During brief remarks, Rauner criticized the state for failing to meet goals aimed at encouraging the use of minority businesses in state government, as well as high minority unemployment.
“I’m a business guy. I’m not a politician. I don’t like to pay lip service. I don’t frankly like to talk about stuff. I like to do things that get results. Results are all that matters,” he told the audience.
* I was trying to explain some campaign finance loopholes earlier today and when the conversation was over I got up to walk around and found myself humming that old state tourism advertising jingle: “Illinois, you put me in a happy state.”
And now I have an earworm that I can’t shake. So, I decided to make some lemonade…
* The Question: Your suggestions for a new state tourism ad slogan?
* The House started its session today around 2:30, only half an hour late. The Senate returns to town tomorrow. Follow everything in real time right here with ScribbleLive…
A bill in Springfield would expand on the Jan. 1 law by requiring life insurance companies to go through their records and cross-check the names of the insured against all deaths since 1996. The Social Security Administration already maintains what is called the Death Master File, a database of all deaths nationally.
If a death occurred and a benefit was unclaimed dating back to 1996, the insurance company would have to attempt to find the beneficiary. […]
Insurers who object to Martwick’s bill say the legislation is too onerous. It’s too heavy-handed. The American Council of Life Insurers says that while it supports efforts to cross-check records with the federal database going forward, retroactively asking companies to dig back to 1996 is a violation of contract law in the Illinois Constitution. The insurance industry is fighting the legislation in Springfield.
But keep in mind the legislation became necessary only when it was clear some insurance companies were looking the other way and hanging on to benefits. An audit within the treasurer’s office found roughly $550 million in benefits since 2011 had gone unclaimed, perhaps because beneficiaries didn’t know the money was there.
Some insurers have routinely matched the names of their insureds against Social Security’s death list. But this bill is for the ones that haven’t. Lawmakers ought to recognize that.
The insurance companies have been ramping up their lobster contingent against this bill, which is backed by Treasurer Frerichs, and it’s becoming quite the fight.
Amid a national push by unions and worker advocates for a $15 minimum wage, Illinois Democrats hope to pass an ambitious hike during the spring legislative session, despite a warning from Republican Gov. Bruce Rauner that he opposes an increase of any kind.
The proposal would lift the state’s minimum wage from its current $8.25 to $15 over the next five years, a more accelerated leap than previous adjustments in Illinois. It also would constitute a larger jump than increases toward $15 approved last year in New York and California, where the rates had been $9 and $10, respectively.
But, as with previous efforts in Illinois, the measure is likely to be tied up in the state’s electoral politics.
Sponsors of the legislation acknowledge Rauner’s opposition but have signaled they want to force him to act on the measure ahead of next year’s gubernatorial election, in which he already faces half a dozen Democratic challengers.
The known first bill addressing the United Airline passenger debacle was filed in Springfield Monday by State Rep. Peter Breen (R-Lombard).
Breen’s bill focuses on limiting law enforcement’s involvement in removing passengers and restricting the state from doing business with airlines that remove ticketed passengers. It also protects passengers from prosecution and provides for attorney fees.
Breen says the measure would prohibit that type of scenario from ever playing out again at Illinois airports. The self-proclaimed head of the “Frequent Flyer Caucus,” Breen is one of the most seasoned travelers in the General Assembly, logging tens of thousands of airline miles annually.
Not only is next year’s Illinois gubernatorial election already crowded on the Democratic side, it also might be the most expensive governor’s race in American history, some experts are predicting.
According to the Illinois Campaign for Political Reform, Illinois is No. 1 in the nation for most candidates who have officially filed their candidacy and started fundraising. It’s also No. 1 for dollars raised, nearly doubling the next-closest state.
The group says the candidates, who include at least three who are independently wealthy, have raised more than $61 million toward the 2018 race, with Republican Gov. Bruce Rauner leading the pack with $50 million of his own funds donated in December and Democrat J.B. Pritzker, who just entered the race, personally chipping in $7 million.
The next three states are Texas, where one gubernatorial candidate has reported raising more than $34 million; New York, with nearly $24 million raised by one candidate; and California, where three candidates have raised about $17 million.
Sarah Brune, executive director of the Illinois Campaign for Political Reform, said spending for next year’s governor’s race is already more than half the total from 2014, when Rauner was elected.
Though he and Rauner are both extremely wealthy, Pritzker says that’s where the similarities end.
“Bruce Rauner and I couldn’t be more different. We have a completely different set of values,” said Pritzker.
“This state needs a champion that’s going to stand up for our kids, that’s going to stand up for creating job, that’s going to fund education and stand up for health care,” he said.
Heather and Jackie have heard those promises before.
“Bruce Rauner said the same thing and we still have no budget yet,” said Grissom.
He did get quite a bit of good press over the weekend, however…
When asked where the problem lies amongst the governor’s administration and the legislature, Daiber said there is “plenty of blame that can be spread in a lot of places.“
”I think compromise is the issue at stake here. I think it’s something that’s failed to happen for two years. I don’t like to put the whole blame on the governor, but realistically he came in with the Turnaround Agenda, and he’s dug in. Residents of western Illinois are sort of held hostage. I don’t think that’s they way you govern. He would’ve been more successful if he came in, found common ground with Democratic leadership, passed a budget, and then said, ‘Look, I want to rebuild the business climate in Illinois, here are some of my agenda items. What can we work on here?’ That’s not what’s happened here.” […]
“Illinois is a rich state. It has the financial capacity to be prosperous. The agricultural industry base isn’t talked about a lot in Illinois, but it’s the meat and potatoes of the economy. All the businesses and industries in Illinois are solid because of agriculture. I have been involved in agriculture all my life. With being governor, I think it’s just an advantage for that business group.“
* Several candidates attended the March for Science on Saturday…
Representatives for gubernatorial candidate Daniel Biss were also out campaigning. They pointed out that as a former U. of C. math professor, he would be uniquely qualified to solve Illinois’s budget issues. It is true, he probably has more experience with imaginary numbers than most.
Kennedy had to leave before he was supposed to speak and nobody told the hosts. So, there was an awkwardly long pause when the emcee called Kennedy up to give his speech and he wasn’t in the room. Oops. I got some texts and calls last night and this morning wondering what had happened, but I’m told all is well. Kennedy is heading to Caseville today.
