By Jamey Dunn
House Speaker Michael Madigan said Wednesday that a proposal to extend the current tax rates is short by nearly half the votes it would need to pass. Madigan said he told budgeting committees to draft a plan that assumes the rates will begin to step down next fiscal year.
As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. A rollback of the rates would take an estimated $1.6 billion in revenue with it. Gov. Pat Quinn and Democratic legislative leaders are advocating for an extension of the rates, which are 5 percent for individuals and 7 percent for corporations.
House Democrats took a test vote on the extension behind closed doors this afternoon. Madigan said just 34 of them voted in favor of extending the current tax rates, while 30 voted “no.” A handful of Democrats did not take a stance. The proposal needs 60 votes to pass in the House, and the House Republican caucus has already taken a stance against it. “Obviously it’s a very difficult vote. It’s coming at a difficult time,” Madigan said after the caucus meeting. The plan also includes a annual $500 rebate for home owners, which Quinn has pitched as property tax relief.
Last week, the House passed spending that assumed the rates would be extended. Madigan said he has asked the chairs of the chamber's budget committees to work with committee members and present new budget bills without that revenue as soon as possible. “Our plan and our goal is to work toward the preparation of an alternative budget to the one that was adopted by the House a few days ago.”
Budgeting committees in both chambers have already held hearings on what the fallout of such a budget might be. The potential outcomes have been framed as dire and include: the closer of state prisons and the release of inmates with little to no monitoring; the layoff of thousands of teachers; the elimination of child care for many low-income families and in-home care for many seniors; the closure of all forensic labs in the state and the layoff of hundreds of state troopers. The governor also presented a budget based on the current law, which he dubbed his “not recommended budget.”
“Things are very fluid,” Quinn's spokeswoman Brooke Anderson said of Madigan's vote count. “The not-recommended budget includes radical cuts that would harm schools, students and our most vulnerable residents.” Quinn has been meeting with House Democrats individually this week to try and persuade them to support the extension.
Madigan said he thinks it is possible that some House Democrats may change their minds about the tax vote once they see what the cuts without it would look like. “As far as I’m concerned, I’m going to continue to work for the governor’s proposal. I presume the governor is going to continue to work for the proposal. However, the clock is running, and we’re getting closer to the end of the month.” The regular session is scheduled to at midnight on May 31. A budget passed after that time would require a supermajority. However, after January (and after the November general election) the requirement goes back down to a simple majority.
Madigan said he plans to ask Senate Democrats to work with the House on a version of the budget that assumes the current tax rates. A spokeswomen for Senate President John Cullerton said that Senate Democrats will collaborate with the House. But she says they would likely not be willing to pass any plan that is based on an extension of the current rates if the extension is not approved, too. “We have the votes to renew our tax rates. There is strong opposition to passing a budget that doesn’t match available revenues,” Rikeesha Phelon said in a written statement. “If the House is unable to pass revenue, we will be forced to develop budget outlines that may be balanced [but] will be insufficient to meet our budget pressures. It won’t be pretty.”
Opponents to extending that rates claim that Democratic leaders are making the budget picture look worse than it would need to be in order to gain support for their plan. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.”
Madigan said he has not put forth any other potential revenue sources. He also said that a capital construction plan is not moving forward at this time. Quinn has called for a new capital bill because the current one will run out soon. Capital construction projects may also be a lure for Democrats who are on the fence about extending the tax rates. “In my discussions with members, some of those members talked about capital projects. I didn’t,” said Madigan.
Wednesday, May 21, 2014
Tuesday, May 20, 2014
House approves minimum wage ballot question
By Jamey Dunn
The House passed legislation that would allow voters to weigh in on the state’s minimum wage.
House Bill 3814 would place a question on the November general election ballot asking voters if the state’s minimum wage for workers over 18 years old should be raised to $10 an hour by 2015. Democratic legislative leaders and Gov. Pat Quinn back an increase, but House Speaker Michael Madigan said last month that he did not have the vote to pass one. “It became apparent that there were some significant differences in opinion regarding this issue,” Madigan said on the House floor Tuesday. The referendum would not be legally binding, making it little more than a poll of voters on the issue. However, Madigan said that the results of a ballot questions could provide supporters with “evidence” that they could use to get an increase passed in the future. “It’s clear that we need to do more to help reduce economic inequality,” he said. “There’s just no way to support a family on a minimum wage of $8.25 an hour.”
Senate President John Cullerton has said that he has the support to pass a wage increase in his chamber, so it is likely that the ballot question would pass in the Senate. Quinn has repeatedly called for an increase, so it seems probable that he would sign the bill. Also, such a ballot question might help with Democratic get-out-the-vote efforts in November— especially considering that the national party and President Barack Obama have been focusing on the issue recently.
Republicans said that a minimum wage increase could hurt job growth in the state. Some argued that lawmakers were shirking their responsibility by putting the question to voters. “Folks, do we really want to become California? The California legislature can’t make a tough decision without saying, ‘Oh, we’ve got to put it on the ballot,’” said Rep. David Harris “We, the legislature, are supposed to decide on these tough public policy issues.” However, a group of Republicans from both chambers introduced legislation to include an advisory ballot question about a proposed extension of the current income tax rates. “We’re asking the Democrat majority, ‘Before you break your promise and make your job-killing tax hike permanent, why not ask the people how they feel,” said Palatine Republican Sen. Matt Murphy. When the proposal came up on the floor during the debate over the minimum wage question, Madigan said, “On this side of the aisle, we’re working our way through the question of extending the income tax increase.” Madigan says he is lobbying House Democrats to extend the current tax rates, which are scheduled to begin stepping down next fiscal year. He told reporters yesterday that the plan is “significantly” short of the support needed to pass.
The House passed legislation that would allow voters to weigh in on the state’s minimum wage.
House Bill 3814 would place a question on the November general election ballot asking voters if the state’s minimum wage for workers over 18 years old should be raised to $10 an hour by 2015. Democratic legislative leaders and Gov. Pat Quinn back an increase, but House Speaker Michael Madigan said last month that he did not have the vote to pass one. “It became apparent that there were some significant differences in opinion regarding this issue,” Madigan said on the House floor Tuesday. The referendum would not be legally binding, making it little more than a poll of voters on the issue. However, Madigan said that the results of a ballot questions could provide supporters with “evidence” that they could use to get an increase passed in the future. “It’s clear that we need to do more to help reduce economic inequality,” he said. “There’s just no way to support a family on a minimum wage of $8.25 an hour.”
Senate President John Cullerton has said that he has the support to pass a wage increase in his chamber, so it is likely that the ballot question would pass in the Senate. Quinn has repeatedly called for an increase, so it seems probable that he would sign the bill. Also, such a ballot question might help with Democratic get-out-the-vote efforts in November— especially considering that the national party and President Barack Obama have been focusing on the issue recently.
Republicans said that a minimum wage increase could hurt job growth in the state. Some argued that lawmakers were shirking their responsibility by putting the question to voters. “Folks, do we really want to become California? The California legislature can’t make a tough decision without saying, ‘Oh, we’ve got to put it on the ballot,’” said Rep. David Harris “We, the legislature, are supposed to decide on these tough public policy issues.” However, a group of Republicans from both chambers introduced legislation to include an advisory ballot question about a proposed extension of the current income tax rates. “We’re asking the Democrat majority, ‘Before you break your promise and make your job-killing tax hike permanent, why not ask the people how they feel,” said Palatine Republican Sen. Matt Murphy. When the proposal came up on the floor during the debate over the minimum wage question, Madigan said, “On this side of the aisle, we’re working our way through the question of extending the income tax increase.” Madigan says he is lobbying House Democrats to extend the current tax rates, which are scheduled to begin stepping down next fiscal year. He told reporters yesterday that the plan is “significantly” short of the support needed to pass.
Monday, May 19, 2014
Madigan: tax extension is "significantly" short of votes needed to pass
By Jamey Dunn with Caitlin Rydinksy contributing
House Speaker Michael Madigan said that an extension of the current income tax rates is “significantly” short of the votes needed to pass in his chamber despite Gov. Pat Quinn addressing a House Democratic caucus meeting Monday evening.
Quinn met with House Democrats behind closed doors for more than two hours Monday. The governor is advocating for an extension of the current income tax rates of rates of 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. Supporters of extending the current rates argue that allowing the rates to sunset would cause devastating cuts to education and other core areas of state government. As part of his tax plan, Quinn also wants to send an annual $500 property tax rebate to homeowners in the state. “I think we need to make sure that we properly invest in our schools. Our state over relies right now on property tax to fund education. I think we have to do better. We have to use a tax based on ability to pay, the income tax, to properly fund our schools. I spoke about that quite a bit in the caucus,” Quinn said after he addressed the Democrats.
Upon exiting the meeting, many Democrats described it as “cordial” and said that their colleagues had plenty of questions for Quinn. Rep. Elaine Nekritz, a Northbrook Democrat, described the caucus meeting as “tense.” Nekritz said she would support an extension of the current rates if it was coupled with some larger budget reforms, such as the creation of a rainy day fund. “We have a variety of opinions and thoughts on the direction that we ought to be taking, and there was a lot of that aired,” Nekritz said of the caucus. “This is a very very difficult decision for members, so I think that it just creates tension.”
Madigan said that he is working to pass the tax rates extension solely with Democratic support. No Republicans voted in favor of the temporary increase when it was approved in 2011. House Minority Leader Jim Durkin said that he does not plan on putting any votes on an extension of the rates. “Our caucus is firmly against it.” Durkin said that Republicans would make a tax vote a campaign issue for Democrats running for reelection. “It’s kind of a defining issue between the parties,” he said. “Remember, this [tax increase] was temporary three and a half years ago.”
Madigan said that Quinn worked hard to present his case, but he doesn’t know yet if any minds were changed. “I thought he did an excellent job of presenting his position, arguing for his position, taking questions. He took every question. He answered every question. He got very animated on a lot of his answers because, at times, he wasn’t hearing what he wanted to hear,” Madigan said. “I think it’s significant that there was opposition expressed from all sectors of our caucus. I’m going to continue to work to find 60 Democrats to vote for the governor’s bill. We are significantly away from 60 today.” When asked how he would get the votes, Madigan said, “It’s going to take a great deal of persuasion.” He refused to answer questions about possible alternative revenue sources or what would happen with the budget if he cannot get the votes for the extension.
Quinn’s tone was more optimistic. “You’re always building a majority on any issue; it’s a building of a majority to get to 60. I think we’re doing our very best to get that majority. I think my philosophy in life is hope for the best and work for it. So, we’re working real hard on getting those 60 votes in the House of Representatives. Obviously, we have to keep on working until we get there.”
Lawmakers who are likely targets of lobbying efforts from Quinn and Madigan were coy when approached by reporters after hearing Quinn’s arguments. Rep. Sam Yingling, a Democrat from Round Lake Beach, would not comment when asked about his reactions as he excited the meeting. Yingling is signed on as a cosponsor of a bill that would roll back the tax rates to the levels they were at before the increase. Another suburban Democrat, Rep. Fred Crespo, said his constituents are “very concerned” about the possibility of the tax rates being extended. Crespo, who is from Hoffman Estates, has previously opposed extending the rates. “There’s a lot of conversations going on, and we’ll just have to wait and see,” said Crespo. “You know, every day’s a different day.”
House Speaker Michael Madigan said that an extension of the current income tax rates is “significantly” short of the votes needed to pass in his chamber despite Gov. Pat Quinn addressing a House Democratic caucus meeting Monday evening.
Quinn met with House Democrats behind closed doors for more than two hours Monday. The governor is advocating for an extension of the current income tax rates of rates of 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. Supporters of extending the current rates argue that allowing the rates to sunset would cause devastating cuts to education and other core areas of state government. As part of his tax plan, Quinn also wants to send an annual $500 property tax rebate to homeowners in the state. “I think we need to make sure that we properly invest in our schools. Our state over relies right now on property tax to fund education. I think we have to do better. We have to use a tax based on ability to pay, the income tax, to properly fund our schools. I spoke about that quite a bit in the caucus,” Quinn said after he addressed the Democrats.
Upon exiting the meeting, many Democrats described it as “cordial” and said that their colleagues had plenty of questions for Quinn. Rep. Elaine Nekritz, a Northbrook Democrat, described the caucus meeting as “tense.” Nekritz said she would support an extension of the current rates if it was coupled with some larger budget reforms, such as the creation of a rainy day fund. “We have a variety of opinions and thoughts on the direction that we ought to be taking, and there was a lot of that aired,” Nekritz said of the caucus. “This is a very very difficult decision for members, so I think that it just creates tension.”
Madigan said that he is working to pass the tax rates extension solely with Democratic support. No Republicans voted in favor of the temporary increase when it was approved in 2011. House Minority Leader Jim Durkin said that he does not plan on putting any votes on an extension of the rates. “Our caucus is firmly against it.” Durkin said that Republicans would make a tax vote a campaign issue for Democrats running for reelection. “It’s kind of a defining issue between the parties,” he said. “Remember, this [tax increase] was temporary three and a half years ago.”
Madigan said that Quinn worked hard to present his case, but he doesn’t know yet if any minds were changed. “I thought he did an excellent job of presenting his position, arguing for his position, taking questions. He took every question. He answered every question. He got very animated on a lot of his answers because, at times, he wasn’t hearing what he wanted to hear,” Madigan said. “I think it’s significant that there was opposition expressed from all sectors of our caucus. I’m going to continue to work to find 60 Democrats to vote for the governor’s bill. We are significantly away from 60 today.” When asked how he would get the votes, Madigan said, “It’s going to take a great deal of persuasion.” He refused to answer questions about possible alternative revenue sources or what would happen with the budget if he cannot get the votes for the extension.
Quinn’s tone was more optimistic. “You’re always building a majority on any issue; it’s a building of a majority to get to 60. I think we’re doing our very best to get that majority. I think my philosophy in life is hope for the best and work for it. So, we’re working real hard on getting those 60 votes in the House of Representatives. Obviously, we have to keep on working until we get there.”
Lawmakers who are likely targets of lobbying efforts from Quinn and Madigan were coy when approached by reporters after hearing Quinn’s arguments. Rep. Sam Yingling, a Democrat from Round Lake Beach, would not comment when asked about his reactions as he excited the meeting. Yingling is signed on as a cosponsor of a bill that would roll back the tax rates to the levels they were at before the increase. Another suburban Democrat, Rep. Fred Crespo, said his constituents are “very concerned” about the possibility of the tax rates being extended. Crespo, who is from Hoffman Estates, has previously opposed extending the rates. “There’s a lot of conversations going on, and we’ll just have to wait and see,” said Crespo. “You know, every day’s a different day.”
Thursday, May 15, 2014
House approves budget bills without revenue source to cover costs
By Jamey Dunn
The House today approved budget bills for next fiscal year that would spend billions more than the amount of revenue the state would bring in under current law. UPDATE: House Speaker Michael Madigan has filed a motion that will effectively prevent the more than 70 budget bills passed today from automatically going to the Senate. Madigan told the Chicago Tribune that the move was needed in case the House wanted to further amend the bills.
Earlier in the spring session, both chambers voted on a $34.4 billion revenue projection. Now many House Democrats are backing a plan that would require more. Spending was broken down into more than 70 bills. This gave lawmakers the chance to strategically pick and choose what areas of the budget they wanted to vote to support. It also made for more than 9 hours of debate. Republicans spent much of the time crying foul. They argued that the spending bills are unconstitutional because they were approved without matching revenues. The state’s Constitution calls for a balanced budget. “We are voting today for an unconstitutional budget, plain and simple,” said House Minority Leader Jim Durkin. “The state of Illinois needs to live within its means, and we must stop this reckless pattern of insane spending.”
