Investigation Into Governor Quinn's NRI Program (+playlist)

Illinois sells $250 million in GO bonds to build schools, roads, bridges. Gets Lower Interest Rate Than Last Auction

From the Gov's Bureau of the Budget, April 10, 2014

Bank of America/Merrill Lynch made the winning bid of 4.08% (true interest cost) for $250 million in General Obligation State of Illinois bonds Wednesday. The money will be used to fund construction of roads, schools, bridges and other capital projects under the Illinois Jobs Now! infrastructure program.

The rate is the third-lowest secured by the state since Gov. Pat Quinn took office five years ago and compares to a rate of 4.46% the state obtained on its most recent $1 billion bond sale in February – before Gov. Quinn proposed his FY 2015 budget – and 5.05% on our $1.3 billion offer in June, prior to the state’s passage of comprehensive pension reform.

That means Illinois taxpayers will pay about $10 million less over the life of the bonds compared to the state’s costs under the most recent rate in February.

Part of the better rate can be explained by movement in the markets over the past few months, but much of the improvement also is owed to the market’s approval – as expressed in the bond rating agencies’ reviews over the past week – of Gov. Quinn’s proposed FY 2015 budget, which includes maintaining the current state tax rates to provide long-term stability and properly fund education, Illinois’ Director of Capital Markets John Sinsheimer said.

“The market has spoken today and clearly investors feel, as the ratings agency has said in recent days, that Gov. Quinn’s budget ‘provides a basis for the state to achieve fiscal balance,’” Acting Budget Director Jerry Stermer said. “The rating agencies also have noted the positive steps our administration and the General Assembly have made in passing a comprehensive pension reform bill and paying down the backlog of bills.”

Eight bidders made offers on the 25-year tax-exempt bonds Thursday.

In recent days the three major bond rating agencies have released the following assessments of Gov. Quinn’s proposed budget and Illinois’ financial health:

Standard & Poor’s:

“We believe that the not-recommended budget could weaken structural alignment for Illinois … The recommended budget could contribute to enhanced structural alignment due to less severe spending reductions needed to achieve balance…”

“Per-capita personal income in 2013 was $46,780, or 105% of the U.S. average, ranking the state 15th nationally and first among the Great Lakes states.”

“Structural budget alignment improved in fiscal 2013 and 2014 due to economic and revenue recovery, revenue enhancement, and spending restraint and reform. Illinois generated a surplus in fiscal 2013 and forecasts another for fiscal 2014, which has lowered the general fund deficit and payables outstanding on a budgetary basis. This reduction is positive, in our view…”

“We view the pension reform as a significant accomplishment that could lead to improved pension funding levels, greater pension plan sustainability, and improved prospects for budget stability. We consider the reform to be comprehensive, addressing a range of areas that we believe should significantly reduce liabilities.”

“A developing outlook indicates that we could raise, lower, or affirm the rating during the two-year outlook horizon. The outlook reflects our view of the consensus reached on pension reform, which we believe could contribute to a sustainable path to fiscal stability … If pension reform moves forward and Illinois takes credible action to achieve structural budget balance beginning in fiscal 2015, we believe a higher rating would be warranted.”

Rep. Rodney Davis: Hire More Heroes Act Headed for House Vote on Tuesday, March 11

Washington, DC – U.S. Rep. Rodney Davis (R-Ill.) today announced that bipartisan legislation introduced in November to incentivize small businesses to hire veterans while at the same time providing them relief from the Affordable Care Act will be headed to the floor of the U.S. House for a vote on Tuesday. 

H.R. 3474, the Hire More Heroes Act, incentivizes small businesses to hire veterans by exempting veterans who already receive health insurance through the Department of Veterans Affairs or reservists covered under TRICARE from being counted towards the number of employees required by the employer mandate under the Affordable Care Act. The employer mandate is a requirement that all businesses with more than 50 full-time employees provide health insurance to their employees or pay a fee.

“We know offering health care is costly for small businesses and the employer mandate in Obamacare has forced many to delay hiring, cut hours and in some cases reduce their payroll at a time when our economy is struggling to recover,” said Davis. “The Hire More Heroes Act gives our small businesses another incentive to hire veterans, which helps to address the increasing number of unemployed veterans, while providing them with some relief from Obamacare.”

The legislation currently has 26 co-sponsors and is supported by the Enlisted Association of the National Guard of the United States (EANGUS), the only military service association representing the interests of every enlisted soldier and airmen in the Army and Air National Guard, and The Retired Enlisted Association, a Congressionally-charted veterans’ service organization and the largest association in the nation of enlisted retirees and veterans from all branches of the Armed Forces.

“This legislation will give employers, especially small businesses, even more incentive to hire veterans and members of the National Guard, and Reservists,” said Al Garver, Executive Director of EANGUS.

