By Jamey Dunn
Illinois lawmakers approved the spending to set up the state’s concealed carry of firearms permit today, but other issues such as pension reform, tax breaks for corporations and enhanced penalties for gun offenders will have to wait.
The House adjourned abruptly this morning after a procedural move blocked a bill to increase mandatory sentences for drug crimes. Senate Bill 1342 would increase the mandatory minimum sentence for felons or gang members caught carrying a gun without a Firearm Owners Identification (FOID) card to four years. The proposal would require those convicted of the crime to serve 85 percent of their sentence.
Sponsor Mike Zalewski, a Riverside Democrat, removed a provision that would have applied to first-time offenders and in doing so was able to get the support of the National Rifle Association. But members of the black legislative caucus opposed his bill. Chicago Democratic Rep. Kenneth Dunkin used a House rule to block the bill from being called for a vote because the budgetary impact of the measure was not made available to lawmakers through a formal process known as a note. “I filed the note on behalf of the Illinois legislative black caucus for those of us in the House and the Senate,” Dunkin said. We have expressed time and time again that we have some basic problems with this mandatory minimum — that it’s too all encompassing, it takes in way too many people unnecessarily. The collateral damage is going to be overwhelming, and it’s going to wrap up too many innocent citizens. All we simply wanted to do was to make sure that the bill went after the bad guys.”
After the notes were filed and the information was not immediately available, House Speaker Michael Madigan quickly adjourned the fall session. Harrisburg Democratic Rep. Brandon Phelps, who sponsored the state’s new concealed carry law, has been working on the bill with Zalewski. He said he was not exactly surprised that the bill did not move forward today because he said many Democrats told him they had reservations about it. “The speaker said that we’re not doing it today, more or less. ... We spent so many hours working on this and we had a deal. Now we’re not doing it today at all. So we’ve got to come back in December, hopefully we’ll call it then.” Several House members mentioned as they exited the chamber that they expect they might return in December to take up public pension legislation.
Zalewski, who has partnered with Chicago Mayor Rahm Emanuel to push for the proposal, blamed the Illinois Department of Corrections for not providing details of how the measure would affect its budget and prison population. The IDOC opposed the bill because officials said the department did not have the money or capacity to house the population in crease it would cause. “The Department of Corrections knows how much the bill costs. It’s their basis for their opposition of the bill. Yet they couldn’t walk down to the House clerk’s office and file it in time,” Zalewski said.
A spokesman for the department said the changes to the bill yesterday made it difficult for them to recalculate the impact quickly enough. “This is a very complex piece of legislation, and every time the sponsors file amendments changing provisions of the bill, there is substantial work and analysis that must be done to determine the impact of the changes,” Tom Shaer with IDOC said in an email. “Amendment 5 was just added to this bill yesterday afternoon. IDOC has had staff analyzing the impact of this amendment since that time. We have tremendous respect for everyone in this process and are obligated to furnish them with accurate information and thorough, well-researched projections.”
Members of the black caucus say they want to address the violence in a more holistic way that includes investments in education and rehabilitation programs.
“There is a way to do both of these things. To make sure that the people that need to go into prison go into prison but that we also deal with the 40 percent of people who are there for nonviolent offenses, who need to be in cheaper alternative programs that give them a better chance and a shot at life. While also making sure that the folks who need to be there, and that’s felons and gang bangers, actually end up in prison — in a prison that has room for them to be there,” said Chicago Democratic Rep. Christian Mitchell. “I think that the mayor and Rep. Zalewski are trying to do the right thing, but the how really matters.” Some caucus members added that they were concerned that some of the previous felonies that would make offenders eligible for the mandatory minimum sentence were nonviolent offenses, such as shoplifting. They also said they would like to see a time limit, so that a crime that occurred a decade ago would not make someone eligible for a mandatory minimum sentence.
Zalewski said he has been working to negotiate the bill and that some who are opposed will never support the concept of mandatory minimum sentences. “I’ve negotiated on this bill for six weeks. ‘No’ is always going to be the answer for some people. You saw it today. You saw an unwillingness to have a debate about public policy and public safety. And [opponents] resorted to tricks because the votes were there. That’s what happens in this building sometimes.” But members of the black caucus disagree that the bill would have passed if called for a vote.
Meanwhile the Illinois Senate approved a supplemental spending bill worth about $50 million. The largest chunk of that, almost $34 million, is for implementation of the concealed carry licensing system. Only about $500,000 of the spending in the bill comes out of the General Revenue Fund.
House Bill 209 does not include the $112 million that would be needed to give state workers back pay. In 2011, lawmakers did not appropriate the money for contractual raises for state employees, but a judge ordered the state to pay the increases with interest. House Speaker Michael Madigan has said that state agencies should work within their current budgets to find the money for the pay.
Sen. Mike Jacobs, a Democrat from East Moline, voted in favor of the bill, which received broad bipartisan support. But he said that lawmakers would eventually need to approve the money for workers. “I just think it’s important that the Senate knows that we owe this money and at some point in our career, in our lives, we ought to pay it.”
With the House adjourning after less than an hour spent in session today, many issues were left without resolution. Supporters of tax break plans for Archer Daniels Midland Co. and the newly formed Office Max Inc. saw no urgency to call those measures for a vote in the Senate when it became clear that the House would not vote on them today. ADM is looking to move its headquarters from Decatur and is considering Chicago, among other options. Office Depot Inc., the product of a merger between Office Depot and Office Max, is choosing between Naperville, Office Max’s current headquarters, and Boca Raton, Fla., where Office Depot is based.
The House also did not take up a bill that passed in the Senate yesterday to restore Medicaid dental benefits to adults. Chicago Democratic Rep. Monique Davis said that she thinks that the House will likely approve that bill early next year. “I think it’s going to pass. I think it’s going to get a lot of support. We’ll get it when we first come back in January. We’ll be able to do that because that will be one of the first few days we can do that.” If lawmakers wait until January on some issues, they will need fewer votes to achieve an immediate effective date on legislation. “Don’t think because we’re not on that House floor that people aren’t working. People are working,” Davis said.
Some issues may not have to wait until January. House Speaker Michael Madigan has said that he hopes lawmakers will hold a session to vote on changes to the state’s public pension systems. Legislative leaders met on the issue last week and say they feel progress was made. They sent components of a plan to the pension systems to get cost savings estimates. Those projections usually take about 10 days to produce.
Having another potential shot at a legislative session soon may give those who could not get their bills passed during veto session another bite at the apple. However, knowing that they could be back at the Statehouse in the near future, lawmakers may have deflated some issues by taking urgency out of the situation. Why take the controversial vote today that can be pushed off for another month? Still, with the historic passage of same-sex marriage, approval of a supplemental appropriation bill, and both chambers passing changes to the pension system for Chicago Park District employees, this veto session was more eventful than many in recent memory.
Showing posts with label Veto session. Show all posts
Showing posts with label Veto session. Show all posts
Thursday, November 07, 2013
Wednesday, November 06, 2013
Tuesday, November 05, 2013
Veto session roundup
By Jamey Dunn
In addition to passing legislation legalizing same-sex marriage, Illinois lawmakers took up several other issues today.
Budget bill
The Illinois House voted to approve additional spending for the current fiscal year, but the legislation did not include funding for back pay owed to state workers.
House Bill 209 contains $49.6 million in spending, the bulk of which, $30 million, would be used to implement the state’s new concealed carry law. Most of the money in the bill comes from special funds. Only about $500,000 of general revenue funds would be spent under the measure.
Gov. Pat Quinn’s budget office has been pushing for the $112 million to pay workers since a judge ordered the state to make good on the raises he initially denied. Republican Comptroller Judy Baar Topinka also called upon lawmakers last week to approve the money for workers because the state is required to pay interest on the pay.
“They’re still negotiating that. I think we’re going to have to come back. Sooner or later, we’re going to have to address that ... but I guess the negotiations have not gone well to be able to do that. I think that we want to deal with the pension[s] and we want to deal with other things,” said Chicago Democratic Rep. Louis Arroyo. “The [legislative] leaders and the [appropriations committee] chairs are not ready to talk about that. [But] sooner or later, we’re going to have to pay for it, because if we’re paying interest on the money we’re incurring more debt. I don’t know how long we’re going to wait.” Arroyo, who is the chair of the public safety budget committee, said he thinks it is likely that lawmakers will be back in session in the near future to deal with other issues and that the back pay could possible be addressed then. “We’re coming back before the year is over,” he said.
Steve Brown, spokesman for House Speaker Michael Madigan, said that lawmakers could indeed be back in session soon if there is a deal reached on public pension changes. Legislative leaders worked through some ideas last week that the pension systems are now analyzing to determine potential savings. Brown said that process would likely take about 10 days. “The speaker and I think, [Senate] President [John] Cullerton and others have said, when that’s done, if there’s an agreement, they’ll reconvene the legislature to take action.” But Brown said Madigan does not intend for there to be a vote on back pay at that time. “I’m not aware of any of that having anything to do with additional spending,” he said. “I am sure there are people out there who think that. I think the governor thinks that, but I’m not sure that there’s much of the legislature that’s subscribers to that idea.”
Brown said he does not think many in the House are interested in approving more GRF spending. “I think the speakers’ view on this other issues is that the agencies were granted lump sums. It’s really up to them to manage that. I don’t think that position has changed. There appears to be some additional revenue. I think the general view of the House has been over the last several years is if there’s revenue that comes in that we don’t know about in May, that ought to go to paying old bills. That ought to be our top priority.”
Quinn is also seeking an additional $40 million to fund the Department of Corrections. That money was not included in the legislation.
The bill was approved with broad bipartisan support. However, several Republicans supporters of concealed carry complained that the money to set up a concealed carry permitting system was tied to other spending that would not have been able to pass on its own. The legislation still needs Senate approval to make it to Quinn’s desk.
Juvenile justice
A House committee approved a bill that would create an independent ombudsman to oversee the Department of Juvenile Justice. The department has entered into a legal consent decree that requires it to improve education, mental health treatment and safety for detainees. Experts who created recommendations for the department found that juvenile detention centers were not offering the education required by law and lacked adequate mental health staffing. Fifteen percent of youth in the state’s system reported, as part of a Justice Department survey, that they had been sexually assaulted by other inmates or staff. Under Senate Bill 2352, the ombudsman would be able to visit detention centers unannounced and meet confidentially with juveniles.
The department supports the legislation. The American Federation of State, County and Municipal Employees was neutral on the bill. However, Adrienne Alexander, policy and legislative specialist for AFSCME Council 31, said the union, which represents DoJJ employees, is concerned about where the department will get funding for the new position, given that it is not meeting key missions such as education. “We look forward to details on how exactly it can be done, how it can be funded and how it will be implemented.” Beth Compton, general counsel for the department, said the ombudsman could be a key component to improvements without being too costly. “The ombudsman will be a very important piece at a relatively modest investment.”
Gun sentencing
Rep. Michael Zalewski, a Chicago Democrat, said today that changes to his proposal to increase penalties for gun crimes have made the plan “narrowly tailored” and would bring down the cost of his proposal.
SB 1342 would require first-time offenders who commit an aggravated unlawful use of a weapon to serve 85 percent of a one-year sentence. Knowingly carrying a loaded gun in public without a Firearm Owners Identification Card can result in an aggravated unlawful use of a weapon charge. A felon or gang member would receive a four-year sentence. The proposal would also bar gun offenders from participating in some programs that can substantially shorten their sentences, such as a boot camp program for offenders.
Zalewski’s original proposal called for 3three years for a first-time offender and five years for felons and gang members. A House committee approved the bill, but Zalewski said he is still working to find the votes to pass it in the House. He faces opposition from the National Rifle Association over the required penalties for first-time offenders. “The sponsor has worked very hard to try to craft a bill, and we just haven’t been able to come to a meeting of the minds on this one issue,” said Todd Vandermyde, a lobbyist for the NRA. He said lawmakers need to consider recent court rulings that upheld gun owners’ rights to carry firearms in public. “Carrying a gun is no longer, per se, a criminal offense.”
Some Democrats are also opposed to the bill because they say there is no proof that mandatory sentencing would help curb gun violence over the long term. “The rest of the country is getting away from mandatory minimums,” said Northbrook Democratic Rep. Elaine Nekritz. “Mandatory minimums do nothing about recidivism.” The Illinois Department of Corrections opposed the bill because officials say the department could not afford the longer sentences. Bryan Gleckler, chief of staff for IDoC, said that the bill would increase the corrections population by almost 3,000 inmates in 10 years and cost the department $71.3 million annually. “We have a system that is stressed and have very, very limited resources to manage the existing population that we have within our custody,” he said. “There’s no capacity to take this additional population on.”
But the plan has support from Republicans who formerly served as prosecutors. Elmhurst Republican Rep. Dennis Reboletti helped Zalewski revise the proposal. “I think it’s a pretty thoughtful approach,” he said. Reboletti said is open to more negotiation. However, he said he thinks changes to sentences are needed to deter gun crimes and keep gang members from having a revolving door experience at IDoC only to return to the streets armed. “I don’t know what other alternatives there are.” House Minority Leader Jim Durkin, who also worked as a prosecutor before coming to the legislature, has said he supports enhancing sentences for gun crimes.
In addition to passing legislation legalizing same-sex marriage, Illinois lawmakers took up several other issues today.
Budget bill
The Illinois House voted to approve additional spending for the current fiscal year, but the legislation did not include funding for back pay owed to state workers.
House Bill 209 contains $49.6 million in spending, the bulk of which, $30 million, would be used to implement the state’s new concealed carry law. Most of the money in the bill comes from special funds. Only about $500,000 of general revenue funds would be spent under the measure.
Gov. Pat Quinn’s budget office has been pushing for the $112 million to pay workers since a judge ordered the state to make good on the raises he initially denied. Republican Comptroller Judy Baar Topinka also called upon lawmakers last week to approve the money for workers because the state is required to pay interest on the pay.
“They’re still negotiating that. I think we’re going to have to come back. Sooner or later, we’re going to have to address that ... but I guess the negotiations have not gone well to be able to do that. I think that we want to deal with the pension[s] and we want to deal with other things,” said Chicago Democratic Rep. Louis Arroyo. “The [legislative] leaders and the [appropriations committee] chairs are not ready to talk about that. [But] sooner or later, we’re going to have to pay for it, because if we’re paying interest on the money we’re incurring more debt. I don’t know how long we’re going to wait.” Arroyo, who is the chair of the public safety budget committee, said he thinks it is likely that lawmakers will be back in session in the near future to deal with other issues and that the back pay could possible be addressed then. “We’re coming back before the year is over,” he said.
