* Speaker Madigan told reporters this afternoon, “We had a very good leaders’ meeting,” and then gave everybody a summary of what went on…
* Education funding reform…
“Sen. Cullerton and I reasserted our strong support for SB 1,” and said the governor should “sign the bill as-is.”
* Workers’ comp…
Madigan restated the need for “real rate regulation” for the companies that sell workers’ comp insurance.
“We indicated that if there were to be, if there were to be adjustments to the medical fee schedule, we would not relate them to the Medicare schedule.”
* Property taxes…
The Republicans asked for adjustments to the property tax freeze bill that couldn’t pass the House yesterday. “We indicated that we would be open to other adjustments.”
* Government consolidation…
The bill that passed the House and the Senate is the one they’re sticking with. “We ought not to go any further.” (The governor wants another bill on this topic).
* Pensions…
“Sen. Cullerton indicated that we should delete the section of the bill that’s concerned with a voluntary consideration model and just proceed with the remaining elements of the bill, which I think would be satisfactory to the other leaders and the other caucuses.”
My translation after speaking with Democrats: Despite what he said, I think there’s still some movement possible on SB 1. I was told yesterday there are some important language issues on the workers’ comp insurance regulation stuff. Madigan seems to be moving a bit on his refusal to lower rates for workers’ comp medical providers, which is something the IMA wants. There’s more work to do on property taxes, but Madigan at least appears open to more movement (the big sticking point is still an exemption for pension costs).
Madigan also said the House will bring their spending plan to the floor tomorrow. Revenues are still being discussed.
* Earlier today, Gov. Rauner tweeted out an image of himself sitting at a desk in his ceremonial Statehouse office “preparing for a balanced budget to arrive.”
A buddy of mine just said to me, “You can’t cut a final deal until the principal lays out his bottom line.” By all accounts, Leader Durkin is doing a good job, but the governor is most definitely “the principal.” Then again, Rauner, Speaker Madigan and Senate President Cullerton aren’t exactly pals. If he joins the meeting, things might not go so well. But without his presence, the other leaders may not be certain he’ll support whatever they come up with (if they do come up with something).
* The Question: Should Gov. Rauner join the leaders’ meetings? Click here to take the poll and then explain your answer in comments, please.
Do Your Job, Inc. is calling voters across the state and asking them to tell Governor Rauner to do his job.
The call can be heard here: https://clyp.it/i1h5wcgv
Transcript:
Every year for decades the state of Illinois has passed a budget. For the three years under Bruce Rauner, Illinois had failed to pass a budget due to Rauner’s refusal to compromise. Governor Rauner is a bully with an extreme agenda who is destroying our state. The consequences will be grave if we don’t pass a budget right away. Call Governor Rauner at 217.782.0244. Encourage him to sit down, pass a budget and do his job. Paid for by Do Your Job, Inc.
The robocall comes on the heels of a mailer paid for by Bruce Rauner’s Republican Party distorting the budget crisis. The mailer attempts to solely blame the legislature for the budget crisis and abdicate the state’s chief executive of his responsibility to govern.
The robocalls will also begin on a day when Senate Republican Leader Christine Radogno – who often worked on a bipartisan basis for the good of the state - announced that she will be vacating her post at the start of the fiscal year. In a statement, Radogno expresses her “sadness and some disappointment” and joins Illinoisans who “hope and pray that the Governor, other legislative leaders, Democrats and Republicans in the Senate and House can find a path to solve the state’s problems.”
Do Your Job, Inc. is currently on air with an advertisement entitled “The Brink” encouraging Governor Rauner to secure a budget. In the ad, which began airing yesterday, Edgar declares that Illinois is in the worst condition he can ever remember including the state’s tenure during disgraced former Governor Rod Blagojevich. That ad can be viewed here: http://bit.ly/2seEb1I
Do Your Job, Inc. is led by IL Sen. Michael E. Hastings of South Suburban Cook County, IL Rep. Lou Lang of Skokie and Illinois AFL-CIO President Michael T. Carrigan. “The Brink” will run in conjunction with the legislature’s special session schedule in hopes of helping to secure a budget.
* I’ve been talking with Senate GOP Leader Christine Radogno for weeks about the rumors that she’s going to resign. We chatted yesterday and I was promised a formal response today. Radogno just sent me a text message…
I’m out of here 7-1. End of business.
Let’s hope she helps finalize a budget deal by then. Personally, I’d like to see her go out on a high note.
