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Pritzker roundup: Private schools; Inauguration; Cannabis legalization; Jobs; Rauner

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Illinois

Empower Illinois is a tuition tax credit program the legislature approved in 2017 as part of a state education funding overhaul. The program encourages donations to private schools by offering donors a 75-cents-on-the-dollar tax credit on their Illinois income taxes. Critics of the program have excoriated it as a diversion of tax money from public schools (not true) and an exclusive tax write-off for rich people (also not true). […]

Gov.-elect J.B. Pritzker does not support the tax credit program. On the campaign trail he said he would “immediately” move to repeal it. He believes the tax credits hurt public education by diverting dollars that could be earmarked for those schools. Yet he exerts school choice, and that’s fine: His own children attend one of the nation’s premiere private schools, Francis W. Parker in Lincoln Park, not their neighborhood CPS school.

We urge the incoming governor and members of the General Assembly to think less about public-private rivalries and more about students who have different needs and should have different choices. Illinois lags most states in offering options outside the public school system. Affluent families have school choice. It’s the low-income families trapped by their ZIP codes in marginal public districts who do not. And they don’t have years to wait for their public schools to improve.

* Finke…

Pritzker said the tax breaks for private school scholarships essentially diverts tax resources from public schools.

“Money that could go to public education is being diverted,” he said. “It’s better to put those dollars in public schools.”

Although Pritzker wants to end the program, he said it should be done in a way that doesn’t disrupt families already taking advantage of it.

* Meanwhile, on to the inauguration. WJOL…

Illinois’ incoming governor is going to pick up the tab for his inauguration. Governor-elect J.B. Pritzker yesterday said that he will pay for the full cost of his swearing in, and the two days of celebrations leading up to it. Pritzker will take the oath of office on January 14th.

* More…

Some of the Pritzkers’ closest pals and confidantes are on the committee, including, Lee “Rosy” Rosenberg, chief of staff at the Pritzker Group and an adviser to Pritzker on the campaign; businessman Michael Sacks and Cari Sacks; businesswoman Linda Johnson Rice; Marko Iglendza, CEO and Founder of Terminal Getaway Spa, and Neal Zucker, CEO and co-founder of Corporate Cleaning window cleaners; and businesswoman Desiree Rogers, who oversaw 330 White House functions while she was social secretary in the Obama administration. […]

The rest of the committee consists of members from a broad and diverse swath—nonprofits, business, upstate, downstate. They include: Obama Foundation President Martin Nesbitt; real-estate developer Elzie Higginbottom and his wife, Deborah; high-end boutique owners Ikram and Josh Goldman; lobbyist Loretta Durbin (wife of U.S. Sen. Dick Durbin); educator Barbara Bowman (she’s Valerie Jarrett’s mom); activist Emma Lozano; media exec Eve Rodriguez Montoya; community leader Felicia Davis; nonprofit leader Sol Flores; Illinois Business Immigration Coalition’s Rebecca Shi; LIUNA labor President Nicole Hayes; and businessman Skip Braziel and Erica Annise Braziel.

Politicos on the committee: former Gov. Jim Edgar and his wife, Brenda; Illinois Democratic County Chairs’ President Kristina Zahorik; Chicago Housing Authority Board Chair John Hooker; Highway Commissioner Calvin Jordan and his wife, Lori; former Congressman Glenn Poshard and his wife, Jo; St. Clair County Auditor Patty Sprague and attorney Bob Sprague; former state Rep. Lauren Beth Gash and Studio Gang Principal Gregg Garmisa; North Aurora Village Trustee Mark Guethle and his wife, Louise; and Wanda Rednour, wife of the late John Rednour, a former Du Quoin mayor.

* Let’s move now to cannabis legalization…

Pritzker says he’s already been working out the details with legislators.

“There’s an opportunity for us to be the first state in the Midwest to make it available, and so I think the legislature should get at it,” Pritzker says.

Michigan legalized recreational marijuana last month by referendum. But the state legislature there is looking at rewriting what the voters approved — lowering the tax rate, changing where that money is spent, and banning home-grown plants.

“The good news about being eighth or ninth to get this done is we can look at what works and put it in place in Illinois,” Pritzker says.

