Illinois Public Media News
University of Illinois President Michael Hogan said a voluntary employee reduction program on the Urbana campus went so well that it should be considered at the Springfield and Chicago campuses.
Faculty and staff were given a chance last year to resign or retire, and walk away with half of their salary, up to a maximum of $75,000. More than 480 employees left the U of I last spring to take the buyout, while 81 of those employees returned on a part-time basis. In addition, 70 professors are expected to leave in August.
The U of I's Associate Provost for Human Resources, Elyne Cole, said the number of employees who agreed to leave their jobs was "higher than expected." She said the university is expected to save $19 million annually because of the program, and those savings will trickle down to departments where cuts were made.
"It reduces the workforce both in terms of numbers and our overall salary obligations that we have for employees," Cole said. "And it will allow those units to make better decisions about how to use their resources."
While Hogan acknowledges the program's success in saving money, he said there have been costs attributed to those savings.
"You're losing teachers and you're losing workers," Hogan said. "So, that's one reason they do the re-hiring of retirees because you can still save money and get the service performed a little cheaper while you're building of cash reserves that could maybe help you make a permanent hire."
During a meeting Monday with the audit and budget committee, Hogan commented about a recently policy adopted by the U of I's Board of Trustees aimed at limiting tuition increases to no more than the rate of inflation. He said this will leave the university still looking for money for pay raises and won't strengthen the university's financial situation.
The state currently owes the U of I nearly $440 million in unpaid bills.
Children of longtime public university employees do not have to pay full tuition if they attend a state school.
As long as a parent has put in at least seven years of service, the children pay half price, but Senate Republican Leader Christine Radogno wants to do away with the perk. Radogno said during difficult financial times, it cannot be justified. She said it is unfair that a nurse working at a university hospital gets the benefit when a nurse at a private hospital does not.
"Even within the university community, it's not even universally applied," Radogno said. "It's applied based on your family status, which generally we try to stay away from that. So, if you happen to have children, you get extra pay."
Radogno said that does not make sense, and she doesn't buy university claims that it is an important recruiting tool.
Schools say that lawmakers have continually looked to higher education to help fill the state's budget hole, and that has already meant reduced benefits for university employees. Illinois State University spokesman Jay Groves said Illinois exports a lot of its high school graduates to neighboring states. He said the perk helps entice employees' children, their partial tuition and fees to stay in Illinois.
"You know she might be assuming that if students did not have that benefit, that they would go to public universities anyway, and that is not a given," Groves said. "So that is money taken away from the public universities if the student decided to go out of state or to a private institution."
If it gains traction in the legislature, Radogno's proposal would only apply to future hires. Current university workers would be grandfathered in and have the chance to keep the tuition break.
Radogno also has legislation that would eliminate full tuition waivers known as General Assembly scholarships. Lawmakers can award them at their discretion, and there have been cases of abuse. Governor Pat Quinn also supports ending that program.
University of Illinois board of trustees chair Christopher Kennedy addresses the U of I community in the Beckman auditorium to discuss the importance of research at the university to the economic development of Illinois and the nation. He explains why advancing efforts to secure new research opportunities will have a positive effect on the economy.
Wisconsin's public workers no longer have collective bargaining rights. Lawmakers stripped them away Thursday, and the move's causing a firestorm in pro-labor circles. But Illinois' neighbor to the north isn't the only one seeing an epic battle over workers rights.
Thousands of union members flooded streets outside the Indiana Statehouse Thursday. The demonstrators hoped to stop measures they fear are worse than those in Wisconsin.
It's usually a two hour drive from the Northwest Indiana city of Portage to Indianapolis. Yesterday morning, I-65 was covered in snow, so the trip was more like a slick, three-hour Odyssey. This is did not dampen the spirits of a busload of steelworkers when they arrived at the Indiana Statehouse.
The vice president of Local 6787, Pete Trinidad, said he came down to lend his voice. "We disagree with what our politicians are doing down here. And if we don't come down and have our voice heard then they are going to say, 'Well, you didn't say anything so we just went ahead and did it.' We didn't want that to happen."
In some ways - the stakes are higher for organized labor in Indiana than they are in Wisconsin. You see, the issue of public workers' collective bargaining rights is old-hat in the Hoosier state. Indiana's Republican governor, Mitch Daniels, stripped state workers of such rights back in 2005.
GOP legislators took control of both chambers this year - and they took their own swipe at organized labor. The first bill Republicans introduced this session would strip public school teachers of most collective bargaining rights. Another bill would make Indiana a so-called right to work state. Basically, companies would no longer require union membership as a condition of employment.
