Posts Tagged ‘illinois politics’

The Pritzker disaster in Illinois

Posted: May 10, 2020 by John Ruberry in business, culture, economy, News/opinion, politics
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Apple River Fort State Historic Site last month in Elizabeth, Illinois, located in a county that has 18 reported cases of COVID-19 as of May 10, 2020.

By John Ruberry

Illinois has the wrong governor at the wrong time. 

Oh, I’m not talking about the political positions of Chicago Democrat J.B. Pritzker, the billionaire who was elected governor in 2018. 

Let’s first discuss how he was elected. Largely because of support of unions, who probably fell in love with his wallet, as well as the tacit support of the most powerful politician in Illinois, longtime state House speaker Michael Madigan, Pritzker won the Democratic gubernatorial primary. That’s quite ironic as the Pritzker family has had a troubled relationship with organized labor, starting with the Pritzker-owned Hyatt hotel chain. 

Pritzker largely self-funded his campaign. So did his hapless general election opponent, multi-millionaire Bruce Rauner. The one-term Republican achieved nothing as governor, other than get bested by Boss Madigan, the mother hen of Illinois’ pension bomb. 

Illinois’ shelter-in-place order in response to the coronavirus was eased a bit earlier this month. Golf courses, those germ cesspools, are now open. Dine-in restaurants, health clubs, hair salons and the like are closed. Nearly one million Illinoisans, including my wife and daughter, are newly out of work. 

When things get back to what we might call normal, many of businesses won’t be here anymore. Pritzker is a trust fund baby who has never had to worry about economic survival. I’m sure he’s had a few setbacks, but he could always reach into that perpetually-full cookie jar of a trust fund or his accounts in the Grand Cayman Islands. Contrast that situation to the husband and wife who met while working as servers at a restaurant twenty years ago, then saved their money and took out a second mortgage on their home to open their own restaurant. They’ve laid off their servers and bussers, and only half of their cooks kept their jobs. Revenue has plummeted. Taking a third mortgage out on their home to bail out their restaurant isn’t an option. So their dream business, their livelihood that supported children may have only one destiny. Closing down. And then they’ll have no choice but to declare bankruptcy. 

Pritzker doesn’t get it. 

Since the governor issued his shelter-in-place order nearly two months ago most state offices were shuttered. Yet every state employee is being paid. Let’s zoom in on Illinois’ secretary of state office, which is mainly what other places call the DMV. Driver’s licenses aren’t being issued or renewed, the same goes with license plates, unless, with the latter, you are buying a car as most car dealers in Illinois have the ability to provide at the very least temporary state tags. 

Why haven’t state employees like these been laid off? Union rules just might prohibit that but we are told by Pritzker that Illinois is facing an emergency. I’m sure if he wanted to he’d find a state law to justify layoffs. But Pritzker couldn’t simply buy the governor’s office two years ago, he needed votes to win and unions supply lots of voters. And Pritzker, who is not the most dynamic campaigner–he comes across as an arrogant jerk because he is one–will need labor support again if he chooses to run for reelection. 

Sales tax revenue is of course way down in Illinois. Because of that and the state’s mountain of unpaid bills and its appallingly-underfunded public worker pension plans, last month Fitch lowered Illinois’ bond to one level above junk. 

Unlike its governor, Illinois has no trust fund to bail it out nor does it have bank accounts in the Grand Caymans. Courtesy of Boss Madigan Illinois hasn’t had a rainy day fund for years. 

Pritzker is facing several lawsuits challenging his shelter-in-place order. But his wife violated that order by leaving the state for the refuge of their Florida equestrian estate, in the manner of a medieval royal escaping a plague. 

It’s good to be king. It’s better to be a billionaire living off a trust fund who can use that cash to be elected governor and then lecture people like me as to how I should live my life. He’s been doing so in his daily press briefings on live television that pre-empt talk shows and soap operas. What fun! The Great Oz has spoken!

Rural Illinois has been particularly devastated by Pritzker’s shutdown. Many Illinois counties have fewer than ten reported cases of COVID-19. Three of them have none. 

With great fanfare and expense–$65 million–Pritzker transformed Chicago’s cavernous McCormick Place Convention Center into a hospital because he told us our existing hospitals would be overwhelmed by the coronavirus and there’d be no more hospital beds. After treating 37 patients the McCormick Place hospital closed down. Pritzker took bad advice from so-called experts.

Whether the shelter-in-place order in Illinois and other states worked–or perhaps it was never needed–the lockdowns need to end, with exceptions such as preventing visitors at places with vulnerable people, such as nursing homes. Densely populated cities such as New York and Boston–but not Chicago–probably need to keep up additional protections against COVID-19.

