SPRINGFIELD - Governor Rauner took action on the following bill today:

Bill No.: SB 1229

An Act Concerning State Government

Action: Vetoed

The governor's veto message is as follows:

To the Honorable Members of

The Illinois Senate,

99th General Assembly:

Today I veto Senate Bill 1229 from the 99th General Assembly, which would amend the Illinois Public Labor Relations Act to replace collective bargaining with binding interest arbitration.

For many months, I have advocated that local governments should have the right to determine which subjects are collectively bargained with their public employees. The response from some union officials is that my proposal would "gut" the collective bargaining rights of those public employees. Those same union officials proposed Senate Bill 1229, which goes far beyond my simple proposal. It removes every subject of labor negotiations from the bargaining process and allows unelected arbitrators to impose billions of dollars of new costs on our taxpayers without any involvement of the Executive Branch, the General Assembly, or those taxpayers. This legislation is undemocratic, it is bad for our budget, and it is unconstitutional.

Senate Bill 1229 is also based on a false premise that our Administration has been unreasonable in labor negotiations and wants to lock-out employees or prompt an employee strike. Nothing could be further from the truth. We have negotiated in good faith with AFSCME since shortly after I took office. We came with our proposals ready on day 1, and we made significant concessions from our initial proposals, including revising our proposals on management rights, dues collection, holidays, subcontracting, layoffs, and employee pensions. We asked AFSCME to schedule more frequent weekly negotiating sessions (which they declined), and we voluntarily agreed to extend negotiations even after the current collective bargaining agreements expired on June 30, 2015. At my request, those "tolling agreements" contain express provisions that prohibit a strike or lock-out during our negotiations. Today our Administration signed a new tolling agreement that extends negotiations until at least the end of September. We are working diligently to reach an agreement with AFSCME.

Our proposals have also not been unreasonable. In fact, the proposals we offered to AFSCME are similar to those recently adopted by state employees represented by the Teamsters. It took only two weeks from the time our Administration first met with John Coli, the President of the Teamsters Joint Council 25, to reach agreement with the Teamsters. The Teamsters, to their credit, were realistic about the State's dire financial condition. They cleared their calendars to negotiate around the clock. They made no outrageous financial demands for large pay increases or new health benefits. They had no problem agreeing to a 40-hour work week. We similarly sought to build a strong partnership with the Teamsters in exchange for their concessions. We agreed to a large monetary bonus pool to reward employees for their exceptional performance. Rather than have an unlimited subcontracting provision, we agreed to allow the Teamsters to bid on any project offered to a private sector company and share in the savings achieved by the State. We also agreed to fund an educational program for their employees, a top priority for our Administration.

Given time and reasonableness, we can reach a similar agreement with AFSCME. This legislation, however, prevents our Administration from doing so. Many are unfamiliar with the concept of interest arbitration that replaces collective bargaining in this legislation. It is not the same as arbitration in civil law, business, or other contract disputes. Interest arbitrators are not allowed to fashion a compromise that Illinois taxpayers can actually afford. Presented with the State's and the unions' proposals, arbitrators will be picking winners and losers by accepting either side's proposal in its entirety. Because they are unelected and unaccountable, arbitrators can decide to impose on the State the unions' proposals without regard to the dire impact those proposals will have on our fiscal stability. As I write this message, if AFSCME seeks to impose its current proposal, it would cost our taxpayers an additional $1.6 billion in salary and pension costs and would eliminate $500 million per year in healthcare savings that were part of the overall healthcare savings included in both Democrat and Republican budgets. If an unaccountable arbitrator awards AFSCME's contract, the clear losers will be the State's taxpayers. And the already-difficult task of balancing the State's budget in a constitutional manner will become insurmountable, hurting the beneficiaries of State programs and services that would no longer be possible. We cannot afford Senate Bill 1229.

Finally, if enacted into law, Senate Bill 1229 would violate the United States Constitution by retroactively impairing contractual obligations. In the last round of negotiations, the State and unions entered into collective bargaining agreements that spanned the period from July 1, 2012 to June 30, 2015. Negotiating those contracts in 2012, both sides knew, and bargained with the understanding, that any contractual obligations the parties undertake would expire on June 30, 2015. Senate Bill 1229 changes that bargain by extending the terms of expired agreements beyond June 30, 2015. The United States Constitution forbids the State from enacting a law that changes contracts retroactively. Senate Bill 1229 is therefore unconstitutional.

Senate Bill 1229 would cede major financial decisions to unelected, unaccountable arbitrators. This legislation is bad policy and would derail our efforts to honestly balance the State's budget and enact meaningful government reforms.

Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 1229 entitled "AN ACT concerning State government", with the foregoing objections, vetoed in its entirety.

