By Jamey Dunn
As many states, including Illinois, are poised to begin their new fiscal years tomorrow, governors are urging the U.S. Congress to approve billions in Medicaid funds that are already built into the states' budgets.
The American Recovery and Reinvestment Act temporarily raised federal matching funds on some Medicaid services from 50 cents on the dollar to 62. This increase is set to expire on December 31. A plan to extend the rate for six more months has passed both the U.S. House and Senate in different bills and has President Barack Obama’s backing.
However, the newest version of the plan was rolled into the embattled unemployment benefits extension bill, which may not pass before Congress takes a break from July 4 to July 14.
Illinois’ budget plan counted on that extension happening. Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Oregon, Hawaii, Idaho, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Washington, and Washington, D.C., were planning on getting the extension as well.
“I think we were right to assume the extension. But now that extension is in peril,”
said Pennsylvania Gov. Ed Rendell. His state would lose about $850 million in federal Medicaid funds if the bill is not passed.
Instead of presenting his budget cuts today, as reported Monday, Illinois Gov. Pat Quinn joined 10 other governors from across the country to call on Congress to extend the higher reimbursement rate by six months.
All the governors involved said they have made historic cuts to their budgets, and ending the higher rate would force them to cut into basic essential services such as education. “We have cut so much in so many areas, we would have to look at things we have never put on the table,” Michigan Gov. Jennifer Granholm, whose state will be out more than $500 million. She said if she cut all prescription drug assistance and long-term care facility funding in Michigan, it would only fill about half the potential hole.
New York Gov. David Paterson, who has already vetoed funding to programs he introduced when he was a state legislator, has threatened to veto education spending and legislative member initiatives if the extension doesn’t pass and legislators fail to address what would be about a $1 billion void in New York’s budget.
“It has broken our hearts to make these cuts. … Now, when we have reached the margin of our means, we ask for some assistance,” he said.
Quinn said the $750 million that Illinois was counting on for the next fiscal year could mean the difference between having a job and unemployment for some Illinoisans. “Our providers, many of them will be forced to shut down and lay off workers,” he said.
He said it was imprudent of Congress to cut back on funding during a time when more people need help covering their medical costs.
California Gov. Arnold Schwarzenegger, whose state would get about $1.8 billion from the proposed extension, agreed. He said it is wrong for Congress to mandate coverage levels but refuse to give states more funding when a recession makes demand go up.
“The federal government cannot have it both ways. … It’s simply unfair and will have devastating consequences.”
Medical providers may find it unfair as well. In order to get the elevated match, states had to operate on a 30-day payment cycle. States such as Illinois, which is months behind on payments to schools and social service providers, might not keep the providers at the top of the priority list without this incentive.
In the end, all of these states, because of shortfalls, planned their budgets around a substantial revenue source that had no guarantees of coming through. Now, they may have to rush to solve the problem. Some plan to call special legislative sessions in the next few weeks. Some governors, such as Paterson, will use components of the budget to try and cajole legislators into facing the issues.
Quinn’s Office of Management and Budget has yet to return inquiries about how Illinois will handle the possibility of about $7o0 million missing from the budget. It appears Quinn still hasn’t accepted the idea that $4 billion in borrowing he proposed to make the required pension payment may not become a reality. This new development could give him more reason to call the legislature back for a special session.
Quinn is scheduled to present his plan tomorrow morning for the lump-sum budget passed by the General Assembly. Tomorrow is the first day of the new fiscal year, and Illinois is heading into it billions short on funds but with no lack of uncertainty.
Wednesday, June 30, 2010
Monday, June 28, 2010
Supreme Court rules against Chicago handgun ban
By Jamey Dunn
In the wake of a recent drastic spike in gun violence, the U.S. Supreme Court ruled in favor of Chicago residents seeking to own handguns.
The city has banned handguns since 1982. The decision comes two years after the court struck down a similar ban in Washington, D.C., but that ruling didn't apply to any areas not under the jurisdiction of the federal government. Today's ruling determined that states and municipalities could not take away residents’ Second Amendment rights but does not bar the city from regulating gun ownership.
“The big deal about this case is that it applies to every municipality and every state government in the U.S.,” said Richard Pearson, executive director of the Illinois State Rifle Association. The association was a plaintiff in the case.
Mayor Richard Daley said the city plans to rewrite the ban in an attempt to make it legal.
"I'm disappointed by the decision, but it's not surprising," Daley said at a Chicago news conference. "We're still reviewing the entire decision, but it means that Chicago's current handgun ban is unenforceable, so we're working to rewrite our ordinance in a reasonable and responsible way to protect Second Amendment rights and protect Chicagoans from gun violence."
He also told the Chicago Tribune the ruling would prompt new regulation, and city officials are looking at ordinances passed in D.C. after that city’s ban was struck down. Some options up for consideration would be a gun database, which would track firearms from their manufacture through each step ending in sales to owners. Another possibility is requiring ballistic “fingerprints” of weapons to make it easier for law enforcement to match bullets with the guns that fired them.
Lawrence Solum, a professor of law and philosophy at the University of Illinois College of Law, says the rulings on both the Chicago and D.C. bans leave such options in a legal gray area.
“The Supreme Court provided absolutely no guidance to lower courts in the many legal challenges — some of which are already in progress — to gun control ordinances and statutes that are less restrictive than the 'handgun bans' invalidated [by these rulings]. It seems almost certain that the lower federal courts will apply a variety of inconsistent standards. This means that the Second Amendment will surely return to the Supreme Court in the next two or three years, as these cases work there way through the system,” he said in a written statement.
“We think it probably is just the start of the fight,” Pearson said. He added that the ruling might make legislators think twice about gun control laws and the potential court challenges they face. “When lawmakers anywhere start to pass a firearms law, they have to consider the Supreme Court ruling. It put the Second Amendment along with other rights, on an equal standing.”
Meanwhile proponents and critics of the ban both point to the recent uptick in violence in Chicago — almost 30 people shot last weekend, leading to three deaths, and more than 50 shot and 10 killed the previous weekend — to support their points. Those in favor of the ban say more guns will equal more gun crimes. Opponents say the violence shows the ban is not working and law-abiding citizens should be allowed handguns to protect themselves.
Chicago's gun registration program will accept handgun registrations today. While they have received several inquiries, no one had filled out the paperwork as of this afternoon.
Quinn to release budget plans Wednesday
By Jamey Dunn
Gov. Pat Quinn says he plans to release his plans for the budget, including where he will make cuts, on Wednesday, the last day of the current fiscal year.
Quinn says his top priorities are education and health care, which typically account for more than half of all general revenue spending. He said he also wants to protect public safety from deep cuts. If this holds true, it could mean human services, which make up more than 20 percent of spending from general revenues, could be facing cuts come Wednesday.
Quinn called out legislators for not giving specifics in the budget they approved last month.
Gov. Pat Quinn says he plans to release his plans for the budget, including where he will make cuts, on Wednesday, the last day of the current fiscal year.
Quinn says his top priorities are education and health care, which typically account for more than half of all general revenue spending. He said he also wants to protect public safety from deep cuts. If this holds true, it could mean human services, which make up more than 20 percent of spending from general revenues, could be facing cuts come Wednesday.
Quinn called out legislators for not giving specifics in the budget they approved last month.
“The General Assembly basically did not want to make any decisions on the budget they passed, a lump sum budget, and gave all those decisions to me, the governor," he said
Quinn is attempting to pressure the Senate to return to Springfield and pass about S4 billion in borrowing to make the state's required employee pension payment for fiscal year 2011. So far, there has been no indication that will happen. Quinn will not say if he intends to call legislators back in a special session attempt to get the borrowing passed.
Thursday, June 24, 2010
Quinn signs STAR bonds
By Jamey Dunn
Gov. Pat Quinn approved a controversial economic stimulus plan today that is meant to bring development to an area of southern Illinois with double-digit unemployment rates.
Senate Bill 2093 will allow Holland Construction Services to use Sales Tax and Revenue (STAR) bonds to fund up to half of the construction of a planned 400-acre shopping and entertainment complex near Marion. That will mean the sales tax dollars generated by the estimated $378 million development would help to fund its creation instead of going to state government. Fifteen percent of any new property tax revenue from the complex would go to area schools.
“We have a lot of folks in southern Illinois who need a job. And we want to help them get that job and keep that job,” Quinn said at a Marion news conference. “This legislation is going to help us create jobs — and real jobs that you can depend on; you can support a family on.”
The plan is a pilot program exclusive to this project. However, critics say it is only a matter of time before other areas want to do the same.
In the days leading up to the passage of the bill, Mount Vernon Mayor Mary Jane Chesley came to Springfield and testified that her city, about 40 miles away, would be hurt by the plan. She and Sen. John Jones, a Republican from Mount Vernon, asked that the town be included in the legislation, but the General Assembly did not comply.
Detractors say Illinois cannot afford to lose large chunks of tax revenue during a budget crisis, especially if projects similar to the one near Marion are eventually allowed to spring up throughout the state. The Illinois Department of Revenue estimated that STAR bond district alone would cost the state $287.5 million to $437.5 million in future sales taxes revenues.
But those in favor of the plan say the lost revenue is a tolerable trade-off for new business in an area that has historically relied on coal mines, many of which now closed, as a major employer and which has been hit hard by the recent financial turmoil.
Rep. John Bradley, a Marion Democrat, said people in his region have hoped for new jobs for years. “When I was a little boy growing up in southern Illinois watching the coal mines close, and as I grew up and we got older, we saw Maytag close and Circuit City leave, we always wondered if this day would come. We knew if we worked together, and we took a leap of faith, and we joined hands as a region, that we could do it.”
Gov. Pat Quinn approved a controversial economic stimulus plan today that is meant to bring development to an area of southern Illinois with double-digit unemployment rates.
Senate Bill 2093 will allow Holland Construction Services to use Sales Tax and Revenue (STAR) bonds to fund up to half of the construction of a planned 400-acre shopping and entertainment complex near Marion. That will mean the sales tax dollars generated by the estimated $378 million development would help to fund its creation instead of going to state government. Fifteen percent of any new property tax revenue from the complex would go to area schools.
