Friday, July 10, 2015

Illinois budget impasse seen lasting for weeks

 

By Karen Pierog

CHICAGO (Reuters) - The standoff in Illinois between newcomer Republican Governor Bruce Rauner and long-time Democratic House Speaker Michael Madigan showed no sign of abating as the state approached a second full week without a budget for the fiscal year that started July 1.

"This could go on for weeks. Or a few months? It’s all uncharted waters at this point," Christopher Mooney, director of the Institute of Government and Public Affairs at the University of Illinois, said on Friday.

He said pressure to pass a budget eased with Rauner's signing last month of a funding bill ensuring schools will open on time in September. The pressure could ease further if state courts ultimately allow state workers to be paid without a budget.

While Rauner and Madigan exchanged barbs this week, Illinois continued to have the worst funded pension system and the lowest credit ratings among the 50 states.

The budget battle has not triggered any rating action that could push Illinois into the low-investment grade level of triple-B rarely assigned a state. That could change.

Moody's Investors Service analyst Ted Hampton said the longer the impasse continues, the harder it will become for Illinois to balance its budget.

"At a certain point, the impasse, the gridlock does matter," he said. "The question is who's going to blink first."

Standard & Poor's warned this week it could take "rating action within the next two months, even in the absence of an adopted budget if, in our view, there is limited progress in budget deliberations or if credit fundamentals weaken."

On Wednesday, Rauner dared Madigan to use his Democratic House majority to pass a tax hike, a move the speaker later said was "not realistic." The governor also reintroduced a package of controversial reforms, including a property tax freeze and legislative term limits, that he wants before he considers new revenue.

Madigan shot back, releasing a list of seven House hearings that Rauner's Administration failed to attend to answer questions despite the governor's campaign pledge for an open and transparent government.

"We have considered the issuance of subpoenas but we haven't done it because we want to be reasonable," Madigan told reporters on Thursday.

Overtime legislative sessions have given lawmakers a stage to vent frustration at the impasse and each other.

During a Thursday House debate on a one-month budget, Republican State Representative Chad Hays suggested that lawmakers be locked in the capitol.

"This is ridiculous. Day after day after day we're no closer to a budget," he said.

(Reporting By Karen Pierog; Editing by David Gregorio)

Illinois budget impasse seen lasting for weeks

These 20 schools are responsible for a fifth of all graduate school debt - The Washington Post

 

These 20 schools are responsible for a fifth of all graduate school debt

By Danielle Douglas-Gabriel July 9


In this Oct. 6, 2011 photo, Gan Golan of Los Angeles, dressed as the “Master of Degrees,” holds a ball and chain representing his college loan debt during Occupy DC activities in (AP Photo/Jacquelyn Martin)

Getting an advanced degree doesn’t come cheap, which is why graduate students carry nearly half of all student debt. But it turns out that a handful of schools are responsible for a large share of that money.

A new study from the Center for American Progress (CAP) found that 20 universities received one-fifth, or $6.5 billion, of the total amount of loans the government gave graduate students in the 2013-2014 academic year. Those schools, however, only educate 12 percent of all graduate students.

What’s striking about the Center’s findings is that a majority of the debt taken to attend the 20 schools on its list is not for law or medical degrees that promise hefty paydays. Most graduate students at those schools are seeking master’s degrees in journalism, fine arts or government, according to CAP.

[It’s about to get cheaper to borrow for college]

Still, at two foreign medical schools, St. George’s University in Grenada and Ross University in Dominica, students borrowed more than $200 million in a single school year. Medical schools in the Caribbean are often a refuge for students rejected from top American schools, but their tuition easily rival schools in the United States. Tuition for one semester at Ross, for instance, costs up to $21,710.

It’s not exactly shocking that pricey private schools like New York University, Georgetown University and George Washington University made the list–tuition alone at all three schools is well over $40,000 a year. But the eight for-profit colleges, including University of Phoenix and Capella University, may raise some eyebrows.

