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*** UPDATED x2 - Rep. Greg Harris responds *** Could Moody’s downgrade Illinois even after an override?

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Media advisory…

Moody’s has placed the State of Illinois’ Baa3 rating on review for possible downgrade.

The review incorporates our expectation that the Illinois House of Representatives will override Governor Rauner’s veto and implement revenue increases as part of the budget proposal. The review will assess the budget plan’s credit implications and address the likelihood of further deterioration in the state’s most pressing credit challenges:

    · Pension liabilities (appx. $251 billion in FY ending June 30, 2016)
    · Backlog of unpaid bills (appx. $15 billion)

Moody’s places ratings on review when a rating action may be warranted in the near term, but when further information or analysis is needed to reach a decision. A majority of reviews are concluded within 30 to 90 days.

* More…

New York, July 05, 2017 — Summary Rating Rationale

Moody’s Investors Service has placed the general obligation rating of the State of Illinois, currently Baa3, under review for possible downgrade following the state’s failure to fully enact a timely budget for the fiscal year that began July 1, and its failure to achieve broad political consensus on how to move toward balanced financial operations. The review also applies to several related state debt ratings: the Baa3 assigned to sales-tax backed Build Illinois bonds and the Ba1 ratings assigned to Illinois subject-to-appropriation bonds, the convention center bonds issued by the Metropolitan Pier and Exposition Authority and bonds issued under the state’s Civic Center program. Illinois has outstanding debt of about $32 billion, of which 82% is general obligation.

The state’s government in recent days has made legislative progress towards a fiscal recovery plan based on permanent income tax rate increases, after going through two fiscal years without a complete budget in place. The decision to place the state’s ratings under review for downgrade incorporates our expectation that the legislature will implement revenue increases, overriding the governor’s vetoes. The review will provide a limited amount of time for the Illinois General Assembly to finish voting on the measures, and for assessment of the plan’s credit implications. The review process will also address the likelihood of further deterioration in Illinois’ most pressing credit challenges: its severely underfunded pensions and a backlog of unpaid bills, which has doubled during the past year.

Despite the progress toward budget balance that the emerging fiscal plan embodies, the plan entails substantial implementation risk. The governor yesterday vetoed the plan’s revenue, spending and implementation legislation, citing a $2 billion current-year deficit and the plan’s failure to incorporate proposals in areas such as workers compensation insurance reform and caps on local property taxes. The plan’s approval relied almost entirely on Democratic party support in the state’s senate, and a vote to override the governor’s vetoes of the measures has been deferred by the state’s house of representatives. The plan therefore appears to lack broad bipartisan support, which may signal shortcomings in its effectiveness once implemented. In addition, the state’s baseline tax collections declined in fiscal 2017, suggesting that any tax increase may yield less revenue than anticipated in coming months.

So far, the plan appears to lack concrete measures that will materially improve Illinois’ long-term capacity to address its unfunded pension liabilities. A June 30 order from a federal judge that the state accelerate payments owed to Medicaid managed care organizations and service providers cast doubt on the state’s immediate ability to keep up with its statutory pension contribution schedule while also meeting obligations for debt service, payroll and school funding. The state anticipates addressing its approximately $15 billion backlog of payments owed partly through a bond offering that probably will rank among the largest in the state’s history. This component of the state’s broader fiscal plan leaves Illinois not only dependent on market access to ease liquidity pressures, but also facing a significant increase in its tax-supported debt burden. Moreover, the effectiveness of the state’s strategy to contain and reduce its deferred bills, once the backlog-financing debt has been issued, remains to be seen.

Whew. It never ends.

* By the way, the lead House Democratic budget negotiator Rep. Greg Harris told me this about a recent Tribune story claiming that the bill backlog could be reduced as much as $8 billion…

$6 billion is the total that could be authorized. Currently the revenue available would support $3 billion which could turn to $5 billion if it is used to pay down [federally] matchable Medicaid bills. Should another revenue source become available you could have another $3 billion issuance.

$5 billion is only about a third of the current backlog.

…Adding… Rep. Harris just sent me another text…

There are several other sources to pay down old bills besides bonding. There is $1.2 billion in interfund borrowing, $300 million in limited sweeps, about $800 million in EAF and CHSF and several hundred million from Drug Rebate Fund so the total resources added to the GO bonding would make about $8 billion available for backlog of bills

*** UPDATE 1 ***  Just for clarity, I followed up with Moody’s and asked: “So, are you saying that Illinois could still get downgraded even if the House overrides the governor’s vetoes?” The response from Joe Mielenhausen…

Essentially, yes.

We are anticipating that the House will override the veto and the budget plan will be implemented, but essentially we’re now reviewing how the budget implementation will impact the state’s two most pressing credit challenges – pension liabilities and the backlog of unpaid bills – and whether this mitigation will be enough to avoid another downgrade.

*** UPDATE 2 *** House Democratic budget negotiator Rep. Greg Harris…

All 3 rating agencies have been clear that we must override the Governor tomorrow or we could hit junk bond status. Moody says they assume we will override and “….will provide a limited amount of time for the General Assembly to finish voting”. That time will be tomorrow afternoon. Passing a balanced budget is clearly the single most important thing we must do to start stabilizing our State.

  159 Comments      


Mrs. Rauner’s group urges budget veto override

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Earlier today, Gov. Rauner told reporters that he would do “everything possible” to stop his budget vetoes from being overridden. He might want to check in with his wife. This press release is from Illinois Action for Children and Mrs. Rauner’s Ounce of Prevention Fund…

Over the long holiday weekend, the Illinois General Assembly worked in a bipartisan manner to end the unprecedented budget impasse, passing a full-year budget for FY2018 and the revenue increases needed to fund that budget. The governor vetoed the bills and the Senate has voted to override that veto. We strongly urge the House of Representatives to now follow the Senate in voting to override the governor’s veto.

The approved budget — the first full-year, fully-funded budget since FY2014 –provides significant funding to early childhood programs including Preschool for All and Prevention Initiative, home visiting programs, the Child Care Assistance Program, and Early Intervention.

We applaud the members of the General Assembly in both parties who took the tough vote to try to end this impasse. We hope the House can take one more important vote to move Illinois forward.

