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* I don’t think I disagree with anything in Dave McKinney’s analysis about Gov. Pat Quinn’s decision to call a special session for June 19th…
First, he doesn’t appear any closer to a deal with House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago) than he was when lawmakers adjourned for the summer last Friday.
And, compared to last week, a higher voting threshold is necessary in the House and Senate to get anything to the governor’s desk, meaning a much harder legislative lift to pass anything.
On top of those points, history is no friend of the governor when it comes to special sessions. This marks the second time in less than a year Quinn has ordered a special session in a bid to break the impasse on pension reform. The last one accomplished nothing.
“I would say he tried that last year, and it didn’t work. I’d suggest he seriously, seriously consider the drawing board before he invites us back to Springfield,” said House Majority Leader Barbara Flynn Currie (D-Chicago). “It’s a risky play for him unless he’s pretty sure he’s got a solid agreement and therefore some solid votes.” […]
Last August, Quinn also ordered legislators back to Springfield for a special session, but that only resulted in both legislative chambers briefly gaveling in and gaveling out with no action taken.
This order carries the added risk of highlighting Quinn’s ineffectiveness in working the levers of power at the Statehouse with the 2014 campaign cycle beginning and his own re-election bid facing possible challenges from Democratic Attorney General Lisa Madigan and former White House Chief of Staff William Daley.
The odds are stacked against success on June 19 because under the Illinois Constitution, both chambers will have to approve pension legislation by a three-fifths vote in each chamber to get anything to the governor’s desk in order for it to take effect immediately. Otherwise, anything passed with a simple majority vote in chamber would have to wait until next June 1 to take effect.
* Related…
* Quinn calls special legislative session for June 19: Last week, aides signaled that Quinn was leaning away from a special session after its experience last August. The governor called lawmakers into session on pensions during State Fair week, only to see them adjourn without action. Quinn’s predecessor Rod Blagojevich made a habit of calling special sessions on the budget that lawmakers eventually tuned out altogether.
* Quinn calls pension session after credit downgrade: “Moody’s provides more damning evidence that we can’t afford a continual stalemate on pensions,” Cullerton spokeswoman Rikeesha Phelon said. “It’s time to identify a reasonable compromise.”
* Tribune Editorial: We hope Standard & Poor’s latest warning brings Mr. Cullerton to his senses
* Quinn calls special session to deal with pension issue
posted by Rich Miller
Friday, Jun 7, 13 @ 9:26 am
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Don’t waste the Senates time If the guy hiding in the other post stays away the house passes 2404 in a second and goes home …and the Tribune Cries.
It isn’t Cullerton …I am not bothering to respond to them
Comment by RNUG Fan Friday, Jun 7, 13 @ 9:32 am
SB2404 passed the senate during the regular session and Cullerton should pass it again during the special session and send it to Madigan’s House. Which, if Madigan allow’s a vote, will exceed the 2/3 majority and be sent on to the governor. Put the pressure on Mike, John and “re-pass” 2404.
Comment by PublicServant Friday, Jun 7, 13 @ 9:37 am
So, why is he calling the session. A least-bad option for a governor/candidate, perhaps. Maybe he and his campaign advisors have concluded, based on ?? (has any polling been done on the issue) that some action is better than none. If he loses, he can say the Lisa’s dad blocked pension reform (if she’s a candidate), or the forces of evil, or whatever. If he does nothing, he’s stuck with that.
Comment by cassandra Friday, Jun 7, 13 @ 9:42 am
I think the plan is to make Madigan wear the jacket for nothing passing. And I think it’s working.
Madigan’s bonehead response to the Channel 7 ambush has some legs. The pile on will begin.
Comment by wordslinger Friday, Jun 7, 13 @ 9:43 am
==I think the plan is to make Madigan wear the jacket for nothing passing. And I think it’s working.==
And you think it makes a difference with the exception of the optics. That doesn’t get anything passed. The Governor is wasting everybody’s time and continues to provide absolutely no useful participation in this process.
Comment by Demoralized Friday, Jun 7, 13 @ 9:45 am
A failed special session may be a good thing. It seems the GA cannot act on a divisive, important issue without outside pressure. The court deadline on a concealed carry law apparently moved the GA to action. A failed special session on pension reform may provide ammo to the bond rating houses to lower Illinois’ rating, again. Illinois still has a few downgrades to go before reaching its apparent goal of junk. Maybe when Illinois is staring at a junk rating, the GA will act and do something so the judicial process on vetting constitutionality of pension reform can begin.
