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* Mary Ann Ahern on SB 1, the school funding reform bill that hasn’t yet been sent to the governor…
Sources tell NBC 5 that the governor may opt not to veto all of it, but may instead choose to use an amendatory veto on provisions involving a pension fix for the city of Chicago.
While House Speaker Mike Madigan was able to corral the votes, including numerous Republican defectors, to override Rauner’s veto of the budget bill, doing so on SB-1 may be a much harder sell.
If he just vetoed the Chicago stuff, it would, indeed, make an override more politically difficult. I think they’re looking at other options.
* There are other problems, including these…
The Democratic plan would provide more money to all school districts, with CPS getting at least $286 million more for pensions and general state aid. The competing Republican plan would take away grant money going to CPS and spread it to suburban and downstate districts, with city schools seeing either a $38 million funding cut or $177 million in additional money, depending on whether pension help materializes.
Adding to the complicated dynamics: Rauner’s recent decision to replace his senior staff with people from a conservative think tank that opposes the underlying concept of both school funding formula bills. That means the governor’s office could end up being an incubator for a third competing plan, albeit one that would have the greatest difficulty winning buy-in from lawmakers at the Capitol.
* The Pritzker campaign dug down a bit…
With an influx of new radical staff coming directly from the Illinois Policy Institute, it’s worth taking a look at where the right-wing propaganda machine stands on this bill.
A March 2017 post on their website declares, “evidence-based education funding doesn’t work.” After the bill passed, they posted another article urging Rauner to veto the bill and perpetuating the myth that it is a Chicago bailout.
Rauner and the new far-right members of his administration staunchly opposing SB 1 — legislation that will allow schools to open in the fall — leaves the state on the verge of a new crisis. .
…Adding… I forgot to post this comment by Chris Kennedy…
“When you have a track record as bad as the governor’s, you need to create something to alarm people,” Democratic gubernatorial candidate Chris Kennedy said. “He’s taking a page out of Donald Trump’s book, a page of divide and conquer and hatred. He wants to separate our state and say that downstate is against Chicago.”
*** UPDATE 1 *** From Emily Bittner at CPS…
Rich:
Three points on the Trib’s stories on ed funding this morning.
1 - The state increased funding for downstate and suburban teacher pensions by $500M this year alone and no one in Chicago called that a “downstate bailout.” The VAST majority of this money is going to the state’s unfunded liabilities, i.e, making up for the State’s own past skipped payments, which were more severe than Chicago’s.
From TRS on next year’s increase for downstate and suburban teacher pensions: “The total projected employer contribution for 2018, including State, Federal, and School Districts, is $4.72 billion. Of this amount, $1.05 billion, or about 22%, is for the employer portion of the normal cost and 78% is for unfunded actuarial accrued liability. The required State contribution for 2018 is $4.56 billion, an increase from $3.99 billion for 2017.”
In other words, 78 percent of this underfunding is directly because of past underfunding from the state – exactly what the Republican objection to funding Chicago teacher pensions is. Pretty hypocritical to fund suburban and downstate unfunded pensions but not fund Chicago’s lesser liability.
2 - Downstate and suburbandistricts are feeling tremendous pressure and uncertainty about whether they’ll open on time and stay open. I want to reiterate the mayor’s point that CPS is opening on time and staying open.
3 - Deep in the main bar on SB1 is this important point: if school funding were treated equally, Chicago students would get about $500M more from the state.
From the Trib: Republicans count only general state aid and grant funding, which includes the extra $250 million for CPS. Viewed through that lens, CPS gets 23.6 percent of all the money the state provides for K-12 education, even though the district’s nearly 382,000 students represent just 18.8 percent of Illinois public school students.
But city school officials say that calculation is misleading because it fails to include what the state spends on teacher pensions. That’s $4 billion, about a third of the total education pie. Include that money, and CPS gets just 15.3 percent of state education dollars.
CPS CEO Forrest Claypool said he’d gladly give up Chicago’s extra grant money if the state covered his district’s pension costs the same way it does for other school districts.
“Pension subsidies are no different than general state aid or any other form of educational assistance,” Claypool said during a recent interview. “They all go to the same thing, primarily paying for the salaries and retirement benefits of teachers.”