Sincerely,

Bruce Rauner

SPRINGFIELD - The Governor's Office has issued the following statement, attributable to Lance Trover, Director of Communications:

"Governor Rauner appreciates today's action in the House and thanks all those members who showed leadership on this issue. We encourage President Cullerton to swiftly move this legislation to the governor's desk for his signature.  Governor Rauner is ready to work with Speaker Madigan, Leader Durkin and all members of the General Assembly to pass true structural reforms and a balanced budget."

- Legislators have until Friday to stop pay hike -

- Pantagraph Newspaper: "Legislator Pay Hike Another Insult to Taxpayers" -

As Illinois legislators head back to Springfield, tomorrow will mark House members' last chance to stop a pay raise worth more than $1350 before they get paid Friday, July 31.

House Bill 4225 would stop the pay raises, but Speaker Madigan and the legislators he controls refuse to vote on it.

Background from the Associated Press

"House Speaker Michael Madigan won't answer questions about it. After years of well-intended, politically popular votes to reject raises, Chicago Senate President John Cullerton now says it would violate the Illinois Constitution not to take the pay.

When asked later to reconcile repeated votes to reject increases -- including in 2014, after the court ruling -- Cullerton spokeswoman Rikeesha Phelon released a statement reiterating the constitutional proscription.

That hasn't stopped Republicans from trying to nix the money. Democrats refuse to call a vote on the GOP legislation."

Additional Background

The General Assembly has previously voted to reject legislator COLAs in FY10, FY11, FY12, FY13, FY14 and FY15. (Compensation Review Act - 25 ILCS 120/5.6-6.2)

Pantagraph Editorial: Legislator Pay Hike Another Insult to Taxpayers

"..[I]t is another example of how the House Speaker Michael Madigan-controlled General Assembly puts its own priorities ahead of taxpayers...

...Legislators had a chance to rescind the pay raise, but a bill to do that was buried by, you guessed it, Madigan.

Gov. Bruce Rauner has been using the pay raise to tweak legislators, especially Madigan. Last week, he said accepting the pay raise without solving the state's budget issues was 'unfair to taxpayers and the people they represent. It is time to stop protecting the political class at the expense of the middle class.'

Madigan's response to Rauner's taunt was, 'I'm not going to spend a lot of time on that question.' Madigan has said the pay issue is a 'diversion,' but in the Madigan dictionary, any issue that threatens the comfort of legislators or trial lawyers is a diversion.

... Democrats who voted for the budget should be especially embarrassed, since they shirked their duty by sending an unbalanced budget to Rauner.

To add insult to taxpayer injury, the General Assembly is covered by a continuing resolution. That means legislators' pay is guaranteed and the General Assembly will keep operating even if other functions of government shut down. It's vital that prisoners are guarded, roads are patrolled and the work of declaring corn the official state vegetable continues.

The 'diversion' in the budget battle is Madigan. We're not sure of his priorities, but it's clear taxpayers are far below maintaining the status quo and protecting legislators and trial lawyers."

The Dispatch and The Rock Island Argus

"Jeers to the entrenched interests in Springfield who do not believe they must answer to the public regarding inconvenient truths of how Illinois government does business.

The latest example came courtesy of our state's once camera-shy House Speaker Michael Madigan during another of his dueling press conferences with Gov. Bruce Rauner over the rookie governor's Turnaround Agenda and Illinois' failure to pass a budget. The tone of that fight was set long ago: Both sides reportedly meet in private, civil sessions that bring no progress, then spew invective in public.

The latest came when the GOP governor criticized the House leader for taking a $1,300 pay hike. The 2 percent hike for he and other lawmakers is automatic, unless the General Assembly votes to reject it. Though Republican lawmakers tried to stop it, it was never called for a vote.

When the speaker was asked about it at last week's press conference, he had this to say.

'Well, they promote a lot of things. But I've spoken to the question, I don't plan to speak to it any further.'

We must have missed that. That reporter must have, too. But when she tried to find out more, a clearly irritated Mr. Madigan said, 'I said, I don't plan to speak to it any further. Thank you very much.'

That's one way for the most powerful man in Illinois to deal with what he dismisses as another  'diversion.' Of course, often saying nothing also speaks volumes."

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SPRINGFIELD - Governor Bruce Rauner announced today he has made appointments to the Illinois Workforce Investment Board, the State University Retirement Board, the Medical Disciplinary Board, the Medical District Commission, and the Illinois Liquor Control Commission.

Name: Angela Mason

Position: Board Member - Illinois Workforce Investment Board

Governor Bruce Rauner has appointed Angela Mason to Illinois Workforce Investment Board. She brings more than 11 years of management and leadership experience to the board.

