Quinn blows off committee that plans to blow his deadline

By Jamey Dunn

Members of a committee working to hammer out a pension reform compromise say Gov. Pat Quinn’s public threats about the deadline he set for them tomorrow are “counterproductive” to their work.

After the legislative conference committee on pension was formed at the governor’s request last month, Quinn gave the members three weeks to produce a pension bill. Tomorrow, their time is up. Committee members say they have no plans to present legislation tomorrow. The governor has not said what he will do if lawmakers blow the deadline, only that there will be “consequences.” Quinn told reporters in Chicago today: “It’s time for the General Assembly to put a pension reform bill on my desk. They have had one excuse after another for the last two years. It’s time for them to do their job. If they don’t do their job by tomorrow, there will be consequences.”

Both chambers of the legislature will be in session tomorrow to take up Quinn’s amendatory veto of concealed carry legislation. Despite the governor pushing the issue at several public events over the last few days, sponsors say they are confident they can find the votes to override Quinn’s changes.

Conference committee chair Sen. Kwame Raoul said the group has agreed to use a proposal from professors at the University of Illinois Institute of Government and Public Affairs at the University of Illinois as a framework for their proposal. The plan would swap the current 3 percent compounded annual COLA, which is the largest cost driver in the pension systems, for a COLA that is tied to inflation. Under SB 2591, which a Senate committee took testimony on this week, the COLA would be one-half of the adjusted Consumer Price Index from the previous year. That means that in times such as recent years, when inflation has been low, retirees would receive small COLAs or sometimes no COLA at all. But in years when inflation is high, retirees would get larger COLAs. Employees would also have to contribute 2 percent more of their salaries to their retirement benefits. However, Raoul said that the ideas the committee is considering are not identical to that plan.

Members of the committee say they are making progress, but they need estimates of cost savings, which are provided by actuaries working for the pension systems. “We have been working methodically to try to break from the process that has led to stalemate,” said Raoul, a Chicago Democrat. “What we dream of — of having bipartisanship and working in bicameral manner — we’re experiencing that on this conference committee, and that’s worthwhile in itself. But we have to solve the problem.” Without those numbers, they say they cannot have a clear picture of what the cost savings from a proposal might be. The group has agreed on several potential components of a plan, which they have sent to the systems for number crunching. Once they get the estimates back, they plan to choose from the list as a menu of options that can be pieced together. “You don’t want to do these things without having it actuarially scored. It would be irresponsible,” he said. “It would be irresponsible for us to just propose something by July 9th.” Raoul said the estimates are expected to be completed next week. He said the group might need to get another round of projections once they have a final plan together.

While Quinn talked tough in Chicago today, he declined an invitation from the committee to testify in Springfield. After a bill-signing event in Chicago, Quinn traveled to Springfield and was working in his office during the hearing. He sent instead Jerry Stermer, the director of his budget office. Stermer has been working with the committee as Quinn’s point man on pension changes. While members grilled Stermer about the deadline today, they said that they would have rather put the screws to Quinn. “What is more important for him today? ... He made a choice to send you instead of coming himself,” Raoul said. Raoul’s letter to Quinn gave him the option of sending someone to represent him. “I hate that you’re the person that has to be here instead of the governor himself.” Many of the members of the committee echoed Raoul’s statements, saying Stermer had worked well with the group so far.

Stermer would not get specific about what sort of plan the governor would like the see come out of the committee process. “The governor’s proposal has been and continues to be: We need a comprehensive solution that stabilizes these systems and enables the systems to actually pay the pensions of the people who have earned them, will erase the unfunded ability, get to 100 percent funding and end the squeeze on the major obligations of state government,” he said. He parroted these components as a response to questions from the committee so many times that his repetition eventually drew laughter from the public audience.

Sen. Matt Murphy, a Palatine Republican, noted that many members of the two chambers had very different ideas about what constituted comprehensive changes to the pension systems, and these differences lead to gridlock. Both the House and Senate approved their own pension plans during the spring session, but each failed to pass the plan that came over from the other chamber. Murphy said that if the governor does not get specific on components or at least the amount of savings he thinks are needed, “how do we know whether the plan solves the problem [in his eyes]?” Raoul agreed. “It is important to get a sense from the gentleman who is going to sign the final bill as to what he perceives as fixing the problem.”

Stermer would also not give specifics about what consequences lawmakers face after they miss tomorrow’s deadline. He only said that one of the consequences would be that they would have to explain it to their constituents. Quinn has yet to sign one budget bill, House Bill 214, which is the spending authority for several state programs and agencies. It also contains the funds for state  lawmakers' pay. There has been speculation that he will veto the funds for legislator’s paychecks. This would force them to either present a pension bill or override his veto. An override would make great campaign fodder for any potential opponents wanting to claim that lawmakers put their own interests ahead of taxpayers by returning to Springfield to approve their own pay without a pension agreement. A spokeswoman for the governor declined to comment on the rumors, saying only that the bill is “under review.”

Committee members argued that instead of pushing their work ahead, Quinn’s deadline and bluster could put a strain on the negotiations. “We all have that goal, and I think it would behoove all of us to behave in a fashion that would move us toward that goal,” said Rep. Elaine Nekritz, a Northbrook Democrat. Raoul said that Quinn’s prodding is not making the committee rush, but that members do understand that the situation is urgent. “The conference committee is working. We’re not going to finish our work by tomorrow. Whatever, the governor’s consequences [are], that’s fine. We’re going to continue to working whether or not there is a consequence tomorrow.”

But those working for Quinn point out that as lawmakers have failed to get the job done, the unfunded liability has grown to nearly $100 billion, and Illinois has paid the price through higher borrowing costs after being slapped with several credit downgrades. They say the governor is tired of hearing excuses from lawmakers about why pension reform cannot be passed. “He made it very clear to the members that they had three weeks to forge a compromise. It’s their responsibility to do so,” said Quinn spokeswoman Brooke Anderson. “What exactly is there to give taxpayers any assurance that lawmakers will enact comprehensive pensions reform and finally resolve this problem?”

Raoul said the group is getting two different messages from Quinn: the sound bites for the media and their own interactions with Stermer. Quinn’s office made some suggestions that actuaries are also working on. The estimates on Quinn’s proposals will not be complete until July 12. “The reason that I invited the governor was because there was a bit of an inconsistency as to what was being said from his office publicly and the work that Mr. Stermer, the representative of his office, was doing privately. So you want to know which is which. Am I wasting my time with Mr. Stermer and having these discussions? Should I be listening to ... Brooke Anderson? Who’s telling the truth here? The only person who could resolve that — you know, the buck stops at the governor.”

Gaming board airs compliants over gambling expansion

By Jamey Dunn 

Members of the Illinois Gaming Board faced a chilly reception when they appeared before a state Senate committee today to present their concerns about a gambling expansion bill currently being considered.

“Thank you for being here today. It’s about time. We’ve waited for a long time for this meeting to take place. I’ve heard myself being criticized on TV, radio, everywhere else by you, judge, but it’s the first time we’ve had a meeting. So I appreciate you showing up,” Sen. Terry Link said to Aaron Jaffe, a former judge and now chairman of the gaming board. Jaffe has publicly bashed gambling proposals backed by Link in recent years. Link is the sponsor of Senate Bill 1739, which would allow five new casinos statewide, including one owned by the city of Chicago. The bill would also allow slot machines at horse racing tracks and online gambling that would be administered by the Illinois Lottery.

