Budget Inaction
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While Democrats play budget games,
Rauner Administration initiates steps to deal with Madigan-Cullerton deficit. House Speaker Michael Madigan, Senate President John Cullerton and
their caucuses passed a budget for the 2016 fiscal year beginning July 1 that
is nearly $4 billion in the hole.
This latest broken Madigan-Cullerton budget comes on the heels of a Fiscal Year 2015 Madigan-Cullerton budget that was more than $1.5 billion out-of-balance when it was passed. Governor Rauner and House Republicans worked diligently to eliminate the Democrats’ $1.5 billion budget deficit without raising taxes, and the State is now projected to end the year with a balanced budget.
This latest broken Madigan-Cullerton budget comes on the heels of a Fiscal Year 2015 Madigan-Cullerton budget that was more than $1.5 billion out-of-balance when it was passed. Governor Rauner and House Republicans worked diligently to eliminate the Democrats’ $1.5 billion budget deficit without raising taxes, and the State is now projected to end the year with a balanced budget.
With the upcoming Madigan-Cullerton budget deficit more than double that of last year, a mid-year solution is not a possibility this time. The Rauner Administration must immediately begin taking steps to manage state spending. While the Administration is committed to managing the Madigan-Cullerton budget responsibly, because their budget includes no reforms, the options available to the Administration are limited.
“Speaker Madigan, President Cullerton and the politicians they control refuse to act responsibly and reform state government,” Rauner Spokesman Lance Trover said. “It is time they come to the table with Governor Rauner to turnaround Illinois.”
Please visit The Caucus Blog to review the steps the Rauner Administration
is initiating in order to begin balancing the phony Madigan-Cullerton budget.
Many additional steps will be announced as they are finalized.
After
the majority Democrats passed budget bills for FY16 that are almost $4 billion
out of balance, Speaker Madigan and Senate President Cullerton gaveled their
respective chambers into recess and left town.
By parliamentary maneuvers, called “motions to reconsider,” the Democrats
stopped their flawed budget bills from being sent to Governor Rauner for final
action. Insiders described this move as
forestalling the vetoes that Governor Bruce Rauner would otherwise have issued.
House
Republican Leader Jim Durkin immediately labeled the Democrats’ budget bills a fake budget that points to the need for real
reform.
FY16 Budget Pressure Points
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House Republicans look for path
forward. With House and Senate Democrats refusing to
pass an honest, workable budget, the Illinois budget process has temporarily
reached a point of impasse. Future
deadlines will place ever-increasing pressure, throughout the summer, upon
high-ranking policymakers to enter into serious negotiations.
The State of Illinois is currently finishing up Fiscal Year 2015,
which will end on June 30, 2015. The new
fiscal year begins on the following day, July 1, 2015. After the end of the month, if any money is
left over within any State line item, a two-month “lapse period” within the new
fiscal year is created within which remaining FY15 funds can be spent. However, there will be very little
lapse-period monies available for use this summer. The State’s first payroll deadline within the
new fiscal year will come on July 15, 2015, so there will be intensifying
pressure to reach a budget deal prior to this date.
An additional deadline, if required, will come in mid-August. General State Aid (GSA) payments from the
State to local school districts are due on August 10 and August 20, 2015. Few, if any, schools within Illinois will
open for fall classes without the cash flow represented by these GSA
payments.
Some items within the State budget are protected by what is called
“continuing appropriation” authority.
Areas of spending or money transfer that are mandated by federal law or
by existing contracts and bond indentures are areas where money will continue
to flow even in the absence of a year-to-year budget. Examples include bonded debt service,
certified pension payments, the Teachers’ Retirement Insurance Program, the
College Insurance Program, income tax payments and sales tax payments shared
with local governments, the TANF welfare program, the AABD aid to the aged
program, and stipends paid to parents and guardians of
adopted/process-of-adoption/guardianship children by the Department of Children
and Family Services.
At the same time, the City of Chicago faces a separate set of
urgent budget pressures. Current law
requires the City to make a $634 million “balloon” payment to the Chicago
teachers’ pension fund no later than June 30, 2015. Furthermore, additional “balloon” payments to
the pension funds that support retired Chicago police officers and firefighters
will be due later in 2015.
Chicago – Pensions
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Democrats attempt to kick Chicago’s
pension troubles down the road. Once again, Chicago asked the Illinois
General Assembly – and, indirectly, asked the taxpayers of Chicago and
neighboring communities – for pension help. With junk-bond interest rates topping 5.8% and a deadline looming
to make a mandatory $549 million payment to underfunded Chicago
police/firefighter pension plans, the City advanced SB 777 to stretch out its payments to these
funds. The mandatory 2015-16 police/fire
payment would be reduced by the measure from $549 million to $330 million.
House Republicans opposed SB 777, pointing out features in common
with previous legislation from majority Democrats that kicked Chicago’s pension
troubles down the road. One key feature
of SB 777 was a provision that pre-commits future cash flow from a hypothetical
future Chicago mega-casino to these police/firefighter pension payments. This placed the City of Chicago in an unusual
situation, as it is expected to soon be asking, in presumptive good faith, for
casino rights even though they will already have relinquished much of their
financial incentive to get a positive response to their request.
