By Hilary Russell
The capital plan that recently passed both chambers was missing something that Gov. Pat Quinn said would put Illinois on a path to a more progressive mode of transportation.
Quinn said it was an oversight for lawmakers not to include money for high-speed rail in the $26 billion infrastructure program. Of that, $1.5 billion was not yet earmarked. Quinn said in a Statehouse news conference this morning that he wanted at least a portion of the remaining money to go to high-speed rail.
The General Assembly has nine days to approve a second installment of the capital plan, as well as an operating budget and governmental reforms. “I think it’s important to understand that if we’re going to get this done, we’re going to have to roll up our sleeves in the next week to make this happen,” Quinn said.
High-speed rail would address the economic, energy and environmental crises facing the state and the nation, said Richard Harnish, executive director of the Midwest High Speed Rail Association based in Chicago. It would create jobs, help reduce reliance on motor fuel and reduce air pollutants.
One reason Quinn and a large group of bipartisan legislators want money to be designated for high-speed rail is because it could capture a portion of the $8 billion federal stimulus money available to invest in such transportation. The stimulus package would provide an additional $5 billion in grants over the next five years to kick-start high-speed rail development. To capture a federal match, the state must contribute about $400 million to high-speed rail projects, according to Quinn’s administration.
The first route would travel from St. Louis to Chicago at speeds up to 110 mph. It is being touted as an affordable, environmental alternative to driving or flying with the luxury of shorter travel times.
Hannig said the transportation department has a first-of-its-kind agreement with Union Pacific Railroad to draft a blueprint of the Chicago-St.Louis route, which the team would take to Washington, D.C., as a model and a way to compete with other states for additional stimulus funds.
Chicago to St. Louis would be the first but not the last request, Hannig said. Other routes could include Chicago to Milwaukee, Cleveland and Des Moines.
Friday, May 22, 2009
Haven't crossed the finish line, yet
By Bethany Jaeger
Gov. Pat Quinn confirmed that he could wait to sign a major capital construction package that recently passed both chambers until the General Assembly sends him an operating budget and ethics reforms.
"I don't plan to sign anything until we finish our work," Quinn said at a Statehouse news conference this morning, later adding, "I don't want to stop until we reach the finish line."
The major infrastructure program, which won House approval last night, has not yet been sent to the governor's desk. And it still has $1.5 billion left to earmark for projects.
The operating budget has not yet been negotiated. However, the House has approved basic portions of the budget that must be funded regardless of whether lawmakers approve a state income tax increase. The spending would include money to keep the lights on, as well as funding for education and Medicaid, which have to meet federal requirements to capture economic stimulus funds. The Senate is expected to take up those basic portions of the budget soon, but some lawmakers fear that such a temporary spending plan would take pressure off to approve a full-year budget by the end of the month.
Quinn said, "I don't think that would be the best way to go."
Meanwhile, the effort to advance government reforms recommended by the governor's Illinois Reform Commission appear stalled. While committees were scheduled for this afternoon to hear testimony from commission Chairman Patrick Collins, Senate Republicans say that some of the legislation never got assigned to be heard in committee.
According to GOP Spokeswoman Patty Schuh, Senate Minority Leader Christine Radogno is now sponsoring a measure to establish campaign contribution limits that mirror the commission's recommendations ($2,400 for individuals and $5,000 for corporations). Schuh said it was not assigned to committee for debate this afternoon. Senate Bill 350 also includes a provision that would set a $10,000 limit for donations from a candidate's political party organization.
"Collins is in the building," Schuh said. He and other commissioners "came here today at the request of the Senate president to go over their report."
Rikeesha Phelon, spokeswoman for Senate President John Cullerton, said committees are scheduled to hear at least a pair of House Speaker Michael Madigan's reform measures that were approved yesterday.
Gov. Pat Quinn confirmed that he could wait to sign a major capital construction package that recently passed both chambers until the General Assembly sends him an operating budget and ethics reforms.
"I don't plan to sign anything until we finish our work," Quinn said at a Statehouse news conference this morning, later adding, "I don't want to stop until we reach the finish line."
The major infrastructure program, which won House approval last night, has not yet been sent to the governor's desk. And it still has $1.5 billion left to earmark for projects.
The operating budget has not yet been negotiated. However, the House has approved basic portions of the budget that must be funded regardless of whether lawmakers approve a state income tax increase. The spending would include money to keep the lights on, as well as funding for education and Medicaid, which have to meet federal requirements to capture economic stimulus funds. The Senate is expected to take up those basic portions of the budget soon, but some lawmakers fear that such a temporary spending plan would take pressure off to approve a full-year budget by the end of the month.
Quinn said, "I don't think that would be the best way to go."
Meanwhile, the effort to advance government reforms recommended by the governor's Illinois Reform Commission appear stalled. While committees were scheduled for this afternoon to hear testimony from commission Chairman Patrick Collins, Senate Republicans say that some of the legislation never got assigned to be heard in committee.
According to GOP Spokeswoman Patty Schuh, Senate Minority Leader Christine Radogno is now sponsoring a measure to establish campaign contribution limits that mirror the commission's recommendations ($2,400 for individuals and $5,000 for corporations). Schuh said it was not assigned to committee for debate this afternoon. Senate Bill 350 also includes a provision that would set a $10,000 limit for donations from a candidate's political party organization.
"Collins is in the building," Schuh said. He and other commissioners "came here today at the request of the Senate president to go over their report."
Rikeesha Phelon, spokeswoman for Senate President John Cullerton, said committees are scheduled to hear at least a pair of House Speaker Michael Madigan's reform measures that were approved yesterday.
Thursday, May 21, 2009
Capital plan passes both chambers
By Jamey Dunn and Hilary RussellPhotograph by Hilary Russell
Right: The Illinois House approved a revenue package by a vote of 86-30-1, with opposition mostly objecting to new gaming sources.
The House tonight approved a major capital construction program, wrapping up one of the three major issues that lawmakers seek to tackle before session adjourns at the end of the month. The next step for the bill is approval from Gov. Pat Quinn, but whether that will happen quickly and when projects would begin is still up in the air.
The $26 billion plan will be funded by tax, fee and fine increases. The state will contribute about $11.5 billion, which will leverage federal and local funds. An expansion of lottery ticket sales and legalizing video gaming in bars, restaurants and truck stops will generate revenue for the state’s contribution.
However, House Minority Leader Tom Cross said he does not know exactly when construction would start. “Maybe summer, early fall. But I think even if you don’t have specific shovels in the ground, you’ve got engineers and architects putting plans together,” he said after the program won House approval. “We’ve got some good movement in that mini-capital plan, so there’s some activity out there. Would we all love to see it all tomorrow? Yeah, but it’s not going to happen.”
Some of the proposed revenue sources would not immediately bring in money. Video gaming would require implementing a complicated oversight process. Many establishments already have video poker machines, and some illegally pay out to winners. If the legislation becomes law, the payouts would have to be documented and regulated. Existing machines would have to be replaced or retrofitted to meet monitoring standards spelled out in the legislation. Proponents claim that the new regulation could weed out organized crime that has been perceived to be associated with illegal video poker.
Leasing the Illinois Lottery to a private entity is contingent on approval from the U.S. Department of Justice, and the state has no control over how soon, if ever, that will come. Selling lottery tickets online is an unprecedented move. If approved, getting the operation up and running could take awhile.
Legalizing video gaming and the proposed changes to the lottery kept the plan from getting unanimous support. Cross said it was a difficult vote for some members of the GOP caucus. “It’s going to be difficult, and it’s going to have a little pain in it. And, there are people that didn’t like it,” he said.
Some Democrats didn’t like it, either. The majority of “no” votes among Democrats came from suburban Chicago lawmakers. Many echoed Quinn’s statement yesterday that the state’s operating budget, which funds government operations, health care, education and social services, should have taken priority over a construction plan.
Rep. John Fritchey, a Chicago Democrat and the only lawmaker to vote “present” on the revenue sources, said he was hesitant to approve what he considered a gaming expansion and the privatization of the lottery. He added that while the legislature found money to build new schools, lawmakers haven’t yet figured out how to pay for the teachers who would work in those schools.
Legislators also expressed concern that Quinn might not sign the capital plan into law until the General Assembly sends an operating budget to his desk. He has 60 days to act before the capital program automatically becomes law. Cross said that Quinn had told him he would sign the bill, but he worries that Quinn could delay the signing.
Regardless, lawmakers expressed relief that both chambers finally approved a long-awaited infrastructure program after consecutive years of false starts.
Rep. Lou Lang, a Skokie Democrat, said: “The state of Illinois has needed an infrastructure bill for a very long time. We need to put people to work, we need to fix roads, bridges and schools and water mains, and I believe this is an economic stimulus package done by the state of Illinois. And it was critical that it passed.”
Now the legislature can turn its focus to the operating budget and government reforms. While some procurement and employee ethics reforms advanced to the Senate today, the Senate also could begin debate about the governor’s Illinois Reform Commission’s proposals tomorrow.
Procurement, ethics, employee reforms sail to Senate
By Bethany Jaeger
The House overwhelmingly approved three measures to shield state contracts from political influence, to shine a light on the secretive process of investigating ethical violations and to “fumigate” the state of political appointees of former Govs. George Ryan and Rod Blagojevich.
The measures, all sponsored by House Speaker Michael Madigan, now head to the Senate, where more government reforms are expected to be debated tomorrow.
Madigan focused on procurement, employee ethics and political appointees. They received near-unanimous support. Republican Rep. Bill Black of Danville said, “These bills are some of the most important bills we’ve discussed in a long, long time.”
Procurement, SB 51
The speaker’s proposal would not go as far as preferred by Gov. Pat Quinn’s Illinois Reform Commission when changing the way the state purchases products and services. But Madigan’s goal mirrors that of the commission’s. “This was designed to shut the door on misuse of procurement and to isolate the procurement process and the procurement people from undue influence, especially from the office of the governor,” Madigan said on the House floor.
Rather than create one “procurement czar” in a new state procurement agency, as the commission wanted, Madigan proposed hiring a series of independent procurement officials in a "six-level system" of oversight:
Each procurement officer, compliance monitor and internal auditor would serve a five-year term, pending Senate confirmation. And they couldn’t be fired without a public hearing that determined cause for removal.
The use of sub-contractors would have to be disclosed, CORRECTION: but a provision that would have strengthened the so-called pay-to-play ban so that businesses holding state contracts of $25,000 (instead of the current $50,000) would be banned from donating to the officeholders' political campaign didn't make it into the final version. The $50,000 threshold remains.
“The bill is laced with transparency requirements,” Madigan said. “Our whole intent was two-fold: open up the process — make it more transparent — and insulate the process from undue influence, especially coming out of the governor’s office.”
Employee ethics, SB 54
Blagojevich enacted a law in 2003 that created inspectors to root out corruption or improper political donations from state contractors. But the process of investigating allegations lacked teeth and was cloaked in secrecy, with no way for the general public or legislators to know whether a corruption allegation was investigated or addressed.
“In the past, a lot of this work has been done in the dark,” Madigan said.
So his measure would allow reports of the inspectors to be public record if they found wrongdoing and either suspended or terminated an employee. Some of the information could be blacked out if it would jeopardize an ongoing investigation. And it would change the law so the inspectors could start an investigation based on anonymous tips.
It also would strengthen the so-called revolving door ban to prevent high-ranking officials from accepting jobs with private companies that received significant state contracts from the agency where the official worked. Agencies would have to list all of the employees who would be affected by the ban.
Stricter lobbying regulations would require people who lobby state boards, commissions or retirement boards to register as lobbyists, and all lobbyists would have to abide by stricter disclosure requirements. They’d also pay a higher fee of $1,000, as opposed to the current $350, which is how the state would pay for two inspectors to oversee lobbying activities. Madigan said he would consider reducing the fees for smaller nonprofit lobbying groups down the road.
Employee “fumigation,” SB 1333
At the request of the governor, Madigan reduced his original attempt to force Quinn to fire up to 3,000 employees or commissioners appointed by Ryan or Blagojevich. His measure now would apply to about 750 agency directors and their assistants, who can be hired or fired based on their political affiliations. He also would give the governor 90 days instead of 60 to review each of those employees before they would automatically be terminated.
Also at Quinn’s request “on a very personal level,” Madigan removed a provision that would have fired one of the governor’s longtime friends, John Filan. But that’s with the understanding the Filan would resign as the executive director of the Illinois Finance Authority July 1. “I took the governor at his word,” Madigan said. Filan was Blagojevich’s first-term budget director and former chief operating officer who played an integral role in several of Blagojevich’s controversial budget proposals, including floating $10 billion in pension obligation bonds and skipping $2.3 billion in state contributions in fiscal years ’06 and ’07.
Even without the provision to fire Filan, the bill drew concerns about the separation of powers because the legislature would fire people appointed by the executive branch. “We are, if not blurring those lines, we may actually be crossing those lines,” Black said.
Rep. Will Davis, a Chicago Democrat who voted present on the measure, said: “If [Quinn] wants to fire employees, he should do that and not come to the General Assembly to ask us to do that for him. … It certainly appears like maybe they’re doing him a favor.”
Madigan said the legislature has changed boards and commissions that were appointed by the executive branch before, including when the legislature twice revamped the Illinois State Board of Education and the Health Facilities Planning Board. Madigan added that Quinn “agreed to the bill.”
The House overwhelmingly approved three measures to shield state contracts from political influence, to shine a light on the secretive process of investigating ethical violations and to “fumigate” the state of political appointees of former Govs. George Ryan and Rod Blagojevich.
The measures, all sponsored by House Speaker Michael Madigan, now head to the Senate, where more government reforms are expected to be debated tomorrow.
Madigan focused on procurement, employee ethics and political appointees. They received near-unanimous support. Republican Rep. Bill Black of Danville said, “These bills are some of the most important bills we’ve discussed in a long, long time.”
