*** UPDATED x1 *** A recipe for disaster?
Thursday, Jan 30, 2014 - Posted by Rich Miller
* From Aviva Bowen at the IFT…
As the Chicago area forecast shows several inches of snow and more bitter cold headed our way this weekend, I wanted to put this info back at the top of your inbox. These workers deal with dangerous conditions to keep us safe and will be putting in even more hours in the days ahead while unwisely understaffed.
* From a recent press release…
The recent winter storms that shut down roads in Illinois exposed a serious potential public safety and financial problem in Cook County. The Illinois Department of Transportation (IDOT) doesn’t have enough mechanics to keep snow plows running, so they had to call in 30 mechanics from the National Guard just to keep the fleet on the road recently.
“We can’t call in the military every time we have a snow storm,” said Tom Kosowski, President of the Illinois Federation of Public Employees (IFPE), IFT Local 4408. “We don’t have enough mechanics and shopkeepers to do the job. If we can’t keep plows running to clear the roads, they won’t be safe for anyone.”
Public employees have been on the front lines statewide, often working 21-hour days to keep up with recent storms while severely short-handed. Instead of hiring more IDOT workers, the state calls in military support, spends additional money to hire private companies, uses employees who aren’t trained mechanics, and forces their own mechanics to work large amounts of overtime.
These unqualified workers without the appropriate experience on state vehicles create a potential danger to motorists and more cost to taxpayers.
A $3-million study conducted for the state showed that maintaining the state’s vehicles in house is more efficient and saves taxpayer dollars. Maximus Fleet Management Consulting recommended that IDOT hire more mechanics to work on the fleet and more storekeepers to handle inventory.
“Hiring more IDOT mechanics will help keep people safe and save the state more money,” said Matt Emigholz, Vice President of Local 4408. “We don’t understand why IDOT won’t follow the advice they paid to receive.”
At the Rodenburg facility in Schaumburg alone, 15 of 22 plows are not working at this time. If the garages were properly staffed, the right amount of inventory would be stocked at the most efficient cost and mechanics could perform preventative maintenance to keep the fleet running longer.
That study referenced above is here on page 46.
*** UPDATE *** From IDOT…
Hello Rich,
In response your post today:
IDOT crews work diligently each and every day to ensure the safety of the motoring public.
During the height of the recent polar vortex, IDOT had 1,755 trucks assigned to snow duty across the state, and nearly 3,700 full- and part-time employees available to help ensure roads were clear and passable.
With the unprecedented statewide winter storm conditions of Jan. 4-8 and subsequent regional snowfall and bitter temperatures, IDOT crews were out working in some of the most difficult conditions imaginable. These historic conditions did strain our vehicles, but at no point did we have an insufficient number to keep the roads cleared and salted. In District 1 (Cook County area), there were 440 trucks to cover 370 routes.
Safety is our number one priority and IDOT has consistently kept the necessary number of trucks on the road. That will continue through the winter.
No mechanics were approved to work 21 hours and the claim that IDOT lacks an adequate number of mechanics is absolutely false. And any outside mechanics we use are retained year-round and are highly-experienced and highly-qualified.
These weather conditions have not been experienced in over 20 years so utilizing National Guard personnel is not a common occurrence.
Thank you,
Jae Miller
Chief Communication Officer - IDOT
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A somewhat odd proposal
Thursday, Jan 30, 2014 - Posted by Rich Miller
* Most everyone was caught by surprise when Gov. Pat Quinn said this during yesterday’s State of the State address…
43 percent of all workers in Illinois – more than 2.5 million people – have no right to a single earned sick day. Among our low-wage workers – the problem is even worse: 80 percent of low-wage workers don’t receive any earned sick days.
We need to do something about this. We should provide at least two earned sick days for every worker in Illinois.
We need to help our workers — especially our single parents — avoid that awful choice: dragging themselves from a sick bed to work, or losing a day’s pay or even their job.
More than 70 years ago, President Franklin Delano Roosevelt said, “The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”
This, too, is about dignity and decency. Let’s get this job done for our working families.
But who is the “we” in the “we should provide at least two earned sick days” line? Is “we” the government? Is “we” the business owners? Is “we” some sort of combination?
What do you make of this?
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Question of the day
Thursday, Jan 30, 2014 - Posted by Rich Miller
* “How are you gonna approach this thug who runs this state?” John Kass asked Bruce Rauner on his WLS radio show today about House Speaker Michael Madigan.
“One way to deal with Madigan I would think,” Kass continued, “is you tell your friends in the Republican Party, particularly the big guys who have a lot of money downtown and who own downtown real estate, ‘Hey, do you really want to hire Mike Madigan as your tax attorney?’ which basically subsidizes the Democratic machine. Isn’t it time the Republican money guys realize what they are doing?”
“You’re exactly right,” Rauner replied.
“I know where those Democrats make their money,” Rauner said, “I know what their alliances and their underlying pins, where Republicans businesses are underneath there helping out. I can go after that. I can leverage some power and drive a result.”
* Yesterday, Kass didn’t seem all that thrilled about Sen. Matt Murphy’s endorsement of former House Republican Leader Tom Cross for state treasurer.
“The Republican Party has basically been aligned with the Democrats,” Kass said. “They didn’t challenge Madigan very much. Tom Cross, the Speaker, the House Majority Leader, really didn’t bring the fight to Madigan… Tom Cross, I like him, nice fellow, really didn’t bring the fight to Madigan at all… What I wanted from the Republicans is a real fight, a real fight about what’s going on and I just didn’t see it from the establishment side.”
* The Question: Do you think the next governor, whoever he is, and the Republican Party, whatever happens in the gubernatorial election, ought to launch an all-out attack on Speaker Madigan? Take the poll and then explain your answer in comments, please.
polls
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Not a monolithic partisan issue
Thursday, Jan 30, 2014 - Posted by Rich Miller
* As I told subscribers earlier this week, a large number of Downstate Democrats, particularly in the House, are against raising the minimum wage to $10 an hour. Lee Newspapers has more…
“I don’t see that there’s a lot of support in my area for that currently,” [ Rep. John Bradley, D-Marion] said after the speech. […]
“I live on a border community. Workers on my side of the river are already making substantially more than those in Iowa,” said state Sen. Mike Jacobs, D-East Moline. “I would much rather see this be dealt with on a national level so that there aren’t differences between two states.”
* And while the vast majority of Republicans are against the idea, Comptroller Judy Baar Topinka favors it…
“I think it’s the year for it because it hasn’t been raised for a while. People realize a family can’t live on that,” Topinka said. “You’re going to have better employees if you do this.”
Thoughts?
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* A guy who has donated hundreds of thousands of dollars to Democratic candidates compares his Republican primary opponents to the Democratic governor. Wonder if anybody else will pick up on this irony. Illinois Review…
The Rauner campaign took on ILGOP gubernatorial opponents in his response to Governor Pat Quinn’s State of the State address Wednesday, dubbing them “Pat Quinn-Lite.”
“As Pat Quinn spends the afternoon attempting to deflect from his abysmal record on jobs, taxes and pensions at today’s State of the State address, Illinoisans may begin to recognize that his record looks a lot like those of the career politicians running to replace him,” Rauner said.
“Based on their record of raising taxes, increasing spending and enabling our pension problems, Bill Brady, Kirk Dillard, and Dan Rutherford might as well be nicknamed Pat Quinn-Lite,” said Mike Schrimpf, spokesman for Bruce Rauner’s campaign. “The fact is all three candidates have spent more than twenty years in Springfield pushing a jobs-killing agenda with more taxes and increased spending.”
