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Roads and power… both kinds

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Illinois

* This is not fully true…

Although the capital program was approved in 2009, a reappropriation bill was used as the vehicle for adding $430 million in operational funds for education, human services and other budget add-ons. The Senate approved HB 2189, but the House rejected it — leaving ongoing construction projects in limbo.

Rep. Jim Watson, R-Jacksonville, blames Quinn and the Senate Democrats for playing games with the budget.

“The way the budget was crafted in the House, was based on the amount of money that we thought we would have,” Watson said.

When the Senate wanted to boost spending, the capital program was used without identifying new revenue.

As subscribers already know, the Senate did, indeed, provide for $270 million in funding for their programs. And they’ve backed away from $150 million of the $430 million in add-ons. So, the “new spending” actually comes in under the House’s spending limit. I’m really not sure why the proponents of this spending have not bothered to explain their plan, and I’m still wondering why the media hasn’t bothered to figure this out yet. It’s really not all that complicated. All you gotta do is pick up the phone and ask. That’s what I did last week.

* However, the other problem here - and it’s a big one - is that the leaders all agreed two years ago not to mess with the capital plan. An attempt by Gov. Pat Quinn at the time to mix the budget negotiations with the capital bill was roundly shouted down by everyone, including the Senate Democrats. Leader agreements are supposed to be inviolate. Senate President John Cullerton has told me this move wasn’t a violation, but I can’t see how it isn’t. He’s opened the door to further games on the capital plan, and that should not be allowed to happen. So, I can’t disagree with this part of a Pantagraph editorial…

These projects aren’t a pie-in-the-sky proposal to put people to work; they are putting people to work.

An estimated 52,000 people would be out of work if these state-funded projects are shut down. Illinois doesn’t needs that now. […]

Topinka said in a statement, “My message to fellow leaders is simple: Do not play games with capital projects and the jobs they bring to Illinois.”

So let’s see some leadership — from all sides. Resolve these questions before June 17 — and don’t hold the construction program hostage in an attempt to get action on unrelated matters.

* Meanwhile, in other news, ComEd made its case before the Sun-Times editorial board yesterday and outlined how its bill had improved…

†ComEd will go before the Illinois Commerce Commission every year, instead of every two to four years, so that the ICC can review how ComEd is spending the money.

†If the average residential rate increase is more than 2.5 percent by 2014, the entire program, including infrastructure investments and smart-meter installations, is terminated. Critics argue that ComEd will never hit the rate cap because energy-generation prices are dropping, and utility profits will continue to increase regardless of the consumer rates.

†ComEd’s profit margin is set at 10.25 percent rather than the initial requested 10.75 percent. ComEd says the 10.25 percent is less than the 10-year national average.

The Sierra Club, Environment Illinois and the National Resources Defense Council say the changes will create up to 5,000 new jobs in renewable energy by allowing urban rooftop owners to install solar and wind power on their roofs and creating new markets for small renewable energy generators.

The Citizens Utility Board says the bill has improved significantly, but still includes worrisome items such as a rate-hike cap that’s taken away after the first two years.

As usual with big utilities, ComEd introduced legislation that was so out of line that it had no chance of passing. By the time it made its changes, the die had been cast in public and legislative opinion. The company thought the changes would net it big, veto-proof majorities in both chambers. Instead, it managed just minimal majorities, all but inviting a gubernatorial veto.

Gov. Pat Quinn has already publicly brandished his veto stamp, but the Sun-Times wants more changes instead…

If Quinn does reject the bill, which already reflects a good deal of last-minute compromise on ComEd’s part, we urge him to do so with an amendatory veto that resolves the remaining issues in dispute. Protecting ratepayers shouldn’t come at the cost of missing out on a digital-era upgrade that could benefit consumers and businesses by making the entire electrical grid more efficient […]

By the time the Legislature’s fall veto session rolls around, the results of a smart grid pilot project should be in, giving a clearer indication of just how much money such a modernization might save.

By then, perhaps, both sides will have found a way to end the gridlock over the grid.

The Smart Grid is a fantastic idea. I first suggested to company executives seven years ago that they consider updating their technology to provide cable and Internet services. That probably couldn’t pass, either, because the cable and phone companies are way too powerful. That’s really too bad, because they have the biggest pipes of anybody and would bring some much-needed competition to the market. Either way, though, I cannot disagree with their push to upgrade their delivery system, but the top brass should’ve introduced a much better bill to begin with.

