Budget Cut Protesters Storm Statehouse

An otherwise routine day filled with committee hearings was augmented by noisy protests at the Statehouse. A group known as Action Now filled the Statehouse with chants and boisterous displays of attention-getting as they protested against proposed budget cuts. At one point they breeched protocol in the House Gallery and were summarily removed from the chamber. The picture below is of the group snaking its way from the Statehouse to the Governor's Mansion, where the revelry continued. They created quite the ruckus as they passed my office. At one point the protestors took it upon themselves to block off the intersection. 

Protestors from the group Action Now turn the corner at 5th and Capital on their way to the Governor's Mansion.

A Brief Explanation of the "Empowerment Zone" Debate

To the abject horror of labor unions, Governor Bruce Rauner used his State of the State Address to advocate for the creation of local "empowerment zones." Kentucky is cited as an example of these empowerment, or "right-to-work" zones. 

In Kentucky, several counties have elected to use their home rule powers to become "right-to-work" counties and thereby end mandatory union membership and dues collections within their borders. Workers are permitted to voluntarily join unions in these counties, but they can't be fired or compelled to pay "fair share" dues if they don't join the union. 

Unions believe that federal law only grants states and territories with the authority to pass "right to work" laws. To date, 24 states have opted to pass such laws. But defenders of "right-to-work" contend that the United States Supreme Court has not ruled against local "right-to-work" zones, and that the law is at best favorable, and at worst silent on the matter. Right-to-work supporters are encouraging local counties and municipalities to establish "right-to-work" zones by ordinance in the belief that any eventual litigation will redound in their favor. 

Brace yourself because this fight will be epic.

Unions are concerned that the "right-to-work" concept will reduce union membership and financial muscle. Their concern is justified based upon what has happened in states like Oklahoma, Michigan, and Wisconsin. According to unions, "right-to-work" drives down wages and hurts "working families." But the evidence is mixed. In one sense, average wages are lower in "right-to-work" states. However, proponents of "right-to-work" point out that many "right-to-work" states are in the south, which is less economically developed and generally benefits from a lower cost of living than other regions. Proponents further argue that studies controlling for this regionalism provide evidence that wages are slightly higher in "right-to-work" states. 

But the two central arguments offered in favor of "right-to-work" are constitutional and economic. First, opponents of forced union participation and mandatory dues payments believe that such requirements are a violation of First Amendment free speech rights. The second argument is that "right-to-work" laws generate higher levels of economic activity, business investment, and job creation. Proponents cite statistics as evidence of these trends. 

The theory behind the creation of local "empowerment zones" is that states with pro-union legislatures won't pass "right to work" laws, so the best way to proceed is to bypass the legislatures by passing local ordinances. If businesses begin flocking to the local jurisdictions with investment and jobs, then other local jurisdictions, and eventually the states themselves, will be pressured to enact "right-to-work" laws.

There is a political dimension that goes beyond the economic arguments. Eliminating forced unionization and union dues will weaken what some believe to be the disproportionate amount of power held by public sector unions over Illinois politics. It will also harm the Democratic Party, which has emerged as the primary beneficiary of union money. And that's how a blue state begins to turn purple. That's also why there will be fierce opposition to any efforts to give "right-to-work" a foothold in Illinois. 

These are the general arguments that will be heard over the coming months and, perhaps, years. The outcome is unknown, but in a complete break with some of his avidly pro-union predecessors, Governor Rauner will make sure that the broader debate over "right-to-work" occurs in Illinois. 

Resolving Illinois' Problems Merits An Elevated Debate

There have been a few stories in both mainstream and social media of late about how Governor Rauner is spending more on his staff than did his predecessor. These stories have been used by some to generate friction, and by others to play the political "gotcha" game. In my opinion, some of the Governor's critics that have chosen to try and make an issue out of his decision to acquire and pay for top talent are revealing themselves as petty prognosticators. 

Some of the Governor's opponents are understandably eager to go on the attack and criticize everything he does. These will probably be the same people that relished in accusing the Governor of attiring himself in Carhartt to "mask" that he was an "out-of-touch plutocrat." That was always an infantile line of attack that had nothing to do with policy.

