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Overtime Session Continues...$360,000 and Counting
The overtime session that began on June 1 continues with no end in sight. Despite an agreement to pass a one-month budget and keep state government operating, there is little consensus among the Governor and General Assembly on passing a full budget for the fiscal year that began 13 days ago. With little progress, the Governor has begun calling special sessions of the legislature.
The Governor’s continued call for special legislative sessions has now cost taxpayers more than $360,000 in per diems and travel reimbursement for lawmakers. Legislators are prohibited from receiving these funds during a normal overtime session but are able to collect the reimbursement during special legislative sessions. Each day of special session costs approximately $40,000, according to published reports, and the Governor has pledged to keep the General Assembly in session "seven days a week" until the budget is resolved.
Under the Illinois Constitution, the Governor is allowed to call a special session of the General Assembly to discuss a particular issue. While the Governor has publicly indicated that special sessions were needed to force legislators to craft a state budget, in reality, none of the sessions have focused exclusively on the state budget. Instead, the Governor has used his executive authority to force the legislature to discuss other non-budget topics such as gun control and funding state pension systems.
In recent days, rank and file lawmakers have begun joining the budget negotiation meetings between the Governor and legislative leaders. However, all sides remain far apart. The Governor and Senate President Emil Jones (D-Chicago) continue to call for billions of dollars in new spending funded by new taxes on employers while Republican leaders, Sen. Frank Watson (R-Greenville) and Tom Cross (R-Oswego) want a budget that does not include any tax hikes. House Speaker Michael Madigan (D-Chicago) and Illinois House have passed a budget that relies on nearly $800 million in natural revenue growth and eliminating $300 million in tax incentives.
Illinois House Shows Supports Employee Free Choice Act
Over objections from the IMA and business community, the Illinois House followed previous Senate action and voted this week to support a resolution (SJR 22) encouraging Congress to pass the Employee Free Choice Act. This federal legislation would require an employer to immediately recognize a union if 50 percent of its employees signed an authorization card. This new system would eliminate the current system that requires the National Labor Relations Board to conduct a private ballot election if 30 percent of employees sign an authorization card.
While the Illinois resolution sponsored by Sen. Martin Sandoval (D-Cicero) and Rep. Linda Chapa-LaVia (D-Aurora) is advisory, it sends a chilling message to the employer community by limiting employee access to a secret ballot and restricting employer free speech. Trading federally supervised private ballot elections for a card check process tramples the privacy of workers. Secret ballots are the only way to protect an individual’s freedom to choose without subtle or overt coercion. The federal legislation also seeks to impose contract terms on private employers through compulsory, binding arbitration.
If enacted, the Employee Free Choice Act would negate 70 years of fair and balanced labor law that allowed for input from both sides. Fortunately, the United States Senate defeated this measure (H.R. 800/S. 1041) but it could arise in the future.
Governor Announced New Insurance Mandates
Using executive authority, the Governor announced this week that he has directed the Illinois Division of Insurance to file emergency rules that will prohibit insurance companies from using a person’s health status when setting rates for individual policies (not group plans). Some insurance experts fear that insurance companies will stop writing health policies in Illinois if they are not allowed to appropriately assess and charge for risk.
The Governor’s universal health care proposal (SB 5), which has not been favorably received in the General Assembly, contains a similar provision. Unlike the legislation, which takes effect if passed by a majority vote in the House and Senate and signed into law by the Governor, these rules can only be stopped if 8 of 12 members on the Joint Committee for Administrative Rules vote to block their adoption.
The IMA supports competition in the marketplace without excessive pricing regulation from the government. At a minimum, the Governor should let the full legislature debate this proposal instead of imposing them through rulemaking.
Congress to Consider Energy Standards
As early as next week, the U.S. House of Representatives is expected to consider energy legislation that includes amendments on Corporate Average Fuel Economy (CAFE) standards. The Energy and Commerce Committee passed a portion of the energy bill without the CAFE standards but some lawmakers are pushing for its inclusion.
The IMA supports common sense and reasonable standards that balance fuel economy increases with important economic and social concerns. Previous amendments adopted in the U.S. Senate would have a devastating impact on the domestic automobile industry and could impact nearly 10,000 employees in Illinois along with numerous auto part suppliers.
Please consider contacting your Member of Congress and urge them to pass meaningful and fair standards. More information is available online through the National Association of Manufacturers and the Auto Alliance.
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