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*** UPDATE *** He’s not gonna get triangulated…
On Rauner's idea for IL to pay Chicago teachers' pensions & end block grants, spox for Madigan says it moves wrong way toward a cost shift
— Tony Arnold (@tonyjarnold) June 26, 2015
* More from the Sun-Times about that proposal Gov. Bruce Rauner floated yesterday about Chicago Public Schools’ state funding…
Rauner’s proposal would give CPS $200 million more a year from the state for two years [for normal pension costs]. After that, a new funding formula would have to be created that would eliminate the need for special block grants. […]
Rauner’s plan would also increase the lump sum of funding for high poverty school districts from $85 million to $159 million.
* Greg Hinz obtained a briefing paper…
As described in the paper, the pension pickup would begin immediately. But the block grant would not disappear for two years, and only after a new state commission approves a plan to revamp the state’s school-aid formula.
Bottom line: CPS over the next two years would be ahead $400 million.
Much of this is actually Senate President John Cullerton’s idea that he proposed to Rauner on that fateful recent Tuesday when Rauner walked in front of the cameras a couple hours later and all but called Cullerton a crook.
* It’s now seemingly back on track, after the city initially turned thumbs down…
According to the briefing papers, the CPS pension money would be tied to passage of larger pension reforms and to adoption of a new statewide school funding formula. A new formula would be developed and proposed by a majority-Republican panel but, according to my source, would have to be approved by the General Assembly, which now and for the foreseeable future is majority Democratic. […]
And, now says a senior city official, the Rauner proposal “is a good start”—but an eventual good ending depends on details of that change in the funding formula.
Those changes won’t come for a while, however.
And I was given a much more optimistic review of the proposal today, but whatevs. The point is, there is no longer a total thumbs down from the 5th Floor.
* There are other demands…
There is another CPS requirement—that is, an end to the system of the CPS picking up part of the teacher payment toward their pensions, amounting to 7 percent of pay. […]
Under the proposal as outlined in that fact sheet—a variation of the “consideration model” pushed by Senate President John Cullerton—workers would have to chose between reduced regular benefits and shrunken pension benefits.
For instance, vacation for state workers by law would be limited to two weeks a year for the first 15 years of employment, and overtime to work over 40 hours week, up from 37.5 hours now. Workers could get those benefits back, and a salary bonus of up to $3,000—if they agreed to accept lesser inflation adjustments in their pension.
* From the fact sheet, we have “Changes Based on the Consideration Framework” for SERS…
After removing certain subjects from collective bargaining, create a baseline independent of pension benefits:
Wages guaranteed not to decline for five years;
Vacation reset to two weeks (under 15 years of service) and three weeks (15+ years of service);
Adjusted vacancy/overtime rights; and
Overtime pay normalized to match federal law, kicking in at 40 hours, not 37.5
Create several optional packages to incentivize different groups of employees to transition into Tier 2 pension formula prospectively:
Salary package: $2000 transition bonus; one-time $3000 salary increase; OT at 37.5 hours; no additional vacation
Vacation package: $2000 transition bonus; one-time $2000 salary increase; OT at 37.5 hours; 2 additional weeks of vacation
Overtime/vacancy package: $2000 transition bonus; no salary increase; OT at 37.5 hours; 2 additional weeks of vacation; priority rights in work schedule, vacation, overtime, and “bumping”
Go read the fact sheet. Again, not all of this is Cullerton’s idea. But at least some of it could be accomplished.
posted by Rich Miller
Friday, Jun 26, 15 @ 2:22 pm
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pay me pennies I’m still not switching to tier 2
Comment by foster brooks Friday, Jun 26, 15 @ 2:32 pm
If the goal was to make the choice for employees as impossible as they could, victory achieved.
Comment by zonz Friday, Jun 26, 15 @ 2:37 pm
I thought the Democrats would never do anything to reduce the standard of living for middle class families?
Comment by Lucky Pierre Friday, Jun 26, 15 @ 2:37 pm
The SERS option may be constitutional, but I doubt the incentives are large enough to get many people to switch.
The TRS, SURS, GARS, CTPF, and Downstate Police and Fire Tier 1 employees option is still a choice between two impairments and will be found unconstitutional eventually.
Comment by Mostly Harmless Friday, Jun 26, 15 @ 2:40 pm
My question is, how does Rahm figure to get enough house dems on the bill to pass it?
