Showing posts with label Pat Quinn. Show all posts
Showing posts with label Pat Quinn. Show all posts

Tuesday, July 16, 2013

Madigan's announcement ripples the political pond

By Jamey Dunn

Attorney General Lisa Madigan’s decision to seek reelection instead of running for governor will have a ripple effect on the state’s political landscape.

Of course, Madigan decision not to run will affect the governor’s race. The popular attorney general has done well in the polls and was expected to be the front runner if she jumped into the governor’s race. Madigan announced yesterday that she would run again for her current office. In her written statement she cited her father Michael Madigan’s position as House speaker as one of the reasons for her decisions.

“For the last several months, I have considered the best way to continue serving the people of Illinois. Deciding whether to seek reelection or to run for governor has not been easy. I love my job as attorney general and continue to be excited about the important work we are doing and what we can do for people and families in the years ahead. I considered running for governor because of the need for effective management from that office and the frustration so many of us feel about the current lack of progress on critical issues facing Illinois,” Madigan said. “Ultimately, however, there has always been another consideration that impacts my decision. I feel strongly that the state would not be well-served by having a governor and speaker of the House from the same family and have never planned to run for governor if that would be the case. With Speaker Madigan planning to continue in office, I will not run for governor.”

Gov. Pat Quinn has said in the past that a Madigan in the governor’s office and a Madigan as speaker would be a conflict of interest. He did not reiterate that opinion today when asked about Lisa Madigan’s decision. Instead, he praised her service as attorney general, the job she has held since 2003. “I think it was well-said,” Quinn said in Chicago today of Madigan’s statement.

With Madigan out of the way, Quinn’s only challenger is former White House chief of staff Bill Daley. Daley served as chief of staff under President Barack Obama and commerce secretary under former President Bill Clinton. Despite his connections to national politics, most Illinois probably know him best from his family ties. He is the brother of former Chicago Mayor Richard M. Daley, the longest serving Chicago mayor to date, and son of former Chicago Mayor Richard J. Daley, the second-longest serving mayor.

Quinn's comments today indicate that he may try to present Daley, who has also worked as a lawyer and a banker, as a rich insider while paying up his own populist credentials. “I think I’m quite a bit different than Bill Daley. He has a better tailor than I do.” Quinn said of himself: “I’m a people person. I think that anybody who has ever worked with me in public life knows that I interact with everyday people. I’m not going to be a champion of millionaires — everybody knows that. I fight hard for folks who don’t have lobbyists, who don’t have political action committees, who aren’t in high places, but they’re the heart and soul of Illinois.”

But when it comes to campaign funds, so far Quinn is Mr. Moneybags. According to campaign filings due yesterday, he raised $1 million between April 1 and June 30 and has $2.3 million to spend. Daley has raised more than $796,000. “I think that they understand we’re doing a good job,” Quinn said of his donors. “I think we ran a campaign in 2010 in a pretty tough environment and I won the primary won the general election. That’s what’s going to happen next year, too.”

Meanwhile, Daley has painted Quinn as an ineffective leader. “General Madigan's decision not to run now gives voters a clear choice between a proven leader who gets things done and a governor who can't seem to get anything done,” Pete Giangreco, spokesman for the Daley campaign, said in a written statement in reaction to Madigan’s announcement Monday.

Both candidates were likely happy to learn that Madigan is opting out of the race. Both face their own unique challenges in the Democratic primary: Quinn his unpopularity and Daley his unfamiliarity among voters outside of the Chicago area. “Daley has to go out and make public opinion, and Quinn has to change it,” said Kent Redfield, professor emeritus of political science at the University of Illinois Springfield.

At face value, Madigan’s decision seems to most benefit Daley, who can now paint himself as the only alternative to a governor many in the state dislike. However, he is an as of yet unproven candidate. If Daley was to fall in his face, all Quinn would have to do is step over him to secure the Democratic nomination now that Madigan is out of the picture. “It may be a huge plus for Quinn if Daley crashes and burns,” Redfield said.

For the Republicans, Redfield says Madigan’s decision may give all the four candidates a slight morale boost. “This may add a little bit of energy on the Republican side in general for the governor’s race because everybody sees a clearer path to being governor,” he said. But he cautioned, “If the Republicans eat each other alive and beat each other to death, so that it’s the last man standing, it may not make that much difference.”

Some members of the legislature may now be planning to stay put. “Where we thought we were going to open up a bunch of musical chairs here, open up a bunch of seats, it really kind of freezes everybody,” Redfield said. House Minority Leader Tom Cross had said he was weighing a run for the attorney general’s office if it were open. Now that it is not, he may need to work to soothe a caucus after many members have been vying behind the scenes to replace him. But since no clear successor exists, it appears likely he will hang onto his leadership position. “I think Cross probably maintains his leadership role, but again, that’s dependent on nobody becoming a viable alterative that can really bring everybody together,” Redfield said.

Chicago Democratic Sen. Kwame Raoul was also considering a bid for Madigan’s office if she left. Raoul has been at the center of the two premier legislative debates of the spring session, concealed carry of firearms and finding a solution to the public employee pension crisis. He is chair of the conference committee that is working to draft pension legislation that the group hopes can pass in both chambers. Raoul publicly sparred with Quinn in recent weeks over Quinn’s attempted rewrite of concealed-carry legislation and the governor’s move to suspend lawmakers' pay until pension changes are passed. While the two agree on many policy points, Raoul has taken issue with Quinn’s leadership style. The populist moves that Quinn is playing up for the governor’s race are the decisions that are putting him at odds with lawmakers. Raoul called Quinn’s veto of lawmakers pay unconstitutional grandstanding. “Listen, I like the governor. I like the governor, but I just don’t like the communication I have experienced over the last few weeks,” he said after a recent conference committee hearing.

With Madigan out of the governor’s race, the Illinois political rumor mill is churning at full speed and spitting out names of potential Democratic candidates, Raoul among them. He says he weighing his options. But a gubernatorial bid from Raoul might risk his status as a rising star in the Senate for a long-shot bid at higher office. “He’s for sure going to be in the majority and for sure going to be an important player in the Senate,” Redfield said. He said that Madigan’s decision not to run could open the door for another Democrat to join the race, but he can’t think of an obvious candidate. “I’m hard-pressed to think who that would be. Is there an opportunity for someone who is not a white male from Chicago? Sure. But I don’t know who that is,” he said. “A state legislator is at a huge financial deficit in terms of being able to put together a campaign — not having name recognition, not having any kind of statewide network, not having any kind of statewide fundraising in place.”

 Lt. Gov. Sheila Simon was also reportedly mulling a run for the attorney general’s office. Several Chicago media outlets have reported today that she will instead announce a bid for state comptroller in the near future. She will be challenging incumbent Judy Baar Topinka, which could be an uphill climb, especially considering that Simon’s fundraising totals have been lackluster so far. “She needs to have a clear field [in the primary] and the support of the Democratic Party,” Redfield said about Simon. “Once you get into the general [election], then obviously the party is going to help you.”

Madigan’s bombshell announcement Monday will no doubt have a lasting impact on Illinois politics — for one thing it indicates her powerful father isn’t going anywhere — and the outcomes of the 2014 general election. But the results are nearly impossible to see as campaigns are just beginning to kick off. Perhaps Quinn said it best when asked today if he was taken aback by Madigan’s announcement. “I’m not surprised about anything in Illinois politics.”

Thursday, March 31, 2011

Legislators balk at Quinn's education cuts

By Lauren N. Johnson

Gov. Pat Quinn’s proposals to gain savings by cutting the number of the state’s school districts in half through consolidation and eliminating funding for regional offices of education received continued pushback from lawmakers today.

Rep. Al Riley, an Olympia Fields Democrat, voiced concern over the possible negative impacts of consolidation on rural, poverty-stricken areas. He said it could lead to a lack of resources for students and possibly result in a dip in academic achievement.

Christopher Koch, superintendent of the Illinois State Board of Education, said consolidation would not be an easy task, and the the board's primary focus is the best interests of students. He said any plan involving the state forcing schools to consolidate districts is unlikely to happen this year. “I doubt there’s a bill that passes that mandates consolidation beyond any authority that’s currently in precedent,” Koch said.

Legislators also took issue with Quinn’s plan to eliminate funding for regional superintendents. Some said students would lose resources provided by regional offices, such as student truancy programs and professional development for teachers. Rep. Roger Eddy, a Hutsonville Republican who also is a school  superintendent, said: “If they are not there, they are not able to provide those services. What about truant students? We would have to provide services [at the district level] because they are mandated for truants. But we wouldn’t have a regional way of doing it at a low cost, so money would be taken away from classrooms." Rep. Pam Roth, a Coal City Republican, added that the regional offices are “critical” to the operations of school districts.

Those developments come a day after House Speaker Mike Madigan said he has no plans to pursue the governor’s idea for consolidation of school districts.

