Lawmakers returned to Springfield today to work on a state budget, and so far absolutely nothing of consequence has happened, despite Gov. Bruce Rauner’s “unity” speech last night.
But one area of government has exploded as a potential pressure point: The looming shutdown in billions of dollars worth of roadwork, as soon as July 1.
Groups across the political spectrum are yelling their heads off, including road builders, unions, think tanks and both of Illinois’ U.S. senators. That’s a potent combination. It certainly has the potential to elevate Springfield’s budget war in the public consciousness in a way that hasn’t occurred in two years of budget battling. […]
Yet lobbying of lawmakers and Rauner, combined with a social media campaign, are having only a minimal impact so far, [Illinois Road & Transportation Builders Association CEO Mike Sturino] conceded. “I feel like politicians sometimes ought to have cardboard cutouts of themselves that say, ‘I care.’ “
* It’s been a while, but Speaker Madigan talked to reporters for a few minutes after his caucus meeting ended today. There wasn’t much to it, but thanks to Greg Bishop for posting…
The speaker said budget talks are continuing, but said that the plan House Democrats are reviewing and the “compromise” plan Republicans favor are “not too far apart.”
“We have been working for several weeks through the [State Rep.] Greg Harris budget team. They have an outline of a spending plan. They’ve engaged with Republicans. They’ve engaged with the Senate Democrats. They’ll engage with anyone who wants to engage with them to fashion a spending plan that would be good for all Illinoisans,” Madigan said.
Asked about the lack of trust amid the historic budget impasse, Madigan pointed the finger elsewhere.
“People that have worked with me know that my word is good. There’s no problem with trusting me. If there’s some problem with trust around this building, it may be with somebody else,” Madigan said.
Harris, who was appointed lead budget negotiator by Madigan last year, said Democrats are working to incorporate the best parts of each plan.
As lawmakers prepare to return to Springfield to address the budget impasse, officials in Belleville District 118 have been calculating how long its 11 schools could operate next year without state funding.
Gov. Bruce Rauner asked lawmakers to return to the Capitol from June 21-30 for a special session. The new fiscal year begins July 1.
Assistant Superintendent Ryan Boike said during the school board meeting Tuesday night that District 118 could possibly get through September without money from the state based on the revenue it currently has.
“Getting through that last half of September could be a challenge,” Boike told board members.
If the July 1 start of the new fiscal year arrives without an agreement, “all the funding stops,” said Jeff King, chief operations officer at U-46, the state’s second-largest school district with 40,000 students. Cuts like eliminating after-school activity busing and hiring would come first.
“We would be out of money by wintertime. We would use all of our reserves,” King said. By the end of February, U-46 would need to borrow to make payroll or else close schools, he said.
Other suburban schools echoed his warning.
“If a budget is not passed and/or funding is not provided to schools, then we could continue operations using fund balances through the end of November,” said Bill Johnston, assistant superintendent of business and operations at Round Lake Unit District 116, which has 7,300 students.
The Springfield School District could open this fall, but would run out of money by January if state government fails to approve an education budget for the fiscal year that begins July 1, Superintendent Jennifer Gill said Monday. […]
Also looming, Gill noted, is a property tax freeze, a measure strongly supported by Rauner that passed the Senate but sits idle in the House.
While a freeze may be popular, Gill said, it would result in District 186 not being able to collect an additional $1.9 million in local property tax dollars, based on financial projections.
“We enter a time we have never seen before,” she said.
[Harrisburg Superintendent Mike Gauch] says the districts reserves are depleted through years of pro-ration of state funds.
“We’re $700,000 in the hole this year and we do not have the reserves in Harrisburg to be able to weather those kinds of storms every year,” says Gauch.
Chicago Public Schools will open Sept. 5 as scheduled — regardless of whether state lawmakers have reached an agreement on a budget, Mayor Rahm Emanuel said Tuesday.
After rattling off a host of specifics designed to tout the progress made by Chicago students during his time in office, Emanuel said the opening of schools for the 2017-18 academic year won’t depend on Gov. Bruce Rauner and the Democratic-controlled General Assembly reaching a budget deal after an impasse of more than 700 days.
“Parents don’t need anxieties about that,” said Emanuel, who used his education speech at the National Press Club in Washington, D.C., to bash Rauner for failing to reach an agreement on a state budget. “Chicago will be open for the future. I can’t say that about the rest of Illinois.”
Emanuel did not elaborate on how cash-strapped CPS would find the funds to open in September if the state does not start paying its bills. Because of the impasse, the state owes more than $15 billion to a variety of vendors and agencies, including school districts across the state, according to Illinois Comptroller Susana Mendoza.
McHenry High School District 156, which oversees McHenry East and West high schools, is expecting $5 million from the state in fiscal 2018 – $3.4 million in general state aid and $1.4 million in categoricals, which reimburse for expenses such as transportation and special education, Superintendent Ryan McTague said.
State funding accounts for 16 percent of the district’s budget – like other county school districts, local property taxes make up the majority.
“Obviously, if we didn’t receive any of that [state funding], that would be a pretty massive hole,” McTague said.
The fact that Illinois has funded education throughout the impasse does not mean that districts have been made whole, or even within a timely manner. Schools are among the vendors who are in the state’s $15 billion backlog of unpaid bills. District 156 still is waiting on payment for three of its four categoricals this school year – the most recent categorical payment it received was for the 2016 school year, McTague said.
Although McTague said he believes the district could make it the whole year, other districts statewide do not.
House Speaker Michael J. Madigan will give workers injured on the job an opportunity to tell legislators how Gov. Bruce Rauner’s proposed changes to the workers’ compensation system will directly impact them at a committee of the whole hearing Thursday.
“The governor and his allies are determined to institute changes to workers’ compensation, but they have no desire to hear from the middle-class workers who will actually be impacted by their changes No one plans to be injured on the job, but every day workers are seriously hurt or even permanently disabled on the job through no fault of their own.” Madigan said. “Democrats have put legislation on the governor’s desk that will help employers cope with workers’ compensation insurance costs, without hurting middle-class families. As the governor insists on further changes, we owe it to the people directly affected by these changes to give them a seat at the table and a voice in the discussion, not just to hear from the corporate CEOs whispering in Governor Rauner’s ear.”
Madigan will call all members of the House to a committee of the whole hearing on Thursday, June 22 to discuss the governor’s workers’ compensation changes with workers previously injured on the job, and with medical professionals.
Democrats have already passed House Bill 2525, which will help ensure Illinois businesses see the benefits of reform by requiring insurance companies to pass savings on to local employers. The measure also takes steps to crack down on fraud and abuse, and includes additional measures to reduce costs without jeopardizing the health or economic security of workers.
On Friday, June 23, Madigan will convene another committee of the whole to discuss the governor’s proposed property tax freeze with local government officials and educators. Both hearings will convene at 2 p.m. in the House chamber.
He’s obviously not keen on either idea.
…Adding… Agreed…
I believe these are what @GovRauner called "sham" hearings — seems clear why, if it isn't in any way going to LEAD TO A BUDGET. https://t.co/rBoIQEPIPE
At 9:30 a.m. on Thursday, June 22, Chris Kennedy will address the Cook County Pre-Slating Committee, at the Cook County Democrats Building. He will layout his vision for the state of Illinois, and take questions from the committee.
WHAT: Cook County Pre-Slating
WHERE: 134 N LaSalle Dr, Chicago, IL 60602
* The Question: What message should Kennedy deliver to a party organization that probably won’t be endorsing him?
The first day of a special session on Illinois’ budget impasse is off to a slow start.
About half an hour after convening on Wednesday, the Illinois House adjourned until Thursday. House members will spend Wednesday meeting privately and holding public hearings. The Senate, which also convened Wednesday, will also meet privately.
* It looks like workers are setting up for a Committee of the Whole in the House tomorrow…
…Adding… I tipped subscribers about this possibility earlier today…
Speaker Madigan spokesman Steve Brown confirms a Committee of the Whole scheduled for 2 p.m. Thursday about workers comp.
Republican lawmakers Wednesday laid resolution of the state’s budget impasse squarely at the feet of House Speaker Michael Madigan.
At a Statehouse news conference as a 10-day special session was about to begin, Republican lawmakers said the House Democrats are the only group that has yet to lay out a spending and revenue plan to end the nearly two-year budget stalemate.
“Speaker Madigan and the House Democrats will need Republican votes if they want to end this impasse,” said House Republican Leader Jim Durkin of Western Springs. “It is up to them. The time for just having vague, general discussions is over.”
Durkin was referring to the fact it now takes 71 votes in the House to pass bills, including a budget. Democrats hold 67 seats in the chamber.
The Republicans dodged repeated questions about why they won’t introduce their own tax hike bill.