Rep. Ron Sandack, a Downers Grove Republican, described the process as “a shame, a sham and something I am embarrassed to be a part of.” During the debate for almost every bill, Republicans decried voting for spending that they say would require making the temporary tax increase permanent. The current income tax rates are 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. At one point during the debate, Durkin used a procedural move to try to force an end to the day’s session and slow down the process, but his motion was voted down. Democrats criticized Republicans for not presenting an alternative budget plan. “Here’s our plan. Stop spending money,” Sandack said in response.
Democrats who supported the legislation argued that lawmakers should move the appropriations bills through the process while the revenue side of the budget is still in the works because the end of session is rapidly approaching. Adjournment is scheduled for May 31. “There’s some discussion going on the revenue side. Obviously that’s not going very well,” said Hoffman Estates Democrat Rep. Fred Crespo, who presented several of the bills on the floor today. “There’s less than a week and a half left is session, and we need to come up with appropriations.”
The Democrats who presented the bills on the floor acknowledged today that the budget would need more revenue to support the plan, but they were careful to focus on their individual bills and not talk about the tax increase on the floor. Chicago Democratic Rep. Greg Harris, who chairs the human services budgeting committee, said that lawmakers must make the responsible choice to take care of those in need, such as the elderly and the disabled. He added that the funding levels would also be necessary to comply with state and federal law and several court orders that require certain services be provided.
Some Democrats opposed some or all of the spending. “You’re asking us to spend $4 billion more than what our revenue estimates indicate. You’re asking implicitly and tacitly for a tax increase. So a vote for this budget, is also a vote for a tax increase,” said Marengo Democratic Rep. Jack Franks, who was a vocal opponent of the temporary tax increase when it passed in 2011. “If we’re going to do that tax increase, let’s be honest about it. Let’s vote for it today. Let’s see if they’ve got the votes up for it, and let’s do it. Once we know what the revenues are, then we should be talking about the budget.” But Franks said he has his doubts about whether an extension of the tax rates could pass. “There’s no consensus here on raising taxes. ... We’re promising imaginary money that does not exist.”
Meanwhile, House Speaker Michael Madigan said yesterday that he is lobbying for an extension of current rates. There is also a package of changes to business taxes in the works. So the final revenue plan could be a combination of several things in addition to the income tax. Madigan said yesterday he was open to rolling back the corporate income tax rates as part of a larger “balanced package.”
Gov. Pat Quinn said today that he has been lobbying members of both parties in both chambers for a “responsible budget.” Quinn told reporters at an event in Cicero today: “The month of May is all about getting a responsible budget that invests in the future, invests in the classroom, making sure we have world class education, making sure we have [the] proper amount of money for our health care.” Quinn’s staff said that he was in Springfield meeting with lawmakers before he went to the event. “We’ll get a responsible budget, if we work together and work hard,” Quinn said. “That’s what I’m committed to, morning noon and night, getting a responsible budget that doesn’t go back in time, back to a time where Illinois had all kinds of fiscal problems.”
The plan approved today was largely based on Gov. Pat Quinn’s budget proposal, which calls for an extension of the current income tax rates. The rates are scheduled to begin stepping down in the second half of next fiscal year. The plan would increase spending for K-12 and higher education, as well as human services. The spending includes several line items specifically requested by Quinn, including increased funding to the Monetary Assistance Program (MAP) for low-income college students, additional funding for maternal and early childhood health programs, money to turn two shuttered youth centers into special treatment centers for mentally ill and substance addicted adult inmates and raises for home health care workers.
Still, the plan would not fully fund General State Aid to schools. GSA has been prorated for the last three years. The legislation passed today would fund GSA at 90 percent. Some Republicans argued that if there is going to be a tax increase, more of the money should go to education. The line item for transportation would be funded at 83 percent. “We’re spending more money than at any time in history and the question is where is the money? Cause it doggone sure is not in education,” said Rep. Chad Hays, a Catlin Republican. “Where is the money? This process doesn’t add up.” Lewiston Democratic Rep. William Davis, who is chairman of the House K-12 education budgeting committee, said that K-12 education would be getting a bigger chunk of revenue than other areas of the budget. “Tell me someone in this chamber who doesn’t run on some education platform—that they support education and want to see it fully funded? I think we all agree on that. But I think the reality is that there are always some limitations. We don’t have an unlimited pot of resources that we can use.”
In order to make it to Quinn's desk, the bills would still have to clear the Senate, where Democrats who work on the budgeting process have said they are reluctant to approve spending without the funding to match. Senate President John Cullerton has said that he has the votes to get the tax extension through his chamber, but he wants to wait and see if it can pass in the House first.
The House today approved budget bills for next fiscal year that would spend billions more than the amount of revenue the state would bring in under current law. UPDATE: House Speaker Michael Madigan has filed a motion that will effectively prevent the more than 70 budget bills passed today from automatically going to the Senate. Madigan told the Chicago Tribune that the move was needed in case the House wanted to further amend the bills.
Earlier in the spring session, both chambers voted on a $34.4 billion revenue projection. Now many House Democrats are backing a plan that would require more. Spending was broken down into more than 70 bills. This gave lawmakers the chance to strategically pick and choose what areas of the budget they wanted to vote to support. It also made for more than 9 hours of debate. Republicans spent much of the time crying foul. They argued that the spending bills are unconstitutional because they were approved without matching revenues. The state’s Constitution calls for a balanced budget. “We are voting today for an unconstitutional budget, plain and simple,” said House Minority Leader Jim Durkin. “The state of Illinois needs to live within its means, and we must stop this reckless pattern of insane spending.”
Rep. Ron Sandack, a Downers Grove Republican, described the process as “a shame, a sham and something I am embarrassed to be a part of.” During the debate for almost every bill, Republicans decried voting for spending that they say would require making the temporary tax increase permanent. The current income tax rates are 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. At one point during the debate, Durkin used a procedural move to try to force an end to the day’s session and slow down the process, but his motion was voted down. Democrats criticized Republicans for not presenting an alternative budget plan. “Here’s our plan. Stop spending money,” Sandack said in response.
Democrats who supported the legislation argued that lawmakers should move the appropriations bills through the process while the revenue side of the budget is still in the works because the end of session is rapidly approaching. Adjournment is scheduled for May 31. “There’s some discussion going on the revenue side. Obviously that’s not going very well,” said Hoffman Estates Democrat Rep. Fred Crespo, who presented several of the bills on the floor today. “There’s less than a week and a half left is session, and we need to come up with appropriations.”
The Democrats who presented the bills on the floor acknowledged today that the budget would need more revenue to support the plan, but they were careful to focus on their individual bills and not talk about the tax increase on the floor. Chicago Democratic Rep. Greg Harris, who chairs the human services budgeting committee, said that lawmakers must make the responsible choice to take care of those in need, such as the elderly and the disabled. He added that the funding levels would also be necessary to comply with state and federal law and several court orders that require certain services be provided.
Some Democrats opposed some or all of the spending. “You’re asking us to spend $4 billion more than what our revenue estimates indicate. You’re asking implicitly and tacitly for a tax increase. So a vote for this budget, is also a vote for a tax increase,” said Marengo Democratic Rep. Jack Franks, who was a vocal opponent of the temporary tax increase when it passed in 2011. “If we’re going to do that tax increase, let’s be honest about it. Let’s vote for it today. Let’s see if they’ve got the votes up for it, and let’s do it. Once we know what the revenues are, then we should be talking about the budget.” But Franks said he has his doubts about whether an extension of the tax rates could pass. “There’s no consensus here on raising taxes. ... We’re promising imaginary money that does not exist.”
Meanwhile, House Speaker Michael Madigan said yesterday that he is lobbying for an extension of current rates. There is also a package of changes to business taxes in the works. So the final revenue plan could be a combination of several things in addition to the income tax. Madigan said yesterday he was open to rolling back the corporate income tax rates as part of a larger “balanced package.”
Gov. Pat Quinn said today that he has been lobbying members of both parties in both chambers for a “responsible budget.” Quinn told reporters at an event in Cicero today: “The month of May is all about getting a responsible budget that invests in the future, invests in the classroom, making sure we have world class education, making sure we have [the] proper amount of money for our health care.” Quinn’s staff said that he was in Springfield meeting with lawmakers before he went to the event. “We’ll get a responsible budget, if we work together and work hard,” Quinn said. “That’s what I’m committed to, morning noon and night, getting a responsible budget that doesn’t go back in time, back to a time where Illinois had all kinds of fiscal problems.”
The plan approved today was largely based on Gov. Pat Quinn’s budget proposal, which calls for an extension of the current income tax rates. The rates are scheduled to begin stepping down in the second half of next fiscal year. The plan would increase spending for K-12 and higher education, as well as human services. The spending includes several line items specifically requested by Quinn, including increased funding to the Monetary Assistance Program (MAP) for low-income college students, additional funding for maternal and early childhood health programs, money to turn two shuttered youth centers into special treatment centers for mentally ill and substance addicted adult inmates and raises for home health care workers.
Still, the plan would not fully fund General State Aid to schools. GSA has been prorated for the last three years. The legislation passed today would fund GSA at 90 percent. Some Republicans argued that if there is going to be a tax increase, more of the money should go to education. The line item for transportation would be funded at 83 percent. “We’re spending more money than at any time in history and the question is where is the money? Cause it doggone sure is not in education,” said Rep. Chad Hays, a Catlin Republican. “Where is the money? This process doesn’t add up.” Lewiston Democratic Rep. William Davis, who is chairman of the House K-12 education budgeting committee, said that K-12 education would be getting a bigger chunk of revenue than other areas of the budget. “Tell me someone in this chamber who doesn’t run on some education platform—that they support education and want to see it fully funded? I think we all agree on that. But I think the reality is that there are always some limitations. We don’t have an unlimited pot of resources that we can use.”
In order to make it to Quinn's desk, the bills would still have to clear the Senate, where Democrats who work on the budgeting process have said they are reluctant to approve spending without the funding to match. Senate President John Cullerton has said that he has the votes to get the tax extension through his chamber, but he wants to wait and see if it can pass in the House first.
Wednesday, May 14, 2014
Madigan-backed EDGE credit changes advance
By Caitlin Rydinsky
After months of discussion on tax reform, the House Revenue and Finance Committee on Wednesday passed an amendment that would tighten the rules on a high-profile tax incentive for businesses.
The legislation, House Bill 3890, will change the requirements for the Economic Development for a Growing Economy (EDGE) tax credit. House Speaker Michael Madigan, who sponsored the bill, said it would allow smaller businesses to apply for the credits, retain jobs within businesses and help spur development in communities with high rates of poverty and unemployment.
Madigan admitted before the committee that the legislature “fell into a habit” of treating companies individually who could not use their EDGE credit—because they had no tax liability to the state—despite meeting all of the other negotiated qualifications within the credit. Lawmakers began evaluating the incentive, as well as others, after several businesses lined up for Special EDGE credits, to use the credit toward other tax liabilities. The legislation would eliminate the $100 million capital spending requirement for small businesses that employ fewer than 100 employees. The bill would require them to hire five new employees to gain the incentive.
Many opponents said they support eliminating the spending requirement for smaller companies, but that they do not agree with how it is being done. Doug Whitley, president and chief executive officer of the Illinois Chamber of Commerce, who opposes the changes, said, “This labyrinth of exceptions and limitations is so lengthy that I would suggest to you that almost no one is going to comply with this EDGE credit.” Whitley was critical that the measure would still require that lawmakers approve special EDGE credits. “ I thought you were trying to get out of that business,” he said.
While supporters of the tax credit said that it would increase the amount of small businesses that qualify, Carol Portman of the Taxpayers’ Federation of Illinois said that many small businesses don’t pay state income taxes, so she doesn’t see how much it would actually help.
Madigan’s legislation would give special preference to businesses in economically depressed areas. Some argue this may limit development throughout the state. Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers Association, said that because the legislation looks at Census tracks instead of entire communities, a business in a struggling town might not qualify just because of its address. Denzler said that growth in depressed areas is important but that lawmakers should not turn away jobs in more affluent areas. “A job is a job. Do we really want to be discriminant against jobs?”
The most controversial piece of the proposal would require businesses receiving the special EDGE credit to publicly release tax information. Madigan said “the business must agree to disclose income tax information during the term of its EDGE agreement, including gross income, the amount of income allocated to Illinois and net income before and after credits are applied.” Denzler and others in the business community are fundamentally opposed to requiring companies to release tax information. Denzler noted that tax disclosure has been a popular subject for some Democrats, and he said he thought that the requirement might be “throwing a bone” to those who would like to see corporations have to open up their books to the public.
“I will say that what they what the speaker has done is limit … those entities that are going to come to the state and ask for that special treatment in allowing the credits to be used for withholding,” said the ranking Republican on the committee, Rep. David Harris, who is from Arlington Heights. “The way that it’s going to be limited is that those entities are not going to want to disclose all the kind of information that is asked to be disclosed. I have a problem even asking for that, but it’s limited strictly to the [special EDGE tax credit], so I don’t think this is a harmful move and [it] makes some positive reforms.”
After months of discussion on tax reform, the House Revenue and Finance Committee on Wednesday passed an amendment that would tighten the rules on a high-profile tax incentive for businesses.
The legislation, House Bill 3890, will change the requirements for the Economic Development for a Growing Economy (EDGE) tax credit. House Speaker Michael Madigan, who sponsored the bill, said it would allow smaller businesses to apply for the credits, retain jobs within businesses and help spur development in communities with high rates of poverty and unemployment.
Madigan admitted before the committee that the legislature “fell into a habit” of treating companies individually who could not use their EDGE credit—because they had no tax liability to the state—despite meeting all of the other negotiated qualifications within the credit. Lawmakers began evaluating the incentive, as well as others, after several businesses lined up for Special EDGE credits, to use the credit toward other tax liabilities. The legislation would eliminate the $100 million capital spending requirement for small businesses that employ fewer than 100 employees. The bill would require them to hire five new employees to gain the incentive.
Many opponents said they support eliminating the spending requirement for smaller companies, but that they do not agree with how it is being done. Doug Whitley, president and chief executive officer of the Illinois Chamber of Commerce, who opposes the changes, said, “This labyrinth of exceptions and limitations is so lengthy that I would suggest to you that almost no one is going to comply with this EDGE credit.” Whitley was critical that the measure would still require that lawmakers approve special EDGE credits. “ I thought you were trying to get out of that business,” he said.
While supporters of the tax credit said that it would increase the amount of small businesses that qualify, Carol Portman of the Taxpayers’ Federation of Illinois said that many small businesses don’t pay state income taxes, so she doesn’t see how much it would actually help.
Madigan’s legislation would give special preference to businesses in economically depressed areas. Some argue this may limit development throughout the state. Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers Association, said that because the legislation looks at Census tracks instead of entire communities, a business in a struggling town might not qualify just because of its address. Denzler said that growth in depressed areas is important but that lawmakers should not turn away jobs in more affluent areas. “A job is a job. Do we really want to be discriminant against jobs?”
The most controversial piece of the proposal would require businesses receiving the special EDGE credit to publicly release tax information. Madigan said “the business must agree to disclose income tax information during the term of its EDGE agreement, including gross income, the amount of income allocated to Illinois and net income before and after credits are applied.” Denzler and others in the business community are fundamentally opposed to requiring companies to release tax information. Denzler noted that tax disclosure has been a popular subject for some Democrats, and he said he thought that the requirement might be “throwing a bone” to those who would like to see corporations have to open up their books to the public.
“I will say that what they what the speaker has done is limit … those entities that are going to come to the state and ask for that special treatment in allowing the credits to be used for withholding,” said the ranking Republican on the committee, Rep. David Harris, who is from Arlington Heights. “The way that it’s going to be limited is that those entities are not going to want to disclose all the kind of information that is asked to be disclosed. I have a problem even asking for that, but it’s limited strictly to the [special EDGE tax credit], so I don’t think this is a harmful move and [it] makes some positive reforms.”