Procurement, SB 51
The speaker’s proposal would not go as far as preferred by Gov. Pat Quinn’s Illinois Reform Commission when changing the way the state purchases products and services. But Madigan’s goal mirrors that of the commission’s. “This was designed to shut the door on misuse of procurement and to isolate the procurement process and the procurement people from undue influence, especially from the office of the governor,” Madigan said on the House floor.
Rather than create one “procurement czar” in a new state procurement agency, as the commission wanted, Madigan proposed hiring a series of independent procurement officials in a "six-level system" of oversight:
- Chief procurement officers would oversee procurement for the Capital Development Board, the Illinois Department of Transportation and higher education. The rest would be placed with the state’s main purchasing arm, Central Management Services.
- Procurement compliance monitors would oversee the procurement process in real time and be able to recommend changes or expose abuses.
- Independent internal auditors would be placed in their respective agencies, reversing a Blagojevich decision to consolidate them all into Central Management Services.
- One executive procurement officer in the governor’s office would advise the governor and the procurement officers. The position would end in January 2011, either when Quinn started his first full term as governor or when a new governor took office.
- The Procurement Policy Board would be strengthened so it could review contracts or bidder information and make recommendations for the chief procurement officers regarding conflicts of interest.
Each procurement officer, compliance monitor and internal auditor would serve a five-year term, pending Senate confirmation. And they couldn’t be fired without a public hearing that determined cause for removal.
The use of sub-contractors would have to be disclosed, CORRECTION: but a provision that would have strengthened the so-called pay-to-play ban so that businesses holding state contracts of $25,000 (instead of the current $50,000) would be banned from donating to the officeholders' political campaign didn't make it into the final version. The $50,000 threshold remains.
“The bill is laced with transparency requirements,” Madigan said. “Our whole intent was two-fold: open up the process — make it more transparent — and insulate the process from undue influence, especially coming out of the governor’s office.”
Employee ethics, SB 54
Blagojevich enacted a law in 2003 that created inspectors to root out corruption or improper political donations from state contractors. But the process of investigating allegations lacked teeth and was cloaked in secrecy, with no way for the general public or legislators to know whether a corruption allegation was investigated or addressed.
“In the past, a lot of this work has been done in the dark,” Madigan said.
So his measure would allow reports of the inspectors to be public record if they found wrongdoing and either suspended or terminated an employee. Some of the information could be blacked out if it would jeopardize an ongoing investigation. And it would change the law so the inspectors could start an investigation based on anonymous tips.
It also would strengthen the so-called revolving door ban to prevent high-ranking officials from accepting jobs with private companies that received significant state contracts from the agency where the official worked. Agencies would have to list all of the employees who would be affected by the ban.
Stricter lobbying regulations would require people who lobby state boards, commissions or retirement boards to register as lobbyists, and all lobbyists would have to abide by stricter disclosure requirements. They’d also pay a higher fee of $1,000, as opposed to the current $350, which is how the state would pay for two inspectors to oversee lobbying activities. Madigan said he would consider reducing the fees for smaller nonprofit lobbying groups down the road.
Employee “fumigation,” SB 1333
At the request of the governor, Madigan reduced his original attempt to force Quinn to fire up to 3,000 employees or commissioners appointed by Ryan or Blagojevich. His measure now would apply to about 750 agency directors and their assistants, who can be hired or fired based on their political affiliations. He also would give the governor 90 days instead of 60 to review each of those employees before they would automatically be terminated.
Also at Quinn’s request “on a very personal level,” Madigan removed a provision that would have fired one of the governor’s longtime friends, John Filan. But that’s with the understanding the Filan would resign as the executive director of the Illinois Finance Authority July 1. “I took the governor at his word,” Madigan said. Filan was Blagojevich’s first-term budget director and former chief operating officer who played an integral role in several of Blagojevich’s controversial budget proposals, including floating $10 billion in pension obligation bonds and skipping $2.3 billion in state contributions in fiscal years ’06 and ’07.
Even without the provision to fire Filan, the bill drew concerns about the separation of powers because the legislature would fire people appointed by the executive branch. “We are, if not blurring those lines, we may actually be crossing those lines,” Black said.
Rep. Will Davis, a Chicago Democrat who voted present on the measure, said: “If [Quinn] wants to fire employees, he should do that and not come to the General Assembly to ask us to do that for him. … It certainly appears like maybe they’re doing him a favor.”
Madigan said the legislature has changed boards and commissions that were appointed by the executive branch before, including when the legislature twice revamped the Illinois State Board of Education and the Health Facilities Planning Board. Madigan added that Quinn “agreed to the bill.”
Wednesday, May 20, 2009
School funding reform
by Jamey Dunn
Shortly before passing the capital plan, the Senate debated a proposal that would drastically change the tax structure for the state and possibly resolve a pending lawsuit. The bill, which has been considered in different versions for the last seven sessions, would raise the personal income tax from 3 percent to 5 percent and expand the sales tax to specific services.
Sen. James Meeks, a Chicago Democrat, classified some of the services as “luxury,” including limousine rentals, massages and pet grooming. But the bill also includes movies and movie rental, taxis and bowling. It would also double the earned income tax credit to protect low-income families and provide property tax relief for all.
Meeks said the intent of the measure is to create more revenue for Illinois schools and ensure schools receive equal funding because the state would take over most of the responsibility. Currently, school districts heavily rely on local property taxes, so funding can vary greatly among districts depending on how much revenue the local tax generates.
He added that after giving more money to schools and higher education, providing tax relief and putting funds toward capital projects, a large chunk of money (Meeks estimates around $4 billion) would be left over to help plug the state’s budget deficit.
The Chicago Urban League filed a lawsuit last August against the state and the Illinois State Board of Education over the current school funding system. The lawsuit was based on the 2003 Illinois Civil Rights Act and claims that Illinois’ education funding system results in racial discrimination because the student populations of many under-funded schools are predominantly minorities. The Urban League is seeking an injunction, which would force the state to change the system.
Meeks said that it is time for the General Assembly to reform school funding before possibly being ordered by a court to take action. His measure advanced through committee, and he said he plans to call it for a floor vote before session adjourns at the end of the month. “It would be a shame if the court has to mandate Illinois to do what Illinois should have been doing all along,” he said.
Shortly before passing the capital plan, the Senate debated a proposal that would drastically change the tax structure for the state and possibly resolve a pending lawsuit. The bill, which has been considered in different versions for the last seven sessions, would raise the personal income tax from 3 percent to 5 percent and expand the sales tax to specific services.
Sen. James Meeks, a Chicago Democrat, classified some of the services as “luxury,” including limousine rentals, massages and pet grooming. But the bill also includes movies and movie rental, taxis and bowling. It would also double the earned income tax credit to protect low-income families and provide property tax relief for all.
Meeks said the intent of the measure is to create more revenue for Illinois schools and ensure schools receive equal funding because the state would take over most of the responsibility. Currently, school districts heavily rely on local property taxes, so funding can vary greatly among districts depending on how much revenue the local tax generates.
He added that after giving more money to schools and higher education, providing tax relief and putting funds toward capital projects, a large chunk of money (Meeks estimates around $4 billion) would be left over to help plug the state’s budget deficit.
The Chicago Urban League filed a lawsuit last August against the state and the Illinois State Board of Education over the current school funding system. The lawsuit was based on the 2003 Illinois Civil Rights Act and claims that Illinois’ education funding system results in racial discrimination because the student populations of many under-funded schools are predominantly minorities. The Urban League is seeking an injunction, which would force the state to change the system.
Meeks said that it is time for the General Assembly to reform school funding before possibly being ordered by a court to take action. His measure advanced through committee, and he said he plans to call it for a floor vote before session adjourns at the end of the month. “It would be a shame if the court has to mandate Illinois to do what Illinois should have been doing all along,” he said.
Capital plan heads to the House
By Bethany Jaeger, Hilary Russell and Jamey Dunn
Senate President John Cullerton said he delivered on an inaugural promise to approve a major infrastructure program this spring. The $26 billion capital program, which would rely on tax and fee increases and new gaming revenues, won Senate approval and now heads to the House in what many legislators hope will continue to be a bipartisan effort.
If approved by the House, the new plan would build onto a $3 billion “mini-capital” program approved earlier this year. Combining state, local and federal funding in both the mini- and the full-capital plans would mean a $29 billion investment into roads, bridges, mass transit, schools, universities and community colleges, parks, libraries, museums, water systems and technology projects.
But not all the spending was earmarked in today’s capital plan. Legislators still would have to negotiate how and where the last $1.5 billion would be spent. The General Assembly also still has to negotiate how to balance an operating budget that is projected to be $11.6 billion out of whack over two fiscal years. But that is separate from the capital program.
Cullerton and Senate Minority Leader Christine Radogno stood together in a news conference after the chamber approved the construction. While several Republicans and a couple of Democrats opposed the revenue ideas (here’s the vote of 47-12), the spending plan received unanimous support.
“If you look at the totals of the votes, perhaps we could have done this with just Democrats,” Cullerton said, “but then we’d have acrimony, and it wouldn’t bode well for the future, and it wouldn’t bode well for the [operating] budget.”
Radogno said the four caucuses worked together to ensure a fair distribution of the money throughout all regions of the state. “That is not always easy to do. Then you cross-cut that with partisan politics. It is not easy to come up with something fair and balanced, and I truly believe that this is a fair and balanced product.”
Radogno added that while the revenue package is “not ideal,” it is “real revenue,” as opposed to borrowing without having money to repay the debt. “This proposal doesn’t do that. It pays for what we’re going to be getting.”
Sen. Martin Sandoval, a Chicago Democrat who has urged for more money for Chicago-area transportation systems, claimed victory because the capital program would include a more equitable split of money between northeastern Illinois and downstate. While some of the money will be distributed through a traditional formula for road projects that tends to give more money to downstate road projects, about $3.5 billion would go to new road and transit projects through discretionary spending. Cullerton said, “When it’s all said and done on roads, it’s probably 50-50 throughout the entire state.”
Sen. James Meeks, a Chicago Democrat, did not support the revenue portion. Cullerton later said that he met with Meeks several times to address his concerns about minority representation in unions and construction jobs. Cullerton said he looks to fund a vocational training program when the leaders negotiate the final $1.5 billion of the capital program.
It’s been 10 years since Illinois had such a major infrastructure package, and the last six years of gridlock between former Gov. Rod Blagojevich and the legislature took a toll. Numerous legislators commented about reviving a bipartisan spirit after a span of dysfunction, and “what a difference a year makes.” Cullerton ended by saying: “This is just back to normal. I’ve been here 30 years — 24 of them were normal.”
Here’s a breakdown of the revenue-makers:
Gaming
Taxes
Driving-related fees
Increased fees would bring in more than $330 million a year. The increases would include:
Revenue bill is HB 255.
Spending bill is HB 312.
Bonding bill is HB 2400.
Senate President John Cullerton said he delivered on an inaugural promise to approve a major infrastructure program this spring. The $26 billion capital program, which would rely on tax and fee increases and new gaming revenues, won Senate approval and now heads to the House in what many legislators hope will continue to be a bipartisan effort.
If approved by the House, the new plan would build onto a $3 billion “mini-capital” program approved earlier this year. Combining state, local and federal funding in both the mini- and the full-capital plans would mean a $29 billion investment into roads, bridges, mass transit, schools, universities and community colleges, parks, libraries, museums, water systems and technology projects.
But not all the spending was earmarked in today’s capital plan. Legislators still would have to negotiate how and where the last $1.5 billion would be spent. The General Assembly also still has to negotiate how to balance an operating budget that is projected to be $11.6 billion out of whack over two fiscal years. But that is separate from the capital program.
Cullerton and Senate Minority Leader Christine Radogno stood together in a news conference after the chamber approved the construction. While several Republicans and a couple of Democrats opposed the revenue ideas (here’s the vote of 47-12), the spending plan received unanimous support.
“If you look at the totals of the votes, perhaps we could have done this with just Democrats,” Cullerton said, “but then we’d have acrimony, and it wouldn’t bode well for the future, and it wouldn’t bode well for the [operating] budget.”
Radogno said the four caucuses worked together to ensure a fair distribution of the money throughout all regions of the state. “That is not always easy to do. Then you cross-cut that with partisan politics. It is not easy to come up with something fair and balanced, and I truly believe that this is a fair and balanced product.”
Radogno added that while the revenue package is “not ideal,” it is “real revenue,” as opposed to borrowing without having money to repay the debt. “This proposal doesn’t do that. It pays for what we’re going to be getting.”
Sen. Martin Sandoval, a Chicago Democrat who has urged for more money for Chicago-area transportation systems, claimed victory because the capital program would include a more equitable split of money between northeastern Illinois and downstate. While some of the money will be distributed through a traditional formula for road projects that tends to give more money to downstate road projects, about $3.5 billion would go to new road and transit projects through discretionary spending. Cullerton said, “When it’s all said and done on roads, it’s probably 50-50 throughout the entire state.”
Sen. James Meeks, a Chicago Democrat, did not support the revenue portion. Cullerton later said that he met with Meeks several times to address his concerns about minority representation in unions and construction jobs. Cullerton said he looks to fund a vocational training program when the leaders negotiate the final $1.5 billion of the capital program.
It’s been 10 years since Illinois had such a major infrastructure package, and the last six years of gridlock between former Gov. Rod Blagojevich and the legislature took a toll. Numerous legislators commented about reviving a bipartisan spirit after a span of dysfunction, and “what a difference a year makes.” Cullerton ended by saying: “This is just back to normal. I’ve been here 30 years — 24 of them were normal.”
Here’s a breakdown of the revenue-makers:
Gaming
- Two separate types of gaming would generate about $375 million. That includes legalizing video gaming machines in places where alcohol is served. The state would tax and regulate the machines and garner revenue.
