McHenry County Blog

When State Senator Pam Althoff’s Telephone Town Hall Meeting contacted me after her five hour session (with committee meetings in the morning), I decided to listen in.

Some notes I took follow.

A man from Woodstock with a $10,000 property tax bill said, “Taxes are out of control for Dorr Township. I can’t afford to retire in my home. As soon as I can, I’m moving out of this state.”

[I would point out that Woodstock School District 200 took every dime it could and that was most of the local tax increase.]

Althoff took two polls, the first about the Democrats 67% income tax hike. She said she would announce the results during the hour and did.

• 71% said cut spending and the tax hike
• 21% favored leaving the tax hike in place but not allowing government to grow
• 2% wanted government to continue to increase in size
• 6% were undecided

At least two people talked about government employee pensions.

Althoff said that something would have to be done or 15-20 years from now “people will get a pink slip.”

I’m not sure one can get fired from a pension program, but her point was that the five public pension funds would eventually run out of money.

When asked where she stood on the union-backed pension plan (the one State Senate President John Cullerton is sponsoring), she said, “I supported both of the pieces of (pension) legislation.”

Another person pointed to the 3% annual pension increases, which are compounded, in public pensions as a big problem. He said that nobody in the private sector gets anything like that.

Althoff agreed and pointed out that the compounding was more than 50% of the problem.

A poll was taken on what Althoff characterized as “conceal and carry.”

Althoff said she was in support of such legislation.

The results were

• 47% support
• 29% do not support in any form
• 26% support with exemptions
• 4% were undecided

A nurse called to ask if the state’s assuming administration of Obamacare would result in something like the pension crisis down the road.

Althoff did not try to dissuade her of that possibility.

A man called about fracking. He was worried about his well water.

He apparently thinks it will occur in McHenry County.

Althoff said she was undecided but did not tell him natural gas and oil has not be found under McHenry County’s acreage.

A man from a small town without zoning whom Althoff recognized as someone she had talked to before talked about windmill regulation in places like his. Althoff just passed a bill to give them some control within their village limits, but with no power outside those limits. Municipalities with zoning have some power within a mile and a half of their boundaries.

When the hour was up Althoff invited people to leave messages on her answering machine.

A press release from State Senator Pam Althoff:

Springfield, Ill. – State Sen. Pamela Althoff (R-Crystal Lake) said last week the Senate passed a pension reform measure backed by the Senate President and acted on a number of other measures, including medical marijuana legislation, a bill to open the state’s system of education funding up to additional scrutiny and a measure creating the state-based health insurance exchange.

Pension Reform – Senate Bill 2404

On May 9, Senate President John Cullerton presented his pension reform legislation to the Senate, Senate Bill 2404, and chose to ignore Speaker Madigan’s pension proposal that already passed the House. President Cullerton’s measure passed with some bipartisan support.

Althoff voted in favor of the measure in order to keep the discussions of reform moving forward as she feels this is not the final version of reform.

“All stakeholders should be a part of the discussion for the pension reform solution,” Althoff said.

“Although the current form of Senate Bill 2404 does not produce the same savings as Speaker Madigan’s proposal, it does in fact save the state money.

“With that said, there is opposition to this bill and it is assumed that these issues will be taken up with other aspects of the Madigan proposal in the House.

“It is important that these discussions move forward and we achieve a solution that sustains our systems while protecting our retirees and workers.”

Rough estimates project Senate Bill 2404 will reduce the state’s pension payments in the upcoming fiscal year by $850 million, and would save a total of $46 billion over the next 30 years. While the measure would not strengthen the current funding formula, it would guarantee the state could make the pension payments required under current law.

However, opponents of the bill say Senate Bill 2404 does not do enough to stabilize the pension systems or reduce the state’s pension liabilities, which have been estimated by some to exceed $100 billion. They noted that in comparison Senate Bill 1, the pension proposal being pushed by Speaker Michael Madigan, promises savings of about $150 billion over 30 years, including approximately $2 billion in 2015.

