The waiting list we told you about in June in Illinois Issues magazine could get worse if the General Assembly doesn’t override the governor’s recent veto of more than $43 million from community-based treatment programs for substance abusers.
The budget cuts could cause layoffs, program closures and “insurmountable” waiting lists for services, said Keith Kuhn, community director at Gateway Foundation in Springfield. The trickle-down effect would reach emergency rooms, mental health services, prisons and courts.
“A lot of the progress that we’ve been making in Illinois in trying to reduce the number of individuals incarcerated for addiction-related issues, a lot of those gains will be lost,” Kuhn said during a Statehouse news conference this afternoon. “And that would be a real shame that we had invested that much time, money and effort to only take significant steps back.” He described such a system as “barbaric” in the way it would approach addiction-related services.
Kuhn said the governor’s cuts reduce state funding for addiction treatment services in half, from $86.6 million to $43.3 million. “When factoring in other areas also receiving funding reductions, the cuts to our existing treatment service system total a little over $55 million.” Specific programs include those for domestic violence, youth in the court systems and temporary assistance for needy families. And once the state funding depletes, federal matching funds also decrease. So the effect doubles from $55 million to $110 million, he said, adding that amounts to about half of the $252 million total budget for substance abuse services.
Unlike other state programs where the governor simply erased the increases above last year’s funding levels, the cuts for some substance abuse prevention and treatment programs were “zeroed out,” or erased completely, said Peggy Powers, chief operating officer of the Illinois Alcoholism and Drug Dependence Association in Springfield. “This is gutting what was actually awarded during FY08.”
“The fact that it’s cut from the base of the FY08 funding level is something that has not occurred wholesale in any other programming,” she said. “We don’t know how the addiction treatment system came into the crosshairs of the governor’s cutting ax, but it certainly has, and it’s an incredibly crucial item.”
There’s some skepticism that the governor’s budget cuts target the particularly sensitive area of substance abuse to grab attention and to further apply pressure on the House Democratic leadership to approve funding mechanisms that would prevent these cuts. The governor’s budget office did not return my phone call this afternoon.
The House is scheduled to come back to Springfield Tuesday through Thursday to consider the governor’s budget cuts and attempt to override some of them. Some items that were reduced require a simple majority of 60 votes. Other items that were cut out require 71 votes to be restored.
Some could be restored under a revised revenue idea in the House that would allow the governor to sweep about $300 million from special dedicated funds and pad the state’s general fund. But it has potential to get complicated when the House Democrats likely tie those so-called fund sweeps to specific program areas — possibly such human services as substance abuse treatment and prevention.
Fund sweeps wouldn’t guarantee funding. The Senate would have to approve the revenue idea, as well as any overrides of the governor’s veto. But the Senate so far isn’t planning to come back before November. That could change.
November would be too late, according to Kuhn, who said agency offices would have to close or take on huge debt to stay open before then.
Many other groups also are worrying that the budget cuts would hinder current and future services. The Child Care Association of Illinois issued a press release saying a $45 million cut will affect services for abused and neglected children and foster parents. The Partners for Parks and Wildlife, including members of the Sierra Club, the Illinois Association Park Districts and the Nature Conservancy, will join forces to fight a 20 percent funding decrease for the state Department of Natural Resources. The group projects a loss of 163 jobs and zero out funding for the Water Supply Planning and Management Program and the Wildlife Prairie Park in Peoria.
Monday, July 14, 2008
Thursday, July 10, 2008
Speaker: Gaming is dead
House Speaker Michael Madigan deflated all momentum behind a capital bill this afternoon with one statement: “Given the conditions that exist here in Springfield, I think that the proposed expansion of gaming is a dead issue.” And the state’s operating budget remains unbalanced, as the House continues to reject ideas that would plug what the governor describes as a $2 billion hole. While the House is expected to vote next week to restore some of the governor’s $1.4 billion in cuts, they’re unlikely to support revenue ideas to pay for them.
Madigan spoke in a Statehouse news conference shortly after the full chamber rejected the Senate’s gaming proposal, which would have allowed a new land-based casino in Chicago, a state-owned casino and a new riverboat somewhere in the state. It also would have allowed slot machines at horse race tracks.
The multibillion dollar revenue source was the crux of a $34 billion capital construction plan. Without it, Illinois enters its ninth year without a major capital plan and without federal matching funds earmarked for transportation projects.
“This is another example of the speaker’s shenanigans to thwart the capital bill, which would put hundreds of thousands of people to work, and to impose an income tax on the people of Illinois next year,” the governor’s office wrote in an e-mail. The governor is not giving up on capital, said his spokesman Brian Williamsen in a phone conversation.
In a characteristically methodical way, the speaker led his caucus in rejecting most of the funding source of the capital plan. Yet Madigan added that he would not declare a capital plan dead, just gaming.
Without gaming, he said he’d consider previous revenue ideas, including one proposed by House Minority Leader Tom Cross last year that would offer a limited expansion of gaming at existing casinos or riverboats. The speaker also has his own version of a gaming plan that would reform the Illinois Gaming Board. And he cited a previous measure he supported: a constitutional amendment that would increase the Illinois income tax to fund education and construction needs.
Madigan denied, however, that he would propose an income tax increase after the November elections, as the governor and some Republicans repeatedly have charged. “I am not going to support an increase in the income tax during a lame duck session of the legislature,” Madigan said. He did not, however, rule out next spring. “Next spring is next spring. That’s a long time away.”
Senate Minority Leader Frank Watson said it’s unfortunate the speaker took gaming off the table to fund capital. “Revenue has to be generated to fund a capital bill, and gaming seemed to be the best alternative.” He added that although he’s not happy about it, Madigan’s statement could have a positive side. “I think we’ve been strung along for a long period of time … If this is going to bring closure to at least the revenue source, then, I guess, so be it.”
Watson said his caucus would be willing to consider alternative revenue sources for a capital plan, and he charged the speaker with the responsibility to propose such alternatives.
Capital bill summary: All parties say they’re not going to give up on capital, but none seem to offer alternatives that would serve as a compromise. Gaming was thought to be the compromise between most of the parties, but the House didn’t like the Senate’s procedural method that prevented the House from being able to make any changes to the gaming plan. So the General Assembly went from having what looked like a compromise to what turned out to be another dramatized clash between two chambers, leaving us where we started.
The operating budget is just as anti-climactic at this point. To be clear, the state does have an operating budget in place with most of the $59 billion spending plan activated. Yet the governor’s $1.4 billion in cuts announced Wednesday still leave an unbalanced budget, according to the House and Senate GOP. According to the House speaker, “The word 'balanced' is one of these things that’s in the eye of the beholder.”
State Medicaid spending often is one area that can be delayed to balance the current year’s budget. Sen. Dale Righter, a Mattoon Republican, explained last night that regardless of the governor’s budget cuts that affect state Medicaid programs, the state still has to reimburse medical providers who care for Medicaid patients. “We still owe those bills. So the governor’s not cutting growth in government when he cuts Medicaid. He’s just pushing bills off into the future,” Righter said.
The rest of the governor’s spending cuts, particularly to human services, could be considered by the House next week. It’s scheduled to return Tuesday through Thursday. The Senate is not, meaning no cuts will be restored unless the Senate also agrees. That could be a while, considering Senate President Emil Jones Jr. said his chamber isn’t scheduled to come back to Springfield until the annual fall session in November. His spokeswoman said they would wait to see what the House did next week before deciding whether to override some of the governor’s vetoes before then.
But, there’s always the chance that the state budget could end up where it started, with relatively flat funding levels for most state services and some decreases for operations. “I could see nothing happening,” Cross said after the House rejected gaming.
The one option remaining on the table in the House is so-called fund sweeps. The Senate and the governor want to allow the governor to transfer about $530 million from dedicated funds to the state’s general fund. It’s been done for years under multiple administrations. Although fund sweeps appears to be the one common ground between all parties, Cross said it’s a) not enough and b) not guaranteed. “If you’re going to end up using fund sweeps, where does it go? Does it go back to pay bills? Does it go to [developmental disabilities]? Does it go to higher ed? To nursing? There’s not enough to take care of all these. So I don’t know. It’s possible at the end of the day nothing happens.”
Madigan said last night that his Democratic members want to define which funds could be swept and where the money would go. They also may want to reduce the amount transferred.
Sen. Donne Trotter, a budget negotiator for his chamber, said there’s actually about $1.9 billion available in the dedicated funds that otherwise is considered “surplus” at the end of each year. He said he’d be willing to consider changing the amount transferred, whether it’s more or less than $530 million. Madigan, however, said fund sweeps historically topped off at $300 million.
Either way, Trotter and many others agree that fund sweeps won’t solve the budget deficit, whether the state operates at $1 billion or $2 billion in the red.
Operating budget summary: There’s a lot of work to do. If the House overrides some of the governor’s budget cuts without approving ways to pay for them, the budget will tilt further out of balance. The level of funding for state services during the second half of the fiscal year could come down to how well the state economy performs and whether legislators agree on ways to plug remaining holes when they reconvene this fall.
Madigan spoke in a Statehouse news conference shortly after the full chamber rejected the Senate’s gaming proposal, which would have allowed a new land-based casino in Chicago, a state-owned casino and a new riverboat somewhere in the state. It also would have allowed slot machines at horse race tracks.
The multibillion dollar revenue source was the crux of a $34 billion capital construction plan. Without it, Illinois enters its ninth year without a major capital plan and without federal matching funds earmarked for transportation projects.
“This is another example of the speaker’s shenanigans to thwart the capital bill, which would put hundreds of thousands of people to work, and to impose an income tax on the people of Illinois next year,” the governor’s office wrote in an e-mail. The governor is not giving up on capital, said his spokesman Brian Williamsen in a phone conversation.
In a characteristically methodical way, the speaker led his caucus in rejecting most of the funding source of the capital plan. Yet Madigan added that he would not declare a capital plan dead, just gaming.
Without gaming, he said he’d consider previous revenue ideas, including one proposed by House Minority Leader Tom Cross last year that would offer a limited expansion of gaming at existing casinos or riverboats. The speaker also has his own version of a gaming plan that would reform the Illinois Gaming Board. And he cited a previous measure he supported: a constitutional amendment that would increase the Illinois income tax to fund education and construction needs.
Madigan denied, however, that he would propose an income tax increase after the November elections, as the governor and some Republicans repeatedly have charged. “I am not going to support an increase in the income tax during a lame duck session of the legislature,” Madigan said. He did not, however, rule out next spring. “Next spring is next spring. That’s a long time away.”
Senate Minority Leader Frank Watson said it’s unfortunate the speaker took gaming off the table to fund capital. “Revenue has to be generated to fund a capital bill, and gaming seemed to be the best alternative.” He added that although he’s not happy about it, Madigan’s statement could have a positive side. “I think we’ve been strung along for a long period of time … If this is going to bring closure to at least the revenue source, then, I guess, so be it.”
Watson said his caucus would be willing to consider alternative revenue sources for a capital plan, and he charged the speaker with the responsibility to propose such alternatives.
Capital bill summary: All parties say they’re not going to give up on capital, but none seem to offer alternatives that would serve as a compromise. Gaming was thought to be the compromise between most of the parties, but the House didn’t like the Senate’s procedural method that prevented the House from being able to make any changes to the gaming plan. So the General Assembly went from having what looked like a compromise to what turned out to be another dramatized clash between two chambers, leaving us where we started.
The operating budget is just as anti-climactic at this point. To be clear, the state does have an operating budget in place with most of the $59 billion spending plan activated. Yet the governor’s $1.4 billion in cuts announced Wednesday still leave an unbalanced budget, according to the House and Senate GOP. According to the House speaker, “The word 'balanced' is one of these things that’s in the eye of the beholder.”
State Medicaid spending often is one area that can be delayed to balance the current year’s budget. Sen. Dale Righter, a Mattoon Republican, explained last night that regardless of the governor’s budget cuts that affect state Medicaid programs, the state still has to reimburse medical providers who care for Medicaid patients. “We still owe those bills. So the governor’s not cutting growth in government when he cuts Medicaid. He’s just pushing bills off into the future,” Righter said.
The rest of the governor’s spending cuts, particularly to human services, could be considered by the House next week. It’s scheduled to return Tuesday through Thursday. The Senate is not, meaning no cuts will be restored unless the Senate also agrees. That could be a while, considering Senate President Emil Jones Jr. said his chamber isn’t scheduled to come back to Springfield until the annual fall session in November. His spokeswoman said they would wait to see what the House did next week before deciding whether to override some of the governor’s vetoes before then.
But, there’s always the chance that the state budget could end up where it started, with relatively flat funding levels for most state services and some decreases for operations. “I could see nothing happening,” Cross said after the House rejected gaming.
The one option remaining on the table in the House is so-called fund sweeps. The Senate and the governor want to allow the governor to transfer about $530 million from dedicated funds to the state’s general fund. It’s been done for years under multiple administrations. Although fund sweeps appears to be the one common ground between all parties, Cross said it’s a) not enough and b) not guaranteed. “If you’re going to end up using fund sweeps, where does it go? Does it go back to pay bills? Does it go to [developmental disabilities]? Does it go to higher ed? To nursing? There’s not enough to take care of all these. So I don’t know. It’s possible at the end of the day nothing happens.”
Madigan said last night that his Democratic members want to define which funds could be swept and where the money would go. They also may want to reduce the amount transferred.
Sen. Donne Trotter, a budget negotiator for his chamber, said there’s actually about $1.9 billion available in the dedicated funds that otherwise is considered “surplus” at the end of each year. He said he’d be willing to consider changing the amount transferred, whether it’s more or less than $530 million. Madigan, however, said fund sweeps historically topped off at $300 million.
Either way, Trotter and many others agree that fund sweeps won’t solve the budget deficit, whether the state operates at $1 billion or $2 billion in the red.
Operating budget summary: There’s a lot of work to do. If the House overrides some of the governor’s budget cuts without approving ways to pay for them, the budget will tilt further out of balance. The level of funding for state services during the second half of the fiscal year could come down to how well the state economy performs and whether legislators agree on ways to plug remaining holes when they reconvene this fall.
Wednesday, July 09, 2008
Two-week notice
State employees and service providers should know within 15 days whether state funding for the current fiscal year will decrease by more than $1 billion. Gov. Rod Blagojevich not only cut $1.4 billion Wednesday, but he also asked state agencies to tighten their belts and avoid spending their entire allotments to save another $700 million. His office couldn’t say whether those actions would result in layoffs.
He made the announcement during a special session of the General Assembly, convened to address an unbalanced budget for state operations. Legislators sent to the governor in late May a budget that Blagojevich says approved spending about $2 billion more than the state is expected to collect in revenue. While the Senate approved a series of ideas to plug that $2 billion hole beforehand, all of those ideas failed in the House.