* Related and a roundup…

* “Game of chicken” puts local road projects in jeopardy: Though Koehler initially supported linking the capital projects to increased spending for human services and education in the ordinary state budget, he acknowledges that because the House wouldn’t go along it’s now time to drop the gambit. “We played the game of chicken and now we have to blink because we don’t want to see these projects stop or see people thrown out of work,” he said.

* Budget battle puts Brisbin Road project at risk

* Roeder: Dixie Square ruins remain untouched

* Editorial: ComEd smart grid bill isn’t a wise idea right now: In fact, there’s lots of evidence the ComEd plan is not ready for launch and would benefit from the inspection the ICC would give. A May 30 Crain’s Chicago Business report said ComEd’s test of the new technology in the Chicago area “did not connect very well with consumers.”

* Illinois takes slow approach on health exchange

* Letter seeks suspension of new hospital approvals: Three Chicago-area hospitals say a state board should wait to approve any new hospitals until Illinois establishes a Center for Comprehensive Health Planning called for in legislation.

* Area legislators holding meeting on insurance

* ADDED: Heritage Manor employees protest cuts to nursing home payments

* Gov. Quinn Names Gery Chico Head of Illinois State Board of Education

* New law would change rules on teacher tenure

* District claims family lives out of town, sues for $30K in tuition: The Carters say it is frustrating because they pay property taxes — money that underwrites the local school system — on the Oak Park condo they continue to call home. They say they showed district officials the tax paperwork and phone bills to prove they live there. But their children were still shown the door. Property records show Terri Shaw Carter is listed as the owner of the Oak Park residence.

* Felon, fired cop land sweet school jobs in Cicero and Berwyn district

posted by Rich Miller
Wednesday, Jun 8, 11 @ 10:47 am

Comments

- Either way, though, I cannot disagree with their push to upgrade their delivery system, but the top brass should’ve introduced a much better bill to begin with. -

Absolutely, and even the ICC is all for allowing customers to pay more for upgrading facilities. For example, Peoples Gas in Chicago was allowed to attach an extra fee to customers’ bills to pay for an accelerated program to replace all of the old, leaky cast iron main in the city. The ICC just wants accountability to ensure that the money is going where it’s intended. The electric utilities just can’t get their act together.

Comment by Small Town Liberal Wednesday, Jun 8, 11 @ 10:54 am
Depending on how the current capital bill funding case works out with the single subject rule, I’d imagine that tacking on operational spending into the capital reappropriation would even be more easily viewed as breaking the single subject rule.

Of course, it depends on how the Supremes rule on the first one shortly, but I can see a could case of sniping the capital bill reauth because they tacked on unrelated operational spending.

Comment by John Bambenek Wednesday, Jun 8, 11 @ 11:05 am
rich–find the list of trouts!

Comment by anon Wednesday, Jun 8, 11 @ 11:09 am
A capital plan that rebuilds roads while ignoring our most vital resource — our human capital — is a grave mistake.

In every list I’ve seen on job creation, transportation, communications, and energy infrastructure are always listed somewhere in the top five.

But without exception, the quality, education-level, and skill of the workforce is #1.

Rich makes a good point about not mucking up a previous agreement.

But until Democrats and Republicans recognize that our most important resource is people by investing in education, job training, and investments in human capital, then paving over roads just paves over the problem temporarily.

Comment by Yellow Dog Democrat Wednesday, Jun 8, 11 @ 11:10 am
YDD,

One question, where is the money for any additional programs. I could support your additional spending if the GA and the Governor were to prioritize their spending. There is so much money, spend it wisely.

Comment by Cincinnatus Wednesday, Jun 8, 11 @ 11:13 am
===where is the money for any additional programs===

Hint: It’s in the BIMP.

Comment by Rich Miller Wednesday, Jun 8, 11 @ 11:14 am
Are you suggesting that the State would stop revenue sharing with the Municipalities, Rich?

Comment by Cincinnatus Wednesday, Jun 8, 11 @ 11:22 am
The ICC actually filed a counterproposal to ComEd and Ameren’s HB14/SB1652 - it was House Amendment #3 to HB14. Many of the investments either should have been done before - or are needed. The problem is the utilities, despite being regulated monolpolies still only focus on higher profits - and “Smart Grid” is their latest guise to increase rates.

Comment by SprtShz Wednesday, Jun 8, 11 @ 11:25 am
Rich,

Before you answer, I know, “Subscribe.”

;-{)>

Comment by Cincinnatus Wednesday, Jun 8, 11 @ 11:33 am
So if they take out the additional spending and pass the capital part of the bill only, what happens to the $270 mil that is funded in the BIMP?

