Rep. Hamos on Blago's Education Plan: TV and Streaming
Jeff Berkowitz: So, maybe it’s six billion dollars in additional funding over the next four years for education. Assuming I’ve got most of that [Gov. Blagojevich's education plan] right—[is that] good or bad, Representative Hamos?
State Rep. Julie Hamos [D]: Well, some of us—and I happen to be one of these legislators—have a real long view of the state—of state policies. So, I guess I’m a little concerned that this is a four year plan for funding education better.
Jeff Berkowitz: In large part, for four years, because-
State Rep. Julie Hamos [D-Evanston]: It’s a four year plan. So, what happens in the year 2012? We are going to, like, stop—how are we going to make up the short fall?
************************************
"Public Affairs," is featuring State Rep. Julie Hamos [D-Evanston, 18th Dist.]this week in 35 Chicago Metro suburbs [See, below, for a detailed suburban airing schedule] on Comcast Cable; this coming Monday night [June 12] through-out the City of Chicago on CANTV, Cable Ch. 21 at 8:30 pm; And, right now, on the "Public Affairs," podcast page on your computer [See here].
State Rep. Julie Hamos is completing her 8th year as a State Rep. in a district [the 18th] that was re-districted markedly in 2001-02, and includes a good chunk of the North Shore. The 18th District consists of a portion of Rogers Park, most of Evanston, East Wilmette, Kenilworth, most of Winnetka and a few blocks in Glencoe. The district is a difficult one for the Republicans to ever hope to win, and Rep. Hamos has no opposition from the Republicans this fall.
The "Public Affairs," podcast page gives you a choice of more than 20 different episodes of “Public Affairs," in addition to the show with State Rep. Julie Hamos[See here]. The podcast page also includes press conferences held last week with Governor Rod Blagojevich and his Republican Challenger, State Treasurer Judy Baar Topinka, a show with Republican Presidential candidate John Cox, a show with Kevin White, the Republican nominee for the 5th Cong. Dist. seat currently held by Cong. Rahm Emanuel (D-Chicago), Professor Barry Chiswick, Distinguished Professor of Economics, University of Illinois at Chicago and Professor Hoyt Bleakley, Professor of Economics at the University of Chicago Graduate School of Business discuss and debate immigration, Mayoral Candidate Bill Dock Walls, State Senate Republican Nominee [27th Dist.] Matt Murphy; a recent joint press conference with Senator Obama [D-Illinois] and Congresswoman Bean [D-Barrington] dealing with, among other issues, Iran, Iraq, Defense Secretary Rumsfeld and tax cuts, Senator and Republican nominee for State Treasurer Christine Radogno, the Republican nominee and Democratic incumbent in the 8th CD, David McSweeney and Congresswoman Bean, respectively; Tony Peraica, Cook County Commissioner and Republican nominee for Cook County Board President and much, much more.
[See here].
*******************************************************
Jeff Berkowitz:… The viewers will be seeing this show in the suburbs the first week in June, in the city, a little later. But, towards the end of May is when we are taping the show and when Governor Rod Blagojevich announced a new “supplemental funding plan,” [for education]. Those are my words. He just called it a funding plan for education. But, it’s really supplemental. It doesn’t restructure all of how education is funded. And, we’ve just been hearing it in the bare bones-
State Rep. Julie Hamos: Right.
Jeff Berkowitz: The details will follow. But, in short, as I understand it, he is proposing that the Legislature lease—a long-term lease—of the lottery system, something like ninety-nine years—he hasn’t said yet—to a private entity, and the state would get, in return for that lease, a large up-front payment of about ten billion dollars.
Rep. Julie Hamos[D-Evanston]: Which has to be a wild guess because it’s never been done before. And, it is not clear what the market is.
Jeff Berkowitz: I actually talked with John Filan, who is the director of—is it the Office of Management and Budget on the state level?
Rep. Julie Hamos: So you know a little more than I do at this point?.
Jeff Berkowitz: Do we call it that on the state level?
State Rep. Julie Hamos [D-Evanston]: Governor’s Office of Management and Budget.
Jeff Berkowitz: John Filan’s a very impressive guy. He’s been on this show before-
Rep. Julie Hamos: Very smart.
Jeff Berkowitz: John does nothing that would be called a “wild guess.” You know, the lottery has profits of about six hundred million dollars a year-
Rep. Julie Hamos: Right.
