Tag Archives: State of Illinois

Illinois’ budget woes catch the attention of the New York Times

Illinois is so bad that even the New York Times is taking notice.

For the last few years, California stood more or less unchallenged as a symbol of the fiscal collapse of states during the recession. Now Illinois has shouldered to the fore, as its dysfunctional political class refuses to pay the state’s bills and refuses to take the painful steps — cuts and tax increases — to close a deficit of at least $12 billion, equal to nearly half the state’s budget.

Then there is the spectacularly mismanaged pension system, which is at least 50 percent underfunded and, analysts warn, could push Illinois into insolvency if the economy fails to pick up.

When the state doesn’t pay its bills, it hurts a lot of other government agencies — for instance, school districts. At a recent District 150 school board meeting, Comptroller/Treasurer Pam Schau reported that the state owes District 150 $9,125,000, as of June 23. That’ll put a dent in your operating budget.

Despite this state of affairs, our representatives are continuing to spend money on non-essentials, such as giving tax breaks to millionaire developers.

State eliminates time limits for campaign signs

Roof-top signs, “floppy-man” signs, and temporary banners were just some of the signs discussed at Tuesday’s Sign Review Committee meeting. But one thing the committee can do little about is political signs.

A new Illinois law set to take effect January 1, 2011, limits the city’s home rule authority to limit how long political signs can be displayed. HB3785 “[p]rovides that a municipality may place reasonable restrictions on the size of outdoor political campaign signs on residential property,” but also “[p]rovides that no municipality may prohibit the display of outdoor political campaign signs on residential property during any period of time.” The bill was passed unanimously by the Illinois House and Senate and signed by the Governor on June 3. The city currently requires that political campaign signs “be removed within seven days after an election.” That will have to be changed. Apparently, campaign signs can be left up year round starting next year. Won’t that make the city look fantastic?

Most of the discussion on other temporary signs revolved around how better to enforce the current ordinance during a time when the city is cutting staff. Ideas included lowering or eliminating the fee (currently $75) to apply for a temporary sign license (to improve compliance), utilizing city workers who are already driving around the city (such as police or public works employees) to call in violations to the sign ordinance when they see them, and partnering with printers and sign companies to educate those purchasing signs about the city’s rules.

The committee also recommended permitting inflatable signs so they can be approved administratively through the licensing process instead of through the Zoning Commission via the special use process. However, if permitted in this way, the change ordinance would add size limitations and prohibit “floppy man” types of signs (here’s an example).

Hotel news recap

There were a couple of hotel-related news items over the weekend:

  • Gov. Quinn approved tax credits for the Wonderful Development. Incidentally, the Journal Star reported the bill number as SB2535, but it’s actually SB2534. The gist of Quinn’s comments was that these tax credits will help provide jobs for union workers, and that will spur economic growth that will actually generate more revenue for the state. “You put more people to work,” Quinn is quoted as saying. “They pay income taxes and other taxes. The key thing is more economic growth.” Koehler chimed in: “People say, ‘Doesn’t that drain money out of the state budget?’ No, it doesn’t. By the time you pay all those jobs and you are creating extra real estate value, the community and state are going to replenish all of that.”

    Are we supposed to believe these guys have suddenly converted to Reaganomics? Wasn’t it Gov. Quinn who proposed raising personal income taxes from 3 to 4.5% last year? And after he changed his proposed new rate to 4%, wasn’t it Dave Koehler who lamented, “From everything I’ve heard around the Capitol, there will not be any appetite for the income tax (increase) before the election. That’s too bad. I don’t agree with it, but it’s the decision I hear.” What? Why raise personal income taxes? Why not just cut corporate income taxes so the state can reap millions and millions of dollars from all the new jobs that would be created as a result? Or does supply-side economics only work on union-worker-built hotel projects at Main and Madison in Peoria?