As I wrote a few weeks ago here, a new epidemic is coming. Perhaps it’s here already. One consisting of addiction, spouse and child abuse, and suicide. Economic hardship often brings out the worst in people. 

John Ruberry regularly blogs at Marathon Pundit.

Illinois should put itself under receivership over pensions

Posted: April 19, 2020 by John Ruberry in economy, News/opinion, politics, Uncategorized
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Blogger two years ago

By John Ruberry

“As a result, Illinois government is a massive retirement system that, during work hours, also offers some services.” Chicago Tribune Editorial Board in 2016.

“You never let a serious crisis go to waste.” Rahm Emanuel in 2009.

Last week the president of the Illinois state Senate, Don Harmon (D-Oak Park), sent a letter the state congressional caucus, a gerrymandered lot–more on that latter–asking for $41 billion in aid in response to the COVID-19 outbreak.

The devil is in the details–Illinois is a hellish place—and in that letter from Harmon is a request of $10 billion to fund its woefully-underfinanced public pension plans.

Illinois’ pension crisis goes back decades. In 1989 Governor Jim Thompson, a Republican, signed into law an annual compounded three-percent cost-of-living-adjustment for the state’s public pensioners. But the funding wasn’t there. His successor, Jim Edgar, another Republican, seemingly placed a fix into the system in 1994, “the Edgar ramp,” which started with low payments for the 15 years of his plan. But by that time, when the “ramp” was to kick in, Great Recession arrived. And there were “pension contribution holidays” before then. When the 2008 economic collapse hit Rod Blagojevich, who was as bad as math as Edgar and Thompson, was governor.

In the early 1990s pension payments consumed four percent of the Illinois budget–now it’s 25 percent. The state-controlled public pension plans are only about 30 percent funded.

All that time–except for two years–powerful Chicago Democrat, Michael Madigan, has been speaker of the state House.

According to the Illinois Policy Institute, 19,000 state pensioners collect more than $100,000 annually. On average these pensioners paid a paltry $160,000 into their retirement plans. What a great deal!

New Jersey and Kentucky have public pension funding issues that are as bad, or perhaps slightly worse, than that of Illinois. Will they be asking for pension bailouts next?

Cutting the three-percent COLA has been tried–it was ruled unconstitutional in a unanimous decision by the Illinois Supreme Court because of the pension guarantee clause in the state constitution. Repealing that clause is the smart thing to do but it’s a politically tall hurdle. Such an amendment would likely have to pass both chambers of the General Assembly. Thanks to Madigan, a skilled gerrymanderer who is also the chairman of the state Democratic Party, there are Dem supermajorities in both chambers. Two attempts by petition to effectively ban gerrymandering by way of a constitutional amendment was struck down in court. Allies of Madigan were behind the anti-Fair Map suits. The petition process to amend the Illinois constitution is deeply flawed. 

The organized labor wing of the Democratic Party, the public sector unions, won’t remain quiet if pensions are challenged. Hey there unions, you contributed to this problem too. In 2005 most public service unions signed on to that year’s pension holiday.

Last week Fitch lowered its bond rating for Illinois to BBB- with a negative outlook. That’s one level above junk.

I’m against an Illinois pension bailout by the federal government. For the most part. But if such aid comes in the form of an International Monetary Fund-style rescue package with conditions that Illinois cleans its fiscal house, such as dropping the 3-percent COLA and taking aim at the top pension earners, those six-figure retirees, I’m willing to listen. 

But receivership is best. Okay, let me dream a bit. As Chicago architect Daniel Burnham said a century ago, “Make no little plans; they have no magic to stir men’s blood.” I know, states are viewed as sovereign entities and cannot, as Detroit did in 2013, declare bankruptcy. But what if Illinois agrees to a strings-attached receivership deal? An emergency manager can be appointed. Pritzker, or whoever is governor if receivership comes about, can still handle the ceremonial stuff, such as ribbon cutting for a new bridge and placing bets with other governors when Chicago sports teams are playing for a league championship.

Oh, I’m thinking loans from the feds, not handouts.

As badly funded as Illinois’ pension plans are, many local government pension systems are in worse shape. Illinois municipalities and government agencies, unlike those in Michigan, cannot do so under current state law. That needs to change too.

On a personal note, several friends and relatives of mine are collecting state pensions. Money that was taken from their checks every two weeks for their retirement was instead spent on lord-knows-what. They deserve to be angry and that fury needs to be directed at every Illinois governor from Thompson through Blagojevich. And of course at the Where’s Waldo of Illinois failure, Boss Michael Madigan. He deserves the most rage.

