Tuesday, January 26, 2016

Illinois to invest $220M in venture funds focused on tech startups

Meg GrahamContact ReporterBlue Sky Innovation

Illinois Treasurer Michael Frerichs said Tuesday that the state will invest more than $220 million in venture funds focused on emerging local technology companies.

The Illinois Growth and Innovation Fund will invest the capital in 15 to 20 funds over the next three years, with no more than 15 percent of the money placed in any one fund. Tech leaders said the influx of new money will strengthen fledgling tech companies and create jobs.

Frerichs, who announced the initiative Tuesday morning at Merchandise Mart-based tech hub 1871, said the money will come from funds already allocated for investments and will be aimed at technology and bioscience companies.

An advisory board will oversee the investments, which will begin later this quarter. Northern Trust subsidiary 50 South Capital Advisors will manage the program.

“We think it’s going to help grow the technology industry here in the state; really make Chicago the leader in technology in the Midwest,” Frerichs said.

In 2002, Illinois lawmakers authorized the first Technology Development Account, which resulted in investments in venture funds that backed parking app company SpotHero, online childcare matching service Sittercity and cancer surgery probe maker Diagnostic Photonics, among other companies. The Illinois Growth and Innovation Fund is nicknamed “TDA II.”

“We expect to see... more great entrepreneurial stories, and we expect to see some great returns for the treasurer's office,” said Maura O'Hara ⇒, executive director of the Illinois Venture Capital Association.  

Above is from:  http://www.chicagotribune.com/bluesky/originals/ct-frerichs-tech-venture-funds-bsi-20160126-story.html

Red light camera case ends in bribery conviction

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(AP) — A federal jury has convicted a former Chicago official on all counts for taking bribes to steer $100 million in red-light camera contracts to a Phoenix company.

Jurors returned with a guilty verdict on all 20 counts Tuesday afternoon. They began deliberating the day before.

Prosecutors accused John Bills, the former second-in-command at Chicago's Department of Transportation, of accepting cash and gifts to help Redflex Traffic Systems obtain contracts.

In final arguments Monday, according to the Chicago Tribune, U.S. Attorney Zach Fardon detailed hotels stays, golf trips, an Arizona condominium, a South Side Chicago apartment and a Mercedes given to Bills for his efforts.

Defense attorney Nishay Sanan told jurors in his closing arguments that the money really went to "lobbyists who funneled it upstairs," tossing out names including Illinois House Speaker Michael Madigan, Chicago Mayor Rahm Emanuel and Chicago Alderman Edward Burke.

"You don't give that kind of money to a guy like John Bills. You give it to people who can get things done," Sanan said.

No elected officials have been implicated by prosecutors in the scheme, and Fardon called Sanan's contention "malarkey."

"The idea that lobbyists were paid to funnel money to people like Mike Madigan and Ed Burke and Rahm Emanuel is pretty grandiose, but there is not one single shred of evidence that supports any of it," Fardon said.

Prosecutors produced emails in which Bills described his efforts for Redflex.

Chicago Mayor Rahm Emanuel canceled Redflex's contract in 2013 following the newspaper's reports of the alleged bribery scheme. Bills retired from his job as the city's managing deputy commissioner of transportation in 2011, and he was charged in 2014.

ABOVE IS FROM:  http://www.chicagobusiness.com/article/20160126/NEWS02/160129864/red-light-camera-case-ends-in-bribery-conviction?utm_source=NEWS02&utm_medium=rss&utm_campaign=chicagobusiness

After ugly first year, Illinois' governor says stay tuned

 

By SARA BURNETT 1 hour ago

CHICAGO (AP) — Bruce Rauner takes pride in not being like any of Illinois' previous governors, either on matters of style or substance.

A multimillionaire in his first public office, the former private equity investor drops by watering holes in the state capital of Springfield to have a lowbrow Stag beer, despite having belonged to a six-figure wine club.

He eschews backroom steak dinners and doesn't drink caffeine, instead subsisting on so many salads and vegetable juices that some in the press corps have speculated about the carrot-orange tint to his skin. It's not unusual for him to be the worst-dressed man in a room, sporting plaid shirts that look like they came from the sale rack at a discount store.

