Posts Tagged ‘pensions’

Madigan graphic courtesy of the Illinois Policy Institute

By John Ruberry

Had this event not occurred on the same day President Donald J. Trump was impeached a second time, the failure of Michael Madigan to win a 19th term as speaker of the Illinois House would have made national news. The luck of the Irish was somehow with him on his worst day in his 52 years in politics.

There is much to criticize with Madigan. While the one sentence summary of the Chicago Democrat’s career might be “Longest statehouse speaker tenure in American history,” it instead needs to be, “The man who destroyed Illinois.”

Here’s a graph created by the Illinois Policy Institute–which has been on the forefront of exposing Madigan to the masses for a decade–that shows the decline of Illinois’ credit rating. And the rating began its descent early in Madigan’s tenure as speaker. To be fair, it was Gov. Jim Thompson, a Republican, who in 1989 signed into law the annual compounded three-percent cost-of-living public pension raise for retired state employees, but that bill emerged from Madigan’s House. Nearly all state workers are members of public-sector unions, those unions have been an important cog for the Madigan Machine. Other GOP governors share some of the blame for the Illinois pension bomb. But for all but two years since 1983, Madigan was speaker and he had his hands on every budget since then. 

Illlinois’ credit rating now hovers slightly over junk status.

The Prairie State has lost population for seven straight years. People have wised up. After the 2020 reapportionment Illinois will once again lose a congressional district. Perhaps two.

Madigan’s political mentor was the first Mayor Daley, Richard J, the legendary boss of Chicago. Madigan was America’s last machine boss. As mayor Daley was also chairman of Cook County Democratic Party, since 1998 Madigan has been chairman of state party, a post that he, at least for now, retains. Like Daley, Madigan would reward his political supporters and their relatives with jobs, usually public-sector jobs. But recent scandals involving private-sector entities, including the Chicago area’s electrical utility, Commonwealth Edison, betrayed the burden of the pension bomb that is eating away at Illinois government. Allegedly ComEd was handing out jobs, as lowly as meter readers, to Madigan loyalists. The ComEd scandal has produced several indictments, including the company’s former CEO and some Madigan loyalists. A separate scandal centered around red-light cameras has bagged other Madigan cronies. These political brushfires, on top of allegations of sexual harrassment against a member of Madigan’s inner circle, finally made the Madigan name toxic. 

The result in 2020 was better-than expected results for the anemic Illinois Republican Party. Best of all, the so-called Fair Tax Amendment, would have replaced Illinois’ flat income tax with a graduated one, was resoundingly defeated. A majority of Illinoisans finally ascertained, as I quipped at the time, that if Illinois was given an unlimited budget, politicians here would still exceed it. 

Another sin against democracy committed by Madigan is gerrymandered legislative districts, unintended artwork that would make Jackson Pollock or Pablo Picasso proud. “The state’s legislative map looks like a Rorschach test on steroids,” Robert Reed wrote in 2019 for Chicago Magazine, “with districts of all squiggly sizes and shapes.” With a few exceptions, such as university towns, Republicans dominate downstate Illinois in gubernatorial and presidential races, but there are still plenty of central and Illinois Democratic members of the General Assembly. That is the power of Madigan’s gerrymandering. It also discourages challengers to the status quo; according to the Center Square, last year 44 percent of Illinois legislative races were uncontested. Why run? Because in most districts in Illinois the politicians choose their voters, not the other way around.

Illinoisans would have been better served if there was not a Madigan monoculture in power for years in Springfield.

Groups such as the Better Government Association of Illinois and the League of Women Voters have long called for a Fair Map Amendement, taking away the power of decennial legislative remapping away from the General Assembly and putting a non-partisan panel in charge of the task instead. Twice in the prior decade hundreds of thousands of signatures were collected to put such an amendment on the ballot for voters to decide the issue, twice a lawyer with ties to Madigan successfully sued to keep it off. Last year, for the first time ever, a state Supreme Court justice, Democrat Thomas Kilbride, who represented a downstate district, failed to win retention. His vote against the Fair Map Amendment was one of the issues that galvanized opposition from voters.

Illinois’ Democratic governor, J.B. Pritzker, finally the state’s most powerful politician now that Madigan is no longer speaker, has vowed only to sign only a fair map into law. 

Don’t hold your breath on that one.

Madigan’s successor is Chris Welch, a suburban Chicagoan who was once a member of the Madigan Machine. He’ll be the Land of Lincoln’s first black speaker. But there is already a cloud over him. In 2002 he allegedly slammed the head of his girfriend repeatedly on to a kitchen countertop. Eight years later another woman claimed that she lost her job at a high school because Welch, then a school board president, broke up with her. 