- A second program would allow the state to hire a private company to manage the Illinois Lottery for up to 10 years. It also would sell lottery tickets online, with the goal of marketing to people who don’t currently play the Lottery. It would make Illinois the first state in the nation to allow “Internet lottery,” which would be contingent on approval from the U.S. Justice Department.
- But creating new methods to access gambling is similar to playing with fire, according to Anita Bedell, executive director of Illinois Church Action and Alcohol Addiction Problems, who likened the programs to granting easy access to underage players.
Taxes
- It would reclassify soft drinks, candy, beauty and some hygiene products for sales tax purposes and generate up to $150 million.
- The sales tax on alcohol also would increase for wine (from 73 cents to $1.39 per gallon), spirits (from $4.50 to $8.55 per gallon) and beer (from 18.5 cents to 23.1 cents per gallon). It would generate about $113 million a year. Opponents said taxing alcoholic beverages is not a constant source of revenue for the state.
Driving-related fees
Increased fees would bring in more than $330 million a year. The increases would include:
- Title certificate fees from $65 to $95.
- Registration fees from $15 to $25.
- Driver’s license fees from $10 to $30.
- Fines for semitrailers that are over the approved weight.
Revenue bill is HB 255.
Spending bill is HB 312.
Bonding bill is HB 2400.
FOIA proposals diluted in legislation
By Dana Heupel
Proposed legislation to revise the Illinois Freedom of Information Act is significantly watered down from recommendations to lawmakers by the Illinois Reform Commission, the state attorney general and others, according to the interim head of the Illinois Press Association.
“Only in Illinois would this be defined as reform or transparency,” Don Craven, the association’s interim executive director, said during a telephone news conference today. The association first learned of the changes about midnight Tuesday in a draft of the bill obtained from Illinois House leadership.
Craven, an attorney who has represented news organizations and others seeking public records for more than 25 years, said he and other press association staff will recommend that the organization’s directors oppose the legislation “if it moves forward in this fashion.” He said he favors the current Freedom of Information Act, which he still views as flawed, over the new proposal.
The proposed revisions will be Senate Bill 1265 but have not yet been officially filed in the General Assembly, Craven said. Among the recommendations that differ from those of the Reform Commission, the attorney general and media organizations are:
* Criminal penalties, which the organizations had proposed, are not in the new bill, although it does provide for civil penalties against government bodies. But that only means, Craven said, that “the taxpayers get to pay when a public official violates the law.”
* Language that would have imposed a waiver of most exemptions from the act if a government body refused to respond to a FOIA request in the allotted time period has been removed.
* Certain automatic privacy exemptions in current law were deleted from the groups’ proposal but have been reinstated in the legislation. Among those automatic exemptions, Craven said, are “personnel files, medical files and ‘similar files,' whatever a similar file might be.”
* Every FOIA request would have to go through a public agency’s FOIA officer, and the agency could demand the request in writing. Although the initial time frame for the agency to respond to the request has been shortened from seven to five working days, under the new legislation, the clock won’t start running until the request is in the FOIA officer’s hands. That means it could be delayed if, for instance, the FOIA officer is on vacation, Craven said.
* Current law specifies that information requested under the FOI law should be provided in the format in which it’s kept – if an agency keeps electronic files, for instance, the requested information should be supplied in electronic form. That would no longer be required under the proposed changes, according to Beth Bennett, the press association’s director of government relations.
Craven and Bennett said they weren’t entirely happy with the final recommendations the Reform Commission, the attorney general and others made to the General Assembly because they had been weakened during the process, but the organization still supported those proposed revisions. With the revelation of the new contents of the legislation, the support “went from lukewarm to just pathetic,” Craven said.
"The attorney general strongly opposes these changes and will continue to fight to restore the bill to the form that was agreed on by the Illinois Reform Commission and all of our allies," said Cara Smith, deputy chief of staff for Attorney General Lisa Madigan. "The agreed-upon language was the result of months and months of hard work, and we feel it would bring a tremendous level of transparency to Illinois."
Proposed legislation to revise the Illinois Freedom of Information Act is significantly watered down from recommendations to lawmakers by the Illinois Reform Commission, the state attorney general and others, according to the interim head of the Illinois Press Association.
“Only in Illinois would this be defined as reform or transparency,” Don Craven, the association’s interim executive director, said during a telephone news conference today. The association first learned of the changes about midnight Tuesday in a draft of the bill obtained from Illinois House leadership.
Craven, an attorney who has represented news organizations and others seeking public records for more than 25 years, said he and other press association staff will recommend that the organization’s directors oppose the legislation “if it moves forward in this fashion.” He said he favors the current Freedom of Information Act, which he still views as flawed, over the new proposal.
The proposed revisions will be Senate Bill 1265 but have not yet been officially filed in the General Assembly, Craven said. Among the recommendations that differ from those of the Reform Commission, the attorney general and media organizations are:
* Criminal penalties, which the organizations had proposed, are not in the new bill, although it does provide for civil penalties against government bodies. But that only means, Craven said, that “the taxpayers get to pay when a public official violates the law.”
* Language that would have imposed a waiver of most exemptions from the act if a government body refused to respond to a FOIA request in the allotted time period has been removed.
* Certain automatic privacy exemptions in current law were deleted from the groups’ proposal but have been reinstated in the legislation. Among those automatic exemptions, Craven said, are “personnel files, medical files and ‘similar files,' whatever a similar file might be.”
* Every FOIA request would have to go through a public agency’s FOIA officer, and the agency could demand the request in writing. Although the initial time frame for the agency to respond to the request has been shortened from seven to five working days, under the new legislation, the clock won’t start running until the request is in the FOIA officer’s hands. That means it could be delayed if, for instance, the FOIA officer is on vacation, Craven said.
* Current law specifies that information requested under the FOI law should be provided in the format in which it’s kept – if an agency keeps electronic files, for instance, the requested information should be supplied in electronic form. That would no longer be required under the proposed changes, according to Beth Bennett, the press association’s director of government relations.
Craven and Bennett said they weren’t entirely happy with the final recommendations the Reform Commission, the attorney general and others made to the General Assembly because they had been weakened during the process, but the organization still supported those proposed revisions. With the revelation of the new contents of the legislation, the support “went from lukewarm to just pathetic,” Craven said.
"The attorney general strongly opposes these changes and will continue to fight to restore the bill to the form that was agreed on by the Illinois Reform Commission and all of our allies," said Cara Smith, deputy chief of staff for Attorney General Lisa Madigan. "The agreed-upon language was the result of months and months of hard work, and we feel it would bring a tremendous level of transparency to Illinois."
Quinn thumbs his nose at legislature
Story by Jamey DunnPhotograph by Hilary Russell
Gov. Pat Quinn said today that balancing the state’s operating budget is his top priority and that the capital plan for construction projects should come only after legislators approve a spending plan. The move could be perceived as a dig at the legislature, which is doing the exact opposite.
At an annual Springfield event, the Illinois Governor’s Prayer Breakfast, Quinn said the so-called doomsday budget he released Monday was the “responsible” way for him to inform legislators and citizens about the consequences if lawmakers fail to approve new revenue sources to help balance the budget. Quinn has proposed an income tax increase to help repair a combined $11.6 billion deficit over this fiscal year and next, and he said that he thinks lawmakers will support it before session adjourns at the end of the month.
“We have to help education and public safety and health care,” he said. “And if we don’t have the revenue, there are going to have to be severe cutbacks.”
Quinn said that passing a budget to keep social programs in place should come before a capital plan, but lawmakers plan to pass parts of the capital bill as early as today. This is the first time Quinn has publicly voiced opposition to passing a capital plan before passing an operating budget.
“I want to tell the members of the General Assembly I know they want a lot of [capital] projects and so on, and so do I. But that is not coming before the priority of taking care of real live human beings.”
As for funding for the capital bill, Quinn said that he is still not enthusiastic about legalizing video gaming to help pay for it. However, he said that the challenges the state currently faces might spur him to consider a proposal he wouldn’t normally support. He urged legislators to be flexible about their positions, as well.
“Right now I think it is important for both parties, both houses of the legislature, everybody to become people of Illinois,” he said. “Put aside differences and put aside, maybe, some of their past positions if it means that we have to band together to save our state.”
Tuesday, May 19, 2009
Inch by inch
By Jamey Dunn and Bethany Jaeger
In a pivotal step toward finalizing the capital plan, Gov. Pat Quinn met with Democrat and Republican leaders of both chambers in Quinn’s Statehouse office this afternoon.
Senate President John Cullerton, Senate Minority Leader Christine Radogno, House Speaker Michael Madigan and House Minority Leader Tom Cross met for several hours. But none of them commented to the media after the meeting.
Rikeesha Phelon, spokeswoman for Cullerton, said it was the first substantial meeting between the four leaders and the governor since he took office. She said that an agreement has been reached between Democrats and Republicans in both chambers and that Cullerton left the meeting confident of a vote on the capital plan coming tomorrow.
Measures to approve new revenue sources and to grant bonding authority to the state are expected to move first. According to Radogno’s spokeswoman, Patty Schuh, the revenue sources will all be included in a single bill. Some Republicans wanted two separate bills so they could avoid taking a difficult vote on expanding gaming.
The bulk of spending will be in a bill that could come up for a vote tomorrow, and some individual projects that still need to be negotiated will be in a later bill. Schuh said that the leaders and Quinn still want to avoid giving out large chunks of money without specifically designating them to projects.
Meanwhile, the House advanced basic parts of the operating budget that would authorize standard spending regardless of whether legislators approved an income tax increase, which Quinn continues to urge as needed. The spending would include money to keep the lights on, as well as funding for education and Medicaid, two areas that have to meet federal requirements to capture economic stimulus funds. Funding contracts for state employee unions also is required.
At least two major questions remain: Will the state fund all $4 billion of its scheduled contribution into the public employee pension systems (a typical year’s contribution would be about $1.2 billion)? And will the legislature resort to increasing the state income tax, outlining budget cuts, or both?
“Without a tax increase, are you going to fund the pensions at normal costs, which means unfunding about $3 billion?” said Rep. Frank Mautino, an assistant majority leader. “And then how do you decide which of the remaining items you’re going to pay for?”
In a pivotal step toward finalizing the capital plan, Gov. Pat Quinn met with Democrat and Republican leaders of both chambers in Quinn’s Statehouse office this afternoon.
Senate President John Cullerton, Senate Minority Leader Christine Radogno, House Speaker Michael Madigan and House Minority Leader Tom Cross met for several hours. But none of them commented to the media after the meeting.
Rikeesha Phelon, spokeswoman for Cullerton, said it was the first substantial meeting between the four leaders and the governor since he took office. She said that an agreement has been reached between Democrats and Republicans in both chambers and that Cullerton left the meeting confident of a vote on the capital plan coming tomorrow.
Measures to approve new revenue sources and to grant bonding authority to the state are expected to move first. According to Radogno’s spokeswoman, Patty Schuh, the revenue sources will all be included in a single bill. Some Republicans wanted two separate bills so they could avoid taking a difficult vote on expanding gaming.
The bulk of spending will be in a bill that could come up for a vote tomorrow, and some individual projects that still need to be negotiated will be in a later bill. Schuh said that the leaders and Quinn still want to avoid giving out large chunks of money without specifically designating them to projects.
Meanwhile, the House advanced basic parts of the operating budget that would authorize standard spending regardless of whether legislators approved an income tax increase, which Quinn continues to urge as needed. The spending would include money to keep the lights on, as well as funding for education and Medicaid, two areas that have to meet federal requirements to capture economic stimulus funds. Funding contracts for state employee unions also is required.
At least two major questions remain: Will the state fund all $4 billion of its scheduled contribution into the public employee pension systems (a typical year’s contribution would be about $1.2 billion)? And will the legislature resort to increasing the state income tax, outlining budget cuts, or both?
“Without a tax increase, are you going to fund the pensions at normal costs, which means unfunding about $3 billion?” said Rep. Frank Mautino, an assistant majority leader. “And then how do you decide which of the remaining items you’re going to pay for?”
No texting and driving bill passes Senate
By Hilary Russell
A bill prohibiting texting while driving passed in the Senate after a series of amendments were added to clarify when someone could get a moving violation for using a cell phone.
The bill, sponsored by Sen. Martin Sandoval, a Chicago Democrat, was pulled last week before a vote could be taken because of numerous concerns about when and where an individual would be allowed to text while behind the wheel.
Sandoval said he worked with members of both political parties to rework the bill to clarify that drivers would not be penalized for using the GPS functions on their cell phones, texting while sitting in traffic jams or at railroad crossings or texting while stopped on the side of the road.
The amended version also defines texting as pushing keys to type an instant message into an electronic device.
Sens. Kwame Raoul and James Meeks, both Chicago Democrats, said they did not vote for the bill because the language remained ambiguous and gave law enforcement too much power. Meeks said it would be virtually impossible for an officer who pulls an individual over to determine from a distance whether the driver was texting, using a navigation system or dialing a phone number. Raoul added that existing laws for improper lane usage already apply.
Sen. Ira Silverstein, a Chicago Democrat, said such safety provisions usually aren’t put in place until after a tragedy. He said Sandoval’s texting ban would be proactive.
The measure now heads to the House, where the changes will have to be approved before the bill heads to the governor’s desk.
Monday, May 18, 2009
Medical marijuana vote could come tomorrow
By Hilary Russell
Illinois could move one step closer toward becoming the 14th state to authorize the use of marijuana for medicinal purposes tomorrow. Senate sponsor William Haine, an Alton Democrat, is expected to present his version of the bill that allows restricted use of marijuana for specific individuals.
This would be the second time in the Illinois General Assembly's history that a bill proposing the authorization of marijuana use would be called for a floor vote. If signed into law, Haine's measure would allow chronic or terminally ill individuals to use the drug without fear of criminal penalty. It also would afford a primary care physician the ability to authorize use of the drug.
