June, 2008
The Illinois General Assembly met its May 31 adjournment deadline this year, after having sent the Governor a budget plan and a few major pieces of legislation. However, lawmakers have little to boast about, as they failed to enact the needed revenues to pay for that budget, while hundreds of other measures were left in legislative limbo. Just two days later Blagojevich declared the revenue-light budget unacceptable, and has called for legislative leaders to craft a new plan by July 1.
Though it is still a work in progress, the budget plan adopted in the final hours did include many of the spending priorities sought by AFSCME, a tribute to the effectiveness of our grassroots mobilization, communication and lobbying effort. Key components included:
*Message sent against closures – Despite the Governor’s announced plans to close first Stateville, and then Pontiac, correctional centers, the budget fully funds both facilities and provides no authority to close either. It also increases funding for Thomson, allowing it to relieve some of the overcrowding elsewhere in the correctional system. Some state facilities, such as the LaSalle Veterans Home, received additional funds.
* Staffing Increases Fully Funded – Last year’s hard-won increases in staffing levels (subsequently vetoed by the Governor) were also fully funded in the final budget as enacted. The budget authorizes the addition of some 1200 new frontline workers across state agencies, a necessity to reduce the high levels of excessive overtime facing many state workers, as well as to improve service delivery to the public.
*Higher Ed Cuts Blocked, Funding Increased – Though the Blagojevich Administration had previously announced it was reversing itself and would release all allocated funds for the University of Illinois Cooperative Extension Program, it had still been pressing ahead with a plan to cut the final, 12th month payment to state universities and community colleges. At the last minutes, the Governor again backed down, and told the schools they would be receiving those funds. Lawmakers, in turn, not only fully funded these institutions for the next fiscal year, but increased allocations for both the Cooperative Extension Program and other higher ed budgets. On average, state universities would receive a 2.8% hike in state support from the general revenue fund for next fiscal year.
* Direct Care Workers’ Raise Included -- The lawmakers’ budget includes funding for a pay increase of at least 50 cts./hr. for frontline direct care workers employed by community agencies serving individuals with developmental disabilities, effective January 1. The Governor’s original budget proposal included no additional funding for these agencies.
*Revenue Needs Remain Unresolved -- The fundamental budgetary problem, however, remains unaddressed: a lack of adequate revenues to keep state government operating effectively, to enable the state to fulfill such vital commitments as educating our children, and to address the state’s crumbling roads, bridges and other infrastructure. There is still no consensus among state leaders on a comprehensive approach to address the state’s structural budget deficit and raise significant new revenue. As in past years, there was a lot of talk, some legislative attempts, but no meaningful action on revenues proposals:
* Raising the Income Tax : Generally considered the soundest approach to new revenue, election year politics and the Governor’s adamant opposition continue to stand in the way of an income tax increase. House Speaker Madigan has made clear he supports such an increase, and has kept one approach (HB 750) on the calendar all year. Meanwhile, Senate Democrats have rallied behind a similar measure (SB 2288), which now has 23 cosponsors and was approved in committee. Fear of Blagojevich’s grandstanding as well as potential voter backlash in November has kept either bill from moving, but both remain options in the fall.
* Pension Bonds: In the final days of the session, the Senate Democrats approved a measure that would substitute hard debt (pension bonds) for soft debt (the unfunded state liability). By taking advantage of current low interest rates, this could reduce the state’s annual pension payment and relieve pressure on the budget. However, concerns about possible risks in the bond market led to opposition from Senate Republicans, as well as legislators in both parties in the House, where the bill stalled.
* Fund Sweeps: Senate Democrats also pushed through a plan to “sweep” some dedicated state funds and provide one-time revenue to this year’s budget. Like the pension bond proposals, it was backed by the Governor and opposed by Republicans and Democrats in the House. It too stalled in the latter chamber.
