QUOTE OF THE DAY
BND: Another temporary tax hike? Costello says permanent increase lacks votes
There might not be enough votes in the House to make Illinois’ temporary tax hike permanent, so a one-year extension of the increase might be sought instead, according to a local lawmaker.
“They’re having problems — leadership in the Democratic Party — coming up with enough votes to pass a permanent extension of the tax,” said Rep. Jerry Costello II, D-Smithton.
Gov. Pat Quinn, Senate President John Cullerton and House Speaker Michael Madigan, all Democrats, are seeking to make permanent the temporary tax increase. The temporary, 67 percent increase in the state income tax was passed in 2011 and was billed as a way to fix the state’s financial problems.
Washington Post: Workers would rather save up for retirement than pay for health care
People are more willing to gamble with their health than their retirement, a new study found.
Even though workers aren’t too thrilled with either their health or their retirement packages, a survey released Tuesday by professional services consulting firm Towers Watson found that some 62% of workers said they were willing to pay more if it meant they would have guaranteed retirement benefits — but only 34% of workers said they would pay up for more predictable medical costs. (The study was the second in a series of three reports Towers Watson is releasing on how employees view their benefits.)
Chicago Tribune: Emanuel’s arrogance exceeds his accomplishments
In most worlds — business, politics, personal — an arrogant person who accomplishes things is not only tolerated but celebrated. Many of us will take an ass-kicker who gets results over a cautious consensus-builder any day of the week.
That’s why Chicago voters picked Rahm Emanuel for mayor in 2011. They liked his rascally persona: the dead fish delivered to a pollster who disappointed him, the shower confrontation with an uncooperative member of Congress, the reported, “Take your (expletive) tampon out and tell me what you have to say” to a male White House staffer who wasn’t on point.
The strutting. The finger-pointing. The swearing. Come on. We loved it.
Chicago Sun Times: ACLU raises red flag over traffic cameras
Chicago’s switch to a new red-light camera vendor that uses radar technology will allow hundreds of cameras installed at busy intersections to pan in all directions — worrying civil libertarians who fear an invasion of privacy.
Adam Schwartz, a senior attorney for the American Civil Liberties Union of Illinois, said the Chicago Police Department should use the 360-degree panning technology only when there’s “suspicion of criminal activity.”
That means police should not track individuals on the street unless they’re searching for a “particular suspect,” Schwartz said.
Daily Herald: Illinois senator amends education funding bill
An Illinois state senator has revised an education funding reform proposal in the hopes of gaining more bipartisan support.
Bunker Hill Democrat Andy Manar’s legislation has been amended to cap the amount of state funds given to the poorest schools to ensure money can be spread around evenly to districts with average amounts of poverty. The measure is aimed at streamlining the state’s school funding formula by requiring districts to demonstrate need before receiving money.
Manar says he incorporated the thoughts of Republicans into the legislation, which he filed late Monday night.
Rare: HHS reporting ObamaCare enrollment duplications
In a House Energy and Commerce Oversight and Investigations subcommittee hearing this morning, a major health insurance trade association representative testified that the administration is reporting inflated enrollment numbers.
According to their testimony:
“Duplicate enrollments: Because of the challenges that surfaced with the launch of the Exchanges in October 2013, some consumers were advised to create a new account and enroll again. As a result, insurers have many duplicate enrollments in their system for which they never received any payment. In cases where an insurer has a new enrollment for a consumer who previously enrolled, they are not expecting that original policy to be effectuated – even though that data is still reported.”
Bloomberg: Chicago’s Biggest Bondholders Torn on City’s Future: Muni Credit
The biggest holders of Chicago general-obligation bonds are diverging on the city’s outlook as it stares down $590 million in extra pension payments. State lawmakers invoke Detroit as the consequence of inaction.
A month after Mayor Rahm Emanuel won the legislature’s approval of a plan to stabilize two of the city’s four pension systems, Governor Pat Quinn hasn’t signed the measure into law, objecting to the possibility that city officials would raise property taxes. The delay is reminiscent of the political gridlock that plagued Illinois for years as its credit rating sank.
While Nuveen Asset Management and Vanguard Group Inc. say they prefer insured Chicago bonds, Wells Capital Management contends the city’s economy is strengthening. Rating companies are also divided on the city as it faces almost $20 billion in unfunded pension promises. Standard & Poor’s grades Chicago A+, three steps above Moody’s Investors Service.
Sun-Times: CTU chief says transaction tax would save pensions, make traders ‘heroes’
A tax that financial traders in Chicago would pay on each transaction could solve the pension crisis, generate revenue and “make heroes” out of the wealthy men and women who work on LaSalle Street, Chicago Teachers Union President Karen Lewis told the Chicago Sun-Times editorial board on Tuesday.
Lewis and the union have proposed the so-called LaSalle Street Tax as a way to fund public pension obligations.
William Barclay, an economist advising the CTU, estimates a $1-to-$2 tax levied on the sellers and buyers of futures, futures options and securities option contracts traded on the Chicago Mercantile Exchange and the Chicago Board Options Exchange could raise up to $12 billion a year for the state, some of which could be used for pensions.
CARTOON OF THE DAY