Supporters of the measure contend that it may be more likely to meet Constitutional muster through provisions which give employees a choice of benefits. But opponents said there was no guarantee that the proposal would be held constitutional and pointed out that a retired teachers organization has already pledged to challenge the measure in court.

Senate Bill 2404 would require employees in every system but the Judges choose one of three options:

• Keep their current Cost of Living Adjustments (COLA) on their future pension benefits – which is 3% compounded annually. Give up access to State health insurance when they retire and have future salary increases not count for their pension; or
• Keep the current COLA but agree to a three-year delay in that COLA. Retain retiree health insurance. Future raises would count toward pensions. Workers would be required to pay an additional one week’s pay each year toward their pensions; or
• Take a lower COLA (3% with no compounding) and agree to a two-year delay in that COLA. Employees could keep their retiree insurance and pensionable raises and not have to make extra contributions.

Retirees would be able to retain their current 3 percent compounded COLA, but must choose between:

• Keeping access to health insurance and having a 2-year freeze in their COLA; or
• Giving up health insurance with no COLA freeze.

The measure now moves to the House for consideration, although successful passage of it remains rather unlikely.

Education Funding Transparency – House Bill 3133

In addition to pension reform, Senate lawmakers turned their attention to other matters, including a bill sponsored by Senate Republican Leader Christine Radogno that would open up the General State Aid formula to greater public scrutiny.

The Senate Executive Committee approved House Bill 3133, which would require the approximate amounts forecast to be paid for state Poverty Grants and Foundation Level Grants to be listed out in a state budget bill for easy review; the Property Tax Extension Limitation Law adjustment must also be listed separately.

The measure was introduced in response to a study conducted by Senate Republicans that revealed the General State Aid allocation has been listed as a lump sum in the state budget, which makes it difficult to decipher how state education funding is being allocated.

House Bill 3133 seeks to increase transparency of the state’s system of education funding, which will allow policy-makers to detect trends that—until very recently—had been concealed, and ensure that schools are being funded in the way the General State Aid formula was intended.

Medical Marijuana – House Bill 1

The Senate Executive Committee also advanced legislation that would allow for the dispensation of medical marijuana, a measure which has received significant attention from the media and the public. House Bill 1 would allow a patient who has been issued a registry identification card by the Department of Public Health to possess up to 2.5 ounces of cannabis during a 14 day period. The measure specifies certain qualifying diseases and illnesses, but does not include general eligibility for chronic pain or nausea.

The measure establishes criteria for medical marijuana cultivation centers and requires them to be registered by the Department of Agriculture. The Department of Agriculture may approve up to 22 licensed marijuana growers, but no more than one per State Police District.

House Bill 1 stipulates that a cultivation center would only be permitted to provide medical cannabis to dispensing organizations whose purpose is to dispense cannabis and paraphernalia to qualified patients. The dispensing organizations would have to register with the Department of Financial and Professional Regulation (IDFPR); IDFPR would be allowed to approve up to 60 dispensaries.

In response to safety concerns, the bill provides a framework to allow for employer regulation and discipline for use of cannabis in the workplace. It also stipulates that a patient may not drive while under the influence of medical cannabis. A provision was included in the bill allowing for field sobriety tests to be administered to a medical cannabis card holder suspected of driving under the influence, and states that evidence would be admissible in court.

State Health Insurance Exchange – House Bill 3227

The Senate also moved forward with implementation of a state-based health insurance exchange as part of the requirements of the federal Affordable Care Act, often referred to as “Obamacare.” The Senate Insurance Committee approved House Bill 3227, establishing and outlining the structure of the Illinois Health Benefits Exchange. It is projected plan enrollment will begin Oct. 1, 2014. The exchange will initially have two components, one serving individuals and one serving businesses with 50 or fewer employees. In 2016, the two parts could be merged and could also include employers with up to 100 employees.

Additional Senate Action

The Senate considered a number of additional measures both in Senate Committees and as a full body. You can catch up on legislation moving through the Senate, as well as measures that have been approved by the General Assembly, at the Senate Republican’s “Senate Action” page.

