FORMER SPEAKER OF THE UNITED STATES HOUSE OF REPRESENTATIVES CHARGED WITH STRUCTURING CASH WITHDRAWALS TO EVADE
CURRENCY TRANSACTION REPORTING REQUIREMENTS
AND MAKING FALSE STATEMENT TO THE FBI
CHICAGO — The former Speaker of the United States House of Representatives was charged today with structuring the withdrawal of $952,000 in cash in order to evade the requirement that banks report cash transactions over $10,000, and lying to the Federal Bureau of Investigation about his withdrawals. The defendant, JOHN DENNIS HASTERT, 73, of Plano, Illinois, was charged with one count each of structuring currency transactions to evade Currency Transaction Reports and making a false statement to the FBI in an indictment returned by a federal Grand Jury. He will be ordered to appear for arraignment on a later date in U.S. District Court.
According to the indictment, in 2010, Hastert agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A. From 2010 to 2014, Hastert withdrew a total of approximately $1.7 million in cash from various bank accounts and provided it to Individual A. Beginning in approximately July 2012, Hastert started structuring his cash withdrawals in increments of less than $10,000 to evade the filing of Currency Transaction Reports (“CTRs”), which banks are required to file for cash withdrawals in excess of $10,000. In December of 2014, when questioned by the FBI regarding his structuring of cash withdrawals, Hastert falsely stated that he was keeping the cash.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Acting Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Steven Block and Carrie Hamilton.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
a. From approximately 1965 to 1981, defendant JOHN DENNIS HASTERT was a high school teacher and coach in Yorkville, Illinois. From approximately 1981 to 2007, defendant JOHN DENNIS HASTERT was an elected public official, including eight years as Speaker of the United States House of Representatives. From approximately 2008 to the present, defendant JOHN DENNIS HASTERT has worked as a lobbyist in Washington, D.C.
b. Individual A has been a resident of Yorkville, Illinois and has known defendant JOHN DENNIS HASTERT most of Individual A’s life.
c. In or about 2010, Individual A met with defendant JOHN DENNIS HASTERT multiple times. During at least one of the meetings, Individual A and defendant discussed past misconduct by defendant against Individual A that had occurred years earlier.
d. During the 2010 meetings and subsequent discussions, defendant JOHN DENNIS HASTERT agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A.
e. Shortly thereafter, defendant began providing Individual A cash payments.
Although the indictment specifies neither the “bad acts” nor the victims, sources said they could be from before Hastert, who is now a lobbyist in Washington, entered politics in 1980. [Emphasis added.]
Thursday, May 28, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Exelon is already getting bailed out by the PJM auction and doesn’t need legislators to vote for a rate increase to bail them out a second time
• Exelon will receive hundreds of millions in new annual revenue through a revised PJM electric grid auction to be held later this summer.
• Illinois ratepayers will be socked with a rate increase to pay for this new revenue.
Exelon is spending billions in other states – often in cash - so what are they planning to do with $1.6 billion from Illinois?
• Exelon is spending $6.8 billion IN CASH to purchase Pepco Holdings.
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Exelon opposes subsidies and above-market contracts — except when they’re for Exelon
• “We’re saying we don’t want to be subsidized and no one should be subsidized in the competitive markets…” Exelon CEO Chris Crane, 5/13/14
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Just say no to the Exelon Bailout. Vote No on SB 1585/HB 3293.
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In March, Rauner tapped Beth Purvis, a former charter school director, as his education secretary at an annual salary of $250,000. […]
But her contract, signed March 13, indicates that she’s being paid out of the Department of Human Services, even as it indicates she will “report directly to the governor’s chief of staff or designee.”
Three weeks after Purvis’ contract was signed, the governor’s office announced that the Department of Human Services was strapped for cash, and sliced $26 million in services including for autism, epilepsy and burials for the indigent. The cuts, later known as “the Good Friday Massacre,” caused some programs to completely shut down. The cuts caused a furor, prompting House Speaker Michael Madigan, D-Chicago, to call a public hearing on why it happened after Democrats said they believed a budget deal with the governor protected such services.
llinois House Democrats are asking Gov. Bruce Rauner to appear before a House committee to explain why the governor’s office arranged to have his $250,000-a-year education czar paid out of money meant for “the frailest and most vulnerable populations in the state.” […]
In a letter to Rauner, obtained by the Sun-Times, state Rep. Greg Harris, D-Ill., questions testimony by then-Acting DHS Secretary Gregory Bassi and then-interim secretary James Dimas “that the lack of available funding was responsible for the decision to eliminate or reduce funding for these vitally needed programs. These programs serve many of the frailest and most vulnerable populations in the state.”
“I invite you to appear before the House Human Services Appropriations Committee to explain the decision-making process that led to this situation. We are also interested to know if there are other department heads whose compensation is buried within the budgets of departments other than those that they lead,” wrote Harris, chairman of the committee.
State lawmakers believe they’ve reached a deal on a police reform package that includes guidelines for body cameras.
Legislators said at the beginning of the year that police reform was going to be a key issue this session. Senate Bill 1304 aims to address several areas besides body cameras, including officer-related homicide investigations and additional training. It also includes $6 million in funding for crime labs at the request of House Speaker Michael Madigan, D-Chicago. […]
The package contains provisions for police body cameras but does not mandate them. The bill would change the current eavesdropping laws requiring two-party consent to allow officers to record without permission.
Police who decide to wear the cameras could only turn them off when talking with a witness or victim or during personal and strategic conversations. All interactions with the public would have to be recorded.
The package, negotiated by state Rep. Elgie Sims, D-Chicago, calls for adding a $5 fee to traffic tickets, with a portion going to pay for cameras.
It also sets out rules for how officer-involved incidents are investigated, including a requirement that officers from outside of a department are called in to investigate.
“What we wanted are objective eyes on an incident,” Sims said.
The proposal also outlines how reports are to be made public in order to ensure there is no secrecy.
* And no Republican opposition means there’s no current Rauner brick. Good news, for a change…
The Illinois House on Wednesday overwhelming pushed through a sweeping measure aimed at curbing heroin use and preventing overdose deaths by expanding specialized drug courts that focus on treatment.
The measure also would require police departments and fire houses to stock opioid antidotes that could be used to counteract heroin overdoses. In addition, the state’s Medicaid health care program for the poor would have to cover the cost of drug treatment programs. […]
The House approved the measure 114-0, though Republicans expressed concern about the possible costs of the bill, which originally were estimated to be as high as $25 million a year. […]
The measure also attempts to strengthen the state Department of Human Services’ prescription monitoring program to help doctors and pharmacies detect “doctor shoppers,” a practice in which drug addicts obtain various prescriptions from several doctors. It also establishes drug education programs for schools and reforms drug court programs to keep users out of jail and in rehabilitation programs.
Despite all the other implosions, some serious progress is truly being made on crime issues this year.
Since it opened a decade ago, the Lincoln museum has been under the control of the Illinois Historic Preservation Agency. The museum has its own advisory board, but House Majority Leader Barbara Flynn Currie says those advisors were frustrated. […]
Under Currie’s proposal, the two will operate independently.
Gov. Bruce Rauner had wanted Historic Preservation to adopt a tourism focus and be merged with the state’s economic development agency. But that idea was dropped over concerns Historic Preservation would lose its focus on, well, historic preservation.
* But unless both chambers pass it and can override a veto, this ain’t happening…
“My understanding from our staff is (the Rauner administration is) copacetic with these changes in the structure of HPA on the one hand and ALPLM on the other,” Currie said.
She said details are still being worked out on the idea of creating a public-private partnership for some of DCEO’s economic development activities.
However, Rauner spokeswoman Catherine Kelly disputed Currie’s statement.
“We do not support this legislation,” Kelly said.
* And until the war dies down, this probably ain’t happening, either…
ayor Rahm Emanuel is trying to solve his police and fire pension problem by paying less upfront, taking longer to pay off the debt and getting some of the money to cover what the city owes from a Chicago casino.
The approach is designed to soften a massive financial hit expected next year, when the city is required to increase its payments into the two pension funds by $549 million as required by a 2010 state law. That’s equal to nearly one-sixth of the city’s yearly operating budget and accounts for the bulk of a 2016 budget shortfall now pegged at nearly $1 billion.
Emanuel, however, wants to hit the reset button. Instead of paying the additional $549 million next year, the city would spend significantly less than that. Then the city would start to increase how much it puts into the police and fire pension systems over a number of years while also spreading out its payments over a longer period of time.