*** UPDATE 1 *** Full statement…
Statement from Senate Republican Leader Christine Radogno:
“It truly is an honor to represent the 41st Senate District and my Republican colleagues in the Illinois Senate.
I have done the job to the very best of my ability and always with the needs of the state and my constituents in mind. I am proud of my legislative accomplishments – none of which were achieved alone. I have always appreciated the support, advice and counsel of my colleagues in both parties, staff and family.
I have particularly enjoyed my friendship and working relationship with Senate President John Cullerton that began the day we were chosen as Leaders of our respective caucuses.
However, I believe it’s time for a new Senate Republican leader.
I have done everything I can do to resolve the state’s budget crisis. I will continue to do so for the coming days. But if the solution will not come on my watch, I hope and pray that the Governor, other legislative leaders, Democrats and Republicans in the Senate and House can find a path to solve the state’s problems.
Though I leave political office with a sense of sadness and some disappointment, I leave with no regrets. I did my best – that’s all I could do. It has been a privilege to serve. But now I am looking forward to returning to private life and spending time with my family, especially my five grandchildren.
Effective close of business on July 1, 2017 – the start of the new fiscal year – I intend to resign my position as Senate Leader and Senator from the 41st District.
The Caucus has already begun executing the plan for a smooth, orderly and expeditious transition.”
She’s a class act through and through.
*** UPDATE 2 *** I think it may wind up being a little narrower than this, but this is true at the moment…
Source: Senators Bill Brady, Karen McConnaughey and Michael Connelly are on the short list to replace Christine Radogno. https://t.co/jjc8pl1vP7
From what I’ve been hearing, Brady has been working a roll call for the past couple of days.
*** UPDATE 3 *** Press release…
Governor Bruce Rauner today released the following statement regarding Senate Republican Leader Christine Radogno’s resignation:
“It’s been an honor and a privilege to work alongside Leader Radogno these last two years as we continue to try to improve the lives of the people of Illinois. She is a consummate professional and public servant, who has championed fiscal responsibility and human services that help our most vulnerable residents. While she will be sorely missed, Diana and I wish her all the best in her future endeavors.”
*** UPDATE 4 *** From House GOP Leader Jim Durkin…
“Chris Radogno has been my Senator and Co-Republican Leader for many years. I am fortunate to call her a confidant and friend. Her contributions to her district and the State of Illinois are immeasurable. Chris always stayed above the fray in this very partisan environment. Her constituents and I will miss her valued leadership.”
*** UPDATE 5 *** From Mayor Rahm Emanuel…
“Leader Radogno has been a committed and courageous public servant who has put the needs of her constituents, and all Illinois residents, ahead of special interests, politics and partisanship. Throughout her five terms in office she has always proven willing to reach across the aisle to find solutions for Illinois’ most pressing challenges, and her reasonable, pragmatic, collaborative approach to policy stands as a model for other legislators to follow. As the first female leader of a party in the Illinois legislature, she has served as a role model and paved a path for future generations to follow. I join residents across the state of Illinois in thanking Leader Radogno for her service and wishing her well in her next chapter.”
*** UPDATE 6 *** Press release…
Illinois Senate President John J. Cullerton issued the following statement regarding the pending retirement of his colleague and friend Republican Leader Christine Radogno.
She and I began as Senate leaders on the same day. We started our relationship in those roles by voting for each other. We then turned our attention to the impeachment trial. We followed that up with a long-overdue, bipartisan agreement on investing in roads, bridges, schools and other infrastructure.
It has been nine years of cooperation and professionalism
It’s been my honor to have Leader Radogno as my legislative partner, and I have cherished the opportunity to work with her as a colleague and friend. She was the one who first reached out to me to start the Senate effort to show that we could balance the budget. Frankly, this week’s leaders meetings wouldn’t be occurring if it wasn’t for her.
I will miss her camaraderie and common sense. But I also hope that she has a few tricks left up her sleeve before July 1 to help us finally get out of this mess.
*** UPDATE 7 *** Sen. Bill Brady…
“Over the years, it has been a privilege and an honor to work alongside Leader Christine Radogno. Chris has a track record of being an incredibly hard working, principled and bipartisan leader who truly believes in working across the aisle to do what is best for the people of this state. I want to thank her for her years of service to the state of Illinois, and wish her and her family nothing but the best as she moves on into this next phase.”
* As subscribers know, Edgar told me much the same yesterday. Here’s Bernie…
Former Republican Gov. JIM EDGAR said he didn’t know in advance that his voice would be used on an ad critical of Rauner.