Steve Brown, spokesman for House Speaker Michael Madigan, said that lawmakers could indeed be back in session soon if there is a deal reached on public pension changes. Legislative leaders worked through some ideas last week that the pension systems are now analyzing to determine potential savings. Brown said that process would likely take about 10 days. “The speaker and I think, [Senate] President [John] Cullerton and others have said, when that’s done, if there’s an agreement, they’ll reconvene the legislature to take action.” But Brown said Madigan does not intend for there to be a vote on back pay at that time. “I’m not aware of any of that having anything to do with additional spending,” he said. “I am sure there are people out there who think that. I think the governor thinks that, but I’m not sure that there’s much of the legislature that’s subscribers to that idea.”
Brown said he does not think many in the House are interested in approving more GRF spending. “I think the speakers’ view on this other issues is that the agencies were granted lump sums. It’s really up to them to manage that. I don’t think that position has changed. There appears to be some additional revenue. I think the general view of the House has been over the last several years is if there’s revenue that comes in that we don’t know about in May, that ought to go to paying old bills. That ought to be our top priority.”
Quinn is also seeking an additional $40 million to fund the Department of Corrections. That money was not included in the legislation.
The bill was approved with broad bipartisan support. However, several Republicans supporters of concealed carry complained that the money to set up a concealed carry permitting system was tied to other spending that would not have been able to pass on its own. The legislation still needs Senate approval to make it to Quinn’s desk.
Juvenile justice
A House committee approved a bill that would create an independent ombudsman to oversee the Department of Juvenile Justice. The department has entered into a legal consent decree that requires it to improve education, mental health treatment and safety for detainees. Experts who created recommendations for the department found that juvenile detention centers were not offering the education required by law and lacked adequate mental health staffing. Fifteen percent of youth in the state’s system reported, as part of a Justice Department survey, that they had been sexually assaulted by other inmates or staff. Under Senate Bill 2352, the ombudsman would be able to visit detention centers unannounced and meet confidentially with juveniles.
The department supports the legislation. The American Federation of State, County and Municipal Employees was neutral on the bill. However, Adrienne Alexander, policy and legislative specialist for AFSCME Council 31, said the union, which represents DoJJ employees, is concerned about where the department will get funding for the new position, given that it is not meeting key missions such as education. “We look forward to details on how exactly it can be done, how it can be funded and how it will be implemented.” Beth Compton, general counsel for the department, said the ombudsman could be a key component to improvements without being too costly. “The ombudsman will be a very important piece at a relatively modest investment.”
Gun sentencing
Rep. Michael Zalewski, a Chicago Democrat, said today that changes to his proposal to increase penalties for gun crimes have made the plan “narrowly tailored” and would bring down the cost of his proposal.
SB 1342 would require first-time offenders who commit an aggravated unlawful use of a weapon to serve 85 percent of a one-year sentence. Knowingly carrying a loaded gun in public without a Firearm Owners Identification Card can result in an aggravated unlawful use of a weapon charge. A felon or gang member would receive a four-year sentence. The proposal would also bar gun offenders from participating in some programs that can substantially shorten their sentences, such as a boot camp program for offenders.
Zalewski’s original proposal called for 3three years for a first-time offender and five years for felons and gang members. A House committee approved the bill, but Zalewski said he is still working to find the votes to pass it in the House. He faces opposition from the National Rifle Association over the required penalties for first-time offenders. “The sponsor has worked very hard to try to craft a bill, and we just haven’t been able to come to a meeting of the minds on this one issue,” said Todd Vandermyde, a lobbyist for the NRA. He said lawmakers need to consider recent court rulings that upheld gun owners’ rights to carry firearms in public. “Carrying a gun is no longer, per se, a criminal offense.”
Some Democrats are also opposed to the bill because they say there is no proof that mandatory sentencing would help curb gun violence over the long term. “The rest of the country is getting away from mandatory minimums,” said Northbrook Democratic Rep. Elaine Nekritz. “Mandatory minimums do nothing about recidivism.” The Illinois Department of Corrections opposed the bill because officials say the department could not afford the longer sentences. Bryan Gleckler, chief of staff for IDoC, said that the bill would increase the corrections population by almost 3,000 inmates in 10 years and cost the department $71.3 million annually. “We have a system that is stressed and have very, very limited resources to manage the existing population that we have within our custody,” he said. “There’s no capacity to take this additional population on.”
But the plan has support from Republicans who formerly served as prosecutors. Elmhurst Republican Rep. Dennis Reboletti helped Zalewski revise the proposal. “I think it’s a pretty thoughtful approach,” he said. Reboletti said is open to more negotiation. However, he said he thinks changes to sentences are needed to deter gun crimes and keep gang members from having a revolving door experience at IDoC only to return to the streets armed. “I don’t know what other alternatives there are.” House Minority Leader Jim Durkin, who also worked as a prosecutor before coming to the legislature, has said he supports enhancing sentences for gun crimes.
Thursday, October 31, 2013
New ADM tax break bill proposed
By Jamey Dunn
Whether same sex marriage or public pension reform will pass during the last week of the Illinois General Assembly's fall veto session seems to be anybody’s guess at this point. But it appears that there may be a way to move forward on a tax break for Archers Daniels Midland. ADM announced plans to move its corporate headquarters from Decatur.
The company said it was considering Chicago as the new location and then came to the General Assembly looking for a tax credit. The initial public reaction from lawmakers was less than positive. However, statehouse observers have been saying for weeks that a deal would likely be worked out in the veto session. Lawmakers are scheduled to be back in session for three days next week. The first week of the fall session wrapped up a day early after little was accomplished.
Sen. Andy Manar, a Democrat from Bunker Hill, filed legislation today to give ADM the tax credit it sought to keep its headquarters in Illinois. Manar was critical of an earlier bill. “I’ve had countless conversations with constituents, local officials and community groups who are angered by ADM’s recent announcement of their intention to move their headquarters. I would have preferred to have seen ADM first engage state and local officials to find a way to maintain employment levels in Decatur,” he said in a written statement earlier this month. “Now, only eight days later, there is legislation moving in the House of Representatives to give ADM tens of millions to potentially stay in Illinois and move to Chicago. Not so fast. Illinois is facing tough times. Decatur is facing tougher times, with the highest unemployment rate in the state. I will oppose any bill, and I will urge my colleagues to join me in opposing any bill that results in net job loss in Decatur.”
Manar’s new legislation (Senate Amendment 2 to House Bill 2536) would require ADM to replace the 100 corporate jobs that would leave Decatur by moving 100 jobs to Decatur from other states. “Throughout this process, I have said that keeping ADM in Illinois was a priority but not at the expense of taxpayers and jobs,” Manar said today. “The bill I have introduced will allow ADM to continue their long and valued partnership with Illinois, while growing and creating much-needed jobs here.” The proposal would also create a task force with the goal of creating jobs through ADM's intermodal transportation facility in Decatur. Construction of the facility was funded in part through a grant from the Illinois Department of Commerce and Economic Opportunity.
The bill was the product of collaboration between ADM executives, Manar and elected officials in Decatur. “We are grateful for Senator Manar’s support. We appreciate the constructive dialogue he’s led with ADM and local leaders around our shared desire to see Decatur grow and prosper,” said Victoria Podesta, ADM’s chief communications officer. “The outcome envisioned in the legislation, if realized, would be a win for Illinois, for Decatur and for ADM.”
Mitch Schaben, a spokesman for Manar, said the amount of the tax credit is still being negotiated. He said the goal is to have everything hashed out by the end of the veto session. But the proposal could still face an uphill climb. Some Democrats are less than thrilled that corporations continue to get tax breaks while education and human services suffer cuts. On the other side of the aisle, some Republicans have voiced opposition to the concept, saying that the state should reduce taxes for all businesses instead of handing out special breaks to larger, well-connected companies. Most recently, lawmakers voted in 2011 to give tax cuts to Sears and the CME Group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade. Gov. Pat Quinn signed that legislation but has since said he would not consider any tax breaks that pass before lawmakers approve changes to public employee pensions.
Whether same sex marriage or public pension reform will pass during the last week of the Illinois General Assembly's fall veto session seems to be anybody’s guess at this point. But it appears that there may be a way to move forward on a tax break for Archers Daniels Midland. ADM announced plans to move its corporate headquarters from Decatur.
The company said it was considering Chicago as the new location and then came to the General Assembly looking for a tax credit. The initial public reaction from lawmakers was less than positive. However, statehouse observers have been saying for weeks that a deal would likely be worked out in the veto session. Lawmakers are scheduled to be back in session for three days next week. The first week of the fall session wrapped up a day early after little was accomplished.
Sen. Andy Manar, a Democrat from Bunker Hill, filed legislation today to give ADM the tax credit it sought to keep its headquarters in Illinois. Manar was critical of an earlier bill. “I’ve had countless conversations with constituents, local officials and community groups who are angered by ADM’s recent announcement of their intention to move their headquarters. I would have preferred to have seen ADM first engage state and local officials to find a way to maintain employment levels in Decatur,” he said in a written statement earlier this month. “Now, only eight days later, there is legislation moving in the House of Representatives to give ADM tens of millions to potentially stay in Illinois and move to Chicago. Not so fast. Illinois is facing tough times. Decatur is facing tougher times, with the highest unemployment rate in the state. I will oppose any bill, and I will urge my colleagues to join me in opposing any bill that results in net job loss in Decatur.”
Manar’s new legislation (Senate Amendment 2 to House Bill 2536) would require ADM to replace the 100 corporate jobs that would leave Decatur by moving 100 jobs to Decatur from other states. “Throughout this process, I have said that keeping ADM in Illinois was a priority but not at the expense of taxpayers and jobs,” Manar said today. “The bill I have introduced will allow ADM to continue their long and valued partnership with Illinois, while growing and creating much-needed jobs here.” The proposal would also create a task force with the goal of creating jobs through ADM's intermodal transportation facility in Decatur. Construction of the facility was funded in part through a grant from the Illinois Department of Commerce and Economic Opportunity.
The bill was the product of collaboration between ADM executives, Manar and elected officials in Decatur. “We are grateful for Senator Manar’s support. We appreciate the constructive dialogue he’s led with ADM and local leaders around our shared desire to see Decatur grow and prosper,” said Victoria Podesta, ADM’s chief communications officer. “The outcome envisioned in the legislation, if realized, would be a win for Illinois, for Decatur and for ADM.”
Mitch Schaben, a spokesman for Manar, said the amount of the tax credit is still being negotiated. He said the goal is to have everything hashed out by the end of the veto session. But the proposal could still face an uphill climb. Some Democrats are less than thrilled that corporations continue to get tax breaks while education and human services suffer cuts. On the other side of the aisle, some Republicans have voiced opposition to the concept, saying that the state should reduce taxes for all businesses instead of handing out special breaks to larger, well-connected companies. Most recently, lawmakers voted in 2011 to give tax cuts to Sears and the CME Group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade. Gov. Pat Quinn signed that legislation but has since said he would not consider any tax breaks that pass before lawmakers approve changes to public employee pensions.
Wednesday, October 23, 2013
Veto session roundup
By Jamey Dunn
The Illinois General Assembly's fall veto session was scheduled to continue through tomorrow, but both chambers canceled their Thursday sessions and hit the road after little legislative action this week. Here’s a rundown of what did happen:
Veto stands
The House voted not to override Gov. Pat Quinn’s veto of House Bill 1200. The measure would have cut the number of free days museums are required to offer from 52 to 26. Rep. Joe Sosnowski argued that lawmakers should give museums a break because the state has not given them an operating subsidy in more than a decade. He said that low-income residents would still have plenty of opportunities to attend on free days or through school and library programs. Sosnowski said that by allowing museums to offer fewer free days, they would have more money to spend on education and outreach programs. “It will enhance and increase what museums can do.” The measure passed in the House in April with 79 “yes” votes and 36 “no” votes. Today, only 49 members voted in favor of an override, while 67 voted to uphold the governor’s veto.
Several legislators rose during debate to argue that the change would cut off opportunities for many families. “The governor is correct. The purpose of a museum is to educate, to provide culture. And when we deny that, limit access, we really hurt all of us in this state,” said Chicago Democratic Rep. Monique Davis. Quinn reportedly lobbied aggressively for support of the veto. “It’s always important to ensure that our residents with modest incomes have equal access to our world-class museums and cultural institutions,” he said in a written statement. “I commend members of the House for their vote today. They did the right thing.”
Budget issues
Today, committees continued to debate adding additional spending to the current fiscal year’s budget. Gov. Pat Quinn is seeking about $200 million in additional spending. The money would cover back wages for state employees, which a judge ordered the state to pay with interest, set-up costs for the state’s concealed carry licensing system and operational costs in the Department of Corrections. The money would come from revenues that Quinn’s budget office said will come in higher than originally estimated. Budget committees held hearings today and yesterday but have yet to vote on any of it. Lawmakers said they plan to continue considering the new spending over the next week while they are out of session.
Same-sex marriage opposition rally
After thousands of supporters of same-sex marriage held a rally and march yesterday, their opponents packed the Capitol today. Republican Sen. Kirk Dillard, who is running for governor, was one of several speakers who addressed the crowd. “I have said that I would veto the gay marriage bill,” Dillard said. “I believe that government which governs least governs best. But there are times when government has a solemn duty to stand up and protect its citizens.” Dillard emphasized his belief that children need both a mother and a father to thrive. “Every child in this state deserves to have a mom and dad.” Republican Sen. Jim Oberweis also spoke. He was at the rally collecting signatures to challenge U.S. Sen. Richard Durbin. He said he plans to run against Durbin if he can get the signatures required to get onto the ballot.
State retiree health care
The state is shifting many retirees from traditional Medicare plans to privately managed Medicare Advantage plans. Some lawmakers are unhappy that one provider did not qualify for the bidding process. The Commission on Government Forecasting and Accountability held a hearing on the issue today. You can read all about it in this post.
The House officially voted in Western Springs Republican Jim Durkin as the new minority leader yesterday. Illinois Issues interviewed him before he was sworn in. You can read that story here.
Lawmakers are scheduled to return for three more days of veto session starting on November 5.
The Illinois General Assembly's fall veto session was scheduled to continue through tomorrow, but both chambers canceled their Thursday sessions and hit the road after little legislative action this week. Here’s a rundown of what did happen:
Veto stands
The House voted not to override Gov. Pat Quinn’s veto of House Bill 1200. The measure would have cut the number of free days museums are required to offer from 52 to 26. Rep. Joe Sosnowski argued that lawmakers should give museums a break because the state has not given them an operating subsidy in more than a decade. He said that low-income residents would still have plenty of opportunities to attend on free days or through school and library programs. Sosnowski said that by allowing museums to offer fewer free days, they would have more money to spend on education and outreach programs. “It will enhance and increase what museums can do.” The measure passed in the House in April with 79 “yes” votes and 36 “no” votes. Today, only 49 members voted in favor of an override, while 67 voted to uphold the governor’s veto.