Comment by dawn Friday, Jun 26, 15 @ 2:44 pm
Lucky
Some middle class is more important than others. You really didn’t think they’d just pay up without at least one more shot at welshing?
Comment by Mason born Friday, Jun 26, 15 @ 2:45 pm
At least the governor is finally in the ballgame. Up to now, I got the impression he thought the gig was all about yakking talking points at controlled audiences.
Comment by Wordslinger Friday, Jun 26, 15 @ 2:47 pm
municipal bankruptcy?
Comment by Anonymous Friday, Jun 26, 15 @ 2:49 pm
What happens if someone doesn’t want any option
Comment by Anonymous Friday, Jun 26, 15 @ 2:49 pm
===municipal bankruptcy? ===
Like I said, not all of this is Cullerton’s idea.
Comment by Rich Miller Friday, Jun 26, 15 @ 2:49 pm
Clearly the Speaker’s peeps were intimately involved in crafting this. /s
Isolate. Madigan. Pipedream.
Comment by zonz Friday, Jun 26, 15 @ 2:56 pm
Patiently awaiting RNUG to weigh in……..some of it looks a bit dicey to me
Comment by Former Merit Comp Slave Friday, Jun 26, 15 @ 2:57 pm
Mostly harmless
Actually was thinking the same. Although the changes to ot and vacation might be nasty to some.
I also wonder what other subjects are to be removed from collective bargaining.
Comment by Mason born Friday, Jun 26, 15 @ 2:57 pm
Muni bankruptcy is a “no”.
Collective bargaining changes will be a “no”.
Funding reform panel that is R majority will be a “no” (unless Madigan wants to let the R’s take the hit for something that is unpopular.
Listen, if the governor wants these bargaining and anti-union changes then he needs to try and do it. Local school boards ain’t gonna do it. Too personal, especially in smaller communities.
Rauner wants to cut local revenue at the state level, ONLY because it is politically popular, but make local governments slash wages and benefits. Basically- “I’ll be the white knight while you do my dirty work”
If the governor wants it so bad he needs to do it. Locals know this is the cowards way out.
Tier 1- can’t changes it and he has no leverage here.
Comment by JS Mill Friday, Jun 26, 15 @ 3:04 pm
==doubt the incentives are large enough to get many people to switch==
Read the fact sheet and the prestidigitation in the form of the “salary package/vacation package/overtime vacancy package”, which may seem enticing to CPS employees, but as a state worker for nearly 35 years as an official court reporter, non-union, I can say writing trials & hearings in court over three decades to earn 25 days of vacation isn’t something I want to bargain downward at this point let alone migrate to the Tier 2 formula.
Comment by Verbatim Writer Friday, Jun 26, 15 @ 3:04 pm
“Wages guaranteed not to decline for five years”
Yike!
Comment by Anon Friday, Jun 26, 15 @ 3:10 pm
J.s. Mills
I think you missed this.
–Much of this is actually Senate President John Cullerton’s idea that he proposed to Rauner on that fateful recent Tuesday when Rauner walked in front of the cameras a couple hours later and all but called Cullerton a crook.–
If this is cullerton’s proposal you really don’t think it’ll clear. the senate. Will MJM stop it. Maybe the muni bankruptcy but the bargaining changes?
Comment by Mason born Friday, Jun 26, 15 @ 3:12 pm
Unless there is new revenue any type of modified Manar funding reform plan will have to take General State Aid money from the wealthy districts and transfer it to districts that are poorer. There is no way around it, so where will the money come from? Taxes maybe?
Ultimately the Manar SB1 bill failed to move in the House because of the reductions in GSA many districts would have received. Assuming this is tied to a property tax freeze it will be hard for the districts with fewer poor kids and high property wealth to recoup the loses. Governor Rauner will really have to twist some arms to get agreement from his own House caucus on this deal.
The other thing this all shows is the mass confusion being created by the Governor’s vague proposals. For example does the modified property tax freeze proposal continue to contain the radical limitations on collective bargaining the non-modified plan had? I suspect so, because it is the linchpin of the Governor’s concept of cost containment that allows for a property tax freeze. I am not sure those anti-organized labor provisions will be agreed to provide $400 million a year more in money to CPS.
Comment by Rod Friday, Jun 26, 15 @ 3:23 pm
I foresee anyone who is both eligible to retire and financially able to do so calling SERS to discuss their options, possibly moving from the input side of the pensions to the output side. I can’t retire yet, and I don’t plan on moving to Tier 2. So reduced vacation it is. Wasn’t planning on a raise anyway.