    The paper also stated:

    The proposal potentially could reduce the project’s costs by $8 million, savings that are split between developer EM Properties and the city of Peoria. The City Council last month voted 7-4 in favor of a $37 million bond to assist in the hotel project. The tax credit could potentially drop that obligation to $33 million.

    Looking at it one way, this is good — the City’s obligation could be 12% or so less than originally planned. On the other hand, it’s actually a net increase of $4 million in taxpayer incentives, if one looks at tax incentives from all sources equally.

  • The Grand Hotel will be converted to a senior living center. Why? The hotel’s sales manager, Stan Marshall, explained: “[T]hose capacity needs [groups who come to Peoria for meetings or sports events] just aren’t frequent enough. There are a lot of holes in the calendar. We need a steady source of revenue.” Given that the Radisson (formerly Jumer’s Castle Lodge) closed last year, and now the City’s third-largest hotel is getting out of the hotel business, one would be tempted to think that there’s overcapacity of hotel rooms in Peoria. But I’m sure downtown hotel proponents will pooh-pooh such an obvious conclusion. After all, the whole rationale behind the Wonderful Development is this belief that Peoria’s hotel problem is undercapacity.

Come watch the rich get richer

From my inbox, this notification from the City Clerk’s office:

WE HAVE JUST BEEN ADVISED AND YOU ARE HEREBY NOTICED THAT A MAJORITY OF A QUORUM OF THE CITY COUNCIL OF PEORIA, ILLINOIS, HAVE BEEN INVITED AND MAY ATTEND TO WITNESS ILLINOIS [GOVERNOR] PAT QUINN SIGN THE HISTORIC TAX CREDIT FOR THE PROPOSED HOTEL PROJECT ON MAIN STREET ON SATURDAY, JUNE 19, 2010, AT 9:15 A.M., AT THE PEORIA MARQUETTE, CHEMINEE BALLROOM, 501 MAIN STREET, PEORIA, ILLINOIS.

Please note this is not a meeting and no official action will be taken.

Tax credits for a guy making $9 million on this Wonderful Development, after he’s already received a $37 million gift from the city. That’s capitalism?

Thanks, State of Illinois. At least you can afford it. Oh, wait….

“Raise my taxes!” the people cried

I never thought I’d see the day that I’d read this in the paper: “…the crowd turned to face the Capitol and shouted ‘Raise my taxes.'”

A rally of 15,000 people from throughout the state roared in anger and frustration outside the state Capitol on Wednesday, protesting budget cuts affecting education and social services…. Sen. Dave Koehler, D-Peoria, co-sponsored legislation in the Senate calling for increasing the state income tax from 3 percent to 5 percent.

That’s right, a crowd of Illinois residents, including many from Peoria, descended on Springfield yesterday imploring lawmakers to raise their taxes — and not a little bit, either. Going from three to five percent is a 67% increase.

Raising taxes in order to maintain/increase spending is not the answer. Instead, reforms should be made to the pension system, and programs like FamilyCare/AllKids need to be means-tested. There are undoubtedly some programs that could be cut completely.

If anyone thinks that more money is the answer, look no further than the lottery. Remember that? The lottery was going to help schools! Well, they kept their promise. The proceeds from that tax on the poor did go to schools, but then they reduced other spending on schools by a commensurate amount, so it was a zero-sum bargain — an accounting trick. They found other ways to use the net increase in funds, and it wasn’t to help schools.

I guess it shouldn’t surprise me that people would ask to have their taxes raised. After all, they voted for an increase in their sales taxes here locally in the middle of a recession to pay for a non-essential boondoggle. I guess it really is better here — residents have money to burn.

Koehler wants do-nothing job

State Sen. Dave Koehler has applied for the job of Lieutenant Governor of Illinois. The Lieutenant Governor of Illinois has no significant purpose or duties, and lawmakers are considering eliminating the position completely. At least one Lieutenant Governor has resigned due to boredom. So… I’m not sure what Koehler sees in the position, other than maybe a full-time paid vacation.

I would rather see the position eliminated.

