Every once in a while this happens in the capitol basement women's bathroom. Laden with metaphors about state government waste. pic.twitter.com/uykvw37TXJ
* The dustup started this afternoon when Rep. Steve Andersson (R-Geneva) rose to call for compromise. Andersson reminded the chamber about the 33 House members who signed a letter encouraging the Senate to wrap up the grand bargain. And he said it was now time to work on what the Senate had sent the House. Some of it was bipartisan, he said, some partisan. But the Senate, he said, was very close to a deal. “Let’s pick up where they left off.”
Andersson said the chamber’s appropriations committee leaders were meeting, which he called a “good sign.”
Rep. Andersson also addressed yesterday’s blowup on the floor about who should be invited to negotiate with the governor’s chief of staff.
“It’s not the time to debate who last invited whom to the table, Andersson said. “Just come to the table.”
“And my call, most importantly, is to compromise,” he said. “Let’s push our leaders as hard as we can.”
Andersson is the GOP’s floor leader, so he may have struck a raw nerve with Lang. “It’s one thing to say you want to do a budget, it’s another thing to do one,” Rep. Lang said.
Lang went on to say that today Gov. Rauner “invited 13 House Democrats to a meeting to discuss all these issues, completely ignoring the letter that Leader Currie, Leader Hoffman, Leader Turner and I sent to him offering to sit down and get these things accomplished, completely side-stepping the negotiating team that’s been created here in the House on our side of the aisle to meet with the governor.
“Instead the governor has chosen, very carefully it appears, 13 Democratic political targets to meet with. I think that says a lot about his resolve and it says a lot about his desire to work with this General Assembly as a co-equal branch of government.”
Lang then encouraged Republicans to “pull away” from the governor and work things out. “That’s when the crisis will end.”
* However, I’m told that the 13 Democrats were simply invited by the governor’s legislative shop to a briefing about where the Senate situation stands.
We live in a divided state. The rich live near the rich and the poor live near the poor.
The poor no longer have access to the tax base that the wealthy have access to. As a result, their schools will never be as good as the schools in wealthy communities if Illinois continues to rely on property taxes to pay for education.
We can’t allow that to happen anymore. We need to fix the way we fund our schools.
Reforming our property tax system and changing the way we fund education in Illinois is a central part of fixing the mess in our state.
Property taxes are determined by how you appraise the property – which means the wealthy and connected who can hire lawyers can do a better job of getting the value of their homes or commercial properties knocked down. And in the end, our public schools suffer. That’s a terrible system.
If you don’t pay your income tax, you’ll go to jail.
If you want to contest your property taxes, all you have to do is get a good lawyer, if you can afford it.
That’s not how we should operate in this country. We’re condemning the next generation to a life of economic oppression and segregation, and it doesn’t have to be that way.
We can do better by learning from lessons and better practices from around the country. We shouldn’t look to Springfield or to the Thompson Center for great ideas. We should look to other states. Look outward and forward, not inward or backward.
It’s time for bold action and fundamental change. If you agree, please sign up now to join our campaign for Illinois governor.
Thank you,
Chris
That looks to me like he might be thinking about adopting the old Dawn Clark Netsch tax swap plan. I asked the campaign what he’s proposing to actually do about property taxes and received this reply…
In a stunning display of partisanship, Democratic Rep. Robert Martwick – a supporter of billionaire J.B. Pritzker – last week announced that he would kill his own bill, HB 2517, that would crack down on the kind of vacancy fraud the billionaire is engaging in to wrongly slash his property tax burden.
After House Minority Leader Jim Durkin signed on to the Vacancy Fraud Act, Capitol Fax reports that Martwick issued a statement saying he would not call the bill, calling the bipartisan backing he received “political gamesmanship”.
This week, DNAinfo reports that Rep. Martwick “launched into a ‘tirade’” after finding out that his bill was receiving bipartisan support.
Only a Madigan-Pritzker politician would attack bipartisan reform.
But the Illinois Republican Party is holding Martwick and Pritzker accountable, releasing robocalls today into his district highlighting his capitulation to the broken status quo.
Martwick should stand by his legislation, even if it bothers his political bosses Madigan and Pritkzer.
Martwick’s bill has been languishing in the Rules Committee since late March and its passage deadline has long since passed, so he didn’t actually kill it.
The May 22nd DNAInfo story mentioned in the press release is just plain goofy…
An effort to reduce the number of vacant storefronts in Chicago neighborhoods stalled in Springfield last week amid a political brawl sparked by the race for Illinois governor.
Martwick even says in the story that the bill wasn’t ready to move.
* But politics is politics, so let’s move on to the robocall…
* Script…
Hi, this is Caroline, and I’m calling regarding our State Representative, Robert Martwick.
Martwick has sold taxpayers out to his political boss Mike Madigan’s billionaire financial muscle, and recently revealed tax cheat, JB Pritzker.
Martwick used to support legislation that would crack down on property owners collecting unfair tax breaks on vacant properties. He used to be for the common man.
But the moment billionaire JB Pritzker was exposed using this property tax scheme to cut property taxes on Pritzker’s mansion by $240,000 while making all of us pay more, Martwick immediately flipped his position out of blind loyalty to Madigan and his new friend Pritzker.
Martwick isn’t working for you or me anymore. He’s out to serve the same corrupt system that rewards the well-connected while you pay the price.
Paid for by the Illinois Republican Party.
Not a bad message at all, despite the underlying facts. Props for that.
* I told you yesterday about the ILGOP’s robocalls on the Senate’s tax hike and budget votes. The robocalls were blasted statewide and into targeted House districts (click here for the list).
Well, the Pritzker campaign is launching its own robocalls into the same House districts that the Republicans targeted, which ought to make some House incumbents happy. I’m told they’re also doing a statewide blast.
Here’s the press release…
Today, on day 694 without a budget, the JB for Governor campaign released a new statewide robo call highlighting Rauner’s failure to lead our state. The robo call joins the multimedia Crisis Creatin’ Rauner campaign, holding Rauner accountable for this crisis of his own making and the families, schools, and social service agencies that continue to pay the price.
“Illinois families across the state deserve to know that this budget crisis is a crisis of Rauner’s own making,” said Pritzker campaign communications director Galia Slayen. “Illinoisans are hurting and he refuses to act on day 694 without a budget. Instead of bringing people together to negotiate, Rauner is too busy playing politics and standing in the way of compromise. Bruce Rauner has failed our state and working families have had enough.”
Illinois is approaching 700 days without a budget under Bruce Rauner. 700 days.
Social service agencies are shutting down, schools are scraping by, and working families are suffering, but Bruce Rauner doesn’t care, he continues to hold our state hostage.
Just like he has since the day he took office, Bruce Rauner would rather play politics instead of doing the job he was elected to do.
Don’t believe Bruce Rauner’s lies, it’s time to hold him accountable. Illinois deserves a budget and we deserve it now.
The Republicans have had this particular playing field all to themselves this year. The playing field has now expanded.
* Bernie’s column quotes Sen. Andy Manar, but he’s far from the only member of his caucus who believes this. These are all widely held notions..
Does [the Senate’s tax hike/budget bill votes] make the Democrats political targets?
“I’ve come to the determination that there’s always going to be criticism … no matter what we do,” said Sen. ANDY MANAR, D-Bunker Hill. “That comes with the turf of being an elected official. … I don’t lead with the idea that I’m here for self-preservation. I’m here to weigh the pros and cons of every issue … and then be accountable for the decision that I make to voters. … Our budget protects education. It protects health care. The governor has proposed devastating cuts to higher education. We protect higher education. … And we live within the governor’s spending limits that he put in his own budget in February.” […]
And in an interview Wednesday with the Illinois News Network — an independent project of the right-leaning Illinois Policy Institute — Rauner called the Senate action “a massive mistake. … The Democrats have been on a mission to just raise taxes without any significant reforms for years.” He said the “biggest failing” was the lack of property tax relief.
Property taxes go to local governments, not the state, but Rauner has been pushing for a freeze.
But, Manar said earlier, “It’s always a changing demand from the governor. We could have passed a property tax freeze bill yesterday, and it would have been something else today.”
I agree totally with the first part. Sometimes, you just gotta do what you gotta do. Rauner’s coming after them with tons of dough anyway, so whatevs.
But if they thought Rauner was bluffing on the property tax freeze, they should’ve called him on it and passed something that was more in line with the governor’s demand.
Legislation that would allow telephone giant AT&T to direct its resources away from landlines and into newer technology passed the Senate Wednesday.
The bill sponsored by Sen. Bill Cunningham, D-Chicago, passed easily by a vote of 57-2 now goes to the House.
The legislation would allow the phone company to free itself from a legal obligation to provide landline service in areas with old technology. AT&T has said almost 90 percent of its customers have gotten rid of landlines in favor of wireless technology or internet-based communication.
Cunningham said a compromise was reached with the bill’s critics who had concerns that residents wouldn’t be notified in a timely matter.
Supporters of legislation to crack down on repeat gun offenders continued to tweak the measure Wednesday to try to win over reluctant African-American lawmakers who fear the proposal will land more minorities in jail without addressing underlying causes of violence.
A deal has yet to be reached on the measure, which is being pushed by Mayor Rahm Emanuel and Chicago police Superintendent Eddie Johnson. One version has cleared the Senate but faces a tougher hurdle in the House. In that chamber, debates on gun restrictions often fall among economic and regional divides, as Downstate lawmakers push to protect the rights of hunters amid the concerns of city and some suburban legislators who want to tackle gun crime.
Under the changes proposed by House Republican leader Jim Durkin of Western Springs, the state would set up a trial program for first-time, nonviolent offenders charged with certain weapons crimes that is focused on rehabilitation and keeping them out of the prison system.
Durkin’s amendment says the program is designed to recognize that some people, “particularly young adults in areas of high crime or poverty, may have experienced trauma that contributes to poor decision making skills, and the creation of a diversionary program poses a greater benefit to the community” than a jail sentence.
For years, there have been on-and-off efforts to abolish the role of lieutenant governor in Illinois.
While supporters say the savings from such a move would be significant, detractors have maintained the office has its own important focus and its absence could also create problems in the event a governor was unable to complete a term.
Sen. Sam McCann, R-Plainview, believes he has a way to appease both sides. He has introduced legislation that, if approved by voters as a constitutional amendment, would streamline the offices instead of scrapping one for the other.
Senate Joint Resolution Constitutional Amendment 15 would ask voters during next year’s election whether the lieutenant governor and governor’s operations and staff should be merged and have a single appropriated budget.
DAVE DAHL: You talk about finger-pointing. When you were a candidate, you said, “I’m going to take the arrows.” And you’ve been governor now for more than two years, I’m not sure I can identify an arrow that you’ve taken, as opposed to: it’s the unions, it’s the speaker, it’s the comptroller, it’s the Democrats. Where am I wrong on that?
GOV. RAUNER: Well, you know what I’ve been governor, Dave, for two years. It’s really dog years, it’s like fourteen years, but it’s two years. And we’ve changed great things on issues that we can control. We’ve brought down spending in government, we’ve cut spending, we’ve got new contracts with government unions — 18 new union contracts that are innovative and save taxpayers’ money. We’ve transformed the technology use inside our government. We’ve transformed criminal justice. We formed Intersect Illinois and recruited thousands of new jobs here to Illinois. We’ve done great things.
