Observations and comments about state government by State Representative Robert W. Pritchard.
News from the State House
September 5, 2012
In this Issue:
· State Credit Rating Downgraded Again
· Pension Solutions Abound
· Gaming Legislation Veto is No Surprise
· Law Explains Driver’s Medical Condition
· Tax Tribunal to Fairly Resolve Disputes
· State Wants to Buy from Small Businesses
· Engaging Students in STEM Careers
· Lehan Drugs Selected Retailer of the Year
State Credit Rating Downgraded Again
It’s hardly news anymore that Illinois has suffered another bond rating reduction. Since 2002, Illinois has suffered 13 rating reductions but 10 of them have occurred since Governor Quinn took office. The ratings reflect the financial condition of the state and downgrades usually increase the interest rates that must be paid when issuing bonds for general operations.
Standard & Poor’s cut Illinois’ general obligation (GO) debt rating on August 29, bringing it in line with Moody’s and Fitch ratings. The New York-based rating firm stated that their action was partly due to inaction by state leaders in solving the state’s unfunded pension liability.
The nonpartisan advocacy group State Budget Solutions now ranks Illinois 46th among the 50 states in terms of debt burden. Illinois’ accumulated debt including formal bond debt and unfunded liabilities such as state pensions totals $271.1 billion.
The Governor’s failure to lead and the spending policies engineered by House Speaker Madigan over the past 30 years can be credited with the huge debt that has been incurred. They are also responsible for the failure to reach much needed pension reforms which would preserve the pension system and fiscal reforms that would lower state debt and taxes.
Pension Solutions Abound
Bond ratings houses and citizens are continuing to talk about the state’s failure to solve its unsustainable pension benefit. The solution is not for the lack of good ideas from legislators but rather the Governor’s inability to lead on the issue and Speaker Madigan’s roadblocks in an effort to maintain political control.
Make no mistake, getting agreement on a pension solution is not easy or it would have been solved decades ago. Nevertheless ideas have been presented by legislators and a number of bills have been introduced that present a smorgasbord of ideas that could be combined in an omnibus bill. I have posted these bills and ideas on my web page (www.PritchardStateRep.com).
What we need is for employees, retirees and legislators–on behalf of taxpayers–to negotiate a solution that is fair and sustainable. It would be nice if the Governor would lead and Speaker Madigan would look at the long-term interests of citizens. Until then, our pension debt grows; our bond ratings fall; and funding for critical programs like education, infrastructure and human services are cut.
Gaming Legislation Veto is No Surprise
The latest effort to expand gambling in Illinois suffered a total veto by the Governor last week. While the legislature passed SB 1849 in hopes of gaining over $1.5 billion in “easy” revenue for much needed projects, not everyone would be a winner. Those who lose will be working to see that a legislative override of the veto does not occur in November.
While the bill adds electronic gaming at horse tracks, allows five new casinos, and permits additional positions at existing casinos; many feel this expanded gambling will just divide current wagering among more establishments. After all, action has been taken recently to attract new gamblers at more convenient venues like internet gambling and video games at local liquor establishments.
The Governor refused to help write the legislation this spring even though he said he had concerns about “gifts” to legislators and gaming oversight of criminals. Perhaps his greater concern is who will be winners in the expansion.
Law Explains Driver’s Medical Condition
Under legislation that I sponsored this spring, and now signed into law, individuals with medical impairments will be able to list those specific conditions on their driver’s license database. The Secretary of State’s office will designate a space on a driver’s license for licensees to note medical conditions and gather that information in their records.
The bill was suggested by people with the medical condition known as Aphasia. Aphasia is an impairment of the ability to use or comprehend words that some police officers have confused for intoxication. The code on the driver’s license would inform police to look at the computer database and consider the medical impairment.
Tax Tribunal to Fairly Resolve Disputes
Legislation enacted by Governor Quinn last week creates an independent tribunal that will resolve certain disputes between taxpayers and the Illinois Department of Revenue (DOR). The Act which takes effect next July replaces the current system where the DOR makes determinations and then sits as judge over complaints.
Taxpayers who wish to protest a tax determination made by the Department of Revenue may file a petition with the Tribunal, which will foster a settlement or other resolution of tax disputes to the extent possible. The Tribunal’s jurisdiction is limited to cases where the amount owed by the taxpayer for the year or audit period exceeds $15,000 before penalties and interest.
State Wants to Buy from Small Businesses
The Department of Central Management Services recently held a workshop in Rockford to explain how small businesses can do business with the State of Illinois. Each year the state buys products and services valued at over $7 billion and many small businesses don’t think they can win a share of that business.
I joined with other area legislators in sponsoring the workshop to explain the purchasing process and a law passed last year that requires the state to make at least 10 percent of purchases from small business. The Small Business Set-Aside Program (SBSP) designates 65 product and service categories that the State will procure from small business, so there’s only competition from other small businesses.
To learn more about this and other programs, visit the website www.Sell2.illinois.gov. You can download the Small Business Application Form.
Engaging Students in STEM Careers
Northern Illinois University was recently the site of a unique collaboration to spark interest in science, technology, engineering and math (STEM) among junior high girls, minorities and those with disabilities. The Public Broadcast System’s (PBS) popular series Design Squad Nation picked NIU as the Illinois site to kickoff its effort because of NIU’s STEM Outreach program and the Illinois Girls Collaborative Project.
I monitored part of the program to better understand these collaborations and how the state might encourage students to pursue careers in these higher paid careers. You can learn more at www.TransportationYOU.org and from NIU’s STEM Outreach office.
For one thing there are lots of groups developing programs, adult training and support. You may be part of a group that could draw upon this collaboration. Second, adults need to expose young people to STEM careers and encourage them. Many students never consider such careers because of the lack of adult support.
For those not familiar, Northern Illinois Universities’ STEM Outreach delivers off-campus programs and on-campus activities designed to increase science, technology, engineering, and mathematics literacy and enthusiasm among elementary and secondary students, their families, and educators. NIU is planning STEMfest 2012 on October 20 at the NIU Convocation Center where there will be hands-on exhibits, activities and competitions.
Lehan Drugs Selected Retailer of the Year
I recently had the opportunity to write a letter in support of Lehan Drugs and the Lehan family as Illinois’ Retailer of the Year. They will be honored at a meeting of the Illinois Retail Merchants Association in Chicago on September 19.
The DeKalb-Sycamore community knows Lehan Drugs that is celebrating 60 years as a family operated small business. The Lehan family has been a shining example of innovation, customer service and community involvement.
In the 1950s Lehan Drugs became one of the first in the nation to offer self-serve pharmacies and in 2009 was honored by the National Alliance of State Pharmacy Associations for its innovation. The family has learned to formulate drugs to provide customers with doctor-ordered medications not readily available from pharmaceutical companies. The small business competes successfully with national companies and continues to be involved in local boards and organizations.
Lee and Sherrill Blankenship of the Village Commons Bookstore, DeKalb, were past recipients of the Illinois Retailer of the Year award.
Be sure to follow my calendar of local events and seminars on my website: www.PritchardStateRep.com
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
Click Here To Submit A News Tip Or Story