Jaffe focused most of his complaints about SB 1739 on the plans for the Chicago casino. The measure creates the Chicago Casino Development Authority, which would own the casino. The authority would then contract with an operator that would run the casino. Jaffe said that he is concerned that the legislation is not clear on what entity would have regulatory power. He said the gaming board, which polices all the other casinos in the state, would have the ability to provide oversight in the same way for the proposed Chicago facility. Under the bill, the city’s license could not be suspended or revoked. The operator’s license, however, would be subject to the same scrutiny as the state’s 10 other casino licenses. But Jaffe said that he was worried that the Illinois Gaming Board and the Chicago Casino Development Authority would eventually end up in in a legal battle if there is disagreement about oversight. “I don’t want to be in the position of having to go through court battles with the Chicago authority because there’s conflict in our rules.”

Senate President John Cullerton said during the hearing that supporters of the expansion intend for the bill “to create a situation where [you] have the same authority that you have over every other casino in the state over Chicago.”

Jaffe said that he does not oppose Chicago getting a casino. But he said there could be unintended consequences associated with a city-owned casino, something he says does not exist elsewhere in the United States. “There can be conflicts that pop up that we will never dream about now,” he said. In addition to his complaints about the Chicago casino, Jaffe said the bill is too large and poorly written. “It contains so much junk in it from top to bottom,” he said. “It’s a Christmas tree bill. It’s something for everyone.” He said the board is not prepared to take on the task of vetting such a large expansion. “If you want that bill, properly enacted and properly regulated, we probably would need 300 more bodies,” he said. Gaming board officials said the board is understaffed by about 100 people and would need those positions filled, plus 300 more employees to administer to proposal.

Supporters argue that the measure will bring economic development to depressed areas, add more than $1 billion in revenue to the state’s struggling budget and help to prop up the state’s struggling horse racing industry. Link said that Jaffe and the board should have been working with him on the bill instead of complaining about it publicly. “If you had a problem with this bill you or your staff should have been in my office...and asking me ‘what can I do to improve the bill.’ And I would have listened to you.”

 Jaffe said he would be willing to sit down with lawmakers to talk about the bill. But judging from the exchanges at today’s hearing, that could be a contentious meeting. Jaffe and committee members from both sides of the aisle traded barbs, and at few points things became heated between Jaffe and Link. “I don’t want to be insulting today, but I just think what you’re saying is preposterous,” Jaffe said.

Link responded, “Well, I think what you’re saying is beyond that.”

Part of the tension may stem from a provision in Link’s bill that would remove all the members of the gambling board. Gov. Pat Quinn would be free to reappoint them if they fit the bill’s requirements for board members. But Link said tonight that he does not plan to pass a bill with that component, and he plans to remove it from the bill when it is up for another committee hearing next week. Quinn today reiterated his support for the current board. “I have a lot of respect for the gaming board. I’ve put people on there that are upstanding and will get the job done for the public. Anything that lessens their independence, I think is very dangerous.”

He also rehashed his longstanding worries about the oversight of a Chicago casino, which he says he supports. “I think we have to be exceptionally careful in places like Chicago, where we must have over all the time so that we don’t have wrong people in gambling doing bad things.” But Quinn said he is “not excited” about allowing online gambling, which SB 1739 would also do. “This whole subject of Internet gaming, we’ve got to be careful here. This has to be analyzed very carefully. We just can’t pass things willy-nilly. It doesn’t have the proper review. It just was thrown in there at the last minute, and I don’t think that’s healthy. I think when it comes to gambling, you always have to be careful. I think everybody in Illinois knows that.”

While Congress eyes immigration policy, Illinois has set its own agenda

By Jamey Dunn 

As President Barack Obama and members of Congress begin a push toward federal immigration reform, Illinois has begun taking steps to address the practical matters associated with the state’s large population of undocumented immigrants.

As expected, Gov. Pat Quinn signed a bill into law yesterday that will allow immigrants who are living in the country illegally access to temporary driver’s licenses. Those applying for the licenses must provide proof that they have lived in the state for one year. Proponents say this requirement will prevent immigrants in other states from coming to Illinois to get licenses. The licenses available to undocumented immigrants will be temporary and have a different appearance than the state’s standard driver’s licenses. They will not be valid as a form of identification for other purposes, such as boarding a plane or buying a firearm.

Proponents frame the new law as a public safety initiative. “This law will make the roads of Illinois safer for all of us. It requires that you pass a vision test, the written test and the road test,” Secretary of State Jesse White said at a Chicago event yesterday. White said his office would make efforts in the coming months to educate the public about how to obtain the licenses. He said that he plans to start issuing the licenses in October. “I look forward to issuing the first driver’s license on October 1 of this year.”

When the measure was up for debate in the legislature, opponents argued that the requirements for the licenses were licenses were too slack, opening up the potential for fraud. Many said that applicants should have to be fingerprinted in order to get a license. They also argued that it is not up to states to address immigration policy. “We are ... engaging in activities the U.S. government should be taking [on] themselves,” Rep. Dwight Kay, a Republican from Glen Carbon, said when the bill was debated on the House floor. Rep. Dennis Reboletti, an Elmhurst Republican, said the state should not “provide privileges for people who are not citizens here.”

A push for immigration reform is kicking off this week at the national level. A bipartisan group of senators plans to unveil a proposal today. Obama is scheduled to give a speech on the topic tomorrow in Las Vegas. The Senate plan reportedly will include increased efforts to secure the border and a path to citizenship for illegal immigrants already in the country. Illinois Democratic Sen. Dick Durbin and Arizona Republican Sen. John McCain are both part of the group that came up with the proposal, and both took to the Sunday morning political talk shows yesterday to discuss it. “We are committed to a comprehensive approach to immigration that we can live with,” Durbin told Fox News Sunday. McCain was blunt about the political incentives for Republicans. “Look at the last election,” McCain said Sunday morning on ABC’s This Week With George Stephanopoulos. “We are losing dramatically the Hispanic vote, which we think should be ours.”

McCain also said, “We can’t go on forever with 11 million people living in this country in the shadows in an illegal status.”

 Quinn pointed to the bill he signed yesterday and the Illinois Dream Act, a bill he signed in 2011 that allows undocumented students access to privately funded scholarships, as steps that could become models for national policy. “Comprehensive immigration reform, here we come in the United States of America,” he said. Chicago Democratic Rep. Edward Acevedo, who sponsored both pieces of legislation, said that access to driver’s licenses is a step, but more needs to be done to address immigration. “This achievement — while wonderful — it is just another mile marker in the journey to securing the American dream for all people,” Acevedo said. “This bill is not just about driver’s licenses, it’s about equality for all.”

Some Republicans crossed the aisle to support both the Illinois Dream Act and the new law that will allow access to driver’s licenses. Republican Senate Leader Christine Radogno said that the lawmakers on the federal level could look to the negotiations on the driver’s license bill as an example of how to achieve broad support on immigration legislation. “We had the opponents and the proponents all come together. Everybody gave a little bit,” she said. “I hope that we can take this model on this bill in this state and apply it nationally to get something done that so desperately need to be done.”