At the same time that nursing home workers are negotiating a new contract, they are also working in Springfield with the Alzheimer’s Association to pass new safe staffing legislation. Despite a 2010 law which set minimum staffing requirements at long-term care facilities, more than one-third of nursing home facilities across Illinois continue to staff at dangerously low levels, leading to the improper discharge of seniors and people with disabilities into hospitals and psychiatric units. As Illinois faces one of the worst rates of long-term care resident abandonment in the nation, the state legislature is currently considering two bills —SB 1624 and HB 3392— that would make it harder for nursing homes to violate existing legal staffing requirements and chalk up small penalties to the cost of doing business.
There could be fireworks this week if the House takes up a bill that would provide public money for abortions and to protect abortion rights in the event Roe v. Wade is reversed by the U.S. Supreme Court.
Already a controversial bill, the measure’s profile was heightened last week when Rauner said he would veto it. Rauner said his reason is the sharp division that exists over whether public money should be used to pay for abortions.
Abortion-rights proponents accused Rauner of reneging on a position he took during the 2014 campaign in which he expressed support for abortion rights, including Medicaid funding of abortions, in a candidate questionnaire.
The bill’s sponsor, Rep. Sara Feigenholtz, D-Chicago, had said she would call the bill for a vote Tuesday when a large women’s rally is planned in Springfield. That was before Rauner’s veto threat was made, though.
Even some proponents of the bill say they do not believe there are enough votes in the House to override a veto, even if the bill passes that chamber and the Senate. Some Republican lawmakers also said they believe the real reason for the bill is to put Rauner on the spot.
Abortion-rights advocates — and some Democratic candidates for governor — are calling Rauner a flip-flopper. But many conservative supporters say they’re still with him. While Rauner’s stance on the bill is unlikely to affect his primary — in which, for now, he has no challenger — it may strip off some votes in the general election, specifically votes from college-educated younger women and suburban female voters, according to Brian Gaines, a political science professor at the University of Illinois at Urbana-Champaign.
“Abortion is one where inconsistency hurts more. So Rauner’s challenge is to say something like there’s something specific about the bill that is a problem. That even for a pro-choicer like me, there’s some reason why. Something that would sort of persuade suburban female voters that are the ones I presume he would lose that probably make the margin for a Republican governor to win or lose in a state like this,” Gaines said. “You’re starting off with a normal vote disadvantage and you have to poach away people who sometimes vote for the other people.”
According to CNN exit polls from the 2014 election — which offers just a snapshot of a small percentage of voters after leaving a polling place — Rauner had the support of about 44 percent of women voters. Among voters who called themselves moderates, about 52 percent backed Rauner. He was even able to secure the votes of about 11 percent of Democratic women who were polled.
Other polls conducted before the election showed Rauner had strong support from suburban women who were social moderates but fiscal conservatives.
Gaines said it’s hard to predict what campaign commercials might be used against Rauner but he said “flip-floppers” are sometimes highlighted in campaign ads. He called abortion and guns key issues to one-issue voters.
Maybe. I think there are “better” avenues to go down than flip-flopping. Truthfulness, trustworthiness, and, of course, the “tacking to the far right” angle that’s being used by the Democrats and this letter to the editor writer…
Gov. Bruce Rauner’s threat to veto an abortion rights bill is the epitome of hypocrisy. Candidate Rauner was decidedly pro-choice and supportive of Planned Parenthood. The Rauners still attend fundraisers for this organization that, at times, performs abortions and offers other health care services for women. Does he not see that this latest veto threat is nothing more than a naked ploy to appeal to an ultraconservative political base that he feels he need for re-election?
Without further ado, here’s the question I’ll pose to you this week: Which is more important to you — taxpayer-funded abortions or a balanced budget? Now don’t think too hard because it really isn’t a trick question. And yes, it really is a “this or that” question.
Why? Because instead of continuing to work toward an agreement that could lead toward fiscal certainty and responsibility, House leadership has opted instead to push a bill that reaffirms taxpayer-funded abortions. Though there is absolutely no practical reason to bring HB 40 to a vote, some members on the other side of the aisle are relishing an opportunity to put Governor Rauner in a tough spot.
Thankfully, Governor Rauner has not caved to this shameless political ploy. He announced that if both chambers pass this sideshow of a bill, he will put an abrupt end to the political theater by vetoing HB 40. To that I say, “Bravo, Governor Rauner, bravo!”
In a way, we sympathize with the [governor]. The politics of this bill are miserable for him, and you can bet that plenty of Democrats support the legislation not because they are strongly pro-choice but because they are strongly anti-Rauner. Raw politics is driving this debate.
But that in no way changes the merits of the case. This is an important bill, extending access to a legal medical procedure to all women in Illinois and getting rid of the trigger provision. It didn’t belong in the bill way back in 1975 and certainly doesn’t belong today.
We urge the governor to put his principles first and support it.
With the Illinois General Assembly scheduled to return to session today amidst a crippling 22-month long state budget impasse, State Representative Mark Batinick (R-Plainfield) has announced he will not be voting on any non-essential legislation until a state budget is brought to the House Floor for debate and a vote.
Representative Batinick identified four categories of essential legislation that he will continue to vote on. Those categories include: any budget-related bills, legislation that would make state government more efficient, legislation that has the ability to produce private-sector job growth; and any bills which impact immediate public safety concerns.
“We have to put our priorities in the right place,” Rep. Batinick said. “Right now, that means passing a state budget and ending this destructive, unnecessary impasse. I may be only one legislator, but I can do my part and set an example by personally refusing to participate in wasting the legislature’s time by voting on any bills that are non-essential or distract from the most important thing we should be doing right now, which is to pass a budget.”
The Illinois House of Representatives is scheduled to return to session in Springfield April 24-28.
Five public universities with junk bond ratings and an unpaid bill mountain of $12.9 billion doesn’t exactly indicate fiscal conservatism to me, but whatever.
When Gov. BRUCE RAUNER appeared at a campaign-paid appearance last week at Fulgenzi’s Pizza & Pasta in Springfield, he was introduced by state Rep. TIM BUTLER, R-Springfield, who compared the governor to the 16th president.
Butler, who was named to the House in March 2015 and was unopposed for a full term in 2016, said he was “struck” by Rauner’s inauguration speech, when the governor said, “‘Some in government will be tempted to once again take the easy road, to leave the real problems for another day and the next generation.’”
“We love Lincoln here in Springfield,” Butler said. “And I will say, no one has exemplified Abraham Lincoln’s words more … ‘Be sure to put your feet in the right place, and stand firm.’” (Lincoln actually said, “then stand firm,” but Butler was quite close.)
“Governor Rauner has stood firm against 50 years of Speaker … MIKE MADIGAN, and he’s doing the people’s work,” Butler said.
SIU fell three notches Thursday in S&P Global Ratings’ latest round of long-term and underlying ratings. SIU received a BB rating, down from BBB, and was placed on CreditWatch with negative implications.