Republicans say this would make Indiana more economically competitive. Union member Pete Trinidad doesn't don't by it, so he took part in yesterday's demonstration, one of the largest in Indiana's history. Trinidad says the GOP's first bill targeted teachers - but it won't stop there. "They try to choose on spot and start a crack and the crack goes all the way across. We can't do that. We're all together in this."
Dozens of speakers addressed the crowd that lined up near the Indiana Statehouse. And despite the chilly temps, chanting continued for hours.
But inside the Capitol - things were quiet. One reason is that House Democrats have boycotted the past three weeks of this session. They don't have enough votes to stop the GOP's agenda, but without Democrats, the House can't do its work because there's no quorum.
But a Senate Democrat from was there - eager to take jabs at Republicans.
"What happened in Wisconsin yesterday was terrible," said Lonnie Randolph, a veteran Democratic state senator from East Chicago. "Indiana, Wisconsin, Ohio. That's not by chance all this is happening. If they weaken labor, they weaken the biggest contributor and supporter of the Democratic party."
Randolph saw the crowd outside. He says Republicans are overreaching.
"They've waken up a sleeping giant in my opinion," Randolph continued. "The people that came down here today 20,000-plus, these are just average, everyday people with families. They're just barely making it from pay check to pay check. And what you're doing you're hitting them in the pocket. This is going to go on until the people get some relief."
It turns out the pro-union demonstrators were preaching to the converted Thursday, because Republican leaders weren't in the Indiana Capitol, either. They called the day off. Not because of the demonstration - but because the Big Ten basketball tournament is in town and they didn't want to deal with a congested downtown Indy.
Maybe it's a fitting demonstration of their confidence they'll prevail. Brian Bosma, the House Majority's Republican leader, said as much in recent days. "There's always room for compromise. I'm not going to concede to a list of demands. I'm not conceding to that. I'm never going to concede to that particularly when it's only 37 people telling the remaining 63 what to do."
Bosma said pro-union Democrats are missing something: Republicans have power - and they ought to. They got the most votes in this historically Republican-leaning state.
So, Bosma feels the GOP can wait things out, long after the union noise dies down.
Though ... that could take a while - unions plan more demonstrations for next week..
(Photo by Michael Puente/IPR)
A Champaign group committed to fair and reasonably priced health care has filed a complaint against its own insurance carrier.
Champaign County Health Care Consumers says premiums for its five staff members have gone up about 25-percent on average over the last 4 years. Executive Director Claudia Lenhoff said the group's complaint before the Illinois Department of Insurance against PersonalCare also contends the provider is discriminating based on age and gender. Lenhoff said when contacting the company, she's told that the higher premiums are based on usage.
"You see the higher charges for females compared to males, and they usually say that that's because women are going to have more medical expenses, if they're going to have babies and so on," Lenhoff said. "All the women on staff have never had any children. That doesn't effect our usage. And so, we think that these are pricing schemes that PersonalCare has been able to get away with."
Lenhoff said the higher rates have put her organization in financial jeopardy. The group's Allison Jones says her employer is now paying more than $520 month for her coverage.
"I really feel like they're destabilizing my job," she said. "They're putting my job at risk. I see the numbers and I know how much the salary is for someone who works in a non-profit. I feel really greatly that 100% of my insurance premium is paid for. But I know that's just a ticking time bomb. It's not going to last forever."
Meawhile, Lenhoff said her staff is getting a number of calls from others in the community also using PersonalCare whose rates have gone up considerably. She says this and other complaints will prompt the Department of Insurance to contact insurance companies, and let them know they're monitoring their rate increases. And a bill going before an Illinois House committee next week would give that department review authority over rates. Urbana Democrat Naomi Jakobsson is a co-sponsor.
Wisconsin lawmakers voted Thursday to strip nearly all collective bargaining rights from the state's public workers, ending a heated standoff over labor rights and delivering a key victory to Republicans who have targeted unions in efforts to slash government spending nationwide.
The state's Assembly passed Gov. Scott Walker's explosive proposal 53-42 without any Democratic support and four no votes from the GOP. Protesters in the gallery erupted into screams of "Shame! Shame! Shame!" as Republican lawmakers filed out of the chamber and into the speaker's office.
The state's Senate used a procedural move to bypass missing Democrats and move the measure forward Wednesday night, meaning the plan that delivers one of the strongest blows to union power in years now requires only Walker's signature to take effect.