Several legislators rose during debate to argue that the change would cut off opportunities for many families. “The governor is correct. The purpose of a museum is to educate, to provide culture. And when we deny that, limit access, we really hurt all of us in this state,” said Chicago Democratic Rep. Monique Davis. Quinn reportedly lobbied aggressively for support of the veto. “It’s always important to ensure that our residents with modest incomes have equal access to our world-class museums and cultural institutions,” he said in a written statement. “I commend members of the House for their vote today. They did the right thing.”
Budget issues
Today, committees continued to debate adding additional spending to the current fiscal year’s budget. Gov. Pat Quinn is seeking about $200 million in additional spending. The money would cover back wages for state employees, which a judge ordered the state to pay with interest, set-up costs for the state’s concealed carry licensing system and operational costs in the Department of Corrections. The money would come from revenues that Quinn’s budget office said will come in higher than originally estimated. Budget committees held hearings today and yesterday but have yet to vote on any of it. Lawmakers said they plan to continue considering the new spending over the next week while they are out of session.
Same-sex marriage opposition rally
After thousands of supporters of same-sex marriage held a rally and march yesterday, their opponents packed the Capitol today. Republican Sen. Kirk Dillard, who is running for governor, was one of several speakers who addressed the crowd. “I have said that I would veto the gay marriage bill,” Dillard said. “I believe that government which governs least governs best. But there are times when government has a solemn duty to stand up and protect its citizens.” Dillard emphasized his belief that children need both a mother and a father to thrive. “Every child in this state deserves to have a mom and dad.” Republican Sen. Jim Oberweis also spoke. He was at the rally collecting signatures to challenge U.S. Sen. Richard Durbin. He said he plans to run against Durbin if he can get the signatures required to get onto the ballot.
State retiree health care
The state is shifting many retirees from traditional Medicare plans to privately managed Medicare Advantage plans. Some lawmakers are unhappy that one provider did not qualify for the bidding process. The Commission on Government Forecasting and Accountability held a hearing on the issue today. You can read all about it in this post.
The House officially voted in Western Springs Republican Jim Durkin as the new minority leader yesterday. Illinois Issues interviewed him before he was sworn in. You can read that story here.
Lawmakers are scheduled to return for three more days of veto session starting on November 5.
Tuesday, October 22, 2013
First week of veto session shaping up to be a bust
By Jamey Dunn
The Illinois General Assembly's fall veto session was off to an anticlimactic start today, as hearings on some of the most closely watched issues were canceled.
The House Revenue and Finance Committee did not take up a proposed tax break for Archer Daniels Midland. Committee chair Marion Democratic Rep. John Bradley had few details to share about the proposal, which supporters hope would persuade ADM to put its corporate headquarters in Chicago. ADM announced earlier this month that it plans move its headquarters out of Decatur. The company would leave most of the current jobs in Decatur, but about 100 positions would go with the transfer. “They’re under consideration at this point,” Bradley said of several tax breaks being pitched to lawmakers. OfficeMax and Office Depot are planning a merger and have approached lawmakers for a tax break. OfficeMax is based in Naperville and Office Depot is headquartered in Florida. So the two states are now in competition for the headquarters of the final merged company. The two office supply companies area seeking a tax break similar to the one ADM is looking for. In the end, a tax break omnibus bill may emerge.
However, Gov. Pat Quinn has said that he will not sign “special” tax breaks for businesses until lawmakers approve changes to the state’s public pension systems. But Bradley did not seem phased by Quinn’s statements. “We’re used to rhetoric like that coming out of the governor’s office.”
A hearing on a proposal, backed by Chicago Mayor Rahm Emanuel, to increase penalties from some gun crimes also did not occur today. The sponsor, Chicago Democratic Rep. Michael Zalewski, is reportedly in talks with the National Rifle Association. If the negotiations are productive, a compromise bill could emerge as early as tomorrow.
Several budget hearings were held today, and a picture of what Quinn’s office would like to see in a supplemental appropriation became clearer. Ben Winick with the Governor’s Office of Management and Budget told a House committee that $97 million in unexpected revenues have been transferred into the General Revenues fund, and the budget office expects an additional $262 million in sales tax revenues that were originally underestimated. However, he said that telecommunications tax receipts would likely come in $46 million shy of estimates. Still, by Quinn’s budget staff’s count, there is about $313 million in funds to potentially spread around. The governor is asking lawmakers to approve about $112 million to pay back wages to state workers. A judge ordered the state to pay the wages with interest. Quinn’s staff is urging lawmakers to pay them sooner, so less interest is piled on. Some agencies have already been able to find the money for back pay in their budgets. Senate Bill 2603 would fund back wages for the Department of Human Services, the Department of Public Health, the Department of Corrections, the Department of Juvenile Justice and the Department of Natural Resources. Other supplemental appropriations bills have not been filed, meaning that the details are likely not worked out yet. The governor’s office is also looking at spending some of the money on setup costs for the state’s licensing system for concealed carry of firearms.
Meanwhile, Quinn and several other elected officials spoke at a rally at the Statehouse for same-sex marriage. Quinn has called on lawmakers not to be distracted from pension reform by other issues, but he said today that same-sex marriage is an exception. “I think this is a civil rights issue, and anytime there is an issue about rights of people, that deserves important consideration.” Opponents to same-sex marriage are scheduled to hold a rally tomorrow. It is not clear if same-sex marriage supporters will be able to find the votes needed to pass a bill during veto session.
House Minority Leader Jim Durkin was officially sworn into his new leadership role today. His statement to Illinois Issues earlier today that veto session is "generally overhyped" seems to be proving true at this point. The House and Senate have already canceled their Thursday sessions, indicating that little is likely to happen this week. Lawmakers are scheduled to return for the last week of the veto session on November 5.
The Illinois General Assembly's fall veto session was off to an anticlimactic start today, as hearings on some of the most closely watched issues were canceled.
The House Revenue and Finance Committee did not take up a proposed tax break for Archer Daniels Midland. Committee chair Marion Democratic Rep. John Bradley had few details to share about the proposal, which supporters hope would persuade ADM to put its corporate headquarters in Chicago. ADM announced earlier this month that it plans move its headquarters out of Decatur. The company would leave most of the current jobs in Decatur, but about 100 positions would go with the transfer. “They’re under consideration at this point,” Bradley said of several tax breaks being pitched to lawmakers. OfficeMax and Office Depot are planning a merger and have approached lawmakers for a tax break. OfficeMax is based in Naperville and Office Depot is headquartered in Florida. So the two states are now in competition for the headquarters of the final merged company. The two office supply companies area seeking a tax break similar to the one ADM is looking for. In the end, a tax break omnibus bill may emerge.
However, Gov. Pat Quinn has said that he will not sign “special” tax breaks for businesses until lawmakers approve changes to the state’s public pension systems. But Bradley did not seem phased by Quinn’s statements. “We’re used to rhetoric like that coming out of the governor’s office.”
A hearing on a proposal, backed by Chicago Mayor Rahm Emanuel, to increase penalties from some gun crimes also did not occur today. The sponsor, Chicago Democratic Rep. Michael Zalewski, is reportedly in talks with the National Rifle Association. If the negotiations are productive, a compromise bill could emerge as early as tomorrow.
Several budget hearings were held today, and a picture of what Quinn’s office would like to see in a supplemental appropriation became clearer. Ben Winick with the Governor’s Office of Management and Budget told a House committee that $97 million in unexpected revenues have been transferred into the General Revenues fund, and the budget office expects an additional $262 million in sales tax revenues that were originally underestimated. However, he said that telecommunications tax receipts would likely come in $46 million shy of estimates. Still, by Quinn’s budget staff’s count, there is about $313 million in funds to potentially spread around. The governor is asking lawmakers to approve about $112 million to pay back wages to state workers. A judge ordered the state to pay the wages with interest. Quinn’s staff is urging lawmakers to pay them sooner, so less interest is piled on. Some agencies have already been able to find the money for back pay in their budgets. Senate Bill 2603 would fund back wages for the Department of Human Services, the Department of Public Health, the Department of Corrections, the Department of Juvenile Justice and the Department of Natural Resources. Other supplemental appropriations bills have not been filed, meaning that the details are likely not worked out yet. The governor’s office is also looking at spending some of the money on setup costs for the state’s licensing system for concealed carry of firearms.
Meanwhile, Quinn and several other elected officials spoke at a rally at the Statehouse for same-sex marriage. Quinn has called on lawmakers not to be distracted from pension reform by other issues, but he said today that same-sex marriage is an exception. “I think this is a civil rights issue, and anytime there is an issue about rights of people, that deserves important consideration.” Opponents to same-sex marriage are scheduled to hold a rally tomorrow. It is not clear if same-sex marriage supporters will be able to find the votes needed to pass a bill during veto session.
House Minority Leader Jim Durkin was officially sworn into his new leadership role today. His statement to Illinois Issues earlier today that veto session is "generally overhyped" seems to be proving true at this point. The House and Senate have already canceled their Thursday sessions, indicating that little is likely to happen this week. Lawmakers are scheduled to return for the last week of the veto session on November 5.
Sunday, October 20, 2013
Veto session preview
By Jamey Dunn
Our October issue has a helpful preview of the Illinois General Assembly's fall veto session. (It is only available in the print edition until Nov. 1, when it will become available online.) Many of the issues that could crop up are the same ones left unresolved at the end of the spring legislative session. But there have been some developments and changes since that story was published. Here are some things to watch for as lawmakers return to the Statehouse for veto session this week:
Public pension changes
Don’t expect much to happen this week on the most highly anticipated issue. Lawmakers working on a committee to propose changes to the state’s pension systems say they will not have legislation drafted in time for a vote in the first week of veto session. Details of a plan that they were considering went public in August. The plan would toss out the 3 percent annual compounded cost-of-living adjustment retirees currently receive. Instead, cost-of-living adjustments would be half the rate of inflation. The rates would have a base level and cap set. The change would likely result in smaller COLAs for retirees, but if inflation goes up, so will the COLAs. Employees would contribute 1 percent less to their retirement benefits. The retirement age would not change. The proposal is estimated to reduce the almost $100 billion unfunded pension liability by $18.1 billion and save the state $145 billion over 30 years.
But some Republicans say the plan would not save enough money. They want to see some tweaks made, including decreasing the base guaranteed COLA, making the cut to employee contributions smaller, increasing the retirement age and offering an optional 401(k)-style plan to employees in all the pension systems. Right now, such a plan is only offered to university employees. The Republican members of the committee had these ideas scored by actuaries to estimate their potential savings and just got the numbers back at the end of last week. “We don’t have a bill that’s written yet. I don’t see us doing anything on pensions in veto next week,” said Naperville Republican Darlene Senger.
Aurora Democratic Sen. Linda Holmes said Democrats on the committee are open to the Republicans suggestions. However, ideas such as adding a 401(k) component or changing the retirement age could be non-starters. “I don’t think that our side really wants to touch retirement age,” she said. Northbrook Democratic Rep. Elaine Nekritz said that while there will not be a lot of outward action on pensions, there will likely be a lot of behind-closed-doors meetings taking place this week among legislative leaders and members of the legislature. She says of the Republican proposals: “Personally I supported a bill that had a larger level of savings, so I don’t object to moving in that direction. But we have to find something that will meet everybody’s needs.” She said she hopes the committee will have a final plan to present to the General Assembly by the last week of veto session, which is scheduled to begin on November 5. “That is my fervent hope.” Lawmakers are not in session the last week of October. Nekritz said she thinks it is likely such a plan would get a hearing before a floor vote, but she said it might not be a procedural requirement. She said she would prefer a hearing. But she notes, “I don’t control the gavel.” Senate President John Cullerton told the Associated Press that a bill could be called in the Senate even if the committee cannot come to an agreement, but it could be harder to pass something in both chambers without a bipartisan stamp of approval from the committee.
Gov. Pat Quinn will likely talk about little else in the coming weeks as he has made pension reform his top priority. He vetoed lawmakers’ pay this summer, saying they should not get it until a bill was passed. However a judge ruled against his veto, and they started getting their checks again in September. The Illinois Supreme Court has agreed to take up the case and will likely hear arguments in the spring. Quinn is voluntarily not taking a paycheck. He says he will not take his pay until a bill is sent to his desk.
Same-sex marriage
Proponents are optimistic about passing same-sex marriage in the near future, but whether it will happen in the veto session is unclear. Some advocates say they have the votes but are not willing to indicate whom they have brought on board in the House. That makes sense because Republicans who have made their support public have faced protests and are now likely to have primary challengers. To pass as is, the bill would need 71 votes now. But if the bill’s sponsor, Chicago Democratic Rep. Greg Harris, waits until January, the deadline to file petitions to run in the primary will have passed, and the bill would only need 60 votes. He opted not to call the bill at the end of the regular session because he said he did not have the votes, and some House members wanted time to poll their constituents. Harris, as always, will not share his vote count. But he told the Chicago Tribune that now is the time to legalize same-sex marriage. “It's the right time, and it's the right thing to do” he said. “Momentum is in the direction of this vote.” Supporters and opponents have rallies at the Statehouse scheduled this week.
ADM tax breaks
Archer Daniels Midland announced earlier this month that it plans to move its headquarters from Decatur, where it has been based for more than 40 years. The company says it would keep jobs that are in Decatur now but would move about 100 positions to the new headquarters. It appears that Chicago is on ADM’s short list of potential locations for its headquarters, but ADM is seeking up to $24 million in tax breaks from state government during the next 20 years. The legislation is scheduled for a House committee hearing on Tuesday. Few lawmakers are vocally supporting the proposal, and there are plenty of critics. But if it seems that ADM might really leave the state, votes could line up behind the legislation. However, Quinn has said he will not sign legislation with tax breaks for ADM before changes to the pension systems are approved. “Our number one way to help business is to get pension reform. We need ADM and all of our big businesses to band together, put pressure on the legislature — the House and the Senate, Democrats and Republicans — to get a vote on the pension reform. That helps everybody. That helps every business. That helps every taxpayer,” Quinn told reporters in Chicago earlier this month. “I think we need to have a moratorium on any special legislation for tax breaks for corporations. We have to focus on pension reform.” But Quinn’s relationship with the legislature after he cut off their pay may be frosty enough that his opposition on any issue could potentially give it a boost.
Gun crime sentencing
Some Chicago leaders, including Mayor Rahm Emanuel, are calling for the legislature to pass tougher sentencing laws in the hopes of quelling the deadly gun violence taking place in parts of the city. The push comes after a shooting in a park injured 13 people, including a 3-year-old, last month. The National Rifle Association and prison watchdog groups oppose the measure. The watchdog groups worry that longer sentences would strain the state’s already crowded corrections system.
The NRA has illustrated its ability to stop a bill in its tracks many times in the General Assembly. So unless the sponsor, Chicago Democratic Rep. Michael Zalewski, can work out a deal with the group, it could be a tough battle. The legislation is scheduled for a House committee hearing on Tuesday.