“The downgrade and CreditWatch negative status reflect our belief that the state may fail to pass a fiscal year 2017 budget by the end of May, which would likely result in no additional operating appropriations distributed to the university for the remainder of fiscal 2017,” S&P Global Rating Credit Analyst Jamie Seman said in a release of the rating on standardandpoors.com.
SIU President Randy Dunn told State Rep. Christian Mitchell, D-Chicago, and State Rep. John Cavaletto, R-Salem, during an informational hearing of the House Economic Opportunity Committee at SIU on Thursday that the university is facing a “crisis of confidence” in attracting students due to the state’s budget impasse. He reiterated that in a statement released on Friday.
“Yet again, SIU is paying the price for the inaction of our state lawmakers to fully pass a state budget that helps fund university operations and lives up to the longstanding commitment Illinois had made to higher education. SIU is not closing and not going anywhere, but as we are in the 22nd month of the budget impasse, the loss of the state’s commitment to public higher education makes it that much more difficult to maintain the services SIU provides not just to our students, but the regions we serve. This has got to end,” SIU President Randy Dunn said.
No mention of what that downgrade actually means. And a statement from the university president placing sole blame on the General Assembly.
Southern Illinois University and the University of Illinois saw credit downgrades. Illinois State University joins them on the watch list with a negative outlook. […]
Dunn says bonding and other borrowing will cost more as a result of the downgrade - but he points out the university was not planning to do that for a couple of years.
Also no mention of what losing investment grade status means to the university and a statement from the president saying essentially: “No biggie.”
Recently, Rauner has been making appearances around the state repeating that he believes a deal is once again close.
“We’re negotiating in the Senate right now. Democrats and Republicans are coming together,” Rauner said last week. “We’re very close. We could get it done in the next couple of weeks.”
Sources from both parties said that while individual senators may discuss issues connected with the bargain, they weren’t aware of formal negotiations taking place. […]
Even though an overall state budget is still unresolved, the House has moved a bill that authorizes more than $800 million for higher education and human services. The bill would still have to be approved by the Senate before it could go to Rauner. […]
However, Rauner and a number of Republicans believe passage of a stopgap measure will take pressure off of lawmakers to come up with a full budget.
The Illinois General Assembly - unable to reach a budget deal in more than two years - will make one more try this week.
As legislators return to Springfield on Monday following a two-week recess, the Illinois Senate is expected to amend the stopgap budget and send it back to the House, but there’s no clear indication that a deal has been reached.
Subscribers know more details, but think about this for a second: If the Senate Democrats really believed they were making any significant progress with the governor on their long-sought grand bargain, would they be advancing a stopgap bill that could upset the apple cart?
The speculation at the Capitol held that if the state’s budget impasse continues through next year’s election, Republican Gov. Bruce Rauner will campaign on the fact that he blocked Democrats from hiking taxes.
End the speculation. Cue the campaign.
In a fundraising letter sent to Republican supporters from the governor’s campaign, Rauner says: “Speaker Mike Madigan and the Springfield Democrats REFUSE TO FIX our state. Illinois taxpayers deserve a balanced budget WITHOUT any tax increases.”
That’s a sharp contrast to what the governor previously has said, including his acknowledgment that the state needs more revenue as well as spending cuts to achieve a balanced budget. (He’s not alone in that view — leading Democrats have said the same. The shortfall is just too big.) […]
“In the midst of the ongoing budget impasse in Springfield, I don’t normally have time to write personal letters like this but I urgently need to hear back from you ASAP,” Rauner said in the form letter addressed to “Dear Fellow Taxpayer” and marked “Personal & Confidential, Urgent Reply Requested, Please Respond in 7 Days.”
Let’s get something straight right off the bat: Legalizing marijuana will not solve Illinois’ horrible budget deficit problem. It won’t solve our crime problem. It won’t solve our unemployment problem. It won’t solve our high property tax problem.
There are no magic elixirs for Illinois. One solution won’t fix all that ails us because, bluntly, too much ails us. But legalization is a practical step forward.
Illinois needs at least $6 billion in revenue and cuts to balance its budget. In September 2015, Gov. Bruce Rauner sent a memo to state lawmakers claiming that if Illinois had just an “average” unemployment rate and an “average” gross state product, and if we could convince people to stop moving away, we’d see $500 million in annual state tax growth. He said he could achieve that growth by implementing reforms like reductions to workers’ compensation benefits and restrictions on lawsuits.
But Rauner’s projected revenue growth could be almost matched or even surpassed by legalizing marijuana, which analysts say could funnel $350 million to $700 million a year to state coffers. The governor has held up budget negotiations for two years until he gets his reforms, and the state has gone deeply into debt. Our social services network is falling apart, and our universities are crumbling. I think some of the governor’s reforms have merit, but he doesn’t have the only solutions.
A few things. First, please click here to read the rest before commenting because there’s lots more to this argument. Second, you’ll note that I’ve gone back to referencing the governor’s 2015 revenue projections for his Turn Around agenda. He said a year ago that he’d be releasing updated projections, but he hasn’t ever done that. So, they’re the only numbers we have and they were relevant to my column. Third, tort reform and other items have since been removed from his agenda, so his $500 million estimate is probably too high. Fourth, Rauner’s revenue projections are long-term, while legalizing marijuana could produce much faster fiscal results.
Congratulations, everybody! Illinois now has five public universities with junk bond credit ratings. That has to be some kind of record.
Last week, S&P Global Ratings lowered the credit score of both Southern Illinois University and Western Illinois University into junk bond status. Eastern, Northeastern and Governor’s State were already in junk bond territory and their ratings were lowered even further last week. The University of Illinois, the state’s flagship, was also downgraded to just three notches above junk status and, like all the other universities, put on a “credit watch with negative implications,” meaning it could be downgraded again within the next 90 days.
All of the downgrade reports noted that none of the universities have received any funds since their partial “stopgap” appropriation in June of last year. The reports also seemed to advocate for another stopgap funding bill this fiscal year.
For instance, while noting in the U of I’s report that a stopgap had been passed last year to cover the first six months of this fiscal year, S&P went on to write: “the state has yet to pass a budget for fiscal 2017 and has not conclusively communicated plans for stop-gap funding to support the state’s public higher education institutions.”
As you may know, Gov. Bruce Rauner and his legislative Republicans are adamantly opposed to another temporary stopgap budget that would use existing special state funds that are currently piling up in bank accounts to help out struggling universities, college students and human service providers and recipients.