Currently, Mason works as the Associate Vice President, Urban Agriculture/Windy City Harvest of the Chicago Botanic Garden. In this role she oversees the development and management of the program including budgeting, fundraising, staff and business development. Mason previously held two other positions with the Chicago Botanic Garden, Director of Windy City Harvest and Manager of Community Gardening.

Over the course of her career, Mason has developed and implemented effective programs across Chicagoland. She has collaborated with local, state and national government entities as well as with cultural, non-profit and educational institutions.

Mason holds a bachelor's and master's degree in soil and general agriculture from Southern Illinois University - Carbondale. She lives in Chicago.

Name: Eloy Salazar

Position: Board Member - Illinois Workforce Investment Board

Governor Bruce Rauner has reappointed Eloy Salazar to the Illinois Workforce Investment Board. He has served on the board since December 2012.

Salazar has been with the Illinois Migrant Council since 1969. Currently, he serves as the Executive Director. He is in charge of the day-to-day operations and human services program for the council. Salazar also served as an associate director, field operations director, regional director and job developer.

In addition to his role at the council, Salazar is active on a number of professional and civic boards that include : Illinois Affordable Housing Task Force, Workforce Development Board of East Central Illinois, Illinois Association of Community Action Agencies, Arden Shore Child and Family Services and Pilsen Wellness Center.

Salazar holds a bachelor's degree in sociology from Illinois State University. He lives in Mundelein.

Name: Francis Idehen Jr.

Position: Board Member - State Universities Retirement Board

Governor Bruce Rauner has appointed Francis Idehen, Jr. to the State Universities Retirement Board. He brings a strong background in pension investment strategies and investment relations to the board.

Idehen is currently Vice President for Investor Relations at Exelon Corporation. At Exelon, Idehen is responsible for developing and implementing the company's strategic investor relations program. He was previously a managing director at Exelon, where he developed and executed an investment strategy of more than $3 billion in alternative investments for the company's pension plan and other retirement plans. Before coming to Exelon, Idehen was a Senior Portfolio Manager at Intel Corporation, and an Associate at Lehman Brothers.

Idehen holds a bachelor's degree in economics from Yale University and a master's degree in business administration from Harvard Business School. He lives in Chicago.

Name: Albert F. Tracy

Position: Board Member - Medical Disciplinary Board

Governor Bruce Rauner has appointed Albert F. Tracy to the Medical Disciplinary Board. He brings more than a decade of health service investigation and close to 30 years of tax law enforcement experience to the board.

Tracy currently serves as a health service investigator for the State of Illinois, a position he has held since 2002. Before working for the State of Illinois, Tracy worked for almost 30 years as a special agent for the Internal Revenue Service, ensuring that the tax code was properly enforced.

Tracy is also President of the Fraternal Order of Police Lodge 9F, and is a member of the Federal Law Enforcement Officers Association, The Illinois Police Association and the Federal Criminal Investigator's Association.

Tracy holds a degree in education from Chicago State University. He resides in Spring Grove.

Name: George Bilicic

Position: Member - Illinois Medical District Commission

Governor Bruce Rauner has appointed George Bilicic to the Illinois Medical District Commission. His experience in finance and investment banking makes him an asset to the commission.

Bilicic is currently the Vice President of Investment Banking at Lazard and oversees the company's banking efforts in the areas of power, energy and infrastructure. He also serves on the firm's Investment Banking Committee. He has worked for Lazard since 2002, except for a few months spent at the private equity firm Kohlberg Kravis Roberts. He also spent a year at Merrill Lynch from 2001-2002.

Prior to his work in banking, Bilicic was a partner at the law firm Cravath, Swaine & Moore. He joined the firm as an associate in 1989, and his practice focused on mergers and acquisitions.

Bilicic earned his bachelor's degree from DeSales University and his law degree from Georgetown University. He lives in Chicago.

Name: Connie Beard

Position: Chairman - Illinois Liquor Control Commission

Governor Bruce Rauner has appointed the Director of the Illinois Department of Revenue (IDOR) to lead the Illinois Liquor Control Commission (ILCC). Beard will do this in conjunction with her duties as Director of IDOR, and will forego any compensation related to her role as chairman. The ILCC is already under the purview of IDOR, and work very closely together. Having Beard serve as the head of both will save taxpayers money, and will help both agencies work together more efficiently.

Beard joined the administration in January, bringing more than 30 years of experience in state and local taxes to the position. From 1997 to 2015 she was the Executive Director for the Illinois Chamber of Commerce Tax Institute. Prior to that, Beard worked for IDOR under Governors Thompson, Edgar and Ryan. She held a number of positions, rising to the position of Deputy General Counsel.

Beard is a licensed attorney, earning her law degree from the University of Illinois. She earned her bachelor's degree in sociology from Eastern Illinois University. Beard currently resides in Jacksonville.