* Pritzker isn’t governor yet, but he attended his first jobs announcement today…

JPMorgan Chase announced Wednesday that it was committing $10 million to Chicago’s South Side and its West Side as part of its five-year, $500 million AdvancingCities initiative.

CEO Jamie Dimon made the announcement in Chicago and was joined by the Chicago Community Loan Fund’s president, Calvin Holmes, and Governor-elect J.B. Pritzker. JPMorgan’s investment will be through long-term commercial real estate loans with low interest rates, distributed by the CCLF. The goal is to promote development in underserved neighborhoods where access to grocery stores and other retailers is significantly lower than it is elsewhere in the city.

* More…

The Chicago Community Loan Fund is receiving its largest capital investment to date: a $10 million low-cost, long-term loan from JPMorgan Chase.

The loan is designed to boost the Chicago nonprofit lender’s work financing small-business and commercial development on Chicago’s South and West sides — particularly projects that might struggle to get financing at traditional financial institutions, Chase said Wednesday.

CCLF expects to begin using the loan to fund projects in the first quarter of 2019, Chief Operating Officer Bob Tucker said. There are about 16 commercial real estate projects in the organization’s pipeline that could benefit, including entertainment, healthy food and retail businesses and tech hubs in neighborhoods like Bronzeville, Englewood, Pullman, Woodlawn, West Humboldt Park and Austin, Tucker said.

* And finally…

Gov. Bruce Rauner is urging the incoming administration to continue his work in rooting out waste, fraud and abuse in the state’s Medicaid system, and to clarify rules for state workers who belong to the same union as the employees they supervise.

Rauner said both issues cost taxpayers “hundreds of millions of dollars every year.”

The governor’s office said its Health Care Fraud Elimination Task Force saved $218 million while the Department of Healthcare and Family Services Inspector General saved or recouped $190 million in fiscal 2018.

“The effort resulted in 39 fraud convictions including $27.8 million in recoveries through criminal prosecutions, civil actions, and/or administrative referrals,” according to a statement from Rauner’s office. “The task force has saved the state more than $665 million since its inception in 2016.”

posted by Rich Miller
Wednesday, Dec 12, 18 @ 3:13 pm

Comments

==Gov. Bruce Rauner is urging the incoming administration to continue his work ==

Good luck with that. Dude, you failed miserably as Governor and here you are in the last hours flailing away still. Enough already.

Comment by Demoralized Wednesday, Dec 12, 18 @ 3:17 pm
And I’m all for ensuring waste and fraud are ferreted out of the Medicaid program but if that’s what you are grasping on to as you go out the door as a legacy to be continued you really are running short on accomplishments.

Comment by Demoralized Wednesday, Dec 12, 18 @ 3:19 pm
Good start JB!

What does JB stand for?

Jobs and Business!

Comment by Precinct Captain Wednesday, Dec 12, 18 @ 3:20 pm
The governor’s own executive order creating the fraud task force sunsets it next June. They’ve issued some interim reports and should have a final. Worthwhile ideas may well be implemented, but the drive to eliminate “fraud” can also delay payments for worthy claimants and should be implemented with an eye toward fairness, not just cost savings.

Comment by Anonymous Wednesday, Dec 12, 18 @ 3:34 pm
I love that marijuana legalization efforts will hit the ground running, and that state models are being studied.

Comment by Grandson of Man Wednesday, Dec 12, 18 @ 3:39 pm
Prediction—JB will be a whirlwind of activity and talk(at least for awhile) and little will be accomplished that will help taxpayers and families.

He will become overwhelmed 6-12 months into his term.

Comment by Anonymous Wednesday, Dec 12, 18 @ 3:56 pm
===…little will be accomplished that will help taxpayers and families.

He will become overwhelmed 6-12 months into his term.===

Rauner set such a low bar, even that would be a success in a Rauner world, lol

Oh… we’re all taxpayers. You’re welcome.

Comment by Oswego Willy Wednesday, Dec 12, 18 @ 3:58 pm
When your online Medicaid enrollment system crashes and thousands of eligible Illinoisans lose their food stamps and other entitlements, you are not allowed to count that as “savings from Medicaid fraud”.

