Pritchard’s Perspective

Observations and comments about state government by
State Representative Robert W. Pritchard.
December 10, 2012

In this Issue:

· New Pension Plan Emerges

· Budget Override Refused

· Younger Children to be Made Aware of Sexual Abuse

· NIU Huskies Making History

· Equalization Grants Ease Financial Pressure on Colleges

· Quinn’s Assault on Weapons Stopped

· Improving Economy Threatened by Tax Increases

· Come to the Inauguration

Just as the state bird—our cardinal—brings joy to a dreary winter day, my staff Jesse, Shelley, Joyce and I wish this holiday season will provide you with hope, joy and peace. We have appreciated the privilege to represent DeKalb, Ogle and LaSalle Counties for the past nine years and regret losing some of this area in the new district. On behalf of my communication specialist Terry Horstman, I hope the Pritchard Perspective Newsletter has been of assistance to keeping you informed about issues in state government.

The 97th General Assembly returns to Springfield on January 3rd for six more days of session where any number of difficult and controversial issues may be addressed. The Veto Session this month left unresolved pending legislation on such issues as state pension reform, temporary driver’s licenses for undocumented immigrants, legalization of medical marijuana and expansion of gaming. Moving into a new year, fewer votes will be needed to pass such legislation in January.

New Pension Plan Emerges

As Illinois’ leaders remain gridlocked about how to reform and sustain the state’s pension system, a frustrated group of 21 lawmakers held a press conference last Wednesday to introduce a new pension reform bill and show bipartisan support for many of the ideas being discussed.

The sponsors admitted that an actuarial analysis of House Bill 6258 was needed to determine its cost impact which Governor Quinn quickly embraced. The sponsors said the legislation should be viewed as the foundation for a final bill that the legislative leaders would introduce to sustain the pension system, pay the unfunded liability and stabilize the state budget.

HB 6258 was also meant to focus the discussion away from some current proposals to reduce retiree pension benefits and toward options to pay for the unfunded liability without major reductions in other state programs. This is a point that most of those who oppose reform fail to recognize.

I am concerned about the cost shift for annual pension payments to local employers of state workers like school districts, colleges and universities. While this bill provides for a slow cost shift and local responsibility for the pension implications of employee salaries, it could be improved by giving these local employers full state appropriations in a timely manner for funding education, relief from unfunded state mandates and protection from future state-directed pension cost increases.

The plan would not reduce any pension benefits that state employees or retirees have earned but would reduce the cost-of-living adjustment, increase employee pension contributions and raise retirement ages in the future. In addition to teachers, the changes would apply to state government workers, university employees, judges and members of the General Assembly.

While many of the bill’s concepts have been previously introduced by individual legislators, HB 6258 has gained broader bipartisan support for combining ideas, minimizing the impact on retirees, broadening the areas of reform and jump-starting pension reform discussions. The issue must be addressed and before FY2014 budget negotiations begin.

Budget Override Refused

In the final days of the Veto Session, Speaker Madigan refused to allow an override vote on the governor’s prison closures and budget reallocation. Reportedly the votes were not present to sustain an over-ride similar to the Senate which could have kept open the juvenile detention centers at Joliet and Murphysboro, and correctional centers in Dwight and Tamms. Employees at these facilities will continue to be paid as the legal cases that involve closing these facilities make their way through the Illinois court system.

The governor is moving forward with his closure plans and diverting any savings from the closures to support other agencies hit by reductions in their FY13 appropriations from the legislature. Governor Quinn has also begun the process to layoff or transfer unionized personnel that work in these facilities to other places of work which would require their relocation.

An override vote would have further entangled the governor’s troubled case for closing these facilities, and could have been used in settlement negotiations aimed at keeping one or more of them open permanently.

The final action on all of these closures remains subject to the continued oversight authority of labor arbitrators and ongoing labor litigation.

Younger Children to be Made Aware of Sexual Abuse

Currently, middle and high school students receive instruction in identifying and reporting sexual abuse. Legislation passed out of the House last week requiring age appropriate instruction about sexual abuse also be taught in kindergarten through 5th grade.

HB 6193 was the result of a campaign by Erin Merryn who as a child was sexually abused by family members and didn’t understand how to report it. In an emotion filled committee hearing, Merryn explained how she was abused, made to feel guilty and failed to report the abuse. She said children are taught in school what to do in a fire or natural disaster but not about how to react to sexual abuse.