Committee Hearings
Several issues are scheduled for “subject matter only” hearings during the veto session. That means witnesses will likely come in to testify and lawmakers can ask questions, but no committee vote is taken on legislation.
Our October issue has a helpful preview of the Illinois General Assembly's fall veto session. (It is only available in the print edition until Nov. 1, when it will become available online.) Many of the issues that could crop up are the same ones left unresolved at the end of the spring legislative session. But there have been some developments and changes since that story was published. Here are some things to watch for as lawmakers return to the Statehouse for veto session this week:
Public pension changes
Don’t expect much to happen this week on the most highly anticipated issue. Lawmakers working on a committee to propose changes to the state’s pension systems say they will not have legislation drafted in time for a vote in the first week of veto session. Details of a plan that they were considering went public in August. The plan would toss out the 3 percent annual compounded cost-of-living adjustment retirees currently receive. Instead, cost-of-living adjustments would be half the rate of inflation. The rates would have a base level and cap set. The change would likely result in smaller COLAs for retirees, but if inflation goes up, so will the COLAs. Employees would contribute 1 percent less to their retirement benefits. The retirement age would not change. The proposal is estimated to reduce the almost $100 billion unfunded pension liability by $18.1 billion and save the state $145 billion over 30 years.
But some Republicans say the plan would not save enough money. They want to see some tweaks made, including decreasing the base guaranteed COLA, making the cut to employee contributions smaller, increasing the retirement age and offering an optional 401(k)-style plan to employees in all the pension systems. Right now, such a plan is only offered to university employees. The Republican members of the committee had these ideas scored by actuaries to estimate their potential savings and just got the numbers back at the end of last week. “We don’t have a bill that’s written yet. I don’t see us doing anything on pensions in veto next week,” said Naperville Republican Darlene Senger.
Aurora Democratic Sen. Linda Holmes said Democrats on the committee are open to the Republicans suggestions. However, ideas such as adding a 401(k) component or changing the retirement age could be non-starters. “I don’t think that our side really wants to touch retirement age,” she said. Northbrook Democratic Rep. Elaine Nekritz said that while there will not be a lot of outward action on pensions, there will likely be a lot of behind-closed-doors meetings taking place this week among legislative leaders and members of the legislature. She says of the Republican proposals: “Personally I supported a bill that had a larger level of savings, so I don’t object to moving in that direction. But we have to find something that will meet everybody’s needs.” She said she hopes the committee will have a final plan to present to the General Assembly by the last week of veto session, which is scheduled to begin on November 5. “That is my fervent hope.” Lawmakers are not in session the last week of October. Nekritz said she thinks it is likely such a plan would get a hearing before a floor vote, but she said it might not be a procedural requirement. She said she would prefer a hearing. But she notes, “I don’t control the gavel.” Senate President John Cullerton told the Associated Press that a bill could be called in the Senate even if the committee cannot come to an agreement, but it could be harder to pass something in both chambers without a bipartisan stamp of approval from the committee.
Gov. Pat Quinn will likely talk about little else in the coming weeks as he has made pension reform his top priority. He vetoed lawmakers’ pay this summer, saying they should not get it until a bill was passed. However a judge ruled against his veto, and they started getting their checks again in September. The Illinois Supreme Court has agreed to take up the case and will likely hear arguments in the spring. Quinn is voluntarily not taking a paycheck. He says he will not take his pay until a bill is sent to his desk.
Same-sex marriage
Proponents are optimistic about passing same-sex marriage in the near future, but whether it will happen in the veto session is unclear. Some advocates say they have the votes but are not willing to indicate whom they have brought on board in the House. That makes sense because Republicans who have made their support public have faced protests and are now likely to have primary challengers. To pass as is, the bill would need 71 votes now. But if the bill’s sponsor, Chicago Democratic Rep. Greg Harris, waits until January, the deadline to file petitions to run in the primary will have passed, and the bill would only need 60 votes. He opted not to call the bill at the end of the regular session because he said he did not have the votes, and some House members wanted time to poll their constituents. Harris, as always, will not share his vote count. But he told the Chicago Tribune that now is the time to legalize same-sex marriage. “It's the right time, and it's the right thing to do” he said. “Momentum is in the direction of this vote.” Supporters and opponents have rallies at the Statehouse scheduled this week.
ADM tax breaks
Archer Daniels Midland announced earlier this month that it plans to move its headquarters from Decatur, where it has been based for more than 40 years. The company says it would keep jobs that are in Decatur now but would move about 100 positions to the new headquarters. It appears that Chicago is on ADM’s short list of potential locations for its headquarters, but ADM is seeking up to $24 million in tax breaks from state government during the next 20 years. The legislation is scheduled for a House committee hearing on Tuesday. Few lawmakers are vocally supporting the proposal, and there are plenty of critics. But if it seems that ADM might really leave the state, votes could line up behind the legislation. However, Quinn has said he will not sign legislation with tax breaks for ADM before changes to the pension systems are approved. “Our number one way to help business is to get pension reform. We need ADM and all of our big businesses to band together, put pressure on the legislature — the House and the Senate, Democrats and Republicans — to get a vote on the pension reform. That helps everybody. That helps every business. That helps every taxpayer,” Quinn told reporters in Chicago earlier this month. “I think we need to have a moratorium on any special legislation for tax breaks for corporations. We have to focus on pension reform.” But Quinn’s relationship with the legislature after he cut off their pay may be frosty enough that his opposition on any issue could potentially give it a boost.
Gun crime sentencing
Some Chicago leaders, including Mayor Rahm Emanuel, are calling for the legislature to pass tougher sentencing laws in the hopes of quelling the deadly gun violence taking place in parts of the city. The push comes after a shooting in a park injured 13 people, including a 3-year-old, last month. The National Rifle Association and prison watchdog groups oppose the measure. The watchdog groups worry that longer sentences would strain the state’s already crowded corrections system.
The NRA has illustrated its ability to stop a bill in its tracks many times in the General Assembly. So unless the sponsor, Chicago Democratic Rep. Michael Zalewski, can work out a deal with the group, it could be a tough battle. The legislation is scheduled for a House committee hearing on Tuesday.
Committee Hearings
Several issues are scheduled for “subject matter only” hearings during the veto session. That means witnesses will likely come in to testify and lawmakers can ask questions, but no committee vote is taken on legislation.
- Gambling expansion It seems unlikely that lawmakers will vote on a gaming bill during the veto session, but there is a House hearing on the topic scheduled for Wednesday. Quinn has not said that he would give a gaming bill the same treatment as an ADM tax break if it landed on his desk before pension reform. However, he has warned lawmakers in the past not get distracted by the “shiny object” of a gambling expansion when he feels they should be working to get pension changes passed. He has vetoed two gambling bills in the past and said last year that he could only approve one if it had strict regulations and the money went to education.
- Budgetary issues Several House budget committees are holding hearings on potential supplemental appropriations. It is the time of year when agencies tend to come to lawmakers looking to patch budget holes. Union leaders may also be seeking an appropriation for workers’ back pay from raises there were promised but did not receive. Quinn’s budget staff has said that workers should get the money under a new deal the state made with the unions. However, House Speaker Michael Madigan seems less than warm to the idea. Since there are no bills drafted and in committee, it seems more likely that such budget issues might be tackled in January. Quinn may also be reluctant to sign more spending unless pension changes pass. UPDATE: There is a bill for employee back pay, Senate Bill 2603. It had not been posted to an appropriations hearing as of Monday. Union officials are working to lobby lawmakers. “A circuit court judge has already ruled that the money must be paid. Now Gov. Quinn has agreed, too. But it is up to the state legislature to appropriate the funds that are needed,” says a call to action to its members from the American Federation of State County and Municipal Employees Council 31.
- Paint disposal One hearing that may lead to legislation down the road is scheduled for November 4. Lawmakers are looking to create a program to ensure that paint is properly disposed of in the state. Holmes, who sponsors the Paint Stewardship Act, said the committee is seeking input and hopes to get an end product that sellers and industry can agree to. Under such a plan, a small fee would be added to the cost of paint, and the money would be used to set up the program. Holmes cautions that the idea is still in a very early stage and could see major changes as the process continues. “What we want to do is have everyone on board with it,” she said.
- Retiree health care The Commission on Government Forecasting and Accountability is scheduled to hold a hearing on state retiree health benefits on Wednesday morning. We will have coverage on the blog.
Tuesday, October 16, 2012
DCFS gamble on more funding could result in broader layoffs
By Jamey Dunn
By delaying layoffs, the Illinois Department of Children and Family Services is betting that lawmakers will restore some of the department’s funding when they return in November for their veto session. But if the money is not approved, personnel cuts could be even deeper.
DCFS announced last week that it would not move ahead with 375 layoffs that the department had previously said were necessary because of budget cuts. Instead DCFS plans to try its luck at getting legislators to restore some of the money during the veto session. In the meantime, those workers will be getting paid out of a budget that does not include the money to cover their wages. If lawmakers do not approve a supplemental appropriation when they return for the veto session, DCFS could face a major budget shortfall at the end of the calendar year. “In terms of the potential risk, having not laid off people at this point and if there is no supplemental, I will have spent $19,646,000 that I was not appropriated as of the end of this year. So that the position that I’ll be in is having to lay off in addition [to the previously announced layoffs] another 380 people because that’s a half a year [they worked], and I need to double their salaries in order to be able to make that up. ... That’s the reality that I’m faced with,” DCFS Director Richard Calica told lawmakers at a hearing earlier this month when asked about the potential risk of delaying layoffs.
The department announced in August that it would lay off hundreds of employees after the legislature slashed the DCFS budget. Gov. Pat Quinn had proposed a funding cut to the agency in his budget plan, but lawmakers tacked on more reductions, leaving DCFS with more than $85 million less than last fiscal year. The bulk of layoffs would have come from a preventative program known as intact family services. (For more on the cuts and layoffs, see this Illinois Issues blog post.) DCFS walked back the layoffs last week and is instead opting to continue with a restructuring plan that the Quinn administration proposed earlier this year. The plan would shift some management employees to front-line positions and is geared toward lowering the caseload volumes of front-line workers and investigators. The plan “still cuts the DCFS staff by 6 percent, compared to last year, and still reduces the budget of the agency by tens of million of dollars,” said DCFS spokesman Dave Clarkin.
But the department's actions are contingent on lawmakers voting to restore funding, as well as the American Federation of State, County and Municipal Employees agreeing to waive some consideration for employee seniority. Clarkin said DCFS would need about $45 million to enact the restructuring and avoid the layoffs. “Both the director and the union-represented employees and lawmakers from both sides of the aisle understand that the state of Illinois has a primary purpose, both legal and moral to protect children.”
However, the supplemental appropriation seems to be far from a done deal. Chicago Democratic Rep. Sara Feigenholtz, who chairs the human services budgeting committee in the House, said her committee expects DCFS to justify every cent of what it is asking for. “I think the days of asking for round number budget increases or restorations are really done,” she said. The deep cuts to the agency’s budget came out of Feigenholtz's committee. “We want to make sure that when we restore money, that we are actually solving some looking problems that have not been resolved.”
“We’ve been working to build support for a supplemental appropriation since essentially the day the budget was passed. We knew that the cut to DCFS was unacceptable even before the budget was passed,” said Anders Lindall, spokesperson for AFSCME Council 31. Lindall said it is too soon to comment on whether the union would agree to the changes the agency is seeking in seniority policies. He said union members are relieved that DCFS did not move forward with the layoffs, and AFSCME is specifically pushing for restorations that would keep people in their jobs.
“We want to know exactly where those bodies are going and what they’re going to be doing. ... We want this money to make it to the street. We want those phones answered, and we want those children taken care of,” Feigenholtz said. She added that a clear source for the money would also have to emerge by the veto session. Quinn has proposed using money from shuttering prisons, but a judge has blocked the prison closures. Lindall suggested using money from the sale of Thomson prison to the federal government or the possibility that state revenues may be larger than previously expected. The union opposes using money from state facility closures to fund DCFS. “Forcing Illinois residents to choose between safe kids and safe prisons is wrong, and it’s not necessary.”
House Republicans have accused Quinn of dragging his feet on cost saving Medicaid reforms, and may be less than cooperative when it comes to putting “yes” votes on any supplemental appropriations bills during the veto session. “Until the Quinn administration gets serious about implementing our Medicaid reform laws, House Republicans will oppose attempts by the governor to spend additional money,” said a written statement from House Minority Leader Tom Cross’ office.
Chicago Democratic Sen. Heather Steans, who chairs one of two Senate budget committees, said she favors approving more funding for DCFS during the veto session. However, she voiced concerns over the gamble the department would be making by holding off on layoffs. “I would like to see us being able to re-sort dollars here,” Steans said. “There’s no guarantee [a] supplemental gets passed. I’m just me. I don’t know where the House is on this. I certainly don’t know where the Republicans are on it. So it think there’s a big risk potentially on how you go forward if we don’t get a supplemental passed. There’s a big risk to the department by not taking action now because there’s no guarantee that we’re going to get the supplemental.”
Clarkin declined to discuss the potential for more layoffs if the money does not come through, or whether the department has a plan B. “I think everybody is going to keep working together to make sure that that doesn’t happen.”
By delaying layoffs, the Illinois Department of Children and Family Services is betting that lawmakers will restore some of the department’s funding when they return in November for their veto session. But if the money is not approved, personnel cuts could be even deeper.
DCFS announced last week that it would not move ahead with 375 layoffs that the department had previously said were necessary because of budget cuts. Instead DCFS plans to try its luck at getting legislators to restore some of the money during the veto session. In the meantime, those workers will be getting paid out of a budget that does not include the money to cover their wages. If lawmakers do not approve a supplemental appropriation when they return for the veto session, DCFS could face a major budget shortfall at the end of the calendar year. “In terms of the potential risk, having not laid off people at this point and if there is no supplemental, I will have spent $19,646,000 that I was not appropriated as of the end of this year. So that the position that I’ll be in is having to lay off in addition [to the previously announced layoffs] another 380 people because that’s a half a year [they worked], and I need to double their salaries in order to be able to make that up. ... That’s the reality that I’m faced with,” DCFS Director Richard Calica told lawmakers at a hearing earlier this month when asked about the potential risk of delaying layoffs.
The department announced in August that it would lay off hundreds of employees after the legislature slashed the DCFS budget. Gov. Pat Quinn had proposed a funding cut to the agency in his budget plan, but lawmakers tacked on more reductions, leaving DCFS with more than $85 million less than last fiscal year. The bulk of layoffs would have come from a preventative program known as intact family services. (For more on the cuts and layoffs, see this Illinois Issues blog post.) DCFS walked back the layoffs last week and is instead opting to continue with a restructuring plan that the Quinn administration proposed earlier this year. The plan would shift some management employees to front-line positions and is geared toward lowering the caseload volumes of front-line workers and investigators. The plan “still cuts the DCFS staff by 6 percent, compared to last year, and still reduces the budget of the agency by tens of million of dollars,” said DCFS spokesman Dave Clarkin.