* Meanwhile, the Tribune editorial board wants the sniping to stop…
For several months now, the four Republican candidates who want Gov. Pat Quinn’s job have campaigned across Illinois. Here’s the message that, as a group, they have projected and voters have absorbed: With the primary election less than seven weeks off, we absolutely delight in trashing one another. If we didn’t have each other to talk about, we wouldn’t have much of anything to talk about. Oh, and Illinois is still in bad shape.
Quinn, no doubt bemused by the Republicans’ intramural spitting match, isn’t waiting for them to stop: On Wednesday he wielded the considerable power of his incumbency, employing the governor’s annual State of the State address to make his case for re-election. […]
On Monday the Republicans are scheduled to meet as a foursome with the Tribune Editorial Board. That will be an important step in our endorsement process as the primary election approaches. Maybe the Republicans will explain exactly how they will make Illinois competitive in the hunt for jobs. Or maybe they’ll stick to their group obsession and keep criticizing one another.
We’ll see. This much we know now:
Pat Quinn is a formidable candidate for re-election. And unless the Republicans drive home to voters how Illinois can rebuild the competitiveness that long ago made this state great, he’ll be inaugurated next January for four more years as governor.
The back and forth is just natural politics. But they do need to start fleshing out their platitudes with some real ideas.
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A very good question
Thursday, Jan 30, 2014 - Posted by Rich Miller
* SJ-R…
“What are [Gov. Pat Quinn’s] plans because he promised the 67 percent income tax hike would be temporary?” Dillard said. “What are his plans to roll that back? I’m more concerned about what he didn’t say than the perfume he put on the pig to cover up the fact we are rated 50th in economic outlook.”
“I wanted to hear his commitment to the tax cut,” said Sen. Bill Brady of Bloomington, another of the GOP contenders. “He failed to recommit to that.” […]
The fourth Republican seeking to replace Quinn, state Treasurer Dan Rutherford, said he understood why Quinn wouldn’t discuss the income tax issue in a State of the State speech.
“A tax increase is not popular to talk about. I understand why he wouldn’t do it,” Rutherford said. “Today was a speech for him to give the positives.”
* WGEM…
Bruce Rauner, was unable to speak directly [to the consequences of the sunsetting tax hike], but he didn’t hold back in his criticism of the governor’s speech. Rauner says Illinois is in an “economic death spiral” and Quinn “is trying to cover it up and put a rosy picture on it.”
* Quinn’s budget speech is next month, so we’ll hear more about the tax hike problem then. But they’re right that the governor has been almost completely silent about this issue.
By the governor’s own estimation, the expiration of the tax hike will most definitely create a huge hole in the state’s budget and he needs to be far more upfront about it.
And, of course, without a doubt Speaker Madigan ought to explain soon how his proposed 50 percent corporate income tax cut will be paid for.
* That being said, maybe I’ve just missed it, but when have any of the GOP candidates ever laid out any sort of real plan for dealing with the massive budget cuts that will be required by the tax hike sunset? They’re demanding something from Quinn that they won’t discuss themselves.
Also, “unable to speak directly” to the issue of the tax hike is a charitable way of saying that Rauner dodged the question.
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* Sun-Times…
Last Friday, the mayor held a 2.5-hour meeting with the Illinois House Speaker Michael Madigan and Senate President John Cullerton, both Chicago Democrats, to outline the magnitude of the problem and propose solutions.
Emanuel wants the General Assembly to impose annual property tax increases on Chicago homeowners and businesses, but put off the balloon payment to shore up police and fire pensions until 2023 to make the bitter pill easier to swallow.
He wants a General Assembly that has already solved the Chicago Park District’s pension problems to use that plan as a road map for other city unions.
And he wants lawmakers to impose the same pension reforms on Chicago teachers that they did on teachers in the suburbs and Downstate.
Emanuel wants the General Assembly to hike property taxes so he can avoid direct responsibility? That’s rich.
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Tacking leftward
Thursday, Jan 30, 2014 - Posted by Rich Miller
* Yesterday’s State of the State address was aimed right at Gov. Pat Quinn’s base, as WUIS accurately points out…
Quinn laid out a list of proposals that seem finely honed to appeal to Democratic voters: increasing the minimum wage, doubling a tax credit for the working poor, and requiring at least two days of sick time for all employees.
“We need to help our workers, especially our single parents, avoid that awful choice: dragging themselves from a sick bed to work, or losing a day’s pay — or maybe even their job,” Quinn says.
Quinn also called for a big expansion of the grants that help low-income people go to college. In recent years, Illinois has run out of money and had to stop giving out so-called MAP grants midway through the school year.
Then, there’s the “Birth to Five Initiative,” aimed at helping low-income children from the womb through kindergarten.
* Before he can gear up to defend himself against the eventual GOP nominee, Quinn needs to get his own base fired up. Remember these polls of mine from last year?…
Capitol Fax/We Ask America poll of 1,394 likely Democratic primary voters on July 19 found that Quinn was leading Daley 38-33. In that poll, the governor was getting less than half — 47 percent — of the black vote, while Daley was getting 26 percent, which isn’t bad when you figure that another quarter of the black vote was still up for grabs. […]
[Another poll] I commissioned on Aug. 12, which found that 48 percent of 1,538 likely Democratic primary voters were dissatisfied with their choice between Quinn and Daley and 9 percent were unsure. So a clear 57 percent majority were either unhappy or ambivalent about the two announced candidates.
Among black Democrats, just 31 percent were satisfied and a huge 57 percent were dissatisfied with their two choices.
It’s pretty obvious that lots of Democrats want somebody else to run, and black Democrats are particularly eager to see another candidate get into the race.
And…
Quinn is not overwhelmingly popular with black voters. Just 47 percent back Quinn against Daley, according to the July poll, and Quinn’s job approval rating in a June poll among black Democrats was a mere 28 percent, while 40 percent disapproved.
I seriously doubt he’s moved the needle much since then.
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* From the Illinois Observer…
Illinois corporations will seek a 50 percent reduction in the state corporate income tax under legislation introduced today by House Speaker Michael J. Madigan (D-Chicago).
“For many years, we have listened to employers about the best manner to improve the business climate,” said Madigan.
“We have tackled worker compensation reform, reduced the estate tax and created an independent tax tribunal,” the speaker stated. “Cutting the corporate income tax rate is another step I am asking the legislature to consider.”
Under the plan, H.B. 4479, the corporate state income tax will be reduced from 7% to 3.5% on business profits. The move will see Illinois drop from 5th to 35th on the national income tax ranking of the states, according to the Federation of Tax Administrators. The Personal Property Replacement Tax paid by business remains unchanged at 2.5% and results in a total rate of 6%.
“I am introducing this legislation so the Revenue & Finance and State Government Administration Committees’ joint hearings on tax policies can consider the impact this will have on business location and expansion plans,” Madigan noted.
The measure, which has a January 1, 2014 effective date, will provide an estimated $500 to $700 million business savings for FY 2014. The FY 2015 savings could exceed $1.5 billion.
“I am hopeful this legislation will encourage CEOs to grow their work forces with good paying jobs, “Madigan said.
In December, 2013 the Speaker called on the Illinois House committees to continue hearings on tax policy questions in the wake of a new wave of businesses calling for tax breaks as a condition for relocating to or remaining in Illinois.
At the time, Madigan argued “we should take a more long term approach to helping all job-creating businesses in Illinois thrive and succeed. This must include a thorough review of how we currently provide incentives to big corporations.