While it will take some time for early childhood programs to rebound from the impasse, with this override, we are relieved that early childhood programs will be able to shift their focus to rebuilding their programs, providing vital services for children and families, and planning for the future of those children and families they serve.

So, apparently, Diana Rauner is a Speaker Madigan “subordinate” and a supporter of our “broken” system.

Man, what a weird state this is.

…Adding… From the Ounce’s Policy Specialist…


Hoo, boy.

  49 Comments      


Something big finally shuts down

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Not-for-profit human service groups have done their very best to continue providing services without state money. Countless private companies that provide goods and services to state facilities like prisons haven’t stopped doing their jobs. But all of a sudden road work stops? This seems a bit odd

Road construction workers across the state were sent home Monday — or not called in at all — with the budget-related shutdown of approximately 900 transportation projects totaling $3.3 billion, according to one of the state’s largest contractor associations.

The Illinois Department of Transportation estimates 20,000 workers are affected.

“By-in-large, it’s a statewide construction shutdown. One member told me he asked people to come in, just in case there was a (budget) settlement, but he sent them home. Most asked them to stay home until there’s a resolution,” said Mike Sturino, president and CEO of the Illinois Road and Builders Association. […]

An email alert on Monday to road-association members advised the shutdown would continue, even though state lawmakers reported some progress toward a budget. Illinois entered its third fiscal year without a full-year budget on Saturday. […]

IDOT notified contractors days ahead of the start of the new fiscal year the department could no longer pay its bills as of midnight June 30 without a budget. Contractors were instructed to secure construction sites, including advisories to motorists.

  29 Comments      


Rauner vows “everything possible” to stop override, lashes out at Madigan, shrugs off possible junk bond rating

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Gov. Rauner was asked today what he planned to do to stop his vetoes from being overridden

Rauner: We are doing everything possible to make sure my veto stands and that it’s not overridden.

Reporter: Like what?

Rauner: Everything possible.

* And he more than implied that the Republicans who broke ranks were tools of the House Speaker. Here’s what he said when he was asked about the Republicans

You know what? Speaker Madigan and his subordinates should not be working for Wall St. credit agencies, they should be working for the people of Illinois. […]

What we have is a continuing failure by elected officials in Springfield on both sides of the aisle. It’s been led by Speaker Madigan for 35 years. This is more of the same. Our system is broken.

* Asked whether he was concerned that blocking an override would hurt the state’s credit rating

Rauner: We have to put the peoples’ concerns, what the people need and want ahead of all else. The people should come first in Illinois. Not Wall St., not special interests, not the political class, not the political insiders, not the politicians, not the folks who make money from the government.

Reporter: You don’t think people care about a junk credit rating?

Rauner: What people want is jobs. We need more jobs. What people want is lower property taxes. What people want is a political system that’s not rigged, that’s not dominated by one person, or it’s not corrupt and corroded with special insider deals. People want change, and let’s be clear, this budget is more of the same, this budget and this tax hike is what’s been going on in Illinois for the last 35 years and the system is broken and this tax hike will not fix it.

* More on Wall Street

Don’t listen to some Wall St. firm. That’s not what matters. Listen to the people of Illinois. It’s their concern, it’s their lives… Don’t listen to Wall St., don’t listen to a bunch of politicians who want power and to stay in power like they’ve been for 35 years. Listen to the people of Illinois. People of Illinois don’t want more taxes on their lives. People of Illinois want more jobs. People of Illinois want property tax relief. People of Illinois want a better future for their kids and their grandkids. People of Illinois want a political system that works for them not for the political insiders. And term limits can help get that done. And the people of Illinois want those things.

He did say at one point that his office has been in frequent contact with credit agencies.

* The governor claimed that he’s been negotiating in good faith for “more than two years.” He claimed Madigan “wanted a crisis” to force a tax hike

And we have got to stand against it. We’ve to to get the people to realize, Democrats, Republicans, independents, this is not about partisanship. This is about the people coming together, rising up and saying, ‘Enough. No more. No more of this system that Speaker Madigan and his loyalists have been doing to us.’

* He was then told by a reporter that he didn’t sound too concerned about a downgrade

What I’m concerned about is the people of Illinois, so they have a better future. That’s all that matters. We’ve got to put the interests of the people ahead of all else. That means jobs, more good paying jobs. That means property tax relief. That means term limits. And that means better education funding, more education funding for all schools on an equitable basis. Not a special deal for certain politicians here in Chicago. That’s what that means.

* The Pritzker campaign was there, by the way…


…Adding… Yep…


  119 Comments      


From rock-ribbed conservative to “traitor” with one vote

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* From November of last year

Tyler Diers of the Illinois Chamber of Commerce, visited Highland to present the Champion of Free Enterprise Award to Rep. Charlie Meier at Windows on Broadway with Highland Chamber Members and business leaders in attendance. The award acknowledges state legislators who recognize the importance of free enterprise and who agree with pro-business legislative policies to further economic opportunities for Illinois businesses and their employees.

“With Illinois’ lackluster economic performance, there has never been a more crucial moment for our state to embrace pro-business legislators who represent the business community and support the fundamental principles of the free market system,” said Todd Maisch, president and CEO, Illinois Chamber of Commerce.

* He’s pro-life and pro-gun. But Meier is not one of those “burn it all down to save it” types. From his 2015 reelection announcement

Meier said he will continue to advocate for the Warren G. Murray Developmental Center in Centralia. […]

Getting the state’s fiscal house in order will also be a main priority, Meier said.

* From his campaign website

Locally Charlie is always volunteering. He has been a 4-H leader for 27 years. Charlie has been a Charter Member of the Heritage House and Museum in Okawville since 1982 helping it grow into 3 properties, one of which is on the National Register of Historic Places. Charlie has been an instrumental player in restarting the local AG and FFA program at Okawville High School. Charlie has been a Chamber member since 1992 and presently serves on the tourism tax committee. He is a life member of St. Peters U.C.C. Church, Sunday school teacher, and has served on numerous committees there.

The man has a good heart and clearly loves his community.

* Meier also campaigned against higher taxes. From his campaign site

Charlie knows we can run Illinois with NO NEW TAXES. He has served on the Washington County Board for the last 5 years. One major project going on is the building of a new Judicial Building and preserving the historic Court House. Due to the abilities of Charlie and the board the judicial building will be built with NO TAX INCREASES. This is what we need in Springfield, someone who will not raise your taxes, but continue to move forward on improvements.