The governor used the special session to blame House Democrats, i.e. House Speaker Michael Madigan, for approving an unconstitutional budget they knew would result in drastic cuts. The House reacted by scheduling a special committee of the entire chamber to hear pros and cons of all of the governor’s big ideas. In the past, those special committees have served as a springboard to trounce on the governor's plans before flat out rejecting them.
The governor called the House committee a circus. “Forget about phony committees on the whole that are circuses of excuses to do nothing and to fail to meet their constitutional responsibilities,” Blagojevich said at a Statehouse news conference before the House even voted on any of his revenue ideas. “But understanding they’re unlikely to do that, a couple of hours ago, I did their job for them. I balanced the budget. So now the ball’s in their court.”
The House Democrats did, indeed, reject one of his funding schemes that would have freed up $400 million. A House smaller committee soundly rejected a $16 billion pension bonding plan that would have restructured the state’s annual payments to the state’s five public employee pension systems.
But the House showed some wiggle room in transferring about $500 million in special dedicated funds to pad the state’s general fund — but not before gutting the governor’s original version that already received Senate approval in the spring. Madigan said the intent of the revised “fund sweeps” measure is to show a willingness to work with the governor on the idea. (It's a blank slate — they still have to insert the language.) But Madigan’s caucus wants to spell out which funds could be swept and where the money would go. Otherwise, his members object to giving free reign to the governor to sweep about half a billion dollars and spend it on whatever he pleases. Rep. Sara Feigenholtz, a Chicago Democrat and point person on human services, said she would be willing to consider fund sweeps if it saved human services from the budget ax. The governor’s cuts on Wednesday did reduce funding for human services by $210 million, erasing increases for autism programs, substance abuse treatment and mental health services.
House Minority Leader Tom Cross said the fund sweeps idea would “probably not [be] well received” in his caucus. While the GOP will continue to push for a statewide capital plan for construction projects, he reacted to the governor's cuts to the operating budget by saying: “We’re for less spending … but we weren’t part of the budget process.”
Some of the governor’s other cuts also scrap increases for higher education, which has gotten flat or reduced funding for a handful of years. (CLARIFICATION: Higher education still would receive a 2.8 percent increase across the board, minus community colleges. Their funding levels slightly decreased. The governor's higher education cuts relate to specific grants, including the monetary award program for needy students. So-called MAP grant funding stands to lose $18 million if it's not overridden by the legislature.) The same goes for about $150 million that would have funded school construction projects in 24 districts that have been waiting as long as five years for the state’s share of the cost.
The House has 15 days to respond to the governor’s cuts before they automatically become active. Legislators will hold another special session Thursday, when the House will continue to debate components of a $34 billion capital plan for a whole host of construction projects. Few expect the House to vote on the governor’s budget cuts before they wrap up and go home Thursday afternoon. If so, the chamber would have to return by July 24 if Democrats want to attempt to override the governor’s budget cuts.
The rest of the state budget that was left untouched by the governor immediately takes effect. That means legislators and constitutional officers could receive annual pay raises, or cost of living adjustments, that were left in the budget. Cross described it as “absurd.” “The whole idea of a (cost of living adjustment) is just mind boggling to me in this economic climate.”
He made the announcement during a special session of the General Assembly, convened to address an unbalanced budget for state operations. Legislators sent to the governor in late May a budget that Blagojevich says approved spending about $2 billion more than the state is expected to collect in revenue. While the Senate approved a series of ideas to plug that $2 billion hole beforehand, all of those ideas failed in the House.
The governor used the special session to blame House Democrats, i.e. House Speaker Michael Madigan, for approving an unconstitutional budget they knew would result in drastic cuts. The House reacted by scheduling a special committee of the entire chamber to hear pros and cons of all of the governor’s big ideas. In the past, those special committees have served as a springboard to trounce on the governor's plans before flat out rejecting them.
The governor called the House committee a circus. “Forget about phony committees on the whole that are circuses of excuses to do nothing and to fail to meet their constitutional responsibilities,” Blagojevich said at a Statehouse news conference before the House even voted on any of his revenue ideas. “But understanding they’re unlikely to do that, a couple of hours ago, I did their job for them. I balanced the budget. So now the ball’s in their court.”
The House Democrats did, indeed, reject one of his funding schemes that would have freed up $400 million. A House smaller committee soundly rejected a $16 billion pension bonding plan that would have restructured the state’s annual payments to the state’s five public employee pension systems.
But the House showed some wiggle room in transferring about $500 million in special dedicated funds to pad the state’s general fund — but not before gutting the governor’s original version that already received Senate approval in the spring. Madigan said the intent of the revised “fund sweeps” measure is to show a willingness to work with the governor on the idea. (It's a blank slate — they still have to insert the language.) But Madigan’s caucus wants to spell out which funds could be swept and where the money would go. Otherwise, his members object to giving free reign to the governor to sweep about half a billion dollars and spend it on whatever he pleases. Rep. Sara Feigenholtz, a Chicago Democrat and point person on human services, said she would be willing to consider fund sweeps if it saved human services from the budget ax. The governor’s cuts on Wednesday did reduce funding for human services by $210 million, erasing increases for autism programs, substance abuse treatment and mental health services.
House Minority Leader Tom Cross said the fund sweeps idea would “probably not [be] well received” in his caucus. While the GOP will continue to push for a statewide capital plan for construction projects, he reacted to the governor's cuts to the operating budget by saying: “We’re for less spending … but we weren’t part of the budget process.”
Some of the governor’s other cuts also scrap increases for higher education, which has gotten flat or reduced funding for a handful of years. (CLARIFICATION: Higher education still would receive a 2.8 percent increase across the board, minus community colleges. Their funding levels slightly decreased. The governor's higher education cuts relate to specific grants, including the monetary award program for needy students. So-called MAP grant funding stands to lose $18 million if it's not overridden by the legislature.) The same goes for about $150 million that would have funded school construction projects in 24 districts that have been waiting as long as five years for the state’s share of the cost.
The House has 15 days to respond to the governor’s cuts before they automatically become active. Legislators will hold another special session Thursday, when the House will continue to debate components of a $34 billion capital plan for a whole host of construction projects. Few expect the House to vote on the governor’s budget cuts before they wrap up and go home Thursday afternoon. If so, the chamber would have to return by July 24 if Democrats want to attempt to override the governor’s budget cuts.
The rest of the state budget that was left untouched by the governor immediately takes effect. That means legislators and constitutional officers could receive annual pay raises, or cost of living adjustments, that were left in the budget. Cross described it as “absurd.” “The whole idea of a (cost of living adjustment) is just mind boggling to me in this economic climate.”
Bragging rights
The Chicago Tribune listed our own Illinois Issues magazine as one of its 50 favorite magazines in today's Tempo section. The entry reads:
ILLINOIS ISSUES
Not just a magazine for policy wonks, Illinois Issues deciphers Springfield legislation for all constituents in the Land of Lincoln. Education, immigration, conservation and, of course, corruption are analyzed regularly in lively, well-informed articles on the state of our state.
Tuesday, July 08, 2008
For better or worse
Don’t expect House Democrats to deliver on the governor’s wish list in the next two days. Gov. Rod Blagojevich called a special session of the General Assembly for Wednesday and Thursday to urge House members to approve a series of revenue-generating ideas, combined with a major capital plan, to help plug a hole in the state operating budget. If they don't, he said he’ll have to cut $1.5 billion from the budget approved in late May. The proposed capital plan also would allow the feds to release matching funds earmarked for road and school construction projects that have accumulated over the past nine years.
The House rejected the revenue and capital ideas this spring, and there’s little evidence to suggest House Democrats would change their minds this summer. House Republicans, who would be needed to approve a capital plan, are expected to support the governor's proposal. Their ability to vote on it, however, depends on whether the proposal even makes it to the House floor in the next two days.
A lot of issues are at play here: 1) stubborn political agendas, particularly between House Speaker Michael Madigan vs. the team of Blagojevich and Senate President Emil Jones Jr.; 2) distrust of the governor to disperse money for the capital projects; 3) fuzzy math, or inconsistent projections about the money needed to balance the budget; 4) fuzzy projections about whether the state would jeopardize about $9 billion in federal funds if Illinois failed to approve a capital plan this year; and 5) the campaign season leading up to the November elections.
Regardless of which combination of factors comes out strongest this week, the consequences of not acting on the governor’s wishes likely would threaten some state employees’ paychecks and some service providers’ reimbursements. With little hope that the House will come through on the governor’s wishes, he’ll likely feel a lot of pressure to cut out portions of the budget by week’s end to prevent state government from shutting down. A spokeswoman for his budget office said last week, “The governor has said there will not be a state shutdown.”
So what would be better for the state? Option a) Balance the budget by allowing the governor to sweep about $500 million of special funds, float a $16 billion pension bonding scheme and approve a major construction plan? That would include leasing the Illinois Lottery, constructing new gaming facilities and expanding of other forms of gambling. Or option b) Reject most or all of those ideas and force the governor to cut $1.5 billion from the budget, which would erase funding increases for higher education and social services and reduce funding levels for many other state operations.
(A bipartisan state panel issued an analysis about a variety of the governor’s proposals. See the report here, but note that it was issued in February based on the governor’s original plans that have since been revised.)
This morning, the governor’s negotiating team pleaded its case for a compromise during a teleconference, led by former U.S. House Speaker Dennis Hastert and Southern Illinois University President Glenn Poshard.
Poshard referred to inconsistencies within the House Democrats’ complaints about the $34 billion capital plan. First, he said, they approved a $57 billion operating budget for one year and gave the governor total discretion to trim where he sees fit. Then they argued that they couldn’t support the capital plan — which Poshard said breaks down to about $5.5 billion a year — because they don’t trust the governor to spend the money as planned. Poshard countered that by describing “accountability provisions” that would check the governor’s power and grant legislative oversight. “Any contention that there’s no limit on the governor’s authority here and that he can end up doing what he wants to do with this money is just absolutely untrue,” Poshard said. He welcomed legislators to propose more ideas, which he said could be considered and added in a matter of days if done in earnest.
Steve Brown, spokesman for House Speaker Michael Madigan, said this afternoon that other proposals were suggested from the beginning but not included in their final proposal. Brown referred to provisions that would define all money allotted to specific projects, reform ethics provisions for the state’s gaming authority and decrease the fee that Chicago would have to pay to acquire a new gaming facility. Brown added that the speaker would be unlikely to sit down with Poshard and Hastert to discuss the ideas. “I don’t know what that gains. I mean, they’ve been aware of all these things for weeks, if not months.”
Requiring construction projects to be defined line by line has never been done before, Poshard said, adding that it could limit the Illinois Department of Transportation’s ability to adjust if projects came in over or under budget. “We discussed all those things, openly, honestly, thoroughly. To come up now and use those two things as concerns and issues, I don’t think are valid at all.”
As far as the best outcome for the state, Brown said this week’s so-called committee of the whole could help legislators decide what to do. The committee is scheduled to start about 1 p.m. and end about 5 p.m., when they’re scheduled to split off into a smaller committee to consider ways to close the budget gap. Brown said they could return Thursday morning but expect to wrap up that afternoon.
Then all eyes will turn to the governor’s office, which likely was the intent of House Democrats when they approved an unbalanced budget in the first place.
The House rejected the revenue and capital ideas this spring, and there’s little evidence to suggest House Democrats would change their minds this summer. House Republicans, who would be needed to approve a capital plan, are expected to support the governor's proposal. Their ability to vote on it, however, depends on whether the proposal even makes it to the House floor in the next two days.
A lot of issues are at play here: 1) stubborn political agendas, particularly between House Speaker Michael Madigan vs. the team of Blagojevich and Senate President Emil Jones Jr.; 2) distrust of the governor to disperse money for the capital projects; 3) fuzzy math, or inconsistent projections about the money needed to balance the budget; 4) fuzzy projections about whether the state would jeopardize about $9 billion in federal funds if Illinois failed to approve a capital plan this year; and 5) the campaign season leading up to the November elections.
Regardless of which combination of factors comes out strongest this week, the consequences of not acting on the governor’s wishes likely would threaten some state employees’ paychecks and some service providers’ reimbursements. With little hope that the House will come through on the governor’s wishes, he’ll likely feel a lot of pressure to cut out portions of the budget by week’s end to prevent state government from shutting down. A spokeswoman for his budget office said last week, “The governor has said there will not be a state shutdown.”
So what would be better for the state? Option a) Balance the budget by allowing the governor to sweep about $500 million of special funds, float a $16 billion pension bonding scheme and approve a major construction plan? That would include leasing the Illinois Lottery, constructing new gaming facilities and expanding of other forms of gambling. Or option b) Reject most or all of those ideas and force the governor to cut $1.5 billion from the budget, which would erase funding increases for higher education and social services and reduce funding levels for many other state operations.
(A bipartisan state panel issued an analysis about a variety of the governor’s proposals. See the report here, but note that it was issued in February based on the governor’s original plans that have since been revised.)
This morning, the governor’s negotiating team pleaded its case for a compromise during a teleconference, led by former U.S. House Speaker Dennis Hastert and Southern Illinois University President Glenn Poshard.
Poshard referred to inconsistencies within the House Democrats’ complaints about the $34 billion capital plan. First, he said, they approved a $57 billion operating budget for one year and gave the governor total discretion to trim where he sees fit. Then they argued that they couldn’t support the capital plan — which Poshard said breaks down to about $5.5 billion a year — because they don’t trust the governor to spend the money as planned. Poshard countered that by describing “accountability provisions” that would check the governor’s power and grant legislative oversight. “Any contention that there’s no limit on the governor’s authority here and that he can end up doing what he wants to do with this money is just absolutely untrue,” Poshard said. He welcomed legislators to propose more ideas, which he said could be considered and added in a matter of days if done in earnest.
Steve Brown, spokesman for House Speaker Michael Madigan, said this afternoon that other proposals were suggested from the beginning but not included in their final proposal. Brown referred to provisions that would define all money allotted to specific projects, reform ethics provisions for the state’s gaming authority and decrease the fee that Chicago would have to pay to acquire a new gaming facility. Brown added that the speaker would be unlikely to sit down with Poshard and Hastert to discuss the ideas. “I don’t know what that gains. I mean, they’ve been aware of all these things for weeks, if not months.”
Requiring construction projects to be defined line by line has never been done before, Poshard said, adding that it could limit the Illinois Department of Transportation’s ability to adjust if projects came in over or under budget. “We discussed all those things, openly, honestly, thoroughly. To come up now and use those two things as concerns and issues, I don’t think are valid at all.”
