Questionable Strategy

“What were they thinking?” That seems to be the gist of the post-mortem commentary on the ill fated attempt by the state Senate to add $431 million to the budget in the closing hours of the legislative session that ended on May 31. The anticipated showdown over that strategy ended with a whimper when the Legislature returned to Springfield last week to quickly and quietly remove the added funds by withdrawing an amendment to the capital construction bill that that threatened to halt billions of dollars worth of projects.

It may have seemed like a good idea at the time, and the strategy was fairly simple … approve the budget bills but throw additional spending on a bill that simply had to be passed, the bill for capital construction projects. In other circumstances the strategy might have paid off, but when a moving force meets and unmovable object then something has to give. When the unmovable object happens to be Speaker Michael Madigan then, most likely, the force will crumble. And crumble it did.

Madigan and House Minority Leader Tom Cross agreed early in the session to work together to rein in spending, jointly adopted and preserved a spending estimate that was $2 billion below what the Governor requested in March and $1 billion below the spending goal adopted by the Senate, and they were steadfast in their refusal to budge. A coterie of Democratic senators, mostly relatively new, girded for battle and ready to go to the mat for the higher spending levels. Exasperated by a May 31 deadline and little cooperation from the House for a compromise they embarked upon and convinced their Democratic brethren to adopt the capital bill amendment strategy. After the capital bill with its additional spending reached the House Madigan responded by filing a motion to “nonconcur” (the same as requesting a “no” vote) on the Senate amendment that was adopted on a voice vote. As a topper, he then adjourned the House for the summer … leaving the Senate with the choice of removing the amendment or moving the bill to a conference committee. With the House adjourned the only result that could have been achieved immediately would have been to remove the amendment, but that would have meant a strategic loss. So, the Senate adjourned taking no further action and hoped that some groundswell would occur to bolster their position. In the meantime the bill was in a holding pattern.

In the intervening weeks a groundswell did occur, but with the opposite effect. From the Governor to business, union and construction interests, there was very vocal support for withdrawing the amendment and moving construction projects along, which is exactly what happened on June 22 when the legislature reconvened for a few hour session. The Senate removed the additional funding amendment and the capital bill went cleanly to the Governor’s desk.

The Senate strategy contained three major flaws. First, there is an unwritten rule in the legislature that capital construction authorization bills are not fodder for gamesmanship of any kind. And, second, when Madigan is firmly convinced that he’s following the appropriate course there is simply no swaying him. He said early in the session that major spending reductions were an absolute must, especially after the income tax increase enacted last January. He meant what he said, and senior members of the Senate should be well aware of that attribute. Third, from June 1^st until December 31 a three-fifths vote is required to pass laws with immediate effective dates. With Senate Republicans, in particular, prepared to vote no on any spending expecting anything new to be approved post-May 31 was a pipedream. The focus now will be to determine if any budget modifications can be negotiated and addressed next January. That will also allow time to determine whether revenue estimates are on track or higher or lower than expectations.

Budget and Deficit

Illinois new fiscal year is set to begin tomorrow, July 1. While the Governor has not yet signed off on the new budget, he has given an indication that he’ll use his reduction veto powers to try to provide some “room” for future modifications. Since the Illinois Constitution only provides the Governor with the power to reduce, not add, many are waiting to see exactly what strategy he will embark upon. Most likely, it means that he will try to reduce some items hoping that the legislature will take the pool of savings he produces and reallocate those resources in November or January it to areas where he feels it is needed most. It may be a very bumpy ride, especially since the budget that wound up on his desk was a bottom-up spending plan … crafted after weeks and months of hearings and discussions by rank and file legislators. And it’s a budget process that legislators were mighty proud of. While they hated the limited resources they had to divvy up, they felt they did the best they could to listen to advocates and allocated as best they could, including reducing agency administrative, contractual and travel line items in order to find funds for many programs that the Governor zeroed out. If the Governor reduces funding for any of the myriad of programs that were “saved” through legislative intervention then there may be a major veto session battle brewing.

Historically, gubernatorial budget reductions have not found much fancy with the legislature and are commonly overridden and the expectation might be that the General Assembly would just restore the funds. However, the “Catch-22” that Governor Quinn may find himself in is that the cuts he may make will become permanent and not be reallocated. Senate Republicans, on one-hand, may take the position that these are additional cuts and should be permanent. By opposing an override of reductions they would cement those reductions. The legislature could also move to approve the Governor’s reductions. By approving the cuts also become law. So, unless he is able to force some agreement, the path to spending more by reducing is fraught with peril.

In the meantime, the ability of the state to take advantage of additional federal Medicaid matching funds through the stimulus ends on July 1. For the last few months the Comptroller’s Office has been trying to find ways to maximize those matching dollars as much as possible. Additionally, the Comptroller has been processing vouchers that were submitted in January, so the payment cycle is at 5+ months. In its budget bill the General Assembly extended the lapse period until December 31 so services provided and billed prior to July 1 could be paid utilizing normal procedures.

Reapportionment Maps Approved

No surprise, the Governor has approved both of the bills that set new political boundaries for General Assembly and Congressional candidates in 2012. Those maps were drawn by Democrats who controlled the process from beginning to end for the first time in 40 years. Republicans have indicated that they will file court challenges to in the near future but it is expected that their objections will fall short.