* In June, when Gov. Rauner announced the special sessions, Meier said this

Meier is hopeful that under Rauner’s leadership, lawmakers will reach a compromise.

“Before I was elected to serve in the legislature, Governor Blagojevich called several special sessions which resulted in no action by the General Assembly,” Meier said in his statement. “I hope the outcome will be different this time due to the fact Speaker Madigan is working with a different Governor. A Governor that actually has a plan to improve our state instead of digging our state deeper into debt.”

But Rauner clearly didn’t have a viable plan. So, some House Republicans started negotiating with Democrats on a budget deal.

* And then 15 House Republicans, including Rep. Meier, voted for it. From Meier’s statement

The fact of the matter is our state is penniless, flat out broke. Yesterday, the Illinois House voted to send Governor Rauner a budget which spends $3 billion less than if we were to continue operating without a state budget. In addition to passing a budget, the House approved a 1.25% income tax increase, a proposal I supported. The truth is, this wasn’t easy, I realize a tax increase isn’t popular. However, this was the viable option to keep our state government from shutting down and putting lives at risk.

* From today’s Belleville News-Democrat

They’ve called him a traitor, a liar, and a Democrat.

Since voting Sunday to increase Illinois’ personal income tax rate by 32 percent, state Rep. Charlie Meier has been lambasted on social media. […]

One commenter wrote: “This is just another ‘kick the can’ exercise. I ain’t buying the statement that this was such a difficult decision. Is anybody else taking a ‘haircut’ on this besides the taxpayer?”

Another wrote: “I cannot begin to tell you how disappointed I am. You are taking food from my kid’s mouth and giving it to the Chicago Democratic Machine. Shame on you.”

And yet another wrote: “Madigan is playing chess and you’re playing checkers. You caved. If people wanted a tax-and-spend Democrat they would’ve voted for one. Oh, I guess they did.”

* And so, when I read stuff like this

But did all of them truly break? Did the governor release pressure on some of those members in the eighth hour, knowing that a handful had solidly crossed over? That way, a budget finally passes.

I would refer them to Charlie.

  63 Comments      


Kobach Commission makes a big oops

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* The President’s Election Integrity Commission didn’t know that Illinois has a State Board of Elections

Add Illinois to the list of states that are balking at turning over massive amounts of voter data that normally is kept private to a commission chaired by Vice President Mike Pence.

In an interview, Ken Menzel, general counsel to the Illinois State Board of Elections, said the board this morning finally received a written request from the Presidential Advisory Commission on Election Integrity. The commission says it’s trying to prevent voter fraud; Democrats say it is attempting to drive down voter turnout among progressive voters.

The request mistakenly was sent to Secretary of State Jesse White, whose office passed it on to the board.

Menzel said the matter will be researched and referred to the board for possible action. But the board doesn’t meet until Aug. 22, Menzel added, so nothing is going to be happening soon. And it’s clear that at least some requested data will not be going to the feds.

As I’ve already explained (click here) Illinois has strict rules about what the board of elections can and cannot divulge.

  24 Comments      


Illinois bonds rally while Tribune tries to kill the deal

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* This is such a weird state. The governor vetoes a budget and a tax hike and the bond markets rally because traders figure the General Assembly will ignore him

Illinois bonds surged as the legislature moved closer to ending a record-long impasse over the budget, reducing the risk that the state’s bond rating will be cut to junk.

The rally came after the state senate overrode Governor Bruce Rauner’s veto to approve tax increases and the first full-year budget in two years, sending the measures to the House of Representatives. Without a spending plan in place, Illinois had been squeezed by chronic deficits and credit-rating companies warned that they may withdraw the state’s investment-grade rank, a step that could have prevented some investors from buying its debt.

“It does look good — it looks like the momentum is there,” said Gabriel Diederich, a portfolio manager at Wells Fargo Asset Management, which has Illinois debt among municipal bond holdings. “When you get shreds of fiscal management and fiscal prudence, even small steps have been greeted positively.”

The average price of taxable general-obligation bonds due in 2035, the most actively traded, jumped 6.5 percent to 110.5 cents on the dollar Wednesday, the highest since the end of October. That pushed the yield down to 6.36 percent from about 7 percent on July 3. The state’s bonds were the most heavily traded municipal securities Wednesday.

* Meanwhile, the Tribune editorial board makes a last-ditch effort to stop the override

Members of the Illinois House, the decision falls to you. Will you override Gov. Bruce Rauner’s veto of a permanent, 32-percent increase in the personal income tax? Or will you instead insist, first let’s agree on the reforms that many of us promised voters would have to be part of any tax deal?

We ask because if you vote this tax increase into law and then have to admit to your constituents that accompanying “reform” bills are really just diluted eyewash, you’ll look like chumps for Speaker Michael Madigan.

At this writing, an override looks like a terrible risk for you. We say this not because we’re reflexively opposed to tax increases — we aren’t. We say it because Illinois citizens need offsetting fixes from Springfield. Otherwise you’ll own the same old state government and weak Illinois economy, but at a price you’ve just raised by 32 percent. […]

So, House members, if you’ve delivered solutions — on property taxes, on pensions, on work comp, on government bloat in Illinois — then maybe you should vote to override Rauner’s veto.

The Tribune argues that the budget chaos should continue until the governor’s reforms are enacted, but 16 Republicans specifically voted to end that insane and protracted chaos.

You’re going to see a whole lot more arguments like this before tomorrow’s expected override vote.

* Related…

* McSweeney files bill to repeal Illinois House’s permanent income tax hike

  42 Comments      


Other ways of looking at the tax hike

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* There are several ways to look at this new tax hike. You can, for instance, click here and check out the Illinois Policy Institute’s tax hike calculator. Just remember that if you deduct your state income taxes on your federal tax form you’ll have to lower that amount a bit more.

So, we now know how much this will cost you, personally as an individual. But what sort of impact will it have on the state economy as a whole? Let’s first look at the income tax hike revenue projections…

Individual: $4.453 billion
Corporate: $514 million
Total: $4.967 billion

* Let’s start with individuals. According to the Federal Reserve of St. Louis, which used US Bureau of Economic Analysis numbers, total personal income in Illinois last year was $673.983 billion.

