Political Rewind: Drought Lingers, Pension Reform in Limbo
As we start a new week, it's always good to get caught up on state politics. Here's an easy guide to what happened last week.
- Editor's Note: This article was created by aggregating news articles from Illinois Watchdog, formerly Illinois Statehouse News.
IL: Drought Lingers, Pension Reform in Limbo
SPRINGFIELD — A severe drought devastating crops throughout Illinois prompted concerns about the potential costs of disaster aid and crop insurance payouts later this year.
And House lawmakers will take up pension reform when they return to the Capitol for a special session Aug. 17. Here is the week in review:
Taxpayers on the hook for millions in crop insurance payouts
An environmental watchdog says taxpayers nationwide, including Illinois, will be on the hook for millions, if not billions, of dollars in crop insurance for grain farmers hit hard by this summer’s devastating drought.
Government aid, mostly in the form of low-interest loans, will not provide much help for farmers suffering through the drought because of the slow, creeping nature of the disaster. Taxpayers foot much of the bill for crop insurance premiums, overhead costs for the insurers and more. About 80 percent of Illinois farmers have crop insurance.
“And when losses get really big, like they’re likely to be this year because of this horrible drought, taxpayers are going to end up on the hook for the vast majority — over 90 percent — of the loss,” said Craig Cox, senior vice president of the Environmental Working Group, which tracks farm subsidies.
But safety nets, like crop insurance, help eliminate some of the risk for grain farmers, said John Hawkins, spokesman for the Illinois Farm Bureau.
“If we have another year like this, you’d probably have a lot of people just get out of the business. People wouldn’t be very eager to enter (farming) either, because of the investment and time,” Hawkins said. “Whenever you have a disaster like this you’re always glad there is crop insurance or some kind of cushion there that farmers can depend on to get them through the short times, so that when we have normal crops we’ll still be there.”
It could be a record year for insurance payouts because of the drought, which stretches across much of the country. Estimates run from nearly $20 billion by the U.S. Department of Agriculture to $40 billion by the Iowa Farm Bureau. No one will know, until the harvest is in and the insurance companies make their payments.
House lawmakers may take up pension reform in August
State House lawmakers may vote on a pension-reform measure when they convene for a special session Aug. 17 here.
The House will meet to consider expelling indicted state Rep. Derrick Smith, D-Chicago. But Speaker Michael Madigan, D-Chicago, also could call a vote on pension reform.
We Are One Illinois, a consortium of unions representing state workers, issued a statement this week, saying Madigan told the coalition that he is considering calling the matter for a vote — but only regarding pensions for lawmakers and state workers. Teacher pension reform would not be included.
“We have no certain knowledge of (Madigan’s) intent,” the statement read. “We reiterated to him today our willingness to work with the legislative leaders to develop a fair pension solution.”
The state Senate approved a pension bill in May with bipartisan support. That bill allows state employees to retain compounded cost-of-living adjustments to their pensions, if they give up state-sponsored health insurance and have future pay raises count toward their pension. Workers who accept lower cost-of-living adjustments would keep their insurance and have their raises count toward their pension.
The House’s attempt to pass pension reform faltered in the final hours of the legislative session over a plan to shift pension costs from the state to local school districts. Legislative leaders have been meeting regularly in Chicago since to hammer out their difference about the reform.
Ronald Holmes, spokesman for Senate President John Cullerton, D-Chicago, said the Senate has no plan to convene Aug. 17 because the pension-reform bill they passed is in the House’s hands.
“We’ve done this, and now we’re encouraging the House to do the same,” he said. “At the same time, we can continue trying to figure out how to solve this cost-shift issue. This is real savings that we’re talking about here.”
Quinn spokeswoman Brooke Anderson said Gov. Pat Quinn wants lawmakers to take up pension-reform as soon as possible.
“The governor will continue to push until we resolve this and restore fiscal stability to Illinois,” she said.
Feds subpoena two state lawmakers
Federal investigators have subpoenaed records for at least two state lawmakers, according to news reports this week.
A July 18 subpoena requested records of state Rep. Connie Howard, D-Chicago, who resigned from her lawmaker post on July 9 The subpoena requests records to and from the “Constance A. ‘Connie’ Howard Technology Scholarship Fund.”
Investigators also want notes, meeting minutes, transcripts and reports issued by the state House Computer Technology Committee from 2000 through 2007. Howard was chairwoman of the committee some of those years, according to reports.