During the 2013 North Carolina corporate rate cut debate, Governor Pat McCrory argued the tax was “economically destructive” and a lower rate was “critical to putting residents back to work.” North Carolina cuts rates from 6.9 % to 6.0% this year and 5% in 2015.
“State tax policy can have a critical impact on multinational corporations especially when Congressional gridlock has stalled any meaningful action in Washington,” Madigan said.
The Speaker’s cuts will make Illinois rates less than or equal to the surrounding states. According to the Federation of Tax Administrators the surrounding state rates are: Kentucky, 6%; Indiana 7.5%; Iowa, 12.0%; Missouri, 6.25% and Wisconsin 7.90%.
Discuss.
*** UPDATE *** An interesting retort from the NFIB…
“We appreciate Speaker Madigan’s attempt to reduce the income tax burden in Illinois,” said Kim Clarke Maisch, the state director of the National Federation of Independent Business.
“Unfortunately about 75% of small businesses, the true job creators, pay the personal income tax and not the corporate income tax. So while this is good for one-fourth of the businesses in Illinois, it does nothing to reduce the tax burden of the vast majority of small business owners in Illinois.”
*** UPDATE 2 *** We have a couple of state legislative responses. First up, GOP state Rep. Dave McSweeney…
I strongly support Speaker Madigan’s legislation that would cut the all-in corporate income tax rate from 9% to 6%. I also support cutting individual tax rates so that small businesses and families can benefit. Cutting tax rates will help encourage much needed economic growth and job creation.
And Democratic state Rep. Jack Franks…
“Following yesterday’s State of the State speech, the need for urgent action to improve the economic outlook in our state could not be more apparent. At a time when Illinois’ economy has been been pushed to the brink of disaster and taxpayers crave real, substantive reforms, the governor chose to give a pep talk with little in the way of policy proposals to help Illinoisans struggling to find jobs in a stagnant economy.
“Despite the rosy narrative laid out by Governor Quinn, Illinois’ credit rating is the worst in the United States and recent studies have ranked our state last in the nation in job creation. This would lead any serious observer to the conclusion that Illinois’ business climate is in desperate need of serious reform.
“House Bill 4479, introduced today, is exactly the type of targeted and specific action that will produce verifiable gains for hard-working families across Illinois. Reducing the tax burden on employers will free up capital for small-business owners to reinvest in their enterprises and hire more workers, while sending a signal to businesses across the country that Illinois is making serious efforts to restore our competitiveness and is once again open for business.”
*** UPDATE 3 *** Sun-Times…
The governor appears to have been blindsided by Madigan’s proposal, as others were at the Capitol, and offered no clear indication whether the speaker’s plan is something he’s prepared to embrace this spring.
“Building and protecting the middle class is our priority. That’s why the governor is proposing a bold commitment to early childhood,” Quinn spokeswoman Brooke Anderson told the Chicago Sun-Times. “We’ll be working on our budget over the coming weeks, and we’ll take a look at the options.”
*** UPDATE 4 *** Sen. Bill Brady…
“I am glad to hear the Speaker talking about a tax cut rather than a tax increase. I believe his effort to create a better jobs climate in Illinois would be even better served if he included a cut in the personal income tax rate, which would benefit small businesses as well as Illinois families.”
*** UPDATE 5 *** Treasurer Dan Rutherford…
“I am glad to see that Illinois House Speaker Michael Madigan has proposed reducing the state’s corporate income tax. Putting Illinoisans back to work must be a top priority, as is improving our business climate. Reducing the corporate state income tax to 3.5 percent sends a strong message to employers that Illinois is serious about becoming a better home for businesses.”
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“Death spiral” drama queens
Thursday, Jan 30, 2014 - Posted by Rich Miller
* I’m running late this morning because I had to wait on a call to finish a story for subscribers. So you can chew on this one for a bit.
Sun-Times…
“This afternoon, we heard an election-year campaign speech from a governor who’s failing the people of Illinois. We’re one of the worst-run states in America,” said private equity investor Bruce Rauner, whose onslaught of early television advertising has positioned him as the frontrunner in the GOP gubernatorial field. “We’ve entered an economic death spiral, and Gov. Quinn is trying to cover it up and put a rosy picture on it.”
State Sen. Kirk Dillard, R-Hinsdale, served up a similar view.
“Pat Quinn is a populist, and he’s going to give you pablum about Illinois moving in the right direction. That’s just not true,” Dillard said. “When you talk to people in this state, they believe Illinois, like I do, is in a downward death spiral, and, obviously, public-opinion polling shows most of the state believes we’re going in the wrong direction.”
* WEEK TV…
“We’ve started our economic death spiral.” Dan Rutherford, GOP Candidate for Governor.
* The Federal Reserve Bank of Philadelphia produces a monthly report of each state’s projected six-month growth rate…
In addition to the coincident index, the models include other variables that lead the economy: state-level housing permits (1 to 4 units), state initial unemployment insurance claims, delivery times from the Institute for Supply Management (ISM) manufacturing survey, and the interest rate spread between the 10-year Treasury bond and the 3-month Treasury bill.
* Great Lakes states in the latest growth projections list…
* Michigan: 3.86 percent
* Indiana: 2.85 percent
* Illinois: 2.67 percent
* [Overall US: 1.52 percent]
* Wisconsin: 1.24 percent
* Minnesota: 0.73 percent
* Ohio: 0.72 percent
* Six-month growth projections for the nation’s five most populous states…
* Illinois: 2.67 percent
* Florida: 2.43 percent
* Texas: 2.32 percent
* New York: 2.18 percent
* [Overall US: 1.52 percent]
* California: 1.42 percent
* Do we have problems here in Illinois? Heck yes we do. Big ones. Huge ones, even. The pace of recovery has been just awful. Too many people are still horribly poor, too many people still don’t have jobs or any realistic hopes of getting decent jobs. And there is absolutely no doubt that inept mismanagement has been a significant factor here. Is progress being made? Maybe. The Philly Fed seems to think so. But even if they’re wrong, are we in a “death spiral”? C’mon.
[All emphasis added above.]
* Related…
* Moody’s revises Illinois’ worst in the nation job projections
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* The projection by Moody’s Analyticals that Illinois ranked 50 out of 50 in likely 2014 job growth has brought critics out of the woodwork. The firm, however, has revised its projection and moved Illinois up ten spots, to 40th. Still lousy, but at least it ain’t the worst in the freaking country. An e-mail from Moody’s to the governor’s office..
The state moved up 10 spots like we discussed, with the 2014 projection for Illinois job growth increasing from 1% to 1.2%. When it comes to the job market, slower healing in housing and government is primary reason Illinois has lagged behind during the economic recovery. In terms of the job market, industries such as construction, finance and state/local government have significantly underperformed whereas other industries have performed in line with the nation. Construction, finance and state/local government made some progress in 2013 but it was limited and in the near-term they will continue to be a drag on the state’s relative performance.
As for the better forecast and improved ranking in January, this reflects (1) stronger than anticipated economic data toward the end of last year, including leading indicators that suggest momentum is strong entering into 2014, (2) limited fall-out from the federal government shutdown and the agreement by lawmakers to reverse some of the spending cuts under sequestration over the next two years, (3) better performance of manufacturing and the fact that strengthening private sector demand should lessen the need to trim inventories by curtailing output. Since pension reform was assumed in the forecast its passage did not directly impact the forecast, though it does reduce downside risk in the outlook.
