Education reform in Illinois features two major storylines: politics and policy. On the political front, two powerful forces - the business community and teacher unions - have competing proposals. On the policy end of things, the primary educational question is whether and to what degree teacher performance will be a factor in school-district workforce decisions, from budget-related layoffs to dismissals to tenure.

As the law stands now, layoffs and tenure are simply functions of teachers' years of service and don't take into account whether students are actually learning. Firing a tenured teacher is time-consuming and costly, and the current teacher-evaluation system, all sides agree, is ineffective. Common-sense reform is long overdue.

Given Illinois' history and reputation, however, one might expect politics to dictate the outcome at the expense of sound policy. Somewhat surprisingly, the substance of the different proposals appears to be getting a careful vetting, and politics have thus far taken a back seat.

One of the main reasons the Democratic Party did so poorly across the nation last year and lost ground in Illinois was the defection of senior citizens to the Republican Party.

On Election Day 2006, national exit polling showed voters 65 and older split their ballots 49-49 between the two parties. In Illinois, however, senior citizens went with Democrat Rod Blagojevich over Republican Judy Baar Topinka by 10 points, 50-40.

Last year, national exit polling showed Republicans with a huge 59-38 margin over Democrats among seniors. In Illinois, the exit polls showed that Pat Quinn lost the senior-citizen vote to Republican Bill Brady by 17 points, 55-38. Quinn ended up beating Brady by less than 32,000 votes. Blagojevich won his last election by more than 10 times that amount: 367,000. The lost senior vote accounted for more than half the difference between those two margins.

So some Democrats may be forgiven for cringing last week after reading the headlines about how Senate President John Cullerton was floating the idea of taxing retirement income. Their party needs to woo that all-important and rapidly growing demographic back to the fold, not alienate it even more. Those stories probably didn't sit well at all with the oldsters. There's a reason why only five states tax all retirement income, and it ain't fiscal.

If you thought that Illinois government might get a tiny breather after raising income taxes, think again.

The Illinois House's new revenue projection for next fiscal year, which begins in July, is $759 million lower than the governor's. And the House's forecast is also $2.2 billion below Governor Pat Quinn's projected spending for the coming fiscal year.

Quinn's proposed budget was whacked last month by Democrats and Republicans alike for its brutal slashing of several human-service programs. But even with those Quinn cuts, if the House revenue forecast is used in the final product, they'll still have to find $2.2 billion in additional spending reductions.

The bad news doesn't end there. According to some revised numbers issued by the auditor general this past Friday, next year's required state pension payment, including debt service, will be $6.2 billion.

After decades of dominating every tiny aspect of life in his legislative chamber, Illinois House Speaker Michael Madigan now appears to want his members to grow up a little and do some things for themselves.

One of the first steps in that process to adulthood is handing more power to the House's five appropriations committees and the House Revenue Committee.

The appropriations committees have been toothless kittens for decades. They listen to a parade of agency directors outline their upcoming budget requests and press them about jobs for various constituencies, minority and otherwise. Occasionally, an appropriations chair will briefly have a seat at the bargaining table when the governor and the leaders sit down to talk turkey. But, for the most part, they've been cut out of the process. That's especially been the case the past two years, when the General Assembly has sent "lump sum" appropriations to the governor to avoid specifying cuts.

Child-care advocates thought they had avoided $400 million in threatened cuts to the state's child-care-services budget after speaking with top officials in Governor Pat Quinn's office earlier this month. And the governor's budget office then told a Senate appropriations committee that no such cuts were being planned.

But when the governor last week unveiled his proposed budget for next fiscal year, he included a $350-million net cut in child-care spending, according to the House Democrats' analysis of the proposal.

Judy Baar Topinka"Is it weird that I'm kind of glad to have Judy Baar Topinka back?" a Democratic friend of mine asked me the other day.

No, I replied. It's not weird. I'm glad she's back, as well. She's crazy, I said, but in a very sane way.

Topinka was elected state comptroller in November by a huge margin, while spending just $270,000. That's less than half of what it costs to run a decent state House campaign. Some cost many times that.

The state's secretary of the Department of Human Services met with a group representing child-care providers last Monday and gave them some bad news. Prepare for $100 million in cuts to child-care programs, Michelle Saddler told the group.

According to a participant in the meeting, Secretary Saddler said the state could freeze intake of new clients, "dramatically" increase parental co-pays, cut rates to providers, and eliminate child care for parents who are in school or employment-related training. The meeting resulted in an urgent alert by Illinois Action for Children imploring supporters to immediately call the governor's office.

The $100-million cut would be for the rest of the fiscal year, which ends June 30. That cut would equal about a third of the child-care program's remaining budget, which comes from both state and federal revenue sources.

Billions of dollars worth of badly needed state construction projects on roads, bridges, schools, and transit were abruptly halted last week when a state appellate court tossed out Illinois' entire capital construction program and all its funding sources.

The state is appealing to the Illinois Supreme Court, but if the appellate-court ruling is upheld, it's probably not going to be easy to replace this thing.

About 21 House Republicans voted for the $31-billion capital plan's controversial funding mechanisms - video poker, vehicle fees, and tax hikes on candy and booze.

Except for video poker, those fee and tax hikes have gone almost completely unnoticed since the bill was passed in May of 2009. But with a brand-new and tremendously unpopular income-tax hike still burning white-hot in the public's gullet, and a whole bunch of "new conservatives" elected last November, re-approving the tax and fee hikes isn't going to be a simple matter.

An out-of-state education-reform group raised a whopping $2.8 million in the days leading up to historic state caps on campaign contributions.

All of the money raised by Stand for Children's Illinois PAC came in five- or six-figure contributions from some very major Chicago-area business types. Members of the famed billionaire Pritzker family kicked in a total of $250,000 on December 29, two days before the end of the old campaign-finance system, which allowed for unlimited contributions to groups such as Stand for Children's PAC.

Whether they admitted it or not, a large majority of Statehouse denizens was relieved last week when the General Assembly approved the income-tax hike.

Ironically enough, Republicans might have been the happiest. The state's horrific structural deficit was finally addressed, which is good news all around. And since they didn't put any votes on the tax-hike bill, the Republicans now get to use it as a wicked political hammer against the Democrats.

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