A similar measure is in the House. While Haine's bill proposes an individual be allowed to possess 2 ounces of dried Cannabis Sativa and three mature flowering plants, which are dried and then smoked or vaporized, Rep. Lou Lang, a Skokie Democrat sponsoring a similar bill. Both bills call for a 60-day supply but deem the Illinois Department of Public Health responsible for determining the number of dried ounces and mature plants capable of producing a 60-day supply.
Lang could call Haine's version or his own if Haine's measure passes out of the Senate tomorrow.
For Haine's bill to move out of the Senate, 30 votes are needed. In a statement Haine released today, he said he was close to getting the necessary votes. Lang needs at least 60 votes for it to go to Gov. Pat Quinn's desk. Check back tomorrow for Senate action.
Lainutis Nargalenes, a Springfield deputy chief of police, said he remained opposed to the bill and was taking a wait-and-see approach to determine if it actually passed the House.
Dann Linn, executive director of the Illinois Chapter of the National Organization to Reform Marijuana Laws (NORML), said he was optimistic the bill would pass both chambers. “We've been pushing this legislation for years for patients to get safe and legal access to their medicine,” he said.
The U.S. Supreme Court today refused to hear a case initiated by two counties in California challenging that state's medical marijuana laws. Several opponents of this type of legislation have been unsuccessful in attempts to reverse legislation in states that allow use of the drug by claiming that federal law supersedes state law. In March, U.S. Attorney Eric Holder announced a reversal of the former Bush Administration's policy to target marijuana distributors that worked within their own state's law. Marijuana is classified as a federally illegal drug, but 13 states currently permit its use through voter initiative or state legislation.
Semitrailer speed limit could increase
by Jamey Dunn
Semitrailers may soon be able to travel as fast as passenger vehicles on certain stretches of interstate in Illinois.
A bill that would increase the speed limit for tractor-trailers on rural interstates to 65 miles per hour advanced through the Senate this morning. The measure already passed through the House, and now it goes to Gov. Pat Quinn’s desk.
Similar bills have passed three times in previous sessions, only to be vetoed by former Gov. Rod Blagojevich. Libby White, a spokesperson for Quinn, said that he is reviewing the bill. Rushville Democrat Sen. John Sullivan, the bill’s sponsor, said that he has not talked to Quinn, but he has been communicating with Quinn’s staff. He said he has the impression that Quinn “doesn’t have as much objections to it as the previous governor.”
Sullivan said that this bill is a little different than previous versions because it names the counties that would be exempt from the increase. He said he thinks that this provision could help remove some opposition and that he is optimistic the proposal will become law this time around. “I feel better about it,” he said.
Semitrailers may soon be able to travel as fast as passenger vehicles on certain stretches of interstate in Illinois.
A bill that would increase the speed limit for tractor-trailers on rural interstates to 65 miles per hour advanced through the Senate this morning. The measure already passed through the House, and now it goes to Gov. Pat Quinn’s desk.
Similar bills have passed three times in previous sessions, only to be vetoed by former Gov. Rod Blagojevich. Libby White, a spokesperson for Quinn, said that he is reviewing the bill. Rushville Democrat Sen. John Sullivan, the bill’s sponsor, said that he has not talked to Quinn, but he has been communicating with Quinn’s staff. He said he has the impression that Quinn “doesn’t have as much objections to it as the previous governor.”
Sullivan said that this bill is a little different than previous versions because it names the counties that would be exempt from the increase. He said he thinks that this provision could help remove some opposition and that he is optimistic the proposal will become law this time around. “I feel better about it,” he said.
"Doomsday" projected without tax hike
By Bethany Jaeger and Jamey Dunn
Gov. Pat Quinn tried to bolster his case for the need to raise state income taxes by describing drastic cuts — including laying off thousands of teachers and state police troopers and discontinuing health care for hundreds of thousands of people — if the legislature failed to approve an income tax increase within the next two weeks.
Public employee unions and human service providers immediately warned that a “doomsday budget” would threaten their members and the general public, especially when education and social services are most needed during an economic recession. State legislators, meanwhile, remain split on the need to raise taxes, cut spending or both to balance next year’s operating budget. Quinn estimates that the state faces at least an $11.6 billion deficit when combining this fiscal year and next.
While speaking at a City Club of Chicago luncheon today, the governor said he is telling people what they need to know, not what they want to hear. “Right now, it’s a very hard time, and people don’t like to pay taxes to begin with, and especially in hard times. But if we don’t use the public revenue of Illinois to help rescue our state economy, we’re going to continue in hard times.”
He projected a “slash and burn” budget that would cut $7.5 billion from state spending and rely on $4.1 billion from the federal stimulus funds. The cuts would include:
“I would say to those legislators who think the only way to get to a balanced budget is to cut everywhere we can, maybe they could take some of those prisoners home to their own house when they get out of jail,” Quinn said, drawing laughs and applause from the audience.
However, opponents to Quinn’s proposed income tax increase said the plan is a ploy to scare people into accepting higher taxes. Sen. Matt Murphy, a Palatine Republican, said he thinks Quinn’s proposal is a “gimmick.”
“I think his doomsday budget was the one he put out on March 18 with the biggest tax hike in state history,” he said. “That would cost people their jobs in a recession, and I think that’s the real doomsday.”
Murphy, co-chair of the Senate Deficit Reduction Committee, issued a report along with the other Republicans suggesting cuts that could help balance the budget, highlighting changes in the Medicaid system. “We can balance this budget without raising taxes and without having the draconian cuts that [Quinn] put out today,” he said. “It’s not going to be pain-free. It’s not going to be easy. If it were easy, we wouldn’t be in this situation.” Murphy added that he is disappointed the potential budget cuts that the committee considered have not been a major part of the discussion.
Sen. John Sullivan, a Rushville Democrat and member of the same committee, added that he is concerned cuts to health care and education, two of the largest parts of the budget, would jeopardize the state’s access to federal stimulus dollars. “Because of federal stimulus money that the state of Illinois will be receiving, we cannot reduce eligibility for Medicaid or health care services. And also, with regard to education, we cannot lower our appropriations,” he said.
Others say it’ll take both: cuts and tax increases. Rep. Linda Chapa LaVia, an Aurora Democrat who chairs the appropriations committee for elementary and secondary education, said taxpayers will need to see that the state is cutting as much as it can before they’ll accept paying increased taxes.
Sen. Donne Trotter, chief budget negotiator for the Senate Democrats, said he thinks approving a tax increase would be easier for legislators than approving drastic cuts outlined by Quinn’s office. He said: “Our problem is not finding a revenue source. It’s agreeing on one. There’s so many options out here, and we’ll just have to wait and see, as we progress, which one it is going to be.”
Trotter said he didn’t think a tradition such as the Illinois State Fair would really be cut. But, he said, people should take Quinn’s so-called doomsday budget seriously because cuts will be necessary to balance the budget. “There’s going to have to be some reductions. We can’t tax our way out of this,” he said.
Quinn stuck to his message that Illinois needs a permanent income tax increase, as opposed to a temporary increase, to manage the structural deficit and to “deal with reality in the 21st century.”
“Very few governors say, ‘Let’s raise taxes.’ But if you have to do it in order to make the people stronger today and in the long run, so be it.”
Meanwhile, legislative leaders met again behind closed doors this evening to talk about a major construction program funded by various tax and fee increases. Expect movement on that plan as soon as tomorrow.
Gov. Pat Quinn tried to bolster his case for the need to raise state income taxes by describing drastic cuts — including laying off thousands of teachers and state police troopers and discontinuing health care for hundreds of thousands of people — if the legislature failed to approve an income tax increase within the next two weeks.
Public employee unions and human service providers immediately warned that a “doomsday budget” would threaten their members and the general public, especially when education and social services are most needed during an economic recession. State legislators, meanwhile, remain split on the need to raise taxes, cut spending or both to balance next year’s operating budget. Quinn estimates that the state faces at least an $11.6 billion deficit when combining this fiscal year and next.
While speaking at a City Club of Chicago luncheon today, the governor said he is telling people what they need to know, not what they want to hear. “Right now, it’s a very hard time, and people don’t like to pay taxes to begin with, and especially in hard times. But if we don’t use the public revenue of Illinois to help rescue our state economy, we’re going to continue in hard times.”
He projected a “slash and burn” budget that would cut $7.5 billion from state spending and rely on $4.1 billion from the federal stimulus funds. The cuts would include:
- $1.5 billion from education, resulting in the loss of 14,300 teachers and eliminating preschool for 100,000 children.
- $554 million from higher education, affecting 400,000 college students who would lose their state financial aid grants.
- $1.2 billion from health care, leading 650,000 people of all ages to lose state-sponsored programs for prescription drugs and retirement health care.
- $368 million from senior services, ending services for 271,000 seniors who currently use programs for community care, elder abuse and neglect and Circuit Breaker property tax relief.
- $27 million from veterans’ care, closing four veterans’ homes and eliminating a program to treat traumatic brain injuries and post traumatic stress disorders.
- $769 million from human services, eliminating home care for 5,000 people with disabilities and addiction treatment and prevention for another 45,000 people, as well as child care for 1,000 children.
- $549 million from economic development, eliminating all state funding for public transit and AMTRAK.
- $98 million from agriculture and natural resources, erasing funding for state fairs and closing 60 parks and every museum in the state.
- $1 billion from local governments, which would affect their ability to fund public safety and other local services.
- $294 million from public safety, laying off nearly 1,000 state troopers and releasing about 6,000 prisoners early from their detentions.
“I would say to those legislators who think the only way to get to a balanced budget is to cut everywhere we can, maybe they could take some of those prisoners home to their own house when they get out of jail,” Quinn said, drawing laughs and applause from the audience.
However, opponents to Quinn’s proposed income tax increase said the plan is a ploy to scare people into accepting higher taxes. Sen. Matt Murphy, a Palatine Republican, said he thinks Quinn’s proposal is a “gimmick.”
“I think his doomsday budget was the one he put out on March 18 with the biggest tax hike in state history,” he said. “That would cost people their jobs in a recession, and I think that’s the real doomsday.”
Murphy, co-chair of the Senate Deficit Reduction Committee, issued a report along with the other Republicans suggesting cuts that could help balance the budget, highlighting changes in the Medicaid system. “We can balance this budget without raising taxes and without having the draconian cuts that [Quinn] put out today,” he said. “It’s not going to be pain-free. It’s not going to be easy. If it were easy, we wouldn’t be in this situation.” Murphy added that he is disappointed the potential budget cuts that the committee considered have not been a major part of the discussion.
Sen. John Sullivan, a Rushville Democrat and member of the same committee, added that he is concerned cuts to health care and education, two of the largest parts of the budget, would jeopardize the state’s access to federal stimulus dollars. “Because of federal stimulus money that the state of Illinois will be receiving, we cannot reduce eligibility for Medicaid or health care services. And also, with regard to education, we cannot lower our appropriations,” he said.
Others say it’ll take both: cuts and tax increases. Rep. Linda Chapa LaVia, an Aurora Democrat who chairs the appropriations committee for elementary and secondary education, said taxpayers will need to see that the state is cutting as much as it can before they’ll accept paying increased taxes.
Sen. Donne Trotter, chief budget negotiator for the Senate Democrats, said he thinks approving a tax increase would be easier for legislators than approving drastic cuts outlined by Quinn’s office. He said: “Our problem is not finding a revenue source. It’s agreeing on one. There’s so many options out here, and we’ll just have to wait and see, as we progress, which one it is going to be.”
Trotter said he didn’t think a tradition such as the Illinois State Fair would really be cut. But, he said, people should take Quinn’s so-called doomsday budget seriously because cuts will be necessary to balance the budget. “There’s going to have to be some reductions. We can’t tax our way out of this,” he said.
Quinn stuck to his message that Illinois needs a permanent income tax increase, as opposed to a temporary increase, to manage the structural deficit and to “deal with reality in the 21st century.”
“Very few governors say, ‘Let’s raise taxes.’ But if you have to do it in order to make the people stronger today and in the long run, so be it.”
Meanwhile, legislative leaders met again behind closed doors this evening to talk about a major construction program funded by various tax and fee increases. Expect movement on that plan as soon as tomorrow.
Sunday, May 17, 2009
Revenue first, spending second for capital plan
By Bethany Jaeger
Senate Democrats and Republicans are inching closer to an agreement on at least half of the capital plan: the revenue side. Measures to raise about $1 billion of the state's share through various tax and fee increases, as well as two gaming-related revenue ideas, could advance early this week. The spending side of the roughly $26 billion construction plan, however, will take longer to negotiate.
Senate Democrats met behind closed doors Sunday evening, setting up what's scheduled to be the last two weeks of the spring legislative session. The goal remains to adjourn two days early on May 29, said Rikeesha Phelon, spokeswoman for Senate President John Cullerton. Expect the Senate to act on capital construction package and ethics reforms this week. Negotiations on an operating budget, so far, have been separate.
The construction program for roads, bridges, schools and infrastructure projects would rely on a series of revenue sources, the largest being about $375 million from the legalization of video poker machines in bars, truck stops and other establishments where alcohol is served, according to a Democratic source. The second largest source, about $331 million, would come from increased driving-related fees.
The plan also would allow a private company to manage the Illinois Lottery and allow tickets to be sold online, bringing in about $150 million. Additional revenue sources would include $150 million from expanded taxes on candy, non-carbonated drinks and some health and beauty aid products, as well as $114 million from expanded taxes on wine (13 cents a bottle), liquor (80 cents a bottle) and beer (about 2 cents a six pack). An increase on the state's motor fuel tax is no longer on the table.
Senate Minority Leader Christine Radogno said her caucus wants the two gaming-related measures in one bill and the other revenue sources in another bill to separate the votes. “It’s primarily to address the fact that there are people in all four caucuses that would never under any circumstances vote for gaming," she said. Cullerton is considering the request, Phelon said.
We'll have much more this week.