Comment by BobO Wednesday, Dec 12, 18 @ 4:11 pm
Empower Illinois is a well connected group profiting off the 2017 Invest In Kids credit program. Not a shock that the Trib is uninterested in understanding what is actually happening.

Comment by notsosure Wednesday, Dec 12, 18 @ 4:12 pm
Here’s hoping JB is considering an executive order requiring all commenters to have a name.

Comment by don the legend Wednesday, Dec 12, 18 @ 4:13 pm
Other then the opposition by teacher unions- why do Dems nearly universally oppose charter schools and/or allowing minorities the opportunity to get private school subsidies? Amusingly, it was reported that the only reason Andrew Gillum lost in Florida is because 100 thousand Black moms voted for the R solely because Gillum opposes charter schools. Public schools need competition and now we will see Rauner’s subsidy program aimed at minorities coming to an end

Comment by Sue Wednesday, Dec 12, 18 @ 4:16 pm
=Prediction—JB will be a whirlwind of activity and talk(at least for awhile) and little will be accomplished that will help taxpayers and families.=

If he shows even a passing interest in governing he will be considered a success compared to his predecessor. As OW points out, low bar to hurdle there.

Comment by Pundent Wednesday, Dec 12, 18 @ 4:16 pm
==Other then the opposition by teacher unions-==

Here we go again. It’s all about the unions. You really have a one track mind.

Comment by Demoralized Wednesday, Dec 12, 18 @ 4:19 pm
==it was reported that the only reason Andrew Gillum lost in Florida is because 100 thousand Black moms voted for the R solely because Gillum opposes charter schools==

I’d love to see the direct evidence backing up that statement. Sounds like more crack pot nonsense to me.

Comment by Demoralized Wednesday, Dec 12, 18 @ 4:20 pm
==Pritzker said the tax breaks for private school scholarships essentially diverts tax resources from public schools.==

CPS spends more on their teacher pension pick-up than the state spends on this tax credit program.

What percentage is this program against the overall state spend on lower education? 1-2%? I suppose every dollar counts these days.

Comment by City Zen Wednesday, Dec 12, 18 @ 4:20 pm
==CPS spends more on their teacher pension pick-up than the state spends on this tax credit program.==

What exactly is your point? The amount is irrelevant. It’s a difference in philosophy. Some, myself included, don’t believe its appropriate to be using state funds (which is what they are doing with the tax break; it’s a tax expenditure) for private schools.

Comment by Demoralized Wednesday, Dec 12, 18 @ 4:24 pm
I sure hope Illinois doesn’t follow Michigan and attempt to act in opposition of the voting public’s rightful desire to grow their own marijuana plants.

Shame on Michigan Republicans for attempting to wrongly undo the will of the voting public.

Comment by Anonymous Wednesday, Dec 12, 18 @ 4:25 pm
==why do Dems nearly universally oppose charter schools and/or allowing minorities the opportunity to get private school subsidies?==

Because we think that money should be used to improve public schools.

==Public schools need competition==

And you excpect the government…which funds and manages the public schools…to also fund this competition?

Do you think Coke needs to subsidize Pepsi, too?

Comment by Arsenal Wednesday, Dec 12, 18 @ 4:26 pm
“Rauner said managers make less than the employees they supervisor and instead should be paid based on merit.” Apparently Rauner is completely clueless on the pay issue. Union managers are in a better pay scale now than when they were merit comp and once they reach their top step they will get more than those they supervise. Rauner of course illegally froze steps and hasn’t negotiated a new contract for union managers. After four years you would think Rauner would have some clue about state employee issues. I certainly haven’t heard any merit comp people bragging about the big pay raises Rauner gave. And whatever happened to that bonus he promised them?

Comment by A Jack Wednesday, Dec 12, 18 @ 4:31 pm
==once they reach their top step they will get more than those they supervise==

And they’ll also receive more (sometimes substantially) than those who supervise them.

If I were in their situation I would have definitely sought to join the union. And, though I personally believe their inclusion in the union is inappropriate the way the Governor is going about the process as he heads out the door is a bit ridiculous.