As far as the best outcome for the state, Brown said this week’s so-called committee of the whole could help legislators decide what to do. The committee is scheduled to start about 1 p.m. and end about 5 p.m., when they’re scheduled to split off into a smaller committee to consider ways to close the budget gap. Brown said they could return Thursday morning but expect to wrap up that afternoon.
Then all eyes will turn to the governor’s office, which likely was the intent of House Democrats when they approved an unbalanced budget in the first place.
Ethical attitudes
The legislature waited a full month to send to the governor unanimously approved ethics reforms contained in HB 824. They sent it to his desk June 30, starting the 60-day clock for the governor to amend it, veto it or sign it before it automatically becomes law. That gives Gov. Rod Blagojevich until August 29, and he’s vowed to “improve” the measure but has not indicated what those changes might be and when they would come down. The legislation as approved by the General Assembly is designed to deter so-called pay-to-play politics, where state contractors donate to lawmakers’ political campaigns in an attempt to curry favor with the people who hire them. Blagojevich’s office says that’s not enough.
“We are disappointed that legislators didn’t take advantage of the opportunity to pass real and comprehensive ethics reform that would put strong campaign finance restrictions in place and end conflicts of interest across the board,” said Brian Williamsen, a Blagojevich spokesman, in an e-mail Monday afternoon. “We’re reviewing the bill.”
Legislators will return to the Capitol Wednesday and Thursday to convene a special session, ordered by the governor, to consider revenue-enhancing ideas to plug what Blagojevich says is a $2 billion hole in the current state operating budget. They’re also scheduled to consider a controversial way to fund a long-awaited capital plan for construction projects. (Check back later because the governor’s negotiators are set to hold a telephone conference about that plan this morning.) But ethics reform won’t be part of this two-day session. It's simply up to the governor to make the next move.
In the meantime, Illinois residents increasingly feel frustrated with state government for its lack of progress on major issues that affect daily life. Illinoisans, as well as voters throughout the Midwest, are getting more skeptical and distrusting of their government, according to a June poll commissioned by the Midwest Democracy Network. The survey was funded by the Joyce Foundation and conducted by Belden Russonello & Steward, an independent research firm in Washington, D.C. The firm called 2,044 adults in Illinois, Michigan, Minnesota, Ohio and Wisconsin between late April and early May. It has a margin of error of plus or minus 2.2 percent.
The survey spells out three important trends, according to Kate Stewart, partner at Belden Russonello & Stewart, in a release: “First, Midwesterners distrust their state governments. Second, despite their distrust, they are hopeful for change and support a range of reforms, and third, the voters are beginning to understand the connection between state government reform and solving problems like improving education, creating jobs and having a fairer tax policy.”
One of the items in the survey relates to the limited scope of the Illinois legislation: Get money out of state politics. The survey said 88 percent of respondents said not allowing state contractors to make political contributions to elected officials who issue the contracts would “make a difference,” while 61 percent said it would make a “big difference.” About the same percentage thought it would help to require lobbyists to report all of their clients, the issues they’re working on and the money they spend to lobby lawmakers.
Illinois voters will have a chance to put their votes where their mouths are this November, and they might not realize that they have more than one option to indicate that they want state government to change. In addition to voting for or against their local legislators, voters will be able to cast a vote to show whether they think the state should convene a constitutional convention. If yes, then elected delegates would be able to rewrite the state charter to draw truly competitive legislative districts, which is the hope of Cynthia Canary. She’s the director of the Illinois Campaign for Political Reform based in Chicago and an advocate for reform of the state’s ethics and election codes. She answered the following questions by e-mail, as she’s currently out of the country:
Q: On which government officials do voters take out their frustrations: The governor, their state legislators or their local officials?
Q: The survey seems to indicate that the public thinks it would help to target lobbyists with more disclosure laws. Is that the next step for Illinois?
“We are disappointed that legislators didn’t take advantage of the opportunity to pass real and comprehensive ethics reform that would put strong campaign finance restrictions in place and end conflicts of interest across the board,” said Brian Williamsen, a Blagojevich spokesman, in an e-mail Monday afternoon. “We’re reviewing the bill.”
Legislators will return to the Capitol Wednesday and Thursday to convene a special session, ordered by the governor, to consider revenue-enhancing ideas to plug what Blagojevich says is a $2 billion hole in the current state operating budget. They’re also scheduled to consider a controversial way to fund a long-awaited capital plan for construction projects. (Check back later because the governor’s negotiators are set to hold a telephone conference about that plan this morning.) But ethics reform won’t be part of this two-day session. It's simply up to the governor to make the next move.
In the meantime, Illinois residents increasingly feel frustrated with state government for its lack of progress on major issues that affect daily life. Illinoisans, as well as voters throughout the Midwest, are getting more skeptical and distrusting of their government, according to a June poll commissioned by the Midwest Democracy Network. The survey was funded by the Joyce Foundation and conducted by Belden Russonello & Steward, an independent research firm in Washington, D.C. The firm called 2,044 adults in Illinois, Michigan, Minnesota, Ohio and Wisconsin between late April and early May. It has a margin of error of plus or minus 2.2 percent.
The survey spells out three important trends, according to Kate Stewart, partner at Belden Russonello & Stewart, in a release: “First, Midwesterners distrust their state governments. Second, despite their distrust, they are hopeful for change and support a range of reforms, and third, the voters are beginning to understand the connection between state government reform and solving problems like improving education, creating jobs and having a fairer tax policy.”
One of the items in the survey relates to the limited scope of the Illinois legislation: Get money out of state politics. The survey said 88 percent of respondents said not allowing state contractors to make political contributions to elected officials who issue the contracts would “make a difference,” while 61 percent said it would make a “big difference.” About the same percentage thought it would help to require lobbyists to report all of their clients, the issues they’re working on and the money they spend to lobby lawmakers.
Illinois voters will have a chance to put their votes where their mouths are this November, and they might not realize that they have more than one option to indicate that they want state government to change. In addition to voting for or against their local legislators, voters will be able to cast a vote to show whether they think the state should convene a constitutional convention. If yes, then elected delegates would be able to rewrite the state charter to draw truly competitive legislative districts, which is the hope of Cynthia Canary. She’s the director of the Illinois Campaign for Political Reform based in Chicago and an advocate for reform of the state’s ethics and election codes. She answered the following questions by e-mail, as she’s currently out of the country:
Q: On which government officials do voters take out their frustrations: The governor, their state legislators or their local officials?
With only 13 percent of respondents feeling the governor was doing a good job and 17 percent saying that of the legislature, the poll suggests that voters are frustrated with both the executive and legislative branches of government in Illinois. There is a frustration with the overall direction of state government (up to 68 percent wrong track from 42 percent in 2006) and a sense that no one is really at the helm. My sense is that the voters’ frustration is most likely to be aimed at the governor, as he is the one people believe should be steering the ship and he is the most visible embodiment of state government. Unfortunately for the governor, he is also the one most associated with ethical problems and scandal, and the poll very clearly indicated that Illinoisans are fed up with corruption and that honesty and accountability are the primary values they seek in state government.Q: Does that mean elections will be particularly interesting this fall, or do you think people who participated in the poll will put their vote where their mouths are?
We haven’t tested it, but my guess is that people's attitudes toward the [General Assembly] would mirror their feelings about Congress in that they may think that the institution and its members are dysfunctional, but they usually think their own representative is doing a fairly good job. In Illinois, voters have increasingly heard about the clashes between Blagojevich, [Senate President Emil] Jones and [House Speaker Michael] Madigan and about how the power struggles of these three have translated into broader gridlock in state government. Voters, en masse, may not have yet taken things one step forward to consider the role of rank and file legislators and evaluate whether their own representatives have displayed any leadership at the Capitol.
I think that the state elections will largely be overshadowed by the federal elections this fall. To have really lively state elections, we need more truly competitive districts. Given the current map, few voters will have the opportunity to put their vote where their mouth is.
The great unknown in all of this and the possible exception is the vote on Con-Con. At this point, it seems that voter discontent with elected officials, more than any issues of a truly constitutional nature, is driving momentum for a constitutional convention. I don’t think that most voters know that the Con-Con question will be on the ballot, yet, but if we continue to have infighting, stalemate over the budget and allegations of (or indictments for) corruption, the idea of a convention may build momentum as we move into the fall election season. Clearly, voters are frustrated. And the expression of this frustration may be expressed in the populist sentiment that the people should wrest control of government and build in mechanisms that ensure accountability and responsiveness through a convention.
Q: The survey seems to indicate that the public thinks it would help to target lobbyists with more disclosure laws. Is that the next step for Illinois?
Sixty-one percent of respondents felt that greater lobbyist disclosure would make a large difference, with an additional 27 percent believing it would make some difference. Throughout the poll, we saw a desire for greater transparency and the belief that this would heighten accountability. I think that those polled understand that the regulation of lobbyists is an important part of the equation. Currently the state requires less disclosure from lobbyists than either Chicago or Cook County. Strengthening the Lobbyist Disclosure Act and introducing some real enforcement of the law is a practical next step and one with deep public support.
Thursday, July 03, 2008
Relief with a touch of uncertainty
Note: The following was written by Tony Hamelin, graduate assistant for Illinois Issues magazine, and Bethany Jaeger
No. We’re not talking about state employees. They're still wondering whether they'll get their paychecks on time this month. We’re talking about scientists in northern Illinois who might breathe a sigh of relief now that more than $30 million in federal aid is slated to rescue Fermilab and Argonne National Laboratory from massive budget cuts and layoffs by the end of the year. Federal funding for the next federal fiscal year, however, is still murky.
Fermi National Laboratory in Batavia is, as Illinois Issues contributor Dan Vock writes in a May story, “the nation’s premier site for particle physics research.” He adds, “It is, in fact, the best place in the world for scientists to study the building blocks of the universe under conditions that mimic the immediate aftermath of the Big Bang.” Scientists at Argonne National Laboratory in Lemont research a broad range of sciences related to engineering and technology.
On June 30, President George Bush approved a $162 billion package that would help supplement the facilities. On Wednesday, U.S. Sen. Dick Durbin, a Springfield Democrat, and U.S. Reps. Judy Biggert, a Hinsdale Republican, and Bill Foster, a Geneva Democrat and former Fermilab scientist who is filling the vacated seat by former U.S. House Speaker Dennis Hastert, were in Batavia to announce more than $29.5 million for FermiLab and $7.5 million for Argonne.
As Vock reported in Illinois Issues magazine, May, page 31 (his article is available in print only), Fermilab faced a $52 million cut and was under pressure to layoff about 200 employees and slow down research, symptoms of larger budget problems at the U.S. Department of Energy. Argonne faced a $21 million cut.
No. We’re not talking about state employees. They're still wondering whether they'll get their paychecks on time this month. We’re talking about scientists in northern Illinois who might breathe a sigh of relief now that more than $30 million in federal aid is slated to rescue Fermilab and Argonne National Laboratory from massive budget cuts and layoffs by the end of the year. Federal funding for the next federal fiscal year, however, is still murky.
Fermi National Laboratory in Batavia is, as Illinois Issues contributor Dan Vock writes in a May story, “the nation’s premier site for particle physics research.” He adds, “It is, in fact, the best place in the world for scientists to study the building blocks of the universe under conditions that mimic the immediate aftermath of the Big Bang.” Scientists at Argonne National Laboratory in Lemont research a broad range of sciences related to engineering and technology.
On June 30, President George Bush approved a $162 billion package that would help supplement the facilities. On Wednesday, U.S. Sen. Dick Durbin, a Springfield Democrat, and U.S. Reps. Judy Biggert, a Hinsdale Republican, and Bill Foster, a Geneva Democrat and former Fermilab scientist who is filling the vacated seat by former U.S. House Speaker Dennis Hastert, were in Batavia to announce more than $29.5 million for FermiLab and $7.5 million for Argonne.
As Vock reported in Illinois Issues magazine, May, page 31 (his article is available in print only), Fermilab faced a $52 million cut and was under pressure to layoff about 200 employees and slow down research, symptoms of larger budget problems at the U.S. Department of Energy. Argonne faced a $21 million cut.
Wednesday, July 02, 2008
It's going to be close
Two special sessions next week, called by Gov. Rod Blagojevich this afternoon, is unlikely to solve the state’s pending budget problem. And GOP members have said they think the ongoing budget debate between the governor and Democratic leaders is setting up a proposal by House Democrats to increase the state income tax after the November elections. While Speaker Michael Madigan said this spring that some tough decisions will have to be made and that it could include some "pain," no income tax proposal is in sight.
But time is dwindling. The new fiscal year started Tuesday, and a new operating budget would have to be enacted by about July 10 or 11 before more than 1,000 state employees and some service providers would risk not getting paid on time. Although the General Assembly will be called back to Springfield July 9 to address what the governor says is a $2 billion deficit in the state budget, it’s unlikely the House will follow the governor’s wishes of approving a string of revenue-generating ideas. That leaves little time for the governor to act, including cutting program funding and erasing increased funding for, say, higher education.
Kelley Quinn, spokeswoman for the governor's budget office, said in an e-mail, "The governor has said there will not be a state shutdown."
That decreases the likelihood that he would veto the entire state budget, which would prove to be an popular choice. Legislators would have to spend the rest of the summer recreating a spending plan and delaying state payments until they struck a deal.
The governor wants the House to approve measures already approved by the Senate, including a huge capital plan for state construction projects that also would free up money for the state’s operating budget. House Republicans would definitely support a capital plan, said David Dring, spokesman for House Minority Leader Tom Cross. The problem is that the plan on the table would rely on a large expansion of gaming, the privatization of the Illinois Lottery and a bonding scheme. All three are unpopular with many House Democrats.
Their caucus leaders also repeatedly have said there isn’t enough support for two other cash-producing ideas: 1) floating $16 billion on pension bonds to restructure the state’s long-term debt of the five public employee pension systems, which also would free up about $500 million in cash, and 2) sweeping about another $500 million from dedicated funds that otherwise would be considered “surplus” at the end of the year.
State Rep. Gary Hannig, a Democratic budget negotiator from Litchfield, previously said that he thinks it would make more sense for the governor to use his veto pen to cut some of the spending out of the bloated budget himself, and then the legislature could come back in the fall to reassess the actual size of the deficit and the need to plug any holes.
The governor, however, doesn’t like that idea. He said Wednesday that if the House fails to approve the revenue ideas on July 9, then he plans to call legislators back July 10, as well. If they still fail to follow his wishes, then he’ll have to make those budget cuts himself.
But time is dwindling. The new fiscal year started Tuesday, and a new operating budget would have to be enacted by about July 10 or 11 before more than 1,000 state employees and some service providers would risk not getting paid on time. Although the General Assembly will be called back to Springfield July 9 to address what the governor says is a $2 billion deficit in the state budget, it’s unlikely the House will follow the governor’s wishes of approving a string of revenue-generating ideas. That leaves little time for the governor to act, including cutting program funding and erasing increased funding for, say, higher education.
