Observations and comments about state government by State Representative Robert W. Pritchard.
In This Issue:
· Electric Modernization Approved
· Regional Educators Still Unfunded
· Students Rally in Support of College Grants
· Bill Seeks to End Pension Abuse by Union Leaders
· Legislature Returns to Springfield November 8
News from the State House
Electric Modernization Approved
One of the more controversial and difficult votes last week involved authorization of the electric grid modernization– SB1652 and HB3036. Changes in the original legislation during the spring session and a second bill with minor improvements last week made it difficult for many citizens to follow what was being debated.
Then too, a few groups and the Governor fanned fears that included higher electric costs, loss of regulatory oversight of the utilities, unreasonable profits and erosion of individual freedoms. Those of us in the General Assembly did not take these fears lightly. As consumers and taxpayers ourselves, we carefully considered the full range of testimony in support and opposition to the bill. I spent considerable time looking at the new technology, examining the trial program in Oak Park and listening to details about the bills.
A large majority of legislators concluded the benefits far outweighed any potential drawbacks. In short, smart grid technology and infrastructure upgrades will improve operating efficiencies, lead to fewer and shorter power interruptions, set tougher performance standards for the utilities and provide tools for customers to help reduce their power usage and electric service costs.
The current electric utility grid in Illinois relies on outdated technology created in the 1920’s. $1.5 billion of the modernization bill will be directed to inspecting every foot of the current electric grid and replacing poles, wires, transformers and underground cable as necessary. For our area, nearly $33 million has been earmarked for such improvements.
Other provisions of the bill include 2,000 new jobs, annual review of the utility’s costs and performance, a lower cap than at present on utility return on equity, up to a 3 percent charge per month for the modernization but customers are estimated to save at least that amount.
The trailer bill added $60 million in funds to help low income families, senior citizens and disabled veterans with their utilities. It also lowered the cap on the utility’s return on equity to 9.7 percent from the current 10.5 percent which is also the national average.
I understand and respect the concerns of those who opposed the passage of this legislation. I hope this information helps clarify why we felt this legislation was in the best long-term interest of our state.
Regional Educators Still Unfunded
Last week the House rejected a plan put forth by the Governor to restore funding for regional school superintendents. You may recall that the Governor vetoed funding for the regional superintendents (ROE) and some of their services, and suggested they be paid from local funds. As a result many ROEs have not been paid a salary since July 1.
Speaker Madigan will not allow the legislature to override the Governor’s veto so HB3847 was introduced to provide funding for the ROEs. It would obligate about $14 million from the Corporate Personal Property Replacement Tax (CPPRT) Fund which was created to fund local units of government. Supplemental compensation was also included for county clerks, county recorders, and chief election clerks.
Local officials have been objecting to the state dipping into their fund, especially at a time they are struggling to balance local budgets and provide essential services. While the ROE funding would amount to less than one-tenth of a percent of the $1.2 billion CPPRT fund, it continues a trend of state cost shifting to the local level.
This crisis and the hardship it creates for ROEs and their families is totally unnecessary. The Governor should have developed a plan for either eliminating the ROE position or funding it in another way during the spring legislative session.
Students Rally in Support of College Grants
Students from several universities rallied in Springfield last week to protest the potential cuts to the Monetary Award Program (MAP). The Northern Illinois University Student Senate brought 65 students to visit with me and other legislators to share the importance of the grants to their education.
By extending the MAP application deadline an extra week last spring, the Governor created a $33.5 million commitment to students beyond available MAP funding. Students have received a letter stating funding may be cut next semester if the legislature doesn’t approve a supplemental appropriation.
The House Higher Education Appropriation Committee is currently considering using authorized expenditures from FY2011 to pay the shortfall. Each year the legislature appropriates $400 million for low income students to attend college.
The students gained a real insight into the workings of the legislature and how funding for higher education has been reduced over the last decade. Delayed state payments to providers create further financial stress for universities. As a result, student tuition and fees have risen to the point many students can no longer afford to attend college without financial grants like MAP.
Bill Seeks to End Pension Abuse by Union Leaders
The House passed legislation last week to stop future labor officials from collecting city and union pensions simultaneously—often called “double-dipping.” Chicago media uncovered instances of the practice and prompted the legislation.
In addition, the legislation (HB3813) seeks to crack down on the ability of labor leaders to base their public pensions on their union salary. The measure also would put in place stricter fraud provisions requiring workers employed at public pension systems to report potential wrongdoing to top officials or prosecutors.
The Legislature returns to Springfield on November 8 for the final 3 days of the fall Veto Session. Among the issues that could be debated are: pension reform, gambling expansion, tax relief for large corporations threatening to leave the state, and budget reallocations.
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
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