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Question of the day
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Illinois Radio Network has a piece about where the GOP candidates stand on Amtrak funding…
Rutherford, the state treasurer who is in a four-way Republican primary for governor, said it’s ridiculous for the government to prop up an outfit which makes customers wait in gravel parking lots for trains which are four hours late.
“Until they can get those trains to run on time, I don’t see having any good government money going to it without a great deal of accountability,” Rutherford said in a public broadcasting debate in Peoria.
State Sen. Kirk Dillard (R-Hinsdale) has supported Amtrak but echoed Rutherford’s concerns: “If the trains don’t get there, it doesn’t mean that they need to run faster. Yes, Amtrak’s vital, but it needs to perform better.”
Financier Bruce Rauner says the passenger rail system is part of a big, important picture. “To the degree we don’t have the money to invest,” Rauner said, “we should form creative public-private partnerships to help finance investments in our infrastructure so it’s world class.”
* The Question: Your thoughts on state Amtrak funding?
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Today’s quotable
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Bruce Rauner…
“We’re being bombed every day by [Pat] Quinn, by the Democrats, by Republican opponents, by the establishment, but that’s OK,” Rauner told the group. “They’re trying to throw mud but it’s not going to stick. I’m very proud of the fact they are attacking because leaders take arrows. I’m happy to take arrows.” […]
“Things are going really well,” Rauner said. “They’re going so well that now we’re being bombed every day. People don’t talk about much of anything else. They just attack us. That’s a sign that we’re winning. Our message is scary to the career politicians.” […]
“They’re trying to spin me as being anti-union. I’m not anti-union,” he said. “I’m anti-conflict of interest. It’s the government unions, when they can bribe the politicians to give them free health care. Give them bigger pensions. Give them more pay … It pushes up our taxes and drives businesses out of our state.”
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Pension lawsuit roundup
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Tribune…
The union coalition also contends the pension law is a violation of the state constitution’s contracts clause and breaches another constitutional provision — the so-called takings clause — which prevents a person’s private property from being taken away for public use without “just compensation.”
As part of the “takings” argument, the unions raise the issue of the legal theory of consideration. They counter that provisions in the new law that reduce the current employee contributions to their pensions by 1 percentage point and allow pension systems to file suit to ensure state government pays its proper share for retirement are inadequate and were never agreed upon.
The lawsuit alleged the changes foisted upon public employees are “substantial and will grow in magnitude over the course” a person’s retirement, a point that underscores why the new law is “unconstitutional and unfair.”
By way of example, the lawsuit highlighted the cases of 25 active and retired government workers. One was Chicagoan Lee Ayers, who has worked about 25 years as a clinical lab technician at a state university and expects to get an initial pension of $53,366 when he retires in 2019. Under the new law, he would lose more than $218,000 if he spends 25 years in retirement, the lawsuit contended.
In contrast, the new law lowers the regular pension deduction from his paycheck by 1 percentage point. That means he’d get to keep an extra $3,733 before he retires — a major difference from what he’d give up, according to the court papers.
* Lee Newspapers…
The 55-page suit notes the plaintiffs have “faithfully” contributed to their pension systems during their tenure with the state.
“Unfortunately, the same cannot be said of the state,” the lawsuit notes. “The state chose to forgo funding its pension systems in amounts the state now claims were needed to fully meet the state’s annuity obligations. Now, the state expects the members of those systems to carry on their backs the burden of curing the state’s longstanding misconduct.”
“Misconduct” is a pretty harsh word.
* WBEZ…
Tuesday’s lawsuit comes on the heels of other similar lawsuits that the Illinois Attorney General’s office has asked be consolidated into one case to be heard in Cook County. But the We Are One Illinois coalition filed its case in Sangamon County, home to Springfield, the state Capitol, and thousands of public workers.
The difference in location could prove significant in the outcome of the case. House Speaker Michael Madigan takes credit for negotiating the compromise and putting the needed votes on the bill for approval. Critics of the law express concerns about whether the suit could come before a Cook County judge who has connections to Madigan, who also serves as the chairman of the state’s Democratic Party.
The case is expected to eventually be argued in front of the Illinois State Supreme Court.
* Bloomberg…
The case was assigned to Sangamon County Circuit Judge Peter C. Cavanagh, according to the court’s electronic docket. Running unopposed as a Republican, Cavanagh was elected to a six-year term in 2010, according to Sangamon County voting records.
* ABC7…
Legal experts agree the case filed Tuesday in a Sangamon County Circuit Court will eventually find its way to the Illinois Supreme Court. The litigation certainly will take months, perhaps more than a year.
* Crain’s…
“This landmark law was urgently needed to resolve the state’s $100 billion pension crisis,” said Mr. Quinn in a statement. “We expect it to be upheld as constitutional.”
Said a spokeswoman for Senate GOP Leader GOP Christine Radogno, “We are hopeful the court will move expeditiously so that we can stabilize the systems for the participants and save taxpayers.” Though unions are unhappy, the law will cut taxpayer payments more than 40 percent over the next three decades, she added.
And from Mr. Cullerton: “I supported (the law) to break the political impasse between the Senate and House, (and) to send a test case to the courts.”
* Sun-Times…
By contrast, Rutherford is not a believer in the law that passed the House and Senate and that Quinn enacted into law. In a brief interview Tuesday, the treasurer said he believes it’s unconstitutional and that pension reform of any sort should be negotiated with the unions.
“We anticipated this latest lawsuit by the We Are One Illinois coalition regarding the new pension law,” Rutherford said in a prepared statement. “We will now wait and see how the Supreme Court rules.”
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SOTS preview
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Everybody’s gonna be at the Statehouse SOTS address today…
Quinn’s Democratic challenger anti-violence activist Tio Hardiman, who has worked in Chicago for years, confirmed he’d attend. All four Republican candidates will listen in person, three of which are public office holders: State Treasurer Dan Rutherford and state Sens. Kirk Dillard and Bill Brady. Bruce Rauner, a venture capitalist, will also attend.
* Here’s some of what they’ll hear…
Quinn has refused to say if he supports extending the tax hike or putting in place some other money-raising measures, and he’s expected to avoid the topic until he delivers his budget address Feb. 19. Instead, the governor will use Wednesday’s speech to unveil a number of voter-friendly initiatives, including several aimed at job creation and helping small businesses.
The governor will propose slashing the fee for filing as a limited liability company from $500 to $39, according to an aide familiar with the governor’s plans. The state’s fee is among the highest in the nation, and the idea is to let business owners spend the money on getting off the ground instead of paying for bureaucracy.
Quinn also will issue an executive order to create a new position in his office that will focus on ways to improve the climate for small businesses in Illinois, including ways to streamline regulations, aides said.
The proposals may be aimed at blunting some of the blowback Quinn has experienced from business interests over his push to raise the state’s minimum wage from $8.25 an hour to $10. He first unveiled the idea during last year’s State of the State, but it gained little traction. The governor may be hoping for an election-year boost this time around as Obama also has pushed a federal increase.
* Sneed…
Watch for Gov. Pat Quinn to propose an ambitious early childhood education initiative in his 2014 State of the State address in Springfield on Wednesday.
In the wake of recent pension reform and marriage-equality legislation, Sneed is told Quinn wants to up the ante from proposals for universal access to pre-K education.
“The governor’s initiative will call for a more comprehensive approach starting before birth,” said a source. “It will include increasing access to prenatal care, which is pivotal to ensuring the healthy birth and development of a child.”