But the department's actions are contingent on lawmakers voting to restore funding, as well as the American Federation of State, County and Municipal Employees agreeing to waive some consideration for employee seniority. Clarkin said DCFS would need about $45 million to enact the restructuring and avoid the layoffs. “Both the director and the union-represented employees and lawmakers from both sides of the aisle understand that the state of Illinois has a primary purpose, both legal and moral to protect children.”
However, the supplemental appropriation seems to be far from a done deal. Chicago Democratic Rep. Sara Feigenholtz, who chairs the human services budgeting committee in the House, said her committee expects DCFS to justify every cent of what it is asking for. “I think the days of asking for round number budget increases or restorations are really done,” she said. The deep cuts to the agency’s budget came out of Feigenholtz's committee. “We want to make sure that when we restore money, that we are actually solving some looking problems that have not been resolved.”
“We’ve been working to build support for a supplemental appropriation since essentially the day the budget was passed. We knew that the cut to DCFS was unacceptable even before the budget was passed,” said Anders Lindall, spokesperson for AFSCME Council 31. Lindall said it is too soon to comment on whether the union would agree to the changes the agency is seeking in seniority policies. He said union members are relieved that DCFS did not move forward with the layoffs, and AFSCME is specifically pushing for restorations that would keep people in their jobs.
“We want to know exactly where those bodies are going and what they’re going to be doing. ... We want this money to make it to the street. We want those phones answered, and we want those children taken care of,” Feigenholtz said. She added that a clear source for the money would also have to emerge by the veto session. Quinn has proposed using money from shuttering prisons, but a judge has blocked the prison closures. Lindall suggested using money from the sale of Thomson prison to the federal government or the possibility that state revenues may be larger than previously expected. The union opposes using money from state facility closures to fund DCFS. “Forcing Illinois residents to choose between safe kids and safe prisons is wrong, and it’s not necessary.”
House Republicans have accused Quinn of dragging his feet on cost saving Medicaid reforms, and may be less than cooperative when it comes to putting “yes” votes on any supplemental appropriations bills during the veto session. “Until the Quinn administration gets serious about implementing our Medicaid reform laws, House Republicans will oppose attempts by the governor to spend additional money,” said a written statement from House Minority Leader Tom Cross’ office.
Chicago Democratic Sen. Heather Steans, who chairs one of two Senate budget committees, said she favors approving more funding for DCFS during the veto session. However, she voiced concerns over the gamble the department would be making by holding off on layoffs. “I would like to see us being able to re-sort dollars here,” Steans said. “There’s no guarantee [a] supplemental gets passed. I’m just me. I don’t know where the House is on this. I certainly don’t know where the Republicans are on it. So it think there’s a big risk potentially on how you go forward if we don’t get a supplemental passed. There’s a big risk to the department by not taking action now because there’s no guarantee that we’re going to get the supplemental.”
Clarkin declined to discuss the potential for more layoffs if the money does not come through, or whether the department has a plan B. “I think everybody is going to keep working together to make sure that that doesn’t happen.”
Tuesday, August 28, 2012
Quinn vetoes gambling expansion, citing ethics concerns
By Jamey Dunn
Gov. Pat Quinn shot down a gambling expansion bill today, but supporters hope to revisit the issue after the general election.
The move from Quinn today came as no shock to the bill’s sponsor. Quinn has kept quiet on what he intended to do, but he has been publicly critical of the bill. “The actions of the governor are disappointing, but they’re certainly not surprising,” said Skokie Democratic Rep. Lou Lang.
Senate Bill 1849 would have created licenses for five new casinos statewide: in Chicago, Park City, Danville, Rockford and in the south suburbs of Chicago. The location of the fifth casino would have been up to Illinois Gaming Board. The bill includes slot machines at horse racing tracks and would allow individual casinos to increase their gaming positions from the current limit of 1,200 to 1,600.
Quinn threatened to veto a similar expansion, SB 744, last year, calling it a “massive" gambling expansion. Senate President John Cullerton used a procedural move to block the measure from making it to Quinn’s desk. Quinn has also voiced opposition to allowing slot machines at horse racing tracks. The governor said in today’s veto message that he saw some positive changes in SB 1849, such as reductions in the scale of the gambling expansion from what was proposed in SB 744. However, he said that the newer bill did not have strong enough ethical standards. “The most glaring deficiency of Senate Bill 1849 is the absence of strict ethical standards and comprehensive regulatory oversight. Illinois should never settle for a gaming bill that includes loopholes for mobsters,” he wrote.
“We don’t have any corruption in Illinois gaming. Where is his evidence that there is any mafia in Illinois gaming today? There isn’t any,” Lang said.
Quinn made several suggestions in his veto message for improving the measure, such as banning campaign contributions from gaming licensees and casino managers. Lang said he was willing to include any of the governor’s requested ethics measures and asked Quinn to provide him any provisions he wanted included before the legislation was called for a floor vote. “He wouldn’t give me any language, and so we proceeded and passed a bill,” Lang said. He said that Quinn had another opportunity to add in the ethics measures he wanted with his veto pen but opted not to. “The fact that he vetoed the bill instead of amendatory vetoed the bill tells you everything you need to know.”
Lang added, “I have to draw the conclusion that he was never interested in gaming.”
When asked why he did not make his own changes to the bill, Quinn said: “It just has too many defects. It’s one thing if you had to make some technical changes here and there, but this bill just falls way short of what the people of Illinois need when it comes to ethics in government.” He said he planned to work with lawmakers to craft “a better bill,” which he described as “one that can meet all the requirements of integrity and also make sure the money goes to schools and education.”
However, Lang said that he thinks it is possible to rally enough support for an override in the legislature's November veto session, despite a comment from House Speaker Michael Madigan to the contrary. “Speaker Madigan was only making a prediction,” Lang said.
“I’m very saddened,” said Waukegan Democratic Sen. Terry Link, who also sponsored the bill. “This is just ridiculous. Again, we have done everything possible to make this work, and again, the goal line has changed.”
An override would have to start in the Senate, and Link said he has not yet made up his mind. He said he plans to decide in the time between the general election and veto session. “We’ve got a three-week window in there, and we’ll be doing a lot of phone calling then,” He said. “People will be either comfortable or happy or sad or whatever they are.”
Link admitted, “It will be in the back of my mind for the next two months.”
Quinn used his veto message to again urge lawmakers to take up the issue of pension reform. A recent special session on pensions produced no substantial results. “Illinois cannot gamble its way out of our fiscal challenges. Even a casino on every street corner cannot repair the state’s $83 billion unfunded pension liability. I urge the members of the Illinois House and Senate to address the most pressing issue of our time — comprehensive public pension reform.”
Gov. Pat Quinn shot down a gambling expansion bill today, but supporters hope to revisit the issue after the general election.
The move from Quinn today came as no shock to the bill’s sponsor. Quinn has kept quiet on what he intended to do, but he has been publicly critical of the bill. “The actions of the governor are disappointing, but they’re certainly not surprising,” said Skokie Democratic Rep. Lou Lang.
Senate Bill 1849 would have created licenses for five new casinos statewide: in Chicago, Park City, Danville, Rockford and in the south suburbs of Chicago. The location of the fifth casino would have been up to Illinois Gaming Board. The bill includes slot machines at horse racing tracks and would allow individual casinos to increase their gaming positions from the current limit of 1,200 to 1,600.
Quinn threatened to veto a similar expansion, SB 744, last year, calling it a “massive" gambling expansion. Senate President John Cullerton used a procedural move to block the measure from making it to Quinn’s desk. Quinn has also voiced opposition to allowing slot machines at horse racing tracks. The governor said in today’s veto message that he saw some positive changes in SB 1849, such as reductions in the scale of the gambling expansion from what was proposed in SB 744. However, he said that the newer bill did not have strong enough ethical standards. “The most glaring deficiency of Senate Bill 1849 is the absence of strict ethical standards and comprehensive regulatory oversight. Illinois should never settle for a gaming bill that includes loopholes for mobsters,” he wrote.
“We don’t have any corruption in Illinois gaming. Where is his evidence that there is any mafia in Illinois gaming today? There isn’t any,” Lang said.
Quinn made several suggestions in his veto message for improving the measure, such as banning campaign contributions from gaming licensees and casino managers. Lang said he was willing to include any of the governor’s requested ethics measures and asked Quinn to provide him any provisions he wanted included before the legislation was called for a floor vote. “He wouldn’t give me any language, and so we proceeded and passed a bill,” Lang said. He said that Quinn had another opportunity to add in the ethics measures he wanted with his veto pen but opted not to. “The fact that he vetoed the bill instead of amendatory vetoed the bill tells you everything you need to know.”
Lang added, “I have to draw the conclusion that he was never interested in gaming.”
When asked why he did not make his own changes to the bill, Quinn said: “It just has too many defects. It’s one thing if you had to make some technical changes here and there, but this bill just falls way short of what the people of Illinois need when it comes to ethics in government.” He said he planned to work with lawmakers to craft “a better bill,” which he described as “one that can meet all the requirements of integrity and also make sure the money goes to schools and education.”
However, Lang said that he thinks it is possible to rally enough support for an override in the legislature's November veto session, despite a comment from House Speaker Michael Madigan to the contrary. “Speaker Madigan was only making a prediction,” Lang said.
“I’m very saddened,” said Waukegan Democratic Sen. Terry Link, who also sponsored the bill. “This is just ridiculous. Again, we have done everything possible to make this work, and again, the goal line has changed.”
An override would have to start in the Senate, and Link said he has not yet made up his mind. He said he plans to decide in the time between the general election and veto session. “We’ve got a three-week window in there, and we’ll be doing a lot of phone calling then,” He said. “People will be either comfortable or happy or sad or whatever they are.”
Link admitted, “It will be in the back of my mind for the next two months.”
Quinn used his veto message to again urge lawmakers to take up the issue of pension reform. A recent special session on pensions produced no substantial results. “Illinois cannot gamble its way out of our fiscal challenges. Even a casino on every street corner cannot repair the state’s $83 billion unfunded pension liability. I urge the members of the Illinois House and Senate to address the most pressing issue of our time — comprehensive public pension reform.”
Friday, November 11, 2011
Veto session roundup
By Jamey Dunn
While Illinois lawmakers pushed some issues to additional session days scheduled later this month, they did pass a few substantial pieces of legislation.
Regional superintendent pay
The wait for paychecks will end for regional superintendents after Gov. Pat Quinn signs Senate Bill 2147. Quinn vetoed the funds for the administrators’ salaries, and while many have remained on the job, they have not been paid since summer. The measure draws from local revenues to compensate superintendents for one year. The bill also calls for a task force to study a potential consolidation of some of the Regional Offices of Education, which are run by the superintendents. Lawmakers expressed frustration with Quinn for cutting the funding for the superintendents' pay without a plan for who would take over their legally required duties, including school inspection and teacher certification. “We should be ashamed of the position that the governor’s veto has put us in,” said Spring Valley Democratic Rep. Frank Mautino, a sponsor of SB2147.
Quinn has maintained that local governments should pay for their salaries. A spokesperson for Quinn said that he plans to sign the bill.
Speed cameras
The city of Chicago could install cameras to catch speeders around parks and schools if Quinn signs SB965. The cameras would take a picture of the license plates of speeders who then would be mailed a ticket. They would not be charged with a moving violation. The offense would be on par with a parking ticket. And, like a parking ticket, the owner of the car, who may or may not have been driving at the time of the violation, would be responsible for the ticket.
Unemployment insurance
Legislators also approved a plan to address the state’s growing obligation to the federal government for unemployment benefits. The state has been borrowing money for the feds to keep pace with unemployment benefits paid out during the recession. The interest bill would have reached an estimated $240 million, which would have come out of general revenue funds. Under SB72, business will have to pay up to make the trust fund that pays benefits solvent. However, the interest payment and even larger penalties for businesses that would have happened if no action were taken, would be avoided. Companies that have not had any layoffs, nearly half of businesses in Illinois, would pay less. The plan passed with bipartisan support and the backing of the business and labor communities. “Many of us have campaigned that we want to help business out. … Well, here is your bill,” said Sen. Kyle McCarter during floor debate. Quinn also supports the measure. "We are in difficult economic times, and we need to bolster our unemployment insurance program to protect both workers and businesses," Quinn said in a prepared statement. “As we did with our workers’ compensation overhaul this spring, we brought everyone to the table to find a solution.”
For a comprehensive look at the unemployment insurance trust fund, see Illinois Issues November 2010.
House Speaker Michael Madigan said the House plans to return for session on November 29. Senate President Cullerton said his chamber would return before the end of the year to take up issues that were not resolved during the veto session.
While Illinois lawmakers pushed some issues to additional session days scheduled later this month, they did pass a few substantial pieces of legislation.
Regional superintendent pay
The wait for paychecks will end for regional superintendents after Gov. Pat Quinn signs Senate Bill 2147. Quinn vetoed the funds for the administrators’ salaries, and while many have remained on the job, they have not been paid since summer. The measure draws from local revenues to compensate superintendents for one year. The bill also calls for a task force to study a potential consolidation of some of the Regional Offices of Education, which are run by the superintendents. Lawmakers expressed frustration with Quinn for cutting the funding for the superintendents' pay without a plan for who would take over their legally required duties, including school inspection and teacher certification. “We should be ashamed of the position that the governor’s veto has put us in,” said Spring Valley Democratic Rep. Frank Mautino, a sponsor of SB2147.
Quinn has maintained that local governments should pay for their salaries. A spokesperson for Quinn said that he plans to sign the bill.
Speed cameras
The city of Chicago could install cameras to catch speeders around parks and schools if Quinn signs SB965. The cameras would take a picture of the license plates of speeders who then would be mailed a ticket. They would not be charged with a moving violation. The offense would be on par with a parking ticket. And, like a parking ticket, the owner of the car, who may or may not have been driving at the time of the violation, would be responsible for the ticket.
Unemployment insurance
Legislators also approved a plan to address the state’s growing obligation to the federal government for unemployment benefits. The state has been borrowing money for the feds to keep pace with unemployment benefits paid out during the recession. The interest bill would have reached an estimated $240 million, which would have come out of general revenue funds. Under SB72, business will have to pay up to make the trust fund that pays benefits solvent. However, the interest payment and even larger penalties for businesses that would have happened if no action were taken, would be avoided. Companies that have not had any layoffs, nearly half of businesses in Illinois, would pay less. The plan passed with bipartisan support and the backing of the business and labor communities. “Many of us have campaigned that we want to help business out. … Well, here is your bill,” said Sen. Kyle McCarter during floor debate. Quinn also supports the measure. "We are in difficult economic times, and we need to bolster our unemployment insurance program to protect both workers and businesses," Quinn said in a prepared statement. “As we did with our workers’ compensation overhaul this spring, we brought everyone to the table to find a solution.”
