Illinois Democrats -
Today, a new report showed the Inflation Reduction Act reduces inflationary pressures on the economy and makes life more affordable, while making crucial investments in our energy security as Americans have faced higher gas prices from Putin's price hike. The bill cuts the cost of living, lowers the federal deficit, and strengthens the American economy in the short and long run–while ensuring taxes are not raised on Americans earning less than $400,000 per year and closing loopholes to assure the largest corporations pay their fair share of taxes. Plus, fallout continues from Darren Bailey's recently-unearthed comments comparing abortion to the Holocaust. See the DPI press release HERE.
TOPLINES
August 3
Social
Tammy Duckworth | What happened in Kansas was shocking, but telling.
The fact that voters protected reproductive freedom in a red state shows how out of touch so-called Republican "leaders" are with real Americans. We want leaders who will protect our rights—not rip them away. (Twitter)
Kwame Raoul | Thank you @iftaft for your support! (Twitter)
Joe Biden | The current drop in gas prices continues to be the fastest decline in over a decade. 83 cents down and counting since mid-June. (Twitter)
Dick Durbin | This is what the Inflation Reduction Act is all about. Taking on Big Pharma, addressing the climate emergency, reducing the deficit, and creating good-paying American jobs. (Twitter)
DNC | Passing the Inflation Reduction Act would help lower the deficit and bring down costs for Americans, all while not raising any new taxes on people making under $400,000 a year. (Twitter)
Articles
CNN | Top economists say Democrats’ health care and climate package will put ‘downward pressure on inflation (Link)
Yahoo News | Inflation Reduction Act would lead to $1,800 in savings for average household, analysis finds (Link)
TALKING POINTS
The Inflation Reduction Act of 2022 will tackle inflation, lower costs for American families, and reduce the deficit
Dan Kovats
Executive Director, Illinois Democratic County Chairs' Association
Check out the IDCCA online at www.ildcca.org
(773) 351 - 7818 - Cell
(217) 753 - 3380 - Office
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Today, a new report showed the Inflation Reduction Act reduces inflationary pressures on the economy and makes life more affordable, while making crucial investments in our energy security as Americans have faced higher gas prices from Putin's price hike. The bill cuts the cost of living, lowers the federal deficit, and strengthens the American economy in the short and long run–while ensuring taxes are not raised on Americans earning less than $400,000 per year and closing loopholes to assure the largest corporations pay their fair share of taxes. Plus, fallout continues from Darren Bailey's recently-unearthed comments comparing abortion to the Holocaust. See the DPI press release HERE.
TOPLINES
August 3
- Experts agree that the Inflation Reduction Act reduces inflationary pressures on the economy and makes life more affordable, while making crucial investments in our energy security as Americans have faced higher gas prices from Putin's price hike. The bill cuts the cost of living, lowers the federal deficit, and strengthens the American economy in the short and long run–while ensuring taxes are not raised on Americans earning less than $400,000 per year and closing loopholes to assure the largest corporations pay their fair share of taxes.
Social
Tammy Duckworth | What happened in Kansas was shocking, but telling.
The fact that voters protected reproductive freedom in a red state shows how out of touch so-called Republican "leaders" are with real Americans. We want leaders who will protect our rights—not rip them away. (Twitter)
Kwame Raoul | Thank you @iftaft for your support! (Twitter)
Joe Biden | The current drop in gas prices continues to be the fastest decline in over a decade. 83 cents down and counting since mid-June. (Twitter)
Dick Durbin | This is what the Inflation Reduction Act is all about. Taking on Big Pharma, addressing the climate emergency, reducing the deficit, and creating good-paying American jobs. (Twitter)
DNC | Passing the Inflation Reduction Act would help lower the deficit and bring down costs for Americans, all while not raising any new taxes on people making under $400,000 a year. (Twitter)
Articles
CNN | Top economists say Democrats’ health care and climate package will put ‘downward pressure on inflation (Link)
Yahoo News | Inflation Reduction Act would lead to $1,800 in savings for average household, analysis finds (Link)
TALKING POINTS
The Inflation Reduction Act of 2022 will tackle inflation, lower costs for American families, and reduce the deficit
- President Biden and congressional Democrats made historic progress to fight inflation and lower costs for the American people. The President supports the agreement negotiated between Senator Schumer and Manchin.
- This agreement would make prescription drugs cheaper by allowing Medicare to negotiate lower prices, and lower health insurance costs for 13 million Americans by an average of $800 a year, under the Affordable Care Act.
- This bill will improve our energy security and tackle our climate crisis – by providing tax credits and investments for energy projects, and creating thousands of new jobs and helping lower energy costs in the future.
- This bill will reduce the deficit beyond the record setting $1.7 trillion deficit reduction this year, which will help fight inflation as well.
- And, we will pay for all of this by requiring big corporations to pay their fair share of taxes, with no tax increases for families making under $400,000 a year.
- This is the action the American people have been waiting for. This addresses problems of today – high health care costs and overall inflation – as well as investments in our energy security for the future. The Senate and House should pass it as soon as possible.
- Vaccines and treatments helped the president get through COVID without fear, and you don’t need to be the president to get them. These tools are widely available for free to all Americans.
- We are in a very different place than a year ago – we can now prevent most COVID deaths, and even if you get COVID, you can avoid a serious case.
- In fact, COVID-19 deaths are down by nearly 90% since the president took office.
- The reality of BA.5 is that we will see more cases, and many of us are still going to get COVID, even if we take precautions. That does not mean you are doing anything wrong.