Red-light camera update

Illinois State Sen. Dan Duffy may not get his wish for a complete ban on red-light cameras in Illinois, but he says “there’s more than one way to skin a cat.”

A special subcommittee on red-light cameras met Tuesday evening and heard testimony on both sides of the issue. Many citizens and experts, including the Illinois Policy Institute, spoke out against the cameras. Law enforcement representatives spoke in favor. In the end, a “shell bill” was passed out of committee:

A shell bill or vehicle bill is essentially a blank bill passed out of committee that allows lawmakers the flexibility of cobbling together a coherent bill, without the pressure of legislative deadline. In this particular case, because there were a total of five bills containing RLC [red-light camera] reforms, senators will have to work together to find agreement on a single, comprehensive bill on this issue.

What measures might make it into the shell bill?

The next step for anti-red light camera activists is to push legislators to include any and every measures possible that improve safety and decrease red light running. This includes mandating an increase in yellow light timing to 4 or 4.5 seconds, increasing the use of an [all] red interval, and eliminating RLC enforcement [for] right turns on red.

Short yellow-light intervals create what is known as a “dilemma zone.” The driver is too close to the intersection to stop without slamming on the brakes, but too far from the intersection to make it through before the light turns red. By increasing the yellow-light interval, the “dilemma zone” can be eliminated. This change in itself lowers the number of red-light running violations by giving motorists ample warning to stop. Some cities with red-light cameras have been caught deliberately shortening the yellow-light interval (or varying it) in order to induce more tickets. In Peoria, the yellow-light interval is three to four seconds, depending on the size of the intersection according to Public Works Director David Barber.

An all-red interval is the period of time that traffic traveling in all directions have a red light. In other words, once a light changes to red, the cross-traffic doesn’t immediately get a green. There’s usually a one- to two-second delay during which all lights are red before the the cross-traffic light turns green. This allows more time for the intersection to clear before allowing cross-traffic to proceed, which improves safety. In Peoria, signalized intersections have a one-second all-red interval.

Turning right on red is legal at signalized intersections unless they have a red arrow or are otherwise posted with “no right on red” signs. Because of the geometry of the intersections, it’s often necessary to pull up past the stop line in order to see around traffic in the forward lanes. In communities that have red-light cameras, a lot of their revenue is generated by giving red-light citations to drivers who pull up in order to turn right on red in this way.

“We want to put in every reform possible,” says Scott Tucker, GOP nominee for state representative in the 11th district and organizer of a road trip of citizens to the hearings. “So many sensible reforms will kill the cameras over time because there will not be enough revenue to operate the cameras.”

In most cities (perhaps all–I haven’t done an exhaustive search), the police department doesn’t buy the red-light cameras, but instead contracts with a third-party vendor. The vendor installs and maintains the cameras, and in many municipalities, actually sends out the citations to violators. Other municipalities have an officer review the violations and send the citations out from the police department. The vendor gets a cut of the fines imposed on violators. If there are fewer violators, there will be less profit incentive for the vendors. And if that happens, you won’t need a ban on red-light cameras because simple economics will drive the vendors out of business.

County looks for new ways to lose taxpayer money

It looks like the County, which has been trying feverishly to squander $40 million on a poorly-planned museum, took some time away from that project to potentially throw away another million:

Peoria County could temporarily pick up slack for the state of Illinois after preliminary approval to issue a $1 million line of credit to the Peoria Regional Office of Education to meet payroll.

In an unprecedented move, the County Board’s finance committee approved issuing the credit Thursday, though it still must be approved by the full board on March 11.

Genius! Since the taxes we pay to the state aren’t being distributed to the Regional Office of Education (ROE) in a timely manner, the taxes we pay to the County are going to be used to help the ROE meet payroll. Then, the taxes we pay to the state will (they hope) be paid back to the County plus interest of around 3%. Who pays that 3% interest? The taxpayers! Yes, when one government body charges another government body interest, what that really means is our tax money being flushed down the toilet. Since both government bodies cover the same taxpayers, we’re essentially charging ourselves interest.