Let me be clear: I don’t take my pension reform views lightly.

Prior to Harmon’s bailout request, the latest pension fix idea was a constitutional amendment to eliminate the Illinois flat income tax guarantee and replace it with a graduated one. That amendment will be presented to Prairie State voters in November. My guess is that it will fail. And even if the graduated income tax amendment passes, the additional revenue won’t be enough. Illinois, which has had negative population growth for six straight years, can’t tax its way of the mess.

John Ruberry regularly blogs from Illinois at Marathon Pundit. 

Bloodletting the American economy

Posted: April 12, 2020 by John Ruberry in business, culture, economy, News/opinion, politics, Uncomfortable Truths
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By John Ruberry

I am living in the third week of Illinois’ shelter-in-place order in response to the COVID-19 outbreak. The streets are quiet, the parking lots in many retail spots are either empty, if it’s a mall, or less crowded if that shopping area has a grocery store.

At home there are three of us. I’m the only one with a job. I’m a commission sales person but income is down. Mrs. Marathon Pundit, after getting laid off a month ago, drove Uber until the shelter-in-place order was put in place on March 21. She filed for unemployment for her first time the following week. Little Marathon Pundit’s employer shut down when the shelter-in-place order went into effect. She was paid until she was informed by a letter yesterday that she was furloughed–then she promptly filed a jobless claim. Hundreds of thousands of Illinoisans have done the same recently.

We are holding up okay. We are healthy and not suffering from anxiety. I’ll have more on mental health later.

As of Easter morning there have been nearly 20,000 confirmed novel coronavirus in the Land of Lincoln with 677 deaths. Each person was loved and will be missed. Each death is a tragedy.

Yet most of the COVID-19 fatalities already had illnesses such as cancer, heart disease, or diabetes. Or they suffered from unhealthy underlying factors such as high blood pressure and obesity. Or they smoked. Let me repeat, each death is a tragedy.

Two weeks ago in this space I wrote about what I still believe is an overreach in Chicago in response to coronavirus. Mayor Lori Lightfoot, among other things, has closed Chicago’s sprawling lakefront to even solitary walkers, runners, and cyclists. Barbershops and hair salons, along with many other businesses, have been viewed as non-essential by Governor JB Pritzker, although that didn’t stop Lightfoot from getting her  hair done.

But Lightfoot’s reaction is mild compared to what is going on in a nearby state, Michigan. Governor Gretchen Whitmer is a Democrat like Lightfoot and Pritzker. While she hasn’t run out of things to ban or shutter, Whitmer, who is supposedly on Joe Biden’s shortlist of running mates, might reach that millstone.

Travel between homes–even walking across the street–is banned in the Great Lakes State, unless it involves checking on someone’s health. Stores deemed essential are open, but in a bizarre overreach, garden center sections in those open retail outlets are cordoned off, including seed displays. Gardening, generally a solitary pursuit, is a fabulous mental health salve.

Yes, Michigan has one of the highest coronavirus rates in the nation. Cases are concentrated in the Detroit area, which by all accounts has disproportionately more residents suffering from the underlying health issues I mentioned earlier.

There is speculation over a second wave of COVID-19 coming later this year. If that’s the case in between there will be a mental health crisis. Joblessness and money troubles are a reliable predictor of suicides. 

Not every family is a happy one. United Nations Secretary-General António Guterres has already decried the “horrifying global surge in domestic violence” now that much of the planet is enduring a lockdown. Alcohol sales are up since the shelter-in-place orders began. Will this lead to a higher rate of alcoholism? Will problem drinkers who kicked the habit suffer a relapse? Will there be a hike in narcotics abuse?

Liquor stores are open in everywhere where they were before the pandemic–I’m not calling for their closure. In Michigan you can buy booze and visit a marijuana dispensary. But stay away from that seed aisle at the local big box store! Governor Gretchen Whitless is watching!

https://twitter.com/LeeChatfield/status/1248976304155869190
Lee Chatfield, a Republican, is the speaker of the Michigan House.

Flint, which is no stranger to economic turmoil, issued a 9am-6pm curfew as long as Whitmer’s shelter-in-place order is effect. Violators face up to $2,000 in fines and six months in jail. Even the ACLU is rolling its eyes over the Flint curfew. I’ve been to Flint. Take my word for it, most residents of the Vehicle City don’t have $2,000 lying around. 

Two hundred years ago  bloodletting was viewed by most physicians as a valid and effective medical treatment for a variety of illnesses. George Washington, a believer in bloodletting, was arguably killed by his doctor who bled him as he was suffering from a throat infection. That cure for Washington and countless others was worse than the disease. 