Monday, November 01, 2010

Election day: Close races, big spenders and unhappy voters

By Jamey Dunn

As the candidates at the top of the ticket fly throughout the state trying to energize voters the day before the election, polls show Republicans have a slight edge in two close races.

A poll of likely Illinois voters released today by Public Policy Polling has U.S. Rep. Mark Kirk leading the race for U.S. Senate with 46 points to Democratic State Treasurer Alexi Giannoulias’ 42 points. The same poll shows Gov. Pat Quinn, with 40 points, trailing Republican Sen. Bill Brady, who has 45 points. The margin of error for the survey is plus or minus 3.4 percent.

Meanwhile, legislative leaders are pouring money into General Assembly races. The Illinois Campaign for Political reform released a list today of 14 legislative races — seven from each chamber — where both candidates combined reported more than $1 million in campaign funds.

Kent Redfield, an emeritus professor at the University of Illinois Springfield and director of the Sunshine Project, a nonprofit campaign contribution database connected to the Illinois Campaign for Political Reform, said the total number of races with more than $1 million in funds will likely be closer to 16 when all is said and done. “Republicans are seeing opportunity. Democrats are playing defense,” Redfield said.

He added that in recent years, Republicans have had to spend more to fight for suburban districts. But with Democrats — who have a demographic advantage in Illinois — facing high levels of voter frustration and apathy, Republicans have more money to target downstate districts.

As for the possibility of a Republican-controlled Illinois House, Redfield said: “I would be surprised, but I wouldn’t be shocked. … If the Democrats stay home, and the Republicans go to the polls, you could get something like 1994 [when Republicans took control of the House.]”

Redfield said almost half of Brady’s campaign cash has come from national Republican groups. He says close races for Senate and the governor’s office in a state that is typically Democratic might have compelled national Republican organizations to spend more this time around. “Nationally, Republicans have not spent a lot of money in Illinois [in the past] because there really wasn’t much point.”

There has been heightened involvement from national parties in governor’s races across the country, due in part to the fact that states will soon be redrawing legislative districts. “If you get a Republican governor, then that’s a stopper in terms of redistricting in Illinois,” Redfield said. Even if the General Assembly stays in Democrats’ hands, a Republican governor could refuse to sign off on any map they create.

A race thousands of miles away may also affect Illinois. U.S. Senate Majority Leader Harry Reid is battling in a close contest for his seat. If he loses and the Democrats hang on to the Senate, there is a good chance that U.S. Sen. Richard Durbin would take over as leader for his party. Durbin said he has no plans to challenge Reid if he wins reelection.

“I have no idea what anyone else is doing, but I told Harry Reid, gave him my word, I would do nothing in any way whatsoever to angle for his position,” Durbin said. He’s the majority leader. He’s going to be reelected as the majority leader.”

Redfield said that even though it seems Democratic voters in Illinois are disaffected, Illinois Democrats would still be power players in Washington, D.C. “We [would] have the Senate majority leader and the president from Illinois. That would be interesting.”

The economic downturn and a campaign season of negative ads and divisive rhetoric highlighting the state’s and the country’s ills will do little to inspire voters, according to Redfield. “If people were depressed before about the economy after this election cycle, they are even more depressed. … Where are you going to cast a positive vote tomorrow night?”

That outlook is reflected in the Public Policy poll, which says that no matter who voters choose as their next U.S. senator and governor, they will likely not be satisfied. More respondents had an unfavorable opinion than a favorable one of Kirk, Giannoulias and Brady. More than half of respondents did not approve of Quinn’s performance as governor.

Besides picking candidates, voters will also have to decide if they want to add recall power to the Illinois Constitution. If more than 60 percent of people who cast their ballots approve the amendment, voters — with the backing of 30 legislators from both chambers and both parties — would have the power to recall a sitting governor.

Thursday, October 22, 2009

Quinn seeks a full term as governor in 2010

By Bethany Jaeger
At this time last year, Rod Blagojevich was governor and battling with the state legislature to restore funding to human services and to state parks and historic sites. Meanwhile, federal prosecutors continued to indict members of Blagojevich’s inner circle in an ongoing investigation into political corruption, which foreshadowed his impeachment and removal from office. At the same time, Pat Quinn was lieutenant governor, urging voters to approve a referendum to call another constitutional convention to rewrite the state charter.

It’s been nine months since Quinn replaced Blagojevich in the executive office. In that time, he’s had to lead Illinois through a bruised public confidence in government, a nationwide recession and a state budget deficit that once was projected at $12.4 billion.

Last spring, he urged legislators to approve a two-year flat income tax increase from 3 percent to 4.5 percent for all income levels, minus a personal exemption for low-income families, to stave off deeper cuts to state programs.

But while stopping in Springfield today as part of a nine-city tour officially launching his bid for a full term as governor in 2010, Quinn did not mention the need for an income tax increase. He, instead, laid out a platform of reviving the economy by creating jobs through public works projects, investing in “green” jobs by developing alternative energy sources, increasing investments in education, leveraging state assets to help small businesses access capital and promoting Illinois trade and tourism.

He did not offer specifics, such as whether the initiatives would be funded through existing programs or through new spending programs.

When asked by reporters at Springfield’s Abraham Lincoln Capital Airport whether he had or would change his tax hike proposal, Quinn said: “The time to do that, I think, will be next year after the primary because there’s not going to be a General Assembly session until then, unless there’s an emergency. And I don’t think the votes are there today for that, so we just have to keep working on it.”

His opponent in the Democratic primary is three-term state Comptroller Dan Hynes, who announced his bid in September. Hynes issued a statement today criticizing Quinn’s “passing remark” on the state’s budget deficit.

“I, too, support jobs and better education, but until we have a plan to pay our bills, balance our budget and emerge from the fiscal hole that is threatening the future of Illinois, these campaign promises ring hollow,” Hynes said in the statement.

Hynes has proposed that after a series of cost-saving initiatives in his first year in office, he would pursue a graduated income tax increase. According to his campaign, the increased rate would primarily affect taxpayers earning more than $200,000 a year. Changing the income tax structure from a flat rate to a graduated rate, however, would require changing the state Constitution. That would require the state legislature to approve placing the question on the general election ballot in November 2010 for the constitutional amendment to take effect in 2011.

Neither Quinn’s nor Hynes’ income tax proposal would take effect and generate revenue soon enough to save the next fiscal year’s budget.

Quinn said in Springfield today: “I didn’t create the deficit. I inherited it. But I think I’m the person to repair the damage, working with people. ... I think I’ve shown over the time I’ve been governor that we’ve been able to stabilize the government, restore the honor and integrity to the office of governor. You have to have a governor that people trust and know is an honest person, and I think I am.”

He pointed to his involvement in enacting a $31 billion capital construction program, revamping the state’s public access laws, reforming the state’s procurement and contracting rules and state ethics laws for lobbyists and passing a referendum to allow voters to recall sitting governors to the 2010 ballot.

While he said it’s an honor to be the governor of Illinois, he added that it’s also a public trust. “And I want to assure the people of Illinois that my heart is ever at your service.

For more background on Quinn, read Illinois Issues February issue.

Monday, July 06, 2009

Gov. Quinn: Cuts are coming

By Bethany Jaeger
Gov. Pat Quinn is slated to announce layoffs and other government spending cuts in what he said is an effort to cut another $1 billion from the state’s operating budget. He’s scheduled to announce specific cuts in Chicago tomorrow afternoon, one week before the legislature is scheduled to return to Springfield to consider his recent veto of the part of the budget that would fund human services at reduced levels.

After meeting with suburban legislators today, Quinn said public employee unions would be notified this week of unpaid days off and layoffs. He did not specify where the layoffs would take place; however, Republican Rep. Jim Durkin of Western Springs attended the meeting and said the administration outlined 1,000 layoffs from the Illinois Department of Corrections and about 900 layoffs from the Department of Human Services, as well as cuts in grant programs.

One of the largest unions, the American Federation of State, County and Municipal Employees Council 31, had not received official notice, said Anders Lindall, union spokesman, adding that layoffs are expected without a new flow of revenue into state coffers. “As long as the budget is broken and legislators haven’t passed sufficient revenue, layoffs would be inevitable. Not just layoffs, but damaging cuts to essential human services and public safety.”

Lindall said furlough days or layoffs at state agencies would be tantamount to cutting services, wouldn’t save as much money as needed and could actually cost the state more money in added overtime pay. “Certainly, the thousands of layoffs he’s now talking about would have a profound harmful impact on basic services in DHS, safety in the prisons, DCFS functions and all of the basic services that Illinoisans [rely upon].”

According to Durkin, the governor indicated in the private meeting that he was willing to operate on a temporary state budget until a more permanent solution could be reached. That would counter Quinn’s previous statements that he would not accept a temporary budget.

The governor continues to frame a state income tax increase as the only solution to balancing the budget, which he estimates is $9.2 billion out of balance, but several legislators said they don’t expect a tax hike to win approval next week.