Several factors at play in tax vote
By Jamey Dunn
The House plans to vote for spending before it takes up the issue of revenue, but a vote on extending the current income tax rate is just part of the budget picture.
House Speaker Michael Madigan said today that he hopes to first pass the spending portion of the budget, which would presume an extension of the temporary income tax. He said that the move is needed to help lobby lawmakers to approve tax rates needed to fund the budget. “Our purposes in advancing the budget first is to set the bar against which we will work to convince people to vote for the revenue.” House committees approved budget bills today that are based largely on Gov. Pat Quinn’s recommended budget.
Republicans say that the move “puts the cart before the horse.” Elmhurst Republican Rep. Dennis Reboletti said that businesses and families do not make their budgets by first deciding what they would like to buy and then figuring out how to pay for it. “We know what our income is. We make decisions based off of that. We don’t assume that we can buy a new house because we hope to have more money, but not have the additional revenue to pay for it.” Many Republicans argued today that a vote on a budget that spends more than the state expects to take in under current law would be unconstitutional. “It is on its face blatantly unconstitutional,” said Catlin Republican Rep. Chad Hays. “Who on planet earth budgets in this fashion? This is simply not done anywhere by anybody.”
But Chicago Democratic Rep. Greg Harris, who is chairman of the House human services budgeting committee, said that moving spending bills along is all part of the process and that the order in which it happens is not as important as getting the whole job done. “There are a lot of pieces of the budget which we have to pass,” said Harris. “I think we have until midnight on the 31st of May to reconcile all of this.” He said that if lawmakers can determine what services they think the state should deliver, then when it comes time to make revenue decisions, they can avoid asking for more than is needed. Harris was clear that he does not think that the state can get by on the current revenue projections that allow the income tax to begin stepping down in the second half of Fiscal Year 2015. Harris called the step down “a terrible financial cliff that we would drive the families of Illinois right off of.”
Republicans argue that Democrats are making the budget scenario under the current rates look muckh worse than it would need to be. “We on our side of the aisle feel very strongly that we can craft a workable budget without devastating extreme irresponsible cuts or reductions. We can craft a responsible budget without having the continuation of the tax,” Rep. David Harris, a Republican from Arlington Heights.
The House is expected to start taking votes on spending bills tomorrow. As Democratic leadership in the chamber works to get the support to stop the income tax rates from stepping down, other issues will likely come into play.
Rep. David Harris said that he expects that a comprehensive business tax reform package will emerge before the end of the month. Harris serves on a House committee that has held hearings over the last year on the business tax climate in the state. (House Speaker Michael Madigan presented a bill with changed to the EDGE tax credit to that committee today. See this blog post for the details.) Madigan said to the committee this morning that he would be willing to allow the corporate income tax rates to roll back if the proposal was tied to other changes. “I’m prepared to advance that bill, but as part of a balanced package,” Madigan told the committee.
Business friendly tax breaks tied to an extension of the income tax rates, or possibly just the individual income tax rate, would serve several political purposes. They could provide cover for Democrats who vote for a tax increase as part of an overall “tax reform” package. They could possibly be used to lure Republican votes on the income tax extension. More likely, Republican “no” votes on business friendly concepts could be used for negative campaign advertising and mailers before the November general election.
But Rep. David Harris says that he believes that the business tax plan will be separate from an income tax vote. He says that he thinks that the package would address such issues, as the franchise tax, incorporation fees and tax credits for manufacturers when the buy equipment. “I think it will be separate from the tax rate bill,” he said. Harris said that if it is tied to extending income tax rates, he does not think any Republicans would vote for it. “I think if it’s a business related package, they’re going to want some Republicans on the package,” Harris says. “I don’t consider an extension of the income tax [to be] tax reform.” He said that any business tax tweaks would likely be revenue neutral. So if some tax cuts are made larger or some taxes eliminated, other tax breaks may be scrapped or reduced. Some would call it closing tax loopholes. Harris, however, would not call it that. “Let’s not call them loopholes. Let’s call them, perhaps, exemptions or credits that we now give that may no longer be beneficial or helpful, or they don’t achieve the public policy that we initially intended them to achieve.”
Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers’ Association, said that he thinks that the work on a business tax package is a mix of policy and politics. “I think it’s a combination of both. I think there’s some legitimate changes being made.” Denzler said that he has not seen a plan yet. “We’ll just see how things play out. We’ll have to look at a final package. ... I think that there can be some positives for the business community.” But he said that coupling an extension of the tax rates with some tax sweeteners for businesses would fall short of being a game-changing move when it comes to the state’s fiscal policy. “Ultimately, we think we need comprehensive tax reform. Making the income tax increase permanent and adding a few tax incentives is a little bit more of a Band-Aid quite frankly to the whole problem that Illinois faces.”
A few more tax issues could also end up in the mix. In his budget address, Quinn called for property tax relief and an incremental doubling of the Earned Income Tax Credit. Both of these options could be used to soften the blow of a tax rate extension and potentially pull some reluctant votes on to it. Under Quinn’s plan, homeowners would lose their current property tax credit and it would be replaced with a flat $500 refund for each owner occupied property. Quinn’s budget office estimates that such tax relief would cost $1.3 billion annually. The current credit costs about $600 million. While some homeowners currently get a tax credit that is larger than $500, Quinn’s staff said that 92 percent homeowners would be better off under his proposal. Quinn’s plan would also increase the EITC from 10 percent of the federal credit to 20 percent at a rate of 2.5 percentage points per year. The increase would cost more than $200 million annually once it reaches 20 percent. At the time of the address, Quinn and his staff were aggressively packaging his pitch to make the tax increase permanent as a reform of the state’s tax system. His proposal also included a five-year budget “blueprint” that calls for spending caps, a rainy day fund and cutting the state’s bill payment cycle down to 30 days.
When all else fails, pork spending—I mean, local construction projects—may also be an option to get votes on a tax rate extension. Democrats acknowledged today that they are also working on a capital construction bill. Quinn has been calling for a capital bill because the current plan, which was the first in 10 years, is about to run out. While Statehouse observers are always (justifiably) skeptical of the way that capital projects appear to be leveraged for votes, nobody can deny that work on Illinois roads and bridges is necessary and that many state facilities are in dire need of maintenance. What the funding stream for a capital bill would be is unclear at this point. Republicans warned today that it could come with more taxation. “There may be additional taxes out there to accommodate some of our other unmet needs,” said Hinckley Republican Rep. Robert Pritchard.
Madigan told reporters this morning that he is working the roll call for an extension of the tax rates. He said that he is not trying to strong-arm lawmakers. “We’re not in the business of issuing threats. ...We don’t engage in tactics like that. We try to work with people, persuade people, cajole people,” Madigan said. “We talk in terms of their view of where the sate should be, what the state should be doing for its citizens.” Madigan said.
When asked how many voted he still needed, he said that he was not to the point of knowing exactly how many members he still needs to persuade. While Senate President John Cullerton has predicted that session could adjourn early this year, Madigan indicated today that might not be the case. “There’s two and a half weeks left in the session. And we’ll be here. We’ll be on our job,” he said.
The House plans to vote for spending before it takes up the issue of revenue, but a vote on extending the current income tax rate is just part of the budget picture.
House Speaker Michael Madigan said today that he hopes to first pass the spending portion of the budget, which would presume an extension of the temporary income tax. He said that the move is needed to help lobby lawmakers to approve tax rates needed to fund the budget. “Our purposes in advancing the budget first is to set the bar against which we will work to convince people to vote for the revenue.” House committees approved budget bills today that are based largely on Gov. Pat Quinn’s recommended budget.
Republicans say that the move “puts the cart before the horse.” Elmhurst Republican Rep. Dennis Reboletti said that businesses and families do not make their budgets by first deciding what they would like to buy and then figuring out how to pay for it. “We know what our income is. We make decisions based off of that. We don’t assume that we can buy a new house because we hope to have more money, but not have the additional revenue to pay for it.” Many Republicans argued today that a vote on a budget that spends more than the state expects to take in under current law would be unconstitutional. “It is on its face blatantly unconstitutional,” said Catlin Republican Rep. Chad Hays. “Who on planet earth budgets in this fashion? This is simply not done anywhere by anybody.”
But Chicago Democratic Rep. Greg Harris, who is chairman of the House human services budgeting committee, said that moving spending bills along is all part of the process and that the order in which it happens is not as important as getting the whole job done. “There are a lot of pieces of the budget which we have to pass,” said Harris. “I think we have until midnight on the 31st of May to reconcile all of this.” He said that if lawmakers can determine what services they think the state should deliver, then when it comes time to make revenue decisions, they can avoid asking for more than is needed. Harris was clear that he does not think that the state can get by on the current revenue projections that allow the income tax to begin stepping down in the second half of Fiscal Year 2015. Harris called the step down “a terrible financial cliff that we would drive the families of Illinois right off of.”
Republicans argue that Democrats are making the budget scenario under the current rates look muckh worse than it would need to be. “We on our side of the aisle feel very strongly that we can craft a workable budget without devastating extreme irresponsible cuts or reductions. We can craft a responsible budget without having the continuation of the tax,” Rep. David Harris, a Republican from Arlington Heights.
The House is expected to start taking votes on spending bills tomorrow. As Democratic leadership in the chamber works to get the support to stop the income tax rates from stepping down, other issues will likely come into play.
Rep. David Harris said that he expects that a comprehensive business tax reform package will emerge before the end of the month. Harris serves on a House committee that has held hearings over the last year on the business tax climate in the state. (House Speaker Michael Madigan presented a bill with changed to the EDGE tax credit to that committee today. See this blog post for the details.) Madigan said to the committee this morning that he would be willing to allow the corporate income tax rates to roll back if the proposal was tied to other changes. “I’m prepared to advance that bill, but as part of a balanced package,” Madigan told the committee.
Business friendly tax breaks tied to an extension of the income tax rates, or possibly just the individual income tax rate, would serve several political purposes. They could provide cover for Democrats who vote for a tax increase as part of an overall “tax reform” package. They could possibly be used to lure Republican votes on the income tax extension. More likely, Republican “no” votes on business friendly concepts could be used for negative campaign advertising and mailers before the November general election.
But Rep. David Harris says that he believes that the business tax plan will be separate from an income tax vote. He says that he thinks that the package would address such issues, as the franchise tax, incorporation fees and tax credits for manufacturers when the buy equipment. “I think it will be separate from the tax rate bill,” he said. Harris said that if it is tied to extending income tax rates, he does not think any Republicans would vote for it. “I think if it’s a business related package, they’re going to want some Republicans on the package,” Harris says. “I don’t consider an extension of the income tax [to be] tax reform.” He said that any business tax tweaks would likely be revenue neutral. So if some tax cuts are made larger or some taxes eliminated, other tax breaks may be scrapped or reduced. Some would call it closing tax loopholes. Harris, however, would not call it that. “Let’s not call them loopholes. Let’s call them, perhaps, exemptions or credits that we now give that may no longer be beneficial or helpful, or they don’t achieve the public policy that we initially intended them to achieve.”
Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers’ Association, said that he thinks that the work on a business tax package is a mix of policy and politics. “I think it’s a combination of both. I think there’s some legitimate changes being made.” Denzler said that he has not seen a plan yet. “We’ll just see how things play out. We’ll have to look at a final package. ... I think that there can be some positives for the business community.” But he said that coupling an extension of the tax rates with some tax sweeteners for businesses would fall short of being a game-changing move when it comes to the state’s fiscal policy. “Ultimately, we think we need comprehensive tax reform. Making the income tax increase permanent and adding a few tax incentives is a little bit more of a Band-Aid quite frankly to the whole problem that Illinois faces.”
A few more tax issues could also end up in the mix. In his budget address, Quinn called for property tax relief and an incremental doubling of the Earned Income Tax Credit. Both of these options could be used to soften the blow of a tax rate extension and potentially pull some reluctant votes on to it. Under Quinn’s plan, homeowners would lose their current property tax credit and it would be replaced with a flat $500 refund for each owner occupied property. Quinn’s budget office estimates that such tax relief would cost $1.3 billion annually. The current credit costs about $600 million. While some homeowners currently get a tax credit that is larger than $500, Quinn’s staff said that 92 percent homeowners would be better off under his proposal. Quinn’s plan would also increase the EITC from 10 percent of the federal credit to 20 percent at a rate of 2.5 percentage points per year. The increase would cost more than $200 million annually once it reaches 20 percent. At the time of the address, Quinn and his staff were aggressively packaging his pitch to make the tax increase permanent as a reform of the state’s tax system. His proposal also included a five-year budget “blueprint” that calls for spending caps, a rainy day fund and cutting the state’s bill payment cycle down to 30 days.
When all else fails, pork spending—I mean, local construction projects—may also be an option to get votes on a tax rate extension. Democrats acknowledged today that they are also working on a capital construction bill. Quinn has been calling for a capital bill because the current plan, which was the first in 10 years, is about to run out. While Statehouse observers are always (justifiably) skeptical of the way that capital projects appear to be leveraged for votes, nobody can deny that work on Illinois roads and bridges is necessary and that many state facilities are in dire need of maintenance. What the funding stream for a capital bill would be is unclear at this point. Republicans warned today that it could come with more taxation. “There may be additional taxes out there to accommodate some of our other unmet needs,” said Hinckley Republican Rep. Robert Pritchard.
Madigan told reporters this morning that he is working the roll call for an extension of the tax rates. He said that he is not trying to strong-arm lawmakers. “We’re not in the business of issuing threats. ...We don’t engage in tactics like that. We try to work with people, persuade people, cajole people,” Madigan said. “We talk in terms of their view of where the sate should be, what the state should be doing for its citizens.” Madigan said.
When asked how many voted he still needed, he said that he was not to the point of knowing exactly how many members he still needs to persuade. While Senate President John Cullerton has predicted that session could adjourn early this year, Madigan indicated today that might not be the case. “There’s two and a half weeks left in the session. And we’ll be here. We’ll be on our job,” he said.
Tuesday, May 13, 2014
What to watch: legislation edition
By Jamey Dunn
With three weeks left in the regular session lawmakers have plenty of issues to consider. The House is expected to start taking budget votes this week, but Democratic leaders in the chamber have yet to secure the support needed to approve an extension of the current tax rates. Meanwhile, lots of legislation will begin to fly out of each chamber as deadlines for passage approach. Here are some measures to watch for:
Minimum wage increase
A proposal to incrementally increase the state’s minimum wage from $8.15 an hour to $10.65 an hour by 2016 has the support of Gov. Pat Quinn and Senate President John Cullerton. Sen. Kimberly Lightford, a Maywood Democrat, said earlier this year that she had been working with business groups on Senate Bill 68 to try and make it more palatable. But she will likely never be able to get business leaders to remain neutral on the bill, let alone support it. Cullerton says that the bill has the support to pass in the Senate. House Speaker Michael Madigan said recently that he did not have to votes to pass the bill in his chamber, but that could change as end of session deals are worked out. The proposal currently does not have a house sponsor.
Republican Sen. Jim Oberweis, who is from Sugar Grove, has proposed increasing the minimum wage to $10 over three years. But the increase in his proposal, SB 2004, would only apply to workers who are 26 or older. Oberweis is challenging Democratic U.S. Senator Dick Durbin. Oberweis has only filed a handful of other bills, which are mostly related to increasing speed limits and allowing car sales on Sundays. It seems that politics might be a factor in his decision to weigh in on this national issue.