So, the new tax will eat up 0.661 percent of total personal income in Illinois. Just for fun, add in the corporate tax projection and it’s 0.737 percent of total personal income (it wouldn’t be that high, but whatever).

* Also according to the Federal Reserve, Illinois’ 2016 Gross State Product was $791.608 billion.

So, the tax hike represents 0.627 percent of total Illinois GSP.

  98 Comments      


Where does the budget come up short?

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Tribune

In his Tuesday veto message, Rauner asserted that the budget package was $2 billion out of balance. His office says the legislation counts $500 million in savings on pension costs that aren’t guaranteed and fails to account for $1.5 billion in spending from the budget year that ended Saturday. That money would have to be paid out of the current budget year funds, Rauner’s team contends.

I went over the governor’s veto in detail with subscribers today, but since this is in the public domain, let’s look at it.

* If you click here, you’ll see that the Republicans’ “Capitol Compromise” plan (labeled “Brady June” in the document) booked $1.25 billion in pension savings. As we’ve discussed many times before, the governor’s first budget proposal booked a whopping $2.2 billion in immediate pension savings.

So, spare me the outrage.

* Now, on to the second point. The governor spent a ton of money without any appropriations. He signed contracts for goods and services knowing that there was no legally authorized cash to pay for them. And, now, after spending that unauthorized money, he wants the General Assembly to pay off his bills.

Despite my snark, the state does need to pay those bills. But if the governor wants that revenue, he needs to go negotiate with the leaders to generate it, or make cuts on his own. And that would’ve been much easier to do if he had used his line-item and reduction veto powers instead of vetoing the whole budget in one fell swoop.

* Meanwhile, the comptroller sent out a press release late yesterday describing her new role in life…

While Rauner’s agency directors have never named a cut they are willing to accept, this budget will force $3 billion in cuts to the state budget, finally bringing back some adult fiscal discipline. The imperfect, but thankfully, bipartisan political compromise does not solve all the problems Governor Rauner’s recklessness created, but it helps us stop the haemorrhaging and begin digging Illinois out of his pit.

The Office of the Comptroller has served as the chief trauma center for the state, trying to keep our schools, nursing homes and social service agencies alive. This legislation would lead us to being more of a recovery room, with a trauma unit to deal with the remaining bill backlog.

  21 Comments      


*** UPDATED x2 - Madigan confirms - Tomorrow looks like the day *** Quorum still lacking in House

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* From this morning’s House quorum call…

Notice that both leaders did not respond to the call.

The House has adjourned until tomorrow at 1:30.

* From the Speaker’s office…

The staff continues to assess members’ schedules so we can afford all the supporters of the bipartisan, compromise balanced budget plan the opportunity to vote on the override motion.

*** UPDATE 1 ***  Speaker Madigan’s chief of staff just sent this e-mail to House members…

Session is set for Thurs., July 6 at 1:30 pm to consider SB override motions.

In other words, tomorrow could be the big day.

*** UPDATE 2 *** Press release…

Speaker Michael J. Madigan issued the following statement Wednesday:

“The House will hold a vote on Thursday, July 6 to override the governor’s vetoes of the balanced budget sent to him. House Democrats look forward to working with our colleagues on the other side of the aisle to begin healing the wounds of the last several years.”

  74 Comments      


How we got here

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Not only did I forget to post my syndicated column, I also forgot to post my Crain’s Chicago Business column

During his 2014 campaign, Bruce Rauner pledged to roll back the state income tax rate to 3 percent from 5 percent​ in just four years, reversing Gov. Pat Quinn’s 2011 tax increase. Rauner’s tax plan was a fantasy. He insisted that his “reforms” would create enough economic growth to mostly replace revenue lost from tax cuts.

There was some tax relief after Quinn lost to Rauner. On Jan. 1, 2015, days before Rauner was sworn in, the income tax rate automatically dropped to 3.75 percent. And while Rauner demanded that the rate be allowed to fall, the Democrats in charge of the General Assembly were the ones legally responsible. And then all heck broke loose. Since Rauner took office, state government has suffered a massive fiscal catastrophe, and state taxpayers are still waiting for the full relief he promised.

One of Rauner’s first trips as governor was to Decatur, to unveil his “right to work” plan. He demanded that the state force labor unions to allow their members to escape paying dues. It immediately poisoned any relationship he could have hoped to build with the legislative majority Democrats, who not only rely on unions for campaign help but tend to be strong supporters of union issues.

Rauner wouldn’t sign any bills to raise the income tax rate to help balance the budget, wouldn’t negotiate a budget and wouldn’t even propose a “real” budget until he got his reforms. The state was paying most of its bills in under 30 days before Rauner became governor. It’s now so fiscally impaired that Illinois government is just getting around to paying bills it incurred in October—eight months ago.

While tax revenue dropped, spending went up because state and federal judges ordered the state to pay its bills and because Rauner kept signing contracts for billions of dollars in goods and services even though he knew there was no money to pay for any of it.

So why didn’t Rauner drop “right to work” when his idea faced such fierce resistance? And, many months later, when he finally did back off, why did he insist on slashing the prevailing wage for trade union workers and tying a property tax freeze to a massive rollback of union rights?

Click here to read the rest before commenting, please. Thanks.

  100 Comments      


Radogno was one of a kind

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* Things got so busy that I forgot to post my syndicated weekly newspaper column. Here you go

Senate Republican Leader Christine Radogno was the first ever female leader of a state legislative caucus in Illinois. That alone puts her in the history books.

But she’s also a decent human being, something that often seems in short supply around the Statehouse.

The fact that several Senate Democrats showed up for her press conference last week to announce she was resigning and then took turns hugging her after it was over demonstrated the deep well of respect and admiration she had built in the building. She even got a hug from House Speaker Michael Madigan after she told her fellow legislative leaders she was resigning in two days. Madigan isn’t the hugging type, at least not at work.

Legislative leaders, even minority leaders, have big offices, large staffs and, usually, egos to match. But Radogno was genuinely surprised at how many reporters showed up for her resignation press conference.

Her retirement was huge news because she has sparred behind the scenes with Gov. Bruce Rauner all year and reporters figured that had something to do with it. Rauner, a fellow Republican, repeatedly derailed Radogno’s efforts to devise a “grand bargain” with Senate President John Cullerton that was supposed to end the stalemate Rauner created by refusing to negotiate or even present a balanced budget. Tellingly, Radogno did not mention Rauner in her resignation letter, but she denied to reporters that her differences with the governor had anything to do with her leaving.