“We have a lot of folks in southern Illinois who need a job. And we want to help them get that job and keep that job,” Quinn said at a Marion news conference. “This legislation is going to help us create jobs — and real jobs that you can depend on; you can support a family on.”
The plan is a pilot program exclusive to this project. However, critics say it is only a matter of time before other areas want to do the same.
In the days leading up to the passage of the bill, Mount Vernon Mayor Mary Jane Chesley came to Springfield and testified that her city, about 40 miles away, would be hurt by the plan. She and Sen. John Jones, a Republican from Mount Vernon, asked that the town be included in the legislation, but the General Assembly did not comply.
Detractors say Illinois cannot afford to lose large chunks of tax revenue during a budget crisis, especially if projects similar to the one near Marion are eventually allowed to spring up throughout the state. The Illinois Department of Revenue estimated that STAR bond district alone would cost the state $287.5 million to $437.5 million in future sales taxes revenues.
But those in favor of the plan say the lost revenue is a tolerable trade-off for new business in an area that has historically relied on coal mines, many of which now closed, as a major employer and which has been hit hard by the recent financial turmoil.
Rep. John Bradley, a Marion Democrat, said people in his region have hoped for new jobs for years. “When I was a little boy growing up in southern Illinois watching the coal mines close, and as I grew up and we got older, we saw Maytag close and Circuit City leave, we always wondered if this day would come. We knew if we worked together, and we took a leap of faith, and we joined hands as a region, that we could do it.”
K-12 to take almost $300 million in cuts
By Jamey Dunn
The Illinois State Board of Education approved almost $300 million in cuts to K-12 education today.
The board had anticipated a $480 million shortfall from last year’s budget, based on the budget approved by the General Assembly. But Gov. Pat Quinn did allocate $194 million to bilingual and early childhood education, which the board had listed among its proposed cuts.
The Illinois State Board of Education approved almost $300 million in cuts to K-12 education today.
The board had anticipated a $480 million shortfall from last year’s budget, based on the budget approved by the General Assembly. But Gov. Pat Quinn did allocate $194 million to bilingual and early childhood education, which the board had listed among its proposed cuts.
“There are federal requirements for districts to provide bilingual education and the state is strongly committed to providing early childhood programs,” Kelly Kraft, a spokesperson for Quinn’s Office of Management and Budget, said in a written statement.
The budget will maintain the foundation spending level at $6,119 per student.
“Those are the primary funds that districts really rely on, so that’s important,” said Mary Fergus, a spokesperson for the state board. She said the board wanted to avoid cutting programs that receive matching federal funds because that would result in losing those dollars, as well.
“What we had to do was go to some of our more flexible but still critical and important programs,” she said.
The budget zeros out funding for more than a dozen programs, including: arts and foreign language, agricultural education, advanced placement classes, alternative schools for at-risk kids and school breakfast.
While some might consider the numbers grim, Fergus said the one positive is that schools can now start planning their budgets and making decisions such as whether to rehire some of the thousands of teachers and staff who were given pinks slips earlier this spring.
She said that the board cannot yet predict how many educational employees will remain jobless in the fall, but she thinks earlier estimates of more than 13,000 layoffs will prove to be accurate.
The budget will maintain the foundation spending level at $6,119 per student.
“Those are the primary funds that districts really rely on, so that’s important,” said Mary Fergus, a spokesperson for the state board. She said the board wanted to avoid cutting programs that receive matching federal funds because that would result in losing those dollars, as well.
“What we had to do was go to some of our more flexible but still critical and important programs,” she said.
The budget zeros out funding for more than a dozen programs, including: arts and foreign language, agricultural education, advanced placement classes, alternative schools for at-risk kids and school breakfast.
While some might consider the numbers grim, Fergus said the one positive is that schools can now start planning their budgets and making decisions such as whether to rehire some of the thousands of teachers and staff who were given pinks slips earlier this spring.
She said that the board cannot yet predict how many educational employees will remain jobless in the fall, but she thinks earlier estimates of more than 13,000 layoffs will prove to be accurate.
Wednesday, June 23, 2010
Asian carp found near Lake Michigan
By Jamey Dunn
The Illinois Department of Natural (IDNR) Resources announced today that a commercial fisherman, contracted by the department to search for carp, caught the almost-20-pound male specimen in Lake Calumet—about 6 miles from Lake Michigan. This is the first carp found beyond the barrier.
Michigan Attorney General Mike Cox unsuccessfully appealed to the U.S. Supreme Court to close the locks to keep the fish out of Lake Michigan. He said thousands of jobs depend on the environmental health of the lake. Invasive animals can severely damage ecosystems they pervade as they compete with existing organisms for resources.
Cox called on President Barack Obama to intervene. "Our worst fears were realized with the discovery of Asian carp near the Great Lakes," Cox said in a written statement. "Responsibility for this potential economic and ecological disaster rests solely with President Obama. He must take action immediately by ordering the locks closed and producing an emergency plan to stop Asian carp from entering Lake Michigan."
Cox added that his agency is considering further legal action.
“At this time there is not intention to close the locks,” said Mike White, director of programs for the Great Lakes and Ohio River division of the U.S. Army Corps of Engineers. “At this time we see no reason, relative to the threat that has been identified, to take any step toward permanent lock closure.”
John Rogner, assistant director of the IDNR, agreed that one fish does not necessarily mean the threat has become more significant. He said carp DNA has been detected beyond the barrier, but no fish have been found, so the assumption has been that if there are fish, they are few in number. He said the discovery of only one carp would support that theory.
Rogner said the first task is to find out whether the fish is part of a greater population of carp. Tests may be able to determine if the fish has been in the lake for a while, or if it was recently introduced. Researchers also may also be able to find out if it was born in the wild or captivity. People dumping bait or stocking fishing areas can accidentally introduce Asian carp to waterways.
“We set out on a fact-finding mission, and we have found what we were looking for. This is important evidence, and the more information we have about where Asian carp are, the better chance we have of keeping them out of the Great Lakes,” he said.
The IDNR plans to step up its search for Asian carp both in the Calumet area and other spots throughout the Chicago Area Waterway System, as well as efforts to remove the fish downstate before they can reach the barrier. They will also begin a risk assessment analysis to help determine whether more action is needed to prevent the fish from reaching the Great Lakes.
Tuesday, June 22, 2010
Feds still want Thomson
By Jamey Dunn
Federal officials reiterated their intent today to purchase an Illinois prison by the end of the year, even if it may not be used to house terror suspects.
U.S. Sen. Dick Durbin and Gov. Pat Quinn announced in December that President Barack Obama’s administration intended to buy Thomson Correctional Center as part of a plan to fulfill Obama’s campaign vow to close the embattled federal Guantanamo Bay detention center. Inmates from Guantanamo would be housed in a dedicated area of Thomson, while the rest of it would be used for federal convicts.
Thomson, which is in northwest Illinois, has been virtually empty since its completion in 2001.
The plan stalled after losing support in Congress. A Senate committee approved a defense spending plan in May that lacked funding for the portion of the prison that would hold former Guantanamo detainees and be administered by the Defense Department and .
However, a letter from a Justice Department official sent to Durbin and Quinn on Monday lays out the Bureau of Prison’s (BOP) intentions to continue with the portion of the plan that would use Thomson as a federal prison.
“BOP plans to make certain modifications to the facility and hire and train a full complement of staff while the Defense Department continues to work with Congress to obtain authorization and funding for a portion of the Thomson facility.”
The bureau would have full run of the facility after it is purchased. Basically the part of the plan that involves housing terror suspects, which was the highly politicized and controversial aspect, has been put on the back burner, but the feds say they still need the prison. Illinois lawmakers who were opposed to the Guantanamo closure but also looking for any kind of financial stimulus in an economically hard hit area are probably breathing sighs of relief at the plan moving forward without that aspect, at least for the time being.
According to Quinn and Durbin, the sale would create about 3,000 jobs, half of which they expect to go to locals.
The BOP has more than 209,000 inmates in custody, up from 202,000 last year. Illinois faces its own crowding problem that has many prisons filled to double capacity, while a facility like Thomson has only seen a handful of prisoners because of a lack of funds.
Critics of the sale say Illinois should open Thomson to alleviate its own corrections system. Rep Jim Sacia, a Republican from nearby Pecatonica, said he has been trying every avenue to do just that since he got into office eight years ago, but the money just wasn’t and still isn't there. “If we couldn’t afford to open it then, don’t you dare get on your high horse and tell me we can afford to open it today,” he says.
According to the Department of Corrections, Thomson has been completely empty of prisoners and staff since the department shut it down May 1. Illinois and the federal government are conducting appraisals of the facility in anticipation of the sale.
Federal officials reiterated their intent today to purchase an Illinois prison by the end of the year, even if it may not be used to house terror suspects.
U.S. Sen. Dick Durbin and Gov. Pat Quinn announced in December that President Barack Obama’s administration intended to buy Thomson Correctional Center as part of a plan to fulfill Obama’s campaign vow to close the embattled federal Guantanamo Bay detention center. Inmates from Guantanamo would be housed in a dedicated area of Thomson, while the rest of it would be used for federal convicts.
Thomson, which is in northwest Illinois, has been virtually empty since its completion in 2001.
The plan stalled after losing support in Congress. A Senate committee approved a defense spending plan in May that lacked funding for the portion of the prison that would hold former Guantanamo detainees and be administered by the Defense Department and .
However, a letter from a Justice Department official sent to Durbin and Quinn on Monday lays out the Bureau of Prison’s (BOP) intentions to continue with the portion of the plan that would use Thomson as a federal prison.
“BOP plans to make certain modifications to the facility and hire and train a full complement of staff while the Defense Department continues to work with Congress to obtain authorization and funding for a portion of the Thomson facility.”