“Do Your Job, Inc.” announced the new ad this week, and the made-for-TV spot includes audio of Edgar in a radio interview saying no budget for two years “has put this state in the worst condition I can ever remember. Even during the (ROD) BLAGOJEVICH years, it wasn’t this bad.”
A narrator says Rauner “has brought Illinois to the brink of collapse.” Rauner has consistently blamed Democrats for not meeting his pro-business conditions to approve a full budget.
Contacted Wednesday, Edgar said he didn’t know about the ad until he read about it on the Capitol Fax blog.
“I guess when you say something to the media and it’s reported, that’s fair game,” he said. “That’s my comment.”
At my desk, preparing for a balanced budget to arrive. Lawmakers need to come together & get this done for Illinois. Time is running out. pic.twitter.com/mnspNHImmf
I’m giving speeches seven days a week, five, six times a day. I’m speaking at African American churches every Sunday morning, and I judge myself by how many standing ovations I get.
Rauner’s public schedules do not list anywhere close to the number of speeches he claimed to give, and there is not always an African-American church on his weekend schedule.
He and his wife were at Pleasant Grove Baptist Church in Springfield on Sunday, but TERESA HALEY, a member there who happens to be president of the Illinois chapter and Springfield branch of the NAACP, said there was no speech. Rauner introduced himself and his wife when visitors were asked to say who they were, and he said something like, “It’s not about Democrat or Republican, it’s about coming together and worshiping Sunday morning,” Haley said. She said the Rauners seemed to enjoy the service.
She said Rauner “did walk around and introduce himself to several people.”
“No one gave him a standing ovation,” Haley said.
“When you go to church for fellowship and to praise God … it’s not about you,” she said.
Illinois lawmakers led by House Speaker Mike Madigan have barely worked during the special session – convening for only 122 minutes and sometimes not even showing up.
While Mike Madigan stalls, Illinois crumbles. Financial institutions are threatening junk status.
Madigan needs to get serious before his caucus of junk politicians fails to send the Governor a balanced budget for the second year in a row.
Today, the Illinois Republican Party is releasing a digital video highlighting the legislature’s inability to get to work.
* Meanwhile, as I told subscribers this morning, this is one of the five Illinois Republican Party mailers that have been sent into Democratic Rep. Jerry Costello’s district in the past seven days…
Notice anything missing from the Rauner plan? A way to pay for it, perhaps?
Today, Daniel Biss announced the endorsement of State Representative Kelly Cassidy.
“From the minute I met Daniel, I was impressed,” said Kelly Cassidy. “First, by his hair. But after that, by his willingness to be his own person - that he would make his own decisions on behalf of his district based on what he believes is right, even when a vote might be politically risky for him.
“Daniel is the only candidate in this race who has a record of enacting real, progressive change, including for the LGBTQ community. When we passed the ban on conversion therapy, when we passed marriage equality — he was there every step of the way, working with me and others in the community, doing the actual hard work of making laws that protect us.
“We have seen from the last 2.5 years that being Governor should not and cannot be an entry level job. Daniel has the real experience in governing we need. I’m proud to support him, and excited continue working with him as Governor.”
“It’s an honor to have Kelly on my side,” said Daniel Biss. “Kelly has proven herself a moral compass in a lost legislature, and a passionate defender of equal rights, especially for the LGBTQ community. From fighting for a living wage, to reforming our criminal justice system, to creating a safe and equal place for all of our communities, Kelly and I have worked together for years, and it means the world to me to me to receive her support today. I’m excited to work with Kelly today and for years to come to ensure that all Illinoisans have a seat at the table.”
That’s the second House Democrat to endorse Biss this week, even though he spends a lot of time lumping Speaker Madigan in with Gov. Rauner.
Pritzker, meanwhile, is planning a phone bank over the issue of health care as Republicans in Washington try to advance a plan to repeal and replace Obamacare.
The phone bank is the latest effort among Democrats critical of Rauner for not saying more about the GOP proposals, including a Senate Republican measure that would phase out funding for Illinois’ expansion of Medicaid coverage.
Rauner has said he has “concerns” about the proposals.
“We will call Bruce Rauner. We will call Republican congressional leaders. We will call (Illinois’ Democratic U.S. Sens.) Tammy Duckworth and Dick Durbin to thank them for their hard work. And we will call on others to help us make a difference,” Pritzker said in a statement.
I’ve never seen a press release announcing a phone bank before. Then again, I’ve never seen a phone bank that focused on calling elected officials. They also called voters, though.
* Meanwhile, Ameya Pawar has a new campaign video (click here) and the Trib talks about Chris Kennedy’s latest fundraising e-mail (click here).