“I don’t think anybody’s mind was changed with today’s meeting,” Durkin said. “And I think that at this point in the year, I just don’t know how you get to 71.” He referred to the 71 votes needed in the House to approve any legislation now that the legislature has gone into overtime session. And cutting thousands of employees from prisons, for instance, won’t win political points with legislators, Durkin added. “I can see where a lot of these jobs are. These are in districts where you might have people who previously were supportive of an income tax increase. You lost ’em.”

Rep. Jack Franks, a Woodstock Democrat who attended today’s meeting, said the governor hasn’t proven to the public that a tax increase is a last resort. Instead of identifying specific spending cuts and negotiating with unions early in the spring, the governor has waited until the new fiscal year this summer to lay the groundwork for a tax hike. “This should have been the very last option on the table. And for him, it was the first and only,” he said.

Franks said his recommendations to the governor have been to cut member initiatives, otherwise known as pork projects, reduce or eliminate the pay of various board members and commissioners, close some state prisons and move to a two-year budget cycle.

Few legislators had high expectations for next week’s special session. “I think next will be a colossal waste of time,” said Rep. Dennis Reboletti, an Elmhurst Republican. “I don’t think any suburban legislators’ mind was changed by this meeting.”

In addition to considering the governor’s veto of the human services budget, the Senate also could reconsider a short-term borrowing scheme that the governor initially proposed but then lobbied against at the last minute — a bone of contention with many lawmakers.

Quinn, however, remains an eternal optimist. He has met with female and suburban legislators and said he plans to meet with groups of legislators from all regions of the state because he believes answering questions, offering suggestions and listening to criticisms has resulted in progress. “I would like to see all of this done by the 16th of this month,” he said.

Wednesday, July 01, 2009

New fiscal year, same stalemate

By Bethany Jaeger
The first day of fiscal year 2010 is marked by Gov. Pat Quinn vetoing the portion of a state budget approved by the legislature, meaning the state doesn’t have a spending plan in place. And after yesterday’s strange string of events, lawmakers and state service providers wonder how the governor will proceed.

House Speaker Michael Madigan had some advice for the governor: Stop doing 180s on his stances. “I plan to continue to work with the governor in full cooperation. I recognize the problems of state government, but it does not help in this very difficult situation to engage in all these flip flops.”

Most recently, Quinn sought the ability to float pension obligation notes as a short-term borrowing plan to free up about $2.2 billion, which legislative leaders of both political parties agreed would go to human services. The governor congratulated the House yesterday afternoon for approving the short-term borrowing plan in Senate Bill 415, but a few hours later, he called senators asking them not to vote for the plan because he said it would take pressure off of finding more significant revenue sources. Quinn said today outside of his Statehouse office that voting on the borrowing scheme was out of order.

“We didn’t know there was an order,” said Sara Wojcicki, spokeswoman for House Minority Leader Tom Cross. She added: “If there was anything that we were agreeing on in the leaders’ meeting [yesterday morning], it was that we were going to do that [short-term borrowing]. It seemed to be the program.” She also said it’s been hard for the caucuses to gather support or opposition to the governor’s proposals when he keeps changing his mind.

The legislature isn’t scheduled to return until July 14, about the same time the comptroller’s office is supposed to cut checks for the first wave of payroll of state employees. The timing, according to Madigan’s spokesman, reflects a survey of legislative members’ schedules. But Quinn said he hopes they all can find a solution well before then.

But the governor didn’t specify a plan for how that would happen. He just said the next few days are crucial and that he would work hard with legislators and others. “We will not relax in our battle to have a balanced budget in the Land of Lincoln. This is a fight worth fighting for.”

The bill he angrily vetoed, SB 1197, gave him authority to spend about 20 percent of the state budget that is distributed in grants. After funding federally required portions of education and Medicaid to acquire economic stimulus funds, the bill only gave the governor about $3.5 billion of the $10 billion he sought for grants of community-based human services, according to Madigan.

“We only appropriated for the amount of money that we thought would be available,” the speaker said, later adding, “There’s enough money to manage the government under the spending authority contained in the bills that we’ve sent to the governor.”

Madigan also said he would vote to override the governor’s veto, although he said he didn’t know whether his chamber would have enough votes to do so July 14.

Quinn has not addressed other portions of the budget, including various revenue sources. But, he said, “I’m philosophically opposed to trying to balance the budget on just one area of human services in Illinois.”

Even with his veto of the human services portion, however, some providers already have cut programs or laid off employees because the state Department of Human Services told them to prepare for cuts July 1 and more cuts later in the fall. The unpredictable nature of funding is enough to devastate social services that run on shoestring budgets. For instance, in the Southtown Star, columnist Phil Kadner describes the scene in the Chicago suburbs. The Herald & Review outlines cuts being made for Decatur-area services.

Comptroller Dan Hynes said the governor is sending the wrong message, which he said “bordered on irresponsible.” In a statement, Hynes wrote: “He needs to communicate to our social service providers that they need to continue providing services and they will be paid. Instead, he is adding to the hysteria by creating doubt and potentially causing disruption to these essential services.”

Quinn said human service providers should carry on. “I think it’s important that they do their jobs, and I’m hopeful, very hopeful, in a prompt manner, we will get this impasse resolved and get a balanced budget.”

Quinn’s office also issued a warning to state vendors that any bills incurred after today will have to wait for payment. “We have to hold that bill until we get a budget,” Quinn said.

Tuesday, June 30, 2009

The puzzle falls apart

By Bethany Jaeger, Jamey Dunn and Hilary Russell
Renewed hope and high spirits defined the transition from impeached Gov. Rod Blagojevich to Gov. Pat Quinn early this year, but frustration and gridlock have stained the end of the fiscal year.

Today marked the last day of fiscal year 2009. After a string of strange events, the legislature left town with no date certain to return. And Quinn would not specify how he would proceed, whether by calling special sessions or by holding more meetings with the top four legislative leaders behind closed doors. Nor would he address whether he would allow the state to shut down if a budget weren’t in place by the time the state ran out of money to pay its bills. According to the comptroller’s office, July 15 is a key date for the first wave of state payroll in the new fiscal year. But a spending plan would need to be in place by about July 9 or 10 to have enough time to process expenditures.

The legislature’s day started with a protest of sorts in an attempt to block House members from entering the chamber. Statehouse police removed eight individuals from the Service Employees International Union as they rallied outside the chamber and chanted, “Raise taxes now.”

Despite the governor’s wishes, the legislature didn’t even consider raising taxes today. Lawmakers, instead, sent him pieces of what Quinn dubs a “half-baked budget” that would mean drastic cuts to human services and, in some cases, has already resulted in layoffs and program cuts within community-based services. Quinn said he would veto the spending plan.

“We must not put off decisions for later in the summer or the fall or next winter," he said during a last-minute budget address before both chambers. "That’s not what adults do. They confront tough challenges. They meet those challenges with the best that they come up on behalf of the common good.”

And he gained one more reason to veto the so-called 50 percent budget late in the day. It would carry an even larger deficit than anticipated because the legislature failed to approve a short-term borrowing scheme to free up $2.2 billion. Senate Bill 415 actually failed twice tonight.

“Now you’re another $2.2 billion out of whack,” said Rep. Frank Mautino, assistant majority leader from Spring Valley. He added that the legislature has approved the governor’s authority to spend about $26 billion, but lawmakers didn’t approve enough revenue to pay for it. The result? In addition to giving Quinn more reason to use his veto pen, Mautino added that any momentum to override the governor’s veto deflated along with the Senate’s failure to approve the short-term borrowing (background here).

Sen. Jeff Schoenberg, sponsor of the borrowing plan, said not fully paying the state's $4 billion contribution into the public employee pension system will cost the state more than if the state borrowed money to make this year's payment.

And in a strange turn of events, Schoenberg confirmed that the governor’s office had called some senators to urge them not to vote for the bill, which the governor had proposed and supported earlier in the day. Schoenberg said members were told the borrowing plan would take pressure off of the legislature to act on more substantial revenue sources, such as an income tax increase.

Sen. Emil Jones III, son of the former Senate president of the same name, was one who changed his vote from a yes to a no. He said he ultimately voted against the borrowing plan to show support for a tax increase and to reject a piecemeal solution to the deficit.

Without the borrowing, Senate President John Cullerton said the spending plan sent to the governor’s desk would carry a $6.2 billion shortfall. Quinn maintains that the deficit is closer to $9.2 billion.

The disagreement is just one sign of the tension between the legislative and executive branches in the past month. They can’t even agree on the size of the deficit, let alone the methods to fill that gap.

House Speaker Michael Madigan said the governor and the legislature had “legitimate differences of opinion” but that they will continue to work through the differences. In the meantime, he said the governor has now received a package of bills that would allow him to spend the amount of money they expect to be available in fiscal year 2010. “The governor’s complaint is that he wants more money to spend,” Madigan said. “The legislature has said, ‘We’re not going to give you authority to spend money when we don’t think that money will be available.’”