- But what’s most important is that our tools work to keep people out of the hospital, save lives, and minimize disruptions in our lives.
- Americans across the country – from all walks of life – have access to these lifesaving tools, and we encourage people to take advantage of them:
- Boosters: Stay up to date on COVID-19 vaccinations. If you’re 50 or older – or a moderately or severely immunocompromised individual – and you haven’t gotten a shot this year: get one right away. It could save your life.
- At-home Tests: Test before a large, indoor gathering or visiting with a high-risk individual.
- Treatments: If you get sick, seek treatment. Paxlovid – a highly effective oral antiviral you can take from the comfort of your own home – is widely available for free, including at thousands of convenient Test to Treat sites.
- And, consider wearing a mask in crowded, indoor public spaces.
- Find the latest information in your community on COVID.gov, including where to access vaccines, treatments, and tests.
Dan Kovats
Executive Director, Illinois Democratic County Chairs' Association
Check out the IDCCA online at www.ildcca.org
(773) 351 - 7818 - Cell
(217) 753 - 3380 - Office
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- Governor Pritzker joined lawmakers and stakeholders to encourage Illinois families to take advantage of the State’s Back to School tax holiday, Aug. 5 through Aug. 14. The 10-day sales tax holiday – the first for Illinois in over a decade - was created to save families $50 million on school supplies and is part of the $1.8 billion Illinois Family Relief Plan, with relief on gas, property taxes, and groceries.
- Americans are getting relief at the pump with the fastest gas price decline in over a decade: Gas prices have been declining for 51 straight days and are approaching a national average price of $4 a gallon. The seven straight weeks of declines mean that, according to an industry analyst, the most common price at gas stations across the country is under $3.99, with more than half of all gas stations now offering gas at $3.99 per gallon or less. Thanks in part to President Biden’s actions to release oil from the Strategic Petroleum Reserve, gas prices are on the decline.
Back-to-School State Sales Tax Holiday Begins: From August 5-14 the State sales tax is reduced from 6.25% to 1.25% for certain back-to-school items. Qualifying items include (1) school supplies used by the student in the course of study, except computers and certain electronics, and (2) clothing and footwear with a retail selling price of less than $125 per item. Non-qualifying items include clothing accessories (cosmetics, haircare items, handbags/wallets, and jewelry), sports equipment, protective equipment, art supplies, computers and computer accessories, and other electronics.
Income & Property Tax Rebate Distribution Begins Next Month: Residents struggling with inflation will receive long-awaited relief beginning soon when one-time income tax and property tax rebates will be issued to those who meet certain standards as part of the Illinois Family Relief Plan. Checks will go to those that earn less than $200,000 per individual taxpayer, or $400,000 for joint filers. Payment is expected to begin Sept. 12 and will take roughly eight weeks to send out. On top of the income tax rebates, some homeowners will receive a rebate equal to the property tax credit claimed on their 2021 IL-1040 form. To be eligible, you must have paid Illinois property taxes in 2021 and income must be $250,000 or less. Checks will be direct deposited.
GOMB Issues ARPA Fund Report: GOMB released the ARPA Annual Recovery Plan detailing the state and local fiscal recovery funds under the American Rescue Plan Act (ARPA). ARPA was passed in March 2021, and in July 2021 Illinois received $8.127 billion from the Coronavirus State Fiscal Recovery Fund (CSFRF) as part of ARPA. The funds can be used for a variety of purposes, including supporting public health expenditures, covering State costs of responding to the COVID-19 pandemic, addressing the negative impacts caused by the pandemic, replacing lost revenues of the governmental unit (and allowing such lost revenues to be used for providing government services), pay for essential workers, and investing in water, sewer, and broadband infrastructure. The FY23 budget essentially fully allocated Illinois CSFRF funds with the expectation that the funds will expend over multiple years (through December 21, 2026).
Lake Michigan EV Circuit Announced: Illinois, Indiana, Michigan and Wisconsin are collaborating to build the Lake Michigan EV Circuit, which will establish a network of EV chargers spanning over 1,100 miles of drivable shoreline around Lake Michigan. The project is based on an MOU between the four states agreeing to build the best new road-trip for EV drivers in America. The Lake Michigan EV Circuit Tour will be a scenic route with light-duty vehicle charging options along the Lake Michigan coastline that targets charger installations at key coastal communities, lighthouses and tourism attractions. The new chargers will be tied together with the existing charging infrastructure. The project will support the tourism industry in the Midwest and elevate economic growth and provide EV drivers with a long-distance travel vacation opportunity.
Illinois Transportation Enhancement Program Open: The application period for the Illinois Transportation Enhancement Program (ITEP) is open August 1 through September 30th. Local governments, regional planning commissions, and private entities with a public sponsor are eligible for awards up to $3M for eligible projects, which include biking and walking paths, trails, streetscape beautification work, and other improvements designed to encourage safe travel across the various modes of transportation at the local level.
Medicaid Rate for Reproductive Healthcare Increased: Effective Sept. 1, 2022, Medicaid reimbursement rates for abortion providers will increase by 20 percent, which is approximately a $3M increase. Additionally, the state’s 98 family planning providers will also be receiving a $2 million Title X investment from the state for services including HIV testing, cancer screenings, fertility testing, etc. The state is also eliminating a requirement that providers receive a Medicare denial prior to requesting Medicaid reimbursement, streamlining the process for patients that are eligible for both programs.