Governor Quinn Requests Federal Assistance for 11 Counties Affected by Flooding

On May 9, Gov. Quinn asked President Obama to declare 11 Illinois counties major disaster areas following the storms and heavy rainfall in April. If that request is approved, the residents in those counties will be eligible to apply for grants and low-interest federal loans to help recover from the historic flooding. The counties included in the request are Cook, DeKalb, DuPage, Fulton, Grundy, Kane, Kendall, Lake, LaSalle, McHenry and Will.

A press release from State Senator Pam Althoff:

Althoff announces Illinois Historic Preservation Caucus members, Mineola Hotel named an endangered historic place

SPRINGFIELD, IL – State Sen. Pamela Althoff (R-Crystal Lake) announced the creation of the Illinois Historic Preservation Caucus at a press conference May 1, which was held in conjunction with Landmarks Illinois’ annual Ten Most Endangered Historic Places list. .

During the event, Althoff named the Illinois Historic Preservation Caucus members, a caucus aimed at creating and promoting legislation that enhances historic sites and structures around the state. The co-chairs of the caucus include Althoff, Sen. Andy Manar (D-Staunton), and Reps. Rich Brauer (R-Springfield) and Jerry Costello (D-Red Bud).

Among the sites listed on the Ten Most Endangered Historic Places list was The Mineola Hotel in Fox Lake.

Landmarks Illinois is the state’s leading voice for historic preservation, and named seven other endangered historic properties as well as two thematic groupings to its annual list. The list focuses attention on sites that are threatened by deterioration, lack of maintenance, insufficient funds, or inappropriate development. Since its start of the Ten Most list in 1995, more than a third of Landmarks Illinois’ listed properties have been saved, less than a quarter have been demolished, and the rest are in varying stages between being threatened and restored.

The complete Ten Most list, including photos of the sites, can be found at www.landmarks.org through the “Press Room” link.

Althoff is pictured with Mineola Hotel advocates after the press event.

A press release from State Senator Pam Althoff:

Legislation to help deter telemarketers from calling ‘Do Not Call Registry’ numbers

SPRINGFIELD, IL – State Sen. Pamela Althoff (R-Crystal Lake) says legislation she passed on April 25 aims to help residents obtain some relief from unwanted telemarketing calls at their homes.

The same day, the Northwest Herald published a story about the frustrations people have with unwanted phone calls in the evening when they are trying to unwind from the day, eat dinner, or put children to sleep.

Even though people are placed on the Do Not Call Registry, some telemarketers are still able to call residents due to some federal and state laws.

Althoff’s measure, Senate Bill 2136, enhances penalties for telemarketers who are openly breaking the state and federal laws by calling cell phones and persons on the do not call registry list.

Consumers will be entitled to statutory damages of up to $500 for each founded violation by telemarketers.

The legislation now moves to the House for consideration before going to the Governor to sign into law.

Pretend you are a legislator.

It is very highly unlikely you will read each bill. Actually, that is impossible as the deadline for passage out of each house approaches.

In the House, you don’t even know the order in which the bills will be called anymore.

It’s whenever Speaker Mike Madigan decides. (It wasn’t like that before Madigan. There was an actual calendar from which the bills were called in numerical order each day.)

Yesterday, the Illinois State Senate amended what is commonly called the “video poker” bill. It’s really about the slot machining of Illinois.

Here’s the summary that would have been on your computer screen about Senate Bill 1738, sponsored by Lake County’s Terry Link:

Replaces everything after the enacting clause with the introduced bill with the following changes: defines “electronic card” (and removes a cross-reference to the Illinois Administrative Code); provides that the central communications system vendor may be licensed as a video gaming terminal manufacturer or a video gaming terminal distributor, or both, but in no event shall the central communications system vendor be licensed as a video gaming terminal operator;

provides that the Board shall not permit the development of information or the use by any licensee of gaming device or individual game performance data;

provides that nothing in the Act shall inhibit or prohibit the Board from the use of gaming device or individual game performance data in its regulatory duties;

requires the Board to adopt rules to ensure that all licensees are treated and all licensees act in a non-discriminatory manner and develop processes and penalties to enforce those rules;

adds language authorizing the Illinois Gaming Board to adopt rules establishing standards for advertising video gaming;

removes language prohibiting the Board from disseminating information that is specific to individual licensed locations (and removes corresponding changes to the Freedom of Information Act); and,

in provisions amending the Criminal Code of 2012, provides that video gaming terminals for sale to a licensed distributor or operator (rather than a licensed establishment, licensed fraternal establishment, licensed veterans establishment, or licensed truck stop establishment) under the Video Gaming Act are exempt from seizure.