Their argument is that distributing the money would take the pressure off everyone to pass a real budget with the governor’s demanded reforms. At the same time, Rauner and GOP legislators want to take state employees out of the “pressure” equation with a continuing appropriation, which means those salaries would essentially be funded throughout eternity. But since the lack of funding for social services and higher education over the past two years hasn’t spurred anyone in Springfield to action, it might be that only an actual government shutdown after state employees can’t come to work will actually move the needle.
“If state operating appropriations are received in fiscal 2017,” S&P declared in its SIU downgrade report, “we will incorporate the impact of those appropriations at that time,” suggesting that some money thrown at the universities via a stopgap plan could forestall another immediate ratings downgrade.
Junk status means many investment institutions, like pension funds, cannot buy those bonds. So, while the state hobbles the universities by refusing to make full appropriations, it’s also undermining their ability to borrow at semi-reasonable rates. Speculators looking for relatively high returns on bonds that have to be repaid will gladly buy those bonds and rake in the dough. Meanwhile, precious dollars that the universities cannot afford to spend have to be used to make higher interest payments. It’s a horrific fiscal cycle and, in our case, it’s completely man-made.
It could take our universities a decade or more to recover from these body blows. At the very least, we need a stopgap budget now and then a full, “real” budget before the beginning of next fiscal year.
The governor is currently running all over the state proclaiming to anyone who will listen that a deal is “very close.” He said at an Elk Grove Village event last week that “a big comprehensive package” was being prepared. Democrats say they have no idea what he’s talking about.
Rauner had better be right because, even though the Democratic Party has its own dirty hands here, the governor is the state’s chief executive, so he will wear the jacket for failure. He’s come up with excuse after excuse for more than two years now for why he can’t get a budget passed, or even why he won’t propose his own balanced budget. No more.
And if you dig a little deeper at those S&P reports, you’ll see that the ratings agency had some very specific warnings for state government as well.
Illinois’ credit rating is just barely above junk status. And S&P warned in several of its downgrades that the universities could be in for a “multinotch downgrade” if the state’s rating is lowered. Another downgrade report warned that there was “at least a one-in-two likelihood of a rating change within the next 90 days,” more than implying that action against the state’s credit rating could happen soon.
* Related…
* Editorial: The longer we wait, the worse it will get: The 2016 State Higher Education Finance report released Thursday by the State Higher Education Executive Officers Association identified our state as an outlier, saying: “It’s impossible to examine state higher education finances in 2016 without separating the collapse in Illinois from a more nuanced picture across the rest of the country.” The report noted that thanks to the 22-month long budget impasse, appropriations per full-time student dropped by 80 percent in Illinois. Enrollment in public institutions dropped by 46,000 students. Illinois was so horrible it weighed down the rest of the country: If Illinois is included, overall public support for higher education fell by 1.8 percent. Remove Illinois, and overall support increased by 3.2 percent. That’s mortifying.
* We’ll talk about this more on Monday, but here’s the press release…
Today, Personal PAC released the results of a statewide poll it recently conducted showing that Governor Rauner is completely out of step with the vast majority of Illinois voters on the issue of abortion.
73% percent of Illinois voters believe abortion should be a private decision between a woman and her doctor versus 20% who do not, making the margin of difference 53%. 7% were not sure. Among these voters, 58% of them are Republicans, 86% are Hispanic/Latino, 71% are White, and 83% are African American, with strong support across all age groups, 85% of 18-29 year-olds and 70% of those older than 65. Of people living outside the Collar Counties & Chicago/Cook County, 65% agree with this statement versus 27% who disagree.
On the question of whether Governor Rauner should protect the reproductive health care of ALL women, 64% agree and 24% disagree, with 12% undecided. 47% of Republicans agree as do 75% of Hispanic/Latinos, 60% of White voters and 74% of African Americans, 57% of those older than 65.
One of the most encouraging and fascinating results is that among 18-25 year-olds, 83% agree that Governor Rauner should protect the reproductive rights of ALL women which is almost identical to the 85% who believe abortion should be safe and legal in Illinois. This age cohort clearly understands that being pro-choice means supporting access for all women and their families. Translation: A choice without the means to exercise that choice is meaningless.
On the question of being more or less likely to vote for Governor Rauner if he DOES NOT PROTECT the reproductive health care of ALL women, 46% are less likely to vote for him while 20% are more likely to vote for him, with 28% making no difference and 5% not sure. 21% of Republicans and 47% of Independent voters are less likely to vote for him when asked this question.
Only 35% of Republicans would be more likely to vote for him and to 39% of Republicans it makes no difference. Among all Republicans on this question, fully 64% are either less likely to vote for Governor Rauner (21%), it doesn’t make a difference (39%), or they are not sure (4%).
43% of voters living outside the Collar Counties and Cook County/Chicago are less likely to vote for Rauner if he doesn’t support the reproductive rights of all women.
The results of this poll make it abundantly clear that Governor Rauner is on the wrong side of every demographic in the State of Illinois on the issue of abortion rights and access to reproductive health care for all women.
Yesterday, Governor Rauner stated that he will veto HB 40 because the issue is “too ‘divisive’ and “controversial.’” However, this poll points to the truth: Governor Rauner is the one who is too divisive and controversial; not the protections for women contained in HB 40 that he now opposes. It would be quite simple for Governor Rauner to take all that “focus” he has and spend just five seconds of his valuable time to place his signature on HB 40 to make it the law in Illinois.
Signing HB 40 is what the people of Illinois want Governor Rauner to do and expect of him, not only in this poll, but what he promised to do in writing in 2014 by stating, “As Governor I will work for equal access to contraception and abortion services.” “I dislike the law that restricts abortion coverage under the state Medicaid plan and state employees’ health insurance because I believe it unfairly restricts access based on income. I would support a legislative effort to reverse that law.”
The people of Illinois agree with your 2014 statement Governor Rauner. HB 40 is the “legislative effort to reverse that law.”
The poll was conducted by Public Policy Polling April 17-18, 2017 among 855 registered voters statewide. 80% of the respondents were reached by land line phones and 20% were cell phone users.
46 percent saying they would be “less likely” to vote for Rauner on this topic is not very high. And if you look at the crosstabs, that number is 48 percent among women.
President Trump’s approve/disapprove among women, by the way, is 35/56. Among men, it’s 45/49. His overall approval numbers are similar to some recent national polling.
Donald Ray Edwards, 70, of Frankfort, IL, passed away peacefully on April 19. He was born in Alton, IL, and lived a life of full of love, good humor, commitment to causes that inspired him, and devotion to a family who loved him deeply.
