Property Taxpayers Far More Protected With Comprehensive Pension Reform That Includes Responsibility for School Districts Than Without

CHICAGO - August 5, 2012. Governor Quinn released data today prepared by the Illinois Office of Management & Budget (OMB) that shows without comprehensive pension reform, Illinois will spend more on pensions than education by Fiscal Year 2016. The budget office performed the district-by-district analysis based on current projections to examine the long-term funding challenges of the state if comprehensive pension reform is not enacted. The analysis was released just days after Governor Quinn called a special session dedicated to pension reform on August 17.

"Illinois cannot continue down this path at the expense of our children," Governor Quinn said. "We must enact comprehensive pension reform that eliminates the unfunded liability to repair our pension system and give the next generation the education they deserve."

Under current actuarial assumptions, required state pension contributions will rise to over $6 billion in the next few years if no comprehensive pension reform is enacted, which will continue to result in significant cuts to education. According to the analysis, continued cuts to education as a result of fast-rising pension costs will cost downstate and suburban school districts far more than assuming the responsibility to pay for their compensation decisions over time.

For example, if comprehensive pension reform that includes a phased-in normal cost realignment is enacted, downstate and suburban school districts would assume $49 million in new normal pension costs in Fiscal Year 2014. However, if no such reform is adopted, downstate and suburban school districts would instead see their budgets reduced by $152 million, according to current projections.

School districts would be far more protected from a property tax increase with comprehensive pension reform that includes the responsibility to pay for compensation decisions, than they would be without.

Every day that Illinois' pension crisis goes unresolved, the unfunded pension liability grows by $12.6 million. Without comprehensive pension reform, funding for key services such as education will continue to be squeezed out. Governor Quinn has proposed a comprehensive pension reform plan that eliminates the unfunded liability over the next 30 years and includes a phased-in normal cost realignment that would ensure school districts have a stake in the contracts they negotiate.

The complete analysis is attached.

WHEREAS, on January 10, 2011, I took the Constitutional oath of office to become Governor of the State of Illinois, solemnly swearing to uphold both the Illinois Constitution and the Constitution of the United States, and promising to "faithfully discharge the duties of the office of Governor to the best of my abilities"; and

WHEREAS, I am committed to fulfilling my oath of office to serve the people of the State of Illinois by ensuring that government operates responsibly, and restoring fiscal stability to the State; and

WHEREAS, the State is currently facing an unprecedented pension crisis that, unchecked, compromises the State's credit rating and threatens the continued delivery of vital programs and services including education, public safety and human services; and

WHEREAS, the current unfunded pension liability of more than $83 billion is unsustainable and costs taxpayers millions of dollars every day it goes unaddressed; and

WHEREAS, the State's fiscal year 2013 budget is $33.7 billion, approximately 15 percent of which will go toward pensions alone; and

WHEREAS, on April 20, 2012, I proposed a Public Pension Stabilization Plan that would have eliminated the unfunded liability to secure 100 percent actuarial funding of the pensions systems by 2042; and

WHEREAS, I have continued work with the leaders of all four legislative caucuses to introduce legislation that would eliminate the State's unfunded pension liability; stabilize and strengthen the pension systems and ensure that the public employees who have faithfully contributed to the system receive benefits; and

WHEREAS, it is in the best interest of Illinois taxpayers that measures to strengthen and reform the State's pension systems be adopted and implemented without further delay; and

WHEREAS, Article IV, Section 5(b) of the Illinois Constitution empowers the Governor, as Chief Executive, to convene special session of the General Assembly;

THEREFORE, pursuant to Article IV, Section 5(b) of the Illinois Constitution of 1970, I, Governor Pat Quinn, hereby call and convene the 97^th General Assembly in a special session to commence on August 17, 2012, at 1:00 p.m., for the purpose of considering any legislation, new or pending, which addresses pension reform.

CHICAGO - July 28, 2012. Governor Pat Quinn today continued his commitment to protecting Illinois seniors by signing several new laws to protect senior citizens in Illinois. The new laws will promote safety, increase oversight and accountability for caregivers and help authorities identify and respond to reports of abuse, neglect and exploitation.

"Our seniors deserve our respect and protection against those who would take advantage of them," Governor Quinn said. "Safeguarding seniors from exploitation and abuse will make our state stronger."