Pritzker Issues Monkeypox Disaster Declaration: Governor Pritzker issued a gubernatorial disaster proclamation declaring the monkeypox virus a public health emergency and the state of Illinois a disaster area regarding the disease. The declaration allows the Illinois Department of Public Health to utilize resources for coordinating logistics across state agencies, quickly and efficiently aid in the distribution of vaccines and in the prevention and treatment of the disease. The proclamation will also assist state agencies in coordinating response with the federal government.
Illinois Airport Plan Released and August Declared Aviation Appreciation Month: IDOT released the first comprehensive study of airports in more than 25 years. The Illinois Aviation System Plan identifies short- and long-term needs and goals of the state’s airports. The report analyzed 85 public-use airport facilities and focused on individual airports and the aviation system as a whole, looking at ways they can support economies throughout the state, improve quality of life and boost mobility. Interestingly, the report found that 81% of Illinoisans live within 30 minutes of an airport, and half of Illinois airports are less than a mile from a major road while 88% are within two miles of one.
Illinois Department of Labor Finalizes Domestic Worker Rules: The Illinois Department of Labor finalized rules for the employment of domestic workers, aimed at better defining pay and record keeping. The rules grant domestic workers minimum wage protections, includes provisions for time and one-half pay for overtime hours, clarifies how employers should account for rest periods, establishes parameters for when meal or lodging costs can be deducted from a worker’s paycheck, requires employers of domestic workers to keep wage and hour records, and clarifies on when multiple employers share services of a domestic worker. The rules take effect August 1, 2022.
Attorney General Raoul Warns of New Bank Scam: Attorney General Kwame Raoul issued a warning regarding a new scam that looks to use fake bank websites to target consumers’ personal information. Scammers create the websites to make them look like a legitimate bank website to lure consumers into thinking they’re entering their personal information to create a bank account. IDFPR recommends that consumers considering opening a bank account contact their bank directly to do so and urges banks to consider placing a notice on their website and in their branches to alert customers.
Carvana Wins Temporary Injunction Against Illinois: Carvana’s request to halt the Secretary of State’s revocation of its license to sell vehicles in Illinois was granted this week after the Secretary of State suspended the big-box car-dealer’s license. The order forbids the secretary of state from "suspending or revoking" Carvana's certificates of authority and dealer plates. According to court records, the next action on the case will take place Aug. 30.
Health Insurers Propose Increases for Exchange Plans: Illinois residents who buy health insurance through the ACA Exchange will likely see prices rise for next year. Ten Illinois insurance companies that sell plans on the exchange are proposing average rate increases of about 3% to nearly 16% for plans in 2023. Blue Cross, Celtic and UnitedHealthcare blamed the proposed increases on rising medical costs in documents submitted with their proposals at ratereview.healthcare.gov. In Illinois, 85% of people who bought plans through the exchange in 2020 also received the subsidies during the pandemic, but those enhancements are set to expire at the end of this year and revert back to their previous parameters. Advocates of the fear that if they disappear, many consumers may drop their health insurance coverage because it will no longer be affordable.
Clean Jobs America Report Ranks Illinois 5th for Clean Jobs: The nonprofit group E2 released its seventh annual Clean Jobs America Report, which found that 3.2 million Americans work in clean energy, a 5% increase from last year, and every clean energy sector grew last year. The states that lead the U.S. in total clean energy jobs, in order, are California, Texas, New York, Florida, Illinois, Michigan, Massachusetts, Ohio, North Carolina and Pennsylvania. Jobs building electric vehicles had the largest growth (by 26%), with states like Georgia, Kentucky, Texas and Tennessee, benefiting the most from the expansion. greatly from expansions of EV and other clean transportation manufacturers, and also would benefit from electric vehicle tax credits included in the Inflation Reduction Act. Interestingly, about 90% of all clean energy jobs were employed by small businesses, defined as companies that employed fewer than 100 workers.
U of I Starting First Amendment Clinic: The University of Illinois College of Law is establishing a First Amendment clinic to take on freedom-of-expression cases and train lawyers. The clinic will be funded by a grant from the New York-based Stanton Foundation, which has funded 11 First Amendment clinics in its lifetime.
Nearly 20,000 Cook County Residents Hold Revoked FOID Cards: Cook County Sheriff Office revealed to a legislative panel that nearly 20,000 Cook County residents are with revoked firearm owner’s identification cards have illegal guns. At a hearing of the House Public Safety and Violence Prevention Task Force the Sheriff’s Office stated staffing issues are the main reason the revoked cards and weapons remain on the streets. Since 2013, a team of six officers have gone to the homes of those whose FOID cards have been revoked, to date recovering 881 guns. The Office stated 33,000 Cook County residents’ FOID cards have been revoked over the years, and nearly 20,000 have not turned in their cards.
O'Hare's Recovery Picks Up Momentum: O’Hare International Airport finally is in recovery from the COVID-19 pandemic, a good sign for the airport as it embarks on a major terminal modernization and expansion project. In the first six months of the year, total flight operations at O’Hare grew a whopping 22%, far more than most major airports. As a result, O’Hare has moved back to second place on the busiest U.S. airports list, narrowly trailing Atlanta’s Hartsfield-Jackson. O’Hare is a transfer point for East-West traffic and that recovered more slowly than North-South flights to warm-weather leisure destinations. This combined with United Airlines adding flights and Southwest Airlines now operating there are making the $8.5 billion terminal project seem like a great idea.