Don’s passions were numerous and sincerely felt. A fishing trip with his son. An afternoon of golf with his closest friends. A day spent volunteering at the food pantry. His service to the Lion’s Club. A peaceful morning with his wife, Deborah, sharing coffee over the newspaper. An evening with his daughters, playing games and sharing stories. Don’s first passion was always his family, to whom he was endlessly devoted and imparted values and life lessons that will remain with them always.
Don’s passion was also evident in his nearly-50 years of service to credit unions, 39 of which was spent at the Illinois Credit Union League. In numerous roles, most recently as the Senior Vice President of Federal Government Affairs, Don oversaw the League’s legislative and political action activities, always advocating with his trademark gentle charm and sincerity. Though he was honored for his decades of service with tribute awards and a scholarship established in his name, it was the friendships he formed and belief in his cause that inspired Don to accomplishments too numerous to list here.
Don is survived by his wife of 36 years, Deborah; his three children, Jessica (Brian), Daniel (Katie), and Julie; his grandson, Zavier; his brother, James (Teri), and his step-brother, John Roy.
Visitation will be held Monday from 3-8pm at Gerardi Funeral Home, 9501 W. Lincoln Hwy., Frankfort. Funeral Services will be held Tuesday at 10:30 AM, also at Gerardi Funeral Home. Interment Pleasant Hill Cemetery, Frankfort. For information, please call 815-469-2144.
In lieu of flowers, the Edwards family requests memorial contributions be directed to the Leukemia Research Foundation in Don’s name.
* The Sun-Times reports today that most state universities don’t pay their commencement speakers a fee, but rather just reimburse their travel and lodging expenses. NEIU, however, is different…
• $15,000 to Democratic political operative Donna Brazile in 2013. Brazile ran Al Gore’s losing campaign for president in 2000 and twice was interim leader of the Democratic National Committee.
• $10,750 in May 2014 to Victoria DeFrancesco Soto, a professor at the University of Texas in Austin who is an MSNBC and Telemundo contributor.
• $10,000 in 2015 to Oscar- and Emmy-winning actress Rita Moreno, who appeared in the movie musicals “West Side Story” and “The King and I.”
• $10,100 last year to Evan Wolfson, a New York civil right lawyer who founded Freedom to Marry, which pushed successfully to legalize gay marriage.
And then there was the $30K the school was willing to shell out to Valerie Jarrett before she decided not to accept it.
[NEIU] is heavily reliant on state funds and the ongoing budget battle in Springfield is holding up appropriations. To save money, the school cancelled classes on April 11 and 12 and plans to do so again one day in May.
State Rep. Mark Batinick, R-Plainfield, says this is exactly why taxpayer-funded schools shouldn’t be allowed to pay commencement speakers. He is filing a bill that would ban the practice in Illinois.
“It certainly isn’t the best use of public funds at a time when the university’s laying off workers and furloughing people,” he said. “And if you expect to get paid for that sort of speech, you don’t deserve to give that sort of speech.”
The same version of his bill that was filed last legislative session would allow private funding for speakers.
* The Question: Do you support Batinick’s proposal? Click here to take the poll and then explain your answer in comments, please.
Illinois Gov. Bruce Rauner is the most vulnerable incumbent governor in 2018, according to new national election rankings today from Roll Call analyst Nathan Gonzales.
Rauner is the only incumbent governor currently projected to lose in 2018, according to the non-partisan rankings. Gonzales lists Illinois as “Tilt Democratic,” citing difficult headwinds for Rauner.
“The governor is willing and able to spend tens of millions of dollars to get re-elected. But that doesn’t change the distinct Democratic lean of the state. … The state and political environment will likely work against the governor. Tilt D.”
The announcement caps off another tough week for the embattled governor. Newspapers around the state have grown weary of Rauner’s dearth of answers to the state’s problems.
From the excuses over the budget impasse, to the thinly veiled campaign trips, to his flip-flops on reproductive rights, Rauner has done little to inspire confidence.
If you click here and go to the report, the Rauner race is actually listed as “Toss-up/Tilt Democrat.” The subscriber section referenced by the DGA lists it as “Tilt D.” Either way, it’s gonna be a heckuva race.
* In other campaign news, JB Pritzker was interviewed by Tom Miller at WJPF Radio today. Have a listen…
He’s getting better. That’s the best interview I’ve heard him do yet. But the questions were friendlier than the others.
* Pro-life Action League board member Chris Iverson…
As proposed, HB40 purports to do two things: ensure that abortion in Illinois would remain legal even if the U.S. Supreme Court rolls back Roe v. Wade and allow for the use of taxpayer dollars to fund abortions. This is a very strange policy, since fewer than half of Americans find abortion morally acceptable. And, according to another recent poll, Americans do not want to pay for other people’s abortions.
Aware that their bill has unpopular policy results, those advocating the bill created political cover. They dusted off the old law books and found language in a 1975 Illinois abortion law that mentions a general intent to protect unborn humans from abortion. The advocates for HB 40 falsely claim this language amounts to a “trigger law” that will make abortion illegal in Illinois if the Supreme Court overturns the Roe decision. It’s a scare tactic aimed at reducing support for Governor Rauner. If they can get voters upset over this false claim, perhaps these voters will forget the fiscal crisis we are in and vote accordingly.
The truth is that the Illinois Legislative Research Unit in 1989 already studied this question and determined that there is no trigger law. If Roe v. Wade is ever overturned, abortion will be just as legal in Illinois as it is today. It would take an entirely new law at the state level to make abortion illegal. So, then, HB40 would really only do one thing: Require taxpayers to pay for abortions through Medicaid and state workers insurance.
A preamble to the 1975 law allowing abortions says if the landmark Roe v. Wade decision is ever reversed or modified, “the former policy of this state to prohibit abortions unless necessary for the preservation of the mother’s life shall be reinstated.”
Despite the strong wording, most Illinois legislators, bolstered by an opinion from the General Assembly`s legislative research unit, say lawmakers would have to pass new bills before abortion could be banned or severely restricted again.
The reference to reverting to the old law “lacks all of the kinds of specific, operative provisions that would be necessary for enforcing such a policy, such as definitions and penalties,” the legislative research unit said in February.
Anti-abortion groups would likely go to court to get the 1975 law reinstated [if Roe v. Wade is overturned], but whether they would succeed remains a question. […]
“Abortions will not be illegal because there is no statute in Illinois that makes abortions generally criminal,” [Attorney Paul Linton, counsel for the anti-abortion Americans United for Life] said.