The bureau would have full run of the facility after it is purchased. Basically the part of the plan that involves housing terror suspects, which was the highly politicized and controversial aspect, has been put on the back burner, but the feds say they still need the prison. Illinois lawmakers who were opposed to the Guantanamo closure but also looking for any kind of financial stimulus in an economically hard hit area are probably breathing sighs of relief at the plan moving forward without that aspect, at least for the time being.
According to Quinn and Durbin, the sale would create about 3,000 jobs, half of which they expect to go to locals.
The BOP has more than 209,000 inmates in custody, up from 202,000 last year. Illinois faces its own crowding problem that has many prisons filled to double capacity, while a facility like Thomson has only seen a handful of prisoners because of a lack of funds.
Critics of the sale say Illinois should open Thomson to alleviate its own corrections system. Rep Jim Sacia, a Republican from nearby Pecatonica, said he has been trying every avenue to do just that since he got into office eight years ago, but the money just wasn’t and still isn't there. “If we couldn’t afford to open it then, don’t you dare get on your high horse and tell me we can afford to open it today,” he says.
According to the Department of Corrections, Thomson has been completely empty of prisoners and staff since the department shut it down May 1. Illinois and the federal government are conducting appraisals of the facility in anticipation of the sale.
Monday, June 21, 2010
Quinn signs payday loan regulation
By Jamey Dunn
Gov. Pat Quinn signed legislation today that is intended to keep payday lenders from slipping through a regulatory loophole.
The bill changes both the Consumer Installment Loan Act and the Payday Loan Reform Act. The General Assembly passed the latter in 2005 to place tighter controls on payday lenders.
The Payday Loan Reform defined such loans as lasting only 120 days. The idea being that a customer, who might be in a financial pinch, takes out the loan and pays it off out of his or her next few paychecks.
But according to consumer advocates, some in the industry used that definition as a way to skirt regulation. Extending the terms of payday loans meant they no longer fell under the regulatory power of the 2005 act. Instead, they could be defined as installment loans, which are regularly secured with collateral such as a car title and had no interest caps.
The legislation, which Quinn signed at a Chicago news conference, caps interest levels for installment loans at 99 percent for loans under $4,000 and 36 percent for loans above that threshold.
Payday lenders will not be able to charge more than $15.50 per $100 loaned out every two weeks. Brent Adams, secretary of the Illinois Department of Financial and Professional Regulation, says that is the most important aspect of the law because no matter how a loan is categorized, there will be limits on what lenders can charge for it.
Companies offering loans will have to determine a customer’s ability to repay the debt. They will also no longer be able to penalize customers for paying off loans early or require large lump-sum “balloon” payments at the end of a payment cycle.
During the news conference William McNary, co-director of the advocacy group Citizen Action Illinois, held up a contract for a loan at what he said was made at 700 percent interest. He said the new law will “set the stage for bringing an end to the era of legalized loan sharking here in Illinois.” McNary ripped the contract to pieces while concluding his statement.
Maywood Democratic Sen. Kimberly Lightford and Skokie Democratic Rep. Lou Lang, sponsors of the bill, said the negotiation process was long and arduous, but they were able to garner support from lenders. “The industry, I’ve got to tell you, wow, they’re tough. And we were able to negotiate and bring them all on board,” Lightford said.
However Attorney General Lisa Madigan said those strapped for cash still need to be wary of payday and installment loans and should exhaust all other options first.
“This law will help consumers who find that there is nowhere else to turn except a payday or installment loan. But please remember, extreme caution still has to be exercised when taking out a short-term high-cost loan. … People should only consider those types of loans in an emergency as a last resort.”
The new regulations take effect nine months from today.
Gov. Pat Quinn signed legislation today that is intended to keep payday lenders from slipping through a regulatory loophole.
The bill changes both the Consumer Installment Loan Act and the Payday Loan Reform Act. The General Assembly passed the latter in 2005 to place tighter controls on payday lenders.
The Payday Loan Reform defined such loans as lasting only 120 days. The idea being that a customer, who might be in a financial pinch, takes out the loan and pays it off out of his or her next few paychecks.
But according to consumer advocates, some in the industry used that definition as a way to skirt regulation. Extending the terms of payday loans meant they no longer fell under the regulatory power of the 2005 act. Instead, they could be defined as installment loans, which are regularly secured with collateral such as a car title and had no interest caps.
The legislation, which Quinn signed at a Chicago news conference, caps interest levels for installment loans at 99 percent for loans under $4,000 and 36 percent for loans above that threshold.
Payday lenders will not be able to charge more than $15.50 per $100 loaned out every two weeks. Brent Adams, secretary of the Illinois Department of Financial and Professional Regulation, says that is the most important aspect of the law because no matter how a loan is categorized, there will be limits on what lenders can charge for it.
Companies offering loans will have to determine a customer’s ability to repay the debt. They will also no longer be able to penalize customers for paying off loans early or require large lump-sum “balloon” payments at the end of a payment cycle.
During the news conference William McNary, co-director of the advocacy group Citizen Action Illinois, held up a contract for a loan at what he said was made at 700 percent interest. He said the new law will “set the stage for bringing an end to the era of legalized loan sharking here in Illinois.” McNary ripped the contract to pieces while concluding his statement.
Maywood Democratic Sen. Kimberly Lightford and Skokie Democratic Rep. Lou Lang, sponsors of the bill, said the negotiation process was long and arduous, but they were able to garner support from lenders. “The industry, I’ve got to tell you, wow, they’re tough. And we were able to negotiate and bring them all on board,” Lightford said.
However Attorney General Lisa Madigan said those strapped for cash still need to be wary of payday and installment loans and should exhaust all other options first.
“This law will help consumers who find that there is nowhere else to turn except a payday or installment loan. But please remember, extreme caution still has to be exercised when taking out a short-term high-cost loan. … People should only consider those types of loans in an emergency as a last resort.”
The new regulations take effect nine months from today.
Wednesday, June 16, 2010
Pension borrowing appears stalled
By Jamey Dunn
Gov. Pat Quinn said again today that he expects senators to return to the Capitol and pass a borrowing plan before July.
“We have until the end of the month for the Senate to gather their resources and their energy. But that’s what they’re paid for. The citizens of Illinois expect members of the Illinois Senate to vote on bills that affect the common good. So I am going to keep saying what needs to be said, that it’s important for the Senate to do what’s fiscally responsible and help the people of Illinois to save money,” Quinn told reporters after a Chicago news conference.
Quinn said yesterday that he thinks there is enough support in the Senate for a plan to borrow about $4 billion for the state’s required fiscal year 2011 pension payment.
Senate President John Cullerton made it clear when the Senate left town at the end of May that he expected Quinn to be the one to bring more votes onto the plan. He said the bill would not pass without bipartisan support and that it would take at least two Republican votes.
House Speaker Michael Madigan said on the same day that the pension borrowing was not absolutely necessary for the budget to work.
Quinn was able to wrangle at least one of the two Republicans who supported the bill in the House. Elmhurst Rep. Robert Biggins first voted no on the measure but changed his mind after speaking with the governor’s office while the rest of his party was in a caucus meeting. He has since faced backlash and a demotion, as has the other Republican to vote “yes,” Danville Rep. Bill Black. Both are leaving the legislature after this session.
Lynwood Democratic Rep. David Miller, who is also the Democratic candidate for comptroller, changed his mind about borrowing after speaking with Quinn on the House floor soon after casting his original “no” vote.
But two public appeals in two days may be a sign that the governor is having no such luck in private talks with Senate members.
When asked whether he would resort to calling a special session to get the chamber back for a vote Quinn said, “I would hope that wouldn’t have to happen. But we’ll do whatever necessary to make sure the process is working for the people … who deserve an Illinois Senate that listens to them.”
Cullerton spokesperson Rikeesha Phelon said there is no immediate plan for bringing legislators back to Springfield. “The Senate will be back in session when there is evidence of a positive roll call for the borrowing plan,” Phelon said in a written statement.
It is possible that when the budget arrives on Quinn’s desk—he says that will likely happen in the last days of the month—it will not contain a specific plan on how to make the pension payment.
Quinn says he will have to “act promptly” to make cuts when he gets the budget because the new fiscal year begins July 1.
Gov. Pat Quinn said again today that he expects senators to return to the Capitol and pass a borrowing plan before July.
“We have until the end of the month for the Senate to gather their resources and their energy. But that’s what they’re paid for. The citizens of Illinois expect members of the Illinois Senate to vote on bills that affect the common good. So I am going to keep saying what needs to be said, that it’s important for the Senate to do what’s fiscally responsible and help the people of Illinois to save money,” Quinn told reporters after a Chicago news conference.
Quinn said yesterday that he thinks there is enough support in the Senate for a plan to borrow about $4 billion for the state’s required fiscal year 2011 pension payment.
Senate President John Cullerton made it clear when the Senate left town at the end of May that he expected Quinn to be the one to bring more votes onto the plan. He said the bill would not pass without bipartisan support and that it would take at least two Republican votes.
House Speaker Michael Madigan said on the same day that the pension borrowing was not absolutely necessary for the budget to work.
Quinn was able to wrangle at least one of the two Republicans who supported the bill in the House. Elmhurst Rep. Robert Biggins first voted no on the measure but changed his mind after speaking with the governor’s office while the rest of his party was in a caucus meeting. He has since faced backlash and a demotion, as has the other Republican to vote “yes,” Danville Rep. Bill Black. Both are leaving the legislature after this session.
Lynwood Democratic Rep. David Miller, who is also the Democratic candidate for comptroller, changed his mind about borrowing after speaking with Quinn on the House floor soon after casting his original “no” vote.
But two public appeals in two days may be a sign that the governor is having no such luck in private talks with Senate members.
When asked whether he would resort to calling a special session to get the chamber back for a vote Quinn said, “I would hope that wouldn’t have to happen. But we’ll do whatever necessary to make sure the process is working for the people … who deserve an Illinois Senate that listens to them.”
Cullerton spokesperson Rikeesha Phelon said there is no immediate plan for bringing legislators back to Springfield. “The Senate will be back in session when there is evidence of a positive roll call for the borrowing plan,” Phelon said in a written statement.
