An epic budget battle in Illinois led Moody’s Investors Service to downgrade the credit rating of three of the state’s public universities late Wednesday, the latest setback for schools that have been starved of funding for eight months and now face possible accreditation challenges.
Northeastern Illinois University and Northern Illinois University had their credit ratings lowered to just above junk status, while Eastern Illinois University’s rating is now below investment grade. That means analysts consider revenue bonds issued on behalf of the school to be a credit risk for investors.
“The downgrade is driven by EIU’s increasing vulnerability to the ongoing state budget impasse given its thin liquidity, declining enrollment and high reliance on state funding,” Moody’s said in a statement. “Liquid reserves are expected to be exhausted by the end of the fiscal year.”
The Fantasy Sports Trade Association (FSTA), on behalf of its 300 members across the nation including DraftKings, FanDuel, and several Illinois-based operators, is announcing its support for HB4323 sponsored by State Rep. Mike Zalewski, D-Riverside. The bill will provide common sense regulation and consumer protections for the fantasy sports marketplace in Illinois.
“More than two million people in Illinois participate in fantasy sports contests, and they deserve clarity in the law and the right to play,” said Peter Schoenke, chairman of the FSTA. “It’s not just a cluster of larger tech companies who welcome this new regulation - more than a dozen fantasy sports related companies are based here in Illinois. These employers, along with dozens of national fantasy contest providers who have been offering games in Illinois for more than twenty years, would have the legal clarity they need to continue to operate in the state.”
Rep. Zalewski added, “As the popularity of fantasy sports grows, Illinois is part of an important national debate. These contests are not just about DraftKings and FanDuel or daily fantasy, but are really about a diverse industry with Illinois employers large and small providing an innovative form of entertainment. My colleagues and I have the unique opportunity to set a national standard on how to regulate these sites. We need this legislation to provide certainty and protection for the industry, its partners and the millions of Illinoisans who play these contests, and we need it in this spring session.”
Specifically, Rep. Zalewski’s bill offers these regulations and consumer protections:
Defines the category of fantasy sports, codifying them as legal games of skill in Illinois;
Establishes a minimum age of 18 for playing fantasy sports;
Restricts athletes from participating in fantasy contests involving games they participate in;
Ensures fantasy participants display responsible gaming;
Promotes standards for audits of the operators.
I’m assuming that, as usual, the devil of this proposal is gonna be in the details. No word yet on what the AG is planning to do, so stay tuned.
Illinois Attorney General Lisa Madigan issued an opinion in December saying the sites were illegal. The companies argued the opinion could destroy a “legitimate industry” allowed by state law.
New York and Texas have also issued opinions challenging the legality of the industry.
The Virginia General Assembly has passed legislation regulating the sites. Virginia is the first state in the country to establish a legal framework for fantasy sports. Democratic Gov. Terry McAuliffe can sign or veto the plan.
The sites have been banned in six states.
Thoughts?
…Adding… The press conference is here. Check out the pretty funny beatdown administered to a reporter by Stacie Stern of Head2Head Sports at the 18:45 mark.
* OK, before we watch the new IllinoisGO TV ad bashing Rep. Ken Dunkin’s Democratic primary opponent Juliana Stratton, let’s look at the script…
Let’s do the math. Juliana Stratton has been recruited by party bosses to push the same policies that have resulted in hundreds of thousands of job losses in Illinois and put us billions of dollars in debt. Policies that have cut social services for thousands of Illinois families. And as a Cook County official in charge of public safety, she did exactly the opposite, pushing a program that put thousands of inmates back on the street. Add it up, Juliana Stratton would be disastrous for Illinois.
The thing is all over the place. Not to mention that this is a Democratic primary in a district which is majority black (and significantly more so in a Democratic primary), so the “releasing inmates” dog whistle probably ain’t gonna work and may even backfire. And this was recorded off a TV by a pal of mine who lives near Washington Park, so it’s not even being confined to the white northern end of the district - where Stratton is backed by the white aldermen (you can see Brian Hopkins in one of the photos).
Rich – dog whistle? Are you seriously alleging that communicating about crime in a political race in the City of Chicago is somehow racially motivated? That African American voters do not care about crime and only white voters do? Gun violence and its effects on our communities are the single highest concern among voters in this district and that is especially true among African-American voters – of which ninety percent have serious concerns.
Juliana Stratton has touted her public safety record consistently throughout the campaign. But she has a record that includes releasing inmates that that have an average of eighteen arrests, including at least one arrest for a violent crime, despite law enforcement officials finding them ineligible. She fought against a promising proposal to establish a gun court which has gotten illegal guns off the streets in other cities.
Her record is hers to defend and gun violence is a valid issue of concern that cuts across every ethnicity, every age, and every neighborhood. To suggest that somehow this ad is playing into racial fears is flat out wrong and says more about others’ biased assumptions on what voters can or cannot care about.
Feel free to publish our response.
[ *** End Of Update *** ]
* And now for an actual direct hit, via AlderTrack…
“Dark” could be a bit much, but yikes!
I mean… I just… Oh, never mind. She gone, as the Hawk might say. Seriously, did she not watch “Goodfellas” and see how stuffing coke in a baby’s diaper ended poorly?
The mailer was paid for by the House Democrats, probably because Vaughn has long been rumored to be Rep. Ken Dunkin’s candidate in the 6th House District, which was formerly represented by the late Rep. Esther Golar.
Our Illinois Democratic Primary presidential poll shows Clinton with a formidable 57% to 28% lead over Bernie Sanders. Clinton’s only relative weakness was among Collar County Democrats where she leads Sanders 49% to 43%. As we’ve seen elsewhere, African American voters strongly favor Clinton 69% to 14% over Sanders, although the Vermont Senator shows much stronger support among Hispanic and Asian voters.
In the Illinois Republican Primary, Trump leads with 38% over Marco Rubio (21%) and Ted Cruz (16%). Rubio has surged over the last three-four days…I’m not sure if it will last. Trump wins consistently in all four Illinois regions, and holds a 9 percentage point stronger lead among males than females (43% to 34%). Trump’s strongest numbers stem from the 1-of-3 GOP primary voters, and there’s speculation that some who haven’t voted in primaries in the past will come out for him. We’ll see.
* Regardless of the results, keep in mind that presidential races at this stage can change pretty quickly. If Rubio continues surging, then maybe he’ll make it close. But I’d rather be the Trump campaign than any of the others right now.
Clinton’s numbers are about the same as other Illinois polls we’ve seen, while Sanders’ numbers are worse. Maybe that’s because of Clinton’s Nevada win, which gave her some momentum. African-American voters tend to break late, which could also help explain it. But, whatever the case, primaries are not easy to poll, so never bet your life on any one result.
* Rep. Reggie Phillips got some heat on Facebook and elsewhere after he asked for and received a large, $53,000 contribution from Gov. Bruce Rauner. So, he made an announcement on his Facebook page this week…
I used the weekend to reflect on the donation from the Governor, who by the way just didn’t send the money I asked for it, I have been funding my Champaign’s myself from the beginning. I have refused to be paid the salary since 6/15 because I didn’t think it fair I get paid without a budget for many of our residents, I’ve refused the pension and the health insurance as it should be means tested for now and in the future completely done away with for legislators. That’s another story.
So to the point I’ve decided to take $53,000 however you wish to look at it and add to the salary I will eventually get and donate it also. Even though I’m not getting the salary I continue to donate. I will make these public for review so you will be able to confirm and not just take my word. Food banks up and down the district, senior services for the poor, sexual assault centers etc. If you have a particular group suffering from the budget cut and $5000 will help please let me know. I know its not much but every dollar will help. Thanks for reaching out
Eastern Illinois University is struggling to stay alive and is in Phillips’ district and folks there are hopping mad. Phillips also has a Republican primary opponent. You do the math.
Phillips said since Rauner had sent out checks to other Republican candidates for other offices and he was currently working with Rauner on multiple issues, Phillips and his staff thought he could ask Rauner for the donation. […]
Phillips said he did not need the money for his own campaign and asking for it was the result of taking poor advice.
Phillips said in any other campaign, having the governor contribute to one’s campaign would be an honor.
“It’s still an honor,” Phillips said. “But under circumstances I do not think it looks most appropriate.”
Reggie is not the sort who easily admits error, so he must have really been stung by that online criticism.
The paper reported that he has a meeting set up with Sexual Assault Counseling and Information Service in his district to discuss a donation. The impasse has left groups like that without state funds.
*** UPDATE *** From Rep. Phillips…
I am pleased to have the support of the Governor in the March 15th Primary and I was pleased to accept the campaign contribution that the Governor gave to my campaign. As many are well aware, I have largely self-funded my campaigns in the past, and so I am grateful for this generous contribution to my campaign efforts. As I said earlier this week, I’ve contributed to charitable causes in my district for a long time and plan to contribute even more money to charities to help people in need in my district.
I represent the people of the 110th District and I think that having a great relationship with the Governor of this state is important as I continue to work in Springfield on behalf of my constituents. It should be no surprise that the Governor supports my re-election and it should be no surprise to anyone that I backed his election in 2014.
It is ironic and troubling that Jonathan Kaye would find fault in the fact that the Governor supports me. His criticism of me follows the announcement of the Governor’s endorsement of my candidacy. The irony is in the fact that a piece of literature that Kaye has circulated contains a link to the Governor’s website and his Turnaround Agenda. I find it troubling that a Republican candidate would attack the Governor because of an endorsement. Perhaps his criticism stems more from the fact that the Governor has endorsed me instead of him.