Comment by Thoughts Matter Friday, Jun 26, 15 @ 3:23 pm
To the Update,
Rauner needs his votes. If Rauner is counting on HDems thru ILGO PAC to scare and peel off votes, now’s the time to do it.
Does this make Cullerton “Sal Tessio” in this Barzini-Tattaglia triangulation of the Corleone Family?
Comment by Oswego Willy Friday, Jun 26, 15 @ 3:42 pm
Either there’s a serious lack of communication between the governor’s and mayor’s offices or the Rauner crew is making this up as they go along.
Could be both, I guess.
One thing’s for certain, no matter what else happens: there will eventually be a state budget that will collect billions more in revenue than is statutorily anticipated now.
That hasn’t changed since the governor’s budget address in February.
Comment by Wordslinger Friday, Jun 26, 15 @ 3:49 pm
They’re certainly getting creative. What is obvious is an agreement by the Dems to accept some compensation element for the consideration will then require them to accept limitations on collective bargaining. You can threaten to keep salaries constrained unless you agree to reduce retirement benefits only if you prevent pay increases from being negotiated for the contract. So much for the Dems claim of protecting the middle class, at least the public sector middle class. Whoops.
Comment by Norseman Friday, Jun 26, 15 @ 3:56 pm
We’ve begun to transition from a contest between the Rauner executive and the Dem General Assembly to a Keystone Cop sideshow where everyone is throwing ideas out there with very little coordination.
Comment by Norseman Friday, Jun 26, 15 @ 4:01 pm
- Norseman -
Maybe a failure of BOTH the Press Shop and Legislative Shop in figurin’ how to actually roll out a complicated legislative proposal, as a deal, and make the proper presentation with everyone on board?
Hmm.
Comment by Oswego Willy Friday, Jun 26, 15 @ 4:04 pm
=If this is cullerton’s proposal you really don’t think it’ll clear. the senate. Will MJM stop it. Maybe the muni bankruptcy but the bargaining changes?=
I believe the pension was clearly Cullerton’s or very similar to his proposal. if memory serves, and you can check voting records, that did not pass the house.
I have never read a document that confirmed any part of the rest Cullerton’s proposal.
And to your questions- I don’t think the bargaining changes clear the house. Just my thought.
Comment by JS Mill Friday, Jun 26, 15 @ 4:08 pm
===I have never read a document that confirmed any part of the rest Cullerton’s proposal.===
Subscribe: https://capitolfax.com/2015/06/26/subscribers-only-the-cullerton-plan/
Comment by Rich Miller Friday, Jun 26, 15 @ 4:09 pm
=Unless there is new revenue any type of modified Manar funding reform=
His plan was a “redistribution” of the diminished pot.
Comment by JS Mill Friday, Jun 26, 15 @ 4:09 pm
Thanks Rich!
Comment by JS Mill Friday, Jun 26, 15 @ 4:10 pm
Tier 1, I retire at age 58. Tier 2 age 67. I can’t see any scenario that would cause someone like me to switch.
Comment by Northern pike Friday, Jun 26, 15 @ 4:10 pm
I see Cullerton’s lastest action as adding to this new Keystone Cop environment. Whereas, Emil was cooperating with Blago out of animus toward Madigan. Cullerton is trying to look statesmanlike. Unfortunately, the result is another battle with Madigan and an opening for Rauner.
Comment by Norseman Friday, Jun 26, 15 @ 4:18 pm
J.s. mills
I hope your right. However I seem to recall the same sentiment being expressed before SB1.
My thoughts are the General assembly and gov aren’t going to meekly pay the pension debt without trying at least one more time to get out of it.
Comment by Mason born Friday, Jun 26, 15 @ 4:20 pm
- Noresman -
You described Fredo, making a deal, trying to broker power outside his purview, and in turn, helping Roth go after Michael.
“Mike. I swear to God, I didn’t know it was gonna be a hit. Rahm bumped into me in the Neighborhood, and he said that he wanted to talk. He said that you and - and Rauner were in on a - a big deal together and that there was something in it for me if I could help ‘em out. He said that - He said that you were bein’ tough on the negotiations, but if they could get a little help and close the deal fast, it’d be good.”
Comment by Oswego Willy Friday, Jun 26, 15 @ 4:27 pm