Jeff Berkowitz: Or six hundred fifty [million dollars per year], maybe. So, in the world of finance, when they look at companies and they try to value them--
Rep. Julie Hamos: Right.
Jeff Berkowitz: They [sometimes] do price-earnings ratios. So, you multiply those earnings by-Rep. Julie Hamos: Okay, so ten billion dollars.
Jeff Berkowitz: That’s about a fifteen P/E ratio, for our finance people out there, or price earnings ratio. Fifteen times that six fifty million gets you about ten billion dollars.
Rep. Julie Hamos: Okay.
Jeff Berkowitz: So, so that’s his [Filan’s] estimate [of the appropriate P/E ratio or multiplier for that industry; Ed. Note: OMB Director Filan told me that a 15 P/E ratio is a reasonable estimate to use for valuation of gaming companies]; Now, I’ve heard other experts dispute that and say you’re right, it may not be an accurate number. So, that gets you ten billion dollars and the Governor is proposing taking four billion of those dollars in the next four years-- giving a billion a year in additional funding to education and six billion, or so, would be invested in an annuity that would, for the next twenty years, spin off almost the same amount as the state currently gets from lottery money, about six hundred fifty million dollars.
Rep. Julie Hamos: Right.
Jeff Berkowitz: So, you get the six hundred fifty million dollars per year continuing for twenty years… But, as the Chicago Tribune points out, after those twenty years, you get no additional pay-outs from the [annuity substituting for the] lottery.
Rep. Julie Hamos: That’s a little bit of a problem.
Jeff Berkowitz: But, as Rod would say, “Who cares? I’m not here then.” No, I’m just kidding. Just kidding, Governor Blagojevich. I know he would be very concerned, and he would say—well, we’ll find out. We’ll have him on the show and see what he would say. So, that’s one concern. And, he’s also talked about two billion dollars more [for education funding]—I think over either years five and six or maybe over the first four years--that comes from other places which are not defined.
Rep. Julie Hamos: Right.
Jeff Berkowitz: So, maybe it’s six billion dollars in additional funding over the next four years for education. Assuming I’ve got most of that [Blagojevich's education plan] right—[is that] good or bad, Representative Hamos?
State Rep. Julie Hamos [D]: Well, some of us—and I happen to be one of these legislators—have a real long view of the state—of state policies. So, I guess I’m a little concerned that this is a four year plan for funding education better.
Jeff Berkowitz: In a large part, for four years, because-
State Rep. Julie Hamos [D-Evanston]: It’s a four year plan. So, what happens in the year 2012? We are going to, like, stop—how are we going to make up the short fall?
Jeff Berkowitz: Fiscal year 2011 will be the first one where that [additional] billion dollars goes away.
Rep. Julie Hamos: That’s right.
Jeff Berkowitz: And, I asked him-
State Rep. Julie Hamos: It will be fiscal year 2012. What are we going to do?
Jeff Berkowitz: These are very good questions. I asked the Governor just that when we were running out- with him when he was leaving the school where this had been announced, as the press love to do, ask him questions as they back up and he [walks toward them and he] speaks. He explained to me what I’d call the “beachhead theory of budgeting.” Do you know about the “beachhead theory?”
Rep. Julie Hamos[D-Evanston]: I can’t wait to hear.
Jeff Berkowitz: It’s great and, folks, you can read this by going to “www.jeffberkowitz.blogspot.com,” to see a partial transcript of my conversation with the Governor [See here]. And basically what he says—he said it’s important to establish a beachhead for things that are important. And, [after] you spend a billion dollars per year for four years, he [Gov. Blagojevich] says that it’s very hard for people who might oppose that [to persuade] the Legislature-
Rep. Julie Hamos [D-Evanston]: That’s his theory.
Jeff Berkowitz: Not to continue with that. Because, the Governor says it’s a challenge to the Legislature—to legislators in the future, in both parties—saying “I challenge you. Are you really going to cut this once I’ve shown how important and useful this spending is.” So, that’s the beachhead theory. Now, I paraphrase. But, that’s what it is.
Rep. Julie Hamos: And, that has been our theory with funding universal pre-school, and for funding the All Kids health insurance program.
Jeff Berkowitz: Which are also Governor Blagojevich programs.