Senate Democrats and Republicans are inching closer to an agreement on at least half of the capital plan: the revenue side. Measures to raise about $1 billion of the state's share through various tax and fee increases, as well as two gaming-related revenue ideas, could advance early this week. The spending side of the roughly $26 billion construction plan, however, will take longer to negotiate.
Senate Democrats met behind closed doors Sunday evening, setting up what's scheduled to be the last two weeks of the spring legislative session. The goal remains to adjourn two days early on May 29, said Rikeesha Phelon, spokeswoman for Senate President John Cullerton. Expect the Senate to act on capital construction package and ethics reforms this week. Negotiations on an operating budget, so far, have been separate.
The construction program for roads, bridges, schools and infrastructure projects would rely on a series of revenue sources, the largest being about $375 million from the legalization of video poker machines in bars, truck stops and other establishments where alcohol is served, according to a Democratic source. The second largest source, about $331 million, would come from increased driving-related fees.
The plan also would allow a private company to manage the Illinois Lottery and allow tickets to be sold online, bringing in about $150 million. Additional revenue sources would include $150 million from expanded taxes on candy, non-carbonated drinks and some health and beauty aid products, as well as $114 million from expanded taxes on wine (13 cents a bottle), liquor (80 cents a bottle) and beer (about 2 cents a six pack). An increase on the state's motor fuel tax is no longer on the table.
Senate Minority Leader Christine Radogno said her caucus wants the two gaming-related measures in one bill and the other revenue sources in another bill to separate the votes. “It’s primarily to address the fact that there are people in all four caucuses that would never under any circumstances vote for gaming," she said. Cullerton is considering the request, Phelon said.
We'll have much more this week.
Friday, May 15, 2009
End-of-session preview 2009
The legislature is preparing for a two-week push to accomplish three major issues — the state operating budget, a major construction program and a government reform initiative — for a potential May 29 adjournment. That’s the goal, according to Senate President John Cullerton.
All four legislative leaders met behind closed doors this afternoon to talk about a major capital construction program, which is expected to roll out next week. Earlier in the day, House Republicans held an unprecedented open-door meeting (caucuses usually meet behind closed doors and don’t invite the media) to talk about government reforms with Patrick Collins, chairman of the Reform Commission.
The Senate will come back Sunday evening, while the House is scheduled to return to the Capitol Monday evening. Here's where things stand, as of Friday evening:
Budget
Preparation to negotiate details of an operating budget, which is projected to have a deficit between $9 billion and $12 billion, is expected to start in earnest early next week. The process could be a little different than previous years in an attempt to increase transparency, but we’ll have more on that later.
Capital plan
By Jamey Dunn
The four legislative leaders seem to be nearing an agreement on revenue sources for a major infrastructure program. A vote could come next week.
Cullerton said that the money for the plan would come from several proposals and that no one source would dominate. “It’s a combination — it’s a potpourri — of funding sources for the capital bill.”
We wrote about some revenue ideas earlier this week. Cullerton said some of the details could change. He said that beer and not just wine and spirits, as previously mentioned, could be included in a liquor tax increase. He added that a proposal to sell lottery tickets online would have to be cleared with the U.S. Department of Justice.
Senate Minority Leader Christine Radogno said that legalizing video gaming and taxing it as a revenue source could actually reduce the number of video poker consoles in the state. She said the legislative Commission on Government Forecasting and Accountability estimated about 65,000 machines could be operating throughout the state, while one proposal would reduce that to about 45,000. However, the actual number of existing machines is unknown, according to the commission.
“I think the idea is to limit them, not to have them on every street corner,” Radogno said. “I mean, they’re already out there, and we want to make sure that the state’s getting the revenue that we could get from the activity that’s already going on.”
Rep. Frank Mautino, a Spring Valley Democrat, already has a video poker measure advancing through the legislature.
That’s the revenue side. The spending side invites a whole new set of complications. “We want to be sure that everyone’s comfortable with the spending before we vote for the revenue side of it,” Radogno said. “So, there’s a lot of detail that has to be worked out there. There’s not gong to be any hidden allocations. No lump sums.”
She said that the leaders have been talking about funneling a large potion of the money through existing programs with established criteria in an attempt to take some of the bickering out of the highly political process.
Ethics
By Bethany Jaeger
Legislation drafted by Gov. Pat Quinn’s Illinois Reform Commission is expected to be ready for debate later next week, and campaign finance limits likely are in the mix.
Sen. Don Harmon, an assistant majority leader from Oak Park, has been working with Patrick Collins, chairman of the commission and former assistant U.S. attorney. While some items such as Freedom of Information Act reforms are expected to sail through the legislative process, more controversial items likely would be introduced in competing bills and debated.
Campaign contribution limits are one example. Lawmakers would debate various proposals and take up-or-down votes on each, according to Harmon.
The Reform Commission recommended capping individual donations at $2,400 and corporate or political organizations’ donations at $5,000. But Harmon said the controversy is “not whether there should be campaign contribution limits — but the size.” Some legislators think that a $2,400 cap is too low and that it would require them to spend too much time raising campaign cash in smaller increments.
A $10,000 limit per calendar year, on the other hand, may be a more comfortable level for many legislators, Harmon said. Some Senate Democrats don’t like basing the limit on a calendar year, but, Harmon said, “We need limits that are meaningful, and the calendar year seems to be an understandable measurement and could enhance the likelihood of enforcement.”
Here are some of the contribution limit bills waiting for action:
A longer-term proposal, on the other hand, is changing the way the legislature redraws congressional districts. Redistricting is being discussed but not lumped in as part of the end-of-session rush. Reform ideas, which include using a computerized process similar to Iowa’s, are likely to be debated in public hearings throughout this summer or, potentially, a special legislative session in September.
Another controversial issue that could be pushed back is the commission’s recommendation to grant state’s attorneys authority to wiretap conversations as part of public corruption investigations. Federal prosecutors have that power, while state’s attorneys do not (although they can wiretap for other kind of investigations).
A former state’s attorney, Democratic Sen. Bill Haine of Alton, sees red flags in the proposal. State’s attorneys are elected on a partisan basis, while federal attorneys are appointed by the president and confirmed by the U.S. Senate. Federal prosecutors also answer to the U.S. Department of Justice and the U.S. attorney general, which Haine said provides a checks-and-balances system. “So before we vest local politically elected prosecutors with the vast powers of the United States government, we should have a clear idea of where we are going to draw the line and what the checks and balances are. Just giving wiretapping authority, warrentless wiretapping authority or additional wiretapping authority without looking at how we’re going to have checks and balances on that authority, I think, is a mistake.”
All four legislative leaders met behind closed doors this afternoon to talk about a major capital construction program, which is expected to roll out next week. Earlier in the day, House Republicans held an unprecedented open-door meeting (caucuses usually meet behind closed doors and don’t invite the media) to talk about government reforms with Patrick Collins, chairman of the Reform Commission.
The Senate will come back Sunday evening, while the House is scheduled to return to the Capitol Monday evening. Here's where things stand, as of Friday evening:
Budget
Preparation to negotiate details of an operating budget, which is projected to have a deficit between $9 billion and $12 billion, is expected to start in earnest early next week. The process could be a little different than previous years in an attempt to increase transparency, but we’ll have more on that later.
Capital plan
By Jamey Dunn
The four legislative leaders seem to be nearing an agreement on revenue sources for a major infrastructure program. A vote could come next week.
Cullerton said that the money for the plan would come from several proposals and that no one source would dominate. “It’s a combination — it’s a potpourri — of funding sources for the capital bill.”
We wrote about some revenue ideas earlier this week. Cullerton said some of the details could change. He said that beer and not just wine and spirits, as previously mentioned, could be included in a liquor tax increase. He added that a proposal to sell lottery tickets online would have to be cleared with the U.S. Department of Justice.
Senate Minority Leader Christine Radogno said that legalizing video gaming and taxing it as a revenue source could actually reduce the number of video poker consoles in the state. She said the legislative Commission on Government Forecasting and Accountability estimated about 65,000 machines could be operating throughout the state, while one proposal would reduce that to about 45,000. However, the actual number of existing machines is unknown, according to the commission.
“I think the idea is to limit them, not to have them on every street corner,” Radogno said. “I mean, they’re already out there, and we want to make sure that the state’s getting the revenue that we could get from the activity that’s already going on.”
Rep. Frank Mautino, a Spring Valley Democrat, already has a video poker measure advancing through the legislature.
That’s the revenue side. The spending side invites a whole new set of complications. “We want to be sure that everyone’s comfortable with the spending before we vote for the revenue side of it,” Radogno said. “So, there’s a lot of detail that has to be worked out there. There’s not gong to be any hidden allocations. No lump sums.”
She said that the leaders have been talking about funneling a large potion of the money through existing programs with established criteria in an attempt to take some of the bickering out of the highly political process.
Ethics
By Bethany Jaeger
Legislation drafted by Gov. Pat Quinn’s Illinois Reform Commission is expected to be ready for debate later next week, and campaign finance limits likely are in the mix.
Sen. Don Harmon, an assistant majority leader from Oak Park, has been working with Patrick Collins, chairman of the commission and former assistant U.S. attorney. While some items such as Freedom of Information Act reforms are expected to sail through the legislative process, more controversial items likely would be introduced in competing bills and debated.
Campaign contribution limits are one example. Lawmakers would debate various proposals and take up-or-down votes on each, according to Harmon.
The Reform Commission recommended capping individual donations at $2,400 and corporate or political organizations’ donations at $5,000. But Harmon said the controversy is “not whether there should be campaign contribution limits — but the size.” Some legislators think that a $2,400 cap is too low and that it would require them to spend too much time raising campaign cash in smaller increments.
A $10,000 limit per calendar year, on the other hand, may be a more comfortable level for many legislators, Harmon said. Some Senate Democrats don’t like basing the limit on a calendar year, but, Harmon said, “We need limits that are meaningful, and the calendar year seems to be an understandable measurement and could enhance the likelihood of enforcement.”
Here are some of the contribution limit bills waiting for action:
- Radogno has proposed SB 1548, a $10,000 limit for individuals, corporations, unions and clubs or political organizations.
- Chicago Democratic Sen. Kwame Raoul, however, would limit individual donations to $7,500 and corporate donations to $20,000, under SB 2257.
- Democratic Rep. Harry Osterman of Chicago introduced HB 24, which resembles the Illinois Reform Commission’s recommendations to mirror federal limits: $2,400 for individuals and $5,000 for political organizations.
- Sen. Heather Steans, a Chicago Democrat, is behind SB 1768, which would establish limits for individuals and political action committees, but it also would cap the amount statewide political campaigns could transfer to candidates at $30,000.
A longer-term proposal, on the other hand, is changing the way the legislature redraws congressional districts. Redistricting is being discussed but not lumped in as part of the end-of-session rush. Reform ideas, which include using a computerized process similar to Iowa’s, are likely to be debated in public hearings throughout this summer or, potentially, a special legislative session in September.
Another controversial issue that could be pushed back is the commission’s recommendation to grant state’s attorneys authority to wiretap conversations as part of public corruption investigations. Federal prosecutors have that power, while state’s attorneys do not (although they can wiretap for other kind of investigations).
A former state’s attorney, Democratic Sen. Bill Haine of Alton, sees red flags in the proposal. State’s attorneys are elected on a partisan basis, while federal attorneys are appointed by the president and confirmed by the U.S. Senate. Federal prosecutors also answer to the U.S. Department of Justice and the U.S. attorney general, which Haine said provides a checks-and-balances system. “So before we vest local politically elected prosecutors with the vast powers of the United States government, we should have a clear idea of where we are going to draw the line and what the checks and balances are. Just giving wiretapping authority, warrentless wiretapping authority or additional wiretapping authority without looking at how we’re going to have checks and balances on that authority, I think, is a mistake.”
Wednesday, May 13, 2009
Texting while driving ban put on hold
By Hilary Russell
A bill that would prohibit texting while driving, even if drivers are stopped and the ignition is turned off, drew heated debated in the Senate today. The measure is being revised. The sponsor, Sen. Martin Sandoval, said he would call the bill for debate again soon.
Sandoval, a Chicago Democrat, opted to pull the bill before lawmakers could vote on it so he could clarify whether drivers would get in trouble for using the GPS functions on their cell phones, texting while idling in traffic jams or texting while sitting on the side of the road.
The devices in question include cell phones with text messaging capabilities and personal digital assistants (PDAs). Navigation systems or devices that are built into automobiles would be exempt from penalty. The bill also would exempt emergency care employees.
Sandoval said he intends to alter the bill to ensure drivers would not be penalized for using their navigation systems on their phones. Sandoval said as long as drivers used their GPS devices solely for the purpose of navigation, they would not be ticketed.
Sen. Mike Jacobs, an East Moline Democrat, cited a statewide poll that showed more than 75 percent of those polled thought texting while driving should be banned. But, he added, it's another story if you're the one getting pulled over and ticketed.
Sen. James Meeks, a Chicago Democrat, questioned how a police officer would differentiate between texting and making a phone call because the same buttons are used to accomplish different tasks. He said Sandoval's measure would give too much latitude to law enforcement. “Now we're giving the police the right to examine individual motorists' cell phones to try to ascertain whether they were sending a text or making a phone call,” he said, later adding, “This is very dangerous.”
One of the main issues opponents have with the current bill is what defines the actual operation of a motor vehicle. Sen. Matt Murphy, a Palatine Republican, agreed that the intent of the bill was to minimize distracted driving. But he wasn't convinced that a driver stuck in gridlock on the interstate could be classified as a putting other vehicles in danger if he or she decided to send a text message.
A bill that would prohibit texting while driving, even if drivers are stopped and the ignition is turned off, drew heated debated in the Senate today. The measure is being revised. The sponsor, Sen. Martin Sandoval, said he would call the bill for debate again soon.
Sandoval, a Chicago Democrat, opted to pull the bill before lawmakers could vote on it so he could clarify whether drivers would get in trouble for using the GPS functions on their cell phones, texting while idling in traffic jams or texting while sitting on the side of the road.