The Illinois Legislative Research Unit of the General Assembly also shares that view. It would take a new law to outlaw abortion here, the research unit concluded in a 1989 study. […]
[Colleen Connell, director of the reproductive rights project of the American Civil Liberties Union of Illinois] of the ACLU maintained that both the preamble and the law are unenforceable.
“The law has a unconstitutional vagueness,” she said. “It doesn’t specifically tell physicians which acts are prohibited and which are not. There’s a long-standing and unquestioned doctrine of criminal law in Illinois that says the law must be very specific.
“What the preamble says is the General Assembly didn’t like abortion, but the preamble has no legal, binding aspect.”
Despite those comments, the ACLU of Illinois is currently advocating for the “trigger” law repeal.
Under Illinois law, a preamble “is not a part of the Act itself and has no substantive legal force.” Because a preamble customarily precedes the enacting clause, “ ‘[it] is not regarded as being an operative part of statutory enactments.’ ” A preamble cannot, by itself, prescribe rights or establish duties, but may only be used as a tool of statutory construction. [Citations removed.]
The preamble has long been recognized as one of the quintessential sources of legislative intent. The fact that the preamble often accompanies a bill throughout the legislative process, is voted upon by the members of the General Assembly, and is included in the text which is presented to the Governor for signature highlights the unique character of the preamble in terms of legislative intent. In this regard, we note that a preamble constitutes a stronger expression of intent than does a passing comment made by a single legislator during legislative debates. Thus, we are not confronted with a situation where the contrary legislative intent needed to rebut the presumption of retroactivity is cloaked in doubt or uncertainty.
Equally important, however, is the fact that our decision is faithful to the cardinal rule of statutory construction which dictates that courts must ascertain and give effect to the true intent and meaning of the legislature.
What they were talking about in that case was a preamble which announced the intent of the General Assembly that wasn’t actually in the statute. The statute simply and succinctly repealed the Structural Work Act (”The Structural Work Act is repealed”), but the specifically stated legislative intent was only to bar legal actions going forward (”It is the intent of the General Assembly that any action accruing under the Structural Work Act before the effective date of this Public Act may be maintained in accordance with the provisions of that Act as it existed before its repeal by this Public Act.”). The Supremes went with the legislative intent in the preamble after an injured worker attempted to claim damages from an injury received before the repeal took effect.
* From the legislative intent preamble to the “trigger” statute in question…
It is the intention of the General Assembly of the State of Illinois to reasonably regulate abortion in conformance with the decisions of the United States Supreme Court of January 22, 1973. Without in any way restricting the right of privacy of a woman or the right of a woman to an abortion under those decisions, the General Assembly of the State of Illinois do solemnly declare and find in reaffirmation of the longstanding policy of this State, that the unborn child is a human being from the time of conception and is, therefore, a legal person for purposes of the unborn child’s right to life and is entitled to the right to life from conception under the laws and Constitution of this State. Further, the General Assembly finds and declares that longstanding policy of this State to protect the right to life of the unborn child from conception by prohibiting abortion unless necessary to preserve the life of the mother is impermissible only because of the decisions of the United States Supreme Court and that, therefore, if those decisions of the United States Supreme Court are ever reversed or modified or the United States Constitution is amended to allow protection of the unborn then the former policy of this State to prohibit abortions unless necessary for the preservation of the mother’s life shall be reinstated.
An ACLU of Illinois spokesman says the group hasn’t changed its position, but that there is just “too much risk” now from legal ambiguities like the one above to allow a judge to decide what happens next should Roe v. Wade be repealed. That’s why they want to repeal the “trigger.”
The district is suing the state for more money, but lawsuits are always iffy propositions. It probably can’t borrow the money because it’s pretty much locked out of the markets and borrowing would simply push the problem onto next year. It can’t really delay the coming pension payment, either.
Here’s the rub: TIF surpluses are not available at this point in the fiscal year, mainly because the city can’t surplus money it doesn’t yet have. The next infusion of property tax revenue will be in August, said Tatia Gibbons of the Cook County Clerk’s office.
And August is too late to make that $215 million pension payment by June 30th.
It could cancel construction projects that use TIF money. But it’s unclear how much that would free up by reading the article.
Its current deficit amounts to just about 2 percent of its $5.4 billion operating budget. It also has a $1.5 billion line of credit.
CPS says its line of credit is being fully used, though the district still may be able to borrow more money in the short term or shift funds around and hold tight until its next infusion of property tax money in August. […]
The district refuses to say how much money it has on hand, what bills for this year are outstanding and whether it has any wiggle room when it comes to using its line of credit to manage cash flow.
CPS officials said cash flow information is not revealed for “market reasons,” offering only that CPS’ cash flow situation is precarious.
“I fundamentally believe that abortion should be a woman’s private decision, hopefully in consultation with her loved ones and her faith community, and that decision should not be impeded by government,” Rauner wrote in reply to Personal PAC’s questionnaire.
“This principle should apply to all women, regardless of income level or location of residency. As governor, I will work to ensure equal access to contraception and abortion services. It is my hope that by increasing access to reproductive health services we can reduce the incidence of abortions in Illinois, while ensuring that women who do make this decision receive services in a timely manner,” he wrote.
Rauner added: “My highest priority in this area will be to ensure effective administration of the laws regarding access to contraception and provide that access regardless of income. I dislike the Illinois law that restricts abortion coverage under the state Medicaid plan and state employees’ health insurance because I believe it unfairly restricts access based on income. I would support a legislative effort to reverse that law.”
Additionally, Rauner checked “yes” boxes on questions about whether he would sign bills repealing the so-called trigger law as well as legislation about lifting Medicaid and state-employee insurance restrictions. [Emphasis added.]
As you already know, Gov. Rauner recently made it known that he will veto HB 40, which would repeal the trigger law and expand Medicaid and state employee health insurance coverage of abortion.
Expanding taxpayer funding, expanding taxpayer funding is a very divisive issue. It’s a very controversial issue. What we need to do is focus in Illinois. We need to protect existing Illinois law, but we need to focus on jobs. We need to focus on reducing property taxes. We need to focus on education funding. We need to focus on getting term limits on elected officials. These are difficult issues. We need to focus on, this has everything, we need to focus.
It has everything to do with focus. What we should not do is take on controversial, divisive issues right now, when we don’t have a balanced budget, when we do not have proper school funding, when we do not have economic growth and job creation. We should not take on divisive, controversial issues and expanding taxpayer funding is a controversial, divisive issue.
We should protect existing law, protect women’s reproductive rights in the state of Illinois. That is not controversial, at least for the majority of folks. Changing and expanding taxpayer funding, very controversial, very divisive and we need to focus. We need to focus on jobs, we need to focus on relief for property taxpayers, we need to focus on proper school funding and we need to focus on fixing our political culture by putting term limits on elected officials.