Now, the Rauner people don’t like me writing about this issue, as I have a few times now.
Illinois’ two U.S. senators, Dick Durbin and Tammy Duckworth, have pretty much made up their minds and won’t move much even if Rauner talks to them, the governor’s people say.
And, they add, some other GOP governors who are outspoken are lame ducks and don’t have to manage the calculus of keeping the GOP base intact, as Rauner will have to do in his race for a new term next year.
And as one ranking Raunerite argued in an exchange today, the governor has his hands full right now in Springfield battling House Speaker Michael Madigan and other intransigent Democrats to finally bring a dose of desperately needed reform and structural change to Illinois.
I get all of that. But most of those excuses are lame or wrong—or both.
* I would only add that the governor has not taken any public role in the overtime session negotiations and yet still managed to squeeze in the time to leave town today for this event…
WHERE’S RAUNER? In Chicago, taking part in a round table to discuss trade and commerce opportunities between China and the Midwest.
I don’t blame him for going to Chicago for that highly important event. I’m just saying he ought to be able to find time to at the very least answer a question about something that could totally blow up this state’s budget and very probably harm many of the state’s hospitals.
…Adding... From the governor’s office…
He’s not going to Chicago. He’s attending via video conference from Springfield.
The legislation that allows the collection and distribution of fees for the state’s 911 call centers expires June 30. […]
This is the textbook example of a “no-duh” action that must be addressed in the Statehouse. Ensuring responses by police and fire departments in emergency situations is about as essential a service as it gets. But we’re in Illinois, where bitter partisan bickering has left us teetering on the brink of fiscal insolvency.
By overwhelming margins, the House and Senate passed Senate Bill 1839, which would extend the ability to collect and distribute fees to fund 911 services. As proposed, the legislation would raise the 911 surcharge in Chicago from $3.90 to $5, and from 87 cents to $1.50 elsewhere in Illinois. […]
If approved as is, it would be about a 28 percent increase in fee for Chicago residents, and more than 72 percent for everyone else in the state.
And as Gov. Bruce Rauner’s administration noted in a memo issued June 22 that declared the hikes “unacceptable,” Chicago has already received two increases in the past four years: From $1.25 to $2.50 in 2013 and from $2.50 to $3.90 in 2014. The memo didn’t offer a suggested amount, but noted a 911 advisory board recommended a $1.05 statewide fee. It also warned of the dire consequences if lawmakers don’t send Rauner a “clean” extension bill before July 1. […]
We urge lawmakers to put SB 1839 to the side for now and explore other avenues to ensure continued operation of 911 centers. Legislators have introduced or amended existing bills to provide other options. The simplest — and one that should fly through the Capitol’s chambers and land on the governor’s desk as soon as humanly possible — is House Bill 4072, which would extend the sunset dates for 911 and similar services from this week to Dec. 31, 2020. […]
HB 4072 would allow 911 services to continue uninterrupted, and Rauner’s office said Wednesday he would support it. Leave the fee increases — and the fighting that accompanies them — to another day, and extend the act.
Apparently, the SJ-R editorial board was only paying attention to what the governor’s office told them.
So, let him veto it again. It could turn out to be worse than Pat Quinn’s humiliation on the ComEd “smart grid” veto.
*** UPDATE 1 *** 47 votes in the Senate and the governor still calls it a Democratic tax hike…
The Majority Party is holding 911 systems hostage in exchange for a tax hike on your phone bills. We need a clean bill to preserve 911. pic.twitter.com/0k5Sfyl5bI
During a special session that’s costing taxpayers tens of thousands of dollars a day without any results, both Democrats and Republicans are talking up the idea of compromise without publicly doing much to reach one. […]
Compromise, then, is proving to be in the eye of the beholder at the Capitol, a rhetorical tool to help sell the idea that the other side is to blame if no budget deal is reached by a Friday deadline.
Despite the fallout that will accompany such a failure, there’s little to indicate a resolution will be reached by then. Rauner sent the loudest signal Wednesday when he said if lawmakers fail to send “a balanced budget package to my desk by Friday, we will have no choice but to keep them in session until they get the job done.”