* Lottery Lease: As part of his $33 billion “capital plan” for infrastructure spending, Blagojevich pushed hard on his earlier proposal for a long-term “lease” of the Illinois Lottery. AFSCME initially opposed the lottery privatization plan. While our union does not believe that privatization is sound public policy, the primary basis for our opposition was the lack of any guarantee of job security for Lottery employees. The Illinois AFL-CIO also refused to lend its endorsement to the lottery privatization plan unless AFSCME's concerns regarding job safeguards were addressed. That labor solidarity finally produced agreement by the Administration to very strong employee protection language that would safeguard the jobs and rights of AFSCME members at the Lottery. Only after that assurance, the Illinois AFL-CIO agreed to support the lottery privatization plan in order to advance the infrastructure improvement program. AFSCME, however, did not support the privatization plan. The Democratic majority in the House did not either, and the measure remained in committee.
* Gaming Expansion: The one approach to revenue with greatest breadth of support is a significant expansion of casino and other gaming. Given competing interests in the gaming industry however, such an expansion has been difficult to move forward. Even so, such a plan passed the Senate, and then a House committee when many House Republicans abandoned their traditional opposition to new gambling. The plan was eventually put on hold when the full House voted to table the bill. Some version of gaming expansion is expected to be back in consideration by this fall, if not before.
* Legislative Hostages – As reported last month, a number of bills of importance to AFSCME members were being held up in the Senate Rules Committee. The final weeks of this session saw no resolution of this situation; in fact, the AFSCME bills were joined by many other worthwhile measures for working families. At the same time, a large number of Senate bills failed to be approved, either because they were not called in the House or they were returned to the Senate with modifications deemed unacceptable by the Senate Leadership. As a consequence, hundreds of separate legislative measures remain hostage to political squabbling, generating considerable public outrage and a great deal of frustration for rank and file lawmakers.
Below is the status of key bills of importance to AFSCME members.
SUPPORT
Raise Needed Revenues (SB 2288—Sen. Meeks and Cullerton; HB 750 Rep. Miller) – This measure would raise desperately-needed new revenues—and help to close the state’s structural deficit. Late in the Spring session, its Senate sponsors added a number of amendments to increase support for the bill with the intent of bringing it to a vote during the Fall Veto Session. Status: On Second Reading in the Senate.
Ban Mandatory Overtime (HB 5661—Rep. Dugan) – This legislation would prohibit mandated overtime in 24-hour facilities in IDOC, DJJ, DHS and DVA. It is intended to address the exhausting schedules that thousands of state workers in these agencies have because of being constantly mandated as a result of acute understaffing. Status: Passed House, in Senate Rules Committee.
Pension Improvements –Given the financial problems besetting governments at every level—as well as the vigorous propaganda campaign being waged by opponents of public employee pensions—there is strong resistance in the General Assembly to acting on any measure that would improve the pensions of public employees in any of Illinois’ various public sector pension systems. However, AFSCME is continuing to support several pension measures which have limited fiscal impact and can be viewed as matters of fairness, rather than major pension increases. These include:
* Cook County Corrections/Probation Employees Pension Bill (HB 4996--Rep. Flowers) - This bill adds corrections employees with the Cook County Department of Corrections and County probation officers to the benefit provisions that currently apply to members of the Cook County Police Department. It would allow for retirement at age 50 with 20 or more years of service credit. Status: In House Rules Committee.
* Illinois Municipal Retirement Fund (IMRF) Improvements (SB 1957 and 1959) -- AFSCME is supporting these measures which were developed jointly by the IMRF and a committee of public employee unions, including AFSCME. SB 1957 would make the current non-voting Annuitant (retiree) Trustee a voting member of the IMRF Board of Trustees, and add one new management trustee. SB 1959 would stabilize the value of the IMRF supplemental benefit (the so-called “13th check”) at 75% of the amount of the normal monthly pension benefit, with the cost to be paid by IMRF employers. This is necessary as the value of the 13th check has eroded over time. Status: SB 1957 passed both chambers; SB 1959 passed the Senate and was held in the House Rules Committee.