The mayor’s plan comes three years after he first traveled to Springfield to declare that the city’s financial day of reckoning was fast approaching. Emanuel is now trying to persuade lawmakers to act on a specific proposal, but he’s doing so as they remain embroiled in their own stalemate over state budget woes.
Rauner’s spokesman ignored repeated inquiries about the origin of the leaked document; instead he said only that “we continue to negotiate in good faith.”
I can’t tell you where and how I got it, of course, but I can say the form was most definitely not leaked by the governor’s office.
AFSCME’s spokesman says there’s never been a strike in the 40 years Illinois has had collective bargaining. But he says after six months of contract negotiations, the two sides remain far apart. The union spokesman went on to call the Contingency Preparation Form a “troubling sign” that Rauner’s pushing for a confrontation that’d disrupt important state services.
I still think it’s just reasonable management to have preparations at the ready in case a strike does happen.
The governor was asked in mid-May if state employees should be concerned about layoffs or a strike. “Hopefully not,” he said. “We’ve got to make some big changes. Changes are hard. And there’s going to be a lot of resistant to change.” Rauner went on to say he wants to be able to pay employees more, based on productivity - not just seniority, “so we’re going to have some tough discussions. But I want everybody who works in government to have a great career. I want them to be well compensated. I want them to have a great retirement. But we need a system that’s affordable, and also incentives everybody to save taxpayer money because the tax burden on our citizens is too high already.” […]
“I may have to … take a strike and shut the government down for a few weeks … that’s a possibility,” [Rauner said in March of 2013]. “I don’t know many politicians who would be willing to do that. I won’t be happy doing it, but I will do it proudly because it’s the right thing to do.”
Stephen Schneider, Midwest region vice president at the American Insurance Association in Deerfield, Illinois, said the insurance community is optimistic that Illinois lawmakers will have continued discussions during the current session about workers comp reforms, including some ideas the AIA would like to see proposed.
Those include controls on physician dispensing of medication to workers comp claimants and tying the state’s workers comp medical fee schedule to a percentage of Medicare pricing for similar services.
“It’s going to be day-by-day through the end of session and perhaps longer,” Mr. Schneider said of the chances of action on comp-related legislation.
PCI’s Mr. Junkas agreed that workers comp reforms may still be on the table for Illinois, saying many political experts expect the legislative session to extend beyond its scheduled May 31 adjournment.
“There’s going to be continual discussions ongoing, and I think workers compensation’s going to remain in that mix,” Mr. Junkas said.
* I agree that workers’ comp reform needs to be on the table and could actually be resolved eventually. But, man, things aren’t going all that well these days. From yesterday’s Senate hearing on workers’ comp reform…
Greg Baise of the Illinois Manufacturers Association said workers’ compensation costs hang “like an anvil around the necks of job creators in Illinois. We’ve seen the loss of 300,000 manufacturing jobs since the turn of the century, and reforming workers’ compensation is the first step in making our state more attractive.”
Several times during the debate tempers became short, particularly when Barickman said that the decisions of other states could be “used as a template” for Illinois lawmakers. He cited changes in Florida, Oregon and Indiana.
“Where is your proposal for us to consider?” Barickman asked of committee chairman Kwame Raoul, D-Chicago.
“Mine was a 2011 package that we negotiated with employers at the table, the right way,” Raoul responded, his voice rising in anger. “As far as these working groups, senator, I brought up the same points that I’m bringing up today. They were not addressed, senator.”
Thursday, May 28, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Two recent studies published by NPR/Pro Publica and the federal Occupational Safety and Health Administration (OSHA) show that nationwide, insurance companies have kept any cost savings from recent workers’ compensation “reforms” for themselves, with profits climbing to 18 percent in 2013 – while middle and lower-income families and taxpayers are paying the price.
In 2011 Illinois enacted its own workers’ compensation “reform” package aimed at lowering costs for businesses. Workers gave up longstanding rights and in return, insurance companies were to be transparent with pricing and pass savings along to employers. As it turns out, only the workers kept up their end of the bargain.
The National Council on Compensation Insurance (NCCI) is an independent, non-partisan agency comprised of insurance professionals licensed by the Illinois Department of Insurance to assess workers’ compensation in Illinois and make premium rate recommendations to insurers. Since 2011, NCCI has recommended insurance premium reductions totaling nearly 20 percent.
The 2011 reforms were projected to save insured employers nearly $1 billion assuming the insurance industry would fully adopt the NCCI recommendations.
The insurance industry’s failure to fully implement NCCI recommended rate reductions has prevented Illinois insured employers from realizing any meaningful savings.
No matter how many benefits are cut, medical reimbursements are lowered, and claims are denied, the state’s businesses won’t see corresponding savings without our leaders addressing the promises previously broken by the insurance industry.
“Once again, it looks like Speaker (Mike) Madigan is going to preside over another round of long overtime summer sessions under his third or fourth governor now. What’s the common denominator in all of this? Madigan.”
As Springfield battles over Gov. Bruce Rauner’s pro-business “turnaround” agenda, you’d think he’d want the top business group in the state’s economic center at his side. And you’d think that group would be fully engaged.
In fact, the Chicagoland Chamber of Commerce is being snubbed by the governor after it appeared to snub him—frozen out of key negotiations over business-oriented legislation put before the General Assembly.
Though both sides are trying to play down any dispute, there’s bad blood between the GOP governor and the state’s largest business group. And the topic of why the chamber is being dissed is sparking all kinds of chatter among other business groups. It certainly reveals a few things about how power works in Chicago and Illinois, as well as the obstacles Rauner faces in getting approval for his ideas on workers’ compensation and unemployment insurance reform, limits on unions, an end to the prevailing wage and other changes. […]
“They’re the largest business organization in the state, and they have to get updates from others because they’re not at the table,” another source said. “It comes directly from the governor’s office. No question about it.”
We raised a bunch of money for charity with those slogans and more on mouse pads, t-shirts, polo shirts, coffee mugs, even (by special request) underwear.
We may be revisiting that idea.
Thanks to Dave Comerford for the post, by the way.
Thursday, May 28, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
The Low Carbon Portfolio Standard (LCPS) is good for Illinois consumers, our economy, our environment, and the reliability of our electric system. The LCPS is a WIN-WIN for all of Illinois’ low carbon sources of energy, which include wind, solar and existing nuclear facilities.
Unfortunately, energy policies of the past have failed to properly value Illinois’ nuclear facilities for the economic, reliability and environmental benefits they provide, and as a result, some nuclear facilities may close. If that happens, the consequences of consumers and communities all across the state of Illinois would be catastrophic:
• $1.8 billion every year in lost economic activity
• Nearly 8,000 jobs lost, many of which are highly skilled, good paying jobs
• Up to $500 million annually in higher energy costs statewide, according to a PJM analysis
• $1.1 billion per year due to increases in carbon and other pollutants
• Hundreds of millions of dollars to construct new transmission lines
In fact, the cost to Illinois of allowing nuclear plants to prematurely retire are as much as 12 times greater than the maximum cost of the LCPS, when fully considering increased wholesale power prices, transmission costs, adverse economic impacts, and adverse environmental impacts, according to a State of Illinois report.
Members of the General Assembly: Vote YES on the
Low Carbon Portfolio Standard (HB 3293 & SB 1585)
Democrats have abandoned Gov. Bruce Rauner’s idea to privatize the state’s business-development agency but are moving ahead with Speaker Michael Madigan’s plan to make the state’s shrine to Abraham Lincoln a separate agency. […]
Democrats proceeded with their agenda, [Speaker Madigan’s spokesman Steve Brown] said, because Rauner’s press operation has been churning out anti-Madigan statements over disagreement on a budget plan and Rauner’s business reforms in the closing days of the spring session.
“We were trying to put together a plan in cooperation with the governor that had a lot of transparency,” Brown said. “But I guess I’d have to say right now it’s under review while the governor calms down.”
* Needless to say, the governor ain’t calming down. From a press release issued early this morning…
Will Legislators “Continue to be part of the Madigan-Cullerton problem, or will they stand up for the people of Illinois?”
On the heels of rejecting compromise worker’s compensation reforms to grow the economy, legislators controlled by Speaker Madigan will consider compromise lawsuit reform and property tax freeze legislation today.