Mostly, though, it's his politics. Unlike even his Republican predecessors, who often cut deals with Democrats and their labor union allies in the Legislature, Rauner boasts about being the first to stand up to them, even as it's led to a record-breaking stalemate. Seven months after Illinois' last budget expired, the state still doesn't have a new one, and money is running out for many programs.

Now, after the most unusual first year of any new governor in the country, Rauner is starting 2016 with signs that the strangest may be yet to come. As he prepares for his second State of the State speech this week, he is talking tougher than ever about his adversaries, particularly the "union bosses" he has already called "corrupt," and is raising the specter of growing chaos, including public employee strikes, layoffs and shutdowns in state services.

"I don't know what the tipping point is," said Emily Miller, who has advocated for social service agencies and other organizations at the Capitol for a decade. "The United States hasn't seen anything like this, so it's fair to say Illinois hasn't seen anything like this."

Rauner is one of a handful of GOP governors elected in recent years to lead mostly Democratic states, such as Wisconsin and Michigan, which has produced some big collisions. The situation echoes what's been seen lately in Washington and in parts of the national Republican party — using showdowns and shutdowns rather than compromises to achieve your goals.

But the struggle in Illinois is especially bitter and prolonged because the Democrats there are so strong, holding supermajorities in the Legislature.

Rauner, who spent more than $27 million from his own bank account to unseat the Democratic incumbent, says he's on a mission to reform a state that wastes public money, has $9 billion in unpaid bills and wants to solve problems with tax increases. He has promised to "deliver value for taxpayers" in part by ending the "self-dealing" by longtime politicians that has led to Illinois' worst-in-the-nation credit rating.

"The key to success in everything in life is persistence, and I am an extraordinarily persistent person," Rauner said Monday. "We need fundamental, dramatic change in Illinois ... We're not going to back down on it."

Rauner is demanding changes he says will attract more jobs to the state, such as weakened unions and lower workers' compensation costs, before he will approve a tax hike that Democrats want to help close a roughly $5 billion budget gap.

Democrats, including Rauner's top rival House Speaker Michael Madigan, have accused him of holding the budget hostage until he gets some of his priorities. They say his changes will lead to lower wages and hurt the middle class. And they believe he will eventually have to back down.

Rauner, Madigan said last week, is "more interested in driving down the wages and standard of living of middle-class families than working together to solve our state's problems."

Rauner's supporters, however, see him as a kind of hero. During stops in GOP-friendly southern Illinois late last year people lined up to take selfies with the long-armed governor, shake his hand and say thank you.

"I know it's got to be a fight but stay after it," local car dealer Keith Summers told Rauner during an event at a Mattoon manufacturing plant.

Both sides see the worsening fallout as perfect ammunition for campaign ads heading into the 2016 elections, when Rauner hopes to chip away at Democrats' statehouse majorities. That's promoted chatter that the siege could last beyond November.

Already, a growing number of social service agencies are closing because of the freeze in state funds. Lutheran Social Services just laid off half its staff and terminated programs such as in-home care for seniors and substance abuse counseling serving about 5,000 people. Several thousand university students are no longer receiving state tuition grants.

With contract deadlines approaching for the 40,000-member AFSCME, the state's largest public-worker union, and for Chicago public teachers, Rauner has said he doesn't want strikes, but if they happen, "We'll win."

Last week, Rauner pushed for a state takeover of the Chicago Public Schools, said Chicago itself should consider filing for bankruptcy and called Mayor Rahm Emanuel a failure.

Calling a news conference to announce a rare bipartisan deal on Illinois' worst-in-the-nation pension crisis, Rauner couldn't stop himself from threatening to strip unions of their power to bargain over wages — remarks that almost derailed the agreement. And he promised that legislators who vote to support the "Chicago machine" will be "called out."

Asked what that meant Rauner responded: "You watch."