It is possible that when the budget arrives on Quinn’s desk—he says that will likely happen in the last days of the month—it will not contain a specific plan on how to make the pension payment.
Quinn says he will have to “act promptly” to make cuts when he gets the budget because the new fiscal year begins July 1.
Tuesday, June 15, 2010
Quinn signs telecom rewrite
By Jamey Dunn
Gov. Pat Quinn signed a rewrite of the telecommunications law in Chicago today that business leaders and industry insiders say will help bring jobs to Illinois.
The laws will loosen regulations on basic telephone services. The bill also guarantees that the state will not regulate newer technologies, such as cable telephone systems and broadband, for at least three years.
The bill will give companies more flexibility in price and the service packages they offer. Before the change, telecommunications companies had to get approval from the Illinois Commerce Commission (ICC) to change rates or offer a new package of products, such as Internet access coupled with local phone service. They then had to wait up to 45 days after approval to change a rate or launch a new promotion.
They can now do those things immediately. Companies claimed they needed the flexibility to compete in a fast-paced market. If one company releases a new promotion, its competitors would have to wait more than a month to catch up with similar offerings.
When asked whether telecommunications companies’ newfound ability to quickly shift rates and offer different service combinations might upset some consumers, James Zolnierek, director of telecommunication for the ICC, said they could always opt for the most basic packages because those prices are protected by the new law.
“There are safe harbor packages that the prices cannot be increased on. So consumers will always, at least for the life of the bill, will have the choice of going to those safe-harbor packages, where the rates cannot increase. It’s on the more dynamic products like the package services where you buy a lot of features and package it with other products where they will have more flexibility to do things quickly — lower prices, increase prices in some instances,” he said at the Chicago news conference.
Quinn said he would not have supported the bill without such “safe-harbor” protection for “basic, lifeline, low-cost phone service” with fixed prices. “We in Illinois, if we’re going to be prosperous, need to make sure that we have a modern, up-to-date, well-connected telecom system that includes broadband deployment and wireless technologies that are state of the art. But at the same time, we want to protect consumers. People who may be very happy with the phone services they have now, the landline phone. “
Pual La Schiazza, president of AT&T Illinois, says the law will help the industry create jobs, during times that are financially trying for for residents and state government, without any financial support from the public sector. “It will create jobs. It will keep jobs, and it makes Illinois competitive with its neighboring states. … It does incent more broadband investment; it helps to keep and create jobs. But it does it without any subsidies and without any tax credits. It’s good public policy that can be an economic engine for the state of Illinois.”
However consumer advocacy groups such as the Citizens Utility Board, which Quinn helped create, said the law might hinder rural areas’ access to technologies such as broadband.
For a comprehensive look at the telecommunications rewrite, see Rachel Wells’ article in the current (June) Illinois Issues on page 31.
Gov. Pat Quinn signed a rewrite of the telecommunications law in Chicago today that business leaders and industry insiders say will help bring jobs to Illinois.
The laws will loosen regulations on basic telephone services. The bill also guarantees that the state will not regulate newer technologies, such as cable telephone systems and broadband, for at least three years.
The bill will give companies more flexibility in price and the service packages they offer. Before the change, telecommunications companies had to get approval from the Illinois Commerce Commission (ICC) to change rates or offer a new package of products, such as Internet access coupled with local phone service. They then had to wait up to 45 days after approval to change a rate or launch a new promotion.
They can now do those things immediately. Companies claimed they needed the flexibility to compete in a fast-paced market. If one company releases a new promotion, its competitors would have to wait more than a month to catch up with similar offerings.
When asked whether telecommunications companies’ newfound ability to quickly shift rates and offer different service combinations might upset some consumers, James Zolnierek, director of telecommunication for the ICC, said they could always opt for the most basic packages because those prices are protected by the new law.
“There are safe harbor packages that the prices cannot be increased on. So consumers will always, at least for the life of the bill, will have the choice of going to those safe-harbor packages, where the rates cannot increase. It’s on the more dynamic products like the package services where you buy a lot of features and package it with other products where they will have more flexibility to do things quickly — lower prices, increase prices in some instances,” he said at the Chicago news conference.
Quinn said he would not have supported the bill without such “safe-harbor” protection for “basic, lifeline, low-cost phone service” with fixed prices. “We in Illinois, if we’re going to be prosperous, need to make sure that we have a modern, up-to-date, well-connected telecom system that includes broadband deployment and wireless technologies that are state of the art. But at the same time, we want to protect consumers. People who may be very happy with the phone services they have now, the landline phone. “
Pual La Schiazza, president of AT&T Illinois, says the law will help the industry create jobs, during times that are financially trying for for residents and state government, without any financial support from the public sector. “It will create jobs. It will keep jobs, and it makes Illinois competitive with its neighboring states. … It does incent more broadband investment; it helps to keep and create jobs. But it does it without any subsidies and without any tax credits. It’s good public policy that can be an economic engine for the state of Illinois.”
However consumer advocacy groups such as the Citizens Utility Board, which Quinn helped create, said the law might hinder rural areas’ access to technologies such as broadband.
For a comprehensive look at the telecommunications rewrite, see Rachel Wells’ article in the current (June) Illinois Issues on page 31.
Quinn expects Senate vote at the end of June
By Jamey Dunn
Gov. Pat Quinn fielded some questions after the telecommunications news conference. He told reporters that the General Assembly didn’t do its job on the budget, and he expects the Senate to be back by the end of the month.
“I do believe the General Assembly let the people down by not really engaging in the process the way they should. I think we needed more revenue in our budget. I think we needed the General Assembly to put their names on specific cuts that they were thinking appropriate. But instead, they delegated everything to me. And so I have a lump sum budget,” he said.
Quinn added, “We’re going to have to have some serious cuts in order to make it through.”
The governor said he has not ruled out the plan to borrow about $4 billion to make the state’s required pension payment for the next fiscal year, which begins on July 1. He said he fully expects the Senate to return in the last days of June for a vote. Quinn believes the bill has enough support to pass as soon as legislators get back from their vacations.
“I actually think there’s probably enough votes now. They have to get their vacations and all this and that in order. But I expect them by the end of the month to come together. I mean this is what government is about. If you get sworn into office to protect the common good and carry out the public interest, then you have to be there when it counts.”
Quinn said he hasn’t gotten the other components of budget yet, but he expects they will also come to his desk near the end of the month.
Gov. Pat Quinn fielded some questions after the telecommunications news conference. He told reporters that the General Assembly didn’t do its job on the budget, and he expects the Senate to be back by the end of the month.
“I do believe the General Assembly let the people down by not really engaging in the process the way they should. I think we needed more revenue in our budget. I think we needed the General Assembly to put their names on specific cuts that they were thinking appropriate. But instead, they delegated everything to me. And so I have a lump sum budget,” he said.
Quinn added, “We’re going to have to have some serious cuts in order to make it through.”
The governor said he has not ruled out the plan to borrow about $4 billion to make the state’s required pension payment for the next fiscal year, which begins on July 1. He said he fully expects the Senate to return in the last days of June for a vote. Quinn believes the bill has enough support to pass as soon as legislators get back from their vacations.
“I actually think there’s probably enough votes now. They have to get their vacations and all this and that in order. But I expect them by the end of the month to come together. I mean this is what government is about. If you get sworn into office to protect the common good and carry out the public interest, then you have to be there when it counts.”
Quinn said he hasn’t gotten the other components of budget yet, but he expects they will also come to his desk near the end of the month.
Thursday, May 27, 2010
Senate skips pension borrowing vote
By Jamey Dunn
The Senate wrapped up some major issues before leaving Springfield today but avoided one of the largest components of the budget framework approved by the House this week.
And it seems that if a bill to borrow more than $4 billion to make the required employee pension payment is going to pass, Gov. Pat Quinn will have to do some hard lobbying of senators.
The legislature has already passed its “Emergency Budget Act,” which gives the governor more power to shift money and make cuts. The spending bill that lawmakers sent to Quinn makes lump-sum appropriations to agencies, giving him the responsibility to dole out the money as he chooses. Democratic leaders hinted today that if the borrowing doesn’t pass, the governor could have to make do without the cash and make the payments anyway.
Senate President John Cullerton said his chamber did not take up the borrowing proposal today because it lacked the votes to pass. He said the Senate would likely come back to the Capitol to approve it in two or three weeks if a few senators change their minds on the issue. Cullerton made it clear he expects bipartisan support. Since borrowing bills require a three-fifths majority to pass, the constitutional Monday adjournment deadline would not affect the number of votes needed.
“We don’t have any Republican votes like they did in the House,” he said. He added that two Republican votes probably would be necessary to pass the bill. Cullerton said he would not be the one trying to persuade members on either side of the aisle. “[Gov. Pat Quinn] is going to be the one that helps convince them the importance of having this money for their districts.”
House Speaker Michael Madigan said the issue of making the pension payment for the next fiscal year is, in essence, Quinn’s problem. He said if borrowing doesn’t pass, “it makes life more difficult for the governor and the comptroller.”
Madigan said he would wait to see what the Senate does on the matter before committing to an alternate plan, such as passing a bill that would allow the state to skip the pension payment.
However, he added that even if the Senate doesn’t pass borrowing, it is not guaranteed that a “pension holiday” vote would follow. He said Quinn and Comptroller Dan Hynes, Quinn’s opponent earlier this year in the hard-fought Democratic primary for governor, might just have to manage what would essentially be a $4 billion demand on general revenues.
“Without the borrowing to make the pension payment, pension payments get in line with everybody else [owed money by the state], and they became a matter for the governor and the comptroller in terms of managing the cash flow,” Madigan said.
Senate Minority Leader Christine Radogno said she is not pressuring her side of the aisle to vote against borrowing. “Members are coming to the independent conclusion this is a bad deal.”
She said some Republicans voted to borrow for the payment last year, only to find that nothing has changed this time around. “It didn’t work last year, and in fact, all it did was encumber the revenue we needed to pay bills this year. It’s precisely what’s going to happen again because there’s no overall plan to deal with this. It’s just borrowing again — no way to pay it back.”