That Claypool would make that trade is not so surprising. The math shows that CPS would have received about $500 million more from the state during the last school year. (emphasis mine.)
This single point cuts through the confusion and clutter on education funding – if you add up all the sources of funding and treat all the districts the same, Chicago students are getting dramatically shortchanged by $500 million. This is grossly unfair, but all the more pernicious because of its racial implications–which are at the core of CPS’ civil rights lawsuit.
Thanks,
Emily
*** UPDATE 2 *** From Adam Collins in the mayor’s office…
We’ve known for a while that the governor didn’t care about the social safety net for those living in poverty around the state, but we hoped he might still care about the education of black and brown children living in poverty around the state. Guess that’s out the window now too as Rauner pivots from the right-wing to the far right-wing.
posted by Rich Miller
Thursday, Jul 13, 17 @ 9:28 am
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Again with the “new radicals”? That is sooo 1998.
Comment by City Zen Thursday, Jul 13, 17 @ 9:39 am
I hope that he vetoes it, the override fails, and schools don’t open. Can’t think of a quicker way to get rid of him…
Comment by downstate commissioner Thursday, Jul 13, 17 @ 9:57 am
It won’t be dorm-room debate club if some schools can’t open. Ideological sophistry won’t cut it with impacted parents.
Comment by wordslinger Thursday, Jul 13, 17 @ 9:59 am
veto the bill blame, Madigan and the rest of the world..when schools don’t open, maybe Blago with money will finally be on his way out..
Comment by Not Rich Thursday, Jul 13, 17 @ 10:01 am
With a budget bill finally passed that at least ended one crisis so it’s time to create another one. That’s one thing Rauner is good at. Crisis creates leverage!
Comment by The Dude Abides Thursday, Jul 13, 17 @ 10:06 am
If schools don’t open, Rauner will reinforce his image and reputation as the worst governor ever. Making schools not open would be his only accomplishment as governor, he would be remembered for that forever.
Comment by DuPage Thursday, Jul 13, 17 @ 10:10 am
That Olney pizza party may be Rauner’s last fuzzy-feel good school junket. The IPIes can be smug about their ideology, but if schools don’t open or open and then close before December, it’s not Madigan the parents will be blaming.
Comment by Anon221 Thursday, Jul 13, 17 @ 10:17 am
Veto the Chicago portion and put the dems in a trick box?
Sounds like a Win-Win for the Gov’s Symphony of Destruction.
Comment by Dee Lay Thursday, Jul 13, 17 @ 10:18 am
Rauner needs to do the line item veto. Then he can pull an end of session Madigan and proclaim his work is “done”.
Comment by Curl of the Burl Thursday, Jul 13, 17 @ 10:21 am
@wordslinger - Exactly.
Comment by Robert J Hironimus-Wendt Thursday, Jul 13, 17 @ 10:22 am
Curl of Burl — a line item veto is for appropriations. Anyway, a line item veto requires only a simple majority to override. Overriding one that whacks Chicago might not be so hard.
Comment by Whatever Thursday, Jul 13, 17 @ 10:34 am
Whatever - nope. Check out this article from Laura Tomaka of CSG Midwest: http://www.csgmidwest.org/policyresearch/0915-veto-powers.aspx.
Comment by Curl of the Burl Thursday, Jul 13, 17 @ 10:38 am
An OVERRIDE of an amendatory veto requires a 3/5 vote.
To ACCEPT the amendatory veto requires only a majority vote.
Comment by winners and losers Thursday, Jul 13, 17 @ 10:47 am
–”He wants to separate our state and say that downstate is against Chicago.”–
Or Downstate *is* against Chicago - or alternatively the suburbs are fine with a “Detroit-lite” model where the metro area is fine but the city suffers rather than open their wallets and support the city.
Comment by lake county democrat Thursday, Jul 13, 17 @ 10:53 am
This clarifies what a misapprehension it is to call SB1 a CPS bailout. Now that they know the truth, to repeat the bailout charge constitutes a vicious lie.
Comment by anon2 Thursday, Jul 13, 17 @ 10:59 am
Art. IV, Section 9(e) of the Illinois Constitution provides for amendatory vetoes:
“The Governor may return a bill together with
specific recommendations for change to the house in which it originated. The bill shall be considered in the same manner as a vetoed bill but the specific recommendations may be accepted by a record vote of a majority of the members elected to each house.”
