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Judge: Regardless of Illinois' Historic Budget Stalemate, Lawmakers Must Get Paid

A Cook County judge on Thursday ruled against the "no budget, no pay" policy backed by Republican Gov. Bruce Rauner and Democratic Comptroller Susana Mendoza, finding that the comptroller can't delay lawmaker paychecks even in the midst of a historic state budget stalemate and Illinois' pile of more than $12.8 billion in unpaid bills.

By Kim Geiger and Monique Garcia

A Cook County judge on Thursday ruled against the "no budget, no pay" policy backed by Republican Gov. Bruce Rauner and Democratic Comptroller Susana Mendoza, finding that the comptroller can't delay lawmaker paychecks even in the midst of a historic state budget stalemate and Illinois' pile of more than $12.8 billion in unpaid bills.

The ruling immediately became fodder for the ongoing political war in Springfield, with a top Rauner ally raising the idea of a "coordinated abuse of taxpayers" and a Democratic lawmaker saying his colleagues were no longer being held "hostage."

Last year, then-Comptroller Leslie Geissler Munger, a Rauner appointee, put lawmaker paychecks in line with Illinois' other past-due bills in an effort to delay their salaries and make officials feel the pain of the budget stalemate. Mendoza continued the policy after defeating Munger in a November special election.

A handful of Democratic lawmakers went to court, asking a judge to compel the comptroller to pay their salaries ahead of other past-due bills. They said state law requires lawmakers to be paid in 12 equal monthly installments.

Judge Rodolfo Garcia on Thursday ruled Mendoza needs to pay up and stop delaying lawmaker paychecks. Mendoza said she planned to comply with the order but also to ask her lawyers to appeal the judge's ruling.

"As former Comptroller Judy Baar Topinka did in a 2013 legislator-pay case, I will release the back pay checks to all elected officials consistent with the judge's order," Mendoza said in a statement.

"I have always argued that there is a sound policy reason, given the absence of a balanced state budget, to prioritize payments to the state's most vulnerable -- hospice care, child care, meals on wheels for seniors -- ahead of paychecks for elected officials," Mendoza said. "We will confer with the Attorney General and the consulting attorneys we retained from Holland and Knight, who advised us and the former Comptroller on this case, and ask them to appeal the judge's ruling."

That Mendoza made mention of her outside attorneys is a nod to the political pressures surrounding the case. Munger, in her election campaign, made "no budget, no pay" a central slogan. Mendoza also embraced the populist message, indicating that she'd maintain the policy if elected. Democratic lawmakers, not wanting to sue one of their own, went to court days before Munger left office.

The lawmakers hired attorneys Michael Kasper, a Democratic lawyer with long-standing ties to House Speaker Michael Madigan, and Richard Prendergast, who helped successfully sue former Gov. Pat Quinn after he froze legislative pay during a fight over pension legislation more than three years ago.

That gave Rauner an opening to challenge Mendoza to hire her own lawyers for the case rather than rely on Attorney General Lisa Madigan, the speaker's daughter. So Mendoza kept the outside lawyers and made a point of mentioning them Thursday.

Munger, whom Rauner has since hired as a deputy governor, struck back. She echoed a recent Rauner line of attack, accusing Mendoza of being part of a "coordinated abuse of taxpayers" and criticizing her for not asking a judge to put the order on hold pending an appeal.

"Rather than immediately releasing all the back pay, the Comptroller should request independent counsel and ask for an immediate stay of the ruling pending her appeal," Munger said in a statement. "The fact the Comptroller didn't immediately request a stay is further proof that the Comptroller, Attorney General and Speaker Madigan are engaged in a coordinated abuse of taxpayers."

Last week, Judge Garcia heard arguments in the case and said lawmakers had left the comptroller no choice but to delay some payments. The absence of a full state budget, he said, has left the state accumulating more expenses than it has money to pay for.

But the judge appeared persuaded Thursday by a different argument, concluding that the comptroller doesn't have the discretion to delay payments that have been written into the law.

"There may be discretion by a comptroller as to certain expenditures, but as to expenditures that are compelled by Illinois law, that discretion doesn't exist," Garcia said Thursday as he explained the winning argument in court.

The ruling came as lawmakers were issued their July paychecks, according to Mendoza's office. Spokesman Abdon Pallasch said that in response to the ruling, the comptroller on Thursday started processing paychecks to send out all of lawmakers' delayed money.

Democratic Rep. Emanuel "Chris" Welch, of Hillside, one of the lawmakers who brought the lawsuit, said he was "glad the judge got it right.

"It's unfortunate that we had to do this, but we have to stand up for the constitution and make sure that one branch of government can't hold the other branch of government hostage," Welch said. "I can't imagine what would happen if he would have ruled the other way. The precedent that would have set would be unbelievable."

(c)2017 the Chicago Tribune

Caroline Cournoyer is GOVERNING's senior web editor.
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