Still there is reason to have at least a glimmer for hope in Illinois. But barring a change in federal law that would allow states to declare bankruptcy, Illinois will remain in its financial sewer for many years. A different amendment to the Illinois constitution, one that will allow pension reform and remove the pension guarantee clause, is desperetely needed. 

John Ruberry regularly blogs in Illinois at Marathon Pundit.

By John Ruberry

Illinois conservatives have reason to feel pretty good after Election Day. Pretty good but not great. Still that’s a rarity in this state that has been trending blue for decades, much of the reason for that is the tortured gerrymandering practiced by Boss Michael Madigan, the longtime state House speaker and Democratic Party chairman. 

The Land of Lincoln’s feckless GOP, which local radio host Dan Proft calls “Stockholm Syndrome Republicans,” has contributed to the decline, doesn’t deserve much credit for this bit of success. 

The big win for conseratives–really, for all Illinoisans–was the resounding defeat to the so-called Fair Tax Amendment, which would have replaced the state’s flat-rate income tax with graduated rates. Sixty percent of voters neeeded to approve the amendment to the state consitution–of 50 percent of all those voting. Despite big votes for Joe Biden and Dick Durbin, Illinois’ senior Democratic US senator, only 45 percent of voters supported the Fair Tax. 

Credit for the victory for keeping the flat tax goes of course to Prairie State voters, but also for the libertarian think tank, the Illinois Policy Institute, as well as Illinois’ richest resident, Ken Griffin, who funded highly-effective television ads against the amendment. Slow down liberals, if you think a billionaire “bought” the win against the Unfair Tax Amendment. Illinois’ billionaire Democratic governor, J.B. Pritzker, spent $58 million of his own money on the campaign for the amendment. Griffin spent $53 million opposing it. 

Illinois doesn’t tax retirement income–all 32 states with progressive tax rates tax pensions. The anti-Fair Tax ads said that retirement income wouldn’t be untouchable, and an admission, quickly retracted, by state treasurer Michael Frerichs, that the Fair Tax would be a first step to taxing pensions aided the argument of the “antis.”

This summer a federal investigation of rank-and-file Illinois political corruption implicated Boss Madigan. The speaker has not been charged. But the stench from the ongoing investigation served as a potent reminder that Illinois isn’t just mismanaged, it’s crooked. Clearly Illinois kleptocrats don’t need more money to squander and steal, many voters–including some Democrats–reasoned. 

Illinois hasn’t had a balanced budget since 2001, when there was a GOP majority in the state Senate and a Republican in the governor’s mansion, despite a constitutional requirment for a balanced budget. The current budget has a $7.4 billion deficit. That GOP governor in ’01, by the way, was George Ryan, who later served time in federal prison for corruption. 

For many good reasons Illinoisans don’t trust state government. 

Illinois is still counting ballots. I can mail a letter from Illinois that is addressed to someone in Los Angeles and it will probably arrive there in three business days. But my state is allowing mail-in ballots to be counted if they arrive at one of Illinois 102 county clerk offices by November 17. So a few races are yet to be called. While it appears the Democrats will pick up a seat in the state Senate, the Republicans will probably gain two seats in the state House of Representatives. The Dems will maintain supermajorites in both chambers of the General Assembly. But there is a budding revolt by Democrats in the House against Madigan because of the election results. Pritzker and Durbin have called for Madigan to resign his chairmanship of the state Democratic Party. A few brave Democrats in the House have called on this term as speaker for Madigan, who has held the gavel since 1983 except for two years, to be his last. Illinois’ other US senator, Tammy Duckworth, also a Democrat, has called for Madigan to resign his speakership as well as the party chairmanship.

A weaker Madigan–and a specially a Democratic Party without him in leadership posts–means a weaker Democratic Party, which is why the Boss still has support. That’s good news for Illinois conservatives. But the state Republican Party still might find a way to squander this gift.

Other pretty good news for Illinois conservatives is that Donald Trump bettered his performance over his 2016 effort by two percentage points. Two Republican candidates nearly ousted two Democratic incumbents. One of those close calls was in Illinois’ 17th Congressional District. Despite being heavily outspent by Democratic Congressional Campaign Committee chair Cheri Bustos, GOP challenger Esther Joy King came within three points of upsetting the incumbent, whose role as DCCC chair is to elect more Democrats to Congress. 

On the other hand, Illinois will lose at least one congressional seat in the 2020 reapportionment. A downstate rural district, the 15th, that is currently represented by a Republican, is expected to be sacrificed. During the 2018 gubernatorial campaign, Pritzker vowed to support fair legislative maps rather than a gerrymandered ones. 