A 2010 subpoena, obtained by the Chicago Tribune, showed investigators sought financial records from Howard’s 34th District, including vouchers, employee time sheets and communication between 2006 and 2009.
Investigators also are looking at college tuition waivers awarded by state Rep. Dan Burke, D-Chicago, according to the Tribune. A Chicago grand jury on March 21 subpoenaed information about Burke’s “procedures for the establishment, awarding and operation of the Illinois General Assembly Scholarship,” as well as records “pertaining to receipt of any funds or gift in connection with the award of the scholarship, including the identity of any person/entity giving any funds or gift, the amount or gift received, and the date received.”
In addition, federal investigators last month subpoenaed the scholarship records of state Sen. Annazette Collins, D-Chicago.
— Jayette Bolinski
Plainfield Ind
11:58 am on Sunday, July 29, 2012
No aid should be provided for farmers. The farmer should be buying their own insurance rather than putting it on the back of the taxpayers.
Jim R
12:43 pm on Sunday, July 29, 2012
Seems the weather has shown us the absurdity of using a food source for gasoline which is something that should be stopped immediately, Not sure how farmers insure themselves but the tax payers are stuck with the premiums and costs of the failure. Apparently it is another sign of the incompetency of our legislators.
Seeing that Quinn and Hardigan cannot get the pension issue resolved, both of them should be replaced. The teachers should have their pensions modified with the others as they are not different. If teachers and others will not accept reductions of their bloated pensions, Illinois should just declare bankrupcy dropping all obligations since the tax payers cannot afford to pay what the state owes. We should decrease the size of our government in Illinois. Look at the number of overlapping jurisdictions that we have. Do we need towns, townships, school districts, forest preserve districts, counties, and the number in our state legislature.
pete will
1:22 pm on Sunday, July 29, 2012
3 subpeonas all to Democrats? In Illinois..really?? Say it ain't so
Francis M. Regan
2:25 pm on Sunday, July 29, 2012
Without the farmers we would have nothing!
Mark Thoman
6:22 pm on Sunday, July 29, 2012
Most family farmers purchase MPCI (multi peril crop insurance) which is a federally managed program and does subsidize the premiums.
Larger crop operations (often corporate farm operations) may also purchase revenue insurance to protect against price declines within a growing season, in some cases locking in returns before planting.
Crop and revenue insurance mechanisms are varied and also involve the government reinsuring and guaranteeing to absorb losses insurance companies might have in a year with high claim rates.
Midwest corn, wheat and soybean family farmers it makes sense for the government to subsidize their continued existence via insurance against crop disaster. They are the lowest cost food producers on the planet. The USDA's Risk Management Agency insuring tobacco growers (and they do) is open to question.
Given the fine job Springfield is doing with pensions, one should hesitate allowing them to meddle further with our food supply.
howard the duck
7:31 pm on Sunday, July 29, 2012
I am finished with Illinois. I moved to Missouri. Its not perfect, but no more excessive taxes and crooked governors.
Tim
8:12 pm on Sunday, July 29, 2012
Yes, 6% top income tax rates in Missouri. While we pay the 'excessive taxes' of a 5% top rate in Illinois.
And the sales taxes that range up to 10.85% in Missouri, while us suckers in Illinois pay the 'excessive' rate of up to 10.5%.
http://www.retirementliving.com/taxes-kansas-new-mexico#MISSOURI
And a governor already found guilty by a state ethics board, is awaiting federal sentencing for his crimes.
http://www.stltoday.com/news/local/govt-and-politics/political-fix/already-charged-by-feds-former-gov-wilson-fined-by-ethics/article_8c26590e-a51c-11e1-adf6-0019bb30f31a.html
I love when these 'boo taxes are bad' personalities post exactly how clueless they are to the actual reality of the world around them, and instead live in the fantasy world created by their political biases.
Gerard Schilling
7:00 am on Monday, July 30, 2012
Get ready for the pension cost shift to the local communities after the Nov elections.
These bums can line their pockets and reward their cronies with our money through sweetheart deals with the unions and each other done at the state level but can only correct the problem by bouncing it back on us. A pox on both their houses and they need to be voted out of office before they bankrupt us all!
By the way our state has over 5,000 appointed boards which do mostly nothing except provide employment for politicians hacks, relatives and voted out flunkees costing us millions if not a billion a year.
Our state truely is the most corrupt in the nation!