Revenge porn
There are two bills, one originating from the Senate and once from the House, that would make the it a crime to post explicit photographs or video of someone online without their permission. Sponsors Highwood Democratic Rep. Scott Drury and Democratic Sen. Michael Hastings, who is from Orland Hills, are reportedly working to iron out the differences between both bills. If they can come to an agreement, it seems likely that the measure would be approved by the General Assembly. Both House Bill 4320 and SB 2694 passed in their respective chambers with overwhelming majorities.
Rape statute of limitations
A proposal that would start the time for the statute of limitations on sexual assault cases at the point when a rape kit is processes could get a hearing in a House committee tomorrow. Currently, the countdown on the statute of limitations begins at the time of the assault. The legislation comes in response to a recent backlog in rape kits. At one time the Illinois State Police had more than 4,000 untested kits. The backlog has since been cleared. The bill is SB 2609.
Smoking ban on campus
SB 2202, which would ban smoking on public college campuses is positioned for a floor vote in the Senate. The measure would apply to all university property and would let universities decide what the penalty would be for those who violate the ban. Opponents to the proposal argued that smoking policy decisions should be left to university trustees. The House approved the bill in April.
Regulation of ride-share startups
A hotly contested proposal to regulate ride-sharing startups, such as Uber and Lyft, could come up for a vote in a Senate hearing tomorrow. HB 4075 passed in the House in April. Ride-sharing companies link passengers up via their smartphones with drivers, who use their own vehicles. But the well-regulated taxi industry claims that ride-sharing companies and drivers are getting around the cost of doing business and skirting safety measures and inspections. Opponents to strict regulations argue that they would stifle a new and innovative business model.
Medical marijuana for epilepsy
SB 2636, would allow children with epilepsy access to marijuana as a treatment under the state’s medical cannabis pilot program. Some families have found that a liquid form of the drug helps control the disease in children with frequent seizures. Parents say marijuana oil has helped their children, who may have hundreds or thousands of seizures a day, to cut the number down to just a few. The legislation would also allow the use of the drug for adults with the disease. SB 2636 passed in the Senate in April and is currently on second reading in the House.
With three weeks left in the regular session lawmakers have plenty of issues to consider. The House is expected to start taking budget votes this week, but Democratic leaders in the chamber have yet to secure the support needed to approve an extension of the current tax rates. Meanwhile, lots of legislation will begin to fly out of each chamber as deadlines for passage approach. Here are some measures to watch for:
Minimum wage increase
A proposal to incrementally increase the state’s minimum wage from $8.15 an hour to $10.65 an hour by 2016 has the support of Gov. Pat Quinn and Senate President John Cullerton. Sen. Kimberly Lightford, a Maywood Democrat, said earlier this year that she had been working with business groups on Senate Bill 68 to try and make it more palatable. But she will likely never be able to get business leaders to remain neutral on the bill, let alone support it. Cullerton says that the bill has the support to pass in the Senate. House Speaker Michael Madigan said recently that he did not have to votes to pass the bill in his chamber, but that could change as end of session deals are worked out. The proposal currently does not have a house sponsor.
Republican Sen. Jim Oberweis, who is from Sugar Grove, has proposed increasing the minimum wage to $10 over three years. But the increase in his proposal, SB 2004, would only apply to workers who are 26 or older. Oberweis is challenging Democratic U.S. Senator Dick Durbin. Oberweis has only filed a handful of other bills, which are mostly related to increasing speed limits and allowing car sales on Sundays. It seems that politics might be a factor in his decision to weigh in on this national issue.
Revenge porn
There are two bills, one originating from the Senate and once from the House, that would make the it a crime to post explicit photographs or video of someone online without their permission. Sponsors Highwood Democratic Rep. Scott Drury and Democratic Sen. Michael Hastings, who is from Orland Hills, are reportedly working to iron out the differences between both bills. If they can come to an agreement, it seems likely that the measure would be approved by the General Assembly. Both House Bill 4320 and SB 2694 passed in their respective chambers with overwhelming majorities.
Rape statute of limitations
A proposal that would start the time for the statute of limitations on sexual assault cases at the point when a rape kit is processes could get a hearing in a House committee tomorrow. Currently, the countdown on the statute of limitations begins at the time of the assault. The legislation comes in response to a recent backlog in rape kits. At one time the Illinois State Police had more than 4,000 untested kits. The backlog has since been cleared. The bill is SB 2609.
Smoking ban on campus
SB 2202, which would ban smoking on public college campuses is positioned for a floor vote in the Senate. The measure would apply to all university property and would let universities decide what the penalty would be for those who violate the ban. Opponents to the proposal argued that smoking policy decisions should be left to university trustees. The House approved the bill in April.
Regulation of ride-share startups
A hotly contested proposal to regulate ride-sharing startups, such as Uber and Lyft, could come up for a vote in a Senate hearing tomorrow. HB 4075 passed in the House in April. Ride-sharing companies link passengers up via their smartphones with drivers, who use their own vehicles. But the well-regulated taxi industry claims that ride-sharing companies and drivers are getting around the cost of doing business and skirting safety measures and inspections. Opponents to strict regulations argue that they would stifle a new and innovative business model.
Medical marijuana for epilepsy
SB 2636, would allow children with epilepsy access to marijuana as a treatment under the state’s medical cannabis pilot program. Some families have found that a liquid form of the drug helps control the disease in children with frequent seizures. Parents say marijuana oil has helped their children, who may have hundreds or thousands of seizures a day, to cut the number down to just a few. The legislation would also allow the use of the drug for adults with the disease. SB 2636 passed in the Senate in April and is currently on second reading in the House.
Monday, May 12, 2014
CapitolView
CapitolView, WSEC-TV Springfield. Host Amanda Vinicky (WIU/IL Public Radio) and guests Kent Redfield (UIS) and Andy Maloney (Chicago Law Bulletin) discuss legal troubles for both Bruce Rauner and Gov. Pat Quinn among other topics.
Tuesday, May 06, 2014
Legislative panel plans probe of Quinn's anti-violence initiative
By Jamey Dunn
A legislative commission that reviews state audits voted today to activate its subpoena power to look into Gov. Pat Quinn’s troubled anti-violence program.
A scathing audit from Auditor General William Holland thrust the Neighborhood Recovery Initiative (NRI) into the spotlight earlier this year. According to the report, the program did not use a competitive bidding process to select the providers and dole out grants but instead relied on recommendations from Chicago aldermen. Auditors found that at least $2 million was unaccounted for and necessary documentation was missing, including timecards for workers.
Since the audit, the U.S. attorney's office and the Cook County prosecutor's office have both begun investigating to program. Republicans have accused the governor of using the $54 million program as a “political slush fund.” The bulk of the money for the program came from discretionary spending Quinn is allowed under the state budget. Contracts for the program were signed shortly before Quinn narrowly won the 2010 race for governor, and some of the funding began to go out shortly after Election Day.
Quinn says that he shut the NRI down as soon as he became aware that it had problems. “When it wasn’t going in the right direction, when it wasn’t doing what we wanted it to do, I shut it down completely and stopped it cold,” Quinn said today. “I didn’t sweep anything under the rug. I acted on behalf of the public and shut the program down.” Quinn is also advocating for the passage of House Bill 3820, which would require more oversight for state grants. The House passed the bill last month. “I’m ready to sign it into law. I think that that certainly is something that is an important mission.”
Sen. Jason Barickman, a Bloomington Republican, brought a motion to the Legislative Audit Commission today that would allow the bipartisan panel to subpoena witnesses or information pertaining to the NRI. The commission, which is made up of members of both chambers, reviews audits, holds public hearings with state agency heads and sometimes recommends changes to the law as a result of audit findings. “Given what we know today about this program, given the many questions that many of us have about this program, the statute makes clear that we need to further investigate, find out what facts exist and make our recommendations accordingly,” said Barickman. “It’s clear that we have more work to do to get to the bottom of this.”
The proposal received bipartisan support; however, several Democrats on the commission voiced concerns that a probe from the commission would at best produce nothing beyond what will come out during the ongoing criminal investigations and would at worst impede them. “What’s the value at the end of the day that we’ll be putting on the table?” asked Hoffman Estates Democratic Rep. Fred Crespo, who sponsors HB 3820. “What can we do that they cannot do?” Crespo and others said that the commission does not have the resources to launch a major investigation.
Barickman, who chairs the committee, and co-chair Rep. Frank Mautino, a Democrat from Spring Valley, would both have to sign off on any subpoenas issued. Mautino was the sole vote against the motion. He argued that the information the committee needs is already available and that subpoenas may be unecessary. He noted that Holland’s office has several boxes of documents related to the audit and that no legislative staffers have gone through them at this point. Mautino said that the panel should first ask for the information and witnesses it is seeking instead of resorting to subpoena powers.
Holland said he would provide the commission with any information they want. “You don’t have to subpoena the records, and you don’t have to FOIA the records. You make an appointment, you come in and you take a look. That’s the way we do business,” He said. Holland also said that state agencies are required by law to comply. Barickman said that because the agency that oversaw the program has been dissolved and some of the people who worked on the NRI have since left state government, the commission may need the legal power to compel them to cooperate.
Barickman said that today’s action would give the committee “every tool available” to look into the issue in the coming months. “We’re not scheduled to meet [again] until late August or September of 2014. So this gives us all of the tools necessary to continue with our duties over the summer.” If the commission decides to bring forward any revelations about the NRI at that next hearing, it would be pretty inopportune political timing for Quinn’s reelection bid.
Quinn called Brickman’s motion politically motivated. “Politcs as usual. It’s a political time of year. We shut the program down. That’s the bottom line. We did it two years ago.”
Barickman said Quinn has been trying to “rewrite the facts” in recent media appearances. He said that the commission’s vote today “demonstrated wholeheartedly” that “this absolutely is not a partisan issue.” But whether the power will actually come into play is yet to be seen. Mautino would have to agree to subpoenas and an equally balanced bipartisan subcommittee would then have to draft them and approve them by a majority vote. Democrats on the commission went along with today’s vote, for the most part, but they may not be as accommodating when and if the subpoenas begin to fly.
A legislative commission that reviews state audits voted today to activate its subpoena power to look into Gov. Pat Quinn’s troubled anti-violence program.
A scathing audit from Auditor General William Holland thrust the Neighborhood Recovery Initiative (NRI) into the spotlight earlier this year. According to the report, the program did not use a competitive bidding process to select the providers and dole out grants but instead relied on recommendations from Chicago aldermen. Auditors found that at least $2 million was unaccounted for and necessary documentation was missing, including timecards for workers.
Since the audit, the U.S. attorney's office and the Cook County prosecutor's office have both begun investigating to program. Republicans have accused the governor of using the $54 million program as a “political slush fund.” The bulk of the money for the program came from discretionary spending Quinn is allowed under the state budget. Contracts for the program were signed shortly before Quinn narrowly won the 2010 race for governor, and some of the funding began to go out shortly after Election Day.
Quinn says that he shut the NRI down as soon as he became aware that it had problems. “When it wasn’t going in the right direction, when it wasn’t doing what we wanted it to do, I shut it down completely and stopped it cold,” Quinn said today. “I didn’t sweep anything under the rug. I acted on behalf of the public and shut the program down.” Quinn is also advocating for the passage of House Bill 3820, which would require more oversight for state grants. The House passed the bill last month. “I’m ready to sign it into law. I think that that certainly is something that is an important mission.”
Sen. Jason Barickman, a Bloomington Republican, brought a motion to the Legislative Audit Commission today that would allow the bipartisan panel to subpoena witnesses or information pertaining to the NRI. The commission, which is made up of members of both chambers, reviews audits, holds public hearings with state agency heads and sometimes recommends changes to the law as a result of audit findings. “Given what we know today about this program, given the many questions that many of us have about this program, the statute makes clear that we need to further investigate, find out what facts exist and make our recommendations accordingly,” said Barickman. “It’s clear that we have more work to do to get to the bottom of this.”
The proposal received bipartisan support; however, several Democrats on the commission voiced concerns that a probe from the commission would at best produce nothing beyond what will come out during the ongoing criminal investigations and would at worst impede them. “What’s the value at the end of the day that we’ll be putting on the table?” asked Hoffman Estates Democratic Rep. Fred Crespo, who sponsors HB 3820. “What can we do that they cannot do?” Crespo and others said that the commission does not have the resources to launch a major investigation.
Barickman, who chairs the committee, and co-chair Rep. Frank Mautino, a Democrat from Spring Valley, would both have to sign off on any subpoenas issued. Mautino was the sole vote against the motion. He argued that the information the committee needs is already available and that subpoenas may be unecessary. He noted that Holland’s office has several boxes of documents related to the audit and that no legislative staffers have gone through them at this point. Mautino said that the panel should first ask for the information and witnesses it is seeking instead of resorting to subpoena powers.
Holland said he would provide the commission with any information they want. “You don’t have to subpoena the records, and you don’t have to FOIA the records. You make an appointment, you come in and you take a look. That’s the way we do business,” He said. Holland also said that state agencies are required by law to comply. Barickman said that because the agency that oversaw the program has been dissolved and some of the people who worked on the NRI have since left state government, the commission may need the legal power to compel them to cooperate.
Barickman said that today’s action would give the committee “every tool available” to look into the issue in the coming months. “We’re not scheduled to meet [again] until late August or September of 2014. So this gives us all of the tools necessary to continue with our duties over the summer.” If the commission decides to bring forward any revelations about the NRI at that next hearing, it would be pretty inopportune political timing for Quinn’s reelection bid.
Quinn called Brickman’s motion politically motivated. “Politcs as usual. It’s a political time of year. We shut the program down. That’s the bottom line. We did it two years ago.”
Barickman said Quinn has been trying to “rewrite the facts” in recent media appearances. He said that the commission’s vote today “demonstrated wholeheartedly” that “this absolutely is not a partisan issue.” But whether the power will actually come into play is yet to be seen. Mautino would have to agree to subpoenas and an equally balanced bipartisan subcommittee would then have to draft them and approve them by a majority vote. Democrats on the commission went along with today’s vote, for the most part, but they may not be as accommodating when and if the subpoenas begin to fly.
Wednesday, April 30, 2014
House committee approves funding for Obama's presidential library, again
By Caitlin Rydinsky
A House committee today once again approved $100 million in capital funding for President Barack Obama’s future presidential library and museum after questions were raised ethics surrounding a previous vote.
The proposal passed at a hearing earlier this month with a 9 to 0 vote, with no Republicans present. The Democratic chairman of the committee used a procedural move to have a vote without the full committee present. After the details came to light, Republicans demanded another vote on House Bill 6010, which is sponsored by House Speaker Michael Madigan.
Today the bill was approved with no Republican support. Republicans questioned using state funding for the presidential library when the construction of previous libraries was funded by private donations. For example, the William J. Clinton Presidential Library and Museum raised $200 million in private funds and the George W. Bush Presidential Library and Museum raised $250 million through private donations. “I’m just curious about what precedence this sets,” said Rep. Joe Sosnowski, a Republican from Rockford. He said that the state should wait to see how much private funding would be received before pledging a specific amount.
“This is a big building. It would be located in the state of Illinois. It would be an international tourist attraction and would be named after the son of Illinois, who became president ... of the United States,” said Madigan. “We are all here to support this. We did it for Abraham Lincoln here in Springfield. We can do it for Barack Obama in Chicago.”
The Obama Presidential Library opened up competition between states to bid and seek the library. Geographic touchstones from the president’s life, such Chicago, where he lived with his family before moving to Washington, D.C., Hawaii, where he was born, and New York, where he attended Columbia University, are considered top contenders. Universities in Chicago, such as the University of Illinois Chicago, University of Chicago and Chicago State University, are all interested in housing the library.