Indeed, students borrowed the most amount of money, $756 million, to attend Walden University, a for-profit school that specializes in offering graduate degrees in education, healthcare and business. The second highest loan balance on the list is attributed to Nova Southeastern University, a private college in Florida where 59 percent of students are working toward graduate degrees online.

Although online programs are billed as time and cost effective, schools like Nova and Liberty University prove otherwise. About 98 percent of graduate students at Liberty, founded by evangelical leader Jerry Falwell, are enrolled in online programs that led them to borrow $351 million in a single year.

These 20 schools are responsible for a fifth of all graduate school debt - The Washington Post

Analyzing Gov. Rauner's Latest Pension Plan | Chicago Tonight | WTTW

 

Analyzing Gov. Rauner's Latest Pension Plan

Natalie Valdes | July 9, 2015 12:30 pm

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Is Gov. Bruce Rauner's newest pension proposal constitutional? How will it impact city and state employees? John Tillman, CEO of the Illinois Policy Institute, and Ralph Martire, executive director for the Center for Tax and Budget Accountability, analyze the plan.


On Wednesday, Gov. Bruce Rauner said he was re-introducing his five-point turnaround agenda as well as a new pension plan. According to Amanda Vinicky’s reporting, Rauner’s yet-to-be-released 500-page plan gives state employees and public school teachers a choice: take a smaller retirement immediately or take a smaller benefit down the line by choosing to forgo having future salary hikes count toward pensions.

The Chicago Teachers Union on Wednesday issued a statement following Rauner’s announcement:

“The Pension Reform Bill proposed by the governor is nothing more than a collection of Bruce Rauner’s worst ideas as it relates to Illinois’ public sector workers.  He continues to treat the people who perform some of the hardest jobs in our state with contempt and disregard,” said CTU Vice President Jesse Sharkey.

“His proposal stands in stark contrast to the tax cuts he’s enjoyed this year as one of the wealthiest men in Illinois. We continue to be dismayed at his lack of economic vision that would include progressive revenue solutions and the stabilizing of our pension systems.

“The legal theory he is using has resulted in an unconstitutional mishmash of proposals which diminish and impair pensions. Chicago’s public school educators should not have to choose between having an arm cut off or a leg---meaning we should not have to decide which hard earned right we must give up in order for the state to make contributions to our fund, as it does to others across Illinois. Asking people who do not receive social security upon retirement to take a 7 percent pay cut in order to possibly retire healthy enough to draw down their deferred compensation is an insult to our intelligence,” Sharkey said.

Cook County spokesman Frank Shuftan issued the following statement on Wednesday:

“We just received a copy of the Governor’s proposal and staff will now begin their analysis of it. The issue of pension reform has languished for too long without substantive action as costs continue to rise. While we will carefully review the proposal and continue to work with legislative leaders, the bill we introduced, and which we still endorse in its current form, is designed to resolve the County’s actuarial shortfall and put the Pension Fund on a road to long-term, sustainable solvency. Our bill was crafted over two years in consultation with our labor partners. It calls for shared sacrifice and it earned the support of the vast majority of our unions. We believe that our bill, as it is constructed, is the best vehicle through which true and meaningful pension reform for Cook County can be achieved, and we will continue to respect the legislative process as debate on this issue continues.”

File Attachments:

Summary of Rauner's Pension Plan.pdf

Politics

Analyzing Gov. Rauner's Latest Pension Plan | Chicago Tonight | WTTW

Rauner approves more spending on Illiana tollway - Blogs On Politics - Crain's Chicago Business

 

Gov. Bruce Rauner quietly has signed a measure to spend another $5.5 million on the proposed Illiana expressway, raising questions about whether he's seeking to keep the project on financial life support.

Several weeks ago, Rauner shelved the controversial south suburban toll road with a flourish:

"In light of the state's current fiscal crisis and a lack of sufficient capital resources, the Illiana will not move forward at this time," his office said then in a statement. "It is the determination of the Illinois Department of Transportation that the project costs exceed currently available resources. The department will begin the process of suspending all existing project contracts and procurements." Rauner also ordered the highway removed from the state's five-year road program.