Quinn to sign bill allowing undocumented immigrants access to driver's licenses

By Meredith Colias

Gov. Pat Quinn has indicated he will sign a bill into law allowing undocumented immigrants to obtain temporary driver's licenses.

The bill's House sponsor, Rep. Edward Acevedo, a Democrat from Chicago, framed the measure as a matter of public safety. “It’s a commonsense bill that seeks to improve the safety of our roads and ensure that all motorists can be trained, tested, licensed and insured,” he said.

Senate Bill 957, which passed the House today, 65-46, and the Senate in December, would allow an estimated 250,000 undocumented immigrants without Social Security numbers living in Illinois to obtain temporary driver’s licenses valid for three years. Applicants would be required to take vision and driving tests and carry valid car insurance. Drivers caught without insurance would have their licenses revoked. To obtain a temporary license, an applicant would need to show a passport or consular identification documents and provide proof that they have lived in the state for at least one year. Opponents said the measure does not contain enough safeguards against fraud because it would not require applicants to be fingerprinted or provide a tax identification number to obtain the license and would reward those already breaking immigration laws. Acevedo acknowledged the fingerprinting concerns and said he would be willing to work with opponents on future legislation.

Rep. Dennis Reboletti, an Elmhurst Republican, was concerned that undocumented immigrants from outside the state would find a way to falsify documents and skirt the residency requirement. That is something he said has happened in New Mexico, a state that currently offers licenses to immigrants who are in the country illegally. “We have no idea how long they’ve lived here,” he said of potential applicants in Illinois.

Supporters said that they think the residency requirement is stringent enough to keep residents of other states from getting Illinois licenses. However, Nathan Maddox, senior legal advisor for Secretary of State Jesse White, acknowledged the office would not be able to determine at the time of application if an undocumented driver had previously committed an offense, like a DUI, out of state. Applicants who have already been suspended from driving in Illinois would have to start serving their suspension once they obtained a license regardless of when they committed the violation.

 Others argued that the state should not address immigration, which is a federal issue. “We are ... engaging in activities the U.S. government should be taking [on] themselves,” said Rep. Dwight Kay, a Republican from Glen Carbon. Rep. Dennis Reboletti, an Elmhurst Republican, said the state should not “provide privileges for people who are not citizens here.”

 While the bill had several Republican detractors, it did receive bipartisan support. House Minority Leader Tom Cross said he believed technical issues cited were not sufficient to oppose the bill. “We have a number of folks in this state ... that are here illegally, and we need to address it,” he said. Rep. Dan Brady, a Bloomington Republican, said he thought the bill was imperfect but voted in favor of the measure. “What I focus on is public safety. … The reality is it’s a start,” he said.

"People come to this country for the American dream. We can offer them that today,” Acevedo said on the House floor. The bill will take effect 10 months after receiving Quinn’s signature. “Illinois roads will be safer if we ensure every driver learns the rules of the road and is trained to drive safely,” he said in a prepared statement.

Thousands in Illinois likely eligible for deferred deportation program

By Jamey Dunn 

A new policy from President Barack Obama’s administration opens the door for thousand of undocumented young residents of the state to temporarily avoid the fear of deportation.

Since August 16, undocumented youths can apply for a program called Deferred Action for Childhood Arrivals, which offers two-year renewable reprieves from deportation. To qualify, applicants must be able to prove that they are 30 or younger, that they came to the country before they turned 16 and that they are students, graduates or have served in the military. Those applying must have must have clean criminal records.

Applicants may also be eligible for work permits. Fred Tsao, policy director for the Illinois Coalition for Immigrant and Refugee Rights (ICIRR), said an August 16 Chicago event to assist potential applicants, which the group helped organize,  had an estimated attendance of 13,000 people. He said that the crowd was so big that organizers had to turn some people away. Tsao said that about 7,500 people received advice, and 1,500 received assistance with processing their applications. Less than a week after the policy went into effect, Tsao says “The response has been powerful.”

ICIRR estimates that about 75,000 people in the state may be eligible for a deferment. “They may also be granted a work permit,” he said. “If you are granted a work permit, you can get a social security number, which means, of course, you can work legally.” In Illinois, it also means you can get a driver's license.

The Pew Hispanic Center estimates that up to 1.7 million of the approximately 4.4 million undocumented immigrants in the country who are 30 or younger could potentially qualify for the program. The application charge for the program is $465, which is the cost to apply for a work permit. Tsao cautions that, while many who receive the deferment may get a work permit, some will not. “It’s not automatic.” Work permits will be temporary and renewable.

Obama put the policy in place through his executive powers after years of fruitless efforts at passing the DREAM Act, which would have offered many young immigrants a path to citizenship. “Now, let's be clear — this is not amnesty, this is not immunity. This is not a path to citizenship. It's not a permanent fix. This is a temporary stopgap measure that lets us focus our resources wisely while giving a degree of relief and hope to talented, driven, patriotic young people. It is the right thing to do,” Obama said when he announced the program.

 “The initiative is an opening for undocumented immigrants to — on a trial basis — be here, study and work all under lawful auspices. It is an opportunity, as well, to challenge the perception of undocumented [immigrants] particularly of undocumented youth, who in nearly all cases are people who are eager to be Americans, in fact as well as in spirit,” Tsao said.

Critics call the policy a cynical attempt at pandering from a president in a close re-election race. “Congress has never said the president has he power to do what he’s doing, but states are apparently expected to cough up billions and billions of taxpayer dollars to provide one benefit after another to a group of people that are here illegally,” said Dan Stein, president of the Federation for American Immigration Reform. Nebraska Gov. Dave Heineman and Arizona Gov. Jan Brewer have announced that residents receiving deferrals in their states would not be eligible for any state benefits, such as driver's licenses.

Stein called the program “unconstitutional” and a “gross abuse” of the president’s power. “The big problem with this status is that it appears to be dependent on the president getting re-elected,” he said.

“It is a definite concern that the policy may change as a result of the election,” said Tsao. But he said that the program is a result of the grassroots advocacy lead by young people, who have been holding demonstrations, lobbying their elected officials and taking the risk of “coming out” as undocumented. “This intuitive was won largely as a result of young people coming forward, putting themselves at risk. ...It’s going to take just as much courage to keep this initiative won, regardless of who is president.”

Tsao recommends that those considering applying for the program seek out an immigration lawyer or advocacy group. “We are recommending that these young people consult with attorneys or authorized not-for-profit organizations that practice immigration law, if only because some of them may actually qualify for more permanent benefits. They may just not realize it,” he said.

 For more information on the program, see the ICIRR’s dedicated website, DreamRelief.org and the Chicago-based Heartland Alliance National Immigrant Justice Center’s website, dreamerjustice.org.

Illinois to get $1 billion in foreclosure settlement

By Jamey Dunn

Under a national settlement reached by states and five of the nation’s largest banks, Illinois would get $1 billion in relief for borrowers whose homes are in danger of foreclosure.