He says he'll sign the measure, which he introduced to plug a $137 million budget shortfall, as quickly as possible - which could be as early as Thursday.
"We were willing to talk, we were willing to work, but in the end at some point the public wants us to move forward," Walker said before the Assembly's vote.
Walker's plan has touched off a national debate over labor rights for public employees and its implementation would be a key victory for Republicans, many of whom have targeted unions amid efforts to slash government spending. Similar bargaining restrictions are making their way through Ohio's Legislature and several other states are debating measures to curb union rights in smaller doses.
In Wisconsin, the proposal has drawn tens of thousands of protesters to the state Capitol for weeks of demonstrations and led 14 Senate Democrats to flee to Illinois to prevent that chamber from having enough members present to pass a plan containing spending provisions.
But a special committee of lawmakers from the Senate and Assembly voted Wednesday to take all spending measures out of the legislation and the full Senate approved it minutes later, setting up Thursday's vote in the Assembly.
Walker has repeatedly argued that collective bargaining is a budget issue, because his proposed changes would give local governments the flexibility to confront the budget cuts needed to close the state's $3.6 billion deficit. He has said without the changes, he may have needed to lay off 1,500 state workers and make other cuts to balance the budget.
The measure forbids most government workers from collectively bargaining for wage increases beyond the rate of inflation unless approved by referendum. It also requires public workers to pay more toward their pensions and double their health insurance contribution, a combination equivalent to an 8 percent pay cut for the average worker.
Police and firefighters are exempt.
UI Holds Forum on Proposed Cuts to Institute of Aviation
The University of Illinois held a public forum Tuesday night to get feedback about a budget recommendation to break up the 65-year-old Institute of Aviation.
Two candidates for Danville mayor contend they were each offered a job by opponent Jim McMahon in exchange for giving up their campaigns.
Rickey Williams and David Quick both say they were offered the position of Vermilion county treasurer. Quick tells the Danville Commercial-News he was offered the job by McMahon himself, while Williams says it came through a supporter of the County Board Chairman, and he wasn't sure if McMahon was aware of it himself.
Williams says he has no intention of leaving the race, and has integrity.
"I'm not for sale. Even when I was on the (Danville) city council, someone attempted to bribe me about a liquor license," he said. "I made that public knowledge then. It's against everything I stand for as a person. We need somebody who's going to be forthright, and have the best interests of the people at heart. And backroom deals are not the way to represent the people's voice."
McMahon said Williams' comments make no sense, when considering that County Treasurer Sue Stine was just re-elected to office and does a good job. McMahon admitted that he suggested to Quick that he drop his campaign and team up with him, since their campaigns have similar messages regarding higher taxes, although both names would still appear on the ballot.
"Any time you have bad publicity it could damage your campaign," McMahon said. "But I hope people understand and would rise above this. This is a business decision, trying to help a businessman who basically was in 4th place, to come up and join my team so we could be together as committee traveling forward. What more can you ask for when you got fourth and first working together?"
McMahon also said it makes no sense to offer Quick a job, since he is a successful restaurant owner. Quick could not be reached for comment Tuesday,
The president of the state Senate says Illinois should consider taxing the retirement income of some senior citizens.
Chicago Democrat John Cullerton said Monday that Illinois needs to overhaul its "outdated" tax system. As part of that process, the state could tax pensions or 401(k) plans for wealthier retirees.
He told the City Club of Chicago this could bring in roughly $1.6 billion a year, which could then be used to lower other taxes.
A spokeswoman says Cullerton would pursue the idea only if it was revenue neutral and had Republican support.
Democratic Gov. Pat Quinn said he hadn't seen Cullerton's proposal but would be willing to consider it in the interest of tax "fairness.
Chicagoans are paying steep prices at the gas pump lately. It's prompted one Chicago congresswoman to call for action against the oil companies.
U.S. Rep. Jan Schakowsky, D-Chicago, said Monday gas prices are so high, they could create another recession.
"I think we need to put on the table everything, including dipping into the reserves, in order to avoid that," Schakowsky siad. She said the U.S. government should end its subsidies to oil companies because their profits are so high.
Meantime, new statistics from AAA show Chicagoans are paying an average of $3.72 per gallon at gas pumps. That's 37 cents higher than last month.
"We're seeing very, very high oil prices for, really, any time of the year," Beth Mosher, a spokeswoman for the organization, said. "The situation in Libya, the unrest in Libya, has prices very, very high."
Mosher suggests commuters stick to public transit - since prices aren't expected to come down for at least the next few weeks.
(Photo by Tony Arnold/IPR)
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