Belleville News Democrat - Editorial: Same sad story for Illinois
“We had hoped that this time it would be different, but no. Illinois lawmakers seem ready to wrap up their spring legislative session and once again kick the budget can down the road. No solutions? No problem. Guess no one really should be surprised that Democratic leaders Michael Madigan and John Cullerton are choosing not to work with Republican Gov. Bruce Rauner. The new governor wants to reform the way Illinois does business but the two grizzled veteran leaders have no desire to change. Illinois may be dysfunctional, but it’s a system that works just fine for them and political insiders. It’s so incestuous…
It’s so blatant it’s breathtaking, and Republican lawmakers alone can’t stop them. They would need help from rank-and-file Democrats who are also fed up with refusing to address the state’s fiscal problems. What will our local Democratic lawmakers do? Will they continue to be part of the Madigan-Cullerton problem, or will they stand up for the people of Illinois?”
Rockford Register Star – Editorial: Who will right Illinois’ fiscal ship?
“’You just can’t spend like a bunch of drunken sailors all the time.’
No, that wasn’t Illinois Gov. Bruce Rauner or one of his Republican allies who said that, although it certainly would have been appropriate after Democrats passed a budget that would have the state spend $3 billion or $4 billion more than it expects to take in.
It was the state’s former treasurer and comptroller, Judy Baar Topinka, who died late last year. Topinka’s remark came after Gov. George Ryan’s 2002 budget address. Needless to say things have not gotten better in Illinois the past 13 years…
…The governor wants reforms and Madigan has shot down those reforms. The governor asks for responsible spending and Madigan and his friends pass a budget that has a huge hole in it.
Reform and budget negotiations should not be separated, as Madigan wants. There’s no better time to discuss one because it affects the other. When politics works, it’s a give-and-take process.
You don’t have to buy into everything Rauner wants to acknowledge that Illinois must change to have a competitive economy in the 21st century…”
* The governor’s press shop also just sent reporters the Senate committee testimony this morning of Deputy Chief of Staff for Legislative Affairs Richard Goldberg. The following sentences were the ones specifically highlighted by the governor’s staff…
Unfortunately, no compromise is ever good enough for those who stand in the way of reform.
In short, while Governor Rauner says Yes to reform and Yes to compromise, the legislators in control of the General Assembly say No to reform, No to compromise, Yes to unbalanced budgets and Yes to higher taxes without reform.
Taxpayers are fed up pouring their hard-earned money into a broke and broken system. This morning, this Committee and those in control of the Senate have an opportunity to change course.
The bill before you is a critical reform we need to Turnaround Illinois – to make Illinois more competitive, to grow our economy and to create jobs. The bill before you represents compromise and reform.
* Another session day, another live session coverage post via ScribbleLive, sponsored by The Illinois Kids Campaign. Just a few regularly scheduled days left…
Gov. Bruce Rauner’s office has revised its plan to change state hiring to allay concerns of Democrats and unions.
* Um, well, maybe. Check out the Rauner press release…
Refusing to Reform: Democrats Also Walking Away from Fixing Illegal Political Hiring
“By protecting illegal political hires, Democrats are proving to the people of Illinois that they don’t care at all about reforming anything that’s broken in state government.”
– Lance Trover, Director of Communications
After walking away from compromise reforms to turn around Illinois’ economy, Democrats appear to now be blocking compromise reforms that will fix illegal political hiring in state government.
After Senator McConnaughay filed reform legislation last month, the Governor’s Office met regularly and frequently with leadership staff from each of the four legislative caucuses. As detailed below, the legislation has been significantly revised to provide a clearer, more tailored framework.
The Governor’s Office and the legislative caucuses also met with representatives of AFSCME, Teamsters, and Laborers. While there is general agreement that reforms are needed, labor organizations will not agree to reforms that impact positions already in the bargaining unit. Unfortunately, as evidenced in the conflict between the two pending lawsuits, the State must resolve the status of current employees too. Nonetheless, the legislation has been narrowed to minimize the adverse impact on labor organizations.
An amendment to the original bill has now been filed, which represents compromises that were negotiated. Despite this, Democrats are now refusing to support the reform bill.
I’ve asked various folks for comment. I’ll let you know.
*** UPDATE *** Statement from Michael T. Carrigan, President, Illinois AFL-CIO…
“Yet again, Gov. Rauner seems to be using the cloak of so-called ‘reform’ to attack union members. Our unions strongly oppose political influence in the hiring process and would support a good bill to eliminate it. But this legislation is a Trojan Horse the Rauner Administration is trying to use to limit all workers’ right to bargain collectively. He is intentionally using an ax for legislation that calls for a scalpel.
“We remain ready to work toward legislation that addresses the real problem—political influence in hiring—which has no relation to collective bargaining rights.”
* I don’t in any way condone or excuse this behavior. No way. No how. It’s stupid and cruel.
‘
But, seriously, how many people were shot in Chicago last weekend? You’d think the police and the state’s attorney would have better things to do with their time…
A West Side man whose video of himself smoking marijuana with his pet chameleon went viral and led to a misdemeanor animal cruelty charge was acquitted Wednesday by a Cook County judge who found his behavior immature but not criminal.
Bruce Blunt said he sometimes blew smoke into the mouth of his chameleon, Binna, because it seemed to calm the sometimes aggressive reptile. […]
Chicago police arrested Blunt near his mother’s home after conducting brief surveillance to find him over several days, according to trial testimony. […]
Prosecutors said the video proved Blunt had criminally mistreated his pet.
“It’s just a little guy,” said Assistant State’s Attorney Mike Bagnowski, speculating what effect the marijuana smoke would have on Blunt’s attorney before withdrawing the remark. “He blew smoke not once but twice into its mouth.” [Emphasis added.]
There are people literally rotting in Cook County Jail waiting on misdemeanor trial dates and they’re clogging the courts with this stuff?
The Governor Rauner budget cuts will be voted on today.
HB 200 –
50 percent cut to Local Government Distributive Fund
SB2038 –
A1: Human Services. Cuts to autism, child care, early intervention, teen reach and breast and cervical cancer screenings
A2: Higher education. 31 percent state funding cut to state universities
A3: TRS: Eliminates state support for Teachers’ Retirement Insurance Program, College Insurance Program.
A4: Medicaid: $1.5 billion cut to Medicaid services.
* I’m not yet convinced that AFSCME will strike. I figure they’ll wait for a lockout attempt. But one never knows, so this “Contingency Preparation Assessment” form sent out to agencies asking them for their plans for and the potential impact of a public employee strike seems like a prudent administrative move.
Click the pic for a larger image…
Notice that temp workers will apparently be hired.
* Something that got cut off from my screen grab above…
Only peace officers, security officers, firefighters and fire protection district paramedics can be automatically enjoined due to their job category.
Illinois community college and university presidents are enjoying a “fantasy world of lavish perks” — including housing allowances, cars, club memberships and generous bonuses — as part of sometimes secret deals that show disregard for taxpayers, according to a new report from state legislators.
The perks include a $32,000 housing allowance for the president of Harper College, a $450,000 retention bonus for a former University of Illinois at Chicago chancellor and $30,000 toward two retirement plans in addition to state pension contributions for the Elgin Community College president. […]
Though the report blasts the Glen Ellyn-based college for its recent scandals, it also chastises public universities and community colleges statewide for providing “excessive fringe benefits” and lucrative exit deals for top administrators, including a $480,418 severance package to the former Illinois State University president after less than a year on the job. […]
In addition to highlighting the compensation packages, the report also takes aim at the “skyrocketing” number of administrators at the public schools as tuition and fees have increased.
At public universities in Illinois, full-time administrative staff increased 31.1 percent from 2004 to 2010, according to the report, while there was only a 1.8 percent increase in full-time faculty and a 2.3 percent increase in students.
* As noted below, university presidents/chairmen/chancellors were in Springfield yesterday and posed for a photo in front of the Statehouse…
Pictured, left to right are: front row, University of Illinois President Timothy L. Killeen, Northeastern Illinois University President Sharon Hahs and Governors State University President Elaine P. Maimon; middle row, University of Illinois at Springfield Chancellor Susan Koch, Illinois State University President Larry H. Dietz and Chicago State University President Wayne Watson; back row, Southern Illinois University President Randy J. Dunn, Eastern Illinois University Acting President Blair Lord, Western Illinois University Board of Trustees Chair Cathy E. Early and Northern Illinois University Board of Trustees Chair Dr. John R. Butler.
