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Topspin
A nonpartisan budget watchdog group is calling for dramatic action to get the state’s budget back on track, saying Republican Gov. Bruce Rauner and Democrats are out of easy choices and need to consider raising taxes, among other things.
A five-year plan to be released Friday by the Civic Federation calls for a strict spending limit that caps growth at 1.7 percent a year, hiking the personal income tax rate from 3.75 percent to 5.25 percent, eliminating Illinois’ tax exemption on retirement income and lowering the sales tax rate from 6.25 percent to 5.5 percent but expanding it to apply to more services.
The group also calls for the elimination of numerous tax breaks that benefit businesses, saying they “do not provide sufficient public value to justify their cost,” and the consolidation of local units of government. Other suggestions include borrowing billions of dollars to help pay down the state’s massive pile of unpaid bills and creating a rainy day fund to better deal with future cash crises.
The sweeping agenda will be a tough sell at the Capitol, where a massive budget proposal with similar tax changes stalled in the Senate this week. But it underlines what Democrats and Republicans alike have acknowledged: The longer the budget impasse continues, the more difficult the solutions could become.
Illinois so far has gone without a full state budget since July 2015.
In addition to the tax changes, the Civic Federation calls for combining the Chicago Teachers’ pension fund with the state’s retirement system for teachers, saying it will help stabilize the budget for Chicago Public Schools.
The group says the state should also consider changes to the Illinois Constitution to make it easier to cut employee pension benefits and allow for a graduated income tax, and cap interest payments the state pays on overdue bills.
“There are no politically easy choices left for the State of Illinois and, unfortunately, none of the shared pain from spending restrictions and increased revenues will go toward better or additional services for Illinoisans,” Civic Federation President Laurence Msall said in a statement. “Rather, this will only settle many billions of dollars in obligations we have already incurred. Despite the pain, such measures are absolutely necessary to secure Illinois’ financial future." (Monique Garcia)
What’s on tap
*Mayor Rahm Emanuel will appear at a groundbreaking for a new maintenance complex at O’Hare Airport in the early afternoon. Later, he’ll discuss the relationship between the U.S. and Mexico with Mexico City Mayor Miguel Ángel Mancera and the mayors of Guadalajara and Juarez City.
*Gov. Rauner will appear on WBEZ-91.5 FM to answer listener questions (see "From the notebook" below) and will hold a late-morning event in Chicago to highlight Illinois Tollway diversity initiatives.
*Illinois Treasurer Mike Frerichs will promote the new Achieving a Better Life Experience program at a stop in Rockford.
From the notebook
*Riding the radio waves: Days before he’s scheduled to present a budget plan to lawmakers, Gov. Rauner will take questions from public radio listeners Friday morning.
Rauner is scheduled to appear on WBEZ-FM 91.5’s "The Morning Shift" at 9 a.m. for an Ask the Governor segment the station bills as "monthly" and a "rare opportunity" to question the governor. In a news release, the station said listeners could call its studio line at (312) 923-9239 or post questions on its Facebook page.
Rauner has taken questions from Facebook users before, the queries filtered by his staff in those cases. Last month, the Republican governor took to Facebook Live to say that two years into his term "I will never give up" in his nearly two-year budget battle with Democratic lawmakers.
During another Facebook appearance, Rauner faced criticism from women’s health advocates after he solicited questions via a photo of his dog wearing a pink ribbon with the caption: "Stella is doing her part to raise awareness and we are, too." Millions of dollars in state money that typically for breast cancer screenings for low-income women were lost during the budget battle.
The governor is scheduled to deliver his budget proposal to state lawmakers Wednesday, the third such speech of his first term. The state has been without a full spending plan since July 2015, though, as Rauner and Democratic House Speaker Michael Madigan have been unable to find much common ground.
Rauner recently suggested to the Chicago Tribune Editorial Board his plan would resemble what he presented last year, asking lawmakers for more authority to make cuts or pushing forward with more negotiations.
The radio appearance also comes as Illinois Attorney General Lisa Madigan’s bid to stop state payroll without a budget faces a court date next week.
*Public funding for Illinois campaigns? Even as Illinois can’t pay its bills, a potential Democratic candidate for governor suggested Thursday that the state should spend $25 million a year to pay for campaigns.
The suggestion from Sen. Daniel Biss, D-Evanston, comes amid renewed attention on the influence of money in politics after Republican Gov. Bruce Rauner recently poured $50 million into his campaign fund to finance a re-election bid and Democrats court wealthy challengers who could match his election investment.
Under the proposal, candidates could choose to raise money on their own or participate in a public matching program. Relatively small contributions between $25 and $150 would be matched by six times, up to a certain amount. The match would be capped at $50 million statewide every two-year election cycle, and lawmakers would have to approve funding for the program.
“Our political system is one where power is concentrated in the hands of a very small number of people … because of the way we pay for our political campaigns,” Biss said.
The proposal has not yet been debated. Biss said his proposal would not impact the 2018 governor’s race, which is he considering whether to enter.
“This is not about the 2018 election, this is about the future of Illinois’ democracy,” Biss said. (Monique Garcia)
*On the Sunday Spin: On this week’s show, Chicago Tribune political reporter Rick Pearson’s guests are Elliot Richardson, founder and CEO of the Small Business Advocacy Council; Wheaton Republican U.S. Rep. Peter Roskam; and Michael Golden, author of “Unlock Congress.” The "Sunday Spin" airs from 7 to 9 a.m. on WGN 720-AM.
What we’re writing
*Emanuel goal: Start express rail to O’Hare project within three years.
*Emanuel: Not good for country if people don’t take what a president says seriously.
*Chicago police clear officers of racial profiling in stop of U.S. Rep. Bobby Rush.
*Firing recommended for Chicago cop for allegedly lying about fatal shooting.
*First lady Diana Rauner’s nonprofit among social service groups filing another lawsuit seeking to get paid by state.
*MSNBC’s Chris Hayes in Chicago: Crime is nothing here compared with 1990s Bronx.
*State lawmaker seeks headline, gets it: October could become zombie preparedness month in Illinois.
*City plans new CTA Green Line station at Damen, near United Center.
*Cheaper costs for food cart vendors? City looks at cutting fees.
*Chicago State University briefly shuts campus for heating problems.
*Illinois plan for retirement accounts at small employers is in jeopardy.
*Pence’s successor pardons wrongly convicted Chicago-area man after years in Indiana prison.
What we’re reading
*Sixteen restaurant in Trump Tower names new executive chef.
*McCormick Place gets its own craft beer from Brickstone Brewery.
*The best ways to get to the Chicago Auto Show, some of which are not by car.
Follow the money
*Track Illinois campaign contributions in real time here and here.
Beyond Chicago
*U.S. appeals court refuses to reinstate Trump travel ban.
*Trump criticizes Democratic Sen. Blumenthal and Republican Sen. McCain in tweets.
*McCain hits back at Trump press secretary Spicer.
*White House says Conway "counseled" on Ivanka Trump product promotion.
*A U.S. general wants more American troops in Afghanistan.
*Syria war seethes despite cease-fire.
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