SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Cross campaign responds to Frerichs’ response

Thursday, Aug 14, 2014

* Yesterday, we talked about a long list of allegations made by Rep. Tom Cross against Sen. Mike Frerichs. Then we discussed Frerichs’ complete response. Here’s the Cross campaign’s response to Frerichs…

Many contend we cannot find common ground on key issues, but the recent discussion over Champaign’s failed ERI program reveals a lot of common ground between the Cross and Frerichs camps. For instance:

1. We all agree on Frerichs’ role in providing the data and analysis the county board used to make the decision on the failed ERI program.

From Frerichs’ response posted on Capitol Fax:

    “…Frerichs provided us with an analysis that showed both costs and potential savings…” (Michael Graham, former Champaign County Board member and CPA)

    “…the administrator asked Mike to review its advantages and disadvantages. Mike did so and presented his findings to the Board, who then adopted it in a bipartisan fashion…” (Steve Beckett, former Democratic Champaign Board and architect of the legislation to take over the Lincoln Library)

2. We all agree the program was a costly failure. At no point in Frerichs’ response does he or his fellow county officials dispute the program was a massive failure that ended up costing Champaign County taxpayers in excess of $3 million. Even though at the time Frerichs said the plan would “be a good tool to deal with budgetary problems for the county board.” (CNG, 7/3/03)

Now, there are a few points of disagreement.

1. Again, instead of taking responsibility for bad analysis and recommendations, Frerichs’ attempts to shift the blame to the market. But, just like the ERI debacle, Frerichs relies on bad math.

Frerichs Response:

    On the Champaign County early retirement initiative, many financial experts missed the continued recession that occurred after those decisions were made, not by Mike Frerichs but by other county leaders. The Champaign News-Gazette correctly pointed this out in its 2004 endorsement of Frerichs for County Auditor.

This is just wrong. The market rebounded after ERI was passed, but Frerichs did not account for the market losses in 2001 and 2002 in his analysis for ERI, and that’s why the 2003 ERI program was such a failure. As a result of the ERI and negative investment returns that were already known at the time ERI was proposed and passed, the county faced $2.5 million in new unfunded liability which prompted them to issue bonds in 2005 costing taxpayers over $3 million. (Source: IMRF Champaign County Historical Funding)

Take a look at the Dow Jones Returns. The market performed well after ERI. Frerichs never factored in the losses in 2001 and 2002. Dow Jones Averages

2. Frerichs’ Performance was definitely an issue in his removal as the County’s IMRF Agent

The County Board debate on this issue clearly outlines frustration with mistakes made by the County Auditor along with an office overly focused on politics. As noted also, Frerichs opposed his removal as IMRF Agent.

Before the vote to remove Frerichs from the position, Champaign County Board member Scott Tapley said “This is a move that is long, long overdue, I am not going to beat a dead horse but mistakes have been made in the past. This is a financial decision that should be made every year, politics should be removed and we should have these decisions made by administration.” (County Board Meeting – 9/21/06, Resolution No. 5643 – Audio)

(Source: http://www.co.champaign.il.us/countybd/PPA/060906minutes.pdf

3. On the patronage issue, that’s a debate between Frerichs and the Champaign News Gazette. But, the Gazette never made the claim Frerichs hired people, their extensive research and reporting argued that Frerichs used his significant clout to have those employees appointed to their positions. Once in the positions, their performances were described by the Champaign News-Gazette with words like “disaster” and “fiasco”.

- Posted by Rich Miller        


15 Comments
  1. - A guy... - Thursday, Aug 14, 14 @ 10:55 am:

    Yikes, Call this one on account of boredom.


  2. - Big Debbie - Thursday, Aug 14, 14 @ 10:56 am:

    Cross is still using that $3 million talking point even though it was debunked by the republican-appointed, nonpartisan, county administrator?

    === However, Champaign County Administrator Deb Busey said the retirement program was not Frerichs’ idea, and that it lost the county $350,000, not $3 million.===

    Strike three and you’re out.


  3. - wordslinger - Thursday, Aug 14, 14 @ 11:13 am:

    LOL, seriously, historic Dow Jones returns? Who is supposed to process all this stuff?

    There’s not enough oxygen in the room for this “race.” Cross will likely win on name recognition alone.


  4. - Unknown Analyst - Thursday, Aug 14, 14 @ 11:15 am:

    The best defense Frerichs can come up with is that the cost-saving ERI he proposed only ended up losing $350,000 instead of $3,000,000? … and that’s strike three against Cross? Wow, I guess math really IS hard…probably why “The Guy” got bored reading the article.


  5. - numberslinger - Thursday, Aug 14, 14 @ 11:18 am:

    wordslinger - the only reason the historical returns are relevant is Frerichs’ continued claims that market losses made his ERI go bad, when, in reality, the market declines had already occurred when he made his proposal. It shows Mike didn’t understand pension accounting at the time, and still apparently doesn’t understand it.