Kelley Quinn, spokeswoman for the governor's budget office, said in an e-mail, "The governor has said there will not be a state shutdown."
That decreases the likelihood that he would veto the entire state budget, which would prove to be an popular choice. Legislators would have to spend the rest of the summer recreating a spending plan and delaying state payments until they struck a deal.
The governor wants the House to approve measures already approved by the Senate, including a huge capital plan for state construction projects that also would free up money for the state’s operating budget. House Republicans would definitely support a capital plan, said David Dring, spokesman for House Minority Leader Tom Cross. The problem is that the plan on the table would rely on a large expansion of gaming, the privatization of the Illinois Lottery and a bonding scheme. All three are unpopular with many House Democrats.
Their caucus leaders also repeatedly have said there isn’t enough support for two other cash-producing ideas: 1) floating $16 billion on pension bonds to restructure the state’s long-term debt of the five public employee pension systems, which also would free up about $500 million in cash, and 2) sweeping about another $500 million from dedicated funds that otherwise would be considered “surplus” at the end of the year.
State Rep. Gary Hannig, a Democratic budget negotiator from Litchfield, previously said that he thinks it would make more sense for the governor to use his veto pen to cut some of the spending out of the bloated budget himself, and then the legislature could come back in the fall to reassess the actual size of the deficit and the need to plug any holes.
The governor, however, doesn’t like that idea. He said Wednesday that if the House fails to approve the revenue ideas on July 9, then he plans to call legislators back July 10, as well. If they still fail to follow his wishes, then he’ll have to make those budget cuts himself.
Friday, June 27, 2008
Transportation jobs still in limbo
By Bethany Jaeger
The hype over moving an Illinois Department of Transportation building from Springfield to southern Illinois goes beyond the roughly 110 jobs at stake. It begs the question whether the administration will be sincere in following a statutory process for closing state facilities and whether politics will overshadow policy in the decision.
The governor announced this afternoon that he intends to move the department’s Division of Traffic Safety from Springfield to Harrisburg in Saline County. The press release says the move would save $12.8 million over the next decade, while allowing much-needed economic development in southern Illinois. Several local officials, on the other hand, argue that there are numerous options for cheaper office space in Springfield and no reason to move the workers, who travel throughout the state for their work, away from the centrally located city.
The governor made it sound as though the move was final, but there’s a process that must take place under state law before the state can close a facility. Skeptics don’t buy the logic and question the motivation. Whether politics or cost-savings are behind the move, it’s the process that deserves attention.
The public body in charge of overseeing that process is the bipartisan legislative Commission on Government Forecasting and Accountability. Dan Long, executive director of the oversight panel, says the State Facilities Closure Act is pretty clear: “No action may be taken to implement the recommendation for closure of a State facility until 50 days after the filing of any required recommendation.”
The administration has to file its recommendation to close the Springfield facility by July 1. That hadn’t happened by Friday morning, even though the governor officially announced Harrisburg would receive the IDOT Division of Traffic Safety shortly after. An IDOT spokesman said the intent is to file the necessary paperwork by the deadline. A public hearing has to be held, currently scheduled for July 31 in Springfield. Then the administration can’t actually close the Springfield facility for 50 days, which lands on September 11. The governor’s press release says the move would take six to nine months.
“If they’re acting already to move before the 50 days after the recommendation’s filed, I think it’s a violation of the act,” Long said. If that happens: “I suppose someone could go to court and challenge it.”
A legal challenge could come from anyone from the commission itself, to the legislators who serve on the panel, to the legislators who represent Springfield, to the public employee unions that represent the IDOT employees.
The American Federation of State, County and Municipal Employees Council 31 represents the 110 of the workers affected by the move, according to spokesman Anders Lindall. Management would remain in Springfield. Lindall said he won’t speculate about the administration’s intent but did say, “We’re troubled by the way this entire process has proceeded so far.”
He compared the move to previous attempts to close Stateville Correctional Center in Joliet and another correctional center in Pontiac. “What’s common to each of them is that it seems very clear that there’s no logic or planning or sound policy behind any of them. Whether it’s political or whether it’s meant as a threat, I don’t know. But I do know that we don’t think it’s appropriate for anyone to threaten people’s lives and livelihoods, to threaten their jobs. And that’s what’s happening here.”
One political undertone involves the ongoing negotiations between AFSCME and the administration. They have to agree on a contract that spells out the amount state employees make and the amount they have to pay for health care and retirement benefits for the next four years. Threatening any state employee jobs could be perceived as a threat to compromise — or else.
Another political undertone involves the legislators whose districts would lose the Springfield jobs. The move first was announced the day after Springfield Sen. Larry Bomke, a Republican, voted in support of a measure that would have allowed the public to decide whether to recall public officials, commonly seen as a swipe against Gov. Rod Blagojevich. Bomke said the motivation seems clear to him: Retribution for the recall vote.
“I don’t think [the governor] likes Springfield,” he said. “I don’t think Springfield cares much about him.”
But Bomke said he felt skeptical that the move will actually happen. “This governor has a tendency to make announcements and then not follow through. So I’m hopeful this will be another case of that.”
Rep. Rich Brauer, a Petersburg Republican, described the plan as an “ill-informed idea that should be dropped,” as it would move some data entry employees with disabilities away from their homes and potentially affect their health care options. But, he said, “Unfortunately, the process isn’t binding. It’s going to take public opinion to change the fact that he has a lot of leeway on where he wants [to station them] and the fact that state government is here in Springfield.”
The question is whether the process will work as intended. After the public hearing, the Commission on Government Forecasting and Accountability has to review the information gathered and issue a recommendation about whether to close the facility and move the jobs. The commission’s opinion, as Brauer pointed out, is not binding. The governor could still move the jobs. But in the past, the governor has followed the commission’s recommendations.
The governor’s press office did not return repeated phone calls or an e-mail.
Bomke said the governor has thumbed his nose at the law before (mainly in his push for health care expansions), and this time also would come with consequences. “If he does, then it gives us clear grounds to sue him,” Bomke said.
Would he do that? “Absolutely. In a heartbeat.”
Note: The State Journal-Register posted this article saying IDOT employees who don't want to move to Harrisburg would be offered same-level jobs within the agency.
The hype over moving an Illinois Department of Transportation building from Springfield to southern Illinois goes beyond the roughly 110 jobs at stake. It begs the question whether the administration will be sincere in following a statutory process for closing state facilities and whether politics will overshadow policy in the decision.
The governor announced this afternoon that he intends to move the department’s Division of Traffic Safety from Springfield to Harrisburg in Saline County. The press release says the move would save $12.8 million over the next decade, while allowing much-needed economic development in southern Illinois. Several local officials, on the other hand, argue that there are numerous options for cheaper office space in Springfield and no reason to move the workers, who travel throughout the state for their work, away from the centrally located city.
The governor made it sound as though the move was final, but there’s a process that must take place under state law before the state can close a facility. Skeptics don’t buy the logic and question the motivation. Whether politics or cost-savings are behind the move, it’s the process that deserves attention.
The public body in charge of overseeing that process is the bipartisan legislative Commission on Government Forecasting and Accountability. Dan Long, executive director of the oversight panel, says the State Facilities Closure Act is pretty clear: “No action may be taken to implement the recommendation for closure of a State facility until 50 days after the filing of any required recommendation.”
The administration has to file its recommendation to close the Springfield facility by July 1. That hadn’t happened by Friday morning, even though the governor officially announced Harrisburg would receive the IDOT Division of Traffic Safety shortly after. An IDOT spokesman said the intent is to file the necessary paperwork by the deadline. A public hearing has to be held, currently scheduled for July 31 in Springfield. Then the administration can’t actually close the Springfield facility for 50 days, which lands on September 11. The governor’s press release says the move would take six to nine months.
“If they’re acting already to move before the 50 days after the recommendation’s filed, I think it’s a violation of the act,” Long said. If that happens: “I suppose someone could go to court and challenge it.”
A legal challenge could come from anyone from the commission itself, to the legislators who serve on the panel, to the legislators who represent Springfield, to the public employee unions that represent the IDOT employees.
The American Federation of State, County and Municipal Employees Council 31 represents the 110 of the workers affected by the move, according to spokesman Anders Lindall. Management would remain in Springfield. Lindall said he won’t speculate about the administration’s intent but did say, “We’re troubled by the way this entire process has proceeded so far.”
He compared the move to previous attempts to close Stateville Correctional Center in Joliet and another correctional center in Pontiac. “What’s common to each of them is that it seems very clear that there’s no logic or planning or sound policy behind any of them. Whether it’s political or whether it’s meant as a threat, I don’t know. But I do know that we don’t think it’s appropriate for anyone to threaten people’s lives and livelihoods, to threaten their jobs. And that’s what’s happening here.”
One political undertone involves the ongoing negotiations between AFSCME and the administration. They have to agree on a contract that spells out the amount state employees make and the amount they have to pay for health care and retirement benefits for the next four years. Threatening any state employee jobs could be perceived as a threat to compromise — or else.
Another political undertone involves the legislators whose districts would lose the Springfield jobs. The move first was announced the day after Springfield Sen. Larry Bomke, a Republican, voted in support of a measure that would have allowed the public to decide whether to recall public officials, commonly seen as a swipe against Gov. Rod Blagojevich. Bomke said the motivation seems clear to him: Retribution for the recall vote.
“I don’t think [the governor] likes Springfield,” he said. “I don’t think Springfield cares much about him.”
But Bomke said he felt skeptical that the move will actually happen. “This governor has a tendency to make announcements and then not follow through. So I’m hopeful this will be another case of that.”
Rep. Rich Brauer, a Petersburg Republican, described the plan as an “ill-informed idea that should be dropped,” as it would move some data entry employees with disabilities away from their homes and potentially affect their health care options. But, he said, “Unfortunately, the process isn’t binding. It’s going to take public opinion to change the fact that he has a lot of leeway on where he wants [to station them] and the fact that state government is here in Springfield.”
The question is whether the process will work as intended. After the public hearing, the Commission on Government Forecasting and Accountability has to review the information gathered and issue a recommendation about whether to close the facility and move the jobs. The commission’s opinion, as Brauer pointed out, is not binding. The governor could still move the jobs. But in the past, the governor has followed the commission’s recommendations.
The governor’s press office did not return repeated phone calls or an e-mail.
Bomke said the governor has thumbed his nose at the law before (mainly in his push for health care expansions), and this time also would come with consequences. “If he does, then it gives us clear grounds to sue him,” Bomke said.
Would he do that? “Absolutely. In a heartbeat.”
Note: The State Journal-Register posted this article saying IDOT employees who don't want to move to Harrisburg would be offered same-level jobs within the agency.
Thursday, June 26, 2008
Campaign finance law ruled unconstitutional
By Patrick O’Brien
Candidates for federal office who are running against deep-pocketed opponents could face tougher odds after the U.S. Supreme Court struck down a key piece of campaign finance law today.
In north central Illinois, the race for Congress in the 14th District could be affected.
Jim Oberweis, the Republican candidate, already donated more than $1.7 million to his own campaign through the end of March. Oberweis previously self-funded his campaigns for elected office. The Sugar Grove resident runs a family-founded dairy company and an investment firm.
His opponent, Democrat Bill Foster of Geneva, donated more than $122,000 to his own campaign. Foster is a scientist who worked at Fermilab, as well as a businessman who helps run a company that makes theater lighting equipment.
The federal law previously allowed opponents who faced self-funded candidates to exceed federal limits for the amount individuals could donate to their political campaigns.
The 5-4 majority, represented by Justice Antonin Scalia, said the law “impermissibly burdens the 1st Amendment rights” of candidates to use their own money as political speech. Previous campaign finance laws also have been ruled invalid based on 1st Amendment arguments.
Not everyone agrees that the ruling automatically gives self-funding candidates a big edge, however.
“Regardless of how substantially a candidate self-funds, the voters still have to like what they’re hearing,” said professor Ron Michaelson, former director of the Illinois State Board of Elections. He currently lectures on campaign finance at the University of Illinois at Springfield.
He said he believes the “millionaires amendment” — part of the 2002 reform package sponsored by U.S. Sen. John McCain, this year’s Republican presidential nominee — was designed to limit the amount of money spent on federal political campaigns. He said it was a step in the right direction.
“I think it’s unfortunate. The amendment was an attempt to try to level the playing field,” he said.
The ruling likely will affect races for Congress only, as the amount of money needed to self-finance presidential campaigns is now in the hundreds of millions of dollars.
Michaelson cautions that voter resentment of candidates who may appear to be trying to purchase higher office may backfire.
The ruling, coupled with U.S. Sen. Barack Obama’s decision not to take $85 million in federal funds to limit his campaign’s spending in the presidential election, will bring campaign finance reform to the forefront this year, Michaelson said.
Obama defended his decision by saying the finance system was broken. He has said little during his campaign about reforming the system.
“If Obama’s elected, we’ll see how serious he is about the issue,” Michaelson said.
In another race for Congress ...
By Bethany Jaeger
Comptroller Dan Hynes endorsed Colleen Callahan, a Democrat, for the 18th Congressional District today in Springfield. At a press conference in the AFL-CIO building, Hynes said he supports Callahan, who is a longtime farm reporter for radio and television, in her race against state Republican Rep. Aaron Schock of Peoria. The district has long been held by Republicans.
Both Schock and Callahan say they grew up on farms and formed a hard work ethic. Schock has served on his local school board and represented the 92nd House District for two years, proving to be a strong political fundraiser. Three months ago, his campaign finance report shows he raised more than $1 million and had about $188,000 cash on hand. (See the report by selecting his name in this pull-down menu.) See more about Schock and his race against Callahan in the April Illinois Issues magazine.
Callahan has less money and says she has never worked as a public official, but she recently was named as one of 20 “emerging races” by the Democratic Congressional Campaign Committee. That doesn’t guarantee, however, that the national party will flood her campaign with financial support. She expects her June 30 campaign finance report to show about $250,000 in contributions and about $130,000 and $140,000 cash on hand, although numbers could change between now and June 30. See her March report by selecting her as a candidate.
“I am a candidate who didn’t just dip my toe in the water here. I went right to the high dive in my efforts to serve our district and our country,” she said this morning. “This being a new process for me, I was told at the beginning and am learning that typically, the national party money from either party doesn’t typically come until later in the campaign.”
“Money begets money,” she added.
What-ifs
By Bethany Jaeger
While in Springfield, Hynes also addressed the state budget or lack thereof and sent a letter to legislative leaders and constitutional officers outlining what would happen if they failed to enact a state budget by July 10, more than a week after the new fiscal year begins.