ABOVE IS FROM:  http://news.yahoo.com/ugly-first-illinois-governor-says-stay-tuned-192432062--election.html

Cullerton puts school reform out front, says pension deal hopefully near

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State: Dems, GOP to talk school aid, pensions

January 25, 2016January 25, 2016 Shane Nicholson 1280 Views 0 Comment

Cullerton puts school reform out front, says pension deal hopefully near

By Mark Fitton
Illinois News Network

SPRINGFIELD — State Senate President John Cullerton, D-Chicago, dropped two big pieces of news Monday:

  • Cullerton wants a rewrite of the state’s school funding formula, and he’s linking it directly with talks about the overall state budget.
  • He and Gov. Bruce Rauner, R-Winnetka, are back on the same page regarding a pension reform bill.

Cullerton, D-Chicago, argues the state’s two-decade-old school funding formula doesn’t adequately address student needs, therefore rewarding prosperous school districts while penalizing those with higher levels of poverty.

Speaking at the City Club of Chicago, the Senate president called the school funding formula “most inequitable system of school finance in the country” and “the defining crisis of our times.”

And Cullerton made it clear it’s a big issue for him: “The governor has linked things together. We don’t have a (fiscal year 2016) budget because he’s got his Turnaround Agenda. So, I can link things together, too. This is a turnaround agenda. We’ve got to change the school funding formula.”

Cullerton argued a fair rewrite of the funding formula would ultimately benefit Chicago but would not be giving it special treatment.

He said Chicago would getting funding proportionate with its high percentage of low-income students in the same fashion as other challenged districts, such as East St. Louis or East Aurora.

And, he said, a single formula must give Chicago pension parity. That is, the state would pick up the same share of pension costs as it does for downstate districts.

Chicago, however, would lose block grants that it now qualifies for, Cullerton said.

“It’s not a special deal for Chicago; we’re eliminating the special deals,” he said.

“The amount of money we are talking about shifting is about $400 million into the poorer school districts out of about $8 billion,” he said. “It can be done in a fair way.”

The governor’s press office declined to comment on Cullerton’s remarks, but the GOP’s legislative leaders did offer emailed statements.

“Senate President Cullerton’s remarks today will strike fear in the hearts of families and schools across the state. He’s threatening the opening of schools next fall,” said Senate Republican Leader Christine Radogno of Lemont.

“The Democrat majority-controlled state government for more than ten years and ignored school funding reform — other than to create special deals for Chicago Public Schools,” she said. “The most recent proposal again advantaged Chicago at the expense of suburban school districts.”

Radogno said Senate Republicans “are willing to tackle school funding reform — but it’s not the only place in Illinois ripe for reform. We need to work together for school reform and the structural reforms that will help all of Illinois.”

Rep. Jim Durkin of Western Springs, leader of the House Republicans said, “As a suburban legislator, I remain open to working with the Democrats to fix our archaic school funding formula.”

“At the same time, I hope this means Democratic leadership is now ready to work with us on other structural reforms to put Illinoisans back to work and to bring the budget impasse to a close,” Durkin said.

House Speaker Michael Madigan’s spokesman did not a return phone message seeking comment.

Illinois is in the seventh month of fiscal year 2016 without a budget.

Rauner complains Democrats sent him a spending plan $4 billion heavier in spending than estimated revenue.

Democrats complain Rauner and the GOP have been unwilling to work with them on a plan until the governor gets movement on his own agenda items, which Democrats do not consider directly related to the annual budget.

Meanwhile, the state is said to be spending on 90 percent of its annual obligations as it funds primary and secondary education and meets expenses incurred by way of debt service, continuing appropriations and court decrees.

That spending — which does not include higher education nor many human services — is said to be running at a clip that would put Illinois as much as $6 billion in the red for fiscal 2016 if nothing changes.

Pension deal?

Speaking to reporters after his speech, Cullerton said he and Rauner had spoken Monday morning and smoothed out their differences on pension reform legislation, and that bill is now being drafted.

“I think we have an agreement,” Cullerton said. “There are some tweaks to be made by the lawyers, and then the question’s going to be, ‘How do we pass it?’”

“All these pension bills in the past that have passed have been very bipartisan and controversial, so we expect that the unions will probably not be supportive. So, that will make it more difficult to pass, but we’re going to be on the same page,” Cullerton said.

The plan reportedly focuses on giving state employees a choice. For instance, an employee who wants to keep the 3 percent, compounded cost-of-living raises payable in retirement would have to accept a lower pensionable salary. On the other hand, the employee could take the higher salary while working but get smaller cost-of-living raises while in retirement.