Gov. Rauner always treated Radogno and her Senate Republican caucus with a heavy hand. Just weeks after he was sworn into office in 2015, he met with Radogno’s Republican Senators in a back room at Springfield’s Saputo’s restaurant and delivered a couple of stern warnings.

Rauner reportedly referenced the $20 million sitting in his campaign fund at the time and said he wanted to be their partner in the upcoming session and would support those who supported him.

And then the hammer came down. Multiple credible sources told me the governor informed the Senate Republicans he would ask for their votes on 10 issues and that he absolutely needed all of their votes on all 10 items. Not five, not seven. Ten. And if anyone in the room didn’t vote for all 10, then they’d have a “(expletive that begins with an ‘F’ and ends with an ‘ing’) problem” with him.

The governor also warned his audience not to leak anything about the meeting to me. Anyone who talked, he said, would have a “(same expletive as above) problem” with him.

The Statehouse tradition is that a governor can try to influence legislators, but can’t try to control them, particularly against the wishes of their own chamber leaders. But Rauner showed right away that he wasn’t concerned with such niceties. And when Radogno started working with Cullerton, Rauner wouldn’t allow any legislation to pass without his blessing. And he didn’t bless much.

Because of Rauner, the grand bargain turned into something it was never intended to be. It was sparked last December after yet another horrible meeting with Rauner and the equally intransigent House Speaker Michael Madigan. Their idea was to find a way to get things moving after a year and a half of total governmental and legislative impasse. Radogno and Cullerton wanted to come up with a Senate-centric, bipartisan solution to Fiscal Year 2017 (which just ended on June 30th), work out some stuff on the governor’s non-budget issues like a property tax freeze and workers’ compensation reform and launch it all over to the House as a way of putting pressure on Madigan.

But the governor figured that Speaker Madigan would drastically water down anything that emerged from the Senate and he wanted the Senate to come up with a solution for Fiscal Year 2018 as well. It was simply too high of a bar. In the end, the Senate Democrats just weren’t willing to go along with the governor’s non-budget and budget demands.

The Senate Republicans elected Sen. Bill Brady, R-Bloomington, to replace Radogno. Brady ran against Rauner in the 2014 Republican gubernatorial primary, but he and the governor are fairly close. The governor probably won’t have many [expletive deleted] problems from Brady, but he has a new role now, so we’ll see.

Radogno and Cullerton had their fights, but they did their utmost to remain civil. Brady is a very likable fellow, so we’ll see how this new relationship works out.

I had an off the record dinner with Radogno after she announced her resignation. We hugged when it was over. I’m really going to miss her because she is truly one of a kind.

  28 Comments      


*** LIVE *** Overtime session coverage

Wednesday, Jul 5, 2017 - Posted by Rich Miller

* The Senate left town after overriding the governor’s vetoes yesterday, the House is in at 10 and Gov. Rauner will talk about the “Impact of Speaker Madigan’s 32% tax hike with Hegewisch community and business leaders” at 1 o’clock. So, watch whatever happens in real time with ScribbleLive


  2 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, Jul 5, 2017 - Posted by Rich Miller

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Quorum lacking in House

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Word got out very early that the House wouldn’t vote on any override motions until later in the week, so people apparently split town…


They’re reconvening tomorrow at 10. But word is there will be no override votes until Thursday because of attendance issues, but that hasn’t been formally confirmed. It’s just what members have been told.

And that’s it for me. Miller time.

  57 Comments      


Brady: Let’s “come together and complete our work soon”

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Press release…

Senate Republican Leader-Designee Bill Brady (R-Bloomington) offered the following reaction after the Illinois Senate voted to override the Governor’s veto of a budget passed with a permanent income tax hike and no substantial reforms.

“I want to acknowledge the bipartisan participation that this chamber has seen over the last few months, and compliment colleagues on both sides of the aisle for their work. It’s regrettable that I stand today not able to support this package because it is incomplete. We need a comprehensive solution for this state. We’ve negotiated in good faith, but I regret to say, that we have not come to a conclusion on that solution.

“We still need to address the high property taxes in Illinois, and the burden on they place on people and job creators in this state. We still need to address workplace reforms that will bring jobs to and keep jobs in Illinois. We need to address government consolidation and education funding reform. I regret that I cannot support a comprehensive package today, but I hope, and trust, that we will be able to come together and complete our work soon.”

  47 Comments      


Rauner files veto messages

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Keep in mind, these are official, for the permanent historical record veto messages…

Veto Message for SB 6
To the Honorable Members of

The Illinois Senate,

100th General Assembly:

Today I veto Senate Bill 6 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.

The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.

This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.

Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.

Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.

Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.

Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 6, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.

Sincerely,

Bruce Rauner

GOVERNOR

Veto Message for SB 9
To the Honorable Members of

The Illinois Senate,

100th General Assembly:

Today I veto Senate Bill 9 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.

The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.

This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.

Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.

Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.

Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.

Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 9, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.

Sincerely,

Bruce Rauner

GOVERNOR

Veto Message for SB 42
To the Honorable Members of

The Illinois Senate,

100th General Assembly:

Today I veto Senate Bill 42 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.

The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.

This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.

Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.

Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.

Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.

Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 42, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.

Sincerely,

Bruce Rauner

GOVERNOR

  78 Comments      


*** UPDATED x4 - Approp, BIMP, tax vetoes overridden - Override motions filed *** Rauner announces veto on Twitter

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Here we go…


He has reportedly vetoed the entire budget package.

*** UPDATE 1 *** It won’t be long now…


*** UPDATE 2 *** The veto of SB 9 has been overridden on the same roll call as earlier today.

*** UPDATE 3 *** The BIMP veto has also been overridden.

*** UPDATE 4 *** The veto of SB 6, the approp bill, has been overridden.

  95 Comments      


“The fierce urgency of now”

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* I quoted a bit earlier today from Sen. Toi Hutchinson’s closing remarks on SB 9, the revenue bill. Here’s a video…


  6 Comments      


Some anti-tax hike react

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Nothing yet from the governor, and no ILGOP press release, but…


* Illinois Policy Institute’s Facebook page

Ah, the joys of message synergy. Madigan, Madigan, Madigan. This will most definitely continue indefinitely.