Comment by Cook County Commoner Friday, Jun 7, 13 @ 9:46 am
Unfortunately, the general public still doesn’t understand the gravity of the situation. Heck, I don’t think a lot of lawmakers do either, but something needs to be done fast if the Dems want to hang on to their total control.
The longer the GA waits to pass pension reform, the better it is for the Illinois GOP. Think about it: Rauner is going to spend his vast fortune over the next year endlessly talking about how Illinois is literally throwing away millions of taxpayer dollars every day.
Unless something is done soon, the pension reform collasps will be the end of the one-party system in Illinois. I doubt Madigan wants that to happen, but then again, he has always waxed poetically about the good old days during the Thompson/Edgar/Ryan regimes.
Comment by Truth teller Friday, Jun 7, 13 @ 9:46 am
@word - the house passed SB1 at the end of April. I know that seem like ancient history given what did (or didn’t) transpire in May but its troubling to hear the House passed “nothing.” The real dynamic change here was the union cover for 2404. Once that happened, it surrendered the Speakers ability to return the favor to Cullerton and kill 2404 in the House because too many members would have to vote for it. Hence, stalemate.
Comment by Lord Stanley's Cup Friday, Jun 7, 13 @ 10:01 am
“The Governor is wasting everybody’s time”
So be it. In reality the legislature as a whole wears the jacket for this mess. This is their job and, as a citizen, wasting their time is the least of my concerns.
Comment by Out Here In The Middle Friday, Jun 7, 13 @ 10:05 am
“Rauner is going to spend his vast fortune over the next year endlessly talking about how Illinois is literally throwing away millions of taxpayer dollars every day.”
I hope he does. It needs to be constantly highlighted. If not by him, then who?
Comment by Anonymous Friday, Jun 7, 13 @ 10:21 am
I agree with Word, the I-team report puts the special session in a new light. Quinn can respond to criticism of the SS call by saying this is the only way he can get Madigan’s attention. So Quinn’s plan now becomes focusing on hurting the Madigan brand.
Comment by Norseman Friday, Jun 7, 13 @ 10:22 am
==wasting their time is the least of my concerns==
Again, what exactly does it accomplish? Nothing. There’s not a plan that they have agreed on (apparently) so the Special Session is pointless. I would think “as a citizen” you would be concerned about results and not about who looks bad.
Comment by Demoralized Friday, Jun 7, 13 @ 10:25 am
Quinn would help himself out quite a bit if he would say “pass the Cullerton bill and I’ll sign it.” Clear, concise and targeted to the only viable solution that has a chance at a 3/5th vote on June 19th.
Comment by 47th Ward Friday, Jun 7, 13 @ 10:33 am
I’m trying to get my head around what the 16th floor is thinking in calling this session. I mean, it failed last year and without agreement will fail again. And since all he’s done so far is embarrass Madigan and strengthen Cullerton, I just don’t get it.
So I’m asking a serious question my fellow CapFaxers: can someone get inside their heads and share with me what they hope to accomplish.
Comment by Chicago Cynic Friday, Jun 7, 13 @ 10:34 am
Maybe if we had a governor who was involved, realistic, and steering the helm of the ship, this and other recent tete-a-tetes’s might not have occurred. I would like to hope so. Of course, such a governor would also hold a great deal of real power, which recent Illinois governor have had difficulty asserting in good and proper avenues.
Comment by ProblemChild21 Friday, Jun 7, 13 @ 10:34 am
Regarding the repeat Seinfeld episode of “A Special Session About Nothing:” Not entirely true. A better title would “The Governor Passes the Jacket to Madigan”
Comment by Truth teller Friday, Jun 7, 13 @ 10:35 am
===can someone get inside their heads and share with me what they hope to accomplish===
Remember the game of hot potato? Quinn just tossed it to the General Assembly. On June 19th, they will toss it back. The last one holding it when the state can no longer make payments or borrow more money loses the game.
Comment by 47th Ward Friday, Jun 7, 13 @ 10:38 am
If Quinn had shown just an once of leadership 2 or 3 months ago this conversation would not even be happening. Quinn is a buffoon.