◆ Added the source: “You want to reduce crime and create more jobs? You want to drive down the dropout rate? You want to help more people get college degrees? It all starts with early childhood education − birth to five − and the governor believes this must be the critical focus over the next five years.”
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* Former GOP Congressman Bobby Schilling is pretty darned hardline on abortion, as this recent fundraising e-mail clearly shows…
Radical pro-abortion groups, including EMILY’s List—one of my opponent’s top financial contributors—are fighting to not only protect abortion, but to grow the abortion industry by leaps and bounds. Apparently claiming 1.2 million lives each year isn’t enough. EMILY’s List is fighting to increase access to third-term abortions, strike down parental notification laws, and increase taxpayer funding for abortion.
Folks, when you stop and think about it, EMILY’s List is downright disgusting. Their agenda is designed to promote young teenage girls getting third-term abortions paid for by the taxpayers without the parents ever finding out. That’s as radical as radical gets, and my opponent has pledged to stand with them on each and every issue.
EMILY’s List previously put me “on notice” because of my strong record on life, and that’s a badge of honor I wear proudly! Sorry, EMILY’s List, but genocide is not a right.
I stand with the unborn. I oppose all taxpayer-funded abortions, and I will continue to do everything in my power to protect life.
In liberty,
Bobby Schilling
P.S.-My opponent has received hundreds of thousands of dollars from the radical pro-abortion lobby. Will you help us defeat her this November? Let’s stand for life together. Please chip in $25 to our campaign today!
Freshman Democrat Cheri Bustos’ campaign circulated the Schilling e-mail to their own e-mail list with a fundraising request: “Chip in $3 or whatever you can to help Cheri fight back against the nonsense and do what’s right for Illinois.”
Obviously, we can expect another rough and tumble race.
*** UPDATE *** From the Schilling campaign…
Hi Rich!
I saw your post on the pro-life e-mail we sent out last week.
I wanted to clarify Bobby’s position on the abortion issue. He is steadfastly pro-life. He also supports the “exceptions” — rape, incest, and when the mother’s life is at risk.
However, Cheri Bustos is incredibly extreme on abortion with no exceptions. Bustos has received hundreds of thousands of dollars from EMILY’s List. Last year she voted against the Pain Capable Unborn Child Protection Act, fighting to ensure that the government continues to subsidize abortions after 20 weeks.
Bustos highlighted the word “disgusting” when we were referring to EMILY’s List’s radical agenda.
So that begs a few questions:
Does Cheri Bustos think third-term abortion is not disgusting?
Does Cheri Bustos really believe parents shouldn’t be involved in their teenager’s crisis pregnancy?
Does Cheri Bustos really believe a baby isn’t alive at eight or nine months?
And does she support legalized, subsidized abortion up until the last week of the pregnancy?
These are simple questions she could answer. So far she has refused to. If she supports no exceptions, how is she anything but a radical pro-abortion extremist?
Jon Schweppe
Communications Director
Bobby Schilling for Congress
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Stock prices and the SOTS
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Based on a recent study, you might wanna call your broker and buy some stock in Illinois-based companies this morning. Crain’s…
The study looked at 388 state of the state speeches between 2002 and 2010, along with data on 5,271 publicly traded firms, including 211 in Illinois. Software called Diction 6.0 counted the positive and negative words in the speeches and scored them for net optimism, certainty and activity.
“The results show that firms that are located in a state where the governor gives a more optimistic speech are more likely to significantly increase investment and employment, and experience higher abnormal returns, relative to similar firms located in a neighboring state,” the study concluded.
In 2005, for example, former Gov. Rod Blagojevich’s state of the state speech scored 26.45 for net optimism, twice the nine-year average for all speeches nationwide. Illinois stocks beat the market by 1.59 percent that week, according to the study. In the 2010 election year, Mr. Quinn’s speech scored only 6.61 for net optimism, and the state’s stocks fell 0.5 percent.
The study controlled for variables such as the size of companies, the health of a state’s economy and even the possibility of media leaks before the speeches — leaving the speech itself the only variable.
“I was really surprised by the results,” said Larry Fauver, another co-author and associate professor of finance at University of Tennessee in Knoxville. “Most people are skeptical. I’m comfortable saying the correlation is 100 percent.”
The market react was supposedly even stronger in election years.
Discuss.
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Drilling down into the OR
Wednesday, Jan 29, 2014 - Posted by Rich Miller
* Let’s revisit Greg Hinz’s interview of Bruce Rauner’s about convicted influence peddler Stu Levine…
“I didn’t have ‘a relationship’ with Levine. I didn’t know him,” Mr. Rauner told me. “I didn’t interact with him. What I’ve been told is that he was an employee of a company in which we had a minority interest.”
In further comments over our tea, Mr. Rauner said GTCR’s ownership in the medical-services company that employed Mr. Levine varied from 5 percent to 40 percent, depending on the time. Two other GTCR officials — not him — served on the board of the firm, he said. And the medical services firm was one of scores owned by GTCR at the time, all of which had a number of highly paid officials, he said, though I doubt too many people at just one firm made $300,000 a year.
* OK, first of all, let’s go to the April, 1999 SEC filing when the Compbenefits company was bought…
It is anticipated that immediately after the Merger the following individuals and entities will beneficially own the number of shares of common stock and the number of shares of Convertible Preferred Stock of the Surviving Corporation shown in the following table.
The table shows that two GTCR funds were slated to own slightly over 40 percent of the new company’s stock. So, you’d think that Rauner’s firm would be looking at the company’s numbers pretty darned closely.
* A few months after that April, 1999 SEC filing, Rauner said this to the Wall Street Journal…
“We spend a lot of time living with our companies on a week-to-week basis, understanding what’s going on, and being in the flow of information, so we can be helpful and knowledgeable about the operation. That’s a challenge for public investors. That’s where credibility and consistency and reputation counts for so much.”
* And this is where it gets interesting. Greg Hinz doubted yesterday that “too many people at just one firm made $300,000 a year.” Turns out, he was absolutely right.
Another 1999 SEC filing shows executive compensation at the medical-services company bought by Rauner’s firm.
According to that filing, the medical company’s CEO made $250,009 in 1998, the year before the merger. The company’s president and COO made $215,000 plus about ten grand in “other compensation.”
* In other words, Stu Levine’s $25K per month contract meant he was making more than the CEO and COO the year before the merger.
And yet, somehow this escaped Rauner’s notice.
As former TRS executive director Jon Bauman told Hinz, “On one hand, GTCR was one of four owners in a company that was one of maybe 80 to 100 in (its) portfolio. On the other, limited partners pay general partners (like GTCR) a good fee to know what’s going on in their portfolio companies and to be accountable for them. I’m missing the accountability here.”
* But, even so, other partners were in charge of the acquisition, and GTCR does have a whole lot of companies in its portfolio, so maybe Rauner really didn’t know. But it’s just a bit more difficult to take him at his word with this new information.
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* You can watch the State of the State address here or here. Our friends at BlueRoomStream.com will have live Democratic react at about 1 o’clock here, and live GOP react about the same time here. The Senate is convening a little early today, and you can watch its session beginning at 11 o’clock here. I’ll also probably post videos in our constantly updated ScribbleLive coverage…
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Rauner talks Levine
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* After months of waiting, Bruce Rauner finally talked with Greg Hinz about his employment of convicted influence peddler Stu Levine…
When asked this by his opponents at a candidate debate earlier this month, Mr. Rauner said he “didn’t know” Mr. Levine at the time — Mr. Levine wasn’t indicted on federal corruption charges until a year later — and that GTCR got the work strictly because it produced good returns.