* The Institute has also posted a cartoon shaming Republicans for bipartisanship

* Press release…

State Senator Jason Barickman (R-Bloomington) released the following statement after Senate Democrats passed an unbalanced budget: “It’s extremely disappointing that after all the progress we have made in negotiations, Democrats would simply ram through an unbalanced budget that doesn’t offer any fixes or reforms for the systemic issues that continue to plague Illinois. This budget does little to nothing to pay down the massive bill backlog nor will it stop the constant exodus of people and jobs from our state. We need bipartisan solutions, not more of the same failed ideas and policies that got us here.”

The Tribune reports today that the package would allow the state to generate $8 billion, mainly from federal matches, to pay down the backlog. The rest is gonna be the governor’s problem unless another deal is cut, I suppose.

* And another…

State Senator Dan McConchie (R-Hawthorn Woods) releases the below statement following the House and Senate passing a budget plan, which includes a major tax increase:

“To say I am disappointed would be an understatement. Raising taxes and failing to address any of the fundamental issues that plague our state is detrimental to taxpayers. We’ve seen this before and it doesn’t work. This is the exact same failed approach the state took in 2011—increase taxes without addressing the underlying issues hurting our state. Continuing the mistakes of the past will not bring us a brighter future.

“This budget plan is bad for businesses and especially bad for families, and it certainly isn’t attracting people and businesses to Illinois. We had a real opportunity to come together and find bipartisan compromise. Unfortunately, today was a missed opportunity.

“Although I am saddened by the votes today, I remain committed to working to make Illinois competitive and a state that people can be proud to call home.”

  26 Comments      


Sen. Haine: “This is bigger than me”

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* I told subscribers that Sen. Haine was coming back to town for today’s vote, even though doing so could imperil his health. Here’s his statement…


  35 Comments      


*** UPDATED x1 - Bills sent *** No House override vote today - Attendance issues

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Keep in mind that these are Senate bills, so the Senate has to go first, and as of 12:01, the bills aren’t on the governor’s desk according to LIS, but Cullerton’s spokesman said a short while ago that he believed they had been delivered. The Senate Democrats told me they would send them to Rauner as soon as possible.

But, man this could be cutting it close because the markets and the ratings agencies re-open tomorrow morning…


#FacePalm.

*** UPDATE ***  They’ve been officially transmitted…


  38 Comments      


Caption contest!

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Heh…


  35 Comments      


Madigan “disappointed” that Durkin skips another leaders’ meeting

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Press release…

Speaker Michael J. Madigan issued the following statement Tuesday:

“I’m disappointed that Leader Durkin has chosen not to attend our leaders meeting for the second day in a row. Democrats are committed to working with Republicans to find common ground on the remaining non-budget issues that have long been prioritized by the other side of the aisle, but we can only do so if Republicans are willing to negotiate with us. It is my hope that Leader Durkin will return to the table to discuss the issues that he and Governor Rauner have insisted by considered alongside the state budget.”

Senate GOP Leader Brady has indicated that if Durkin doesn’t go to the meetings then he won’t go, either.

  34 Comments      


Candidate reaction begins to roll in to budget votes

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Press release…

JB Pritzker released the following statement following the passage of a bipartisan state budget by the Illinois General Assembly:

“For nearly three years, Bruce Rauner has driven our state into crisis and inflicted pain on tens of thousands of Illinoisans,” said JB Pritzker. “Now, as Republicans and Democrats come together to declare enough is enough and finally pass a budget, for Bruce Rauner, not even the threat of a complete meltdown can get him to do his job.

“Bruce Rauner has no intention of letting this crisis end. As he has for 734 days, Rauner will continue using school children, college students, seniors and people with disabilities as pawns in his game to drive this state to bankruptcy and junk status. Rauner is a one track mind with a single goal of ramming through a special interest agenda that leaves most Illinoisans behind.

“Democrats and Republicans in the General Assembly did their job. And while the damage caused by Bruce Rauner can never be undone, for the sake of our children and families, I hope Governor Rauner will step up and sign the bipartisan budget plan that’s being delivered to his desk.”

So, Pritzker is openly willing to own support for a tax hike. Interesting.

* Biss campaign…

Daniel Biss released the following statement as the House and Senate reached agreement on a budget.

“The House and Senate have agreed on a budget, and sent it to Governor Rauner’s desk. This budget has support from Democrats and Republicans—it’s far from perfect, but it will open schools in the fall, fund vital social services, pay public sector employees, and put our state within the realm of financial solvency. Governor Rauner has committed to veto it.

“Rauner’s obstructionism is nothing new to Senate Democrats, or to the people of Illinois. What is new, however, is that he is losing control of his own party. In response pressure from their constituents, many of my Republican colleagues, including members of both houses, voted in favor of the budget and in defiance of Rauner. This isn’t about political parties or ideological commitments, it’s about doing what is necessary to save our state — and we will be prepared when it becomes necessary to override the Governor’s veto.”

…Adding… Press release…

Ameya Pawar, 47th Ward alderman and Democratic candidate for Illinois governor today issued the following statement in response to Gov. Bruce Rauner’s decision to veto a bipartisan and balanced budget bill that passed both chambers of the Illinois General Assembly:

“Republicans and Democrats in both houses came together this week to pass a responsible budget that protects middle class families and finally puts our state on a steady fiscal path. With his veto, the governor made very clear that he doesn’t care about the future of our state and the hard-working families that make it great.”

“Instead, he is holding our future hostage to achieve two selfish and dangerous goals: to destroy organized labor and the fundamental protections they have won for workers, and to use Chicago schools as a scapegoat now that he’s done paying to clout his own child into the public school of his choice. Today’s actions make it clear that only one person stands between a bankrupt state and a bright future. It’s time for Bruce Rauner to go.”