State Rep. Julie Hamos [D]: Right, and with funding the tuition tax credit. We’ve changed that a little bit now, the “MAP plus” program. And, I think that’s right. So, we are building pressure on the budget in the future, on top of the very serious pressure we have with pension funding, and with Medicaid funding. So, we already have pressures on the budget—we would just add one [more, Education funding] here. And, I guess we’d like to think a little further out than four years.
Jeff Berkowitz: You think?
State Rep. Julie Hamos [D-Evanston]: I would. Because that’s sort of my tendency to think ahead.
Jeff Berkowitz: You think the Governor will be running for his third term in 2010?
Rep. Julie Hamos: Well, I would be concerned that anybody who’s running for Governor at that point would have to really deal with this, right in the middle of their first term election.
Jeff Berkowitz: Okay, [like] Lisa Madigan, our Attorney General-
State Rep. Julie Hamos[D-Evanston]: Like Lisa Madigan. So, Speaker Madigan might be a little bit concerned about this, because this will put it right in her lap.
Jeff Berkowitz: So, the press asked Speaker Mike Madigan. Emil Jones has signed on and he was there when it was announced, at the Robert Early School, and Emil Jones, President of the State Senate, said “Fine.” They asked Speaker Mike Madigan and he said, “I think I need some more information.” Because Speaker Mike might be concerned, for the same reasons as you said, just for what’s good public policy. But, like any good father, he might think, “This would be the first year that my daughter might be the Governor of the state of Illinois.”
State Rep. Julie Hamos [D-Evanston]: I think that whoever is running for Governor that term would have to- right in the middle of their campaign- would have to deal with that issue.
Jeff Berkowitz: Deal with that issue. That hole [in education revenue].
State Rep. Julie Hamos [D-Evanston]: It’s a big issue and let’s remember that we have some other very big pressures facing the state. Pensions, the biggest one; unfunded pension liability. The Medicaid program, which is really ballooning, and we haven’t been able to figure out any cost containment of that. So, these are big problems facing the state and we need to really come up—we need to come to terms with the fact that we probably need some additional revenues and I would like to add one, which is that the Governor introduced this year the concept of transportation funding. That’s very important to me. I am Chair of the Mass Transit committee. I care about roads. I care about infrastructure. In the future, we--
**************************************************
Public Affairs, with State Rep. Julie Hamos [D-Evanston], was recorded on May 24, 2006 and is airing on the Suburban edition of Public Affairs this week [week of June 5] and on the City of Chicago edition of Public Affairs on Monday night, June 12 at 8:30 pm on Cable Ch. 21. See, below, for a detailed, regular suburban airing schedule for Public Affairs . The show with State Rep. Julie Hamos is available, right now, as a video podcast at the Public Affairs Cinema Complex, along with more than twenty other shows, which are also airing there. [See here].
****************************************************
In 25 North Shore, North and Northwest suburbs, the show airs tonight in its regular Tuesday night time slot: 8:30 pm on Comcast Cable Ch. 19 or 35, as indicated, below.
In 10 North Shore suburbs, the show is also airing in its regular airing slot at 8:30 pm on Comcast Cable Ch. 19 this week on Monday, Wednesday and Friday, as indicated, below.
******************************************************
The episode of Public Affairs, featuring State Rep. Julie Hamos [D-Evanston] airs tonight:
at 8:30 pm on Comcast Cable Channel 19 in Buffalo Grove, Elk Grove Village, Hoffman Estates, parts of Inverness, Lincolnwood, Morton Grove, Niles, Northfield, Palatine, Rolling Meadows and Wilmette
And at 8:30 pm on Comcast Cable Channel 35 in Arlington Heights, Bartlett, Glenview, Golf, Des Plaines, Hanover Park, Mt. Prospect, Northbrook, Park Ridge, Prospect Heights, Schaumburg, Skokie, Streamwood and Wheeling.
and this Wednesday and Friday night at 8:30 pm on Comcast Cable Channel 19 in Bannockburn, Deerfield, Ft. Sheridan, Glencoe, Highland Park, Highwood, Kenilworth, Lincolnshire, Riverwoods and Winnetka.
****************************************************
Transcript draft prepared by Amy Allen, who also does research for “Public Affairs,” and has her own political blog [See here].