Sounding similar to what he said last year when the General Assembly sent an unbalanced budget to then-Gov. Blagojevich, Madigan added, “As is contemplated by the Constitution, the governor has the ability to spend money at his total discretion.”

During his rare address to both chambers, Quinn said, “I’m prepared to stay here all summer to get the job done.” One person in the chamber clapped.

Quinn said the legislature’s spending plan is unbalanced and invites lawsuits. In fact, he cited a court order issued today. According to the Associated Press, U.S. District Judge John Grady’s order requires the Illinois Department of Children and Family Services to maintain support as promised for such services as psychiatric treatment, counseling and daycare.

The governor repeatedly said an income tax increase is the only way the state would be able to provide critical services to the most needy citizens. And even with a tax increase, he announced today he would need to scale back spending by another $1 billion, which would be in addition to the $1 billion in cuts he announced in March. Those cuts, he said, could come in the form of a dozen furlough days for state workers and 2,200 layoffs, as well as possible closure of state facilities. Closing prisons or other facilities, however, wouldn’t result in immediate savings because the process requires an intentionally long review by a legislative panel and the public.

Majority Leader Barbara Flynn Currie said she agrees with the governor, but his words could be falling on deaf ears. "He’s laying down the gauntlet, and he’s absolutely right," she said. "But I don’t think he changed a single mind or a single vote."

Some Republicans, including two gubernatorial candidates, Sens. Bill Brady of Bloomington and Matt Murphy of Palatine, said tax increases during an economic recession would cost more jobs and encourage more people to leave the state. Murphy suggested starting all over again. Senate Minority Leader Christine Radogno proposed a temporary budget that would fund services at the levels of two years ago, which she said was the “closest thing we’ve had to a balanced budget in recent years.”

Cullerton was in favor of buying some time, he said, to allow Republicans to come around to supporting an income tax increase and to continue to pursue long-term pension and Medicaid reforms. And the governor could sign the capital construction program for roads, bridges, schools and other infrastructure.

The construction program, however, is still in the lurch. Quinn said again this morning that he’s still tying the capital bill to an operating budget, meaning he’s unlikely to sign the bills into law without a balanced budget in place. The construction program was approved by the legislature last month, but it finally sent the bills to the governor's desk last night.

Friday, May 29, 2009

Campaign finance limits one step closer

By Jamey Dunn, with Bethany Jaeger contributing

A bill intended to reform campaign finance in Illinois that passed through the Senate yesterday is expected to come up for a vote in the House today.

It appears to be a compromised version that could get enough votes to pass both chambers. However, Gov. Pat Quinn’s support of the bill went against the recommendations of the Illinois Reform Commission, which he created.

None of the major reform groups in the state support the bill. Cynthia Canary, director of the Illinois Campaign for Political Reform, described HB 7 as “phony reform” filled with loopholes.

Canary’s organization partnered with a large coalition called Change Illinois to advocate for reforms that mirror the federal system of campaign contribution limits: $2,400 limit on individuals, $5,000 limit on political committees, business and unions and a $30,000 limit on legislative leadership. The Illinois Reform Commission recommended the same limits.

Quinn said that enacting contribution caps for the first time in the state would be a historic change, even if they were more lenient than recommended by his commission. “This is a new world for Illinois,” he said shortly after he and House Speaker Michael Madigan testified in favor of the bill before a House committee this morning.

Madigan said that federal limits were too low and forced candidates to spend too much time trying to find multiple donors to contribute small amounts of money. He also said that they benefit incumbents who have an established list of donors that they could ask for cash.

Some aspects of the bill that Madigan outlined before the committee include:
  • Limited in-kind donations of advertisements, yard signs and people to knock on doors from businesses and labor unions supporting candidates.
  • Unlimited in-kind contributions for legislative leadership or statewide political parties.
  • Fines for violations of election rules would be increased. The Illinois State Board of Elections would be able to audit candidates and committees only if they missed two consecutive reporting deadlines.

Most of the new provisions would not take effect until January 2011, after the next general election. Madigan said that it was designed to keep the next election fair because candidates that started fundraising under the old rules would have an advantage over those who started under the new ones.

The Illinois Democratic Party also would be prohibited from offering support to a candidate in the primary immediately after the bill became law. Yesterday, Senate President John Cullerton said the Democratic Party voluntarily would abide by the new provisions before the law were enacted.

Senate Minority Leader Christine Radogno said she would like to see the same restriction applied to the Republican Party, but it was not included in the bill because Republicans were cut out of negotiations.

The provision actually could help Quinn because it would keep Madigan, chair of the Democratic Party of Illinois, from using the party to support his daughter, Attorney General Lisa Madigan, who is considering challenging Quinn in the Democratic primary for governor in 2010. When asked if he had compromised by accepting a less lenient cap on contributions in exchange for a ban on the Democratic Party's involvement in the primary, Quinn said, “Slate-making by the Democratic Party and using party resources in a primary has been a stock and trade for many decades.” He added: “I think this is a good step for reform and openness. It empowers everyday people who want to run for office. They don't have to run in machine politics. I think this is a very good reform.”

Speaker Madigan echoed supporters by calling it an imperfect bill but the result of compromise. “We don’t represent in this bill that there will be a complete shut down of money being spent for campaigns,” he said, “and we don’t represent that this bill is perfect. We don’t represent that it satisfies everybody. We do represent that it is a significant step forward for the state of Illinois.”

Rep. Ed Sullivan, a Mundelein Republican, responded, “Some of us have a disagreement on how big of a step it is.”

Shortly after HB 7 advanced through committee, House Republicans tried to push a measure, HB 24,which would mirror federal limits. It’s similar to recommendations from the Illinois Reform Commission. However, the GOP was unable to get the support needed to have the bill called on the floor for a vote.

“We will have an ethics bill presented in this House later today that fails the people of the state of Illinois miserably,” said House Minority Leader Tom Cross. Check back for updates on the bill.

Friday, May 22, 2009

Quinn wants high-speed rail for Illinois

By Hilary Russell

The capital plan that recently passed both chambers was missing something that Gov. Pat Quinn said would put Illinois on a path to a more progressive mode of transportation.

Quinn said it was an oversight for lawmakers not to include money for high-speed rail in the $26 billion infrastructure program. Of that, $1.5 billion was not yet earmarked. Quinn said in a Statehouse news conference this morning that he wanted at least a portion of the remaining money to go to high-speed rail.

The General Assembly has nine days to approve a second installment of the capital plan, as well as an operating budget and governmental reforms. “I think it’s important to understand that if we’re going to get this done, we’re going to have to roll up our sleeves in the next week to make this happen,” Quinn said.

High-speed rail would address the economic, energy and environmental crises facing the state and the nation, said Richard Harnish, executive director of the Midwest High Speed Rail Association based in Chicago. It would create jobs, help reduce reliance on motor fuel and reduce air pollutants.

One reason Quinn and a large group of bipartisan legislators want money to be designated for high-speed rail is because it could capture a portion of the $8 billion federal stimulus money available to invest in such transportation. The stimulus package would provide an additional $5 billion in grants over the next five years to kick-start high-speed rail development. To capture a federal match, the state must contribute about $400 million to high-speed rail projects, according to Quinn’s administration.

The first route would travel from St. Louis to Chicago at speeds up to 110 mph. It is being touted as an affordable, environmental alternative to driving or flying with the luxury of shorter travel times.

Hannig said the transportation department has a first-of-its-kind agreement with Union Pacific Railroad to draft a blueprint of the Chicago-St.Louis route, which the team would take to Washington, D.C., as a model and a way to compete with other states for additional stimulus funds.

Chicago to St. Louis would be the first but not the last request, Hannig said. Other routes could include Chicago to Milwaukee, Cleveland and Des Moines.

Wednesday, May 20, 2009

Quinn thumbs his nose at legislature

Story by Jamey Dunn
Photograph by Hilary Russell
Gov. Pat Quinn said today that balancing the state’s operating budget is his top priority and that the capital plan for construction projects should come only after legislators approve a spending plan. The move could be perceived as a dig at the legislature, which is doing the exact opposite.

At an annual Springfield event, the Illinois Governor’s Prayer Breakfast, Quinn said the so-called doomsday budget he released Monday was the “responsible” way for him to inform legislators and citizens about the consequences if lawmakers fail to approve new revenue sources to help balance the budget. Quinn has proposed an income tax increase to help repair a combined $11.6 billion deficit over this fiscal year and next, and he said that he thinks lawmakers will support it before session adjourns at the end of the month.

“We have to help education and public safety and health care,” he said. “And if we don’t have the revenue, there are going to have to be severe cutbacks.”

Quinn said that passing a budget to keep social programs in place should come before a capital plan, but lawmakers plan to pass parts of the capital bill as early as today. This is the first time Quinn has publicly voiced opposition to passing a capital plan before passing an operating budget.