The Governor's opponents will have ample opportunity for criticism in the weeks ahead as he formally introduces a raft of policy proposals to deal with the state's deplorable financial condition. Our financial problems, however, are severe and won't be addressed with half-measures and the tired default to familiar partisan instincts and rhetoric. 

The Governor will propose serious solutions. These solutions won't be popular and will meet with understandable resistance from affected interests. People don't like change, particularly if their ox is being gored. That said, I'm hopeful (perhaps foolishly), that criticism and opposition to the Governor's proposals will be high-minded and serious. The magnitude of our structural budget crisis is serious and, consequently, deserving of a serious and high-minded debate. 

Let's respect the enormity of the issues with which we must grapple. I believe that the media bears a special responsibility to elevate the debate by focusing on the problems and possible solutions rather than the "hand-to-hand combat" stories. This will be a difficult temptation to avoid, but they owe it to their readers to do so. The practitioners of viscious partisanship should be shunned beyond the outskirts of respectability. Serious people and serious arguments, both pro and con, belong at the forefront. 

There will understandably be significant disagreements and counter-arguments over the coming months, but let's not take the intellectually lazy path with shallow and petty criticisms. Illinois' taxpayers deserve better. 

Governor Rauner Foreshadows "State of the State" Speech to Suburban Municipal Officials

I attended the Northwest Municipal Conference (NWMC) Legislative Brunch on January 24. It's an annual event where the suburban council of governments rolls out its legislative priorities to federal and state legislators. This year, Governor Rauner was a featured speaker and delivered a PowerPoint presentation about the challenges confronting the state budget and economy. Apparently his decision to appear at the event came together on Friday. I was able to capture the audio of his 30-minute presentation.


I understand that the Governor has been delivering this presentation at various venues in the run-up to his February 4 "State of the State" address. He discussed cost drivers like state employee health insurance, Medicaid, pensions, and state payroll expenditures relative to employment levels. Issues like outmigration, state mandates, shared revenue, workers' compensation costs, state and local taxation, perceived conflicts of interest between unions and legislators, job growth, and flat wages were also included within the presentation. Give it a listen to get the likely contours of the forthcoming "State of the State" speech.

Rauner Gets Last Word on Quinn Executive Orders

Former Governor Pat Quinn raised eyebrows when he used the remaining hours of his governorship to issue several Executive Orders. Along with a multitude of last-minute appointments to various boards and commissions, his actions struck many as a sign of disrespect and resentment toward his successor. As if to remove all doubt, the former Governor chose not to attend the inauguration of his successor.

Probably the most pointed Executive Order signed by the former Governor required that governors annually disclose detailed income tax information. This action appeared to be a clear shot at Governor Rauner and suggests that Quinn elected to wage his populist, class warfare campaign beyond the election and right up to the close of his governorship. 

It therefore came as no surprise when Governor Rauner undid those last minute Executive Orders on Friday:

Rauner’s executive orders, issued late on a Friday when fewer people are paying attention to the news, would effectively cancel seven edicts Quinn made during his final days as the head of state government.

The tax disclosure requirement was among a number of final jabs Quinn took at Rauner, who the ex-governor frequently criticized for releasing only limited income tax data during the campaign. Rauner has said he has turned over more information than required under law. There is no requirement under law. 

"It is clear that too many of Pat Quinn's actions during his final weeks in office were in an effort to settle political scores and not wholly aimed at serving the public's interest," Rauner spokesman Lance Trover said in a statement. The administration says it will decide on a "case-by-case basis" if any of Quinn's orders may be "re-implemented."
Rauner’s executive order also cancels Quinn’s move to require state contractors to be paid a minimum of $10 an hour, above the current $8.25 minimum wage. Quinn had unsuccessfully pushed for a statewide minimum wage increase, an issue Rauner said he supports only if coupled with buisness-friendly changes such as workers compensation rules. 

Rauner's action would also repeal orders that would have prevented state law enforcement from detaining a person based on immigration status, as well as additional protections for pregnant women in the workplace. But a law the state approved last year aimed at providing protections for women on the job remains on the books.

The former Governor responded to the repeal of his Executive Orders:

“The action of Bruce Rauner today to rescind these, I think, very necessary executive orders for the common good, I think is self-serving and anti-reform, and he ought to be ashamed of himself,” Quinn said.