Madigan did not have an estimate of the potential revenue that would be generated by the library, but he said it would be an educational opportunity for children and bring national and international tourism to the state. Estimates from the city of Chicago indicate that the library could bring 55 million visitors by 2020. The projections are based on attendance at the Lincoln presidential library.
Madigan said the funding for an Obama library is no different than the $120 million in state funds offered for the Abraham Lincoln Presidential Library and Museum. Republicans argued that it is not a fair comparison because the Lincoln Library is run by the Illinois Historic Preservation Agency, where all other presidential libraries fall under the National Archives and Records of Administration.
When asked if the money for the library would take away from other projects already appropriated with capital funding, Madigan said, “If I were a Republican, I would say new growth, but I am not a Republican, so I would have an open mind.” Madigan said he plans to work with both chambers in to gain votes to have the legislation pass and is “prepared to work to find money.”
A House committee today once again approved $100 million in capital funding for President Barack Obama’s future presidential library and museum after questions were raised ethics surrounding a previous vote.
The proposal passed at a hearing earlier this month with a 9 to 0 vote, with no Republicans present. The Democratic chairman of the committee used a procedural move to have a vote without the full committee present. After the details came to light, Republicans demanded another vote on House Bill 6010, which is sponsored by House Speaker Michael Madigan.
Today the bill was approved with no Republican support. Republicans questioned using state funding for the presidential library when the construction of previous libraries was funded by private donations. For example, the William J. Clinton Presidential Library and Museum raised $200 million in private funds and the George W. Bush Presidential Library and Museum raised $250 million through private donations. “I’m just curious about what precedence this sets,” said Rep. Joe Sosnowski, a Republican from Rockford. He said that the state should wait to see how much private funding would be received before pledging a specific amount.
“This is a big building. It would be located in the state of Illinois. It would be an international tourist attraction and would be named after the son of Illinois, who became president ... of the United States,” said Madigan. “We are all here to support this. We did it for Abraham Lincoln here in Springfield. We can do it for Barack Obama in Chicago.”
The Obama Presidential Library opened up competition between states to bid and seek the library. Geographic touchstones from the president’s life, such Chicago, where he lived with his family before moving to Washington, D.C., Hawaii, where he was born, and New York, where he attended Columbia University, are considered top contenders. Universities in Chicago, such as the University of Illinois Chicago, University of Chicago and Chicago State University, are all interested in housing the library.
Madigan did not have an estimate of the potential revenue that would be generated by the library, but he said it would be an educational opportunity for children and bring national and international tourism to the state. Estimates from the city of Chicago indicate that the library could bring 55 million visitors by 2020. The projections are based on attendance at the Lincoln presidential library.
Madigan said the funding for an Obama library is no different than the $120 million in state funds offered for the Abraham Lincoln Presidential Library and Museum. Republicans argued that it is not a fair comparison because the Lincoln Library is run by the Illinois Historic Preservation Agency, where all other presidential libraries fall under the National Archives and Records of Administration.
When asked if the money for the library would take away from other projects already appropriated with capital funding, Madigan said, “If I were a Republican, I would say new growth, but I am not a Republican, so I would have an open mind.” Madigan said he plans to work with both chambers in to gain votes to have the legislation pass and is “prepared to work to find money.”
Tuesday, April 29, 2014
Two constitutional amendments fall flat, while two others move forward
By Jamey Dunn
Two legislative efforts to get proposed constitutional amendments on the ballot failed today.
The push for a constitutional amendment that would allow a graduated income tax fell flat today. To meet the deadline to get the amendment on the November ballot, the Senate would have had to have approved it today. Democratic Sen. Don Harmon, who is the sponsor of Senate Joint Resolution Constitutional Amendment 40, said he had the votes in his chamber. But Harmon of Oak Park said he did not want to call upon his colleagues to take a tough vote if it seemed that the measure had no chance of passing in the House. “I have said from the get-go, I want to make sure the reception in the House is a warm one, and we want to make sure we have the votes lined up in the House,” Harmon said today.
Opponents of the amendment dub it a tax increase because graduated rates, which are in a separate bill, proposed by Harmon and other backers, assume that the temporary income tax rates would become permanent. The amendment itself would not affect rates but would only allow for a graduated income tax. Currently, the state’s Constitution calls for a flat tax. Supporters of the plan filled the capital rotunda today, chanting, “We want a fair tax.” Harmon lobbied House members and called on the Senate not to adjourn when it broke for committees in the afternoon, giving him more time to try to round up the votes needed. But in the end, it was not enough and the Senate adjourned this evening without taking a vote on the amendment.
The proposal faced an uphill climb in the House from the beginning of session. Republicans have been outspokenly opposed to the plan and it would have needed support from every Democrat in the chamber to pass. Marengo Democratic Sen. Jack Franks signed on to a resolution opposing a graduated income tax, and House Speaker Michael Madigan told reporters recently that the amendment was far from having the support it needed to pass in the chamber.
Meanwhile, a proposal from Senate Minority Leader Christine Radogno to impose term limits on constitutional officers failed to get the support needed to make it out of committee today. Radogno said that her position on term limits has “evolved” over time as she has become frustrated with conditions in Illinois. “The public is clamoring for change. They want new ideas. They want new faces,” she said. Democrats on the committee chided Radogno for introducing the proposal so close to the deadline to get amendments on the ballot. Radogno filed her resolution last week. Additional session days would have to have been scheduled to meet the necessary timeline if the amendment had moved forward. But Radogno said that if Democrats were interested in passing it, there was still enough time left.
Republican candidate for governor Bruce Rauner is backing a push to put a constitutional amendment for legislative term limits on the ballot through a citizen initiative. The Committee for Legislative Reform and Term Limits, which has Rauner as its chairman, plans to turn its signed petitions in tomorrow. Yes for Independent Maps, a group spearheading a citizen initiative campaign for an amendment that would change the way legislative districts are drawn in the state, plans to turn in its petitions on Thursday. If the signatures are approved by the State Board of Elections, both proposed amendments would likely face court challenges before they would reach the ballot.
Two legislative efforts to get proposed constitutional amendments on the ballot failed today.
The push for a constitutional amendment that would allow a graduated income tax fell flat today. To meet the deadline to get the amendment on the November ballot, the Senate would have had to have approved it today. Democratic Sen. Don Harmon, who is the sponsor of Senate Joint Resolution Constitutional Amendment 40, said he had the votes in his chamber. But Harmon of Oak Park said he did not want to call upon his colleagues to take a tough vote if it seemed that the measure had no chance of passing in the House. “I have said from the get-go, I want to make sure the reception in the House is a warm one, and we want to make sure we have the votes lined up in the House,” Harmon said today.
Opponents of the amendment dub it a tax increase because graduated rates, which are in a separate bill, proposed by Harmon and other backers, assume that the temporary income tax rates would become permanent. The amendment itself would not affect rates but would only allow for a graduated income tax. Currently, the state’s Constitution calls for a flat tax. Supporters of the plan filled the capital rotunda today, chanting, “We want a fair tax.” Harmon lobbied House members and called on the Senate not to adjourn when it broke for committees in the afternoon, giving him more time to try to round up the votes needed. But in the end, it was not enough and the Senate adjourned this evening without taking a vote on the amendment.
The proposal faced an uphill climb in the House from the beginning of session. Republicans have been outspokenly opposed to the plan and it would have needed support from every Democrat in the chamber to pass. Marengo Democratic Sen. Jack Franks signed on to a resolution opposing a graduated income tax, and House Speaker Michael Madigan told reporters recently that the amendment was far from having the support it needed to pass in the chamber.
Meanwhile, a proposal from Senate Minority Leader Christine Radogno to impose term limits on constitutional officers failed to get the support needed to make it out of committee today. Radogno said that her position on term limits has “evolved” over time as she has become frustrated with conditions in Illinois. “The public is clamoring for change. They want new ideas. They want new faces,” she said. Democrats on the committee chided Radogno for introducing the proposal so close to the deadline to get amendments on the ballot. Radogno filed her resolution last week. Additional session days would have to have been scheduled to meet the necessary timeline if the amendment had moved forward. But Radogno said that if Democrats were interested in passing it, there was still enough time left.
Republican candidate for governor Bruce Rauner is backing a push to put a constitutional amendment for legislative term limits on the ballot through a citizen initiative. The Committee for Legislative Reform and Term Limits, which has Rauner as its chairman, plans to turn its signed petitions in tomorrow. Yes for Independent Maps, a group spearheading a citizen initiative campaign for an amendment that would change the way legislative districts are drawn in the state, plans to turn in its petitions on Thursday. If the signatures are approved by the State Board of Elections, both proposed amendments would likely face court challenges before they would reach the ballot.
Monday, April 28, 2014
Senate waiting for House support on graduated income tax vote
By Jamey Dunn
Democratic leaders in the Senate do not plan to move forward with a graduated income tax proposal unless there is indication that plan could pass in the House.
Senate President John Cullerton said that he is supportive of the proposed constitutional amendment. But he said he plans to “wait and see” what the House does on the issue because it likely has less support in that chamber. A spokesperson for Cullerton later clarified that he would consider a vote if there was indication that the House would approve the measure.
Oak Park Democratic Sen. Don Harmon, who sponsors the amendment, reportedly planned to call it for a vote this week. Supporters of the amendment are almost out of time. For Harmon’s Senate Joint Constitutional Amendment Resolution 40 to make it to the ballot under the current legislative schedule, it would need to pass in the Senate tomorrow and in the House on Thursday. The final deadline to approve constitutional amendments is May 4, but as of now, both chambers are scheduled to wrap us session this week on Thursday.) Harmon was not available for comment.
Constitutional amendments require the backing of three-fifths of both chambers. House Speaker Michael Madigan told reporters last week that a progressive income tax amendment was “significantly short” of the support needed to pass in the House. The proposal has no public support from Republicans, so all the Democrats in the House would have to vote for it. Rep. Jack Franks, a Democrat from Marengo, is a cosponsor of a resolution opposing a graduated income tax. There is a graduated income tax amendment in the House, too. But it is not as far along in the process as the Senate amendment after it failed to make it out of the House Revenue and Finance Committee in March.
Cullerton said today that his chamber would also take a wait-and-see approach on extending the current income tax rates. “We have two different budgets that we are contemplating.” Cullerton said one version includes an extension of the current rates. The other would allow the tax increase to begin its sunset in 2015 and would require substantial cuts. He said that since Madigan is still working to get the votes for it in the House, a tax rates extension should start in that chamber. “We will wait and see which of the two budgets we have to work with.” When asked if Democrats could vote in favor of the cuts that would be needed to allow the income tax rates to go down, Cullerton said: “It will be difficult, but we have to pass a budget.”
As lawmakers head into the last month of spring session, which ends at midnight on May 31, Cullerton says he hopes that the support can be mustered to pass an increase in the state’s minimum wage. He said that he thinks there is broad backing among voters for such and increase. “Now, the question is whether or not we have the votes for it here.” Madigan said last week that he is also still working to round up the votes needed to pass a minimum wage increase. A possible plan B of putting the issue to voters through a nonbinding referendum has also been floated. If the majority of voters cast a ballot in favor of a minimum wage increase as part of an advisory referendum, it would not actually change wages in the state. But the results of such a vote might help those in favor of an increase in their lobbying efforts. “We’re going to try to see if we can pass the bill, and if we’re short maybe we need to get public input through a referendum question. That would be an alternative if we don’t have enough votes to pass it,” Cullerton said.
Democratic leaders in the Senate do not plan to move forward with a graduated income tax proposal unless there is indication that plan could pass in the House.
Senate President John Cullerton said that he is supportive of the proposed constitutional amendment. But he said he plans to “wait and see” what the House does on the issue because it likely has less support in that chamber. A spokesperson for Cullerton later clarified that he would consider a vote if there was indication that the House would approve the measure.
Oak Park Democratic Sen. Don Harmon, who sponsors the amendment, reportedly planned to call it for a vote this week. Supporters of the amendment are almost out of time. For Harmon’s Senate Joint Constitutional Amendment Resolution 40 to make it to the ballot under the current legislative schedule, it would need to pass in the Senate tomorrow and in the House on Thursday. The final deadline to approve constitutional amendments is May 4, but as of now, both chambers are scheduled to wrap us session this week on Thursday.) Harmon was not available for comment.
Constitutional amendments require the backing of three-fifths of both chambers. House Speaker Michael Madigan told reporters last week that a progressive income tax amendment was “significantly short” of the support needed to pass in the House. The proposal has no public support from Republicans, so all the Democrats in the House would have to vote for it. Rep. Jack Franks, a Democrat from Marengo, is a cosponsor of a resolution opposing a graduated income tax. There is a graduated income tax amendment in the House, too. But it is not as far along in the process as the Senate amendment after it failed to make it out of the House Revenue and Finance Committee in March.
Cullerton said today that his chamber would also take a wait-and-see approach on extending the current income tax rates. “We have two different budgets that we are contemplating.” Cullerton said one version includes an extension of the current rates. The other would allow the tax increase to begin its sunset in 2015 and would require substantial cuts. He said that since Madigan is still working to get the votes for it in the House, a tax rates extension should start in that chamber. “We will wait and see which of the two budgets we have to work with.” When asked if Democrats could vote in favor of the cuts that would be needed to allow the income tax rates to go down, Cullerton said: “It will be difficult, but we have to pass a budget.”
As lawmakers head into the last month of spring session, which ends at midnight on May 31, Cullerton says he hopes that the support can be mustered to pass an increase in the state’s minimum wage. He said that he thinks there is broad backing among voters for such and increase. “Now, the question is whether or not we have the votes for it here.” Madigan said last week that he is also still working to round up the votes needed to pass a minimum wage increase. A possible plan B of putting the issue to voters through a nonbinding referendum has also been floated. If the majority of voters cast a ballot in favor of a minimum wage increase as part of an advisory referendum, it would not actually change wages in the state. But the results of such a vote might help those in favor of an increase in their lobbying efforts. “We’re going to try to see if we can pass the bill, and if we’re short maybe we need to get public input through a referendum question. That would be an alternative if we don’t have enough votes to pass it,” Cullerton said.
Friday, April 25, 2014
What to watch: budget edition
By Jamey Dunn
Illinois lawmakers have had a two week break from the capitol, but they are scheduled to be back in session on Tuesday. As those who watch the legislature closely know, the action typically doesn’t truly get geared up until this point. But soon enough we will be immersed in the blur of activity that is May at the Statehouse. Here are some things to watch for on the budget front.
The General Assembly has until midnight on May 31 to approve a budget with a standard majority. After that time, any bills passed require a three-fifths majority to have an immediate effective date. Crafting a budget is not going to be easy this year. The temporary income tax approved in 2011 is set to begin its phaseout in the second half of Fiscal Year 2015. For months, heads of state agencies, lobbyists, public university presidents and others have come before budget committees to lay out what they say would be the dire consequences of the cuts that would be needed if the tax rates drop. Mass layoffs, facility closures, threats to public safety, spikes in K-12 class sizes and deep cuts to programs that provide care to seniors or children, have all been cited in the doom and gloom presentations.
Meanwhile, Republicans argue that the state’s budget outlook is being framed as worse than it really is. They say that Democrats are pushing a doomsday version of the budget to lay the ground work for making the temporary income tax permanent. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.” Democrats passed the increase without Republican support in 2011. It seems likely that if the want to extend the rates, they will have to go it alone again. House Speaker Michael Madigan told reporters this week that the votes aren’t there to pass it in his chamber. He said that extending the tax would be a “difficult role call.” “Every person in the legislature is going to be called upon to make a budgetary decision — either a reduction budget or an as-is budget or a slight-increase budget,” Madigan said. “And they’ll be called upon to vote for the money to support the budget that they want.”
Gov. Pat Quinn advocated for extending the current rates in his budget address. He also wants to give homeowners a $500 tax credit that he has dubbed property tax relief. Madigan and Senate President John Cullerton quickly backed the governor’s call for keeping the current rates.