For a comprehensive look at the unemployment insurance trust fund, see Illinois Issues November 2010.
House Speaker Michael Madigan said the House plans to return for session on November 29. Senate President Cullerton said his chamber would return before the end of the year to take up issues that were not resolved during the veto session.
Monday, November 07, 2011
Plenty on the table heading into last week of veto session
By Jamey Dunn
When lawmakers return to Springfield to wrap up their veto session this week, borrowing to pay off the state’s backlog of overdue bills may be on the table, as well as several items of unfinished business from the session two weeks ago.
Borrowing
A new plan from Gov. Pat Quinn to borrow $4.5 billion to pay down some of the state’s overdue bills could surface this week. Quinn pitched an $8.75 billion borrowing plan in his fiscal year 2012 budget proposal, but it never gained traction. House Minority Leader Tom Cross said the idea of a smaller borrowing package came up in leader’s meetings last week and that Quinn voiced interest in engaging in some horse trading — Republican votes on a borrowing plan for his support of a business friendly tax incentive package. A spokesperson for Quinn said that the governor pitched the idea as part of an overall “jobs creation” package. Paying vendors could potentially halt layoffs and would inject billions into the state’s economy.
Rushville Democratic Sen. John Sullivan, who sponsored a package of borrowing bills, said legislators are coming around to the idea. “I’ve been talking to a lot of members and colleagues about the issue and trying to explain to them why we need to pay our bills. … And I feel that there has been momentum.” While some lawmakers may be warming to the idea, recent polling shows voters are not. A Paul Simon Public Policy Institute survey of 1,000 Illinois voters found that only 39 percent favored borrowing to address the backlog. The poll had a margin of error of plus or minus 3 percentage points. "If every dime of that borrowing package were dedicated to paying past-due bills and making pension contributions on time, it might be something citizens would be willing to tolerate," institute Director David Yepsen said in a prepared statement. "Even that would be a tough sell, since many voters thought the last round of tax increases were supposed to pay bills on time, and they don't feel that happened."
Sullivan said that he is not working directly with Quinn on a revamped plan, but he said he is willing to tweak his legislation in whatever ways needed to garner support. When Sullivan called a measure to borrow about $6.2 billion for a vote in the spring, it only got 19 “yes” votes. “I definitely think that we’re at a better place now than we were when the plan was introduced,” he said. At least one Republican vote will be needed in his chamber for borrowing legislation to pass.
Business package
Lawmakers will likely consider a second incarnation of a tax incentive package meant to keep large businesses in the state. Senate President John Cullerton sponsored a plan to offer a tax cut to the CME Group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade, to keep it from moving out of state. Terrence Duffy, chairman and chief operating officer of the CME Group, starting making such threats after realizing that the company would pay more than $150 million in income taxes under the state’s recent income tax increase. During a committee hearing on the measure last week, Republicans said they could not support giving target breaks to one company. They said they wanted a broader relief package that would help out other businesses, too.
A revamped plan could offer relief to Sears, which has also threatened an exit, as well as some generally business friendly sweeteners, such as an extension of a research and development tax credit.
Collective bargaining
House Speaker Michael Madigan pitched a resolution that would allow the legislature to get involved in bargaining union contracts.
Under the plan, both chambers would agree to put a spending cap on how much the governor can offer public employee unions in wage increases under a new contract. Current contracts are set to expire in 2012. “What we’re talking about is about a two-and-a-half-year obligation on spending. Well, I think the legislature has a rightful place in this bargaining,” said Madigan when the resolution was read on the House floor two weeks ago.
Traditionally, the legislature has not been at the forefront of contract negotiations. But lawmakers became frustrated with Quinn after he promised no public union employee layoffs through the end of the current fiscal year. Quinn has since gone back on that promise by backing a plan for layoffs and facility closures. He also froze union pay raises included in contracts. Quinn said both moves are necessary because the legislature did not include enough money in the budget to cover personnel costs and keep basic services running through the end of the fiscal year. Union officials say that Quinn has violated their contract and are taking the state to court.
Cross went one further than Madigan, proposing an amendment that would halt pay increases until the state has had a budget surplus for two years. “Our priority is on the protection of jobs in this state and ensuring that we get our fiscal house in order above all else,” Cross said in a written statement. “We should not enter into any new contracts that guarantee wage and benefit increases at a time when the governor is talking about closing seven state facilities that serve those with mental health needs, at-risk youth, and house dangerous criminals.” The Republican leader has said the facilities Quinn want to shutter are primarily in Republican districts and accused Quinn of playing politics when choosing his closure targets.
Madigan called upon the House Revenue and Finance Committee to set the number for the cap. The committee may also consider Cross’ proposal. The House Revenue and Finance Committee has two hearings scheduled for next week. The first is scheduled for today.
Insurance Exchange
Legislators may also consider a pivotal component of the federal health care reform law. Illinois is working to set up its own insurance exchange, an online marketplace meant to drive down the cost of insurance policies by encouraging competition. Health care advocates are pushing for lawmakers to approve legislation that would determine who would serve on the board overseeing the marketplace and who would ultimately pay for the exchange. “We want the state to move forward, and we are optimistic,” said Jim Duffett, executive director of the Campaign for Better Health Care.
The major sticking point is who will be eligible to sit on the board. Advocacy groups want insurance industry insiders barred from holding any voting power, because they could potentially profit from board decisions. They say those in the industry should hold purely advisory positions. Duffett said the board should be made up of “health care experts, small business owners and consumers.” He likened allowing insurance professionals voting power to letting a fox into the hen house.
Representatives of the industry say their hands-on expertise is needed on the board to shape an exchange that works well in practice. “To suggest that insurance expertise should be prohibited on the board, as some have … we believe is analogous to suggesting that an aeronautical engineer should be prohibited from serving on the board of Boeing Aircraft,” said Phil Lackman, Illinois vice president of government relations for the National Association of Insurance and Financial Advisors.
The House Insurance Committee has a hearing scheduled for Tuesday. “We do believe that there will be some action taken on Tuesday,” Duffett said.
Gambling
Supporters of a gaming expansion package are still looking for a plan that can pass in the legislature and get Quinn’s support. Quinn is opposed to Senate Bill 744, which passed last spring and would allow for five new casinos and slots at horse racing tracks. Quinn laid out his recommendations days before the veto session started, and Sen. Terry Link, sponsor of SB744, backed a bill that he said was based on those suggestions. Quinn did not agree and opposed the bill. Link held off on calling the legislation, SB747, last week and said he wanted to continue talks with Quinn.
This week, Quinn said that he was not engaged in negotiations on gaming. He said passing an expansion is not one of his priorities, but he is “open minded” about the concept. After meeting with Quinn last week, Cullerton told reporters that he was optimistic about finding a compromise. “I expect we will have a gaming bill going on next week as well. … We had a lot of productive input from the governor in ways in which we could correct the bill that we did pass. I can’t say we’ve narrowed the differences to agreement, but I think we’ve made a lot of progress. A lot of reforms suggested by the gaming board, we can incorporate into the bill.” More than half — 57 percent — of respondents in the Paul Simon Public Policy Institute survey said they backed expanded gambling as a way to bring in more state revenue.
When lawmakers return to Springfield to wrap up their veto session this week, borrowing to pay off the state’s backlog of overdue bills may be on the table, as well as several items of unfinished business from the session two weeks ago.
Borrowing
A new plan from Gov. Pat Quinn to borrow $4.5 billion to pay down some of the state’s overdue bills could surface this week. Quinn pitched an $8.75 billion borrowing plan in his fiscal year 2012 budget proposal, but it never gained traction. House Minority Leader Tom Cross said the idea of a smaller borrowing package came up in leader’s meetings last week and that Quinn voiced interest in engaging in some horse trading — Republican votes on a borrowing plan for his support of a business friendly tax incentive package. A spokesperson for Quinn said that the governor pitched the idea as part of an overall “jobs creation” package. Paying vendors could potentially halt layoffs and would inject billions into the state’s economy.
Rushville Democratic Sen. John Sullivan, who sponsored a package of borrowing bills, said legislators are coming around to the idea. “I’ve been talking to a lot of members and colleagues about the issue and trying to explain to them why we need to pay our bills. … And I feel that there has been momentum.” While some lawmakers may be warming to the idea, recent polling shows voters are not. A Paul Simon Public Policy Institute survey of 1,000 Illinois voters found that only 39 percent favored borrowing to address the backlog. The poll had a margin of error of plus or minus 3 percentage points. "If every dime of that borrowing package were dedicated to paying past-due bills and making pension contributions on time, it might be something citizens would be willing to tolerate," institute Director David Yepsen said in a prepared statement. "Even that would be a tough sell, since many voters thought the last round of tax increases were supposed to pay bills on time, and they don't feel that happened."
Sullivan said that he is not working directly with Quinn on a revamped plan, but he said he is willing to tweak his legislation in whatever ways needed to garner support. When Sullivan called a measure to borrow about $6.2 billion for a vote in the spring, it only got 19 “yes” votes. “I definitely think that we’re at a better place now than we were when the plan was introduced,” he said. At least one Republican vote will be needed in his chamber for borrowing legislation to pass.
Business package
Lawmakers will likely consider a second incarnation of a tax incentive package meant to keep large businesses in the state. Senate President John Cullerton sponsored a plan to offer a tax cut to the CME Group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade, to keep it from moving out of state. Terrence Duffy, chairman and chief operating officer of the CME Group, starting making such threats after realizing that the company would pay more than $150 million in income taxes under the state’s recent income tax increase. During a committee hearing on the measure last week, Republicans said they could not support giving target breaks to one company. They said they wanted a broader relief package that would help out other businesses, too.
A revamped plan could offer relief to Sears, which has also threatened an exit, as well as some generally business friendly sweeteners, such as an extension of a research and development tax credit.
Collective bargaining
House Speaker Michael Madigan pitched a resolution that would allow the legislature to get involved in bargaining union contracts.
Under the plan, both chambers would agree to put a spending cap on how much the governor can offer public employee unions in wage increases under a new contract. Current contracts are set to expire in 2012. “What we’re talking about is about a two-and-a-half-year obligation on spending. Well, I think the legislature has a rightful place in this bargaining,” said Madigan when the resolution was read on the House floor two weeks ago.
Traditionally, the legislature has not been at the forefront of contract negotiations. But lawmakers became frustrated with Quinn after he promised no public union employee layoffs through the end of the current fiscal year. Quinn has since gone back on that promise by backing a plan for layoffs and facility closures. He also froze union pay raises included in contracts. Quinn said both moves are necessary because the legislature did not include enough money in the budget to cover personnel costs and keep basic services running through the end of the fiscal year. Union officials say that Quinn has violated their contract and are taking the state to court.
Cross went one further than Madigan, proposing an amendment that would halt pay increases until the state has had a budget surplus for two years. “Our priority is on the protection of jobs in this state and ensuring that we get our fiscal house in order above all else,” Cross said in a written statement. “We should not enter into any new contracts that guarantee wage and benefit increases at a time when the governor is talking about closing seven state facilities that serve those with mental health needs, at-risk youth, and house dangerous criminals.” The Republican leader has said the facilities Quinn want to shutter are primarily in Republican districts and accused Quinn of playing politics when choosing his closure targets.
Madigan called upon the House Revenue and Finance Committee to set the number for the cap. The committee may also consider Cross’ proposal. The House Revenue and Finance Committee has two hearings scheduled for next week. The first is scheduled for today.
Insurance Exchange
Legislators may also consider a pivotal component of the federal health care reform law. Illinois is working to set up its own insurance exchange, an online marketplace meant to drive down the cost of insurance policies by encouraging competition. Health care advocates are pushing for lawmakers to approve legislation that would determine who would serve on the board overseeing the marketplace and who would ultimately pay for the exchange. “We want the state to move forward, and we are optimistic,” said Jim Duffett, executive director of the Campaign for Better Health Care.
The major sticking point is who will be eligible to sit on the board. Advocacy groups want insurance industry insiders barred from holding any voting power, because they could potentially profit from board decisions. They say those in the industry should hold purely advisory positions. Duffett said the board should be made up of “health care experts, small business owners and consumers.” He likened allowing insurance professionals voting power to letting a fox into the hen house.
Representatives of the industry say their hands-on expertise is needed on the board to shape an exchange that works well in practice. “To suggest that insurance expertise should be prohibited on the board, as some have … we believe is analogous to suggesting that an aeronautical engineer should be prohibited from serving on the board of Boeing Aircraft,” said Phil Lackman, Illinois vice president of government relations for the National Association of Insurance and Financial Advisors.
The House Insurance Committee has a hearing scheduled for Tuesday. “We do believe that there will be some action taken on Tuesday,” Duffett said.
Gambling
Supporters of a gaming expansion package are still looking for a plan that can pass in the legislature and get Quinn’s support. Quinn is opposed to Senate Bill 744, which passed last spring and would allow for five new casinos and slots at horse racing tracks. Quinn laid out his recommendations days before the veto session started, and Sen. Terry Link, sponsor of SB744, backed a bill that he said was based on those suggestions. Quinn did not agree and opposed the bill. Link held off on calling the legislation, SB747, last week and said he wanted to continue talks with Quinn.
This week, Quinn said that he was not engaged in negotiations on gaming. He said passing an expansion is not one of his priorities, but he is “open minded” about the concept. After meeting with Quinn last week, Cullerton told reporters that he was optimistic about finding a compromise. “I expect we will have a gaming bill going on next week as well. … We had a lot of productive input from the governor in ways in which we could correct the bill that we did pass. I can’t say we’ve narrowed the differences to agreement, but I think we’ve made a lot of progress. A lot of reforms suggested by the gaming board, we can incorporate into the bill.” More than half — 57 percent — of respondents in the Paul Simon Public Policy Institute survey said they backed expanded gambling as a way to bring in more state revenue.
Monday, October 31, 2011
Veto session CapitolView
The first week of veto session in the Illinois General Assembly wraps up with some unexpected movement on some of the issues facing the legislature. Gaming, the Smart Grid/ComEd rate hike and pensions are discussed.
Panel: Mike Lawrence, Charles Wheeler & Benjamin Yount. Moderated by Jamey Dunn (Illinois Issues Magazine)
Monday, October 24, 2011
Lawmakers look for ways around Quinn's opposition
By Jamey Dunn
Tweaks to two major legislative packages emerged the day before the fall veto legislative session is scheduled to begin.
Waukegan Democratic Sen. Terry Link said he plans to bring a bill that contains Gov. Pat Quinn’s suggested changes for the gaming expansion up for a floor vote in the Senate this week. Quinn said last week that he supported five new casinos in the state, including one owned by the city of Chicago, but opposed the slot machines at horse racing tracks that would be allowed under the gaming plan lawmakers approved in the spring session.