Radogno said she thinks Quinn will offer members of her caucus “perks” and projects for their districts to try to get “yes” votes for borrowing, and such tactics would put him on “very shaky” legal ground. “What’s going to be going on in the next few weeks are promises to get people to vote for things.”
Radogno said Quinn’s administration contacted Republican Sens. Larry Bomke from Springfield, David Luechtefeld from Okawville and John Jones from Mount Vernon about their votes. All three confirmed speaking with the governor’s people and flatly denied that they had been offered anything for their votes.
The Senate passed all the other components of the House’s budget:
Senate Bill 3660 is the “Emergency Budget Act.”
SB3677 is a “tax amnesty plan.”
House Bill 859 is the spending bill.
SB3662 is the budget implementation bill.
The Senate wrapped up some major issues before leaving Springfield today but avoided one of the largest components of the budget framework approved by the House this week.
And it seems that if a bill to borrow more than $4 billion to make the required employee pension payment is going to pass, Gov. Pat Quinn will have to do some hard lobbying of senators.
The legislature has already passed its “Emergency Budget Act,” which gives the governor more power to shift money and make cuts. The spending bill that lawmakers sent to Quinn makes lump-sum appropriations to agencies, giving him the responsibility to dole out the money as he chooses. Democratic leaders hinted today that if the borrowing doesn’t pass, the governor could have to make do without the cash and make the payments anyway.
Senate President John Cullerton said his chamber did not take up the borrowing proposal today because it lacked the votes to pass. He said the Senate would likely come back to the Capitol to approve it in two or three weeks if a few senators change their minds on the issue. Cullerton made it clear he expects bipartisan support. Since borrowing bills require a three-fifths majority to pass, the constitutional Monday adjournment deadline would not affect the number of votes needed.
“We don’t have any Republican votes like they did in the House,” he said. He added that two Republican votes probably would be necessary to pass the bill. Cullerton said he would not be the one trying to persuade members on either side of the aisle. “[Gov. Pat Quinn] is going to be the one that helps convince them the importance of having this money for their districts.”
House Speaker Michael Madigan said the issue of making the pension payment for the next fiscal year is, in essence, Quinn’s problem. He said if borrowing doesn’t pass, “it makes life more difficult for the governor and the comptroller.”
Madigan said he would wait to see what the Senate does on the matter before committing to an alternate plan, such as passing a bill that would allow the state to skip the pension payment.
However, he added that even if the Senate doesn’t pass borrowing, it is not guaranteed that a “pension holiday” vote would follow. He said Quinn and Comptroller Dan Hynes, Quinn’s opponent earlier this year in the hard-fought Democratic primary for governor, might just have to manage what would essentially be a $4 billion demand on general revenues.
“Without the borrowing to make the pension payment, pension payments get in line with everybody else [owed money by the state], and they became a matter for the governor and the comptroller in terms of managing the cash flow,” Madigan said.
Senate Minority Leader Christine Radogno said she is not pressuring her side of the aisle to vote against borrowing. “Members are coming to the independent conclusion this is a bad deal.”
She said some Republicans voted to borrow for the payment last year, only to find that nothing has changed this time around. “It didn’t work last year, and in fact, all it did was encumber the revenue we needed to pay bills this year. It’s precisely what’s going to happen again because there’s no overall plan to deal with this. It’s just borrowing again — no way to pay it back.”
Radogno said she thinks Quinn will offer members of her caucus “perks” and projects for their districts to try to get “yes” votes for borrowing, and such tactics would put him on “very shaky” legal ground. “What’s going to be going on in the next few weeks are promises to get people to vote for things.”
Radogno said Quinn’s administration contacted Republican Sens. Larry Bomke from Springfield, David Luechtefeld from Okawville and John Jones from Mount Vernon about their votes. All three confirmed speaking with the governor’s people and flatly denied that they had been offered anything for their votes.
The Senate passed all the other components of the House’s budget:
Senate Bill 3660 is the “Emergency Budget Act.”
SB3677 is a “tax amnesty plan.”
House Bill 859 is the spending bill.
SB3662 is the budget implementation bill.
A couple of issues backed by Quinn took some big hits today, and almost everyone had something to say about it except the governor himself. He ducked reporters after leaving the Senate floor upon adjournment.
Quinn did issue a written statement late this evening. In it, he said: “Our task is not complete, and there’s more that must be accomplished before this session officially ends. I remind members of the General Assembly that the people of Illinois are depending upon their elected officials to promptly and squarely address the serious fiscal issues confronting our state."
The chambers adjourned today to “the call” of the House speaker and Senate president. So, legislators could be called back to Springfield at any time to wrap up loose ends and address the pension payment.
Quinn did issue a written statement late this evening. In it, he said: “Our task is not complete, and there’s more that must be accomplished before this session officially ends. I remind members of the General Assembly that the people of Illinois are depending upon their elected officials to promptly and squarely address the serious fiscal issues confronting our state."
The chambers adjourned today to “the call” of the House speaker and Senate president. So, legislators could be called back to Springfield at any time to wrap up loose ends and address the pension payment.
Senate takes up McPier and STAR Bonds
McCormick Place
Both legislative chambers overrode Gov. Pat Quinn’s amendatory veto on Senate Bill 28, which was intended to reform the operations of the McCormick Place convention facility and Navy Pier in Chicago.
Quinn took issue with the legislature appointing a trustee to oversee the agency commonly called “McPier.” He has publicly criticized lawmakers' choice of Jim Reilly, a former House member and the current chief executive officer of McPier. Quinn said there was no process to remove or replace a trustee. He wanted the bill to specifically require McPier to adhere to state procurement laws. He also removed a $2 taxi tax on rides to and from the city’s two airports.
The General Assembly shot down the governor’s changes but passed what legislators see as a compromise bill that would address the procurement and trustee succession issues.
STAR Bonds
By Rachel Wells
The city of Marion may have a shot at destination development and better unemployment rates if the governor signs legislation allowing for what’s been called Illinois’ largest tax incentive.
Supporters hope that through sales tax and revenue (also known as STAR) bonds, SB 2093 will entice investors to choose Marion as the place to build a major outdoor sports store and a water park or a music venue similar to that in Branson, Mo., said Sen. Gary Forby, a Benton Democrat.
Under the measure, developer Holland Construction Services would receive a portion of the new tax revenues the project brings in to help pay for up to 50 percent of the project’s cost. Nearby schools would also receive 15 percent of new property tax revenues resulting from the development.
Forby said the project, the details of which have not yet been solidified, could bring visitors from seven states to an otherwise economically distressed region and provide thousands of jobs.
The Illinois Department of Revenue estimated that the STAR bond district would cost the state $287.5 million to $437.5 million in future sales taxes, revenues resulting from the STAR bond development.
While Forby and fellow sponsor Marion Democratic Rep. John Bradley have the support of most entities within 25 miles of the project, Mount Vernon Mayor Mary Jane Chesley said her city, about 40 miles away, would suffer unless it’s included in the legislation.
“All we’re asking for is to give us the same tools to promote growth that has been proposed for Marion and provide a level playing field to attract much-needed businesses to our area and to the state of Illinois.”
Forby argued that spreading the district out would dampen its ability to raise revenues. “You need a project where [businesses] all come together so they can draw from each other.”
The bill passed in the House earlier this month.
Quinn took issue with the legislature appointing a trustee to oversee the agency commonly called “McPier.” He has publicly criticized lawmakers' choice of Jim Reilly, a former House member and the current chief executive officer of McPier. Quinn said there was no process to remove or replace a trustee. He wanted the bill to specifically require McPier to adhere to state procurement laws. He also removed a $2 taxi tax on rides to and from the city’s two airports.
The General Assembly shot down the governor’s changes but passed what legislators see as a compromise bill that would address the procurement and trustee succession issues.
STAR Bonds
By Rachel Wells
The city of Marion may have a shot at destination development and better unemployment rates if the governor signs legislation allowing for what’s been called Illinois’ largest tax incentive.
Supporters hope that through sales tax and revenue (also known as STAR) bonds, SB 2093 will entice investors to choose Marion as the place to build a major outdoor sports store and a water park or a music venue similar to that in Branson, Mo., said Sen. Gary Forby, a Benton Democrat.
Under the measure, developer Holland Construction Services would receive a portion of the new tax revenues the project brings in to help pay for up to 50 percent of the project’s cost. Nearby schools would also receive 15 percent of new property tax revenues resulting from the development.
Forby said the project, the details of which have not yet been solidified, could bring visitors from seven states to an otherwise economically distressed region and provide thousands of jobs.
The Illinois Department of Revenue estimated that the STAR bond district would cost the state $287.5 million to $437.5 million in future sales taxes, revenues resulting from the STAR bond development.
While Forby and fellow sponsor Marion Democratic Rep. John Bradley have the support of most entities within 25 miles of the project, Mount Vernon Mayor Mary Jane Chesley said her city, about 40 miles away, would suffer unless it’s included in the legislation.
“All we’re asking for is to give us the same tools to promote growth that has been proposed for Marion and provide a level playing field to attract much-needed businesses to our area and to the state of Illinois.”
Forby argued that spreading the district out would dampen its ability to raise revenues. “You need a project where [businesses] all come together so they can draw from each other.”
The bill passed in the House earlier this month.
Wednesday, May 26, 2010
Legislature to reject Quinn's AV on McPier
By Jamey Dunn
Gov. Pat Quinn made some tweaks today to a bill intended to changes the operations of McCormick Place, the convention facility in Chicago that draws almost 3 million people each year.
The governor said the reforms in Senate Bill 28 did not go far enough, but legislators on both sides of the aisle are vowing to override his amendatory veto by the end of the week.
Quinn said the agency that oversees McCormick Place and Navy Pier, commonly known as McPier, should be required to follow state procurement rules at all times. The bill passed by the General Assembly requires McPier to “substantially” follow the procurement code. Quinn, a former tax attorney, said that he considers “substantially” a “weasel word” that is unclear about the procurement standards the agency would be legally required to uphold.