A potential extension of the income tax rates is not the only tax talk legislators are going to have in the coming weeks. The sponsor of a proposal to allow the state to have a graduated income tax has said he plans to call his proposal for a vote next week. Oak Park Democratic Sen. Don Harmon’s Senate Joint Constitutional Amendment 40 would overturn the current provision in the state’s Constitution that requires Illinois to have a flat income tax. The plan would not set the rates for such a tax, but Harmon and other supporters have issued proposed rates framework. If the amendment makes it through both chambers, it would appear before voters on the general election ballot. But that seems unlikely. Harmon may be able to get the amendment through the Senate, but Madigan said that it is “significantly short” of the support needed to pass on the House. Two constitutional amendments — one that would voters from discrimination and another that would strengthen the role of victims in the judicial process — have already been approved by lawmakers and will appear on the November ballot.
Proposed tax changes relating to business in the state could also be on the way. A House committee has been focusing on the tax climate faced by Illinois businesses. The group has been taking testimony on the issue for months, but has yet to publicly present any ideas.
Before the break, a Senate committee approved a plan to change the way that the state funding is doled out to schools. Senate Bill 16 would focus more heavily on the financial need of districts. The proposal would also eliminate the individual block grant that is given to Chicago schools, something Republicans on the committee have supported. The plan would also require more spending transparency at the district level. The committee debate became heated when Republicans accused sponsor Sen. Andy Manar, a Bunker Hill Democrat, of rushing the process. The Illinois State Board of Education is working to produce numbers that would show how the changes in SB 16 would affect each school district. Republicans say that they do not want to vote on the plan until they have that information.
Manar said that lawmakers from both parties agree that the current funding formula does not work. “The idea that we can have a few premier school districts in the state that exceed every expectation ... and have an incredible number that lag behind and call that a win in the state system is not a win in my book.” The ideas behind the legislation came from a report complied by a bipartisan committee that spent more than a year considering the topic. However, Republicans say they were not involved in drafting SB 16. Manar hopes that there will eventually be bipartisan support for the bill. He says he introduced it when he did to spur debate. “We could have waited until the last week of May, negotiated behind closed doors, popped a bill out and then had a vote. That’s not the way to do this,” Manar said.
A gaming expansion always seems to be on the table as the end of spring session nears. But getting it done is a difficult task. Putting together a bill that will make all the powerful groups involved happy, or at least not irate, is a balancing act, so is figuring out how to spread around the potential revenues in a way that will please or at least appease lawmakers. And even when gambling expansions have passed, Quinn has vetoed them. This time around, the governor has made some positive comments about expanding gambling. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn told reporters in early April. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has said in the past that he would not support an expansion unless the revenues went to fund education.
Blue Island Democratic Rep. Robert Rita is sponsoring a bill that would allow for the creation of new casinos, including one in Chicago, and slots at horse racing tracks. However, when compared to past proposals, Rita’s bill would scale back the number of slot machines racetracks could have. Rita has another version that would only create a Chicago casino. The racing industry opposes both. It also seems that Chicago Mayor Rahm Emanuel will not throw his weight behind a Chicago casino plan at this point. Emanuel is echoing past statements from Quinn, saying that he will not focus on a casino until the city’s underfunded pension systems are addressed. The General Assembly already approved changes to the systems for city workers. Emanuel also wants changes to stabilize the systems for teachers, police officers and firefighters. Before they passed changes to the state’s pension systems, Quinn warned lawmakers not to be distracted by the “shiny” object of gaming legislation.
Check back for a guide on bills to watch as legislators make the final push toward the end of spring session.
Illinois lawmakers have had a two week break from the capitol, but they are scheduled to be back in session on Tuesday. As those who watch the legislature closely know, the action typically doesn’t truly get geared up until this point. But soon enough we will be immersed in the blur of activity that is May at the Statehouse. Here are some things to watch for on the budget front.
The General Assembly has until midnight on May 31 to approve a budget with a standard majority. After that time, any bills passed require a three-fifths majority to have an immediate effective date. Crafting a budget is not going to be easy this year. The temporary income tax approved in 2011 is set to begin its phaseout in the second half of Fiscal Year 2015. For months, heads of state agencies, lobbyists, public university presidents and others have come before budget committees to lay out what they say would be the dire consequences of the cuts that would be needed if the tax rates drop. Mass layoffs, facility closures, threats to public safety, spikes in K-12 class sizes and deep cuts to programs that provide care to seniors or children, have all been cited in the doom and gloom presentations.
Meanwhile, Republicans argue that the state’s budget outlook is being framed as worse than it really is. They say that Democrats are pushing a doomsday version of the budget to lay the ground work for making the temporary income tax permanent. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.” Democrats passed the increase without Republican support in 2011. It seems likely that if the want to extend the rates, they will have to go it alone again. House Speaker Michael Madigan told reporters this week that the votes aren’t there to pass it in his chamber. He said that extending the tax would be a “difficult role call.” “Every person in the legislature is going to be called upon to make a budgetary decision — either a reduction budget or an as-is budget or a slight-increase budget,” Madigan said. “And they’ll be called upon to vote for the money to support the budget that they want.”
Gov. Pat Quinn advocated for extending the current rates in his budget address. He also wants to give homeowners a $500 tax credit that he has dubbed property tax relief. Madigan and Senate President John Cullerton quickly backed the governor’s call for keeping the current rates.
A potential extension of the income tax rates is not the only tax talk legislators are going to have in the coming weeks. The sponsor of a proposal to allow the state to have a graduated income tax has said he plans to call his proposal for a vote next week. Oak Park Democratic Sen. Don Harmon’s Senate Joint Constitutional Amendment 40 would overturn the current provision in the state’s Constitution that requires Illinois to have a flat income tax. The plan would not set the rates for such a tax, but Harmon and other supporters have issued proposed rates framework. If the amendment makes it through both chambers, it would appear before voters on the general election ballot. But that seems unlikely. Harmon may be able to get the amendment through the Senate, but Madigan said that it is “significantly short” of the support needed to pass on the House. Two constitutional amendments — one that would voters from discrimination and another that would strengthen the role of victims in the judicial process — have already been approved by lawmakers and will appear on the November ballot.
Proposed tax changes relating to business in the state could also be on the way. A House committee has been focusing on the tax climate faced by Illinois businesses. The group has been taking testimony on the issue for months, but has yet to publicly present any ideas.
Before the break, a Senate committee approved a plan to change the way that the state funding is doled out to schools. Senate Bill 16 would focus more heavily on the financial need of districts. The proposal would also eliminate the individual block grant that is given to Chicago schools, something Republicans on the committee have supported. The plan would also require more spending transparency at the district level. The committee debate became heated when Republicans accused sponsor Sen. Andy Manar, a Bunker Hill Democrat, of rushing the process. The Illinois State Board of Education is working to produce numbers that would show how the changes in SB 16 would affect each school district. Republicans say that they do not want to vote on the plan until they have that information.
Manar said that lawmakers from both parties agree that the current funding formula does not work. “The idea that we can have a few premier school districts in the state that exceed every expectation ... and have an incredible number that lag behind and call that a win in the state system is not a win in my book.” The ideas behind the legislation came from a report complied by a bipartisan committee that spent more than a year considering the topic. However, Republicans say they were not involved in drafting SB 16. Manar hopes that there will eventually be bipartisan support for the bill. He says he introduced it when he did to spur debate. “We could have waited until the last week of May, negotiated behind closed doors, popped a bill out and then had a vote. That’s not the way to do this,” Manar said.
A gaming expansion always seems to be on the table as the end of spring session nears. But getting it done is a difficult task. Putting together a bill that will make all the powerful groups involved happy, or at least not irate, is a balancing act, so is figuring out how to spread around the potential revenues in a way that will please or at least appease lawmakers. And even when gambling expansions have passed, Quinn has vetoed them. This time around, the governor has made some positive comments about expanding gambling. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn told reporters in early April. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has said in the past that he would not support an expansion unless the revenues went to fund education.
Blue Island Democratic Rep. Robert Rita is sponsoring a bill that would allow for the creation of new casinos, including one in Chicago, and slots at horse racing tracks. However, when compared to past proposals, Rita’s bill would scale back the number of slot machines racetracks could have. Rita has another version that would only create a Chicago casino. The racing industry opposes both. It also seems that Chicago Mayor Rahm Emanuel will not throw his weight behind a Chicago casino plan at this point. Emanuel is echoing past statements from Quinn, saying that he will not focus on a casino until the city’s underfunded pension systems are addressed. The General Assembly already approved changes to the systems for city workers. Emanuel also wants changes to stabilize the systems for teachers, police officers and firefighters. Before they passed changes to the state’s pension systems, Quinn warned lawmakers not to be distracted by the “shiny” object of gaming legislation.
Check back for a guide on bills to watch as legislators make the final push toward the end of spring session.
Friday, April 18, 2014
Legislative inspector general calls for laws targeting patronage and clout
By Jamey Dunn
Legislative Inspector General Thomas Homer is leaving the job at the end of June. On his way out, Homer is making the case for ethics reforms in the state.
Homer sent a letter to lawmakers this week urging them to enact stronger ethics laws geared toward preventing patronage hiring practices and giving teeth to the office of legislative inspector general. He cited recent scandals, including students being admitted into the University of Illinois after lawmakers and other influence wielders intervened on their behalf and House Speaker Michael Madigan’s apparent influence on hiring at Metra.
Homer, who is a former state representative and a former judge, said there is nothing wrong with lawmakers advocating for their constituents. But he says that all constituents should get the opportunity, not just campaign donors or the well connected. “When insiders can lay claim to political spoils, people without political connections are denied equal opportunities for government jobs or admission to public universities. Moreover, taxpayers lose when public funds are expended for expensive legal settlements, investigations and attorney’s fees associated with scandals that arise from such activities,” Homer said in a prepared statement.
He called for state agencies and public universities to keep a list of hiring and admissions requests made by lawmakers and other officials. The list would be open to the public. Metra informally kept such a list, but it was only released to the public after a task force seeking to reform the agency reported its existence. Metra released the documents, dubbed the "patronage files" by the task force, this week under a Freedom of Information Act request. The task force called Madigan a “prominent participant” in patronage hiring at Metra over the last 30 years.
At Madigan's request, Homer investigated his involvement and found no violation of the law. The investigation was closed earlier this month. Homer said he could not comment on any specific investigation, but he did have this to say at the time: “Although I can recommend new laws to address what I believe to be inappropriate conduct by legislators, enforcement actions are limited to violations of existing laws and rules.”
Homer also recommended more transparency from his office. He said that the inspector general should be able to release more information from investigations and that the current confidentiality requirements mean that some finding of misconduct from lawmakers never see “the light of day.” He renewed his call for penalties to enforce conflict-of-interest provisions for lawmakers. Currently, the code of conduct for lawmakers is “intended only as guides to legislator conduct, and not as rules meant to be enforced by disciplinary action.” Homer said the lack of penalties makes it difficult for his office to go after misconduct. “The absence of penalty provisions undermines our ability to investigate, expose and prevent abuses,” Homer said.
Legislative Inspector General Thomas Homer is leaving the job at the end of June. On his way out, Homer is making the case for ethics reforms in the state.
Homer sent a letter to lawmakers this week urging them to enact stronger ethics laws geared toward preventing patronage hiring practices and giving teeth to the office of legislative inspector general. He cited recent scandals, including students being admitted into the University of Illinois after lawmakers and other influence wielders intervened on their behalf and House Speaker Michael Madigan’s apparent influence on hiring at Metra.
Homer, who is a former state representative and a former judge, said there is nothing wrong with lawmakers advocating for their constituents. But he says that all constituents should get the opportunity, not just campaign donors or the well connected. “When insiders can lay claim to political spoils, people without political connections are denied equal opportunities for government jobs or admission to public universities. Moreover, taxpayers lose when public funds are expended for expensive legal settlements, investigations and attorney’s fees associated with scandals that arise from such activities,” Homer said in a prepared statement.
He called for state agencies and public universities to keep a list of hiring and admissions requests made by lawmakers and other officials. The list would be open to the public. Metra informally kept such a list, but it was only released to the public after a task force seeking to reform the agency reported its existence. Metra released the documents, dubbed the "patronage files" by the task force, this week under a Freedom of Information Act request. The task force called Madigan a “prominent participant” in patronage hiring at Metra over the last 30 years.
At Madigan's request, Homer investigated his involvement and found no violation of the law. The investigation was closed earlier this month. Homer said he could not comment on any specific investigation, but he did have this to say at the time: “Although I can recommend new laws to address what I believe to be inappropriate conduct by legislators, enforcement actions are limited to violations of existing laws and rules.”
Homer also recommended more transparency from his office. He said that the inspector general should be able to release more information from investigations and that the current confidentiality requirements mean that some finding of misconduct from lawmakers never see “the light of day.” He renewed his call for penalties to enforce conflict-of-interest provisions for lawmakers. Currently, the code of conduct for lawmakers is “intended only as guides to legislator conduct, and not as rules meant to be enforced by disciplinary action.” Homer said the lack of penalties makes it difficult for his office to go after misconduct. “The absence of penalty provisions undermines our ability to investigate, expose and prevent abuses,” Homer said.
Tuesday, April 15, 2014
To spend or to cut?
By Jamey Dunn
A group representing business leaders called for Illinois to spend more on early childhood programs on the same day a conservative think tank presented a plan to cut the state’s budget.
Ready Nation/America’s Edge is a national nonprofit that promotes early childhood education as a way to strengthen the economy. Today, the group released a study which claims that every $1 invested in early childhood programs creates $1.94 in economic growth. The study says that if Illinois provided preschool to all families in need who wanted it, the expansion would create 15,000 new jobs in the sector and 4,000 jobs in other areas of the economy. The proposal would cost the state an estimated $630 million.
Business leaders who support the group’s message say that investment in early childhood education now will produce the workforce they will need in the future. Lisa Savegnago, who is president of Nameplate & Panel Technology in Carol Stream, says that preschool is where children start to learn “creativity, critical thinking and the ability to collaborate in teams,” which are all skills that she is looking for in employees. She said that access to preschool would also help businesses immediately by giving their workers a viable option for childcare. She said that a lack of access to childcare leads to more absenteeism from parents and higher employee turn over rates. “When you take all of this into account, it’s not difficult to see why employers see it as their business to care about early childhood education,” she said.
Sean Noble, who works in the group’s Illinois office, said that the organization is calling for a $25 million increase in early childhood spending for the Fiscal Year 2015 budget. The main funding source for early childhood programs avoided a reduction during the current fiscal year but suffered deep cuts over the previous four fiscal years. Noble says that $25 million would help get such programs back on track. The number is in line with budget recommendations from the Illinois State Board of Education and Gov. Pat Quinn. Noble says the group is advocating that the state continue to increase funding in the coming fiscal years. While the group agrees on putting more money into early childhood education, Noble said there is no consensus on how to pay for it. The Illinois members of Ready Nation/America’s Edge are not backing any particular revenue source. Quinn called for an extension of the temporary income tax increase to fund all levels of education.
Members of the group said that they recognize that the state is in a tight fiscal situation, but they say the data indicates that cutting early childhood education is counterintuitive at a time when Illinois is in need of economic growth. “It’s staggering to me to see this report and how we can benefit from early childhood education,” said Collinsville Mayor John Miller.
You can read the group’s report here. Also, Illinois Issues Managing Editor Maureen Foertsch McKinney wrote a column for the current issue of the magazine about the long-term costs of cutting early childhood programs.
Meanwhile, the Illinois Policy Institute released a plan today to cut the state’s budget and allow the temporary income tax increase to sunset as scheduled in the current law.