Effective immediately.

In the form legislators see the description, it is one fully packed paragraph. I have cut it up to make it easier to read.

Below is the roll call:

Locally, Senator Pam Althoff voted in favor, while her McHenry County colleagues Dan Duffy and Karen McConnaughay voted against the measure.

The Illinois Church Action on Alcohol and Addiction Problems (ILCAAP) offers the following commentary:

Wednesday, the Senate passed SB 1738, which hides information about video gambling at individual establishments from the public examination. The vote on SB 1738 was 35 Yes and 15 NO.

SB 1738 also changes the video gambling act to allow the company that has the contract for the Central Communications System (Scientific Games) to also manufacture video gambling machines. This is a conflict of interest.

With Independents and Democrats running against Republican Township candidates, I was interested in who got contributions from McHenry County Republican Party Chairman and State Rep. Mike Tryon.

The answer is two Grafton Township Republican candidates, one before the primary election and one after:

• $400 – 1/29/2013 – Citizens to Elect Tom Poznanski. Poznanski is the Grafton Township Republican Central Committee Chairman. He ran successfully for Grafton Township Road Commissioner.
• $250 – 3/13/2013 – Pam Fender Campaign Committee. Fender won the three-way GOP primary election for Grafton Township Supervisor, but lost the general election to Independent Jim Kearns.

Other contributions went to

• State Senator Pam Althoff – $163.43 – 3-17-13
• Dundee Township Republican Central Committee – $160 – 1-23-13
• Elgin Township Republican Central Committee – $250 – 2-12-13
• Crystal Lake City Council candidate Cameron Hubbard – $500 – 2-22-13
• McHenry County Board member Ken Koehler – $500 – 2-25 & 3-20-13
• McHenry County Republican Central Committee – $900 – 2-22-13
• Patriots United – $500 – 1-29-13
• Allen Skillicorn – $250 – 3-13-13.  Skillicorn serves on the East Dundee Village Board.

An additional $575 was contributed to unnamed candidates.

Tryon brought in a bit over $11,000 and spent almost $17,000.

The big money came from the following, most donated on March 13, 2013

• Ameren, St. Louis, MO -$1,000 – 3-13-13
• Associated Beer Distributors of Illinois PAC, Springfield – $1,000 – 3/13/13
• AT&T, Aurora – $1,000 – 3-13-13
• CAR of Illinois, Springfield – $250 – 3/13/13
• CHEM-PAC, Des Plaines – $750 – 3/13/13
• Comcast Financial Agency Corporation, Philadelphia, PA -$1,000 – 3/13/13
• Committee to re-elect State Representative Brent Hassert, Romeroville – $200 – 3/13/13
• Foresight Energy Services, St. Louis, MO – $250 – 3/13/13
• Genentech, Inc., South San Francisco, CA – $500 – 3/29/13
• Illinois Bank Pac, Springfield – $500 – 3/13/13
• Illinois Optometric Association PAC, Springfield – $500 – 3/13/13
• Matthew O’Shea Consulting, Inc., Crest Hill- $250 – 3/13/13
• Medimune Biologies, Gaithersburg, MD – $250 – 3/29/13
• Midwest Generation, Santa Ana, CA – $500 – 3/13/13
• Neil Francis Flynn, Attorney, Springfield – $250 – 3/13/13
• Realtor Political Action Committee, Springfield- $350 – 3/13/13
• Sorling, Northrup, Hanna, Cullen & Cochran, LTD, Springfield – $500 – 3/13/13
• TRK PAC Midwest Truckers Association Inc., Springfield – $500 – 3/13/13

Another $711 came from Michael and Cathy Tryon as a “rent reimbursement.”