But on June 30, Rauner signed a bill that includes $5.5 million for the Illiana, even as he knocked out money for other projects, such as land acquisition for the proposed south suburban airport at Peotone. The bill said the money would "enable the Illiana Expressway to be developed, financed, constructed or operated."

So what's up?

The governor's office says the money will be used to pay consultants to wind down the project and to handle any costs from continuing litigation. Most of the latter is coming from foes who want to drive a legal stake through the road's heart.

A Rauner aide adds that the money is only being reappropriated from last year, and just because the state is allowed to spend the money doesn't mean it will.

But authorizing $5.5 million in expenditures sure doesn't look like "suspension of all existing project contracts and procurements" to longtime Illiana foe Howard Learner, whose Environmental Law & Policy Center has long battled the road in court and in various public bodies.

"Gov. Rauner clearly said on June 2 that no more state funds would be spent on Illiana contracts and procurements," Learner told me. "It's time to bring the wasteful Illiana tollway gravy train for consultants to an end. These public funds should instead be used to meet our state's high-priority needs."

Most interesting. With talk persisting in Springfield that Rauner wants to keep the project alive as trade bait with south suburban officials, this subject is worth keeping a close eye on.

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Rauner okays new spending on Illiana despite promised ban

Rauner approves more spending on Illiana tollway - Blogs On Politics - Crain's Chicago Business

Wednesday, July 8, 2015

Yahoo News

 

To Help US Veterans Charity, George W. Bush Charged $100,000

MEGAN CHUCHMACH and BRIAN ROSS

‎July‎ ‎08‎, ‎2015

 

To Help US Veterans Charity, George W. Bush Charged $100,000

To Help US Veterans Charity, George W. Bush Charged $100,000 (ABC News)

To Help US Veterans Charity, George W. Bush Charged $100,000

MEGAN CHUCHMACH and BRIAN ROSS

‎July‎ ‎08‎, ‎2015

Former President George W. Bush charged $100,000 to speak at a charity fundraiser for U.S. military veterans severely wounded in Iraq and Afghanistan, and former First Lady Laura Bush collected $50,000 to appear a year earlier, officials of the Texas-based Helping a Hero charity confirmed to ABC News.

The former President was also provided with a private jet to travel to Houston at a cost of $20,000, the officials said.

The charity, which helps to provide specially-adapted homes for veterans who lost limbs and suffered other severe injuries in “the war on terror in Iraq and Afghanistan,” said the total $170,000 expenditure was justified because the former President and First Lady offered discounted fees and helped raise record amounts in contributions at galas held in 2011 and 2012.

“It was great because he reduced his normal fee of $250,000 down to $100,000,” said Meredith Iler, the former chairman of the charity.

However, a recent report by Politico said the former President’s fees typically ranged between $100,000 and $175,000 during those years.

One of the wounded vets who served on the charity’s board told ABC News he was outraged that his former commander in chief would charge any fee to speak on behalf of men and women he ordered into harm's way.

“For him to be paid to raise money for veterans that were wounded in combat under his orders, I don’t think that’s right,” said former Marine Eddie Wright, who lost both hands in a rocket attack in Fallujah, Iraq in 2004.

“You sent me to war,” added Wright speaking of the former President. “I was doing what you told me to do, gladly for you and our country and I have no regrets. But it’s kind of a slap in the face.”

Bill Clinton Cashed In When Hillary Became Secretary of State
Clinton Foundation Taking Money From Accused Rights Violator
Do you have information about this or another story? CLICK HERE to send your confidential tip in to Brian Ross and the ABC News Investigative Unit.