Chicago Park District Pension Overhaul Leads to Stability: The Chicago's Park District's pension overhaul that pulled the system off a track to insolvency have stabilized the district's ratings, and Fitch and S&P revised the outlook to stable from negative on the district's AA-minus general obligation ratings. The pension plan was changed in 2021 to put it on track to reach a 100% funding goal by 2057. The district is among the higher-rated Chicago sister agencies. The district's fund balance was more than $200 million at the close of 2021, with an additional $23 million added in 2021. Pension strains still weigh on the rating, but it marks a turnaround for a system that is carrying a nearly $800 million unfunded liability.
Chicago’s Annual Investor Conference: On August 24th Chicago will highlight economic initiatives while CFO Jennie Huang Bennett will plead the city's case with the buy-side for its fiscal turnaround at an annual investors' conference next week. The city will kick off the day with tours of O'Hare International Airport, which is undergoing a renovation and expansion, the Jardine water purification plant, a new public safety academy, a Chicago Transit Authority electric charging facility, and the proposed sites for a casino. The event will have an intermission lunch with Mayor Lori Lightfoot followed by remarks and an evening reception.
Out-of-State Patients Seeking Abortions in Illinois Skyrockets: An increase of out-of-state patients seeking abortions in Illinois is contributing to spiking wait times. Prior to the Supreme Court striking down Roe v. Wade, a patient could schedule an appointment to terminate a pregnancy in three or four days, but now it’s taking on average three weeks or more because of an influx of out-of-state patients. The influx of out-of-state patients has surged all over the state, but so far wait times to have an abortion in the Chicago area haven’t increased significantly, according to Planned Parenthood of Illinois. Planned Parenthood claims it would typically provide services to 100 out-of-state patients each month, and last month it provided more than 800. The massive influx of out-of-state patients has hit southern Illinois providers particularly hard, in part because this region only has two abortion clinics, the majority of clinics are in the Chicago area.
Supporter Rally for Illinois Workers’ Rights Amendment: At a rally in Collinsville, speakers made it clear that the key to passing Illinois’ Workers’ Rights Amendment in November will be mobilization of every Labor supporter. Tim Drea, IL AFL-CIO President, said this vote is too important to miss in this election and he has been attending rallies across the state to fire up supporters.
UPCOMING HEARINGS & SEMINARS
Statutory Court Fees Task Force Hearing: The Illinois Supreme Court Statutory Court Fees Task Force will hold a public hearing on Tuesday, August 30th at 9 a.m. via Zoom. The Task Force seeks oral testimony and written comments on its draft report and recommendations, which can be found on the Supreme Court’s website.
Rules Committee Hearing: The Illinois Supreme Court Rules Committee will hold a public hearing on October 5th to discuss six proposed rule changes. Written comments or those who want to testify should notify the Committee by September 28th via email at RulesCommittee@illinoiscourts.gov.
Procurement Equity Seminar: The IL Office of Minority Economic Empowerment (OMEE) and the IL Small Business Development Center Network will host a seminar on August 24 @10am that will feature procurement officers from public and private sectors to discuss how Black businesses can take advantage of contracting opportunities. The seminar will include presentations about assistance available to help successfully certify as an MBE and bid on contracts. Sign up here.
FEDERAL COURT VACATES SHAKMAN DECREE
On Friday the Seventh Circuit vacated the Shakman Decree against the Governor, starting the process of ending one of the oldest cases in Illinois. Six different federal judges have overseen the case, more than 1,000 status reports have been filed, and more than 10,000 entries on the federal docket have been filed since the original consent decree took effect in 1972. To understand the effect of this decision, you have to know a bit of the history.
In 1969, Michael Shakman, an independent political candidate for the 1970 state constitutional convention, and a voter named Paul Lurie filed a class action lawsuit against various political organizations and units of government claiming that political patronage violated the rights of independent candidates and voters. In 1972, the parties, including then Governor Richard Ogilvie and various units of local government, mutually agreed to a federal consent decree that made it clear that political reasons and factors could not be used when making certain governmental employment decisions. After the 1972 decree was entered, in two separate cases the U.S. Supreme Court found that governments could not constitutionally base public employment opportunities on political affiliation and may not consider political affiliation in hiring except as to certain exempted political positions. One of those cases was Rutan v. Republican Party of Illinois, 497 U.S. 62, 79 (1990). Those cases should have, in my opinion, ended the Shakman consent decree since the Court held patronage unconstitutional, despite the fact it had played a prominent role in American political life since the nation’s founding. As a result of these cases, it was made clear that governments couldn’t consider party affiliation or political activities when hiring, with exception for certain policy related positions. However, the Shakman decrees lived on.
Over the past 50 years the various decrees covered the Governor, the City of Chicago (released in 2014), Cook County (released in 2018), and other county offices including the Cook County Recorder, Treasurer, Circuit Clerk, Assessor, Sherriff, Clerk, Forest Preserve, Metropolitan Water Reclamation District, and on and on. The units of government impacted had to work with private attorneys representing the Shakman plaintiffs and federal special masters tasked with monitoring the review of employment related decisions – from employment manuals, to the hiring process, to the staff coordinating hiring, to the types of resumes that were received and reviewed by a state or local agency, even time keeping records. Taxpayers have spent tens of millions of dollars on Plaintiffs’ legal fees, fees charged by the monitors, and fees for outside defense counsel. This doesn’t include the tens of millions more spent by agencies on compliance and their own legal fees, or the costs related to the state and county Inspectors General.