* And Rep. Lou Lang delivered another one of his patented rants at the end of today’s session. Lang chastised the governor for spending “millions of dollars” on TV ads attacking Speaker Madigan and sending out as many as 15 mailers attacking individual House Democrats despite the call by House GOP Leader Jim Durkin for everyone to “lay down their arms” and work on a deal…
“We agree that it’s time to lay down our arms and our weaponry. And so I challenge Leader Durkin today to march down to Room 200 in this building and ask the governor to lay down his arms and his weaponry and do the business of the people of the state of Illinois. It will take even less than the three minutes and fifteen seconds he talked yesterday about the needs of the people of the state of Illinois.”
Rep. Dan Brady (R-Bloomington) then rose to say people on his side of the aisle will do everything they can to “make our time during the next ten days as bipartisan as possible to get something done of the people of Illinois.”
* Illinois Policy Institute: Republican plan perpetuates Illinois’ financial crisis - The Illinois Republicans’ budget proposal includes billions in tax hikes and has an ineffective spending “cap” that will likely result in deficit spending by 2020. The plan’s lack of reforms sets taxpayers up for a permanent tax hike in 2022.
Community groups call on Attorney General Lisa Madigan to investigate Assessor Berrios and for President Preckwinkle and the Cook County Board to fix our unfair property tax assessment system
Wednesday, June 21, Our Revolution Illinois/Chicago, Action Now, Network 49, Blacks in Green, and other community organizations will call for an investigation and a fix for Cook County’s unfair property tax system which illegally hurts working families and communities of color. We will call on key elected officials to do their job and ensure fairness in the system.
On June 10, the Chicago Tribune detailed how the property tax assessment system benefits wealthy homeowners but penalizes low income and working families. Cook County Assessor Joe Berrios has promised to implement new methods that would be fairer and more efficient but has not made good on those promises.
Our Revolution Illinois/Chicago seeks to continue the mission of Bernie Sanders’ campaign by advocating for essential reforms and supporting a new generation of progressive leaders. Our Revolution Illinois will fight to ensure the political and economic systems of the state are responsive to the needs of working families.
We write to respectfully request that the Illinois Attorney General’s Office launch an investigation into the Cook County Assessor’s Office, specifically to determine whether officials violated state or federal law, including the Civil Rights Act, through the assessment process in Cook County. The Chicago Tribune reported on June 10 that through the assessment process, the Cook County Assessor systematically “created an unequal burden on residents, handing huge financial breaks to homeowners who are well-off while punishing those who have the least, particularly people living in minority communities.” Many working families are already struggling to make ends meet. This only exacerbates their hardship.
It appears the faulty assessment process was implemented knowingly. A fairer, more accurate assessment model was developed by experts for the Assessor’s Office, yet it was discarded with no proper explanation, resulting in the continued practice of over- assessing homes in minority and low-income communities. The Tribune further reports that the Assessor relies heavily on a process called “hand checks” through which staff manually adjust the valuation of homes. This process is ripe for abuse and corruption. It may be used by the Assessor’s office to reward or punish particular property owners for political reasons. Yet no statistics are kept on hand checks, the Tribune reports.
This is particularly troubling given that Assessor Berrios has accepted millions of dollars in political contributions from property tax attorneys. The Tribune found that his three campaign funds “raised more than $5 million since 2009, more than half of which came from property tax attorneys and the businesses associated with them.” Some of these property tax attorneys almost exclusively donate to the Assessor and the Board of
Review. Since 2010, of all political contributions by the real estate law firm Weiss, Dubrock, and Doody, 95% were to Berrios and the Board of Review. Another real estate law firm, Flanagan Bilton, gave 81% of its contributions to Berrios and the Board of Review.
Yet when the Tribune sought documentation explaining how the hand check process works, Assessor Berrios refused, and the matter is currently in court. This begs the question as to what degree “pay-to-play” was involved when wealthy political donors sought reductions in assessments.
The rest is here. Their letter to President Preckwinkle is here.
* Also…
Cook Co. Commissioner @jesuschuygar calls for Assessor Joe Berrios to testify before board on property tax system, after Trib investigation
Chair of the Illinois Legislative Black Caucus and Assistant Senate Majority Leader Kimberly A. Lightford (D-Chicago) today expressed deep concern over an Associated Press report that suggests that Governor Bruce Rauner’s administration took action to purposely exclude state guidelines aimed at encouraging minority-owned business opportunities in an effort to steer a nearly $100 million taxpayer-funded contract to a private company that is charged with creating online efficiency in state employee health insurance processing.
The news story, published on Sunday, highlights that the system was hastily designed and has caused serious difficulties in managing health care records of potentially hundreds of thousands of public employees and retirees. In addition, the investigation exposes the Rauner administration’s efforts to award the massive contract to Georgia-based company Morneau Shepell in what appears to be a favored contractor:
“Documents show CMS staff members were told to proceed without following guidelines for ensuring minority-owned business participation,” the AP story says.
“Bruce Rauner might have purchased the Illinois Republican Party, but he doesn’t own the State of Illinois,” Lightford says. “It’s outrageous to discover that he thinks it’s perfectly legitimate to misuse the trust of taxpayers to skirt rules aimed at giving all qualified businesses an equal playing field.”
Lightford says she is discussing the possibility of utilizing part of Governor Rauner’s 10-day Special Session mandate to conduct a hearing on the failures of the Morneau Shepell contract as well as the procedures and decisions for discarding procurement rules.
“I don’t care if Bruce Rauner doesn’t like the long-established requirements to include and consider minority and woman owned businesses, I care that he decided to simply discard them,” said Lightford. “There’s a need for accountability here and I suspect questions will need good answers. We should do that in a public hearing, not behind the Governor’s preferred closed doors.”
Throughout the past six months a number of news investigations have highlighted serious flaws in the judgement of Rauner officials when it comes to hiring and contracting. Already, the Illinois Senate Appropriations Committees have held in-depth hearings on what appear to be multi-million dollar insider leasing schemes to store supplies like paper in private warehouses.
Georgia-based Morneau Shepell was the only company to respond to a quickly executed November 2015 request from the Department of Central Management Services to design a web-based portal for managing health insurance options. The request was posted for only 26 days. Documents show CMS staff members were told to proceed without following guidelines for ensuring minority-owned business participation. […]
Despite a requirement that vendors submit plans to ensure 20 percent participation in the contract by minority- or women-owned establishments under the state’s Business Enterprise Program, contract documents include a note that CMS “has been directed to move forward without the inclusion of a BEP goal.”
CMS spokesman Richard Bossert would say only that “the decision was made by CMS at the time of procurement.”
“Since Morneau Shepell was the only bidder, if BEP goals were not waived, the state would have received no bids at all,” he said. But the waiver note was dated Nov. 3, the day before the procurement request was even made public.
Speaking onstage at the downtown City Club of Chicago luncheon Tuesday, [Bill] Daley prognosticated that “Bruce Rauner cannot win re-election if he does not get a budget right this year. … I don’t care who’s running against him.” […]
He added, “I said at the time that anybody who was running against Pat Quinn would win … but I would say right now … I don’t see how Rauner could go to the voters and say, ‘I’ve done something positive.’” […]
Asked after the event by Chicago Inc. why Illinois House Speaker Michael Madigan would agree to a budget deal if holding out would ensure a Democrat in the governor’s mansion when next year’s election is over, Daley said he doesn’t believe Madigan “wants to collapse the state. I think there’s more rationality than that.”
But the brother and son of former Chicago mayors added, “If it’s strictly on politics then, yeah — just let chaos happen.”
The Democrats had better not get over-confident. Nothing is assured in politics. It’s the essential beauty of this business. And while Rauner has definite governing problems, he’s one of the best campaigners at this level that I’ve ever seen. If anyone can win, it’s him.
Also, Speaker Madigan has held out this long, so I wouldn’t be too sure of Daley’s assertion that he doesn’t want to collapse the state. Madigan’s counterpart in the Senate, after all, has been working for months to prevent a complete disaster. Madigan has not put forth any budgetary plans in a year.
Rauner Releases Digital Ad – “The No. 1 Change”
Highlights Real Stories Behind the Need for a Property Tax Freeze
As lawmakers return to Springfield to work on passing a balanced budget with reforms to end the impasse, Rauner today released digital ads highlighting real stories of Illinoisans hurt by crippling high property taxes.
Property taxes are driving people and businesses out of their homes. That’s why Governor Rauner is pushing so hard for property tax relief in Springfield.
If we can agree to pass it, this plan will send a message across our state and around the nation that we are serious about making Illinois a more attractive destination for investment, new businesses, and new jobs.
If we can agree to pass it, we will stop this unnecessary crisis.
Failure to act is not an option. Failure to act may cause permanent damage to our state that will take years to overcome.