A property tax freeze critical to ending Illinois’ historic budget jam failed in the House Wednesday and the Republican governor who is demanding the freeze threatened to keep lawmakers in session over the July 4 holiday unless there is an agreement on a spending plan by the end of Friday. […]
But on a 59-46 vote, far short of the three-fifths majority necessary for the measure to take immediate effect, lawmakers’ efforts to avoid the ignominy of starting a third consecutive July 1 without a budget outline were thrown into doubt. Republicans oppose the Democrats’ freeze because it makes significant exceptions for Chicago, its school system and 17 other financially-strapped school districts, and for cities struggling to pay long-term debt and make contributions to police and fire pension accounts. […]
House Republican Leader Jim Durkin of Western Springs branded Democratic moves on Wednesday as “political theater.” While the four leaders of the House and Senate met for a second straight day in Democratic House Speaker Michael Madigan’s third-floor Capitol office, none emerged to speak to a media throng outside.
But that could signal progress and an unwillingness to publicly criticize one another. Rep. Tom Demmer, a Dixon Republican tasked with pension-fix negotiations, said the House votes on the tangential issues were “premature” and negotiations continue.
John O’Connor is a longtime Statehouse reporter and he picked up on the same thing I did yesterday afternoon. When the leaders meet and then don’t talk to reporters, that’s usually a good sign. But that’s one of the only good signs we had yesterday.
Meanwhile, legislative leaders planned to meet again on Thursday morning.
As long as they’re talking, there’s some hope. But talks can also be used as a cover to mask a refusal to actually close a deal. Appear as if you’re making progress, then claim the other side was being unreasonable or hasty or whatever. We saw this happen a bunch in the Senate this year.
Rep. Barbara Flynn Currie, D-Chicago, said there was no point in postponing a vote.
“We are at 90 to 95 percent of what the governor asked,” she said. “The idea that we should wait, wait, wait doesn’t make much sense.”
Republicans aired similar complaints about the other bills, that they were the product of Democrats alone and not negotiations between the two parties. They complained the measures were watered down and that negotiations should continue on stronger legislation.
However, Democrats said the time had come to vote with just a couple of days left before the start of a new fiscal year.
So far, it’s almost an exact replay of the Senate at the end of May.
Republican state Rep. Steven Andersson urged lawmakers to pump the brakes on voting for bills currently being negotiated by leadership on both sides of the aisle.
“I’m certainly going to urge every member of my caucus not to vote for these bills,” Andersson said. “Not necessarily because they’re all that bad. Some of them might be there; some of them might be close.
“But if we vote ‘yes’ now, that ends that negotiation. Those negotiations are over because we already agree with you and we’re not quite there yet.”
Both sides are gonna play this game as long as they think they can. The only question is when does it end?
Meanwhile on the House floor, Democrats moved their bills pertaining to Governor Rauner’s reforms, but Republicans called them “fake.” They said Democrats abandoned negotiations in order to ram through their own plan.
“Hell, you have no idea how low I will go to get a budget,” Representative Steven Andersson said. “You have no idea. But the point is here, you do this now, you interrupt these negotiations.”
Democrats counter they’re trying to work with the GOP.
“This is a place of compromise. This is a place of negotiation. Each and every one of these proposals have been discussed with Republicans,” Representative Lou Lang, said.
Bills that are only “discussed” with the other party are, by definition, not compromises.
From my vantage point in the House, it has become increasingly clear that neither Governor Rauner nor House Speaker Mike Madigan wants a budget. Each is more concerned with the upcoming election and preserving power than the best interests of the public. Had both sides been forced to simultaneously submit truly balanced budgets back in 2015 – as I publicly called for – all of this would have been avoided. That is type of honest change Illinois yearns for.
With time counting down to the end of the state’s budget year, Illinois Senate President John Cullerton urged the governor to use the coming days to reach an agreement. The following comment is in response to the governor already talking about ordering more Special Sessions beyond Friday, June 30 and can be attributed to John Patterson, spokesman for Illinois Senate President John Cullerton:
“It’s Wednesday. Now is not the time for the governor to give up. Now is the time to find agreement. People are counting on us. Jobs, schools, vital services all hang in the balance. The avenue to success is there. We would hope that the governor would finally show the willingness to end this impasse and end the chaos.”
Governor Bruce Rauner today released the following statement regarding the General Assembly’s budget negotiations:
“If the legislature fails to send a balanced budget package to my desk by Friday, we will have no choice but to keep them in session until they get the job done.”
Illinois House Speaker Michael Madigan’s spokesman Steve Brown called extra special session days “not surprising.”
“All he [Rauner] needs to do is understand that the Legislature has gone way past middle ground to compromise,” Brown said. “We’ve been working on his reforms.”
*** UPDATE 2 *** Press release…
Democratic candidate for governor Daniel Biss released the following statement in response to Governor Rauner’s threat to extend special session if the legislature does not pass a balanced budget by Friday.