But then again maybe Kaye is trying to deflect the impact of the Governor’s endorsement and the revelation that he was charged with a Class X Felony when he lived in Toledo. That charge was later reduced to a misdemeanor, but I think it raises a lot of questions amongst voters about his background and his ability to serve in the Illinois Legislature. Mr. Kaye should spend more time worrying about who supports him and less time worrying about who supports me.
* Related…
* Long responds to tension at tea party meeting: Havenhill then asked if a state political party should financially support any [Republican] primary candidate. “If they believe that candidate has what it takes to win a general election, that’s their prerogative, that’s their money,” Long answered. “That’s not their money,” Havenhill said. “That’s the money that people send in looking for proper representation.”
* Remember when I asked yesterday about the next shoe to drop? Bernie has it…
In addition to campaign-paid mileage reimbursements received by state Sen. SAM McCANN, R-Plainview, during his time in the General Assembly, he has received more than $19,600 in mileage reimbursements from the state since entering the Senate in 2011.
A State Journal-Register story Feb. 14 detailed the payments McCann received from his campaign that included $38,000 in just the past year, which at a reimbursement rate of 57.5 cents per mile would mean he drove more than 66,000 miles in that year.
That story, which also included “grouped expenditures” that McCann took from his campaign fund, has become fodder for anti-McCann ads being run by Liberty Principles PAC, an independent expenditure group whose chairman and treasurer is Chicago radio talk-show host DAN PROFT. The group has spent more than $1.3 million to help McCann’s opponent in the March 15 primary, BRYCE BENTON of Springfield.
A check of state records shows that McCann also submitted vouchers for state mileage payments totaling more than $19,600, with amounts ranging from $4,755 in 2011 to $2,594 for part of 2015. The reimbursement rate was at 51 cents per mile for part of 2011, but has mostly been at 39 cents per mile.
Meanwhile, Capitol Fax reported that a Capitol Fax/We Ask America poll done Tuesday of 645 registered Republican voters put the 50th Senate District March 15 primary race at about 43 percent for Benton, 41.4 percent for McCann and 15.6 percent undecided. The margin of error was 3.86 percent.
It was likely GOP voters, but the ads are obviously working.
Going door-to-door throughout my district, I often hear from parents, teachers and school staff who ask about funding for our area’s schools. I share their urgency and concern. Local schools must be properly funded by the state, and in fact, there is a lot of work to be done to better support local classrooms. For this reason, I am speaking out against a recent proposal that has the potential to significantly set back our efforts to help local schools.
Recently, Gov. Bruce Rauner has announced his support for a plan to bail out the Chicago Public Schools. This school system is in tremendous debt. To name just one of its many failures, when students were being shifted out of 50 closed schools into consolidated classrooms, CPS managed to “lose track” of tens of thousands of computers, desks and books in the transition. CPS paid $25 million to a company to handle the transition logistics. The mismanagement is appalling because I know that every dollar that Chicago wastes could make a difference in our local schools.
An Illinois bailout of Chicago Public Schools puts our students, teachers and taxpayers at risk. We simply cannot be put on the hook for Chicago’s decades of failure. Please help me speak out against this proposal by signing my petition atnochicagobailout/Cloonen or by calling my office at 815-939-1983.
Last year, I was able to help secure nearly $200 million in new school funding. I will continue to be a strong voice for reform, and I will fight to bring more attention and resources to our schools. Thank you for your help in this important effort.
I read state Rep. Kate Cloonen’s letter to the editor in Wednesday’s edition of The Herald-News with great surprise. As the primary sponsor behind legislation that would have provided Chicago Public Schools with the financial flexibility, oversight and accountability to begin earning back the trust of the taxpayers, I find her assertions devoid of facts.
To be clear, Gov. Bruce Rauner has not proposed a bailout. Our proposals encompass the same mandated financial oversight and elected school board requirements that every other school in Illinois adheres to, except Chicago. In addition, given their dire financial situation, Gov. Rauner suggested allowing Chicago Public Schools to explore financial options similar to those encompassed by municipal bankruptcy.
None of these proposals would cost Illinois taxpayers a dime.
Compare this with the demands of Rep. Cloonen, Mayor Rahm Emanuel, House Speaker Michael Madigan and Senate President John Cullerton, who all now have publicly rejected the governor’s call to protect Illinois taxpayers from Chicago’s relentless demands. Cullerton went so far as to call on Illinois Democrats to hold hostage the upcoming K-12 education budget until Chicago schools receive $500 million in additional dollars, with no strings attached.
Where’s Rep. Cloonen’s call to reject Sen. Cullerton’s proposal? I highly doubt we’ll ever see it – because, at the end of the day, she stands with them in their efforts to bail out Chicago schools.
Ron Sandack
R-Downers Grove, state representative, 81st District
“The governor’s plan to divert resources and needed funding away from the Illinois Valley and funnel it into Chicago’s failed system is a mistake,” [Rep. Andy Skoog (D-La Salle)] explained in a release issued Thursday. “I am against Gov. Rauner’s ill-advised plan and will vote against it. The taxpayers I represent shouldn’t be on the hook for Chicago’s decades of mismanagement. […]
“At a time when the bills at the veteran’s home in La Salle are not being paid, when seniors are facing the loss of in-home care services and home-delivered meals, when my constituents with disabilities are not receiving the funding that the state has promised, and when college students are trying to figure out if they’ll be able to afford their next semester classes, the idea of asking taxpayers in my district to bailout Chicago is ridiculous.”
In a response to efforts being made by Chicago politicians to bailout Chicago Public Schools, CPS, State Rep. Brandon Phelps, D-Harrisburg, said Feb. 16 that he was launching a petition drive to garner community support for his efforts to oppose any type of Chicago bailout.
“It is frustrating that as soon as Chicago cries for help because they messed up their own finances that Southern Illinois is expected to pick up the pieces and bailout them out,” Phelps said in a news release.
“The money earned by hard-working residents here in Southern Illinois should stay here and not be sent up to Chicago bureaucrats who are just trying to line their pockets.”
Recently Governor Rauner announced his plan for the state to bailout the failing Chicago Public School (CPS) system, a move being criticized by state Rep. Dan Beiser, D-Alton.
“Bailing out the Chicago Public School system is a terrible idea, especially when we have so many other problems with our state budget and our schools are in need of greater investment,” said Beiser. “I have long stood against the idea of Chicago getting an automatic cut of school funding while downstate schools are hurting. I object to the governor’s idea to put local taxpayers on the hook for Chicago’s fiscal mismanagement.”
Beiser voiced his frustration that Governor Rauner is focusing on a CPS bailout, rather than addressing the budget crisis impacting all corners of the state.
The governor is in the Metro East today, so I expect he’ll be asked about this since it’s become such a bone of contention. Rauner’s legislation prohibits extra state money from going to the city, but I doubt anyone who already doesn’t like Rauner would believe that would be the end result.
* In reality, both sides are stirring up their bases with Chicago bashing to further their own causes. The tragedy is they wouldn’t be doing it if it didn’t work. But the “I hate Chicago” game has worked for generations in this state.
* Greg Hinz on Cook County Commissioner Chuy Garcia’s endorsement of Speaker Madigan…
In a subsequent phone interview, Garcia said Rauner “has brought different types of Democrats together by insisting on pro-business, anti-union changes before enacting a needed tax hike.
“Madigan asked me to endorse,” Garcia added. “I thought about it for quite awhile. I decided to do it…There were no quid pro quos.” […]
“There were a variety of political and policy agreements,” says one source who should know. Garcia has been unable to round up the votes on the County Board to succeed County Clerk David Orr if he resigns, but Madigan can get them, says another.
Orr, in a phone call, termed it “all rumors.” But he didn’t totally deny that something may be afoot. […]
Other sources are hinting that the Chicago Teachers Union played yenta. Labor and Madigan are extremely close at the moment, and CTU and other teachers unions were the biggest financial backers of Garcia’s bid for mayor.
It’s probably all of the above, including the county clerk thing.
* Madigan has “evolved” from a traditional white etnick social conservative to forcefully supporting progressive ideals like gay marriage. He put the millionaire’s tax and minimum wage hike on the 2014 ballot (although he hasn’t yet advanced either plan in his chamber). And the white, South Side Irish-American even backed last year’s police reforms.
* The CTU, which convinced Garcia to run for mayor, is under siege and has moved closer to Madigan than at any time since Dave Peterson was alive. Check out the yard signs that Madigan’s campaign is using…
* And, of course, Bruce Rauner has managed to send the various wings of the usually fractious Democratic coalition into Madigan’s outstretched arms. Rightly or wrongly, they view Madigan as the only one with the fortitude to consistently thumb his nose at Rauner, IllinoisGO and the Tribune editorial board.
When everyone from liberal darling Rep. Will Guzzardi (who was harshly bashed by Madigan both times he attempted to unseat Toni Berrios), to Sen. Emil Jones III (whose father fought innumerable battles royale with Madigan for years), to Commissioner Chuy Garcia, to Mayor Rahm Emanuel are all defending Madigan and attacking Rauner in unison, there’s more going on here than many would have you believe.
They’re not all “in the tank.” Many realize they’re at war, and they don’t want to lose.