Backers of the Cullerton plan say it could save Illinois — which has unfunded pension liabilities of more than $111 billion — about $1 billion annually.

However, even supporters acknowledge such a plan likely would face a court challenge if passed.

The Illinois Supreme Court last year threw out a 2013 pension reform effort, saying it violated the pension protection clause of the state constitution that says membership in a public pension system is a contractual relationship, “the benefits of which shall not be diminished or impaired.”

Cullerton said he doesn’t expect opposition to the plan from Speaker Madigan, D- Chicago, who he described as “not reluctant to take on pension reform.”

“The problem is going to be many of our members are probably going to say, ‘Well, that’s OK; that’s pension reform. But what about the rest of the budget? What about all the other issues?’”

Cullerton said the pension bill he and Rauner are working on does not include diminishment of collective bargaining for state employees.

“That’s not part of the deal,” the Senate president said.

ABOVE IS FROM:  http://rockrivertimes.com/2016/01/25/state-dems-gop-to-talk-school-aid-pensions/

Gov Rauner Approval Rating Still Around One-Third

Gov Rauner Approval Rating Still Around One-Third

Posted on January 25, 2016

More Illinoisans have a definite opinion on the job Governor Bruce Rauner is doing, according to a new poll. The January data, commissioned by the “Illinois Observer” and conducted by Chicago’s Ogden and Fry, finds Rauner’s approval rating at 33-point-one-percent, which is up from 32-point-three-percent in October. Rauner’s disapproval rating is 51-point-six-percent, which is also up from 49-point-nine-percent. The number of undecided voters dropped accordingly.

Above is from:  http://www.wjol.com/2016/01/25/gov-rauner-approval-rating-still-around-one-third/

Moffitt calls for vote on state budget and governor's agenda

 

Posted: Monday, January 25, 2016 9:21 pm | Updated: 9:21 pm, Mon Jan 25, 2016.

By Eric Timmons, etimmons@qconline.com qconline.com

MOLINE -- It's time for an up-or-down vote both on Gov. Bruce Rauner's "turnaround agenda" and a state budget, state Rep. Don Moffitt, R-Gilson, said at a Quad Cities Chamber of Commerce event on Monday.

Illinois has gone almost seven months without a budget, largely because Gov. Rauner has insisted any budget deal be tied to the turnaround agenda, which includes a raft of anti-union measures that are vehemently opposed by Democrats.

Rep. Moffit, a veteran Republican lawmaker who is retiring after this year's elections, told a legislative forum organized by the chamber at Stoney Creek Hotel and Conference Center in Moline that it was time for action.

"Let's have an up-or-down vote, see where the chips will fall," he said. "Let's vote on the turnaround agenda, get a bill on the governor's desk or prove that we can or can't get it there."

The turnaround agenda includes a proposal to allow local governments to forgo bargaining for wages and benefits with unions and other measures likely to hurt organized labor.

Gov. Rauner's spokeswoman Catherine Kelly said Monday afternoon the governor agreed with Rep. Moffitt that it was time for lawmakers to vote on his policy proposals, although Democrats already have voted down several parts of the turnaround agenda.

Democrats passed a $36 billion budget last year, but it was vetoed by the governor because it was $4 billion short of estimated revenue.

"Let's have an up-or-down vote on the $36 billion in spending but only if attached to that is the revenue to support $36 billion, in other words, can we actually fund it," Rep. Moffitt said.

Gov. Rauner has suggested he's willing to negotiate with Democrats on raising taxes to meet proposed spending but only if his reforms are included in any deal.

Rep. Moffitt said it was time for the governor and leaders of both parties to understand "there's a time that half a loaf is better than no loaf" and to "quit hiding" and pass a budget. He urged members of the Quad Cities Chamber of Commerce to communicate that message directly to the governor.

"It's going to be more important that it come from the business groups, really, than from us at this point because we've been pretty blunt behind closed doors, but what happens behind closed doors in caucus stays there. We have relayed your message loud and clear there, but I think the governor needs to hear it," he said.

Most of the things the state funds have continued to be funded during the budget impasse because of court orders and laws.