In addition, SB 777 could not be plausibly presented as a measure
that “solves” Chicago’s pension crisis.
The Chicago Public Schools (CPS) are required by a parallel law to make
a $634 million contribution to the teachers’ pension fund that must be
transferred no later than June 30.
SB 777 was approved by the House on Saturday, May 30, on a vote of 65-45-2. The measure
was returned to the Senate for a concurrence vote, but was then held up by a
“Motion to Reconsider” filed by the office of Democratic Senate President
Cullerton.
Concealed Carry
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Concealed carry trailer bill approved
by bipartisan majority in both houses. SB 836 responds to concerns raised by
Illinois firearms owners and law enforcement.
It creates a protocol to govern law enforcement or public safety stops
of citizens, such as traffic stops, when the citizen is armed with a concealed
firearm. The bill authorizes a citizen
to move a concealable firearm from a concealed location on his or her person to
the trunk of a car or truck, and vice versa.
The measure clarifies that obeying the laws contained within the
Concealed Carry Act shall protect a citizen from being cited or arrested for
unlawful use of a weapon.
SB 836 was supported by many lawmakers of both political
parties. State Rep. Ed Sullivan, a chief
co-sponsor, was the lead negotiator of SB 836 for the House Republicans. Approval by both houses cleared the pathway
to send this measure to the Governor for his signature.
Criminal Law – Cannabis
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SB 1747 – Omnibus criminal law bill;
cannabis. Yet more partisan shenanigans held up
approval by the General Assembly of an omnibus criminal law update bill for
spring 2015. SB 1747 had been extensively negotiated by
representative from both sides, with participation from prosecutors and law
enforcement officials.
Unfortunately, the product of this participative process was not
brought before the Illinois House for a vote.
Instead, language was added to the measure to seal certain court records
related to cannabis offenses from public disclosure. The additional language, which can be found
on page 27 of House Amendment #5, created serious concerns for
employers. In many cases, employers are
bound by their contractual relationships with other businesses, and by the
terms of their workers’ compensation liability insurance policies, to look
closely at the status of their employees and contractors on issues like these. SB 1747 was re-referred to the House Rules
Committee.
Equal Pay
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House Republicans support equal pay
for women in the workplace. As the regularly scheduled spring legislative
session came to a close, House Republicans backed legislation in the Illinois
House in support of equal pay for equal work.
State
Rep. Terri Bryant Bryant joined her colleagues in support of an amended version
of HB 3619. Bryant voted Yes to concur with
changes made to the bill in the Illinois Senate. Bryant says the changes
lowered the fines for first time offenses to reduce the burden on the smallest
of small businesses.
“Often,
the process involved in drafting good legislation takes time and compromise,”
Bryant said. “The original fines for businesses with 3 or less employees were
far too high. When we work together
to reach compromise in Springfield, we get better results.”
Bryant
had argued that high first time fines proposed in the original bill were likely
to drive more businesses, jobs, and population from the state. That type of
outward migration is something Bryant says Illinois cannot afford.
“The
business climate in Illinois is already very difficult and laden with
regulation. Illinois can’t afford to lose any more jobs. I want to commend the
sponsor of this legislation for being open to making a pro-business change that
allowed us all to vote to support equal pay for equal work,” Bryant said.”
In
addition to HB 3619, House Republicans supported an Equal Pay resolution
sponsored by State Rep. David McSweeney.
HR 442 states that the House strongly
supports workplace equity and equality under the law covering pay and benefits
for employees as established by the Equal Pay Act of 1963.
General Assembly – Action in both
chambers in spring 2015
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495 bills approved by both houses
prior to May 31, 2015 deadline. 269 of the bills were House bills and
226 were Senate bills. This accounts for
only a small fraction – 7.8 percent – of the 6,375 bills
(4,226 House, 2,149 Senate) filed by House and Senate members so far in 2015
The Sunday, May 31 deadline significantly governs actions taken by
the General Assembly. Under Article IV,
section 10 of the Constitution of Illinois, a bill must be acted upon before
this date by both houses if it is to take immediate effect by simple
majority. On June 1 and following, a
bill – to be effective immediately – must win an extraordinary three-fifths
majority in both houses. This gives a
potential space at the table to members of the Illinois House and Senate
minority party and to lawmakers from less-populated regions of Illinois.
This 495-bill total does not include 28 bills that were passed and
then immediately held up by motions filed to reconsider the vote by which the
bill was passed. Bills on the order of
Motion to Reconsider have, by a parliamentary maneuver, been locked in the desk
drawer of the respective party leaders of both chambers, the House Speaker and
the Senate President. They cannot be
sent to the Governor until the party leaders release them. In 2015, bills in this category include
measures to implement the Democrats’ unbalanced FY16 budget and a Chicago
pension “fix.”
The Democrat-controlled Illinois General Assembly was less
productive in 2015 than its predecessor had been in spring 2014. In the 2014 spring session, 511 bills were
passed by both houses of the General Assembly – 268 House bills and 243 Senate
bills.