House Bill 5653, sponsored by Rep. Emily McAsey (D-Lockport) and Sen. Toi Hutchinson (D-Olympia Fields), allows a prosecutor to ask a court to freeze a defendant's assets if he or she is charged with financial exploitation of an elderly person. This is an initiative of AARP Illinois, which has advocated for greater protection against elderly financial exploitation committed by family and non-family members. This new law will help prevent defendants from spending stolen money or using stolen money to mount an expensive legal defense that would make it more difficult for victims to collect proper restitution. The legislation passed the General Assembly unanimously and goes into effect Jan. 1.

House Bill 5266, sponsored by Rep. Dennis Reboletti (R-Elmhurst) and Sen. John Millner (R-Carol Stream), allows law enforcement and fire departments access to reports of elder abuse, neglect, financial exploitation or self-neglect compiled by senior service providers. Under current law, law enforcement cannot access this information without a specific instance of abuse or suspected abuse that has been reported to them. Senior services providers will now be able to proactively work with law enforcement in advance of visits like well-being checks or emergency calls, to inform them of circumstances that suggest evidence of elder crime or neglect. The legislation passed the General Assembly unanimously and goes into effect Jan. 1.

House Bill 3986, sponsored by Rep. Michelle Mussman (D-Schaumburg) and Sen. Linda Holmes (D-Chicago), allows the Illinois Department on Aging to receive reports of elder abuse or neglect from senior service providers via the internet. This legislation will make it easier for the state and law enforcement to receive and act on reports of elder abuse and neglect. The same laws governing the use of confidential information will still apply to online reporting. The new takes effect immediately.

House Bill 5098, sponsored by Rep. Jerry Costello, II (D-Sparta) and Sen. Gary Forby (D-Benton), further expands the state's efforts to recognize and respond to crimes against the elderly by requiring probation officers' training to include courses on how to recognize and appropriately respond to crimes against the elderly. The law is effective Jan. 1.

House Bill 5009, sponsored by Rep. Patrick Verschoore (D-Rock Island) and Sen. Mike Jacobs (D-Moline), will help nursing home patients found outside of their facility to be safely assisted and returned to their residence. This legislation requires nursing home residents' identification wristlets to include their facility's telephone number. The law is effective immediately.

Senate Bill 3204, sponsored by Sen. Kirk Dillard (R-Hinsdale) and Rep. Emily McAsey (D-Lockport), changes the Illinois Power of Attorney Act by specifying that certain financial agreements and contracts do not interfere with a person's primary power of attorney. This bill is an initiative of the Corporate Fiduciaries Association of Illinois to address the difficulties banks, attorneys and trust officers frequently encounter when handling multiple powers of attorney. A previous version of this legislation was vetoed by Governor Quinn because it did not contain enough protections for the elderly. This alternative legislation was negotiated by AARP Illinois, the Department on Aging, the Corporate Fiduciaries Association of Illinois, the Illinois Bankers Association and the Illinois Credit Union League. It takes effect immediately.

Senate Bill 3690, sponsored by Sen. Dan Kotowski (D-Park Ridge) and Rep. Robyn Gabel (D-Evanston), requires the state budget to take into account the costs of achieving the goals of Illinois' long-term care rebalancing initiative by providing new definitions of populations that need varying levels of care. The legislation is an initiative of the Health Care Council of Illinois and will provide guidance to agencies under the governor charged with providing long-term care to vulnerable demographics including frail older adults. The law passed the General Assembly unanimously and takes effect immediately.

Senate Bill 680, sponsored by Sen. Linda Holmes (D-Aurora) and Rep. Esther Golar (D-Chicago), will further protect the elderly and other vulnerable populations by creating additional requirements for safe lifting of residents with limited mobility in nursing homes and healthcare facilities. The law will require the training of nurses and other care providers on safe lifting techniques and equipment that will reduce risk for fragile residents and give them more input on how they are lifted. The law passed the General Assembly unanimously and takes effect Jan. 1.

Senate Bill 3499, sponsored by Sen. Jeff Schoenberg (D-Evanston) and Rep. Daniel Biss (D-Evanston), reduces litigation costs for the Department of Public Health and nursing care facilities by clarifying the conditions under which they can waive their right to contest state fines. The law provides that any facility can only waive the right to contest the state's penalty by paying a settlement amount of 65% of the fine within 10 days of receiving the penalty notice. This legislation is an initiative of the Healthcare Council of Illinois (HCCI), which sought to streamline the process by which state fines against nursing homes may be offset by the federal fines also levied against violators. The law is effective immediately.

