Journal Star blindly supports more money for D150

Peoria Public Schools logoThe Journal Star Editorial Board thinks District 150 deserves more support from the City. They think the proposal on tonight’s agenda to “share inflationary revenue growth from those properties in the [Eagle View] TIF that don’t participate in the redevelopment program” is too stingy.

They start off by saying, “The Peoria City Council should have no trouble approving an agreement with District 150 tonight that, for the first time locally, would allow the city’s largest school system to share in the proceeds from a tax increment financing district before its term is over.” First time, eh? Apparently the JSEB is unaware of or has forgotten about the $236,000 the school district receives annually from the Southtown TIF.

“That said, it’s little more than a toe in the water of the city-school cooperation that is so desperately needed if Peoria is to be an attractive place for young families,” they continue. By “cooperation,” they mean “giving money to District 150.” Never mind that the city already gives hundreds of thousands of dollars to the school system every year. Never mind that District 150 is its own taxing body — it takes the lion’s share of our property taxes every year. Never mind that, after figuring in all sources of revenue, the City of Peoria’s budget is only about $10 million more than District 150’s to start with (~$160 million vs. $150 million, respectively).

That’s not enough for the JSEB, or District 150.

If anyone at City Hall wonders why Peoria’s overall population is at best flat, and why its status in Illinois is declining even with all the new subdivisions sprouting on its northwest side in a different school district, Peoria’s core public school system is a big reason, followed closely by violent crime.

They’ve got that right. But naturally the JSEB blames the school district’s failure on the City and their TIF districts. Has the Journal Star Editorial Board ever considered the possibility that District 150 might be in the mess it is because of their own mismanagement? That maybe paying for four superintendents to do the job of one is a wee bit of a waste? That spending almost a million dollars on property they can’t use might be contributing a tad to their woes? That low testing scores and their inability to make adequate yearly progress is negatively affecting their funding more than the City of Peoria’s tax increment financing districts?

Yet some local voices are still urging the city to sever any relationship with District 150. It’s mystifying, because all involved would only be punishing themselves.

Heh. We’re being punished either way; why not save the money?

I’ve said it before and I’ll say it again, I’m all for true cooperation — but cooperation works both ways. The School Board (and evidently the JSEB, too) seems to believe that a “give and take” relationship with the city means that the city gives and the school board takes. It doesn’t work that way. I don’t think it’s asking too much for the school board to work with the city on, say, siting of an East Bluff school. Or, say, focusing on improving their test scores so they stop driving people out of the city.

More money is not the answer for District 150. Better management is. And sadly, the City has no control over that.

Ameren touts benefits of rate relief

Ameren is pleased with the new rate relief package that was unveiled yesterday. A press release from Ameren today explains why:

Gary L. Rainwater, chairman, president and chief executive officer of Ameren Corporation, noted: “This comprehensive rate relief package provides significant benefits to our Illinois electric customers, while benefiting our shareholders by providing legislative stability. It also avoids a costly, lengthy and undesirable court battle to overturn a rate freeze and power generation tax.”

That “legislative stability” is a provision of the relief package that states, “The General Assembly leadership agrees not to pass legislation that would freeze or reduce electric rates, or impose a tax, special assessment or fee on electricity generators through
Aug. 1, 2011.” So the charges of collusion are dropped and the threat of an imminent rate freeze is dropped. Ameren’s happy, and Ameren’s shareholders are happy.

How about Ameren’s customers? I think they’re going to be happy, too. Here are a couple of pie charts that Ameren released today to show the effect this rate relief will have on customers’ electric bills:

Ameren Chart Before Rate Relief

Ameren Chart After Rate Relief

Of course these graphs only depict 2007 rate increases, since they’re phasing in the rate increases over three years (January 2007 through December 2009). To make up for the higher rates we’ve been paying since January, Ameren will be mailing us all rebate checks. Ameren has provided this graphic to explain how much we may be getting:

Typical Residential Credits

All this will be funded by the electricity-generating companies — the ones who made out like bandits in the reverse auction deal:

The $1-billion statewide rate relief package will be funded by contributions of $150 million from Ameren-affiliated companies and $800 million from Exelon-affiliated companies, with the remainder coming from other electric generating companies in the state. Ameren Corporation expects earnings per share will be reduced by approximately 26, 11, 7 and 1 cents per share in 2007, 2008, 2009 and 2010, respectively, as a result of the rate relief package.

You can read the full press release from Ameren here. The Citizens Utility Board is cautiously optimistic about this deal, and as far as I know they’re not receiving any money from the power companies this time around. So far, this appears to be a good deal for everyone. Only time will tell if it really is or not.

No smoking

No Smoking by lawGov. Blagojevich signed the Smoke-Free Illinois Act yesterday. This legislation protects health-conscious non-smokers who lack the common sense to avoid smoking establishments. You gotta love the logic: non-smokers choose of their own free will to patronize a restaurant that allows smoking, then complain about the smoke. Then these victims by choice get a law passed forcing restaurant owners to disallow smoking in their own private business.

Or, they could have just gone to a non-smoking restaurant and the problem would have been solved, leaving property rights intact. Being a non-smoker myself, I very rarely had to put up with cigarette smoke because most of the time I would just go to restaurants that didn’t allow smoking. Silly me.

Rate relief likely to pass

Ameren LogoThe Springfield State Journal-Register reports that although no votes have been taken yet, the rate relief package unveiled yesterday is likely to pass. Indeed, everyone seems to be happy with the plan, even Ameren. So it appears to be a win-win-win.

As I understand it, there’s a short-term and long-term component. In the short-term, rate increases will be phased in. That means we’ll be getting a refund for electric rate increases over the first seven months of this year and then lower, but gradually increasing bills from now until 2010, when we’ll be back up to paying market rates again.

As for the long-term:

The main component of the long-term reform involves creation of the Illinois Power Authority, which will oversee state-regulated utilities’ purchase of electricity in the future. Once the IPA is launched, the reverse auction that was used last year to set the present electric rates will be discontinued.

The reverse auction improperly led to “windfall profits” for power generators, including those sharing a parent company with ComEd and Ameren, said Michael Madigan, who touted the benefits of the IPA at every stop on the fly-around.

You may recall that Attorney General Lisa Madigan filed a lawsuit against the energy companies involved in the reverse auction accusing them of collusion to inflate energy prices. She’s planning to drop that suit if this plan passes.

I’ll have more analysis of this later after I have a chance to look at some information I received from Ameren today.