“I’m a private detective in Schaumburg and I have been developing information on Jason Gonzales over the last few months. I saw your article. Nice work. Can we talk?”
That note from a Bensenville police officer who doubles as a private eye popped up in my inbox after I reported on Gonzales’ 2015 pardon on several theft and forgery convictions from the early 1990s. Gonzales, an Elgin native who went on to get master’s degrees from the Massachusetts Institute of Technology and Harvard, is running against powerful Illinois House Speaker Michael Madigan in the March 15 Democratic primary in the predominantly Hispanic 22nd District.
David Ratkovich, president of ETS Intelligence, told me he was paid about $5,000 to compile a dossier on Gonzales by someone who wanted to vet the candidate before dropping big bucks into his campaign.
Who paid? Ratkovich won’t tell — other than to say it’s not Madigan. A quick look at Gonzales’ war chest shows roughly $48,000 in donations this year, on top of $48,840 collected in 2015. A number of those donations are from investors and venture capitalists who also support GOP Gov. Bruce Rauner.
I’m not saying it’s him, but Gonzales’ biggest contributor so far has been former Democratic US Senate candidate and kabillionaire Blair Hull.
Thursday, Feb 25, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Since 1925, Valley Construction has been a family-owned business serving the Quad Cities and Illinois. I am proud of the legacy that my grandfather began building 90 years ago, and proud of the 250 men and women of Valley Construction who work every day to continue that legacy.
For decades, we have done a lot of work at the six nuclear energy plants around Illinois. Some of these plants could close soon and I am deeply concerned about the severe impact that will have on my business and my workers.
A State of Illinois report found that if these plants close, it could cost us $1.8 billion in lost economic activity and 8,000 jobs, many of which are highly skilled, good paying jobs. I can’t afford that and Illinois can’t afford that.
That is why I encourage our state legislators to adopt energy policy reform legislation the would help preserve our state’s nuclear plants. This is crucial to our state’s economic health and thousands of small businesses like mine.
Recently, State Representative Ken Dunkin held a press conference boasting his plan to save Chicago State University (CSU) and several other state universities from financial collapse. What Representative Dunkin failed to mention is how seniors, people facing foreclosures, human services and LIHEAP would all fall victim to fund sweeps tied to funding his legislation. Senator Emil Jones III, Chairman of the Senate Black Caucus introduced Senate Bill 2272, which funds CSU without evoking harm to some of our most vulnerable citizens like Rep. Dunkin’s bill would cause.
Below is Senator Jones’ statement:
“The legislation that my colleague and good friend Ken Dunkin is proposing comes with a few strings attached. Ken’s bill is funded by a separate demand from the governor and Republicans in the form of Senate Bill 3044, which steals funds from LIHEAP, the Human Services fund, foreclosure prevention programs, money for our crumbling schools and a fund that provides long-term care for seniors.
“So sometimes, the things our ‘allies’ suggest aren’t really what they seem to be. Legislation I am sponsoring spends tax money we have collected and hasn’t been spent to fund CSU. On a side note, I would like to applaud CSU’s students and faculty for their poise and willingness to make adjustments while the governor, his allies and Republicans play politics with your futures. Back to Ken, let’s get on the same page and pass my bill that solves problems and doesn’t create them.”
Appropriates $25,000,000 from the Education Assistance Fund to the Board of Trustees of Chicago State University for ordinary and contingent expenses. Provides that the appropriation authority is valid for costs incurred from July 1, 2015 through June 30, 2016. Effective immediately.
The Education Assistance Fund, which is used for both elementary - secondary and higher education, receives a share of income tax revenue as well as proceeds from riverboat gambling.
Very interesting move, especially since the Senate Black Caucus has never been much of a Madigan support group (to say the least).
* Gov. Rauner indicated yesterday that he could support the Dunkin bill, but the Tribune’s Kim Geiger takes a look at the embattled legislator’s higher ed bailout proposal…
“I’ve got to understand that bill a little better but that’s a way, but then we’ll have the money, and I could support that,” Rauner said.
Technically, the state doesn’t have the money. Dunkin’s bill relies on an accounting gimmick that allows the state not to pay back dollars that were borrowed last year from special state accounts. Rauner’s administration borrowed the $454 million last year at the start of the budget impasse to have cash on hand to help get the state through the stalemate. The money is required to be paid back by the end of the year, making it a liability on the state’s books. Dunkin’s bill would only take effect if a separate bill is approved that allows the state to never pay that money back.
In effect, Dunkin’s bill spends money that’s already been spent. Rauner, meanwhile, has been defending his decision to veto a bill that would have funded tuition grants for college students, saying the General Assembly has to stop trying to spend money it doesn’t have.
“I’m open to whatever works, but we’ve got to spend money that we have,” Rauner said Wednesday. “We’ve got to stop trying to spend money that we don’t have.”
She’s right and so is Sen. Jones. The money was borrowed just before the end of last fiscal year (15) and was intended to be used this fiscal year (16) to get through tight times, but isn’t scheduled to be paid back until next fiscal year (17), when more money comes in. Gov. Rauner’s proposed budget would “forgive” that debt, but not until next fiscal year (17).
*** UPDATE 1 *** From a senior administration official…
GOMB has reviewed the proposal and believes it would not result in any service or program disruptions or reductions. That is why GOMB felt comfortable making that proposal in the FY17 budget. This is quite obviously opposition driven by politics rather than what’s best for public universities and community colleges in crisis.
Well, that last sentence is surely correct, on both sides.
And if there’s $200 million in extra money laying around, perhaps the governor shouldn’t have vetoed the MAP grant bill and kept the actual spending to that amount, which he has the power to do.
*** UPDATE 2 *** The complete list of special funds that were swept last year and were supposed to be repaid next fiscal year is here. Bunch of sacred cows in there.
* This ad was recorded off a friend’s TV set with a mobile phone, so it’s kinda blurry. But it is a very hard-hitting spot, running on expensive network TV and paid for by Democrat Juliana Stratton’s campaign…
* Script…
TEXT: Do we really know Ken Dunkin?
WOMAN 1: The history of violence and menacing criminal behavior towards women.
WOMAN 2: Found guilty of battery.
MALE KID: Voted to allow people to carry loaded guns on our streets.
WOMAN 3: Failed to pay child support.
FEMALE KID: Voted with Republicans to cut child care for thousands of kids.
WOMAN 1: Tried to weaken punishment for sex offenders.
WOMAN 4: Violated protection orders.
FEMALE KID: So why is he still in charge?
TEXT: Say no to Ken Dunkin.
* Meanwhile, Rep. Dunkin held a press conference today to call on the House to pass his higher education bailout bill that we discussed yesterday.
Rep. Dunkin noted that Gov. Rauner said today he would sign the bill and said “all” House Republicans have committed to voting for it. He said 47 House members have agreed to vote for it, which would apparently be all Republicans and himself.
I don’t know why Garcia did this, other than his stated Rauner angle, but he’s never been a sellout.
…Adding… From an experienced commenter…
That’s been the rumor, he wants to replace Orr. I didn’t put a lot of faith in the rumor but it’s been repeated often, in particular in reference to some of the latino politics currently at play which is supposed to involve some jockeying to then take Garcia’s seat. Thinking about future weighted vote could explain at least one heated committeeman’s race.
OK, so maybe Ed’s right.
…Adding More… The full press release…
Cook County Commissioner Jesus “Chuy” Garcia (7th) is endorsing Illinois House Speaker Michael J. Madigan for re-election, Madigan announced Wednesday.
“Now more than ever, local families need Michael Madigan in the State Capitol fighting for them,” Garcia said. “Under Republican Governor Bruce Rauner, families are facing unprecedented attacks on their financial security, students are under threat that their schools will close, and elderly residents are unable to get the medical care they need. Governor Rauner has failed to put the needs of our families ahead of his own personal agenda, which in itself is an attack on the middle class. Michael Madigan has stood up against Governor Rauner’s dangerous agenda that endangers our local families and families across Illinois.”
“I’m honored to receive Commissioner Garcia’s support and proud to work with him to strengthen our neighborhoods and protect our families and what we have worked hard to build,” Madigan said. “At the very heart of that goal is fighting against reckless agendas aimed at driving down the wages of the middle class and struggling families and weakening their standard of living, and fighting against dangerous plans that hold up funding for critical programs that our families depend on, like medical care services for the elderly, breast cancer screenings for women at risk, and affordable child care.”
“Michael Madigan continues providing the strong leadership that our neighborhoods need to succeed and thrive,” Garcia said. “He has been a progressive leader on issues of citizenship, parent mentoring, battling predatory lenders that have forced families into foreclosure, voter protections, and better funding for our schools.”
The Illinois Republican Party is hoping to profit from the March 15 presidential primary by holding a fundraising dinner in honor of Gov. Bruce Rauner on the Friday before Election Day.
Already, Texas Sen. Ted Cruz has confirmed he’ll be there, and all of the current GOP presidential contenders, including Donald Trump and Sen. Marco Rubio, have been invited to the reception and dinner at the Palmer House Hilton. Even some of the former Republican presidential candidates have been asked to attend.
Tickets for the event start at $500 per person and go up to $40,000 to serve as a “Gold Sponsor,” which includes two tables of 10 with a photo opportunity and a one-year membership in the “Governor’s Council.”
* The Question: Your best guess for the benefit(s) received for serving on the “Governor’s Council”?