  10 Comments      


*** UPDATED x2 - Righter comments - Raw audio *** One reason for Sen. Righter’s vote for the tax hike

Tuesday, Jul 4, 2017 - Posted by Rich Miller

*** UPDATE 1***  Raw audio of Sen. Righter’s media availability thanks to our very good buddy Dave Dahl

*** UPDATE 2*** Righter said he’s had several conversations over the past several day which helped him come to the conclusion that a “Yes” vote was the right vote…

“This state has to start balancing its budgets. That is the first and most important thing. Every dollar that we throw on to the backlog of bills is a dollar that the next generation has to pay for even though we got to spend it. That’s simply wrong.” […]

“Obviously, I am elected and work for the people of the 55th Senate District and that’s who made the call today.” […]

Righter said the impasse has been “very harmful” for EIU and the “university system as a whole.”

“In the end you vote your district, and my district told me to vote for this package.”

Asked what people should cut from their household budgets to pay for the tax hike, Righter said, “Everyone’s gotta balance their budget at home.”

Righter said he spoke to the governor’s office and Leader Brady and “both were very respectful” of how he was planning to vote.

“Today, I represented my district,” he said at the end.

[ *** End Of Update *** ]

* So, why did Republican Sen. Dale Righter break with the governor and vote for a tax hike, budget and BIMP bills? His local Eastern Illinois University president worked him…


  17 Comments      


*** UPDATED x2 - BIMP passes - Spending bill passes with 4 GOP votes *** After brief debate, Senate narrowly approves tax hike bill with one Republican vote

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* The Senate approved SB 9, the revenue bill, on a vote of 36-18.

Senate Republican Leader Bill Brady asked for more time to negotiate. But the bill’s sponsor, Sen. Toi Hutchinson, replied “We don’t have any more time. We know we don’t.”

“We are faced with the fierce urgency of now,” Hutchinson said. “We don’t have any more time.”

Hutchinson claimed the package before the Senate was the result of two years of bipartisan talks and a “lot of give and take.”

“It is time to be the independent legislature the framers demanded,” Hutchinson said, urging her colleagues to show they are members of a “co-equal branch,” which was a clear dig at Gov. Rauner.

…Adding… Sen. Dale Righter, a Republican, voted for the bill. Democratic Sens. Tom Cullerton and Julie Morrison voted against the tax hike.

…Adding More… Roll call…


*** UPDATE 1 ***  The Senate has approved SB 6, the omnibus appropriations bill with 39 votes. It should’ve had 40, but Sen. Martinez said her button wasn’t working. Roll call…

Republican Sens. Anderson, Fowler, McCann and Righter voted for the bill.

*** UPDATE 2 *** The budget implementation bill passed 36-17 without any debate at all.

…Adding… The Tribune’s headline writer strikes again…

* Illinois Senate approves major income tax hike despite Rauner veto threat

  60 Comments      


Rep. Davidsmeyer: “I’ve had threats of hanging from a tree”

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* The SJ-R interviewed local legislators about their votes on the tax hike and budget bills

* Rep. C.D. Davidsmeyer, R-Jacksonville, voted in favor of both bills. “I was concerned about the downgrade. I was concerned about the backlog of bills growing from $15 billion to $25 billion. At the end of the day, we ended up with a 4.95 (percent) income tax, as opposed to next year, where it would probably be a 5.55 income tax. I was trying to decrease the impact on my constituents.

“I’ve talked to a lot of my constituents, and after I explain, they understand. There’s a lot of people from outside of my district that are upset. I’ve had threats of hanging from a tree and things like that … just words, on Facebook.

“At the end of the day I think we can be civil and have a discussion, but I think it’s fiscally conservative to lower the amount that we’re spending currently today. We’re spending $39 billion. We’re taking it down to $36.5 billion. I think that’s a fiscally responsible thing to do.”

* Meanwhile, from the Daily Herald

Their inboxes and social media feeds are jamming with hate mail, but three suburban Republicans say they wouldn’t change their votes on a state income tax increase, given what’s at stake. […]

[Rep. Mike Fortner (R-West Chicago), a former mayor, said the $36.5 billion budget proposal was less than the nearly $39 billion spent last year and included reforms such as a government consolidation bill.

“Increasing the income tax has never been my preferred option,” Fortner said. But “my balance point was reached. This was a real balanced budget, there were real reductions in spending levels, and sufficient reforms to move forward.”

  15 Comments      


Some legislators called out on budget votes

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* We talked yesterday about the 10 House Democrats and 1 Republican who voted against the tax hike and for the budget. Here’s Marni Pyke at the Daily Herald

Suburban Democrats who voted for the budget bill but against raising taxes included Marty Moylan of Des Plaines, Michelle Mussman of Schaumburg, and Sam Yingling of Grayslake.

Assists from the 15 Republicans gave Democrats in volatile districts leeway to defect. But Moylan and Yingling said any legislation without property tax reforms was a nonstarter.

If a property tax freeze had been included, “maybe it would have made a difference,” said Moylan, a former Des Plaines mayor. “I don’t want to raise taxes on the middle class and working class. This could hurt job creation.”

Yingling is concerned about the state’s bond rating tanking but hoped negotiations will continue between Rauner and party leaders for a resolution.

“Regressive property taxes are forcing people out of their homes,” Yingling said. “As long as they stay in place they’ll continue to struggle.”

The lone Republican to do the same thing, Rep. Dave Severin, was not asked about his votes by local media. Instead, they focused solely on his “No” vote on the tax hike.

* Without endorsing either the tax hike or the budget, the Tribune editorial board railed against all 11 members

Voters, take note: The 10 Democrats and one Republican who voted against the tax hike but in favor of spending have to be held accountable to their own endless rhetoric about the need to pass honest budgets.

Remember, Democrats control this process in both houses. They have been the party insisting for years the budget could not be balanced through spending reductions alone. Higher taxes had to be part of the equation: Illinois can’t possibly cut its way out of this mess … Until Sunday, that is, when 10 of them slithered away from their party’s long-held position.

They’re hoping you won’t notice their double talk. We hope you will. It’s called hypocrisy.

  24 Comments      


Madigan accused of breaking deal

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Tina Sfondeles at the Sun-Times

Madigan told reporters that Republican leaders skipped out on a leaders meeting on Monday afternoon but said he will continue to work with Republican leaders about changes to workers’ compensation and a property tax freeze.

While he described Republican support for the income tax as a show of resistance against Rauner, Republican leaders believe Democrats abandoned the negotiating process by moving forward with the votes. Illinois Republican Leader Jim Durkin’s office confirmed he wouldn’t attend a leaders meeting on Tuesday.