An unnecessary crisis?
* From just before the impasse began in April of 2015…
Republican Gov. Bruce Rauner kicked off a campaign-style statewide tour Monday by indicating he’ll try to “leverage” the state’s money woes into securing a series of pro-business changes from a General Assembly controlled by Democrats likely to fiercely oppose them.
The first stop was at Tribune Tower, where the governor sought to frame up the last seven scheduled weeks of the spring session during an appearance before the Chicago Tribune Editorial Board. The governor and legislative leaders will try to craft a new budget before the May 31 adjournment deadline against the backdrop of a projected deficit of $6 billion and Rauner calling for major cuts.
“Crisis creates opportunity. Crisis creates leverage to change … and we’ve got to use that leverage of the crisis to force structural change,” said Rauner, borrowing from a political philosophy famously coined by his friend Rahm Emanuel that “you never want a serious crisis to go to waste.”
This crisis was deliberately created. Rauner thought he could make the Democrats blink first. The Democrats thought Rauner would blink first. And here we are, more than two years later and everybody’s eyes are as dry as the Sahara.
“We will crush our economy if we try to spend money on both high-cost, inefficient, bureaucratic, heavily unionized government and a social safety net to help the disadvantaged,” Rauner said.
“We can’t afford both,” he said, and “wealth creators,” like JIMMY JOHN LIAUTAUD, founder of Jimmy John’s sandwich shops and another panelist, would be forced to leave the state.
“I think we can drive a wedge issue in the Democratic Party on that topic and bring the folks who say, ‘You know what, for our tax dollars, I’d rather help the disadvantaged, the handicapped, the elderly, the children in poverty,’ ” Rauner said, instead of directing tax dollars to the Service Employees International Union or “AF-Scammy,” an apparent reference to the American Federation of State, County and Municipal Employees, known as AFSCME for short.
* For the second time, a federal judge has dismissed a lawsuit filed by Jason Gonzales, Speaker Madigan’s 2016 Democratic primary opponent. The lawsuit was filed against Madigan and other alleged conspirators. Judge Matthew Kennelly was not impressed…
The remaining defendants filed a joint motion to dismiss the federal claims against them on two grounds: (1) Gonzales failed to allege that defendants acted under color of state law; and (2) he failed to allege the deprivation of any federal constitutional right. The Court determined that Gonzales failed to allege that the remaining defendants acted under color of state law and dismissed all of his federal claims against those defendants, including the claim of civil conspiracy. The Court did not consider defendants’ remaining arguments.
The Court granted Gonzales leave to amend his complaint; the Court’s order said that unless he filed an amended complaint that included at least one viable federal claim, the Court would dismiss his federal claims with prejudice. Gonzales filed his amended complaint on March 29, 2017, asserting, with additional factual allegations, the same claims as in the original complaint.
For the foregoing reasons, the Court grants the joint defendants’ motion to dismiss. And because it is apparent that Gonzales cannot make allegations plausibly supporting a contention that one or more of the defendants acted under color of state law, there is no good reason to give him further attempts to amend.
* Chris Kennedy is making two seemingly contradictory claims out on the campaign trail. He says he represents “radical” change, but also says he wants to bring stability and predictability back to state government. Radical change isn’t usually associated with stability, however. Just the opposite.
The only unifying thing Bruce Rauner is doing is bringing voters together to support radical change in Illinois… Compromise - real compromise - like the kind that happens before the session ends when lawmakers are debating the merits of their proposals, is not surrender.
Taken together, those two sentences don’t make any sense.
I’m sure these diametrically opposed messages both test well. I just wonder if or how long he can get away with saying both things.
…Adding… From comments…
Macron just won the French Presidency on this same message - Radical Centrism.
* Gov. Rauner loves the Wall St. Journal editorial page. That edit board is full of his class of like-minded folks. Back in the day, he would often send around clips from editorials to his pals with his own approving commentary.
The Illinois Capitulation - Gov. Bruce Rauner cries uncle on taxes and economic reform
Bruce Rauner spent a chunk of his personal fortune running for Governor in 2014 to save Illinois from its tax-and-spend political class. More than two years later it looks like the former private equity star has made better investments.
On Tuesday evening the Governor with the worst job in America explained why he and his fellow Republicans have offered to raise taxes for the sake of ending a multiyear budget impasse with Democrats. He said he’ll accept a four-year increase in the flat state income tax to 4.95% from the current 3.75%, expand the sales tax and implement a cable and satellite TV tax.
This is a political defeat by any definition since Mr. Rauner campaigned on lowering the income tax to 3%, not on restoring the rate close to what it was under the last Democratic Governor. The “temporary” 5% rate partially sunset in December 2014. Democrats who run the legislature refused to negotiate over a budget unless Mr. Rauner agreed to a tax increase, and now they’re refusing to make notable spending or economic reforms in return. […]
The Governor’s capitulation may have been triggered by the latest downgrade by Moody’s and Standard & Poor’s in the state bond rating to near junk status, with a warning that another downgrade could come this summer. Mr. Rauner doesn’t want to run for re-election next year as Governor Junk.
Oof.
They do make a good point about how he campaigned on lowering the rate to 3 percent by the end of his first term. He took his eye off that ball almost right away, however, and chose to fight a long, protracted war instead.
…Adding… Just as an aside, this could sting even more because the WSJ’s editorial page editor is Paul Gigot, who attended Dartmouth with Rauner.
…Adding More… The WSJ and Joe Walsh on the same day?…
At this point, as a Conservative Republican stuck in Illinois, I have no reason to vote for @BruceRauner.
Positive Headlines for Rauner’s Speech
Democrats Come Across as Petty – Attacking Speech Intended to Unite Around Compromise
While Governor Bruce Rauner addressed the people of Illinois directly, pleading for compromise and unity amid an historic budget impasse, Democratic candidates for Governor and allies of Speaker Mike Madigan publicly refused to accept the Governor’s call.
Instead of agreeing that it’s time to reform our state to end the budget impasse, Democrats attacked a plea to work together.
To everyone outside the rotunda bubble, it was petty.
But Governor Rauner’s message reached Illinoisans across the state. Check out these positive headlines in response to the Governor’s message.
State Journal-Register: Rauner calls for unity ahead of special session
“Failure to act is not an option,” Rauner said in the speech that lasted a little over three minutes. “Failure to act may cause permanent damage to our state that will take years to overcome.”
Rauner called for lawmakers to support a Republican budget plan released last week that would set state spending at $36 billion a year for the next four years. Rauner called it a “compromise budget plan that I can sign, one that we all can support.”
ABC 7 Chicago: Governor Rauner gives address focused on unity, budget
From behind the podium set up in the historic Old State Capital building, Rauner tried to bring an end to the historic budget impasse that has crippled Illinois during the three years there has been no balanced budget.
Chicago Tribune: Rauner calls for compromise in speech Democrats dismiss as empty rhetoric
“Our history reminds us of our state’s great capacity for change — and for our limitless potential when those elected by the people put the people’s interests ahead of all else,” Rauner said. “Right now, our state is in real crisis and the actions we take in the days ahead will determine how history remembers us.”
WTTW: Rauner Calls for Compromise Ahead of Special Session
As Illinois faces the unprecedented possibility of the third fiscal year in a row dawning without a budget in place and on the eve of a special session that’s lawmakers’ last chance to head off that harsh reality, Gov. Bruce Rauner gave a short – but highly publicized – speech.
“Right now, our state is in real crisis – and the actions we take in the days ahead will determine how history remembers us. We can all do better. We must all do better for the citizens of Illinois,” Rauner said Tuesday evening.
WCIA Springfield: Rauner urges ‘Capitol Compromise’
Standing on the second floor of the Old State Capitol, Rauner summoned the unifying powers of Abraham Lincoln, repeating the former president’s famous line, “a House divided against itself cannot stand.” Illinois remains deadlocked in the longest budget battle in state history.
WAND: Governor Rauner urging unity among state lawmakers
Governor Bruce Rauner appeared at the Old State Capitol in Springfield to urge lawmakers to put aside their differences and agree to state budget.
State lawmakers are being called back to Springfield starting Wednesday to participate in a special session, where Governor Rauner hopes a compromise on a state budget can be reached.
“Governor Rauner promised a grand, unifying speech. Instead, all we got was a few minutes of empty remarks in an empty room. The only unifying thing Bruce Rauner is doing is bringing voters together to support radical change in Illinois. We have state leadership that has completely and utterly failed us. It doesn’t have to be this way. Compromise - real compromise - like the kind that happens before the session ends when lawmakers are debating the merits of their proposals, is not surrender.
“This speech is indicative of Rauner’s views on “unity”. He goes around our lawmakers, operates outside our legislative process, and talks into a camera in an empty room instead of bringing us a balanced budget.