Tim
1:12 pm on Monday, July 30, 2012
I patiently wait for the pension shift.
If it the only thing that is going to wake up the local populations when it comes to what their school board is approving. The pension packages are absolutely out of control, but the local residents never hear about it.
Did you know, there is a good chance you are actually paying the 'employee contribution' for every teacher in your district? You read that right, the union members are paying $0 of their own money into their pension.
The day of reckoning draws near. Soon we will all know who of them is 'in it for the kids' and who is in it for the money.
Edward Andrysiak
9:51 am on Thursday, August 2, 2012
Tim...I'm not sure but I think it works like this: Their check stub shows a deduction for their portion of the retirement fund contribution BUT the same amount is an add back to their base salary. In other words, their salary is bumped by the amount that is deducted. Net result would be they pay nothing into their fund. Someone close to this needs to check and verify that what we are thinking here is correct...I think it is.
Vegasdog.
12:56 pm on Monday, July 30, 2012
This is the single most important story to effect us and yet, what are people doing? Trying to outwit &/or just plain insult each other on the story concerning Obama saying "you didnt do that" or whatever it was. To all of the above I salute you!
Edward Andrysiak
9:46 am on Thursday, August 2, 2012
There has to be a breaking point here. Teachers pensions are excessive! The politicians will probably push the liability for payment back to the districts for the tax payers to eat. I don't know the answer here but someone, either the state or the district needs to file bankruptcy and renegotiate these obligations down to something within reason. I think the School district is, in fact, and illinois corporation and therefore it should be able to file a BK with the courts. The teachers will get less than they were promissed...they should whine to their union. They need to join the real world after living in the fantacy land of $100,000 plus pensions with automatic increases every year. Do I feel for them? No. They are supposed to be educated and therefore smart enough to know that the "golden goose" would die sooner than later. Greed destroys.
Dan F.
11:17 am on Thursday, August 2, 2012
The state used and abused the pension system since the days of Adlai Stevenson. Now that the "leaders" can not keep the con afloat they want taxpayers to fix it themselves.
Ain't government grand?!
Ruth
11:17 am on Friday, August 3, 2012
Based on today's Patch article about our real estate taxes, I decided to look at what my taxes are paying for and the multiplier, etc. My tax bill shows me how much of my taxes are paying for pensions. A $ amount less than $100 is taken out under the pension column for District 202. What does this go for? The teachers pension, right? So, technically, yes the taxpayers of Plfd. ARE paying for some of the teacher's pensions. Am I wrong?
Mr.Ethics
12:28 pm on Friday, August 3, 2012
Was told to me that this is for the District 202 administration workers pensions. Not for the teachers.
Tim
1:04 pm on Friday, August 3, 2012
Ruth, the pension payments are being made by the board of Education. It is lumped into the entire levy.
The 'pension' broken down on your tax bill is for administration pensions as Mr. Ethics stated above.
You are paying 100% of the teachers contribution to their own pension, they are paying $0. It is a 'benefit' that the BOE has agreed to pay for the teachers so that it does not come out of their salary. They then take the rather confusing step of listing the payment on the individual paychecks of the teachers, to satisfy the legal requirements of IL pension laws. In reality, the teachers are paying $0, and the board of education is paying 100% of the employee amount.
80% of highest for years
1:34 pm on Friday, August 3, 2012
We cant help the farmers who actual need help.Cause we need to pay the school administrators more.my poor administrators in my district are only averaging 150k a year...you know they have to save for retirement(oh wait we pay that also)
Ann Paul
2:56 pm on Friday, August 3, 2012
Lemont Districts 210 & 113a, the taxpayers are footing the bill on teachers' pensions. We are paying for their contributions. The teachers are not payingin it. Every school district is different, but you will be amazed just how many districts pay the teachers' 9.4% contribution.I'd trade my feeble social security for a teachers TRS pension anyday. Some may argue they aren't getting pay increases, but the TRS payments continue and I would rather have that going rather than a let's say 4% salary increase.
Mickey
1:31 pm on Monday, August 6, 2012
Interesting. When I went to Missouri quite a few times this year, everything "seemed" cheaper. Guess I was just imagining it.
Let's see I paid $39 for my kids season passes at Six Flags St Louis yet for my pass at Six Flags Great America it was $59.
Carton of cigarettes. $22
ILL-ANNOY $50
Yep. Lot cheaper in ill-annoy. I can do the math.
:-PPPPPP