Quinn also took issue with the legislature having the power to appoint a McPier trustee, saying the position should be an executive appointment. He added that the legislation did not provide for a way to remove or replace the trustee. Quinn has been openly critical of the legislature’s choice for the job, Jim Reilly, a former House member and chief operating officer of McPier. He questioned the constitutionality of the bill specifically naming someone to the position.
This evening, the House passed SB3215, which would address the issue of removing a trustee. House Speaker Mike Madigan said the bill is an attempt to compromise and appease some of the governor's concerns. He added that he expects the House to shoot down Quinn's changes.
The final change to the bill addresses union rights to do business and says that the agency will only deal with two unions. Quinn said that would “streamline” business for customers. Critics say it is meant to benefit larger unions, which will absorb smaller ones that do business with McPier.
Quinn also removed a $2 tax on taxis to and from the city’s airports.
“I don’t think that’s a good way to greet visitors to our state, a higher tax on how they get from where they land at the airport to where they’re staying, This also includes people who live within our own state. … We have many many people who do business in other places of our country and our state. I don’t think they should be nicked by a nuisance tax,” Quinn said.
Senate President John Cullerton and Senate Minority Leader Christine Radogno issued a joint statement condemning Quinn’s veto. It said, "Governor Pat Quinn's decision today to veto key elements of the bipartisan McPier reform package has the potential to destabilize one of the most productive economic engines in the State of Illinois.”
Senators plan to start work to override the veto tomorrow, in addition to considering the budget proposals that came out of the House yesterday.
Gov. Pat Quinn made some tweaks today to a bill intended to changes the operations of McCormick Place, the convention facility in Chicago that draws almost 3 million people each year.
The governor said the reforms in Senate Bill 28 did not go far enough, but legislators on both sides of the aisle are vowing to override his amendatory veto by the end of the week.
Quinn said the agency that oversees McCormick Place and Navy Pier, commonly known as McPier, should be required to follow state procurement rules at all times. The bill passed by the General Assembly requires McPier to “substantially” follow the procurement code. Quinn, a former tax attorney, said that he considers “substantially” a “weasel word” that is unclear about the procurement standards the agency would be legally required to uphold.
Quinn also took issue with the legislature having the power to appoint a McPier trustee, saying the position should be an executive appointment. He added that the legislation did not provide for a way to remove or replace the trustee. Quinn has been openly critical of the legislature’s choice for the job, Jim Reilly, a former House member and chief operating officer of McPier. He questioned the constitutionality of the bill specifically naming someone to the position.
This evening, the House passed SB3215, which would address the issue of removing a trustee. House Speaker Mike Madigan said the bill is an attempt to compromise and appease some of the governor's concerns. He added that he expects the House to shoot down Quinn's changes.
The final change to the bill addresses union rights to do business and says that the agency will only deal with two unions. Quinn said that would “streamline” business for customers. Critics say it is meant to benefit larger unions, which will absorb smaller ones that do business with McPier.
Quinn also removed a $2 tax on taxis to and from the city’s airports.
“I don’t think that’s a good way to greet visitors to our state, a higher tax on how they get from where they land at the airport to where they’re staying, This also includes people who live within our own state. … We have many many people who do business in other places of our country and our state. I don’t think they should be nicked by a nuisance tax,” Quinn said.
Senate President John Cullerton and Senate Minority Leader Christine Radogno issued a joint statement condemning Quinn’s veto. It said, "Governor Pat Quinn's decision today to veto key elements of the bipartisan McPier reform package has the potential to destabilize one of the most productive economic engines in the State of Illinois.”
Senators plan to start work to override the veto tomorrow, in addition to considering the budget proposals that came out of the House yesterday.
Tuesday, May 25, 2010
House passes a budget
By Jamey Dunn and Rachel Wells
Legislators voted tonight to borrow billions to the make the pension payment for next fiscal year and to give Gov. Pat Quinn “emergency powers” to shift funds and cut the budget.
A group of House Democrats presented the budget ideas they came up with while the General Assembly was out of session for two weeks. But by the end of the day, the plan that passed out of the House was similar to the one that emerged earlier this month.
Earlier in the day, Democrats voted down or withdrew proposal after proposal, including $300 million in cuts to K-12 education, $100 million in higher education cuts and a plan to make state retirees pay health care premiums, which would have saved an estimated $100 million.
The largest and most contested component of the budget, $4.09 billion in borrowing to make the pension payment, narrowly passed this evening. It failed by one vote the first time it was called today. After some arm twisting by Democratic leadership and Quinn, Lynwood Democratic Rep. David Miller, one of two members in opposition from his party, changed his vote.
Elmhurst Rep. Robert Biggins, one of only two Republicans to vote against his party, said he decided to support pension borrowing, Senate Bill 3514, after speaking with the governor’s office while the rest of the House minority party met in private. “I thought about all the people in Illinois. This is the responsible thing to do,” said Biggins, who had voted against borrowing earlier in the evening. “This is a much less expensive way to go.” Biggins, about to retire from the General Assembly, said he did not ask the governor for anything, nor was he offered a job in return for his support. Danville Rep. Bill Black, another Republican who is retiring after the current session, voted consistently in favor of borrowing.
Other Republicans who had agreed to borrow for last year's payment after being promised cuts they say never materialized did not support a similar plan this year because they said Democrats haven’t done enough to trim the budget and encourage job creation.
“[Republicans] participated in that process to help [Quinn,] in his first term, try to address some issues,” Minority Leader Tom Cross said. “Many would say it was a mistake. … We get, this year, the downside of not making a payment, and we are not saying, ‘Don’t make a payment.’ We’re saying we want to fundamentally change the way we run government in Illinois,” However, House Majority Leader Barbara Flynn Currie of Chicago, the sponsor of the plan, said members on both sides of the aisle do not have the will to make cuts that would add up to the money needed for the payment. “You need 60 people to vote ‘yes’ to pass cuts of this magnitude, and [those people] are not in this chamber,” she said.
The House also passed its version of the “Emergency Budget Act,” introduced earlier in the month, with some new cost-saving measures tacked on. Senate Bill 3660 would:
The new cuts in the bill would:
A “tax amnesty” bill the House passed today would bring in an additional estimated $250 million.
SB 377 would allow anyone owing past due taxes between 2002 and 2009 to pay them during a tax amnesty period without penalties and interest. State agencies would also be allowed to enter into deferred payment agreements, settle debts at no less than 80 percent of the amount due and use private debt collection agencies to obtain owed money. Anyone who fails to take advantage of the tax amnesty period, from October into November 2010, would be charged double the penalties.
The House passed the Senate’s spending bill, HB859, which would cut 5 percent from agency operating budgets. Other than those cuts, the measure appropriates lump sums equal to last year’s spending to Quinn, giving him the power to cut where he sees fit.
Currie said that the education funding in the bill hinges on the House passing a $1-a-pack cigarette tax increase that the Senate approved last session. If not, she says at least $327 million in cuts to K-12 would be the alternative. The proposal lacked the needed votes in the House earlier this month.
The Senate is back in session tomorrow, and House members plan to be in at least through Thursday. The House passed the basic structure of a budget today, but changes could still be in the works. Check back for updates.
Legislators voted tonight to borrow billions to the make the pension payment for next fiscal year and to give Gov. Pat Quinn “emergency powers” to shift funds and cut the budget.
A group of House Democrats presented the budget ideas they came up with while the General Assembly was out of session for two weeks. But by the end of the day, the plan that passed out of the House was similar to the one that emerged earlier this month.
Earlier in the day, Democrats voted down or withdrew proposal after proposal, including $300 million in cuts to K-12 education, $100 million in higher education cuts and a plan to make state retirees pay health care premiums, which would have saved an estimated $100 million.
The largest and most contested component of the budget, $4.09 billion in borrowing to make the pension payment, narrowly passed this evening. It failed by one vote the first time it was called today. After some arm twisting by Democratic leadership and Quinn, Lynwood Democratic Rep. David Miller, one of two members in opposition from his party, changed his vote.
Elmhurst Rep. Robert Biggins, one of only two Republicans to vote against his party, said he decided to support pension borrowing, Senate Bill 3514, after speaking with the governor’s office while the rest of the House minority party met in private. “I thought about all the people in Illinois. This is the responsible thing to do,” said Biggins, who had voted against borrowing earlier in the evening. “This is a much less expensive way to go.” Biggins, about to retire from the General Assembly, said he did not ask the governor for anything, nor was he offered a job in return for his support. Danville Rep. Bill Black, another Republican who is retiring after the current session, voted consistently in favor of borrowing.
Other Republicans who had agreed to borrow for last year's payment after being promised cuts they say never materialized did not support a similar plan this year because they said Democrats haven’t done enough to trim the budget and encourage job creation.
“[Republicans] participated in that process to help [Quinn,] in his first term, try to address some issues,” Minority Leader Tom Cross said. “Many would say it was a mistake. … We get, this year, the downside of not making a payment, and we are not saying, ‘Don’t make a payment.’ We’re saying we want to fundamentally change the way we run government in Illinois,” However, House Majority Leader Barbara Flynn Currie of Chicago, the sponsor of the plan, said members on both sides of the aisle do not have the will to make cuts that would add up to the money needed for the payment. “You need 60 people to vote ‘yes’ to pass cuts of this magnitude, and [those people] are not in this chamber,” she said.
The House also passed its version of the “Emergency Budget Act,” introduced earlier in the month, with some new cost-saving measures tacked on. Senate Bill 3660 would:
- Extend the time the state has to pay any overdue FY2010 bills from August 31, 2010, to December 31, 2010.
- Require lawmakers, constitutional officers and executive agency directors to take 12 furlough days.
- Create an independent state agency called the Railsplitter Tobacco Authority. The state would transfer its future payments from a national tobacco settlement to the agency, which would issue $1.7 billion in bonding, with the settlement money pledged to pay off the borrowing.
