Tuesday, July 21, 2009

Education cuts "rough" this year, worse next year

By Bethany Jaeger
Grant-funded education initiatives ranging from after-school programs to gifted education were “zeroed out” in a $7.2 billion budget adopted today by the Illinois State Board of Education.

The budget relies on about $362 million in cuts. It would have been worse without about $2 billion in federal stimulus funds, which won’t be available next fiscal year.

“This is a rough year. Next year could be a catastrophic year,” said Jesse Ruiz, chairman of the Illinois State Board of Education, which met in Springfield today for an emergency meeting to enact the fiscal year 2010 budget.


Next fiscal year, the board anticipates having to cut an additional $1 billion “just to tread water” and maintain this year’s funding levels, even with 25 percent to 100 percent reductions for education-related grants, said state superintendent Christopher Koch.

The cuts are the result of a $26 billion state operating budget enacted last week. The General Assembly relied on $3.5 billion in short-term borrowing. While much of that money is earmarked to helping prevent more severe reductions in grants to community-based services, none of it so far has been dedicated to education-related grants.

For instance, agricultural education was cut in half. Early childhood education programs were reduced by a third. Bilingual education lost funding by a quarter. And $3 million for homeless education programs was eliminated, but the board said federal stimulus dollars will cover some costs this fiscal year. As we wrote about in Illinois Issues magazine this spring, the number of homeless youth is increasing while funding has failed to keep pace for years.

When deciding how to spread the pain, the board chose to fully fund general state aid and so-called mandated categoricals, which cover special education and transportation costs. The minimum amount of state aid provided for each student increased by $160, bringing the so-called foundation level up to $6,119.

Board member Joyce Karon said fully funding general state aid and mandated categoricals accomplishes two goals: It spreads the money around to reach as many students as possible and grants the most flexibility to local school districts.

The board also avoided cutting programs or line items that would leverage significant amounts of federal matching funds. If the board decreased funding for certain programs, it would fail to satisfy federal requirements to maintain past funding levels, added Linda Mitchell, the board’s chief financial officer.

“The budget passed by the General Assembly gave the board a lot of discretion, and that means gave the board a lot of difficult choices — a lot of ‘Sophie’s Choices’ of which children and which programs,” Mitchell said.

Ruiz added that the General Assembly again is mandating that districts provide such services as bilingual education but it is not approving the necessary funding. “We are just in essence putting the burden on local districts to somehow find the means and putting more stress on them,” he said. “And we can’t, as regulators in that regard, let them off the hook. Yet, we’re kind of passing the buck.”

On multiple occasions he reminded more than two-dozen advocates in attendance that the new budget has a political context: Incumbents and candidates will be campaigning throughout the state as they prepare for the 2010 elections. He said this year’s budget process, while disheartening, should energize advocates to pressure politicians to explain why they rejected revenue increases.

“Before you give them a check and a dime, challenge them and ask them how they’d invest in education in the future,” he said. “And I don’t want platitudes. I want specific plans. And make sure how they’re going to balance it all.”

He continued: “We need to become very, very, very discriminating consumers of our public officials. And I for one would raise the benchmark in my level of scrutiny in that regard. Keep your dollars in your pocket. Give to a school before you give it to a candidate.”

One advocate was Linda Drust, Williamson County Early Childhood Cooperative executive director. She said the 33 percent reduction to early childhood block grants would mean that her organization, which serves five school districts in southern Illinois, would go from serving 600 at-risk children to 400. She said she did not have alternative funding sources.

One wild card is whether Gov. Pat Quinn will use some of his discretion in a limited amount of money left over to fund such grants as early childhood education. The short-term borrowing scheme approved as part of the fiscal year 2010 budget deal allotted $2.3 billion to community-based human services and left $1.3 billion for him to spend as he chooses.

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GOPUSA ILLINOIS Daily Clips - July 21, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,610 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the July 21, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Monday, July 20, 2009

Jack Franks Meets with the Mayor

Yesterday, I wrote about McHenry County Democrat State Rep. Jack Frank's Friday.

Franks rolled out evidence of spending big bucks in his campaign disclosure. Look at the contributions' side of Franks' D-2. No contribution limits yet, remember.

The display of ready cash coming in big chunks should make second tier Democrats contemplating a statewide race (like Julie Hamos) give new respect to the resources Franks can bring to the table on behalf of his political ambitions.

Even first tier candidates like State Comptroller Dan Hynes probably does not have the family money to match Franks'.

What's Franks interested in?

My guesses are here.

He told the Northwest Herald he was interested in running for governor and, I guess, Franks could play the role that Mike Howlett took when Chicago ward bosses threw everything into defeating self-styled reform Democrat Dan Walker in 1976.