Illinois ranks in the middle of the pack on things like these…
29 - AFFORDABLE AND AVAILABLE HOUSING Illinois had 62 apartments or other units that were affordable and available for every 100 renter households with very low incomes in 2014. Very low-income households are those with incomes at or below half of median income in the metropolitan or other area where they live.
27 - CHILD POVERTY RATE: 19.9 percent of children under age 18 in related families in Illinois had incomes below the poverty line in 2014.
25 - POVERTY RATE: 14.4 percent of people in Illinois had incomes below the poverty line—about $24,000 for a family of four—in 2014.
25 - GENDER WAGE GAP Among full-time, year-round workers in Illinois in 2014, women’s median earnings were 79.2 percent of men’s median earnings.
23 - HIGH SCHOOL GRADUATION RATE: 83 percent of high school students in Illinois graduated on time at the end of the 2012–13 school year.
23 - DISCONNECTED YOUTH: 15 percent of youth ages 18 to 24 in Illinois who were not in school or working in 2013
23 - LACK OF HEALTH INSURANCE COVERAGE: 19.8 percent of people under age 65 and below 138 percent of the poverty line in Illinois did not have health insurance at any time in 2014.
22 - TEEN BIRTH RATE There were 24.6 births per 1,000 women ages 15 to 19 in 2013 in Illinois.
20 - CHILDREN LIVING APART FROM PARENTS: 5 children in Illinois lived in foster care for every 1,000 children under age 18 in 2013.
20 - UNEMPLOYMENT INSURANCE COVERAGE: 29.9 percent of unemployed workers in Illinois were helped by unemployment insurance in 2014
44 - UNEMPLOYMENT RATE: 7.1 percent of all workers in Illinois were unemployed in 2014
* I was kinda surprised at how high we ranked on this…
13 - SAVINGS AND ASSETS: 5.3 percent of households in Illinois used high-cost, high-risk forms of credit to make ends meet during 2013. This includes payday loans, automobile title loans, refund anticipation loans, rent to own, and pawning.
Illinois’s quest to take over Chicago’s schools intensified as Governor Bruce Rauner said the state can block the district from borrowing in the municipal-bond market, a claim the nation’s third-largest school system rejects. […]
The district said the state doesn’t have the power to keep it from borrowing, as Rauner claimed.
“The governor has come up with a number of novel legal theories,” Forrest Claypool, chief executive officer of the district, said in comments aired Monday on Chicago Tonight, a public-television show. “The statute is very clear that the authority he seeks to exercise does not apply to the Chicago public schools.” […]
Rauner’s administration said the statute that the district cited, which established a school finance authority that was dissolved in 2010, no longer applies. “That applied only when the reform board existed, which it no longer does,” said Catherine Kelly, a spokeswoman for Rauner. “CPS can be required to develop a financial plan and would be prohibited from issuing bonds during that period.”
* Backgrounder from the governor’s office, with emphasis in the original…
The Chicago School Finance Authority was enacted to provide financial oversight to CPS, but was legally dissolved by law on June 1, 2010. On that date, CPS was no longer “subject to” the School Finance Authority or Article 34A that established the School Finance Authority. CPS clearly remains subject to Article 34 and as a result, ISBE is now the body that maintains financial oversight over CPS.
Section 1A-8 of the School Code sets out a test for when a school district is in “financial difficulty”. That provision applies to CPS. Section 1A-8 states, in part:
No school district shall be certified by the State Board of Education to be in financial difficulty solely by reason of any of the above circumstances arising as a result of (i) the failure of the county to make any distribution of property tax money due the district at the time such distribution is due or (ii) the failure of this State to make timely payments of general State aid or any of the mandated categoricals; or if the district clearly demonstrates to the satisfaction of the State Board of Education at the time of its determination that such condition no longer exists. If the State Board of Education certifies that a district in a city with 500,000 inhabitants or more is in financial difficulty, the State Board shall so notify the Governor and the Mayor of the city in which the district is located. The State Board of Education may require school districts certified in financial difficulty, except those districts subject to Article 34A, to develop, adopt and submit a financial plan within 45 days after certification of financial difficulty. The financial plan shall be developed according to guidelines presented to the district by the State Board of Education within 14 days of certification. Such guidelines shall address the specific nature of each district’s financial difficulties. Any proposed budget of the district shall be consistent with the financial plan submitted to and approved by the State Board of Education.
A district certified to be in financial difficulty, other than a district subject to Article 34A, shall report to the State Board of Education at such times and in such manner as the State Board may direct, concerning the district’s compliance with each financial plan. The State Board may review the district’s operations, obtain budgetary data and financial statements, require the district to produce reports, and have access to any other information in the possession of the district that it deems relevant. The State Board may issue recommendations or directives within its powers to the district to assist in compliance with the financial plan. The district shall produce such budgetary data, financial statements, reports and other information and comply with such directives. If the State Board of Education determines that a district has failed to comply with its financial plan, the State Board of Education may rescind approval of the plan and appoint a Financial Oversight Panel for the district as provided in Section 1B-4. This action shall be taken only after the district has been given notice and an opportunity to appear before the State Board of Education to discuss its failure to comply with its financial plan.
No bonds, notes, teachers orders, tax anticipation warrants or other evidences of indebtedness shall be issued or sold by a school district or be legally binding upon or enforceable against a local board of education of a district certified to be in financial difficulty unless and until the financial plan required under this Section has been approved by the State Board of Education.
* And this is from CPS…
CPS welcomes the Governor’s request for additional information on the District’s finances, and will share information – much of which is already publicly available – in coming days.
· In fact, in order to sell bonds last month – which CPS did in spite of the Governor’s best efforts – CPS was required to post an extensive disclosure document that provided a true and accurate picture of its current financial situation.
· Multiple provisions in the School Code expressly contain definitions that make it clear that this doesn’t apply to CPS.
o First, CPS is subject to Article 34A in state statute.
§ While Governor Rauner’s office distributed language from Section 1A-8 of the Illinois School Code, his office failed to note that districts subject to 34A are explicitly excluded from the excerpts that they distributed.
§ Section 1A-8 of the School Code explicitly lays out the only actions the state can take in the case of a District in financial difficulty. In Section 1A-8(a), ISBE can collect relevant financial information. In Section 1A-8(b), the statute allows ISBE to make a determination about the districts’ financial conditions. In the case of districts in financial difficulty, in cities with more than 500,000 inhabitants, statute permits IBSE only to notify the Governor and Mayor of the city.
§ ISBE’s ability to take additional actions applies only to districts that are not subject to Article 34A.
o Second, CPS is clearly defined as a district in a City with over 500,000 inhabitants (Article 34).
§ The statutory language the Governor’s office shared references actions to be taken as provided in Section 1B-4, which explicitly concerns only districts in cities with 500,000 or fewer inhabitants.
If the State Board of Education certifies that a district in a city with 500,000 inhabitants or more is in financial difficulty, the State Board shall so notify the Governor and the Mayor of the city in which the district is located. The State Board of Education may require school districts certified in financial difficulty, except those districts subject to Article 34A, to develop, adopt and submit a financial plan within 45 days after certification of financial difficulty.
* Just about everything everywhere else in the School Code delineates between school districts in cities over 500,000 and everywhere else. For instance, from the governor’s backgrounder…
the State Board of Education may rescind approval of the plan and appoint a Financial Oversight Panel for the district as provided in Section 1B-4
But, as CPS points out, if you go to 1B-4 the statute clearly gives controlling authority to 1A-8, which brings us back to this…
If the State Board of Education certifies that a district in a city with 500,000 inhabitants or more is in financial difficulty, the State Board shall so notify the Governor and the Mayor of the city in which the district is located. The State Board of Education may require school districts certified in financial difficulty, except those districts subject to Article 34A, to develop, adopt and submit a financial plan within 45 days after certification of financial difficulty.
And, of course, much, but not all of 34A was repealed.
* I think CPS makes a good point. However, this one’s gonna end up with the lawyers and a judge if Rauner decides to push it.
You may not see children sleeping under bridges or asking for a spare dollar on the street, but homeless children are out there. In Illinois, public schools reported more than 59,000 homeless children in the 2013-2014 school year, and nearly half of them are out on their own.
Those kids now have one less safe place to stay because of the state budget impasse.
Normally housing four kids at a time, rooms inside the Mahoney Transitional Living facility now sit empty. Kerie Moore at the Family Counseling Center says she was supervising the shelter but, without the funds blocked by the budget impasse, this once-busy house is now quiet. It was forced to close last week.
“It’s just something that is desperately needed in this area and, right now, it’s just without resources,” Moore said.
* Meanwhile, from the Chicago Coalition for the Homeless…
After promising to consider legislation that would immediately fund services to homeless youth, Gov. Rauner, through his policy director, told CCH, youth, and providers on Tuesday afternoon that his office would not support the bills at this time.
The governor met personally with homeless youth on Friday to hear the stories of how the state-funded programs had changed their lives, helping them gain employment and get stably housed. Caprice Williams, 22, said closing the program would be like losing the only family she and her infant daughter have.
“Ninety-percent of the funding contained in HB 4955 and SB 2603 is sitting in dedicated funds that are building up as real estate and foreclosure-related fees are collected,” said Julie Dworkin, director of policy for the Chicago Coalition for the Homeless. “We can’t understand why the governor would choose to let these funds sit there while homeless youth are going to end up back on the streets.”