9(d) provides for line item vetoes:
“The Governor may reduce or veto any item of
appropriations in a bill presented to him. Portions of a bill not reduced or vetoed shall become law. An item vetoed shall be returned to the house in which it originated and may become law in the same manner as a vetoed bill. An item reduced in amount shall be returned to the house in which it originated and may be restored to its original amount in the same manner as a vetoed bill except that the required record vote shall be a majority of the members elected to each house. If a reduced item is not so restored, it shall become law in the reduced amount.”
Comment by Whatever Thursday, Jul 13, 17 @ 11:04 am
When determining CPS’ fair share, the normal cost for pension contributions should be included. Accrued liabilities should not be included.
The state already gave CPS the money to pay their pensions, but Daley took that money (block grants) and spent it elsewhere. The CPS/CTPF liability lies entirely on Chicago’s shoulders.
Comment by City Zen Thursday, Jul 13, 17 @ 11:08 am
Is Adam Collins on official payroll, or on a campaign staff somewhere? That kind of ridiculous political drivel has become so pervasive. He says nothing but slogans from left-wing campaign rallies. Next thing you know they’ll say, “Sign SB1 or people will DIE.” Who decided that the new communications role model should be Karen Lewis? Insufferable.
Comment by Press-Shop Thursday, Jul 13, 17 @ 11:10 am
Excellent. Wait until the last moment - maybe mid August then put the blame on him. But since he live in lala land, I don’t think it will phase him. But it will be a good time to fire more people.
Comment by Dr X Thursday, Jul 13, 17 @ 11:11 am
==CPS gets 23.6 percent of all the money the state provides for K-12 education, even though the district’s nearly 382,000 students represent just 18.8 percent of Illinois public school students==
Some would call that manipulation of the formula. Chicago has had a completely separate pension system, and Illinois has NEVER included the pension cost of districts outside of Chicago in the percentage comparison of State funding.
Comment by winners and losers Thursday, Jul 13, 17 @ 11:15 am
winners and losers, actually in the past payments to TRS were often counted by past Governors as part of education funding. Look back at some of Edgar’s budgets, and he would tout increases in funding for education, and a lot of those increases were increases in the TRS contribution. It was under Rod when that generally stopped being the practice.
Comment by Juice Thursday, Jul 13, 17 @ 11:23 am
=The state already gave CPS the money to pay their pensions, but Daley took that money (block grants) and spent it elsewhere. The CPS/CTPF liability lies entirely on Chicago’s shoulders.=
Ummm…but TRS is absolved of the State spending its pension money elsewhere?? So the State keeps downstate district’s whole because of its underfunding but not Chicago’s, which is less? Transparently hypocritical, especially given the State’s admitted but ignored statutory commitment to fund CPS pensions equally with TRS.
Comment by Upstate Thursday, Jul 13, 17 @ 11:25 am
We need to stop educating our children. to make america great we need to increase uneducated low wage populatiin memebrs until we can run factories on 5 a month salaries. schools just stand in the way of this greatness… that and oaying middle class wages and retirement benefits.
Amendatory Veto language: “let them eat cake.”
Comment by Ghost Thursday, Jul 13, 17 @ 11:51 am
Juice - Yes, you are correct that K-12 increases were due largely to pension increases (and presented in a misleading way), but that was not later translated into saying the State was paying a larger percentage of the costs of K-12.
Comment by winners and losers Thursday, Jul 13, 17 @ 11:54 am
=When determining CPS’ fair share, the normal cost for pension contributions should be included. Accrued liabilities should not be included.
The state already gave CPS the money to pay their pensions, but Daley took that money (block grants) and spent it elsewhere. The CPS/CTPF liability lies entirely on Chicago’s shoulders+
This is spot on. Good post. They shouldn’t be denied pension equity but past liability (underfunding) is theirs alone since they were given money to offset their choice to stay separate from TRS.
= Transparently hypocritical, especially given the State’s admitted but ignored statutory commitment to fund CPS pensions equally with TRS. =
No and no.
Comment by JS Mill Thursday, Jul 13, 17 @ 12:00 pm
With Rauner’s tact fo the extreme right, I doubt any school reform will pass. There will be no acceptance of an amendatory veto and the framing of the bill as a CPS bailout makes it improbable for GOP override support.