But where Speaker Madigan’s majority can block us, they’ve blocked us at every step. Their answer is not what’s good for the people of Illinois, it’s whatever can block the governor. And that’s what the speaker has done — and his allies. They blocked the Fair Foundation for here in Springfield to fix up the fairgrounds. They blocked the Thompson Center sale up in Chicago. They blocked the I-55 managed lane on the highway. They blocked a balanced budget. They blocked workers’ comp reform.
They don’t want to change the system because they created it over the last 35 years. They don’t want to admit that the system is broken. They don’t want to change it. They and their buddies in the political class are making a lot of money in the current system, but your average family — and I just saw that our middle class is down dramatically over the last 30 years in Illinois, middle class down dramatically in Illinois because the political class and Speaker Madigan are doing well and the working families aren’t.
That’s why we’ve got to change and we’ve got to stay strong on it.
DAHL: In two plus years, can you name a time where, “You know what, I messed up,” or “the buck stops with the governor,” or “that’s on me” or “I took an arrow?”
RAUNER: Boy, well in terms of taking arrows, I take arrows every day. We’ve got, all of us have a duty to change the system and provide a better future for the people of Illinois. That’s why we’re in office. And this should be public service. This should not be a way for elected officials to make money, accumulate power from their position.
I’m a volunteer, Dave, and I believe in term limits. I’m fighting for term limits. I would term limit myself at two terms no matter what else happens. And I’m not taking any pay, I’m not taking any pension. People should be in office for public service. And as part of public service what we should do every day is to think about: what’s the right answer for our children and our grandchildren? What’s the best answer for Clifford and his classmates in school? What’s the best answer for the young people of Illinois?
And what’s not the right answer is more deficit spending. What’s not the right answer is more debt. And it’s immoral that over the last 35 years under Speaker Madigan’s control we’ve got 180 billion dollars of debt. That is immoral. That is not fair to our kids — my kids, your kids, Dave — and we’ve got to change the system. And those folks who say: well let’s just raise taxes, like the Senate did yesterday, and things will be okay, we’ll get a balanced budget. You know what? The budget will be out of balance within a year or two, and we will have pushed more jobs out, we will have raised the cost of living on the families of Illinois, and we will continue our broken system. We cannot allow that to happen.
*** UPDATE *** From the Democratic Governors Association…
“Today Bruce Rauner confirmed that while he’s been sitting in the Governors chair for two years, he has not acted like one,” said DGA Illinois Communications Director Sam Salustro. “Governors pass budgets, stand up for their citizens, and take responsibility for their own failures and Bruce Rauner has not performed any of those tasks. Governors lead, and Bruce Rauner’s failure to do so is causing the state to slide backwards. Illinois families deserve accountability.”
WHAT: JB Pritzker to join the Associated Fire Fighters of Illinois in Peoria for a press conference announcement.
WHEN: Friday, May 26 at 11:00 AM
WHERE: Peoria Labor Temple
The ad claims that Pritzker “has been a champion for getting innocent men and women the justice they deserve.” It doesn’t say what he’s actually done on that front, or if he helped the man in the ad, however. I’ve asked for an explanation.
Pritzker on Thursday also unveiled a new TV ad and the campaign’s first radio ad. The TV ad focuses on Dana Holland of Sauk Village, who was wrongfully convicted of armed robbery, attempted murder and sexual assault and sentenced to 118 years in prison. After serving 10 years, Holland was released with the assistance of Northwestern University’s Center on Wrongful Convictions.
Pritzker and his wife gave $100 million to Northwestern’s law school, which included endowing the wrongful conviction center.
“I will never forget the people who stood by me, refusing to let my life be thrown away. People like J.B. Pritzker,” Holland says in the one-minute ad.
* And then there’s this…
Today, the JB Pritzker for Governor campaigned released its first radio ad, “Trust,” featuring Barbara Bowman. The new ad highlights JB’s commitment to working with educators like Bowman to ensure quality early childhood education for all Illinois children. In conjunction with the radio ad, the campaign is also releasing the next in its JB & Me video series featuring Bowman.
On the campaign trail, Pritzker has been trying to appeal to progressive voters who favor tax-the-rich policies to keep governments well-fed. Theme: Make the rich guys pay more! And in a May 13 appearance in Oak Park, Pritzker reportedly told the crowd that he opposes Rauner’s long fight to freeze property taxes.
Except, oops. Pritzker has managed to save nearly $230,000 on his own property taxes through a peculiar special designation from the highly political Cook County assessor’s office. The primary election campaign ads from other Democrats running for governor, or the general election campaign ads from Rauner, practically write themselves: J.B. Pritzker won big savings on his property taxes — but he wants yours to keep rising!
It’s not just that Pritzker won a reduced assessment of his own Gold Coast mansion (12,500 square feet). Several years ago he bought the mansion next door (6,387 square feet). He then allowed Mansion Two to fall into disrepair — and got a property tax break there too. […]
Among the reasons claimed by Team Pritzker: The house the Sun-Times dubbed “J.B.’s Trash Pad” evidently has no working bathrooms; somebody disconnected all the toilets. Wonder why.
* Related…
* ILGOP press release: Pritzker, Kennedy OPPOSE Property Tax Freeze, But BACK Tax-Hike Agenda
Thursday, May 25, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
According to a recent statewide poll, 76% of Illinois voters oppose “Right to Know” legislation because it will capture additional consumer data and eliminate anonymous use of the internet.
Of those Illinois voters that had an opinion:
- 90% oppose a law that would require websites to link names and browsing history – eliminating anonymous use.
- 77% oppose a law that prevents consumers from using anonymous accounts for emails and apps.
- 77% oppose an increase of data privacy regulations if these new policies were created by special interest groups that would directly profit from lawsuits.
“Right to Know” is a privacy policy in name only. In reality it would reverse many of the privacy protections already put in place by companies who handle your sensitive data.
“Illinois consumers can and should be protected from violations of their online privacy, but the legislation currently under consideration will simply make life harder for consumers and Illinois businesses.” – Omar Duque, President & CEO, Illinois Hispanic Chamber of Commerce (Chicago Sun-Times, April 11, 2017)
Senate Bill 1502 does not protect Illinois consumers. It hurts Illinois businesses.
Vote No on “Right to Know.”
Even during an unprecedented 23-month long budget impasse, the state of Illinois is somehow managing to make millionaires out of first-time commercial real estate buyers.
Michael Grazi, a 49-year-old Brooklyn native, is cautiously optimistic that he’s on the verge of striking it rich — if the state ever gets around to paying its bills.
Grazi bought an empty Springfield warehouse at a tax auction in 2014 for $760,000. After three years of failing to find a tenant for what Grazi claims is his first-ever real estate deal, the Bruce Rauner administration accepted his offer and signed a 5-year lease worth $2.04 million. The deal goes into effect on June 1st, 2017. […]
CMS claims between 80 and 100 DoIT staff will eventually occupy the building next to Harbor Freight after renovations are completed. Currently, those staff are working out of Building 30 at the State Fairgrounds. The DHS warehouse staff moved in from a former Department of Corrections property in Dwight, Illinois. The IDOT pole barn contains documents previously stored in various government agencies. None of the three properties are fully occupied, although CMS Director Michael Hoffman has insisted they will reach capacity later this summer. […]
Grazi claimed he was in line to win the DHS lease, but says he lost out to the Cellini family at the last second. CMS records show Grazi did apply for the IDOT deal, but he is not listed in the DHS paperwork.
Yikes.
And why the heck are we spending money to move employees from a government-owned building to a leased building?
*** UPDATE *** Gov. Rauner was on Tom Miller’s radio program today and was asked about the lease. Rauner blamed the procurement process. I kid you not…
It’s because of our procurement system. We’re blocked on what we can buy and how we can do. Our procurement system is broken. That’s why the procurement reforms we were able to get through the Senate will help make that better. We can save money. Our bureaucratic purchasing process with all the restrictions in it, costs, wastes taxpayer money about a half a billion dollars a year.
So, less hoops to clear will mean fewer needless and potentially shady leases?
Right.
[ *** End Of Update *** ]
* The Senate held a hearing on this issue today and our buddies at BlueRoomStream.com provided us an embed…
Chicago Public Schools will look to borrow $900 million in the coming weeks — adding to the district’s $9 billion debt — but it remains unclear if anyone will actually give them all the money.
The loans are $500 million more than what Mayor Rahm Emanuel’s office announced last week when a financial rescue plan was outlined. That’s because the district is looking for loans not only to get through this school year, but also to start off next year with a financial cushion.
District officials told board members Wednesday that the district would likely “just run out of money” if it didn’t take out these loans.
“The consequences would be dire financial straits in June,” said Senior Vice President of Finance Ronald DeNard. “[The borrowing is] very critical to our cash flow.”
The board unanimously approved two different borrowing packages on Wednesday. The first, which Emanuel announced last week, allows the school district to borrow $396 million against unpaid state grants. The other allows the district to borrow $215 million.
District officials also said they will try to borrow an additional $285 million that it got the authority for last year and didn’t use.
Emanuel said he would wait until the Illinois General Assembly adjourns its spring session before identifying a local source of revenue to generate the $400 million to $600 million in annual revenue CPS desperately needs.
In other words, the mayor doesn’t want to show his hand too soon and let Springfield off the hook.
“If you think in the final seven days that I’m gonna tell Springfield everything I’m gonna do while they’re negotiating an education budget, you’ve got to get yourself another negotiator. That would be the dumbest thing you could do,” the mayor said.
“I’m supposed to … give them a road map of how to take them off their responsibility, which is in the [state] constitution, to fund education? The state of Illinois that is dead-last in funding education? The state of Illinois that is dead-last in actually paying their bills once they make their pledges? The state of Illinois that has one of the worst formulas [for] funding education for poor kids? I’m supposed to tell them what I’m gonna do so they don’t do their job? Not a chance.”
CEO Forrest Claypool indicated he would continue to fight for fair funding against Rauner, whom he frequently blames for CPS’ budget troubles.
And yet, Claypool did not mention that late last week that his general counsel quietly refiled a civil rights lawsuit against the governor, a stark contrast to the publicity he sought with press conferences and tours of African-American churches for its original iteration. The original suit was dismissed in late April by a Cook County judge who invited CPS lawyers to take another stab at it.
The lawsuit also was one source of contention between Claypool and his longtime friend, Emanuel, who believed the case a lost cause, as the Sun-Times has previously reported.
Illinois’s nearly two-year budget impasse has created a buying opportunity for municipal-bond investors willing to bear the risks, according to Citigroup Inc.
With the Democrat-led legislature and Republican Governor Bruce Rauner unable to forge agreement on how to close the state’s chronic budget deficits, Illinois’s 10-year bonds yield 4.43 percent, or 2.45 percentage point more than top-rated municipal borrowers, according to data compiled by Bloomberg. That’s the biggest premium since the indexes were started in January 2013.
That may mean it’s a good time to buy, according to Citigroup. Despite the governmental gridlock, the fifth most-populous state has “strong fundamentals” and the power to tax and grow its way out of the financial hole, the bank said in a report to clients this week, citing the diverse economy and strong legal security backing its debt. While Illinois hasn’t had a full-year budget in place since June 2015, it hasn’t missed any bond payments and state law has required it to continue making monthly deposits to its debt-service funds.
“The state’s credit rating and bond prices have suffered and may present opportunity for a bold investor,” analysts Vikram Rai, Jack Muller and Loretta Bu, said. “We strongly encourage investors to take advantage of the cheapness of the front and intermediate IL GOs.”
Makes sense. The problem proved to be manageable before the last tax hike partially expired.