* He was then asked: “Did you not know in 2014 that this was a divisive issue, and what changed between then and now?”
We need, we need to focus. What we don’t have is a balanced budget in Illinois. What we don’t have is structural change to grow jobs, to protect our property taxpayers and bring down our property taxes. What we don’t have is proper school funding in the state of Illinois, and we still don’t have term limits, even though the people of Illinois overwhelmingly want term limits to fix our political culture. We have got to, we have got to focus. We have got to focus, we’ve gotta get this done. Thank you.
…Adding… From a friend…
As a woman, it sounds like all other state problems are more important.
Balanced Budget Note (Office of Management and Budget)
An accurate cost assessment for this bill cannot be completed at this time because it does not mandate the State to fund these services. However, by removing these prohibitions it opens the State up for significant cost liabilities to incur. It is unknown how often these services would be utilized by Medicaid enrollees or State employees, the exact cost to health insurance plans, or how many new grant requests the Department of Human Services would receive as a response to this, and future related legislation.
*** UPDATE *** From Sen. Daniel Biss…
“There is no more fundamental issue than what you can do with your own body. Only an arrogant billionaire who thinks he’s accountable to no one would say the liberty of half the people of our state is a distraction.”
* The annual party thrown by the Illinois Manufacturers’ Association and the Illinois Retail Merchants Association next Wednesday has an interesting theme…
A federal courtroom has taken simply three days to reject the attraction of imprisoned former Illinois Gov. Rod Blagojevich looking for a 3rd sentencing.
The unanimous ruling Friday by the seventh U.S. Circuit Courtroom of Appeals in Chicago dismissed arguments that the Democrat’s trial-courtroom decide ought to have decreased his 14-yr jail time period for corruption due to his good conduct behind bars.
Pepper v. United States, 562 U.S. 476, 481 (2011), holds that “when a defendant’s sentence has been set aside on appeal, a district court at re-sentencing may consider evidence of the defendant’s post-sentencing rehabilitation and that such evidence may, in appropriate cases, support a downward variance from the now-advisory Federal Sentencing Guidelines range.” Blagojevich’s original sentence was imposed in December 2011, and he entered prison in March 2012. He submitted evidence that between then and the new sentencing in August 2016 he had helped other inmates with their educations and set an example of moral and caring behavior.
The district judge acknowledged this evidence but found that it did not justify a lower sentence, in large part because none of the other inmates had known Blagojevich while he held office and therefore could not show that he had fundamentally changed his attitude toward corrupt dealing. The judge demonstrated that he understood the extent of discretion under Pepper and did not need to explain at greater length why he found the new evidence unpersuasive. See Rita v. United States, 551 U.S. 338, 356–59 (2007) (brief reasons suffice). Blagojevich’s treatment of fellow inmates may show that outside of office he is an admirable person, but the court was entitled to impose punishment that reflects how Blagojevich behaved when he had a different menu of opportunities and to deter those who hold office today. The authority recognized by Pepper belongs to the district judge. As with many discretionary subjects the fact that a judge could have ruled otherwise does not imply that the judge was compelled to rule otherwise.
Blagojevich’s contention that the vacatur of five convictions calls for a lower sentence likewise was considered by the district judge, who observed that the remaining counts of conviction represent the same kind of conduct as the vacated counts. We did not hold that Blagojevich was innocent of the charges in the vacated counts; we concluded, rather, that the jury instructions did not separate political horse trading (Blagojevich’s offer to appoint someone to the Senate in exchange for the President’s promise to appoint him to the Cabinet) from extortion and similar crimes (Blagojevich’s offer to appoint someone to the Senate in exchange for cash). 794 F.3d at 734. The district judge, who presided over two lengthy trials, was free to consider all of the evidence even though the prosecutor elected not to retry these five counts. The district judge also observed that the vacatur did not affect the Guidelines range. Given the standards of Rita, the judge said enough to justify the sentence. […]
According to Blagojevich, McDonnell calls the reasoning of our first decision into question. Not so. The only issue before the Court was whether McDonnell had traded “official acts” for money and other benefits. The Justices considered the definition of “official act” in 18 U.S.C. §201(a)(3) and concluded that McDonnell’s jury had been instructed incor rectly. Blagojevich, by contrast, has never contended that the activities of appointing someone to a vacant seat in the Senate, signing legislation, or the other activities that a jury found he sought to profit from, were not “official acts” of a state’s governor.
Blagojevich’s remaining arguments do not require discussion.
* If nothing changes soon, then it’s not a question of “if” Illinois hits junk bond status, it’s “when”…
The lowest-rated U.S. state is headed toward its third year of an unprecedented budget impasse as Republican Governor Bruce Rauner and the Democrat-led legislature repeatedly fail to agree on how to plug chronic deficits and halt the growing backlog of unpaid bills.
Both Moody’s Investors Service and S&P Global Ratings have warned that Illinois could be downgraded again, while investors are already demanding higher yields on its bonds than they do from borrowers that are on the cusp of junk, according to data compiled by Bloomberg.
“It’s getting harder and harder to find a reason to be optimistic for a budget,” said Ty Schoback, a senior analyst in Minneapolis at Columbia Threadneedle Investments LLC, which holds some Illinois debt among its $22 billion of municipal holdings. “That being said, this is politics — you can’t predict. Two years ago, we were debating whether or not Illinois falls into BBB. Today, we’re debating whether it falls to junk status. If the status quo persists, what are we going to be debating in two years?” […]
Both Moody’s and S&P have warned of further credit deterioration if Illinois enters a third year without a spending plan. Both companies rank Illinois only two steps above junk with negative outlooks, signaling the rating could fall again. No U.S. state general-obligation bonds have ever been rated below investment-grade, according to data going back to at least 1970.
* From S&P’s rating downgrade of the U of I…
We will reassess the rating and outlook as new information becomes available and expect to resolve the CreditWatch status over the next 90 days. We could consider additional negative rating action, including a multinotch downgrade during the CreditWatch period if the rating on the state is lowered.
* From S&P’s rating report on ISU…
We could consider additional negative rating actions, including a multinotch downgrade during the CreditWatch period, if we lower our rating on the state.
* From S&P’s downgrade of City Colleges of Chicago…
“The CreditWatch reflects our view that there is at least a one-in-two
likelihood of a rating change within the next 90 days”
The president and CEO of the Illinois Chamber of Commerce is renewing his call to give up the status quo in Springfield to dig out of the state’s fiscal mess.