Bradley A. Lavite, Superintendent of the Madison County Veteran's Assistance Commission, came up with the idea for the legislation and had it shared with Rep. Davis at a Veterans Advisory Board meeting on the campus of Southern Illinois University Edwardsville in November.

“Prior to the ACA enrollment going into place in October, I started educating veterans on how the health care law does not change their VA health benefits or out-of-pocket costs and that the VA medical benefits met the minimum standard under the law,” said Lavite. “At the same time, I was also educating service members on the importance of signing up for TRICARE to ensure that they had coverage for themselves and their families in order to be in compliance with the law. It was during this period that I began noticing that unemployed veterans and service members who are enrolled in VA medical benefits and TRICARE, as well as the small businesses that hire them, could really benefit from a piece of legislation. Therefore, Hire More Heroes was proposed as part a veterans’ employment, health care and small business development initiative.”

Currently, there are 8 million veterans receiving health care through the VA system, and every service member returning from Iraq and Afghanistan has the option of signing up for health care through the VA.

“A survey done by the U.S. Chamber found that 71 percent of small businesses say Obamacare makes it harder for them to hire more employees,” said Davis. “It only makes sense to exempt veterans receiving health care through the VA from Obamacare’s employer mandate since they are clearly covered elsewhere and do not need employer-provided insurance.”

According to the Bureau of Labor Statistics, unemployment among veterans is at 6.3 percent, slightly lower than the national average. However, veterans who have served since 9/11 are facing a much higher unemployment rate of 9.2 percent.

“We know our military receives some of the best training in the world which produces skills that will benefit civilian employers,” said Davis. “In fact, data recently released by the advisory company CEB shows veterans offer 4 percent greater productivity and they are more likely to stay at a company longer than their non-veteran peers. This is a commonsense piece of legislation that will help our veterans find work and assist small businesses in hiring qualified, well-trained employees while providing much-needed relief from Obamacare and I urge each of my colleagues to support the bill when it’s called for a vote on Tuesday.”

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Following FEMA's Rejection of Federal Aid, Gov. Quinn Announces $45 Million State Relief Package for Communities Devastated by November Tornadoes

                                                                                   

Governor Secures State Resources After Denial of FEMA Funding Appeal; Aid Will Help Local Governments Recover

SPRINGFIELD – Following federal denial of urgently-needed disaster assistance, Governor Pat Quinn today announced a $45 million state relief package to help Illinois local governments recover from the deadly November tornadoes. This assistance was assembled at the Governor's direction following the Federal Emergency Management Agency (FEMA) denial of the state's appeal for federal disaster assistance for local governments.

The relief package will provide much-needed aid for impacted municipalities, including Washington, Brookport, Gifford, New Minden, Diamond, Coal City and East Peoria. All local governments in the nine counties impacted by the historic tornadoes will be eligible for assistance. The counties are: Champaign, Douglas, Grundy, Massac, Tazewell, Vermilion, Washington, Wayne and Woodford.

“Our tornado-ravaged communities need help and they need it now,” Governor Quinn said. “While it's disappointing that our request for federal disaster relief was denied due to outdated rules, the state of Illinois is committed to providing assistance to communities that need it. Recovery won't happen overnight but this aid will help people rebuild their lives."

The state's multi-agency relief package for local governments includes assistance from the Illinois Department of Commerce and Economic Opportunity (DCEO), the Illinois Department of Transportation (IDOT), the Illinois Finance Authority (IFA), the Illinois Emergency Management Agency (IEMA), the Illinois Environmental Protection Agency (IEPA) and the Illinois Housing Development Authority (IHDA).

DCEO will provide up to $19.1 million in state and federal funds to be used toward disaster recovery. These commitments include:

1.         Up to $10 million in state funds to local governments to rebuild tornado-damaged infrastructure.

2.         Approximately $4.5 million of the agency’s Community Development Assistance Program allocation from the U.S. Department of Housing and Urban Development (HUD) will be directed toward housing repair and reconstruction for low-income residents.

3.         An additional $3.6 million is expected from HUD this summer to address unmet housing needs from communities impacted by last spring’s flooding or November’s tornadoes.

4.         The DCEO Office of Employment and Training will supply up to $1 million in Rapid Response funding which will provide paid work experience to individuals to assist with disaster cleanup and recovery efforts – $138,875 of these funds are already being used for this purpose in Brookport.

5.         Low Income Home Energy Assistance Program (LIHEAP) and Weatherization funds are available to eligible recipients for a variety of storm-related issues including temporary shelter, transportation, utility reconnection, heating and air conditioning replacement, coats and blankets, insulation repair, generators, re-weatherization of damaged homes and technical assistance. The amount of funding available will depend on the number of eligible LIHEAP and weatherization households seeking assistance.

IDOT will provide up to $10 million for communities to repair storm-damaged infrastructure. IDOT continues to work with communities to identify eligible transportation infrastructure needs.