The article goes on to explain what the money would be used for specifically:

Delayed payments from the state of Illinois have created a cash flow emergency in the regional office’s Two Rivers Professional Development Center, an intermediate educational service provider.

Staffers for the regional office and Two Rivers are implementing a $12 million virtual school contract with state money.

The virtual school offers 130 courses, from core subjects such as math, English and science to foreign languages, health and business online. It serves about 120 schools across the state, with about 3,000 students in public, private and home-school settings from fifth grade through high school enrolled annually.

“If we don’t get the credit, the program shuts down. We can’t meet payroll,” Brookhart said.

The Illinois Virtual School was established in 2001, according to published reports. Their website states, “The Peoria Regional Office of Education (ROE), in partnership with the Area III Consortium*, was awarded the Illinois State Board of Education (ISBE) contract to manage and operate the Illinois Virtual School (IVS) on April 1, 2009…. The Area III Consortium is a partnership of 10 Regional Offices of Education located in west Central Illinois, the Area III Learning Technology Center, Two Rivers Professional Development Center and Western Illinois University.” The ten regional offices cover the following counties: Adams, Pike, Brown, Cass, Morgan, Scott, Fulton, Schuyler, Hancock, McDonough, Henderson, Mercer, Warren, Knox, Logan, Mason, Menard, Peoria, Sangamon, and Tazewell.

Given all that, several questions come to mind:

  • Why is it suddenly Peoria County’s responsibility alone to keep this program running? Where are the other 19 counties involved?
  • Considering Peoria County is itself facing revenue cuts from the state, how is it that they think it’s prudent to cover the state’s shortfall to the ROE?
  • How is it that Peoria County can afford to make a risky $1 million loan to anyone when they spent $4.2 million more than they took in last year?
  • If the state doesn’t come through with the money, how will Peoria County be repaid? Specifically, from what revenue source will they be repaid?
  • How important is this Illinois Virtual School program? Maybe this is a program that needs to be shut down if the state is unable to pay its bills.

District 150 and the Open Meetings Act

District 150 may have violated the Illinois Open Meetings Act when they held their erroneously-titled “meet and greet” (it was more like a “talk and walk” or “read it and beat it”) this past Tuesday.

There’s a two-part test in the Open Meetings Act to determine when a gathering of board members becomes a “meeting” for purposes of the Act. First, there has to be a majority of a quorum. In District 150’s case, that would be three board members. Four board members were in attendance at the gathering in question: Debbie Wolfmeyer, Laura Petelle, Linda Butler, and Martha Ross. That constitutes not only a majority of a quorum, but a majority of the seven-member Board of Education. Second, the gathering has to be “held for the purpose of discussing public business.” It’s on this point that opinions vary.

District 150 officials, Billy Dennis of the Peoria Pundit, and many commenters on my blog insist that this gathering was not for the purpose of discussing public business. The superintendent candidate read a statement and the board members took questions from the press, but they didn’t discuss public business with each other — thus, no violation. Billy Dennis’ recent post indicates that the Attorney General’s office may be siding with District 150 on this matter. He quotes an e-mail he received from district spokesperson Stacey Shangraw where she says:

While we did not believe we were in violation of the Open Meetings Act, a few concerns were raised from external parties regarding our compliance of the OMA at our media event where we introduced Dr. Lathan. To ensure that our interpretation of the Act was accurate, I followed up with the Public Access Counselor.

This is the response I received today from Sarah Kaplan, a law clerk at the AG’s Chicago office, who told me she conferred with Lola Dada-Olley, an attorney in the AG’s Chicago office.

“After reviewing the information you provided us, it does not sound like the press conference (or future press conferences of this nature) violated the OMA….”

The key phrase here is: “After reviewing the information you provided us.” Of course, we don’t know what information was provided. Furthermore, we don’t know much about who’s giving the opinion. Lola Dada-Olley has been with the Attorney General’s office a little over a month, having started in January of this year according to LinkedIn. Can’t find anything on Sarah Kaplan the law clerk. However, the Public Access Counselor for Illinois is Cara Smith, and she’s in Springfield, not Chicago.

