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GOVERNMENT RELATIONS


Alliance Legislative Report 96-01

Distributed via Email: January 30, 2009

GOVERNOR REMOVED FROM OFFICE

The Illinois State Senate Thursday voted 59-0 to remove Rod Blagojevich from the Office of Governor. A second vote (also 59-0) by the Senate bars Blagojevich from holding any elected office in Illinois in the future. The governor's removal is immediate.

After a tumultuous six years serving as governor, highlighted by intense battles with the Illinois General Assembly – specifically the House of Representatives – work in the legislature has basically ground to a halt. After a couple of years of backroom talks about impeaching the governor, the impeachment movement began in earnest shortly after federal prosecutors made their official move.

On December 9, 2008, Blagojevich was arrested in his home by federal agents on charges of "pay to play" politics, accused of scheming to "shake-down" would-be state contractors for political contributions and for planning to "sell" the U.S. Senate seat vacated by President Barack Obama.

On January 9, 2009, the Illinois House of Representatives, with the constitutional responsibility to conduct legislative investigations to determine cause for impeachment, voted 114-1 to impeach Blagojevich. Another impeachment vote was taken on January 14 after members of the new 96th Illinois General Assembly were sworn in. That vote was 117-1 in favor of impeachment.

The Illinois Senate, then, was charged with holding an impeachment trial in the Senate chambers to review the impeachment articles brought by the House and try the Governor. The Senate trial began on Monday, January 26 and concluded today (Thursday) with the vote to convict the governor and remove him from office.

Blagojevich is now a private citizen and will await further action by federal prosecutors. Most likely an indictment will come later this year with, eventually, a court trial regarding the allegations of corruption.

GOVERNOR QUINN TAKES OFFICE

With the removal of the governor from office, the Illinois Constitution states that "In the event of a vacancy, the order of succession to the office of Governor or to the position of Acting Governor shall be the Lieutenant Governor". Indeed, former Lieutenant Governor Patrick Quinn has assumed the position and title of Governor Quinn. Governor Quinn is expected to take his oath of office within minutes of the Senate vote to remove Blagojevich.

The Constitution does not account for the filling of the vacancy in the Office of Lieutenant Governor and so that office will remain vacant.

SPRING LEGISLATIVE SESSION WILL CONTINUE

Now that the drama and pageantry of an historical House impeachment procedure and a Senate impeachment trial have ended, the government must press on with the business of the state. Budget shortfalls and an ailing economy wait to be addressed by the new General Assembly and newly seated Governor. Solutions to school funding concerns and public infrastructure needs must be sought.

With the dramatic shake-up in legislative leadership – newly seated Governor Quinn, new Senate President John Cullerton, and new Senate Republican Leader Christine Radogno – lawmakers can start anew in tackling the difficult issues that lay before them.

The legislative session will continue next week and lawmakers will work steadily through the end of May.

U.S. HOUSE APPROVES STIMULUS PACKAGE

In another effort to jumpstart the U.S. economy, the U.S. House of Representatives Wednesday passed H.R. 1, the American Recovery and Reinvestment Act of 2009.  The economic stimulus measure was passed largely along party lines by a vote of 244-188.

H.R. 1 would provide $14 billion in funding for school infrastructure that would be made available to districts within 60 days after enactment.  The economic stimulus bill would also provide increases of $13 billion each for Title I grants for disadvantaged students and special education (IDEA Part B grants to states) over a two-year period (FY 2009 and FY 2010).  The measure would also appropriate funding to schools through a state emergency stabilization fund that would include at least $39 billion dedicated to elementary, secondary and higher education.

The U.S. Senate is expected to consider a companion bill next week which reportedly will contain different provisions than the House version. Both versions would then be considered by a Conference Committee with a goal of completing the legislation by President's Day.

IMRF CONTRIBUTION RATES

The Illinois Municipal Retirement Fund has been holding meetings to discuss the 2010 IMRF employer rate increases. According to IMRF, "through December 21, 2008, IMRF's investment return has been approximately a negative 25.9%. A loss of approximately $6.2 billion, coupled with a $1 billion charge for interest credited to member and annuitant reserves, would require opening year employer reserve balances to be reduced approximately $7.3 billion."

The 2010 employer contribution rate will be the first rate to reflect 2008 returns. The IMRF Board of Trustees is looking to phase-in 2010 employer rate increases. The phase-in plan would provide "the flexibility to moderate the large increases in employer contribution rates while maintaining IMRF's commitment to fully fund the pension system over a reasonable time period."

IMRF has been holding a series of informational meetings to look at investment results and employer rates. There are five meetings left:

Monday, February 2 Clock Tower Conference Center
7801 E. State Street
Rockford 9:00 a.m.
Monday, February 2 Stoney Creek Inn
101 18th Street
Moline 2:00 p.m.
Tuesday, February 3 Libertyville Sports Complex
1950 North U.S. Highway 45
Libertyville 2:00 p.m.
Wednesday, February 4 Bettenhausen Recreation Center
8125 W. 171st Street
Tinley Park 10:00 a.m.
Wednesday, February 4 IMRF Headquarters
2215 York Road
Oak Brook 2:00 p.m.

IMRF held meetings earlier this week in Peoria, Springfield, Collinsville, Mt. Vernon, and Champaign. For more information on IMRF employer rates, go to the website at: http://www.imrf.org/

*The legislative report is written and edited by the lobbyists of the Illinois Association of School Boards to provide information to the members of the organizations that comprise the Statewide School Management Alliance.


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