Yahoo News

Boone County to reject bids, revise animal-control facility plans - News - Rockford Register Star - Rockford, IL

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By Ben Stanley
Rockford Register Star

Posted Jul. 7, 2015 at 9:16 PM

BELVIDERE — Boone County finally has money to replace its antiquated animal-control center, which for years has relied on patch repairs to address a litany of sanitation and infestation problems, but construction will be delayed months as a county committee searches for ways to shave costs.
Two weeks ago, the Boone County Roads and Capital Improvements Committee received bids from three local contractors for the project. Each bid exceeded the county's $800,000 budget — funded entirely through a small property tax increase voters approved in November — by hundreds of thousands of dollars.
The bids came as a surprise to committee members, who were given a cost estimate of roughly $800,000 by architect Mark Schmidt in July 2014. Schmidt's estimate influenced the county board's decision to seek that amount in the tax-hike referendum, but several changes were made to building plans before bids were opened in June.
At a special meeting on June 22, the committee voted to recommend the county board accept the low bid from Larson & Larson Builders on the condition that the design could be tweaked to keep costs within budget. However, the committee voted unanimously tonight  to reverse its recommendation after Boone County State's Attorney Michelle Courier warned the county board that making nearly $300,000 in alterations to the building's design after the bid has been accepted could undermine a state statute that regulates the competitive bidding process for county projects.
"The architect has indicated that in order to reduce the cost, he will need to redraw his plans, the same plans on which the project was bid upon," Courier wrote in a letter to the board. "This is a material change from the original project. ... giving the current lowest responsible bidder an unfair advantage."
The county board is expected to reject all three bids at a meeting on July 15. Now the committee must go back to the drawing board and work with Schmidt to draft a much simpler and cheaper design, then re-open bids to local contractors.
"You get so much money to work with, you want to get the best building you can," Schmidt said. "Every time you go to one committee, one group wants one feature, another group wants other bells and whistles and pretty soon it gets bigger ... and then you've got to start shrinking it again. The main goal is, what can we do to get the building built?"

Schmidt estimated late August is the earliest that revised building plans could be released to bidders.

Page 2 of 2 - "I know it's going to get done," Boone County Animal Services Operations Supervisor Roger Tresemer said after the meeting. "It's just, I don't want it ... to get to the point where the integrity of the building is not much different than what we have now." 

Above is from:  Boone County to reject bids, revise animal-control facility plans - News - Rockford Register Star - Rockford, IL

Monday, July 6, 2015

How Dick Portillo built a hot dog stand into an empire - DailyHerald.com

Anna Marie Kukec

Anna Marie Kukec

Dick Portillo was facing a lonely Thanksgiving as a U.S. Marine in 1957.

At 17, the Chicagoan had gone through boot camp, learned to march and slept in a Quonset hut in California. Other new recruits had already left with invitations from the officers to enjoy a holiday meal. But young Portillo was somehow forgotten and was about to go to the mess hall.

Portillo's milestones and facts

Company: Portillo's and Barnelli's Italian food.
Founded: 1963 by Dick Portillo
Headquarters: Oak Brook
Business: Fast casual restaurants, catering and shipping
Locations: 39 Portillo's in Illinois, Indiana, Arizona and California. Portillo's also planned for Homewood, Gurnee, and Tampa, Fla. Barnelli's is inside nine of the Illinois Portillo restaurants.
Owners: Boston-based Berkshire Partners since 2014
Employees: 4,000
Website: www.portillos.com
Other businesses: Dick Portillo also founded Honey-Jam Cafe in Downers Grove, Batavia and Bolingbrook, and Luigi's in Naperville, which were sold. He also owned Key Wester fish and pasta restaurant, which closed in 2011.
Portillo's milestones
1963: The Dog House opens in a trailer on North Avenue in Villa Park by owner and founder Dick Portillo.
1967: The trailer gets a new look, is renamed Portillo's and moves to a new building.
1983: Portillo's gets its first drive-through in Downers Grove.
1993: The Barnelli's Pasta Bowl is introduced.
1994: Portillo's opens at Clark and Ontario streets in Chicago. Many items inside are purchased from the original Chicago Stadium, including the original Chicago Blackhawks 1938 Stanley Cup banner.
1999: Portillo's Home Kitchen Catering begins.
2000: Portillo's starts nationwide shipping to all 50 states.
2005: Restaurant opens in Buena Park and Moreno Valley, California. 2006: Portillo's opens in Merrillville, Indiana.
2013: Restaurant opens in Scottsdale and Tempe, Arizona.
2014: Dick Portillo sells the restaurant group to Boston-based Berkshire Partners.
2015: Portillo remains as a consultant and manages the real estate for the restaurants. More restaurants planned for Tampa, Florida, and Gurnee.