Expenditures that were itemized follow:

• 1776 Restaurant for meetings – $423.05 – 1/23/13
• Apoyan Rug Company, Harvard for new office carpeting – $1,850 – 1-22-13
• Cheryl L. Meyer Consulting Services, Inc. for campaign consulting – $675 – 2/22/13
• Creager Press Inc., Schaumburg, for printing – $469.62 – 3/27/13
• D’Andrea Banquets & Conference Center for fundraising deposit – $400 – 2/26/13
• Fast Forward Marketing, Crystal Lake, for social media consulting – $360 – 2/22/13
• Furniture for All, Algonquin, for new office – $346 – 1/23/13
• Huntley Raiders Lacrosse Club for sponsorship – $500 – 2/25/13
• Joan M. Etten, LLC., Park Ridge, for fundraiser postcards – $368 -3/13/13
• Joan M. Etten, LLC., Park Ridge, for fundraising supplies (leis) – $35 – 3-13-13
• Joan M. Etten, LLC., Park Ridge, for consulting – $1,000 – 3/13/1
• Moscardelli Moving & Storage, Inc., Springfield for moving- $343 – 2/22/13
• Near North Village, Springfield, for 2 months’ rent – $825 – 2/1/13
• No Kane County Chamber for Expo booth – $225 – 2/22/13
• Office Depot, Crystal Lake, Postage – $530.77 – 3/27/13
• Office Max, Crystal Lake, office supplies – $14.51
• Ross Isaac Restaurant, Springfield, Inauguration dinner – $367.10 – 2/23/13
• Jean Schober, McHenry, for campaign filing – $195 – 1/21/13
• Target, Crystal Lake, for office equipment – $760.84 – 1/10/13
• United States Postal Service for postage – $92 – 2/20/13
• United States Postal Service for postage – $90 – 1/10/13
• United States Postal Service for postage – $184 – 3/13/13
• Yacht Club At Sister Bay, Sister Bay, WI, for staff event – 466.20 – 1/10/13

Tryon had $18,149.79 remaining in his campaign fund as of the end of March.

He started 2013 with $24,015.67

A press release from State Senator Pam Althoff:

Senate Week in Review: April 1 – 5, 2013

SPRINGFIELD, IL – Despite the state’s ongoing credit woes, improved market conditions allowed Illinois to achieve a near record-low interest rate on construction bonds sold April 2. But that good news was tempered by a report from the University of Illinois showing that the state’s economic growth continues to lag behind the rest of the nation and has slowed after three years of improvements, State Sen. Pamela Althoff (R-Crystal Lake) said.

In other legislative news:

• Local governments are raising concerns about a proposal from Gov. Pat Quinn to reduce the their share of state income tax revenues;
• The Quinn administration has begun implementing a revised early-release program for prisoners, after suspending the practice more than three years ago;
• The state is beginning to accept health insurance proposals for inclusion in the Illinois health insurance exchange which will be established as part of the federal Affordable Care Act, commonly known as Obamacare; and
• In a pair of editorials the Chicago Tribune first asks, if scrubbing 13,700 ineligible persons from the Medicaid rolls was “low-hanging fruit,” why did the state wait for an outside consultant before taking action? The publication then urges lawmakers to carefully consider the options before adding hundreds of thousands of new recipients to the Medicaid program.

State Sells Construction Bonds

Illinois sold a total of $800 million in bonds for construction projects on April 2, getting a 3.92% interest rate on $450 million of tax-exempt bonds, which matches a 20-year low the state received in Jan. 2012. On the second set of bonds, Illinois received a 4.97% rate on $350 million in taxable bonds, which was better than the 5.29% the state received in Jan. 2012 on similar bonds.

Despite the relatively low rates, Illinois continues to pay a higher interest rate than states with better credit ratings.

State’s Recovery in Peril?

Warning signs are showing up in the state’s economy, according to a University of Illinois “flash index” released at the beginning of April. The index showed that while the state’s economy continues to expand, the rate of that expansion slowed slightly in March.