Don’t miss the Traveling World of Reptiles Show, Touch-a-Truck exhibit, interactive safety demonstrations and more at this year’s Children’s Safety Expo hosted by State Sen. Christine Radogno (R-Lemont) and State Representatives Jim Durkin (R- Western Springs) and Ron Sandack (R- Downers Grove) on Saturday, June 6 from 9:00a.m. to Noon at Lakeview Junior High School, 701 Plainfield Rd. in Downers Grove. […]
Admission is free. There will also be free giveaways at the event, and the first 300 children will receive a FREE lunch bag! Demonstrations at this year’s expo include: True Balance Karate class, the Traveling World of Reptiles Show and the Darien Police K-9 Unit. Also, the LIFESTAR Chicago medical helicopter will be there from 9:30am - 11:30am.
* The Question: Suggestions for next year’s event?
In Illinois, our workforce is one of our biggest competitive advantages. According to the last census, 34 percent of Illinoisans have a bachelor’s degree or better. 11 percent have an advanced degree. TechAmerica says that our workforce is in the Top 10 for hi-tech workforces. That means that you will have an easier time finding the talent you need to make your business grow. And since two of the nation’s top engineering schools and top business schools are located in Illinois, you can rest assured that talented personnel will be available for a long time to come.
This year, for the first time since CNBC began keeping track in 2007, workforce is the attribute most frequently cited by states in their efforts to attract business. […]
It’s a sentiment echoed by members of the CNBC Global CFO Council, which includes chief financial officers from a broad array of public and private companies. Asked to rank 10 factors in deciding where to locate or expand facilities, 53 percent of the respondents ranked workforce No. 1. No other factor came close. […]
“We’ve undermarketed ourselves,” [DCEO Director Jim Schultz] said, noting that 56 percent of Illinois’ population has more than a high school diploma. “We think the opportunity is to locate business where the best skill sets reside.”
Roughly two-thirds of our CFO Council respondents consider so-called “right to work” laws banning mandatory union dues an important or very important factor in deciding where to locate.
As for Illinois, if last year’s rankings are any guide, it may need to do some catching up to its new workforce sales pitch. Illinois’ workforce finished 32nd last year, contributing to the state’s overall 27th place ranking.
* I mentioned this to subscribers the other day, so I went back today and watched part of my December 17, 2014 City Club speech to pull the quotes. It was a warning I often mentioned to the governor’s people in subsequent weeks…
The Speaker’s being really nice to the governor-elect right now.
[Steve Brown] disagrees with this analysis, which I brought up to him last night.
Madigan is siding with [Bruce Rauner] on everything, just about.
Um…
I would be wary of that.
I mean, you dig? The man ain’t nice to anybody, except his children and his wife.
Man, I’ve never seen him be this nice to a governor-elect.
And, it’s like, wow, he’s gonna have a big ask, man.
“Oh, yeah, I did this for you. Now, let’s go over the list. I did this. I did this. I did this, you didn’t even ask.
“You’ll just have to figure out what I want.”
By the way, I’m working on dates with the City Club for this December’s annual “Christmas with Rich Miller.” I’ll let you know when tickets go on sale.
1. Madigan reminded all within earshot that when Rauner first gave his state budget address, which did indeed include more than $2 billion in pension savings that were unlikely to be achieved, that the Speaker called it “reckless” then and has been calling it “reckless” since.
2. Then the Speaker proceeded to tell reporters that he consistently has said Illinois needs a balanced approach of both spending cuts and new revenue. Therefore, he said, House and Senate Democrats will work this week to pass a budget for next year that spends more than $3 billion more than the state takes from taxpayers.
3. So, you might logically ask, if Rauner’s budget with $2 billion in phantom savings was “reckless,” what does that make Madigan’s admittedly out-of-whack $3 billion-plus budget? Extremely reckless? (Actually, it appears to be closer to a $4 billion hole.)
Presidents and Board of Trustee chairs representing each of Illinois’ nine public universities met face-to-face with top legislative leaders Tuesday to urge support for higher education funding in the state’s fiscal 2016 budget.
University of Illinois President Timothy L. Killeen arranged the afternoon of meetings to make the case that proposed funding reductions for public universities would damage a key engine for the state’s economic growth and competitiveness.
“We understand the difficult decisions that legislators face this spring to put Illinois on the road to recovery,” Killeen said. “But investing in public universities is an investment in solutions – and in the future of our state.”
Public universities are large-scale incubators of the human capital that is essential to drive progress, presidents and board chairs said during a series of meetings with House Speaker Michael Madigan; Senate President John Cullerton; House Republican Leader Jim Durkin; Senate Republican Leader Christine Radogno; Michael Zolnierowicz, Gov. Bruce Rauner’s chief of staff; and Beth Purvis, the governor’s chief education advisor.
* No surprise here. The plug has been pulled on all the big energy-related bills this session…
“I think what will end up happening is, we’ll compromise. we’ll get everybody to the table and we’ll compromise on one omnibus bill,” House Energy Chairwoman Linda Chapa LaVia says.”So I’m pretty excited, but it’s definitely going to take a little bit longer than May 31.”
Chapa LaVia says she’s also watching and waiting for action on the federal level that could have big effects in Illinois. That’s when its expected rules will be finalized on President Barack Obama’s Clean Power Plan. There’s also a PJM capacity auction scheduled for July, which could have repercussions for Exelon’s fleet.
In a statement, Exelon spokesman Paul Elsberg recently said the company continues to believe its so-called Low Carbon Portfolio Standard is needed, and says “we remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”
Elsberg did not directly respond to a question about whether the failure to pass Exelon’s legislation will result in a shutting of nuclear plants, nor did he say when a decision on their future will be made.
[Steve Brown, spokesman for House Speaker Michael Madigan] cited concerns lawmakers have about where electricity rates are heading, in particular after recent news that rates are spiking downstate beginning next month. That’s thanks to the surprise results of an annual auction held by MISO, the regional grid operator for downstate Illinois and all or part of 14 other states, to set the price of reserving capacity at power plants for when demand spikes during the year. […]
That puts Exelon on the spot. Without legislative action, executives have issued various threats that they will have to close as many as three Illinois nukes they say are losing money. At times, they’ve laid out May 31 as their deadline; at others, they’ve signaled they might be willing to wait a few more months if they thought progress was being made.
In an interview in April, Exelon Executive Vice President Joseph Dominguez said the company wouldn’t agree to wait until the fall veto session in November for an answer.
For this story, the company declined to reiterate that warning. Instead, in a statement, Exelon said, “We remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”
Wednesday, May 27, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Credit unions are committed to several cooperative principles, including social responsibility. At First Illinois Credit Union in Danville, reaching out to area school children as part of their financial literacy program is a top priority.
For over 20 years, the credit union has partnered with area schools, educated students in the classroom and has invited them to open savings accounts. Scholarships are awarded to graduating eighth graders. Members that are high school graduates are also granted scholarships. By giving out scholarships at school-wide functions, it affords the credit union the opportunity to provide financial education to hundreds of students in the audience.
Educating children is just one facet of the credit union’s extensive outreach, which also includes breakfast meals for low income families, financial education for seniors during Money Smart Week, volunteering as a buddy at baseball games for children with disabilities, and many more local clubs and organizations. For all their efforts, First Illinois Credit Union has been recognized by their members and the community as a top financial institution.
At the heart of the credit union philosophy is the principle of people before profits – and another reason why members are so fiercely loyal.
“Why in the world are we sending for the second year in a row an unbalanced budget to the governor?” Durkin said. “We’ve all seen this Greek tragedy before.”
Durkin even raised the old saying about repeating the same action and expecting a different outcome being the definition of insanity.
“If we pass these budgets and send $36 billion of budgets to the governor, this is insanity,” Durkin said. “You’re insane, and history will look upon you unkindly.”
All Republicans voted against all the approp bills. Most, but not all, Democrats voted for them.
Provides that on and after the effective date of this amendatory Act of the 99th General Assembly, every insurer that amends, delivers, issues, or renews a group or individual major medical policy of accident and health insurance in this State providing coverage for hospital or medical treatment shall provide coverage for hepatitis C screening and confirmatory testing consistent with reasonable medical standards. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Voluntary Health Services Plans Act, and the Illinois Public Aid Code.
Balanced Budget Note (Office of Management and Budget)
This bill will likely have a significant fiscal impact to the State’s Medicaid and Group Health Insurance programs due to increased screening and treatment of Hepatitis C. The anticipated costs are not available at this time. Passage of this bill without an accompanying source of revenue will result in an unbalanced budget.