No love lost there. Note that the former governor didn't include his successor's new title in making reference to him. In any event, the rescinding of the Executive Orders and final comment by the former governor effectively closes the book on the Quinn administration. 

Governor Rauner Grabs the Reins with Executive Orders

It remains to be seen how well Governor Rauner will be able to work with the General Assembly. Illinois' moribund fiscal condition is in need of a course correction, and that won't happen without a series of politically tough votes. Republicans and Democrats will have to cooperate by putting votes on difficult legislation, and Governor Rauner will probably need to be the fulcrum between both parties to make it happen. 

In the meantime, the Governor is using his Executive Order authority to begin shaping policy where he can act alone. He has thus far signed the following three Executive Orders:

Executive Order to Address the State's Fiscal Crisis
This Order directs the state agencies to identify and halt non-essential spending. This includes contracts and grants, with certain allowable exceptions. It also forbids any expenditures tied to supplemental funding. Vehicle purchases and out-of-state travel are also prohibited unless authorized following a review. In-state travel by state agency personnel is restricted and subject to approval. Surplus property must be identified and sold at auction and agencies are encouraged to adopt energy conservation practices to cut costs. 

Per David Ormsby at the Illinois Observer, the Director of the Governor's Office of Management and Budget has issued compliance guidelines for determining appropriate versus prohibited spending with respect to this Executive Order.

Executive Order to Ensure Ethical and Responsive Government
This Order imposes a one-year revolving door ban on lobbying state agencies, restricts gifts to state employees, requires state employees to file a statement of economic interest, and instructs the Governor's Office of Management and Budget (GOMB) to review employment contracts. This includes employment contracts entered into by units of local government, universities, boards, and commissions.

Executive Order Requiring Transparency Within State and Local Government 
This Order requires the posting of all political hires on the Illinois Transparency and Accountability Portal (ITAP) operated by the Department of Central Management Services (CMS). The Order also calls on the state to assist local governments in complying with the employment postings required under the ITAP law (this law was approved a few years ago, but implementation of the system was delayed for some time).

These are important reforms that set a new tone for the state bureaucracy while sending a signal to outside observers that things are changing in Illinois government. The Executive Orders are also a good way to build some momentum toward the ominous negotiations and votes that will be required for the more consequential and structural reforms that lay ahead. 

Rauner Administration Begins to Take Shape

Governor-elect Bruce Rauner will assume office tomorrow and several of his top staff and agency appointments were announced on Saturday. You can view a list of his key staff here and some of his agency/board appointments here.

At least two of his picks have been praised by Democrats: 

Governor-elect Rauner's choice to Chair the Illinois State Board of Education, pastor and former State Senator James Meeks, appears to be consuming most of the press coverage oxygen. Reverend Meeks is an African-American pastor of one of the largest churches in the state, a Rauner supporter, and a well-known advocate for overhauling the public education system. The appointment appears to be raising some eyebrows:

He may be a well-known church leader on the Southside, but that doesn't merit questioning the pick on those grounds. Nor are his views concerning same-sex marriage pertinent to his new job:

Same-sex marriage is the law in Illinois and it's not like former-Senator Meeks is going to use his new position to undermine the law. Governor-elect Rauner has shown no indication that he wants to ignite big debates over social issues. In this respect he's more Mark Kirk than Pat Buchanan. 

Meeks has a public record on education reform and it can't be assumed that he desires to push an agenda that would blur the lines between church and state within the public education system. Nor would I expect that he would tamper with the curriculum to advance his personal viewpoints. 

What is most germane is his reputation as an outspoken critic of Illinois' public school system and the funding inequities believed to financially disadvantage some school districts relative to others. He also supports charter schools, long-derided by teachers' unions. The funding plan supported by former-Senator Meeks is a more appropriate consideration about what his appointment could portend, as indicated by the tweet below:

If there's any doubt about his education-reform bona fides and desire to buck the public education system, this next tweet should cast them aside and provide an indication of why Meeks, in addition to the bipartisan nature of the appointment, was an attractive choice for Governor-elect Rauner and why he may come under attack:

What is Chicago Teacher Solidarity? From it's website:

A diverse coalition of local community organizations, labor activists, parents and students who support the Chicago Teachers Union in their fight for quality education.

There you have it. Meeks is a threat to the status quo, whose defenders will attempt to undermine him every step of the way.