The $26 billion settlement announced today came in response to the nation’s largest lenders engaging in sloppy and sometimes fraudulent foreclosure practices, such as signing off on documents without verifying information, a practice known as robo-signing. Sketchy and sometimes nonexistent paperwork led to errors, miscommunication and cases of mistaken identity. It created a bureaucratic nightmare for those trying to work with banks to find a way to stay in their homes. (For more on robo-signing and the issues that led up to today’s settlement, see Illinois Issues March 2011.)

“Many companies that handled these foreclosures didn’t give people a fighting chance to hold onto their homes,” President Barack Obama said at a Washington, D.C., news conference today. “In many cases, they didn’t even verify that these foreclosures were actually legit. Some of the people they hired to process foreclosures used fake signatures on fake documents to speed up the foreclosure process. Some of them didn’t read what they were signing at all.”

The settlement was reached between federal regulators, many of the states' attorneys general and Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly GMAC. Illinois Attorney General Lisa Madigan was a key player in the negotiations. “After many months of investigation and negotiation, I’ve concluded that this settlement accomplishes two major goals: It provides timely help for struggling homeowners, and it establishes new rules for mortgage servicing that will protect homeowners in the future,” Madigan said in a prepared statement.

Most of the money will go toward efforts to keep borrowers in their homes. Those who cannot make their payments may be eligible to refinance their homes at better interest rates than their original loans. Homeowners whose houses are “under water,” which means a home is worth less than what the homeowner owes on it, could be eligible to have the amount they owe reduced. Borrowers who lost their homes between 2008 and last year could be eligible for up to $2,000 if they were victims of shoddy foreclosure practices. According to the Chicago-based Woodstock Institute, 400,000 homes are under water in the Chicago area alone, and about 800,000 are in danger of becoming under water if the housing market takes another downward turn. The average Chicago-area homeowner in an under-water house owes about $61,000 more than the home is worth. Banks have three years to dole out benefits from the settlement and face further penalties if they do not.

The deal also sets out new rules for banks and mortgage servicers. They will be required to consider making a deal known as a loan modification with borrowers in danger of losing their homes instead of dismissing such requests outright. Borrowers will be able to appeal if a bank refuses to work with them. While a bank is considering a modification, it cannot foreclose on a home. Previously, homeowners faced such conflicting signals as having a bank agree to a modification, only to turn around and foreclose shortly after. “It’s been a very real concern for borrowers and for housing volunteers, and there’s been a lot of frustration with this [practice],” said Tom Feltner, vice president of the Woodstock Institute. Feltner said that while the settlement will not make all of those touched by the banks negligent practices whole, it is a positive step toward changing the system. Previous efforts, including a federal program to get banks to modify loans, have come up short, but Feltner said the settlement would require banks to “build loan modifications into their business practices.”

Dawn Dannenbring, an organizer for the Bloomington-based community advocacy group Illinois People’s Action, said that although the settlement comes with what seems like a large price tag, it does not make a dent in all the damage caused by the banks. “The $25 billion is just a drop in the bucket.” Some important details of the plan remain unclear, she said. “Who decides who gets the money?”  Dannenbring said her group opposes allowing the banks to make such choices. “The banks have already had the opportunity to do right,” she said. One bright spot of the settlement, she said, is that it does not grant banks immunity from investigation and litigation going forward, something that was discussed during negotiations. “We think that is the best part of this settlement deal.”

Obama has created a special task force to investigate the issues surrounding the housing crisis. “We’re going to keep at it until we hold those who broke the law fully accountable,” he said. He emphasized that today’s settlement does not close the book on the housing market collapse. “No compensation, no amount of money, no measure of justice is enough to make it right for a family who has had their piece of the American dream wrongly taken from them. And no action, no matter how meaningful, is going to by itself entirely heal the housing market, but this settlement is a start.”

Madigan echoed his statement. “While the settlement is a big step forward in our efforts, it is not the end. In Illinois, we will continue to take strong legal action against lenders, banks, servicers and others who contributed to the housing and economic collapse,” she said.

Feltner said that Illinoisans who think they might qualify for help through the settlement should talk to a counselor who is certified by the U.S. Department of Housing and Urban Development. “The best advice is free advice. You don’t need to go to an agency offering to help with your foreclosure issues for a fee.” Madigan urged those who have questions or are interested in seeking relief from the settlement to call a toll-free hotline: (866) 544-7151; visit her website,  www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html, or the federal site,  www.nationalforeclosuresettlement.com.

Quinn proposes new spending in upbeat State of the State address

By Jamey Dunn

 Gov. Pat Quinn focused on the positive as he gave his State of the State address today.

He highlighted recently passed legislation such as education reform and the Illinois Dream Act.

He touched on some of his favorite stories of Illinois success, such as job growth at a Chicago Ford plant and the state’s large volume of agriculture exports.

“We have invested in our state, making it a better place to do business. And we have invested in the people of Illinois, helping our working families and improving education. The results are in from major export growth and the largest public works construction program in state history to solid gains in education. We’re back on course. Illinois is moving forward,” Quinn said in his speech.

“I felt like I was listening to the story of the Emperor’s New Clothes, and he was walking down the street saying, ‘Boy, my clothes are beautiful,’”  said Senate Minority Leader Christine Radogno.  “And the rest of the state — the citizens — are saying, ‘He’s naked!’ It’s like he totally doesn’t get it that the focus here needs to be on the problem we all agree is out there.”

But Senate President John Cullerton said Tuesday that the state has made progress in the last few years, and Quinn should celebrate it in his speech.  “I commend the governor for highlighting the many accomplishments that we have made over the last few years,” Cullerton said in a written statement released today.

“I think he did the right thing by stating the real positives that we have here in Illinois, and we have many positives,” said Comptroller Judy Baar Topinka.  “But we also have a big tab right now that we have to pay.”

Quinn pitched several initiatives, but the response from lawmakers and other Illinois officials was “show me the money” that will pay for new programs.

“I’m sure they’re all excellent proposals. … It all boils down to revenue, money, balanced budget. Where is that going to come from?” said Sen. John Sullivan, a Rushville Democrat. “We want to work with the governor. If he has some ideas on how we can come up with that revenue, we’re willing to take a look at it, but you know it’s just going to be extremely difficult in this situation.”

Palatine Republican Sen. Matt Murphy said: “He spent a significant amount of time in his speech talking about new spending. It’s just detached from reality.”

Quinn proposed a series of tax cuts that he said would help to spur economic growth and create new jobs. He said he wants to make "major investments" in classroom resources, such as new technology, early education and the Monetary Assistance Program. Both preschool funding and MAP grants have been cut in recent years. He said he wants to make investments in the state’s water systems, such as new water mains and sewage treatment plants. Quinn solidified the goals of doubling Illinois exports by 2014 and having 60 percent of residents holding a certificate of post high school education by 2025.

Quinn’s budget office estimates that the tax cut plan would cost about $300 million. The budget office did not supply cost estimates for other parts of Quinn’s plan. “Today, our focus is on the vision for our state. …The governor looks forward to working with legislators on these investments, as well as investments in college scholarships, early childhood education, affordable housing, clean water for communities, and 21st century schools that will continue moving Illinois forward,” Kelly Kraft, Quinn’s budget spokesperson, said in a written statement.