Now I fear we are bloodletting the American economy. I fear the wide-ranging shelter-in-place orders could trigger an economic depression with the horrible health repercussions I described above. And more. 

President Donald Trump is right. We need to re-open the American economy as soon as possible. 

Our collective health depends on it. 

John Ruberry regularly blogs at Marathon Pundit.

Lockdown in Illinois goes from smiling faces to a preview of tyranny

Posted: March 29, 2020 by John Ruberry in business, culture, economy, News/opinion, politics
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Blogger running on a Cook County Forest Preserve trail earlier this month

By John Ruberry

Illinois is now in its eighth day of lockdown as part of Governor JB Pritzker’s shelter-in-place order because of the COVID-19 outbreak.

Life is anything but normal here.

There’s not much good to report.

On the other hand a few days ago I planned to compose a feel-good entry focusing on the the few good things to report on from where I live in Morton Grove, Illinois about coronavirus. But things quickly turned south. And now we just might have a preview of the damage an overreaching government that claims to be looking out for us can inflict.

I’m a runner–and I’ve not let the lockdown cut back on my hobby. (Oh, Peter Da Tech Guy has been begging me to write a running post for a while–here you go!) After all outdoor activity, including running, is allowed according to Pritzker’s shelter-in-place order, as long as I practice safe-distancing, which I do. During my runs through the Cook County Forest Preserve trails near my home, I’ve seen more people on the paths, including entire families, since the issue of the shelter-in-place order. When the coronavirus crisis fades away, some of those folks might pick up a new appreciation of nature and become physical fitness enthusiasts as well.

I’ve also seen more people smiling at me and waving during my runts. And I reciprocate.

That was through Wednesday.

In Chicago in the early part of last week, particularly on the lakefront, the parks and paths were packed with runners, walkers, and cyclists. There were picnics and barbecues and basketball games. Which caused Chicago’s mayor, Lori Lightfoot, to freak out.

“You cannot go on long bike rides,” the Democrat scolded. “Playgrounds are shut down. You must abide by the order. Outside, is for a brief respite, not for 5Ks. I can’t emphasize enough that we abide the rules.”

“If we have to … we will be forced to shut down parks and the entire lakefront,” the mayor said that day.

And so she did. In a condescending press conference the following day, Mayor Tenderfoot announced, while upping her warning that training for marathons was also not allowed on the lakefront during the lockdown, that all Chicago parks along the lakefront, along with the 606 Trail on the North Side, were closed and would be barricaded. Violators of Lightfoot’s order face a citation and a $500 fine.

Okay, I get it. COVID-19 can be deadly. Playing close contact sports such as basketball is stupid. But cooping people up in home will be psychologically demanding. And what will happen if the internet in Chicago slows down to a trickle because of an overwhelming demand in residential areas?

Will spouse abuse instances spike? And child abuse?

And it’s not just a Chicago issue in Illinois. At a large park in Skokie, the town just east of me, a friend of my daughter’s was playing tennis with her boyfriend. Someone living next to the park called the police, they them to told stop playing and leave. The cops also cleared out the rest of park. There were no gatherings there of more than ten people. Just a few people here and there, I was told.

On Friday Lightfoot encouraged people to call the non-emergency 311 line to inform on businesses that are deemed non-essential that remain open. Employees can rat out their bosses. Violators face up to a $10,000 fine.

What we are witnessing in Chicago is a preview of life under a Green New Deal tyranny-of-the-enlightened-few led by know-it-alls like Lightfoot. Because of “climate change,” the city’s lakefront could be closed for weeks during the summer. After all, many people drive to the lakefront parks and the adjoining neighborhoods.

On a national basis industries such as travel could be altered and possibly destroyed. Travel by jet spread the virus. So let’s shrink the airline industry, which produces greenhouse gases. What about the jobless pilots, machinists, and the flight attendants? Force them to attend a green jobs training program doubling as a re-education camp.

If the government goes after jet travel will the automotive industry be next? What about recreational boating? Why not shutter restaurants that serve food deemed as unhealthy? Who hasn’t heard obesity called an epidemic?

Does a family of four really need a huge house? Do you really need to take an out-of-state vacation?

Presumably in a Green New Deal America the running trails near my home will still be open and I can train for a marathon if I choose. But I’ll expect to see fewer smiling faces there.

Yes, I’m taking COVID-19 seriously. I’m washing my hands and drowning them in hand-sanitizer. I’m keeping safe distances.

John Ruberry regularly blogs at Marathon Pundit.

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