Senate Bill 3420, sponsored by Sen. Mike Jacobs (East Moline) and Rep. John Bradley (D-Marion), allows the owners of nursing homes to serve as representatives of residents to whom they are related. Current law allows other employees of nursing homes who are related to residents this same ability. The law is effective immediately.

House Bill 5134, sponsored by Rep. Michael Unes (R-East Peoria) and Sen. Darin LaHood (R-Peoria), amends the Nursing Home Care Act to formalize the informal dispute process between the Department of Public Health and nursing care facilities that occurs during state licensing and review. The law passed the General Assembly unanimously and takes effect immediately.

Senate Bill 3171, sponsored by Sen. John Sullivan (D-Quincy) and Rep. Dan Brady (R-Bloomington), brings Illinois law into compliance with federal law regarding the release of health records of the deceased. The new legislation allows the executor of the estate of a deceased person who holds their power of attorney to receive their medical records or designate another to receive them. If an executor does not exist and no one holds power of attorney over an estate, the legislation allows medical records to be released to a personal representative of the deceased who meets certain conditions under the federal Health Insurance Portability and Accountability Act (HIPAA). This law was passed by the General Assembly unanimously in consultation with the federal Department of Health and Human Services and the Illinois State Bar Association. It takes effect immediately.

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New Employment Advisory Council to Promote
More Diversity in State Government

CHICAGO - July 27, 2012. As part of his ongoing efforts to promote diversity in state government, Governor Pat Quinn today signed a new law creating the Asian-American Employment Plan Advisory Council. The council will focus on ways to encourage and assist Asian-Americans seeking employment in state government. The governor was joined by numerous legislators, community leaders and representatives from the Coalition for a Better Chinese American Community and the Asian American Policy Network.

"Illinois is a place where people of all cultures and backgrounds should feel welcome," Governor Quinn said. "This new employment council will help ensure that Asian-Americans know about and have access to opportunities."

House Bill 4510, sponsored by Rep. Edward Acevedo (D-Chicago) and Sen. Tony Muñoz (D-Chicago), creates the Asian-American Employment Plan Advisory Council, which will study the barriers Asian-Americans who seek state employment face and propose solutions that can foster diversity and opportunity. The unpaid, 11-member council will be appointed by the governor and comprised of experts on employment access and Asian-American issues.

"Illinois is a diverse state and we must make sure our agencies reflect that diversity," Rep. Acevedo said. "As the Asian-American community continues to grow, it is important that they have the same opportunities and representation in state government that other groups have. I believe this new law will help to ensure that Asian-American constituents in my district and across the state are being properly served."

"Asian-Americans make up nearly five percent of Illinois' population, but only about two and a half percent of state employees," said Senator Muñoz, a member of the Senate Executive Committee.  "This new law will help to encourage more equity in state hiring and help improve services for Illinois' growing American communities."

The new law also directs the Department of Central Management Services (CMS) to prepare an Asian-American Employment Plan in conjunction with the new council. The report will analyze the percentage of Asian-American employment in all levels of state government and be submitted to the governor and the General Assembly with recommendations for how individual agencies can increase the Asian-American community's representation in the state workforce. This legislation passed the General Assembly unanimously and is effective immediately.

"I am thrilled to have been a part of the process of getting this legislation passed," said Theresa Mah, co-founder of the Asian American Policy Network. "The passage of this bill represents an important victory for the Asian-American community in our state and its implementation will make a huge difference in improving equity, accountability and service delivery for all Illinois residents. This legislation could not have been passed without the help of the Asian-American community along with a multiracial coalition of Black and Latino advocates supporting us."

"The signing of this bill is yet another milestone in the Asian-American community's civic engagement efforts leading to full participation and full integration of Asian-Americans into society-at-large," said CW Chan, Chair of the Coalition for a Better Chinese Community. "The legislative process leading to the passage of the bill also demonstrates an increased understanding and support for our community's needs and experiences, thanks in part to advocacy work by many organizations, particularly during the redistricting process, in which CBCAC was fortunate to have played a significant role."

Today's ceremony in Chicago's Chinatown follows Governor Quinn's approval of the Illinois Voting Rights Act of 2011, which protects the voting rights of racial and language minority groups in Illinois. The Act helps prevent a community's electoral identity from being weakened by being divided into multiple legislative districts.