- Allow the governor to borrow from special funds for the General Revenue Fund and Common School Fund. That money would have to be put back into the special funds 18 months after it was borrowed.
The new cuts in the bill would:
- Require state agencies to review contracts for opportunities to renegotiate, terminate or re-bid. House Democrats estimate that could save $300 million.
- Eliminate cost of living increases for legislators, state’s attorneys, constitutional officers and some state agency employees and members of boards of commissions for FY 2011.
- Reduce the per diem payments legislators get on session days from $139 to $111 and reimbursement for car travel from 50 cents a mile to 39 cents a mile.
A “tax amnesty” bill the House passed today would bring in an additional estimated $250 million.
SB 377 would allow anyone owing past due taxes between 2002 and 2009 to pay them during a tax amnesty period without penalties and interest. State agencies would also be allowed to enter into deferred payment agreements, settle debts at no less than 80 percent of the amount due and use private debt collection agencies to obtain owed money. Anyone who fails to take advantage of the tax amnesty period, from October into November 2010, would be charged double the penalties.
The House passed the Senate’s spending bill, HB859, which would cut 5 percent from agency operating budgets. Other than those cuts, the measure appropriates lump sums equal to last year’s spending to Quinn, giving him the power to cut where he sees fit.
Currie said that the education funding in the bill hinges on the House passing a $1-a-pack cigarette tax increase that the Senate approved last session. If not, she says at least $327 million in cuts to K-12 would be the alternative. The proposal lacked the needed votes in the House earlier this month.
The Senate is back in session tomorrow, and House members plan to be in at least through Thursday. The House passed the basic structure of a budget today, but changes could still be in the works. Check back for updates.
Monday, May 24, 2010
Group of House Democrats unveils proposed cuts
By Jamey Dunn
A group of House Democrats rolled out a plan today to trim the state budget by an estimated $1.3 billion while agreeing that the state cannot cut its way out of the estimated $13 billion deficit. The group proposed reductions in education and Medicaid spending, as well as requiring retired employees to pay health care premiums.
Rep. Elaine Nekritz, a Northbrook Democrat, says the group came forward with its own plan to show that “legislators can make tough decisions in tough times.”
She added: “I didn’t come to Springfield to say no. I came to say yes. But this is what’s necessary in this time.”
The plan includes:
“As much as we love out retirees, this is a tough love exercise. We don’t love them any less, but they need to feel the pain,” said Rep. Karen May, a Highland Park Democrat.
Nekritz said all the outlined cuts are necessary to make any kind of substantial dent in the deficit.
She said she was particularly dismayed by cuts to higher education. But she added that the amount the state promises may not matter if it can’t give the schools the money they are owed. “I venture to say that if we don’t come up with a realistic budget and we don’t pay our bills, then what good is the appropriation?”
The back burner
A plan to put off paying the required $3.7 billion pension payment for next fiscal year advanced through a House committee today.
House Bill 543 would essentially let Gov. Pat Quinn skip the payment until he deems that there is enough money to make it.
Barbara Flynn Currie said that borrowing to make the payment would be the better option. However, a short-term borrowing plan failed to gain the needed support in the House earlier this month. Currie said the bill could come up for another vote. “The prudent approach will be to borrow, and I think that we’ll have an opportunity to test that proposition with the members before we finish out our work this week.”
Nick Yelverton, a legislative director for the Illinois Federation of Teachers, said the deferment plan is essentially borrowing, too. But, the money would eventually have to be paid back at an 8.5 percent interest rate instead of the projected 4.5 percent Illinois could get on a short-term loan.
“[Skipping the payment] will multiply the already precarious position of pension systems with regards to investment decisions, asset sales and cash flow. They’ll have no idea when this money comes in.”
Curry told legislators that they “had a chance to borrow at 4.5 percent instead of deferring at 8.5 percent.”
She added: “You’ll have another chance this week, and I would advise you to take me up on that offer. But in the meantime, if it doesn’t happen, I think it’s important for us to have on the back burner a something that will get us out of this bind without $3.7 billion in cuts to elementary and secondary schooling.”
Curry said the bill to skip the pension payment would not come up for a vote in the House “unless and until the borrowing program fails.”
A group of House Democrats rolled out a plan today to trim the state budget by an estimated $1.3 billion while agreeing that the state cannot cut its way out of the estimated $13 billion deficit. The group proposed reductions in education and Medicaid spending, as well as requiring retired employees to pay health care premiums.
Rep. Elaine Nekritz, a Northbrook Democrat, says the group came forward with its own plan to show that “legislators can make tough decisions in tough times.”
She added: “I didn’t come to Springfield to say no. I came to say yes. But this is what’s necessary in this time.”
The plan includes:
- A 5 percent reduction to the operating budgets of state agencies, saving about $300 million, and the General Assembly, saving about $2.5 million.
- $300 million in cuts to K-12 education.
- $100 million in cuts to higher education.
- $200 million in Medicaid cuts.
- Renegotiating contracts and putting some up for new bids, which legislators say could save up to $300 million.
- $4 million in cuts to local subsidies for assessors, supervisors and coroners.
- Cutting the reimbursement rate for car travel from to 50 cents a mile to 39 cents a mile, which legislators say could save $6 million.
- Eliminating salaries for members of part time boards and commissions, which would save an estimated $2.5 million.
- State Retirees would pay health care premiums according to a sliding scale based on their income, saving the state an estimated $100 million in fiscal year 2011.
“As much as we love out retirees, this is a tough love exercise. We don’t love them any less, but they need to feel the pain,” said Rep. Karen May, a Highland Park Democrat.
Nekritz said all the outlined cuts are necessary to make any kind of substantial dent in the deficit.
She said she was particularly dismayed by cuts to higher education. But she added that the amount the state promises may not matter if it can’t give the schools the money they are owed. “I venture to say that if we don’t come up with a realistic budget and we don’t pay our bills, then what good is the appropriation?”
The back burner
A plan to put off paying the required $3.7 billion pension payment for next fiscal year advanced through a House committee today.
House Bill 543 would essentially let Gov. Pat Quinn skip the payment until he deems that there is enough money to make it.
Barbara Flynn Currie said that borrowing to make the payment would be the better option. However, a short-term borrowing plan failed to gain the needed support in the House earlier this month. Currie said the bill could come up for another vote. “The prudent approach will be to borrow, and I think that we’ll have an opportunity to test that proposition with the members before we finish out our work this week.”
Nick Yelverton, a legislative director for the Illinois Federation of Teachers, said the deferment plan is essentially borrowing, too. But, the money would eventually have to be paid back at an 8.5 percent interest rate instead of the projected 4.5 percent Illinois could get on a short-term loan.
“[Skipping the payment] will multiply the already precarious position of pension systems with regards to investment decisions, asset sales and cash flow. They’ll have no idea when this money comes in.”
Curry told legislators that they “had a chance to borrow at 4.5 percent instead of deferring at 8.5 percent.”
She added: “You’ll have another chance this week, and I would advise you to take me up on that offer. But in the meantime, if it doesn’t happen, I think it’s important for us to have on the back burner a something that will get us out of this bind without $3.7 billion in cuts to elementary and secondary schooling.”
Curry said the bill to skip the pension payment would not come up for a vote in the House “unless and until the borrowing program fails.”
Friday, May 21, 2010
Legislative preview
By Jamey Dunn
The main focus when the Illinois General Assembly reconvenes next week will be working out a budget that lawmakers can find politically tolerable. Gov. Pat Quinn said at a Chicago news conference today that the plan is not final yet.
“I think we have made some good process. We aren’t there yet, but we’re very close,” Quinn said. “We have to balance reductions and expenses with investments in human beings.”
In addition to the budget, both chambers may still address some legislative issues. Here are a few possibilities:
Both chambers
HB 5873 The proposal would create a two-tiered pension system for firefighters and police officers. If the measure is signed into law, those hired after it takes effect would have to wait until age 55 to be eligible for full pension benefits. They would also be able to receive 72 percent of benefits after 30 years of service instead of the current 75 percent.
SB 377 This “tax amnesty” plan would allow citizens and businesses that owe back taxes to pay them off from October 1 to November 15 of this year without facing penalty. Chicago Democratic Rep. Barbara Flynn Currie, a sponsor of the bill, estimates the plan could bring in about $250 million. Gov. Pat Quinn said last month that he was not in favor of the plan. So even if it passes both chambers, it may not become law.
House
HB 4623 This bill would cap the amount of income seniors can earn and still get free rides on Chicago public transit. The issue was hotly contested in the Senate, but lawmakers reached a compromise, which they advanced over to the House in early May.
Senate
SB 2093 Creates a plan for Sales Tax Revenue or STAR bonds. The plan allows for state sales tax dollars from a certain area to go toward a local development project. In this bill, the area is Marion and the project is an entertainment and shopping complex being built by Holland construction.
The Southern Illinoisan reported today that Republican Sen. John Jones is interested in including his hometown of Mount Vernon in the plan. He argued that other southern Illinois communities should have the option to create STAR districts as well. That could potentially hold up the bill. However, Jones said it could also be accomplished with additional pieces of legislation.
SB 3750 The measure would ban the sale of children’s food containers that contain bisphenol-A, or BPA, which has been linked to certain cancers and other health problems. Business groups strongly oppose the bill. The issue has been on the legislature’s radar for a while, but lawmakers failed to move a ban last session. The Senate held a committee hearing dedicated to the topic early this month, and the bill could come up for a vote next week.
The main focus when the Illinois General Assembly reconvenes next week will be working out a budget that lawmakers can find politically tolerable. Gov. Pat Quinn said at a Chicago news conference today that the plan is not final yet.
“I think we have made some good process. We aren’t there yet, but we’re very close,” Quinn said. “We have to balance reductions and expenses with investments in human beings.”
In addition to the budget, both chambers may still address some legislative issues. Here are a few possibilities:
Both chambers
HB 5873 The proposal would create a two-tiered pension system for firefighters and police officers. If the measure is signed into law, those hired after it takes effect would have to wait until age 55 to be eligible for full pension benefits. They would also be able to receive 72 percent of benefits after 30 years of service instead of the current 75 percent.