The General Assembly approved a budget that Gov. Rod Blagojevich says is unbalanced by about $2 billion. He threatened to cut $1.5 billion if the House didn’t approve two revenue ideas that already passed the Senate. Expect to find out in the next couple of weeks whether the governor will go through with the cuts or call legislators back in a special session in an attempt to force them to vote on new revenue ideas to plug the hole.
If revenue ideas failed and the budget remains unbalanced and unsigned by July 10, Hynes says, first, about 4,900 state employees would be in jeopardy of not getting paid on time. Tens of thousands more would be at risk the longer the budget remains unresolved.
Second, the state couldn’t pay its other bills that reimburse health care providers and other social service providers. Most people focus on the payroll because they have a deadline and a more tangible effect, Hynes said, “but every day we don’t have a budget, tens of millions of dollars don’t go out the door and don’t go into businesses all over Illinois, which has a real impact.”
He called on the governor to lead and the legislative leaders, particularly House Speaker Michael Madigan, to do what they should have done months ago and sit down together to negotiate an agreed budget. (The leaders did meet, and Madigan did send his majority leader, Rep. Barbara Flynn Currie, in his place.)
“We are now in a game of chicken,” Hynes said. “We are now basically in a staring contest to see who blinks first. And the ones who are going to get hurt in this contest are tens of thousands, if not hundreds of thousands of vulnerable, innocent people.”
Candidates for federal office who are running against deep-pocketed opponents could face tougher odds after the U.S. Supreme Court struck down a key piece of campaign finance law today.
In north central Illinois, the race for Congress in the 14th District could be affected.
Jim Oberweis, the Republican candidate, already donated more than $1.7 million to his own campaign through the end of March. Oberweis previously self-funded his campaigns for elected office. The Sugar Grove resident runs a family-founded dairy company and an investment firm.
His opponent, Democrat Bill Foster of Geneva, donated more than $122,000 to his own campaign. Foster is a scientist who worked at Fermilab, as well as a businessman who helps run a company that makes theater lighting equipment.
The federal law previously allowed opponents who faced self-funded candidates to exceed federal limits for the amount individuals could donate to their political campaigns.
The 5-4 majority, represented by Justice Antonin Scalia, said the law “impermissibly burdens the 1st Amendment rights” of candidates to use their own money as political speech. Previous campaign finance laws also have been ruled invalid based on 1st Amendment arguments.
Not everyone agrees that the ruling automatically gives self-funding candidates a big edge, however.
“Regardless of how substantially a candidate self-funds, the voters still have to like what they’re hearing,” said professor Ron Michaelson, former director of the Illinois State Board of Elections. He currently lectures on campaign finance at the University of Illinois at Springfield.
He said he believes the “millionaires amendment” — part of the 2002 reform package sponsored by U.S. Sen. John McCain, this year’s Republican presidential nominee — was designed to limit the amount of money spent on federal political campaigns. He said it was a step in the right direction.
“I think it’s unfortunate. The amendment was an attempt to try to level the playing field,” he said.
The ruling likely will affect races for Congress only, as the amount of money needed to self-finance presidential campaigns is now in the hundreds of millions of dollars.
Michaelson cautions that voter resentment of candidates who may appear to be trying to purchase higher office may backfire.
The ruling, coupled with U.S. Sen. Barack Obama’s decision not to take $85 million in federal funds to limit his campaign’s spending in the presidential election, will bring campaign finance reform to the forefront this year, Michaelson said.
Obama defended his decision by saying the finance system was broken. He has said little during his campaign about reforming the system.
“If Obama’s elected, we’ll see how serious he is about the issue,” Michaelson said.
In another race for Congress ...
By Bethany Jaeger
Comptroller Dan Hynes endorsed Colleen Callahan, a Democrat, for the 18th Congressional District today in Springfield. At a press conference in the AFL-CIO building, Hynes said he supports Callahan, who is a longtime farm reporter for radio and television, in her race against state Republican Rep. Aaron Schock of Peoria. The district has long been held by Republicans.
Both Schock and Callahan say they grew up on farms and formed a hard work ethic. Schock has served on his local school board and represented the 92nd House District for two years, proving to be a strong political fundraiser. Three months ago, his campaign finance report shows he raised more than $1 million and had about $188,000 cash on hand. (See the report by selecting his name in this pull-down menu.) See more about Schock and his race against Callahan in the April Illinois Issues magazine.
Callahan has less money and says she has never worked as a public official, but she recently was named as one of 20 “emerging races” by the Democratic Congressional Campaign Committee. That doesn’t guarantee, however, that the national party will flood her campaign with financial support. She expects her June 30 campaign finance report to show about $250,000 in contributions and about $130,000 and $140,000 cash on hand, although numbers could change between now and June 30. See her March report by selecting her as a candidate.
“I am a candidate who didn’t just dip my toe in the water here. I went right to the high dive in my efforts to serve our district and our country,” she said this morning. “This being a new process for me, I was told at the beginning and am learning that typically, the national party money from either party doesn’t typically come until later in the campaign.”
“Money begets money,” she added.
What-ifs
By Bethany Jaeger
While in Springfield, Hynes also addressed the state budget or lack thereof and sent a letter to legislative leaders and constitutional officers outlining what would happen if they failed to enact a state budget by July 10, more than a week after the new fiscal year begins.
The General Assembly approved a budget that Gov. Rod Blagojevich says is unbalanced by about $2 billion. He threatened to cut $1.5 billion if the House didn’t approve two revenue ideas that already passed the Senate. Expect to find out in the next couple of weeks whether the governor will go through with the cuts or call legislators back in a special session in an attempt to force them to vote on new revenue ideas to plug the hole.
If revenue ideas failed and the budget remains unbalanced and unsigned by July 10, Hynes says, first, about 4,900 state employees would be in jeopardy of not getting paid on time. Tens of thousands more would be at risk the longer the budget remains unresolved.
Second, the state couldn’t pay its other bills that reimburse health care providers and other social service providers. Most people focus on the payroll because they have a deadline and a more tangible effect, Hynes said, “but every day we don’t have a budget, tens of millions of dollars don’t go out the door and don’t go into businesses all over Illinois, which has a real impact.”
He called on the governor to lead and the legislative leaders, particularly House Speaker Michael Madigan, to do what they should have done months ago and sit down together to negotiate an agreed budget. (The leaders did meet, and Madigan did send his majority leader, Rep. Barbara Flynn Currie, in his place.)
“We are now in a game of chicken,” Hynes said. “We are now basically in a staring contest to see who blinks first. And the ones who are going to get hurt in this contest are tens of thousands, if not hundreds of thousands of vulnerable, innocent people.”
Wednesday, June 25, 2008
Illinois targets mortgage lender
By Patrick O’Brien
Illinois is the first state to sue Countrywide Financial, the nation’s largest mortgage lender, for its role in the current foreclosure crisis.
The lawsuit, filed by Illinois Attorney General Lisa Madigan in Cook County today, alleges that the company used “deceptive practices” to lure borrowers into risky subprime loans with high interest rates. It also says the company “loosened the standards for selling its products,” ignoring whether prospective borrowers could repay the loan.
The suit says the company responded to signs that its mortgage business was unstable by making more risky loans and accelerating the practice of ignoring borrowers’ real financial situations.
The company’s practices were particularly harmful to Chicago and the surrounding counties, the suit says.
The Chicago area had the most subprime loans of any metropolitan area in the country, according to a 2006 study by the Chicago Reporter, an investigative magazine. And Countrywide held more of those loans than any other lender. The Chicago area also has one of the highest foreclosure rates in the country.
The attorney general also says her office has received more than 200 complaints about the company since 2005.
In early 2007, the company issued nearly $8 billion in risky subprime loans, which generally are given to borrowers with poorer credit histories and lower incomes than those given standard loans.
Countrywide’s promotional materials on its Web site tout the bank as a leading lender to those with “less than perfect credit.”
The company is currently the subject of lawsuits by former employees and customers, as well as a federal investigation.
Bank of America actually acquired the company in a $4 billion deal today, as approved by shareholders, and it has promised to tighten lending standards.
Countrywide did not return repeated phone calls.
State employee update
By Bethany Jaeger
The largest public employee union, the American Federation for State, County and Municipal Employees Council 31, is requesting a mediator to help bring closure to about 10 months of negotiations with Gov. Rod Blagojevich’s administration. The union represents about 35,000 state employees and held a massive rally in Springfield earlier this week, increasing attention that the union opposes a contract with the state if it were to increase the cost of employees’ health care and retirement benefits.
According to the union, the administration proposes a four-year contract that would do just that without a wage increase.
The existing AFSCME contract is set to expire June 30. The administration is not commenting on negotiations but confirmed AFSCME’s statement that the existing contract will remain active as a mediator steps into negotiations.
Anders Lindall, spokesman for the union, said the two sides first have to agree on the identity of the mediator, who would be an independent third party without a vested interest in either side. While mediators are common in other labor negotiations, Lindall said this is the first time in 10 contracts with the state that the union has had to request a mediator.
Illinois is the first state to sue Countrywide Financial, the nation’s largest mortgage lender, for its role in the current foreclosure crisis.
The lawsuit, filed by Illinois Attorney General Lisa Madigan in Cook County today, alleges that the company used “deceptive practices” to lure borrowers into risky subprime loans with high interest rates. It also says the company “loosened the standards for selling its products,” ignoring whether prospective borrowers could repay the loan.
The suit says the company responded to signs that its mortgage business was unstable by making more risky loans and accelerating the practice of ignoring borrowers’ real financial situations.
The company’s practices were particularly harmful to Chicago and the surrounding counties, the suit says.
The Chicago area had the most subprime loans of any metropolitan area in the country, according to a 2006 study by the Chicago Reporter, an investigative magazine. And Countrywide held more of those loans than any other lender. The Chicago area also has one of the highest foreclosure rates in the country.
The attorney general also says her office has received more than 200 complaints about the company since 2005.
In early 2007, the company issued nearly $8 billion in risky subprime loans, which generally are given to borrowers with poorer credit histories and lower incomes than those given standard loans.
Countrywide’s promotional materials on its Web site tout the bank as a leading lender to those with “less than perfect credit.”
The company is currently the subject of lawsuits by former employees and customers, as well as a federal investigation.
Bank of America actually acquired the company in a $4 billion deal today, as approved by shareholders, and it has promised to tighten lending standards.
Countrywide did not return repeated phone calls.
State employee update
By Bethany Jaeger
The largest public employee union, the American Federation for State, County and Municipal Employees Council 31, is requesting a mediator to help bring closure to about 10 months of negotiations with Gov. Rod Blagojevich’s administration. The union represents about 35,000 state employees and held a massive rally in Springfield earlier this week, increasing attention that the union opposes a contract with the state if it were to increase the cost of employees’ health care and retirement benefits.
According to the union, the administration proposes a four-year contract that would do just that without a wage increase.
The existing AFSCME contract is set to expire June 30. The administration is not commenting on negotiations but confirmed AFSCME’s statement that the existing contract will remain active as a mediator steps into negotiations.
Anders Lindall, spokesman for the union, said the two sides first have to agree on the identity of the mediator, who would be an independent third party without a vested interest in either side. While mediators are common in other labor negotiations, Lindall said this is the first time in 10 contracts with the state that the union has had to request a mediator.
Tuesday, June 24, 2008
Tennis, anyone?
Gov. Rod Blagojevich wants legislators to come back to Springfield to fill an estimated $2 billion budget hole before he has to chop $1.5 billion from the version they approved before adjourning last month. Given that the new fiscal year starts July 1, the state needs an operating budget in place by July 11; otherwise, the first round of about 5,000 state employees would start missing their paychecks by about the 15th of the month, according to the state comptroller’s office.
But neither chamber wants to or plans to come back before the regularly scheduled fall session, according to spokespeople for the two Democratic leaders.
The governor announced this afternoon in Chicago that the ball is in the House’s court. You should be able to download the governor’s announcement here. Without action, he would be forced to reduce funding for major state functions, including higher education and social services. Employees would have to be laid off or not hired. (See a more detailed list below.)
Blagojevich said the General Assembly has never passed a budget this far out of balance. “Needless to say, I cannot sign this budget. For me to sign this budget would be lying to the people of Illinois. It would be like writing a check that I know would bounce.”
He added that he prefers not to veto the entire budget and require the legislators to start over. He would rather urge “shared sacrifice,” or ask state agencies to reserve spending about $500 million already approved. To avoid making $1.5 billion in cuts, he said he wants the House to OK the two revenue-generating ideas already passed by the Senate.
The Senate approved a $16 billion borrowing plan that would change the annual payments to the state’s five public employee pension systems and free up about $500 million. Senators also advanced a measure that would allow the governor to transfer about $500 million from dedicated funds to other state operations. Both measures stalled in the House.
Complicating the future of the pension bond deal is that it would require a three-fifths majority whether voted on now or in January. That requires at least some Republican support. Rep. Gary Hannig, a Litchfield Democrat and budget negotiator, says given that the House GOP rejected all budget bills this spring, they would be “hard pressed to get a majority.”
“I think that there’s a view that we really shouldn’t be selling bonds for the purposes of budget relief.”
In addition, the state’s contribution to all five public employee pension systems could start to back off in two years. For the fiscal year that starts July 1, the state was scheduled to pay about $2.7 billion. Next year’s payment would exceed $3 billion. But then the “ramp up” backs off. “I think most legislators sort of feel like, ‘We’re almost there, why don’t we just finish it?’” Hannig says.
House Democrats could have some more support for sweeping dedicated funds, although Hannig adds it might make more sense to vote on that idea in January. Not only would the legislation require fewer votes to pass, but also the economy by then could reveal a more accurate picture of state tax revenues. Until this fall, all revenue estimates are just that — a guess about what the economy will be doing a year from now, he says. It would be appropriate to consider fund sweeps as “kind of a mid-course correction.”
He puts the ball in the governor’s court. “Unless he calls special session, we simply aren’t going to come back. We don’t have a mechanism to come back that I’m aware of.”
For a special session to be convened, either the governor or both legislative leaders must call one, according to the state Constitution. That’s unlikely, given the questionable future of the revenue ideas in the House right now. And the Senate Democrats’ spokeswoman says it’s “absolutely not” the desire to call a special session.
Patty Schuh, Senate Republican spokeswoman, describes the governor’s announcement as a “non-event.” But the House’s response could be newsworthy. “We’re concerned that Democrats are setting it up for a tax increase in the fall,” she says.
That door is open. If the governor made budget cuts, Hannig says: “More likely we’ll come back to November and try to renegotiate some of those things. But we have to figure out, ‘What are our priorities?’ Because I don’t know that there’s enough money in sweeps that we can restore everything. So maybe we say we restore education. Or maybe we override him in education and say, ‘Now we’ll find the money.’”