******************************************
Jeff Berkowitz, Show Host/Producer of "Public Affairs," and Executive Legal Recruiter doing legal search can be reached at JBCG@aol.com
******************
State Rep. Julie Hamos [D]: Well, some of us—and I happen to be one of these legislators—have a real long view of the state—of state policies. So, I guess I’m a little concerned that this is a four year plan for funding education better.
Jeff Berkowitz: In large part, for four years, because-
State Rep. Julie Hamos [D-Evanston]: It’s a four year plan. So, what happens in the year 2012? We are going to, like, stop—how are we going to make up the short fall?
************************************
"Public Affairs," is featuring State Rep. Julie Hamos [D-Evanston, 18th Dist.]this week in 35 Chicago Metro suburbs [See, below, for a detailed suburban airing schedule] on Comcast Cable; this coming Monday night [June 12] through-out the City of Chicago on CANTV, Cable Ch. 21 at 8:30 pm; And, right now, on the "Public Affairs," podcast page on your computer [See here].
State Rep. Julie Hamos is completing her 8th year as a State Rep. in a district [the 18th] that was re-districted markedly in 2001-02, and includes a good chunk of the North Shore. The 18th District consists of a portion of Rogers Park, most of Evanston, East Wilmette, Kenilworth, most of Winnetka and a few blocks in Glencoe. The district is a difficult one for the Republicans to ever hope to win, and Rep. Hamos has no opposition from the Republicans this fall.
The "Public Affairs," podcast page gives you a choice of more than 20 different episodes of “Public Affairs," in addition to the show with State Rep. Julie Hamos[See here]. The podcast page also includes press conferences held last week with Governor Rod Blagojevich and his Republican Challenger, State Treasurer Judy Baar Topinka, a show with Republican Presidential candidate John Cox, a show with Kevin White, the Republican nominee for the 5th Cong. Dist. seat currently held by Cong. Rahm Emanuel (D-Chicago), Professor Barry Chiswick, Distinguished Professor of Economics, University of Illinois at Chicago and Professor Hoyt Bleakley, Professor of Economics at the University of Chicago Graduate School of Business discuss and debate immigration, Mayoral Candidate Bill Dock Walls, State Senate Republican Nominee [27th Dist.] Matt Murphy; a recent joint press conference with Senator Obama [D-Illinois] and Congresswoman Bean [D-Barrington] dealing with, among other issues, Iran, Iraq, Defense Secretary Rumsfeld and tax cuts, Senator and Republican nominee for State Treasurer Christine Radogno, the Republican nominee and Democratic incumbent in the 8th CD, David McSweeney and Congresswoman Bean, respectively; Tony Peraica, Cook County Commissioner and Republican nominee for Cook County Board President and much, much more.
[See here].
*******************************************************
Jeff Berkowitz:… The viewers will be seeing this show in the suburbs the first week in June, in the city, a little later. But, towards the end of May is when we are taping the show and when Governor Rod Blagojevich announced a new “supplemental funding plan,” [for education]. Those are my words. He just called it a funding plan for education. But, it’s really supplemental. It doesn’t restructure all of how education is funded. And, we’ve just been hearing it in the bare bones-
State Rep. Julie Hamos: Right.
Jeff Berkowitz: The details will follow. But, in short, as I understand it, he is proposing that the Legislature lease—a long-term lease—of the lottery system, something like ninety-nine years—he hasn’t said yet—to a private entity, and the state would get, in return for that lease, a large up-front payment of about ten billion dollars.
Rep. Julie Hamos[D-Evanston]: Which has to be a wild guess because it’s never been done before. And, it is not clear what the market is.
Jeff Berkowitz: I actually talked with John Filan, who is the director of—is it the Office of Management and Budget on the state level?
Rep. Julie Hamos: So you know a little more than I do at this point?.
Jeff Berkowitz: Do we call it that on the state level?
State Rep. Julie Hamos [D-Evanston]: Governor’s Office of Management and Budget.
Jeff Berkowitz: John Filan’s a very impressive guy. He’s been on this show before-
Rep. Julie Hamos: Very smart.
Jeff Berkowitz: John does nothing that would be called a “wild guess.” You know, the lottery has profits of about six hundred million dollars a year-
Rep. Julie Hamos: Right.