Chicago lost population for the third year in a row last year, the only one of the nation’s top 20 municipalities to hold that streak.
According to new estimates released by the U.S. Census Bureau, the decline of 8,638 in the year ended June 30, 2016, was rather small, just 0.3 percent of the total population. But combined with other Census data, the figures suggest that while the city is adding Asians, Latinos and whites, African-Americans continue to depart in large numbers, perhaps propelled by better job prospects and safer communities elsewhere. […]
According to the new estimates, Cook County, too, has lost people for three years, and at a faster rate: down about 21,000, or 0.4 percent in the past year. DuPage, Lake and McHenry counties also saw their populations dip, as did Cook suburbs including Arlington Heights, Evanston, Schaumburg, Skokie and Tinley Park. […]
And cities on the edge of the metro area that saw strong population gains prior to the sub-prime mortgage recession have been able to regain just a fraction of their prior magic. For instance, Naperville, Joliet and Elgin in the last year saw gains of just 0.2 percent to 0.3 percent.
Chicago’s population plunge continues to be a result, mostly, of losing residents to other states. About 89,547 residents left Chicago and its surrounding suburbs for other states in 2016, a number that couldn’t be offset by new residents and births, according to an analysis of census data released in March. The number of people leaving the Chicago region is the highest since at least 1990.
More than any other city, Chicago has depended on Mexican immigrants to balance the slow growth of its native-born population. During the 1990s, immigration accounted for most of Chicago’s growth. After 2007, when Mexican-born populations began to fall across the nation’s major metropolitan areas, most cities managed to make up for the loss with the growth of their native populations. Chicago couldn’t.
The entire Midwest has been losing residents, census data show. Detroit lost 3,541 residents from 2015 to 2016, and Milwaukee lost 4,366. But job and business opportunities are still stronger in neighboring Midwestern states than in Illinois, sending more Chicagoans to other parts of the Midwest than vice versa, experts said.
The greatest number of Illinois residents in recent years went to Texas, followed by Florida, Indiana, California and Arizona, according to 2013 Internal Revenue Service migration data.
Both Mayor Rahm Emanuel’s office and Gov. Bruce Rauner’s office suggest political factors might be related to the population issues.
“Chicago’s population grew each of the first three years the mayor was in office, but since taking office the governor has driven uncertainty in every corner of the state, and Chicago has not been immune from the effects,” mayoral spokesman Grant Klinzman said. “The fact that the State of Illinois is leading the nation in population loss and the loss of college students is a direct result of a lack of leadership by Governor Rauner and the instability he has created.”
Eleni Demertzis, spokeswoman for Rauner, pointed to some factors specific to Chicago.
“Let’s review what’s happened in Chicago the past two years under Mayor Emanuel: The city’s property taxes and fees have skyrocketed; it has surging violence; and it has threatened to close schools due to decades of fiscal mismanagement,” she said.
So, the governor’s office finally admits that a top dog can make matters much worse over the course of two short years?
* Well, the group finally decided to drill down into the actual numbers this week instead of just posting blatant click-bait…
Illinois’ budget mess is the stepchild of Illinois’ pension mess, and for that perhaps nothing incites more steam-coming-out-of-the-ears fury from critics than the volume of six figure annual retirement payouts—topped by one at $581,000—pledged to former public workers.
Yet a BGA analysis of 2017 data from major pension funds for state and municipal employees vividly illustrates the disconnect between high-rolling pensions, legally protected but irksome as they may be, and the deep financial plight experienced by many of those funds.
Simply put, the state’s 17 major pension funds are slated to pay out more than $17.3 billion in benefits to some 483,000 retirees and survivors this year, totals that underscore the broad reach of pension checks for former public employees. Those payments do not come direct from tax money, though there is an indirect correlation that can render the public confused and budget makers dyspeptic.
Just four percent of all beneficiaries this year are in line for pension paydays exceeding $100,000, with the biggest checks largely going to once high-paid former school administrators as well as doctors and dentists at public teaching hospitals. Payments for the overwhelming majority of pensioners, most of whom don’t qualify for Social Security, are far more modest.
The median pension in 2017 for retired suburban and Downstate teachers stands at $52,016, the analysis shows, while the median for general state workers is $28,946. For university workers, the median pension stands at $26,101, while for non-public safety municipal workers outside of Chicago it is $9,064.
* Gov. Rauner took mostly softballs from TV interviewers yesterday, but Emilee Fannon at WCIA threw him a curve…
Despite donating $2.5 million to Liberty Principles PAC, Governor Bruce Rauner denies he has any knowledge of a controversial, privately-funded newspaper organization run by the same political operative.
Dan Proft is a conservative radio talk show host who runs the Liberty Principles super PAC. Proft also launched a private news publishing group, which is not required to disclose it’s donor or “investor” list.
Last week, Democrats accused Proft’s ‘Local Government Information Services’ of spreading “fake news” in an alleged plot to sabotage the effort to alter the education funding formula. They claimed without providing any evidence that the erroneous, outdated information published in these papers was planted by the Rauner administration.
— IL Working Together (@IllinoisWorking) May 25, 2017
*** UPDATE *** Pritzker campaign…
Today, on day 694 without a budget, Bruce Rauner finds himself embroiled in controversy over conservative fake news and the millions of dollars he spent to fund it.
Yesterday, Rauner took a break from attending concerts and chatting on Facebook, to sit down for an interview with WCIA’s Emilee Fannon. It didn’t go well. Fannon pressed Rauner on his connection to Dan Proft and Local Government Information Services, a Proft run company responsible for spreading fake news to Illinoisans. Rauner’s response:
“I’m not familiar with it.”
There are a few problems with that:
Bruce Rauner donated $2.5 million to the organization he says he is not familiar with. Local Government Information Services is just the latest iteration of Liberty Principles PAC. Rauner donated $2.5 million to the PAC back in June, which accounts for much of their funding. The PAC is known for, among other things, disseminating fake conservative news.
Bruce Rauner’s administration potentially leaked false information to the organization he says he is not familiar with. Just last week, the Rauner administration was caught leaking misleading and confidential state records to the conservative organization in order to prevent compromise on school funding reform.
Bruce Rauner has consistently benefited from the organization he says he is not familiar with. 694 days into the state’s budget crisis and it’s no surprise the real news hasn’t been too kind to Rauner. But Proft’s fake conservative news remains on his side. Proft’s organizations have consistently worked to advance Rauner’s interests in state legislative races and spreads fake news to his benefit.
“Bruce Rauner can’t get any good news as he continues to decimate our state’s economy so he decided to create his own,” said Prizker campaign spokeswoman Jordan Abudayyeh. “After spending millions of dollars to fund conservative fake news that lies to Illinois families, he says ‘I’m not familiar with it.’ Illinoisans have learned not to expect too much from Rauner, certainly not a budget or a firm grasp of the truth.”
TO: Representative Jeanne M. Ives
FROM: Mark Dyckman General Counsel
Illinois Department of Revenue DATE: May 24, 2017
RE: Senate Bill 9 Constitutional Issues
This memorandum is in response to your request that the Department discuss constitutional issues associated with the tax provisions of Senate Bill 9. These issues are explained below.
1. Service tax provisions. The bill inserts 5 discrete services in the Retailers’ Occupation Tax Act (ROT) (storage; laundry and dry cleaning; private detective, private alarm, and private security service; structural pest control service; and tattooing and body piercing). These servicemen are taxed on 100% of the selling price and enjoy an exemption for sales to businesses making purchases of service for the benefit of the business (other than resale). All other servicemen in Illinois continue to be taxed under the Service Occupation Tax Act/Use Tax on only the tangible personal property transferred incident to service; they enjoy no business exemption.
It is the Department’s opinion that there is a substantial risk that the service tax components violate the uniformity clause of the Illinois Constitution (Art. IX, Sec. 2). In order to survive scrutiny under the uniformity clause, a non-property tax classification must (1) be based on real and substantial differences between those taxed and not taxed; and (2) must bear some reasonable relationship to the object of the legislation or to public policy. Illinois service tax classifications have previously been invalidated under the uniformity clause, notably in the case of Fiorito v. Jones, 39 Ill.2d 531, 236 N.E.2d 698 (1968). In that case, existing service taxes were replaced with a tax on only 4 itemized service categories. The Illinois Supreme Court could find no reasonable differences between servicemen who were taxed and those who were not taxed. Senate Bill 9 carries similar risks since it chooses only 5 categories of servicemen from the thousands of servicemen in Illinois and taxes them differently. A court may struggle to find the “real and substantial differences” that justify this differential treatment. Any service tax that simply picks and chooses services at random to be taxed or exempt from tax runs this substantial risk of being unconstitutional.
While not focused on in Fiorito, it is also possible for uniformity violations to be found within specific classifications made in a bill. For instance, the bill continues to tax retailers making sales of tangible personal property to other businesses for business purposes (e.g., a retailer selling security cameras to a business). However, the bill does not tax servicemen (now included in the ROT) when they make sales of service for business purposes (e.g., a serviceman selling alarm services to a business).
2. Entertainment Tax Fairness Act. The bill creates a new 1% tax on subscribers of entertainment (paid video programming through numerous methods including cable). It is our opinion that this tax could be challenged under the Federal Internet Tax Freedom Act (ITFA). ITFA, in part, prohibits states from imposing discriminatory taxes on electronic commerce. A discriminatory tax under ITFA is a tax that is not generally imposed and legally collectible by a State on transactions involving similar property, goods, services, or information accomplished through other [than electronic commerce] means. SB 9 imposes tax on subscribers renting movies on an internet or cable platform. However, when a subscriber rents the same movie from a video store, he or she incurs no tax liability. As a result, the bill appears to impose a discriminatory tax because it taxes transactions made through electronic commerce more harshly than those made through non-electronic commerce. The Illinois Supreme Court used a similar analysis to strike down Illinois’ first “Amazon law” related to click-through nexus for certain internet links in Performance Marketing v. Hamer, 2013 IL 11496 (2013). The General Assembly corrected that constitutional infirmity in subsequent legislation. It is the Department’s opinion that there is a substantial risk that these provisions violate ITFA.
3. Video Service Tax Modernization Act. SB 9 creates a new 5% tax on providers of direct-to-home satellite service, direct broadcast satellite service, and digital audio-visual work. The bill does not tax cable companies. It is very likely that this tax will be challenged by satellite service providers. Across the country, satellite companies have argued that such laws are discriminatory because they do not tax cable companies. While results have been mixed, challenges have been consistent. As noted in the discussion of Fiorito, above, such a challenge could be asserted under the State Constitution’s Uniformity Clause.
Senate Democrats noted Rauner had recommended service taxes.
“Yikes! How’d the governor take that news? Sales taxes on services have been part of his economic agenda going back to 2014,” said John Patterson, spokesman for Illinois Senate President John Cullerton. “I’m sure he can get this resolved with his Revenue Department.”
He’s still insisting that negotiations with the Senate are the key to getting this thing wrapped up. The Senate doesn’t appear to be all that interested, however.
* Among other things, today’s letter from Gov. Rauner’s chief of staff Richard Goldberg to House Majority Leader Barbara Flynn Currie was just debated on the House floor…
May 24, 2017
Majority Leader Barbara Flynn Currie
300 Capitol Building
Springfield, IL 62706
Dear Leader Currie:
As you know, last week I privately offered to meet with you one-on-one in response to your public request for a meeting. At that time, you refused to meet with me in an initial one-on-one meeting.
I write today to renew my offer. If you are sincere about your willingness to support changes to our broken system – like real and lasting property tax relief – you should have no reason to refuse to meet.