* SERS Definition of Final Average Compensation (HB 5011—Rep. Molaro) – This bill would fix a technical problem with the State Employees’ Retirement System (SERS) regarding the definition of “final average compensation,” so that state employees who have unpaid time off (for any reason, including union business) during their final 48 months of service can make retirement contributions to the pension system to assure that they receive both SERS service credit and earnings credit toward the calculation of their monthly pension benefit, at their normal rate of compensation. Status: Passed House, in Senate Rules Committee.
* Social Security Offset Opt Out (SB1985—Sen. Raoul) – Allows current and future SERS retirees to increase survivor benefits by voluntarily opting out of the Social Security offset provision; requires beneficiary contribution. Status: Passed Senate, in House Rules Committee.
Strengthen Safeguards Against MRSA (HB 4303—Rep. Froelich) – MRSA and other staph infections represent a growing threat, especially to those employees who work in congregate settings, such as prisons or developmental centers. Unfortunately, in too many cases, the State is not taking adequate steps to prevent the spread of these dangerous infections. This legislation would ensure that state agencies comply with “best practices” for preventing the spread of such infections. Status: Passed House, in Senate Rules Committee.
Provide a COLA for Direct Care Workers (HB 4526/HB4597—Rep. Crespo; HB 4596—Rep. Crespo; SB 1977/SB 1978—Sen. Wilhelmi) HB 4526 and HB 4597 (and SB 1977/1978) are companion measures that would amend the budget to include a 50ct./hr. pay increase for direct care workers in state-funded private agencies serving individuals with developmental disabilities. HB 4596 would establish an “automatic” COLA, requiring that every budget in coming years include a COLA that could fund a pay increase for these direct care workers. Status: These bills were all held in Rules committees, but a 50 ct./hr. pay raise, effective January 1, 2009, was included in the budget bill (HB 5701, SFA 2) that passed both chambers and was sent to the Governor.
Restrict Privatization in State Government (HB 4724—Rep. Hannig) – This legislation would put in place strict standards that would have to be met before any service currently provided by state employees could be privatized, including requiring that any contractor would have to pay comparable benefits as those provided by the state. Status: Passed House, in Senate Rules Committee.
Revise State Mileage Reimbursement (HB 5534—Rep. Verschoore) – This measure would provide that the mileage reimbursement for state employees be determined on the same calendar as the federal mileage reimbursement, allowing state reimbursement rates to more accurately reflect rising fuel costs. Status: Passed House, in Senate Rules Committee.
Improve Nurse Staffing Levels (HB 392—Rep. Flowers) -- Illinois hospitals are becoming ever less safe for patients who rely on them and for the nurses who work in them because nurse staffing levels at the bedside have been steadily reduced. Studies show that inadequate nurse staffing greatly increases the risk of patient mortality. AFSCME is leading a statewide campaign to institute mandated nurse staffing levels in all Illinois hospitals—and has met with intense opposition from the Illinois Hospital Association. Status: In House Rules Committee
Expand the Role of State Developmental Centers (HB 4334—Rep. Riley) – This measure would expand the role of state developmental centers to utilize the staff expertise and the more protected setting of these centers in order to provide consultation, guidance and temporary care when community agencies or families are having difficulty coping with developmentally disabled individuals who have extraordinary problems or needs. Unfortunately, a number of organizations are opposing this measure because they want to simply shut all state-operated centers down. Status: Tabled by sponsor.
Restore Summer UI for Educational Employees (HB 5048—Rep. Boland; SB 2177—Sen. Frerichs) – This measure would restore Unemployment Insurance benefits for those non-instructional education employees—both in local school districts and universities—who are laid off during the summer months. AFSCME is working to build a coalition of all of the unions who have members in educational settings in order to broaden support for this legislation which is strongly opposed by local school districts. Status: Both measures are still in Rules Committee in their respective houses.
