Saturday, September 11, 2010
 
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Senate week in review

Sept. 6-10

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[September 11, 2010]  SPRINGFIELD -- Gov. Pat Quinn backed away from a controversial plan to raid state road construction dollars, after the Republican leaders of the Senate and House questioned the proposal, said state Sen. Larry Bomke, R-Springfield. Also during the week, two companies vying to take control of Illinois' $2 billion lottery program presented their cases before Quinn; state revenue was earmarked to help boost Internet technology in rural communities; and a second round of Illinois' Energy Star Appliance Rebate Program was announced.

Diversion of road dollars opposed

After learning of the governor's plan to divert state road construction dollars, Senate Republican Leader Christine Radogno, R-Lemont, and House Republican Leader Tom Cross, R-Oswego, sent a joint letter to the governor, objecting to the plan. Republican lawmakers opposed the potential sweep, saying that it is counterproductive to use the Road Fund or motor fuel taxes as a way to supplement general state spending.

The governor's office was reported to have told local government officials that the state would release $100 million of the $500 million local road component of the capital bill if they agreed to accept the proposed sweeps. Republicans explained that local units of government receive more than half of motor fuel tax revenues automatically through a formula distribution, so releasing capital funds only to divert money from that fund would seemingly negate the benefits of the capital bill funding.

Bomke noted that Republicans voted against legislation (Senate Bill 3660) that gave the governor the authority to transfer money from dedicated state funds to pay for day-to-day operations. Republicans have consistently opposed raiding the road funds for other purposes, and noted that when crafting the capital bill it was understood that there would be no diversions from the road funding. As such, any sweep of the Road Fund or the Motor Fuel Tax Fund would be a violation of that agreement.

Lottery management change pending

In other news, late last week, Camelot Group and Northstar Lottery Group were selected as the two finalists in the bid to take over management and marketing of the state's lottery program. As a final step in the application process, on Wednesday the companies attended a public hearing where they each made a final presentation before the governor. Quinn is expected to use information from the hearing, along with recommendations from the Illinois Lottery evaluation committee that analyzed the initial lottery contract bids, to decide which company will receive the contract.

The lottery management selection and bid process has come under fire by taxpayer watchdog organizations, who criticized the administration's refusal to release information on the companies that bid for the contract or to identify committee members who reviewed the bids. The shroud of secrecy surrounding the process has sparked criticism and raised concerns of potential backroom deals and impropriety.

There has also been scrutiny of Northstar, which is composed of three vendors that already hold contracts with the Illinois Lottery. These are Gtech, which has a contract for lottery machines; Scientific Games, which supplies instant tickets; and Energy BBDO, which handles advertising. Critics question whether it's practical to allow Northstar to essentially supervise itself. Camelot Group is the longtime manager of the United Kingdom National Lottery.

Illinois would be the first state to completely relinquish the management and marketing of its lottery, though the state still owns and maintains oversight of the program. Lawmakers OK'd the move to a private management firm, hoping that a new perspective will help stimulate revenues and draw in new players. Quinn is scheduled to announce the contract winner on Sept. 15.

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Energy Star rebates start Sept. 24

Residents looking to reduce energy consumption -- and save money -- have another opportunity to take advantage of discounts on Energy Star-qualified appliances. This week, approximately $3 million was earmarked for the Energy Star Appliance Rebate Program. The new rebate opportunity begins on Sept. 24 and will be available until the financing runs out.

Bomke said the initial Energy Star rebate program was an enormous success, providing a much-needed boost in sales for the business community and making efficient, money-saving appliances more affordable for consumers. The program offers a 15 percent instant rebate, up to $250 per appliance, on Energy Star-qualified dishwashers, freezers, refrigerators and washing machines purchased at participating stores.

The initial program was so successful that funding this time is expected to run out quickly. As a result, consumers are encouraged to take advantage of the rebate when the program begins on Sept. 24 at 8 a.m. Though most rebates will be given out in the store, consumers with disabilities will be able to take advantage of the rebate by phone.

Internet service to expand

The state is also seeking to boost high-tech infrastructure, with plans announced to invest $100 million to construct more than 1,000 miles of high-speed Internet that will benefit 55 Illinois counties.

The program is funded by state and federal grant dollars, as well as money from private organizations. The project is expected to create more than 650 jobs and establish infrastructure to benefit more than 285,000 businesses and almost 4 million Illinois households.

By expanding fiber-optic broadband networks, the project is expected to bridge a digital divide felt more acutely in rural communities. In fact, according to the governor's office, a reported 47 of the 55 counties expected to benefit from the expanded service are underserved, with a broadband subscription rate of less than 40 percent. Offering high-speed Internet to these communities is anticipated to stimulate employment, help advance education initiatives and significantly benefit health care organizations and law enforcement.

Governor appoints acting corrections director

Also this week, Gov. Pat Quinn announced the appointment of Gladyse Taylor to the position of acting director of the Illinois Department of Corrections. Taylor had been serving as acting assistant director of DOC, but will now assume the role of acting director following the recent resignation of Michael Randle, the former director.

Taylor has held other positions at DOC, and prior to becoming the Department of Corrections' acting assistant director she served as deputy director of the governor's Office of Management and Budget. She replaces Randle, who stepped down after months of criticism regarding his role in the failed MGT Push early prisoner release program.

[Text from file sent on behalf of Sen. Larry Bomke by Illinois Senate Republican staff]

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