Comment by Dan Shields, Springfield, Il Friday, Jun 7, 13 @ 10:45 am
As to what Rauner will do with this issue: I will need to hear Rauner’s thoughts, as a Republican and as a businessman, on the sanctity of contracts and debt, before he will have any credibility on this issue with me.
Comment by steve schnorf Friday, Jun 7, 13 @ 10:51 am
The GA focused to much time and efforts on the idea that pension reform means cutting pension benefits. It is now time to discuss the cost shifting proposal already agreed to by the universities and proposed by Madigan for TRS. Pay the pensions with the same money that pays the salaries.
Comment by Makandadawg Friday, Jun 7, 13 @ 10:53 am
Nothing will be passed and SB2404 will never be called. Fine by me.
Comment by Mouthy Friday, Jun 7, 13 @ 10:56 am
I think the house will call SB2404. It will pass. Then they will adjourn. Ball passed back to Quinn.
Comment by Cassiopeia Friday, Jun 7, 13 @ 11:04 am
Why wouldn’t you pass a bill that you know has a better chance of passing being SB2404, then try again to pass a bill being SB1 that will not pass? Better to pass a pension bill with some savings, then not pass one at all! Madigan jumps up and down and stamps his feet and says if you won’t pass mine then we won’t pass one at all!
Comment by Challenger Friday, Jun 7, 13 @ 11:07 am
Along the lines of what 47th Ward @10:33 recommended, Quinn could say explicitly in public that he want a compromise bill that combines SB2404 and additional savings from HB1154 (pension cap) and HB1166 (retirement age change for younger workers). This puts pressure on both chambers.
Comment by east central Friday, Jun 7, 13 @ 11:21 am
Anyone who thinks one bad optic news story is going to push the Speaker off his position clearly hasn’t been paying attention the last 11 years or so. The guy is less affected by negative press than any elected official in the state.
Comment by L.S. Friday, Jun 7, 13 @ 11:24 am
Yep, 47th Ward nailed it: “Quinn would help himself out quite a bit if he would say ‘pass the Cullerton bill and I’ll sign it.’”
Comment by Linus Friday, Jun 7, 13 @ 11:37 am
Don’t be so sure about SB2404 getting 3/5ths in easily the House.
Will every Dem vote for it? GOPers will resist it more than the Dems. Don’t forget SB1 was a major political risk for Dems, and had a lot of Republican ideas in it. It was truly bi-partisan, and support for SB2404 has not been.
They have two weeks to craft something better. Or the summer session will be a waste.
Comment by walkinfool Friday, Jun 7, 13 @ 11:43 am
===GOPers will resist it more than the Dems===
A majority of HGOPs voted against the MJM bill. Most of those will vote for the union bill.
Comment by Rich Miller Friday, Jun 7, 13 @ 11:45 am
===GOPers will resist it more than the Dems.===
Why do you think so, because it doesn’t go far enough? Maybe. SB1 was essentially the GOP/Tribune/Civic Committee/Ty Fahner approach and it barely got a simple majority with the Speaker putting his full weight behind it.
Lots of House GOPs don’t really want to upset their union member constituents. They talk a good game but when it comes time to vote against the unions, a lot of them disappear.
I don’t think 2404 is the final word on pensions by any means, but something needs to pass into law so the inevitable court challenges can begin. Let’s not forget that whatever passes will be challenged and we’ll have a two-year legal battle before we know what the courts think about this. Either bill could put us back to the drawing board, so getting that process started, even with a bill that is basically half a loaf, is better than waiting another year for the whole loaf to start the legal clock.
We’ve wasted 3 years already. I think the GOP wants this out of the way before the election too and they can make a good case that this forces union members to give up their sweet pensions.
Conservative voters will eat that up.
Comment by 47th Ward Friday, Jun 7, 13 @ 11:52 am
Demoralized — I could care less about who looks bad — they all look pretty much the same to me. Maybe having them “chained” to their desks until a solution is agreed. Maybe frustration and exhaustion is what it takes to force compromise. Nothing else has worked.
Comment by Out Here In The Middle Friday, Jun 7, 13 @ 12:08 pm
=== This order carries the added risk of highlighting Quinn’s ineffectiveness in working the levers of power ===
Perhaps there would be a plan for session if the three leaders did a better job of communicating and working together.
It’s kind of hard to put the onus on one individual when it takes a triumvirate to get things done.
Comment by Formerly Known As... Friday, Jun 7, 13 @ 12:18 pm
Read Moody’s downgrade. They are concerned about unpaid bills and the legality of pension reform.