Don’t hold your breath for Pritzker to fulfill that campaign promise.

Illinois conservatives need to get firmly and publicly behind two new constitutional amendments, the first one to eliminate the pension guarantee clause, so that reasonable and financially responsible pension reform can occur. The biggest challenge for Illinois is its worst-in-the-nation $230 billion in unfunded pension debt. Illinois cannot tax itself out of this mess, an insight not lost on voters when they voted “No” on the Fair Tax. Pension reform will be painful–but even moreso if state politicians continue the decades-long policy of kicking the can down the road. 

Meanwhile of course the Illinois Exodus continues. The Prairie State has lost population every year since 2015.

Oh, I almost forgot. There was another victory of note for conservatives on Election Day. Voters chose not to retain Illinois Supreme Court justice Thomas Kilbride, a downstate Democrat. One of the reasons for Kilbride’s defeat was his being in the party-line 4-3 majority that prevented a redistricting reform amendment from appearing before voters in 2016. The suit against the Fair Map Amdendment was filed by a long-time Madigan ally. Kilbride is the first Illinois Supreme Court justice to fail to be retained. But the victory was short-lived. Kilbride’s interim replacement, chosen unaminously by the remaining justices, is a Democrat. Ken Griffin also funded much of the anti-Kilbride effot.

The second amendment conservatives need to rally around is another attempt at an Illinois Fair Map Amendment.

UPDATE December 6: After lots of counting, in the end the GOP caucus will increase by one seat, not two, in the state House.

John Ruberry regularly blogs at Marathon Pundit.

By John Ruberry

I’ve mentioned this profound sentenced from a 2016 Chicago Tribune editorial several times here before at Da Tech Guy. “As a result, Illinois government,” the newspaper’s editorial board wrote, “is a massive retirement system that, during work hours, also offers some services.”

It’s actually worse than than that. Illinois is a racket where elected politicians, many of them legislators in gerrymandered districts created by longtime party boss Michael Madigan, rewards pals with unionized jobs. Those unions are public-sector unions such as AFSCME and SEIU, which plow campaign contributions from dues money into the coffers of Democratic politicians who protect unaffordable pension plans from any cuts. Okay, I know, in accordance with the state constitution pension benefits cannot be lowered. An amendment to that document to allow pension reform is vehemently opposed by Illinois Democrats. 

Instead the Dems are pushing what they call the Fair Tax Amendment which will allow for a state income tax with graduated rates, currently only a flat rate is prohibited. Eight states, including Florida, Nevada, Texas, and Tennessee, which coincidentally are popular destinations for escapees for Illinoisans, have no state income tax. Most Illinoisans, we are promised by the pols hawking the Fair Tax Amendment, will see a tax cut, albeit one that is a pittance. If what I call the Unfair Tax Amendment passes, the “rich” will pay more but mark my words. Springfield politicians are liars and the tax rates will reach down in a few years to the middle class and the working poor. That’s because the rich will leave and those left behind will get stuck with the bill. Oh, the others will leave too. Don’t forget, Illinois has lost population every year since 2014.

The Fair Tax Amendment is on the ballot for Illinois voters to decide in November.

As I’ve also mentioned here before, Michael Madigan, the state House speaker for 35 of the last 37 years, has had his fingers on every state budget, and every failed pension fix, for decades. Those “fixes” for the most part kinda-sorta solved the pension crisis for five years or so. Which means they solved nothing.

If you trust Madigan to fix Illinois’ pensions and finances then you are a fool. The Prairie State’s second-most powerful politician, another Chicago Democrat, Governor J.B. Pritzker, was arguably put into office by the Madigan machine. Illinois’ lieutenant governor, Juliana Stratton, first run for public office, a state House seat, was a victorious one. In a very expensive race Stratton defeated another Democrat who dared to cross Boss Madigan. The Boss of Illinois even convinced Barack Obama to go after Stratton’s opponent.

In a conference call on Thursday Stratton threatened Illinois residents with a twenty-percent across the board income tax hike if the Unfair Tax Amendment fails. In 2017 the General Assembly overrode Republican governor Bruce Rauner’s veto to raise income taxes by 32 percent. Still at the end of 2019, Illinois’ unfunded pension liability went up by $3.8 billion to nearly $140 billion. Well, that tax hike didn’t work. Keep in mind Pritzker’s heavy-handed COVID-19 lockdown, which has severely impaired state revenues, promises to provide more financial shocks. 