Last week, Link told Illinois Issues that legislation based on Quinn’s demands could not find the support needed to pass in the Senate. However, Link said today: “I will carry it with sincerity. I will tell all the facts, figures and everything that the governor has in it. I will … make it as a positive endeavor.” He said if it does not pass, he plans to sponsor a trailer bill in the last week of veto session that he hopes will be a “compromise” that the governor can accept. Quinn has been unable to veto the gaming bill because a parliamentary move was used to hold it from going to his desk. But he said last week that given the opportunity, he would use his veto pen on Senate Bill 744. Link would not share any details today about a potential trailer bill.
Gov. Pat Quinn has also shot down a plan that sponsors say would help the state’s two biggest utility companies update Illinois’ electrical grid. Quinn was a vocal opponent of Senate Bill 1652 when lawmakers passed it last spring. He followed through on his vow to veto the bill and has been urging residents to call their lawmakers and ask them to vote against a potential override of his veto.
The measure would allow the companies to increase consumer rates in exchange for a $3.2 billion investment in the grid over 10 years.
Supporters worked to craft a follow-up bill that they say would tighten restrictions on Ameren and Commonwealth Edison. They hope it will be enough top drum up the supermajority needed to undo Quinn’s veto. A Senate committee approved the changes today.
“I commended the governor for vetoing the bill, having voted against it. There were clearly some defects in Senate Bill 1652 that caused concern for myself and other members of the General Assembly who voted ‘no,’” Oak Park Democratic Sen. Don Harmon said. Harmon is the sponsor of House Bill 3036, the so-called trailer bill that asks more of utilities and would only go into effect if lawmakers vote to override the governor’s veto. Harmon said the plan “would make that underlying bill, in my opinion, much better.”
House Bill 3036 would increase reliability standards and require the utilities to spend more of their investment on traditional infrastructure, such as buried power lines, to make transmission more reliable. The plan calls for spending on so-called smart grid technologies — which allow utilities to better monitor lines, outages and transmission in real time — as well as basic costs like power lines and poles.
The original legislation requires ComEd to create 2,000 jobs under the plan and Ameren to create 450 jobs. Harmon said his bill would crack down on how those jobs are counted to avoid the potential double counting of a single job. It would also increase the penalty for not meeting those hiring goals from $3,000 per job to $6,000.
The bill calls for both companies to spend an annual combined total of $60 million a year on rate relief programs for low-income customers.
The legislation would also lower the return on equity the companies would be allowed to earn from 10.4 percent to about 9.7 percent. Harmon said in years two through 10 of the plan, the return would be capped at 8 percent to 9 percent. Consumer advocates said the utilities should not be able to make more than 10 percent returns on their investments, since they would likely be backed with rate increases.
Despite such changes, major consumer advocacy groups, along with Quinn and Attorney General Lisa Madigan, remain opposed to the plan.
“We don’t think ... it addresses the fundamental problems,” said Scott Musser, associate state director of AARP Illinois. “I think we need to start from square one on this and go a new direction and get everyone at the table. One of the fundamental problems all along is there hasn’t been substantial negotiations.”
Madigan blasted the proposed changes to the plan. “Just like they tried to muscle this legislation through the spring session, ComEd and Ameren are at it again. On the eve of veto session, the utility companies gave the public just 59 minutes to review their smart grid “trailer bill” before taking it to the Senate for a vote. If ComEd and Ameren’s proposal were actually a “smart” deal for consumers, it would hold its own rather than be rushed through the process without public input. Instead, ComEd and Ameren have produced a “Trojan Horse” deal that’s designed to distract us from what this legislation really does: guarantee the utilities’ profits, mandate automatic, annual rate hikes and eviscerate independent oversight,” the attorney general said in a written statement.
For more on what to expect during veto session, see Illinois Issues' roundup of the big issues with links to background piec
Tweaks to two major legislative packages emerged the day before the fall veto legislative session is scheduled to begin.
Waukegan Democratic Sen. Terry Link said he plans to bring a bill that contains Gov. Pat Quinn’s suggested changes for the gaming expansion up for a floor vote in the Senate this week. Quinn said last week that he supported five new casinos in the state, including one owned by the city of Chicago, but opposed the slot machines at horse racing tracks that would be allowed under the gaming plan lawmakers approved in the spring session.
Last week, Link told Illinois Issues that legislation based on Quinn’s demands could not find the support needed to pass in the Senate. However, Link said today: “I will carry it with sincerity. I will tell all the facts, figures and everything that the governor has in it. I will … make it as a positive endeavor.” He said if it does not pass, he plans to sponsor a trailer bill in the last week of veto session that he hopes will be a “compromise” that the governor can accept. Quinn has been unable to veto the gaming bill because a parliamentary move was used to hold it from going to his desk. But he said last week that given the opportunity, he would use his veto pen on Senate Bill 744. Link would not share any details today about a potential trailer bill.
Gov. Pat Quinn has also shot down a plan that sponsors say would help the state’s two biggest utility companies update Illinois’ electrical grid. Quinn was a vocal opponent of Senate Bill 1652 when lawmakers passed it last spring. He followed through on his vow to veto the bill and has been urging residents to call their lawmakers and ask them to vote against a potential override of his veto.
The measure would allow the companies to increase consumer rates in exchange for a $3.2 billion investment in the grid over 10 years.
Supporters worked to craft a follow-up bill that they say would tighten restrictions on Ameren and Commonwealth Edison. They hope it will be enough top drum up the supermajority needed to undo Quinn’s veto. A Senate committee approved the changes today.
“I commended the governor for vetoing the bill, having voted against it. There were clearly some defects in Senate Bill 1652 that caused concern for myself and other members of the General Assembly who voted ‘no,’” Oak Park Democratic Sen. Don Harmon said. Harmon is the sponsor of House Bill 3036, the so-called trailer bill that asks more of utilities and would only go into effect if lawmakers vote to override the governor’s veto. Harmon said the plan “would make that underlying bill, in my opinion, much better.”
House Bill 3036 would increase reliability standards and require the utilities to spend more of their investment on traditional infrastructure, such as buried power lines, to make transmission more reliable. The plan calls for spending on so-called smart grid technologies — which allow utilities to better monitor lines, outages and transmission in real time — as well as basic costs like power lines and poles.
The original legislation requires ComEd to create 2,000 jobs under the plan and Ameren to create 450 jobs. Harmon said his bill would crack down on how those jobs are counted to avoid the potential double counting of a single job. It would also increase the penalty for not meeting those hiring goals from $3,000 per job to $6,000.
The bill calls for both companies to spend an annual combined total of $60 million a year on rate relief programs for low-income customers.
The legislation would also lower the return on equity the companies would be allowed to earn from 10.4 percent to about 9.7 percent. Harmon said in years two through 10 of the plan, the return would be capped at 8 percent to 9 percent. Consumer advocates said the utilities should not be able to make more than 10 percent returns on their investments, since they would likely be backed with rate increases.
Despite such changes, major consumer advocacy groups, along with Quinn and Attorney General Lisa Madigan, remain opposed to the plan.
“We don’t think ... it addresses the fundamental problems,” said Scott Musser, associate state director of AARP Illinois. “I think we need to start from square one on this and go a new direction and get everyone at the table. One of the fundamental problems all along is there hasn’t been substantial negotiations.”
Madigan blasted the proposed changes to the plan. “Just like they tried to muscle this legislation through the spring session, ComEd and Ameren are at it again. On the eve of veto session, the utility companies gave the public just 59 minutes to review their smart grid “trailer bill” before taking it to the Senate for a vote. If ComEd and Ameren’s proposal were actually a “smart” deal for consumers, it would hold its own rather than be rushed through the process without public input. Instead, ComEd and Ameren have produced a “Trojan Horse” deal that’s designed to distract us from what this legislation really does: guarantee the utilities’ profits, mandate automatic, annual rate hikes and eviscerate independent oversight,” the attorney general said in a written statement.
For more on what to expect during veto session, see Illinois Issues' roundup of the big issues with links to background piec
Friday, October 21, 2011
Veto session preview
By Jamey Dunn
Illinois lawmakers will likely have a busy veto session as they consider two industry changing plans opposed by Gov. Pat Quinn, components of a budget that Quinn says is forcing him to close several state facilities and other potentially hot button issues.
“The agenda is pretty full. It’s really kind of the fall legislative sessions these days rather than a veto session,” said Kent Redfield, an emeritus political science professor at the University of Illinois Springfield. Several committee hearings are scheduled for Monday, and the session will runs Tuesday through Thursday. It will resume November 8, with an adjournment date scheduled for November 10.
Gaming
Gov. Pat Quinn laid out what he would like to see changed in the gaming expansion package that lawmakers passed at the end of the spring legislative session. Senate President John Cullerton still has a procedural hold on Senate Bill 744, so Quinn has been unable to do anything but present his list of demands. Skokie Democratic Rep. Lou Lang and Waukegan Democratic Sen. Terry Link, the sponsors of the bill, have been pushing Quinn all summer for specifics on what he wants. When he finally gave them this week, the sponsors seemed less than thrilled. Lang and Link agree that if they drafted Quinn’s plan into a bill, they couldn’t scrape up the votes to pass it.
The governor wants to remove a provision that would allow slot machines at horse racing tracks. He does support the addition of five new casinos, including one owned by the city of Chicago. He also wants to add a measure to address legalization of video poker in some bars and restaurants across the state. When video poker was approved as part of the funding plan for the capital construction bill, Quinn supported allowing local governments to opt out of having it in their area. Now, he wants local officials to vote to opt it if they want video poker. So far, the Illinois Gaming Board has not issued any video poker licenses, and the plan has not generated any revenue for the state. Quinn also wants to take tax breaks out of the bill, which are a sweetener for existing casinos. His plan also calls for a ban on campaign contributions from those holding gaming licenses or managing a casino.
Supporters of the gaming expansion say they are working on a trailer bill with changes that they hope will appease Quinn and say they plan to roll it out in a committee hearing early next week. They say they cannot pass legislation that does not include slots at the racetracks. Quinn said he will not sign a bill that does, and he has also vowed to veto SB 744 if it is sent to him — making the plan to fix the situation with a trailer bill that would tack changes onto the original legislation a shaky prospect. “Somebody may figure out how to pull a rabbit out of a hat that makes Quinn, and [Chicago Mayor Rahm] Emanuel, and downstate [lawmakers] and the horse racing people happy,” said Redfield. “But it would be a neat trick.”
For more on video poker and the challenges it has faced getting off the ground, see Illinois Issues April 2010.
Smart grid
Sponsors of a Senate Bill 1652, which would allow the state’s two biggest utility companies to increase customers’ rates in exchange for investments in the state's electric grid have said they will try to drum up enough votes to override Quinn’s veto. Supporters say smart grid technology will create jobs, make service more reliable and help some customers save money by allowing them to monitor their usage.
Opposition to the bill includes AARP; the Citizens Utility Board, which is a consumer advocacy group started by Quinn; and Attorney General Lisa Madigan. Quinn has appealed to the public and even set up a website encouraging people to call their lawmakers and tell them to vote against the bill. Quinn and others say it was written by Ameren and Commonwealth Edison lobbyists as a way to lock in the utilities’ profits. “It seems to me that the governor has a right to set up a media campaign and hire lobbyists and do everything that he’s doing,” said Sen. Mike Jacobs, an East Moline Democrat and sponsor of SB1652. “But at the end of the day, this comes down to the question, do you want a smart grid or don’t you?”
Lawmakers backing the legislation say they are working on a trailer bill to tighten up customer service and reliability requirements in the hopes of getting some fence sitters’ votes to keep the plan alive. Expect heavy lobbying and public relations efforts on both sides of the issue.
For more on smart grid technology and its potential public policy implications, see Illinois Issues July/August 2011.
Budget
Hearings are under way throughout the state about the potential closure of seven state facilities. Quinn announced last month his plans to close the institutions and lay off more than 1,900 state employees. The governor said the budget lawmakers approved in the spring would not fully find state operations, so the facilities must be shuttered to shift money to the core services of the state. Quinn is calling on lawmakers to approve his budget vetoes, many of which, such as a cut to school transportation budget, are generally unpopular with legislators. Quinn is also reportedly working up a list of budget tweaks and cuts he would like to see restored.
Some school officials are looking to lawmakers to find a way for them to get paid. Quinn cut money for the salaries of regional superintendents. The majority of them stayed on the job and have not seen a paycheck since June. Quinn said that local governments should pay them and has a bill in the works to shift the cost. The Illinois Municipal League opposes dipping into local funds. Lawmakers could also vote to override the governor’s veto and restore the money to the state budget. Regional superintendents say they do not prefer one plan over they other; they just want to get paid.
Legislative scholarships
Quinn used his veto pen to try to end a program that has been a source of controversy and scandal for years, but it is unlikely that his changes will ever see the light of day.
Quinn took a bill that would have barred lawmakers from giving scholarships to family members and rewrote it to end the program altogether. He has the support of the bill’s sponsors and has been publicly calling on lawmakers to end the program. However, House Speaker Michael Madigan said Quinn overstepped his constitutional authority, and it is unlikely that the speaker will call the veto for a vote. If no vote is taken, Quinn’s changes and the underlying legislation would die.
Lang, a longtime member of House Democratic leadership, said Madigan has historically been opposed to allowing governors to use their veto pens to make broad changes in the legislation that lands on their desks. “Even if he likes the changes, he has not allowed those bills to be called to a vote because they violate the Constitution.”
Other critical pieces of legislation may come up for a vote in the short time that lawmakers are scheduled to be in session. Legislators may consider a bill that would create the state’s insurance exchange, an online marketplace that is meant to drive down the cost of insurance by encouraging competition. Such exchanges are a key component of the new federal health care reform law. Legislators may also consider a controversial bill that would bring the state in line with a federal plan regarding the punishment and tracking of sex offenders. For more on those topics, see Illinois Issues September 2011 and Illinois Issues blog. Pension reform working groups that include Madigan and House Minority Leader Tom Cross have been meeting throughout the summer and could potentially produce a bill. For more on the two sides of the pension debate, see this month's Illinois Issues. Cross backed a bill that would diminish benefits for employees hired before other changes to benefits went into effect in January, but it lacked the needed support in the House. “Most people I talk to would be really surprised if [Cross’ plan] moved in the House [during veto session.] Other than if the speaker really just got tired of doing all this and puts it out there so it won’t pass,” Redfield said.
He added: “There are a lot of very heavyweight things to be dealing with. And there’s the context of the budget. … They may not ultimately do anything, but they do have a lot on their plate.”
For more on veto session, see this month’s Illinois Issues.
Illinois lawmakers will likely have a busy veto session as they consider two industry changing plans opposed by Gov. Pat Quinn, components of a budget that Quinn says is forcing him to close several state facilities and other potentially hot button issues.
“The agenda is pretty full. It’s really kind of the fall legislative sessions these days rather than a veto session,” said Kent Redfield, an emeritus political science professor at the University of Illinois Springfield. Several committee hearings are scheduled for Monday, and the session will runs Tuesday through Thursday. It will resume November 8, with an adjournment date scheduled for November 10.