Rating Action: Moody’s downgrades State of Illinois’ $27 billion of General Obligation Bonds to A3 from A2
Global Credit Research - 06 Jun 2013
Negative outlook maintained; related debt ratings also lowered, affecting $32 billion in total
New York, June 06, 2013 — Moody’s Investors Service has downgraded the State of Illinois’ $27 billion of outstanding general obligation bonds to A3 from A2 and maintained the state’s negative outlook. As a consequence of this action, we have also downgraded by a notch the ratings on related credits, which currently have about $5 billion in outstanding debt.
SUMMARY RATING RATIONALE
The Illinois General Assembly on May 31 concluded its session without addressing the severe pension liabilities that are the state’s greatest credit challenge. Our rating now assumes the government will not take action to reduce the state’s pension liabilities any time soon. The legislature’s political paralysis to date shows not only the magnitude of Illinois’ unfunded benefit liabilities, but also the legal and political hurdles to legislation that would make pensions more manageable long term. Without significant reforms, substantial growth in both unfunded liabilities and in annual funding burden are likely in coming years. This trend may coincide with the expiration of most of the income tax increases the state imposed in fiscal 2011 to help cover pension costs. As a consequence, its payment backlog will likely remain large, despite some recent signs of improvement. An A3 rating, while very low for a US state, is consistent with the General Assembly’s inability to steer the state from a path to fiscal distress. Illinois still has a diverse and large economic base, with above-average wealth levels.
STRENGTHS
–Sovereign powers over revenue and spending
–Statutory provisions giving priority to debt service over other state expenditures
–Large, diverse, and wealthy economy
CHALLENGES
–Severe pension funding shortfall
–Chronic use of payment deferrals to manage operating fund cash
–Long-term weak management practices reflected in pension under-funding and bill payment delays
OUTLOOK
The negative outlook reflects our expectation that Illinois’ pension liabilities will continue to grow, in the absence of substantive reform efforts, and that annual funding requirements will become unmanageable, particularly if no steps are taken to address the loss of revenue from expiring income tax increases in 2015.
WHAT COULD MAKE THE RATING GO UP
- Implementation of a credible, comprehensive long-term pension funding plan
- Substantial progress in reducing payment backlog, with adoption of a legal framework or plan to prevent renewed buildup of bills
WHAT COULD MAKE THE RATING GO DOWN
- Failure to address impending revenue loss from partial sunset of 2011 tax increases
- Significant further deterioration in pension funded status
- Failure to make legally required pension contributions in full
- Evidence of difficulty accessing the capital markets
Comment by Liberty First Friday, Jun 7, 13 @ 2:15 pm
To expand on the sanctity of contracts and debt -the apparent focus on which bill “saves” more seems to lose this moral and legal compass.
Comment by archimedes Friday, Jun 7, 13 @ 2:34 pm
47th Ward hits the nail on the head:
=== Quinn would help himself out quite a bit if he would say “pass the Cullerton bill and I’ll sign it.” Clear, concise and targeted to the only viable solution that has a chance at a 3/5th vote on June 19th. ===
Of course, if Quinn did that, the odds of SB2404 going for a vote in the IL House might actually go down.
Could SB1 versus SB2404 become a contentious issue in the March 2014 Democratic primary?
Comment by Bill White Friday, Jun 7, 13 @ 2:53 pm
=== - L.S. - Friday, Jun 7, 13 @ 11:24 am:
Anyone who thinks one bad optic news story is going to push the Speaker off his position clearly hasn’t been paying attention the last 11 years or so. The guy is less affected by negative press than any elected official in the state. ===
You missed the point. The point was that in light of the bad video, Quinn’s plan or thought process may be that the SS may help with His positives at Madigan’s expense. I don’t believe the situation will change Madigan’s position, nor do I believe anything will come out of the SS.
Comment by Norseman Friday, Jun 7, 13 @ 3:26 pm
Pulling together the Special Session is just too darn important and immense to NOT at least TRY in good faith to accomplish the passage of some Compromise Bill. Note the key phrase: “in good faith.” It’s actually very responsible and reflects real Leadership on the Governor’s part, despite those would scrounge up all KINDS of reasons not to bother which only would make matters worse in BOTH the short, and, long run…!
Comment by Just The Way It Is One Friday, Jun 7, 13 @ 4:18 pm