Republicans gave a figure of $500 million as a ballpark cost of all the proposals Quinn made. They complained that Quinn did not address the state’s growing backlog of unpaid bills, which a recent report says would reach $35 billion in five years if no action were taken. “He didn’t refer to the backlog at all, really. It’s there. I see it everyday,” Topinka said. “You certainly don’t solve this problem by creating new programs, even though they do generate a lot of feel-goods. … If I had a calculator in my hand, it would have blown up. There’s no way to pay for all these things.”

Quinn has proposed borrowing to pay down the backlog, and Cullerton said Tuesday that he would support a bipartisan borrowing plan. But Murphy said, “The borrowing is dead on arrival.”

Warren Ribley, director of the Department of Economic Opportunity said Quinn’s proposals would help spur job growth. “I think the goal of having 60 percent of our population with an accredited degree by 2025 will certainly provide a strong foundation for growing jobs and moving the economy forward. … We have to continue to invest in infrastructure. I work with business every single day, and the two things that they tell me that we need are strong investments in your infrastructure and strong investments in your education. So it’s very consistent with what I hear.”

Rilbey said that today’s speech was an “opportunity to lay out a vision,” and Quinn would address how he proposes to pay for his proposals when he presents his budget later this month. Cullerton said he was willing to wait for the budget address to get the details on spending. “As he advances new initiatives to create jobs and improve the economy, I look forward to hearing how we can fund these important priorities within a balanced budget,” Cullerton said in a prepared statement.

However, Republicans were less patient. “He’s had three years,” House Minority Leader Tom Cross said. “And these issues just get worse and worse and worse.”

Lawmakers on both sides of the aisle said they were pleased that Quinn called for Medicaid and pension reform this year. “Fixing the pension problem will not be easy, but we have no choice,” Quinn said. “I was encouraged to hear him about pension reform and Medicaid reform. I hope he will show the courage he talked about in tackling those issues in the coming weeks,” Murphy said. “They are the two 800-pound gorillas that are sitting in two different corners of the room that we have to address,” said Sullivan. “It’s not going to be an easy task. Is the will here to do it? I don’t know.”

Quinn to get bills giving tax breaks to companies

By Jamey Dunn

Two companies threatening to leave the state will likely stick around if Gov. Pat Quinn signs tax breaks the Illinois Senate approved today, but some lawmakers say it isn’t worth the price tag.

The Senate passed two bills today that contain a plan similar to one piece of legislation that the chamber approved two weeks ago. That bill only received eight “yes” votes in the House. “The bill was separated into two pieces to allow folks who feel pretty strongly on one or the other bill to vote their consciences,” said Sen. Toi Hutchinson, sponsor of the package.

Senate Bill 400 offers tax breaks for individuals in the form of increasing the Earned Income Tax Credit from 5 percent of the federal credit to 10 percent over two years and linking the standard exemption to federal cost of living increases. SB 397 has tax breaks for Sears and the CME Group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade. Sears and the CME group both threatened to leave the state in recent months. A previously approved tax credit for Sears was set to expire. The CME Group argued that it was being taxed unfairly because its income tax bill, which is based on profits made from sales, counted all sales as taking place in Illinois, but the company makes many of its sales online to customers outside of the state. Under the plan that passed today, 27.54 percent of the company's electronic sales would be used to calculate its Illinois tax bill. The package also includes tax changes meant to help businesses throughout the state, such as an extension of a research and development credit and reinstatement of a net operating loss credit. The plan is projected to cost about $300 million next fiscal year and $350 million by fiscal year 2014.

“We are in the position right now where — yes, it’s unfortunate — there are businesses that are coming and holding us over the barrel, and I understand that that leaves a bad taste in a lot of legislators' mouths,” Hutchinson said during floor debate. But Hutchinson, an Olympia Fields Democrat, said the state cannot afford to lose the jobs those companies provide. “Every one of those people who are working live here. They pay sales taxes. They pay income taxes. … We are in a serious situation right now. We did the best we could with the negotiations we had. This is a bill that you can go home and defend.”

Opponents said that the state cannot afford the plan. Many argued that giving tax breaks to companies that threaten to leave favors big business with the means to lobby the legislature and opens the door for a rush of companies threatening to leave unless the state gives them something as well. “These special deals are bad public policy,” said Sen. Kyle McCarter, a Lebanon Republican. “This is a great bill for lobbyists, in fact maybe we can rename this bill the lobbyist dream act. Because every business in this state will and probably should line up to get their money back, and they are going to need a lobbyist.

Gov. Pat Quinn, who supports the plan, said that competing with other sates and offering tax incentives to encourage businesses to remain in the Illinois is part of the current economic climate. “Every state in the union has on the books tax incentive measures that have been passed by their legislatures to try and get jobs from other states, other businesses from other states. We just have to understand that that’s what the reality is.”

Sears has indicated that if Quinn signs the plan, it will stop shopping around for a potential move. James Parasi, chief financial officer for CME, told a House committee Monday that the passage of the plan into law would keep the CME Group in the state for years to come.

Quinn signs Illinois DREAM Act

By Jamey Dunn

Gov. Pat Quinn signed a bill today known as the Illinois DREAM Act, which will provide undocumented students opportunities for financial support for their college education.

“We want to leave no talent behind. We want to make sure that everyone who has the ability to do college work gets that opportunity,” Gov. Pat Quinn said at today’s bill signing in Chicago. “I think that we’re showing the whole country that our state, Illinois, the most diverse state in the whole union — we’re the best reflection of the population of America. Of the entire country’s population, we reflect it best right here in the middle of the country in the state of Illinois.”

The Illinois Dream Act will allow undocumented students to invest money into the state’s prepaid tuition program. It also calls for the creation of a privately supported tuition fund, called the DREAM fund, administered by a board of volunteers. “Until this moment, a large segment of our society has been cut off from the opportunity for accurate information on attending colleges. They have been denied the opportunity to take part in programs that help save for higher education, and denied the opportunity to apply for scholarships to [further] their education. These denials were all permitted because these students are undocumented,” said Rep. Edward Acevedo, a Chicago Democrat.

Backers say the new law was created and supported through the legislative process by grassroots efforts. Undocumented high school seniors provided input on what should be included in the bill. On such student, Arianna Salgado, said “We used our voices to express what we believed in and make sure that we were heard.” Salgado said that she struggled to find information about continuing her education when she was in her junior and senior years of high school. She said a guidance counselor told her she would never be able to attend college because she did not qualify for financial aid. She said the law “sends the message that education is valid and that every single student should be able to strive regardless of their immigration status.”

Senate President John Cullerton, a sponsor of the bill, said it could have done more to help young immigrants, who were often brought to this country without a say in the matter. “It’s not everything that we wanted, but it’s a very very good start. And this bill is going to really mean a difference for young people, who could be the valedictorian of a high school and not have the same rights as other kids when they try to go to college.”