“I didn’t have ‘a relationship’ with Levine. I didn’t know him,” Mr. Rauner told me. “I didn’t interact with him. What I’ve been told is that he was an employee of a company in which we had a minority interest.”
In further comments over our tea, Mr. Rauner said GTCR’s ownership in the medical-services company that employed Mr. Levine varied from 5 percent to 40 percent, depending on the time. Two other GTCR officials — not him — served on the board of the firm, he said. And the medical services firm was one of scores owned by GTCR at the time, all of which had a number of highly paid officials, he said, though I doubt too many people at just one firm made $300,000 a year.
Mr. Rauner added one other thing: Mr. Levine’s original hiring by the medical firm predates GTCR’s acquisition of the company by at least a year, he said. If that’s true, it strengthens his case that Mr. Levine wasn’t fixing things for GTCR. But Mr. Rauner said he does not have access to the actual Levine hiring contract, which was extended by a company that no longer exists. Nor could he provide a copy of Mr. Levine’s departure agreement in 2004 or 2005 — after Mr. Levine was indicted on federal corruption charges — or say whether Mr. Levine received any financial settlement.
Asked whether he played the Illinois political game with Mr. Levine and others in getting pension work, Mr. Rauner replied that GTCR would make its pitch “to the staffs of the pension funds. . . .We did not interact with the board members.”
* But former TRS executive director Jon Bauman had this to say…
“Clearly, no one disclosed the (Rauner/Levine) relationship at the appropriate time,” Mr. Bauman emailed me. “On one hand, GTCR was one of four owners in a company that was one of maybe 80 to 100 in (its) portfolio. On the other, limited partners pay general partners (like GTCR) a good fee to know what’s going on in their portfolio companies and to be accountable for them. I’m missing the accountability here.”
After being against the Rauner company’s investment offer, Levine voted for it at the next meeting.
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Gay marriage law “work of the devil”
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* Springfield Bishop Thomas Paprocki was interviewed recently about his exorcism in response to the new gay marriage law…
Paprocki told LifeSiteNews that people in today’s permissive society seem to think that hate is associated with not letting people get “what they want.”
“Any good parent will tell you that sometimes you have to discipline your children. Sometimes you have to say ‘no’. Sometimes you even have to punish.”
“When a parent does those things, they’re not being hateful towards their children, they’re actually being very loving by correcting them and showing them the right way to do things,” he said. […]
“We just have to understand that we are going to be facing a lot of opposition and as I said, my whole point for doing the prayer service is realizing it’s the work of the devil that’s behind this.”
* Video…
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* The unions aren’t the only groups trying to spoil Gov. Pat Quinn’s State of the State address tomorrow. The Illinois Republican Party has tossed in its two cents…
State of the State: 2014
Rhetoric vs. Reality: Gov. Quinn’s failed record on jobs
2010 SOTS:
Quinn Rhetoric: “I think the number one issue in Illinois today is getting our economy back on track.”
“Our mission this year is to revive our economy and put people back to work”
REALITY: To date, compared to when Gov. Quinn took office in 1/2009, Illinois has lost 93,137 jobs, the number of unemployed is up 36,892, the labor force is down 56,245, and the jobless rate is up from 8.0% to 8.6%, the third-highest of any state.[1]
2011 Budget Address:
Quinn Rhetoric: “We must be a state that has a dynamic, growing economy.”
“We are creating jobs.”
REALITY: At that time, from 1/2009 to 1/2011, Illinois had lost 111,050 jobs, the jobless rate had risen from 8.0 to 9.4, and the Illinois labor force shrunk.[2]
2012 SOTS:
Quinn Rhetoric: “In the past three years, we’ve worked together to strengthen our economy and make Illinois a better place to do business”
REALITY: At that time, from 1/2009 to 1/2012, Illinois had lost 78,762 jobs under Gov. Quinn, the jobless rate had risen from 8.0 to 9.1, and the Illinois labor force shrunk.[3]
2013 SOTS:
Quinn Rhetoric: “In the last four years, we have created jobs, invested in our public works, and enacted major reforms.”
REALITY: At that time, from 1/2009 to 1/2013, Illinois had lost 29,068 jobs under Gov. Quinn, and the jobless rate had risen from 8.0 to 9.0.[4]
Quinn Rhetoric: “Fortunately, thanks to President Barack Obama, we now have the Affordable Care Act, which will improve the health of the people of Illinois and create thousands of jobs.”
REALITY: ObamaCare enrollment in Illinois[5] is only 1/5 of the way to its goal[6], and Illinoisans are signing up slower than the national rate.
Illinois has enrolled only 1 out of every 210 people, or 0.47 percent of the population,[7] compared to the national rate of 1 out of every 146 people, or 0.69 percent of the overall population.[8]
The 61,111 Illinoisans who have signed up for ObamaCare is less than 1/3 of the 185,000 Illinoisans who have received cancellation notices because of ObamaCare… so far.[9]
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Pure, unadulterated comment bait
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* Jason Plummer discusses his Metro East strip mall…
“Since we purchased Monticello Plaza we’ve probably added about 12,000 square feet of new space with tenants who are opening and operating; we’ve signed another 30,000 square feet that we have signed leases on, but they’re not open yet,” said Midwest Asset Group owner Jason Plummer. “It’s good, but we’ve been fortunate to work with the village of Godfrey; it’s a great community.”
Pizza World and Russell Cellular, a Verizon store, occupy a new building added to the Monticello complex. Pizza World, owned by franchisee Dave Stafford of Godfrey, opened last week; Russell Cellular will open Monday. Each will have a ribbon cutting and grand opening in February.
Also opening next month at Monticello’s main and existing building is LAG Gaming, owned by Scott Hampton, and next door to the video game store will be a second location for Complete Supplements, owned by Matt Hamman, which has a Maryville store. A few months ago Apex, a physical therapy business, opened next door to the antique mall in Monticello.
Republican Illinois gubernatorial candidate Bruce Rauner officially opened his campaign office Saturday at Monticello Plaza with a grand opening in the afternoon when he spoke to the public. Rauner is a businessman from Chicago.
I’m told that Plummer donated the office space to Rauner’s campaign.
Have at it, kids.
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* From a press release…
The Equality Illinois Political Action Committee (PAC) today issued its endorsements for candidates running for statewide office in Democratic and Republican primaries in the March 18, 2014, primary election. All the endorsed statewide candidates have strong records supporting lesbian, gay, bisexual, and transgender (LGBT) issues, particularly regarding the freedom to marry. […]
Endorsements were based on answers to Equality Illinois PAC’s endorsement questionnaire, personal interviews, community input, and, where applicable, incumbent candidates’ voting records on important LGBT issues.
* The list…
For Governor:
Pat Quinn (Democrat)
For Attorney General:
Lisa Madigan (Democrat)
For Secretary of State:
Jesse White (Democrat)
For Treasurer:
Michael Frerichs (Democrat); Tom Cross (Republican)
For Comptroller:
Sheila Simon (Democrat); Judy Baar Topinka (Republican)
Discuss.
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Open for business
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* The last two Saturday evenings, we were stunned to see that the parking lot was empty at the popular Ross Issac restaurant. After the second time, I turned the truck around and pulled up to the building. A posted sign said they were working on some equipment problems, but didn’t indicate a target reopening date.
Ross Isaac is an incredibly popular restaurant for Statehouse types, even if it is outside “the sandbox.” I like the place a lot and it has won at least one Golden Horseshoe.
