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Harmon defends his letter

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* Senate President Don Harmon was interviewed by his local paper

But Harmon defended his letter [to the Illinois delegation] pointing out the request for pension relief was only a part of the aid he was asking for. He said Illinois state tax revenues will be much reduced as a result of the economic slowdown caused by efforts to control the pandemic and the federal government is best positioned to help.

“Whenever there is an economic crisis in this country Congress is quick on the draw to dole millions of dollars out to Wall Street and big corporate interests,” Harmon said. “I am not at all bashful about speaking up for the state of Illinois, for our first responders, for our public employees, for our retirees, and for the people that we serve. The letter was a broad request to Congress for relief from the profound economic consequences of the pandemic.” […]

“State governments and local governments are going to need help from the federal government, the only government that can successfully deficit finance an episode like this,” Harmon said.

Harmon said his request for pension relief was taken out of the context.

“The request I made for support for pension funding was not in any way a bail out,” Harmon said. “It’s a recognition that our revenues are going to be squeezed. . . I asked for many things. I asked for block grant funding to help us patch the general hole in our revenue stream. I asked for support for the unemployment trust fund that could easily run dry with all the claims for unemployment.”

posted by Rich Miller
Friday, May 8, 20 @ 11:43 am

Comments

  1. I had forgotten about this mistake until he reminded me about it again. Best to let it go, dude.

    Comment by Just Me 2 Friday, May 8, 20 @ 11:50 am

  2. Asking for other stuff in addition to a pension “bailout” isn’t exactly a defense.

    Comment by Politix Friday, May 8, 20 @ 11:51 am

  3. I appreciate this attempt at putting this into context. But as they say, when you’re defending you’re losing. Just let it go, pivot and change the conversation. And next time, maybe consult with other leaders before making a request of the Feds.

    Comment by Shytown Friday, May 8, 20 @ 11:52 am

  4. ==Congress is quick on the draw to dole millions of dollars out to Wall Street and big corporate interests==

    The same Wall Street and big corporate interests our pension systems are invested in.

    Comment by City Zen Friday, May 8, 20 @ 11:57 am

  5. “Congress is quick on the draw to dole millions of dollars out to Wall Street and big corporate interests“

    I’ll skip the pearls and fainting couch on Harmon’s pension help request. We dole out trillions of dollars over time to people who need help the least. In Illinois we don’t get a big bang for our federal tax dollars compared to “anti-government” red states. Royko wrote about it decades ago.

    Comment by Grandson of Man Friday, May 8, 20 @ 11:57 am

  6. The best response to the ridiculousness of his letter, seemingly on his own, to insert himself where no one asked him to be;

    “I’m the governor, I’ll take it from here.”

    … to paraphrase from Governor Pritzker’s rightful chiding.

    Rookie mistakes happen, and trying to find the outer reaches of the new power bestowed upon him… the power of the leadership role… it’s an embarrassing misstep, someone looking to lead, first when no one asked, abc second without anyone following.

    This?

    === “The request I made for support for pension funding was not in any way a bail out,” Harmon said. “It’s a recognition that our revenues are going to be squeezed. . . I asked for many things. I asked for block grant funding to help us patch the general hole in our revenue stream. I asked for support for the unemployment trust fund that could easily run dry with all the claims for unemployment.”===

    Yeah… you don’t get to choose how a letter you didn’t vet, to the politics of the day, how others will make you look silly and out of touch.

    The rest? It begins and ends with the Governor… and his own words;

    === I don’t think there’s anything that can be more effective than a governor calling…===

    “We’ll take it from here, thanks.”

    Hopefully a lesson is learned here.

    Comment by Oswego Willy Friday, May 8, 20 @ 11:58 am

  7. Just Me 2…HA HA So true! These days have been months long. Yikes, why get back in the news oof.

    Comment by Fighter of Foo Friday, May 8, 20 @ 11:59 am

  8. The people who comment online sure haven’t forgotten about Harmon’s letter. In fact, they feel that Pritzker is really holding out for a full federal bailout of the state. These comments are increasing by the day, and it’s getting old.

    Comment by historic66 Friday, May 8, 20 @ 12:07 pm

  9. === The request I made for support for pension funding was not in any way a bail out ===

    I guess you could call it more of a “Doing us a solid” :-)

    Comment by Six Degrees of Separation Friday, May 8, 20 @ 12:12 pm

  10. What OW said at 11:58 am. Hopefully someone has “talked” with Harmon about how to officially speak for the government of Illinois. I imagine some major head shrinkage has set in because of this.