Fiscal Note (Dept. of Healthcare & Family Services)
For purposes of this analysis, it is assumed that primary care providers are offering and/or recommending testing to at-risk populations based on sound medical reasoning. However, there may be an indirect impact to the Department from the publicity of hepatitis C legislation and the new hepatitis C drugs. Increased awareness of those in an at-risk population coupled with a mandate is likely to increase testing utilization. In FY14 and FY15, the Department did and is estimated to spend about $1.5 million for testing. A 10% increase in FY16 testing utilization would increase liability by $150,000 thousand. Additional testing would potentially double the population receiving treatment. This would result in an added pharmaceutical cost of $8.5 million annualized.
Emphasis added.
Look, this is a very worthy bill. Hep C has to be stopped. And $8.5 million is a teensy, tiny drop in the budgetary bucket.
House Speaker Michael Madigan joined the Illinois legislature 44 years and four months ago. Senate President John Cullerton arrived 36 years and four months ago. During their nearly 81 years, the Chicago Democrats engineered, sponsored and voted for pension giveaways, chronic overspending and tax laws that broke Illinois
No argument there, except maybe for how the tax laws “broke” Illinois and the general tone.
And Gov. Bruce Rauner, the guy Madigan and Cullerton are always vilifying? He got to Springfield just four months ago. Having played no role in creating the devastated Illinois of Madigan and Cullerton, Rauner has had to trim spending to correct the diabolically unbalanced budget that Madigan and Cullerton passed last spring for the fiscal year that ends June 30. Headline writers keep using the phrase “Rauner budget cuts” not because it tells the story, but because it’s more economical than: “Budget cuts you can blame on Mike Madigan and John Cullerton, who tried to placate angry voters before the 2014 election by appropriating gazillions of tax dollars that they knew Illinois never, ever, would collect.”
Those dollars would’ve been appropriated had Pat Quinn been reelected, but again, they’re mostly right about Rauner, except he demanded that the GA not pass a bill extending the tax hike, which would’ve avoided almost all the FY 15 problem. And he made $26 million in cuts that didn’t have to be made and which were quickly rescinded. Those are on him.
The Democrats’ evident strategy [for Fiscal Year 2016] is to hand Rauner a massively unbalanced budget, force him to make billions in unpopular spending cuts and coerce him to accept a big tax increase.
It’s not so much the cuts, it’s what’ll happen if they don’t get a budget deal and the government falls apart and lots of schools don’t re-open. But, whatevs.
Huh? We know voters aren’t dumb enough to be misled about budget slash 2.0 precisely because those voters weren’t dumb enough to be misled by budget slash 1.0. This isn’t some low-information yesteryear that Madigan and Cullerton fondly recall; Illinoisans understand that they have a financial crisis and a $100 billion-plus unfunded pension liability because their politicians played this game of trying to spend nonexistent money.
Um, didn’t they just say that the spending cuts would be “unpopular”?
* In conclusion, the editorial board notes approvingly that Rauner’s $34 million campaign warchest (ten times larger than the money Madigan and Cullerton have on hand) will help him explain these problems to the voters.
I’m assuming they wouldn’t be so thrilled if such a giant pile of cash was spent on the other side, however.
A Time for Choosing
State Senators Will Either Choose Reform or Side with Mike Madigan to Block it
SPRINGFIELD – With House Speaker Mike Madigan refusing to compromise and doubling down on a broken system, the state Senate is scheduled today to hold hearings on parts of Governor Rauner’s Turnaround Legislation.
Senate committees will conduct hearings on worker’s compensation reform, lawsuit reform and property tax freeze legislation that were filed last Friday. The Senate, however, is refusing to consider Term Limits and Redistricting Reform measures that were also introduced.
“Governor Rauner has made it clear that we cannot ask taxpayers to put more money into a broken system. The legislation being considered today represents some compromise reforms that are critical to turning Illinois around,” Rauner spokesman Lance Trover said. “Speaker Madigan and the politicians he controls in the House have made it clear all they want to do is raise taxes. Today, the Senate will begin to make clear whether they support reform or will side with Mike Madigan to block it.”
* From the Senate Republicans…
Senate Republican Leader Christine Radogno’s legislation that embodies portions of Governor Rauner’s Turnaround agenda will be considered in committee [today], Wednesday.
Senate Bill 884 (Lawsuit Reform) and SB994 (Workers’ Comp Reform) would have a dramatic impact on the state’s economic health and jobs climate. The bills will be considered in Senate Judiciary Committee, 10am Wednesday. The committee has moved to Room 212 of the Capitol.
Senate 1046 which would enact a statewide property tax freeze and empower local governments to lower their costs is posted for the Senate Executive Committee on Wednesday at 2pm, Room 212.
The Senate Democrats have bottled up the Constitutional Amendments which would allow term limits (SJRCA14) and redistricting reform (SJRCA15) on the ballot. Sen. Radogno’s letter to Senate President Cullerton calling for those amendments to be assigned to committee is attached.
Sen. Radogno’s letter says, in part:
“In response to the public argument made on your behalf that Constitutional Amendments are only considered in even-numbered years, I remind you of House Joint Resolution Constitutional Amendment 31, introduced on May 27, 2009 and adopted by both houses that same year. The chief Senate sponsor was Sen. Michael Noland.
HJRCA31 – establishing a gubernatorial recall process — was adopted after Governor Rod Blagojevich was impeached, convicted and removed from office by the General Assembly. The argument can be made that was an extraordinary time in Illinois history.
I argue this is no less extraordinary. People in this state fundamentally understand our system is corrupt and broken. It’s time to change it.”
* Meanwhile AFSCME Council 31 is also getting into the act…
TO: All Local Union Executive Board Members – Local Government and School District Locals
FR: Roberta Lynch, Executive Director
Mike Newman, Deputy Director
RE: Rauner Bill to Wipe Out Bargaining Rights
Many of you have been involved in the highly successful labor campaign to beat back Bruce Rauner’s “Turnaround Agenda” resolutions in local governmental bodies all across Illinois. Given how little progress he’s made there, Rauner is now taking his anti-union schemes directly to the Illinois General Assembly.
In the final days of the legislative session, he’s suddenly introduced a bill aimed squarely at employees of local governments and schools districts—taking away your rights to bargain over wages, benefits and other key conditions of employment. In a characteristically sneaky move, he’s packaged this ferocious attack on collective bargaining rights in the same bill as a freeze on property taxes. He’s trying to scare legislators into voting to obliterate union rights for fear that they’ll be painted as being in favor of higher property taxes if they don’t.
We’ve got to act immediately to block this legislation. In addition to harming every employee of local governments and school districts, it would also hurt every building trades employee in your area by barring local governments from paying the prevailing wage on construction projects.
SB 1046, SA #1 (Radogno) – Removes the ability of employees to collectively bargain with school districts and local governments over:
o Privatization of services;
o Pay increases;
o Health insurance;
o Use of employee time for union business
o Levels of staffing;
o Personnel evaluations
Prevailing wage would not be applicable to work done on projects performed on behalf of a local government or school.
SB 1046, SA #1 will be heard in Senate Executive Committee on Wednesday, May 27th. Please try to generate as many calls as you can from your members IMMEDIATELY. Choose the senators whose districts you are most likely to have members in.
…Adding… Press release…
Statement by Nick Klitzing, Executive Director, Illinois Republican Party
“Illinoisans are experiencing déjà vu this year because they’ve seen Speaker Mike Madigan’s political games time and time again. Instead of reforming a system that Madigan uses to reward those blindly loyal to him, he will pass a budget with a $4 billion hole and admit that the state doesn’t have the money to pay for it. For Madigan, kicking the can down the road is a lot easier than making tough choices and upsetting the status quo in state government that he has controlled for decades.”
If Democrats want to send a budget to Gov. Bruce Rauner, they might have to do so without the votes of some suburban party members in the Illinois Senate
Some Senate Democrats are balking at the idea of approving a budget that would spend $3 billion more than the state is set to take in next year as party leaders prepare to send the spending plan to Rauner.
“I’m not going to be supporting an unbalanced budget,” said state Sen. Mike Noland, an Elgin Democrat.
State Sen. Tom Cullerton, a Villa Park Democrat, said he’d also not vote for a plan that has a deficit that big. Democratic state Sens. Julie Morrison of Deerfield and Melinda Bush of Grayslake say they’re undecided.