Franks has never portrayed himself as an organization guy, even as he has taken money from every union he could tap, including teachers' unions.

Not only did Franks display his financial resources Friday, but he was on WTTW's Chicago Tonight again.

And that wasn't all that happened.

The McHenry County Democrat was granted a face-to-face with Chicago Mayor Richard Daley.

My guess is that in their heart of hearts that they are pretty close in political views.

The political arena in Chicago has, of course, resulted in Daley moving left.

Franks has shown similar leftward movement on abortion and gun control during the past year. But on abortion, at least, he backed off.

It will be interesting to see how Franks will modify his stands as he moves from conservative McHenry County to the liberal electorate that rules statewide Democratic primary elections.

No one would suggest those who control the Democratic Party statewide are not composed of tax eaters.

I can't wait to see how they will react to Franks' current opposition to an income tax hike.

Published first on McHenry County Blog, where there is information about Jack Franks you won't find anywhere else.

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GOPUSA ILLINOIS Daily Clips - July 20, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,578 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the July 20, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Sunday, July 19, 2009

GOPUSA ILLINOIS Daily Clips - July 19, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,590 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the Juky 19, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Saturday, July 18, 2009

GOPUSA ILLINOIS Daily Clips - July 18, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,551 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the July 18, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Friday, July 17, 2009

GOPUSA ILLINOIS Daily Clips - July 17, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,491 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the July 17, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Thursday, July 16, 2009

FutureGen on track to a 2010 decision

By Bethany Jaeger and Jamey Dunn
The east-central Illinois’ site for the first-of-its-kind, cleaner-burning power plant meets all environmental standards needed for FutureGen to continue, according to a recent decision by the federal government.

The U.S. Department on Energy issued a formal opinion called a record of decision, one regulatory step needed for the public-private partnership to move forward. Any small step forward is a big relief for a group of investors, as well as state and local officials, who have worked since at least 2004 to secure support of the technology called fully integrated carbon capture and sequestration. Simply, it would capture carbon dioxide pollutants and trap them underground. The goal is to capture 90 percent of the carbon emissions by the third year of a five-year test period, according to the record of decision.

The entire project and design of the Mattoon plant stalled in January 2008, when former President George Bush’s administration pulled support because of concerns about growing costs and increasing risks to taxpayers. A federal report by the Government Accountability Office, however, later indicated accounting errors overestimated the cost by $500 million.

The Mattoon site and the project were revived last month when U.S. Energy Secretary Steven Chu of President Barack Obama’s administration committed to working toward constructing FutureGen in Mattoon and contributing $1.073 billion, $1 billion of which is expected to come from the federal stimulus package. Including the cost of materials, recent estimates have said the total price tag could exceed $2 billion.

A group of investors and energy industry stakeholders called FutureGen Alliance would have to foot at least $400 million to $600 million of the remaining costs. The goal was for at least 20 partners to contribute a total of $20 million throughout the next four to six years.

But two partners recently dropped out of the alliance, reducing membership to nine. American Electric Power Co. and Southern Co. cited concerns about costs. Steve Higginbottom, spokesman for Southern Co., added that the company pulled out to focus on other technology research being conducted by the government and industry partners. The uncertainty of FutureGen also contributed, he said, but added: “We’re supportive of the FutureGen project. We think it has the potential to lead to some developments.”

The state’s involvement has included the Illinois Department of Commerce and Economic Opportunity, which now will contribute to more behind-the-scenes work, said Marcelyn Love, agency spokeswoman. That will include helping to prepare the final design and the site layout. “But we will continue to do whatever is needed to ensure that FutureGen can become a reality,” she said.


Illinois' recent enactment of a capital construction program includes $17 million, which Love said is intended to help pay for site development or construction.

The next stages in the project will start at the end of this month and continue through early 2010. The U.S. Energy Department listed the following steps:
  • Restart preliminary design activities.
  • Complete a site-specific preliminary design and update the cost estimate.
  • Expand the alliance sponsorship program.
  • Develop a complete funding plan.
  • Consider adding “subsurface characterization.”
A decision about whether to discontinue the project is expected by early 2010.

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Matteson Moves in Wrong Direction

The SouthtownStar reports that the wife of Matteson Mayor Andre Ashmore has been promoted and given a raise by the village of Matteson.

The mayor claims that "We have nothing to hide," but this promotion of a spouse is still an embarrassment for Matteson and the South Suburbs. It signals that politics as usual is still alive and casts a pall over Ashmore's leadership. This single act demonstrates that the corrosive system of patronage and reserving jobs for family members has spread from Chicago, infecting the Southland and poisoning our politics.

Mayor Ashmore hints that his wife is qualified "and maintained he had nothing to do with his wife landing a new job." Even if this was true, it's hardly a credible claim.

So why even try to make it?