“The Senate did its job and passed a budget. Instead of holding the state hostage to costly stunts, demands, and political manipulation, he needs to sit down with Speaker Madigan, make hard decisions and find compromise, and end this madness.”
* Rep. Deb Conroy (D-Villa Park) just sent me a photo of a mail piece that landed in her district yesterday…
* She also sent me this text…
I just voted to freeze property taxes. Regardless if I liked the bill or not I took the vote in order to compromise with the Governor on his non budgetary demands. The 46th district and the entire state of Illinois desperately need a budget. It is time for the Governor to stop spending his money on mail and do his job.
Madigan demands of Rauner signal doom for budget deal
House Democrats are advancing legislation this week designed to get a budget deal by appeasing Republican Gov. Bruce Rauner on the tangential issues he’s demanded.
But a spending plan that has been absent in Illinois for two years appears doomed in advance of Saturday’s start of another fiscal year. That’s because House Speaker Michael Madigan is making his own non-budget demands.
The Chicago Democrat wants Rauner to sign an education funding overall, OK insurance-rate regulation in workers’ compensation and more.
That’s unlikely. Madigan says, “That’s his decision, not my decision.”
* The Question: Percentage chance that this will all be wrapped up by this Friday night at 11:59? And don’t forget to explain your answer.
The Senate janitors told me that they have to take the trash to the Stratton now because the dumpsters were just removed because state didn’t pay? Might want to check
I’ve since seen some tweets and Facebook posts about it.
* So, I checked with Secretary of State Jesse White’s spokesman Dave Druker. The SoS controls the Statehouse, so they’re in charge.
Dave told me that the contract is expiring with the current garbage collection provider, so it’s now removing its dumpsters. The new provider, which submitted a lower bid, is starting on Monday.
In the interim, janitors will have to take the trash to the Stratton Building.
* It would’ve been a great story, though.
*** UPDATE *** I’ll bow to popular demand and make this a caption contest.
* Rep. Elgie Sims (D-Chicago) posted this to his Instagram account regarding today’s House floor votes on the Democrats’ “non-budget” bills. His frustration and anger is palpable…
House Democrats have attempted time and time again to try to compromise with the Governor and House Republicans on their non-budgetary items yet they continue to say it’s not enough. We give them 70% of what they want on Workers Compensation, the reply? It’s NOT enough! We give them 80% of what they want on local government consolidation, the reply? It’s NOT enough! We give them 90% on pensions, the reply? It’s NOT enough. Compromise is not the same as ceding to ultimatums.
Despite frequent prodding by the hosts to attack Speaker Madigan and the Democrats, Rep. Brady tried to remain as focused as he could on the actual progress being made behind the scenes.
Brady is right about that. Rank and file House Democrats and Republicans have been working together to try to resolve some issues, like property taxes, workers’ comp, pensions, etc.
The problem isn’t necessarily with the members, it’s the two guys at the top of the food chain who can’t resist trying to knock this off the rails. Gov. Rauner has done this time and time again, of course, and Speaker Madigan appears to be doing it today with House floor votes on “non-budget issues” despite the fact that rank and file negotiations are continuing. (Debates are happening on those bills as I write this, by the way, so click here for our live coverage post.)
“I’d like to say to both of them ‘Just sit on the sidelines because there’s key people that can get it done.’ […]
“People will ask me, ‘What is it I can do?’ Everybody’s good at the negatives and the smart comments and that’s fine. If you want to do something positive, drop an e-mail or a call to the governor and/or the speaker today and let them know what you think.”
House Republican Leader Rep. Jim Durkin says Madigan is insisting that Rauner sign off on a bill to let Chicago raise cell-phone fees.
“Three-and-a-half days out before the close of the fiscal year, and new demands from the speaker over-complicates closure to this process,” Durkin said.
If Chicago raises the fees, the money would be used to pay for 911 services. The bill would also extend funding for downstate 911 centers, and would let AT&T phase out traditional landline telephone service.
The legislation passed with bipartisan support, but Rauner prefers a so-called “clean” bill that would allow current 911 services to continue.
House Democratic spokesman Steve Brown said he’s not sure he’d call Madigan’s position on the legislation a “demand.” He says Republicans outlined Rauner’s objections to the Chicago mobile phone fee hikes that would be allowed by the legislation, and Madigan responded that the governor should just sign the bill.
Paul Caprio, Director of Family-Pac, today urged Governor Rauner to veto S.B. 1839.
