Upcoming House Vote on Governor's Role In Negotiating AFSCME Contract Defining Moment in Springfield Political Struggle

This Tribune story covers a very significant issue percolating in the General Assembly, as the Legislative Branch contemplates whether to remove, at least temporarily, what has historically been a prerogative of the Executive Branch. 

The Senate already voted 38-15 (36 votes required) to strip away much of the Governor's negotiating authority over the labor contract with state employee unions. Existing law provides that the Governor can declare an impasse, and at such time the union can accept the State's final offer or elect to strike. 

This process would change if the General Assembly successfully overrides the Governor's veto of SB 1229. The potential change in law would vest an arbitrator with final decision-making authority over the terms of the contract. Illinois arbitration law restricts arbitrators to a choice between the employer's final offer, or the offer put forward by the union. The contract involves billions of dollars in taxpayer money. The House will attempt to override the Governor's Veto during the upcoming week. 

The contest over the scope of the Governor's involvement and authority to negotiate the labor contract is perhaps the most significant political issue that's arisen during the Governor's first few months in office. In some ways, it's more symbolically important than the ongoing budget impasse, which is playing out according to an existing process contemplated within the Illinois Constitution. 

This is not to suggest that the Governor's authority and role in the labor contract negotiation is a constitutional matter, but it is an historical prerogative that is currently threatened by the decision of another branch of government to change long-standing rules that affect the powers of the Executive Branch over a matter involving billions in taxpayer dollars.

$754 Million

Decades of growing financial problems are coming to a head for the City of Chicago. Per the Chicago Tribune:

Mayor Rahm Emanuel must come up with at least $754 million in new revenue and budget cuts to balance the city's books, according to preliminary 2016 budget estimates the administration released Friday.

Almost half of this debt $328 million is owed for pensions.

The inclusion of "at least" with the reference to the dollar amount reflects potentially higher costs that would result if Governor Rauner vetoes SB 777. This legislation would provide some immediate financial relief by tacking on an additional 15 years to the police and firefighter pension amortization schedule. Chicago's obligation to these funds would increase by an estimated $221 without the financial relief from the bill.

The Tribune story also mentions the anticipated budget deficit for the following fiscal year:

The $426 million budget gap projected for next year breaks down into three parts: $233 million for day-to-day city operations, a $93 million increase in payments to all four city pension funds and $100 million to pay down debt instead of push it off into the future at higher cost.

Illinois' political culture has grown accustomed to deferring painful financial reforms and kicking the can down the road. Sometimes a problem can become so large that it becomes impossible to avoid the consequences of difficult solutions. The heat generated from the current budget battle in Springfield are the birth pangs one would expect from a serious attempt to address very serious structural problems.

Laurence Msall of the Civic Federation prescribes a general outline of solutions for Chicago that are also relevant to the State of Illinois:

"What this report is a clear indication of is that the City Council and the administration have to move forward on reduced spending, elimination of unnecessary expenditures, greater efficiencies, but also a reality that they are going to need new tax revenue," he said.

Big financial problems require equally big solutions. Piecemeal reforms are no longer viable options.