Illinois Comptroller – Succession
Quinn appoints Stermer Comptroller;
Rauner to appoint for full term. The incumbent and recently-reelected
Comptroller Judy Baar Topinka passed away on Wednesday, December 10. A legal consensus calls for her office to
be refilled in stages. In the first
stage, urgently required to carry on essential State cash flow business,
departing Gov. Pat Quinn named longtime aide Jerry Stermer as temporary
Comptroller on Friday, December 19 to serve the remaining days of Topinka’s
first term. Stermer will voluntarily step
down as Comptroller on January 12, 2015.
The second stage
of replacing Topinka will cover the four-year term for which she was elected in
November 2014, starting on January 12, 2015 (the inauguration day for Illinois
statewide elected officials). The
Constitution has given Governor-elect Bruce Rauner the right to make an
appointment during this four-year period.
The newly-appointed Comptroller will have the heavy responsibility of
supervising the State’s money during a time of unprecedented demands on the
cash flow of the State. Topinka revealed,
before her death, that the State’s total of unpaid bills had climbed above $6
billion (Monthly Money Matters).
Illinois Comptroller – Succession – Special Session
Governor Quinn calls special session;
Constitution stands in way. Some advocate creating a special election to
add the office of Comptroller, on a one-time-only basis, to the presidential
ballot that Illinoisans will vote on in November 2016. Retiring Gov. Quinn has called a special session of the General Assembly to consider
legislative measures to provide for an off-term election for the office of
State Comptroller. The General Assembly
has been directed to meet in Springfield on Thursday, January 8.
The Constitution
of Illinois does not, however, currently provide for an off-term special election. Section 2 of Article V of the Constitution provides explicitly that the Comptroller and
the other statewide elected officials shall be elected at the general election
in 1978 and every four years thereafter.
Section 3 of the Constitution’s transition schedule, approved by the
voters in that year, moved the election dates for Statewide elected officials,
including the Comptroller, from presidential election years to midterm election
years. The change became effective in
1976-1978 and was the only time in the history of the current Constitution that
statewide officials have been elected to a two-year term.
Although the
retiring Governor has called upon Illinois lawmakers to assemble to pass a
legislative bill to enact a special election, constitutional language and
precedent does not allow them to do what he is asking them to do. The Constitution directs incoming Gov. Bruce
Rauner to appoint a new Comptroller to serve a four-year term ending in January
2019, and Rauner is preparing to fulfill his constitutional
responsibilities.
Illinois Comptroller – Memorial
Judy Baar Topinka honored at memorial
service. Friends of Comptroller Topinka gathered to
honor her memory on Wednesday, December 17.
The lifelong Republican had achieved many ties with fellow leaders on
both sides of the political aisle, and remarks were made by incoming
Governor-elect Bruce Rauner, who had hoped to work with Topinka; by Topinka’s
longtime chief of staff, Rauner transition team member Nancy Kimme; by outgoing
Gov. Pat Quinn; and by retired Gov. Jim Thompson.
A lifelong
resident of western Cook County, Topinka was remembered in suburban
Countryside. It was from this region
that she began her public service, in Thompson’s time, as a state
representative chosen by voters in the election of 1980. The Suburban
Life covered the
memorial service and gathering.
Constitution of Illinois
Proposal to merge statewide offices,
save money. The Topinka succession situation has renewed
interest in longtime proposals to reduce the size of Illinois state government
by merging the two offices of Comptroller and Treasurer. Under the Constitution, Illinois has two
elected statewide fiscal officers. The
Comptroller specializes in cash flow, the Treasurer specializes in cash
management, and the two officials monitor each other. Changes in the terms of office, or the work
responsibilities, of these officers will require the General Assembly to
approve a constitutional amendment and approval of this amendment by the people.
In the 98th
General Assembly, many proposals were made to merge these two offices. Modern business practices have tended to
commingle the formerly separate functions of cash flow and cash management, and
greater adherence to accounting standards is reducing the necessity for two
separate sets of eyes to look at the same financial books. Proposals to merge the Comptroller and the
Treasurer into a single statewide elected office, that of the Comptroller of
the Treasury, were made by lawmakers such as House Republican Adam Brown in HJRCA 44. The changing political status of these offices
in the wake of the 2014 general election, and Comptroller Topinka’s death, may
change the way Springfield lawmakers look at proposals like these in the near
future.