And I want to be clear, some Republicans, namely governors James Thompson, Jim Edgar, and George Ryan, deserve some of the blame for Illinois’ predicament. Democrat Rod Blagojevich, the recently freed convict who supports Donald Trump for president, was equally irresponsible in fiscal matters during his time as governor. Edgar supports Joe Biden over Trump. Man, oh man, is Illinois a crazy place.

Illinois cannot tax itself out of this human-made disaster. A Fair Pension Amendment, one that protects modest pensioners and Illinois taxpayers, is the best way out. Followed by a Fair Map Amendment. Madigan’s Picasso-like gerrymandering skills in drawing maps puts his lackeys in office in the General Assembly. For the most part the Illinois legislature functions like a private country club, one that allows a few Republican members inside to make it look genuine. Twice in the 2010s hundreds of thousands of Illinois voters signed petitions to put a Fair Map Amendment on the ballot. Twice an attorney with ties to Madigan successfully sued to block it

How adept at gerrymandering is Madigan? In 2014, GOPer Rauner won 101 of Illinois 102 counties and defeated the incumbent Democratic governor. But Madigan didn’t lose a single seat in the state House that year and he kept his supermajority in the lower chamber. Yes, I’m aware that the GOP gerrymandered districts in 1991. That’s wrong too.

Illinois government is a failure.

And one party does not have all the right answers. Yes, that includes Republicans. Which is why we need two parties.

The Fair Tax Amendment is really a public-sector worker pension plan bailout where millions of Illinoisans, who don’t have a fixed-benefit pension plan, will pay for ones who do.

As I wrote in my own blog last week, “If Illinois politicians are ever given an unlimited budget–they will exceed it.”

The cure for a heroin addict isn’t a larger dose of heroin.

Illinoisans: Vote “No” on the so-called Fair Tax Amendment. 

John Ruberry regularly blogs at Marathon Pundit.

By John Ruberry

Last week CNN hosted a town hall for Joe Biden where he was given softball questions. No, on second thought they were T-ball questions. 

The demands on whoever is president are brutal. If CNN believes that Biden can’t handle challenging queries then that in my opinion disqualifies him to be leader of the most powerful nation on the planet. And if CNN is just shilling for the Democrats, then no one should take them seriously as a news outlet. Based on their poor ratings, most people already do not. 

Here are some questions that responsible reporters should be asking Biden. The wonderful thing about the questions I’ve devised is that most of them can be posed to President Trump. Yes, a few of these queries have been given to Biden, but generally only once and with dismissive answers from the Democratic nominee.

Here we go:

  • Will you be releasing the names of your potential Supreme Court nominees, as President Trump did as a candidate in 2016 and did earlier this month?
  • Do you support “packing the Supreme Court,” that is, nominating additional justices to the court to go beyond nine members?
  • Where’s Hunter?
  • Do you unconditionally oppose Antifa?
  • Will a Biden administration investigate plots by Antifa and other groups to incite riots in cities such as Portland?
  • You favor a nationwide mask mandate to fight COVID-19. What is your legal basis for instituting one?
  • Do you support statehood for the District of Columbia? And for Puerto Rico?
  • Many states, such as Illinois, Kentucky, and New Jersey, have public-sector worker pension plans that are essentially bankrupt. Do you support a federal bailout of these and other state worker pension plans?
  • Numerous cities also have similarly under-funded pension plans. Will you back a bailout of those plans?
  • What is your position on bailing out states whose tax revenues have plummeted because of COVID-19 lockdowns?
  • Do you favor allowing states to declare bankruptcy?
  • Speaking of Illinois, in 2008 the US Attorney for the Northern District of Illinois, Patrick Fitzgerald, was in the midst of a corruption investigation of Rod Blagojevich, the governor of the state, and Tony Rezko, a member of Blago’s inner circle who donated large sums to the campaigns of Barack Obama. Your ticket mate kept Fitzgerald in his post after becoming president. This year John Lausch, the current US Attorney in Chicago, is in the thick of investigating more public corruption. The center of this scandal appears to be longtime Illinois state House speaker Michael Madigan who is also the chairman of the state Democratic Party. If elected will you keep Lausch in his post?
  • Where’s Hunter?
  • If elected you will be older than Ronald Reagan, the oldest person to serve as president, was when he left office after two terms. Are you physically and mentally up to the office? If you are now what will happen if you one day are not?
  • Do you support the Green New Deal?
  • Do you support fracking?
  • Do you support nuclear power?
  • Do you support coal power?
  • Do you back amnesty for illegal immigrants?
  • Do you utilize teleprompters during interviews and question-and-answer sessions?
  • Where’s Hunter?

I’m sure there are many more questions readers can come up with.

John Ruberry regularly blogs at Marathon Pundit.