Then 1st Lt. Barney Brause walked in and ordered Portillo to come with him. Brause took Portillo to his home to meet his family and enjoy a home-cooked meal. "They treated me like a rock star," Portillo said.

The memory of that holiday meal and the officer's kindness stayed with Portillo for years. The experience influenced how Portillo treated his own employees, used a Marine's discipline to pursue his dream and, ultimately, built the Portillo Restaurant Group, headquartered in Oak Brook.

"I learned a lot from him on how to treat people," Portillo said of Brause. "He was a tough son-of-a-gun, but he still treated people well. I watched him a lot after that and saw how he spent a lot of time in training. But if you screwed up, you were in big trouble. Yet, his company would jump off a roof for this man."

That's how Portillo wanted to lead his business, which he sold last year for reportedly $1 billion to Boston-based Berkshire Partners. The company has been renamed Portillo's Hot Dogs LLC and has 39 locations, including nine Barnelli's restaurants, in Illinois, Indiana, California, Arizona and, soon, Florida.

Dick Portillo now has an office in Oakbrook Terrace where he manages his own real estate investments, including the land under many Portillo's, Barnelli's, Honey-Jam Cafe and Luigi's restaurants. He leases the land back to the new owners of those brand names.

He also has invested in the RPM Restaurant opening later this year in Washington, D.C., several apartment buildings, and shopping centers in Bolingbrook, Oswego, Elgin and Indianapolis.

All of this has helped to make a comfortable life for himself, his wife, Sharon, and their three sons, Michael, Joseph and Tony. He has a home in Oak Brook and another in Naples, Florida. He has a Westport yacht that he takes on long excursions to trace historical routes, including those of Christopher Columbus. At 75, Portillo wants to spend more time with his family and see his namesake restaurant chain expand to all 50 states. He didn't have the resources to do that expansion, and instead, passed the dream onto Berkshire Partners, which is unaffiliated with Warren Buffett's Berkshire Hathaway.

"We had to know enough about the restaurant business to know how incredibly important this is," said Michael A. Miles Jr., Berkshire Partners advisory director.

Berkshire Partners has ramped up the expansion slowly, "so it doesn't threaten the quality, delivery and the service," Miles said.

Portillo's restaurants recently opened in Rockford and Homewood, while others are planned for Tampa, Florida, and Gurnee this year. Five more are set for next year.

​"This has been a very emotional thing for me," Portillo said of the sale.

Portillo said he received numerous calls from potential buyers over the years. But he felt many just wanted the name, or would change the business radically, or even expand it too quickly. He didn't build the business for more than 50 years to have someone ruin it.

"I had to decide who would take care of my baby," Portillo said.

Blue-collar roots

Dick Portillo was born and raised in Chicago, first living on West Van Buren and then at a row house on Mohawk Street at the Mother Cabrini Housing Project, later called Cabrini-Green Homes. His father, Frank, worked for the railroad, sold insurance and later gave driver's license tests. His mother, Bea, was a stay-at-home mom, then worked in an office. Dick's brother, also named Frank, was president of Brown's Chicken & Pasta Inc., which was not associated with Portillo Restaurant Group. Their sister, Carmen, has died.

As a strong young man, Portillo did mostly blue-collar jobs -- drove a truck, factory work, whatever he could find. He married his high-school sweetheart, Sharon, and they moved to Villa Park.

He looked around the suburb and felt it had a lot of nice homes, but there were no places to buy a hot dog.

"I couldn't figure out why there wasn't a good, quick place to get a hot dog," Portillo said.

He also knew he couldn't do manual labor forever, and with a family, he wanted to settle into a good job for the long haul. That's when he came up with a plan to open his own hot dog stand.

There was a problem: Portillo didn't know how to cook. But that didn't stop him.