Governor-Elect Bruce Rauner – Inauguration, Budget
State’s chief executive position to
change hands on Monday, January 12, 2015. The office of
Governor-elect Bruce Rauner has unveiled their inauguration website. Events, to be held on
Sunday, January 11 and on Inauguration Day, will be held at the Abraham Lincoln
Presidential Museum, the Lincoln Presidential Library, and the Old State
Capitol.
The swearing-in
ceremony itself will be held at Springfield’s Prairie Capital Convention Center
on Monday, January 12. Attendees at the
space-limited facility are requested to be present at 11:00 a.m. In addition to Rauner, Lieutenant Governor
Evelyn Sanguinetti, Secretary of State Jesse White, Attorney General Lisa
Madigan, and Treasurer-elect Mike Frerichs will take their oaths of office.
It is expected
that the ceremony will include a moment of silence in honor of the late
Comptroller-elect Judy Baar Topinka, and that Governor-elect Rauner will be
granted the opportunity to appoint a new Comptroller soon after taking the
oath.
Among other
innovations, Bruce and First Lady-elect Diana Rauner are moving away from the
Inaugural Ball traditionally held on the evening of the swearing-in day. Instead, they will host an Inaugural Concert at the Convention Center.
Rauner tackles budget crisis, promises
scrutiny. As plans for the inauguration move forward, Governor-elect
Rauner and his leadership team are concentrating on urgent budget
challenges. The FY15 State of Illinois
budget approved by Democratic legislators and signed by Governor Quinn
contained unrealistic expenditure numbers; many agencies are reporting that
their money is running out and are asking for additional taxpayer funds. Funds for some of these requests could be
provided in the form of a “supplemental appropriations” bill, but this measure
would have to get the approval of both houses of the General Assembly and be
signed by the new Governor.
Speaking at a
Springfield forum hosted by the Better Government Association (BGA), an NGO watchdog organization,
Governor-elect Rauner announced his opposition to these “fundamentally dishonest” budget
numbers on Tuesday, December 16. The
incoming chief executive indicated that he and his campaign team were carefully
scrutinizing the agencies’ requests and that many of his responses would be “a
little bit painful” to established interests in Springfield.
As the
Comptroller’s office has reported that the State already has more than $6
billion in unpaid bills, it is not clear where money would come from to meet
spending requests by agencies needing additional funding. The BGA describes Rauner’s remarks here.
General Assembly – Inauguration
Lawmakers to be sworn in separately
from Executive branch. The Constitution assigns the General
Assembly, a co-equal branch of government, a swear-in date that is different
from the slate of statewide constitutional officers headed by the Governor. The new 99th General Assembly will
be sworn in on Wednesday, January 14, 2015, two days after Governor-elect
Rauner.
The Illinois House
inauguration ceremony will be held in the Auditorium Hall of
the University of Illinois at Springfield.
Many friends and family members of lawmakers from both parties are expected
to attend. Watch the Week in Review and
our sister publication, The Caucus Blog, for more information about these
approaching events.
The incoming
leadership of the Illinois House has posted a schedule for the newly-elected
lawmakers’ expected work activities in spring 2015. The calendar has been posted on the General
Assembly’s website.
Flu Season
Flu season hits Illinois with medical
warnings. Infectious disease specialists point out a gap
between the strains of flu protected against by each fall’s flu vaccine and the
strains that actually hit the United States.
The Associated Press and its partner, the Northwest Herald, reported an increase in flu-related hospital admissions on
Saturday, December 13. The Department
of Public Health
reports that 115 of these patients have been admitted to intensive care
treatment units. Cases of flu often need
to be monitored with special care when the victim or potential victim is
already facing other long-term or acute health challenges.
Persons with
infectious diseases are encouraged to stay away from public places, including
schools, workplaces and especially health facilities. The Chicago Tribune reported climbing absentee rates at Illinois primary and secondary
schools on Wednesday, December 17 as parents withdrew pupils from classes and
activities. Persons who have been
vaccinated will continue to be partly protected from this year’s flu
threat.