“I want to tell the members of the General Assembly I know they want a lot of [capital] projects and so on, and so do I. But that is not coming before the priority of taking care of real live human beings.”

As for funding for the capital bill, Quinn said that he is still not enthusiastic about legalizing video gaming to help pay for it. However, he said that the challenges the state currently faces might spur him to consider a proposal he wouldn’t normally support. He urged legislators to be flexible about their positions, as well.

“Right now I think it is important for both parties, both houses of the legislature, everybody to become people of Illinois,” he said. “Put aside differences and put aside, maybe, some of their past positions if it means that we have to band together to save our state.”

Monday, May 18, 2009

"Doomsday" projected without tax hike

By Bethany Jaeger and Jamey Dunn
Gov. Pat Quinn tried to bolster his case for the need to raise state income taxes by describing drastic cuts — including laying off thousands of teachers and state police troopers and discontinuing health care for hundreds of thousands of people — if the legislature failed to approve an income tax increase within the next two weeks.

Public employee unions and human service providers immediately warned that a “doomsday budget” would threaten their members and the general public, especially when education and social services are most needed during an economic recession. State legislators, meanwhile, remain split on the need to raise taxes, cut spending or both to balance next year’s operating budget. Quinn estimates that the state faces at least an $11.6 billion deficit when combining this fiscal year and next.

While speaking at a City Club of Chicago luncheon today, the governor said he is telling people what they need to know, not what they want to hear. “Right now, it’s a very hard time, and people don’t like to pay taxes to begin with, and especially in hard times. But if we don’t use the public revenue of Illinois to help rescue our state economy, we’re going to continue in hard times.”

He projected a “slash and burn” budget that would cut $7.5 billion from state spending and rely on $4.1 billion from the federal stimulus funds. The cuts would include:
  • $1.5 billion from education, resulting in the loss of 14,300 teachers and eliminating preschool for 100,000 children.
  • $554 million from higher education, affecting 400,000 college students who would lose their state financial aid grants.
  • $1.2 billion from health care, leading 650,000 people of all ages to lose state-sponsored programs for prescription drugs and retirement health care.
  • $368 million from senior services, ending services for 271,000 seniors who currently use programs for community care, elder abuse and neglect and Circuit Breaker property tax relief.
  • $27 million from veterans’ care, closing four veterans’ homes and eliminating a program to treat traumatic brain injuries and post traumatic stress disorders.
  • $769 million from human services, eliminating home care for 5,000 people with disabilities and addiction treatment and prevention for another 45,000 people, as well as child care for 1,000 children.
  • $549 million from economic development, eliminating all state funding for public transit and AMTRAK.
  • $98 million from agriculture and natural resources, erasing funding for state fairs and closing 60 parks and every museum in the state.
  • $1 billion from local governments, which would affect their ability to fund public safety and other local services.
  • $294 million from public safety, laying off nearly 1,000 state troopers and releasing about 6,000 prisoners early from their detentions.

“I would say to those legislators who think the only way to get to a balanced budget is to cut everywhere we can, maybe they could take some of those prisoners home to their own house when they get out of jail,” Quinn said, drawing laughs and applause from the audience.

However, opponents to Quinn’s proposed income tax increase said the plan is a ploy to scare people into accepting higher taxes. Sen. Matt Murphy, a Palatine Republican, said he thinks Quinn’s proposal is a “gimmick.”

“I think his doomsday budget was the one he put out on March 18 with the biggest tax hike in state history,” he said. “That would cost people their jobs in a recession, and I think that’s the real doomsday.”

Murphy, co-chair of the Senate Deficit Reduction Committee, issued a report along with the other Republicans suggesting cuts that could help balance the budget, highlighting changes in the Medicaid system. “We can balance this budget without raising taxes and without having the draconian cuts that [Quinn] put out today,” he said. “It’s not going to be pain-free. It’s not going to be easy. If it were easy, we wouldn’t be in this situation.” Murphy added that he is disappointed the potential budget cuts that the committee considered have not been a major part of the discussion.

Sen. John Sullivan, a Rushville Democrat and member of the same committee, added that he is concerned cuts to health care and education, two of the largest parts of the budget, would jeopardize the state’s access to federal stimulus dollars. “Because of federal stimulus money that the state of Illinois will be receiving, we cannot reduce eligibility for Medicaid or health care services. And also, with regard to education, we cannot lower our appropriations,” he said.

Others say it’ll take both: cuts and tax increases. Rep. Linda Chapa LaVia, an Aurora Democrat who chairs the appropriations committee for elementary and secondary education, said taxpayers will need to see that the state is cutting as much as it can before they’ll accept paying increased taxes.

Sen. Donne Trotter, chief budget negotiator for the Senate Democrats, said he thinks approving a tax increase would be easier for legislators than approving drastic cuts outlined by Quinn’s office. He said: “Our problem is not finding a revenue source. It’s agreeing on one. There’s so many options out here, and we’ll just have to wait and see, as we progress, which one it is going to be.”

Trotter said he didn’t think a tradition such as the Illinois State Fair would really be cut. But, he said, people should take Quinn’s so-called doomsday budget seriously because cuts will be necessary to balance the budget. “There’s going to have to be some reductions. We can’t tax our way out of this,” he said.

Quinn stuck to his message that Illinois needs a permanent income tax increase, as opposed to a temporary increase, to manage the structural deficit and to “deal with reality in the 21st century.”

“Very few governors say, ‘Let’s raise taxes.’ But if you have to do it in order to make the people stronger today and in the long run, so be it.”

Meanwhile, legislative leaders met again behind closed doors this evening to talk about a major construction program funded by various tax and fee increases. Expect movement on that plan as soon as tomorrow.

Tuesday, April 28, 2009

If the flame is extinguished - UPDATED

By Jamey Dunn
Quinn is sticking to his back-up plan of tackling ethics issues at the ballot box if the legislature does not approve substantial reforms by the end of this session. However, the state Constitution limits the issues voters can petition to get on the ballot.

“If things don’t go exactly according to plan, there is a process in Illinois that exists that allows people to go to the ballot box,” Quinn said outside his Statehouse office this morning. “And I haven’t been a stranger to that over the years, and we certainly will examine that, if necessary. But, I hope it isn’t.”

Despite Quinn’s generally optimistic and cooperative tone, Quinn essentially said if the legislature fails to make major changes in the way state government operates, he would look to the voters to do it for them.

He’s tried to do that in the past. However, the proposals were blocked from the ballot by the Illinois Supreme Court in 1976, when it ruled the initiatives did not fall under the limited scope set by the Constitution. The state charter limits voters from changing anything other than the section that deals with the legislature. And any proposed changes have to pertain to “structural and procedural subjects.”

The governor said he would like to broaden the way voters can amend the Constitution by allowing them to also consider initiatives related to ethics, which he said would “give the voters ongoing power to enact ethics wherever needed.”

Quinn backs other changes that were not recommended in the report, including recall of elected officials and extending public financing beyond judicial races to the other branches of government. He said that he hopes to get a recall amendment on the ballot in 2010. UPDATED: Lawmakers are considering several recall amendments. Some would grant voters the power to recall executive officers only, and some would apply to the legislative and judicial branches, as well.

Commissioners said they could not reach a unanimous decision on whether to recommend a recall amendment, so the report lists “recall” as needing further consideration.

Quinn said that because many of the proposed ethics reforms have been discussed for years, the General Assembly should be able to make decisions on them by the end of session. “The people of Illinois are impatient, and they feel it shouldn’t take long at all to enact good government and clean government.”

Friday, April 17, 2009

New leadership for a board with history of corruption

by Jamey Dunn

Gov. Pat Quinn announced today his pick to run the state health planning board that has been recently plagued by scandal.

At a Chicago news conference, Quinn named Dr. Quentin Young, his one-time personal physician and an advocate for health care reform, to chair the Illinois Health Facilities Planning Board. Young has served as chairman of the Department of Medicine at Cook County Hospital and president of the American Public Health Association. He is currently the national coordinator for the universal health care advocacy group, Physicians for a National Health Program.

The board approves major construction projects and equipment purchases for health care facilities in Illinois. They could include such improvements as “who gets to have an MRI machine and who gets to build a new wing,” according to Chris Mooney, political studies professor with the Institute of Government and Public Affairs at the University of Illinois at Springfield.

The choices the board makes have a substantial financial impact on many in the health care industry. Because of that, Mooney described the board as “a place that has attraction to those who are interested in making money.”

That apparently was the attraction that drew former board member Stuart Levine, and former Gov. Rod Blagojevich fundraiser, Tony Rezko to seek control of the board. The two used their influence over the body, which also considers proposals for new hospitals in Illinois, to pressure interested parties for kickbacks. Levine, a former board member, has pleaded guilty to corruption charges, and Rezko, a friend and adviser of former Gov. Rod Blagojevich, has been convicted on corruption regarding their dealings with the board.