The Illinois DREAM Act passed with bipartisan support in both chambers of the General Assembly. However, Republican supporters in the Senate met some backlash for their “yes” votes from a suburban Tea Party organization. “The Illinois Republican Senators who voted 'Yes' to DREAM Act SB 2185 are part of the problem in Illinois. Instead of focusing on issues like jobs, taxes and our economy, they are more interested in getting votes. It is clear our current elected officials are much more concerned with their reelection than what matters for the citizens of Illinois,” said a news release sent out by the Palatine Tea Party after the vote. The group accused them of “spend[ing] like drunken sailors.” However, Acevedo reiterated at today’s event that the measure will create “no cost to the taxpayers.”

When asked if applying for DREAM scholarships could make undocumented students vulnerable to deportation, Quinn said he did not think so. “Individual people can make up their own minds on this, but I think that having this scholarship fund is going to make a difference for years to come in Illinois." He voiced support for the federal DREAM Act, which would provide a path to citizenship for undocumented college students as well as young people who choose to serve in the U.S. military. The DREAM Act—sponsored by U.S. Sen. Dick Durbin, an Illinois Democrat — failed in the Senate last December. “I think we need to keep pushing hard for everyone to be included in our democracy,” Quinn said.

Acevedo called education a “civil right” that should be extended to all who are seeking to improve themselves. “If you live here, if you came here for a better life, if you dedicate yourself to the American dream, you are American.”

Legislative roundup

By Lauren N. Johnson

While workers’ compensation reform, “smart grid” legislation and the state budget made headlines, lawmakers took end-of-session action on several other measures that would impact drivers, immigrants and the health and well being of residents, including student athletes

Executive appointments
House Bill 2972, which passed in both legislative chambers, would automatically put appointees out of a job once they serve 60 days beyond their expired terms

The bill is a compromised version of Senate Bill 1, sponsored by all four legislative caucus leaders: Senate President John Cullerton, a Chicago Democrat; Senate Minority Leader Christine Radogno, of Lamont;  House Speaker Michael Madigan, a Chicago Democrat; and House Minority Leader Tom Cross of Oswego. Quinn took his veto pen to SB 1 to move back the effective date, so he would have more time to make decisions on holdover employees. HB 2972 gives the governor more time by allowing holdovers to stay in their jobs for 60 days. Under SB 1, paid holdovers would have been out of a job immediately, while unpaid appointees could serve up to 30 days past their terms.

Sex education
Local school districts choosing to offer sex education would be required to teach a "medically accurate and developmentally appropriate" curriculum, under  House Bill 3027, which would allow educators to choose from a range of “age appropriate” materials offered by the Illinois State Board of Education.

The bill, sponsored by Rep. Karen Yarbrough, a Maywood Democrat, and Sen. Heather Steans, a Chicago Democrat, would mandate that materials be handed out to teach students how to protect themselves and their partners during sex. Under the bill, which passed in both chambers, parents could review the materials and decide whether their children should participate.

Illinois DREAM Act
Undocumented students who were brought to the country by immigrant parents as children would be able to invest in prepaid tuition and college savings programs under the so-called Illinois DREAM Act, which lawmakers sent to the governor

Senate Bill 2185, would set up a commission to oversee a scholarship fund dedicated solely for undocumented youth – who must have attended high school – seeking access to an affordable higher education.

“Today’s bipartisan vote in the Illinois House is truly historic,” Lawrence Benito, deputy director of the Illinois Coalition for Immigrant and Refugee Rights, said in a prepared statement after the bill’s passage. “This vote is a victory for our state and an important step forward in recognizing the contributions of immigrants.”

The proposal, sponsored by Senate President John Cullerton and Rep. Edward Acevedo, both Chicago Democrats, would allow private funds to be administered by a nine-member commission of volunteer state workers and students. The program would not cost Illinois taxpayers.

The bill would not grant citizenship to undocumented residents in the state, although supporters say it was modeled after the federal DREAM Act.

Athletic concussions
House Bill 200 would require the Illinois High School Association to distribute information about concussions produced by the U.S. Centers for Disease Control and Prevention to help educate coaches, student athletes, and parents on the risks of sports-related head injuries.

Park districts in the state are also encouraged to provide information on the dangers of head injuries to residents and users of park district facilities, including young athletes, under a measure sponsored by House Minority Leader Tom Cross of Oswego and Sen. Kwame Raoul, a Chicago Democrat, that passed the House this week.

“We have seen too many disturbing stories about the long-term negative impact that a concussion can have,” said Raoul, who worked with Chicago Bears' 1985 Super Bowl champions Richard Dent, Kurt Becker and Otis Wilson, along with Illinois school and park districts. “From little league football to the NFL, and all levels and types of sports, this legislation will help make sure that girls and boys, men and women better protect themselves from potentially life-altering head injuries,” he said.

Safety belts
All passengers in the back seat would be required to wear a “properly adjusted” seat belt, under House Bill 219, sponsored by Rep. Mark Beaubian, a Barrington Hills Republican, and Senate President John Cullerton, that passed the Senate, 30-23.

Cullerton, who championed the bill, told reporters it would save lives. In Illinois, 264 people died in motor vehicle accidents while not wearing seat belts in 2009. Nationally, 1,095 back-seat passengers died as result of not wearing seat belts in that same year, according to the National Highway Traffic Safety Administration.

The bill would be an add on to the seat belt law that took effect in July 2003, which required only the driver, front seat passengers and passengers under the age of 18 in the back seat to wear seat belts.

If Quinn signs the legislation, Illinois will become the 26th state to require all occupants to buckle up in the front and back of a car. Back-seat passengers of taxicabs and those who ride in emergency ambulance vehicles would be exempt. Passengers who failed to wear seat belts could be fined up to $60, according to the Illinois State Police, not including potential costs for court fees.


Trans fat ban
What has become an annual push to ban trans fats failed again this year. Lawmakers have typically target schools for the ban, but this time, restaurants and other foods facilities would have had to stop serving food with trans fat. Under House Bill 1600, sponsored by Democratic Rep. LaShawn Ford and Sen. Donne Trotter, both of Chicago, the ban would have taken effect in January 2013.

The bill, which passed the House in April but failed in the Senate with only 13 “yes” votes, excluded from the ban small businesses that earn less than $4 million in profits annually, schools and government institutions. It would, however, have barred public and private schools from selling foods containing trans fat in vending machines.

Opponents of the bill questioned whether the state would be taking on a “nanny” role by passing such legislation. Sen. Mike Jacobs said: “I love Oreo cookies, and I love the trans fat in the old Oreo cookies. Now, I’ll still eat the Oreo cookies, but I liked them better when they had the trans fat. Frankly, I think I ought to make that decision, rather than my colleague.”

Kirk and Giannoulias spar in debate

By Jamey Dunn

During last night’s debate, U.S. Rep. Mark Kirk and state Treasurer Alexi Giannoulias spoke about events from their pasts that have become fodder for the negative campaign ads that are characterizing their race for the U.S. Senate. They also weighed in on some national issues.

Both candidates acknowledged that the race has gotten personal. “This has been a tough and at times very negative campaign,” Giannoulias said at the Chicago debate. Kirk agreed that the focus has often been on the two candidates’ backgrounds but added that voters will be more concerned with the economy when they cast their votes.