Expecting that the approved maps will be the final product, many legislators are reviewing their options, especially those who were lumped into districts with other incumbents. The Illinois Constitution allows legislators in the post-remap election to run in any territory that is created out of any portion of their former districts. Some have already announced their intentions while others are planning announcements soon. The rule is if they choose to run from an area that they don’t live in they have to move into that new area no later than May 1 following the election.

Congressional candidates do not have any residency requirement and are not required to live in their districts should they win.

No Decision on Casino Expansion

An interesting procedural development has placed a strategic hold on casino expansion legislation. Because Governor Quinn has expressed concern about the “heaviness” of the approved bill due to the extent of the proposed expansion, the Senate has decided to give him more time to ponder and proponents more time to convince him of the necessity. Just moments after the bill passed its final hurdle, approval by the Senate, President Cullerton filed a “motion to reconsider” the vote by which it passed. This procedure is common, but it also prevents a bill from moving to the next stage of the process until the matters are disposed of. The next stage of the process is the Governor’s desk, and the motion can’t be disposed of until the Senate is back in session or until the sponsor of the motion withdraws it. If the Governor decides to approve the bill Cullerton can withdraw the motion and let the bill continue to the Governor. If not, then he can keep the bill on hold indefinitely. The point is that sponsors have spent too much time getting this proposal passed to have it scuttled without taking their best shot. One thing is clear … with very few exceptions any veto or even any changes the Governor makes in the bill will doom it.

Legislative Appointments

No replacements have been named yet for Rep. Mark Beaubien who died a few weeks ago, and for Rep. Dan Reitz who resigned last weekend.

Veto Session

The General Assembly will convene on October 25, 26, 27 and November 8,9,10 for its veto session.

Bills of Interest

Only bills that are still alive are listed.

HB 248 – Rep. May/Sen. Garrett - Amends the North Shore Sanitary District Act. Authorizes the board of trustees of a sanitary district to enter into an agreement to sell, convey, or disburse treated wastewater with any public or private entity located within or outside of the boundaries of the sanitary district. Provides that any use of treated wastewater by any public or private entity shall be subject to the orders of the Pollution Control Board. (Current Status: Sent To Governor)

HB 308 – Rep. Tryon/Sen. Link - Creates the Closed Loop Well Contractors Certification Board. Provides that the Closed Loop Well Contractors Certification Board shall advise and aid the Director in (i) preparing subject matter for continuing education sessions, (ii) adopting rules, (iii) holding examinations, (iv) holding hearings, (v) submitting recommendations to the Director, (vi) grading all tests and examinations, (vii) performing other duties, and (viii) conferring with the Water Well and Pump Installation Contractors Licensing Board. Amends the Illinois Water Well Construction Code. Provides that the Department shall by rule require a one-time fee for permits for the construction, modification, or abandonment of closed loop well. Provides that all closed loop contractors shall be certified by the Department. Provides that all closed loop contractors who are certified may not engage in the occupation of closed loop well contractor unless he or she is registered with the Department. (Current Status: Sent To Governor)

HB 1657 – Rep. Bellock/Sen. Althoff - Adds an Illinois congressional delegation member, or his or her designee, to be appointed by the Governor to the Task Force on the Conservation and Quality of the Great Lakes. Provides that no later than June 1 of each year, the Task Force shall submit a report to the General Assembly outlining its recommendations concerning legislative actions to protect the water quality and supply of the Great Lakes. (Current Status: Sent To Governor)

HB 2056 – Rep. Osmond/Sen. Schmidt - Excludes from the definition of "pollution control facility" the portion of a site or facility used to incinerate only pharmaceuticals from residential sources that are in the possession or control of a law enforcement agency. Authorizes a law enforcement agency to collect pharmaceuticals from residential sources and to incinerate the collected pharmaceuticals in a manner that is consistent with rules adopted by the Agency. Authorizes the Department of State Police to use moneys in the Household Pharmaceutical Disposal Fund to make grants to local law enforcement agencies for the purpose of facilitating the collection and incineration of pharmaceuticals from residential sources. Defines "law enforcement agency". Amends the Unified Code of Corrections. Requires a $20 assessment to be levied against persons who commit specified drug offenses. Authorizes the Circuit Clerk to retain 5% of the penalties collected. Provides that a law enforcement agency may collect pharmaceuticals from residential sources and transport those pharmaceuticals to an incinerator permitted by the Environmental Protection Agency to be incinerated in accordance with the permit, permit conditions, the Act, and rules adopted under the Act. (Current Status: Sent To Governor)

HB 3090 – Rep. Arroyo/Sen. Delgado - Provides that any city, village, or municipality may authorize the use of its city hall or police department to display a container suitable for use as a receptacle for used, expired, or unwanted pharmaceuticals. Provides that the used, expired, or unwanted pharmaceuticals may include unused medication and prescription drugs. Provides that the receptacle shall only permit the deposit of items, and the contents shall be locked and secured. Provides that the container shall be accessible to the public and shall have posted clearly legible signage indicating that expired or unwanted prescription drugs may be disposed of in the receptacle. (Current Status: Sent To Governor)