“That (deficit spending) is kind of how we got here,” Morrison said.
* From the governor’s office…
ICYMI: The Daily Herald
SPRINGFIELD – The Daily Herald reports suburban Democrats do not back the proposed unbalanced budget by Speaker Madigan, which currently has a hole of $4 billion. If covering this story, please attribute the following statement to Lance Trover, Director of Communications.
“There is now bipartisan opposition to Speaker Madigan’s plan to double down on a broken system and avoid critical reforms needed to turnaround Illinois. Now is the time for all members of the General Assembly to make clear whether they stand with taxpayers and for reform or will continue to be controlled by Speaker Madigan.”
OK, first of all, Noland and Cullerton are both considering congressional bids. Bush and Morrison are targets. Targets and congressional candidates rarely vote for budgets.
But this does show the rapidly rising hostility between Rauner and the Speaker. And it probably tips us to the subject matter of the coming TV ad campaign.
Whew, man, it’s gonna be a long, hot summer.
*** UPDATE *** Speaker Madigan’s spokesman just said that perhaps the governor’s press secretary should “slow down his typing.”
Why would he want to do that? Because, Brownie said, there was nothing in what those Democratic Senators said to indicate that they favored the governor’s “non-budget items.”
[ *** End Of Update *** ]
* But Madigan’s proposal is being supported by at least one group. From a press release…
News Release: TAP Supports Madigan Budget Proposal
State leaders of The Autism Program of Illinois (TAP) today called on Illinois elected officials to adopt a state budget that meets the needs of Illinois’ most vulnerable citizens. Russell J. Bonanno, state director of the TAP network, called on legislators and Governor Rauner to avoid exposing Illinois families to months of uncertainty that will accompany an ongoing political stalemate over the FY 2016 budget.
“It has become clear that Illinois’ fiscal crisis cannot be solved simply by attempting to cut our way out of it,” Bonanno said. “It is both unfair and unreasonable to balance the state budget on the backs of those dependent on state human services programs – including the families of more than 45,000 children with an autism spectrum disorder. It is incumbent upon our leaders to fulfill one of the pre-eminent duties of government: to accomplish for our most vulnerable citizens those things which they cannot accomplish for themselves.”
Total funding for TAP, amounting to $4.3 million, was eliminated from the state budget for the coming fiscal year in the budget presented to the General Assembly on February 18. If TAP funding is not restored to the budget, more than 15,000 Illinois families would have nowhere to turn for critically needed services. Most autism services are not covered by the state Medicaid program, and TAP network partners have stated that most of the program’s 19 locations in Illinois would simply close their doors if funding is not continued. A number of families served by TAP have indicated they would seriously consider relocation to another state if AP funding is not continued. An effort to discontinue TAP funding for the remainder of the current fiscal year was averted when FY 2015 revenues came in at a higher-than-expected rate in April.
“While our state faces significant fiscal challenges, we want to make our position clear,” Bonanno said. “We support any budget proposal which preserves funding for critical human services programs, including TAP. At the present time, House Bill 4165, advanced by Speaker Madigan, is the only budget proposal under consideration that restores TAP funding. As the Speaker acknowledged, his budget proposal requires additional revenue to balance the budget. We support the Speaker’s budget and urge our political leaders to work together to balance the budget by finding revenues to meet our needs.”
“The elimination of TAP from the FY 2016 state budget, as proposed in February, would be penny wise and pound foolish,” Bonanno concluded. “Many studies, including those cited by the Governor in his budget message, conclude that early and effective intervention for children with an autism spectrum disorder actually saves money over the long run by preventing the need for more costly services later in life.”
Cook County State’s Attorney Anita Alvarez has torn a gaping hole in pension reform legislation being pushed in Springfield by Cook County Board President Toni Preckwinkle.
In a move loaded with political implications, Alvarez’s office wrote a legal opinion declaring that the bill “is unconstitutional” because it would reduce benefits in the county’s current pension system without bargaining those changes with employee labor groups.
The bill represents “a unilateral imposition of changed terms, many of which diminish and impair existing retirement annuity benefits,” states the letter, which is signed by Daniel Gallagher, deputy state’s attorney and chief of the Civil Actions Bureau. Preckwinkle’s proposal cannot stand after a recent Illinois Supreme Court decision tossing out pension changes that reduced benefits for state employees, the opinion says.
Preckwinkle’s office had no immediate reaction to the May 21 letter, which is labeled a “confidential attorney client communication.” Crain’s obtained a copy from a source who declined to be named.
The opinion is potentially very bad news for Preckwinkle, whose bill already faced heavy head winds in Springfield, where legislators are caught up in a wider budget war.
* I got to the Summer Camp music festival later than expected Friday. It was the usual stuff. Flat tire on the camper, which had been in storage all winter, and no water hookups at the campground meant I had to go on an H2O search before I arrived, finally finding some at a horse farm a few miles from the festival site.
So, I had plenty of water, but the filter housing had shattered during the winter (totally my fault) and I ended up with water all over the bathroom floor when I turned on the pump. After what seemed like hours, my friend and I eventually figured out how to reroute the water around the busted filter but then I tightened something too tight and broke a piece of plastic and there was more water on the floor.
Ah, the heck with it, my friend said. Nobody’s showering here anyway. Let’s go listen to some music.
And did we ever.
Trampled by Turtles was our first stop. Solid, as always. Umphrey’s McGee put on some astounding shows on Friday, including a hugely entertaining set with Gene Ween. And then we closed out the night with a 12:30 show by one of my favorite bands, Trigger Hippy. Right up front, man. I was in heaven.
Saturday started with blueberry pancakes (I went off Atkins and indulged myself), hippie shopping and then a show by Kung Fu. I’d never seen them before, but I’d heard some of their music and was delighted by their performance.
* My friend had to leave after that show (family obligations) so I was on my own. I strolled through the massive grounds at 3 Sisters Park and eventually figured I needed a nap. Late night, early morning, etc. On my way back to the camper I heard a band playing and wandered over to a small side stage. I was really tired, though, and decided to leave after one song.
But then I stopped on my way out and said to myself, “Self, you’re not here to sleep, you’re here for the music.” Plus, the band was pretty good, so I turned around and walked back to the stage.
* If you’re lucky, there’s a moment during a break when you can feel your usual worries and urgencies dissipate, or even disappear. Despite all the fun I’d had at the previous sets, I had allowed life’s hassles to interfere just a bit. The Fergus Daly Band finally broke that spell…
* They’re local legends in Lafayette, Indiana, but don’t hold their home state against them. They’re some cool dudes. I ran into them at the Violent Femmes show later that evening and had a chance to hang out with them a while, passing around flasks and basking in the revelry of a hard-charging Wisconsin band which hasn’t seemed to lose a step in all those years.
I told the group about how I’d left their show then turned around and came back, and mandolin/banjo/vocalist Joe Kollman shouted “You’re the one!”
The band didn’t make much money on the gig, but they were all hoping that their set would turn on at least one person. Maybe that person would tell somebody else and maybe word would spread.
I told them about my website and we talked briefly about Indiana politics (a sore spot with the band members), and I promised them a post.
I cannot promise that they’ll do for you what they did for me. It was a special set of circumstances, after all, and a special place. But with our state government falling down around our ears right now, it most certainly can’t hurt, right?
Ending a costly court fight that City Hall blundered into, Mayor Rahm Emanuel’s administration has paid more than $62 million to settle a dispute with the private operators of four city-owned parking garages downtown, records show.
The payment last month ended City Hall’s long and unsuccessful legal fight against claims from investors in the four privately operated garages under Millennium Park and Grant Park.
The dispute dates back six years. That’s when aides to former Mayor Richard M. Daley mistakenly approved a parking garage in the new Aqua building at 225 N. Columbus Dr.
Under the 2006 privatization deal, the Daley administration received $563 million to lease the parking garages for 99 years. As part of the deal, the city wasn’t supposed to allow any new competitors in a vast area surrounding the garages.
But less than three years after the Chicago City Council approved the deal, the Daley administration allowed the Aqua garage to open to the public just a block from the nearest of the privatized lots.
It was an alley fight of epic proportions, with taxpayers ending up with a costly fat lip.
Cook County taxpayers ended up being out $44.1 million as the result of a decade-long dispute that began when the county’s sewage-treatment agency blocked access to an alley next to its Near North Side headquarters, using a gate, dumpsters and parked cars to hinder construction of the luxury high-rise condo building next door at Michigan and Erie.