Mooney said that past corruption on the board does not mean that there will continue to be problems under new leadership.

“Obviously some pigs went to that trough,” He said. “But that doesn’t mean that would always be the case.”

Wednesday, March 18, 2009

Legislators eye "adjustments"

By Bethany Jaeger, Jamey Dunn and Hilary Russell
Gov. Pat Quinn wrote his 40-minute Budget Address himself, just one indication of the change under the Capitol dome since the impeachment and removal of former Gov. Rod Blagojevich.

Wearing glasses and a navy blue suit, Quinn opened his speech Wednesday before the General Assembly to a standing ovation from Democrats and Republicans. But the tone soon changed when Quinn described the context in which he proposes a bold spending and revenue plan:

  • An integrity crisis — The state citizenry is damaged and embarrassed by the “bipartisan betrayal” of former Govs. George Ryan, a Republican serving in federal prison, and Blagojevich, a Democrat fighting federal corruption allegations.
  • A fiscal crisis — The budget deficit is projected to be $11.6 billion by the end of fiscal year 2010, and the state can’t afford to pay nearly $5 billion in overdue bills.
  • An economic crisis — Unemployment is rising to nearly 8 percent.
“To be direct and honest, our state is facing its greatest crisis in modern times," Quinn said.

David Merriman, an economist and professor of public administration with the Institute of Government and Public Affairs, said in stark contrast to the budgets proposed by Blagojevich, “Quinn’s proposals are transparent, and the effects are relatively simple to identify. There is little or no smoke and mirrors.”

Senate President John Cullerton said he could see the looks on the faces of Democratic and Republican legislators. “Even if you didn’t agree with everything he said, it was just so gratifying to see the reaction of the members based on the governor’s sincerity and his words.”

Cullerton also pointed to the weighty proposals of an income tax increase, a road and school construction program, a reformed pension system and a slight bump in education funding. “It’s a lot of work, and he’s to be congratulated for making those proposals.”

But that doesn’t mean Quinn will get everything he wants. Legislators of both political parties already are eyeing “adjustments,” in Cullerton’s words, to ensure that an income tax increase is used as a last resort.

“If we cut as much as the governor has proposed, and we guarantee that we have paid our bills, and we guarantee that we have a capital bill, then — and only then — do we look to the income tax and determine whether we need it,” Cullerton said. “And, if so, how much we have to raise it?”

Income taxes
As we said last night, Quinn’s blueprint relies on a state income tax increase of 1.5 percentage points for individuals and 2.4 percentage points for businesses. But some of the new tax revenue would be shaved off to provide a heightened personal tax exemption, from the current $2,000 to $6,000 per individual. The net revenue: about $3.15 billion, according to House Democrats.

That’s one area subject to negotiations. Senate Democrats want to look at a personal exemption that’s lower than Quinn’s proposal or, possibly, phasing it in over a few years. Or, while they eventually could sign on to an income tax increase, they might seek a lower rate.

Pensions
Quinn also wants to restructure the public employee pension system, which we wrote about last week. Business groups have been advocating for pension reform for years. Yet, there’s a concern about Quinn’s plan to divert money away from the amount the state is supposed to pay into those systems through 2011.

Quinn proposes changing benefits for newly hired employees. Among other changes, that would increase the retirement age and require them to pay more into their retirement benefits. At the same time, Quinn proposes shorting the amount the state pays into the pension system by $500 million this year and $2.3 billion next fiscal year (CORRECTION: I misread a chart and mistakenly thought there would be a third year of reduced pension funding. I was wrong. There are only two years, totaling $2.8 billion. I sincerely apologize.). The pension reforms are estimated to save about $160 million by 2045.

Cullerton said while he believes the governor’s pension reforms could save money over time, “we just have to examine the numbers and make sure that those savings that we would get in the future would justify lower payments into those funds right now.”

Public employee unions reject the idea in its entirety. According to Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees Council 31, retiree benefits average about $18,000 a year. He said the state’s debt should have nothing to do with employees who consistently contribute to their benefits. “Cutting future benefits will not reduce the state’s current debt by a single penny, and skipping payments on the basis of such imagined savings will only compound the current crisis.”

State employees
AFSCME also opposes Quinn’s idea of making current employees, minus public safety, health care and university workers, take four unpaid days off, called furlough days, and pay more into their health care plans.

There’s a contract in place, Lindall said. “The state can’t force changes in any of these areas. Under our contract, they have to negotiate it. If they don’t negotiate those changes, we will enforce our contract in court.”

What else is on the table?
Republicans say everything — from budget cuts to expanded gaming — should be on the table before resorting to an income tax increase.

While Senate Minority Leader Christine Radogno agreed with parts of Quinn’s proposed budget such as pension reforms and the removal of a gas tax increase as a revenue source, she called an income tax increase “premature and irresponsible right now.”

House Minority Leader Tom Cross agreed that Medicaid spending should be reduced and, he added, lawmakers need to ensure they assess all the possibilities for using federal stimulus funds to help fill in the deficit.

Neither GOP leader would say that the state could pay off its debts without raising taxes, but they both said that tax increases should only be considered when all other options have been exhausted. Both also said that Republicans would be less wary of a tax increase if it would have a set end date.

Expanded gaming as a revenue source isn’t dead, either. Rep. Jim Durkin, a Western Springs Republican, said the state still should consider leasing the Illinois Lottery to a private entity to raise money, which has been tried before. Radogno agreed that the state should look to the “voluntary activity of gambling” for increased revenues.

Democrats also have been considering expanding gaming as a revenue source, although Cullerton said he would not intend to expand gaming as a way to pay for a capital construction plan. He did say gaming could be used to lessen the need for an income tax increase.

We'll talk more about capital plans soon.

Tuesday, March 17, 2009

Share the wealth and spread the pain

By Bethany Jaeger, with Jamey Dunn and Hilary Russell contributing
The theme of Gov. Pat Quinn’s first budget proposal, which will be announced at noon Wednesday before the General Assembly, is “shared sacrifice.”

It is “a very difficult budget, but it’s an honest budget,” Jack Lavin, Quinn’s chief operating officer, said during a Springfield budget briefing tonight. “It’s an honest budget that we present the people of Illinois to address the tsunami of red ink that we are facing, but it’s one worth having — shared sacrifice, shared responsibility — to address this unprecedented budget crisis.”

The tsunami of red ink he’s talking about is the recent $11.6 billion deficit projected by the end of next fiscal year. The budget proposal needs to go through the legislative process, meaning it’s far from a done deal. For it to become law, Quinn will have to persuade lawmakers to take a series of politically tough votes.

The most controversial item would be to increase the state income tax rate on individuals and businesses. The rate levied on individuals would rise from 3 percent to 4.5 percent, while the rate applied to corporations would jump from 4.8 percent to 7.2 percent.

According to the administration, if Quinn's budget is enacted, about half of the state’s 11.3 million taxpayers would pay more in state income taxes, while the rest could pay less.

That’s partially because Quinn wants to help individuals cope with the increased rate by tripling the personal exemption from $2,000 to $6,000, which would take a chunk out of the new tax revenue. A family of four would pay no state income tax on the first $24,000 they earned.

Quinn also proposes implementing a “back-to-school sales tax holiday” for 10 days each August to help spur the economy and help families better afford everything from school supplies to gym shoes for kids.

Jerry Stermer, Quinn’s chief of staff, said the extraordinary budget scenario creates a once-in-a-lifetime opportunity to reform the state’s tax structure based on ability to pay. “So those who have more ability can pay more. Those who have less ability ought to be asked to pay much less. And this would bring that kind of fairness to our code.”

If the legislature didn’t enact all of Quinn’s proposals, his administration says drastic changes would occur. According to Ginger Ostro, Quinn’s budget director, if the state cut spending without raising new revenue to fill the deficit, state government would return to 2004 funding levels. The result: 800,000 people losing health care coverage, 200 state police officers laid off, 34,000 teachers laid off, per-student education funding down by $1,200 per child, and one of the state’s four veteran’s homes closed.

Highlights
State employees (Pending negotiations with public employee unions)
  • Take four furlough days (one each quarter) — $36 million saved.
  • Pay more into their health care plans (the administration offered no estimate per person) — $200 million saved.

Pension benefits
  • Maintain the “defined benefit” plan, but new employees would receive fewer benefits.
  • Employees would increase their contributions by 2 percentage points.
  • Cost-of-living adjustments would be readjusted to 50 percent of the consumer price index or 3 percent, whichever is lower.
  • Similar to the Social Security system, retirement age for new employees would be 67.
  • Employees covered by Social Security would earn 1.5 percent of their final pay per year of service. Employees not covered by Social Security would earn 2 percent.
  • Estimated savings by the new system: $162 million by 2045.

Pension funding
  • The administration would pay less than scheduled into the five public employee pension systems by $550 million this fiscal year and by nearly $2.3 billion next fiscal year.

