Dear Neighbor,

At midnight on Tuesday the Illinois Senate completed its legislative session.  This email highlights some of the major items that were passed in our closing days, including the budget, workers’ compensation reform, gaming, and a ComEd deal.  While I am pleased that Illinois’ sky-high workers’ compensation costs will be coming down, I do not believe we have completed the work on the state budget.  I am concerned about the cuts to education and human services, and hope we will achieve some changes going forward. 

Budget

The General Assembly passed a FY12 budget that reduces total spending $6.9 billion (10.5%) from the current fiscal year.  While General Revenue Fund (GRF) spending increases from $31.1 billion to $33.2 billion (6.8%), this situation occurs only because the State borrowed for rather than made its pension payments this year.   Pension payments grew from $3.7 billion to $4.2 billion – excluding these payments from FY12, GRF spending decreases $2.1 billion (6.8%).  The spreadsheet and graph below provide details on spending trends over the last 5 years. 

(In Billions) 

I am concerned about the cuts to education and human services that are in the budget we passed.  General State Aid for schools is cut $152 million, for example, and many programs that serve our neediest citizens are reduced significantly.  The Senate proposed an alternative budget that would keep bottom line spending the same, but rearrange spending to prevent such significant cuts to these critical programs.  Since we reached no compromise with the House, the Senate instead adopted an amendment to the capital reappropriation bill to add spending for these core services and we reduced statutory transfers out from GRF to help offset this additional spending.  The House did not accept the Senate amendment to the capital bill, so we do not yet have an agreement.

Workers’ Compensation (HB1698)

Illinois’ businesses will see significant decreases in their workers’ compensation costs from the reform package that passed.  The medical fees are reduced 30%, determination of benefits for an injured worker must now incorporate American Medical Association guidelines, workers will now select a doctor from preferred provider programs established by employers, and there are numerous changes to fight waste, fraud and abuse in the system (for example rather than having the burden reside with an employer to prove that an employee was drunk when an accident occurred, the employee must prove that alcohol or drugs did not cause the workplace accident if there is evidence the employee was intoxicated at the time of the incident).  You may read the bill here.

Gaming (SB744)

The General Assembly sent a gaming bill to the Governor that creates 5 new casinos (one in Chicago) and allows slot machines at O’Hare and Midway airports as well as at the state’s existing racetracks. Initially state revenues from the gaming expansion will be used to pay down overdue bills, with ongoing revenues from casino/riverboats used to fund education and ongoing revenue from racetracks used for capital projects.  Local municipalities and counties will also receive revenue.  This bill is a significant priority for Mayor Emanuel, who indicates he will use local gaming revenue (rather than increased property taxes) for education and infrastructure projects.  While I support a downtown Chicago casino that will be a large draw for visitors, I am concerned about the additional gaming elsewhere.  The Governor has indicated he may use his amendatory veto powers to decrease the scope of the gaming bill.  You may read the bill here.

ComEd/Ameren Deal (SB1652)

This bill allows ComEd and Ameren to implement “smart grids” that enable easier tracking of problems online and allows customers to reduce electrical costs at peak hours to lower their costs.   The two power companies would invest more than $3 billion in upgrades over the next 10 years and an easier process for securing rate increases is implemented.  This bill passed, although I voted no due to my concern about consumer rate hikes.  The Governor has indicated he will veto the bill, and it did not pass the House or Senate with enough votes to override the veto.   You may read the bill here.

Two other issues were on the table but did not get addressed by the end of session: pension reform for current employees and retiree/employee healthcare.  I believe there will be further negotiations on these topics – I hope with all parties at the table – and we will likely see new legislation on these topics in the veto session this fall.

A couple of community events are listed below. Please feel free to call my office for more information at 773-769-1717.

The Loyola University Farmers’ Market will open on Monday, June 6 and operate each Monday through to October 17.  Hours of Operation will be 3:00 p.m. -7:00 p.m.  The Market location is 6556 N. Sheridan Road.  The market promotes small producers and family farms.

Midsommarfest is Andersonville’s annual summer street festival, now entering its 46th year. Each year, nearly 50,000 people throng Clark Street from Foster to Catalpa for two days of music, dancing, kids’ entertainment, and delicious food. Vendors from around the region sell their wares to passers-by, while ethnic dance troupes and cutting-edge bands keep the party going.

                                                    Dates:   June 11 and June 12

                                                                     Hours:  11:00am- 10:30pm

Please let me know if you have questions or would like additional information on these or any other topic.

Best,

Heather Steans

State Senator Heather Steans Springfield update
May 19th, 2011

I value and appreciate your input on this proposal.  Please feel free to contact me by responding to this email or calling 773-769-1717 with any comments.