That tax is set to begin stepping down in 2015. The group is calling for several sweeping changes including:
The institute’s more natural political allies, Republican lawmakers, may balk at some of the ideas presented here, too. Suburban lawmakers with property-tax wealthy school districts will likely not support the education funding proposals. How to handle the funding for schools that have local property tax caps and tax increment financing districts was also a hot-button issue as a bipartisan group of senators evaluated ways to revamp the state’s current school funding formula.
The Policy Institute seems undaunted by the tough political road many of their suggestions would face. Ted Dabrowski, vice president of policy at the institute, said in a written statement accompanying the report: “Tax relief is in the immediate future and Illinois needs bold leadership that will make sure it happens. Sunsetting the tax hike is more than a promise — it’s the law. And it can be achieved.”
You can read the full report here.
A group representing business leaders called for Illinois to spend more on early childhood programs on the same day a conservative think tank presented a plan to cut the state’s budget.
Ready Nation/America’s Edge is a national nonprofit that promotes early childhood education as a way to strengthen the economy. Today, the group released a study which claims that every $1 invested in early childhood programs creates $1.94 in economic growth. The study says that if Illinois provided preschool to all families in need who wanted it, the expansion would create 15,000 new jobs in the sector and 4,000 jobs in other areas of the economy. The proposal would cost the state an estimated $630 million.
Business leaders who support the group’s message say that investment in early childhood education now will produce the workforce they will need in the future. Lisa Savegnago, who is president of Nameplate & Panel Technology in Carol Stream, says that preschool is where children start to learn “creativity, critical thinking and the ability to collaborate in teams,” which are all skills that she is looking for in employees. She said that access to preschool would also help businesses immediately by giving their workers a viable option for childcare. She said that a lack of access to childcare leads to more absenteeism from parents and higher employee turn over rates. “When you take all of this into account, it’s not difficult to see why employers see it as their business to care about early childhood education,” she said.
Sean Noble, who works in the group’s Illinois office, said that the organization is calling for a $25 million increase in early childhood spending for the Fiscal Year 2015 budget. The main funding source for early childhood programs avoided a reduction during the current fiscal year but suffered deep cuts over the previous four fiscal years. Noble says that $25 million would help get such programs back on track. The number is in line with budget recommendations from the Illinois State Board of Education and Gov. Pat Quinn. Noble says the group is advocating that the state continue to increase funding in the coming fiscal years. While the group agrees on putting more money into early childhood education, Noble said there is no consensus on how to pay for it. The Illinois members of Ready Nation/America’s Edge are not backing any particular revenue source. Quinn called for an extension of the temporary income tax increase to fund all levels of education.
Members of the group said that they recognize that the state is in a tight fiscal situation, but they say the data indicates that cutting early childhood education is counterintuitive at a time when Illinois is in need of economic growth. “It’s staggering to me to see this report and how we can benefit from early childhood education,” said Collinsville Mayor John Miller.
You can read the group’s report here. Also, Illinois Issues Managing Editor Maureen Foertsch McKinney wrote a column for the current issue of the magazine about the long-term costs of cutting early childhood programs.
Meanwhile, the Illinois Policy Institute released a plan today to cut the state’s budget and allow the temporary income tax increase to sunset as scheduled in the current law.
That tax is set to begin stepping down in 2015. The group is calling for several sweeping changes including:
- Eliminating additional education funding for school districts that have property tax caps or spend property tax on local development through tax increment financing districts.
- Eliminating additional funding for poor students in districts that have affluent local tax bases Eliminating revenue sharing with local governments
- Reducing the state’s payroll by 10 percent and ending automatic cost of living pay increases for state workers
- Shifting the future pension benefits of public employees into a 401K-style program
- Means testing for pension cost of living adjustments (COLAs)
- Giving Medicaid patients a subsidy to purchase insurance in the private market
The institute’s more natural political allies, Republican lawmakers, may balk at some of the ideas presented here, too. Suburban lawmakers with property-tax wealthy school districts will likely not support the education funding proposals. How to handle the funding for schools that have local property tax caps and tax increment financing districts was also a hot-button issue as a bipartisan group of senators evaluated ways to revamp the state’s current school funding formula.
The Policy Institute seems undaunted by the tough political road many of their suggestions would face. Ted Dabrowski, vice president of policy at the institute, said in a written statement accompanying the report: “Tax relief is in the immediate future and Illinois needs bold leadership that will make sure it happens. Sunsetting the tax hike is more than a promise — it’s the law. And it can be achieved.”
You can read the full report here.
Monday, April 14, 2014
Proposed ban on plastic microbeads could be model for other states
By Caitlin Rydinksy,
A bill approved last week by the Illinois Senate that would eliminate plastic microbeads found in hygiene products could become a national model for states looking to phase out the material.
Microbeads are small plastic particles, made of polyethylene or polypropylene, found in items such as body and facial scrubs and some toothpastes. After use, they are washed down the drain and released into waterways. The beads are so small that they make it through the filtration process at water treatment plants. They cause harm when fish and other aquatic life confuse them with food because of the resemblance in color and size to the microbes that they eat. Because they are made of plastic, which is not biodegradable, the particles do not dissolve once they are released into the environment. They float through the water or sink to the bottom once they have absorbed surrounding pollutants.
Researchers have found them in waterways, oceans and, overwhelmingly, the Great Lakes. The 5 Gyres Institute, a group that studies the global effect of plastic pollutants, found beads within the lakes. Early testing, which looked at Lake Superior, Lake Huron and Lake Erie, shows Lake Erie had more than two times the amount sampled within some areas of the ocean. The results of the study have spurred manufacturers to act. “Most of the major manufacturers that were presented with the research of the high abundance of these particles in the Great Lakes surface water responded by voluntarily phasing out plastic particles in their products and looking for alternative formulations,” said Olga Lyandres, research manager of the Alliance for the Great Lakes, a Chicago-based environmental organization. The alliance worked with The 5 Gyres Institute on the lakes study.
“Plastic microbeads are used in personal care cleansing products because of their exfoliating properties and excellent safety profile,” said the Personal Care Products Council in a prepared statement. “However, our industry shares a common interest with other stakeholders in protecting the environment, and we take questions regarding the presence of plastic microbeads in our waterways very seriously. While we believe plastic microbeads in personal care cleansing products represent a very small contributor to the overall plastic found in the aquatic environment, our industry is demonstrating leadership on this issue by publicly announcing plans to phase out the use of these ingredients.”
The study found remnants of other plastics including pieces of plastic bags. But the amount of microbeads and the fact that they are easily identifiable allowed researchers to point to a specific cause of pollution and request that companies transition to more environmentally friendly substitutes. Although many high profile companies, such as Johnson & Johnson and Unilever, have already started phasing out production of the beads, The Alliance for the Great Lakes is lobbying for Senate Bill 2727 to hold the companies to that promise.
States surrounding the Great Lakes and some coastal states, such as New York and California, have also considered bans. Those who negotiated SB 2727 say it could serve as an example for those states because it gives the industry years to find a substitute for the beads and allows retailers to continue selling their current inventory. Scrubbing products that do not contain microbeads have various other abrasive materials, such as silica, ground nutshells, rice, sugar or salt. SB 2727 calls for a ban on products containing the beads to begin in 2017 and a ban on the sale of such products by 2018. Mark Denzler with the Illinois Manufacturers Association said a phase out takes time. “You have to change the line production and get additional products for what you’re going to use,” he says. “So, really the debates are set on timelines when manufacturers have to stop producing it, and retailers have to stop selling it. That negotiation was sort of easy to accomplish.”
Chicago Democratic Sen. Heather Steans, who sponsored the bill, said that cooperation from the manufacturers has helped the measure gain broad support. The measure passed with no opposition in the Senate. “We phased it in to make it so the companies have time to handle it appropriately, but they really worked with us and we got to an agreement. So I think we probably pass it [in the House] as it got out, unanimously, here,” she said.
Results from the testing of Lake Michigan and Lake Ontario waters will be released later this month, but those close to the research predict the findings will be similar to the other lakes. While the industry, environmentalists and lawmakers are working together to phase out the beads, those already in the waters cannot be removed because of their small size. “Well, once they are in the water, they are there to stay,” said Lyandres. “They are very difficult to capture once they are released.”
A bill approved last week by the Illinois Senate that would eliminate plastic microbeads found in hygiene products could become a national model for states looking to phase out the material.
Microbeads are small plastic particles, made of polyethylene or polypropylene, found in items such as body and facial scrubs and some toothpastes. After use, they are washed down the drain and released into waterways. The beads are so small that they make it through the filtration process at water treatment plants. They cause harm when fish and other aquatic life confuse them with food because of the resemblance in color and size to the microbes that they eat. Because they are made of plastic, which is not biodegradable, the particles do not dissolve once they are released into the environment. They float through the water or sink to the bottom once they have absorbed surrounding pollutants.
Researchers have found them in waterways, oceans and, overwhelmingly, the Great Lakes. The 5 Gyres Institute, a group that studies the global effect of plastic pollutants, found beads within the lakes. Early testing, which looked at Lake Superior, Lake Huron and Lake Erie, shows Lake Erie had more than two times the amount sampled within some areas of the ocean. The results of the study have spurred manufacturers to act. “Most of the major manufacturers that were presented with the research of the high abundance of these particles in the Great Lakes surface water responded by voluntarily phasing out plastic particles in their products and looking for alternative formulations,” said Olga Lyandres, research manager of the Alliance for the Great Lakes, a Chicago-based environmental organization. The alliance worked with The 5 Gyres Institute on the lakes study.
“Plastic microbeads are used in personal care cleansing products because of their exfoliating properties and excellent safety profile,” said the Personal Care Products Council in a prepared statement. “However, our industry shares a common interest with other stakeholders in protecting the environment, and we take questions regarding the presence of plastic microbeads in our waterways very seriously. While we believe plastic microbeads in personal care cleansing products represent a very small contributor to the overall plastic found in the aquatic environment, our industry is demonstrating leadership on this issue by publicly announcing plans to phase out the use of these ingredients.”
The study found remnants of other plastics including pieces of plastic bags. But the amount of microbeads and the fact that they are easily identifiable allowed researchers to point to a specific cause of pollution and request that companies transition to more environmentally friendly substitutes. Although many high profile companies, such as Johnson & Johnson and Unilever, have already started phasing out production of the beads, The Alliance for the Great Lakes is lobbying for Senate Bill 2727 to hold the companies to that promise.
States surrounding the Great Lakes and some coastal states, such as New York and California, have also considered bans. Those who negotiated SB 2727 say it could serve as an example for those states because it gives the industry years to find a substitute for the beads and allows retailers to continue selling their current inventory. Scrubbing products that do not contain microbeads have various other abrasive materials, such as silica, ground nutshells, rice, sugar or salt. SB 2727 calls for a ban on products containing the beads to begin in 2017 and a ban on the sale of such products by 2018. Mark Denzler with the Illinois Manufacturers Association said a phase out takes time. “You have to change the line production and get additional products for what you’re going to use,” he says. “So, really the debates are set on timelines when manufacturers have to stop producing it, and retailers have to stop selling it. That negotiation was sort of easy to accomplish.”
Chicago Democratic Sen. Heather Steans, who sponsored the bill, said that cooperation from the manufacturers has helped the measure gain broad support. The measure passed with no opposition in the Senate. “We phased it in to make it so the companies have time to handle it appropriately, but they really worked with us and we got to an agreement. So I think we probably pass it [in the House] as it got out, unanimously, here,” she said.
Results from the testing of Lake Michigan and Lake Ontario waters will be released later this month, but those close to the research predict the findings will be similar to the other lakes. While the industry, environmentalists and lawmakers are working together to phase out the beads, those already in the waters cannot be removed because of their small size. “Well, once they are in the water, they are there to stay,” said Lyandres. “They are very difficult to capture once they are released.”
Thursday, April 10, 2014
Two proposed constitutional amendments make it to the ballot
By Jamey Dunn
When voters take their ballots in November, the will be faced with two proposed constitutional amendments. One is intended to protect victims’ rights, while the other would bar discrimination against voters.
Efforts to put a victims’ rights provision onto the state’s Constitution have been underway for years. Different versions of the measure have been approved by both chambers in the past, but failed to make it to the ballot. Sponsor Sen. Heather Steans, a Chicago Democrat, said the amendment approved today made it all the way through the General Assembly because supporters struck the proper balance between the rights of defendants, the rights of victims and the power of prosecutors. “It’s been a long haul for the victims in getting to this point. It’s nice that it’s finally coming to fruition,” said Steans.
The amendment will give victims legal standing in the judicial process. They would have the right to be notified about certain steps in the process, including if their personal information has been requested by the defense. The amendment would also require that judges consider the impact on victim’s and their families, along with all other factors, when making decisions about granting bail and the release of a defendant.
The other amendment approved by the Senate today would prohibit denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Chicago Democratic Sen. Kwame Raoul, who sponsored the measure, said that he went to Florida in 2008 and 2012 to volunteer during the presidential elections. “I watched 80 [-year-old] and 90-year-old people, largely of African American and Hispanic descent, wait nine hours to simply cast their ballot to exercise their right to vote. While in other parts of Florida, people were able to vote right away,” he said. Raoul said his mother, who was 82 at the time, had to wait five hours in line to vote in 2012. He said that his proposal would help protect Illinois voters from facing such a situation.
While the amendment does specifically ban requiring voters to present identification to vote, Raoul said that it is his intent to prohibit such laws if they are geared toward discrimination. “If you cast a yes vote for this, you’re casting a yes vote to discourage voter i.d. laws.” Lebanon Republican Sen. Kyle McCarter said that voter identification laws could be enacted in a way that would prevent fraud without being discriminatory. “We should have a voter i.d. that does not discriminate, that provides the i.d. for them them and brings fairness to all the voters,” says McCarter, who abstained from voting on the proposal. Both amendments received broad bipartisan support in both chambers but will still need approval from voters to become a part of the Constitution.
When voters take their ballots in November, the will be faced with two proposed constitutional amendments. One is intended to protect victims’ rights, while the other would bar discrimination against voters.
Efforts to put a victims’ rights provision onto the state’s Constitution have been underway for years. Different versions of the measure have been approved by both chambers in the past, but failed to make it to the ballot. Sponsor Sen. Heather Steans, a Chicago Democrat, said the amendment approved today made it all the way through the General Assembly because supporters struck the proper balance between the rights of defendants, the rights of victims and the power of prosecutors. “It’s been a long haul for the victims in getting to this point. It’s nice that it’s finally coming to fruition,” said Steans.
The amendment will give victims legal standing in the judicial process. They would have the right to be notified about certain steps in the process, including if their personal information has been requested by the defense. The amendment would also require that judges consider the impact on victim’s and their families, along with all other factors, when making decisions about granting bail and the release of a defendant.
The other amendment approved by the Senate today would prohibit denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Chicago Democratic Sen. Kwame Raoul, who sponsored the measure, said that he went to Florida in 2008 and 2012 to volunteer during the presidential elections. “I watched 80 [-year-old] and 90-year-old people, largely of African American and Hispanic descent, wait nine hours to simply cast their ballot to exercise their right to vote. While in other parts of Florida, people were able to vote right away,” he said. Raoul said his mother, who was 82 at the time, had to wait five hours in line to vote in 2012. He said that his proposal would help protect Illinois voters from facing such a situation.
While the amendment does specifically ban requiring voters to present identification to vote, Raoul said that it is his intent to prohibit such laws if they are geared toward discrimination. “If you cast a yes vote for this, you’re casting a yes vote to discourage voter i.d. laws.” Lebanon Republican Sen. Kyle McCarter said that voter identification laws could be enacted in a way that would prevent fraud without being discriminatory. “We should have a voter i.d. that does not discriminate, that provides the i.d. for them them and brings fairness to all the voters,” says McCarter, who abstained from voting on the proposal. Both amendments received broad bipartisan support in both chambers but will still need approval from voters to become a part of the Constitution.