The governor’s office agreed to support one small portion of the bill that would release federal funding for affordable housing development. While that is a positive step, it will do nothing to help service providers that are in danger of closing after not being paid for eight months.
Last week, one of the state’s homeless youth providers could no longer float the state and had to shut down its six-bed transitional housing program, leaving seven southern Illinois counties with no housing options for homeless youth. Two other programs have run out of money to pay rent on apartments that house the youth in their programs.
Homeless youth and providers vowed to keep fighting for the release of funding for their programs.
Rauner was asked about this today and he said it was “ridiculous” that the state doesn’t have a budget - even though most of this cash is apparently sitting in special state funds. Ripe for a sweep, I suppose.
Rauner also said he was a “huge” contributor to homeless causes. “I’ve put a lot of money of my own to help homeless veterans.”
* With three, long weeks to go before primary day, one wonders what other shoes are gonna drop in this race. Man, this is one brutal spot…
* Script…
Sen. Sam McCann is falling apart. First he got caught evading his taxes, dodging nearly 200 grand, forcing the state to dissolve his business. Then McCann was taken to court three times for unpaid credit card debt. Now we learn McCann used campaign money as a personal slush fund, cashing in over 80 grand in potentially fraudulent mileage reimbursements. A politician who makes the law, then breaks the law. That’s sleazy Sam McCann
Oy.
…Adding… From comments…
Win or lose this race…Rauner crew wins. Which legislator is going to step out of line now, if it means having this sort of stuff dumped on your head?
The Kirk For Senate campaign launched its first television ad of 2016, titled “Security.” The ad highlights the growing threat of ISIS and the stark national security contrast between Senator Mark Kirk and Rep. Tammy Duckworth. The statewide ad buy begins today.
Statement from Kirk For Senate Campaign Manager Kevin Artl:
“Rep. Duckworth’s delusions on national security endanger Americans. Rep. Duckworth has repeatedly ignored reports that ISIS is printing fake Syrian passports and that terrorist plotters have already been arrested on U.S. soil posing as refugees. Her calls for allowing 200,000 Syrian refugees into the United States, despite grave concerns from our nation’s top security advisers about the vetting process, prove once again she is naive and reckless.”
The terrorists referred to above were Iraqis who were plotting an attack in Iraq, not the US.
* Whatevs. Kirk needs to shore up his name ID, which is low, and his GOP primary support, which could be better. I also agree with much of this [slightly altered by me] e-mail from a Democratic pal…
Looking at his buy (which essentially matches and in some places exceeds Duckworth’s) this looks like an attempt to keep Duckworth’s numbers in some check to make sure there’s no post-primary polls that show this out of reach. If Duckworth has airwaves to herself with positives, she might build a 10-15 point lead…and everyone would decide he’s toast. He’s got to keep it close.
But it’s also interesting that they’re spending so much. They’ve been telling everyone that they’re going to have that big post-primary COH advantage because of Duckworth’s ‘messy’ primary… And yet he may spend more than she does. Too bad for them Zopp is such a disaster
AUDIO OF DUCKWORTH: I signed on for 200,000 Refugees. (:02)
TEXT: Tammy Duckworth Supports Bringing 200,000 Syrian Refugees to America.
AUDIO: Even though the FBI says there’s no way to guarantee they aren’t terrorists.
TEXT: 15 Refugees Involved in Terror-Related Cases.
AUDIO: Mark Kirk is leading the fight to stop refugees until it can be done safely.
TEXT: Mark Kirk, Stop Syrian Refugees Until It Can Be Done Safely
AUDIO: Who do you trust to protect your family? Mark Kirk
AUDIO OF KIRK: I’m Mark Kirk and I approved this message.
*** UPDATE *** Response…
Senator Mark Kirk, routinely labeled the most endangered incumbent U.S. Senator, is out today with an incredibly dishonest new campaign ad attacking Tammy Duckworth. The ad is virtually identical to one his campaign aired in December, and which fact-checkers referred to as ‘bogus,’ ‘exaggerated,’ and something for which Kirk ‘[s]hould be ashamed.’
In response, Duckworth campaign spokesman Matt McGrath issued the following statement:
“First, Senator Kirk didn’t tell the truth about his military record, now he’s not telling the truth about Tammy Duckworth. The last time Kirk ran an ad like this independent fact checkers said the attacks were false, and they saw it for what it was: shameful and deceptive fear-mongering. But let’s be clear: this issue speaks to a real difference in this campaign: Tammy Duckworth believes in leading through strength and not fear, and that America is safest when we stand firmly by our values. Kirk is once again resorting to dishonesty and the lowest common denominator to paper over his record of being wrong about every major foreign policy decision of the last 15 years, and now he’s all too willing to embrace the odious, anti-Muslim politics and tactics of Donald Trump, which make us less safe.
“At any rate, all you need to know about Kirk’s campaign and his standing with Illinois voters is that his first ad of 2016 is an attack on Tammy Duckworth — and a totally dishonest one at that. It’s an unfortunate and undignified path for Senator Kirk to pursue, regardless of his desperate political situation.” — Matt McGrath, campaign spokesman
In much of the district, Madigan remains familiar and popular and, he intends to stay. The block outside Gonzales’ Pulaski Avenue office just became a no parking zone until 3/16, the day after the election. Coincidence? Gonzales thinks not.
“He’ll do anything, absolutely anything in his power to get reelected,” Gonzales said.
Gonzales admits accepting major money from donors who also support Governor Bruce Rauner, but he insists, he’s a Democrat through and through, not a Republican plant.
Madigan’s district is about 70 percent Hispanic, which may help Gonzales. Still, he knows who the underdog is…and it’s him.
* The Illinois Municipal League released its legislative wish list yesterday…
Automatic Appropriation Authority for Local Funds
Expansion of Home Rule Eligibility
Constitutional Amendment to Limit Future State Mandates
Public Safety Arbitration Reform
Pension Cost Relief and Structural Reform
Opt Outs for Future Unfunded Mandates Affecting Communities With Fewer Financial Resources
Local Control Over Prevailing Wage Decisions
Workers’ Compensation Reforms
Annual State Review of Mandates
* Its main priorities…
Automatic Appropriation Authority for Local Funds
The common sense approach to managing local revenue sources (motor fuel tax, 9-1-1, use tax and gaming revenues) is to put the distribution power back into the hands of local governments - and make that a seamless approach with automatic distributions to local entities. Currently, these fund distributions are dependent upon the state budget process even though these are non-General Revenue Funds and do not affect state government budgets. “Moving Cities Forward” recommends policy reform eliminating the need for annual appropriation enactments.
Expansion of Home Rule Eligibility
Municipal leaders across the state support expanding home rule eligibility to include communities of 5,000 residents and above. The current Illinois Constitution only grants automatic home rule status to municipalities in excess of 25,000 residents, or to municipalities that pass a local home rule referendum. Currently there are 211 home rule governments in the state, and if passed, the expansion would elevate another 173 communities to home rule status.
Public Safety Arbitration Reform
Arbitrators are rendering decisions in labor disputes that compel local governments to offer wage and benefit awards that exceed available revenues. What’s needed is more transparency in the arbitration process and a requirement that those decisions be based on actual revenues available to the city. The current process has led to financial hardships on local governments including budgeting difficulties, service reductions and employee layoffs.
Local Control Over Prevailing Wage Decisions
Municipalities are in favor of locally-elected boards and councils establishing exemptions up to a certain dollar amount for which prevailing wage rates would not be required. IML supports an update to the policy to allow the opportunity to establish cost reductions for projects currently covered by the Prevailing Wage Act, as well as exemptions for certain types of work entirely.
Workers’ Compensation Reforms
Employers are already faced with ever-increasing costs for doing business, and current workers’ compensation policy has only contributed to the “It’s hard to do business in Illinois” mentality. IML members are in support of reducing employer costs by amending Permanent Partial Disability benefit payouts, lowering the number of weeks that benefits are paid for shoulder injuries by clarifying the definitions of “Man as a Whole” and requiring arbitrators and/or the Illinois Workers’ Compensation Commission (IWCC) to strictly adhere to American Medical Association (AMA) guidelines when determining permanency ratings under the Illinois Workers’ Compensation Act.
The proposed arbitration reform makes some sense and has been bandied about lately as a possible compromise on the Turnaround Agenda.
The prevailing wage stuff will need to be fleshed out much further, but it’s interesting.
And the workers’ comp ideas could also provide an avenue for discussions.
* Finke reports on the group’s top two priorities…
Brad Cole, executive director of the Illinois Municipal League, said some ideas on the list have been pushed by the IML for years and others are the outgrowth of last year’s task force on government consolidation and mandate relief. He acknowledged that some of the ideas have received a cool reception in the General Assembly in the past. […]
While saying all of the items on the agenda are important to local governments, he said two are “critically important.” One is to make state assistance to local governments a continuing appropriation so that the money owed is paid automatically, even without a budget in place. Last year, the local government share of state income, gasoline and gambling taxes was held up for months because of the budget impasse. The issue only got resolved when lawmakers passed a separate bill authorizing those payments to be made and Gov. Bruce Rauner signed it.
The other critical issue, he said, is allowing more communities in the state to become home rule, meaning local governments have the ability to pass laws to govern themselves (so long as they obey the state and federal constitutions). In Illinois, only cities with more than 25,000 residents or those who approve it by referendum can now be home-rule units. Only 211 of the state’s 1,297 cities are home rule.