IFA, the state’s infrastructure bank, will immediately make available up to $4.5 million in below-market rate loans to finance repairs constituting capital expenditures to publicly owned and operated facilities that sustained damage in the tornadoes, not otherwise covered by insurance. Due to the legal and credit requirements of each individual project, the IFA will work through the Governor’s Response Team with individual local governments in the tornado-ravaged communities.

IEMA will provide $3.55 million to help municipalities pay for costs already incurred for items such as debris removal, emergency protective measures and overtime payments. This assistance comes from state General Revenue Funds.

IEPA will set aside up to $5.35 million in low-interest loans through the Illinois Clean Water Initiative to repair damaged water systems in impacted communities.

IHDA will provide $2.5 million in emergency rehabilitation assistance to approximately 50 low-income households affected by the severe storms. Eligible homeowners will receive up to $40,000 in assistance to pay insurance deductibles or provide home repairs. The assistance comes from the Affordable Housing Trust Fund.

For information on how local government can benefit from the relief package, please visit Ready.Illinois.gov.

The Governor recently addressed the National Journal’s Disaster Forum in Washington, D.C. to push for needed changes to the FEMA disaster aid criteria. The Governor is working with U.S. Senator Dick Durbin and Illinois’ congressional delegation to pass legislation that would give FEMA a clearer, more substantive formula when evaluating natural disasters. It will modify a flawed system that places small and rural communities in highly populated states at a disadvantage in the federal disaster declaration process. The bill assigns a specific weight to each of the factors already used by FEMA and adds other economic factors for the agency to consider when determining whether or not an area should receive federal assistance.

“FEMA has gotten it wrong in Illinois not once but twice,” Senator Durbin said. “The federal government can’t be expected to help after every weather event, but the damage I saw in Central Illinois convinced me that we need to be doing more. Senator Kirk and I have a bill—introduced in the House by members of the Illinois Congressional Delegation—that would fix FEMA’s funding formulas so communities in downstate Illinois are no longer at a disadvantage when disaster strikes. I am encouraged by Governor Quinn’s commitment today to help make these communities whole again and will be working with my colleagues to advance the Fairness in Federal Disaster Declarations Act and identify any additional federal funding opportunities.”

Shortly after the deadly storms on Nov. 17, 2013, Governor Quinn surveyed the damaged areas and activated the State Emergency Operations Center to coordinate the deployment of state resources and personnel in support of local response and recovery efforts. While federal assistance for local governments has been denied, just nine days after the storms the Governor successfully secured federal aid for families and businesses in 15 counties which has topped $23.5 million, including FEMA grants of more than $2.6 million and $21 million in low-interest loans from the U.S. Small Business Administration.

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AFSCME Local 31 Endorses Sen Kirk Dillard (R) for Governor

CHICAGO, IL – Republican candidate for Illinois Governor Kirk Dillard today proudly received the endorsement of the American Federation of State, County and Municipal Employees Council 31, adding to the significant statewide support that he's received in the past two weeks. Council 31 represents 100,000 public service workers and retirees in the state of Illinois. “We believe that Kirk Dillard would be the best choice in the Republican primary because he has a long record of public service and demonstrated understanding of state government," Henry Bayer, executive director for AFSCME Council 31, said. "He rejects the demonization of public employees – the teachers, state police and correctional officers, caretakers for those with disabilities, and thousands of others who provide the vital public services that Illinois citizens demand.” Dillard said he was honored by AFSCME's strong support. "I can't tell you how much this means to me and my campaign," Dillard said. "We owe a great deal to the tens of thousands of hard working public service employees across our state, and their support is resonating with their friends and families who know that we must bring new leadership to Springfield."

"Together, we'll roll up our sleeves and make Illinois work again." Kirk Dillard

The AFSCME endorsement follows earlier endorsements from the Illinois Education Association, which represents 130,000 teachers and professional staff statewide, the more than 100,000 member Illinois Federation of Teachers and the 36,000 members of the Illinois Retired Teachers Association.   Bayer underscored Dillard's vast experience in Springfield in making the endorsement. "We believe Kirk Dillard, with his long experience in the Jim Thompson and Jim Edgar administrations, as well as the state senate, is the responsible choice in the Republican race for governor.” Dillard earlier this week released his jobs plan for Illinois, calling it making Illinois a Destination Economy. The plan outlines a broad vision for getting the state's fiscal house in order, cutting excessive regulations and encouraging businesses to grow and create new jobs. "I'm excited to have AFSCME join our campaign. Together, we'll roll up our sleeves and make Illinois work again," Dillard said.