It ended with a fizzle, when the Illinois Supreme Court said last Sept. 24 that it was refusing to hear an appeal from the Metropolitan Water Reclamation District of Greater Chicago, which had been ordered to pay millions of dollars in damages to the condo building’s developers.
The district finally paid up on Oct. 2, writing a $39,495,017 check to the developers, NM Project Company LLC, to cover the cost of construction delays on the Ritz-Carlton Residences caused by the obstacles placed in the alley, newly obtained records show.
The district finished settling up its legal bills in December. Its total legal tab for the alley fight: $4,642,766.
Owners of the Casino Queen say they would like to buy Fairmount Park, contingent upon a deal to allow slot machine gaming at horse tracks being passed by the Illinois Legislature< The move also would also require regulatory approval by the Illinois Gaming Board.
The casino, located in East St. Lous, and the horse track, located in Collinsville, are longtime competitors for area gambling dollars and have been at odds over previous proposals in the General Assembly to allow slot machines at tracks. [...]
“This agreement recognizes a two-step process,” [Casino Queen President Jeff Watson] said. “The first step was reaching an agreement and the second step is working with our legislators to craft a gaming bill that ensures the success of both companies while generating much-needed tax revenue for the state of Illinois and local communities.” [...]
State Sen. James Clayborne, D-Belleville, said he is hopeful legislation can be passed to complete the deal.
The last gaming bill floated in 2014 cut Fairmount Park out of the slots at tracks provision after demands from the Queen.
Despite overwhelming support from voters at last fall’s general election, an increase in the minimum wage appears to be dead in the spring session of the Illinois General Assembly.
Demonstrators were still rallying for it in the Capitol as recently as last week, and Sen. Kimberly Lightford’s Senate Bill 11 passed that chamber 35-18 in February. The Maywood Democrat’s bill would increase the hourly minimum wage from $8.25 to $9 everywhere in the state except Chicago, which is moving toward a wage of at least $13 per hour. But three months later, Lightford’s proposal has yet to move in the House.
SB 11 would take effected July 1, and each year on that date there would be an increase of 50 cents until the state’s minimum wage reached $11 in 2019. Chicago Democratic Rep. Art Turner is chief sponsor of the legislation in the House. With some legislators focused on dodging deep program cuts and eliminations, Turner says the minimum wage bump may end up sidelined — for now.
* From a newspaper column I wrote last December about the minimum wage hike…
Speaker Madigan himself shares in the blame here. Yes, he’s not all-powerful, but he probably could’ve passed a minimum wage bill during the spring session. Instead, he didn’t want to rile up business groups before an election and believed he could use the issue to fire up his party’s base and the unions in the November election.
As Champaign News-Gazette columnist Jim Dey wrote not long ago, former Senate President Phil Rock’s autobiography contains a story which explains Madigan to a “T.”
Rock wrote in his book “Nobody Calls Just to Say Hello.” that he wanted to pass a bill guaranteeing women unpaid maternity leave. Rock told Madigan and another House Democrat that he’d like to get the issue off the table by passing it. The Senate President believed Madigan was stalling.
“We jousted back and forth, and one of the House members said to me, ‘You know, I’m getting a little tired of you trying to do what’s right all the time. We’ve got a great political issue here,’” Rock wrote.
So, the answer is it’ll pop back up whenever Madigan thinks it’ll be useful against the governor. And it’s probably safe to say it’ll be designed to be vetoed. Madigan is closely allied to the Retail Merchants Association, which vehemently opposes a minimum wage hike.
* Speaker Madigan on Gov. Rauner tying his Turnaround Agenda to the state budget…
“I’m not going to say that the gentleman went wrong, I’m not going to say that,” Madigan says. “What he’s attempting to do is mix apples and oranges. He’s attempting to bring these non-budget issues into the budget making. That’s where there’ a pretty serious difference of opinion between he and I and other members of the legislature.”
Gov. Edgar used to try and keep the budget separate from other issues (partly because of Madigan’s asks), but Madigan occasionally negotiated dozens of side deals unrelated to budgets, but tied directly to the budget outcome under Gov. Rod Blagojevich.
Now, I want you to put your Rauner hate and your Madigan hate out of your collective minds and forget about this year’s fight for just one moment…
* The Question: In general, do you think that budget deals should be negotiated on their own, or do you think governors and legislative leaders should be able to make side deals a prerequisite for passing budgets? Take the poll and then explain your answer in comments, please.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
My name is Molly Akers. When a lab switched my biopsy slide with another woman’s, I was misdiagnosed with breast cancer and a doctor needlessly removed my breast.
Real people suffer when such errors occur. I needed several surgeries to fix the preventable mistake and spent countless hours in physical therapy. My young children were terrified to see me in pain while their father washed my hair or helped me out of bed.
Due to no fault of my own I had an unnecessary mastectomy. If powerful corporate interests had their way, my ability to pursue fair compensation for my injuries would have been severely impaired. At best I might have received a token payment.
Our civil justice system protects our constitutional rights, so we can hold wrongdoers responsible. Our courts, funded with our tax dollars, provide accountability and effect changes that reduce the likelihood of serious mistakes reoccurring.
Something terrible happened to me, but it could have been you or someone you love. Please protect open access to Illinois courts.
The Illinois Trial Lawyers Association fights to ensure all citizens get equal footing in the courtroom. To learn more about Molly, click here.
Illinois businesses are poised to take advantage of investment crowdfunding in the wake of legislation that passed out of the Illinois Senate in unanimous fashion on May 20. House Bill 3429, which also passed unanimously in the Illinois House of Representatives, will now move to Gov. Bruce Rauner’s desk.
With the governor’s signature, Illinois will become home to the most competitive crowdfunding regulations in the nation. […]
The JOBS Act dictated that investment crowdfunding could be done by creating intrastate exemptions – meaning Illinois businesses could only raise money from Illinois residents – and put the onus on state lawmakers to develop crowdfunding exemptions for their states before constituents could use this type of financing. Pending the governor’s approval, Illinois will become the 19th state to pass a crowdfunding exemption.
The bill will give Illinoisans the highest investment limits of any regulatory framework for crowdfunding in the country. It would also allow an especially broad pool of eligible investors while ensuring flexibility from the Secretary of State’s office to help with customizing the rules in order to avoid stumbling blocks appearing in other states. The rules of the game for crowdfunding in Illinois include:
* Companies with audited financials can raise up to $4 million per year
* Companies with unaudited financials can raise up to $1 million per year
* Accredited investors can invest as much as they want in each offering
* Unaccredited investors can invest up to $5,000 per year in each offering
This innovative form of funding is described by economist John Berlau as “finance of the people, by the people, for the people.” For this reason, as well as crowdfunding’s explosive potential for economic growth in a state with a moribund business climate, investment crowdfunding has been a key element of the Illinois Policy Institute’s legislative agenda for entrepreneurs, which was developed in September 2014.
Under state law, local governments in Illinois don’t have the power to make necessary reforms to their pension systems. Even in the most extreme cases of fiscal instability, bankruptcy is not an option. This leaves local officials with few options, and often leaves taxpayers stuck paying higher taxes and fees when local governments don’t make spending cuts.
Local governments should have more control over how they operate. That means having the option to file for bankruptcy and it also means having the ability to reform local pension systems. A recent piece of legislation filed by state Rep. Ron Sandack, R-Downers Grove, would address the former.
Sandack’s proposal would give Illinois municipalities the option to file for bankruptcy. “I know what difficulty it is being in charge of a municipality … with ever-increasing police and fire pensions and very little in the form of power to do anything about it,” Sandack said. The goal of the proposal is simply to give towns in Illinois an additional tool that may be used to help control local finances.
As Sandack correctly points out, pensions are a driving factor in the conversation over municipal bankruptcy in Illinois. Municipalities across the state are struggling under the weight of rapidly increasing pension costs. Just between 2000 and 2010, the aggregate unfunded pension liabilities for local pension systems in Illinois grew to more than $12 billion from $1 billion.
We’ve seen time and again that municipal bankruptcies tend to give bondholders a haircut and barely touch pension payments. In these uncertain times, when the governor is pushing to slash half of local governments’ revenue sharing and freeze local property taxes and with no pension solution in sight, if you want to tank just about every municipal credit rating in this state, then go ahead and pass that bill.