The devices in question include cell phones with text messaging capabilities and personal digital assistants (PDAs). Navigation systems or devices that are built into automobiles would be exempt from penalty. The bill also would exempt emergency care employees.
Sandoval said he intends to alter the bill to ensure drivers would not be penalized for using their navigation systems on their phones. Sandoval said as long as drivers used their GPS devices solely for the purpose of navigation, they would not be ticketed.
Sen. Mike Jacobs, an East Moline Democrat, cited a statewide poll that showed more than 75 percent of those polled thought texting while driving should be banned. But, he added, it's another story if you're the one getting pulled over and ticketed.
Sen. James Meeks, a Chicago Democrat, questioned how a police officer would differentiate between texting and making a phone call because the same buttons are used to accomplish different tasks. He said Sandoval's measure would give too much latitude to law enforcement. “Now we're giving the police the right to examine individual motorists' cell phones to try to ascertain whether they were sending a text or making a phone call,” he said, later adding, “This is very dangerous.”
One of the main issues opponents have with the current bill is what defines the actual operation of a motor vehicle. Sen. Matt Murphy, a Palatine Republican, agreed that the intent of the bill was to minimize distracted driving. But he wasn't convinced that a driver stuck in gridlock on the interstate could be classified as a putting other vehicles in danger if he or she decided to send a text message.
Capital plan taking shape
By Jamey Dunn
Jack Lavin, Gov. Pat Quinn’s chief operating officer, said today that a negotiated proposal for capital plan revenue sources could be ready by next week.
“Generally the framework for funding is there,” Lavin said. “We hope to have that finalized over the next week or so.”
He said that the legislative leaders and Quinn have been focusing on revenue sources in their discussions and added that spending decisions will take longer to hammer out with the legislature.
According to Lavin, there will be no lump-sum appropriations in the capital bill. He said that Quinn wants spending for projects to be specifically listed as line items. Money would also go directly to existing programs, but those programs have set criteria to meet when deciding how to distribute funds.
Lavin laid out the “framework” for revenue before a House appropriations committee this morning. It includes:
Lavin said that a proposal to increase the motor fuel tax is not being considered. “It’s currently not part of the discussion,” he said.
He added that the governor’s Office of Management and Budget is still researching that framework to determine if it would raise the money needed for a major capital plan. The size of the overall plan is not yet determined.
Jack Lavin, Gov. Pat Quinn’s chief operating officer, said today that a negotiated proposal for capital plan revenue sources could be ready by next week.
“Generally the framework for funding is there,” Lavin said. “We hope to have that finalized over the next week or so.”
He said that the legislative leaders and Quinn have been focusing on revenue sources in their discussions and added that spending decisions will take longer to hammer out with the legislature.
According to Lavin, there will be no lump-sum appropriations in the capital bill. He said that Quinn wants spending for projects to be specifically listed as line items. Money would also go directly to existing programs, but those programs have set criteria to meet when deciding how to distribute funds.
Lavin laid out the “framework” for revenue before a House appropriations committee this morning. It includes:
- Ending the diversion of money from the Road Fund to the general fund.
- An increase in vehicle registration and licensing fees.
- An tax increase on wine and spirits. (Beer would be excluded from the increase.)
- An tax increase on candy.
- Applying sales tax to some sweetened tea and coffee beverages, as well as health and beauty products.
- Internet sales of lottery tickets and having a private firm manage the lottery with a focus on appealing to new players.
Lavin said that a proposal to increase the motor fuel tax is not being considered. “It’s currently not part of the discussion,” he said.
He added that the governor’s Office of Management and Budget is still researching that framework to determine if it would raise the money needed for a major capital plan. The size of the overall plan is not yet determined.
Tuesday, May 12, 2009
Two-tiered pension plan still in the works
By Bethany Jaeger
While Gov. Pat Quinn withdrew a proposal last week to require existing state employees and teachers pay more for their health care and pension benefits, creating a two-tiered pension system that would affect newly hired workers is still very much on the table.
Proponents and opponents of the two-tiered concept contained within SB 1292 testified this afternoon before a House committee, and a committee vote is expected Thursday morning. (Changes are expected to the current version.)
Reducing pension benefits for newly hired employees is a critical part of Quinn’s overall budget plan for next fiscal year. He also would short the amount the state pays into the pension system by $2.8 billion over the next two years, but that’s completely separate from SB 1292. “This is a step we have to take, really, to get to that discussion,” said David Vaught, a senior adviser to the governor. He added that a two-tiered system is essential to maintaining a defined benefit plan for public employees. “It’s time to step up and take this one on.”
Rep. Kevin McCarthy, an Orland Park Democrat sponsoring the bill, said reduced benefits for new employees hired after August 1 would help establish a more sustainable pension system that the state could better afford in the future. Illinois ranks last in the nation in terms of having enough money on hand to afford its projected pension obligations.
“All this is going to fit into the final [budget] discussions at the end of the day, but if we don’t make reforms that are included in this bill, talk of any kind of changes in the funding system are very difficult,” he said.
Such business-based organizations as the Civic Federation's Institute for Illinois' Fiscal Sustainability and the Taxpayers Federation of Illinois support the concept of a two-tiered system for new hires. (The General Assembly already uses such a system.) Tom Johnson, president of the Taxpayers Federation of Illinois, described Quinn’s proposed changes as an appropriate way to “modify the plan to reflect today’s reality,” referring to the longer amount of time people draw on their pension benefits because they live longer.
Strong opponents include labor unions, teachers’ unions and the Center for Tax and Budget Accountability. Michael Carrigan, president of the Illinois AFL-CIO, described the proposal as “anti-worker,” while the executive director of the American Federation of State, County and Municipal Employees Council 31, Henry Bayer, said the state pensions aren’t excessive. The average annual pension benefit is $18,000. “You can’t even buy a Ford,” he said.
The Illinois Federation of Teachers’ president, Ed Geppert, testified that Quinn’s plan is “more fiscal nonsense” and that he doesn’t trust the administration’s projected savings. He added that requiring teachers to work until age 67 would cost an additional $1.4 billion in 2009 dollars for the added years of salaries.
The labor and teachers’ organizations also alleged that the state’s failure to make its regularly scheduled payments, not the level of retiree benefits, is the true root of the problem. And reducing benefits for future hires would cause a disincentive to accept and keep a state job, resulting in a lower quality workforce and education.
Ralph Martire, executive director of the bipartisan Center for Tax and Budget Accountability, testified that the state can’t rely on “long-term, highly speculative” savings as a real revenue source to pay pensions. The temptation will be to take the savings up front.
McCarthy said he would try to make more concrete savings estimates available Wednesday.
The legislature’s economic forecasting arm, the Commission on Government Forecasting and Accountability, recently released a report about Quinn’s pension plan. See highlights of SB 1292 and comparisons of Quinn’s plan versus the current payment schedule.
Until Thursday morning, here are a few highlights of SB 1292:
While Gov. Pat Quinn withdrew a proposal last week to require existing state employees and teachers pay more for their health care and pension benefits, creating a two-tiered pension system that would affect newly hired workers is still very much on the table.
Proponents and opponents of the two-tiered concept contained within SB 1292 testified this afternoon before a House committee, and a committee vote is expected Thursday morning. (Changes are expected to the current version.)
Reducing pension benefits for newly hired employees is a critical part of Quinn’s overall budget plan for next fiscal year. He also would short the amount the state pays into the pension system by $2.8 billion over the next two years, but that’s completely separate from SB 1292. “This is a step we have to take, really, to get to that discussion,” said David Vaught, a senior adviser to the governor. He added that a two-tiered system is essential to maintaining a defined benefit plan for public employees. “It’s time to step up and take this one on.”
Rep. Kevin McCarthy, an Orland Park Democrat sponsoring the bill, said reduced benefits for new employees hired after August 1 would help establish a more sustainable pension system that the state could better afford in the future. Illinois ranks last in the nation in terms of having enough money on hand to afford its projected pension obligations.
“All this is going to fit into the final [budget] discussions at the end of the day, but if we don’t make reforms that are included in this bill, talk of any kind of changes in the funding system are very difficult,” he said.
Such business-based organizations as the Civic Federation's Institute for Illinois' Fiscal Sustainability and the Taxpayers Federation of Illinois support the concept of a two-tiered system for new hires. (The General Assembly already uses such a system.) Tom Johnson, president of the Taxpayers Federation of Illinois, described Quinn’s proposed changes as an appropriate way to “modify the plan to reflect today’s reality,” referring to the longer amount of time people draw on their pension benefits because they live longer.
Strong opponents include labor unions, teachers’ unions and the Center for Tax and Budget Accountability. Michael Carrigan, president of the Illinois AFL-CIO, described the proposal as “anti-worker,” while the executive director of the American Federation of State, County and Municipal Employees Council 31, Henry Bayer, said the state pensions aren’t excessive. The average annual pension benefit is $18,000. “You can’t even buy a Ford,” he said.
The Illinois Federation of Teachers’ president, Ed Geppert, testified that Quinn’s plan is “more fiscal nonsense” and that he doesn’t trust the administration’s projected savings. He added that requiring teachers to work until age 67 would cost an additional $1.4 billion in 2009 dollars for the added years of salaries.
The labor and teachers’ organizations also alleged that the state’s failure to make its regularly scheduled payments, not the level of retiree benefits, is the true root of the problem. And reducing benefits for future hires would cause a disincentive to accept and keep a state job, resulting in a lower quality workforce and education.
Ralph Martire, executive director of the bipartisan Center for Tax and Budget Accountability, testified that the state can’t rely on “long-term, highly speculative” savings as a real revenue source to pay pensions. The temptation will be to take the savings up front.
McCarthy said he would try to make more concrete savings estimates available Wednesday.
The legislature’s economic forecasting arm, the Commission on Government Forecasting and Accountability, recently released a report about Quinn’s pension plan. See highlights of SB 1292 and comparisons of Quinn’s plan versus the current payment schedule.
Until Thursday morning, here are a few highlights of SB 1292:
- If enacted, teachers, state employees and judges hired after August 1 this year would earn the lesser benefit and have to work until age 67 before they could retire without penalty. They could retire at age 62 without penalty if they already put in 35 years.
- The retirement life annuity would be 2 percent of the final average salary for each year of service, with a maximum of 70 percent of the final average salary (based on the final eight years of average salary).
- If workers wanted to retire at age 62, the retirement life annuity would decrease by half of a percent for each month they’re below age 67.
- They couldn’t work another full-time state job or teaching job after they retired and drew upon their pensions. If they did work again, they would have to start repaying into the pension system and suspend their benefits.
- The bill currently would not allow teachers and state employees to buy back time used during pregnancy leave so they could retire on time. McCarthy said he’s working to erase that provision so workers could still buy back pregnancy leave, as they can now.
Video gaming advances
by Jamey Dunn
A bill that would expand gambling to help pay for new schools passed in a House committee today.
The measure, sponsored by Rep. Frank Mautino, a Spring Valley Democrat, would allow establishments where liquor is served, fraternal organizations, veterans' clubs and truck stops to have video gaming machines such as video poker. Many places already have the machines, but they can't legally pay out winnings. If approved, the state would require establishments that offered video poker to be licensed and would legalize betting on the games. The machines also would be taxed, with revenue going toward school construction projects and local governments.
Mautino said he did not make racetracks or off-track betting facilities eligible to operate video poker machines because he wanted to keep the bill simple in hopes of increasing its chances of passage. “For years this bill has been around, and it gets involved in the giant end-of-session bills, which usually collapse under their own weight,” he said.
Here's a break down of some of the numbers associated with the measure:
House Speaker Michael Madigan said last week that he does not want to consider any gaming expansions this session.
A bill that would expand gambling to help pay for new schools passed in a House committee today.
The measure, sponsored by Rep. Frank Mautino, a Spring Valley Democrat, would allow establishments where liquor is served, fraternal organizations, veterans' clubs and truck stops to have video gaming machines such as video poker. Many places already have the machines, but they can't legally pay out winnings. If approved, the state would require establishments that offered video poker to be licensed and would legalize betting on the games. The machines also would be taxed, with revenue going toward school construction projects and local governments.
Mautino said he did not make racetracks or off-track betting facilities eligible to operate video poker machines because he wanted to keep the bill simple in hopes of increasing its chances of passage. “For years this bill has been around, and it gets involved in the giant end-of-session bills, which usually collapse under their own weight,” he said.
Here's a break down of some of the numbers associated with the measure:
- 25 percent The percentage of net profits from the video gaming machines that would be taxed.
- 20 percent The amount that would go toward building schools.
- 5 percent The amount that would go to local governments.
- $2 The maximum wager per hand.
- $500 The maximum payout per hand.
- 21 The minimum age to play.
- $5,000 The maximum fine an establishment would pay for allowing someone under 21 to gamble.
- 25 The percent of licensing fees and fines that would go toward treating gambling addiction.
- 75 The percent that would go toward regulating the process.
House Speaker Michael Madigan said last week that he does not want to consider any gaming expansions this session.
Thursday, May 07, 2009
Gaming on or off the table?
By Bethany Jaeger, with Jamey Dunn contributing
The proposal to build three new gambling facilities in northern Illinois (Chicago, Rockford and Waukegan) and expand existing gaming operations reemerged in a new version today. Sen. Terry Link, a Waukegan Democrat, introduced SB 744, which is expected to be debated next week when the legislature returns to the Capitol.
Such expansive gaming bills have built momentum only to collapse in previous years, particularly as lawmakers struggled to agree on a way to finance a major capital construction program. This time, Link’s version would build three new land-based casinos rather than riverboats. And Senate President John Cullerton has said he would not rely on a gaming bill to fund a capital plan because it gets too loaded down by politics.
Gaming, however, is not on House Speaker Michael Madigan’s agenda. “I’m not interested in working on gaming legislation,” he said today during an unrelated Statehouse news conference. “I did that about a year ago, and given that experience, I’m not interested in revisiting that.”