Where they would find the money is the looming question.
Potential budget cuts
By Patrick O’Brien
Here’s a partial list of where the governor said he would have to cut without major revenue tactics approved by the House by mid-July:
Health care would be hardest hit, with a $530 million reduction in payments to Medicare providers, increasing the average wait for payment to 90 days. Nursing homes also would lose $55 million in funding for home care providers. And $260 million for social services, including funding for autism, people with all types disabilities and domestic violence victims, also would be cut.
Another $106 million in funding for veterans would include eliminating a 40 bed, $6 million expansion at the LaSalle Veterans Home. See more here.
Mass transit would lose $255 million, causing the state to end discounted fares for students and people with disabilities in the Chicago region and to eliminate state support for Amtrak.
School construction projects would be slashed $150 million. Education program cuts of $110 million, which are limited almost exclusively to higher education for financial aid programs for the neediest college students and education for nurses and pharmacists.
The anti-violence CeaseFire program again would lose $6.25 million. See more here.
But neither chamber wants to or plans to come back before the regularly scheduled fall session, according to spokespeople for the two Democratic leaders.
The governor announced this afternoon in Chicago that the ball is in the House’s court. You should be able to download the governor’s announcement here. Without action, he would be forced to reduce funding for major state functions, including higher education and social services. Employees would have to be laid off or not hired. (See a more detailed list below.)
Blagojevich said the General Assembly has never passed a budget this far out of balance. “Needless to say, I cannot sign this budget. For me to sign this budget would be lying to the people of Illinois. It would be like writing a check that I know would bounce.”
He added that he prefers not to veto the entire budget and require the legislators to start over. He would rather urge “shared sacrifice,” or ask state agencies to reserve spending about $500 million already approved. To avoid making $1.5 billion in cuts, he said he wants the House to OK the two revenue-generating ideas already passed by the Senate.
The Senate approved a $16 billion borrowing plan that would change the annual payments to the state’s five public employee pension systems and free up about $500 million. Senators also advanced a measure that would allow the governor to transfer about $500 million from dedicated funds to other state operations. Both measures stalled in the House.
Complicating the future of the pension bond deal is that it would require a three-fifths majority whether voted on now or in January. That requires at least some Republican support. Rep. Gary Hannig, a Litchfield Democrat and budget negotiator, says given that the House GOP rejected all budget bills this spring, they would be “hard pressed to get a majority.”
“I think that there’s a view that we really shouldn’t be selling bonds for the purposes of budget relief.”
In addition, the state’s contribution to all five public employee pension systems could start to back off in two years. For the fiscal year that starts July 1, the state was scheduled to pay about $2.7 billion. Next year’s payment would exceed $3 billion. But then the “ramp up” backs off. “I think most legislators sort of feel like, ‘We’re almost there, why don’t we just finish it?’” Hannig says.
House Democrats could have some more support for sweeping dedicated funds, although Hannig adds it might make more sense to vote on that idea in January. Not only would the legislation require fewer votes to pass, but also the economy by then could reveal a more accurate picture of state tax revenues. Until this fall, all revenue estimates are just that — a guess about what the economy will be doing a year from now, he says. It would be appropriate to consider fund sweeps as “kind of a mid-course correction.”
He puts the ball in the governor’s court. “Unless he calls special session, we simply aren’t going to come back. We don’t have a mechanism to come back that I’m aware of.”
For a special session to be convened, either the governor or both legislative leaders must call one, according to the state Constitution. That’s unlikely, given the questionable future of the revenue ideas in the House right now. And the Senate Democrats’ spokeswoman says it’s “absolutely not” the desire to call a special session.
Patty Schuh, Senate Republican spokeswoman, describes the governor’s announcement as a “non-event.” But the House’s response could be newsworthy. “We’re concerned that Democrats are setting it up for a tax increase in the fall,” she says.
That door is open. If the governor made budget cuts, Hannig says: “More likely we’ll come back to November and try to renegotiate some of those things. But we have to figure out, ‘What are our priorities?’ Because I don’t know that there’s enough money in sweeps that we can restore everything. So maybe we say we restore education. Or maybe we override him in education and say, ‘Now we’ll find the money.’”
Where they would find the money is the looming question.
Potential budget cuts
By Patrick O’Brien
Here’s a partial list of where the governor said he would have to cut without major revenue tactics approved by the House by mid-July:
Health care would be hardest hit, with a $530 million reduction in payments to Medicare providers, increasing the average wait for payment to 90 days. Nursing homes also would lose $55 million in funding for home care providers. And $260 million for social services, including funding for autism, people with all types disabilities and domestic violence victims, also would be cut.
Another $106 million in funding for veterans would include eliminating a 40 bed, $6 million expansion at the LaSalle Veterans Home. See more here.
Mass transit would lose $255 million, causing the state to end discounted fares for students and people with disabilities in the Chicago region and to eliminate state support for Amtrak.
School construction projects would be slashed $150 million. Education program cuts of $110 million, which are limited almost exclusively to higher education for financial aid programs for the neediest college students and education for nurses and pharmacists.
The anti-violence CeaseFire program again would lose $6.25 million. See more here.
Monday, June 23, 2008
Seven days
By Bethany Jaeger
Illinois starts a new fiscal year in seven days. That means some new state laws take effect July 1. But also, for the first time in history, many public employees could have to work without a contract in place with the administration. Four years ago, the state’s largest public employee union, the American Federation of State, County and Municipal Employees Council 31, negotiated a contract with the administration that spells out how much employees make and how much they pay for such benefits as health care and retirement.
This year’s negotiations between union officials and Gov. Rod Blagojevich’s administration have stretched about seven months, potentially creating the first time that Illinois’ AFSCME Council 31 won’t have an agreement in place before the existing contract expires. “That alone shows the level of contentiousness and the distance between the parties is unprecedented,” says Anders Lindall, union spokesman.
The lion’s share of the disagreement is health care, he says, but it’s complicated by the sagging economy. “It’s higher health care costs, higher pension costs, coupled with pay increases that don’t even keep pace. And at a time when people are being socked at the gas pump, they’re being soaked at the grocery checkout and everywhere else for higher cost of living, to have health care and to have pension funds going through the roof, it’s not acceptable. It’s not [the making] of a fair contract agreement.”
Negotiations continue this week after a few thousand union supporters rallied at the Capitol today. Neither the administration nor union officials would comment on what happens if the contract expires before they reach an agreement. They would only say they’re continuing “good faith negotiations” and are mindful of each other’s concerns.
Local union leaders and members gathered at the Capitol wearing green T-shirts and waving signs that said, “Governor, don’t cut our health care.” Marion Murphy, caseworker for the Illinois Department of Human Services, AFSCME Local 2806, is on the bargaining committee and spoke during the rally. She cited Blagojevich’s priority to ensure all residents can access quality and affordable health care. “But I guess he forgot about us,” she said. “Why should we be left out in the cold? He’s got the All Kids program, but what about our kids?”
The number of vacancies also repeatedly came up, including the speech by Louis Volpi, president of AFSCME Local 1591 and employee of Tinley Park Mental Health Center and Howe Developmental Center. He said during the rally that the administration refuses to fill vacancies even though workers are forced to work overtime, as required by their contracts. His statements reflect a situation I wrote about in Illinois Issues magazine this month. We're waiting to get the actual number of vacancies from the Illinois Department of Human Services.
BUDGET WATCH
The state budget approved by the General Assembly May 31 hasn’t made it to the governor’s desk for review yet, preventing the governor from acting on solutions to what his office says is a $2 billion gap between spending and revenues. The legislature has until June 30 to send it over. Steve Brown, spokesman for House Speaker Michael Madigan, said it’s normal for such a huge bill to take the full 30 days allotted by law to process the legislation.
NEW STATE LAWS
By Patrick O’Brien
Also on July 1, some new state laws go into effect. A few examples follow. The full text of the laws and other information can be found at www.ilga.gov.
Minimum wage
SB 1268 (of the 94th General Assembly) The state’s minimum wage rises to $7.75 an hour beginning July 1. About 650,000 Illinoisans will see an increase, according to the governor’s office. The raise is part of a gradual increase of the minimum wage to $8.25 an hour by 2010.
Teen driving
SB 172 (Starts in third paragraph.) Student drivers will have to complete at least six hours of actual, on-the-street driving with a certified instructor when a new law goes into effect next week. It’s part of a reform package enacted last year to address accident rates among teen drivers. This portion of law eliminates the provision that allows students in high-school driver’s education classes to take a written exam after completing three hours of practice driving. It also removes current exemptions that allow the use of driving simulators and driving ranges as a substitute for street driving.
Home care pay increases
HB 4144 State home health care workers who provide housekeeping services will earn $1.70 an hour more beginning July 1, and the law also provides an additional $1.33 per hour for health care insurance for the workers. The total cost to the state is $64 million.
Truth in towing
SB 435 Any towing service that tows or removes a vehicle with the permission of the owner or person in control of the auto has to provide an estimated cost of towing. The document must be signed by both the tow truck driver and the driver of the vehicle.
Thursday, June 19, 2008
More people on the move and Medicaid
Abby Ottenhoff, Gov. Rod Blagojevich’s communications director based in Chicago, is resigning. She’s the third high-level employee in the governor’s office to step down within a month.
Deputy Gov. Sheila Nix resigned this month and was replaced by Bob Greenlee, a former chief of staff and deputy director of the governor’s budget office. Springfield-based spokeswoman Rebecca Rausch stepped down to join a St. Louis-based public relations firm and is replaced by Brian Williamsen, a former TV reporter in Springfield and in South Carolina.
Ottenhoff said in an e-mail that she plans to take some time off to travel and visit family and friends before returning to the professional world. She’s spent five years as the governor’s spokeswoman and previously was an aide to House Speaker Michael Madigan.
She’s replaced by Lucio Guerrero, deputy assessor at the Cook County assessor’s office since 2006. He also was a reporter, writing for the Chicago Sun-Times and its affiliate, the Post-Tribune in Indiana. He also worked for newspapers in Delaware and Florida, according to the governor’s office.
Transparency troubles
By Patrick O’Brien and Bethany Jaeger
The state auditor general’s office had a hard time getting timely and accurate fiscal information about a $1.2 billion Medicaid program overseen by the Illinois Department of Healthcare and Family Services, according to an audit released this week.
Meanwhile, the state is pursuing federal approval to implement a similar but larger Medicaid program that reimburses hospitals caring for the most needy patients.
The audit notes “untimely and inaccurate submission” of records regarding the program, referred to as a hospital assessment because hospitals pay a tax and then get back $3.6 billion from the federal government over three years. Those reimbursements were delayed last year as part of political infighting, but state officials agreed to borrow money to secure federal matching funds and pay hospitals last fall (see more here by scrolling down).
The problem, according to the audit, was a discrepancy over the appropriate way to record the complex transactions of the hospital assessment program. The audit also notes that the department delayed the reporting process by hiring private consultants, which eventually agreed with the auditor’s findings.
Annie Thompson, spokeswoman for the department, said hiring external consultants on such a complicated, $1.2 billion program is routine. Director Barry Maram also wrote in a letter to the auditor general: “Our overall concern is that a misinterpretation could be made that the assessment liability is a strain on state resources, when in fact there was no strain but instead a net gain to the state.” The department agreed with many of the auditor’s other findings.
The department previously has been criticized for “deficient” accounting practices, as noted by previous audits (here and here) and by Comptroller Dan Hynes. Regarding the most recent audit, Hynes said in an e-mail Thursday: “Accuracy and timeliness of fiscal information from state agencies is a critical concern affecting the state’s ability to produce official financial statements that portray the state’s fiscal profile and creditworthiness. That process is potentially jeopardized by the conditions noted by the auditor general.”
As for the future hospital assessment program, which is pending federal approval, the plan’s structure is more important than some bookkeeping concerns, said Sen. Dale Righter, a Mattoon Republican. “We don’t want to give the federal government excuses to deny the assessment. It is troubling.”
Deputy Gov. Sheila Nix resigned this month and was replaced by Bob Greenlee, a former chief of staff and deputy director of the governor’s budget office. Springfield-based spokeswoman Rebecca Rausch stepped down to join a St. Louis-based public relations firm and is replaced by Brian Williamsen, a former TV reporter in Springfield and in South Carolina.
Ottenhoff said in an e-mail that she plans to take some time off to travel and visit family and friends before returning to the professional world. She’s spent five years as the governor’s spokeswoman and previously was an aide to House Speaker Michael Madigan.
She’s replaced by Lucio Guerrero, deputy assessor at the Cook County assessor’s office since 2006. He also was a reporter, writing for the Chicago Sun-Times and its affiliate, the Post-Tribune in Indiana. He also worked for newspapers in Delaware and Florida, according to the governor’s office.
Transparency troubles
By Patrick O’Brien and Bethany Jaeger
The state auditor general’s office had a hard time getting timely and accurate fiscal information about a $1.2 billion Medicaid program overseen by the Illinois Department of Healthcare and Family Services, according to an audit released this week.
Meanwhile, the state is pursuing federal approval to implement a similar but larger Medicaid program that reimburses hospitals caring for the most needy patients.
The audit notes “untimely and inaccurate submission” of records regarding the program, referred to as a hospital assessment because hospitals pay a tax and then get back $3.6 billion from the federal government over three years. Those reimbursements were delayed last year as part of political infighting, but state officials agreed to borrow money to secure federal matching funds and pay hospitals last fall (see more here by scrolling down).
The problem, according to the audit, was a discrepancy over the appropriate way to record the complex transactions of the hospital assessment program. The audit also notes that the department delayed the reporting process by hiring private consultants, which eventually agreed with the auditor’s findings.
Annie Thompson, spokeswoman for the department, said hiring external consultants on such a complicated, $1.2 billion program is routine. Director Barry Maram also wrote in a letter to the auditor general: “Our overall concern is that a misinterpretation could be made that the assessment liability is a strain on state resources, when in fact there was no strain but instead a net gain to the state.” The department agreed with many of the auditor’s other findings.
The department previously has been criticized for “deficient” accounting practices, as noted by previous audits (here and here) and by Comptroller Dan Hynes. Regarding the most recent audit, Hynes said in an e-mail Thursday: “Accuracy and timeliness of fiscal information from state agencies is a critical concern affecting the state’s ability to produce official financial statements that portray the state’s fiscal profile and creditworthiness. That process is potentially jeopardized by the conditions noted by the auditor general.”
As for the future hospital assessment program, which is pending federal approval, the plan’s structure is more important than some bookkeeping concerns, said Sen. Dale Righter, a Mattoon Republican. “We don’t want to give the federal government excuses to deny the assessment. It is troubling.”