Gaming
Gov. Pat Quinn laid out what he would like to see changed in the gaming expansion package that lawmakers passed at the end of the spring legislative session. Senate President John Cullerton still has a procedural hold on Senate Bill 744, so Quinn has been unable to do anything but present his list of demands. Skokie Democratic Rep. Lou Lang and Waukegan Democratic Sen. Terry Link, the sponsors of the bill, have been pushing Quinn all summer for specifics on what he wants. When he finally gave them this week, the sponsors seemed less than thrilled. Lang and Link agree that if they drafted Quinn’s plan into a bill, they couldn’t scrape up the votes to pass it.
The governor wants to remove a provision that would allow slot machines at horse racing tracks. He does support the addition of five new casinos, including one owned by the city of Chicago. He also wants to add a measure to address legalization of video poker in some bars and restaurants across the state. When video poker was approved as part of the funding plan for the capital construction bill, Quinn supported allowing local governments to opt out of having it in their area. Now, he wants local officials to vote to opt it if they want video poker. So far, the Illinois Gaming Board has not issued any video poker licenses, and the plan has not generated any revenue for the state. Quinn also wants to take tax breaks out of the bill, which are a sweetener for existing casinos. His plan also calls for a ban on campaign contributions from those holding gaming licenses or managing a casino.
Supporters of the gaming expansion say they are working on a trailer bill with changes that they hope will appease Quinn and say they plan to roll it out in a committee hearing early next week. They say they cannot pass legislation that does not include slots at the racetracks. Quinn said he will not sign a bill that does, and he has also vowed to veto SB 744 if it is sent to him — making the plan to fix the situation with a trailer bill that would tack changes onto the original legislation a shaky prospect. “Somebody may figure out how to pull a rabbit out of a hat that makes Quinn, and [Chicago Mayor Rahm] Emanuel, and downstate [lawmakers] and the horse racing people happy,” said Redfield. “But it would be a neat trick.”
For more on video poker and the challenges it has faced getting off the ground, see Illinois Issues April 2010.
Smart grid
Sponsors of a Senate Bill 1652, which would allow the state’s two biggest utility companies to increase customers’ rates in exchange for investments in the state's electric grid have said they will try to drum up enough votes to override Quinn’s veto. Supporters say smart grid technology will create jobs, make service more reliable and help some customers save money by allowing them to monitor their usage.
Opposition to the bill includes AARP; the Citizens Utility Board, which is a consumer advocacy group started by Quinn; and Attorney General Lisa Madigan. Quinn has appealed to the public and even set up a website encouraging people to call their lawmakers and tell them to vote against the bill. Quinn and others say it was written by Ameren and Commonwealth Edison lobbyists as a way to lock in the utilities’ profits. “It seems to me that the governor has a right to set up a media campaign and hire lobbyists and do everything that he’s doing,” said Sen. Mike Jacobs, an East Moline Democrat and sponsor of SB1652. “But at the end of the day, this comes down to the question, do you want a smart grid or don’t you?”
Lawmakers backing the legislation say they are working on a trailer bill to tighten up customer service and reliability requirements in the hopes of getting some fence sitters’ votes to keep the plan alive. Expect heavy lobbying and public relations efforts on both sides of the issue.
For more on smart grid technology and its potential public policy implications, see Illinois Issues July/August 2011.
Budget
Hearings are under way throughout the state about the potential closure of seven state facilities. Quinn announced last month his plans to close the institutions and lay off more than 1,900 state employees. The governor said the budget lawmakers approved in the spring would not fully find state operations, so the facilities must be shuttered to shift money to the core services of the state. Quinn is calling on lawmakers to approve his budget vetoes, many of which, such as a cut to school transportation budget, are generally unpopular with legislators. Quinn is also reportedly working up a list of budget tweaks and cuts he would like to see restored.
Some school officials are looking to lawmakers to find a way for them to get paid. Quinn cut money for the salaries of regional superintendents. The majority of them stayed on the job and have not seen a paycheck since June. Quinn said that local governments should pay them and has a bill in the works to shift the cost. The Illinois Municipal League opposes dipping into local funds. Lawmakers could also vote to override the governor’s veto and restore the money to the state budget. Regional superintendents say they do not prefer one plan over they other; they just want to get paid.
Legislative scholarships
Quinn used his veto pen to try to end a program that has been a source of controversy and scandal for years, but it is unlikely that his changes will ever see the light of day.
Quinn took a bill that would have barred lawmakers from giving scholarships to family members and rewrote it to end the program altogether. He has the support of the bill’s sponsors and has been publicly calling on lawmakers to end the program. However, House Speaker Michael Madigan said Quinn overstepped his constitutional authority, and it is unlikely that the speaker will call the veto for a vote. If no vote is taken, Quinn’s changes and the underlying legislation would die.
Lang, a longtime member of House Democratic leadership, said Madigan has historically been opposed to allowing governors to use their veto pens to make broad changes in the legislation that lands on their desks. “Even if he likes the changes, he has not allowed those bills to be called to a vote because they violate the Constitution.”
Other critical pieces of legislation may come up for a vote in the short time that lawmakers are scheduled to be in session. Legislators may consider a bill that would create the state’s insurance exchange, an online marketplace that is meant to drive down the cost of insurance by encouraging competition. Such exchanges are a key component of the new federal health care reform law. Legislators may also consider a controversial bill that would bring the state in line with a federal plan regarding the punishment and tracking of sex offenders. For more on those topics, see Illinois Issues September 2011 and Illinois Issues blog. Pension reform working groups that include Madigan and House Minority Leader Tom Cross have been meeting throughout the summer and could potentially produce a bill. For more on the two sides of the pension debate, see this month's Illinois Issues. Cross backed a bill that would diminish benefits for employees hired before other changes to benefits went into effect in January, but it lacked the needed support in the House. “Most people I talk to would be really surprised if [Cross’ plan] moved in the House [during veto session.] Other than if the speaker really just got tired of doing all this and puts it out there so it won’t pass,” Redfield said.
He added: “There are a lot of very heavyweight things to be dealing with. And there’s the context of the budget. … They may not ultimately do anything, but they do have a lot on their plate.”
For more on veto session, see this month’s Illinois Issues.
Tuesday, October 11, 2011
Gaming revenues down as Quinn continues to mull expansion
By Jamey Dunn
A legislative commission report paints a bleak picture for Illinois gaming revenues, and Gov. Pat Quinn says he plans to have specifics by the end of the month on what he wants for a gambling expansion bill.
The Commission on Government Forecasting and Accountability released a report that says total gaming revenues for the state in 2011 reached their lowest level since 2001. The state's take of riverboat, horse racing and lottery revenues for last fiscal year was about $1 billion.
Revenue for riverboat gambling decreased by almost 6 percent from Fiscal Year 2010 and made up almost 34 percent of total gaming revenues. Four years ago, riverboats contributed about 52 percent of gaming revenues. The report said revenues from riverboats are at the lowest since FY 1999.
The report pointed to the economic downturn and increased competition from neighboring states as possible causes for the drop. However, the numbers continue to suggest that the biggest contributor to the drop in Illinois casino revenues is the indoor smoking ban. “Since the indoor smoking ban began in January 2008, adjusted gross receipts for Illinois riverboats have fallen a combined 30.7 percent from pre-smoking-ban levels,” the report stated.
COGFA’s report also warned against expecting consistent revenue increases under a gaming expansion plan that will be a topic of debate during the legislature's fall veto session. “Many estimate a significant amount of one-time revenues and recurring revenues would come from gaming expansion. However, factors such as a reduced tax rate and cannibalization will make it challenging for substantial amounts of new state revenues to be realized. Lowering the tax rates would likely increase the amount spent by gaming operators on the casino[s], which, history has shown, could lead to higher attendance. … But large increases in overall adjusted gross receipts will be necessary to offset the loss of revenues from the lower tax rates and from the expected loss of revenues from existing gaming facilities that would be cannibalized by the new casinos.” The report estimates that revenues from legalizing video poker in some bars and restaurants across the state would not start coming until "FY2013 at the earliest." The state has been dragging its feet getting the licensing process off the ground and had to rebid a contract for a necessary computer system because of mathematical errors made when totaling costs associated with bids.
Quinn again pointed to fears of saturating the gaming market as he talked to reporters in Chicago today about the gaming expansion passed by the legislature last spring. “I just think it’s top heavy, I’ve said that all along. You can’t over-saturate the gambling market in metro Chicago or anywhere else. If you have too many positions and casinos, they hurt each other, and they don’t really add to the revenue. And I don’t think the people really want our state to become the Las Vegas of the Midwest.” Quinn has voiced support for a provision of the bill that calls for the creation of a casino owned by the city of Chicago.
Meanwhile, lawmakers have said negotiating with Quinn over Senate Bill 744, which would allow for slot machines at horse racing tracks, as well as five new casinos, have been difficult because Quinn won’t say what he wants. Quinn countered today that legislators have not been specific about changes they are willing to make. “I haven’t seen anything specific or tangible from the legislature. All I know is what they did on May 31.” He said he would release specific changes he would like see “later this month.”
Senate President John Cullerton put a procedural hold on the bill in the hopes of negotiating with Quinn. The governor has pointed to that move as an indicator that the plan is flawed. “Obviously they know they have some defects there, because they haven’t sent it my way,” Quinn said. He added, “obviously they’re afraid of my review, and I think they should be.”
Skokie Democratic Rep. Lou Lang, a sponsor of SB 744, said he expects the fate of the expansion will be decided one way or another when lawmakers return later this month. “The plan would be to have some finality to this gaming issue during veto session.” Cullerton backed a plan to draft a so-called trailer bill that would make changes to the original legislation and then send both bills to the governor to be signed at the same time. “I’ve been pushing for a trailer bill. … It would be very tough to pass a new gaming bill or an amended gaming bill that makes substantial changes,” Lang told Illinois Issues.
But Quinn came out strong today against reworking the plan with a trailer bill. “They have a bill. If they don’t think the bill is good enough, they should go back to the drawing board and pass another bill that’s better,” Quinn said. “Do it right the first time. If it’s not right the first time, it’s got to go in the reject pile, and [lawmakers have] got to go back to the drawing board.” When asked if he would veto SB 744, if given the chance, Quinn said, “I think anybody with common sense, if they saw that [bill], would probably throw up their hands in shock and disbelief that we would have gambling expansion in Illinois without proper oversight.”
For more on video poker and the challenges the state faces in implementing it, see Illinois Issues April 2010.
For more on the upcoming veto session, see Illinois Issues October 2011.
A legislative commission report paints a bleak picture for Illinois gaming revenues, and Gov. Pat Quinn says he plans to have specifics by the end of the month on what he wants for a gambling expansion bill.
The Commission on Government Forecasting and Accountability released a report that says total gaming revenues for the state in 2011 reached their lowest level since 2001. The state's take of riverboat, horse racing and lottery revenues for last fiscal year was about $1 billion.
Revenue for riverboat gambling decreased by almost 6 percent from Fiscal Year 2010 and made up almost 34 percent of total gaming revenues. Four years ago, riverboats contributed about 52 percent of gaming revenues. The report said revenues from riverboats are at the lowest since FY 1999.
The report pointed to the economic downturn and increased competition from neighboring states as possible causes for the drop. However, the numbers continue to suggest that the biggest contributor to the drop in Illinois casino revenues is the indoor smoking ban. “Since the indoor smoking ban began in January 2008, adjusted gross receipts for Illinois riverboats have fallen a combined 30.7 percent from pre-smoking-ban levels,” the report stated.
COGFA’s report also warned against expecting consistent revenue increases under a gaming expansion plan that will be a topic of debate during the legislature's fall veto session. “Many estimate a significant amount of one-time revenues and recurring revenues would come from gaming expansion. However, factors such as a reduced tax rate and cannibalization will make it challenging for substantial amounts of new state revenues to be realized. Lowering the tax rates would likely increase the amount spent by gaming operators on the casino[s], which, history has shown, could lead to higher attendance. … But large increases in overall adjusted gross receipts will be necessary to offset the loss of revenues from the lower tax rates and from the expected loss of revenues from existing gaming facilities that would be cannibalized by the new casinos.” The report estimates that revenues from legalizing video poker in some bars and restaurants across the state would not start coming until "FY2013 at the earliest." The state has been dragging its feet getting the licensing process off the ground and had to rebid a contract for a necessary computer system because of mathematical errors made when totaling costs associated with bids.
Quinn again pointed to fears of saturating the gaming market as he talked to reporters in Chicago today about the gaming expansion passed by the legislature last spring. “I just think it’s top heavy, I’ve said that all along. You can’t over-saturate the gambling market in metro Chicago or anywhere else. If you have too many positions and casinos, they hurt each other, and they don’t really add to the revenue. And I don’t think the people really want our state to become the Las Vegas of the Midwest.” Quinn has voiced support for a provision of the bill that calls for the creation of a casino owned by the city of Chicago.
Meanwhile, lawmakers have said negotiating with Quinn over Senate Bill 744, which would allow for slot machines at horse racing tracks, as well as five new casinos, have been difficult because Quinn won’t say what he wants. Quinn countered today that legislators have not been specific about changes they are willing to make. “I haven’t seen anything specific or tangible from the legislature. All I know is what they did on May 31.” He said he would release specific changes he would like see “later this month.”
Senate President John Cullerton put a procedural hold on the bill in the hopes of negotiating with Quinn. The governor has pointed to that move as an indicator that the plan is flawed. “Obviously they know they have some defects there, because they haven’t sent it my way,” Quinn said. He added, “obviously they’re afraid of my review, and I think they should be.”
Skokie Democratic Rep. Lou Lang, a sponsor of SB 744, said he expects the fate of the expansion will be decided one way or another when lawmakers return later this month. “The plan would be to have some finality to this gaming issue during veto session.” Cullerton backed a plan to draft a so-called trailer bill that would make changes to the original legislation and then send both bills to the governor to be signed at the same time. “I’ve been pushing for a trailer bill. … It would be very tough to pass a new gaming bill or an amended gaming bill that makes substantial changes,” Lang told Illinois Issues.
But Quinn came out strong today against reworking the plan with a trailer bill. “They have a bill. If they don’t think the bill is good enough, they should go back to the drawing board and pass another bill that’s better,” Quinn said. “Do it right the first time. If it’s not right the first time, it’s got to go in the reject pile, and [lawmakers have] got to go back to the drawing board.” When asked if he would veto SB 744, if given the chance, Quinn said, “I think anybody with common sense, if they saw that [bill], would probably throw up their hands in shock and disbelief that we would have gambling expansion in Illinois without proper oversight.”
For more on video poker and the challenges the state faces in implementing it, see Illinois Issues April 2010.
For more on the upcoming veto session, see Illinois Issues October 2011.
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