Comment by Norseman Thursday, Jul 13, 17 @ 12:15 pm
I know OW says governors own, and therefore would own the damage caused by a veto of SB1. However, my Facebook newsfeed has otherwise intelligent people still screaming in outrage about the budget and tax increase. People who believe the websites and haven’t bothered to understand the budget was less than we’ve been spending. People who don’t do math and who think magic beans will wipeout our bill backlog. People who probably dont pay much in state taxes. I cause their income comes from social security, pensions and IRA distributions. So i am not sure that Governors own after all.
I sincerely hope the 15 GOP members are going around the Gov for the next year and a half.
Comment by Thoughts Matter Thursday, Jul 13, 17 @ 12:21 pm
With great respect,
===I know OW says governors own, and therefore would own the damage caused by a veto of SB1.===
If schools don’t open, it won’t just be Chance the Rapper that may hold Rauner fully responsible, as only a governor can veto.
That’s a tough sell…
“I vetoed it, sure, but it’s not my purposeful veto that forced schools not to open… when it was my veto that caused it… but… ”
Hmm.
Again, with respect.
Comment by Oswego Willy Thursday, Jul 13, 17 @ 12:25 pm
Because both parties shorted their respective pension obligations, the math gets confusing and easy to spin in a manner to support one’s own desired outcome.
If CPS taxpayers are to be held fully accountable for their pension funding shortfall, then they should not be required to pay any amount for the State’s failure to fund TRS; taxes could be rebated based on CPS tax base % contribution to gross state product/tax revenue. But all of this is too complicated and should be resolved in a manner resulting in equitable funding looking forward rather than weak justifications for past missteps. SB1 fits that bill.
Comment by Markus Thursday, Jul 13, 17 @ 12:28 pm
Maybe the Cubs and White Sox coming together today to make a mutually beneficial trade is a harbinger for bi-partisan compromise on SB1…
Who am I kidding, even though I like 90% of that trade it’s clearly just a Chicago fan bailout and doesn’t help downstate Cubs and Sox fans!
Comment by On the other hand Thursday, Jul 13, 17 @ 12:34 pm
Ow- you do not have to worry about me thinking you are disrespectful because you think people will assign blame to the Gov. I’m oraying that you are right. I’m just worried because my Facebook friends haven’t seemed to add 2 and 2 correctly yet.
Comment by Thoughts Matter Thursday, Jul 13, 17 @ 12:50 pm
Praying is what I meant. Fat fingers - small phone keyboard
Comment by Thoughts Matter Thursday, Jul 13, 17 @ 12:51 pm
- Thoughts Matter -
There’s a year to go, heck, it’s not even August.
Time may not be Rauner’s friend.
Thanks, and glad you understand.
A year is a long time.
Comment by Oswego Willy Thursday, Jul 13, 17 @ 12:58 pm
As someone who grew up downstate and now lives in (and loves) Chicago, this over-the-top “divided state-baiting” being done by the Governor is sickening.
Comment by Left Leaner Thursday, Jul 13, 17 @ 3:51 pm
I really wish Rauner hadn’t been elected, not because I disagree with all his policies (I don’t), but because it gives so many people someone to blame for all of our woes in Illinois. Madigan and Cullerton are largely responsible, and the unbelievably generous and unsustainable pensions for government employees have been a problem that they simply refuse to address in a meaningful way. Dig a hole in the sand and stick your head in it so you don’t have to see all the businesses and residents continue to flee this state. Illinois is an over taxed state based on any independent study you look at, but some people always want more. Chicago gets closer to imploding every year, and those poor people better enjoy increased real estate taxes, because Rahm has developed an insatiable appetite for them. He’ll find a way to tax you for breathing the air and using the restroom if he can. Sooner or later, you run out of other people’s money. Even JB’s billions won’t be enough.