The University’s report coincides with the latest unemployment report, which showed unemployment is higher in 10 out of 12 metropolitan areas, when comparing Feb. 2013 to Feb. 2012. Statewide, unemployment rose to 9.5% in February, from 9% the previous month and 8.9% in February, 2012.

Local Governments Worried about Revenue Sharing

Governor Quinn has suggested that the state could help close its budget gap by freezing local revenue sharing dollars at the same level as 2012. Not surprisingly, a number of municipalities are gearing up to oppose the plan.

Recently, Arlington Heights officials warned they would lose as much as $863,000 in increased funding if the plan is adopted. The Quinn administration estimates the freeze would reserve about $68 million for the state budget and amount to about $5.30 per resident for each municipality. However, the Illinois Municipal League, which represents many city governments, has put the cost at closer to $11.50 per resident and says it would allow the state to divert $148 million.

Quinn Resumes Early Release

In late March, the state’s Department of Corrections released the first inmates under a revised early release program. It was the first early release in three years.

Early release of prisoners had been suspended after the Associated Press uncovered a series of problems in late 2009 and early 2010. At the time, it was revealed that under a controversial “Meritorious Good Time-Push” program the Department of Corrections was releasing prisoners, including some with a history of violent crimes, after an average stay of just 16 days.

The revised program grants non-violent offenders up to 180 days of early release credit if they meet specified criteria.

First Steps toward Health Exchanges

Insurance companies have begun submitting plans to a state review panel in anticipation of the launch of the federal Affordable Care Act, sometimes known as “Obamacare.”

A key component of the federal healthcare law is the establishment of insurance “exchanges” designed to offer individuals and small businesses one-stop shopping for health insurance. Insurance plans are to be available for comparison beginning Oct. 1 and coverage would start in 2014.

The state expects up to 400 different plans will be submitted for review and possible inclusion on the health exchange website. However, some of the state’s largest insurance companies are still weighing whether or not to participate in the Illinois exchange. Plans available through the exchange will be required to meet a base level of coverage and meet strict financial restrictions. The state estimates it will be September before the website goes live and consumers can begin comparing plans.

Medicaid Reform and Expansion

In a pair of recent editorials, the Chicago Tribune took a look at the state’s efforts to remove ineligible recipients from the state Medicaid program and then warned lawmakers not to rush to approve a massive Medicaid expansion.

The first editorial summarized early results of an audit ordered under bi-partisan Medicaid reforms adopted in 2012.

The Tribune wrote: “The initial results of this audit are … astonishing: Of the first 20,500 recipients screened by an outside contractor, the auditors recommend that 13,709 be removed from the rolls. Yes, that’s two-thirds of the first group screened, flagged as ineligible to receive their current Medicaid benefits.”

The editorial references a statement from the Department of Healthcare and Family Services Director Julie Hamos that this represented “low-hanging fruit,” because the individuals had already been red-flagged as suspicious.

So, the Tribune editorial asks:

“Why didn’t state officials pluck this low-hanging fruit long ago?”

The second editorial looks at a major Medicaid expansion contained in Senate Bill 26, which passed the Senate in February with no Republicans supporting it. The bill is currently before the Illinois House.

Although the federal government is expected to pick up the bulk of the cost for the expansion, the state’s Dept. of Healthcare and Family Services (HFS) has indicated the cumulative cost to the state could exceed $2.9 billion by 2020. The measure voluntarily expands the state’s Medicaid program eligibility to nearly 350,000 additional individuals, who are between the ages of 19 and 64 who are under 138% of the Federal Poverty Level.

Information has reached me that State Rep. Jack Franks and State Senator Pam Althoff will not be at Sullivan’s Grocery in Harvard.

The store has apparently been sold and is now called Cash Savers.

So, same address, same time, but different name for the grocery.

Saturday, April 6, 2013
10:00am –11:00am
Cash Savers
1299 S. Division St.
Harvard

State Senator Pam Althoff and State Rep. Jack Franks offer themselves for an hour in Harvard on Saturday, April 6th.