But the areas that are not being funded include colleges and many nonprofits that depend on state funding to provide services to seniors and the disabled.

Last week, it was announced that Intouch Adult Day Services in Moline would close Feb. 26 with 70 job losses because it could no longer continue without state funding.

State Sen. Neil Anderson, R-Rock Island, also spoke at Monday's chamber event. He said he was troubled by the news that Intouch was closing its doors, but he said it could be many months before lawmakers and the governor agree on a budget.

"The talk is that it's going to be after the election in November. The saddest part is we all know what the elephant in the room is and why. It's because of politics; there's an election coming up, and that's disgusting to me," he said.

Democrats have shown a willingness to compromise with the governor by cutting spending, said state Rep. Mike Smiddy, D-Hillsdale, and in other areas such as worker's compensation. But Rep. Smiddy, who was not present at the chamber event, said the governor has not shown any willingness to find common ground.

Above is from:  http://www.qconline.com/news/local/moffitt-calls-for-vote-on-state-budget-and-governor-s/article_5aaa1d96-4fbe-5226-baa4-fbba260385b8.html

Today’s number: 145,441

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Today’s number: 145,441

Monday, Jan 25, 2016

* Press release…

Since September 28, 2015, Illinois Area Agencies on Aging have been providing a weekly alert addressing the impact of the budget Impasse. I4A is chronicling the erosion of services to seniors in the State of Illinois. Given that we are in late January and there is no visible effort to address and resolve the budget crisis, we are now projecting an Illinois that does not support older people who are in greatest need (or who can avoid unnecessary incapacitation with minimal assistance within their communities).

Last week I4A reported on the number of older people this year who have been denied meals and supportive assistance because of the budget Impasse. With major cash flow delays, no compensation under the Prompt Payment Act (meals and supportive services are distributed as grants - not eligible for interest when payment is delayed), expensive lines of credit and exhausted reserves, of course people have not been served.

The following itemizes the number of people who will be abandoned if state support for Planning and Service Grants and Community Based Services funding are forever gone:

    Annual number of people served by the Illinois Aging Network (federal and state support): 484,000
    Annual number of people served if only federal funding is received: 338,559
    Number of people who are abandoned under the current budget impasse: 145,441

Represented within your 145,441 older citizens/constituents affected by the loss of funding are a minimum of:

    1,621 people forced to enter nursing homes instead of exploring options for care
    206 people no longer able to receive door-to-door assistance with transportation – doctor appointments missed
    9,356 people literally missing the bus because of other lost transportation services
    105,973 people without information assistance, resulting in missed benefits and financial assistance
    4,067 people not receiving outreach to tell them that they can and should receive help
    387 people without a functioning home environment due to lost chore/housekeeping
    114 people facing added caregiver strain or leaving their loved ones alone because of denied respite
    163 people risking falls and other household injuries because no one can change a light bulb, etc.
    77 people left alone without a call from a concerned organization’s telephone reassurance
    303 people not understanding how they can survive with lost counseling services
    962 people not attending life enriching education classes
    516 people with undetected health issues because of lost health screening
    257 people unable to locate suitable housing, leaving them at risk of homelessness
    2,257 people without legal assistance to advocate for them to receive benefits they’re entitled to
    13,400 people locked out of senior centers
    6,525 people without recreational activity and often without a purpose to keep going

We are facing a projected loss of $5,417,708 of GRF normally supporting senior services in Illinois. Each of the 13 Illinois Area Agencies on Aging listens to their communities to assure that services of the highest priority are supported, thus these projections show the potential impact but will be adjusted based on planning principles and needs throughout the state. The bottom line is that nothing is self-supporting – the Illinois Aging Network is a balance of state, federal and local funding that provides the most responsive and important service network for older people in Illinois (and the nation). Thus home delivered meals are similarly lost when supportive services are not part of the community agency’s budget. It is time to resolve the budget impasse and identify the resources and priorities for Illinois spending based on the dignity and importance of every Illinois citizen.

Distributed for I4A by:
Jonathan Lavin
Chief Executive Officer
AgeOptions

Above is from:  http://capitolfax.com/2016/01/25/todays-number-145441/