Comment by Fredo Corleone Thursday, Jul 13, 17 @ 4:16 pm
“the unbelievably generous and unsustainable pensions for government employees have been a problem that they simply refuse to address”
No. They are actually middle of the road packages. You’ve been conditioned to think otherwise. The problem is decades of shorting the pension funds coupled with 2 recesions. The pension SB1 of a few years ago which was struck by the courts, creating Tier 2 pensions for future hires, and this new Tier 3 is not the definition of “refuse to address”. This is a debt problem, not a benefits package problem. Unless you just hate state employees and believe that all public sector workers deserve to be just as shafted as the private sector workers who were forced to move into 401k plans that were never designed to be someone’s sole source of retirement funds. The vast majority of Illinois pensioners retire on less than $39,000 a year and the teachers don’t get social security. That’s not unbelievably generous.
“Illinois is an over taxed state based on any independent study you look at,”
Nope. There are plenty of studies that show state tax comparisons that say otherwise. Now property taxes are a whole other issue that we should all be screaming about but still comes back to the fact that that Illinois doesn’t tax enough income to relieve the property tax education funding burden. But we can all cherry pick “studies” to match our own bias. Independent studies don’t say we are the most overtaxed state. We’re actually middle of the pack.
Comment by Sideline Watcher Thursday, Jul 13, 17 @ 4:42 pm
Sideline Watcher, well said.
Comment by Norseman Thursday, Jul 13, 17 @ 4:50 pm
To paraphrase an old adage: “If it falls on you (Rauner or the Dem caucus majorities) to explain why the schools are not opening, you’re losing.”
Comment by Colin O'Scopey Thursday, Jul 13, 17 @ 4:51 pm
==No. They are actually middle of the road packages. ==
Actually, AEI did a country-wide study a couple of years ago ranking the cost of public-employee compensation packages relative to private-sector standards within their state. Illinois ranked in the highest/most costly category.
Comment by City Zen Thursday, Jul 13, 17 @ 5:21 pm
I didn’t say Illinois is the most over taxed state. To say that the combined state sales tax, real estate taxes and income tax does not place Illinois among the highest states in terms of taxes would be delusional. As for the pensions, sorry, they are generous. I hear it from prople I know well who are collecting those pensions. They are happy as can be.
The manner in which many of those pensions are calculated is ridiculous, incuding rapid ramp ups in salary in later years to ensure a big payout. Sounds generous to me. I could go on, but to what end?
Comment by Fredo Corleone Thursday, Jul 13, 17 @ 5:45 pm
Fredo, those “rapid ramp ups” are now capped at 6% unless the school district pays the freight.
Comment by Arthur Andersen Thursday, Jul 13, 17 @ 7:57 pm
City Zen- In that study you reference, Illinois public employees with a bachelors degree earned 18% less in wages than their peers in the private sector. When you pay people below market wages, you need to entice them with good benefits to have a chance at attracting quality employees. Before the last recession, not many people were willing to make that trade. While less than BA wages were competitive, I don’t think at their salaries that their pensions are the issue.
Comment by Markus Thursday, Jul 13, 17 @ 8:14 pm
Markus - The comment was “middle of the road packages”. Compared to other states, that is certainly not the case.
I’m unable to find your “18% less in wages” reference for BA’s in Illinois, but if you’re only referencing wages, that’s not the whole picture. The study does note those with less of an education than a BA get the most benefits. But all that tells me is the lesser educated co-workers are taking a larger share of the pie that belongs to the BA’s. If those BA’s want more, they know who to ask.
Comment by City Zen Thursday, Jul 13, 17 @ 9:06 pm
City Zen- The -18% applied to all States, not just Illinois and was wages only. The benefits analysis in that report drove the bulk of the “overpayment” argument, mainly Tier 1 pensions which do not exist anymore. In 2013, UIUC published a study that concluded Illinois public employee wages were more than 30% lower than in the private sector and the total compensation package comparable to other states. “Middle of the Road” was the case according to U of I. https://ler.illinois.edu/wp-content/uploads/2015/01/Working-in-Illinois-Public-Interest_Bruno-Manzo.pdf
Comment by Markus Friday, Jul 14, 17 @ 9:09 am
Depending on position, the pay differential can be very very high. As in less than 50% of peers in private industry with same skill sets, especially in the IT field. With now crappy pension benefits and very sub-standard pay rates, those types of positions are exceedingly difficult to fill. And what ends up happening is you train them and about the time they get good, they leave to make more money outside. Its worse now in the tight labor market.
Comment by Anonamouse Friday, Jul 14, 17 @ 10:05 am