  6. - ShampooBanana - Thursday, Aug 14, 14 @ 11:21 am:

    I think the County Administrator is using fuzzy math! The bond that was used was for $1 Mil in 2005….the last payment for the retired bond was made in Jan. 2014 for $405K. Let’s talk about all of the “Pink Slips” employees were handed after the failed ERI for IMRF. How about the hiring freeze due to the failed ERI plan? Let’s just suppose that Frerichs really understood the market, if so, would really have gambled with the taxpayers money? Frerichs took a two day course and became a Certified Public Finance Officer and I slept at a Holiday Inn, does that qualify me to invest other peoples money on a hunch, gamble, maybe or potential budgetary save?


  7. - walker - Thursday, Aug 14, 14 @ 11:24 am:

    Blah Blah Blah

    Talk about insider banter.

    Any votes moved yet, over this?


  8. - wordslinger - Thursday, Aug 14, 14 @ 11:25 am:

    Numbers, my point is that I doubt there are 100 voters in the state who will tune into this back-and-forth between Cross and Frerichs.


  9. - A guy... - Thursday, Aug 14, 14 @ 11:38 am:

    === wordslinger - Thursday, Aug 14, 14 @ 11:25 am:

    Numbers, my point is that I doubt there are 100 voters in the state who will tune into this back-and-forth between Cross and Frerichs.====

    You’re being uncharacteristically very generous offering up 100 here. Rahm could count ‘em on either hand. Wouldn’t need both.


  10. - ShampooBanana - Thursday, Aug 14, 14 @ 11:43 am:

    I’m just doing the math, you know, regular math and not common core math.


  11. - Anonymoiis - Thursday, Aug 14, 14 @ 12:44 pm:

    Mind numbingly boring arguments in a race nobody is paying attention to. This should end well.


  12. - VanillaMan - Thursday, Aug 14, 14 @ 12:53 pm:

    I vote that we no longer pay any attention to this race.


  13. - Lil Squeezy - Thursday, Aug 14, 14 @ 2:04 pm:

    The race is incredibly boring. I do not dispute that. We should have boring people and not politicians as Treasurer. But moving on, in Frerichs defense (cringe) its not like any county auditor does the actuarial math on an ERI program, an actuary does. And the actuary was either hired by the county (maybe Frerichs), by IMRF, or both a county actuary and an IMRF actuary ran numbers.

    I have nothing site appropriate to say if I am wrong and we have county auditors costing ERI programs. Yikes


  14. - Lance - Thursday, Aug 14, 14 @ 6:48 pm:

    Frerichs playing Defense, Cross playing offense… Cross is going to win this by 6 points easy…


  15. - low level - Thursday, Aug 14, 14 @ 7:16 pm:

    Mike should be checking the House transcripts for Cross’ statements during debate of 1995 Edgar plan and 2003 Blago plans to start.

    Will they? I don’t know. All I know is that I got a fundraising email from his campaign manager - or finance director, forgot which one - and it all made sense to me at that point.


TrackBack URI

Sorry, comments for this post are now closed.


* Good morning!
* Final thoughts before calling it a night
* *** UPDATED x3 - Script *** Quinn airs radio ad of Rauner joking about being "scared" of four African-Americans
* Karen Lewis endorses Chuy Garcia for mayor
* Friday night TV ad rating
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Nexus 6 sells out in minutes, DROID Turbo goes ballistic, Microsoft Band sneaks out early | Pocketnow Weekly 120
        * Roku adds Google Play Movies & TV to its feature list
        * Minuum iOS update picks up new languages, advanced settings (Giveaway)
        * A final word from Taylor Martin
        * Battleheart Legacy signals Mika Mobile’s return to Android
        * AT&T and Verizon Boost Monthly Wireless Data in Ongoing Competition
        * Smash Champs lets you become a legendary trainer

        * Android 5.0 Lollipop Update for Samsung Galaxy S5 Progressing Nicely (Video)
        * HTC Maintains Profitability For the Third Quarter
        * T-Mobile To Launch Samsung Gear S on November 9th for $14.58 A Month
        * LG G3 Dual-LTE To Launch in Russia in November
        * Xiaomi Expected to Launch a 9.2-inch Tablet
        * Trent Reznor working with Apple on secret music project
        * Samsung Galaxy A5 and A3 phones try to capture young people's attention

        * Fall Stars Game filled to brim with talent
        * Fall Stars Game filled to brim with talent
        * White Sox opt to decline Paulino's '15 option
        * White Sox have flexibility to pursue multiple upgrades
        * White Sox offseason plan roundup: Third base
        * Minnie Miñoso belongs in the Hall of Fame
        * Development of young core in '15 can define Chicago's future


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Inmate freed in landmark Illinois case..
        * Documentarian Recalls the 1986 World Series Cha.....
        * Tokyo Thrills the Global Stock Markets..
        * Ill. 14th District: Hultgren, Anderson emphasiz.....
        * Judgment Day: Incumbents are in trouble..
        * Slew of ballot issues crowd alongside nationall.....