Comment by Been There Wednesday, Jun 8, 11 @ 11:41 am
The school district suing the parents article deserves a closer look. The family is African-American and the information came to the school district through an “anonymous tip”. Plus school is holding kids records and kicked them out of school. All sounds less than legit.

Comment by D.P. Gumby Wednesday, Jun 8, 11 @ 12:22 pm
Now’s not the time to play chicken with construction jobs.

Comment by wordslinger Wednesday, Jun 8, 11 @ 12:37 pm
DP just wondering if the family was white or Asian would that make a difference about where they live. A lot of school districts are forced to do this now because of the state gov not living up their obligations. It is also common practice to not get your transcripts until all bills are paid. An anonymous tip is how this information usually comes out. It happens when you make enemies of your neighbors

Comment by Fed up Wednesday, Jun 8, 11 @ 12:44 pm
@Been There –

The BIMP transfers the money out of the special funds, but without the additional approp language attached to the capital bill, I’d presume that the only thing it can be used for is paying past-due bills.

Depends on the language.

Which reminds me, did we ever get a definitive answer on whether the .25% add-on in the tax increase can be used to pay backlogged bills directly?

I seem to recall Rep. Currie saying during debate that it could ONLY be used for bonding to pay off old bills, but I could be mistaken.

Comment by Yellow Dog Democrat Wednesday, Jun 8, 11 @ 12:45 pm
Wordslinger,

Your comment is directed toward Our Boy Pat, right? Seems like the GA did their jobs.

Comment by Cincinnatus Wednesday, Jun 8, 11 @ 2:02 pm
–Your comment is directed toward Our Boy Pat, right?–

Please leave me out of your juvenile name-calling.

Comment by wordslinger Wednesday, Jun 8, 11 @ 2:05 pm
“- D.P. Gumby - Wednesday, Jun 8, 11 @ 12:22 pm:

The school district suing the parents article deserves a closer look. The family is African-American and the information came to the school district through an “anonymous tip”. Plus school is holding kids records and kicked them out of school. All sounds less than legit.”
Why is their race relevant in a case of residency fraud?

Comment by Anonymous Wednesday, Jun 8, 11 @ 2:29 pm
Surely, I don’t fully understand this ComEd business… Does the bill actually guarantee that ComEd will have a profit margin of 10.25%.

If so, how many lobbyists do I need to hire to get a guaranteed double digit profit on my business ventures?

More seriously… How can one rationalize increasing costs on the many who are struggling to make ends meet so that an entity is assured of making a double digit profit?

I’m serious. I surely must not correctly understand that line about the 10.25% profit. Help me understand.

Comment by Logic not emotion Wednesday, Jun 8, 11 @ 2:37 pm
I don’t know anything more about the OPRF story than what’s in the papers. I can tell you, though, that the school has had a pretty aggressive investigative program regarding residency fraud for the 20 plus years I’ve lived here.

You have to jump through a lot of hoops with a lot of documentation to get enrolled in the Oak Park public schools.

The racial component, if you want to call it that, is that when fraud has been discovered it’s overwhelmingly involved African-American kids from Austin whose folks want them to go to OPRF rather than CPS.

The Green Line stops just a couple of blocks away.

Comment by wordslinger Wednesday, Jun 8, 11 @ 2:37 pm
I’d imagine that tacking on operational spending into the capital reappropriation would even be more easily viewed as breaking the single subject rule.

It is an appropriation bill. There is no concern about single subject. Approp bills address a wide variety of “subjects” all the time. Sometimes they pass just one budget bill.

Comment by dave Wednesday, Jun 8, 11 @ 4:34 pm
The city of Springfield’s City Water Light and Power delivery system is capable of reading meters remotely through their comprehensive fiber optic system throughout the city. It would require an investment at the meter, but the backbone is in place.

CWLP has in place the capability to deliver both high speed Internet service and HD TV. Additionally, CWLP can provide cameras throughout the city for traffic control, suspect apprehension, and politician in the area alerts.

We’re actually ahead of most communities our size on many technology fronts, but of course there are the issues regarding fair competition, and individual rights. Both very, very important.

Comment by Justice Thursday, Jun 9, 11 @ 7:54 am
In the school boundary story, there’s nothing in the article that indicates that the family is lying. Did the press find that the family really resides at the day care address or the Oak Park address? It sounds like the family is telling the truth, unless something is not being reported/told to reporters.

Comment by Southern Peggy Thursday, Jun 9, 11 @ 10:19 am