Giving a job to your spouse is never going to look legitimate. Especially not in Illinois. Toni Ashmore will forever be tainted as the woman whose husband is the mayor. And she will have to live with the whispers that, if not for her husband, she wouldn't have gotten the job. Regardless of how talented or deserving she is.

Ethics are not the standards we have in good times, but the standards we hold unto when we are tested. Both Toni and Andre have been tested here, and they have come up short. Both have exhibited a lack of sound political judgment. Both have settled for the decaying political culture that has driven Illinois to the depths where we currently reside.

The Ashmore example stands in stark contrast to the example provided by President Barack Obama. Obama's message of change is being translated into moving the country forward. Ashmore's message of nepotism harkens back to the old corrupt system of patronage that has basically ruined Illinois. And it tells us that the connection between Rod Blagojevich and the Ashmores is stronger than we realized.

This is no small matter. Trying to bring good, honest government to the South Suburbs will undoubtedly be difficult. And we have to keep our eyes upon the fresh young faces that emerge, looking for evidence that this is their intention. It appears that Mayor Ashmore is looking more to Mayor Daley as a model than to Barack Obama. And that's a shame...

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GOPUSA ILLINOIS Daily Clips - July 16, 2009

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitalfax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 48,436 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the July 8, 2009 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com. Thanks

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Wednesday, July 15, 2009

Budget deal reached but only builds a bridge

By Bethany Jaeger, with Jamey Dunn and Hilary Russell contributing
The state now has an operating budget in place, although the legislature likely will have to address a remaining $4 billion to $5 billion deficit later this year or early next year. Gov. Pat Quinn enacted the 12-month spending plan soon after it won approval by the General Assembly Wednesday night.

Numerous legislators described the package as less than ideal, the least bad option or a bridge to buy time until lawmakers agree on alternative revenue sources and long-term reforms. Instead of generating new revenue through a state income tax, the spending plan relies on various forms of borrowing and debt instruments.


Several lawmakers echoed the sentiments of House Majority Leader Barbara Flynn Currie: “We have run out of options,” just as state workers and agencies have “run out of time.”

The governor signed the spending portion of the bill (Senate Bill 1216) late Wednesday night, which will allow the comptroller’s office to issue hard copies of paychecks to 5,000 to 6,000 state employees Thursday, said Carol Knowles, spokeswoman for the comptroller.

Human service agencies are in a less certain position. While community-based providers received some assurance of state support, the governor will have wide discretion when deciding how to divvy out limited remaining funds and where to further reduce spending.

The budget deal primarily relies on borrowing to pay public employee pensions, borrowing from state agencies and essentially borrowing from Medicaid providers that don’t receive federal stimulus funds because the payment cycle is likely to lengthen.

Sen. Donne Trotter, a Chicago Democrat and budget negotiator for his caucus, said, “It’s not the best deal, but it will keep us going until we can really sit down and get a grasp on how we’re going to change doing business here in the state of Illinois.”

Even Rep. Bill Black, a Danville Republican, who berated the recent budget-making process as primarily behind closed doors and inadequate for essential state services, ended up voting for the bill that he disliked. “Because there is no alternative,” he said afterward.

Spending = SB 1216
Grant-funded services will receive an average of 86 percent of the funding level originally sought by the governor, while much of state government operations will receive about the same level as last fiscal year.

The Illinois Department of Transportation will get some extra money to hire engineers who will handle the increased workload generated by the federal stimulus package and state’s $31 billion capital construction program recently enacted.

Cost-cutting measures (included in the BIMP) = SB 1912
There will be significant cuts, but the legislature left it up to the governor to decide when and where. Quinn also will have authority to take “administrative charge backs,” which basically are loans from state agencies that the state has to repay.

Members of the executive branch and of the General Assembly will have to take 12 unpaid days off, which amounts to about 4.5 percent of legislators’ annual salaries and stipends, according to Rep. Frank Mautino, assistant majority leader from Spring Valley. The governor also said he hopes to negotiate furlough days with unionized employees to avert the need for layoffs as large as 2,600 workers.

The governor now has authority to ask agencies to reserve a percentage of their funding in an attempt to save an additional $1.1 billion (on top of the $1 billion he’s already supposed to cut). He would have a rare range of flexibility in deciding how to cut that $1.1 billion.

“There is a check on it, but it’s a much greater latitude than anyone’s ever had, the first year of [former Gov. Rod] Blagojevich included,” Mautino said. If Quinn if were to lower a service provider’s payment rate or raise co-payment amounts for people enrolled in state-sponsored programs, then he would have to go first get approval from the legislative panel called the Joint Committee on Administrative Rules.

The governor won’t need that committee’s approval to tell state agencies to reserve a percentage of their funds to, say, hold the line on travel costs. To close a prison or other state facility, he would still have to go through a public review process of another legislative panel, the Commission on Government Forecasting and Accountability.