In recent weeks, Governor Rauner and key Illinois business leaders invited Speaker Madigan to come to a meeting to discuss these issues. Unfortunately, the Speaker refused to meet. Now you claim publicly that you want to meet to discuss the budget and reforms, but privately refuse to meet with me one-on-one.
We have a few days left in the regular session. If you are sincere about reaching a balanced budget agreement, I look forward to meeting with you.
Very respectfully,
Richard A. Goldberg
Chief of Staff
Office of the Governor
* Madigan’s spokesman Steve Brown told me this afternoon that instead of meeting with Rauner and the Civic Committee of the Commercial Club, Madigan just decided to meet one-on-one with the governor last month. “There was really no purpose involving them,” Brown said of the Civic Committee. “We had their report,” which was recently released to the public.
During today’s floor debate, it was revealed that Leader Currie told Goldberg that while she wouldn’t meet with him alone, she offered instead to bring along the other negotiators appointed by Speaker Madigan earlier this month. Goldberg flatly refused her offer.
“I don’t know what they’re afraid of,” Brown said of the governor’s staff. “Why don’t they want to have a meeting?”
I was told earlier today that Goldberg wanted to gauge how sincere this effort was by first meeting one-on-one with Currie. And, indeed, bringing a bunch of people to a meeting is a classic way of slowing down a process - a tactic Madigan has used many times in the past.
But here we are, with a week to go before the scheduled adjournment, and they can’t even agree on a simple thing like a sit-down.
Last night, Democrats in Springfield abandoned compromise and rammed through a massive tax hike on a party-line vote. Their plan includes no real reform to grow jobs and no property tax relief for homeowners.
Today, the Illinois Republican Party is highlighting their disastrous decision with statewide and targeted robocalls.
Statewide robocalls highlight the Democrat’s tax-hike plan, and how Democratic candidates for Governor are falling in line behind the Madigan Tax Hike agenda.
Last night, Illinois Democrats took the first step in enacting a major tax hike without reforms.
It’s part of a scheme pushed by House Speaker Mike Madigan and Democrat candidates for governor like Chris Kennedy and J.B. Pritzker.
They’ve said Illinois’ top priority should be raising taxes by billions without reforms.
And yesterday, Democrat state senators voted to increase the income tax by 32% on every Illinoisan.
They passed a new sales tax on everyday services like Netflix, dry cleaning and television.
And chose to let property taxes continue to skyrocket.
The Democrats’ Tax Hike agenda is wrong for Illinois.
Instead, it’s time to pass real reforms to create jobs and a real property tax freeze to give homeowners relief.
Paid for by the Illinois Republican Party.
* Back to the press release…
Additional robocalls will target Democratic House members in competitive districts. Democratic House members can stand up to Mike Madigan and kill this disastrous tax hike.
The following House districts will receive the call.
HD 15 – John D’Amico
HD 17 – Laura Fine
HD 18 – Robyn Gabel
HD 43 – Anna Moeller
HD 44 – Fred Crespo
HD46 – Deb Conroy
HD 55 – Marty Moylan
HD 56 – Michelle Mussman
HD 57 – Elaine Nekritz
HD 59 – Carol Sente
HD 62 – Sam Yingling
HD 72 – Mike Halpin
HD 84 – Stephanie Kifowit
HD 98 – Natalie Manley
HD 96 – Sue Scherer
HD 111 – Dan Besier
HD 112 – Katie Stuart
HD 116 – Jerry Costello
HD 118 – Brandon Phelps
It’s simultaneously a reconciliation, tangling up the layers of policies that have emerged over the past couple years, and an ultimatum, tying it off—whether it works as politics inside the statehouse or outside it.
“We passed Bruce Rauner’s budget today and the income tax that he asked for,” Cullerton said. “How’s that for an answer? Is that a good answer?”
While Illinois’ historic 22-month budget impasse has again dominated the legislative session in Springfield, state lawmakers have also grappled with how to respond to Chicago’s gun violence.
One high-profile bill aimed at stemming the violence would impose longer prison sentences for repeat gun offenders. Under the proposal, people caught with an illegal gun a second time would face a maximum 14-year sentence. Judges could issue shorter punishments if they explain their reasons. Currently, the maximum sentence is seven years.
The bill has already passed the Senate, and needs approval in the House and from Gov. Bruce Rauner, who said he’ll sign it in its current form. The idea is nothing new in Springfield, but this time the opposition is coming from Chicago Democrats, not downstate Republicans or the National Rifle Association.
[Yesterday] the Illinois Senate voted 34-24-1 in favor of passing SB 1719. The legislation places a privilege tax on Hedge Fund and Private Equity Managers like Bruce Rauner and Ken Griffin who exploit a federal tax loophole to get a lower tax rate than that paid by many working Americans.
Amisha Patel, Executive Director of Grassroots Collaborative, explained, “This is great news for Illinois residents that have been languishing under an extended budget impasse. Illinois needs new revenue. SB 1719 generates significant revenue – raising it from those who have profited for years off of a rigged tax system, instead of asking for more sacrifices from our most vulnerable residents.”
“This is an important step in creating the kind of state we want to live in,” stated Senator Daniel Biss (D-Evanston), lead sponsor of SB 1719. “We have a small group of very wealthy individuals using an archaic loophole to avoid paying their share, at the expense of other taxpayers and vital social services. Illinois now has an opportunity to right this wrong, to move towards greater fairness, and raise $1.7 billion in new annual revenue that our state desperately needs.”
Despite his loudly voiced objections, Sen. Dale Righter (R-Mattoon) must now count on colleagues in the House to stop a bill that will set up a “Small Donor” matching program for candidates running for some offices in Illinois.
Senate Bill 1424, reintroduced to the Senate by Sen. Daniel Biss (D-Evanston), would allow candidates for governor, attorney general, comptroller, treasurer, secretary of state, state senator and state representative to opt into the program.
Only donations of $500 or less would be allowed under the program, with contributions of $25 to $150 being matched at a 6 to 1 ratio.
Biss has argued that the program levels the playing field by giving small donors more power in elections, but Righter called it another money grab that will hurt taxpayers already financially strapped.
“Despite the amendment that has been filed, the message back home and the question that you all will be answering if you vote for this would be, ‘Wait a minute, senator, you voted to spend my hard-earned tax dollars, including the tax increase, on the campaigns that we’ve been seeing for the last few years?’” Righter said.
I am attaching some artwork that I had a friend of mine in Carbondale, Brad Moore, illustrate for me. It’s a “Budget Man” on the side of a milk carton, like the old missing person photos. My plan is to put this on a T Shirt and sell them online and take the profits (about $10 per shirt) and give that money to some social service providers in Illinois that are being starved by the lack of a budget. I was thinking starting small and just publicizing it here in Southern Illinois and giving the money to the Women’s Center in Carbondale. […]
Will Stephens
WXAN General Manager
Mayor of Murphysboro
* This would go on the front of the t-shirt…
But Will is wondering if he should put a message on the back, perhaps to motivate people to act. I suggested we consult the CapitolFax.com hive mind. So…
* The Question: What slogan or message should be on the back of this t-shirt?
Under the Senate plan, which passed Tuesday on a partisan vote of 32-26, the [income] tax rate would nearly return to what it was: Illinois residents are looking at paying a rate of 4.95 percent on their income taxes. Corporations would see their taxes rise, too, with the rate edging from 5.25 percent to 7 percent.
Both hikes would be retroactive, going back to January.
Because the income tax hike is retroactive to Jan. 1, 2017, personal income taxpayers will pay an effective tax rate of 5.81 percent on their earnings for the remainder of the year.
The reason it’s backdated is because the grand bargain was originally designed in January to fix the hole in Fiscal Year 2017, the current fiscal year. So the plan all along has been to make it retroactive to January 1st.
That would’ve been no problem if the grand bargain had passed in January or February, but Gov. Rauner demanded the Senate fix the Fiscal Year 2018 hole as well and then punted the problem to the chamber during his February budget address. And when Rauner derailed the package on March 1st it took almost two more months to patch something together, and by then it was a partisan plan.
So, more delays will mean an even higher effective tax rate for the rest of this calendar year unless they simply write off FY 17 like they already have with FY 16.
* Apparently, this situation calls for a futile gesture on somebody’s part. In this case, a front-page editorial…
A year ago we declared “Enough.” The day after, the governor and lawmakers passed a six-month stopgap spending plan that did not provide lasting stability. That’s not good enough.
It’s time to demand that Governor Rauner and our lawmakers do what is right. It’s time for the budget to come first. To not do so will cement their legacy with one word that encapsulates the sorry condition of our state.
Every sign of progress has been marred by partisan politics. A budget was approved Tuesday by the Senate — with no Republican support. Even if the House concurs, Rauner likely will veto a measure only supported by Democrats. A bipartisan compromise is needed for Illinois to persevere.
A bipartisan compromise is required, but sometimes you gotta force the issue. So instead of saying the Senate’s bills should be put on Rauner’s desk and he should sign them, or at the very least the Senate’s proposal should be used as a template for a final deal, they punted.
That Gov. Bruce Rauner and the Illinois House and Senate would allow Illinois to stumble through yet a third year without a budget, as bills and debt pile up and businesses and residents leave, is beyond irresponsible.
And spare us the lecture about the need for structural reform first. If Illinois keeps going like this, there won’t be much to structure or reform.
Meanwhile, Rauner and the Legislature — most specifically House Speaker Mike Madigan — have shown zero political courage. At least Senate President John Cullerton has stuck his neck out, pushing a spending plan through the Senate on Tuesday, without a single Republican vote, that includes tax increases and spending cuts.
Rauner is running political ads, the goofy ones with the duct tape, laying the groundwork for his re-election next year. But he is not governing. As we said in a previous editorial, the first and most basic job of a CEO — and a governor is a CEO — is to produce a budget. The buck stops there.
And Madigan? Mike is being Mike, as inscrutable as ever. Nobody’s can be sure if he has any interest in passing a state budget at this point, or if he’s biding time until he can run Rauner out of Springfield.
And yet no endorsement of the Senate’s plan.
The budget can’t be balanced without actual legislation. The Senate Democrats are the only people in the Statehouse who have passed just such a package of bills. If you really want to drive the argument, then endorse a specific proposal. Maybe even back the plan devised by the Civic Committee of the Commercial Club of Chicago. Or the Illinois Policy Institute’s plan. Or Sen. McCarter’s plan. Something. Anything. Just pick a freaking lane, already.
Encouraging people to angrily vent over the phone without any direction is irresponsible and plays right into the hands of both Rauner and Madigan.
The Illinois General Assembly is back to work after the Senate approved a major spending package.
Eyes are back on to the Senate on Wednesday to see how negotiations will shape up between majority Democrats and Republicans over issues important to Gov. Bruce Rauner.
The Senate approved a $5.4 billion tax increase for a $37.3 billion spending plan Tuesday. Republicans said Democrats were walking away from attempts to trade a tax increase for a local property tax freeze and Rauner-demanded reductions in the cost of the workers’ compensation system.
* A Senate Republican operative was super cheerful this morning about the spotlight finally being off that chamber after months of turmoil, and then I shared the above link. The response…
Who told them that?
I don’t think anybody did. The Senate President’s spokesman said he’s not aware of any scheduled negotiations on property taxes or workers’ comp. Cullerton is open to such negotiations, however.
The governor may want these talks to stay in the Senate, but those days are over unless he comes up with a new path.
“All of these cries for more time, please allow me to say you have more time in the other chamber,” said Sen. Toi Hutchinson.
*** UPDATE *** I explained some possible House scenarios to subscribers this morning and told them about Springfield’s special visitor. Here’s Greg Hinz…
About two hours after Illinois Senate Democrats sucked it up and approved a big tax-hike bill late yesterday, two other figures were seen dining at a Springfield restaurant: Michael Sacks, a confidant and emissary for Mayor Rahm Emanuel, and House Speaker Michael Madigan.
Consider it a sign that the inevitable finally has arrived. […]
That leaves Madigan in position to box in Rauner. But what will he actually do?
Sacks, who was good enough to email me, isn’t saying — if he knows. About all he’ll disclose is: “I came down with a group to talk about education funding. With the prospect of a new formula and significant revenue, it is really important to get things right. It was great to be able to catch up with (Senate) President (John) Cullerton and Speaker Madigan and other leadership.” […]
Madigan spokesman Steve Brown says the speaker and governor are not now scheduled to talk. But he does allow that a Madigan budget and revenue package likely will emerge in committee “over the weekend.” It looks like that will be the first solid indication of the shape of the world.
A federal judge could decide today whether insurers collectively owed more than $2 billion by the state of Illinois can move to the front of the long line of vendors waiting to get paid.
If they win, Illinois Comptroller Susana Mendoza, who pays the state’s bills, says she could lose the little room she has to decide who gets paid first. Currently, she says, she prioritizes payments for agencies that care for the most vulnerable populations: children, elderly and people with disabilities, among others. […]
The bill backlog for vendors has reached $14.4 billion, Mendoza said. Of that, private insurers that are contracted to manage the care of about two-thirds of Illinois’ 3.1 million Medicaid recipients are owed more than $2 billion. The budget crisis has created a ripple effect: When insurers don’t get paid, they don’t pay doctors and hospitals. Patients, particularly those on the state health insurance plan, lose out if their providers turn them away or make them pay upfront for care. […]
Consent decrees and court orders dictate how about 90 percent of bills are paid. But Mendoza has the discretion to prioritize who gets the remaining 10 percent, a small pool of money she wants to protect.
If the insurers win their federal case, the comptroller could lose control to the court of where that money flows. A victory for the insurers could be a “breaking point” for Illinois, she said.
* More…
W/o a budget, IL will owe more than 1/2 its operating budget to the bill backlog or $16 billion by the end of the fiscal year, 6/30. #twill
— Illinois Comptroller (@ILComptroller) May 24, 2017
90% of payments made by our office are court ordered, 10% made w/ discretion. A federal hearing may change that.https://t.co/lBB3UXppiE
— Illinois Comptroller (@ILComptroller) May 24, 2017
A question I’ve had for a while now is what happens when the state just doesn’t have the cash to satisfy all these court orders? Does a federal or state judge take charge? And which judge? The state is dealing with several federal consent decrees and a state court which has ordered employees are to be paid without an appropriation.
*** UPDATE 1 *** The judge didn’t issue a ruling today. Both sides were told to return to court next Tuesday.
*** UPDATE 2 *** From the courtroom…
Arguments for moving Medicaid to front of the line: system is crumbling & doctors will stop seeing Medicaid patients if they aren't paid
Two years ago, Judge Joan Lefkow ordered the state must pay Medicaid providers even though it is operating without a budget. The state is now virtually out of money — its backlog of bills has grown beyond $14.2 billion — and Medicaid service providers said the state isn’t paying them fast enough.
During a Wednesday court hearing, Lefkow suggested that Medicaid payments be paid faster — but she stopped short of issuing a ruling. “I don’t know what I’m going to do here,” said Lefkow, who called for another court hearing next week, where she is expected to make a decision.
“It doesn’t seem right that Medicaid payments are being de-prioritized, shall we say,” Lefkow said. “Ultimately this comes down to a political issue.” […]
As the hearing concluded, Lefkow addressed the attorneys who have been representing the state government during the budget impasse.
After giving a typically fiery speech on Tuesday to those gathered at a City Club of Chicago luncheon in which she denounced Gov. Bruce Rauner and his No. 1 supporter, billionaire Ken Griffin, for contributing $70 million between them to re-elect Rauner, CTU president Karen Lewis was asked by Chicago Inc. what she thought of Pritzker’s largely self-funded campaign. […]
“Can one oligarch replace another oligarch?” Lewis responded, rhetorically. “What’s going to be different?”
Lewis said she’d met with all of the Democratic primary contenders, including Pritzker, adding that she’d shared her concerns with Pritzker about his estimated $3.4 billion wealth.
“He said, ‘But I’m a progressive,’” Lewis said. “I thought it was hilarious!”
“You don’t think that’s funny, that an oligarch thinks he’s progressive and says, ‘You know, I’m different’?!”
* Last night and then earlier this morning, I asked most of the Democratic gubernatorial campaigns for their response to the Senate’s passage of a budget that includes new revenues.
Here’s Galia Slayen at the JB Pritzker campaign…
“It’s been 693 days without a state budget. Our state’s finances are in shambles and working families across Illinois are paying the price. Rauner’s pet projects and stalling tactics aren’t going to get our state the relief it so desperately needs. It’s past time for Bruce Rauner to stop playing politics and figure out how to govern.”
Not exactly an answer to my question. The Pritzker campaign is also running “interactive digital banners highlighting the 693-day budget crisis that Bruce Rauner created”…
* Sen. Daniel Biss voted for the bills, and his state office sent this out after the vote…
“It’s time to stop the dangerous, unproductive, two-year staring contest in Springfield.
“A budget is a statement of priorities, and while this one is far from perfect, it reflects some core priorities – health care for the poor, P-12 schools, higher education, an increase in the tax credit for low-income workers and vital services for those who need our help. It offers some short-term stability by making different choices and calling on everyone to share the burden of cleaning up Gov. Bruce Rauner’s failures.
“But long-term solutions to our fiscal problems will require bigger reform to create a fair tax system. We must repeal our constitution’s unjust and unusual flat tax provision; we must finally require millionaires and billionaires to pay their fair share; and we must eliminate the current carried interest tax loophole that allows the super wealthy to evade state taxes.
“That’s why I am pleased that today we made progress toward establishing each of these policies and building the fair economy that is our only hope for long-term economic health.
“These are the kinds of honest solutions that taxpayers want lawmakers to find the courage to pursue. Until we do that, we will continue to fight budget battles like these – battles that result in winners and lowers – over and over again.”
* I’ll let you know if I hear from the other campaigns. Ameya Pawar’s Twitter feed was silent on the topic, as was Bob Daiber’s and Chris Kennedy’s except for this response today to Gov. Rauner’s demand for a property tax freeze…
Our property tax system is broken. Public schools lose out. We don't need a freeze. We need to fix it. - CGKhttps://t.co/xfj0J7UGom
How about telling us what the “fix” would be? Say what you want about Rauner, but at least he has an idea.
Such an odd campaign.
…Adding… By the way, the Kennedy tweet links to a story that’s partially about JB Pritzker’s new online ad.
*** UPDATE 1 *** Ameya Pawar…
I applaud my friend Sen. Biss for his efforts on the carried interest bill and the public servants in the Illinois Senate for putting the most vulnerable, our public schools, our social service agencies, and the future of Illinois ahead of politics.
We now have confirmation - something we knew all along - that Governor Rauner and the Senate Republicans he controls never wanted a budget. Social services are collapsing and people are dying because of Governor Rauner’s failed leadership and the Senate Republicans are now complicit. They should be ashamed of themselves.
*** UPDATE 2 *** Kennedy campaign…
It’s a sad day when, after almost two years of stalemate and stubbornness from a failed governor, we appear no closer to resolving a budget crisis that’s holding the entire state hostage. Chris Kennedy believes taxes and cuts alone are not enough to solve our problems. Illinois needs fundamental change from top to bottom to restore the promise of this state, including an overhaul of the corruptible property tax system that we rely on to fund our public schools.
* From the Illinois Policy Institute’s radio network…
State Rep. Jeanne Ives, R-Wheaton, said she prefiled to be a sponsor of the tax increase bill “because I think there’s a bigger conversation that needs to happen before there’s a tax increase.”
Ives said she’s not on board with any tax increase.
“There’s a lot of tax increases in here we shouldn’t even have a conversation about until we talk about cutting spending and doing more for the business community rather than making them the highest tax in the United States,” Ives said.
However, she says her attempts to control it in the House could be taken away from her through procedural moves.
She would love nothing more than a fight over sponsorship of SB 9, and that’s why I really doubt the House Democrats will do anything. Why make her into a national cable TV and talk radio martyr in her courageous and lonely battle against the entrenched Speaker Madigan? So, she’d better milk this for all it’s worth right now because at the end of the session she will almost undoubtedly still be the chief House sponsor of a huge tax increase.
Now the bill moves to the House and into the safe hands of the staunch GOP anti-taxer state Rep. Jeanne Ives.
Screeeeech! Say what? Yup. Ives, a Republican, stealthily filed paperwork early in the session ensuring that the revenue bill to come out of what was then the so-called grand bargain would end up in her lap. So the Dems’ SB9 is slated to come to the same House member who told POLITICO last night she believes the state needs a “tax revolt.”
If the House Dems do decide to run a tax hike bill, they can shell out a Senate bill and amend it with their language. Or, they could use a House bill.
Remember, the Senate removed all the “if and only if” language from the grand bargain package that inextricably tied all those bills together. When Rep. Ives pre-filed for sponsorship back in February, that language was still in the grand bargain bills so her motion would’ve been a more important move. As it stands now, she’s merely sitting on a bill that can be easily copied.
No doubt this has great comedic value, and I’m all for that in times like these. But Ives’ move means nothing.
“I want to be a part of the conversation when it comes to taxes and how any tax increase would impact hardworking Illinois families and job creators. Senate Bill 9 would give Illinois the highest taxes on employers of any state in the nation and make it more difficult for middle-income families to make ends meet. There is a bigger conversation that needs to be had before the state considers a tax increase; specifically on real property tax relief, responsible spending cuts and pro-business reforms to help create jobs in Illinois. I believe the best way for me to have a voice in that discussion is to control the bill in the House of Representatives as its sponsor.”
This sounds reasonable until you realize that no matter what sort of “bigger conversation” is had on property taxes, budget cuts and pro-business measures, Rep. Ives won’t be voting for a tax hike anyway.
Wednesday, May 24, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
Charter schools operate best when local communities, parents, teachers and school boards work together to offer the best options possible for all of our children. HB 768 supports that effort and promotes local control in establishing quality public charter schools.
The State Charter School Commission will remain in its current role as the authorizing entity for currently existing state-mandated charter schools. Their effective work in this role will not be impeded in any way with the passage of HB 768.
Let’s work together to ensure quality public charter schools for all the children in Illinois. Support HB 768.
What happened to the art of compromise? I know its not perfect but I feel that you, Madigan and Cullerton should work out a budget where the people win. I feel that you, Madigan and Cullerton let your ego’s get in the way of progress. Remember you, Madigan and Cullerton were elected by the people. Serve the people period.
The governor only read the first sentence, then gave a long, rambling response that appeared to indicate Democrats needed to compromise with him, not the other way around.
It got me to thinking that I’d rather hear more of what Hadnott had to say than to listen to another day of everyone blaming each other in Springfield, so I tracked him down. […]
Some of you are saying “Amen,” [about Rauner’s response] and some are wondering how anybody could compromise with a fellow with that kind of tin ear. […]
[Hadnott’s] premise is simple: “I feel like three reasonable people should be able to sit down and work this out. It wouldn’t be perfect. But it would be better.”
“You can’t just have it all your way,” Hadnott said.
“In a compromise, I get A, B and C, and you get D, E and F. They keep saying win-lose. I’m a big believer in win-win.
I think that’s how a lot of people see it, and while those of us who follow these matters closely might get bogged down on the details, Hadnott is expressing the essence of the common man’s frustration over living in a state now on Day 694 without a budget.”
Hadnott also said that while he believes the governor is interested in finding a middle ground, he ought to stop talking so much about the past: “No one wants to hear about the past mistakes. The issue is where do we go from here?”
* SJ-R: Senate Dems approve $5.4B tax increase; budget fight continues: Opting to stop waiting for Republican support, Illinois Senate Democrats Tuesday moved ahead with a tax-hike-and-spending plan aimed at finally trying to end a stalemate that has left the state without a permanent budget for nearly two years.
* WJBC: Local Republicans decry income tax hike: Central Illinois Republicans were unanimous in slamming a proposed $5.4 billion tax increase which the Illinois Senate pushed through Tuesday with no GOP support.
* Public Radio: Illinois Democrats Pass Budget Proposal in Senate: The Illinois Senate passed a budget package Tuesday after a similar plan failed last week. The difference was several new “yes” votes from liberal Democrats. No Republicans supported either plan.
* Bond Buyer: Illinois Senate Democrats go it alone on budget: Forging ahead on their own, Illinois Senate Democrats sent on to the House a $37.3 billion fiscal 2018 budget that relies on more than $5 billion of new tax revenue to help stabilize the state’s rocky finances.
* In a rather unusual and pretty darned humorous twist, anti-tax state Rep. Jeannie Ives (R-Wheaton) has filed the requisite paperwork to be the House sponsor of Senate Bill 9.
SB 9 is the bill the Senate Democrats passed today which raises income taxes and expands the sales tax to services.
Rep. Ives told me she believes the bill “needs work.”
From a Senate Democratic operative…
So Jeanne Ives is the sponsor of a tax hike? Maybe we did coordinate this with Madigan.
Heh.
…Adding… From the Illinois Policy Institute’s news service…
“I prefiled for the bill so I could control it in the House,” Ives told Illinois News Network. “I think that there’s a bigger conversation that needs to be had before we do a tax increase. … I thought the best way to have a voice in that discussion would be to control the bill in the House.”
Ives acknowledged that there are procedural ways for Democrats to take the bill away from her, but she hopes that doesn’t happen.
“There are a lot of tax increases in here that we shouldn’t even be having a conversation about until we’ve talked about cutting spending and doing more for the business community rather than making them the highest taxes in the United States,” she said.
…Adding… SB 6, which is the omnibus appropriations bill, has passed with 33 votes and no debate.
*** UPDATE 1 *** ILGOP…
“Senate Democrats’ decision to ram through multiple tax hikes outside a comprehensive jobs and reform package confirms that the entire Democratic Party’s position is to raise taxes while protecting the status quo. First Mike Madigan made clear real reform is not an option, then Democratic candidates for governor began campaigning on raising taxes without reform, and now the Senate Democrats are falling in line. The Democrats moved forward an agenda today that raises income taxes, expands the sales tax and ensures property taxes keep rising.” – Illinois Republican Party Spokesman Steven Yaffe
In 2015, Mike Madigan stated his desire to raise the income tax to 5 percent without reform.
In 2016, Democrats refused to even send Gov. Rauner a balanced budget or pass reforms that voters from both sides support.
And in 2017, Democratic candidates for Governor latched onto the Madigan position – tax hikes without reform.
The News-Gazette notes, J.B. Pritzker “supports a substantial increase in the state income taxes… Pritzker recently told a group of party members that the state income tax should be increased to at least 5 percent, perhaps higher.”
Pritzker now says he opposes a property tax freeze.
Chris Kennedy called reforms to fix Illinois “Bullsh#t” and “stood with Speaker Madigan” against a balanced budget with spending caps and reform.
Daniel Biss, who ran Mike Madigan’s Super PAC, even said he’s open to the idea of taxing retirement income.
And Ameya Pawar believes that “most people will tell you they’re willing to pay more taxes.”
Democratic candidates for Governor support tax hikes without reform. Now, the Senate is following suit.
*** UPDATE 2 *** Press release…
Speaker Michael J. Madigan issued the following statement Tuesday regarding budget bills passed by the Senate:
“The appropriations measures passed by the Senate will be thoughtfully considered by the House Democratic Budget Working Group headed by Representative Greg Harris. Since the beginning of the session, a working group made up of Representatives Harris, Carol Ammons, Kelly Burke, Kelly Cassidy, Fred Crespo, Will Davis, Robyn Gabel, Will Guzzardi, Lisa Hernandez, Elaine Nekritz, Elgie Sims and Michael Zalewski has worked diligently on state budget issues, including passage of a Lifeline Budget. They will thoroughly review the Senate’s proposal and consider it as part of our efforts to pass a full-year balanced budget that will end the budget impasse.”
…Adding… Rauner…
Let me be clear, to get my signature, any agreement must include real property tax relief. #Twillhttps://t.co/7SwClhRYAE
My Caucus and I cannot support the Senate Democrats’ budget and revenue package in its current form.
I truly wish we would have been able to come together on a comprehensive solution to the state’s challenges. My biggest concern has always been for the state and its people. I want to avoid further downgrades and fiscal meltdown. I want to help put Illinois on a path to stability.
We need a balanced budget. We need property tax relief. We need significant reforms to reach our goals.
If this package moves to the House, I hope they can approach it in a bipartisan manner and make further progress in all those areas.”
Since most eyes are on the Senate while waiting for a budget solution, not much is being heard from the House. One reason could be because not much is happening.
The House has spent little more than five hours in session during all of May. Monday, the day’s session began around 3:30 and the House adjourned about 4 pm, to head off to committees. It’s the unfortunate time card Representatives are clocking in this month.
The House took a week off this month and attacking that break is completely fair game because it’s almost unheard of and was really a foolish idea considering the times we’re in. That break didn’t make it into the story, however.
* Also, that WCIA piece was not an original story. The Illinois Policy Institute published this last Friday…
Illinois state lawmakers are taking paychecks despite not passing a budget for nearly 700 days. One might assume they’d be working around the clock to earn them.
But Illinois House Speaker Mike Madigan has called the House into session for less than six hours in the entire month of May.
But House appropriations committees – where lawmakers should be forging a new budget – have seen relatively little action in 2017.
The Appropriations General Services Committee has held two meetings in the last 20 days.
And with all the talk Illinoisans have heard from lawmakers about how the state funds public education, the Appropriations Elementary and Secondary Education Committee has met only twice in nearly 50 days.
Beyond that, those approp committees tend to take testimony from agencies and various stakeholders, then craft proposals behind the scenes and then vote on them in public. The House Democrats are working on a budget. They invited the Republicans, but were rebuffed.
* There are plenty of reasons to criticize the House - so many that I couldn’t count them all. And while they could’ve voted on Senate bills as they trickled out of committee, that would’ve given them less time to deal with those bills in committee. So, six of one, half dozen of the other.
All that being said, this session does appear designed to keep House members scurrying around so they don’t have much time to cause trouble. Speaker Madigan freed just about every bill from Rules Committee earlier this spring, which flooded committees and kept his people pinned down in hearings and negotiations. And then came the May break, which caused more intense committee activity to deal with Senate bills.
But, hey, “Less than 6 hours!” is an easy thing to understand by a public that’s already disgusted with Springfield - even though it doesn’t really mean anything.
Boy, it must be nice to get paid a lot of money by the taxpayers of Illinois, and goof around on the job. Leave it to your elected representatives.
Last time I checked, the state of Illinois did not have a budget and social service agencies and state vendors are waiting to paid. So, what was one of Rockford’s representatives to the Illinois House of Representatives doing? Working? Nope! She helping to planning a softball game on taxpayer time.
Yes, in the Illinois House, last week, representatives were caught on video wasting precious time to discuss the upcoming House vs. Senate softball game and basketball game.
Um, the offending video was from last year, not last week. Oops. That video was indeed from last week.
* Oddly enough, I made the same case to subscribers this morning. From Fitch…
FITCH: MAY 31 NOT THE DEADLINE FOR ILLINOIS’ BUDGET
Fitch Ratings-New York-23 May 2017: As the state of Illinois approaches the end of an unprecedented second fiscal year without having enacted a full-year general revenue fund budget, attention turns to the budget process for fiscal 2018, which begins on July 1, 2017, says Fitch Ratings.
Much is being made of the rapidly approaching May 31st end of the regular legislative session, after which state law requires super-majority approval of any tax increases. Prior to that date, a tax increase, which all parties seem to acknowledge must be a part of comprehensive budget agreement, can move forward with a simple majority vote.
Fitch does not view Illinois’ voting requirements as the main obstacle to passing a budget. Illinois’ budget crisis and related deterioration in credit quality is the result of a political impasse between the Governor and the legislature. All parties - legislative and executive, Republican and Democratic, House and Senate - have reported on-going negotiations throughout the fiscal impasse. At times these negotiations have seemed to be approaching a positive conclusion, incorporating a “grand bargain” of tax increases and spending controls designed to both close the annual budget gap and to address the rapidly accumulating accounts payable backlog. It seems clear that a budget will not be enacted until a compromise is reached. As a result, Fitch does not view the super-majority voting requirement that will arise after May 31st as the greater hurdle to enacting a balanced budget by the start of the fiscal year.
Fitch downgraded Illinois’ rating to ‘BBB’ on Feb. 1, 2017 and maintained the rating on Rating Watch Negative. At that time, we indicated that the Rating Watch would be resolved within six months based on an assessment of the state’s fiscal trajectory as it starts fiscal 2018 and that failure to enact a balanced budget for fiscal 2018 would result in a further downgrade. The timing of that review is unchanged.
Your thoughts?
* Meanwhile…
As Senate Democrats prepare to vote on a bill to permanently increase income taxes, Governor Bruce Rauner today announced in a video on his Facebook page that he will not sign off on any budget agreement that increases taxes without real property tax relief.
“The biggest issue that now stands in the way of us reaching an agreement is resistance to freezing your property taxes, and giving you the ability to control whether your property taxes go up or down in the future,” Governor Rauner said. “We will always stand on the side of taxpayers and homeowners and make sure we get an agreement that is fair to you.”
Property taxes have emerged as the biggest issue in negotiating a balanced budget.
Property taxes in Illinois are the highest in the country, and the Governor has long advocated for a freeze to provide homeowners relief. He believes if state lawmakers are going to ask for more in income taxes, then homeowners deserve relief from rising property taxes. In January, the House of Representatives passed a property tax freeze that granted local voters the ability to control increasing or decreasing their property taxes.
Red-light cameras brought in nearly $67 million last year for 86 Chicago suburbs and the companies that operate the devices, an investigation by the Chicago Sun-Times and ABC7 Chicago’s I-Team has found.
Fines collected from drivers accused of running red lights in the suburbs now far surpass the amount of money reaped by the city of Chicago’s extensive and unpopular network, the Sun-Times and ABC7 found.
Between the start of 2014 and the end of last year, cameras in the suburbs brought in a total of nearly $170 million, according to records obtained from suburban governments throughout the area.