“As he’s said before, if Chris Kennedy is elected as the next governor and he doesn’t balance the budget, he won’t run again. That’s the level of accountability and honesty that’s sorely missing in Springfield.”
* Sen. Daniel Biss…
“Illinoisans were just subjected to the worst infomercial in our state’s fiscal history—advertising more of the same hypocrisy out of Governor Rauner that we’ve seen over his entire term. While saying “failure to act is not an option” with regards to passing a budget, he doubles down on the very fecklessness that’s gotten us here in the first place.
I’ll remind the governor that he has chosen not to act for the last two years, putting himself, his wealthy friends, and his campaign first. It’s time he and Speaker Madigan sit down, take action, and end this pain.”
* JB Pritzker…
For nearly three years, Illinois families have seen and felt the impact of Governor Rauner’s disastrous and divisive leadership. Parents are struggling to pay the bills, schools are finding it harder to stay open, and vital social service agencies aren’t getting the funding they need.
The budget crisis has crippled our state while Bruce Rauner sat by and did nothing. Now today, on day 720 of the crisis he created, Rauner has decided he wants to make people think that he’d like to work together to get something done. But I don’t believe a word of it:
Bruce Rauner calls his proposal a compromise budget, but that could not be further from the truth. There’s nothing about it that’s a compromise. There’s no unity in his call for unity. It’s a sham.
Our schools need funding. Our mental health facilities and our shelters need funding. Our social safety net needs rebuilding.
We need somebody who is going to stand up for Illinoisans. That’s not what Bruce Rauner is trying to do. What he’s proposing is a sham and I won’t stand for it.
Thank you –
JB
* Ameya Pawar…
“Gov. Rauner is a liar, a fraud and a flake. In his brief televised address tonight, he said he wants to work with all members of the General Assembly to pass a balanced budget during the special session, but he’s attacking Democrats with TV ads, mailers and flyers. He said he supports equitable funding for public education, but he has threatened to veto a bill which would increase funding to 270 school districts in our state, including Chicago’s. When he was campaigning for governor he said he was pro-choice, but now he’s against a bill that would expand health care coverage for women that would provide more access to abortion care.”
“This has gone on too long. The governor has been exploiting the divisions between Chicago and the rest of the state and using coded language to play off people’s fears. He would rather see our state divided to put more money in the pockets of his donors than do his job and improve the lives of people across all communities.”
“Illinoisans deserve a governor who will stay true to his word and lead our state out of financial crisis. It’s not enough to talk a good game–we have big challenges as a state and we need a governor who understands how to cut through the politics as usual and get things done that actually improve people’s lives. That’s what I’ve done as alderman, by securing funding for neighborhood schools and passing several pieces of progressive legislation that directly benefit working families. And that’s the kind of leadership I’ll bring to the governor’s office if I am elected.”
* DGA…
“Tonight, Bruce Rauner tried to reset his failing tenure as Governor of Illinois by offering nothing new in terms of policy or message. Instead, he pretended he played no part in creating and exacerbating the state’s fiscal crisis. Bruce Rauner purposefully drove the state off the rails, leading to nation’s longest budget impasse in history, skyrocketing debt, a crippling blow to our higher education system, and a ruined social safety net. That is not the record of someone interested in unity or governing, but someone who is willing to sacrifice Illinois’ future for political points. Illinois, under Bruce Rauner’s failed leadership, is moving backwards.”
* Team Rauner…
Governor Rauner addressed the people of Illinois tonight from the Old State Capitol in Springfield on the eve of the legislators’ 10-day special session, stressing the need for unity and compromise.
This special session provides the opportunity for legislators to make lasting change for our state. We need a balanced budget with spending caps, long-lasting property tax relief, term limits, and reforms to grow jobs.
You can watch the Governor’s full address here, or read the quick recap below:
QUICK RECAP
Gov. Bruce Rauner on compromise:
“We’ve asked the General Assembly to come together in a special session for the next 10 days – not as Democrats and Republicans – but as leaders who share bipartisan concern for our state’s future.”
“To do what those who came before us did that changed the course of history: have the courage to dare to do what is right … to act for the people.”
Gov. Bruce Rauner on a balanced budget:
“Last week, we reviewed a compromise budget plan that I can sign… It is truly balanced. It funds schools, higher education, and human services. It provides a real path to property tax reduction.”
“We must agree on a balanced budget plan, and get it to my desk before the end of the state’s fiscal year – one week from Friday.”
Gov. Bruce Rauner on real reform:
“The plan also stands tall for fundamentals. Spending reductions. Limits on expenses. Debt reduction. And term limits on legislative leaders and statewide officeholders, including the Governor.”
“Failure to act is not an option. Failure to act may cause permanent damage to our state that will take years to overcome.”
…Adding… Not a campaign release, but this is Rep. Greg Harris, who spoke for the House Democrats…
“Democrats are returning to Springfield in hopes that the governor is finally ready to compromise on a budget. But, even now, the governor is talking out of both sides of his mouth: As he holds a campaign speech ostensibly calling for unity, he’s also bankrolling negative attack ads and mailers against House Democrats and the very people he is calling on to work with.
“House Democrats have said for two years that we believe a resolution to Governor Rauner’s manufactured budget crisis must be our top priority. We have continually looked for ways to compromise with the governor without hurting middle-class families, and have worked to find common ground so the governor will finally focus on a budget.
“At the governor’s request, House Democrats have voted to cut property taxes, reform workers’ compensation, improve the business climate, sell the Thompson Center and reform the state procurement code. With each attempt to meet Governor Rauner half way, we urged him to return to the table to negotiate a budget. Sadly, the governor refused each time.
“The budget supported by Governor Rauner and legislative Republicans is not balanced. It’s not the honest budget Illinois taxpayers deserve. It’s clear that real negotiations and real compromise are needed.
“Despite the repeated campaign attacks against House Democrats, we have continued to prioritize a balanced budget. In the weeks since the spring session adjourned, we’ve held a series of budget hearings where we’ve heard directly from the victims of Governor Rauner’s budget crisis. From the parents of children with developmental disabilities, to survivors of sexual assault, the men and women speaking out are in agreement: the governor needs to put aside his extreme agenda and compromise. The governor dismissed these people as ‘props’ instead of recognizing who they are – victims of his budget crisis.
“Governor Rauner, your actions speak louder than your rhetoric. After more than 700 days of blocking compromise, it’s up to you to prove that you are finally ready to put the needs of Illinois families ahead of political games and start working in good faith on a budget.”
“Unity doesn’t come from a speech and it certainly doesn’t come from campaign attack ads aimed at your negotiating partners,” Cullerton said in a statement Tuesday. “It comes from a willingness for practical compromise with others and exerting the effort to round up the votes needed to make that compromise law. To date, we haven’t seen that from Gov. Rauner. I hope this signifies is a step in a new direction.”
* The governor will speak live tonight from the Old State Capitol starting at around 6:03 pm. The address is scheduled to last three or four minutes (apparently it’s designed to fit into local TV news broadcasts). I’ll post a ScribbleLive thingy before then and we’ll also use that for reactions. Background on the speech is here.
The governor’s campaign Twitter account tweeted about the speech this afternoon and he posted a notice on his campaign’s Facebook page. The tweet and Facebook post directed folks to a page on Rauner’s campaign site where people can sign up for an e-mail “recap” of the address after it’s over So, he appears to be using his address tonight to beef up his campaign e-mailing list, which is often used for fundraising. There’s also a “donate” button on that campaign page. That’s the same campaign, by the way, which is currently running ads sharply critical of Speaker Madigan and his “puppets” for blocking a budget when he, himself repeatedly blocked a Senate budget.
Anyway, check back around 6 o’clock. You can watch the speech on the governor’s Facebook page (click here) or his campaign site (click here). Also, check your local TV stations because some will be carrying it live via a special satellite feed.
The health care systems families rely on in Illinois are feeling financial strain as the state gets ready to wrap up its second full year without a budget.
Bigger health care systems such as Southern Illinois Healthcare say they’re owed more than $70 million combined in unpaid Medicaid and state employee health insurance. Smaller groups, such as Franklin Hospital in Benton, Illinois, say they’re now owed more than $2 million. Hospital leaders say, while bigger groups may be able to weather the political storm from the budget impasse, the situation for their small, critical access hospital is very serious.
Inside Franklin Hospital, Jeanne Bierman does her best to make sure there are enough supplies to fill any and every patient demand. But, without the $2 million owed by the state, supply vendors often go unpaid. Lately, it’s left the supply stock running slim in some spots.
“We usually have a backup of eight cases of normal saline. We were down to one bag of saline. Fortunately, we were able to get an emergency supply from our pharmacy,” Bierman said. The hospital says it will always find a way to provide supplies for patients, but many leaders worry their current supply vendors will cut them off unless they can catch up on payments.