Wednesday, April 09, 2014
Quinn bashes Rauner for Cellini statement, stays mum on Blagojevich
By Jamey Dunn
Gov. Pat Quinn took a swipe at Republican candidate for governor Bruce Rauner today after a former Republican powerbroker, who was convicted on a corruption charge, made positive statements about him.
William Cellini and Rauner attended a Republican fundraiser in Springfield yesterday. Cellini told reporters that it was the first time he had seen Rauner speak, and called him “impressive.” When asked if he planned to vote for Rauner, he said, “I've been a Republican all of my life, and he's the Republican candidate.” Cellini was convicted in 2011 of attempting to extort a Hollywood producer into giving former Democratic Gov. Rod Blagojevich a $1.5 million campaign contribution. Cellini served less than a year in federal prison.
“I think he’s now a convicted felon, and I certainty don’t want to have anything to do with him personally, and I think anybody who aspires to this office should stay clear of him and should make that crystal clear to the people of Illinois,” Quinn said an unrelated news conference today.
A statement from Rauner’s campaign said that he “obviously renounces” any endorsement from Cellini.
Quinn, who served as lieutenant governor under Blagojevich, was asked today about his own ties to the impeached former governor, who is currently doing time in a federal prison after being convicted on corruption charges. “I’m not going to get into any politics,” Quinn responded.
Gov. Pat Quinn took a swipe at Republican candidate for governor Bruce Rauner today after a former Republican powerbroker, who was convicted on a corruption charge, made positive statements about him.
William Cellini and Rauner attended a Republican fundraiser in Springfield yesterday. Cellini told reporters that it was the first time he had seen Rauner speak, and called him “impressive.” When asked if he planned to vote for Rauner, he said, “I've been a Republican all of my life, and he's the Republican candidate.” Cellini was convicted in 2011 of attempting to extort a Hollywood producer into giving former Democratic Gov. Rod Blagojevich a $1.5 million campaign contribution. Cellini served less than a year in federal prison.
“I think he’s now a convicted felon, and I certainty don’t want to have anything to do with him personally, and I think anybody who aspires to this office should stay clear of him and should make that crystal clear to the people of Illinois,” Quinn said an unrelated news conference today.
A statement from Rauner’s campaign said that he “obviously renounces” any endorsement from Cellini.
Quinn, who served as lieutenant governor under Blagojevich, was asked today about his own ties to the impeached former governor, who is currently doing time in a federal prison after being convicted on corruption charges. “I’m not going to get into any politics,” Quinn responded.
Quinn looks to lawmakers for new capital plan
By Jamey Dunn
Gov. Pat Quinn said today that he plans ask legislators to provide ideas for a new state capital construction plan.
Quinn said that he intends to ask the four legislative leaders to put together a special committee that would try to tackle the capital issue. He said he envisions a group of about 10 people. He said that the committee would operate much like the conference committee, which helped to break a stalemate on pension reform last year. The current five-year capital plan, which was approved in 2009, is nearing an end. The plan is funded through revenues generated by video poker machines in bars, truck stops and restaurants throughout the state and various increased fees and taxes. A new plan would likely require new revenues. “It is important to realize that the funding from the five-year [capital] plan that we adopted is, through this year, very strong, but in the future we’ve got to enhance it,” Quinn said in Springfield today.
Quinn would not point to any potential funding sources today. “We’ll engage with them very quickly,” he said of the committee. “There’s a lot of ideas. I think we need to explore each and every one.” But he said that he would not back any proposal to increase the tax on gasoline. “I think that’s a depleting resource. I think that using the gas tax to fund our future would not be a wise idea. I’m not for that.” At this point, the governor is not pushing for a bill to be approved by the end of the spring session. A member of his staff said lawmakers would likely be working on the issue throughout the year. However, the governor does want something in place to avoid a gap between the current capital bill and the next.
Quinn’s comments came at a news conference to unveil the Illinois Department of Transportation’s annual six-year plan. The $8.6 billion construction plan is focused on maintenance of the state’s existing infrastructure. IDOT Secretary Ann Schneider said that almost three-fourths of the spending would go toward maintenance. “This is a fiscally responsible program. We are not putting something out that the Department of Transportation and the state of Illinois cannot afford,” she said. The plan will be funded with almost $7 billion in federal money and $1.16 billion in existing state funds. The rest of the money will come from local sources and the last of the funds allocated for roads and bridges in the existing capital plan, dubbed Illinois Jobs Now! by Quinn. Go to IDOT’s website for a partial list of the projects covered by the six-year plan.
Gov. Pat Quinn said today that he plans ask legislators to provide ideas for a new state capital construction plan.
Quinn said that he intends to ask the four legislative leaders to put together a special committee that would try to tackle the capital issue. He said he envisions a group of about 10 people. He said that the committee would operate much like the conference committee, which helped to break a stalemate on pension reform last year. The current five-year capital plan, which was approved in 2009, is nearing an end. The plan is funded through revenues generated by video poker machines in bars, truck stops and restaurants throughout the state and various increased fees and taxes. A new plan would likely require new revenues. “It is important to realize that the funding from the five-year [capital] plan that we adopted is, through this year, very strong, but in the future we’ve got to enhance it,” Quinn said in Springfield today.
Quinn would not point to any potential funding sources today. “We’ll engage with them very quickly,” he said of the committee. “There’s a lot of ideas. I think we need to explore each and every one.” But he said that he would not back any proposal to increase the tax on gasoline. “I think that’s a depleting resource. I think that using the gas tax to fund our future would not be a wise idea. I’m not for that.” At this point, the governor is not pushing for a bill to be approved by the end of the spring session. A member of his staff said lawmakers would likely be working on the issue throughout the year. However, the governor does want something in place to avoid a gap between the current capital bill and the next.
Quinn’s comments came at a news conference to unveil the Illinois Department of Transportation’s annual six-year plan. The $8.6 billion construction plan is focused on maintenance of the state’s existing infrastructure. IDOT Secretary Ann Schneider said that almost three-fourths of the spending would go toward maintenance. “This is a fiscally responsible program. We are not putting something out that the Department of Transportation and the state of Illinois cannot afford,” she said. The plan will be funded with almost $7 billion in federal money and $1.16 billion in existing state funds. The rest of the money will come from local sources and the last of the funds allocated for roads and bridges in the existing capital plan, dubbed Illinois Jobs Now! by Quinn. Go to IDOT’s website for a partial list of the projects covered by the six-year plan.
Tuesday, April 08, 2014
Chicago pension changes pass in both chambers
By Jamey Dunn
The General Assembly today approved legislation to address the funding shortfall in pensions systems for Chicago city workers.
Mayor Rahm Emanuel’s proposal to stabilize the two systems fell flat last week, but sailed through the House and Senate today. The key factor that helped spur action was the removal of a provision that would have authorized city council members to approve a property tax increase. The new version of Senate Bill 1922, which is sponsored by House Speaker Michael Madigan, allows the city to pay for the plan with property tax money or any other available revenue.
Gov. Pat Quinn is running for re-election on a budget plan that would extend the current income tax rates instead of allowing them to sunset. The potential upside to his plan for some Illinoisans is that is would also offer a $500 annual credit for homeowners that Quinn has billed as property tax relief. Quinn made negative comments about the highly unpopular tax at most public appearances lately. Needless to say the governor opposed Emanuel’s push for a property tax increase blessed by state lawmakers. He panned it yesterday by calling it a “lousy tax” and saying that the proposal was “a sketch” not a clear plan.
But Emanuel described the proposal to reporters in Chicago as: “an honest compromise between leaders of organized labor and the city to secure the pensions; secure it in a way that city can afford it and make sure that to the 61,000 people who have come to relay on it, that it will be there.” Under the measure, workers would be asked to contribute more toward their retirement and would see reductions to their cost of living increases. Retirees would not get increases in 2017, 2019 and 2025. However, retirees with pension payouts of less than $22,000 annually would receive a minimum of 1 percent increase each year and would still get an increase during the skipped years. “If you do nothing, these plans are loosing money everyday. They’re going to go belly up within a decade,” Emanuel says.
As the legislation made its way through the process today, Quinn was unwilling to say whether he supported the bill. “I have to see the final bill. I’ll take a look at it. That’s what I do with all bills.” He did tell reporters that he was encouraged by the removal of the property tax components. “I think they got the message yesterday that [the] provision in the bill was not the way to go, and I’m glad they recognized that.” However, Quinn conceded that the city would have to find money somehow to cover the cost associated with the plan. “If they have any kind of pension reform, they need to have revenue to pay for it, but there’s many different creative ways to do that.”
Republicans in the House backed the plan, saying that it has to be done. “If we do nothing—we already have the roadmap for that. It’s called the city of Detroit,” said Elmhurst Republican Dennis Reboletti. “We can’t let the city of Chicago fail. And if the aldermen there chose to do nothing or choose to raise taxes, that’s their business.” The systems are governed by state law, so the General Assembly must sign off on changes. However, the revenue component of the plan can be handled at the local level. House Minority Leader Jim Durkin echoed that sentiment. “Doing nothing is not an option,” he said during floor debate. “We can’t ignore the fact that the city of Chicago is the economic engine of this state.”
Senate Republicans did not see the issue the same way. They called on the Democrats in their chamber to put the breaks on the legislation, which they say moved too quickly. “It will be here in two weeks, and we’re happy to partner with you, but it must be a true partnership,” said Senate Minority Leader Christine Radogno. Senate Republicans say they want to know what the plan is to deal with the city’s other underfunded pensions systems for teachers, firefighters and police officers. “What’s the plan? The place is on fire up there,” Palatine Republican Sen. Matt Murphy said. Murphy said that members of his party are worried that they city might look to the state’s coffers to bail out those systems.
Chicago Democratic Sen. Kwame Raoul, who sponsored the bill in the Senate, said that it is unrealistic to wait around for an omnibus bill that addresses all the systems because different bargaining units are working out their own negotiations with the city. But he said that if the city can work out a deal with labor, like his bill, lawmakers should approve it. “It’s irresponsible for us not to act when...labor and employer, labor and the city, has come to the table [on this bill],” he said. Raoul said that 31 out of the 34 bargaining representing those affected by the plan have offered no opposition to the bill.
Speaker Madigan had a busy day on the House floor today as the chamber also approved a constitutional amendment that he is sponsoring. House Joint Constitutional Amendment Resolution 52 prohibits denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Madigan said the amendment sends the message, “that in Illinois we believe that every legal voter should be treated equally and have the ability to vote for the candidate of their choice.”
Durkin also backed the speaker’s amendment, but others on his side of the aisle panned it as unnecessary. “This is a constitutional amendment looking for a problem,” said Rep. David Reis, a Republican from Willow Hill. Reis is a sponsor of legislation that would require voters to present identification at the polls. Madigan describe such requirements as “voter suppression” during the debate of his amendment.
If the Senate approves the proposal, which seems likely, it will appear before voters on the November ballot. While Madigan has not shared any ulterior motive for the amendment, some see the proposal as geared toward brining out the Democratic base for the general election.
The General Assembly today approved legislation to address the funding shortfall in pensions systems for Chicago city workers.
Mayor Rahm Emanuel’s proposal to stabilize the two systems fell flat last week, but sailed through the House and Senate today. The key factor that helped spur action was the removal of a provision that would have authorized city council members to approve a property tax increase. The new version of Senate Bill 1922, which is sponsored by House Speaker Michael Madigan, allows the city to pay for the plan with property tax money or any other available revenue.
Gov. Pat Quinn is running for re-election on a budget plan that would extend the current income tax rates instead of allowing them to sunset. The potential upside to his plan for some Illinoisans is that is would also offer a $500 annual credit for homeowners that Quinn has billed as property tax relief. Quinn made negative comments about the highly unpopular tax at most public appearances lately. Needless to say the governor opposed Emanuel’s push for a property tax increase blessed by state lawmakers. He panned it yesterday by calling it a “lousy tax” and saying that the proposal was “a sketch” not a clear plan.
But Emanuel described the proposal to reporters in Chicago as: “an honest compromise between leaders of organized labor and the city to secure the pensions; secure it in a way that city can afford it and make sure that to the 61,000 people who have come to relay on it, that it will be there.” Under the measure, workers would be asked to contribute more toward their retirement and would see reductions to their cost of living increases. Retirees would not get increases in 2017, 2019 and 2025. However, retirees with pension payouts of less than $22,000 annually would receive a minimum of 1 percent increase each year and would still get an increase during the skipped years. “If you do nothing, these plans are loosing money everyday. They’re going to go belly up within a decade,” Emanuel says.
As the legislation made its way through the process today, Quinn was unwilling to say whether he supported the bill. “I have to see the final bill. I’ll take a look at it. That’s what I do with all bills.” He did tell reporters that he was encouraged by the removal of the property tax components. “I think they got the message yesterday that [the] provision in the bill was not the way to go, and I’m glad they recognized that.” However, Quinn conceded that the city would have to find money somehow to cover the cost associated with the plan. “If they have any kind of pension reform, they need to have revenue to pay for it, but there’s many different creative ways to do that.”
Republicans in the House backed the plan, saying that it has to be done. “If we do nothing—we already have the roadmap for that. It’s called the city of Detroit,” said Elmhurst Republican Dennis Reboletti. “We can’t let the city of Chicago fail. And if the aldermen there chose to do nothing or choose to raise taxes, that’s their business.” The systems are governed by state law, so the General Assembly must sign off on changes. However, the revenue component of the plan can be handled at the local level. House Minority Leader Jim Durkin echoed that sentiment. “Doing nothing is not an option,” he said during floor debate. “We can’t ignore the fact that the city of Chicago is the economic engine of this state.”
Senate Republicans did not see the issue the same way. They called on the Democrats in their chamber to put the breaks on the legislation, which they say moved too quickly. “It will be here in two weeks, and we’re happy to partner with you, but it must be a true partnership,” said Senate Minority Leader Christine Radogno. Senate Republicans say they want to know what the plan is to deal with the city’s other underfunded pensions systems for teachers, firefighters and police officers. “What’s the plan? The place is on fire up there,” Palatine Republican Sen. Matt Murphy said. Murphy said that members of his party are worried that they city might look to the state’s coffers to bail out those systems.
Chicago Democratic Sen. Kwame Raoul, who sponsored the bill in the Senate, said that it is unrealistic to wait around for an omnibus bill that addresses all the systems because different bargaining units are working out their own negotiations with the city. But he said that if the city can work out a deal with labor, like his bill, lawmakers should approve it. “It’s irresponsible for us not to act when...labor and employer, labor and the city, has come to the table [on this bill],” he said. Raoul said that 31 out of the 34 bargaining representing those affected by the plan have offered no opposition to the bill.
Speaker Madigan had a busy day on the House floor today as the chamber also approved a constitutional amendment that he is sponsoring. House Joint Constitutional Amendment Resolution 52 prohibits denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Madigan said the amendment sends the message, “that in Illinois we believe that every legal voter should be treated equally and have the ability to vote for the candidate of their choice.”
Durkin also backed the speaker’s amendment, but others on his side of the aisle panned it as unnecessary. “This is a constitutional amendment looking for a problem,” said Rep. David Reis, a Republican from Willow Hill. Reis is a sponsor of legislation that would require voters to present identification at the polls. Madigan describe such requirements as “voter suppression” during the debate of his amendment.
If the Senate approves the proposal, which seems likely, it will appear before voters on the November ballot. While Madigan has not shared any ulterior motive for the amendment, some see the proposal as geared toward brining out the Democratic base for the general election.
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