Todd Maisch told WJBC’s Scott Laughlin it boils down to the need for the governor and lawmakers to promote economic growth to increase revenue instead of raising taxes.
“We think that’s the wrong approach,” Maisch told WJBC’s Scott Laughlin regarding increasing revenue through higher taxes. “You’ve got to go ahead and spur small- and medium-sized business investment if we’re ever going to get out from this cycle where economic growth trails government spending. It’s just a dead end. You’ve got to break that cycle. It’s painful right now, but you’ve got no choice but to do it.”
No argument at all that we truly need some real growth in our state’s economy.
* But the Civic Federation shows us how many “painful” cuts need to be made immediately (before any long-term “growth” can kick in) if taxes aren’t raised…
If GOMB’s revenue projections and maintenance - level FY2017 expenditures are assumed, a one-year cut of over 26% is necessary to eliminate the FY2018 structural deficit. This would represent a cut of 18.5% from FY2015 spending levels. If implemented across the board, this would mean cutting K - 12 education from $7.4 billion to $5.5 billion in one year. It would also represent a cut of approximately $1.2 billion from FY2015 levels.
Similarly, higher education would experience a cut of $482 million in one year. This would follow two years of underfunding from the FY2015 level that totals $1.4 billion. Finally, human services would also experience a one-year cut of more than $1.5 billion, also following two years of underfunding without full-year budgets.
Some efforts, including debt restructuring and statutory transfer reform, could mitigate these cuts. However, existing consent decrees and further litigation resulting in court-ordered spending would reduce the flexibility of the state to implement cuts in a cost-effective manner. As a result, cuts would have be concentrated in areas with less legal protection.
Even after the severe cuts needed to balance the FY2018 budget, further reductions would be needed to eliminate the backlog of bills. Additional spending cuts of 4.45% per year would eliminate the backlog by FY2022. The cuts total more than a 38% reduction in spending over five years. Cuts of this magnitude would almost certainly result in a decline in the quality of life in Illinois, and would represent a drastic departure from the current understanding of the relationship between the government of Illinois and its people.
Emphasis added.
Keep in mind that such cuts would undoubtedly force up property taxes and university tuition, which wouldn’t be great for “growth.” All because they can’t agree to raise the income tax rate by a point-and-a-quarter.
“The Democrats had been in power in Springfield for 12 years, and yet, we still had the fourth-most-unfair tax system in the country,” Biss said, “where we taxed the middle class and the working poor more, and the richest Illinois residents, who have been the beneficiaries of two generations of all the economic growth aren’t being asked to pay their fair share.”
Biss supports replacing the current flat tax system with a graduated income tax. He also wants to peg property taxes rates to income.
In addition to taking potshots at the flat-tax system, Biss also criticized House Speaker Michael Madigan’s “concentration of power” after 32 years in office. He says a constitutional amendment he filed would change that.
“You can’t serve as speaker or senate president or minority leader for more than 10 years,” Biss said. ” I just believed it from day one that that concentration of power is unhealthy. And I’m prepared to say that now, even in a Democratic primary, because it’s true. And I believe in being honest, even about our own warts as a party.”
He’s right about the Democrats not doing anything on tax fairness. Everything was either symbolic (non-binding referendum) or didn’t move after passing one chamber. Same goes in recent years for a minimum wage increase and a whole host of other “progressive” ideas. A whole lot of show and almost no go.
Illinois is in bad fiscal shape. This is not news to those of us who live downstate, where we have borne the brunt of political inaction and fiscal mismanagement for generations.
State Rep. Avery Bourne, R-Raymond, took to this page recently, not to address the state’s problems or offer solutions, but to absolve the governor of any responsibility for the mess.
It’s no surprise she defends him. He and his ultra-wealthy Chicago friends are key donors for her.
More than halfway through a term devoid of accomplishments, Gov. Bruce Rauner needs people like Rep. Bourne to tell everyone it’s not his fault, because in Rauner’s world nothing is ever his fault.
Who’s responsible for submitting a balanced budget? “Not Me!” says the governor. Who gutted social service agencies, harming vulnerable families? “Not Me!” says the governor.
Rumors have been circulating for weeks that the GOP wants Rep. Bourne to run against Sen. Manar next year. If this op-ed is any indication,. the gloves are off.
Illinois’ budget crisis dragged down the credit ratings of six state public universities and Chicago’s community college system on Thursday in a slew of downgrades by S&P Global Ratings.
The rating for the University of Illinois, the state’s largest system, fell one notch to A after S&P determined it could only be three notches above the state’s BBB rating. S&P also warned of a further downgrade if the state failed to fund the system beyond a stopgap amount of $356 million approved last June. […]
“Given the budget impasse of fiscal 2016, ongoing fiscal 2017 budget impasse, and the absence of an agreement among elected leaders, it is our opinion that state appropriations to public universities in Illinois will remain uncertain in the intermediate term,” S&P said in a report.
Southern Illinois University’s credit rating was dropped into the junk level of BB from BBB, while ratings for Northeastern Illinois and for Eastern Illinois universities fell deeper into junk, at B, from BB. Western Illinois University’s rating was cut to BB-minus from BBB-minus and Governors State University’s rating was downgraded to BB from BB-plus.
S&P also lowered the rating four notches to BBB from A-plus for the City Colleges of Chicago, which operates seven community colleges.
The ratings were placed on a watch list for a potential subsequent downgrades.
That means, as I told subscribers this morning, we now have five universities with junk bond status.
Illinois journalists have reported on the impact of the state’s budget impasse for nearly two years. Activists have decried the closure of senior service centers, rollbacks of funding to those with developmental disabilities; harm done to domestic violence shelters or drug treatment centers. The unpaid bills and growing pension liabilities. The list goes on and on. This newsletter has a separate section every day entitled “budget crisis” (and before that, “grand bargaining” when there was such a thing). Still, there seems to be little outrage at the grassroots level over a lack of a state budget in Illinois even as we near two years without one. The common thinking is that average resident won’t get riled unless schools close, state workers go unpaid, government offices shut down or taxes go through the roof. If one social service agency after another goes under, so be it.
The truth that one expert after another will tell you, however, is that deep, long-lasting damage is being inflicted on the state every day we don’t have a funding plan. The long-term effect on state universities is just one example. On Thursday, our universities suffered another major credit ratings blow, with S&P citing the lack of a budget and the unlikelihood that one is on the way. Since the impasse, brought on by a political stalemate between Gov. Bruce Rauner and the Democratic-controlled Legislature, Illinois universities have lost students to other states. Low-income students who rely on monetary assistance have had to drop out, and industries surrounding university towns are starting to suffer.