“I mean, I probably get one demand letter a week from my vendors saying they’re going to cut us off if we don’t pay out or get caught up to a certain degree,” said Franklin Hospital CEO and CFO Jim Johnson. He said the financial experts often have to prioritize payments, making sure payroll is met while vendors may wait for payments.
As the General Assembly gathers in Springfield later this month to attempt to pass a state budget, there may be proposals to muddle through with yet another “stopgap” budget. We strongly oppose such a move.
First, a stopgap budget – which provides limited funding for a few “essential” government services – will not end our state’s financial tailspin. Despite previous stopgap measures, ratings agencies have downgraded Illinois’ financial status to near “junk-bond” levels, causing taxpayers to pay much higher interest rates for any necessary borrowing. Another stopgap bill will undoubtedly drop us into junk territory, while doing little to stop our growing budget deficit and backlog of bills from reaching record levels.
Second, a stopgap bill will fail to address the inadequate level of dependable funding that has put many of our state’s vital services at risk. It will not stop more social service agencies from closing or from curtailing their provision of state services in areas from childcare to mental health and anti-addiction programs. It will not allay growing concerns from job-creators that Illinois continues to be unstable, which negatively affects economic growth. Our state universities will continue to lay off faculty and staff while more students leave the state or for those who need assistance, will be forced to forgo a higher education. And school districts across Illinois will struggle to open their doors when the new school year starts in a few months, which is why nearly 300 district superintendents are opposed to a stopgap budget.
The only answer to this crisis is for the General Assembly to pass – and the Governor to sign – a balanced, full-year budget that fully funds our vital services, adopts important reforms, and puts state finances back on track. The Senate has passed a budget plan with spending cuts, revenues and reforms. Recently, Senate and House Republicans have put forward their own budget proposal, which also embraces spending cuts, the revenue increases included in the Senate bill and reforms.
The answer to the budget impasse is not another stopgap budget, which merely puts off the hard decisions while state finances continue to collapse. The answer is to forge a compromise that balances, reforms, and ultimately moves Illinois forward. Anything less, including yet another stopgap measure, is a recipe for continued financial chaos and the human misery that results.
Signed,
Sen. Toi Hutchinson, Sen. Andy Manar, Sen. Heather Steans, Sen. Donne Trotter, Sen. Pam Althoff, Sen. Dale Righter and Rep. Kelly Cassidy
Althoff and Righter are both Republicans. The rest are Democrats. All are involved in the budget-making process.
[Rep. Sue Scherer, D-Decatur] also complained about the “huge tax hike” that would be part of either side’s plan.
“I’m all about doing a budget, but I’m not about doing it on the backs of the hard-working families in my district,” she said.
Instead of a general tax hike, Scherer said she wants more revenue to come from closing business tax breaks and enacting a surcharge on incomes above $1 million.
Just before Republicans laid out their plan and Rauner called the special session, the Illinois Republican Party sent mailers into Democratic districts blasting the Democratic lawmakers for supporting “their plan.”
Among the criticisms was that “their plan” included a massive income tax hike and no property tax relief. Really? The only plan that’s out there, which passed the Senate, has a 2-year property tax freeze that got the votes of a few Senate Republicans. It’s true, it is a 2-year rather than a 4-year freeze, but it is relief. Sen. Sue Rezin, R-Morris, used that term when she voted for it.
And the massive income tax increase? Presumably that is the tax increase approved by the Senate that both Rauner and several Republican lawmakers now say they might support if certain conditions are met. […]
By the way, one of those mailers went into the district of Rep. Sue Scherer of Decatur.
She’s a Democrat, so it fits the Republican narrative that all Democrats are in Madigan’s pocket. The thing is, though, Scherer doesn’t support the tax hike. Or as she put it, she doesn’t support a revenue plan to balance the budget if it means “doing it on the backs of the hardworking people of my district.”
So the mailer is accusing Scherer of supporting a tax hike she doesn’t support.
Not by him giving a speech. You have a meeting. You exchange information. You talk about policy. They don’t do that. They, I’m sure, have polls before they walk into a meeting. It’s that frustrating, and believe me there’s frustration on the Republican side. Tremendous frustration.
* He was then asked if he was hopeful that the state will have a budget by the end of June 30th…
You don’t have to watch the play ‘Hamilton’ to know that there’s a separation of powers. I’m only in charge of what I can do in the Senate. I can’t go over and vote in the House. I can’t sign bills.
* The Question: Are you hopeful that the state will have a real budget by this coming June 30th? Click here to take the poll and then explain your answer in comments, please.
At Lincoln United Methodist Church on the South Side, J.B. Pritzker gladly received the endorsement of Congressman Luis Gutierrez.
Gutierrez is one of the most outspoken champions of immigrants’ rights and he vowed to keep up that fight, both locally and nationally.
“When I’m governor, I am going to take a page right out Luis Gutierrez’s playbook and be a thorn in Donald Trump’s side every move he makes,” said Pritzker.
img 3496 Illinois Governors Race Heats Up With Strong Endorsements
“It seems to me that we need to find defenders and protectors of our children and our families,” the Democratic congressman from Chicago said at an announcement event. “JB was very, very clear in the beginning that the policies of Donald Trump are discriminatory, are biased, are prejudiced and racist policies,” he continued. “He stood up with our community and he called it for what it is, and those are the kinds of men and women that we need in elected office.”
“Am I a fighter for immigrant rights? Yes. The fact that Luis Gutierrez has stood up to endorse me is an indicator to the people who care about these issues that I will be a champion for them,” Pritzker said.
With months to go before the primary, Pritzker has already lined up endorsements in key voting blocks. Several democrats believe he is the only candidate with the financial resources to compete and beat Governor Bruce Rauner.
“I think that is a very positive thing. I’m happy he doesn’t have to have one fundraiser after fundraiser after another with people,” Gutierrez said.
“‘Make America Great Again,’ our president says. ‘Make America Great Again?’ An America in which women are in the kitchen, gay people are in the closet, black people are on the back of the bus and Latinos and immigrants were just silent and quiet? That’s the America he wants to take us back to,” said Gutierrez, a 24-year member of Congress.
“If we’re going to be triumphant, you want to win, you want to beat Rauner, who is nothing but a sidekick of Trump,” the congressman said. Later, Gutierrez, a member of the House Judiciary Committee, told reporters that the panel should begin impeachment proceedings against the president for obstruction of justice in the probe of alleged collusion between the Trump campaign and Russia in the 2016 election.
Pritzker said he was “proud” to accept the endorsement of Gutierrez, whom he called “one of the fiercest fighters of the nation … to beat Donald Trump, to beat Bruce Rauner.”
Rauner and Trump “have the same agenda and the same governing style: attack, blame, deny and divide,” Pritzker said. “I’m running for governor to unite Illinois and to get things done for this state.”
* From a letter sent by Comptroller Susana Mendoza to Gov. Rauner, the four legislative leaders and all state legislators…
As Illinois’ Chief Fiscal and Accountability Officer, my Office is responsible for managing the state’s financial accounts as well as providing the public and the state’s elected leadership with objective and timely data concerning the state’s difficult fiscal condition. As you are quite aware, I have been very vocal regarding these issues and the budgetary impasse since assuming office six months ago; however we are now reaching a new phase of crisis.
Accordingly, I must communicate to you at this time the full extent of our dire fiscal straits and the potential disruptions that we face in addressing even our most critical core responsibilities going forward into the new fiscal year. My Office has very serious concerns that, in the coming weeks, the State of Illinois will no longer be able to guarantee timely and predictable payments in a number of areas that we have to date managed (albeit with extreme difficulty) despite an unpaid bill backlog in excess of $15 billion and growing rapidly.
We are effectively hemorrhaging money as the state’s spending obligations have exceeded receipts by an average of over $600 million per month over the past year.
My cause for alarm is rooted in the increasing deficit spending combined with new and ongoing cash management demands stemming from decisions from state and federal courts, the latest being the class action lawsuit filed by advocates representing the Medicaid service population served by the state’s Managed Care Organizations (MCOs). As of June 15, the MCOs, and their provider networks, are owed a total of more than $2.8 billion in overdue bills at the Comptroller’s Office. There is no question that these obligations should be paid in a more timely manner and that the payment delays caused by the state’s financial condition negatively impact the state’s healthcare infrastructure. We are currently in court directed discussions to reach a workable and responsive payment schedule going forward, but any acceleration of the timing of those payments under the current circumstances will almost certainly affect the scheduling of other payments, regardless of other competing court orders and Illinois statutory mandates.