Specific to the Governor, in 2009, following the impeachment of Governor Rod Blagojevich, a bipartisan committee of the Senate and House recommended, and the General Assembly passed, an amendment to the State Officials and Employees Ethics Act that gave the Office of the Inspector General unfettered discretion to investigate allegations of political patronage in State government and "review hiring and employment files of each State agency within [its] jurisdiction to ensure compliance with Rutan v. Republican Party of Illinois... and with all applicable employment laws." 5 ILCS 430/20-20(9). In 2015, the Office created the Division of Hiring & Employment Monitoring to conduct compliance-based reviews of State hiring and employment procedures, file reviews and on-site monitoring of agency hiring decisions, and work with the monitor appointed in the Shakman litigation. (More on the OEIG’s role here.) As a result, employment-related decisions had oversight by agencies, the ultimate jurisdictional authority (i.e. Governor’s Office), lawyers representing the plaintiffs, inspectors general at the individual agencies, the Office of the Inspector General, court monitors, and federal judges.
In November 2019 the Clerk of Cook County filed a motion to vacate the Shakman decrees against that office, but the motion was denied by the magistrate judge then presiding over the case. The Seventh Circuit affirmed when the Clerk appealed, but it cautioned the decrees left the Court with “serious concerns about the duration and seemingly never-ending nature of the Shakman decrees.” The Court said, “Do not let today’s result cloud the grave federalism concerns we have with the fact that the Clerk of Cook County has been under the thumb of a federal consent decree for the last 50 years.” After the Clerk’s decision was handed down, the Governor moved to vacate the decree against the State. The District Court denied the Governor’s motion and the Governor appealed. Friday the Seventh Circuit reversed the District Court and remanded the case back with direction to vacate the decree against the Governor.
The Court stated in its opinion, “What may have started with a federal court’s well-grounded injunction came to look more like indefinite federal judicial supervision of state employment practices.” The Court said “What most concerns us is that the special master’s oversight—which the district court relied on in denying the Governor’s motion to vacate—has drifted beyond any obligation imposed by the decree and, most certainly, the Constitution. Nowhere do we see the special master, the district court, or Shakman and Lurie on appeal relying on the standards articulated in Elrod and Rutan to identify constitutional violations.”
What may have started as a good-faith effort to challenge that patronage practices in effect in the 1960s had crept over the years into a cottage industry for plaintiffs, the court appointed monitors, and outside defense counsel focused on employment minutia rather than the requirements of federal law. (For Office Space fans: It was as though the federal court had appointed many Bill Lumburgs to oversee how well governmental offices filled out their TPS reports.) The Seventh Circuit decided that was too much, holding “leaving the Governor subject to the 1972 decree is no longer warranted or tolerable. Governor Pritzker has demonstrated substantial compliance with the decree and identified and instituted durable remedies to help ensure that compliance sticks. He has earned the right to make employment decisions for the state on his own and not under the terms and conditions of the 1972 decree or the watchful eyes of a special master and federal court. We cannot let perfect be the enemy of the constitutionally adequate.”
Though the decision only affects the Governor, it was written to clearly provide guidance to the other offices still under decrees. In fact, shortly after the Seventh Circuit’s Order was issued Friday, the district judge ordered supplemental briefing on the Cook County Clerk’s pending motion to vacate to discuss the decision. Other offices under the decrees and court appointed monitoring are expected to consider moving to vacate as well.
After 50 years and countless millions of dollars out of state and county coffers and into the pockets of attorneys, the federal court is on track to return control of employment decisions back to the officials elected by the people. It’s actually a very important reminder that elections have consequences. To those that may lament the good government reforms the decrees supposedly stand for, don’t. Governments are still barred from making employment decisions based on politics, and everything required by the decrees is already required by federal, state, or county law or policy. The only difference is taxpayers will no longer bear the burden of annually paying millions to court appointed monitors and attorneys.
More here, here, and here.
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Dan Kovats
Executive Director, Illinois Democratic County Chairs' Association
Check out the IDCCA online at www.ildcca.org
(773) 351 - 7818 - Cell
(217) 753 - 3380 - Office
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Income & Property Tax Rebate Distribution Begins Next Month: Residents struggling with inflation will receive long-awaited relief beginning soon when one-time income tax and property tax rebates will be issued to those who meet certain standards as part of the Illinois Family Relief Plan. Checks will go to those that earn less than $200,000 per individual taxpayer, or $400,000 for joint filers. Payment is expected to begin Sept. 12 and will take roughly eight weeks to send out. On top of the income tax rebates, some homeowners will receive a rebate equal to the property tax credit claimed on their 2021 IL-1040 form. To be eligible, you must have paid Illinois property taxes in 2021 and income must be $250,000 or less. Checks will be direct deposited.
GOMB Issues ARPA Fund Report: GOMB released the ARPA Annual Recovery Plan detailing the state and local fiscal recovery funds under the American Rescue Plan Act (ARPA). ARPA was passed in March 2021, and in July 2021 Illinois received $8.127 billion from the Coronavirus State Fiscal Recovery Fund (CSFRF) as part of ARPA. The funds can be used for a variety of purposes, including supporting public health expenditures, covering State costs of responding to the COVID-19 pandemic, addressing the negative impacts caused by the pandemic, replacing lost revenues of the governmental unit (and allowing such lost revenues to be used for providing government services), pay for essential workers, and investing in water, sewer, and broadband infrastructure. The FY23 budget essentially fully allocated Illinois CSFRF funds with the expectation that the funds will expend over multiple years (through December 21, 2026).