Jeff Berkowitz: Or six hundred fifty [million dollars per year], maybe. So, in the world of finance, when they look at companies and they try to value them--
Rep. Julie Hamos: Right.
Jeff Berkowitz: They [sometimes] do price-earnings ratios. So, you multiply those earnings by-Rep. Julie Hamos: Okay, so ten billion dollars.
Jeff Berkowitz: That’s about a fifteen P/E ratio, for our finance people out there, or price earnings ratio. Fifteen times that six fifty million gets you about ten billion dollars.
Rep. Julie Hamos: Okay.
Jeff Berkowitz: So, so that’s his [Filan’s] estimate [of the appropriate P/E ratio or multiplier for that industry; Ed. Note: OMB Director Filan told me that a 15 P/E ratio is a reasonable estimate to use for valuation of gaming companies]; Now, I’ve heard other experts dispute that and say you’re right, it may not be an accurate number. So, that gets you ten billion dollars and the Governor is proposing taking four billion of those dollars in the next four years-- giving a billion a year in additional funding to education and six billion, or so, would be invested in an annuity that would, for the next twenty years, spin off almost the same amount as the state currently gets from lottery money, about six hundred fifty million dollars.
Rep. Julie Hamos: Right.
Jeff Berkowitz: So, you get the six hundred fifty million dollars per year continuing for twenty years… But, as the Chicago Tribune points out, after those twenty years, you get no additional pay-outs from the [annuity substituting for the] lottery.
Rep. Julie Hamos: That’s a little bit of a problem.
Jeff Berkowitz: But, as Rod would say, “Who cares? I’m not here then.” No, I’m just kidding. Just kidding, Governor Blagojevich. I know he would be very concerned, and he would say—well, we’ll find out. We’ll have him on the show and see what he would say. So, that’s one concern. And, he’s also talked about two billion dollars more [for education funding]—I think over either years five and six or maybe over the first four years--that comes from other places which are not defined.
Rep. Julie Hamos: Right.
Jeff Berkowitz: So, maybe it’s six billion dollars in additional funding over the next four years for education. Assuming I’ve got most of that [Blagojevich's education plan] right—[is that] good or bad, Representative Hamos?
State Rep. Julie Hamos [D]: Well, some of us—and I happen to be one of these legislators—have a real long view of the state—of state policies. So, I guess I’m a little concerned that this is a four year plan for funding education better.
Jeff Berkowitz: In a large part, for four years, because-
State Rep. Julie Hamos [D-Evanston]: It’s a four year plan. So, what happens in the year 2012? We are going to, like, stop—how are we going to make up the short fall?
Jeff Berkowitz: Fiscal year 2011 will be the first one where that [additional] billion dollars goes away.
Rep. Julie Hamos: That’s right.
Jeff Berkowitz: And, I asked him-
State Rep. Julie Hamos: It will be fiscal year 2012. What are we going to do?
Jeff Berkowitz: These are very good questions. I asked the Governor just that when we were running out- with him when he was leaving the school where this had been announced, as the press love to do, ask him questions as they back up and he [walks toward them and he] speaks. He explained to me what I’d call the “beachhead theory of budgeting.” Do you know about the “beachhead theory?”
Rep. Julie Hamos[D-Evanston]: I can’t wait to hear.
Jeff Berkowitz: It’s great and, folks, you can read this by going to “www.jeffberkowitz.blogspot.com,” to see a partial transcript of my conversation with the Governor [See here]. And basically what he says—he said it’s important to establish a beachhead for things that are important. And, [after] you spend a billion dollars per year for four years, he [Gov. Blagojevich] says that it’s very hard for people who might oppose that [to persuade] the Legislature-
Rep. Julie Hamos [D-Evanston]: That’s his theory.
Jeff Berkowitz: Not to continue with that. Because, the Governor says it’s a challenge to the Legislature—to legislators in the future, in both parties—saying “I challenge you. Are you really going to cut this once I’ve shown how important and useful this spending is.” So, that’s the beachhead theory. Now, I paraphrase. But, that’s what it is.
Rep. Julie Hamos: And, that has been our theory with funding universal pre-school, and for funding the All Kids health insurance program.
Jeff Berkowitz: Which are also Governor Blagojevich programs.