For the record, however, and as a message to the financial markets, please know that debt service payments will not be delayed or diminished going forward and I will use every statutory avenue or available resource to meet that commitment. It is a necessary pledge in order to attempt to avoid further damage to our already stressed credit ratings and to make possible the additional debt financing that we all know will be required to achieve some measure of stability going forward.
Ultimately it is the only way that we can preserve what remains of our ability to provide vital services to our state’s most at risk populations.
Currently, more than 90 percent of Illinois’ monthly spending is directed toward core functions of state government mandated by court orders, consent decrees, or state law including continuing appropriations. These include certain Medicaid programs, debt service, payroll, K-12 General State Aid and state pension contributions. With the inevitable cash management impact related to the outcome of the MCO lawsuit, this Office will soon be facing the prospect of deciding which court order or statutory mandate the state can accommodate. I hope we can all agree that this is more than an unprecedented situation; it is simply unacceptable.
Even absent pressure from additional court orders, we still foresee unmanageable financial strains, beginning in July, that will severely limit any payments in core areas not under court mandate or consent decree that provide essential services to the state’s most vulnerable individuals, including but not limited to, long-term care, hospice, and community care and supportive living centers serving the senior community, and ambulatory and other critical medical supplies for the poor and disabled.
In large part, through careful cash management and effective stewardship of the state’s General Revenue Fund, our Office has made every effort to triage this crisis in a way that has prioritized and enabled some hardship payments to the state’s most vulnerable citizens and the programs that serve them while still meeting core obligations. That ability will eventually cease.
It is critical that the state’s fiscal situation be addressed immediately before the cash shortages this summer cause further deterioration. I am available to discuss this situation, and possible remedies, with you personally, as a group in a leaders meeting or individually at your earliest convenience.
In the meantime, I will be meeting and communicating with other public stakeholder groups to share these same warnings.
My closing message is simple: The state can no longer function without a responsible and complete budget without severely impacting our core obligations and decimating services to the state’s most in need citizens. We must put our fiscal house in order. It is already too late. Action is needed now.
I eagerly await your response as to next steps for furthering this discussion.
On June 16, Rauner launched a nearly $1 million TV advertising blitz slamming Democratic House Speaker Michael Madigan for blocking his reforms.
Then again, here’s a question almost nobody is asking: “Did Rauner miscalculate?”
We’ll know more when the real pain hits and everything goes to hell, but I wouldn’t yet bet too much on a massive Democratic cave-in.
In July 2013, Gov. Pat Quinn vetoed lawmakers’ salaries and stipends out of the state budget. He “hit them in the wallet,” he said, to spur action on pension reform.
Instead, all legislative progress suddenly and completely stopped on pension reform for a few months until a court finally ruled that the governor’s veto was unconstitutional. No way were legislators going to let Quinn push them around.
I could very well be wrong, but if legislators wouldn’t cave to protect their own pocketbooks, what makes anyone think they’ll cry “Uncle!” over somebody else’s problems?
Plus, legislators surely know, as they did with Quinn, that they can’t allow a precedent like this to be set: getting Rauner’s approval on the budget by giving in on his legislative agenda. If Democrats capitulate now, then the governor will just do it all over again when next year’s budget negotiations begin. […]
Yes, we’ve never seen a governor like Bruce Rauner before. Yes, the ads he’s running and the budget crisis he apparently is willing to create to obtain his goals are unprecedented.
But if past is prologue, I sure hope the governor has a Plan B in mind.
* Say what you want about Rep. Scott Drury (D-Highwood) - and you can say a lot - he’s right about this assertion…
[Drury] says the state party, which Madigan leads, is about winning at any cost. This, in his opinion, is why his party did not vote to raise the minimum wage when it controlled the governor’s office and had super-majorities in the House and Senate.
“Year after year we say - we plead to a base and say, ‘We’re going to take of you. We’re going to take care of you.’ And then we don’t do anything for them,” Drury said.
Instead of passing a minimum wage increase back when it would’ve been signed into law, Madigan put a non-binding question on the ballot to gin up votes for his party. But then Madigan did nothing after the election during the lame duck session even though he would’ve been justified in passing it because 67 percent of voters approved of the language.
Today, Democratic gubernatorial candidate, Daniel Biss unveiled his HOME plan for property tax fairness and relief, a comprehensive approach to fix Illinois’ broken property tax valuation, assessment, and appeals system.
“Our property tax system is completely broken, but perfectly reflects the fundamental problem with Illinois right now – the middle class pays more than they should, and we still can’t meet our obligations or fund our priorities because the very rich game the system to pay less than their fair share,” said Biss.
The Biss HOME plan will make property tax valuation in Illinois fairer, end the property tax appeals racket that lines the pockets of attorneys and politicians at the expense of ordinary homeowners, and ultimately provide property tax relief for working and middle-class families.
“For too long the millionaires and machine politicians have been able to manipulate the corrupt property tax system to benefit themselves, leaving ordinary homeowners to pay more. It’s time for a property tax system that’s fair to the rest of us,” Biss added as he laid out his plan before the Melrose Park home of Barbara Garner. Mrs. Garner was recently featured in the Tribune’s bombshell report exposing how the valuation system set up by the Cook County Assessor’s office “harmed the poor and helped the rich.”
“You’ll hear a lot in this campaign decrying our broken property tax system. What you won’t hear are admissions from millionaires and billionaires that they used their wealth and connections to secure six-figure pay days from a system they now decry as candidates. What you also won’t hear are solutions. We need to be honest about our problems. But, the people of Illinois know what’s wrong with Illinois. What they also deserve are honest solutions.”
Biss also announced that he will introduce the Honesty, Openness, Modernization, and Ethics (HOME) in Assessments Act in the state senate along with Sen. Jacqueline Collins later this week.
The Biss HOME Property Tax Fairness and Relief Plan includes:
Honesty and Openness
End the secret and confusing valuation process by requiring county assessors to make it clear to homeowners how they determine our tax bills and prevent assessors from keeping their actions secret.
• Require assessors to publicly disclose the models they use to estimate and validate the value of homes and business.
• Require state oversight and reporting on local officials, conduct audits, provide data, and remove authority from officials who repeatedly fail to do their jobs.
Modernization
• Require assessors to modernize their broken valuation systems, which unfairly make low and middle-income homeowners pay more and rich ones pay less, and fairly value our homes.
• Require detailed statistical analysis by the Department of Revenue to reveal whether properties are being assessed properly, uniformly, and equitably. With modern and fair valuation methods, wealthier residents will pay their fair share, and our over-reliance on property tax appeals to provide relief for low and middle-income homeowners will be reduced.
Ethics
End the racket that lines the pockets of machine politicians and property tax lawyers at the expense of ordinary homeowners.
• Subject property tax lawyers to pay-for-play rules that curb conflicts of interest. Limit contributions from property tax lawyers to assessors, candidates for assessor, and others involved in processing appeals to $750 a year. Any contributions above that cap would result in prohibiting the violating property tax attorney from practicing law.
Nothing too over the top radical there, which is one reason why Chris Kennedy is currently dominating this particular lane with his own “radical” proposals.
* Biss also went after JB Pritzker this week on a different issue, closing the carried interest loophole. Click here for the video. A related story is here.
*** UPDATE 1 *** From the Chris Kennedy campaign…
We’re pleased to see that Chris Kennedy’s push to reform our broken property tax system is gaining interest. All the other Democratic primary candidates should take this issue further by letting voters know if they would embrace the reforms that Chris Kennedy laid out weeks back. We need a leader who is going to restore voters’ faith in our government and our property tax system.
*** UPDATE 2 *** From Abby Witt on Sen. Daniel Biss’ campaign…
“Decrying how broken our property tax system is for ordinary people after landing a six-figure payday for yourself with the help of Mike Madigan isn’t radical, it’s ridiculous. Daniel is doing what other politicians aren’t doing: stating the problem, clearly defining a real, immediate solution that addresses the actual problem, and advocating for the passage of bills to help everyday Illinoisans. If the last two and a half years have taught us anything, it’s that the ultra-wealthy think government service is about hearing themselves talk rather than rolling up their sleeves to get the job done.”
*** UPDATE 3 *** From Jacob Kaplan of the Joe Berrios campaign committee…
“Assessor Berrios strictly follows all campaign finance laws; indeed, all laws. Were a law or laws to change, he would follow any new regulations.”
*** UPDATE 4 *** From the assessor’s office…
The Cook County Assessor’s Office stands by its previous statements that it assesses property fairly and accurately.
We remind Candidate Biss of this basic fact: an Assessor does not set property tax rates or levies. School districts, municipalities and other taxing bodies do that. The Assessor does not decide the dollar amount of property tax bills.
Property assessment is completely separate from local revenue determinations made to meet local budgets. In fact, budgets for schools, police, fire protection and other community needs are forecast a year in advance and are set long before properties are even assessed.