Lake Michigan EV Circuit Announced: Illinois, Indiana, Michigan and Wisconsin are collaborating to build the Lake Michigan EV Circuit, which will establish a network of EV chargers spanning over 1,100 miles of drivable shoreline around Lake Michigan. The project is based on an MOU between the four states agreeing to build the best new road-trip for EV drivers in America. The Lake Michigan EV Circuit Tour will be a scenic route with light-duty vehicle charging options along the Lake Michigan coastline that targets charger installations at key coastal communities, lighthouses and tourism attractions. The new chargers will be tied together with the existing charging infrastructure. The project will support the tourism industry in the Midwest and elevate economic growth and provide EV drivers with a long-distance travel vacation opportunity.
Illinois Transportation Enhancement Program Open: The application period for the Illinois Transportation Enhancement Program (ITEP) is open August 1 through September 30th. Local governments, regional planning commissions, and private entities with a public sponsor are eligible for awards up to $3M for eligible projects, which include biking and walking paths, trails, streetscape beautification work, and other improvements designed to encourage safe travel across the various modes of transportation at the local level.
Medicaid Rate for Reproductive Healthcare Increased: Effective Sept. 1, 2022, Medicaid reimbursement rates for abortion providers will increase by 20 percent, which is approximately a $3M increase. Additionally, the state’s 98 family planning providers will also be receiving a $2 million Title X investment from the state for services including HIV testing, cancer screenings, fertility testing, etc. The state is also eliminating a requirement that providers receive a Medicare denial prior to requesting Medicaid reimbursement, streamlining the process for patients that are eligible for both programs.
Pritzker Issues Monkeypox Disaster Declaration: Governor Pritzker issued a gubernatorial disaster proclamation declaring the monkeypox virus a public health emergency and the state of Illinois a disaster area regarding the disease. The declaration allows the Illinois Department of Public Health to utilize resources for coordinating logistics across state agencies, quickly and efficiently aid in the distribution of vaccines and in the prevention and treatment of the disease. The proclamation will also assist state agencies in coordinating response with the federal government.
Illinois Airport Plan Released and August Declared Aviation Appreciation Month: IDOT released the first comprehensive study of airports in more than 25 years. The Illinois Aviation System Plan identifies short- and long-term needs and goals of the state’s airports. The report analyzed 85 public-use airport facilities and focused on individual airports and the aviation system as a whole, looking at ways they can support economies throughout the state, improve quality of life and boost mobility. Interestingly, the report found that 81% of Illinoisans live within 30 minutes of an airport, and half of Illinois airports are less than a mile from a major road while 88% are within two miles of one.
Illinois Department of Labor Finalizes Domestic Worker Rules: The Illinois Department of Labor finalized rules for the employment of domestic workers, aimed at better defining pay and record keeping. The rules grant domestic workers minimum wage protections, includes provisions for time and one-half pay for overtime hours, clarifies how employers should account for rest periods, establishes parameters for when meal or lodging costs can be deducted from a worker’s paycheck, requires employers of domestic workers to keep wage and hour records, and clarifies on when multiple employers share services of a domestic worker. The rules take effect August 1, 2022.
Attorney General Raoul Warns of New Bank Scam: Attorney General Kwame Raoul issued a warning regarding a new scam that looks to use fake bank websites to target consumers’ personal information. Scammers create the websites to make them look like a legitimate bank website to lure consumers into thinking they’re entering their personal information to create a bank account. IDFPR recommends that consumers considering opening a bank account contact their bank directly to do so and urges banks to consider placing a notice on their website and in their branches to alert customers.
Carvana Wins Temporary Injunction Against Illinois: Carvana’s request to halt the Secretary of State’s revocation of its license to sell vehicles in Illinois was granted this week after the Secretary of State suspended the big-box car-dealer’s license. The order forbids the secretary of state from "suspending or revoking" Carvana's certificates of authority and dealer plates. According to court records, the next action on the case will take place Aug. 30.
Health Insurers Propose Increases for Exchange Plans: Illinois residents who buy health insurance through the ACA Exchange will likely see prices rise for next year. Ten Illinois insurance companies that sell plans on the exchange are proposing average rate increases of about 3% to nearly 16% for plans in 2023. Blue Cross, Celtic and UnitedHealthcare blamed the proposed increases on rising medical costs in documents submitted with their proposals at ratereview.healthcare.gov. In Illinois, 85% of people who bought plans through the exchange in 2020 also received the subsidies during the pandemic, but those enhancements are set to expire at the end of this year and revert back to their previous parameters. Advocates of the fear that if they disappear, many consumers may drop their health insurance coverage because it will no longer be affordable.
Clean Jobs America Report Ranks Illinois 5th for Clean Jobs: The nonprofit group E2 released its seventh annual Clean Jobs America Report, which found that 3.2 million Americans work in clean energy, a 5% increase from last year, and every clean energy sector grew last year. The states that lead the U.S. in total clean energy jobs, in order, are California, Texas, New York, Florida, Illinois, Michigan, Massachusetts, Ohio, North Carolina and Pennsylvania. Jobs building electric vehicles had the largest growth (by 26%), with states like Georgia, Kentucky, Texas and Tennessee, benefiting the most from the expansion. greatly from expansions of EV and other clean transportation manufacturers, and also would benefit from electric vehicle tax credits included in the Inflation Reduction Act. Interestingly, about 90% of all clean energy jobs were employed by small businesses, defined as companies that employed fewer than 100 workers.
U of I Starting First Amendment Clinic: The University of Illinois College of Law is establishing a First Amendment clinic to take on freedom-of-expression cases and train lawyers. The clinic will be funded by a grant from the New York-based Stanton Foundation, which has funded 11 First Amendment clinics in its lifetime.