IL Manufacturers' Assn, Says Gov Quinn's Action on "Petcoke" Will Cost Illinois Hundreds of Jobs

SPRINGFIELD - Mark Denzler, vice president and COO of the Illinois Manufacturers' Association (IMA), has released the following statement in response to Governor Quinn's "emergency rules" on the storage and handling of petroleum coke in Illinois:

"The IMA is disappointed that the Governor's office and Illinois EPA announced burdensome new regulations after one isolated incident without speaking to industry representatives. According to the United States Environmental Protection Agency, petroleum coke is not classified as a hazardous material. Petroleum coke is a feedstock that is used in more than 2,500 applications including cement, steel, paper, brick, glass and other products. Imposing a one-size-fits all rule that requires total enclosure will result in a de factor moratorium and the loss of hundreds of jobs in Illinois."

Gov Quinn Announces a Series of New Regulations on Coal/Petroleum "Petcoke"

Rules Will Require Total Enclosure of Petcoke Piles and Other Environmental Protections

CHICAGO – Governor Pat Quinn today announced emergency administrative rules designed to protect Illinois residents from petroleum coke (petcoke). Under the Governor’s order, the rules will be filed later this week as part of his agenda to protect Illinois’ natural resources and ensure a clean and healthy environment for future generations.

“No one should have to eat, sleep or work with harmful dust blowing into their community,” Governor Quinn said. “No matter who you are or where you live, everyone has a right to a healthy environment. These rules will make sure that no one in Illinois has to worry about petroleum coke.”

Through its authority under the Illinois Environmental Protection Act, the Illinois Environmental Protection Agency (IEPA) will submit administrative rules to the Illinois Pollution Control Board (IPCB) that would set statewide standards for any facility that manages or stores petcoke or related materials. Chief among these will be a requirement for total enclosure of petcoke during its transport, processing and storage.

The IEPA has been working with federal, state and local officials since being approached by community residents with concerns about petcoke dust blowing into their homes causing discomfort and potentially serious health issues. The IEPA has referred numerous allegations of state environmental regulation violations to Attorney General Lisa Madigan. The Attorney General, in cooperation with the city of Chicago, has filed lawsuits against two petcoke companies. The IEPA has halted permit activity for petcoke operations pending a review of their impacts on air, land and water.

“At Governor Quinn’s direction, we will continue to do everything necessary to ensure that Illinois does not become a dumping ground for petroleum coke,” IEPA Director Lisa Bonnett said. “After seeing the piles firsthand and how they are affecting this community, it’s clear that strong action is necessary. We are committed to continuing the cooperative efforts at the federal, state and local level to address this issue.”

The rules will take effect on an emergency basis upon filing with the Secretary of State later this week. This action triggers a series of actions to be taken by the IPCB, which include a required three-step notice process that incorporates public testimony and hearings as well as legal and economic impacts before official and permanent adoption. Major timelines and provisions that would be effective upon official adoption include:

·         Within five days, a facility must install equipment to monitor wind speed.

·         Within 30 days, a facility must install dust suppression systems along conveyor systems and any piles that are not totally enclosed.

·         Within 30 days, a facility must submit applications for necessary permits and a comprehensive wastewater and stormwater runoff plan to IEPA that ensures that runoff that has come into contact with the piles is prevented from entering the waters of the state and complete it within 60 days of approval.

·         Within 45 days, a facility must submit a plan to IEPA for total enclosure of all coke and coal piles, transfer points, loading and unloading areas, screening areas, crushing and sizing areas to be completed within two years of these rules being adopted. Enclosure structures must be equipped with air pollution systems at all vents and entrances and exits for material and vehicles as well as an impermeable base to guard against ground seepage.

·         Within 45 days, a facility must submit a plan to IEPA to minimize the impact of truck traffic on residential areas near the source. All petcoke loading and transport must be done in vehicles sufficiently covered to guard against fugitive dust emissions.

·         With 45 days, a facility must submit a plan to IEPA for coke and coal fugitive dust that must adhere to requirements in the Illinois Environmental Protection Act and must be updated at least semi-annually or within 30 days of a major equipment or control change.

·         Within 60 days, a facility must remove all petcoke and coal that has been at the source for more than one year.

·         Within 60 days, a facility must locate any piles, loading operations, transfer or emission points that are not totally enclosed to at least 200 feet inside the property line of the source, a minimum of 200 feet from all waters of the United States, all public water supply reservoirs and intakes and all potable wells and onto impenetrable bases or pads.

·         Within 60 days, no pile may exceed 30 feet in height. Visible height markers must also be installed.  

·         A least once per calendar week, a facility must measure moisture content of representative samples and adjust dust suppression measures so as to meet certain standards and inspect all dust suppression equipment so as to ensure adequate operations.

·         At least monthly, a facility must certify the operation of all dust suppression systems at all times during the processing of coal and coke and submit records to IEPA showing the types and quantities of materials delivered to and transported from the source, and data reflecting cleaning, street-sweeping and equipment maintenance frequency.   

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