SB 377 This “tax amnesty” plan would allow citizens and businesses that owe back taxes to pay them off from October 1 to November 15 of this year without facing penalty. Chicago Democratic Rep. Barbara Flynn Currie, a sponsor of the bill, estimates the plan could bring in about $250 million. Gov. Pat Quinn said last month that he was not in favor of the plan. So even if it passes both chambers, it may not become law.
House
HB 4623 This bill would cap the amount of income seniors can earn and still get free rides on Chicago public transit. The issue was hotly contested in the Senate, but lawmakers reached a compromise, which they advanced over to the House in early May.
Senate
SB 2093 Creates a plan for Sales Tax Revenue or STAR bonds. The plan allows for state sales tax dollars from a certain area to go toward a local development project. In this bill, the area is Marion and the project is an entertainment and shopping complex being built by Holland construction.
The Southern Illinoisan reported today that Republican Sen. John Jones is interested in including his hometown of Mount Vernon in the plan. He argued that other southern Illinois communities should have the option to create STAR districts as well. That could potentially hold up the bill. However, Jones said it could also be accomplished with additional pieces of legislation.
SB 3750 The measure would ban the sale of children’s food containers that contain bisphenol-A, or BPA, which has been linked to certain cancers and other health problems. Business groups strongly oppose the bill. The issue has been on the legislature’s radar for a while, but lawmakers failed to move a ban last session. The Senate held a committee hearing dedicated to the topic early this month, and the bill could come up for a vote next week.
Adult adoptees granted access to birth records
By Rachel Wells
Adopted adults will soon have greater access to their own birth certificates, under a measure signed into law today by Gov. Pat Quinn that will open most records beginning in November of 2011.
The law will allow adopted adults born before 1946 to access their birth certificates immediately and will allow most people born after January 1, 1946 to access their birth certificates after a year-long informational campaign.
Through public service announcements and driver’s license notifications, the state will attempt to notify adopted adults and birth mothers, who will have the option of maintaining anonymity by submitting the appropriate paperwork. New mothers will also have the option of partial or full openness or complete anonymity. If a mother chooses to make birth records open, her child would not be able to access them until he or she turns 21. The measure’s House sponsor, Rep. Sara Feigenholtz, a Chicago Democrat who is an adoptee, said most birth parents prefer openness.
“[Seeing your birth certificate] is a right that a lot of you who are not adopted take for granted,” Feigenholtz said at the bill signing, describing access to the document as a basic human right. “My story began on a piece of paper that I have never been allowed to see. When Gov. Quinn signs this legislation today, I -- like any other person -- will be able to walk into the office of vital records, put my $15 down on the table and get a copy of my original birth certificate for the first time in my life.”
Opponents of the bill have said making open birth records the default could cause more young pregnant women to choose abortion instead of adoption.
Read more about the measure in the upcoming June print edition of Illinois Issues magazine.
Adopted adults will soon have greater access to their own birth certificates, under a measure signed into law today by Gov. Pat Quinn that will open most records beginning in November of 2011.
The law will allow adopted adults born before 1946 to access their birth certificates immediately and will allow most people born after January 1, 1946 to access their birth certificates after a year-long informational campaign.
Through public service announcements and driver’s license notifications, the state will attempt to notify adopted adults and birth mothers, who will have the option of maintaining anonymity by submitting the appropriate paperwork. New mothers will also have the option of partial or full openness or complete anonymity. If a mother chooses to make birth records open, her child would not be able to access them until he or she turns 21. The measure’s House sponsor, Rep. Sara Feigenholtz, a Chicago Democrat who is an adoptee, said most birth parents prefer openness.
“[Seeing your birth certificate] is a right that a lot of you who are not adopted take for granted,” Feigenholtz said at the bill signing, describing access to the document as a basic human right. “My story began on a piece of paper that I have never been allowed to see. When Gov. Quinn signs this legislation today, I -- like any other person -- will be able to walk into the office of vital records, put my $15 down on the table and get a copy of my original birth certificate for the first time in my life.”
Opponents of the bill have said making open birth records the default could cause more young pregnant women to choose abortion instead of adoption.
Read more about the measure in the upcoming June print edition of Illinois Issues magazine.
Thursday, May 20, 2010
U of I trustees approve tuition hike
Freshmen starting school at the University of Illinois in the fall will face higher costs.
Facing $381 million worth of late payments from the state, the university’s board of trustees voted today to raise tuition for the incoming class by 9.5 percent and give schools the power to borrow.
The base tuition for freshmen at the U of I in Urbana will increase $902 per year to $10, 368. At the Chicago campus, it will jump $792 to $9,134. Students attending U of I Springfield will pay $706 more for a total of $8,108.
This increase can only apply to freshman because the state's truth-in-tuition law guarantees incoming students steady rates for the next four years. The board approved fee increases that included raising the application fee for prospective students by $10.
President Stanley Ikenberry said in a news release that the university could not wait any longer on the legislators to pass a budget because students and their families need to be prepared for the increased tuition costs. "We decided to set tuition so students and their families can plan realistically for the next school year," Ikenberry said in the release.
The board also authorized the schools to take out short-term loans, under SB 642 which passed both chambers, in anticipation of receiving state funds.
Facing $381 million worth of late payments from the state, the university’s board of trustees voted today to raise tuition for the incoming class by 9.5 percent and give schools the power to borrow.
The base tuition for freshmen at the U of I in Urbana will increase $902 per year to $10, 368. At the Chicago campus, it will jump $792 to $9,134. Students attending U of I Springfield will pay $706 more for a total of $8,108.
This increase can only apply to freshman because the state's truth-in-tuition law guarantees incoming students steady rates for the next four years. The board approved fee increases that included raising the application fee for prospective students by $10.
President Stanley Ikenberry said in a news release that the university could not wait any longer on the legislators to pass a budget because students and their families need to be prepared for the increased tuition costs. "We decided to set tuition so students and their families can plan realistically for the next school year," Ikenberry said in the release.
The board also authorized the schools to take out short-term loans, under SB 642 which passed both chambers, in anticipation of receiving state funds.
Lawmakers back next week to talk budget
By Jamey Dunn
The Illinois House will head back to Springfield on Monday with the intent of passing a budget.
According to an e-mail from House Speaker Mike Madigan’s spokesman, Steve Brown, lawmakers will be back in the chamber Monday afternoon. In the e-mail, Brown told legislators to come prepared to work Tuesday and Wednesday as well. Senate President John Cullerton sent out a memo to his members telling them they would be back Wednesday and may be in until Friday. He said in the memo that although he did not expect the session to stretch into Memorial Day weekend, “it may be necessary, depending on the action taken in the House of Representatives.”
Lawmakers must approve a budget by midnight on Monday, when the new fiscal year begins. Anything passed after that date will need a three-fifths majority to take effect.
The Senate passed a budget plan earlier this month, and Cullerton has reiterated that it is now the House’s move.
Representatives have not yet been able to reach agreement on a plan. A bill to borrow almost $4 billion to make the annual pension payment failed, as well as a proposal that would cut roughly the same amount next fiscal year. The reductions mainly target primary and secondary education, an area that is politically difficult for both parties to cut.
Madigan, the sponsor of the cuts measure, invited members from both sides of the aisle to file amendments to the bill proposing alternative cuts. So far only one member, Madigan’s fellow Democrat Rep. Jack Franks from Woodstock, has presented many amendments (Amendments 3, 4 and 5). Franks’ amendments would end salaries for members of executive branch boards or commissions and cut legislators’ and top agency officials’ pay.
Expect a lot of debate and grandstanding from both sides of the aisle next week on hot-button issues like cuts and borrowing.
As part of its budget plan, the Senate passed a bill to direct money toward education from a dollar-a-pack cigarette tax increase that the chamber passed last session. The bill lacked the votes in the House when the legislators left town on May 7.
Without new revenue or borrowing in the mix, the only other substantial option is fairly drastic budget cuts. Democrats have spent the last two weeks negotiating agreements behind close doors, and the plan may take shape next week.
The Illinois House will head back to Springfield on Monday with the intent of passing a budget.
According to an e-mail from House Speaker Mike Madigan’s spokesman, Steve Brown, lawmakers will be back in the chamber Monday afternoon. In the e-mail, Brown told legislators to come prepared to work Tuesday and Wednesday as well. Senate President John Cullerton sent out a memo to his members telling them they would be back Wednesday and may be in until Friday. He said in the memo that although he did not expect the session to stretch into Memorial Day weekend, “it may be necessary, depending on the action taken in the House of Representatives.”
Lawmakers must approve a budget by midnight on Monday, when the new fiscal year begins. Anything passed after that date will need a three-fifths majority to take effect.
The Senate passed a budget plan earlier this month, and Cullerton has reiterated that it is now the House’s move.
Representatives have not yet been able to reach agreement on a plan. A bill to borrow almost $4 billion to make the annual pension payment failed, as well as a proposal that would cut roughly the same amount next fiscal year. The reductions mainly target primary and secondary education, an area that is politically difficult for both parties to cut.
Madigan, the sponsor of the cuts measure, invited members from both sides of the aisle to file amendments to the bill proposing alternative cuts. So far only one member, Madigan’s fellow Democrat Rep. Jack Franks from Woodstock, has presented many amendments (Amendments 3, 4 and 5). Franks’ amendments would end salaries for members of executive branch boards or commissions and cut legislators’ and top agency officials’ pay.
Expect a lot of debate and grandstanding from both sides of the aisle next week on hot-button issues like cuts and borrowing.
As part of its budget plan, the Senate passed a bill to direct money toward education from a dollar-a-pack cigarette tax increase that the chamber passed last session. The bill lacked the votes in the House when the legislators left town on May 7.
Without new revenue or borrowing in the mix, the only other substantial option is fairly drastic budget cuts. Democrats have spent the last two weeks negotiating agreements behind close doors, and the plan may take shape next week.
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