* This morning, I received an e-mail from Sean Keeley, the chef/owner of the restaurant…
We had it rough last week getting things ready to reopen last night. There were rumors that we were closing for good, and I was hoping you could let your readers know we are excited to be back. I would greatly appreciate that so much, and I’d be happy to have you in to try some of the new items. We have a new menu and are planning our first Sunday brunch as well!
Thanks so much and take care, Sean Keeley
That’s a relief. And, finally, a decent brunch in Springfield. Great news all around.
And there’s no need to “have me in,” Sean. I’ll go on my own accord, and very soon. Maybe tonight. I’m pretty curious about the new menu.
* By the way, now that we’re on the topic of Springfield restaurants, I forgot to post the winner of our Golden Horseshoe Award for Best Political Restaurant in Springfield after voting ended. The winner was Sebastian’s, with Maldaner’s taking runner-up.
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* From a press release…
We Are One Illinois Coalition files suit to overturn “pension theft” law
The union coalition We Are One Illinois and a group of active and retired public employees filed suit today in Sangamon County Circuit Court to overturn pension-slashing Senate Bill 1 (Public Act 98-599). Defendants in the suit are Governor Pat Quinn, other constitutional officers, the state retirement systems and their boards.
“Our suit makes clear that pension theft is not only unfair, it’s clearly unconstitutional,” said Illinois AFL-CIO President Michael T. Carrigan. “Teachers, nurses, emergency responders, and other workers and retirees will not stand by while politicians try to take away their life savings illegally. The legislature and governor shirked their responsibility to uphold the constitution, so we are seeking justice in court to right their wrongs. Promises must be kept, and the rule of law must prevail over politics.”
We Are One Illinois Coalition members include the Illinois AFL-CIO; Illinois Federation of Teachers; Illinois Education Association; American Federation of State, County and Municipal Employees (AFSCME) Council 31; Service Employees International Union (SEIU) Local 73; Illinois Fraternal Order of Police State Lodge; Illinois Police Benevolent and Protective Association; Associated Fire Fighters of Illinois; Illinois Nurses Association; Laborers’ International Union of North America Local 2002; Teamsters Local 700; and Teamsters Joint Council 25.
SUMMARY
The We Are One Illinois lawsuit argues that the “pension theft” law violates the pension clause of the Illinois Constitution, which unequivocally states that a public employee’s pension is a contract that the state cannot diminish or impair.
Public employees and retirees “have upheld their end of that constitutionally-protected bargain,” the suit argues. It continues:
“Those Plaintiffs who are current employees teach our children, care for the sick and disabled, protect us from harm and perform myriad other essential services for Illinois and its citizens. Those Plaintiffs who already have retired similarly dedicated their careers to the men, women and children of Illinois. And, each faithfully has contributed to his or her respective pension system the substantial portion of their paychecks the Illinois pension code requires.
“Unfortunately, the same cannot be said of the State. The State chose to forgo funding its pension systems in amounts the State now claims were needed to fully meet the State’s annuity obligations. Now, the State expects the members of those systems to carry on their backs the burden of curing the State’s longstanding misconduct. Specifically, Public Act 98-0599 unlawfully strips from public servants pension amounts to which they otherwise are entitled as a matter of law, let alone fundamental fairness.
“That is the very threat against which the Pension Clause protects.
“The Governor and the members of the General Assembly took an oath to uphold the Constitution. They acknowledge that other options exist to remedy the State’s knowing failure to adequately fund the State’s pension systems. But rather than work to remedy the impact of the State’s conduct in a manner that comports with their oath, complies with the Illinois Constitution and upholds the State’s constitutional promise to pension system members, the Governor and General Assembly unlawfully look the other way.
“Plaintiffs thus turn to this Court for protection and commence this action to defend their constitutionally-protected rights and protect the pensions they have earned. Plaintiffs request that the Court declare Public Act 98-0599, in its entirety, unconstitutional, void and unenforceable.”
CLASS ACTION
The coalition’s filing seeks to certify a class action representing all individuals, active or retired, who first contributed to the State Employees Retirement System, the State Universities Retirement System, or the Teachers Retirement System before January 1, 2011.
The suit’s 25 named plaintiffs representing the class are:
Lee Ayers of Chicago, a clinical lab technician at a university medical center for approximately 25 years;
David Behymer of Rushville, a retired teacher who taught art to children ranging from pre-school to high school for 30 years;
Christine Bondi of Ontarioville, who has worked for the Illinois Secretary of State for approximately 28 years as a public service representative and administering driving tests;
Monica Butts of Westville, a cashier with the Secretary of State for more than 12 years;
Gary Ciaccio of Kankakee, who for 33 years has worked for the Illinois Department of Human Services, caring for people with mental health issues or developmental disabilities;
Edward Corrigan of Pontiac, who retired after approximately 20 years as a correctional officer at an Illinois prison;
Michael Day of O’Fallon, a high school history teacher for 20 years;
Kenneth Dugan of Pesotum, an Air Force veteran and former state trooper who retired after serving nearly 30 years as a firefighter for the University of Illinois at Urbana-Champaign fire department;
Jennifer Edwards of Chicago, who retired after approximately 30 years in various positions at the University of Illinois at Chicago, including assistants to the History Department chairperson and the head of the Department of Pediatrics;
Elaine Ferguson of Nauvoo, a retired teacher who taught kindergarten and first grade for more than 30 years;
Denise Funfsinn of Mendota, a special education teacher for 29 years;
Terri Gifford of Springfield, a health and physical education teacher for approximately 30 years;
Gwendolyn Harrison of Springfield, who has helped citizens find information for 14 years as a librarian for the Illinois Secretary of State;
James Herrington of Fairview Heights, a high school and college math teacher for 35 years;
Marlene Koerner of Herrin, a retiree who taught for more than 30 years;
Gary Kroeschel of Chatham, who has served as an information systems analyst for approximately 14 years;
Ellen Larrimore of Chicago, a library specialist for the past seven years at Northern Illinois University;
J. Todd Louden of Good Hope, who for nearly 30 years served in the Western Illinois University police force;
Stephen Mittons of Sun River Terrace, who is a child protection investigator and has worked for the Illinois Department of Children and Family Services for approximately 19 years;
Jose Prado of Willowbrook, who has worked as a correctional officer and sergeant in an Illinois state prison for 15 years;
James Sheridan of DeKalb, who has served as a maintenance worker at Northern Illinois University for 13 years;
Thomas Tate of Salem, a nurse who for 34 years has served in the Illinois Department of Human Services caring for individuals with developmental disabilities;
D’Ann Urish of Springfield, a special education teacher who has spent 31 years educating middle school students with behavioral and learning disorders;
Caryl Wadley-Foy of Bradley, who retired after 32 years as a secretary in a state residential facility for individuals with developmental disabilities; and
Julie Young of Owaneco, an 11-year employee of the Secretary of State.
VENUE
The suit was filed today (Tuesday, Jan. 28) in the Circuit Court for the Seventh Judicial Circuit, Sangamon County, Springfield, Illinois. Sangamon is home to thousands of class members, as well as the state capitol and offices of the statewide officeholders and retirement systems named as defendants. Two of the three previously filed suits on this subject matter have been filed in Sangamon County as well.
STAY OF IMPLEMENTATION
In order to prevent irreparable harm to public employees and retirees who face immediate and irrevocable life decisions, and to avert unduly burdensome administrative complications for the state retirement systems, We Are One Illinois strongly believes that the pension-cutting law must not be implemented before its constitutionality is decided in court.