Gambling – Video Gaming
Controversy as
secondary-liquor-license applications pile up. Under the Video Gaming
Act, passed in 2009, many Illinois taverns with owners in legal good standing
are eligible to apply for a license to install up to five video gaming
machines. Illinois-licensed video gaming
machines must be owned and serviced by a licensed terminal operator; the tavern
hosts the machines, and the terminal operator pays rent to the host for the
right to operate the machines. When the
General Assembly enacted this law, they intended the new machines to provide
entertainment for customers, raise tax money for State and local governments,
and rescue many small businesses and community gathering-places from the economic
challenges of the “Great Recession.”
The law, in its
current form, contains a loophole that has begun to encourage other businesses
to apply for secondary liquor licenses, separate from the main focus of their
business. Once a successful applicant
obtains a license from its local government to sell cans of beer from a cooler,
the applicant can use this liquor license as a platform to apply for permission
to install up to five video gaming machines.
The Illinois Gaming Board and local alcohol-zoning panels have
noted increased video gaming applications from offices and businesses that have
the alleged intent of selling alcohol as a sideline business, secondary to the
underlying goal of hosting the machines.
An unverified accusation of this type against a local auto body shop,
made in Springfield, has been covered by local radio station WMAY-AM and the State Journal-Register. More than 100 signatories have
petitioned against granting a liquor license to the body shop.
The Video Gaming Act authorizes local governments with
zoning control over their jurisdictions to control the spread of video gaming
within their boundaries. Some
municipalities and counties have even “opted out” of the Video Gaming Act
altogether. However, the share of video
gaming tax revenues paid to local governments makes controls of this type a
serious decision for a revenue-pressed county or municipality to make.
Medical Cannabis – Coordinated Administration of Act
Deadline approaches for eligible
patients and their physicians to submit applications.
The cannabis-card division of the Medical Cannabis Pilot Program, operated by the Illinois Department
of Public Health (IDPH), imposes strict controls on potential card applicants. Only patients with certain clearly defined
and diagnosed medical conditions, independently recommended for this treatment
by a medical doctor, will be eligible to apply for a cannabis card. The IDPH has set up a website for
eligible patients to begin the application process.
Under the Compassionate Use of Medical Cannabis
Pilot Program Act,
applicants must comply with the rules and regulations promulgated by the
Department. IDPH is strongly encouraging
patients to begin the application process prior to December 31, 2014, as they
have staff in place now to conduct the verification process necessary to
confirm a patient’s eligibility to receive a cannabis card. Only patients with cards, and their
caregivers, will be eligible to enter the dispensaries that will be authorized
to sell cannabis and cannabis medications to approved patients. Dispensaries, regulated by the Department
of Financial and Professional Regulation (DFPR) will be highly
secure facilities under the provisions of the Pilot Program Act, and part of
the cost charged to patients will be used to maintain 24/7 security in
dispensaries and cultivation centers.
Cultivation centers will be regulated by the Illinois
Department of Agriculture (IDOA).
Nothing will
prevent newly diagnosed patients from commencing an application process after
December 31, but they may face delays in getting cannabis cards. It is expected that a network of approved
cultivation centers and dispensaries will be in place shortly throughout
Illinois. Patients diagnosed with
cancer, glaucoma, HIV, multiple sclerosis, Parkinson’s disease, post-concussion
syndrome, seizures (including seizures characteristic of epilepsy), spinal cord
injury, and certain other diagnoses are eligible to start the application
process. IDPH has posted a list of frequently asked medical-cannabis questions and answers,
including a complete list of eligible diagnoses.
Taxes
“Tax rollback day” approaches.
Under the terms of Illinois’ largest-ever tax increase law, P.A. 96-1496
(SB 2505) Illinois income taxes paid by
individuals and corporations are scheduled to be partly (not completely)
rolled back on January 1, 2015. Under
the terms of the tax-hike law, passed by legislative Democrats and signed by
Gov. Quinn, the income tax paid by Illinois residents on their individual
income is scheduled to be partly rolled back from 5.00% in calendar year 2014
to 3.75% in calendar year 2015 and following years. The corporate income tax rate is scheduled to
be partly rolled back from 7.00% to 5.25% at the same time. The new rates created by this rollback are
supposed to remain in place for 10 years, until December 31, 2024, when a
second rollback cycle is supposed to take place.
Week in Review
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