Kirk — who has taken flack for exaggerating his military record as well as some personal stories about his life — said he has taken responsibility for his mistakes. Kurt has apologized for making false claims about his military service. “I misstated a part of my military record. It’s a painful process. I learned a big lesson from that. … It’s made me a better congressman.”

When asked about accusations that he was involved in loans his family bank made to alleged mobsters and criminals, Giannoulias said he should have done a better job of explaining the loan approval process when he ran for state treasurer.

“It’s easy to cherry-pick a few individuals out of thousand — out of thousands — and make a nasty political ad. But any business owner will tell you that running a business is not a straight line. Of course, mistakes are made. And inevitably, unfortunately, there are people you wish you would have never done business with.”

Kirk said he could have supported a different version of the federal stimulus program if it were “a much smaller bill with a much larger amount of money for infrastructure.” He said too much money was spent on social programs, and the package was ultimately a failure because it did not keep unemployment below President Barack Obama’s goal of 8 percent.

He also railed against deficit spending, saying the “legacy” of Obama’s recovery bill will be the debt “leveled on the financial future of our kids.” He added, “Our country used to number our debts in billions; now it’s in trillions.”

Giannoulias accused Kirk of recently becoming a deficit hawk after backing former President George W. Bush’s budgets, which put the country trillions of dollars into the red. He said the stimulus bill wasn’t perfect, but it kept the country out of another “Great Depression.”

Kirk said the bill excluded valid stimulus opportunities, such as an overhaul of O’Hare International Airport, because it excluded projects that were not “shovel-ready.”

Giannoulias said he supports the repeal of the Pentagon’s “Don’t Ask Don’t Tell” policy, which prevents gays and lesbians from openly serving in the U.S. military. A federal judge recently deemed the policy unconstitutional, and military recruiters have been ordered to begin accepting gay and lesbian recruits.

Kirk said he voted to keep the policy in place and thinks mixed messages coming from Obama’s administration, which sought to block the judge’s order, are bad for the military. Obama has said he supports the repeal of “Don’t Ask. Don’t Tell.”

“I think we ought to listen to the men and women who run the U.S. military. It is one of the most complicated organizations on Earth,” Kirk said.

Giannoulias also supports the “Dream Act,” which would create a path to citizenship for immigrants who go to college in America or serve in the military. Kirk said he doesn’t think the time is right for the bill. He said it should not be debated until officials “restore the trust of the American people in the ability to administer our own border.”

Kirk said he supports civil unions for same-sex couples. However, he added: “I also don’t think we should have a federal takeover of all marriage law in the United States. I think the federal government is already trying to take over too much.”

Giannoulias said he supports same-sex marriage rights. “We’re going to look back in 20 or 30 years and be embarrassed that we didn’t move sooner on this." (For more on the race for U.S. Senate see the current (October) Illinois Issues, Page 24.)

Quinn: "This will be a week of reform"

By Bethany Jaeger
The end of August marks a deadline for Gov. Pat Quinn, who has to act on legislation approved by the General Assembly before bills automatically become law. In Chicago today, Quinn deemed this week as a “week of reform,” starting with today’s enactment of the revamped laws to ensure public access to information. He could soon act on ethics legislation to limit the amount individuals and political organizations could donate to candidates.

Freedom of Information Act = Senate Bill 189
Quinn signed SB 189, which rewrites the Freedom of Information Act (background here). Starting in January 2010, the process of requesting public information is supposed to get faster and more accountable.

In addition to new training requirements and higher standards for denying access to information, the new FOIA will require public bodies to reply to requests for information within five business days, as opposed to the current seven days. And if a public body denies a request, individuals will have to take fewer steps and less time to appeal that denial.

“The main thing this new act does is enforce many of the good words that were already part of Illinois law that were ignored by public officials,” said Hanke Gratteau, a member of Quinn’s Illinois Reform Commission and former investigative reporter and managing editor for the Chicago Tribune. “There is now recourse if that is avoided, and that’s why it’s good enough for me.”

Local and state governments still can deny access to information under a series of exemptions, and the legislature still can withhold internal documents such as staff analyses and final reports drafted by consultants.

But there are new penalties, something absent from the current FOIA. Under the new version, if a court finds that a public official intentionally violated the FOIA or Open Meetings Act, the official could be fined between $2,400 and $5,000 for each offense.

The new law also gives new powers to the Illinois attorney general's office, where members of the public, media or government can seek help from a specialized lawyer to settle disputes about whether information should be released. The so-called public access counselor will have new authority to issue binding opinions and to subpoena information.

“Today, we can say that Illinois will officially make it out of the Stone Age of transparency,” Attorney General Lisa Madigan said. “We will end the culture of secrecy that surrounds our government, and we will have, I think, a better relationship and better trust with members of the public.”

The Illinois Municipal League, however, believes the new FOIA will place a heavy burden on local governments and won’t go as smoothly as lawmakers think in the next four and a half months, said Roger Huebner, the organization’s deputy executive director and general counsel. Every governmental body covered by the FOIA now has had its primary function fundamentally redefined to field information requests, regardless of whether their budgets have been slashed, he added. More background on the Municipal League’s statements are online.

Cara Smith, deputy chief of staff of policy and communications for the attorney general's office, said she disagrees and that the new law could lessen the burden on local governments because they will have a built-in resource with access to a public access counselor, as opposed to an outside legal counsel.

Heubner referred to commercial requests, in particular, as problematic because they tend to be broad, time-consuming requests. “That’s going to become a financial nightmare.” Local governments still can reject requests by deeming them unduly burdensome.

Heubner also said the new FOIA isn’t written for lay people and that information requests immediately will become legal matters if disputed. “This bill has gone from the hope to help the laymen to the lawyer’s dream.”

Smith said: "If the public body has denied a request and the citizen comes to us for help, then the public body will have to decide if they want to interact with us informally or if they have to get a lawyer. It's certainly not necessary." She added, "I recognize that the public bodies have not looked at this as a benefit to them, but I think that over time, they will see it as just that."

Quinn’s enactment of the new FOIA comes after the governor came under media scrutiny for reportedly using his personal cell phone rather than using a state-provided phone that is subject to public access laws. Quinn said in Chicago today that taxpayers do not pay for his private cell phone and that he doesn’t use it for official state business.

“I do not use this phone to make e-mails to government employees or conduct any kind of communication with government employees,” he said. “As the person of the attorney general’s office who oversees this law [determined], private phone calls that don’t come out of public funds are not subject to the Freedom of Information Act.”

Transparency = House Bill 35
The state also launched a new Web site where anyone with Internet access can look up state employee salaries, state contacts and state-issued licenses. It’s called the Illinois Transparency and Accountability Portal.

Individuals also can look up all board and commission members, as well as their terms and whether they get paid at a new site dedicated to executive appointments. It was created under Senate Bill 1602, which also establishes new ethics requirements for board and commission members.

Campaign finance reform = House Bill 7
Quinn indicated he also could act as soon as tomorrow on legislation that would limit the amount individuals and political organizations could donate to political campaigns. HB 7 won legislative approval but was not the version recommended by the governor’s own Illinois Reform Commission. (Background here.)

