Capitol Updates: April 29 week in review
This was an eventful week in Springfield with both chambers in session. Virtual charter school moratorium bill moves to Senate subcommittee The Senate Education Committee did not hear House Bill 494 during its hearing on Tuesday, so the Illinois Policy Institute’s Vice President of Policy, Ted Dabrowski, was unable to testify in opposition to the bill as planned. Instead,...
This was an eventful week in Springfield with both chambers in session.
Virtual charter school moratorium bill moves to Senate subcommittee
The Senate Education Committee did not hear House Bill 494 during its hearing on Tuesday, so the Illinois Policy Institute’s Vice President of Policy, Ted Dabrowski, was unable to testify in opposition to the bill as planned. Instead, Ted and our Director of Education Reform, Josh Dwyer, spent their time at the Statehouse meeting with members of the Senate and House Education Committees, explaining why placing a moratorium of any length on virtual charter schools is bad policy. Everyone – from teachers and administrators to education entrepreneurs and policymakers to parents and taxpayers – has a stake in improving student outcomes in Illinois. Digital learning uniquely offers the opportunity to do just that.
Ted and Josh also told lawmakers about the Digital Learning Symposium that the Institute is looking forward to hosting on Tuesday, June 25. This one-day conference will explore innovative ways to help students achieve their full potential with digital learning.
On Wednesday, HB 494 was assigned to the Senate Subcommittee on Charter Schools, where it will be heard next Tuesday, May 7; the bill could potentially see the Senate floor sometime next week.
Pension developments – the good, the bad and the ugly
On Tuesday, Ted testified at the request of state Sen. Jim Oberweis, R-North Aurora, on the merits ofSenate Bill 2026 during the Senate Executive Committee’s hearing. SB 2026 is a pension reform bill with language identical to the Institute-backed House Bill 3303.
Ted made the case for the real reforms proposed in both bills: namely, rejecting a funding guarantee (read: future tax hikes) and transitioning from a defined benefit system to a defined contribution, or 401(k)-style system. While SB 2026 will not move this year, we are nonetheless excited that our ideas are gaining traction as more and more lawmakers see the need to pass reforms proportionate to the size and scope of the state’s pension crisis.
Yesterday, the House passed Speaker Mike Madigan’s amendment to Senate President John Cullerton’s Senate Bill 1. Even though Madigan’s pension plan falls dramatically short of the reform Illinois needs, it passed the House 62-51-2.
While listening to the House debate on SB 1, the Institute’s government affairs and policy teams were encouraged by hearing several members raise the issue of a pension funding guarantee on the floor. State Reps. Jeanne Ives, R-Wheaton, and Dwight Kay, R-Edwardsville, used our argument that legislatively guaranteeing future payments would wrongly make government worker pensions a priorityover education, health care and public safety. Even House Republican Leader Tom Cross, R- Plainfield, referenced the funding guarantee component of Madigan’s pension plan.
We were also pleased to hear state Rep. Tom Morrison, R-Palatine, ask the General Assembly to consider the Institute-supported pension reforms proposed in HB 3303, which he sponsored.
Unfortunately, state Reps. Ives, Kay, Cross and Morrison all voted to pass Madigan’s plan.
Unlike HB 3303, SB 1 locks in the unmanageable defined benefit plan, guarantees the crowd out of core government services and continues the irresponsible pension payment ramp. Failing to abolish defined benefit plans keeps taxpayers on the hook for bailouts of a broken retirement system. Ultimately, Madigan’s pension plan would perpetuate Illinois’ crisis.
This morning, referencing yesterday’s House passage of Madigan’s plan, Gov. Pat Quinn predicted that this “comprehensive” pension reform will pass.
Institute-backed resolution opposing the progressive tax gains support
This week, our government affairs team picked up even more sponsors of state Rep. David McSweeney’s House Resolution 241, which opposes an amendment to the Illinois Constitution that would permit a graduated income or progressive tax. To date, 42 of 47 House Republican representatives have sponsored this legislation. The Institute applauds these members for making the right decision: implementing a progressive tax in Illinois would increase state income taxes on 85 percent of filers and destroy as many as 80,000 jobs. For the remainder of the legislative session, it is a top priority of the government affairs team to continue earning the support of the 98th General Assembly on this issue of critical importance to every resident in Illinois.
The Institute is committed to rejecting a progressive income tax in Illinois, but our broader vision is to one day get rid of an Illinois state income tax altogether. While Illinois’ economy is going up in flames with more than $9 billion in unpaid bills, more than half of states with no income tax had a surplus or no deficit in 2012.
Next week
Both the Illinois House and Senate will be in session next week, with committee hearings scheduled beginning on Monday. Apparently, Senate President John Cullerton promised Quinn that he will present the Madigan pension reform plan to his Senate caucus on Tuesday.