At issue are some of the requests made during negotiations. Durkin’s office contends Democrats asked for a “good faith” vote from Republicans on the spending plan, which they came through with last week, and an assurance they would help to override the governor’s veto of a bill which, in part, authorizes phone carriers to pay out 911 centers.

Both of those happened, yet Madigan — despite ongoing negotiations on reforms — moved forward with votes.

Good points. But 15 of Durkin’s own members broke ranks to support the tax hike. They clearly saw different writing on the Statehouse walls.

…Adding… From comments…

Also, the day before, when Madigan announced his plans to not hold votes on Saturday and Sunday, Durkin went to the floor to excoriate Madigan for not getting a budget package to the floor that very day. And then the House GOP applauded Durkin wildly, and one GOP member even heckled the Speaker.

So Madigan called his bluff.

Don’t gamble unless you are willing to have your bet called. Durkin has no leg to stand on here.

* Meanwhile, the Republican leaders have stopped talking

“We worked with Republicans today on those issues; we’ll continue to work with the Republicans on those issues until they’re resolved,” Madigan said.

Republicans appear unconvinced. Rauner spokeswoman Catherine Kelly said the speaker is “clearly trying to distract from his 32 percent permanent tax hike.” Spokeswomen for Senate Minority Leader Bill Brady and House Minority Leader Jim Durkin would not say why the two men didn’t attend Monday’s meeting, but Durkin’s office said he would not attend Tuesday. Brady’s spokeswoman indicated without all leaders attending, Brady won’t either.

The absences raised questions in Cullerton’s mind about where negotiations, particularly on the tangential Rauner demands, stand.

“We have to do something,” Cullerton said. “The House has acted but we’d prefer to do it in agreement with Republicans.”

  27 Comments      


*** UPDATED x1 *** Tax eaters eerily silent about tax hike

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* From The Southern

Southern Illinois University System President Randy Dunn, according to a spokesman, called the vote by Bryant and the other 14 Republicans a “heroic stand” in the midst of a historic political standoff. Bryant said she’s also received words of encouragement and thanks from regional school superintendents, health care providers and others. […]

Southern Illinois’ economy is more vulnerable to the effects of the ongoing impasse than other regions because large percentages of people are employed by the state — at prisons, mental health facilities, and public aid, driver services and other government offices — or by entities that are directly supported by state funding, including hospitals, social service agencies, universities and community colleges and K-12 schools, she said. […]

Bryant and the others who supported the bill, “stood up not just for SIU, but the entire Southern Illinois region,” Charles added.

Dunn also thanked Rep. Brandon Phelps, D-Harrisburg, who joined with the majority of Democrats voting in favor of Senate Bill 9. The bill would raise the personal income tax from 3.75 percent to 4.95 percent, and the corporate income tax from 5.25 percent to 7 percent.

It’s about time that a university president finally stepped up on this. Their institutions are on the verge of death. They need to speak out.

Also, where’s AFSCME been? Where’s SEIU? Where are the trade unions that rely on road construction work?

The groups that are against a tax hike have ginned up an intense social media firestorm. But the groups which rely on government have stayed mostly mum.

* Both of the teachers’ unions have announced support for the tax hike, however. This is from the Illinois Federation of Teachers President Dan Montgomery…

“Last night, we breathed a sigh of relief as a bipartisan supermajority of lawmakers found a way out of our state’s two-year budget crisis. As we prepare to celebrate the 4th of July, it finally felt like we had gained independence from Governor Rauner’s political threats and radical agenda that lowers taxes on the wealthy while working families struggle.

Of course, it didn’t last long.

The Governor’s pledge to veto this strong, bipartisan agreement and worsen the damage is deplorable. Five universities have reached junk bond status. The state owes more than $1 billion to our K-12 schools and $15 billion to businesses who have provided goods and services expecting to be paid. Social services are shuttered.

But Governor Rauner couldn’t care less, because he’s never wanted resolution.

He said he would happily shut down government and create a crisis for leverage to enact his agenda. And while claiming to negotiate in good faith, he spent millions of dollars on political ads attacking those with whom he was supposed to be working.

On behalf of more than 100,000 educators, staff, and public employees across Illinois, we want to thank lawmakers for doing the right thing, particularly the fifteen House Republicans who courageously stood up to Bruce Rauner who would rather see Illinois crumble than prosper.

We urge the Senate to follow the example of their House colleagues and vote for this bipartisan revenue and spending plan, and when approved, we urge Governor Rauner to end this madness and sign the bills immediately.”

* I had to go to the IEA’s website to find this blog post generically titled “Illinois House moves forward on budget plan”

Tonight, the Illinois House of Representatives took a major step toward stabilizing the financial crisis Illinois has been in for more than two budget-less years.

We thank the members of the House for taking this step to vote on a full and balanced budget – especially those Republicans who saw the dire circumstances our education systems in this state were facing – and stepped up to support them.

We urge the Senate to concur with this budget plan and we strongly urge Gov. Bruce Rauner to sign it.

“From the preschool student learning to write his name and add his numbers to the university student planning her future career, this budget bill gives our state hope,” said IEA President Cinda Klickna.

“Education and the state of Illinois are too important to be allowed to crash and burn. Thank you for finding common ground for the good of us all.”

But there is no “action alert” about this issue on the union’s website.

*** UPDATE *** Shortly after the Senate’s votes today, the U of I sent this to legislators…

We are grateful to the legislators who voted to support the budget that provides funding for the second half of FY17 and for the full year of FY18. This financial support is crucial to ensure the continued excellence of the University of Illinois System, which enrolls more than 81,000 students and plays a key role as an engine of progress for our state. We hope the lessons learned during this long and difficult impasse will help to restore long-term stability and provide predictable funding year after year so we can plan our future and expand our impact on the public good. We urge the governor to sign the legislation.

Thank you!

Jennifer M. Creasey
Director State Relations
Office of Government Relations

* Related…

* Loss of Accreditation Could Cost Colleges Billions

* State Budget Crisis Eliminates Funding For Holiday Traffic Enforcement

* Layoffs begin as state road construction shuts down

  65 Comments      


*** LIVE *** Overtime session coverage

Tuesday, Jul 4, 2017 - Posted by Rich Miller

* Watch it happen in real time with ScribbleLive


  6 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Tuesday, Jul 4, 2017 - Posted by Rich Miller

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