Budget cuts
  • The $500 million in cuts implemented in FY09 would remain.
  • Across-the-board 2 percent reductions in grant programs, excluding programs for education and health care — $80 million saved.
  • Reduce some community grant amounts by 10 percent and eliminate other grants altogether.
  • Consolidate the Historic Preservation Agency into the Department of Natural Resources, reducing some administrative positions — $2.3 million saved.
  • Other cuts and efficiencies to state agencies — $390 million total saved.

Federal stimulus
  • Use about $4 billion of federal stimulus funds to plug the state deficit.
  • Use $2.9 billion in federal stimulus funds to reduce the Medicaid payment cycle to 30 days.
  • Use $2 billion to support elementary, secondary and higher education to avoid budget cuts below current FY09 levels.

Road and school construction
$26 billion plan paid for by:
  • Increase driver's license fees from $10 to $20.
  • Increase license plate fees from $79 to $99.
  • Increase vehicle registration fees from $15 to $30.
  • Increase title transfer fees from $65 to $105.
  • Use Road Fund money.
  • Shave some of the local governments’ share of tax revenues to pay for school construction.
  • No increase in motor fuel taxes.
We'll have reaction from lawmakers and policy analysts after Quinn's budget address tomorrow.

Monday, February 09, 2009

Quinn's cabinet and agenda take shape

Gov. Pat Quinn’s has selected two relative outsiders as his first picks for behind-the-scenes staff. He named a social service advocate for children as his chief of staff and a former U.S. attorney whom he’d met less than a month ago as his chief legal counsel.

Jerry Stermer of Elmhurst said this morning that he accepted the chief of staff position because the administration would put “children first.” That’s rounding out Quinn’s agenda that, so far, has prioritized a capital construction program, a plan to chip away at the state’s $4 billion in unpaid bills, a yet-to-be announced education plan and an ethics reform package.

Stermer is the founder and 22-year president of Voices for Illinois Children, a privately funded group based in Chicago that advocates for health care and education. The group worked with former Gov. Jim Edgar in a failed attempt to change the state’s tax structure to fund public education, relying more on state income taxes and less on property taxes. The measure has been proposed numerous times in various forms since then, but Senate President John Cullerton, who now controls the flow of legislation in his chamber, is a proponent.

Stermer and Quinn acknowledged during a Chicago news conference this morning that taxes are on the table as part of a “rescue plan” for the state budget, but they also used the words “fairness strategy” to indicate tax breaks or deductions for low-income families. “We do want to have in Illinois a tax code that is fair to parents raising kids,” Quinn said. “I think I saw once that our state gives more tax breaks to those raising thoroughbred horses than it gives to parents raising children. We’re going to change that.”

Stermer’s group also worked with previous governors to increase the number of children with health insurance through state-sponsored programs, including former Gov. Rod Blagojevich’s All Kids program. Stermer said the organization supported Blagojevich’s attempt to expand the FamilyCare benefits to middle-income families, although he did not take a stance on the legal challenge of whether Blagojevich overstepped his authority by skirting the legislature to do so.

Stermer’s background includes working for the Illinois Department of Children and Family Services from 1973 to 1979, followed by a supervisory position with the Legislative Advisory Committee on Public Aid. He was a Peace Corps volunteer in Ecuador in 1968 through 1970. He met Quinn in the 1970s, when he said in our profile of the soon-to-be governor that Quinn introduced him to working on campaigns of independent- and reform-minded people who ran against the Chicago Democratic machine.

Ted Chung of Highland Park said Quinn called “out of the blue” to offer him the job as chief legal counsel about three to four weeks ago. He said that could be an asset. “I don’t have a lot invested emotionally in this man,” he said alongside Quinn in the news conference. Because of that, he said, he will “absolutely” be willing to tell the governor “no” when needed. “When called for, not only to say no, but to say no very clearly, very loudly, very unambiguously.”

One of his jobs will be to work with the new Illinois Reform Council, which is expected to recommend a series of ethics reforms by mid-April.

Chung, among other positions within the City of Chicago, was Mayor Richard Daley’s former deputy chief of staff for public safety. He also worked as an assistant U.S. attorney in the Northern District of Illinois between 1998 and 2004. He graduated from Dartmouth College in New Hampshire and earned his law degree from Northwestern University Law School in Evanston. He was the editor in chief of the Northwestern University Law Review.

Friday, January 30, 2009

Quinn's first days in office

In his first full day as Illinois’ top executive, Gov. Pat Quinn addressed ethics and political campaigns, two topics fresh in the minds of voters after former Gov. Rod Blagojevich’s legal and political problems.

Holding a bow tie of the late U.S. Sen. Paul Simon, Quinn signed his first executive order on the speaker’s podium outside of his new Statehouse office. The order officially charters an Ethics Reform Commission that he started a few weeks ago. By mid-March, the commission is expected to recommend major policy changes for everything from the way the state hires contractors to the way candidates fund political campaigns. Other topics of interest include improving transparency of state government, allowing voters to recall elected officials, revamping the way legislative districts are redrawn and strengthening protections for whistleblowers, according to Duane Noland of Blue Mound, former state lawmaker who was appointed to the commission. He said the ultimate goal is to change the attitude that Illinois has a culture of corruption and to start attracting better candidates.

The governor’s order establishes the commission as a public body, subject to public access and open meetings laws.

While that reform panel, led by former federal prosecutor Patrick Collins, could propose reforms that would be drastic for Illinois — including limiting the amount voters could donate to political campaigns — Quinn made a second statement this morning that could make waves with statewide political party leaders.

Quinn said he supports moving the primary election from February to September to shorten the campaign season. Illinois Democrats moved the date from March to February last year in an effort to boost the state’s significance in selecting now President Barack Obama as the Democratic candidate. Illinois became one of 22 states on the so-called Super-Duper Tuesday primary of 2008. The school of thought was that states that held later election dates would be less likely to matter because a majority of states already selected their candidates and doled out their electoral votes.

The ironic part is that because so many states had a February 5 primary, none mattered as much as the states that held primary elections later in the summer.

Quinn said the state’s February 2, 2010, primary would be the earliest in the country. “I don’t think it behooves Illinois or helps Illinois to have a huge, long, nine-month period of a general election. A lot of people think we are in perpetual campaign mode, perpetual fundraising mode. We need to identify the problems — that’s one of them, a big one — and I think solutions include having a shorter general election campaign, where the voters can evaluate the candidates. Six, seven, eight weeks is sufficient. It is for the presidency. I think it is for the governor.”

Moving a primary election, however, never has gained a consensus, said Steve Brown, spokesman for the Illinois Democratic Party, and may not actually shorten the campaign season. “We just saw where people were campaigning more than a year ahead of the balloting, so I don’t know that the date of the elections has that much to do with it anymore.”

He said while Illinois was in the mix of 22 Super-Duper Tuesday primaries, Illinois at least gave Obama a “good, solid big-state victory to offset Hillary Clinton’s” wins.

Quinn’s first few days in office starkly differ from Blagojevich’s tenure. Quinn ate dinner and slept in the governor’s mansion after taking his oath of office. He started his morning news conference less than 10 minutes late. He answered questions for about 30 minutes, and after he ended the news conference at the podium, he continued to talk to reporters who huddled around him.

His schedule today included meeting with all constitutional officers in Chicago and meeting with the Illinois Association of Park Districts. Tomorrow, he’s scheduled to speak at a conference of the pubic employees union, the American Federation of State, County and Municipal Employees, in Springfield, before heading to Peoria to thank volunteers who help people file their income tax returns and apply for low-income assistance. He said he wants to get to every part of the state quickly.

He also established his favorite phrase to describe his work ethic: Early to bed, early to rise. Work like hell and organize.

He said his hope is to have the most productive and reform-minded legislative session in recent memory. “That is what the public wants, and I think if we do what the public wants, we’ll do pretty well.”

Thursday, January 29, 2009

Meet Gov. Pat Quinn

By Bethany Jaeger
Pat Quinn was once booed on the House floor in 1976 (see our recent Pat Quinn profile here). Tonight, he received a standing ovation as he took the oath as Illinois’ 41st governor. Before all constitutional officers and legislative leaders, as well as family and friends and some lawmakers, Quinn smiled and raised his right hand.

Turning to the audience, filled with all constitutional officers and legislative leaders, he addressed the serious challenges ahead. He first recited the familiar words of one of his favorite politicians, Abraham Lincoln, by honoring the philosophy of “government of the people, by the people and for the people.”

He called upon Illinoisans to prepare to make sacrifices and to work together to solve the state’s economic crisis, fiscal crisis and integrity crisis. Then, fighting tears, he read a letter written by an admiral in the U.S. Navy about his late father, Patrick Quinn. He said the people of Illinois could benefit from the same characteristics possessed by his father. “If all of us, the people of Illinois, are cheerful, earnest, cooperative, frank and honest, we can achieve great things in the Land of Lincoln.”