==And whatever happened to that bonus he promised them?==

It was one time. I guess he just forgot.

Comment by Demoralized Wednesday, Dec 12, 18 @ 4:40 pm
Good to see that Pritzker is prioritizing getting cannabis legalization passed quickly. Makes a lot of sense with Michigan legalizing. The previous bills proposed in Illinois by Cassidy and Steans had home growing allowed (5 plants) so I would be surprised if that is still not the case.

Comment by Illinois Resident Wednesday, Dec 12, 18 @ 4:52 pm
The state goal is to educate children. Whether this is done in public or private schools should not matter.

DCFS protects children using private companies. How is this different?

Comment by Last Bull Moose Wednesday, Dec 12, 18 @ 5:40 pm
–Public schools need competition and now we will see Rauner’s subsidy program aimed at minorities coming to an end–

How, exactly, was the scholarship program “aimed” at minorities? Are you talking about those who can run a 4.4 forty or dunk?

And it’s not like the Catholic League philanthropists stepped up to the plate. They left about $60 million on the table from the pilot program, even with a 75 cents on the dollar tax credit.

Meanwhile, in my neighborhood, the former CEO of McDonald’s this year gave $3 million to Fenwick to tear down two apartment buildings (off the tax rolls) to build a parking garage (not taxed) so the Benzs and Explorers won’t be exposed to the elements on the mean streets of Oak Park.

Not $3 million in scholarships for poor minority kids, but shelter for mommy-and-daddy’s sweet ride.

If you’ve got that kind of money for that kind of project, you can “compete” with the public schools on your own dime.

Comment by wordslinger Wednesday, Dec 12, 18 @ 5:48 pm
It’s moments like this that one wonders about that pesky Illinois constitution.

SECTION 3. PUBLIC FUNDS FOR SECTARIAN PURPOSES FORBIDDEN
Neither the General Assembly nor any county, city, town,
township, school district, or other public corporation, shall
ever make any appropriation or pay from any public fund
whatever, anything in aid of any church or sectarian purpose,
or to help support or sustain any school, academy, seminary,
college, university, or other literary or scientific
institution, controlled by any church or sectarian
denomination whatever; nor shall any grant or donation of
land, money, or other personal property ever be made by the
State, or any such public corporation, to any church, or for
any sectarian purpose.
(Source: Illinois Constitution.)

Comment by Steve Wednesday, Dec 12, 18 @ 6:45 pm
–Public schools need competition and now we will see Rauner’s subsidy program aimed at minorities coming to an end–

@Sue, you have your wires and talking points mixed up comrade. Is it a market economy (competition) or a command economy (subsidies)?

I mean seriously, you call for subsidized competition? This is why you are not taken seriously.

Public schools are free to everyone and not in competition with private of other public schools. That isn’t the point. They are not after profits and trying to close one another. Except for the corporate backed for profit schools like some of the charters out there.

If you are a real capitalist you would know we shouldn’t be subsidizing private schools for the sake of competition.

Comment by JS Mill Wednesday, Dec 12, 18 @ 7:33 pm
“you call for subsidized competition? This is why you are not taken seriously.”

To be fair, that’s hardly the only reason.

– MrJM

Comment by @misterjayem Wednesday, Dec 12, 18 @ 9:22 pm
If you are a real capitalist. Now your talking. No TIF. No EDGE. No tax credits. No intersect Illinois. No tax abatements. Yea. Dems. Repubs. Hypocrits.

Comment by Blue Dog Dem Wednesday, Dec 12, 18 @ 9:26 pm
=If you are a real capitalist. =

I never claimed that I was.

I have read about them in a book though. Neat book, talked about the wealth of nations.

Comment by JS Mill Thursday, Dec 13, 18 @ 7:12 am
>When your online Medicaid enrollment system crashes and thousands of eligible Illinoisans lose their food stamps and other entitlements, you are not allowed to count that as “savings from Medicaid fraud”.

Strongly agree. And when you end up with a legislator needing to pass a “presumption of eligibility” to help providers continue to give people the services they need while waiting months and months for approval, it’s just pushing off payments to later, not savings.

Comment by Earnest Thursday, Dec 13, 18 @ 8:50 am