Nearly 20,000 Cook County Residents Hold Revoked FOID Cards: Cook County Sheriff Office revealed to a legislative panel that nearly 20,000 Cook County residents are with revoked firearm owner’s identification cards have illegal guns. At a hearing of the House Public Safety and Violence Prevention Task Force the Sheriff’s Office stated staffing issues are the main reason the revoked cards and weapons remain on the streets. Since 2013, a team of six officers have gone to the homes of those whose FOID cards have been revoked, to date recovering 881 guns. The Office stated 33,000 Cook County residents’ FOID cards have been revoked over the years, and nearly 20,000 have not turned in their cards.
O'Hare's Recovery Picks Up Momentum: O’Hare International Airport finally is in recovery from the COVID-19 pandemic, a good sign for the airport as it embarks on a major terminal modernization and expansion project. In the first six months of the year, total flight operations at O’Hare grew a whopping 22%, far more than most major airports. As a result, O’Hare has moved back to second place on the busiest U.S. airports list, narrowly trailing Atlanta’s Hartsfield-Jackson. O’Hare is a transfer point for East-West traffic and that recovered more slowly than North-South flights to warm-weather leisure destinations. This combined with United Airlines adding flights and Southwest Airlines now operating there are making the $8.5 billion terminal project seem like a great idea.
Chicago Park District Pension Overhaul Leads to Stability: The Chicago's Park District's pension overhaul that pulled the system off a track to insolvency have stabilized the district's ratings, and Fitch and S&P revised the outlook to stable from negative on the district's AA-minus general obligation ratings. The pension plan was changed in 2021 to put it on track to reach a 100% funding goal by 2057. The district is among the higher-rated Chicago sister agencies. The district's fund balance was more than $200 million at the close of 2021, with an additional $23 million added in 2021. Pension strains still weigh on the rating, but it marks a turnaround for a system that is carrying a nearly $800 million unfunded liability.
Chicago’s Annual Investor Conference: On August 24th Chicago will highlight economic initiatives while CFO Jennie Huang Bennett will plead the city's case with the buy-side for its fiscal turnaround at an annual investors' conference next week. The city will kick off the day with tours of O'Hare International Airport, which is undergoing a renovation and expansion, the Jardine water purification plant, a new public safety academy, a Chicago Transit Authority electric charging facility, and the proposed sites for a casino. The event will have an intermission lunch with Mayor Lori Lightfoot followed by remarks and an evening reception.
Out-of-State Patients Seeking Abortions in Illinois Skyrockets: An increase of out-of-state patients seeking abortions in Illinois is contributing to spiking wait times. Prior to the Supreme Court striking down Roe v. Wade, a patient could schedule an appointment to terminate a pregnancy in three or four days, but now it’s taking on average three weeks or more because of an influx of out-of-state patients. The influx of out-of-state patients has surged all over the state, but so far wait times to have an abortion in the Chicago area haven’t increased significantly, according to Planned Parenthood of Illinois. Planned Parenthood claims it would typically provide services to 100 out-of-state patients each month, and last month it provided more than 800. The massive influx of out-of-state patients has hit southern Illinois providers particularly hard, in part because this region only has two abortion clinics, the majority of clinics are in the Chicago area.
Supporter Rally for Illinois Workers’ Rights Amendment: At a rally in Collinsville, speakers made it clear that the key to passing Illinois’ Workers’ Rights Amendment in November will be mobilization of every Labor supporter. Tim Drea, IL AFL-CIO President, said this vote is too important to miss in this election and he has been attending rallies across the state to fire up supporters.
UPCOMING HEARINGS & SEMINARS
Statutory Court Fees Task Force Hearing: The Illinois Supreme Court Statutory Court Fees Task Force will hold a public hearing on Tuesday, August 30th at 9 a.m. via Zoom. The Task Force seeks oral testimony and written comments on its draft report and recommendations, which can be found on the Supreme Court’s website.
Rules Committee Hearing: The Illinois Supreme Court Rules Committee will hold a public hearing on October 5th to discuss six proposed rule changes. Written comments or those who want to testify should notify the Committee by September 28th via email at RulesCommittee@illinoiscourts.gov.
Procurement Equity Seminar: The IL Office of Minority Economic Empowerment (OMEE) and the IL Small Business Development Center Network will host a seminar on August 24 @10am that will feature procurement officers from public and private sectors to discuss how Black businesses can take advantage of contracting opportunities. The seminar will include presentations about assistance available to help successfully certify as an MBE and bid on contracts. Sign up here.
FEDERAL COURT VACATES SHAKMAN DECREE
On Friday the Seventh Circuit vacated the Shakman Decree against the Governor, starting the process of ending one of the oldest cases in Illinois. Six different federal judges have overseen the case, more than 1,000 status reports have been filed, and more than 10,000 entries on the federal docket have been filed since the original consent decree took effect in 1972. To understand the effect of this decision, you have to know a bit of the history.