        * Lake Michigan waves slam Chicago lakeshore
        * Creator of Operation couldn't afford own operation
        * Union backs county commissioner for Chicago mayor
        * Judge won't close hearing in Islamic State case
        * Lake Michigan waves slam Chicago lakeshore
        * Wallenda ready for windy Chicago tightrope walks
        * Woman charged with defrauding Illinois couple
        * Quinn, Rauner talk jobs, early voting Friday
        * Judge won't close hearing in Islamic State case
        * Cook County Jail guard faces theft charge

        * State contribution to TRS to increase by $300 million next year
        * Former Gov. Edgar to campaign with Rauner
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Madigan’s office seeks clarifications from former Topinka nonprofit
        * Cross says no to income tax hike extension, sales tax on services
        * Gay marriage, abortion issues take backseat in governor’s race
        * Illinois inmate freed in landmark capital punishment case

        * SEC examines Caterpillar's accounting for Bucyrus
        * Cubs hire Maddon as manager, fire Renteria
        * Karen Lewis endorses Jesus Garcia for Chicago mayor
        * A stormy Lake Michigan swamps Lake Shore Drive – and sinks Chicago's mood
        * A stormy Lake Michigan swamps Lake Shore Drive — and sinks Chicago's mood


        * Garcia: I'm a serious mayoral candidate, not just a protest vote
        * Boy, 3, hit by car while trick-or-treating in Winnetka
        * On O’Hare noise, aldermen demand action, but get no satisfaction
        * A higher standard of criminal justice
        * Ex-Northwestern doctor to pay $475K to settle fraud claims
        * Sad day  when  Catholic  schools  close
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Durbin, Oberweis square off for final time
        * State’s attorney investigating alderman’s prize offer to voters


        * 3 injured, 1 fatally, in shootings
        * Karen Lewis endorses Garcia for mayor in new video
        * Boy, 3, struck by car while trick-or-treating in Winnetka
        * Missing Garfield Ridge man located
        * Trial to begin for Darien man charged in 2012 killing
        * Alleged victims of ex-Wilmette teacher share memories online
        * New rules make Illinois voting easier
        * Federal judge refuses government request to close terrorism hearing
        * Emanuel's top attorney: Watchdog had no right to sue
        * Cops release photos in robbery and attack of police sergeant


        * Scary Story: St. Michael And Mr. Pyles By H.W. Devlin
        * Dodging DUIs: Secretary of State Candidates Faceoff
        * Cook County posting indigent burials in 'virtual cemetery'
        * Whom do you trust when it comes to nutrition advice?
        * Zombie barge sinking in storm at Navy Pier
        * The digital afterlife
        * Making Buildings Healthier From The Inside Out
        * Scary Story: Planes By Ted Morrissey
        * Listen to State Week - October 31, 2014
        * "Monster Mash" Celebrates Halloween With Classical Music


        * E.J. Dionne: Moderate thunder out of Kansas
        * Charles Krauthammer: A referendum on competence
        * Quote of the Day: Nov. 1
        * State contribution to TRS to increase by $300 million next year
        * Former Gov. Edgar to campaign with Rauner
        * Esther Cepeda: Elizabeth Pena: Trailblazer on the big screen
        * Andy Shaw: Voter turnout instrumental to reform
        * Ty Fahner: What if the Court rejects pension reform?
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Quote of the Day: Friday, Oct. 31


        * 'Horrific' crash kills 4 in Vandalia
        * Women's event gifts spark GOP protest
        * Spartans get past Pawnee
        * Abandoned boy to stay with foster family
        * Police reports
        * Experience, integrity at heart of Pike race
        * Beardstown schools hope for levy increase
        * Hybrid Court restores 9 more lives
        * Davidsmeyer, Evans seek 100th District seat
        * Looking Back (Nov. 1, 2014)


        * Naperville Central rallies for victory
        * (No heading)
        * Timothy Christian advances to championship game
        * Stevenson recovers against Ross, Lyons
        * Wheaton Warrenville South produces another miracle

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...

        * Tale of the tape: Obama's campaigning a fa......
        * Sen. Mark Kirk questioned by Triton students...

        * Op-Ed: The Ups & Downs of Election Laws, Are Voters Being Tricked at the Door?
        * Andrew Klavan: Is Obamacare Working, Or Are We All Going to Die? [video]
        * Di Leo: The Ebola Epidemic and the American Election
        * The Federal Reserve’s Track Record on Macro Stabilization [video]
        * Where's Weyermuller? Oberweis vs Durbin Debate
        * Muslim Researcher: Women Driving Increases Fornication, Divorce [video]
        * Durbin and Oberweis close campaign on WTTW's Chicago Tonight
        * Opportunity in America: What It Means and How It Grows [video]
        * Last Weekend For Early Voting
        * RNC says "Get Rid of Obamacare - Vote Republican" [video]


        * Editorial: Governors, raining taxpayer $ on Illinois
        * Governor Quinn and Mayor Emanuel Thank New Safe Passage Workers - Nearly 700 Additional Workers Hired This Year to Serve 133 Schools, 69,000 Students Across the City
        * Editorial: Rauner best choice as governor to begin to reverse Illinois’ fortunes
        * Quinn to celebrate Rauner’s UI Labs accomplishment
        * Another Democrat Runs Away From Pat Quinn




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller