Reader comments closed for the weekend
Friday, May 12, 2017 - Posted by Rich Miller
* My aunt passed away last week. Janet Bollheimer was my mom’s older sister. Her wake is tonight, so that’s why I’m shutting the blog down a little earlier than usual.
Phyllis Hostmeyer posted this on Aunt Janet’s tribute page. Everyone called her Jan, but I always called her Janet for some reason…
I owe so so much to Jan. I had to drop out of college when I was 19 and dreamed of returning one day. I didn’t see any way possible for that to happen. I met Jan at a KC extension class at Central and within minutes she had me pegged. Soon she had everything lined up for me to return to college. She registered me full time at KC, introduced me to the financial aid people, lined up day care for my daughters, and I was on my way to an Associate’s Degree. But Jan did’t stop there. She then introduced me to Dr. Woods at McKendree who found me a full scholarship to finish my Bachelor’s Degree. I became a teacher and sometimes I still work as an adjunct for KC. I am a published author and have had opportunities to travel around the world providing professional development for teachers. None of this would have happened had it not been for Jan’s support, guidance, and positive attitude. She believed in me and encouraged me when no one else did. I can think of few people in this world that I admire more than I admired Jan. She has been a huge blessing to our community. My prayers are with the many loved ones she leaves behind.
She was always so active, so energetic, so positive, so fun. Even when she was sick, she powered through. Everyone looked up to her, but she never looked down on anybody. If you click here you’ll see a House resolution passed when she finally retired after 43 years as an educator and an advocate.
I don’t really feel like posting a song today.
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Dem candidates urged to play nice
Friday, May 12, 2017 - Posted by Rich Miller
* Rick Pearson…
With early friction emerging in the 2018 Democratic race for governor, the Illinois Democratic County Chairmen’s Association is urging the candidates to turn their wrath toward Republican Gov. Bruce Rauner instead of on one another.
The phone call this week raising concerns about the contest’s tone among the campaigns and the group’s leader came as billionaire entrepreneur and investor J.B. Pritzker has launched TV ads and begun amassing endorsements, prompting rivals for the nomination to criticize him. […]
Pritzker campaign manager Anne Caprara said it was “important for all Democratic candidates to focus their time and energy on getting (Rauner) out of office” and ensure he is not re-elected. Biss’ campaign said the election isn’t just about the governor’s office, but also is “a battle for the soul of the Democratic Party.” Kennedy’s campaign suggested their candidate is the only one ready to “bring radical change to Springfield,” while Pawar’s camp said its effort was focused on the alderman’s “vision” for Illinois.
* Pearson also took a look at an earlier report that the AFL-CIO could endorse Pritzker. He traced it back to the trade unions which endorsed Pritzker earlier this month…
Now those trade unions are pushing for the Illinois AFL-CIO, the umbrella organization of organized labor in the state, to make an early endorsement of Pritzker, union sources said.
The sources, who were not authorized to discuss union business publicly, said that while the trade unions want to move quickly, public sector and service unions want to move more slowly and deliberately. But trade unions carry more clout. A meeting has been set for next month to discuss the way forward.
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Caption contest!
Friday, May 12, 2017 - Posted by Rich Miller
* Gov. Rauner with his arm around our buddy Dave Dahl…
The pic was taken last fall. Dave just found it.
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Durkin warns members about… me
Friday, May 12, 2017 - Posted by Rich Miller
* From a memo sent this afternoon to House Republicans…
Dear Members,
It is with great displeasure that I read today’s Capitol Fax with an article which, by all measures, memorializes yesterday’s “confidential” caucus discussions with the governor’s staff.
This has been an ongoing concern for many years and it is a violation that undermines the sanctity of our caucus meetings, particularly those with high-level members of the administration.
My question to the individual or individuals responsible for this is simple, why would you subvert the caucus, particularly at this time in session?
With few precious weeks before the end of session, we will need to meet more regularly and, most likely, with key members of the administration. How can we expect them to be candid with us ever again? Should I expect this message to show up on the “Blog” this afternoon?
Jim Durkin
House Republican Leader
People occasionally ask why they should subscribe to Capitol Fax. That memo is a pretty good reason.
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It’s just a bill
Friday, May 12, 2017 - Posted by Rich Miller
* Bruce Rushton at the Illinois Times…
The state House of Representatives last week passed a bill designed to expedite the transfer of mentally ill inmates from county jails to state mental health facilities.
But a bill that would restrict the use of isolation cells in local jails appears dead. The measure remained in committee as an April 28 deadline passed for the House to take action on bills sponsored by House members. Under the proposal, inmates could not be placed in isolation for more than 10 consecutive days or for more than 10 days over a 180-day period.
The bill restricting the use of isolation cells also would have affected state prisons. But county sheriffs lobbied hard against the measure, arguing that there is little else they can do with mentally ill inmates, including many who are supposed to be in mental health facilities but instead languish in jail.
“If all things were perfect, it might be a good bill,” said Greg Sullivan, executive director of the Illinois Sheriffs Association. “When you have inmates with mental health problems who you cannot put in general population for their safety and other inmates’ safety, what do you do with them? You have to do something. … Quite frankly, the sheriffs contacted their state representatives and said, ‘This is a bad bill, and here’s why.’”
Randolph County Sheriff Shannon Wolff, who runs a 44-bed jail that sometimes has just one officer overseeing inmates, said that isolation cells and restraint chairs are an unfortunate necessity of running a small jail in a rural area.
* Marlen Garcia at the Sun-Times…
Here’s a run-down on bills related to immigrants that could reach the governor’s desk and one that won’t thanks to Rauner. Rep. Elizabeth “Lisa” Hernandez of Cicero, who represents Latino and immigrant communities, is chief sponsor or co-sponsor of each bill […]
♦ School code amendment: Rauner killed this one early, while it was in committee. It would have eliminated confusion between a federal mandate on bilingual education and an Illinois law requiring all school instruction be given in English, she said. Hernandez says she sponsored the bill only because the Illinois State Board of Education asked her to. ISBE is run by Rauner’s people, so she assumed the governor and Republicans would back it. But the bill got no votes from Republicans while it was in committee. Hernandez said she wouldn’t proceed without Republican support. “If I do,” she said, “it’s going to die.”
An ISBE spokeswoman says that small section of the law is obsolete. It should come off the books. But the governor’s office questioned “why this bill was not included in the usual clean-up package from the State Board of Education,” his spokeswoman, Eleni Demertzis, said by email.
The bill’s synopsis says it repeals a section “requiring instruction in all public elementary and secondary schools to be in the English language.” I have to wonder if that’s too loaded for the Illinois GOP.
* Doug Finke SJ-R…
Another attempt is being made to move the date of school board elections in hopes it improves voter turnout.
The Senate Executive Committee Thursday unanimously endorsed a bill to move school board elections from the spring to general elections held in the fall.
Sponsoring Sen. Tom Cullerton, D-Villa Park, said the turnout in DuPage County for the April election was about 15 percent.
“When we talk about property taxes, the number one thing on your property tax bill is your schools, and we are having no voter participation,” he said.
Cullerton also said moving the school board elections could get more people involved in running for the seats. He said there is a problem in some areas finding enough candidates. One reason for that is that filing for school board occurs right after a major general election, he said.
The Senate passed that bill before, but it didn’t go anywhere in the House.
* Bob Reed at the Tribune…
A lively tussle is shaping up between a top Illinois official and the state’s mighty insurance industry, and the Illinois General Assembly will pick the winner.
At the center of the dispute is legislation, supported by Illinois Treasurer Michael Frerichs, that compels life insurance companies to review their records going back to 1996 and confirm that death benefits have been paid to policyholders’ beneficiaries.
Paying death benefits? Isn’t that what life insurance companies are supposed to do?
If the answer were always a resounding “yes,” there wouldn’t be any need for Frerichs’ bill.
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Question of the day
Friday, May 12, 2017 - Posted by Rich Miller
* SJ-R editorial…
Thumbs Down: To the Illinois House lawmakers who cheered Wednesday upon learning the planned session scheduled for Friday would be canceled.
“I have an announcement. Perk up, perk up your ears, listen close. Friday’s session has been canceled,” House Majority Leader Barbara Flynn Currie, D-Chicago, announced Wednesday. She was met with immediate cheers and applause from some of the people in the chamber.
The state has been operating without a permanent budget for more than 22 months. Universities are laying off employees and students are seeking to complete their higher education studies in other states. Social service agencies are turning clients away, if not outright shutting their doors, because of late payments of state funding. The state’s bond ratings creep ever-closer to junk status, which will mean higher interest payments for the borrowing we know is coming.
And that’s just a few items on the long list of problems facing Illinois.
House members are paid to do what it best for Illinoisans — and they don’t have to wait in line to get paid, like the people they aren’t helping. They should be working every day they’re scheduled to — we’d argue the weekends too — until a budget is approved. Cheering because they don’t have to come in and work toward productive solutions that would benefit the people of Illinois is disgraceful.
* The Question: Your thoughts on this?
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Fun with numbers
Friday, May 12, 2017 - Posted by Rich Miller
* OK…
[They deleted it, but I saved a copy just in case.]
Might wanna make sure the education meme-maker uses spell-check from now on. Just sayin…
* But…
Appropriate all you want, but if there’s no money in the checkbook because we don’t have a real budget the bills can’t be paid.
* Meanwhile, here’s Finke…
And back to the Thompson Center for a moment. It sure seems like the numbers for that thing are all over the map.
In 2015, the Rauner administration said the building needed about $100 million worth of deferred maintenance. At last week’s news conference, that number was at $326 million. Seems that place is really going somewhere in a handbasket.
Also, in his budget plan, Rauner estimated the state would net about $220 million from the sale. Last week, that was up to $240 million, a nice increase for a couple of months.
Maybe if the state holds onto it until the end of the year, there’d be no reason for a tax hike.
Nice catch by Doug.
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* WCIA TV…
While Congress is determining the fate of the Affordable Care Act, Governor Bruce Rauner’s administration is quietly preparing a massive overhaul to the state’s Medicaid system.
Up to 3.2 million Medicaid patients in Illinois, including 1.4 million children, could be affected under a new plan set to take place on January 1, 2018. Industry experts expect many of the state’s poorest patients would have to change doctors, while others could be forced to change prescriptions.
Rob Karr of the Illinois Retail Merchants Association says, “I think [Medicaid patients] will see some changes perhaps in who they can go to. Perhaps there will be changes on the margins in terms of what drugs they can use.”
Some in Springfield are preaching caution… Comptroller Susana Mendoza, a Democrat, pointed to the fluidity on Capitol Hill as a prime reason to press pause on this plan. “I think it is important to wait just so that we have a little bit better as to what those estimates for the Medicaid population are going to be,” she told WCIA.
Mendoza testified Wednesday before the House Human Service Committee, urging lawmakers to intervene and block the Rauner administration from making structural changes to consolidate Managed Care Organizations.
* They’re running out of time, however. Crain’s…
With bids due Monday for private insurers who want a piece of a key Illinois Medicaid program, one of the biggest health plans is in talks with potential buyers.
For Chicago-based Family Health Network, known as FHN, the effort to sell off its assets or enrollees to another health plan is a last-ditch effort to keep from suddenly shuttering. After all, there will be losers: Gov. Bruce Rauner’s administration is revamping its Medicaid managed care program. Twelve insurers, including FHN, have to rebid to participate, but in an effort to squeeze out more savings, the state plans to award just up to seven contracts.
The reboot has whipped the health care industry into a frenzy. In April, the FHN board chairman said he feared the state was locking the insurer out of a new contract. Like vendors across the state, the insurer is owed money by the State of Illinois: Among a backlog of state bills that tops $12 billion, FHN’s overdue tab comes to about $260 million.
As for FHN’s discussion with potential buyers about selling off parts, if not all, of its business, “Essentially at some point that’s what they’re being forced to do,” Illinois Sen. Omar Aquino says. Aquino’s legislative district includes two of the five hospitals or health systems that co-own the insurer. “They would rather prefer to stay in business.”
Aquino is among five Democratic sponsors of a resolution that seeks to suspend the bidding process and highlights the plight of FHN in particular. A spokeswoman for the health plan declined to comment.
* From the JB Pritzker campaign…
In response to Bruce Rauner’s attack on Medicaid, which could strip over 3 million Illinoisans, including over 1 million children, of their right to keep their doctors and prescriptions, JB Pritzker released the following statement:
“While Donald Trump and Republicans in Congress work to gut the Affordable Care Act, Bruce Rauner is working to upend Medicaid coverage for millions of low-income Illinoisans,” said JB Pritzker. “Over 3 million Illinoisans, including over one million children, could be forced to change doctors and even prescriptions if Rauner is able to shove through this overhaul. Illinois families have a right to quality and affordable health care and we need a Governor who will stand up to Donald Trump to protect that right. Instead, Bruce Rauner’s failed leadership has left us without a plan to combat Trumpcare and without a balanced budget as Illinois families continue to pay the price.”
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* Unlike most rich Cook County residents, JB Pritzker never appealed his local property tax bills on his house - until 2015. And then he got a huge discount…
J.B. Pritzker, billionaire would-be governor, bought the historic mansion next door to his even bigger home on Chicago’s Gold Coast, let it fall into disrepair — and then argued it was “uninhabitable” to win what so far have been nearly $230,000 in property-tax breaks, records show. […]
Arguing that the smaller mansion is “vacant and uninhabitable,” those lawyers convinced Berrios to slash its assessed value last year from $6.25 million to just under $1.1 million.
That’s allowed Pritzker to get the nearly $230,000 in property-tax breaks and refunds, a Chicago Sun-Times analysis found.
The drastically reduced assessment caused the mansion’s property taxes to plunge 83 percent, leaving Pritzker with a bill for $19,719 last year, the analysis found. That was instead of the $117,087 he otherwise would have had to pay in property taxes, which fund the Chicago Public Schools, the city and other local governments.
The assessor’s ruling also meant that Pritzker was due partial refunds on the taxes that he paid between 2012 and 2014. He got three refund checks last year totaling $132,747 — money that reduced the amount of property taxes that schools and other local governments expected to receive.
Separately, Berrios cut the assessment on the bigger mansion where the Pritzker family lives — from $14.1 million to about $12.1 million, resulting in a 16 percent lower property-tax bill last year — $221,287 rather than $264,221.
I always have a simple answer for people who ask questions like: Why would a guy with $3.4 billion care about saving a few hundred grand on his property taxes? My reply: It’s Amorica, man. Nothing’s ever enough here.
It looks like he bought the house next door to establish a buffer. He remodeled the outside so it looked nice, but apparently let the inside go to pot. (The appraiser was let inside that house, but not into Pritzker’s actual residence, which also got a reduction, over security concerns.) Then apparently he got tired of paying taxes on a house that wasn’t worth nearly as much as its appraised value.
* The full statement the Pritzker campaign gave the Sun-Times…
In 2015, JB was one of over 50,000 residents of Cook County to appeal his tax assessment and like 64% of appeals, the ruling was in JB’s favor. It’s unfortunate that in the context of a political campaign, there is now an attempt to use that routine appeal as part of a negative attack.
* More oppo from the campaign…
It’s worth noting that unlike his neighbors and many residents of Cook county (including Bruce Rauner), JB’s 2015 appeal is the only time he has appealed his taxes since he bought the property in 2006.
· Chris Kennedy has also appealed his property tax assessment for his Kenilworth home to the Board of Review and the Board ruled in his favor. (158 Melrose Avenue)
· In 2012, 2014, and 2015, Rauner appealed his assessment for his Randolph Street Penthouse. (340 E. Randolph Street, 61-PHE)
· In 2012, 2014, and 2015, Rauner appealed his assessment for his Randolph Street condo. (340 E. Randolph Street, #4103)
· In 2012, 2013, 2014, and 2015, Rauner also appealed his assessment for three parking spots (Space P1-28, Space P2-30, Space P2-36)
OK, but there are important distinctions. Kennedy only lowered his assessment by $10K. And Rauner’s people point out that his condo association appealed those assessments, not him. And those appeals were denied.
* The other difference is that one of Pritzker’s campaign themes is making rich people pay more taxes, as opposed to Rauner’s goal of lowering their taxes…
“We’ve got to start by taxing the millionaires and billionaires first. We’re not going to middle-class families until we get people to pay their fair share,” Pritzker told reporters after his announcement.
Then again, the property taxes he was paying were “unfair,” according to the assessor’s office.
* From the ILGOP…
“It’s clear that when it comes to gaming the system for tax breaks for billionaires, J.B. Pritzker thinks big. Real big. Pritzker’s insider scheme to dodge taxes is shocking.” - Illinois Republican Party Spokesman Steven Yaffe
* You can bet that “insider scheme” phrase will continue to be used. As some Rauner types have reminded me this morning, they beat the living heck out of state House candidate Merry Marwig last year for filing a couple of property tax appeals, and she didn’t get nearly the reduction that Pritzker received…
Every second mailer emphasized two somewhat nebulous “Madigan connections.” One was that Marwig moved into the 41st Ward from Wicker Park in 2013 and got her property taxes lowered twice; Madigan’s law office handles such tax reductions.
And if, as expected, Berrios’ Cook County Democratic Party endorses Pritzker, you’ll definitely see the Republicans use that Pritzker-Berrios-Madigan connection over and over and over again.
…Adding… As pointed out in comments, Berrios’ spokesman told the Sun-Times that his boss didn’t know Pritzker got the assessment reductions. But, that likely won’t matter to the ILGOP.
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* Gov. Bruce Rauner should’ve maybe run for the United States Senate because he’s such an expert filibusterer. Check out how he ran out the clock at the end of his WBEZ interview today…
Q: Before I let you go, I have to ask you, do you think you bear any responsibility for the impasse?
A: We all need to work together, Republicans, Democrats, everybody to get a truly balanced budget. It is very difficult because the General Assembly has never passed balanced budgets for decades. Their solution is always just don’t pay pensions.
Q: [Interrupting] But do you think you bear any responsibility?
A: [Cross-talking] We all, we all have a job to do and that is to compromise and do what’s right for the people of Illinois for the long-term, so our children and our grandchildren have a better future in Illinois. It is immoral what has happened in our state government for the last 35 years, we, it is wrong for us to leave a hundred and ninety billion dollars in debt [play-out music starts] to our children and grandchildren, we are not gonna let that happen.
Q: Gov. Bruce Rauner, we will see you back here in June. In the meantime, thanks for stopping by.
A: Tony, great to be with you. Thank you.
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Unclear on the concept
Friday, May 12, 2017 - Posted by Rich Miller
* I’m betting the audience wasn’t booing “the system” yesterday…
Republican Gov. Bruce Rauner on Thursday was booed by Chicago State University students and their families during a commencement ceremony at the school, an outburst the governor called “negative feedback” while adding he’d “love to boo our system as well.”
The university has been among those hit hardest by the ongoing state budget fight between Rauner and Democrats. The two-year impasse has left Illinois’ public colleges and universities with diminished, infrequent state funding. About 400 Chicago State employees were laid off last year, which the school said was a consequence of the budget stalemate. […]
“When I was introduced and stood up to speak, there was clapping but there was also some negative feedback,” Rauner said. “And you know what, I share their frustration. This system is broken. I am totally with them. I’d love to boo our system as well. I’m not going to boo it, I’m going to change it. We’re going to make it right.”
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* Reuters…
May 11 Illinois faces costly consequences if it fails to pass a budget by the end of May and is hit with more credit rating downgrades, state lawmakers were warned this week.
John Miller, co-head of fixed income at Nuveen Asset Management, told a House committee on Thursday that reaching a balanced budget deal by May 31 is “absolutely critical” for the nation’s fifth-largest state.
He said the move could stabilize or improve Illinois’ triple-B credit ratings, which are two notches above junk and the lowest among U.S. states. Without a budget agreement, Illinois risks falling into junk, where the pool of investors willing or able to purchase its debt is much smaller, he added.
Miller said contagion from Illinois’ shaky credit standing has spread to other municipal bond issuers in the state, resulting in an extra $930 million in annual debt service paid statewide. […]
Records from S&P, Moody’s, and Fitch Ratings dating back about half a century or more show no states rated junk.
* Related…
* Illinois Issues: Fiscal Fantasy
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* I’ve been hearing he’s wanted this for a while now, but I didn’t know if he could pull it off. Looks like he’s a small step closer…
Current Illinois State Senator and International Director of Each One Feed One, Kyle McCarter has been recommended for appointment as U.S. Ambassador to Kenya.
Republican members of the Illinois Congressional Delegation delivered a letter to President Donald Trump May 11th recommending Sen. McCarter.
“I’m honored and humbled to have the unanimous recommendation of our Republican Congressional Delegation to serve the United States of America in this new role.” McCarter said. “Our country has a long friendship with Kenya that began soon after the country won its independence in late 1963, and my family’s personal friendship goes back over 30 years. If President Trump selects me for this role, I would be honored to serve,” McCarter said.
The letter from the Illinois Republican Members of Congress notes Senator McCarter’s long history of working in Kenya, including founding the Each One Feed One International charity in Tharaka, Kenya.
“Through his work in Kenya, he has experience negotiating with tribal chiefs and other dignitaries, along with logistical and other administrative experience working with the Kenyan government. Additionally, he has experience working with USAID and other organizations, including Compassion International within Kenya to provide health care for over 3,000 Kenyan children.”
Senator McCarter and his wife, Victoria have worked in Kenya for over 30 years. Each One Feed One International’s efforts in Kenya include an elementary school for children K-8 and assistance for hundreds of abandoned, abused and orphaned children. The charity also provides a medical clinic with comprehensive health care and support to those suffering from HIV and malaria. Additionally, the clinic provides baby immunizations and well-baby education, and treats as many as 18,000 patients a year.
The Illinois Congressmen wrote that McCarter would ensure U.S. taxpayer dollars are well-spent in the country, and he will bring accountability to the aid program benefiting Kenyans.
“…his experience on the ground in Kenya has provided him heightened insight into the governmental operations and other political, economic, and social realities of both Kenya and the larger region of East Africa. He has outlined specific ideas for reforms of USAID spending, including curtailing waste, fraud, and abuse within the program,” the letter stated.
The letter from the Illinois Republican Congressional Delegation was presented to the White House on May 11th. The Ambassador post requires a Presidential nomination as well as U.S. Senate confirmation.
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* From a letter sent today to Speaker Madigan from House GOP Leader Jim Durkin…
Dear Speaker Madigan:
I appreciate your recognition of the fact that the impasse is hurting the people of Illinois, and agree that enacting a state budget is the top priority of the Illinois General Assembly. I would add that any approved budget must be balanced and extend a full year, putting Illinois in a much better long term financial position.
As I have said time and time again, the House Republican caucus is willing to work with Democrats, but both sides must respect each other’s priorities. An article in the Chicago Tribune today points out that 44 percent of the jobless people in Illinois have completely quit looking for a job, which is 11 percent higher than the national average of 33 percent. That number is unacceptable. Illinois can and must do better through pension reform, property tax relief and the enactment of reforms to encourage economic development and job creation.
On March 24, I introduced a comprehensive pension reform proposal, HB 4027, and offered 26 votes, which is our pro-rata share of votes, to support a structured roll call on this important issue. On Tuesday, Leader Barbara Flynn Currie introduced identical legislation to HB 4027. I am not concerned over who gets the credit, but ask you to commit to providing the necessary 34 votes from your caucus to get the bill passed and over to the Senate.
Past experience has shown House Democrats use working groups to slow the process and eventually walk away from the negotiating table. However, in a good faith effort I am prepared to appoint Representatives Patti Bellock, Dan Brady, Tom Demmer and Norine Hammond to work with your appointees and the Governor on important issues like pension reform, property tax relief and job growth.
We request in advance the specific proposals the House Democrats would like to discuss.
Sincerely,
Jim Durkin
House Republican Leader
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Et tu, Diana?
Thursday, May 11, 2017 - Posted by Rich Miller
* Check out the retweeter…
* But, to be fair, Mrs. Rauner’s group also retweeted this right after…
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Candidate question 3 - Municipal bankruptcy
Thursday, May 11, 2017 - Posted by Rich Miller
* I asked all the Democratic gubernatorial candidates this question the other day…
Do you think municipal governments in Illinois (including school districts) should be allowed to declare bankruptcy? Why or Why not?
Answers are in order of received.
* Superintendent Bob Daiber…
No
Allowing municipal units of government to declare bankruptcy in Illinois could impair employees from receiving their full pay and benefits that may have been negotiated through a collective bargaining agreement. Furthermore, allowing bankruptcy to be declared would cast a poor image of that region whether it is a community or school district. I do not believe this is the right approach to rebuild Illinois.
* Sen. Daniel Biss…
Municipal governments are not private corporations. While it sometimes makes sense for a private company to enter into bankruptcy, restructure, and replace its decision-makers, government’s ultimate decision-maker is the public, which is irreplaceable. That’s why municipal bankruptcy is very different than corporate bankruptcy, a distinction that Governor Rauner does not understand.
The answer to the question, then, is no. Local governments should not be allowed to walk away from their obligations to their residents. Assets held in the public trust should not be sold off to Wall Street bondholders and corporate special interests. What Illinois should do instead to support struggling local governments is fix our broken revenue system, beginning by amending the constitution to allow for a graduated income tax to make millionaires and billionaires pay their fair share.
* Ald. Ameya Pawar…
Absolutely not. As we proved in Chicago, when everyone comes together and makes the tough choices to reform the way government works, we can reverse decades of fiscal mismanagement and make our municipalities stronger.
Unlike the strong-arm tactics of Bruce Rauner, who is holding municipalities and school districts hostage until they agree to destroy labor protections, I will work to ensure the state is a true partner with local government and reinvest in our public institutions and communities across Illinois.
* JB Pritzker…
No. Bruce Rauner’s failed leadership has destabilized our state and our infrastructure. Providing more opportunities for local government bodies to file bankruptcy can lead to increased instability and diminish borrowing power.
* Chris Kennedy campaign…
No he does not support the option of local municipal bankruptcy because it is expensive, unproven and often doesn’t yield the results intended.
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* From the Southern Illinoisan…
In a special meeting, the Southern Illinois University Board of Trustees on Wednesday authorized a plan to allow the Carbondale campus to borrow from the Edwardsville campus until which time the state of Illinois approves a full annual state appropriation to the SIU System. […]
As to the borrowing authorization, the board’s affirmative vote on the resolution allows Carbondale to borrow up to $35 million in unrestricted funds from the Edwardsville campus. Under the terms of the borrowing arrangement, the Carbondale campus’s leadership is directed to develop a financial sustainability plan of necessary reductions to address the fiscal crisis facing the Carbondale campus, excluding the School of Medicine.
Dunn said the approved resolution attempted to address some of the concerns that have been expressed by constituency group leaders on the Edwardsville campus since Dunn announced the borrowing proposal in a System Connection letter this past month. For instance, it set a cap on the amount that can be borrowed from Edwardsville — $35 million — and reemphasizes a requirement that Carbondale come up with a plan to reduce costs by July. […]
If there is no state budget by the beginning of the 2018 fiscal year on July 1 or other actions taken to “sufficiently sustain Carbondale operations,” the resolution calls for SIU System President Dunn to make a recommendation that the board declare a “short term fiscal emergency” for the Carbondale campus, excluding the School of Medicine. […]
The Carbondale campus has depleted all of its available sources of unrestricted funds as the state’s budget impasse has dragged on for close to two years. As of February, the campus had an unrestricted cash deficit of $23.2 million. The School of Medicine had a positive balance of $59.2 million. Without a state budget, it is projected the Carbondale campus will exceed the available unrestricted funds of the School of Medicine in May 2017. The School of Medicine, primarily based in Springfield, sits under the umbrella of the Carbondale campus.
* Related…
* WIU to demolish long-vacant 20-story Higgins Hall in July: When Higgins was built, Roselieb said, Western Illinois University’s enrollment was much higher. In the late 1980s and early 1990s, Roselieb said, enrollment at all public universities in the state started a downward trend that continues today. As a result, Western doesn’t need the number or residence halls that it once did.
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Our sorry state
Thursday, May 11, 2017 - Posted by Rich Miller
* Illinois Policy Institute…
Go to uhaul.com and check the price for a one-way truck rental moving from Chicago to Dallas on Saturday, July 1st. You’ll find that the current price for a one-way move is $1,650 for a 20 foot truck.
Now put the trip in reverse, making the one-way move from Dallas to Chicago instead of from Chicago to Dallas. The price for the reverse move with the same truck, the same mileage and the same date is $460.
This example shows how supply and demand affect prices, and it reveals a troubling reality for Illinois. After years of crippling outmigration, still more Illinoisans are planning to bolt this summer.
The price for a truck to leave Chicago is high because so many families are planning to get out. The price for a truck to move into Chicago is low because relatively few families are moving in to replace those who leave.
Moving companies like U-Haul need to factor these differences into their pricing model to protect their profitability, and to ensure that they don’t end up with an oversupply of Chicago-based trucks sitting in a Dallas parking lot.
You can check other cities and see similar results. There is high demand for a summer move from Chicago to cities like Denver, Nashville, Charlotte, Orlando and Indianapolis.
And here’s the kicker: U-Haul prices show that Illinois is even losing to recently bankrupt Detroit. The price for a 20-foot truck moving from Chicago to Detroit is $610. But the same truck moving from Detroit to Chicago costs only $185.
It’s like one last moving tax on beleaguered families as they leave Illinois. The demand to get out of Illinois is so high that you have to pay premium rates for a truck to Texas, Florida, Tennessee, Indiana and even Michigan.
Some claim this is a phenomenon happening all across the Midwest, and that the entire region is rapidly depopulating to the south and west.
Not so fast.
Run the same experiment between Indianapolis and Dallas and you will see a very different result.
The one-way move from Indianapolis to Dallas is nearly $1000, while the one-way move from Dallas to Indianapolis is nearly $900. In other words, Dallas wins the pricing battle with Indianapolis, but not by much.
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* Part of this job is showing up, so give him credit for that…
…Adding… From the DGA…
“Today Bruce Rauner came face-to-face with the consequences of his failed leadership,” said DGA Communications Director Jared Leopold. “Illinois families need a fully functioning university system to make sure their children are prepared for tomorrow’s jobs, but Rauner’s budget failures resulted in slashed school budgets and laid off staff. His continued inaction threatens the futures of Illinois families and the state’s economy. Illinois students deserve a budget that funds education. ”
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It’s just a bill
Thursday, May 11, 2017 - Posted by Rich Miller
* The Rauner administration says this legislation will cost $300 million…
The American Federation of State, County and Municipal Employees and others on Wednesday delivered thousands of postcards to Gov. Bruce Rauner in support of legislation that would raise the minimum wage for workers who care for patients with developmental disabilities.
Last year, Rauner vetoed increasing the wage to $15 an hour because he said the state didn’t have the money. Direct support providers now make $8.35, 10 cents higher than Illinois’ minimum wage. […]
By a 36-20 vote Wednesday, the Illinois Senate approved Senate Bill 955, which increases the caregivers’ wage to $15 an hour. The bill, sponsored by Sen. Heather Steans, D-Chicago, now goes to the House. A similar bill sponsored by Rep. Robyn Gabel, D-Evanston, is in a House committee. […]
Dykstra argued that because of low pay, a third of his available jobs are vacant.
“In my entire 50 years of working in this field, I have never experienced such a staffing crisis. Providers cannot hire sufficient numbers of direct support staff primarily because of the low entry level (wage),” Dykstra said. “Direct support staff is the backbone of our organizations. At Trinity Services, we should have 539 direct support staff. Today, we have 172 staff vacancies. We’re starting to discharge individuals because we don’t simply have enough staff.”
* We’ve discussed before how the administration will sit on invoices for months, then submit them to the comptroller and almost immediate complain to the media that the comptroller’s office is holding up payment. This isn’t new. It’s something that governors do when they’re trying to avoid responsibility. So, this is a good idea…
[Comptroller Susana Mendoza] is pushing legislation, which has passed the state House of Representatives, that would require state agencies to provide monthly reports to the comptroller on the amount of bills being held, the liabilities for which there are appropriations and liabilities subject to prompt-payment penalties. […]
Mendoza’s office said the intent of the legislation would be to reveal any potential financial liabilities and to identify late interest penalties that maybe adding up.
“Agencies are sitting on bills that we don’t know exist,” Mendoza told the BND editorial board.
Some are bills that could be sent and agencies sit on them; some bills are for services that haven’t yet had money appropriated for the work by the General Assembly, but agencies still entered into contracts for the service, said Jamey Dunn, the deputy director of communications for the comptroller’s office. […]
Presently, agencies are only required to report pending bills on Oct. 1 of each year for the total amount of bills being held as of the previous June 30.
* Just legalize it and get it over with already…
The Illinois medical marijuana law should be expanded to help curb opioid addiction in the state, advocates told a Senate panel Wednesday.
Illinois patients must have one of about 40 qualifying conditions to purchase medical marijuana from a licensed dispensary, ranging from cancer to post-traumatic stress disorder. The law requires doctors to certify that a patient has one of these conditions without recommending marijuana.
Charles Bush-Joseph, an orthopedic surgeon at Rush University Medical Center, told senators there are thousands of patients who could either come off narcotics or reduce their dosage if granted access to medical marijuana.
A Senate committee didn’t discuss a specific proposal to expand Illinois’ marijuana law, so it’s not set to happen soon. Lawmakers fought for years before approving the state’s program in the first place and have debated expanding it before too.
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* This could be good. NBC 5…
After a war of words over Chicago Public Schools funding, Gov. Bruce Rauner and Mayor Rahm Emanuel will stand together Thursday to announce hundreds of jobs coming to the South Side of the city.
The two are slated to announce the expansion of a Flex-N-Gate facility that’s expected to create at least 300 new manufacturing jobs. […]
Thursday’s announcement is common ground for Emanuel and Rauner after a lengthy, public vocal battle between the two.
“The state of Illinois has to do the most fundamental. Pass a budget, balanced budget, fully fund education. We are seeing the consequences of a governor who has never ever in his entire 22 months as governor once introduced a budget,” Emanuel said.
Emanuel’s office said there would be no media availability after the event. Rauner’s office didn’t say one way or the other, which usually indicates he’ll answer questions.
* Anyway, part of this Rauner administration response from Eleni Demertzis was quoted in the above article. It’s not exactly on-topic, but good enough for our purposes…
CPS’ crisis is not due to the budget impasse, it’s due to decades of fiscal mismanagement. Instead of pointing fingers and blaming decades of fiscal mismanagement on a governor who has been in office for two years, CPS officials and the Mayor should be here in Springfield demanding that the comptroller prioritize our schools and urging lawmakers to pass a balanced budget that includes pension reform that will in return secure the $215 million in funding for CPS.
The mayor should be more involved. I agree.
But I don’t know how they can continue to blame the comptroller for not paying bills with an empty bank account. Well, actually, I do know how they can do this. Anything and everything that distracts from the governor’s own culpability is thrown at the media.
*** UPDATE *** Not exactly friendly…
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* More from Speaker Madigan’s WGN Radio interview…
“The Rauner proposal would say, let’s change history. … Prior to (Franklin D.) Roosevelt’s election, the federal government wasn’t greatly involved in the management of the economy. But when Roosevelt became the president in 1933, the federal government became very active using the Federal Reserve and the Treasury and the Congress in managing the economy,” Madigan said.
“From 1933 until today, both Democratic and Republican presidents and members of the Congress have always worked to raise wages, raise the standard of living,” he said.
“Here in Illinois, the Rauner proposal is: Let’s change that history. Let’s not have the government working to raise wages and the standard of living. Let’s have the government to work and lower wages and the standard of living by bringing down the benefit level in workers’ compensation, taking away the right to bargain collectively if you work for a government and if you work in the construction industry, taking away a prevailing wage. That’s the proposal. And it would be a proposed change in history. I don’t support it,” he said.
I think the governor most certainly came into office wanting to change history. But that ain’t so easy without a compliant General Assembly.
Conversely, you could say that Madigan is blocking the door to any changes, some of which are needed.
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[The following is a paid advertisement.]
Proponents of HB 2774 & SB 1502, the so-called “Right to Know” bills, claim that the legislation will prevent companies from being able to sell your data – but this isn’t the truth. Instead, it will force businesses both large and small to collect and disclose more data about their customers.
The legislation will NOT prohibit companies from selling or sharing information. It would instead require companies, businesses and organizations to create expensive and complex IT systems to capture even more data on users. Personal consumer information is already protected by terms of service agreements and enforced by the Federal Trade Commission and the Illinois Attorney General.
HB 2774 & SB 1502 are not only unnecessary and duplicative, but will also place a costly burden on Illinois small businesses and start-ups, damaging our growing tech economy. That’s why the Illinois Chamber of Commerce, the Chicagoland Chamber of Commerce, the Illinois Hispanic Chamber of Commerce, the Illinois Restaurant Association and numbers of other organizations vehemently oppose these bills.
Let’s work together to keep Illinois businesses and consumers’ data safe and secure. Vote NO on House Bill 2774 & Senate Bill 1502.
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Dems hold abortion bill from Rauner
Thursday, May 11, 2017 - Posted by Rich Miller
* Press release…
Senate gives Rauner more time to ponder choice
SPRINGFIELD – Saying the governor needs time to reconsider his pledge to veto House Bill 40, legislation that protects women’s reproductive rights in Illinois, Senator Don Harmon Wednesday night slowed the bill’s trek to the governor’s desk.
“This measure is too important to immediately put it in the hands of a governor whose public opinions about women’s access to safe, affordable reproductive health care have been inconsistent at best,” said Harmon, an Oak Park Democrat and president pro tempore of the Illinois Senate.
Harmon is the chief co-sponsor of House Bill 40. Senator Heather Steans, a Chicago Democrat, is the lead sponsor. Gov. Bruce Rauner has threatened to veto the measure, even though he pledged to support it when he was a candidate for governor.
“Wednesday night, in consultation with Senator Steans and the advocates, I filed a motion to reconsider the Senate’s vote to pass House Bill 40, which means we will temporarily hold the bill in the Senate,” Harmon said. “This motion merely allows the Senate to protect the bill from Gov. Rauner’s threatened veto until he comes to his senses. It does not jeopardize the bill’s ability to become law.”
Earlier Wednesday, the Senate voted along party lines to approve the measure, which would protect women’s rights in Illinois in the event the U.S. Supreme Court should strike down or alter the 1973 Roe v. Wade decision that legalized abortion in the United States. House Bill 40 also bars insurers from refusing to cover reproductive health care for women on Medicaid and state workers on the state’s health insurance plan.
Steans said she supports Harmon’s move to hold the bill and encourages Rauner to rethink his position.
“I want to give this legislation the best possible chance of becoming law. I know the governor has reservations and is feeling pressure from opponents to veto it,” she said. “But signing this bill into law is the right thing to do, and I urge Gov. Rauner to remain true to himself on this matter. Sen. Harmon’s motion generously gives the governor time to remember all the reasons why he originally supported it.”
Terry Cosgrove, president and CEO of Personal PAC, a reproductive rights advocacy group, said holding the legislation for now is preferable to an immediate veto, as promised by the governor.
“Illinois lawmakers sent a strong message of support for women’s reproductive rights by approving HB40. It would be careless to waste their votes by sending the bill to Gov. Rauner’s desk today only to watch him veto it,” Cosgrove said.
“In the meantime, I urge the men and women of Illinois to contact the governor to let him know why it’s important that he sign this bill into law and remind him that it will help to ensure generations of women have access to reproductive health care free of government interference.”
Holding the bill means they can send it to Rauner when doing so would have maximum impact. Perhaps when the Supreme Court gets an abortion case. Or during a particularly difficult election moment.
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* After months of grand bargain negotiations and yet another fruitless day on the Senate floor, Senate President Cullerton delivered a blistering denunciation of Gov. Rauner yesterday…
Senate President John Cullerton says his Democrats have gone as far as they can go in meeting Governor Bruce Rauner’s non-budget demands.
He says Rauner and his team “don’t know how to govern.”
“At some point in time, you have to just agree: ‘OK, let’s make a deal,’” Cullerton said. “And you have to understand the other side and understand how far they can go. And what’s at stake here is a disaster, after the next 20 days, if we don’t have any revenue.”
* More…
“These guys don’t know how to govern,” Cullerton told reporters after the shortened Senate session. “They haven’t had a lot of practice. At some point, you have to agree and you have to make a deal.”
* Another one…
“This isn’t the private sector where I can just go around and fire people if they don’t vote for something. I’ve got to convince them to vote for it. There’s principles involved in this thing. We have interest groups that are working against us,” said Cullerton, who has been in the legislature since 1979. “I understand this because I’ve done this a lot. But the governor doesn’t apparently.” […]
“If we send a weak package over to Mike Madigan, we know it’s going to come back weaker,” said Sen. Bill Brady, R-Bloomington.
Cullerton, however, said there may not be much more room to cut a deal. “You can only go so far and have votes to pass these bills,” he said. “And we believe we have just about exhausted those efforts to compromise.”
* And Sun-Times political editor Scott Fornek wrote the best headline of the year above Tina Sfondeles’ story: “Cullerton puts self in Rauner’s shoes, then kicks him in pants”…
Minutes after Illinois Senate President John Cullerton said Democrats had “exhausted” efforts to compromise on reforms and accused Gov. Bruce Rauner’s administration of not knowing how to govern, he walked into the governor’s office for a planned meeting.
It was a sign of the delicate and at times acrimonious nature of budget talks with just 21 days before the end of the legislative session.[…]
“We have made numerous changes to these bills than when they were filed, all going towards accommodating Republicans and the governor’s office but you can only go so far and still haves the votes to pass these bills,” Cullerton said. “And we believe that we’ve just about exhausted those efforts to compromise on the reforms.”
* Eleni Demertzis from the governor’s office responded to Cullerton…
The problem with Springfield politicians is they have been cutting bad deals for taxpayers for decades. It’s why people and jobs are fleeing. It’s time to get it right.
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Grand bargain stalls again
Thursday, May 11, 2017 - Posted by Rich Miller
* Finke…
With just about three weeks left in the spring legislative session, Illinois Senate President John Cullerton said Wednesday it was time to try again to pass a “grand bargain” to resolve the state’s two-year budget stalemate.
But the chamber could approve only one minor component before the effort again sputtered to a halt. Senate Republican Leader Christine Radogno refused to call for a vote the workers’ compensation reform and property tax freeze bills she is sponsoring.
Radogno, of Lemont, said the bills weren’t ready. Cullerton, a Chicago Democrat, said they would have passed had Radogno allowed a vote.
As a result, the budget impasse continues.
Wednesday’s vote was the first on the bargain since March 1, when Democrats said Gov. Bruce Rauner pulled Republican votes off the compromise. Many of the bills in the package cover reform measures Rauner wants, along with a spending plan and a tax hike bill.
* Garcia and BeMiller…
The actual voting was anticlimactic but showed the deep divide that still remains. Cullerton began by calling a relatively uncontroversial portion of the package that would allow towns to create special funds to pay off debt. It passed. But when he moved on to more divisive bills to freeze property taxes and change workers’ compensation rules, Senate Republican leader Christine Radogno declined to call the measurers for a vote.
Radogno said conversations on the measures were ongoing, adding that the package is an all-or-nothing deal.
“While I appreciate the fact that you want to move on things, I wish we can do it all at once,” Radogno said. “I don’t want them to fail, I want to come to an agreement.” […]
Cullerton said it’s important to get the measure over to the House so lawmakers there can contemplate their own changes before month’s end. That’s if the House decides to take up the measure at all, given that Democratic Speaker Michael Madigan has not been included in talks and has appointed his own people to work on the budget and negotiate with Rauner on his agenda items.
Republicans counter that a deal in the Senate is near, saying they want to get the proposal in the best shape possible before sending it to the House, where they fear Democrats who control the chamber will water down their ideas.
* Bishop at the Illinois Policy Institute’s news service…
Senators started voting on the measures earlier this year but stopped when Republicans said the package wasn’t ready.
Senate President John Cullerton, D-Chicago, said Wednesday it’s time to move forward.
“Kind of like what happened in my family when I grew up as the oldest of nine kids. We had one bathroom and at some point you’ve got to do your business or you don’t, and it’s time to move on because somebody else needs the room,” Cullerton said. “So we have to move on.”
But Senate Minority Leader Christine Radogno, R-Lemont, said there are still some bills that aren’t ready.
“The property tax issue is still a sticky point,” Radogno said. “I agree with that, but property taxes are extraordinarily important to every single one of our constituents and getting a property tax freeze that works and is meaningful to them is a critical part to that.”
* O’Connor…
Democrats say workers comp changes would impoverish injured workers and that Rauner isn’t considering money-saving reforms they made in 2011. A permanent freeze on property taxes would cripple schools, they say. They’ve offered further reforms on the worker payout and a two-year freeze on real estate taxes.
That’s not good enough, said Radogno, a Lemont Republican, after she declined to allow Cullerton to call for floor votes on her legislation covering the issues.
“We need to keep tax increases as low as possible,” Radogno said. “A property tax freeze will be painful for the locals (municipal governments) buy if we don’t do this, people will continue to leave the state.”
* Sfondeles…
On the Senate floor before the vote, Cullerton noted the “grand bargain” hit an “impasse” on March 1 — when Republican votes, sans Radogno, were pulled off and the finger was pointed directly at Rauner. The state hasn’t had a full budget since July 2015.
“The whole idea of the grand bargain was to adopt those reforms early on in the session and then move it to the House and focus on the budget,” Cullerton said. “I don’t think we can wait any longer. The patience of the public is wearing, and so today I’d like to start calling these bills again.” […]
Radogno later told reporters Republicans are concerned about keeping the tax increase as low as possible. In terms of the workers’ compensation bill, she said discussions have been stuck since March regarding American Medical Association guidelines. Rauner has said he wants to grant arbitrators the ability to use those guidelines as the sole factor to determine how much an injured worker is paid.
She said negotiations are “very close” on talks regarding the school funding formula and refinancing debt. […]
“Now we’ve settled on yet another number [for the property tax freeze]. We’ve been talking about four. What are the conditions attached?” Radogno said. “Again this is something that’s been going on yesterday and today. … I think it’s premature to pull the plug.”
I’ll have more on yesterday’s developments in a bit.
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Adventures in privatization
Thursday, May 11, 2017 - Posted by Rich Miller
* Former Gov. Pat Quinn, among others, was enamored with the idea of privatized state lottery management. And now even the program’s director thinks it may not be a good idea…
Seven years after Illinois heralded privatization as the cure for lagging lottery sales, the state’s latest lottery director now says he’s not sure the model works.
The private firm hired to manage the Illinois Lottery never met its lofty bid projections, and for 2½ years the state has said it’s been working to replace it. But the process has dragged on, even as Tribune investigations have exposed questionable actions of and payments to the firm.
Some lawmakers have questioned the lottery’s oversight of the firm, why it’s taking so long to replace the firm and whether the privatization model is even right for Illinois.
At a state Capitol budget hearing Wednesday, Sen. Heather Steans, D-Chicago, asked the lottery’s acting director, Greg Smith, about the latter. Smith wouldn’t directly say if he thought privatization was wrong in Illinois, citing the pending replacement process. But, in general, he offered a far less glowing assessment of privatization than previous lottery directors and other state officials.
“I know that two other states, New Jersey and Indiana, that all are under private management have experienced significant difficulties, and it may not mean that private management is the best approach for lotteries,” Smith said.
* Related…
* Gauen: Even if Illinois lottery cheated, can anyone prove being harmed?
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* A Tribune bombshell…
A Tribune investigation of two other Cook County child fatalities since November 2015 found incomplete inquiries and nonexistent follow-ups as DCFS closed probes in the homes shortly before youths were beaten or starved to death. Investigators did not interview key witnesses, the Tribune found. They missed obvious signs of abuse and failed to gather medical reports and other evidence.
The Tribune investigation also found that after these three deaths occurred, DCFS pushed to close Cook County cases even faster, offering financial incentives to investigators who completed probes within 14 days. And the Tribune also found that, last year, investigators confirmed fewer cases for neglect or abuse compared with the previous year. […]
The Tribune investigation found that in the fall of 2016, Sheldon pushed investigators to speed up abuse and neglect investigations in Cook County, according to internal agency documents and interviews. Sheldon said his goal is to focus workers on the most serious allegations and free them from spurious cases that can be easily dismissed.
Some DCFS frontline investigators in Cook County tell the Tribune they now face unrealistic deadlines and new pressure to close cases even when young people are left in harm’s way. […]
Several DCFS employees told the Tribune that supervisors offered overtime pay, as opposed to comp time, to child protection investigators who met agency goals for closing cases in 14 days. Those employees and other government officials said they are concerned by what they view as a financial incentive that could skew workers’ handling of investigations. […]
As cases were closed more rapidly last year, DCFS saw a drop in the percentage of investigations in which abuse and neglect allegations were confirmed, according to a Tribune analysis of agency data since 2015. […]
Sheldon also disputed a January 2017 report from DCFS Inspector General Denise Kane that some investigators are handling perilously high caseloads, which Kane wrote is creating “a toxic work environment in which it is foreseeable that some investigators will take dangerous shortcuts that can lead to lethal errors.”
You can’t run government like a business. I wish people would get that through their thick skulls. These aren’t telemarketers who are taking too much time between phone calls. These investigators are there to protect some of the most vulnerable people in our state - abused and neglected children.
And this isn’t really about the budget. DCFS can go to the federal judge overseeing its consent decree at any time and ask for more staff.
Go read the whole thing. But be warned, it’ll turn your stomach.
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Question of the day
Wednesday, May 10, 2017 - Posted by Rich Miller
* The Chicago Tribune published an editorial about the recent trade union endorsements of Pritzker…
An important point: The unions endorsing Pritzker are private-sector trade unions — unlike some public-sector unions, they tend to be reasonable in their contract demands for wages and benefits. Nearly 20 trade unions struck collective bargaining agreements with Rauner after he took office.
Much of Rauner’s criticism of unions has been aimed at Illinois’ public employee unions, whose demands create great burdens on public finances. Taxpayers are on the hook for these union members’ pay, health care packages and pensions.
Trade union members understand the distinction. Most of them don’t have Cadillac benefits or pensions.
We can’t say what sold the union leaders on Pritzker. We don’t know many of his policy positions. It’s early in the race. Five other Democrats so far say they’re running. Maybe the trade union bosses just think Pritzker can win.
Well, Pritzker did win the support of 14 union leadership teams. We’re not sure their rank-and-file members will agree.
One of Gov. Rauner’s top priorities has been ridding the state of its prevailing wage laws, or at least watering them down. The governor even demanded that prevailing wage language be removed from the Exelon bill last year before he’d agree to sign it. Rauner is no less hostile to the trades than he is to the publics.
* However, going back at least to Ronald Reagan’s 1984 reelection over the heavily union-endorsed Walter Mondale, there’s been a disconnect between union members and their union leaders. So, the Trib is right that these endorsements don’t necessarily guarantee that union members will vote for Pritzker. The goal here, though, is to shove Kennedy out of the race.
* The Question: What do you think Democratic gubernatorial candidates should say and do to win over the hearts and minds of rank and file union members?
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HB 40 clears Senate
Wednesday, May 10, 2017 - Posted by Rich Miller
* From Planned Parenthood…
Today, the Illinois Senate passed HB40 (33-22), ensuring access to safe and legal abortion in Illinois. The legislation repeals dangerous “trigger” language which states that Illinois would revert back to law criminalizing abortion if the U.S. Supreme Court decision on Roe v. Wade were overturned. With President Donald Trump’s promise to appoint anti-women’s health justices to the Supreme Court, Illinois cannot risk turning back the clock on reproductive rights.
In addition, HB40 removes discriminatory restrictions on Medicaid and state employee health insurance programs by allowing coverage for all pregnancy-related care, including abortion. This legislation respects that every woman should be able to make her own decisions about pregnancy even if she has insurance through state government.
“Every woman – no matter where she lives, how much money she makes, or how she gets her health care coverage – should have access to affordable and comprehensive health care so she can make personal health decisions based on what is best for her and her family,” said Jennifer Welch, President & CEO of Planned Parenthood of Illinois.
HB40 passed the Illinois House in April, and now will be sent to Governor Bruce Rauner for his consideration.
“Governor Rauner should carefully consider what the best policy is for all Illinois women and sign HB 40 into law,” urged Welch. “When it comes to the most important decisions in life, like whether to become a parent, it is vital that a woman is able to consider all the options available to her. It is not the government’s place to interfere with her decision by withholding access to abortion.”
Discuss.
…Adding… Tribune…
On the other side, Sen. Dale Righter, R-Mattoon, said lawmakers are “scraping and clawing” a budget together. He said saying Illinois can’t afford to spend money it doesn’t have on providing abortions. Righter also contended removing language from Illinois law that says life begins at conception would create other problems, such as trying to prosecute someone who attacks a mother and in kills a unborn child in the process.
State Sen. Jil Tracy, R-Quincy, said it was “ironic” legislators were considering the bill on a day when they were also honoring children who grew up in the state’s foster care system. Many were on hand to shadow lawmakers for the day.
Tracy said she has long opposed abortion, saying she previously had worked as an attorney to place children with families, including those who were the result of incest. She said those children often went on to become productive citizens of society who brought great joy to the families they ended up with, later noting that one of her own daughters is adopted.
“I cannot imagine a world without her,” Tracy said. “So yes, I am a strong advocate for life.”‘
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More J3 sleaze
Wednesday, May 10, 2017 - Posted by Rich Miller
* Reuters…
U.S. prosecutors say that a billionaire real estate developer from Macau accused of paying bribes to a former United Nations General Assembly president also gave gifts to former U.S. Representative Jesse Jackson Jr., according to court papers.
In papers filed this week in Manhattan federal court, prosecutors said the developer, Ng Lap Seng, made gifts to a U.S. representative in return for introductions to U.S. officials and business people.
The prosecutors have not claimed that the gifts were illegal or identified the representative by name. But Ng’s lawyers in a motion on Monday said it was Jackson, an eight-term member of the U.S. House of Representatives for Illinois, and the son of civil rights leader Jesse Jackson Sr.
John Collette, a lawyer for Jackson, declined to comment.
* Sun-Times…
The Chicago Sun-Times reported last month that the former Democratic congressman in 2015 was trying to enter into a cooperation deal with Southern District of New York prosecutors after telling them of “potential violations of law by him and others” in an unspecified case, according to a letter obtained by the newspaper.
The new court filing by Seng’s lawyers details prosecutors’ allegations that Seng paid Jackson both before and after Jackson was in Congress — and channeled money through his wife Sandi Jackson as part of a consulting agreement.
According to the May 1 filing, prosecutors were planning to introduce into evidence that “starting in or about 2009, the defendant [Seng] agreed to and did provide gifts and payments, including cash, a watch, theater tickets, hotel rooms, and meals, to a certain United States representative . . . in return for the representative agreeing to introduce the defendant to other United States officials and businesspeople in the United States.
“After the representative left Congress, the defendant agreed to and did continue to make payments to the representative, including by providing cash and directing payments to the representative’s wife, purportedly as part of a consultancy agreement.”
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Cherry-picking “right to work” numbers
Wednesday, May 10, 2017 - Posted by Rich Miller
* From the Illinois Policy Institute…
Indiana is a Right-to-Work state – it’s also home to union growth five times greater than neighboring Illinois, where forced-unionism is still the law of the land.
One of the most common criticisms of Right-to-Work laws is that they make it harder for workers to form unions and collectively bargain. But if this is true, then why is union membership growing so much more rapidly in Indiana than in Illinois?
The short answer? Jobs growth and population growth.
Right to Work doesn’t hurt unions – it just gives workers a choice.
* From Frank Manzo at the Illinois Economic Policy Institute…
Rich,
In case a recent Illinois Policy article on “right-to-work” and union membership gets (or has been) sent to your inbox, I have outlined why it is a flawed policy analysis in the article below.
Article: Union Membership Declined in “Right-to-Work” States and Increased in Collective-Bargaining States Last Year
It would be nice to not have to respond to articles with such absurd and baseless conclusions in 2017. But unfortunately, it’s become a small part of my job.
Just wanted to let you know that we had a response.
Onward to more productive uses of my time
* From that report…
The movement to implement “right-to-work” (RTW) legislation has accelerated over recent years. Indiana, Michigan, Wisconsin, and West Virginia recently become “right-to-work” states. Missouri and Kentucky followed in 2017. Today, 28 states have “right-to-work” laws.
One of the main policy changes contributing to the decline of unionization across the United States is the ratification of “right-to-work” legislation. From 2015 to 2016, union membership in RTW states declined by over 293,000 members. Union membership declined in 20 of the 26 states (77%) with RTW laws.
Indiana was just one of those six states.
* Back to the report…
Conversely, in fair-share collective bargaining (CB) states, overall union membership improved by about 56,000 members. Union membership declined in only 9 of the 25 CB states (36%)– which includes the District of Columbia– and increased in 16 CB states (64%) over the year.
However, Illinois lost nearly 35,000 members, one of 9 CB states to experience a decline. After netting Illinois out to compare the state to every other state, all other CB states gained approximately 91,000 union members over the year.
The bottom line: “Right to work” does not necessarily increase union membership, economic growth does. And Illinois is in really, really bad economic shape.
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Mark Brown on Botterman
Wednesday, May 10, 2017 - Posted by Rich Miller
* Mark Brown went out to Wheeling to attend the Patrick S. Botterman Leadership Award ceremony. Brown published a column today in tribute to the late campaign guru…
While success in politics is usually measured by winning, Botterman’s signature campaign may be one he lost — managing John Schmidt’s 2002 run against Lisa Madigan for the Democratic nomination for attorney general.
In that contest, House Speaker Mike Madigan moved heaven and earth on his daughter’s behalf, and it took nerve for Botterman to stand his ground in what could have been career suicide.
The standard career path for a young person in Illinois Democratic politics is to work a campaign on behalf of one of Madigan’s candidates for the Illinois House, then parlay that into a job and work their way up through future campaigns.
Many of the political operatives produced in this manner become quite skillful, which is one of the reasons Madigan has survived so long.
The problem from my viewpoint is that all these talented young political workers are then on Madigan’s side of the Democratic Party, which makes it harder for candidates of a more independent bent to succeed.
That’s why there’s something to be said for Wheeling Democrats recognizing good young political talent developed mostly outside the party’s normal channels.
Thoughts?
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Mendoza worker is on city’s “do not hire” list
Wednesday, May 10, 2017 - Posted by Rich Miller
* Sun-Times…
State Comptroller Susana Mendoza on Tuesday told an Illinois Senate committee she was unaware that one of her employees is listed on the city of Chicago’s do-not-hire list. […]
Patrick Haynes is a former 42nd Ward Department of Streets and Sanitation superintendent who resigned in lieu of being discharged on July 30, 2013, according to Haynes’ termination records obtained by the Sun-Times. He’s now employed with the comptroller’s office, listed as “staff administration” and is paid $70,000 a year, according to the comptroller’s website.
Asked about Haynes at one of the Senate’s budgeting committees’ hearings, Mendoza said Haynes “has a great deal of experience working for the City of Chicago, both in the Department of Planning and Development, also as a ward superintendent in the city of Chicago, I believe, for the 42nd Ward which is downtown Chicago.” Mendoza called him “my hire.” […]
State Sen. Chapin Rose, a Rauner ally, asked Mendoza whether she knew Haynes resigned in lieu of discharge.
“He resigned, but I’m not sure what you mean in lieu of discharge. Those are political appointees. I’m not sure you are aware how that works in the City of Chicago,” Mendoza said. “He’s also a former fireman and he is serving as a prevailing wage officer with our department as well. So his credentials are pretty impeccable.” […]
“I think there were some politics involved in that but there’s not a single issue of bad performance that you’ll find with Mr. Haynes,” Mendoza said.
If you click here, you’ll see all the talking points the Republicans used in the hearing. And those talking points didn’t just write themselves.
* From the comptroller’s office…
“Pat Haynes is a highly decorated Chicago Firefighter, serving in the line of duty for 14 years. He also worked for the Department of Planning, generating significant revenue for the City of Chicago. Governor Rauner and his surrogates should be ashamed for attacking a decorated firefighter on this day of all days when we recognize the firefighters who have died in the line of duty. We respect Pat Haynes’ decision to resign as ward superintendent when he found himself caught in a political tussle between an alderman and the mayor’s office.
The Comptroller will not take personnel advice from a governor who clouted 30 patronage hires into his administration from the previous Comptroller’s office and continues to employ: a DCFS director who botched a child neglect investigation in which a little girl died recently on his watch; an agency director who’s spent more than $200,000 of taxpayer money on vanity memberships; and a deputy governor who is getting paid $138,000 a year to hand out saplings at toll way plazas, essentially campaigning on the taxpayers’ dime.”
The fact remains that the guy is on the city’s do not hire list. That’s a problem no matter how he got on it.
* The other problem is that the SGOP questions overshadowed Mendoza’s testimony yesterday…
Presenting her FY 2018 budget proposal Tuesday, Illinois Comptroller Susana Mendoza offered the lowest request for an appropriation level for the Illinois State Comptroller’s Office in 20 years.
“I was troubled when, earlier in the session, we saw agency directors unwilling to identify a single cut to their budgets before your appropriations committee,” Mendoza told members of the State Senate Appropriations II Committee. “I take the idea of shared sacrifice and accountability very seriously. I think it is the responsibility of every agency head, director and manager to identify whatever [General Revenue Fund] savings may exist. We’re prepared to lead that effort with the budget we present today.”
The savings will be accomplished through a combination of headcount management, operational savings, carpooling, stronger travel reimbursement policies and other cost-saving strategies.
* And up later today…
Illinois Comptroller Susana Mendoza will testify before a joint meeting of the House Human Services Committee and the House Human Services Appropriation Committee Wednesday at 2:30 p.m.
The issue is Governor Rauner’s plan to quickly push through a consolidation of the number of Managed Care Organizations handling Illinois Medicaid patients from 12 to 4. Mendoza asks why the largest procurement in the state’s history — $9 billion a year — is being exempted from the state procurement code, meaning it will not be subjected to oversight from an independent procurement officer or the legislature during an unprecedented fiscal crisis for the state. The Governor argues that culling the herd of MCOs will save the state money, but experience in other states suggests giving citizens fewer choices will actually drive up costs. The plan deserves more scrutiny.
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Fun with numbers
Wednesday, May 10, 2017 - Posted by Rich Miller
* Tribune…
Though people often focus on unemployment rates as a measure of economic health, another telling data point is how many people are so discouraged with the job search that they’re dropping out of the labor force altogether.
A newly released survey found good news: Fewer unemployed Americans are giving up looking for work. But that’s not the case in Illinois, where more people seem to be throwing up their hands.
A survey conducted by Harris Poll for Express Employment Professionals, a staffing agency, in March and April found 44 percent of jobless people in Illinois said they had completely given up looking for a job. That’s worse than the 41 percent who said the same last year and the 33 percent who said so in 2015.
Nationally, by contrast, 33 percent of jobless Americans in the recent survey said they’d stopped looking for work, an improvement from 40 percent last year.
“Economic and political factors unique to Illinois may be at play here,” Bob Funk, CEO of the staffing agency, said in a news release. Harris surveyed 1,500 jobless Americans, including 100 in Illinois.
Emphasis added because firm conclusions should never be drawn from a poll of 100 people.
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* Natasha with the scoop…
The Illinois AFL-CIO is preparing to endorse J.B. Pritzker for governor, three sources confirmed to POLITICO. It is a major coup for Pritzker, who formally joined the primary race just four-and-a-half weeks ago and is looking to coalesce Democratic support.
Two of the sources pegged the timing of the endorsement within the next month. It follows an all-out effort by Pritzker and supporters to secure the early labor commitment.
Last week, POLITICO first reported that 14 trade unions were lining up behind Pritzker. An endorsement by the AFL-CIO, which represents nearly 900,000 members and has 1,500 affiliates statewide, could present a considerable blow to opponent Chris Kennedy , who has said he hoped to fund his run through a combination of labor money and his own contributions. The sources said Democrats and labor groups who are eager to oust incumbent GOP Gov. Bruce Rauner from office are hoping to stave off a protracted, bruising Democratic primary.
Everybody thought back in December of 2001 that the Illinois AFL-CIO’s endorsement of Rod Blagojevich was early. If this nod does happen within the next month it would be without any precedent in a gubernatorial race.
* From Illinois AFL-CIO President Mike Carrigan…
“The Illinois AFL-CIO has made no decisions concerning endorsements in the Democratic Primary Election for Governor.
“While defeating Gov. Bruce Rauner – one of the most anti-worker governors in the country – is the top priority for 2018, the Illinois AFL-CIO has a process for vetting candidates that we are working through, including face-to-face meetings with candidates and issue surveys.
“Until there is widespread and significant support for one particular candidate across the diverse labor movement, we will continue to focus our work communicating with union households about Rauner’s attacks on union members and his destruction of the state by refusing to compromise on a budget solution.”
Despite this, it’s pretty obvious to everyone where this is headed.
* Things might get a little awkward for Kennedy tonight…
Chris Kennedy will give the keynote at the Irish-American Labor Council (IALC) annual James Connolly dinner. IALC is a committee of the AFL-CIO, committed to improving and promoting social and community welfare in Chicago. The IALC is comprised of international unions, district councils, local labor unions, and business organizations throughout the Chicagoland area. Chris will be honored at the event along with John Manley.
* And this is one reason why organized labor is pushing Pritzker…
A source tells NBC 5 that Democrat JB Pritzker is spending $1.5 million for two weeks as his introductory TV ad called “Think Big” saturates TV markets across the state. As one Democratic strategist noted, “if he keeps this pace, he will spend $50 million on TV alone.”
That same source said the billionaire businessman has told others that “he’s prepared to spend $70 million on the primary alone.”
Compare that to 2014, when then-GOP candidate Bruce Rauner spent what was a record-breaking $65.3 million on his entire campaign – both the primary and the general elections.
Lots of unconfirmed rumors have Pritzker’s general election budget at $150 million. Whatever the case, it’s clear that Pritzker can fund himself, help out the rest of the ticket, and take the pressure off labor leaders to drain their unions’ bank accounts. Kennedy simply can’t make the same case.
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Madigan pot, meet Rauner kettle
Wednesday, May 10, 2017 - Posted by Rich Miller
* House Speaker Michael Madigan sat down for a 30-minute interview with WGN Radio’s Patti Vasquez yesterday. An excerpt…
“Just about everything [Gov. Bruce Rauner] does is poll-driven. They do multiple polls. They’re polling all of the time. And they predicate government decision-making almost exclusively on the polls.
“So, it’s easy to say ‘Let’s freeze the taxes across the board.’ It’s better to say ‘Let’s give some targeted real estate tax relief to people that really need it, without hurting school districts like Chicago. ”
There’s no doubt that Gov. Rauner relies heavily on polling. His people are in the field a lot. They won’t support reinstating a tax on food and beverages precisely because of that polling data (something like 75 percent of Illinoisans disapprove).