Elementary and secondary schools will receive about $161 more in general state aid per student than they received last year, but that’s less than the governor originally planned. Mautino said the hope among some lawmakers is that he’ll put more of his discretionary spending money into grants for early childhood education and other education-related programs.

Borrowing = SB 1292
One of the main revenue sources that prevented the need for deeper cuts is a short-term borrowing scheme that increased to about $3.5 billion. Of that, $2.2 billion will go to community-based human services. The governor will have wide discretion in spending the remaining $1.2 billion.

Rep. Patricia Bellock, a Hinsdale Republican, said such groups as substance abuse providers fear that their funding will remain cut because their services are not matched by federal Medicaid reimbursements. Currie said during floor debate that the governor would have discretion to shift money to those services.

The borrowing scheme received mixed reactions. “This is one of the only cards we have left on the table,” said Rep. Kevin McCarthy, an Orland Park Democrat.

“We are not acting prudently,” said Rep. Jack Franks, a Marengo Democrat. “This will not balance the budget. Let’s not kid ourselves. This is only smoke and mirrors.”

Rep. Dave Winters, a Shirland Republican, added that borrowing this year would automatically create a budget hole next year because it’s a one-time revenue source that will have to be repaid by about $750 million a year. Sen. Bill Brady, a Republican from Bloomington, said that the budget sets the state up to fall off of a “financial cliff” next year because it relies on short-term borrowing and stimulus funds that will not be available in the future.

What’s not in the budget?
What the budget deal will not do is address the state’s multibillion-dollar backlog of unpaid bills. In fact, the spending plan might even create longer payment delays for providers that don’t receive extra federal stimulus funds for Medicaid reimbursements.

The state will maintain payment cycles for providers such as hospitals that capture extra federal stimulus funds. That does not include pharmacists or some grant-funded human services, however.

Sen. Jeff Schoenberg, an Evanston Democrat, said the longer-term structural deficit will continue to plague state-funded services. “One thing that we’ll know with absolute certainty is that all of the hospitals, nursing homes and community-based health and human service providers will continue to experience severe cash flow problems,” particularly as the economic downturn makes it harder for them to access lines of credit, said Schoenberg, who said he’s working on two backup proposals if the borrowing schemes don’t pan out as hoped.

What’s next?
The legislature adjourned without a date certain to return, although the annual fall “veto session” is scheduled to start October 14.

When the legislature comes back, it’ll have an opportunity to reassess whether the revenue outlook improved from the economic stimulus and state construction programs. And when crafting next year’s budget, they won’t have to tackle as large of a pension payment ($4 billion topped a ramped-up payment schedule this year).

But Senate President John Cullerton said the state won’t be able to borrow its way through another year and that a tax increase is “inevitable.” “Now you see why we need the tax increase, if for no other reason than to pay [bills] instead of borrowing.”

Chicago Democrat Sen. James Meeks, longtime advocate for an income tax increase similar to House Bill 174 that the Senate approved in May, was absent from the floor during the vote. Meeks has campaigned for the income tax increase because he said it would provide property tax relief and create more equitable funding for education. Earlier in the day, Meeks said: “You either borrow or you vote for revenue. So since I voted for revenue, I’m not voting for borrowing.”


Budget bills
FYI: These are the five bills the governor signed Wednesday night (the links might take a little bit longer to work):
  • SB 1216 = spending bill
  • SB 1292 = bonding bill ($3.5 billion)
  • SB 1912 = budget implementation bill (with cost-cutting measures)
  • SB 1433 = fund sweeps
  • HB 2206 = designates state and federal funds (link not available, yet)

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Whitney for Governor in 2010

It appears that Rich Whitney, the Green Party's candidate for Illinois Governor in 2006, is preparing to announce a run for Illinois Governor in 2010. Whitney garnered more than 10% of the total vote in the previous election, making the Green Party one of only three statewide legally established political parties in the state.

Whitney recently posted the following message on his website, suggesting that the news will come as early as this weekend:

In recent months, many people have asked me whether I intend to run for governor again, usually adding, 'you should have won last time,' and encouraging me to run in 2010. I thank all of you for your kind and supportive comments.

It is painfully clear that Illinois needs a genuine change of leadership in Springfield, from a party that represents the people. Please watch this space on July 15-16, 2009, as a major announcement regarding my future plans will appear at that time. Meanwhile, I encourage supporters to also visit the website of the Illinois Green Party, at www.ilgp.org, and please JOIN our Party, and, if possible, come to our upcoming State Party meeting in Champaign, July 17-19.

Doug Finke, at the State Journal-Register, previously reported that Whitney will make the announcement today, on Wednesday, July 15.

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