At first, his wife "hit the ceiling." She wanted their $1,100 savings used as a down payment on a house, not a hot dog stand. She was so upset, she went to her mother and told her about Portillo's plan.

"Her mother said, 'Sit down. He's working his behind off. At least he has ambition. You should back him up,'" Portillo recalled.

Sharon followed the advice and the couple never looked back.

In 1963, Portillo set up a small trailer, called The Dog House, on North Avenue in Villa Park. It didn't have running water, so he ran a garden hose from another building. He bought his hot dogs and condiments from the local National Tea grocery store. But the customers weren't flocking to his window. He was failing.

While Sharon worked to keep the business going, Dick took their two young children to visit other local hot dog stands and restaurants. He wanted to know where they bought their hot dogs, how they steamed their buns and, most of all, how they lured back customers.

At one restaurant, Portillo purposely walked into the "employees only" door and saw cases of products with distributor names. He quickly jotted down those names before a worker noticed he didn't belong there. Portillo jokingly said he was looking for the bathroom and left.

"That's how I learned," he said. "Everything I did was because I learned about it from somewhere else."

He went to another restaurant and leaned over the counter to see how they steamed their buns or asked how hot the water had to be.

"That's how bad I was, I would try to steam the buns and they would become hard as rocks," Portillo said.

Learning curve

While he admits a fear and panic of losing everything could have stopped him cold, he kept going. He wanted to learn more. He walked into more restaurant storage rooms and jotted notes with a pen and paper until someone discovered him or told him to "jump in the lake" when he asked questions, he said.

His hot dog stand "started to grow, and the more knowledge that we got, the better it became," Portillo said.

He was so eager to please people, he sometimes sacrificed his own health. One day he became so sick with the flu that he passed out in the trailer. A concerned customer leaned in and thought Portillo had been robbed and was dead on the floor.

Another time, he ran to a customer's car to get an order -- two hot dogs, two fries and two root beers. The customer gave him $20 and needed change. But Dick tripped, fell and everything scattered. He quickly got up and got the change for the customer. When he returned to the trailer, he realized his knees were badly cut.

Still, he didn't close. He didn't go to the emergency room. He kept working. Running out to that car actually led him to create his first drive-through.

"I just wanted to please people so bad," he said.

As his confidence grew, so did his business. He started thinking about opening three or four more places. But he was managing everything by himself and needed to hire some supervisors. That's when he started to build the organization.

"I spent an enormous amount of time training them and the more I did that, the easier it got," he said.

Expansion, payback

As he expanded the Portillo's brand, he created Barnelli's and Luigi's, and Key Wester in Naperville. But with expansion came some hard lessons. Key Wester was built in 1996 on a concept Portillo developed from his travels through Key West, Florida. But Key Wester was physically too big and overhead costs ballooned. Fish became too expensive. So he closed Key Wester in 2011.

But it didn't stop his dream to continue building the company.

At his new California Portillo's restaurant, a Marine officer asked Portillo to provide a discount for meals served to those from the Wounded Warrior Battalion at Camp Pendleton. Portillo said instead of a discount, he would provide them with free meals -- with a string attached.

Portillo, a former Marine lance corporal, wanted to see his old barracks. Arrangements were made and a sergeant accompanied Portillo to his former barracks. But a security guard stopped them. They were told it was a restricted area and Portillo needed special clearance. After the men talked further, the guard went inside. When Portillo was escorted in, all the Marines stood and snapped to attention.

Surprised, Portillo told them, "At ease."

About five years ago, Portillo wondered what became of 1st Lt. Barney Brause, who was so kind to him during that first holiday meal away from home about 50 years ago.

Portillo and a staffer tracked down Brause and learned he served two tours of Vietnam, retired as a full colonel and lived with his wife in California. Portillo got in touch with Brause and offered the retired officer and his wife an all-paid trip to the Solomon Islands. They met in Fiji and Portillo escorted them on a private boat with a crew.

"When someone is kind to you, it sticks in your mind," Portillo said. "You learn certain things in life, and I learned a lot from him

Above from:  How Dick Portillo built a hot dog stand into an empire - DailyHerald.com