In 1969, Michael Shakman, an independent political candidate for the 1970 state constitutional convention, and a voter named Paul Lurie filed a class action lawsuit against various political organizations and units of government claiming that political patronage violated the rights of independent candidates and voters. In 1972, the parties, including then Governor Richard Ogilvie and various units of local government, mutually agreed to a federal consent decree that made it clear that political reasons and factors could not be used when making certain governmental employment decisions. After the 1972 decree was entered, in two separate cases the U.S. Supreme Court found that governments could not constitutionally base public employment opportunities on political affiliation and may not consider political affiliation in hiring except as to certain exempted political positions. One of those cases was Rutan v. Republican Party of Illinois, 497 U.S. 62, 79 (1990). Those cases should have, in my opinion, ended the Shakman consent decree since the Court held patronage unconstitutional, despite the fact it had played a prominent role in American political life since the nation’s founding. As a result of these cases, it was made clear that governments couldn’t consider party affiliation or political activities when hiring, with exception for certain policy related positions. However, the Shakman decrees lived on.
Over the past 50 years the various decrees covered the Governor, the City of Chicago (released in 2014), Cook County (released in 2018), and other county offices including the Cook County Recorder, Treasurer, Circuit Clerk, Assessor, Sherriff, Clerk, Forest Preserve, Metropolitan Water Reclamation District, and on and on. The units of government impacted had to work with private attorneys representing the Shakman plaintiffs and federal special masters tasked with monitoring the review of employment related decisions – from employment manuals, to the hiring process, to the staff coordinating hiring, to the types of resumes that were received and reviewed by a state or local agency, even time keeping records. Taxpayers have spent tens of millions of dollars on Plaintiffs’ legal fees, fees charged by the monitors, and fees for outside defense counsel. This doesn’t include the tens of millions more spent by agencies on compliance and their own legal fees, or the costs related to the state and county Inspectors General.
Specific to the Governor, in 2009, following the impeachment of Governor Rod Blagojevich, a bipartisan committee of the Senate and House recommended, and the General Assembly passed, an amendment to the State Officials and Employees Ethics Act that gave the Office of the Inspector General unfettered discretion to investigate allegations of political patronage in State government and "review hiring and employment files of each State agency within [its] jurisdiction to ensure compliance with Rutan v. Republican Party of Illinois... and with all applicable employment laws." 5 ILCS 430/20-20(9). In 2015, the Office created the Division of Hiring & Employment Monitoring to conduct compliance-based reviews of State hiring and employment procedures, file reviews and on-site monitoring of agency hiring decisions, and work with the monitor appointed in the Shakman litigation. (More on the OEIG’s role here.) As a result, employment-related decisions had oversight by agencies, the ultimate jurisdictional authority (i.e. Governor’s Office), lawyers representing the plaintiffs, inspectors general at the individual agencies, the Office of the Inspector General, court monitors, and federal judges.
In November 2019 the Clerk of Cook County filed a motion to vacate the Shakman decrees against that office, but the motion was denied by the magistrate judge then presiding over the case. The Seventh Circuit affirmed when the Clerk appealed, but it cautioned the decrees left the Court with “serious concerns about the duration and seemingly never-ending nature of the Shakman decrees.” The Court said, “Do not let today’s result cloud the grave federalism concerns we have with the fact that the Clerk of Cook County has been under the thumb of a federal consent decree for the last 50 years.” After the Clerk’s decision was handed down, the Governor moved to vacate the decree against the State. The District Court denied the Governor’s motion and the Governor appealed. Friday the Seventh Circuit reversed the District Court and remanded the case back with direction to vacate the decree against the Governor.
The Court stated in its opinion, “What may have started with a federal court’s well-grounded injunction came to look more like indefinite federal judicial supervision of state employment practices.” The Court said “What most concerns us is that the special master’s oversight—which the district court relied on in denying the Governor’s motion to vacate—has drifted beyond any obligation imposed by the decree and, most certainly, the Constitution. Nowhere do we see the special master, the district court, or Shakman and Lurie on appeal relying on the standards articulated in Elrod and Rutan to identify constitutional violations.”
What may have started as a good-faith effort to challenge that patronage practices in effect in the 1960s had crept over the years into a cottage industry for plaintiffs, the court appointed monitors, and outside defense counsel focused on employment minutia rather than the requirements of federal law. (For Office Space fans: It was as though the federal court had appointed many Bill Lumburgs to oversee how well governmental offices filled out their TPS reports.) The Seventh Circuit decided that was too much, holding “leaving the Governor subject to the 1972 decree is no longer warranted or tolerable. Governor Pritzker has demonstrated substantial compliance with the decree and identified and instituted durable remedies to help ensure that compliance sticks. He has earned the right to make employment decisions for the state on his own and not under the terms and conditions of the 1972 decree or the watchful eyes of a special master and federal court. We cannot let perfect be the enemy of the constitutionally adequate.”
Though the decision only affects the Governor, it was written to clearly provide guidance to the other offices still under decrees. In fact, shortly after the Seventh Circuit’s Order was issued Friday, the district judge ordered supplemental briefing on the Cook County Clerk’s pending motion to vacate to discuss the decision. Other offices under the decrees and court appointed monitoring are expected to consider moving to vacate as well.
After 50 years and countless millions of dollars out of state and county coffers and into the pockets of attorneys, the federal court is on track to return control of employment decisions back to the officials elected by the people. It’s actually a very important reminder that elections have consequences. To those that may lament the good government reforms the decrees supposedly stand for, don’t. Governments are still barred from making employment decisions based on politics, and everything required by the decrees is already required by federal, state, or county law or policy. The only difference is taxpayers will no longer bear the burden of annually paying millions to court appointed monitors and attorneys.
More here, here, and here.
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Dan Kovats
Executive Director, Illinois Democratic County Chairs' Association
Check out the IDCCA online at www.ildcca.org
(773) 351 - 7818 - Cell
(217) 753 - 3380 - Office
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