Wednesday, June 11, 2008
Summer heats up
Consider the context of a memo sent to Illinois Democratic candidates and incumbents that talks about beginning impeachment proceedings against Gov. Rod Blagojevich:
That campaign mode produced this memo, distributed by House Speaker Michael Madigan, who also is head of the Illinois Democratic Party. Madigan sent it to political candidates as “talking points” to give them background about impeachment-related questions that they can expect to hear from voters and reporters.
The 14-page memo reads as if the speaker has been marking every wrong step the governor has made since Day 1. And it advises candidates and incumbents to blame the governor for all of the state’s problems, although all four legislative leaders and the governor play a role in the political standoffs that affect state business.
The governor's office obviously wasn't pleased. It released this statement: "This is another example of the pettiness, silliness and backroom games that Speaker Madigan has been playing for months to prevent progress. We wish he would drop his behind-the-scenes maneuvering and come to the leaders' meetings. It is time for Speaker Madigan to join the rest of the legislative leaders who have been working with the governor to pass a capital bill that will put thousands of people to work."
The memo also advises candidates to say the speaker had nothing to do with their statements about impeachment. Steve Brown, Madigan’s spokesman, said that the memo intended to make it clear that the speaker is not going to take a position on impeachment. “He expects that he might be called on to be presiding officer if something proceeds, ” Brown said, but the memo also is intended to specify that neither Madigan nor his daughter, Illinois Attorney General Lisa Madigan, is involved.
House Minority Leader Tom Cross described that directive as a “scheme” for candidates and incumbents to lie to the press and to the public. “It’s funny how — and ironic that — trust is an issue. People keep throwing that word around; yet, this very document sets up a scheme to lie to all of us,” Cross said before a leaders’ meeting in the governor’s Chicago office this morning. (Because I’m based in Springfield, I listened to the Chicago audio available from Capitol Fax Blog.) While Cross said the memo wouldn’t necessarily distract from the ongoing negotiations for a state construction plan, he did say, “It’s just another part of the ping pong battle that is ignoring true needs of the state.”
Senate President Emil Jones Jr. also said it was a distraction from the need to enact a statewide construction plan.
Senate Minority Leader Frank Watson’s comments, however, sounded a bit more in tune with the intent of the memo. “We get a lot of questions from people throughout the state about the impeachment, so I don’t know if it was improper to send that out to candidates who are running for office,” he said, as heard through the Web. “They get a lot of questions, too. ‘What do you think about it?’ This just gave some answers. It might be something that we want to do because we do get a lot of questions, more and more all the time.”
Some points in the memo raise serious questions about whether the governor’s actions have negative consequences for the state, particularly the questions about federal investigations into his administration and about his intent to bypass the legislative process to advance an agenda. It also is useful for candidates, lawmakers, members of the public and reporters to understand the process of impeachment before legislators determine whether that’s the course to take.
So far, though, the impeachment memo only is framed as a political cheat sheet for candidates who wish to distance themselves from the governor. It does not mean the House will initiate proceedings to actually impeach the governor. At the same time, the speaker did say on the last night of the spring session that his legal counsel has done his own research to be “prepared.”
- The Illinois General Assembly adjourned on the constitutional deadline of May 31 with an approved but unbalanced budget.
- The operating budget is not set in stone, meaning state employees could be strung along this summer, as they were during last summer’s stalemate between leaders that resulted in 30-day budgets to keep the state operating.
- As lawmakers officially adjourned the spring session and left Springfield, they entered campaign mode to gear up for the November elections.
That campaign mode produced this memo, distributed by House Speaker Michael Madigan, who also is head of the Illinois Democratic Party. Madigan sent it to political candidates as “talking points” to give them background about impeachment-related questions that they can expect to hear from voters and reporters.
The 14-page memo reads as if the speaker has been marking every wrong step the governor has made since Day 1. And it advises candidates and incumbents to blame the governor for all of the state’s problems, although all four legislative leaders and the governor play a role in the political standoffs that affect state business.
The governor's office obviously wasn't pleased. It released this statement: "This is another example of the pettiness, silliness and backroom games that Speaker Madigan has been playing for months to prevent progress. We wish he would drop his behind-the-scenes maneuvering and come to the leaders' meetings. It is time for Speaker Madigan to join the rest of the legislative leaders who have been working with the governor to pass a capital bill that will put thousands of people to work."
The memo also advises candidates to say the speaker had nothing to do with their statements about impeachment. Steve Brown, Madigan’s spokesman, said that the memo intended to make it clear that the speaker is not going to take a position on impeachment. “He expects that he might be called on to be presiding officer if something proceeds, ” Brown said, but the memo also is intended to specify that neither Madigan nor his daughter, Illinois Attorney General Lisa Madigan, is involved.
House Minority Leader Tom Cross described that directive as a “scheme” for candidates and incumbents to lie to the press and to the public. “It’s funny how — and ironic that — trust is an issue. People keep throwing that word around; yet, this very document sets up a scheme to lie to all of us,” Cross said before a leaders’ meeting in the governor’s Chicago office this morning. (Because I’m based in Springfield, I listened to the Chicago audio available from Capitol Fax Blog.) While Cross said the memo wouldn’t necessarily distract from the ongoing negotiations for a state construction plan, he did say, “It’s just another part of the ping pong battle that is ignoring true needs of the state.”
Senate President Emil Jones Jr. also said it was a distraction from the need to enact a statewide construction plan.
Senate Minority Leader Frank Watson’s comments, however, sounded a bit more in tune with the intent of the memo. “We get a lot of questions from people throughout the state about the impeachment, so I don’t know if it was improper to send that out to candidates who are running for office,” he said, as heard through the Web. “They get a lot of questions, too. ‘What do you think about it?’ This just gave some answers. It might be something that we want to do because we do get a lot of questions, more and more all the time.”
Some points in the memo raise serious questions about whether the governor’s actions have negative consequences for the state, particularly the questions about federal investigations into his administration and about his intent to bypass the legislative process to advance an agenda. It also is useful for candidates, lawmakers, members of the public and reporters to understand the process of impeachment before legislators determine whether that’s the course to take.
So far, though, the impeachment memo only is framed as a political cheat sheet for candidates who wish to distance themselves from the governor. It does not mean the House will initiate proceedings to actually impeach the governor. At the same time, the speaker did say on the last night of the spring session that his legal counsel has done his own research to be “prepared.”
Wednesday, June 04, 2008
Rezko's guilty verdict affects many
Tony Rezko is immediately headed to jail after a jury found him guilty on 16 of 24 counts of federal corruption charges, including mail fraud, wire fraud and money laundering. He will serve time until his sentencing, scheduled for September 3.
The Wilmette businessman was a top fundraiser and unofficial adviser to Gov. Rod Blagojevich, who was mentioned in the 13-week trial as “Public Official A” but who has not been charged with any wrongdoing.
This will be the gift that keeps on giving for those who oppose Blagojevich, and it will have widespread implications for the governor, the state legislature and federal prosecutors.
For starters, Rezko’s guilty verdict damages the governor’s credibility when he says he wants to “improve” recently approved ethics legislation, says Kent Redfield, political science professor at the University of Illinois at Springfield and director of the Sunshine database for campaign contributions. He says the verdict heightens the chance that legislators would override any changes the governor makes to the ethics reform. (See more here.)
The verdict also makes it more likely that legislators will continue to talk about impeaching the governor. The state Constitution gives the Illinois House the power to investigate impeachment, which already has started behind the scenes to “be prepared,” said House Speaker Michael Madigan last week during a Statehouse news conference. “We’ve already done research on impeachment. Our attorney, Mr. [David] Ellis, is chock-full of conclusions.” The Senate would have to approve an impeachment by a two-thirds majority.
Even if no impeachment trial unfolds, Redfield says the Rezko verdict damages the governor’s credibility and makes him weaker politically, as more people could be willing to take him on or ignore him.
It also could get worse legally. The guilty verdict gives federal prosecutors, led by U.S. Attorney Patrick Fitzgerald, leverage when trying to negotiate with Rezko to see if he’ll cooperate with ongoing investigations involving the governor’s administration and political campaign. “They really weren’t going to convict or decide whether or not to indict the governor based on these specific convictions,” Redfield says. “This gives them leverage along with the other charges that Rezko hasn’t even been tried on yet to try and see if he’s willing to make a deal.”
Rezko received two different indictments on the same day in October 2006. The first, which led to today’s verdict, linked him to an intricate scheme of so-called pay-to-play politics between 2001 and 2004. He was found guilty on some of the charges that he collaborated with at least five other people to use political clout to influence two high-powered state boards, allowing him to collect illegal fees and force political campaign donations. But the jury found Rezko not guilty on one of the most serious charges of attempted extortion, or illegally acquiring extra money from a company seeking to do business with the state.
The second indictment made allegations of business fraud involving a pizza franchise. Redfield says prosecutors could use those allegations to pressure Rezko to cooperate before the trial of Chistopher Kelly airs some more dirty laundry this fall. Kelly, a close Blagojevich friend and former campaign manager, was indicted in December 2007 for tax fraud by allegedly hiding more than $1 million of income over five years.
Prosecutors’ case against Rezko relied on one of the governor’s appointees, Stuart Levine, as the star witness. Levine pleaded guilty to mail fraud and money laundering in October 2006, but his testimony during Rezko’s trial revealed long-term drug abuse and an unreliable memory. Fitzgerald said in a Chicago news conference, seen from media coverage available on the Web, that he would not comment on Levine, as he could be a witness in other proceedings.
Rezko’s attorneys intend to appeal, according to news accounts.
The governor held a Chicago news conference later this evening. Here's the statement we received from the governor's office and the statement Blagojevich read during the news conference:
The Wilmette businessman was a top fundraiser and unofficial adviser to Gov. Rod Blagojevich, who was mentioned in the 13-week trial as “Public Official A” but who has not been charged with any wrongdoing.
This will be the gift that keeps on giving for those who oppose Blagojevich, and it will have widespread implications for the governor, the state legislature and federal prosecutors.
For starters, Rezko’s guilty verdict damages the governor’s credibility when he says he wants to “improve” recently approved ethics legislation, says Kent Redfield, political science professor at the University of Illinois at Springfield and director of the Sunshine database for campaign contributions. He says the verdict heightens the chance that legislators would override any changes the governor makes to the ethics reform. (See more here.)
The verdict also makes it more likely that legislators will continue to talk about impeaching the governor. The state Constitution gives the Illinois House the power to investigate impeachment, which already has started behind the scenes to “be prepared,” said House Speaker Michael Madigan last week during a Statehouse news conference. “We’ve already done research on impeachment. Our attorney, Mr. [David] Ellis, is chock-full of conclusions.” The Senate would have to approve an impeachment by a two-thirds majority.
Even if no impeachment trial unfolds, Redfield says the Rezko verdict damages the governor’s credibility and makes him weaker politically, as more people could be willing to take him on or ignore him.
It also could get worse legally. The guilty verdict gives federal prosecutors, led by U.S. Attorney Patrick Fitzgerald, leverage when trying to negotiate with Rezko to see if he’ll cooperate with ongoing investigations involving the governor’s administration and political campaign. “They really weren’t going to convict or decide whether or not to indict the governor based on these specific convictions,” Redfield says. “This gives them leverage along with the other charges that Rezko hasn’t even been tried on yet to try and see if he’s willing to make a deal.”
Rezko received two different indictments on the same day in October 2006. The first, which led to today’s verdict, linked him to an intricate scheme of so-called pay-to-play politics between 2001 and 2004. He was found guilty on some of the charges that he collaborated with at least five other people to use political clout to influence two high-powered state boards, allowing him to collect illegal fees and force political campaign donations. But the jury found Rezko not guilty on one of the most serious charges of attempted extortion, or illegally acquiring extra money from a company seeking to do business with the state.
The second indictment made allegations of business fraud involving a pizza franchise. Redfield says prosecutors could use those allegations to pressure Rezko to cooperate before the trial of Chistopher Kelly airs some more dirty laundry this fall. Kelly, a close Blagojevich friend and former campaign manager, was indicted in December 2007 for tax fraud by allegedly hiding more than $1 million of income over five years.
Prosecutors’ case against Rezko relied on one of the governor’s appointees, Stuart Levine, as the star witness. Levine pleaded guilty to mail fraud and money laundering in October 2006, but his testimony during Rezko’s trial revealed long-term drug abuse and an unreliable memory. Fitzgerald said in a Chicago news conference, seen from media coverage available on the Web, that he would not comment on Levine, as he could be a witness in other proceedings.
Rezko’s attorneys intend to appeal, according to news accounts.
The governor held a Chicago news conference later this evening. Here's the statement we received from the governor's office and the statement Blagojevich read during the news conference:
Tony Rezko is a friend and was a supporter. On a personal level, I am deeply sad for what has happened to Tony. I am profoundly sad for his children and his wife Rita. My heart goes out to all of them. The jury’s decision is yet another reminder that ours is a system of government that is ruled by laws, and not by men. I respect the decision made by the jury. As for me, I will continue to get up every single day to work as hard as I possibly can for the people. Tomorrow I will meet with the legislative leaders so that we can balance the budget in a way that is fair and helps people. And I am working on passing a capital bill that will stimulate our economy and create more than 500,000 jobs.
Perspective piece
First, Illinois Issues magazine has a new Web site! It's exciting because we're able to post audio, video, slide shows and discussion boards. We're continuing to improve it, but we hope the new site serves as a portal to the resources citizens need to make their own decisions.
Second, take a break from Illinois politics and consider this. Today marks the 19th anniversary of a historic student movement in China, where a communist government cracked down on student protesters in what's called the Tiananmen Square massacre. The country has been gradually changing ever since, and one of our own former reporters offers perspective on the evolving political culture from the Chinese point of view and from the American point of view.
Wen Huang is from China and participated in the 1989 student movement, but he now lives in Chicago as a journalist and author. It's also interesting that he started his journalism training the United States as a Public Affairs Reporting graduate student at the University of Illinois at Springfield, and he interned for Illinois Issues magazine in 1990-1991. We feature him in the June magazine (the article is in print only).
Shortly after we sent the magazine to the printer, devastating earthquakes struck China. Huang wrote a personal essay about the China earthquake published in the Chicago Tribune in mid-May. He shares thoughts about how the country's response to the devastation completely differed from its response to a 1970's earthquake. According to Huang, China's communist leadership back then tried to cover up news about the damage to avoid foreign aid — they feared western interference within the country. The leadership's response this time around demonstrates a much more liberated and open form of government. “As much as I feel saddened by the earthquake, I take great comfort in the realization that China is no longer what it was in 1976,” Huang writes.
His words relate to the book he recently translated, The Corpse Walker, which is a collection of interviews that reveal how China's political transitions affected ordinary citizens. It was written by Liao Yiwu, who was at the epicenter of China's earthquake last month.