Quinn could use his amendatory veto power to change the legislation, although he said he uses that power judiciously. “I’m going to use that only where it’s needed and where it can advance the common good. I think that’s the way we have to do it. We don’t do it to kick the legislature in the shins. I don’t believe in that.”

Patty Schuh, spokeswoman for the Senate Republicans, said Minority Leader Christine Radogno asked the governor to veto the bill in its entirety "because it’s been called worse than nothing. We believe there is ample opportunity to revisit this if everyone is committed to change,” Schuh said.

June issue: A spectacular collapse

Read the latest Illinois Issues magazine to read how the quest for the American Dream led to a national economic nightmare.

Also read "Culture of caring" to explore how the federal government relies on a wide range of Illinois nonprofits to provide human services, to support education and to keep the arts alive.

And while the Illinois General Assembly left Springfield without approving a state budget that the governor would sign, lawmakers did overwhelmingly support a new data system that will track students from preschool through college and career. The trick is whether anyone will know what to do with the data. Read "Data mining" for more.

Available in the print edition only is an essay about "A man with the plan," Daniel Burnham, as well as a feature about how college grads struggle to repay student loans during the national recession.

On Illinois Issues online, also find a variety of sources for the ongoing corruption trial of former Gov. Rod Blagojevich.

Dynamic before budget negotiations

By Bethany Jaeger
Video by Hilary Russell

Rod Blagojevich is no longer governor, and it’s easy to assume that the atmosphere within the Capitol has done a 180 with two new legislative leaders and a new governor. But today’s speeches by three legislative leaders and Gov. Pat Quinn before a business luncheon in Springfield showed little if any concrete points of agreement about how they’re going to lead Illinois out of what Quinn deems a fiscal crisis.

The state faces between an $11 billion and $12 billion deficit next fiscal year, according to the governor’s office and the legislature’s economic forecasting arm. Quinn entered the “lion’s den” this morning and afternoon by first speaking to the Illinois Education Association, a teachers’ union that strongly opposes his proposed pension reforms, and then speaking to the Illinois Retail Merchants Association and the Illinois Manufacturers Association, business groups that oppose a state income tax hike.

“The notion that some [politicians] of both parties are running around saying we can get out of this without raising the income tax — they’re living in a dream world,” Quinn said to reporters after his speech.

Much of the speeches repeated statements heard after Quinn first proposed his budget in March. But the context has changed. The Illinois General Assembly now has 25 days to try to enact a state operating budget, finance a major construction program and approve major ethics reforms. My audio recordings failed today, so what follows is a summary of each speech:

Gov. Pat Quinn: He still wants to raise the income tax and increase the personal exemption to shield low-income families from the increase, but he said he’s willing to negotiate on the personal exemption. He also still wants to create a two-tiered pension system for teachers, meaning new hires would receive a less generous pension benefit. According to the Associated Press, however, Quinn used a speech before the Illinois Education Association to reveal that he dropped his proposal to require teachers’ to pay more into their pensions by 2 percent per paycheck. “We didn’t want that to derail a fundamental reform we must adopt, and that’s having a two-tiered system for the new state employees and new teachers,” Quinn later said. “They’re still going to get a pension, a very generous pension. It just won’t be as generous as what currently exists.” He also said he would not cut Medicaid, which is something Republicans support.



House Speaker Michael Madigan: He said he’s been meeting with small groups of Democrats and asking them to rank their most important programs, narrowing the list of places members are willing to cut. The approach, he said, was abnormal because they have to accept a “zero-based budget.” He then cast an ominous cloud over negotiations for a major capital construction program by saying he is not inclined to meet with House Minority Leader Tom Cross because, he said, “when the rubber hits the road, he’s not going to be there.” Madigan and Cross have clashed in the past on everything from gaming to working with Blagojevich. Republican votes are needed in the House to approve major spending or borrowing plans, but the ongoing icy relationships could have a chilling effect on other negotiations.

House Minority Leader Tom Cross: He did not speak at the Illinois Retail Merchants Association luncheon, but he did address the media later in the Capitol. He said he would “want no part” in a capital plan that financed construction projects by increasing the state income tax or the motor fuel tax. While he hasn’t meet with Madigan, Cross said he has met with both Senate leaders and the governor and talked about revenue ideas. “The bottom line is we’re all talking,” Cross said. “And they’re, I think, fairly productive talks of narrowing down some revenue streams to raise about $1 billion. I think it’s all good.” He specifically mentioned conversations about the House’s idea to legalize video poker and to the Senate’s idea to privatize the Illinois Lottery. Why the speaker spoke out against working with him, he said, is baffling. “I think with the speaker, there’s a pattern when he doesn’t want to do something himself, he looks for a villain or for somebody else to blame. And history will show that we are for capital.”

Senate President John Cullerton: He said he agrees with Republicans that the state should trim spending before resorting to raising income taxes. However, if the state still lacked enough revenue to maintain the same level of core services, he said he will ask the GOP to help approve revenue enhancements. Some Democratic members within his caucus also are working on a plan to expand gaming to raise money, but gaming expansions have been tried and failed multiple times in the past few years. The difference this time is that Cullerton has said he will not peg new gaming revenues to pay for construction plans. That could ease some political pressure on the size of the plan, which plagued previous efforts. Madigan has been cool to the idea of expanded gaming, although his chamber did advance a measure to legalize and tax video poker machines in taverns.

Senate Minority Leader Christine Radogno: She opposes income tax increases and said the state first needs to cut spending, find efficiencies and grow the economy with a capital plan that creates jobs. She agreed with Quinn’s proposal to create a two-tiered system for newly hired teachers as a way to control costs in the long run. She added that she supports Quinn’s Illinois Reform Commission’s ideas to reform state government, including campaign contribution limits. She said she “would vote for all of them as is as opposed to having nothing.”

Radogno also said she’s been working with Cullerton and Quinn and mentioned a new chemistry within the Capitol, which bodes well for a more productive state government. “There’s hope that we can actually accomplish something,” she said.

Yet, nothing’s truly off the table right now. The legislature and the governor have a lot of negotiating to do before they’re able to enact an operating budget or a capital construction plan within 25 days, but that’s likely to require all four legislative leaders to start meeting with Quinn in the same room soon.

Dream job ends at IDOT

Illinois’ Secretary of Transportation Tim Martin resigned today, according to an abrupt announcement from the governor’s office that provides little explanation other than he’s returning to the private sector.

Martin has led the Illinois Department of Transportation since 2003 under Gov. Rod Blagojevich. In the governor's release, Martin calls it “a dream job for any engineer that grew up in Illinois.” The governor’s announcement says Martin’s leadership was “instrumental in modernizing and making IDOT more efficient and focused the agency on better using technology to accomplish its goals.” He also marked the agency’s 2006 record of having the fewest fatalities since 1924.

Also on Martin’s watch, however, is IDOT’s status as one of at least 15 agencies to have received federal subpoenas in an ongoing federal investigation into hiring and contracting practices within Blagojevich’s administration. No one has been charged with wrongdoing.

IDOT spokesman Matt Vanover says Martin resigned and was not asked to leave. These types of changes are common as administrations transition into new terms, he says.

Milt Sees, IDOT director of highways, takes over until the governor nominates a permanent secretary, which requires Senate approval.