Since the November election, Mr. Rauner’s campaign committee has raised more than $21 million, with nearly all of the money coming from Mr. Rauner, Mr. Griffin and Richard Uihlein, chief executive of a Wisconsin-based packaging company.
The committee on its own appears to be outpacing the combined total raised by more than 30 governors starting four-year terms in 2011, according to state-level data aggregated by the National Institute on Money in State Politics. Similar data isn’t yet available for governors elected in 2014 because of state-by-state filing requirements.
In addition to his campaign committee, Mr. Rauner has a newly formed political-action committee that has raised $4.25 million in recent weeks from Mr. Zell and him.
A committee formed by Democrats with ties to the business community also has entered the budget fray, frustrated with the current party leadership. So far it has taken in $8.5 million from five individuals, including Sam Zell’s wife, Helen, and Texas billionaire John Arnold, according to state campaign finance records.
“It creates a very different environment where you have a small number of wealthy individuals who come in—and in a very short time—create a huge presence,” said Kent Redfield, a professor emeritus of political studies at the University of Illinois at Springfield.
[h/t: Wordslinger]
Rauner would say he’s just trying to break the stranglehold of the special interests, and that ain’t gonna be cheap. But that assumes Rauner and his wealthy pals are on the right path for Illinois.
Whether the money will be effective in helping to move Mr. Rauner’s agenda is an open question. The governor last year poured millions of dollars into the Illinois Republican Party, local committees and legislative races, and the GOP didn’t make a dent in the Democratic majority even as Republicans gained in states nationwide.
And Mr. Schwarzenegger’s series of ballot initiatives all failed despite an infusion of millions from his personal coffers.
Already there are concerns that the recent fundraising concentrates influence over public policy in the hands of a small group of wealthy individuals.
“I’m certainly not going to claim under the old system the average Joe got fairly represented. What I’m saying is this may be an even more unfair system,” said David Melton, executive director of Illinois Campaign for Political Reform.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Christopher Millard, Mayor, Byron, Illinois:
As Mayor of Byron, I know firsthand of the significant impact Byron Generating Station has on my community and our families. It injects millions annually into the local economy and provides 75 percent of the funding for our local schools.
But most importantly, it employs 860 employees, including more than 180 of our friends and our neighbors in Byron alone - the same men and women who shop at our local businesses, coach our children’s sports teams and volunteer around our community. Without them, Byron wouldn’t be the same.
Today outdated energy polices could force Byron Generating Station to close prematurely. The closure of plants in Wisconsin and Vermont has taken a real toll on families and communities that depended upon the jobs that those plants provided. Such a loss would be devastating to Byron, and is why I support the Illinois Low Carbon Portfolio Standard.
The Low Carbon Portfolio Standard would bring our state’s energy policies into the 21st century and help prevent plants like Byron Generating Station from closing.
I urge members of the General Assembly to act now and vote YES on the Low Carbon Portfolio Standard - House Bill 3293 & Senate Bill 1585.
The Rauner Administration is pushing for sweeping changes to the AFSCME Master Contract. With dozens of proposed changes to contract language, pay and benefits on the table, they are aiming to drastically diminish the rights of employees, weaken the role of the union, and drive down the standard of living of our families.
Rauner has said that if we don’t agree to his terms, he’ll force a strike and shut down state government until we do. Those kind of threats don’t serve the bargaining process or the citizens of our state well. The services we provide are essential to Illinois citizens. And there’s no way that ‘replacement workers’ could perform the complex and challenging jobs that we do. That’s why our union is doing everything possible to reach a fair settlement at the bargaining table.
And that’s why it’s essential that we stand up and stand together now to say “NO WAY” to Rauner’s demands. We know that times are tough and we’re prepared to do our part, but we won’t go backwards or back down when it comes to our rights, our jobs, or our economic security.
On June 9-11, AFSCME local unions will hold rallies at worksites all across the state. Our message is clear: “State workers deserve a fair contract. Illinois citizens deserve quality services.” Contact your local union for the date, time and location of the rally nearest you.
And be sure to reach out to your local community. With the AFSCME “Friends and Family” cards or with yard signs or window signs, ask local businesses, elected officials, other labor unions, to stand with state workers. Remind them of the vital services that we provide and on which citizens depend.
Your AFSCME Bargaining Committee is back at the table with the Administration this week—and again next week. The Committee is working intensively to reach an agreement, but Management is showing little signs of moving off its hard-line demands.
The current union contract will expire on June 30. If no agreement is reached by then, normally the parties would agree to a contract extension that keeps the terms of the current contract in place. But there’s no way to know at this point whether the Rauner Administration will agree to such an extension.
Whatever may come, we can withstand the storm if we continue to build on the commitment and unity that are the hallmarks of our union.
• No wage increases.
• Freeze all step increases.
• Eliminate longevity pay (including for all those currently receiving it).
• Eliminate almost all semi‐automatic promotions.
• Eliminate maximum security pay.
• Reduce call‐back pay and stand‐by pay.
• Restructure the group health plan to drastically shift costs to employees—with employees paying 40% of the premium cost PLUS 40% of the cost of medical care, paid through much higher co‐pays, deductibles, and co‐insurance. Employees’ costs would increase by thousands of dollars.
• Increase dental premiums by more than 100%.
• Increase retiree health insurance costs.
• Increase “out‐of‐pocket” maximums, likely to the highest allowable under federal law.
• Require all employees hired before July 1, 2011 to “voluntarily” agree to reduce their pension benefits to the Tier 2 level.
• Eliminate the Upward Mobility Program in its entirety, as well as all other forms of tuition reimbursement, continuing education, and licensure reimbursement.
• Calculate overtime pay based on over 40 hours worked in a full week (and excludes benefit time).
• Reduce amount of holidays and vacation time.
• “Management Rights” clause would not be limited by the terms of the Union contract.
• Allow Management to suspend the contract if it determines an “emergency” exists.
• Redefine grievances to refer only to violations of the “express provisions” of the contract.
• Refuse to allow union dues, PEOPLE contributions, or Fair Share fees to be deducted from employees’ paychecks.
• Delete all language that restricts subcontracting or personal service contracts—allowing Management to privatize any state services‐‐replacing bargaining unit employees with vendor employees‐‐at any time without any notice, justification or review.
• Void the Memorandum of Understanding that places limits on mandatory overtime, allowing Management to mandate overtime without any restrictions.
• Eliminate most seniority rights during the layoff process including eliminating all bumping rights.
• Require employees to use their own time for grievance meetings.
• Require Union stewards to use their own time to represent employees.
• Completely eliminate requirement to bargain about changes in working conditions.
I had heard rumblings about that push to force union members to “voluntarily” give up their Tier 1 pension benefits, but found it hard to believe.
…Adding… This was sent to me by a reader…
I was told by a union rep that the governor is attempting to tie the Tier 2 option with the new contract. If you vote for yes for the new contract, the state employee is voting yes for the Tier 2 option. If the employee wants to vote against the Tier 2 option, they automatically vote against the contract.
“The House Democrats affirmed today that they don’t want to pass reforms that will fix a broken state government, but only want to raise taxes. Instead of working with Republicans in a bi-partisan manner to fix the deep financial crisis that they caused, Democrats insist on continuing down the path of crafting and passing unbalanced budgets that spend billions more than we can afford.”
* Senate Republican Leader Christine Radogno…
“This is a replay of how legislative Democrats have run Illinois for the past decade. Game playing, a complete disregard for balancing the budget and a burden on the taxpayers who pay the bills. We’ve spent weeks trying to negotiate sound public policy that would stop the bleeding, help create jobs and positively impact our budget. They’ve spent that time crafting another phony budget and a plan for more Democrat tax increases.”
Discuss.
*** UPDATE *** From the ILGOP…
Statement by Nick Klitzing, Executive Director, Illinois Republican Party:
“It’s like déjà vu, all over again. Speaker Mike Madigan and the politicians who blindly follow him are playing games in Springfield like they’ve done for decades. Madigan and his cronies refuse to make any tough decisions and honestly confront a crisis of their own making. Madigan did it last year. He’s done it year in and year out since he took control in 1983.
Governor Bruce Rauner has proposed bold reforms to change business-as-usual in Springfield. He’s eagerly searching for a partner who is willing to work with him and compromise to reform the state. Unfortunately, Speaker Mike Madigan has shown yet again that he cares more about his political fiefdom than solving the state’s crisis.”