After receiving congratulations from lawmakers, he conducted his first news conference as governor in the Statehouse Press Room. He often intermixed serious statements with more relaxed and jovial moments. Meanwhile, one flight of stairs below, people stood on watch for the locks to be changed on the executive office.

Quinn will make his first announcement as governor at 10 a.m. Friday outside of that Statehouse office. Joking with reporters, he said it will be a surprise. Otherwise, he said, “you won’t come back. It’s my one-and-only shot.” He said he plans to regularly be available to the media because he enjoys the exchange and because it keeps public officials accountable.

Seriousness culminated with mention of the state budget. He said with no cooperation from Blagojevich’s administration to ease the transition, the governor’s annual budget address has been moved back from February 18 to March 18, giving him time to assess the damage and find out what the true size of the deficit. “I think the governor has to level with the people of Illinois. That’s what they want. And then we’ll have a blueprint for digging out of this morass.”

He said the budget he will propose will be one “that will be a proper one for the times that we are finding ourselves in.” Tax increases could be on the table, but Quinn said: “Nobody likes paying taxes. April 15 is not my favorite day, never will be. So I think it’s important to understand that in our democracy, the price of being in a democracy is that citizens agree that they do have to pay taxes in order for the common good. And so we will find a way to have a fair system, which hopefully keeps taxes as low as possible.”

He repeatedly tried to shift the public’s focus to the future. “There’s a reason God put our eyes in front of our head. If we’re going to always look backwards, we probably won’t go very far in Illinois or anywhere else. I think we need to look forward.”

Priorities will include funding a capital plan, which he said will emphasize sustainable and efficient energy and conservation and infrastructure that will allow for fiber optic lines down the road. Other priorities will include public safety, education and health care.

He addressed various issues before heading to the Executive Mansion a few blocks away for dinner with his family, including his 91-year-old mother. Here’s a brief summary of the topics he addressed and philosophies that could drive his proposals next month:

  • Public employee positions will be “under review.” He said, “If you are doing a good job and being diligent, that’s what we’re looking for.”
  • The recently appointed director of the Department of Natural Resources, former Rep. Kurt Granberg of Carlyle, might not be up to par with Quinn’s desire to have a “natural resources professional” in that position.
  • He plans to open state parks and historic sites that Blagojevich closed after cutting state funding.
  • He will take down the Chicago Tollway signs with Gov. Rod Blagojevich’s name on them and might replace them with signs that say, “The people of Illinois welcome you.”
  • Quote of the night: “I am proud of being frugal. I’m a VIP member of the Super 8, and I moved up from Motel 6.”
  • He followed up with this: “I think being frugal is useful, but I am very generous. I think everyone will tell you that I’m very generous to a fault.”
  • He would not address whether he will run for governor in 2010. “I don’t think the people of Illinois need politics right now. We’ve had our dose of that — a heavy dose — for the last seven weeks. I think this should be a year of governance, where people really work on repairing damage and making things better. And there will be plenty of time for politics in 2010.”
Blagojevich: I will continue to fight for the people
By Jamey Dunn
At the same time Quinn gave his news conference, Blagojevich spoke outside of his home and said he was “saddened” but “not surprised” by the Senate’s decision to remove him from office. He listed what he deems as his accomplishments in health care and education and listed all the public servant jobs he has held from his most recent office back to when he was a prosecutor. He said that although he is no longer governor, he will continue to fight for the people of Illinois and to prove his innocence.

"I love the people of Illinois today now more than I ever did before."

Thursday, December 11, 2008

It only gets harder

Illinois Gov. Rod Blagojevich’s arrest this week unleashed a fury of activity that a) demonstrates how complicated and unprecedented this week’s events have been in Illinois and b) gives us a potential glimpse into what our future state government could look like.

Everyone agrees that the state legislature needs to act quickly but fairly. Yet, there’s already dissension among the legislative leaders and the second-in-command, Lt. Gov. Pat Quinn. If next week’s emergency legislative session doesn’t foster some kind of consensus-building atmosphere, the national media will continue to sharpen their pencils and take copious notes about how such a screwed up state produced the next U.S. president.

Case in point: CNN’s headline the day after the governor’s arrest: “Illinois state politics read more like a script from ‘The Sopranos’ than a page out of the history books.”

The context
  1. All 50 Democratic U.S. senators indicated they would not seat anyone appointed by Blagojevich to replace President-elect Barack Obama, so that begs the question of how Obama should be replaced: Let the lieutenant governor appoint a replacement, or change state law to let the Illinois voters elect a new senator.
  2. There’s mounting pressure, even from the future president of the United States, for Blagojevich to resign. If he doesn’t, which is somewhat expected for this unpredictable individual, then there’s question of whether the legislature or the state Supreme Court shall kick him out of office.

The intertwined debate
In a very gubernatorial-like news conference from his Statehouse office this morning, Quinn said he doesn’t want to wait for a special election to fill Obama’s Senate seat. He would select a replacement as his first act as governor, if Blagojevich resigns or is forced out.

Quinn added that the governor’s legal problems already cost the state. Standard & Poor’s Rating Services put the state on a negative credit watch, potentially making it more expensive for the state to borrow $1.4 billion to pay down backlogged bills.

“We’re going to have to spend more taxpayer money to borrow $1.4 billion … because we have a cloud, a storm cloud, over the governor of Illinois and his chief of staff,” Quinn said.

The short-term borrowing is delayed by a few days, according to Carol Knowles, spokeswoman for state Comptroller Dan Hynes. She did not comment about why it was delayed but later said, "Everything in state government is in jeopardy as long as the governor remains in office."

The need for that borrowing plan adds to the urgency of why the Illinois General Assembly should immediately address “the source of the problem,” Quinn said, referring to getting Blagojevich out of office. “To focus on anything other than that, I think, is missing the highest priority.”

The House and Senate are scheduled to come back into emergency session Monday and Tuesday, but the intent is to advance legislation that would change state law so that voters could choose Obama’s replacement through a special election.

Quinn frequently speaks of “government by the people and for the people” and said that a special election would be ideal in normal circumstances. But the current scenario would make it more delayed and more expensive — by about half a year and $50 million. Quinn said that lag time would rob the state of a voice while the Congress voted on major decisions for reviving the national economy.

So far, there’s little indication that the chambers will comply with Quinn’s ideas.

Senate Republicans released a statement that supports the call for a special election. Incoming Senate Minority Leader Christine Radogno is quoted in the release as saying: “It is ludicrous to talk about anyone appointing the next United States senator. … There is no way that an appointment process can be free from the stench of this corrupt administration.”

In Illinois, the lieutenant governor and the governor do not run as running mates in the spring primary elections. They get lumped together on the same ticket in the November general election, making Blagojevich and Quinn running mates. Yet, Quinn said this morning that since the 2006 election, he repeatedly has spoken out against Blagojevich for various reasons, including the vastly unpopular idea to levy a gross receipts tax on businesses. Quinn was one of the most vocal supporters of an amendment to the state Constitution to allow voters to recall elected officials, a movement started because of Blagojevich. Quinn also held a rally of sorts outside one of Blagojevich’s fundraising events this year to support ethics reforms that will ban so-called pay-to-play politics, the heart of the federal probes involving Blagojevich.

House Minority Leader Tom Cross said a special election is the only way to help restore the public’s trust in the system. And while not alleging anything improper done by Quinn, Cross said an election would avoid perceptions that the appointment process is tainted.

Impeachment
Cross also introduced the first resolution that could start the impeachment process. It would form a committee to gather evidence and determine whether there’s cause for impeachment. Four House Democrats also released a letter saying they wanted impeachment proceedings to start immediately, allowing for the quicker appointment of a U.S. Senate replacement.

House Speaker Michael Madigan said he’s “prepared to discuss the suggestions of the House Republican Leader.” But it doesn’t look like he’s exactly on board with them. Steve Brown, Madigan’s spokesman, said: “They just want to have a committee to investigate the investigation. That seems like a two-step backward process to me.”

Cross, however, said this afternoon that his proposal is based on House proceedings in 1997. A special investigative committee was formed to gather evidence and decide whether it was enough to move forward with impeachment proceedings for then-Illinois Supreme Court Justice James Heiple. “There’s not a lot of history, here. There’s not a lot of guidance in the Constitution, so we’re trying to respect what the speaker did before,” Cross said. “The bottom line is we want to move forward.”

If Madigan wants to jump right into impeachment proceedings by the full House, Cross said he’s open to that. “I’m not going to block something because the speaker has a different way to go. We just need to move, I think, soon.”

The Heiple impeachment took six weeks. Former President Bill Clinton’s impeachment process took four months. Cross guessed that Illinois could get it done in about month, although no one really knows. “Regardless of the amount of time it takes, I think you need to start the process, or it’ll just hang over us longer and longer and longer.”