There is equity in assessment in Cook County because Assessor Joseph Berrios and his staff long ago adapted -and always adhere to- the high Uniform Standards of Professional Appraisal Practice (USPAP). These USPAP standards are practiced across the nation. We are no different.
Part of Candidate Biss’ proposal would usurp the rightful authority of every county assessor in the state. This makes no sense and reflects his lack of knowledge of how property assessment works.
Because this office does not engage in political discussions, we referred your inquiry’s facet about political contributions to the Cook County Democratic Party.
This report utilizes the industry standard IMPLAN economic analysis software to identify the potential impact of the Illinois Department of Transportation’s (IDOT) recent announcement that it will be unable to continue paying its contractors and will cease all construction work throughout the state on June 30, 2017. While this is expected to impact all IDOT projects, including transit and rail, this report focuses on the $2.2 billion in planned road and bridge improvements in fiscal year (FY) 2018. Assuming a shutdown lasting the entire year, we forecast the following impacts:
* A Shrinking Economy: The loss of $2.2 billion in state infrastructure investment would reduce overall economic activity in the state by $1.77 billion in FY 2018.
* Job Losses: A protracted IDOT shutdown will cause a loss of 23,000 jobs. While middle class construction employment will be most affected, the losses will extend beyond construction related industries and will touch all economic sectors.
* Added Strain on Public Budgets: The loss of jobs and economic activity would reduce state and local tax revenues by $115 million, while increasing demand for taxpayer-funded unemployment insurance by as much as $155 million.
* More Congestion and Transportation Safety Problems: With infrastructure projects designed to alleviate congestion, address safety issues, and complete important maintenance needs, the IDOT shutdown would likely lead to increased travel times and could subject the public to unsafe travel conditions.
Because IDOT projects are fully funded by federal aid, fuel taxes, vehicle fees, and local sources— funding that is protected by a state constitutional amendment passed by Illinois voters in 2016— there is no reason for IDOT funding to be held hostage as part of the ongoing state budget stalemate. An IDOT shutdown is easily prevented through appropriation of already available funds, as was done for FY 2017.
True, but the Rauner administration staunchly opposed legislation during the spring session that would’ve appropriated existing funds sitting idle in state bank accounts for higher education and social services. That money is still accumulating and collecting dust, by the way. But the GA shouldn’t appropriate that idle cash, the governor and Republicans argued, because it would take “pressure” off of legislators to end the impasse.
Unlike higher ed and social services, however, IDOT is threatening a total shutdown. Those transportation folks know how to play the bureaucratic game.
Even the threat of a statewide transportation-construction shutdown on July 1 — including Illinois’ $1.9 billion high-speed rail program — has begun to cost jobs and put projects behind schedule, according to the industry.
The Illinois Department of Transportation advised contractors last week to prepare for the shutdown if lawmakers are unable to approve a budget by the end of the state fiscal year on June 30. More than a dozen road projects totaling $284 million in the Springfield area alone would be affected, including four partly funded by the city of Springfield. Work on the Third Street rail corridor in Springfield also is part of the high-speed rail project between St. Louis and Chicago.
[I need more coffee, apparently. This was an IEPI publication, not an IDOT publication. Changes have been made.]
*** UPDATE *** Press release…
Democratic Chairmen’s Association Statement Regarding Potential Road Construction Shutdown
Rauner’s inability to compromise will create a public safety crisis and will
affect 23,000 Middle Class jobs
Springfield, IL – Last week the Illinois Department of Transportation issued a dire statement that the agency plans to suspend all construction projects on June 30th if a State Budget is not enacted. With the release of the Illinois Economic Policy Institute’s study on this suspension, Illinois Democratic County Chairmen’s Association President Doug House issued the following statement:
“Every citizen in our state will be affected by the suspension of these projects and it sickens me that Governor Rauner doesn’t care about the job losses and public safety challenges this stalemate guarantees. Whether it is improvements to decade’s old bridges, state highways that are crumbling or the ongoing improvements to our rail corridors, repairing our infrastructure is crucial keeping people safe and keeping our economy growing.”
House also added:
“Social service agencies and higher education institutions have already been burned by Bruce Rauner’s refusal to compromise. We cannot let public safety and our transportation efforts be the next victim.”
“We need a governor who will listen to our pain, to our cries and not just listen, but roll up their sleeves and do something about it. That’s why I believe in Chris Kennedy,” Rush said.
“When he speaks to the problem of violence . . . he don’t just speak from talking points, he speaks from his own family experience,” Rush said.
A reporter at Monday’s event reminded Kennedy that he’s downplayed the importance of endorsements in the past.
“What you see today is one of the great leaders of the civil rights movement speaking to the people he represents, saying that we need to come together and support a candidate who will look after all of us,” Kennedy said. “That’s different than the insiders, the establishment, the party leadership cramming down a choice on everybody else.”
“I know Chris Kennedy,” Rush said. “I know the DNA that makes up a Kennedy. As he indicated, I served with four Kennedys in the Congress, and one thing you can say about all of them — they have the same character and they have the same consciousness. They believe and they work for those who are left out, those who are denied access to the American dream.”
Rush said when Kennedy speaks about gun violence and “the problem of the pain of families that violence has visited upon (them), he doesn’t just speak from talking points. He speaks from his own family experience.” Chris Kennedy is the son of the late U.S. Sen. Robert Kennedy and nephew of President John F. Kennedy, both of whom were slain by assassins. […]
“I will not be a party to, nor support, the shenanigans of the Democratic establishment here in Illinois. They want to package with ribbons (and) deliver a gift of the nomination to their choice,” Rush said. “My message to them is that you can’t gift-wrap the gubernatorial nomination because it’s not yours to give. It belongs to the citizens of the … state of Illinois.”
Rush has had a history of being an outspoken critic of power. He defeated a young Barack Obama in 2000 to win re-election to Congress, endorsed an Obama rival for U.S. Senate in Illinois in 2004 and has never been close to the now former president.
And, Rush represents a big district. But, which endorsement carries more weight for the governor’s race?
“I would say Gutierrez has more clout because he’s got a higher profile because he has a very large base among the immigrant community. And he’s very popular,” ABC7 political analyst Laura Washington said.
Rush is popular too among his constituency, although, his base is not as big. To win the Democratic primary, a candidate will need a significant portion of the African American and Latino vote.
* Drudge hyped a silly story the other day about the possibility of Illinois filing for bankruptcy, even though there is no way a state can file for bankruptcy and nobody in our congressional delegation (or anyone else’s, as far as I can tell) is pushing to change the law or the US Constitution to allow it. But, Drudge be Drudge, so some reporters followed up. Here’s WICS…
“You would have to have Congress pass and the president sign an amendment to the federal bankruptcy law allowing states to declare bankruptcy,” said Kent Redfield, a political science professor emeritus at the University of Springfield.
U.S. Rep. Rodney Davis, R-Illinois, said instead of this, he’d like to see lawmakers work together toward a compromise.
“Come up with a solution because that’s what I think we are going to try and do for our problems in Washington D.C.,” Davis said. “That’s a message I’m sending in Washington, and a message I continue to send to our leaders in Springfield and I hope they can come up with that compromise.”
Bankruptcy could also potentially be unconstitutional.
“There is a provision in the U.S. Constitution, Article 1, Section 10, that prohibits states from impairing contracts,” Redfield said. “And then you’d probably get into a long court battle about exactly does that specifically apply to things like pensions, like bonds.”
“Nobody here in Illinois is considering bankruptcy—first of all, it’s not allowed,” Steve Brown, press secretary for Illinois House Speaker Michael Madigan. “Second of all, it would damage the reputation of the state and it’s just not necessary.”
U.S. Sens. Dick Durbin and Tammy Duckworth, both Democrats from Illinois, declined to respond to Fox News’ request for comment on whether they would consider getting involved in introducing a measure to push for legality of state bankruptcy.
“Illinois is the fiscal model of what not to do,” Rep. Peter Roskam, R-Ill., told Fox News, while not commenting on the bankruptcy question. “This avoidance in behavior toward dealing with our challenges is what leads to the devastating impacts we are seeing today.”
The Chicago Public Schools will pay 6.39 percent — an extraordinary interest rate by short-term lending standards — to borrow $275 million it needs to make a mandatory payment for retiree pensions before a June 30 deadline.
That’s more than four times the interest rate a typical government would pay on the same borrowing deal, financial experts say.
It’s yet another sign of the dire financial condition of the nation’s third-largest public school system, which for months has had a “junk” credit rating from Wall Street financial institutions.