House Minority Leader Tom Cross supports some gaming expansions as a new revenue source, including revenue that could help pay for a construction program. After meeting with Gov. Pat Quinn and Senate Minority Leader Christine Radogno this afternoon, Cross said that the speaker is ruling out gaming as a way to push legislators toward tax increases. “He’s forcing people to look at sales or income tax as the only option to fund things, which I think is a huge mistake in this economy,” he said.
Madigan repeated today that he would support an income tax increase but not increased spending. “I’m prepared to vote for an increase in the income tax to balance the budget and pay the bills but not grow the government,” he said. “This government has grown for six years at an accelerated pace, and now we’re looking at an operating deficit of around $10 billion. And so I don’t think given the history of six years, given the size of the operating deficit, that this is time to grow the government.”
Radogno, like other Senate members, said she hasn’t given up on gaming as a revenue source. “We certainly have some gaming right now, and there’s been support for it in the past. So, I’m still open.”
The proposal to build three new gambling facilities in northern Illinois (Chicago, Rockford and Waukegan) and expand existing gaming operations reemerged in a new version today. Sen. Terry Link, a Waukegan Democrat, introduced SB 744, which is expected to be debated next week when the legislature returns to the Capitol.
Such expansive gaming bills have built momentum only to collapse in previous years, particularly as lawmakers struggled to agree on a way to finance a major capital construction program. This time, Link’s version would build three new land-based casinos rather than riverboats. And Senate President John Cullerton has said he would not rely on a gaming bill to fund a capital plan because it gets too loaded down by politics.
Gaming, however, is not on House Speaker Michael Madigan’s agenda. “I’m not interested in working on gaming legislation,” he said today during an unrelated Statehouse news conference. “I did that about a year ago, and given that experience, I’m not interested in revisiting that.”
House Minority Leader Tom Cross supports some gaming expansions as a new revenue source, including revenue that could help pay for a construction program. After meeting with Gov. Pat Quinn and Senate Minority Leader Christine Radogno this afternoon, Cross said that the speaker is ruling out gaming as a way to push legislators toward tax increases. “He’s forcing people to look at sales or income tax as the only option to fund things, which I think is a huge mistake in this economy,” he said.
Madigan repeated today that he would support an income tax increase but not increased spending. “I’m prepared to vote for an increase in the income tax to balance the budget and pay the bills but not grow the government,” he said. “This government has grown for six years at an accelerated pace, and now we’re looking at an operating deficit of around $10 billion. And so I don’t think given the history of six years, given the size of the operating deficit, that this is time to grow the government.”
Radogno, like other Senate members, said she hasn’t given up on gaming as a revenue source. “We certainly have some gaming right now, and there’s been support for it in the past. So, I’m still open.”
Prepare for ethics: All or nothing?
By Hilary Russell and Jamey Dunn, with Bethany Jaeger contributing
The Illinois Senate Democrats will present their ideas about reforming state government May 18, giving them 15 days to before the legislature is scheduled to adjourn for the summer.
Members of the Illinois Reform Commission, created by Gov. Pat Quinn to recommend ways to restructure state government, today joined Senate President John Cullerton to talk about the future of the commission’s recommendations for reform. Former federal prosecutor Patrick Collins, chairman of the commission, appeared with commissioners Sheila Simon and Brad McMillan at the Statehouse.
Cullerton and Collins made it clear that controversial topics will go through the typical legislative process.
Despite providing no details, Cullerton and Collins agreed that some of the topics would be easier to pass than others. But Cullerton said he remained optimistic that both parties could agree on the reform proposals that advanced.
See the commission’s recommendations here.
Two items that are expected to advance include stricter rules about the way the state contracts with businesses to provide services, as well as increasing transparency to the process of investigating corruption allegations within state government. Both, however, focus on the executive branch, not the legislative branch.
Some recommendations that would affect the legislature, including subjecting legislative leaders to term limits and publicly financing some elections, are likely to be unpopular among lawmakers.
Bills that are not agreed upon will still get a public hearing, according to Cullerton. “There are more areas of agreement than disagreement,” he said, indicating that the four leaders could come to a compromise without dredging the commission’s proposals though the mud.
“A lot will be determined as we go forward in the next few weeks, as this body has a lot of work to do that isn’t just ethics reform,” Collins said. “But we think ethics reform should be high on the list.”
Lawmakers now wait for the commission’s proposals to be drafted into bills. Cullerton added that legislators expect to begin receiving bills from the governor’s office next week when deliberations can start in earnest.
All or nothing?
By Jamey Dunn
Collins has pushed for adoption of all the commission’s recommendations. He said that the plan is comprehensive, and removing parts of it could create loopholes that would allow corruption to slip through. He indicated today that he’s backing off from that to get as many reforms from the report passed as possible.
Collins said he and his fellow commissioners have met with legislators whenever asked , and while they are willing to compromise, there are certain aspects of the report he is not willing to abandon.
“Some have said we’re not willing to negotiate or compromise. That’s ridiculous. But, we aren’t willing to compromise on core values.”
Collins fired back at the media for characterizing the commission as overly idealistic and inflexible. “We are practical people that want results. We don’t want a document that we can hang over someone’s head. We’re not about that, and anybody who suggests otherwise doesn’t know us.”
House Minority Leader Tom Cross agrees that an all-or-nothing approach is unrealistic. “I like most everything on there, but there’s always going to be some things you don’t care for. Nothing in the world [or] in life is all or nothing.”
Senate Minority Leader Christine Radogno said she is ready to compromise, “as long as the reforms are significant and not just window dressing.”
The Illinois Senate Democrats will present their ideas about reforming state government May 18, giving them 15 days to before the legislature is scheduled to adjourn for the summer.
Members of the Illinois Reform Commission, created by Gov. Pat Quinn to recommend ways to restructure state government, today joined Senate President John Cullerton to talk about the future of the commission’s recommendations for reform. Former federal prosecutor Patrick Collins, chairman of the commission, appeared with commissioners Sheila Simon and Brad McMillan at the Statehouse.
Cullerton and Collins made it clear that controversial topics will go through the typical legislative process.
Despite providing no details, Cullerton and Collins agreed that some of the topics would be easier to pass than others. But Cullerton said he remained optimistic that both parties could agree on the reform proposals that advanced.
See the commission’s recommendations here.
Two items that are expected to advance include stricter rules about the way the state contracts with businesses to provide services, as well as increasing transparency to the process of investigating corruption allegations within state government. Both, however, focus on the executive branch, not the legislative branch.
Some recommendations that would affect the legislature, including subjecting legislative leaders to term limits and publicly financing some elections, are likely to be unpopular among lawmakers.
Bills that are not agreed upon will still get a public hearing, according to Cullerton. “There are more areas of agreement than disagreement,” he said, indicating that the four leaders could come to a compromise without dredging the commission’s proposals though the mud.
“A lot will be determined as we go forward in the next few weeks, as this body has a lot of work to do that isn’t just ethics reform,” Collins said. “But we think ethics reform should be high on the list.”
Lawmakers now wait for the commission’s proposals to be drafted into bills. Cullerton added that legislators expect to begin receiving bills from the governor’s office next week when deliberations can start in earnest.
All or nothing?
By Jamey Dunn
Collins has pushed for adoption of all the commission’s recommendations. He said that the plan is comprehensive, and removing parts of it could create loopholes that would allow corruption to slip through. He indicated today that he’s backing off from that to get as many reforms from the report passed as possible.
Collins said he and his fellow commissioners have met with legislators whenever asked , and while they are willing to compromise, there are certain aspects of the report he is not willing to abandon.
“Some have said we’re not willing to negotiate or compromise. That’s ridiculous. But, we aren’t willing to compromise on core values.”
Collins fired back at the media for characterizing the commission as overly idealistic and inflexible. “We are practical people that want results. We don’t want a document that we can hang over someone’s head. We’re not about that, and anybody who suggests otherwise doesn’t know us.”
House Minority Leader Tom Cross agrees that an all-or-nothing approach is unrealistic. “I like most everything on there, but there’s always going to be some things you don’t care for. Nothing in the world [or] in life is all or nothing.”
Senate Minority Leader Christine Radogno said she is ready to compromise, “as long as the reforms are significant and not just window dressing.”
3,000 jobs at stake
By Bethany Jaeger, with Jamey Dunn contributing
House Speaker Michael Madigan wants the “fumigation” of state government to move faster than it has since Gov. Pat Quinn replaced impeached Gov. Rod Blagojevich. The speaker introduced legislation that would force Quinn to assess about 3,000 high-level state employees that had been hired or appointed by Blagojevich and his predecessor, imprisoned Gov. George Ryan.
“I’m not satisfied with the pace of change,” Madigan said during a Statehouse news conference today. “I think that we have to move faster, we have to move more dramatically.”
The concept has support from Quinn and Senate President John Cullerton, according to his spokeswoman, Rikeesha Phelon.
In fact, Quinn said he thinks it’s a good idea and that he expects it to pass. “It actually helps the process. I think it helps us to take boards and commissions where individuals are appointed to set terms that may not expire for years to come and give me an opportunity to evaluate those people who are appointed either by Rod Blagojevich or George Ryan, both of whom are under clouds of doubt.”
Quinn would have 60 days to reevaluate whether he wanted to retain state agency directors, their top assistants or board members or commissioners appointed by Ryan or Blagojevich. Quinn would be able to reappoint people he thought were doing a good job, but they would have to win Senate confirmation again. Employees also would be able to reapply for their positions.
Madigan said the action is not intended to impugn the integrity or the work habits of people who are doing a good job, but it is intended to be “rather dramatic.” “It clearly will be the type of fumigation of the Ryan and Blagojevich appointments that I think the people of the state of Illinois are demanding so that we can move away from the scandals of the past.”
About 90 of about 276 of the state’s boards and commissions would be affected. They include everything from the Abraham Lincoln Presidential Library and Museum to universities' boards of trustees. Those not affected would include state employees who cannot be fired because of their political affiliations (based on the so-called Rutan provision from a 1990 U.S. Supreme Court decision).
A high-profile position affected by the proposal would include Ginger Ostro, director of the governor’s budget office under Blagojevich and, now, Quinn. Someone not affected would be Jack Lavin, Blagojevich’s director of the economic development agency, the Department of Commerce and Economic Opportunity. Quinn appointed Lavin his chief operating officer, responsible for coordinating the state’s capture and use of federal stimulus funds. Also not affected by the legislation for now would be John Filan, Blagojevich’s former budget director and former chief operating officer. He currently serves as executive director the Illinois Finance Authority, created in 2004 by Blagojevich.
Although Filan would not be affected by his bill, Madigan said, “I’d like to come back at a later date on that.”
The bill would potentially fire two senior staff members of the Health Facilities Planning Board, Jeffrey Mark and David Carvalho, whom we wrote about earlier this week. Democrats defended the two employees, while House Minority Leader Tom Cross urged the need to fire them because they served before, during and after Blagojevich insiders corrupted the board. Cross tried in vain yesterday to advance his own legislation that would fire them.
Senate Minority Leader Christine Radogno added, “It makes sense to take a look at people that were here during the times when we have had unprecedented problems.”
Madigan said he intends to advance the legislation next week. Lawmakers return May 12, which starts the end-of-session rush to approve major budget and ethics initiatives by May 31.
House Speaker Michael Madigan wants the “fumigation” of state government to move faster than it has since Gov. Pat Quinn replaced impeached Gov. Rod Blagojevich. The speaker introduced legislation that would force Quinn to assess about 3,000 high-level state employees that had been hired or appointed by Blagojevich and his predecessor, imprisoned Gov. George Ryan.
“I’m not satisfied with the pace of change,” Madigan said during a Statehouse news conference today. “I think that we have to move faster, we have to move more dramatically.”
The concept has support from Quinn and Senate President John Cullerton, according to his spokeswoman, Rikeesha Phelon.
In fact, Quinn said he thinks it’s a good idea and that he expects it to pass. “It actually helps the process. I think it helps us to take boards and commissions where individuals are appointed to set terms that may not expire for years to come and give me an opportunity to evaluate those people who are appointed either by Rod Blagojevich or George Ryan, both of whom are under clouds of doubt.”
Quinn would have 60 days to reevaluate whether he wanted to retain state agency directors, their top assistants or board members or commissioners appointed by Ryan or Blagojevich. Quinn would be able to reappoint people he thought were doing a good job, but they would have to win Senate confirmation again. Employees also would be able to reapply for their positions.
Madigan said the action is not intended to impugn the integrity or the work habits of people who are doing a good job, but it is intended to be “rather dramatic.” “It clearly will be the type of fumigation of the Ryan and Blagojevich appointments that I think the people of the state of Illinois are demanding so that we can move away from the scandals of the past.”
About 90 of about 276 of the state’s boards and commissions would be affected. They include everything from the Abraham Lincoln Presidential Library and Museum to universities' boards of trustees. Those not affected would include state employees who cannot be fired because of their political affiliations (based on the so-called Rutan provision from a 1990 U.S. Supreme Court decision).
A high-profile position affected by the proposal would include Ginger Ostro, director of the governor’s budget office under Blagojevich and, now, Quinn. Someone not affected would be Jack Lavin, Blagojevich’s director of the economic development agency, the Department of Commerce and Economic Opportunity. Quinn appointed Lavin his chief operating officer, responsible for coordinating the state’s capture and use of federal stimulus funds. Also not affected by the legislation for now would be John Filan, Blagojevich’s former budget director and former chief operating officer. He currently serves as executive director the Illinois Finance Authority, created in 2004 by Blagojevich.
Although Filan would not be affected by his bill, Madigan said, “I’d like to come back at a later date on that.”
