 billion, according to one of the state’s largest contractor associations.
The Illinois Department of Transportation estimated 20,000 workers were affected.
But with Thursday’s Illinois House vote to override Gov. Bruce Rauner’s veto of budget-related legislation, IDOT on Thursday evening gave the green light to restart work.
* Now that Rep. Chad Hays (R-Catlin) has announced his retirement, longtime former Rep. Bill Black (R-Danville) has expressed an interest in running…
“I know my way around that situation a little bit and I think I could be an advocate for this district, as Chad was. And an advocate for community colleges and the university (of Illinois) and education,” said Black, who is on the board of Danville Area Community College. “I’m not a shrinking violet and I’m not going to go over there and say, ‘Oh, gee whiz, why did you do that?’” […]
“I’d be 77 years old when I was inaugurated, but one good thing is I’m not going to go over there and say, ‘Boy, I want to stay here as long as I could stay,’” he said. “It would be with no trepidation and no fear of what might happen to me, other than health-related.”
Black acknowledged that he has kidney disease, “but it’s under control.” And he had what he called “a mild heart attack” three years ago, “but I’ve got a great cardiologist.”
He said he and wife Sharon “were out and about yesterday and people were very encouraging. I don’t know. I’m having lunch with people and we’re going to talk about it. Obviously, I’d like to see the seat stay in Vermilion County.”
Bill announced he was quitting a few times before he actually did, and has since talked about running again, so this is not really a surprise. Whether he’ll try it or not is something we’ll have to wait to find out.
Supporters said the plan includes $2.5 billion in spending cuts, including 5 percent across-the-board reductions to most state agencies and a 10 percent cut to higher education.
The personal income tax rate goes from 3.75 percent to 4.95 percent, which is expected to generate roughly $4.3 billion. A rise in the corporate income tax rate from 5.25 percent to 7 percent would bring in another $460 million. The research-and-development tax credit would be reinstated, and the earned income tax credit for low-income families would be increased. The law also ends several corporate tax breaks, including those for companies that operate on the continental shelves or shift production out of state.
Lawmakers said the budget includes enough surplus revenue to support roughly $3 billion in borrowing, which could be used to generate a total of $8 billion in extra cash to pay down debts. That’s because the state receives federal money when it makes some Medicaid payments.
Funding for elementary and high schools would be boosted by $350 million […]
The budget also assumes $500 million in savings from pension changes long-sought by Rauner to create a defined-contribution 401(k)-style retirement plan to compete with the defined-benefit pension plans currently offered to state employees.
The bill backlog is about $15 billion. About $4-5 billion of that is an acceptable level. Most people don’t pay bills the moment they arrive, and neither do governments. As long as the payment cycle is around 30 days, that’s normal. but this plan doesn’t get the state to that level.
Also, the governor’s office says that while they support that defined contribution plan, it contains no specific start date, instead allowing the pension systems to start the programs on their own. And that’s why they say there’s a $500 million hole in their own proposal. So, we’ll see.
* Keep in mind that the bills dealing with this issue, from the GOPas well as the Democrats. contain the same language about making school aid funding contingent on the evidence-based reform change…
Illinois got its long awaited budget Thursday afternoon after the House, briefly delayed by a possible hazardous materials situation at the state Capitol, voted to override vetoes by Gov. Bruce Rauner.
But the state’s 800-plus school districts, including the broke Chicago Public Schools, will have to wait a little longer to see their financial problems resolved. […]
The measures House members approved on Thursday do authorize more spending for schools — about $350 million more throughout the state with one of the most inequitable school funding system in the nation — but don’t include the new funding formula for doling out that money. That formula, known as an “evidence-based funding model” is spelled out in separate legislation, including one bill, Senate Bill 1, that has passed both houses of the Legislature but has been targeted for veto by Rauner once it lands on his desk. The other bill, introduced by Sen. Jason Barickman (R-Bloomington), hasn’t been voted on at all.
Will CPS get more money then?
A little, but not the big money it needs to balance its books. The budget bills do contain additional statewide spending for school matters: $50 million extra on early childhood education, $57 million more for transportation, and $3.2 million more for agricultural education. CPS wouldn’t say what its cut would amount to.
The budget bills also would raise new tax revenue — which the Illinois Comptroller’s office said would allow it to cut checks for a remaining $850 million in late block grant payments to CPS and other districts across the state — but there’s no immediate cash infusion, spokesman Abdon Pallasch said.