They will be at Sullivan’s Foods, which is located at 1299 S. Division St.

A press release from Pam Althoff:

Senate Week in Review: March 11-15

SPRRINGFIELD, IL – State Sen. Pamela Althoff (R-Crystal Lake) said Senate Committee meetings consumed most of the time this week in Springfield, but Senate Republicans found time to point out the disparity in education and how false and misleading statements are jeopardizing pension reform. Also, Althoff sponsored legislation to promote greater transparency in the Illinois budget process was sent to subcommittee despite testimony for the need of a more open process in the state.

Institute calls for transparency in Illinois’ budget process, parallels Althoff legislation package

The University of Illinois’ Institute for Government and Public Affairs presented testimony during the Senate Appropriations II Committee on March 14 that parallels legislation filed by Althoff. Their testimony noted that Illinois needs more budget transparency, faster budgetary reporting, a rework or redo of how the Governor’s Office of Management and Budget (GOMB) presents the Governor’s budget proposals, and a transparent process of fund transfers.

Althoff’s Senate Bills 1904, 1905, and 1907 are all measures that seek greater transparency in Illinois’ yearly budget process.

Senate Bill 1904 would require every bill that provides for the transfer of money from a special fund in the state treasury to any other fund in the state treasury through sweeps, administrative charge-backs, or another fiscal or budgetary maneuver to have prepared for it a brief explanatory statement or note that discloses the amount to be transferred from each special fund and an estimate of the programmatic impact of that transfer prior to second reading in each chamber.

In conjunction, Senate Bill 1905 requires GOMB to maintain a database on its website that tracks funds in each special fund of the state treasury.

Lastly, Senate Bill 1907 would require the GOMB to post on its website in a spreadsheet a copy of all tables, charts, and quantitative data used in the preparation of the Governor’s proposed state budgets.

Althoff filed this package of legislation in order to give the public greater transparency as to how their tax dollars are spent.

Unfortunately, all three pieces were sent to the Appropriations II Subcommittee on Special Issues.

Legislation often “dies” once it is sent to a subcommittee, but Althoff is hopeful that these good government, transparent measures will be signed into law in the future.

Who gets the “free lunch?”

Sen. Althoff joined Senate Republican Leader Christine Radogno (R-Lemont) and other members of the Senate Republican Caucus on March 13 to discuss the disparity in education funding and stress the importance of staying focused on pension reform.

Illinois Senate Republicans acknowledge there is a “free lunch” in education funding – but the Caucus’ in depth examination of the state’s system of school funding shows it’s Chicago that is receiving it.

The examination found that even though Chicago Public Schools account for roughly 18% of Illinois’ public schoolchildren, they receive $772 million in additional funding each year from the state through special considerations and grant lines. That is compared to the $104 million so-called ‘free lunch’ that downstate and suburban schools receive to educate 82 percent of Illinois’ students.

Althoff said that the false claims that downstate and suburban school districts are getting a ‘free lunch’ because the state picks up some teachers’ pension costs is jeopardizing sincere efforts to solve the state’s financial crisis.

“The suburban schools are approximately 90 percent funded by our property taxes,” Althoff said. “To be told that the suburban and downstate schools are getting a free lunch is completely inaccurate and misleading. That kind of rhetoric should not be involved in the pension discussion. We need to be serious about solving this problem, and that’s not done by making false statements.”

The Caucus began to investigate the disparity in education funding once cost shift proposals were suggested as part of pension reform.

To read the full Senate Republican Analysis, visit Althoff’s website at www.senatoralthoff.com.

Pension reform measures advance to full Senate

This week two pension reform measures were advanced by the Senate Executive Committee, including Senate Bill 1 sponsored by Senate President John Cullerton.

Cullerton’s measure incorporates two choices for pension reform. The first option (Part “A”) is similar to Senate Bill 35 and a bipartisan measure co-sponsored in the Illinois House by House Republican Leader Tom Cross and Democrat Rep. Elaine Nekritz.

The second component of the bill is an alternative that would go into effect if the first option is declared unconstitutional.