Consequently, the union coalition has sought for the past several weeks to reach agreement with the state Attorney General and the named defendants on a joint request to the court to enjoin the law’s implementation. Regrettably, the Attorney General refused. In its filing, We Are One Illinois reserves the right to seek an injunction.
The full lawsuit is here.
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Here we go again
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* From a Bruce Rauner press release…
More Pension Problems
- Crisis Caused by Springfield Career Politicians Continues -
After touting a pension plan that allegedly saved the state $160 billion over thirty years, newly released bond documents expose major shortcomings in the overall scope of the new pension law.
Not only does the pension plan save $15 billion less than was promised, but the documents also reveal the shaky foundation upon which the entire plan is built. According to the filing, a fraction of the projected savings occur in the first 10 years of the 30 year plan.* The other projected savings are heavily back-loaded.
“This pension plan continues to look more and more like other plans crafted by Springfield insiders that appear good on the surface, but fail over the long term and make real reform harder,” said Mike Schrimpf, spokesman for Bruce Rauner’s campaign. “Like the 1994 pension plan that kick-started the pension crisis, the new law is shortsighted, unrealistic, fails to fundamentally reform the system and could make things even worse.”
According to the Chicago Sun-Times, the SEC cited the 1994 pension bill as the “primary driver” of the pension crisis.
“The politicians running for governor have all been in Springfield for the last two decades and played a major role in causing the pension crisis,” Schrimpf added. “It’s clear that career politicians are unwilling to shake up Springfield and won’t ever truly fix the pension system.”
“No wonder they also refuse to condemn the attempts by Pat Quinn and his allies to hijack the GOP primary,” Schrimpf said. “They all take money from the government union bosses and are part of the broken system of politics in Springfield.”
Pat Quinn Government Union Contributions
- More than $4.5 Million
Kirk Dillard Government Union Contributions
- More than $450,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement
Dan Rutherford Government Union Contributions
- More than $50,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement
Bill Brady Government Union Contributions
- More than $15,000
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No traction
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* Maybe it’s because this Tribune story appeared a few days before Christmas, or maybe because the Tribune is no longer an AP member its stories aren’t being picked up by other papers like they used to, but it’s fascinating to me that this piece has gained absolutely zero traction…
State Sen. Bill Brady’s homebuilding business has been sued twice for defaulting on loans worth millions of dollars since his last run for governor, including one case playing out in court as he seeks the 2014 Republican nomination.
Brady has built his political career in part on the success of his family’s Bloomington-based real estate development business, and he blames the recession that battered the housing market for the financial troubles that emerged as he launched his bid to unseat Democratic Gov. Pat Quinn in 2010.
The family business has continued to struggle. Just weeks before the March primary election, Brady is due in court in Bloomington for a status hearing on a $2.38 million loan default lawsuit filed against him, his brothers and several of their development companies after they failed to make good on a series of loans.
Last year, Brady resolved a $1.7 million default case in Champaign County Circuit Court by selling some of the mortgaged properties to a campaign contributor.
* Bill Brady and his family build houses. The national economic collapse wiped out a whole lot of home builders.
In May of 2011, just 726 single family housing building permits were issued in the entire state of Illinois. Things have improved a little, but not much. Just 1,011 permits were issued last May. Take a look, for instance, at this new report on “zombie properties” in Cook County to see how bad things still are.
So, I don’t really fault him for his family company’s troubles. Frankly, it’s even a little amazing to me that his company remains a going concern.
* And maybe that’s what’s really behind the lack of publicity here. Things sometimes happen to businesses that cannot ever be controlled by the businesses themselves. And if that’s the case, is this really an issue?
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A look back
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* This week marks the fifth anniversary of the Illinois Senate’s vote to remove Rod Blagojevich from office. Kurt Erickson looks at what has changed…
Construction: During his six years in office, Blagojevich and the legislature were unable to agree on a way to pay for a job-creating road, bridge and school construction program. Within a year of his departure, Quinn and the legislative leaders had devised a plan to legalize video gambling and raise taxes and fees on booze and motorists. The money has paid for not only better roads, but new copper doors on the Capitol.
Taxes: Blagojevich was true to his word when he said he would never support raising taxes. But that meant he had to use sleight-of-hand budgeting techniques — like tapping into pension funds — to finance his pet programs. His actions, as well as those by chief executives who came before him, left the state in a precarious fiscal position. Within two years of his ouster, a temporary increase in the income tax was approved.
Pensions: After balking for years, lawmakers last month finally approved an overhaul of the state employee and teacher pension systems. Although it likely won’t save any money while it winds its way through the court system, passage of the changes showed the General Assembly and Gov. Quinn were finally starting to figure out how to make tough decisions.
New laws: While Blagojevich was in office, his signature achievements included the expansion of a health insurance program for kids and an increase in the minimum wage. Since Quinn came on board, the state has legalized medical marijuana and gay marriage, approved new worker compensation rules and offered up some guidelines for a controversial oil and gas drilling process that will: a) create thousands of jobs; b) ruin the environment; c) or, do some of both.
Prisons: After years of listening to Blagojevich threaten to close prisons, Quinn actually did it. The governor moved inmates out of the Tamms super-max facility and the all-female Dwight Correctional Center, as well as closed juvenile prisons and a handful of halfway houses. The closures confounded many observers because they came at a time when the prison system is grossly overcrowded.
* I put together a retrospective video a year after his arrest. It’s probably worth another look…
Man, I do not ever want to relive anything even close to that madness.
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Some stuff to ponder
Tuesday, Jan 28, 2014 - Posted by Rich Miller
* For a moment, let’s backtrack to yesterday, when Bruce Rauner and his three opponents were slamming each other over the upcoming anti-Rauner TV ad blitz financed at least in part by organized labor. This was Sen. Bill Brady’s retort to Rauner…
Brady noted that union groups opposing Rauner in the primary are made up of members of both parties.
“Mr. Rauner fails to recognize that there are many union members — in both the public and private sectors — who are Republicans, who are disgusted with the failures of Pat Quinn, and who want to make sure their party nominates the best candidate to turn Illinois around,” he said in a statement.
* That’s not a bad point, although it is a little weird seeing the 2010 “right to work” proponent sounding so “moderate” on union members these days.
Here are some numbers to consider as well…
* Total Republican ballots cast in the 2010 gubernatorial primary: 767,485
* Illinois union membership, 2013: 851,000
In other words, there are far more union members in this state than Republican primary voters.
* Meanwhile, the Jacksonville Journal Courier doesn’t like the idea of unions meddling in the GOP primary…
But does an attempt to drum up support against a particular person — one who has the potential to present an election-time threat to a candidate with union support — cross the line?
At some point it becomes less a matter of trying to steer an election and more a case of trying to hijack it.
Rauner’s campaign says it has already crossed that line and has blasted the initiative.
“Local Republican leaders and grassroots activists aren’t about to let Pat Quinn’s allies subvert the Republican primary, and neither should any of the other candidates running for governor,” said Rauner’s campaign manager, Chip Englander.
It’s understandable unions are uneasy. They have been bruised by a few of the decisions made over pensions and other matters last year and are closely examining some candidates’ anti-union stances. It makes sense they would be selective about where to cast their support and the flurry of dollars that will follow such a pronouncement.
Resorting to schemes that undermine the opportunity of all voters to have an equal voice in the election process is over the line, though, and has potential to harm public sentiment toward unions more than any political candidate could.
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