* But this criticism of Rauner comes from a man who has always carefully positioned all of his more politically vulnerable members with poll-friendly legislation. He regularly forces multiple roll calls on bills designed to put Republicans in a bad political light. This is no poll-averse dude, by any means.
Not to mention that Madigan’s House passed a permanent property tax freeze bill last year. And it wasn’t “targeted” at all. Why? Simple. It polls off the charts.
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* Finke has a story today about House Majority Leader Barbara Flynn Currie’s new pension bill…
A major component of the bill is to incorporate a plan put forward by Cullerton, D-Chicago, and also embraced by Republican Gov. Bruce Rauner. It would require those covered by the state-funded pension systems to make a choice: either continue to have future pay increases count toward their pensions and give up the automatic 3 percent compounded raises in their retirement benefits or keep the pension raises, but give up having future pay increases count toward retirement.
The idea is to work around the 2015 state Supreme Court ruling that lawmakers couldn’t unilaterally impose changes on pension benefits after someone signed up for them. The concept is to offer workers something in exchange. […]
Currie’s bill also would create an option for members of the pension systems to take a lump-sum buyout of their pension benefits. Various ideas for this have been floated the last two years but have never come to a vote in the House. Limitations have been part of those plans, such as not allowing people to cash in all of their state benefits and placing limits on the number of people who could participate each year.
In addition, Currie’s legislation requires that a 401(k)-style defined-contribution program be set up for some people in the pension systems, and it provides $215 million to help pay for Chicago teacher pensions. The bill also closes the General Assembly Retirement System to new members after a certain date.
* I asked our resident pension expert “RNUG” to take a look at the bill. He sent back a long and detailed examination. Click here to read it and then comment below.
*** UPDATE *** From House Republican Leader Jim Durkin…
“Apparently, House Democrats have come to the realization that pension reform is desperately needed in this state, bravo! So upon learning that they have filed language identical to the House Republican pension reform plan, House Bill 4027, introduced in March, we simply remind them that we are prepared to offer 26 votes, which is our pro-rata share of votes, to support a structured roll call on this issue. It is now up to the Speaker to determine whether or not he is serious about pension reform by providing the 34 votes necessary for passage or if this is just another typical end of session game,” said Durkin.
I would also refer you to our original press release: http://www.ilhousegop.org/pension_reform
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“Right to Know” is Wrong for Illinois
Wednesday, May 10, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
In a recent interview with WGN Radio, Michael Reever of the Chicagoland Chamber of Commerce voiced the chamber’s opposition to HB 2774 & SB 1502:
“It’s going to actually require companies to maintain more information than is otherwise required and maintain that information in a more identifiable way, so now you as a person are linked with this information. If it gets breached, your information is now identifiable to you…”
“It’s not only about big businesses who have in some ways the financial resources and capabilities to actually fulfill the law, but it’s the small and medium sized businesses that are not going to have the in-house attorney or in-house IT person to do this…”
Listen to the full interview on why the “Right to Know” bills are bad for Illinois.
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The Sun-Times demands a budget
Wednesday, May 10, 2017 - Posted by Rich Miller
* Sun-Times editorial board…
We also understand that Rauner walked into a bad situation, and his only aim has been to do his darnedest to set our state right. Long before Rauner arrived in Springfield, Illinois was struggling with a weak economy, alarmingly underfunded pensions, a backlog of bills and a political dynamic that for too long has put one Chicago pol, House Speaker Mike Madigan, at the center of every major decision.
We’re just saying that passing a budget matters a whole lot more. If that was not obvious to Rauner in 2015, or even a year ago, it should be now.
Whatever pro-business gains Illinois might have made by reforming workers’ comp law, for example, have been overwhelmed by the damage done to our state’s public universities by the lack of a state budget since 2014.
Good point.
Gov. Rauner keeps saying that his reforms will spark an economic boom. It’s hard to see how that will happen considering the limited economic reforms that are on the table right now compared to the tax hikes and the cuts required to balance the budget.
But I will make one point in the governor’s favor. He is prepared to sign one of the largest tax hikes in Illinois history, if not the largest ever increase. He ought to get something for doing that.
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* As I told subscribers early this morning, Senate President Cullerton is pushing for a grand bargain vote today as early as noon. But efforts were underway to either prevent this vote from happening or to push the two sides closer together. So, stay tuned…
Meanwhile, senators worked behind the scenes Tuesday to try to find an agreement on a sweeping budget package that could be called for a vote this week. Efforts have focused on incorporating ideas backed by Republicans after the GOP dropped support for the legislation amid concerns from Rauner’s office that it was asking too much from taxpayers. […]
But one top Senate Democrat noted “significant barriers” remain, saying Rauner is pushing a property tax freeze that is “politically popular” but “bad policy” because it would harm local governments and schools that rely on the money the levies generate.
“We’re just not prepared to make those sorts of trades to do what we should all be doing, which is passing a budget,” said Sen. Don Harmon, D-Oak Park.
While Republican leader Radogno said good-faith negotiations were continuing, they tried to slow a push for a vote this week, saying more time was needed to hammer out an agreement.
* Radogno’s office released these statements late yesterday afternoon…
Senate Republican Leader Christine Radogno:
“Our talks are continuing. There are sincere good faith negotiations underway in the Senate on FY18 budget specifics and reforms critical to Illinois’ economy. Time is of the essence, but the devil is always in the details and the minutiae of complicated proposals. We are working through those now in an effort to advance the legislation as soon as possible.”
Deputy Senate Republican Leader Bill Brady:
“We’ve had serious daily conversations – many times several meetings a day. But our work is not complete. Given time, I think we can get there.”
Assistant Senate Republican Leader Chapin Rose:
“These are not easy discussions. But they are necessary in order to present a balanced budget to the Senate for consideration. We need to keep working. We should not proceed until we have an agreement.”
* But…
“We’ve been hearing ‘one more day, one more thing, one more week’ since January. And at some point we need to do it or not do it,” [Sen. Harmon] said.
I don’t disagree with Harmon. The only question I have is “Is today the ’some point’ when something absolutely has to get done?”
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* Sun-Times…
The Chicago Public Schools actually need $596 million to keep schools open the rest of the school year, and not just the $129 million officials have publicly discussed, a top aide to Mayor Rahm Emanuel said Tuesday.
The larger figure takes into account delays in receiving block grants from the state, according to Carole Brown, Emanuel’s chief financial officer.
* WBEZ…
A spokesman for Illinois Comptroller Susana Mendoza said it is unlikely CPS will get that grant money before June 30. The state is six months behind on payments because of the budget impasse in Springfield.
The governor’s office responded with a statement saying that “CPS’ crisis is not due to the budget impasse, it’s due to decades of fiscal mismanagement. Any outstanding payments from the state lie with Comptroller Mendoza, and can be processed when her office chooses.” CPS, though, said the governor’s office only has approved $300 million of the $467 million in payments due to CPS.
* Mendoza’s spokesperson reacts to the governor’s office statement…
“Like the check bouncer who yells at his bank for bouncing a check from an account he himself emptied, the Governor disingenuously blames the Comptroller for not writing checks from state coffers that Governor Rauner emptied by failing his constitutional duty to propose a balanced budget,” Pallasch said.
Mendoza could probably make that CPS grant payment, but only if she does something like temporarily skip at least part of the next state pension payment (comptrollers have done this from time to time - but that money eventually has to be paid). And Downstate and suburban schools would probably be upset if she does because they’re also not getting their grant money. As we discussed last month, Illinois schools are owed about a billion dollars in grant cash because of the impasse.
* CPS’ predicament…
As of Tuesday, the teachers pension fund said CPS owed it about $716 million. The fund said it expects CPS to pay about $470 million of that tab by June 30, with the rest payable after a quarter-billion dollars in revenue arrives later in the summer from a new property tax devoted to teacher pensions.
Burbridge said the pension fund’s outlook changes if the city falls short on its payments for less predictable reasons, such as a lack of state aid.
* It’s so late in the school year that raising taxes wouldn’t bring much money into the CPS coffers. And any cuts made this late would have to be several times larger than they would’ve been had they been made at the start of the fiscal year because there is so little time left…
Other possibilities include: taking a “bridge” loan from tax-increment financing districts that might never be repaid; another round of borrowing; more cuts of school support staff; delayed payments to CPS vendors; and a request to the Chicago Teachers Pension Fund to delay part of the $721 million payment that’s due June 30.
A 60-day delay on the pension payment would solve some of the cash-flow issues since tax revenue typically rolls in by August.
* If Mendoza won’t delay state pension payments to help out CPS, then CPS might have to delay its own payment. The ratings agencies will certainly be furious, but the district already has junk bond status…
Brown on Tuesday acknowledged officials have discussed withholding the pension payment as they test ideas with bond rating agencies to see which would do the least additional harm to the district and the city’s already low bond ratings.
“It’s an option that we’ve talked about, but it’s not an option that anybody’s concluded is something that’s viable, or an option that anyone’s concluded is the preferred course of action,” she told the Tribune.
*** UPDATE *** Sun-Times…
On Wednesday, Emanuel was asked why he waited so long to reveal the magnitude of the problem from aldermen whose support he needs for a financial rescue that could put the city’s own shaky finances at risk.
“The bills kept climbing and growing and, in every aspect, they said they were gonna get current with it. … The state of Illinois is the largest deadbeat in the state of Illinois,” the mayor said.
“We’ve never shied away from doing what we need to do. And we paid our bills on time. … I will meet the challenge. We will work together and work through this issue. [But] it is adding insult to injury not only to be dead last in funding education, but then to be behind on your payments so dramatically that you’re affecting the ability of us to keep moving forward academically.”
After canceling two closed-door briefings with aldermen, Emanuel shed no new light on the rescue plan. He would only reiterate Brown’s statement that “everything is on the table” and that, even another tax increase or reinstating the head tax he proudly eliminated has not been ruled out.
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