The IML agenda wants any town with more than 5,000 residents to have the option of voting in home-rule powers. One town that could be affected is Chatham, whose village board president, Tom Gray, is president of the IML.
They know Rauner has been keen to sweep their revenue sharing, so the group’s number one priority is no surprise. That home-rule thing is interesting, to say the least.
To ensure integrity within any public-private partnership created in Illinois and that all ethical and transparency requirements are met, Speaker of the House Michael J. Madigan on Wednesday announced the creation of a bipartisan special House committee to review Gov. Bruce Rauner’s plan to establish a private company that will work with the Illinois Department of Commerce and Economic Opportunity to dole out state money and tax breaks to corporations.
“The formation of a public-private partnership could produce lasting benefits, but our obligation to taxpayers includes working to ensure transparency and integrity within the program,” Madigan said. “I support efforts to boost Illinois’ economy and create more good-paying jobs for middle-class and struggling families. That’s who should benefit from a public-private partnership, and the tax dollars given to any corporation should be spent wisely and with the proper oversight.”
Earlier this month, Rauner announced a plan to create a privately run economic development corporation that would partner with the state Department of Commerce and Economic Opportunity. While Rauner said the corporation would be funded with private donations, taxpayer dollars would still be at stake and DCEO would be required to approve any incentives or deals offered to companies.
Last spring, Madigan worked cooperatively with Rauner on the governor’s request to create a public-private partnership in Illinois. However, the measure failed to advance beyond passage in the House due to the governor’s opposition to Madigan’s belief that the partnership should be reviewed after three years to ensure tax dollars are spent wisely and to determine if it is functioning as intended.
Similar public-private efforts in other states have experienced problems in recent years. The Wisconsin Economic Development Corp., for example, was criticized in an audit for, among other things, not requiring financial statements from companies receiving incentives, granting awards to ineligible businesses, failing to ensure jobs had been created by companies after awarding them with nearly $1 million in tax credits, and in some cases hiring firms with conflicts of interest. In Virginia, it was reported that a public-private infrastructure project, due to a lack of transparency, led to massive cost overruns and ultimately the state halted the project, but not before taxpayers had paid the contractor $290 million for the unfinished project.
The private corporation, as proposed by the governor, would not be subject to the requirements of the Freedom of Information Act, as confirmed by DCEO director Jim Schultz. Madigan said that must change to permit greater transparency of how taxpayer dollars are being expended.
“Given what has happened in other states due to the lack of transparency and proper oversight, my belief today is the same as it was last year, and that is that a public-private partnership can be achieved, but with the proper safeguards and transparency in place,” Madigan said. “Illinois is facing unprecedented fiscal challenges, so taxpayer dollars must be used wisely and efficiently. Simply authorizing a public-private partnership without taking into consideration the controversy that has occurred in other states is not in taxpayers’ best interests.”
State Rep. Lou Lang, D-Skokie, will chair the Special Committee on Public Private Partnerships, and House Democratic members will include Reps. Chris Welch of Hillside, Will Davis of Homewood, Carol Sente of Vernon Hills, Fred Crespo of Hoffman Estates, and John Bradley of Marion. House Republicans are expected to name members to the committee.
* I have some subscriber stuff to finish, so chew on this reader e-mail for a bit…
I came home last night to find a new book in our house, “Big Bad Bruce.” I thought of our Governor, obviously, and chuckled.
But then later on I read it to my kids. Trust me, take a 15 second to look through the pages on the attached link. (“look inside” on the top left) The pictures and captions are really spot on.
If I hadn’t known any better I would think this was a parable somebody had written about our Governor and the budget stalemate (though he does turn it around after he gets a taste of his own medicine).
I read your blog post about changes to collective bargaining rights, titled “Then Do It Already.”
You correctly point out that the Governor’s proposal goes far beyond the restrictions placed on the employees of CPS as part of the School Reform Amendatory Act of 1995. However, that bill was passed by a legislature that was controlled by the Republicans. The Act not only gave the mayor of the City of Chicago complete autonomous control over CPS, but much like the turnaround agenda, it limited collective bargaining rights for teachers.
Since 1995, the Chicago Public Schools have been a complete and total financial disaster. The district didn’t make a single pension payment for a decade. They offered to pay the employee portion of the pension contribution in lieu of a salary increase (ostensibly to save money on the current operation), but then failed to make that contribution as well, exacerbating the problem. The board entered into misguided toxic rate swaps, that this year alone will cost the district over $500 million in penalties. There have been repeated instances of the board engaging in conduct that at the least is a blatant conflict of interest and at worst has been direct corruption. Finally, despite the wishes of the citizens, students, parents, and taxpayers, CPS has gone a binge of Charter School Expansion, closing neighborhood schools and creating sweetheart deals for questionable operators like UNO, without any evidence of improvement. In fact, while the overall performance of CPS has improved, the district has merely kept pace with the rest of the country. Unfortunately, the gains in academic performance have only been realized by white students. The academic achievement of blacks and latinos has been stagnant and in some cases worse.
Today the governor calls for the passage of the turnaround agenda. But here’s the thing: In 1995, the legislature passed the turnaround agenda for Chicago Public Schools. Despite the authoritarian control over the finances and operations, and the restrictions placed on collective bargaining rights, CPS has been an unmitigated disaster. If he truly believes that his agenda will improve our state, he really should come up with a better example.
Rob Martwick
OK, but the Democrats never withdrew those exemptions during their years of control and they allowed CPS to get out of making those pension payments.
* On a related note, Rep. Martwick’s legislation to elect Chicago’s school board recently passed committee on a partisan roll call. It now moves to the floor.
In an interview in October 2010, then-Senate Minority Leader Mitch McConnell, R-Ky., made what would become one of the most repeated (and embellished) quotes of the Barack Obama presidency.
“The single most important thing we want to achieve is for President Obama to be a one-term president,” McConnell, now the Senate majority leader, told the National Journal.
As the Washington Post explained in fall 2012, McConnell’s words and the date they were spoken often have been inaccurately represented in the years since, generally by Democrats eager to present evidence of unyielding partisan opposition to Obama’s every move.
But as the Illinois state budget battle kicked into high gear last summer and fall, I’ve heard references to McConnell’s famous quote in a different context. This time it was invoked in defense of a Republican — Gov. Bruce Rauner — who has had limited success with a Democrat-led Legislature.
The logic was along these lines: How can Democrats excoriate a Republican Congress for not bending to the wishes of President Obama while at the same time applauding a Democratic Illinois General Assembly for not cooperating on Rauner’s reform agenda?
The question ignores one fundamental nuance in the Illinois debate, where the gridlock comes from Democrats opposing Rauner’s use of reforms as leverage for negotiating a budget. House Speaker Michael Madigan has stated, ad nauseum, his pledge to work “professionally and cooperatively” with Rauner on the budget, but only if Rauner leaves his reform agenda for another day. To a lot of Illinois Republicans, that position misses the entire point of Rauner’s argument. It’s the Illinois equivalent of McConnell’s “single most important thing” quote.
* The Question: Is Rauner getting the Obama treatment? Take the poll and then explain your answer in comments, please.
* The Democratic results match up somewhat closely with the poll we discussed the other day. And Sen. Kirk’s gonna win his primary, but check out the large number of undecideds and the high number of folks who don’t know enough about him to rate him after over 5 years in office. The GOP base isn’t totally in love with him…
Republican Senator Mark Kirk and Democratic U.S. Representative Tammy Duckworth are the clear early leaders in Illinois’ upcoming March 15 primary to be their party’s nominee for the U.S. Senate seat currently held by Kirk, according to a poll by the Paul Simon Public Policy Institute at Southern Illinois University Carbondale.
Both Republicans and Democrats feature contested primaries for their nominations, and the November Illinois contest is widely regarded to be one of the most competitive and pivotal contests in the fierce national battle for majority control of the U.S. Senate.
REPUBLICANS
• In the GOP race, Kirk is being challenged for re-nomination by Oswego business owner and conservative, James Marter. The poll found that 53 percent of likely Republican primary voters said they would vote for Kirk, compared to 14 percent who said they were for Marter. This left one-third, or 33 percent, who were still undecided.
The sample of 306 Republicans was part of a statewide poll of 1,000 registered voters taken Feb. 15-20. The Republican sample has a margin of error of 5.6 percent.
DEMOCRATS
• U.S. Rep. Tammy Duckworth from suburban Chicago is the leader, with 52 percent of self-identified Democratic primary voters, compared with 6 percent who said they would vote for Andrea Zopp, head of the Chicago Urban League, and 4 percent who said they would vote for Illinois State Sen. Napoleon Harris of Harvey. The remaining 37 percent said they were still undecided in this race.
The sample of 1,000 Illinois registered voters contained 422 who said they would vote in the Democratic primary and those findings have a margin of error of 4.7 percent.
“These results provide just a snapshot of public opinion in Illinois at this juncture, but it is a good indicator of where the races stand with three weeks to go before the vote,” said John S. Jackson, a visiting professor at the Institute and one of the designers of the poll. “Sen. Kirk and Rep. Duckworth were widely considered to be their parties’ leading candidates for the nomination, and so far they are living up to those expectations.”