Part “A” includes unilateral benefit cuts, including a freeze on cost of living adjustments (COLA) on retirees’ benefits and higher employee contributions. It also strengthens the state funding formula for the pension systems, but does not include a cost shift to pass pension responsibilities onto local school districts.

Part “B” of Senate Bill 1 takes effect only if part “A’ is ruled unconstitutional. This plan offers employees and retirees a choice between reduced COLAs and keeping retiree health insurance, or keeping a full COLA and losing health insurance. This component would also strengthen the state funding formula for the pension systems, but does not include a cost shift.

The other pension bill, Senate Bill 35 is identical to reform legislation that is moving through the House of Representatives that would create new “Tier 3” pension recipients, establishing a hybrid of a defined benefit and defined contribution plan for new teachers and college staff. Tier 3 does include a cost shift, and would apply to employees hired after January 1, 2014. Those now in “Tier 2” (hired after January 1, 2011) may switch to Tier 3 benefits.

The defined benefit plan will require contributions of 4% of salary from Tier 3 employees, and those employees will earn benefits each year based on 1.1% of final salary. The age of retirement would be increased to 67. Tier 3 also includes a defined contribution plan that requires employees to contribute 5% of salary, with schools and colleges contributing at least 3% and as much as 10%.

Senate Bill 35 also makes changes to “Tier 1” benefits for all Illinois retirement systems, except the judges’ retirement system. It reduces and would delay COLAs. Cost of living adjustments would be paid only on the first $25,000 of benefits for those without Social Security, or the first $20,000 for those with Social Security. Retirees would receive no COLA at all until age 67 or 5 years after retirement, whichever comes first. The retirement age would also be increased to 5 years longer than current law, and phased in over time. The proposal also phases in a 2% of salary increased contribution from all Tier 1 employees over 2 years, caps pensionable salary at the Social Security base (now $113,700), and strengthens the state’s funding formula.

Smart Grid follow-up legislation passed by Senate

The Illinois Senate advanced Senate Bill 9 on March 14, which would further clarify the state’s 2011 “Smart Grid” law, legislation that allowed for Commonwealth Edison (ComEd) to hike consumer rates by more than $2 billion over the next decade in order to digitize and repair the state’s aging electrical grid.

The utility company argued the modernization would save consumers more money in the long run through increased efficiency, and by giving consumers more control over their electric usage. However, Senate Bill 9 was introduced in response to an ongoing disagreement between ComEd and the Illinois Commerce Commission (ICC) on implementation of the law, which ComEd said would substantially increase costs for the utility company by approximately $100 million annually.

Senate Bill 9 addresses three of the points of contention between the ICC and ComEd, including: whether pensions will be considered an asset or a liability; the interest rate that will be used to bring the utility’s actually costs into line with the theoretical costs; and what returns will be based on—the equipment in the ground at the end of the year, or the average amount of equipment that is put into the ground throughout the year. And though ComEd pushed back its deployment schedule to install “smart” meters, the measure would require the utility to begin installing their in-home smart meters in 2013.

Althoff welcomes two district communities to Springfield for Illinois Main Street Rally Day
March 13 was the annual Illinois Main Street Rally Day in Springfield. The program is celebrating its 20th year of working to promote the revitalization and success of communities throughout the state. Diana Kenney, Executive Director of the Downtown Crystal Lake Main Street Program, and Adam Johnson, Executive Director of the Marengo Main Street Program were in attendance from Althoff’s district. Althoff said that the Main Street Program’s mission is at the heart of what legislators should be promoting.

“Building up our communities to thrive socially and economically are policies that I do my best to advocate for,” Althoff said. “It is my hope that through the advocacy of the Main Street communities and partnerships with legislators such as myself, we will be able to take their mission and continue to promote it for the benefit of all these communities around the state.”

Visitors to Springfield

Also this week, Althoff welcomed members of the McHenry Country Government who were in Springfield with the Barrington Area Council Government. Althoff joined them during their March 12 meeting with Senate Republican Leader Christine Radogno concerning the Governor’s proposal to borrow local government distributive funds from municipalities.