Monday, August 1, 2011

Risky Business - Water Utilty Council Update

Risky Business

After a rocky beginning, the road has been anything but smooth during the first month of the state fiscal year. The Governor signed off on the budget late on June 30. In the process he surprised everyone by pretty much going along with what the General Assembly sent to him … it had been expected that he would trim and create a pool or revenue that could be reallocated according to his wishes by the legislature in the fall. But he did have one surprise up his sleeve when he announced that he was axing state employee cost of living increases that had been negotiated last year, explaining that the legislature didn’t provide enough money to fund them.

State employee unions have gone ballistic at Governor’s action and have gone to court and arbitration seeking to force payment of the increases. And so far, they’ve been victorious in each contested hearing or court proceeding, arguing that an agreement is an agreement and the state has a duty to fulfill its contractual obligations. In the press they have insinuated that if the negotiated raises are allowed to be sacked then the whole idea of future multi-year collective bargaining is at risk.

As of this past week there is still a stalemate with Governor Quinn insisting that the legislature has the appropriating power and the responsibility to provide enough to fund any raises or personnel costs and that his hands are tied. The General Assembly, on the other hand, insists that the Governor has other personnel moves that could be made, such as layoffs or elimination of other positions, to allow the raises to be paid.

The Governor has also requested that the Joint Committee on Administrative Rules (JCAR) approve deferring the raises by rule. JCAR members, comprised of twelve legislators, have treated the Governor’s request as a hot, hot potato, deferring any action until the issue is resolved by the courts.

Notwithstanding the push by the Governor to throw blame in other places, there are a few factors that boomerang the issue right back to is front door. First, he wasn’t much of a factor or participant in budget negotiations this past session, the legislature creating their own plan using conservative revenue and spending plan estimates almost $2 billion below that of the Governor’s initial request. Second, this is a contract that the Governor himself negotiated last summer and fall so the burden for the raises falls squarely on his shoulders, and in the end the speculation is that the courts will determine the same. Recalling some of the court decisions rendered during the recent legislative overtime sessions, when judges ruled that state employees had to be paid regardless whether or not a budget was in place, suggests that the Governor is on very shaky ground and should be looking in every nook and cranny for a way to identify the $75 million that will be needed to fund the increases.

Reapportionment Maps Challenged

Both the newly drawn state and congressional maps have been challenged in federal court, the lawsuits having been filed this past week. Even though the Illinois Supreme Court, according to the Illinois Constitution, has “exclusive jurisdiction” over the state map it is being challenged in federal court based upon voting rights issues, namely lack of an appropriate number of Hispanic/Latino districts as a primary basis. There is no timetable for any decisions but it is expected that the process will be expedited so prospective candidates can make decisions as quickly as possible.

The lawsuits have been filed by coalitions representing the Republican Party, who stand to lose the most if the new maps are approved. One important Hispanic/Latino organization, MALDEF (Mexican American Legal Defense and Education Fund), that has had some success in past redistricting court battles has not joined this battle but is reviewing it. With MALDEF joining the chances of a court victory are slim. Without them, it’s almost nil.

Historically, the losing side in redistricting fights will squawk and file a bevy of court suits. Similar activities are taking place throughout the nation where state legislatures are cutting up the remap “pie”. One thing to remember is that the GOP triumphs and takeovers in numerous states last November will allow them to maximize their ability to retain their current incumbents and creating as many new GOP state and congressional seats as possible. The GOP in Illinois wasn’t very lucky, but a victory in their court suit could jeopardize Republican gains in tens of other states where they hit the jackpot last year.

In the meantime, there is an expectation that the courts will uphold the Illinois maps. Congressman Tim Johnson (R-Champaign) even refused to join the suit, essentially saying he felt it was a waste of time. And, with petition filing set for early December candidate petitions can be on the streets in early September so candidates are making plans and preparing announcements. Expect that August will be very, very busy in that regard as incumbents and others weigh options and make decisions.

“Round and Round It Goes …”

Gaming expansion legislation and the efforts to convince the Governor to either sign or veto it have become more and more intense. The bill represents a huge increase in the number of additional casinos (five) as well as slot machines at race tracks. And, since the legislation was approved by the legislature with hardly a vote to spare, anything other than a gubernatorial signature puts the whole package in jeopardy. It’s anyone’s guess as to where the ball will drop at this point. The Governor has said the package is “excessive” but has not said he’ll veto it. The Chairman of the State Gaming Commission, the Chicago Tribune, and others are pressuring Governor Quinn to reject or change the plan. The impacted municipalities and others who see the additional revenue as a means of helping the state extricate itself from its fiscal morass are urging approval.

As all these forces put pressure on the Governor he doesn’t even have the bill before him and won’t until the President Cullerton withdraws a parliamentary motion that has kept the legislation in the possession of the Senate. If you recall, just moments after the expansion bill passed the Senate Cullerton filed a “motion to reconsider”. This common procedure prevents a bill from moving to the next stage … in this case the Governor’s desk. It may be that the push and pull of the gaming expansion debate will continue until the legislature reconvenes in late October. By that time there will either be a compromise that can muster the appropriate number of votes, or the Governor will have to make a decision that is sure to both elate and disappoint large numbers of Illinoisans.

Also, just a few weeks ago the Illinois Supreme Court nixed efforts to stop legislation that was approved for the purposes of funding capital construction projects. Part of the bill included legalizing video gaming and that portion was not part of what fueled the lawsuit, but a negative ruling by the Supreme Court would have required the legislature to reapprove it or go back to the drawing boards. The unanimous Supreme Court opinion approving the legislative procedure in question now injects thousands of video poker machines into the state gambling mix, in addition to providing one of the key revenue sources for construction projects throughout the state.

Legislative Appointments

Rep. Kent Gaffney has been appointed to complete the term of former Rep. Mark Beaubien who passed away in June.

Rep. Jerry Costello, Jr. has been appointed to replace former Rep. Dan Reitz who resigned.

Representative Dave Winters (R-Rockford) and Sen. Susan Garrett (D-Lake Forest) have announced they will not seek reelection in 2012. There may be quite a few such announcements in the coming weeks.

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: Approved – PA 97-213)

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)