U.S. SENATOR JOB APPROVALS
The poll asked all respondents how they felt about the state’s two U.S. Senators, Republican Mark Kirk and Democrat Dick Durbin.
There were 39 percent of the total sample of 1,000 who approved of the job Kirk is doing, while 31 percent disapproved. There were 25 percent who said they did not know and 5 percent who said they neither approved nor disapproved.
Durbin won approval from 51 percent for the job he is doing. There were 34 percent who disapproved. Only 12 percent said they did not know what kind of job Durbin was doing, and 4 percent neither approved nor disapproved.
Jackson said “these results indicate that Sen. Kirk does have his critics, and that there is an unusually large number who say they do not know what kind of job he is doing. This is probably indicative of why he is being challenged in his own party.”
* I heard yesterday that Reps. Ken Dunkin and Reggie Phillips were working on a bill to help ease the “squeeze” on higher education, but I couldn’t get anyone to respond. Here’s their bill…
Appropriates $160,000,000 from the General Revenue Fund to the Board of Higher Education for emergency assistance to public universities. Appropriates $40,000,000 from the General Revenue Fund to the Illinois Community College Board for emergency assistance to community colleges. Effective immediately, but does not take effect at all unless Senate Bill 3044 of the 99th General Assembly becomes law.
SB 3044 would “forgive” $450 million in special funds borrowing the state did at the very end of Fiscal Year 2015.
* That’s a truly “odd couple” of sponsors, but Chicago State University and Eastern Illinois University are in the worst trouble of all the state’s public universities. So, it makes perfect sense, particularly since both men have primary opponents.
*** UPDATE *** I’ve asked for responses from the governor’s office and all four leaders. Here’s Leader Jim Durkin…
“These two bills should be given a fair hearing and awarded an up or down vote. These initiatives actually have money attached for Higher Education unlike the insincere bill regarding MAP the Governor rightfully vetoed.”
* I’m not sure if y’all noticed this, but by design today I have outlined several ways of ending this impasse…
* Workers’ comp: Call Madigan’s bluff and accept language on insurance company rates and roll back the 7.5 percent increase in PPD rates or implement some of the AMA’s guidelines.
* Local collective bargaining: Call Madigan’s bluff and give all schools the same bargaining exemptions that Madigan has already given Chicago, and leave it at that.
* Higher education funding: Use the impasse to force the universities to the bargaining table in order to extract real and lasting spending reforms, but get that process moving before the schools collapse.
* K-12 funding reform: Jim Edgar first secured Democratic votes for his education funding revamp and then used that to push conservative Republicans into accepting a bipartisan compromise - which is exactly the opposite of Rauner’s approach that is doomed to failure because he simply doesn’t have enough votes to move anything forward.
* Tone: Don’t be like The Donald, because, trust me, that comparison is coming as the March 15th primary nears.
* In addition, there’s no real need to demand remap reform as a condition of negotiating the budget because a well-funded, highly organized effort is already underway to put the issue on the ballot this November.
* That leaves term limits. If he got everything else, I don’t see any reason to hold up the budget for term limits. Convince the Senate to vote on it and be done with it.
* There’s also tort reform. The governor rarely talks about that topic, so maybe he doesn’t really care. I don’t know. But there has to be an idea out there somewhere.
“And what some people say to me, ‘Well, you’re just trying to strip away collective bargaining.’ No, I’m not. I just want to do what Chicago has done, and Massachusetts has done and others. When it’s necessary to protect taxpayers, give the ability for you in each community to take something out of collective bargaining if it’s necessary.
“Chicago has done this for years. And when the Democratic super-majority says to me, ‘Governor, you’ve proposed that, that’s a violation of our core beliefs.’
“Well that’s baloney.
“You’ve done it for Chicago for years. You’ve taken school day out of collective bargaining. Length of school year out of collective bargaining. Outside contracting out of collective bargaining. And right now the mayor has asked that the teachers’ pension contribution get taken out of collective bargaining.
“Why does Chicago get that and Springfield doesn’t get that? Decatur doesn’t get that. Peoria doesn’t get that. What’s, what’s going on? It’s not fair. We should treat everybody the same in Illinois.”
This is a great argument. It is unfair for Chicago to have these exemptions that nobody else has.
(a) A public employer and a labor organization may not bargain over, and no collective bargaining agreement entered into, renewed, or extended on or after the effective date of this amendatory Act of the 99th General Assembly may include, provisions related to the following prohibited subjects of collective bargaining:
(1) Employee pensions, including the impact or implementation of changes to employee pensions, including the Employee Consideration Pension Transition Program as set forth in Section 30 of the Personnel Code.
(2) Wages, including any form of compensation including salaries, overtime compensation, vacations, holidays, and any fringe benefits, including the impact or implementation of changes to the same; except nothing in this Section 7.6 will prohibit the employer from electing to bargain collectively over employer-provided health insurance.
(3) Hours of work, including work schedules, shift schedules, overtime hours, compensatory time, and lunch periods, including the impact or implementation of changes to the same.
(4) Matters of employee tenure, including the impact of employee tenure or time in service on the employer’s exercise of authority including, but not limited to, any consideration the employer must give to the tenure of employees adversely affected by the employer’s exercise of management’s right to conduct a layoff.
* If the governor would propose a bill which gives suburban and Downstate schools the same options to limit collective bargaining as Chicago already has, then he’d have a much better argument, and we might be on the road to a deal.
To me, anyway, that would be a big Rauner victory. He’s right that it’s the fair thing to do, and he’s right that the Democrats have already agreed to these ideas for the state’s largest city.
So propose a freaking bill already and put the Democrats on the spot. Unless, of course, he doesn’t want a deal.
Rauner most recently has asked lawmakers either to give him his turnaround stuff—workers compensation and tort reform, limits on public-sector unions, etc.—or give him the authority to balance the budget by moving money around and cutting line items on his own. A pending bill from House GOP Leader Jim Durkin lays out the specifics, with a similar bill filed in the Senate by GOP Leader Christine Radogno. Needless to say, Democrats don’t trust Rauner to make the decisions himself.
On its face, that legislation looks like a liberal nightmare. Specifically, to pay for MAP grants and other college spending, it would effectively give Rauner unrestricted power to “limit, reduce or adjust services, payment rates, expenditures, transfers of funds and eligibility criteria, to the extent permitted by federal law” in five departments of particular importance to Democrats: Aging, Children and Family Services, Healthcare and Family Services, Human Services and Public Health.
In fact, administration officials say, all that clause would do is restore a level playing field between those departments and others, like Corrections and Transportation, where Rauner already has a free hand and has used it to make $500 million to $600 million in cuts.
Comparing corrections and transportation to human services, eh?
Lots of spending at DCFS, DHFS and DHS falls under judicial consent decrees, so it’s like comparing apples to chair legs.
The findings from this analysis illustrate that reimbursement rates in the majority of service areas have failed to keep up with increased cost of living. The only human services field that has experienced regular rate increases is Child Care. The remainder of service rates has fallen behind cost of living. Table 1 and Figure 1 present a summary of rate increases compared to cost of living increases. Key findings include the following:
• The current rates for Substance Abuse Treatment (for Level I, II, and III, Adult Recovery Home, Case Management, Psychiatric/Diagnostic, Opioid Maintenance Therapy, and Early Intervention) would need to increase by 27% to adjust for cost of living increases that have occurred since 2000.
• Reimbursement rates for Comprehensive Care Coordination for older adults have generally not increased since 2000. These rates would need to be increased by 38% to adjust for cost of living.
• Early Intervention reimbursement rates have not increased since 2004. The rates would need to increase by 26% to adjust for cost of living.
• Foster Care reimbursement rates would need to increase by at least 25% to adjust for cost of living.
• Reimbursement rates for various Developmental Disabilities Services have not increased since 2008, and would need to increase by 13% to adjust for cost of living.
• Wages for developmental disabilities residential support staff have not increased since 2002. These wage rates would need to increase by 30% to adjust for cost of living.
• Community Mental Health Service rates have not increased since 2006. Based on 2005 rates, they would need an increase of 16% to adjust for cost of living.
Cut those rates and two things will probably happen: 1) Quality of care will decrease; and 2) Wages will be suppressed, so hiring decent people will be much more difficult, which will also likely hamper qualify of care.
Lack of funding for higher education creates “uncertainty if you’re a student,” she said. But, she added, “some of these universities have cut some of their administrative costs –- sort of squeeze-the- beast theory.”
She said “global questions” about higher ed could now be asked.
“Should we have six, eight schools of education, everybody having a program and everything? I don’t know,” Radogno said. She noted a couple of two-year colleges went to four years, including what is now the University of Illinois Springfield.
“Maybe we ought to have more going from four to two,” she said.
* Those words caught the attention of the Champaign News-Gazette and state Sen. Scott Bennett, a Champaign Democrat who represents the U of I…
“What we don’t want to see is some kind of starving out, which is what’s happening now, where the strong survive and the weaker ones die away,” Bennett said. “That’s not the way we should be deciding our higher education system.
“Honestly, that’s what appears to be happening. I don’t know if that’s the design or neglect which is resulting in this.”
Radogno spokeswoman Patti Schuh described Radogno’s comments as part of a “freewheeling” conversation with the newspaper’s editorial board, not a policy proposal. The message, Schuh said, was that budget cuts present an opportunity to “look at things differently.”