“The certainty for state workers and others that are owed money, I think that helps provides certainty of a pay check or payments in a timely manner,” Langfelder said. “I think it’ll have domino effect” on the economy.
Until the AFSCME strike talk heats up again. I wouldn’t bet on a big Springfield rebound just yet.
* The Tribune has a pretty good roundup story today, but I do want to point out this one thing…
The budget package calls for spending $36.1 billion in the coming year, which is less than the $39 billion that’s currently going out the door due to a patchwork of court orders and laws that’s left state government to spend billions more than it takes in each year.
The state can’t actually spend more than it takes in. Instead, it promises spending or is ordered to spend and then makes everybody wait for months on end to get paid. The state essentially “borrows” from providers and vendors. And the governor greatly contributed to that hole by signing billions of dollars in contracts over the past couple of years without any legally authorizing appropriations to pay for them.
Government cannot operate without suppliers of goods and services. Illinois relies heavily on not-for-profit groups to provide direct social services. It also relies on thousands of businesses large and small for everything from Medicaid insurance, to paper, to food for prisoners. Local governments are also put on the hook for state facility sewer and water services and, in the case of Springfield, electricity…
Citing the damage the two-year state budget stalemate has caused, Springfield Mayor Jim Langfelder welcomed news of a $36 billion spending plan that was put in place Thursday.
Even with the income tax hike that’s part of the deal, a budget is preferable to a continued stalemate, he said.
“It has really stymied the growth of our economic engine with regards to the medical area,” Langfelder said, noting that the state owes local medical providers millions of dollars.
The state also owes $4.3 million to Springfield’s utility, City Water, Light and Power, according to a CWLP spokeswoman. And in the last week, the impasse has halted several major road projects in the city.
Anyway, what this budget does is pay for those goods and services going forward and partially pay off the debt owed to everyone who has sold the state something or provided a service on its behalf.
Chicago Tribune: Welcome to the new Illinois. Same as the old Illinois. Except 32 percent pricier.
Madigan’s Tax-Hike, No-Reform Budget is “Business as usual”
“Mike Madigan’s tax hike is just the latest example of the corrupt political system that Governor Rauner is working to change. The people did not want this tax hike, but the career politicians and special interests did. Taxpayers wanted reforms to grow the economy, lower property taxes, and fix our political system through term limits. Thanks to Mike Madigan and his allies, all we’re getting is more of the same.” – Illinois Republican Party Spokesman Steven Yaffe
The Chicago Tribune Editorial board slammed Mike Madigan and his allies last night after Madigan forced through a 32% permanent income tax hike without reform:
Finalizing a 32 percent income tax hike, the Illinois House on Thursday approved a budget for the fiscal year that began July 1. Illinois taxpayers will begin paying a 4.95 percent individual income rate, up from 3.75 percent, retroactive to July 1.
What are taxpayers getting for sending another $5 billion to Springfield?
Business as usual.
You might think that Democratic legislators — for 14 years the primary architects of a financial fiasco that has created enormous taxpayer debts — would acquiesce on pro-growth economic reforms that our neighboring states have adopted.
You might think the majority party would listen to large and small business owners about the urgent need for more reasonable workers’ compensation insurance costs.
You might think Democrats would have advanced another pension reform bill or created a lower-cost, defined contribution plan for new employees, or attempted to change the Illinois Constitution’s crushing pension obligation language.
You might think they would have been alarmed at the exodus of residents escaping to states with lower taxes, far fewer debt obligations and less dysfunction.
You might think Democrats would have agreed to a property tax freeze.
And on every count, you’d be wrong.
…this budget, like those Democrats advanced for the past two decades, also spends taxpayer money on untested, unproven programs. It includes money for pork projects. It includes money for a clouted downstate shooting complex. It includes money for state fairs, fisheries, diversity programs, agriculture studies, and $330,500 above Rauner’s requested amount for Choose Chicago, the city’s public-private economic development arm that doesn’t make its spending public.
What the budget agreement doesn’t do is adopt the sensible, pro-growth reforms Rauner championed as a candidate and during his 2 1/2 years in office. No meaningful workers’ comp changes. No property tax freeze. No major downsizing of the state’s 7,000 units of government. No votes — that’s all Rauner requested — on redistricting reform or term limits to rebuild trust in government.
And while Democratic sponsors said the spending plan should start paying down a backlog of bills and reduce costs in the pension system, rating agencies that monitor state finances weren’t convinced. Moody’s Investors Service cited the state’s crippling debt — again, taxpayers’ crippling debt — as reason to potentially drop Illinois’ bond rating to junk.