Caprio said, “We strongly oppose S.B. 1839 for two important reasons. First, we oppose the increase in the 911 telephone tax. Illinois does not need another tax increase on this essential service which hits hardest on those least able to afford it.”
Caprio continued, “Secondly, we strongly object to the provision in this bill that would effectively end telephone land lines and create a cell phone monopoly in the state. This is reckless intervention by government with the freedom to choose which Illinois consumers should have. S.B. 1839 is a classic example of state government promoting ‘crony capitalism’ as opposed to responsibly regulating public utilities.”
Caprio added, “Without land telephone lines in the state of Illinois, our 1st Amendment right to redress grievances through communication with our legislators will be greatly impeded. This is not a time when Illinois should be passing legislation that reduces communication between voters and their Representatives.”
* The plaintiffs are Medicaid managed care providers operating under a federal consent decree. They’re demanding the state pony up at least $500 million a month. The state simply doesn’t have the money…
Judge Lefkow gives 2 sides til Friday to find deal on Medicaid payments #ILBudget
A lawyer has told a federal judge in a civil case surrounding billions of dollars in unpaid Medicaid bills that trying to squeeze money out of Illinois as it heads into a third year without a budget is like trying to squeeze “blood out of a stone.” […]
State attorney Brent Stratton said Illinois can’t come close to finding a spare $500 million. He said it could pay $150 million at best, half paid by federal funds.
Right now, the oldest bills held by the Illinois Comptroller’s office date back to July 1, 2015, when the budget impasse began. Bills being paid on a day-to-day basis still date back to October of 2016. The Comptroller estimates that there are over 188,000 bill requests from state agencies waiting for payment in her office.
Whew.
Just let that sink in for a bit. The oldest bills date back to 7/1/2015.
The state owes Illinois dentists $225 million, and some of those bills go back 23 months, according to the Illinois State Dental Society. Some dentists in college towns or other areas with lots of state workers are selling their receivables to keep their heads above water. Others are asking state employees to pay in cash, says Ronald Lynch, a dentist in Jacksonville.
“There are dentists who have to do this just to survive,” says Dr. Lynch. “It’s very stressful.” Dr. Lynch, who hasn’t asked for such cash payments, says he is owed about $250,000, forcing him to forgo a salary so he can continue to pay bills and his employees.
Health care is the capital’s biggest employer apart from the state itself. Springfield’s two hospital systems — Memorial Health and HSHS St. John’s — say they together are owed more than $200 million by the state. Edgar Curtis, Memorial Health’s chief executive, says he has put off a $100 million capital-expansion project because of the uncertainty. “We hate to see projects being shelved because of what is going on at the state level,” he says.
When payments to vendors are not completed on time, there are financial consequences for the state. The Illinois Prompt Payment Act is a state law that sets mandatory penalty interest payments for most bills over 90-days past due. For most expenses, the interest penalty is 12% per year.
Since the beginning of the year, Illinois has paid $181 million in interest on late payments alone from debts created in previous years. An estimate from the Illinois Comptroller’s office says the state will have accrued $800 million in penalty interest this year that must be made in future fiscal years. The state must pay interest on every bill from the backlog, leaving less revenue left over for other bills in the queue.
That’s $800 million that can’t be spent on social services, schools, universities, public safety, you name it.
Habitually paying “late fees” through interest rates is not a practice used in other highly populated U.S. states. Other states have similar “prompt payment” laws that set late payment dates and penalties for debts in those states. These laws generally give states between 25 and 45 days to pay bills, and penalties range from 5% to 10% annually.
However, no current significant bill backlogs have been reported in California, Texas, New York, Florida, or Pennsylvania. While they each have their share of financial challenges, Illinois’ unprecedented lack of a budget has created a concept that simply does not exist in other states: $15 billion in unpaid bills.
Democratic House Speaker Michael Madigan introduced his long-awaited spending plan Tuesday, but didn’t offer specifics on how to pay for the $36.4 billion proposal that would direct money to schools, universities and social service programs.
That prompted Republicans backed by Gov. Bruce Rauner to accuse Democrats of refusing to “show their cards” on a tax increase, saying without details it’s impossible to tell if Madigan’s blueprint was balanced.
With a Friday deadline looming to strike an agreement before Illinois government enters a third-straight year without a budget, both political parties appear to be locked in a high-stakes game of chicken.
Rauner, his Republican allies in the legislature and the Democrats who control it agree that an income tax hike from 3.75 percent to 4.95 percent is a starting point to dig the state out of a multibillion-dollar hole. In the House, neither party wants to blink first and face the blame from voters who don’t want to fork over more of their money.