“It’s been said by many, ‘Never let a good crisis go to waste,’” Schuh said. “There are legitimate questions that are being asked.”
But she added, “There’s no plan or policy on the table right now.”
OK, take her at her word. But this “squeeze the beast” theory is at the very least a de facto plan right now.
* Make no mistake, however. This current crisis comes after years of “squeeze the beast” policy by controlling Democrats. It’s been a slow-motion train wreck…
Excluding pensions and adult education/career and technical education (which came under community colleges oversight in 2002), community colleges, public universities, need-based financial aid, and institutional grant programs all have experienced decreases in funding since 2000 after accounting for inflation. The total decrease is $1.1 billion, or 36.4 percent.
Emphasis added.
* Universities are (often rightly) seen by state policymakers as top-heavy fiefdoms which need to rein in their own spending. But depriving them of state money hasn’t worked. They’ve continued to expand non-instructional staff and jacked up tuition…
* The upside here is that the universities have been incredibly powerful in the past. It’s why they got away with those massive tuition hikes and their over-reliance on non-tenured professors, etc. The past cuts obviously didn’t work. But the current starvation diet is making them much more amendable to change.
So, how about somebody come up with a reform plan before the whole system implodes and permanent damage is done?
* Not to get all gangsta or anything, but only a short-sighted bookie has his customer’s legs broken for refusing to pay a debt. The customer can’t pay if the customer can’t work. You only break his legs when it becomes clear that he has no intention of ever paying. I don’t think we’re there yet, by any means, but this current, super-intense “squeeze the beast” policy is as close as we’ve ever gotten to breaking some legs.
The university system is a big part of our heritage. Responsible stewards improve on that heritage to pass along to the next generation. Blagojevich and Quinn and the Democratic General Assembly were not responsible stewards. Rauner could turn out to be even worse unless he comes up with a plan.
* Um, dude, they own the Chicago Cubs. That’s probably the worst imaginable thing that anybody would ever try to hide. But, as we all know, they were quite public about their purchase of that evil monstrosity. So, I’m not sure how anything else in their collective family past could possibly be any worse than that…
Republican presidential front-runner Donald Trump took to Twitter on Monday to denounce a super political action committee opposing his campaign that’s primarily funded by Marlene Ricketts, whose family owns the Chicago Cubs.
“I hear the Rickets (sic) family, who own the Chicago Cubs, are secretly spending $’s against me. They better be careful, they have a lot to hide!” wrote Trump, the businessman and reality TV show star who is no stranger to making pronouncements, name-calling denunciations and predictions via social media.
Trump’s message apparently was in response to a USA Today story noting that Ricketts, the family matriarch who lives in Nebraska, had put $3 million into the Our Principles PAC in January. The PAC has spent about $3.5 million in ads, mailings and other efforts to oppose Trump, federal records show.
* Gov. Rauner and Leader Durkin refused to respond. But one guy did…
But, will Trump’s Twitter strategy work in Illinois? Former Illinois Republican Party Chairman Pat Brady thinks not.
“It does stir it up and he sucks all the oxygen in the room and other candidates can’t get out there, but I don’t think it’s going to work very well here,” Brady said.
The sample of 306 [Illinois] Republicans was part of a statewide poll of 1,000 registered voters conducted Feb.15 to 20. The GOP voter sample has a margin of error of 5.6 percent.
But I doubt that Trump has suddenly fallen behind in Illinois. As we’ve already clearly seen, a large number of Illinoisans absolutely love it when their guy is constantly on the attack. And Pat Brady ought to know this because he’s been loudly cheering something eerily similar to this in his own back yard for a while now.
The top Republican in the Illinois House says there is room to compromise with Democrats on the conservative agenda Gov. Bruce Rauner Is pushing.
Jim Durkin is a Republican from Western Springs. On Monday, he told a meeting of the City Club in Chicago that he wants Democrats who control the General Assembly to negotiate “with open minds” on a balanced budget. […]
Durkin says there are steps within a workers comp reform package that could be agreed upon, such as adopting American Medical Association guidelines for compensating worker injury.
“In my caucus, I believe that workers’ comp is extremely important, extremely important,” said Durkin, R-Western Springs.
“And I’m of the belief, after my discussions with the (House) speaker and the (Senate) president, over the months, that is an area where we can find some common ground.”
“If we‘re going to get through the budget … that’s one of the things we’re going to have to address. It has to be part of the plan, it has to be part of the big picture,” Durkin said in a presentation to the City Club of Chicago.
Durkin also said the GOP doesn’t expect Democratic support for big changes in workers’ compensation “causation,” which refers to whether an injury actually occurred at work and to what degree the workplace is responsible.
Still, he said, “there are many other issues we can deal with on workers’ comp,” citing as examples the implementation of American Medical Association recommendations and changes in payment-for-loss schedules.
“We passed legislation last year that focuses on the insurance industry, which appears to be a blockade point,” said Madigan spokesman Steve Brown.
“The important thing is there have been independent studies that say the cost of workers’ comp has come down dramatically since the 2011 reforms (but) the insurance companies aren’t passing it along,” said Brown.
“We have a bill that was passed that could focus on the insurance companies (and) get the money to the employers, but the governor is focused on taking wages away from employees,” Brown said.
Brown referenced House Bill 1287, which passed the House last June by a vote of 63 to 39. While Democrats said it was a substantial measure and an olive branch to the governor, Republicans dismissed it as an insincere gesture and falling well short of the changes they want. The bill remains in the Senate.
A 2005 bill that raised payments to workers who suffered permanent partial disabilities on the job [by 7.5 percent] caused workers’ compensation insurance rates in Illinois to soar. Miller said a repeal of that law could break the budget stalemate and satisfy both Rauner and Madigan, who has argued that Rauner’s agenda for workers’ comp will send injured workers to emergency rooms for treatment and force them onto welfare rolls:
“‘If we get this, workers’ comp is done’ [the governor’s people have told me]. Now, rolling back a 7.5 percent benefit increase is not going to put one person on welfare or send one person to the emergency room. That is a doable, possible fix.”
* The question becomes does either side really want to do a deal? I think Durkin is indicating that he’s willing to move forward on something. Brown has laid out what his boss wants. A governor interested in advancing his cause would immediately see this as a prime opportunity for progress.
Put the Speaker on the spot by agreeing to his demand. There’s no better way to test whether Madigan is more interested in compromise or gridlock.
* And, frankly, the same can be said of Rauner. I’m still of the mind that Rauner wants to do a deal. I think that’s supported by what he told the bigshots at GE last year when the company wanted to move its HQ to Chicago, but were worried about governmental instability. Rauner asked for more time because he (for whatever reason) thought he was close to ending the impasse. I don’t think he would’ve told the company execs that if he wanted this thing to go on indefinitely. Maybe I’m wrong, but I still believe he wants to move the state forward. It’s just that he absolutely must find another way to do it.
As Rauner has done throughout the past year, he tried to pin the problem on House Speaker Michael Madigan, saying the current school funding formula that Democrats now want to change was created by the longtime lawmaker.
“I did not create the school funding formula, I just got here,” Rauner said. “This has been in place for decades and you know who created? Speaker Madigan and the Democrats in the General Assembly. Somehow, I’m new, and it’s all my fault and I’m the defender of it. I mean, good grief.”
And the formula which determines how much state aid each school gets hasn’t been changed since 1997.
* That was a huge piece of legislation, by the way, pushed hard throughout most of 1997 by Gov. Jim Edgar…
I felt that in the end, we got 75 percent of what we were out to get. I mean, we didn’t get property tax relief. I think the media has a tendency to dwell on property tax relief. We didn’t get that, but we did get the minimal foundation level, we did get more money for schools; we did get some reforms, but most importantly, we got the minimal foundation level. We helped poor school districts in the state; that was the basis of what we wanted to accomplish, and we did accomplish that.
This legislation took months to pass, over the initial opposition of suburban Republicans, who eventually decided that their Downstaters were getting such heat that they needed to cut a deal with Edgar. That’s why Downstate Sen. Frank Watson was made the chief sponsor.
* The bill had problems in the House Democratic caucus as well because it started off as an income tax hike. Here’s Jim Edgar again….
I think we were in April, late April, probably, because we still had time in that Senate. But Madigan came to me and said, “My guys are nervous that they’ll vote for this and then you’ll campaign against them for raising taxes. They want an endorsement.” I said, “I’m not going to give them an endorsement.” Finally we settled on I’d give them a letter thanking them for their support of this proposal. He came back and said, “Okay, that’ll work.” Anybody who votes for this will get a letter from me thanking them for their courage in voting for this important piece of legislation.
* And it required some serious horse trading in the Senate GOP caucus…
We knew we had all the Democrats, and we needed two or three Republicans to vote for a discharge. Now, this is a trickier vote than voting for it on the floor. There are some guys who just won’t vote for a discharge, and we knew that. But I was down to one vote; I knew who the senator was, and I had him down in my office. At that time we were building a new prison in Illinois, and this senator came from a long family of politicians who cared about jobs.
* My overall point here is that when a governor completely engages, he can get things done. Maybe not everything he wants, but 75 percent isn’t bad. You live to fight another day.
What you don’t do is spend all your time publicly bashing one guy. It might make you feel good. It might make your supporters love you more. But it doesn’t actually get anything accomplished. Keeping your base and the Tribune fired up and giddy as little schoolgirls is no substitute for governance. Period.