Peoria County State’s Attorney Kevin Lyons thinks they did, in fact, violate the Open Meetings Act, according to the Journal Star:

“Violations of this act always involve quirky levels, and this one is no different,” Lyons said in an e-mail response, “. . . the meeting was clearly a public meeting with notification deficits and exclusion problems. The members present were in noncompliance of the act and the (State’s Attorney’s Office) could sanction, charge, or otherwise seek any level of ‘penalty’ or remedy available.” […]

“Even a casual gathering, such as a dinner party or coincidental meeting on the sidewalk, becomes a public meeting if a majority of a quorum of a public body (or a committee, etc. thereof) is present, and discussion occurs regarding business that is before, or is likely to come before, that public body,” Lyons said….

“A public body, no matter how well-intentioned, may not hold a public meeting and define for itself who may and may not attend the meeting. Public means everyone unless they, for cause, have been ejected or barred (disruption, etc.). Posting and distribution of notices for all public meetings are set out in the act and may not be narrowed by the public body.”

Lyons wasn’t relying on information he received from District 150 in writing his opinion, and he apparently thinks what was talked about during the gathering constituted a “discussion” of public business for purposes of the Act.

But whether or not you think they violated the Act, the big question is: Does it matter in this case? After all, the press was there, and nothing was done in secret, so isn’t this much ado about nothing?

And the answer is “yes and no.” If District 150 had built up trust and credibility with the public over a number of years, I’m sure everyone would give them the benefit of the doubt and just say it was an honest mistake. But District 150 hasn’t done that. It wasn’t that long ago that District 150 agreed in closed session to purchase properties on Prospect Road adjacent to Glen Oak Park, and then actually bought the properties, all in clear violation of the Open Meetings Act. They never apologized or admitted any fault. They subsequently approved the purchases in open session, something lawyers call post-action ratification. That did tremendous damage to the public’s trust. Since then, controversial votes based on questionable information (e.g., shortening school days supposedly to improve classroom instruction, closing Woodruff supposedly to save $2.7 million) have further eroded the board’s credibility. So when an apparent violation of the Open Meetings Act occurs now, even if it’s a little thing, it’s a big deal.

The public has every right to suspect that this latest gathering violated the Open Meetings Act, and that the violation was because of either (a) ignorance or (b) wanton disregard. The public wonders, “if they’ll abuse the Act in a little thing like this, what’s to stop them from abusing it in big things when nobody’s looking?”

Redistricting reform effort kicks off Saturday

From a press release:

PEORIA — The Illinois Fair Map Amendment will be the subject of a rally and talk at 9 a.m. Saturday, Feb. 20 at Childers Banquet Center at 3113 Dries Lane at Forrest Hill in Peoria.

The event officially begins the central Illinois drive to collect petitions to place the amendment proposal on the November election ballot. If approved by the voters, it will require that redistricting for the Illinois General Assembly by conducted by an independent commission, and not the legislators themselves, as occurs now.

Speakers will be Jan Czarnik and Brad McMillan.

Czarnik is executive director of the Illinois League of Women Voters. She is an expert in election law and worked to pass Illinois early voting and deputy registrar laws. McMillan, a former aide to Cong. Ray LaHood, now directs the Institute for Principled Leadership in Public Studies at Bradley University.

Petitions will be available for signing and for passing. The League, in a coalition with other groups in Illinois, hopes to gain 500,000 signatures by April 1 to place the proposal on the ballot.

This a meeting where breakfast is optional, at about $10. The sponsor of the event, the Greater Peoria League of Women Voters will appreciate reservations, which can be made by calling 309/674-5313 or sending an email to ehopkins7@prodigy.net.

The event is free and open to the public and the press. Information on the amendment is available at www.ilfairmap.com.