“I have said from the beginning … a revenue bill will be a joint effort,” Madigan said Tuesday.
That’s a pretty good take, except that Gov. Rauner and the Republicans haven’t introduced their own tax hike bill, either.
House Speaker Michael Madigan (D-Chicago) and Republican Minority Leader Jim Durkin (R-Western Springs) both agree the state should raise the flat income tax to nearly five percent and the corporate rate up to seven percent, but neither has presented their tax plan in bill form.
Durkin says that’s Madigan’s job.
“I don’t run the chamber,” Durkin says. “I am not running this process. I am not included in participating in the budget which we will see in the next two days. [House Democrats] control it, so they will own the introduction of the tax bill — the Democrat tax legislation.”
After you, sir. No, after you, sir. No, by all means, after you, sir. No, I must insist, after you, sir.
There’s still no concrete plan to pay back the bill backlog, as well. The state is currently paying 12 percent interest on those bills. With refinancing, the state can get that down to 4.5 or 5 percent, but they would need new revenue. In budget talks, Senate Democrats contemplated bumping the income tax to 5.25 percent to pay down the backlog, but other ideas are being discussed as well.
Rep. Greg Harris, D-Chicago, said on Tuesday that House Democrats “would be open to discussion of different revenue sources.”
“In talking to folks who are familiar with the bond market, you do need a dedicated revenue source to get the lowest possible rate,” said Harris, adding that Democrats want to pass a budget plan first, then tackle the revenue bill.
A 5.25 percent income tax rate, even if part of that rate is only in place for a few years for a specific purpose, would be a non-starter for a governor who repeatedly promised during the campaign to lower the rate to 3 percent by the end of his first term.
Rauner wants a statewide property tax freeze and a major overhaul of the workers’ compensation insurance program to cut costs on businesses, which he views as key to economic growth. Madigan, who long argued Rauner should not hold the budget process “hostage” to political demands, now says he has “reluctantly” given in on the need for some changes in order to end the impasse. Still, Madigan warned that Democrats will not simply give Rauner everything he wants, repeatedly calling on the governor to be “reasonable.”
To that end, Madigan said Democrats planned to vote on several pieces of legislation Wednesday designed to meet the governor part of the way, though Republicans said they feared the proposals would be “watered down” to the point they would achieve little in the way of change.
“I can’t determine whether they are sincere or not,” said House Republican Leader Jim Durkin of Western Springs.
The GOP pointed to a Madigan pattern of offering up versions of legislation he knows they can’t support, then blaming them when a deal falls apart. Democrats countered that Republicans were unable to recognize a fair bargain when offered, saying Rauner was immovable.
* Leader Durkin on today’s votes…
“Only three days remain in this fiscal year, time is running out. So after today’s political theater and ‘gotcha’ votes have finished, I’m calling on the legislative leaders to resume meeting and continue negotiations to bring this to a conclusion,” said House Republican Leader Jim Durkin.
That’s a very good response. Nobody should allow somebody else to derail the train.
Also, it’s decent political cover in case this whole thing does crash and burn beyond repair.
…Adding… From Durkin’s spokesperson via text…
Leader Durkin has offered his office for leaders to meet at 2 pm today
…Adding More… From the House GOP…
Leaders are meeting at 12:30 pm in Speaker Madigan’s office
Madigan told reporters he plans to call four reforms for a vote on Wednesday: workers’ compensation reform, a property tax freeze, local government consolidation and pension reform.
“This is governmental negotiation, and I think you all know that in governmental negotiation, like negotiations in most other areas, nobody gets 100 percent,” Madigan said of the governor’s reform asks. “Everybody gets something less than 100 percent.” […]
Republicans also disagree with Democrats on workers’ compensation reform, including the medical fee schedule and on insurance reform.
* It’s not just legislative Republicans. Here’s the top lobbyist for the Illinois Manufacturers’ Association…
House Dem plan for work comp is NOT compromise nor will it reduce costs. It could actually increase costs and make IL worse. Fake reform.
Missing in action is Rauner’s much touted push for term limits. Wednesday marks the last day the Senate could clear a constitutional amendment to send it to the House.
“Leader Radogno has consistently pushed for term limits and a vote on the Senate floor,” Radogno spokeswoman Patty Schuh said. “Based on discussions today, she is not anticipating a vote tomorrow.”
Her constitutional amendment was moved directly to the floor without a hearing on May 19th and then placed on 3rd Reading way back on May 22nd.
The House has to use up three full days to read this into the record before they can vote on it, so today is the deadline.