Happy Hours
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General Assembly takes action to
legalize happy hours in Illinois. Drink specials timed for certain hours
of the business day and aimed at improving customer flow for taverns have been
banned in Illinois since 1989. In spring
2015, the General Assembly enacted a bill to re-legalize happy hours for limited periods of time in a
standard business day. Under SB 398, a licensed tavern will be allowed to
offer drink discounts for no more than 15 hours a week and no more than four
hours a day; furthermore, none of the hours can be after 10:00 p.m. The happy hours must be publicly advertised
not less than one week in advance. The House vote on this bill, held on Thursday, May
28, was 82-31-2.
The 1980s-era ban on “happy hours” was enacted in a time when
authorities were fighting to reduce DUI violations and to enforce an increase
in the legal drinking age from 18 to 21.
With an additional generation of experience, public-safety experts have
turned to new ways to reduce unwanted behavior.
SB 398 includes a new mandate to impose training requirements upon
employees and contractors of establishments licensed to pour alcohol. It is expected that this training will
include online videos intended to help waitstaff learn more about signs that a customer
has reached his or her legal limit of alcohol consumption.
The General Assembly also passed a separate bill in spring 2015, SB 67, to ban the sale within Illinois of a
newly-invented substance, dry powdered alcohol. This substance is in the process of being
outlawed in Nevada, Ohio, Washington, and other states. Both SB 67 and SB 398 have passed both houses
of the General Assembly and are currently waiting for final action by the
Governor.
Police Officers – Bodycams
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Compromise police bill passed by both
houses. The measure includes provisions
intended to sharply increase the number of body cameras (“bodycams”) worn by
Illinois police officers as part of their uniforms. SB 1304 responds to concerns raised by
Illinoisans and to requests made by police officers and management. House Republicans, especially Representatives
Cabello and Anthony, were part of the negotiating team that worked out agreed language for
this bipartisan bill.
Police officers and management were interested in language that
would allow police not to wear bodycams in specific situations where the
devices would be inappropriate or unnecessarily dangerous. Increased training will be provided through
the state-funded Police Training Board to inform current and future police
officers on the appropriate use of
bodycams and videos. As agreed by
both houses, SB 1304 will require that a $5 supplement be added to all fines
imposed upon convicted defendants in criminal and traffic cases. Monies from this supplemental fine will be
granted to police forces seeking assistance in maximizing bodycam accessibility
to the members of their force.
A House vote of 107-3-4 signaled strong support
for the agreement from both sides of the aisle.
Passage of SB 1304 by both Houses cleared the way for the measure to be
sent to Gov. Rauner for his signature.
Workers’ Compensation
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Language discussed in Illinois House;
real action elusive. Amendments to HB 1287, a Democratic bill, were debated in
an extra session of the Illinois House held on Thursday, June 4. The bill was passed by partisan majority by a
House vote of 63-39-4, sending this measure to
the Senate for further action.
Workers’ compensation had been one of the most partisan issues of
the 2015 spring session, and hopes had been raised that a debate of this issue
could lead to common ground between the two political parties in
Springfield. Unfortunately, the new
language presented by the House Democratic leadership this week did not
materially change their previous positions, and did not include the priorities
publicly set by House Republicans and Governor Bruce Rauner. House Republicans voted unanimously against
the partisan amendments added to HB 1287 by the Democrats.
Insiders noted that the decision to hold a debate on workers’ compensation issues, even though the debate itself was
sterile and did not generate compromises or agreed legislation, was a sign that
there could be increasing pressure on the Democratic leadership to achieve
demonstrable progress on this issue in Springfield. Illinois’ workers’ compensation costs are now
the seventh-highest in the nation, much higher than comparable costs in
neighboring states, and more than 300,000 manufacturing jobs have left Illinois
in recent years. Experts on economic
growth and job creation have pointed to workers’ compensation as a reason for
the slow creation of new jobs and disappointing recovery from the 2008-10
economic downturn.
9-1-1
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Illinois to consolidate its 9-1-1
system. Up until now, 9-1-1 systems have been
operated by local public safety offices in cooperation with the telecom
providers that offer services in each area. SB 96, enacted before the end of the May
session by both houses of the General Assembly, will create a statewide 9-1-1
system that will fall under the authority of the Illinois
State Police. A single
fee level of 87 cents per line per month will be imposed on both wireline and
wireless phones throughout Illinois other than Chicago, replacing the disparate
9-1-1 phone fees charged today. The local calling centers and emergency
system boards will still operate on the local level, but SB 96 mandates a
consolidation plan that will result in the closure of some of the smaller call
centers.
In a
side agreement to the bill, older telecommunications firms such as AT & T
were required to accept a continuation of the mandate that they provide
“franchise” landline phone service to customers in designated service
areas. Advocates for senior citizens played a major role in protecting
the status of Illinois landline phone service. The Illinois House vote on Friday, May 29 to pass SB 96
was 94-15-2.
Week in Review
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