Material about sexual abuse is readily available so that the cost for adding this topic to school curriculum will be minimal. Teachers will be able to determine how to provide the instruction to young children: about who they can go to and talk with if they are victims of abuse. The Senate is expected to vote on the bill before January 8th.

NIU Huskies Making History

Come January 1st, the NIU Huskies football team will become the first team in the history of the Mid-American Conference to earn a berth in one of college football’s most prestigious bowl games, the Orange Bowl. In honor of this historic achievement, a number of NIU alumni, fans and I introduced House Resolution 1333 honoring the NIU Huskies for this incredible achievement.

By finishing 15th in the final BCS standings, the Huskies have a date in Miami on New Year’s Day where they will face the Florida State Seminoles. The Orange Bowl marks the fifth bowl appearance for NIU in the past seven years. The Huskies won their second MAC championship in double overtime over Kent State this year, finishing with a 21-2 record since last October 2nd, the best in the country.

Lost amongst all the hoopla, however, is the fact that of the 70 teams participating in bowls this year, NIU is ranked 4th in student athlete academic progress rates (first among BCS bowl teams) and 10th in graduation success rates (second among BCS bowl teams).

At 83 percent, Northern Illinois’ latest overall graduation success rate–which includes student-athletes who entered NIU between 2002 and 2006–is the highest in school history. Northern Illinois ranks second in the Mid-American Conference in GSR, behind Miami (Ohio).

Let us not only be proud for the achievements these fine young men have incurred on the field, let us be equally proud of their academic accomplishments and the priority NIU places of academic progress for its athletes. This is a great team to represent Illinois in football bowl competition.

Equalization Grants Ease Financial Pressure on Colleges

Legislation was passed and sent to the governor last week to take some of the pressure off of colleges to increase tuition and fees. The Illinois community college system is funded through student tuition, property taxes and state appropriations. Colleges without a strong local tax base qualify for an equalization grant from the state if they set tuition and fees at 85 percent of the statewide average.

Over the past decade as state funding for community colleges has declined, some colleges increased student tuition and fees which forced other colleges in low property value areas to increase their student charges just to meet the 85 percent target.

HB 1864 lowered the goal for tuition and fees to 70 percent of the statewide average to qualify for the property tax equalization grants. For colleges in our area, this funding has become critical. Last year Kishwaukee College received $2.28 million; Rock Valley received $1.42; and Waubonsee College received $50,000 from the equalization grants.

Quinn’s Assault on Weapons Stopped

The legislature voted to override the governor’s changes to SB 681 which would have banded so-called assault weapons. Even those who oppose the possession of guns supported the override since the governor overstepped his constitutional limitations by changing the intent of the bill.

The original bill as passed both chambers will now take effect making it legal to purchase ammunition by mail from vendors based in-the-state. Previously, only mail order purchases from out-of-state vendors were permitted.

Improving Economy Threatened by Tax Increases

There are several encouraging signs that the national economy is improving. The Illinois Commission on Government Forecasting and Accountability (COGFA) in its monthly briefing sited growth in home sales and housing starts, lower consumer debt and higher business profits.

Home sales nationally are up 2.1 percent in October and were up 10.9 percent from a year ago. Housing starts rose 28 percent in October compared to a year earlier. Meanwhile consumer debt and outstanding mortgages have been dropping which puts consumers–the largest spending sector in the economy–in a better position to expand purchases.

Businesses have been cutting costs, greatly increasing profits and building cash reserves. As a result, many states have seen natural revenue growth from existing taxes and improved fiscal positions.

COGFA warns, however, that the pending federal tax increases and spending cuts resulting from the “fiscal cliff” agreement could sour the economy and create another recession just as occurred in 1933 after the Great Depression. Most attention for resolving our federal fiscal deficit has centered upon raising taxes on the wealthy which, according to the agency, would barely put a dent in the deficit.

Illinois should pay close attention to this warning against tax increases in our current economy. There are numerous groups supporting various tax and fee increases, and others promoting a progressive income tax in Illinois. Such solutions would constrict spending, natural state revenue growth and our economic recovery.

Come to the Inauguration

If you would like to be part of history as the 98th General Assembly takes its oath of office, I invite you to join me on January 9th in Springfield. The ceremony begins at noon but there will be receptions in the morning, tours of the capitol, a private lunch, and opportunity to visit the Lincoln Museum.

Contact my office for details and to reserve your seat. There will be a lot to see and experience.

Until my next newsletter, have a Merry Christmas and happy holidays.