And the Sun-Times/ABC7 analysis of those documents shows suburban red-light revenues are rising sharply every year, as more and more local governments install cameras at intersections. The total collected from cameras in the suburbs increased almost 50 percent between 2014 and 2016.
About 95 percent of suburbanites getting tickets are accused of making illegal right turns against a red light, Wallace estimates. Bertuca, the Berwyn attorney, agrees that about 95 percent of the cases he sees in traffic court involve drivers turning right. […]
Although a federal study in 2010 found that right turns were factors in just 1.2 percent of crashes, red-light camera operators and municipal officials say the cameras are about safety first, not money.
What happened to the art of compromise? I know its not perfect but I feel that you, Madigan and Cullerton should work out a budget where the people win. I feel that you, Madigan and Cullerton let your ego’s get in the way of progress. Remember you, Madigan and Cullerton were elected by the people. Serve the people period.
Next question, this is from Edward Headnott – or Hadnott – from Chicago, and Edward asks: What happened to the art of compromise? [Laughs]
Edward, great question. What happened to the art of compromise? So let’s talk about that.
You know, in order to compromise you need two sides who are willing to compromise, who want to come to a middle ground, and the tragedy in Illinois — we’ve had people who’ve controlled our system, and who’ve controlled our General Assembly, and who’ve controlled our Democratic Party, they’ve been in power for 35 years.
And, they created the system and they have no interest in changing it, not even a little bit, because that would admit that they have failed, that would admit that they needed to change, and they don’t want to acknowledge that. That’s our fundamental challenge, but we’ve just got to stay persistent. We’ve got to find common ground, and compromise so we can move forward.
Let me give you some examples about this. So, I’ve said — term limits, hugely popular among Democrats and Republicans. Good policy. It’ll change the culture inside state government very quickly, and we’ll have people in government who are there for the right reasons. So far, the members in the House, in the majority, the House Democrats, have said: No term limits, won’t talk about it, take it off the table. So, that’s, they’re not willing to compromise at all. And over in the Senate, they’ve said: well we’ll talk about term limits, maybe we’ll consider them for legislative leaders, but for nobody else. And I said: How about as a compromise on term limits, how about if we have you and the General Assembly won’t put term limits on yourselves, out of your own self interest — I don’t agree with you, I think that’s wrong — but how about put term limits on me, all governors, lieutenant governors, attorneys general, comptroller, treasurer, secretary of state, and also legislative leaders? How about that as a compromise — don’t put it on yourselves as legislators, but put it on everybody else? That’s a compromise. So far they’ve said no.
Similarly on property taxes. I’ve said: Give the people of Illinois the ability to control their own property taxes, let’s freeze them were they’re at, and let the people through a voter referendum and voter control decide if property taxes go up or down or stay flat. It’s a reasonable thing. So far, the House Democrats under Speaker Madigan have said no, won’t talk about it, take it off the table, refuse. And over in the Senate, they’ve said well, we’ll consider it, maybe we’d do a two year property tax freeze, but no real local control. A two year property tax freeze? That’s nothing. Your property taxes will go through the roof in the third year. That’s a phony reform. That’s just a headline. That’s not real change.
So there’s not real compromise going on. There’s not real change to the system. We’ve got to get compromise, we need to find common ground, meet in the middle and we can come up with solutions so we’ll have balanced budgets and get good things done for the people of Illinois. Especially property tax relief, and especially growing more jobs across the state. We’ve just got to stay persistent. I hope the members of the General Assembly, especially in the Senate, where they’re at least a little more open to compromise, I hope they’ll keep working, and we’ll get to a good place for everybody with a truly balanced budget.
A proposal to begin a limited system of public financing of races for state office has quietly picked up some momentum in Springfield. It still faces some big potential roadblocks, but I wouldn’t sell its prospects short at a time when voters perhaps are getting tired of watching millionaires and billionaires snatch top slots. […]
Now, normally I’d say the idea is a nonstarter over in the House, where Speaker Mike Madigan likes to keep his members close by supplying much of their campaign money.
But these are odd times, and as lawmakers race toward a scheduled May 30 adjournment, the speaker—interestingly—has assigned the bill not to some burial-ground study panel but to the House Executive Committee.
“If it’s in exec, it’s not being held,” says Madigan spokesman Steve Brown. Pressed further, Brown says only, “I’ve not heard much discussion about it.”
Its sponsor, state Rep. Kelly Cassidy, D-Chicago, says she’s hopeful.
“I can see reasons why the speaker would lean either way,” Cassidy told me. “The opportunity to contrast small donors with (Madigan nemesis) Gov. (Bruce) Rauner is a good one.”
* Press release…
State Representative Will Guzzardi, the legislative leader of the Tuition Free Illinois campaign, joined fellow representatives Lou Lang (D-Skokie) and Christian Mitchell (D-Chicago) to announce plans for a new College Affordability Grant for Illinois students on Tuesday.
The grant will target students and families who can’t afford to pay for college out of pocket and who don’t receive enough federal or state aid to cover the costs of tuition. It will make tuition and fees completely free for most community college students and around half of university students. The remainder will see considerable cost reductions.
“No student should be denied a chance at a higher education because they can’t afford it,” said Rep. Guzzardi. “This new program is a vital first step to reducing the crushing burden of student debt on low- and middle-income families.”
The College Affordability Grant is part of a broader package aimed at revitalizing public higher education in Illinois. The legislation also creates a pilot program to help alumni with existing college debt. It will refinance high-interest private student loans, purchasing the debt and lending it back to students at 0% interest.
Additionally, the program will create a fund for the recruitment and retention of top faculty, and will double the amount of work-study funding currently available.
On the other end of the political spectrum, there are three bills in the Illinois Legislature that would tweak existing laws to help bolster the rights of LGBTQ folks. They are entirely sensible bills backed by the LGBTQ advocacy group Equality Illinois that we hope will make it to the governor’s desk. He should sign them without hesitation.
A look at the bills:
Vital Records Act amendment: Proposed by Rep. Greg Harris of Chicago, it would allow transgender people to change their birth certificates to reflect their gender identity without going through sexual reassignment surgery. It would be enough if a health-care professional signed a declaration affirming the person has gone through “clinically appropriate” treatment, or a doctor identifies an intersex condition. […]
Elimination of the gay panic defense: This bill, sponsored by Sen. Dan Biss of Chicago, would explicitly prohibit defendants charged with first- or second-degree murder from using a “gay panic” or “trans panic” defense. These cases do not come along often but shock the senses when they do. Defendants will blame the victims, alleging that a flirtation by a gay or transgender person or the discovery of a person’s sexual orientation drove them to react violently. […]
Gubernatorial Boards and Commissions Act amendment: This bill, sponsored by Sen. Scott Bennett, a Democrat from Champaign, also has drawn support from Republicans. It would add a box that could be checked if LGBTQ people want to self-identify as such when applying to serve on boards and commissions under the governor. Providing the information would be voluntary.
Rich, turnout for my stair caucus has been a bit light, would you mind posting this on the blog? I will share the link wide and far…
Every Wednesday in May the Stair Caucus will be meeting at 7:30AM!
As we all know May in Springfield can be stressful and we will be spending a lot time here. Let’s climb some stairs together every week to vent some steam and sweat! It doesn’t matter if you are in good shape or just a shape. Beginners are welcome, honestly I get winded after just a few flights myself.
For this Wednesday May 24 at 7:30AM, we will meet at the ground floor stair case at the South end of the Stratton Building. As a bipartisan caucus, every week we will switch sides.
Legislators that sweat together, work together…
Representative Allen Skillicorn
Years ago, a buddy of mine told me he’d lost 25 pounds by simply taking the stairs at the Statehouse and the Stratton. He insisted he made no diet adjustments and did no other exercise.
* I asked Skillicorn if he had some pics…
The best I have is the pic after I lost 28lbs earlier this session. So far I’ve lost about 35lbs since December.
* The “after” pic…
* Skillicorn last December…
* The Question: What’s the most effective thing you’ve done to lose weight?
Illinois had the nation’s highest black unemployment rate in 2016, according to annual unemployment data released by the federal Bureau of Labor Statistics, or BLS. Only 51 percent of black adults reported having some form of work in Illinois, highlighting an economic crisis that far too few political leaders are talking about. The BLS data support the conclusions in recent quarterly reports from the Economic Policy Institute, which have pointed to Illinois as having the nation’s highest black unemployment.
Illinois’ weak job creation has a significant effect on the black community, especially due to manufacturing job losses in the Chicago area and a lack of construction job opportunities. Illinois’ black unemployment rate was 12.7 percent in 2016, compared with 6.7 percent for Latinos and 5 percent for whites.
Illinois’ 12.7 percent black jobless rate is the highest in the U.S., tied with Nevada. However, Illinois’ black population is seven times as large as Nevada’s, meaning Illinois’ crisis is playing out on a much larger scale. Illinois’ neighboring states achieved much lower black jobless rates than Illinois in 2016. (BLS does not calculate a black unemployment rate for Iowa, however, because the state’s black population does not constitute a sample large enough to be included in the BLS survey.)
The weighted average black jobless rate for all other states is 8.1 percent, and the weighted average among Illinois’ border states is 8.9 percent.
Perhaps equally telling is Illinois’ black employment rate – the percentage of black adults who are engaged in some form of work. Illinois’ black employment rate is only 51.2 percent, meaning that just over half of Illinois’ adult black residents have some form of work. Michigan is the only state with a lower black employment rate than Illinois.
The weighted average black employment rate for other states is 56.8 percent, and the weighted average among Illinois’ border states is 59.2 percent.
Black men in Illinois had a 14.2 percent unemployment rate, the second-worst in the nation after Nevada’s 15.5 percent rate. Black women in Illinois had an 11.3 percent unemployment rate, also the second-worst in the nation, better only than Pennsylvania’s 12.6 percent rate.
Black employment in Illinois fell by 18,000 people from 2015 to 2016, and the number of black workers in Illinois’ labor force shrank by 16,000. Despite the shrinking workforce, the black unemployment rate increased to 12.7 percent from 12.2 percent year over year.
The number of black people working in Illinois has been in decline since the turn of the century. There were 77,000 fewer blacks working in Illinois in 2016 compared with 2000, a shocking 10 percent decline in total employment. By comparison, Illinois’ combined white and Latino employment is actually up by 272,000 since 2000, according to the BLS’ annual average data.
Similarly, the recovery in black employment over the Great Recession era lags that of the rest of the state. Black employment is still down 5.1 percent compared with its pre-recession high.
* Related…
* Paper: State of Illinois’ middle class shrinking: A new report from a University of Illinois expert in urban development and local economies found that the share of middle-income households in the state of Illinois has fallen steadily from nearly 60 percent in 1970 to below 50 percent in the current, post-Great Recession period.
CrisisCreatinRauner.com is a new website from the creators of Pritzker’s Democratic team for governor, featuring a “count-up” clock tracking the length of Illinois’ historic budget impasse.
While the website’s opening day on Monday was pretty spartan, Pritzker’s camp said there will be new information posted every day as part of a “multimedia campaign” to “highlight the budget crisis of Bruce Rauner’s own making and the families, schools, and social service agencies that continue to pay the price.”
For example, the Pritzker campaign said it will use the site to promote what it calls a link between President Donald Trump’s proposed federal budget and the state’s failure to enact a comprehensive full-year budget under Rauner. They say Illinois has been a “testing ground” for “Trump-Rauner” budget policies.