Huang pulled together some notes about Liao and e-mailed them to us. He included some of Liao's own diary entries about the earthquake, which we share here:
Second, take a break from Illinois politics and consider this. Today marks the 19th anniversary of a historic student movement in China, where a communist government cracked down on student protesters in what's called the Tiananmen Square massacre. The country has been gradually changing ever since, and one of our own former reporters offers perspective on the evolving political culture from the Chinese point of view and from the American point of view.
Wen Huang is from China and participated in the 1989 student movement, but he now lives in Chicago as a journalist and author. It's also interesting that he started his journalism training the United States as a Public Affairs Reporting graduate student at the University of Illinois at Springfield, and he interned for Illinois Issues magazine in 1990-1991. We feature him in the June magazine (the article is in print only).
Shortly after we sent the magazine to the printer, devastating earthquakes struck China. Huang wrote a personal essay about the China earthquake published in the Chicago Tribune in mid-May. He shares thoughts about how the country's response to the devastation completely differed from its response to a 1970's earthquake. According to Huang, China's communist leadership back then tried to cover up news about the damage to avoid foreign aid — they feared western interference within the country. The leadership's response this time around demonstrates a much more liberated and open form of government. “As much as I feel saddened by the earthquake, I take great comfort in the realization that China is no longer what it was in 1976,” Huang writes.
His words relate to the book he recently translated, The Corpse Walker, which is a collection of interviews that reveal how China's political transitions affected ordinary citizens. It was written by Liao Yiwu, who was at the epicenter of China's earthquake last month.
Huang pulled together some notes about Liao and e-mailed them to us. He included some of Liao's own diary entries about the earthquake, which we share here:
By Wen Huang
Writer Liao Yiwu lives outside the city of Chengdu near the epicenter of the earthquake in Sichuan province. His home is about 17 miles from Dujiangyan, the hardest hit area where hundreds of children were trapped in a school. When the earthquake hit, he managed to run out of his apartment. Fortunately, his building didn't collapse though there are several giant cracks in the concrete stairway. For three days, as his area was threatened with aftershocks, Liao says he stays in an empty building without power and plays flute to pass the time.
Since most of the people he has interviewed for the book live in the epicenter, Liao has tried to contact them and he has not been successful. LIao said he feels guilty that he survived the earthquake but thousands of others have been killed. He wished he were there to help or at least to record the stories of survivors and rescuers. On Saturday, May 18, Liao managed to travel to the very epicenter, trying to see if he could help. He said the area has been cordoned off. But Liao managed to interview some survivors...He hopes to interview more survivors and have their stories published.
According to Liao, the government has done a good job in their rescue efforts. The fact that the government TV is now broadcasting news of the earthquake 24 hours non-stop has been reassuring. Liao is keeping a journal about the effects of the earthquake on his life and the lives of others. Here are some short excerpts:
Monday, May 12
I had just stepped into the residential compound, leisurely walking to my building. Suddenly, the earth under my feet began to shake, like a person suffering from epilepsy. The trees looked like a party of young people shaking their heads under the influence of herbal ecstasy. Because I was undernournished when I was a child, my brain is somewhat damaged - I am slow in responding to my surroundings. Initially, I didn't realize it was an earthquake until I saw that every building in my compound was vibrating.
I felt like a helpless child who has been suddenly tossed onto a swing. Then the speed of the swing accelerated to the point I couldn't stand still. I knelt on one leg and found myself sandwiched between two tall buildings. I struggled to get up, turned around mechanically, and ran away from the building as fast as my legs could carry me. Soon, I was followed by a crowd who had dashed out from different buildings … everyone was dazed and scared.
The epilepsy outburst lasted from two to three minutes. Then it stopped and things calmed down. I found myself surrounded by people, including my girl friend, who had run out of our 5th floor apartment.
About ten hours later, I contacted my sister Xiao Fei. She was trapped inside a seven-story office building in downtown Chengdu. The picture frames and artworks in her office were strewn on the floor, shattered. She said she felt like she had been tossed around inside a violently shaking colander. My writer friend Ran Yunfei was taking a nap at his 8th floor apartment. He was thrown off his bed. Then he ran out without any clothes on, dragging his quilt along behind him … Thank heavens, my family and my friends have made it through …
I feel guilty that I survived. As I watch those babies and students being pulled out from the debris, I want to cry. I wish I could be there helping, or at least recording their desperate cries and hear the stories from the brave rescue workers…
May 14, 2008
Most residents are still sleeping in tents outside the building. The aftershocks have been non-stop. I decide to take the risk and stay in because I'm afraid of the cold pouring rain, I hate the aimless wanderings and the possible prospect of an epidemic.
Power has been restored. I've been glued to the 24 hour news broadcast from the local TV station. A report about the situation in Qingcheng reminded me of Master Dengkuan, an abbot that I interviewed in 2003. His temple is only seven or eight miles away from Qingcheng. The TV reported that nearly all the residential houses in that region have been leveled. There is no mention of the thousand-year-old temple, which is built next to a mountain? The abbot suffered so much throughout his life. Before his passing in 2005, he had spent a decade restoring the temple. I hope the temple remains intact.
I also thought of the professional mourner. I interviewed him over ten years ago. He didn't even leave me his contact information because he never had a permanent home. If he were still alive, he would be in his 80s. If he is alive, I wonder if he has survived this disaster? His band used to travel between Beichuan and Jiangyou counties, where thousands of people have been killed during the past week. He spent his whole life crying and playing suona at other people's funerals. What's going to happen to him now?
Sunday, June 01, 2008
We have a budget, but no construction plan
By Bethany Jaeger and Patrick O’Brien
The state will continue to operate with some funding increases for education and human services, but schools and transportation districts across the state will continue to wait for state funding for badly needed construction projects. The Illinois General Assembly wrapped up business for the spring session and isn’t scheduled to return until November, but all are waiting to find out whether the governor will call them back to Springfield to address a capital program.
The last day of regularly scheduled session had some surprises, some predictable outcomes. But it leaves a lot of questions. Here are a few examples of what the legislature did, what it did not do and where we go from here:
What the legislature did:
The House and Senate approved a $59 billion operating budget that could spend about $1 billion more than the state could collect in revenue next fiscal year, which starts July 1. Legislators will leave it up to Gov. Rod Blagojevich to cut programs and projects to get closer to a balanced budget.
The GOP in both chambers rejected the budget for being out-of-balance crafted solely by Democrats. “The ironic thing is you’re going to have the governor be the adult in the situation,” said House Minority Leader Tom Cross during floor debate.
The budget as approved also would increase funding for higher education and human services, including pay for home care workers. It does not improve the Medicaid payment cycle, meaning many doctors could continue to experience cash flow problems as they wait an average of 70 days for state reimbursements.
Both chambers also approved free mass transit rides for some individuals with disabilities, a follow-up to the governor’s initiative to add free rides for seniors as part of a deal to save Chicago-area mass transit from cutting services. And downstate mass transit districts finally are expected to receive the increase in state funding that helps them pay operating costs, which also was promised but never delivered as part of the Chicago-area mass transit deal.
Also, as we mentioned this morning, both chambers sent an ethics reform package to the governor that would ban state contractors from donating to officeholders who let the contracts.
What the legislature did not do:
While House Democrats agreed to let the governor decide how to carve out the budget, they rejected a long-awaited capital program because many of them don’t trust the governor to divvy out the money as promised.
House Speaker Michael Madigan, who held a rare 35 minute news conference after the House was about to finish business, said the governor’s leadership style is one “which brings on conflict and confrontation rather than conciliation.” He said the operating budget limits the way the governor can spend money, but the capital plan wouldn't guarantee the governor would release the funds promised.
What’s next for the capital plan?
The capital plan ballooned to a $34 billion proposal by the Senate, and the longer it’s delayed, the more likely it is to keep increasing in cost. It has expanded and retracted countless times in the past few years. This time, negotiators, led by former U.S. House Speaker Dennis Hastert and Southern Illinois University President Glenn Poshard, did a lot of homework to select the funding sources and the projects that were most agreeable to all parties, but the scope of the plan required a lot more revenue than previously discussed. So the revenue ideas multiplied from creating one new land-based casino in Chicago and expanding positions at the nine existing riverboats to creating three new gaming facilities, expanding gaming at existing riverboats and allowing slot machines at horse tracks. The plan also would bank on a fourth new riverboat when the state’s long-dormant 10th gaming license is cleared of legal troubles. The plan is massive. And it’s controversial.
Now that the House Democrats shot down the opportunity, most legislators look to the November session. Delaying the capital plan does four things:
First, it allows legislators to wait until after the November elections to take a tough vote on a controversial funding source, such as gaming or, gulp, taxes. The speaker said, in general, one of the first places he’d look for more state revenue is an increase in the state income tax. “It’s the fairest tax. If you make money, you pay the tax. If you don’t, you don’t pay the tax.”
And in fact, the speaker said the biggest problem with recent attempts to approve a capital plan is that legislators don’t want to accept the tough choices. “My position is there should be a construction program, but it’s going to require some people to do something which is going to carry some pain. They’re not going to be applauded when they vote for a fee increase or a tax increase.”
He wouldn’t offer any alternative revenue sources tonight, “but we’re open,” he said.
Second, a delayed capital plan waits to find out the results of the federal corruption trial against Tony Rezko, a former insider to the Blagojevich Administration. The longer legislators delay a capital plan, the closer it gets to the end of Blagojevich’s term.
Sen. Dale Risinger, a Peoria Republican, described why he thinks those who want to wait contribute to the ballooning of the next capital program: “We get near the end of the Blagojevich Administration, so there will be some people who say, ‘Well let’s just wait until we have a new administration and see which direction we want to go.’ Unfortunately, with the inflation, the cost of construction goes up. And a couple more years of deterioration of our infrastructure means the program has to be that much larger the next time, which makes it even harder to do.”
Third, it risks losing future federal matching funds. The feds already earmarked about $9 billion for the state, but Illinois hasn’t committed its share. The longer the state waits to put forward the match, the less competitive it gets in securing highway funds in the next federal transportation bill.
Where do we go from here?
We wait to find out whether the governor will call legislators back before November to address a capital plan.
The state will continue to operate with some funding increases for education and human services, but schools and transportation districts across the state will continue to wait for state funding for badly needed construction projects. The Illinois General Assembly wrapped up business for the spring session and isn’t scheduled to return until November, but all are waiting to find out whether the governor will call them back to Springfield to address a capital program.
The last day of regularly scheduled session had some surprises, some predictable outcomes. But it leaves a lot of questions. Here are a few examples of what the legislature did, what it did not do and where we go from here:
What the legislature did:
The House and Senate approved a $59 billion operating budget that could spend about $1 billion more than the state could collect in revenue next fiscal year, which starts July 1. Legislators will leave it up to Gov. Rod Blagojevich to cut programs and projects to get closer to a balanced budget.
The GOP in both chambers rejected the budget for being out-of-balance crafted solely by Democrats. “The ironic thing is you’re going to have the governor be the adult in the situation,” said House Minority Leader Tom Cross during floor debate.
The budget as approved also would increase funding for higher education and human services, including pay for home care workers. It does not improve the Medicaid payment cycle, meaning many doctors could continue to experience cash flow problems as they wait an average of 70 days for state reimbursements.
Both chambers also approved free mass transit rides for some individuals with disabilities, a follow-up to the governor’s initiative to add free rides for seniors as part of a deal to save Chicago-area mass transit from cutting services. And downstate mass transit districts finally are expected to receive the increase in state funding that helps them pay operating costs, which also was promised but never delivered as part of the Chicago-area mass transit deal.
Also, as we mentioned this morning, both chambers sent an ethics reform package to the governor that would ban state contractors from donating to officeholders who let the contracts.
What the legislature did not do:
While House Democrats agreed to let the governor decide how to carve out the budget, they rejected a long-awaited capital program because many of them don’t trust the governor to divvy out the money as promised.
House Speaker Michael Madigan, who held a rare 35 minute news conference after the House was about to finish business, said the governor’s leadership style is one “which brings on conflict and confrontation rather than conciliation.” He said the operating budget limits the way the governor can spend money, but the capital plan wouldn't guarantee the governor would release the funds promised.
What’s next for the capital plan?
The capital plan ballooned to a $34 billion proposal by the Senate, and the longer it’s delayed, the more likely it is to keep increasing in cost. It has expanded and retracted countless times in the past few years. This time, negotiators, led by former U.S. House Speaker Dennis Hastert and Southern Illinois University President Glenn Poshard, did a lot of homework to select the funding sources and the projects that were most agreeable to all parties, but the scope of the plan required a lot more revenue than previously discussed. So the revenue ideas multiplied from creating one new land-based casino in Chicago and expanding positions at the nine existing riverboats to creating three new gaming facilities, expanding gaming at existing riverboats and allowing slot machines at horse tracks. The plan also would bank on a fourth new riverboat when the state’s long-dormant 10th gaming license is cleared of legal troubles. The plan is massive. And it’s controversial.
Now that the House Democrats shot down the opportunity, most legislators look to the November session. Delaying the capital plan does four things:
First, it allows legislators to wait until after the November elections to take a tough vote on a controversial funding source, such as gaming or, gulp, taxes. The speaker said, in general, one of the first places he’d look for more state revenue is an increase in the state income tax. “It’s the fairest tax. If you make money, you pay the tax. If you don’t, you don’t pay the tax.”
And in fact, the speaker said the biggest problem with recent attempts to approve a capital plan is that legislators don’t want to accept the tough choices. “My position is there should be a construction program, but it’s going to require some people to do something which is going to carry some pain. They’re not going to be applauded when they vote for a fee increase or a tax increase.”
He wouldn’t offer any alternative revenue sources tonight, “but we’re open,” he said.
Second, a delayed capital plan waits to find out the results of the federal corruption trial against Tony Rezko, a former insider to the Blagojevich Administration. The longer legislators delay a capital plan, the closer it gets to the end of Blagojevich’s term.
Sen. Dale Risinger, a Peoria Republican, described why he thinks those who want to wait contribute to the ballooning of the next capital program: “We get near the end of the Blagojevich Administration, so there will be some people who say, ‘Well let’s just wait until we have a new administration and see which direction we want to go.’ Unfortunately, with the inflation, the cost of construction goes up. And a couple more years of deterioration of our infrastructure means the program has to be that much larger the next time, which makes it even harder to do.”
Third, it risks losing future federal matching funds. The feds already earmarked about $9 billion for the state, but Illinois hasn’t committed its share. The longer the state waits to put forward the match, the less competitive it gets in securing highway funds in the next federal transportation bill.
Where do we go from here?
We wait to find out whether the governor will call legislators back before November to address a capital plan.
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