…They passed a massive tax hike without addressing their addictive spending that is the root of the debt problem, and they did not adopt pro-growth reforms to get Illinois’ economy humming.
Taxpayers, we wish we could say the additional income you’ll fork over will be the tourniquet that saves Illinois’ failing government and flailing economy.
We can’t say that. The money, we’re afraid, will merely chase debt that, despite this revenue, keeps rising.
A 32 percent tax hike should have been directly linked to a major overhaul of the way Springfield does business.
…Welcome to the new Illinois. Same as the old Illinois. Except 32 percent pricier.
Bruce Rauner’s legacy will be this – Republican lawmakers, seeing no benefit in continuing Rauner’s two-year budget crisis, broke with the Governor and cut a bipartisan budget deal with Democrats. Rauner’s refusal to compromise drove away members of his own party.
Below are quotes from the 10 House Republicans who voted for the budget revenue and to override Rauner’s veto. Their words show they were concerned their party, led by Rauner, had no plan. They confirmed that everyone knew more revenue was needed and that passing a budget was the fiscally responsible action to take. And they warned what would happen if they did not act.
Through their words, we see Rauner’s refusal to compromise and his failed leadership.
Quotes from the ‘10’
There was no other plan…
GOP Floor Leader Steven Andersson: “For those of you who say there’s a better option, do you have the votes? No. You do not have the votes!”
The budget needed revenue…
Sara Wojcicki Jimenez, R-Leland Grove: “Today’s budget responsibly reduces spending by more than $3 billion…there has been no legitimate proposal introduced this spring by the Governor, Republicans or Democrats that didn’t include a need for more revenue to balance the budget.”
Bill Mitchell, R-Forsyth: “There will have to be new revenue and spending cuts. You’d have to lie to people to say anything else.”
Mike Fortner, R-West Chicago: “Increasing the income tax has never been my preferred option…[but] my balance point was reached. This was a real balanced budget, there were real reductions in spending levels, and sufficient reforms to move forward.”
…and letting the impasse linger would lead to higher taxes later
Norine Hammond, R-Macomb: “If we do not pass the budget package, that backlog would total $24 billion and the tax increase included in the budget package would have to be even larger, depending on the timing — 5.5 percent to 8 percent if the state ever wanted to see a balanced budget, or a day in which bills are paid on time, for that matter.”
The budget was balanced and a compromise…
Mike Unes, R-East Peoria: “Until the House passed a balanced budget last week, we were spending $39B annually. The current budget will immediately cut that spending by $3B, initiating the slow, difficult and essential process of digging our way out of this hole that has been decades in the making.”
Norine Hammond, R-Macomb: “Certainly Republicans didn’t get everything they wanted in that budget and Democrats didn’t either.”
Allowing more debt to pile on was wrong…
Bill Mitchell, R-Forsyth: “We shouldn’t put things on our credit card and say it’s OK. It’s not OK. Illinois is in the worst shape it’s ever been in.”
Sara Wojcicki Jimenez, R-Leland Grove: “For me, one of the fundamental principles for Republicans is to have a balanced budget and to pay our bills.”
Chad Hays, R-Catlin: “I told somebody yesterday, I’ve been to a lot of Republican events over the years, but I’ve never been to one where the crowd, in terms of philosophy, said, you know how we handle paying our bills? We stiff the vendor. That’s not very Republican.”
The lack of action would have ruined Illinois’ finances…
David Harris, R-Arlington Heights: “You are an astute, capable businessman. You understand what the numbers are here. You understand the implications of junk-bond status. Is that what we want for the fifth-largest state in the union?”
David Harris, R-Arlington Heights: “Without a budget the bond rating agencies would have rated us as junk. We would be the first state ever rated as junk. It just starts a death spiral. I’m tired of playing chicken with the fifth-largest state in the union and seeing who blinks first.”
David Harris, R-Arlington Heights: “It’s time to stop playing chicken with the fifth largest state in the Union…I was not elected as a state legislator to help preside over the financial destruction of this great state.”
And most importantly, it was about the district…
Sara Wojcicki Jimenez, R-Leland Grove: “But I think at the end of the day for our community, the fact that the impasse…for now is over will bring certainty and relief to a lot of people who live here.”
Reginald Phillips, R-Charleston: “First of all, if I decide to press my button to override the governor, it doesn’t make me any less a conservative Republican than the rest of the people that stand in here. It makes a person decide he has to vote for his district. He has to think about all the people in his district to the best of his ability.”