CPS officials secured the $275 million on Monday from J.P. Morgan. It’s the final chunk of cash needed to make the $721 million payment for teacher pensions that’s due at the end of the month, senior vice president of finance Ron DeNard said in a statement. […]
After fielding three competing bids, CPS chose J.P. Morgan to provide the so-called “grant anticipation notes,” which will be backed by state block grant money CPS is entitled to — but has yet to receive — in the ongoing budget stalemate. The interest rate will fluctuate monthly.
“We are saddened that the Chicago Public School district is trading its future financial health for another short term easy fix,” Rauner’s spokeswoman wrote in a statement issued Monday night. “It has no one to blame high interest rates on other than the decades of mismanagement that created this crisis.”
But CPS lacks enough cash to make the full $716 million pension payment because state grants are delayed. CPS says it’s owed $467 million by the state.
That’s what the loan is all about — covering delayed state payments, Brown said.
The loan, called a Grant Anticipation Loan, is not particularly risky because it is short term and is backed by a dedicated revenue source — the state money. The expectation is that the state will eventually make good on what it owes Chicago.
So, CPS has to borrow money because the state is a deadbeat and can’t pay the almost half a billion dollars it owes. And the interest rate is high not only because of CPS’ credit problems, but because the state is teetering on junk bond status and can’t be trusted to pay its obligations.
Yet, the Rauner administration blames CPS.
* From Rep. Christian Mitchell (D-Chicago)…
Governor Rauner’s cruelty is, once again, costing poor kids in Chicago tens of millions of dollars that should be going into the classroom.
Last year, Bruce Rauner – a former finance “guru” - floated bankruptcy for CPS right before the district sought a bond issue, jeopardizing the ability of the district to continue operations. Rauner knew the consequences, and did it purposefully to hurt poor kids. Now Rauner plans to veto a school funding plan that helps every poor child in the state simply because it doesn’t do enough to hurt Chicago, whose poor children are overwhelmingly black and brown. And let’s not forget that Rauner’s budget ended funding for violence prevention, despite the tears he claims to shed for gunshot victims.
Whenever the question is “This will help poor children, should we…?” Bruce Rauner’s answer is: “Let them eat cake.” His unmitigated cruelty toward people of color is why his cabinet looks like a Trump family photo, and is part of why he’s a failed governor.
A deal in a federal case over how quickly the state has to pay down its about $2 billion in Medicaid bills was expected Tuesday.
But Medicaid patients who sued Illinois and state officials are still talking. Now, they’re set to appear before federal Judge Joan Lefkow on June 28.
Whatever the two sides decide is likely to force Illinois Comptroller Susana Mendoza to cut back on payments for other expenses, which could put her crosswise with state law and state courts and further delay other state payments at a time when Illinois is already sitting on $15.1 billion in unpaid bills.
Governor Delivers Live Address
On eve of special session, speech to highlight need for unity on compromise balanced budget plan
SPRINGFIELD – Governor Rauner will deliver a live address to the people of Illinois tomorrow night from the Old State Capitol in Springfield. The address will focus on unity and passing a balanced budget to put Illinois on a path to a brighter future.
“Illinois deserves real change, and the time to act has never been more urgent,” Rauner spokeswoman Eleni Demertzis said. “As we approach one of the most important legislative sessions in Illinois history, the Governor wants to reiterate his desire to work with all members of the General Assembly to improve the quality of life for the people of Illinois. Governor Rauner supports the compromise budget proposal lawmakers introduced last week, which delivers a truly balanced budget, spending caps, real property tax relief, term limits and other job-creating changes to the system.”
Last week, Governor Rauner announced he was calling lawmakers back to Springfield for a 10-day special session from Wednesday, June 21 to Friday, June 30, which is the fiscal year deadline. In calling the special session, the Governor encouraged the General Assembly to consider legislation that will reach a balanced budget and implement other structural changes. The Governor will cancel any remaining special session days if the General Assembly enacts the compromise balanced budget plan prior to June 30th.
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*** UPDATE 1 *** Pritzker campaign…
JB Pritzker Statement on Bruce Rauner’s Sham “Unity” Address
Chicago, IL — In response to Bruce Rauner’s sham “unity” address scheduled for tomorrow evening, JB Pritzker released the following statement:
“720 days into a manufactured budget crisis of his own creating, Bruce Rauner either doesn’t have the slightest clue what unity is or just doesn’t care,” said JB Pritzker. “Unity is not introducing a ‘compromise’ budget produced in secret by Republicans and entirely lacking in any actual compromise. Unity is not Bruce Rauner planning to veto school funding reform legislation that he 90% agrees with. Unity and leadership are more than words. Bruce Rauner can’t just say the word ‘unity’ when every single action he has taken as governor has only served his own self-interest and devastated Illinois families along the way. Leadership is having the courage and ability to bring people together, compromise and negotiate, and get results. Rauner has proven time and again that he is not a leader and tomorrow’s speech will do nothing to change that.”
Indeed, even before word of the speech officially was released, Madigan spokesman Steve Brown was deriding it in so many words as a political stunt.
“Is he counter-programming the attack ads, mail, door-to-door (flyers), fake news radio?” Brown asked in an email, referring to a new round of attacks on Democrats that Rauner’s campaign committee has launched in recent days. “Apparently taxpayers foot (the) bill for this part of the campaign.” […]
Rauner’s speech tonight is effective theater in one sense, though: It tightens the screws a bit more on Madigan to finally put his own spending plan on the table.
The speaker has not indicated when, or if, that will occur.
*** UPDATE 3 *** ILGOP…
Pritzker and Madigan Sync Up Talking Points
Attack Governor Rauner for Detailing Budget Plan
In a shocking display of partisanship amid crisis, Billionaire J.B. Pritzker and his political patron Mike Madigan synced up their talking points this week – attacking Governor Rauner for detailing a compromise budget plan.
Last week, Governor Rauner and Republicans in both the House and Senate laid out a compromise plan to balance the budget, grow jobs, and reform state government. The plan incorporated ideas from Democrats as well as concessions Republicans had already discussed with the other side.
But Madigan’s office wasted no time criticizing compromise. As the News-Gazette Editorial Board notes, “the words were hardly out of the governor’s mouth before” Madigan started “casting aspersions” on a compromise budget and reform deal.
And just yesterday, J.B. Pritzker issued a press release criticizing a speech he had yet to even listen to, attacking Governor Rauner.
Here’s the funny thing about J.B. Pritker’s attempt to criticize a detailed Republican plan to end the budget impasse, balance the budget, grow jobs, and reform state government – Pritzker has yet to propose any meaningful ideas of his own except a massive tax increase.
Just take a look at Pritzker’s “vision” website full of vague spending increases.
What’s missing? Term limits, a property tax freeze, pension reform, spending caps, fair maps, or a plan to balance the budget.
That’s because Pritzker is already on record opposing reforms, just like Mike Madigan.
Until J.B. Pritzker proposes a plan to fix Illinois, and until Mike Madigan’s House passes a balanced budget, neither politician has any leg to stand on.
“In a shocking display of partisanship amid crisis”? Hilarious.
*** UPDATE 4 *** JB Pritzker’s Communications Director Galia Slayen…
“In a shocking display of partisanship amid the crisis Bruce Rauner created, the Illinois GOP is once again spewing their tired talking points. While thousands of people suffer, Bruce Rauner and the GOP refuse to let go of their special interest agenda that has nothing to do with passing a budget. 720 days into this crisis Bruce Rauner finally decides he wants to call for unity, but it’s clear he has never stopped campaigning. The Illinois GOP should focus on helping their failed governor clean up his mess, but they’re too busy attacking JB because they know he’s the best candidate to take on their failed leader.”
*** UPDATE 5 *** ILGOP…
“Billionaire Pritzker wants massive tax hikes but thinks term limits, fair maps, a property tax freeze, pension reform, spending caps, and job growth is a special interest agenda? Governor Rauner’s interest is the people of Illinois. J.B. Pritzker’s interest is Mike Madigan.”
*** UPDATE 6 *** JB Pritzker’s Communications Director Galia Slayen…
“Governor Rauner’s interest is the people of Illinois? How about the Illinois children, families, seniors, people with disabilities, domestic and sexual violence survivors and public school teachers who are little more than pawns in his crusade to strip working families of the tools they need to build better lives? This is a sham unity speech from a sham governor who has failed our state.”
“I find it tragically comedic that a governor who has done more to divide this state than probably any other governor in history is going to give a unity address,” said Rep. Christian Mitchell, D-Chicago.
*** UPDATE 8 *** Mayor Emanuel…
“Tonight we’ll hear yet another speech about a state budget from the Governor, the fourth like it he’s given. Since he’s taken office all he’s done is give speeches and run TV ads — and he’s passed zero budgets. Under Governor Rauner today Illinois is dead last in education funding, Illinois has the worst credit rating of any state in the history of the country, and for three years running Illinois is the only state without a budget. Talk is cheap. Actions matter.”