State Rep. Julie Hamos [D]: Right, and with funding the tuition tax credit. We’ve changed that a little bit now, the “MAP plus” program. And, I think that’s right. So, we are building pressure on the budget in the future, on top of the very serious pressure we have with pension funding, and with Medicaid funding. So, we already have pressures on the budget—we would just add one [more, Education funding] here. And, I guess we’d like to think a little further out than four years.
Jeff Berkowitz: You think?
State Rep. Julie Hamos [D-Evanston]: I would. Because that’s sort of my tendency to think ahead.
Jeff Berkowitz: You think the Governor will be running for his third term in 2010?
Rep. Julie Hamos: Well, I would be concerned that anybody who’s running for Governor at that point would have to really deal with this, right in the middle of their first term election.
Jeff Berkowitz: Okay, [like] Lisa Madigan, our Attorney General-
State Rep. Julie Hamos[D-Evanston]: Like Lisa Madigan. So, Speaker Madigan might be a little bit concerned about this, because this will put it right in her lap.
Jeff Berkowitz: So, the press asked Speaker Mike Madigan. Emil Jones has signed on and he was there when it was announced, at the Robert Early School, and Emil Jones, President of the State Senate, said “Fine.” They asked Speaker Mike Madigan and he said, “I think I need some more information.” Because Speaker Mike might be concerned, for the same reasons as you said, just for what’s good public policy. But, like any good father, he might think, “This would be the first year that my daughter might be the Governor of the state of Illinois.”
State Rep. Julie Hamos [D-Evanston]: I think that whoever is running for Governor that term would have to- right in the middle of their campaign- would have to deal with that issue.
Jeff Berkowitz: Deal with that issue. That hole [in education revenue].
State Rep. Julie Hamos [D-Evanston]: It’s a big issue and let’s remember that we have some other very big pressures facing the state. Pensions, the biggest one; unfunded pension liability. The Medicaid program, which is really ballooning, and we haven’t been able to figure out any cost containment of that. So, these are big problems facing the state and we need to really come up—we need to come to terms with the fact that we probably need some additional revenues and I would like to add one, which is that the Governor introduced this year the concept of transportation funding. That’s very important to me. I am Chair of the Mass Transit committee. I care about roads. I care about infrastructure. In the future, we--
**************************************************
Public Affairs, with State Rep. Julie Hamos [D-Evanston], was recorded on May 24, 2006 and is airing on the Suburban edition of Public Affairs this week [week of June 5] and on the City of Chicago edition of Public Affairs on Monday night, June 12 at 8:30 pm on Cable Ch. 21. See, below, for a detailed, regular suburban airing schedule for Public Affairs . The show with State Rep. Julie Hamos is available, right now, as a video podcast at the Public Affairs Cinema Complex, along with more than twenty other shows, which are also airing there. [See here].
****************************************************
In 25 North Shore, North and Northwest suburbs, the show airs tonight in its regular Tuesday night time slot: 8:30 pm on Comcast Cable Ch. 19 or 35, as indicated, below.
In 10 North Shore suburbs, the show is also airing in its regular airing slot at 8:30 pm on Comcast Cable Ch. 19 this week on Monday, Wednesday and Friday, as indicated, below.
******************************************************
The episode of Public Affairs, featuring State Rep. Julie Hamos [D-Evanston] airs tonight:
at 8:30 pm on Comcast Cable Channel 19 in Buffalo Grove, Elk Grove Village, Hoffman Estates, parts of Inverness, Lincolnwood, Morton Grove, Niles, Northfield, Palatine, Rolling Meadows and Wilmette
And at 8:30 pm on Comcast Cable Channel 35 in Arlington Heights, Bartlett, Glenview, Golf, Des Plaines, Hanover Park, Mt. Prospect, Northbrook, Park Ridge, Prospect Heights, Schaumburg, Skokie, Streamwood and Wheeling.
and this Wednesday and Friday night at 8:30 pm on Comcast Cable Channel 19 in Bannockburn, Deerfield, Ft. Sheridan, Glencoe, Highland Park, Highwood, Kenilworth, Lincolnshire, Riverwoods and Winnetka.
****************************************************
Transcript draft prepared by Amy Allen, who also does research for “Public Affairs,” and has her own political blog [See here].
******************************************
Jeff Berkowitz, Show Host/Producer of "Public Affairs," and Executive Legal Recruiter doing legal search can be reached at JBCG@aol.com
******************
<< Home