The bill would potentially fire two senior staff members of the Health Facilities Planning Board, Jeffrey Mark and David Carvalho, whom we wrote about earlier this week. Democrats defended the two employees, while House Minority Leader Tom Cross urged the need to fire them because they served before, during and after Blagojevich insiders corrupted the board. Cross tried in vain yesterday to advance his own legislation that would fire them.
Senate Minority Leader Christine Radogno added, “It makes sense to take a look at people that were here during the times when we have had unprecedented problems.”
Madigan said he intends to advance the legislation next week. Lawmakers return May 12, which starts the end-of-session rush to approve major budget and ethics initiatives by May 31.
Wednesday, May 06, 2009
Dynamic before budget negotiations
By Bethany Jaeger
Video by Hilary Russell
Rod Blagojevich is no longer governor, and it’s easy to assume that the atmosphere within the Capitol has done a 180 with two new legislative leaders and a new governor. But today’s speeches by three legislative leaders and Gov. Pat Quinn before a business luncheon in Springfield showed little if any concrete points of agreement about how they’re going to lead Illinois out of what Quinn deems a fiscal crisis.
The state faces between an $11 billion and $12 billion deficit next fiscal year, according to the governor’s office and the legislature’s economic forecasting arm. Quinn entered the “lion’s den” this morning and afternoon by first speaking to the Illinois Education Association, a teachers’ union that strongly opposes his proposed pension reforms, and then speaking to the Illinois Retail Merchants Association and the Illinois Manufacturers Association, business groups that oppose a state income tax hike.
“The notion that some [politicians] of both parties are running around saying we can get out of this without raising the income tax — they’re living in a dream world,” Quinn said to reporters after his speech.
Much of the speeches repeated statements heard after Quinn first proposed his budget in March. But the context has changed. The Illinois General Assembly now has 25 days to try to enact a state operating budget, finance a major construction program and approve major ethics reforms. My audio recordings failed today, so what follows is a summary of each speech:
Gov. Pat Quinn: He still wants to raise the income tax and increase the personal exemption to shield low-income families from the increase, but he said he’s willing to negotiate on the personal exemption. He also still wants to create a two-tiered pension system for teachers, meaning new hires would receive a less generous pension benefit. According to the Associated Press, however, Quinn used a speech before the Illinois Education Association to reveal that he dropped his proposal to require teachers’ to pay more into their pensions by 2 percent per paycheck. “We didn’t want that to derail a fundamental reform we must adopt, and that’s having a two-tiered system for the new state employees and new teachers,” Quinn later said. “They’re still going to get a pension, a very generous pension. It just won’t be as generous as what currently exists.” He also said he would not cut Medicaid, which is something Republicans support.
House Speaker Michael Madigan: He said he’s been meeting with small groups of Democrats and asking them to rank their most important programs, narrowing the list of places members are willing to cut. The approach, he said, was abnormal because they have to accept a “zero-based budget.” He then cast an ominous cloud over negotiations for a major capital construction program by saying he is not inclined to meet with House Minority Leader Tom Cross because, he said, “when the rubber hits the road, he’s not going to be there.” Madigan and Cross have clashed in the past on everything from gaming to working with Blagojevich. Republican votes are needed in the House to approve major spending or borrowing plans, but the ongoing icy relationships could have a chilling effect on other negotiations.
House Minority Leader Tom Cross: He did not speak at the Illinois Retail Merchants Association luncheon, but he did address the media later in the Capitol. He said he would “want no part” in a capital plan that financed construction projects by increasing the state income tax or the motor fuel tax. While he hasn’t meet with Madigan, Cross said he has met with both Senate leaders and the governor and talked about revenue ideas. “The bottom line is we’re all talking,” Cross said. “And they’re, I think, fairly productive talks of narrowing down some revenue streams to raise about $1 billion. I think it’s all good.” He specifically mentioned conversations about the House’s idea to legalize video poker and to the Senate’s idea to privatize the Illinois Lottery. Why the speaker spoke out against working with him, he said, is baffling. “I think with the speaker, there’s a pattern when he doesn’t want to do something himself, he looks for a villain or for somebody else to blame. And history will show that we are for capital.”
Senate President John Cullerton: He said he agrees with Republicans that the state should trim spending before resorting to raising income taxes. However, if the state still lacked enough revenue to maintain the same level of core services, he said he will ask the GOP to help approve revenue enhancements. Some Democratic members within his caucus also are working on a plan to expand gaming to raise money, but gaming expansions have been tried and failed multiple times in the past few years. The difference this time is that Cullerton has said he will not peg new gaming revenues to pay for construction plans. That could ease some political pressure on the size of the plan, which plagued previous efforts. Madigan has been cool to the idea of expanded gaming, although his chamber did advance a measure to legalize and tax video poker machines in taverns.
Senate Minority Leader Christine Radogno: She opposes income tax increases and said the state first needs to cut spending, find efficiencies and grow the economy with a capital plan that creates jobs. She agreed with Quinn’s proposal to create a two-tiered system for newly hired teachers as a way to control costs in the long run. She added that she supports Quinn’s Illinois Reform Commission’s ideas to reform state government, including campaign contribution limits. She said she “would vote for all of them as is as opposed to having nothing.”
Radogno also said she’s been working with Cullerton and Quinn and mentioned a new chemistry within the Capitol, which bodes well for a more productive state government. “There’s hope that we can actually accomplish something,” she said.
Yet, nothing’s truly off the table right now. The legislature and the governor have a lot of negotiating to do before they’re able to enact an operating budget or a capital construction plan within 25 days, but that’s likely to require all four legislative leaders to start meeting with Quinn in the same room soon.
Video by Hilary Russell
Rod Blagojevich is no longer governor, and it’s easy to assume that the atmosphere within the Capitol has done a 180 with two new legislative leaders and a new governor. But today’s speeches by three legislative leaders and Gov. Pat Quinn before a business luncheon in Springfield showed little if any concrete points of agreement about how they’re going to lead Illinois out of what Quinn deems a fiscal crisis.
The state faces between an $11 billion and $12 billion deficit next fiscal year, according to the governor’s office and the legislature’s economic forecasting arm. Quinn entered the “lion’s den” this morning and afternoon by first speaking to the Illinois Education Association, a teachers’ union that strongly opposes his proposed pension reforms, and then speaking to the Illinois Retail Merchants Association and the Illinois Manufacturers Association, business groups that oppose a state income tax hike.
“The notion that some [politicians] of both parties are running around saying we can get out of this without raising the income tax — they’re living in a dream world,” Quinn said to reporters after his speech.
Much of the speeches repeated statements heard after Quinn first proposed his budget in March. But the context has changed. The Illinois General Assembly now has 25 days to try to enact a state operating budget, finance a major construction program and approve major ethics reforms. My audio recordings failed today, so what follows is a summary of each speech:
Gov. Pat Quinn: He still wants to raise the income tax and increase the personal exemption to shield low-income families from the increase, but he said he’s willing to negotiate on the personal exemption. He also still wants to create a two-tiered pension system for teachers, meaning new hires would receive a less generous pension benefit. According to the Associated Press, however, Quinn used a speech before the Illinois Education Association to reveal that he dropped his proposal to require teachers’ to pay more into their pensions by 2 percent per paycheck. “We didn’t want that to derail a fundamental reform we must adopt, and that’s having a two-tiered system for the new state employees and new teachers,” Quinn later said. “They’re still going to get a pension, a very generous pension. It just won’t be as generous as what currently exists.” He also said he would not cut Medicaid, which is something Republicans support.
House Speaker Michael Madigan: He said he’s been meeting with small groups of Democrats and asking them to rank their most important programs, narrowing the list of places members are willing to cut. The approach, he said, was abnormal because they have to accept a “zero-based budget.” He then cast an ominous cloud over negotiations for a major capital construction program by saying he is not inclined to meet with House Minority Leader Tom Cross because, he said, “when the rubber hits the road, he’s not going to be there.” Madigan and Cross have clashed in the past on everything from gaming to working with Blagojevich. Republican votes are needed in the House to approve major spending or borrowing plans, but the ongoing icy relationships could have a chilling effect on other negotiations.
House Minority Leader Tom Cross: He did not speak at the Illinois Retail Merchants Association luncheon, but he did address the media later in the Capitol. He said he would “want no part” in a capital plan that financed construction projects by increasing the state income tax or the motor fuel tax. While he hasn’t meet with Madigan, Cross said he has met with both Senate leaders and the governor and talked about revenue ideas. “The bottom line is we’re all talking,” Cross said. “And they’re, I think, fairly productive talks of narrowing down some revenue streams to raise about $1 billion. I think it’s all good.” He specifically mentioned conversations about the House’s idea to legalize video poker and to the Senate’s idea to privatize the Illinois Lottery. Why the speaker spoke out against working with him, he said, is baffling. “I think with the speaker, there’s a pattern when he doesn’t want to do something himself, he looks for a villain or for somebody else to blame. And history will show that we are for capital.”
Senate President John Cullerton: He said he agrees with Republicans that the state should trim spending before resorting to raising income taxes. However, if the state still lacked enough revenue to maintain the same level of core services, he said he will ask the GOP to help approve revenue enhancements. Some Democratic members within his caucus also are working on a plan to expand gaming to raise money, but gaming expansions have been tried and failed multiple times in the past few years. The difference this time is that Cullerton has said he will not peg new gaming revenues to pay for construction plans. That could ease some political pressure on the size of the plan, which plagued previous efforts. Madigan has been cool to the idea of expanded gaming, although his chamber did advance a measure to legalize and tax video poker machines in taverns.
Senate Minority Leader Christine Radogno: She opposes income tax increases and said the state first needs to cut spending, find efficiencies and grow the economy with a capital plan that creates jobs. She agreed with Quinn’s proposal to create a two-tiered system for newly hired teachers as a way to control costs in the long run. She added that she supports Quinn’s Illinois Reform Commission’s ideas to reform state government, including campaign contribution limits. She said she “would vote for all of them as is as opposed to having nothing.”
Radogno also said she’s been working with Cullerton and Quinn and mentioned a new chemistry within the Capitol, which bodes well for a more productive state government. “There’s hope that we can actually accomplish something,” she said.
Yet, nothing’s truly off the table right now. The legislature and the governor have a lot of negotiating to do before they’re able to enact an operating budget or a capital construction plan within 25 days, but that’s likely to require all four legislative leaders to start meeting with Quinn in the same room soon.
Cigarette tax phase-in
By Jamey Dunn
A proposed $1 a pack increase in the sales tax on cigarettes moved quickly through the Senate and awaits a final vote in the House. Although the bill, as written, has momentum and solid support among Democrats, opponents made a case for a compromised version today.
The Illinois Petroleum Marketers Association and the Illinois Association of Convenience Stores commissioned a study by Illinois State University on the impact of the proposed increase. Both organizations say the increase would negatively effect retailers they represent.
Bill Fleischli, executive vice president of the Illinois Association of Convenience Stores said: “The convenience store industry is a major employer in the state of Illinois, with facilities in every county. If this tax is enacted, it will paralyze this industry. It will cripple expansion, cost Illinois jobs, and all this will slow an economic recovery that Illinois so badly needs.”
Opponents to the tax argue that it would drive customers to border states with lower taxes, and that while Illinois residents are in those states, they also would purchase gasoline and meals. Greg Blankenship, spokesman for the tax watch dog organization Illinois Alliance for Growth, said the tax hike is regressive because smokers tend to have lower incomes, and that it is unreliable because it could drive down cigarette sales in the state. He added that lawmakers seem unsure about whether the tax is meant to address a public health issue or create revenue for the general fund.
“Is the purpose of this tax to stop people smoking, or is it to plug a budget deficit?” Blankenship said. “I mean, you really can’t have it both ways.”
The study proposes a compromise that would still result in a $1 per pack increase. The measure that is in the House would increase the tax $1 over the next year. The study suggests increasing the tax over four years, a quarter per year, to avoid a sticker shock to smokers. The study claims that this model would result in more revenue in the long run because people would be more likely to accept a gradual increase and continue buying cigarettes in Illinois.
Don Apgar, division manager for Martin and Hayley Inc., which operates Huck’s convenience stores throughout the Midwest, said without the sticker shock, fewer smokers might leave the state to buy cigarettes.
A proposed $1 a pack increase in the sales tax on cigarettes moved quickly through the Senate and awaits a final vote in the House. Although the bill, as written, has momentum and solid support among Democrats, opponents made a case for a compromised version today.
The Illinois Petroleum Marketers Association and the Illinois Association of Convenience Stores commissioned a study by Illinois State University on the impact of the proposed increase. Both organizations say the increase would negatively effect retailers they represent.
Bill Fleischli, executive vice president of the Illinois Association of Convenience Stores said: “The convenience store industry is a major employer in the state of Illinois, with facilities in every county. If this tax is enacted, it will paralyze this industry. It will cripple expansion, cost Illinois jobs, and all this will slow an economic recovery that Illinois so badly needs.”
Opponents to the tax argue that it would drive customers to border states with lower taxes, and that while Illinois residents are in those states, they also would purchase gasoline and meals. Greg Blankenship, spokesman for the tax watch dog organization Illinois Alliance for Growth, said the tax hike is regressive because smokers tend to have lower incomes, and that it is unreliable because it could drive down cigarette sales in the state. He added that lawmakers seem unsure about whether the tax is meant to address a public health issue or create revenue for the general fund.
“Is the purpose of this tax to stop people smoking, or is it to plug a budget deficit?” Blankenship said. “I mean, you really can’t have it both ways.”
The study proposes a compromise that would still result in a $1 per pack increase. The measure that is in the House would increase the tax $1 over the next year. The study suggests increasing the tax over four years, a quarter per year, to avoid a sticker shock to smokers. The study claims that this model would result in more revenue in the long run because people would be more likely to accept a gradual increase and continue buying cigarettes in Illinois.
Don Apgar, division manager for Martin and Hayley Inc., which operates Huck’s convenience stores throughout the Midwest, said without the sticker shock, fewer smokers might leave the state to buy cigarettes.
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