“When Donald Trump proposes gutting funding for the programs that provide opportunity for working families, allow low-income students to go to college, and support survivors of domestic violence, Illinoisans know how this plays out. Bruce Rauner did it all first,” Pritzker spokeswoman Jordan Abudayyeh said.
— IL Working Together (@IllinoisWorking) May 23, 2017
.@GovRauner sends out a fundraising pitch, talks up the “importance of giving back” — a link to the donate page for his campaign pic.twitter.com/n5HDxpYIOW
— IL Working Together (@IllinoisWorking) May 22, 2017
Illinois’ bill backlog is growing so fast we had to update our chart.
“In fiscal year ’16 we had a 70% cut in appropriation. And for fiscal year ’17, the year that we are in, we had a 50% cut in appropriation,” said [Elaine Maimon, president of Governor’s State University]. “There is no fat at all,” she said. “And in fact we are beyond muscle and bone. What we are being asked to do is cut off vital organs.”
“It’s pretty dire,” admitted Tom Cross, who heads the Illinois Board of Higher Education and said administrators have reached a watershed.
“They’ve made changes, they’ve made cuts,” said Cross a former Illinois House Minority Leader. “We are at that point now where they have run out of options.”
According to sources with knowledge of these discussions, Rauner’s chief political strategist Mike Zolnierowicz is actively recruiting and meeting with candidates who may show potential to upstage some of the governor’s political rivals in a statewide election. […]
Former Comptroller Leslie Munger is rumored to be angling for a chance to regain her seat in 2018, but party leaders have privately expressed concerns about her electability after losing a rough election last fall. Although he did not respond to requests for comment, Zolnierowicz continues to explore other options for the high stakes Comptroller race.
After losing to Mendoza last November, Munger was awarded a pay raise to a salary of $138,000 as one of two deputy governors in the Rauner administration. When asked about her plans to run [in 2018], she replied, “No comment.”
Republicans openly admit they are gearing up for a broader campaign to overtake a majority in the House, which would effectively demote reigning Speaker Michael Madigan. The party would need to pick up 9 seats to unseat Madigan. It only managed to gain 4 seats during the 2016 election, narrowly escaping the Democratic supermajority. Representative Tim Butler (R-Springfield) acknowledges unseating Madigan is a long shot, but he contends Democrats have several vulnerable candidates in districts where he believes the GOP can compete.
Defeating Madigan’s daughter may prove to be the tougher task. Zolnierowicz, who left his post as Rauner’s chief of staff to become the party’s top strategist last summer, is said to have come down to a short list of candidates to oppose Madigan, yet concerns about name recognition and credentials prolong the decision.
Any suggestions?
* Related…
* Tribune Editorial: Lisa Madigan, Illinois’ incomplete attorney general: But she is compromised. She is incomplete. She cannot maximize the role of attorney general, as others have across the country, because she, her family, her supporters and her brand are interwoven with the fabric of clout that envelops this state. There is no way, or no willingness on her part, to pluck apart the fibers.
Kennedy’s statement that “because they pay less, we pay more” is arguably correct since a decline in property assessments on one property shifts the tax burden onto other property owners.
But Kennedy’s statement “because they pay less, our kids get less” isn’t true because schools have a fixed levy of money they request from property taxes. A decline in a property assessment doesn’t mean a decline in money that a school district will collect.
Asked about the misstatement, the Kennedy campaign offered a statement that did not address the question.
That campaign continually puzzles me.
*** UPDATE *** From the Kennedy campaign…
Sharing with you this comment that didn’t make it in morning spin, so for the record, we did address his question.
Chris Kennedy has been talking about how the property tax system is broken since before he was a candidate. It’s a prime example of Illinois’s regressive tax structure. The wealthy can catch breaks, which places a bigger tax burden on low-income and middle-class citizens. He knows this system doesn’t work for the vast majority of citizens and he’s the candidate who’s going to change it.
According to the Education Trust, Illinois school districts with the highest percentage of poor students received nearly 20 percent less funding than their more affluent peers. Meanwhile, poor and middle-class workers are paying more than their fair share. In fact, a WalletHub study reported that Illinois’s tax system receives more money from low-income and middle-class households than almost any other state in the country. We take more money from low-income and middle-class pockets and spend less on educating students from those same homes.
[ *** End Of Update *** ]
* And since Kennedy is complaining about property tax assessment appeals (including in a fundraising e-mail this morning), taking a look at his own appeals is fair game. But this one appears to be legit. Here’s Greg Hinz…
At issue is what the tax value should be on the 48-story apartment tower built on Wolf Point, the first of three large structures that are planned.
The tower opened for business early in 2016, and its value for tax purposes was initially set at $13.736 million by Cook County Assessor Joe Berrios—enough to pull in almost $3 million a year for local taxing bodies, primarily Chicago Public Schools. Kennedy and associates appealed, using the law firm of former Cook County Assessor Tom Tully, and the final value ended up being set at $5.109 million, a cut of almost 63 percent.
In an interview, Berrios’ top aide, Deputy Assessor for Valuation & Appeals Tom Jaconetty, not only defends the cut but suggests, in so many words, that the Kennedy group would have been fools not to seek it.
When a new building like this comes online, the assessor assumes that it is 100 percent occupied and producing a full revenue stream, Berrios said. In fact, that’s rarely the case, Jaconetty said, but it’s up to the owners to appeal. […]
In the case of the Wolf Point building, it had only 6 percent of its units rented and producing income in January when it opened, according to data collected by Appraisal Research Counselors, a Chicago consulting company. The figure jumped to 62.1 percent by July and kept climbing later in the year.
For tax year 2016, the county ended up settling on an average 33.8 percent occupancy figure. That change, combined with one internal math error, explains the 62 percent cut, Jaconetty said.
* I’ve hesitated to use this poll for two reasons. First, it’s from an advertiser. Second, it’s an online poll. So, I’ll leave it up to you if it’s worthy of discussion…
1. Generally speaking, do you feel that things in Illinois are headed in the right direction?
• Yes 17%
• No 69%
• Unsure 14%
2. Of the following issues, which do you think are the most important to the state of Illinois?
• Budget 69%
• Health Care 21%
• Recreational Marijuana 5%
• Internet Privacy 3%
• Other 3%
May 12-15, 2017. Total sample of 613 likely Illinois voters, aged 18 years old and older. Margin of error is +/- 4% 5-minute online survey hosted on Morar Consulting’s proprietary online research platform.
Tuesday, May 23, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
A new statewide poll shows that 76% of Illinois voters oppose increased data collection on consumers and business. SB1502 and HB 3449 would require Illinois businesses to create massive troves of personal data for any transaction or interaction online. This would expose Illinois consumers to heightened risk of identity theft, and come at massive cost to small businesses.
The survey of 613 likely voters show that of those who had an opinion:
• 90% do not support a new law that would require websites to link their name with their browsing history, and retain that history for a longer period of time.
• 77% do not support a law that would prevent them from using anonymous accounts for email and apps.
• 77% would not support an increase of data privacy regulations if these new polices were created by a special interest group that would profit directly from lawsuits.
“The ‘Right to Know’ bill sounds good in theory – but once Illinois voters know what’s actually in it, they are clearly against the provisions,” said Todd Maisch, President and CEO, Illinois Chamber of Commerce. “Forcing businesses into collecting more data for longer about their customers and exposing residents’ private browsing is a step backward for our state.”
The Choice is Clear – Vote NO on SB1502 and HB3449.
As the Illinois legislature struggles to craft a budget by its May 31 adjournment deadline, the Schuyler County Mental Health Center is adding itself to the list of behavioral health centers across the state that is in danger of closing within the next 10 days.
“We have been waiting for multiple payments from the State of Illinois for multiple months and have been unable to consistently meet payroll,” said Executive Director Trent Chockley. “And we’re not only waiting for payment for mental health and substance abuse treatment services, but we also have unpaid bills from the Illinois Department on Aging.”
The agency provides services to nearly 60 people, over the age of 60, every month and the state owes Schuyler a total of $64,000 for just the services provided under the Illinois Department on Aging’s Community Care Program.
“The State of Illinois continues to add deserving clients to their list that we need to serve, but has no willingness to pay the bills,” said Chockley. “We are dangerously close to shutting our doors for good without payment by June 1.”
A top behavioral health advocate group warned lawmakers and Governor Bruce Rauner that the collapse of the Schuyler County Center will be their responsibility if they fail to agree to a fiscal year 2018 budget by the end of May.
“Governor Rauner and lawmakers will bear the responsibility of Schuyler shutting down if they fail to agree, once again, to a budget by May 31,” said Illinois Association for Behavioral Health C.E.O. Sara Howe. “Their failure to enact a budget after more than two years mocks their repeated talking points about the purported priority of behavioral health in Illinois.”
* All 67 House Democrats signed this letter last week…
Dear Governor Rauner:
We believe there is no more important issue facing our state than the passage of a full, responsible budget. As you have continually held items unrelated to the budget as preconditions to your cooperation in resolving this impasse, members of the House Democratic leadership team have requested to work with you to find common ground on your agenda. We ask that you begin work with them immediately.
The people of Illinois need a resolution to this budget crisis. On behalf of the people we are together committed to serve, we urge you to accept this good faith offer of cooperation, so we can again resume working to end this destructive impasse.
* As I write this, the two Senate approp committees are debating the spending and cutting aspects of this legislation…
Senate Democrats on Tuesday plan to push ahead with a new budget proposal that includes an income tax hike and an expansion of the state sales tax, saying they are no longer willing to wait for a broader deal with Republicans. […]
“We recognize the future of this state is at stake, and we are increasingly willing to govern notwithstanding the political costs of doing so,” said Sen. Don Harmon, D-Oak Park. “I think we have reached the point where citizens of Illinois are more willing to tolerate a revenue increase than they are continued inaction in the face of a crisis.” […]
Democrats spent the weekend tweaking the spending plan, and unveiled an updated proposal late Monday. It calls for spending $37.3 billion after raising about $5 billion through the tax hikes; a floor vote is expected Tuesday, said Sen. Heather Steans, a Chicago Democrat and key budget negotiator. […]
The blueprint relies on the passage of companion legislation that would raise the personal income tax rate from 3.75 percent to 4.95 percent, which is just below the 5 percent rate in place before Rauner took office. The corporate income tax rate would be hiked from 5.25 percent to 7 percent.
Meanwhile, the state’s share of the 6.25 percent sales tax would be extended to various services not currently covered, such as dry cleaning. The proposal also calls for ending three corporate tax breaks, including requiring companies that drill on the outer continental shelf and do business in Illinois to pay income taxes.
S&P Global Ratings downgraded the district’s rating from A- to BBB+ “due to a fiscal imbalance that has resulted in a substantial drop in available cash reserves,” according to an analysis presented at Monday’s Finance Committee meeting.
“What has occurred is not necessarily the fault of the district,” said Bob Lewis, senior vice president and managing director of PMA Securities, Inc., which is working with the district on the bond sale.
Last year’s deficit was primarily caused by an unexpected drop in the personal property replacement tax, and “this year’s deficit is going to be primarily caused by delayed categorical payments. None of that is your fault, and ratings analysts recognize that, but they still have to evaluate your credit for investors,” Lewis said.
The district also faces “the Illinois premium” because of the state’s continued financial issues.
“It means your borrowing costs are higher because of what the state does. If the state continues to get downgraded, the Illinois premium will continue to widen,” Lewis said. “We anticipate an additional .1 to .15 percent to the borrowing rate because of that.”
Wait. I thought the state had increased funding for K-12.
Oh, yeah. There’s not enough money to keep those promises. Silly me.