Appeal Process for Health Insurance Denial (HB4223 - Flowers) -- This bill requires health insurance companies and managed care plans to create an appeals procedure for any of their insured clients who are denied health care benefits for a treatment referral, procedure or other health care service. It also provides for an independent review process if the initial appeal is denied. Status: Passed House, in Senate Rules Committee.
Pharmaceutical Assistance (HB 4449—Rep. Franks) -- This is an expansion of Rx benefits to seniors. It raises the eligibility amount to 250% of the Federal Poverty Level, currently 200%, and makes changes to eligibility programs. Status: Passed House; amended in the Senate and returned to the House; motion for concurrence held in House Rules Committee.
State Operations Continuity (HB 4767—Rep. Tryon) -- This bill in intended to prevent State government from shutting down if the General Assembly fails to enact a budget by the end of the fiscal year. It provides for continued operation within the framework of the previous year’s budget. Status: Passed House, in Senate Rules Committee.
Strengthen Parole System (HB 2748—Rep. Howard) -- In recent years IDOC has by regulation restricted the instances in which parole agents can violate parolees who commit offenses. This legislation, initiated by Attorney General Madigan, would require the Department to violate parolees who commit specified offenses. Status: Passed House; amended in the Senate and returned to the House; motion for concurrence held in House Rules Committee.
School for the Deaf (HB 5321—Rep. Hamos) – This measure would appropriate funds needed for vital program expansion at the School for the Deaf. Status: Passed House, in Senate Rules Committee.
OPPOSE
State Employee Salaries OnLine (HB 4765—Rep. Tryon) -- This measure would establish a web portal that would provide direct access to information regarding the salaries of all state employees. Status: Passed House, in Senate Rules Committee.
Restricting Right to Vote (HB 4402—Rep. Reis) – This bill would amend the Election Code to require that voters present a government-issued photo ID in order to be allowed to vote. The current system of voter registration in Illinois works well and there is no significant evidence of voter fraud. Requiring every citizen to produce a photo ID could seriously curtail voter participation. Status: In House Rules Committee.
AMEND
When the concept of a separate Department of Juvenile Justice was introduced over two years ago, AFSCME opposed the scheme because it did nothing to address the underlying problems with the state’s juvenile correctional facilities—especially the lack of adequate educational programs for incarcerated youth. Unfortunately, we lost that fight. Since that time the pressure to change the juvenile justice system by increasing alternatives to incarceration has only grown in strength in the state legislature. AFSCME has been a lone voice speaking out for the need to continue to maintain a system of youth centers—and to significantly improve their operations. This fight is ongoing as legislators continue to push for measures that have the patina of “reform” while actually weakening the overall capacity of the system to rehabilitate youth offenders.
DJJ Advisory Committee (HB 4988—Rep. Hamos) – This measure originally established an Advisory Committee that effectively controlled the operations of the Department of Juvenile Justice and was charged with developing plans to close down the existing Illinois Youth Centers. However, AFSCME was able to persuade the backers of this legislation to amend it to significantly reduce the threat that it poses to IYC’s. The legislation now relies on the existing Advisory Committee and no longer assigns it any power over DJJ operations. The Advisory Committee’s role is restricted to conducting a study and it is no longer charged with developing plan to close down youth centers. The sponsor testified that it is not the bill’s intent to promote privatization of the juvenile justice system. Status: Passed House, in Senate Rules Committee.
Redeploy Illinois (HB 5343—Rep. Collins) -- This measure expands the Redeploy Illinois program, which previously had siphoned funds away from IYC’s. Under pressure from AFSCME, this legislation was amended to make the program subject to appropriation – meaning it needs its own funding line—so that further expansion
cannot be based on shifting funding from IYC’s. Status: Passed House, in Senate Rules Committee.