    Comment by nadia Friday, May 8, 20 @ 12:18 pm

  11. Harmon’s letter was stupid, but the request is not. Imagine getting President Trump in a room and telling him that if he gave you a few billion it would immediately go back into the stock market. You would have him hook, line, and sinker.

    Comment by Precinct Captain Friday, May 8, 20 @ 12:45 pm

  12. Is anyone in this forum aware of or seen The Economist’s State Fiscal Crisis Simulation video (that is no longer online) from 2010 wherein former Treasury Secretary Robert Rubin moderated a bipartisan panel examining the plight of the fictional State of New Jefferson seeking a federal bailout? You should be.

    Comment by Buttonwood Friday, May 8, 20 @ 12:46 pm

  13. In defense of Harmon the Fed’s are paying the 401k contribution for airline pilots until Oct 1 but yet all hell breaks loose when a state asks for the same.

    Comment by Annoyed Friday, May 8, 20 @ 1:11 pm

  14. Despite how silly the letter looked initially, I have to say as time goes on, the Harmon letter will look more serious and relevant. All states are going to be suffering big revenue shortages. And since the federal government has essentially suspended capitalism to prop up every publicly traded company, especially zombie companies that have not been profitable, why not the states?

    Comment by Ducky LaMoore Friday, May 8, 20 @ 1:24 pm

  15. Mr. President, see the old adage which admonishes to stop digging. Put this in your book of lessons learned and move on.

    Comment by Norseman Friday, May 8, 20 @ 1:32 pm

  16. “Despite how silly the letter looked initially, I have to say as time goes on, the Harmon letter will look more serious and relevant. All states are going to be suffering big revenue shortages. And since the federal government has essentially suspended capitalism to prop up every publicly traded company, especially zombie companies that have not been profitable, why not the states?”

    This, exactly. But for the pension issue which was obviously a mistake, it’s an excellent letter outlining some important issues. And I also think it’s highlighted the fact that Illinois sends more money to DC than we get in return. As the bill comes together, what Harmon wrote in this letter will seem pretty on target.

    Comment by Southern Skeptic Friday, May 8, 20 @ 1:46 pm

  17. To those who are saying stop digging, you do realize that he was going to get asked about it and have to give an answer at some point right?

    Mistake for sure. His answer is simple damage control.

    Comment by Wizzard of Ozzie Friday, May 8, 20 @ 1:50 pm

  18. ==Illinois sends more money to DC than we get in return.==

    I’m due a refund? Sweet.

    Comment by City Zen Friday, May 8, 20 @ 2:18 pm

  19. I’ll stick with my original observation:

    Who?

    Comment by Commonsense in Illinois Friday, May 8, 20 @ 2:19 pm

  20. It’s not like Trump isn’t helping corporations with retirement costs:

    The Coronavirus Aid, Relief and Economic Security Act, signed by President Donald Trump on March 27, provides companies the option of a one-year holiday from making 2020 pension contributions, with interest accrued, until Jan. 1, 2021.

    https://www.pionline.com/pension-funds/american-airlines-defer-pension-contributions-under-cares-act

    Comment by Leigh John-Ella Friday, May 8, 20 @ 2:23 pm

  21. My favorite react to Harmon’s letter came from the Sun-Times editorial board. A few days after they hammered Harmon for his bailout request, they acknowledged they asked for and received a federal PPP grant for $2.5 million. What’s more, the Sun-Times’ near-insolvent pension fund was assumed a few years ago by the Federal Pension Benefit Guaranty fund. Maybe Mitch McConnell, Nikki Haley and the S-T ed board can all move into the same glass house together.

    Comment by Tom S. Friday, May 8, 20 @ 2:30 pm

  22. Another COVID casualty:

    The Senate Presidency of Don Harmon
    2020-2020
    RIP

    Comment by DougChicago Friday, May 8, 20 @ 2:31 pm

  23. ==It’s not like Trump isn’t helping corporations with retirement costs==

    A pension holiday is helping? How has that worked for Illinois?

    On a related note, a number of my still-employed acquaintances’ employers have ceased their 401k employer match for the year.

    Comment by City Zen Friday, May 8, 20 @ 2:40 pm

  24. DougChicago: Kimberly Lightford as the replacement in 2021?

    Comment by Galewood Fish Fry Friday, May 8, 20 @ 3:05 pm

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