[Password removed because others have caught up. See updates below, including links to the actual amendments.]
The governor’s office has agreed to change his proposed gross receipts tax, according to a memo obtained from his budget office.
After complaints by Senate Democrats about the number of businesses that would be hit by the GRT, the governor has agreed to raise the minimum taxation point on the gross receipts tax from $1 million to $2 million, which will impact fewer businesses.
However, the gross receipts tax rate will rise. The GRT on services will go from the initially proposed 1.8 percent up to 1.95 percent, while the rate on goods will rise from the initial 0.5 percent to 0.85 percent. The revenues the gross receipts tax will now bring in will increase from $6.3 billion to $7.6 billion.
That extra money raised by the revised GRT will be mostly used for $1 billion in property tax relief, which was not in the original plan.
The following was e-mailed to me late yesterday from the governor’s office and was slightly revised for style. All emphasis added…
Today the key components of the Governor’s Investing in Families budget plan were filed in the Senate. Thought you’d want to know the bill numbers for tracking purposes.
Senate Bill 1 contains the education funding plan, the gross receipts tax revenue plan, and a property tax relief plan. The bill language reflects a few revisions worked out with the Senate:
Gross Receipts Exemption: increases from $1 million to $2 million – 85% of all businesses in Illinois now exempted
GRT services rate: increases from 1.8% to 1.95% (increases from $1.85 on every $100 to $1.95)
GRT goods rate: increases from .5% to .85% (increases from .50 cents for every $100 to .85 cents)
Total net revenue: increases from $6.3 billion to $7.6 billion ($1.3 billion increase, rounded)
$1.3 billion covers: $250 million bonded road program; $1 billion in property tax relief
Additional highlights:
Education – stays the same/$10 billion over 4 years
Healthcare – stays the same/all uninsured get access to affordable health care
Senate Bill 2 contains bond authorization for the Governor’s $1.5 billion school construction plan, $150 million for school maintenance grants, and $30 million for early childhood capital expansions.
Senate Bill 5 contains the Governor’s Illinois Covered plan to provide every Illinoisan with access to affordable health coverage.
Senate Bill 1090 contains language eliminating road fund transfers for SOS and ISP that cover health care and pensions for employees on our state roads (which started during the Edgar administration); these funds will instead be dedicated for bonded road construction projects. This legislation will allow the state to dedicate up to $3 billion more for the bonded road program.
*** UPDATE *** The AP has react on the plan, which they report was “forged in discussions with Senate President Emil Jones“…
Proponents say the tax would do a better job at gathering revenue as the state economy shifts from manufacturing to services.
‘’The package dramatically boosts education spending, gives every person in Illinois access to affordable health care, ensures property tax relief for homeowners around the state, invests in important infrastructure projects — and makes all of that possible by asking wealthy corporations to finally pay their fair share,'’ said Blagojevich spokeswoman Abby Ottenhoff.
But business groups say the new plan will drive up consumer prices and discourage companies from doing business in Illinois.
Gregory Baise, the president and CEO of the Illinois Manufacturers’ Association, called the new proposal ‘’unbelievable.'’
‘’The kind of negative reaction to this tax hike will only be compounded by this lunacy,'’ Baise said. ‘’This governor wants to tax too much. He wants to spend too much on his way to ruining the Illinois economy.'’
At the end of the day, the Governor’s plan calls for $8.6 billion in new taxes, with only $1 billion in tax relief, for a net increase in taxes of $7.6 billion. Funding for K-12 classrooms will increase $1.5 billion the first year, bringing foundation level funding to schools 6% below recommended levels. Higher education will see a meager $50 million increase.
House Bill 750 generates $9.05 billion in new taxes, but provides $3.6 billion in tax relief, for a net tax increase of only $5.45 billion, or 30% less than the Governor’s plan. House Bill 750 provides $3.9 billion for K-12 classroom instruction in the first year — 260% more than the Governor’s plan, bringing the foundation level funding for schools up to 100% of recommended levels. In addition, HB 750 provides $300 million more for higher education, 600% more than the Governor’s plan.
In the final analysis, only 20% of the net new spending in the Governor’s plan goes to education, while 72% of House Bill 750’s net new spending goes to education. Granted, this doesn’t include new spending on school construction, and I’ll post comparisons of both school construction plans as soon as they are available.
*** UPDATE 3 *** Full text of pertinent amendments…
*** UPDATE 4 *** Dan Johnson-Weinberger has a post at Illinoize on a very unfavorable look at the governor’s gross receipts tax by the “progressive” Institute for Taxation and Economic Policy. Dan’s post is here. The two-page study [pdf file] is here.
In 1987, 73% of white evangelical Protestants agreed that school boards should have the right to fire homosexual teachers. Today, just 42% do so. And in 1987, 60% of white evangelicals believed that AIDS might be a punishment for immoral sexual behavior; today just 38% believe this.
Here’s more…
In 1987, about half of the survey’s respondents (49%) gave conservative answers to at least four of the six questions. In 2007, just 30% did so. This trend has occurred in all major social, political, and demographic groups in the population. While Republicans remain significantly more conservative than Democrats or independents on social values, they too have become substantially less conservative over this period.
The decline in social conservatism is being hastened by generational change, as each new age cohort has come into adulthood with less conservative views on the questions than did their predecessors.
We have several updates today, so this will direct you to them.
* As of 2 o’clock, we’re still waiting on the Illinois Senate to take up Sen. Gary Forby’s bill to roll back electric rates to last year’s levels and freeze them for a year. Go here for the latest. Paul is at the Senate while I’m waiting by the blog.
*** UPDATE *** More on this in a few minutes.
*** UPDATE 2 *** It looks like the bill won’t be called today. Subscribers, check your fax or e-mail.
*** UPDATE 3 *** They’ve adjourned. It won’t be called. Forby told reporters he plans to call the bill after the two-week break.
* Unlike the teachers unions, the Illinois PTA is supporting HB 750. Check it out here. [fixed link]
* On that same post, the Illinois Press Association is holding a joint teleconference with the IL Chamber on the gross receipts tax.
* And still on that post, the business groups opposed to the governor’s tax plans have a new TV ad.
* One more on that post right now, Doug Kane, the governor’s adviser on the GRT is our newest blogger at Illinoize.
* And while this isn’t an update, there’s no other post to amend it to so I’ll just put it here. Broken down warhorse Ald. Berny Stone claims there was some sort of fraud in the first round of his aldermanic election…
The National Journal’s CongressDaily publication [subscription only] had this little gem today…
“There really hasn’t been much of a conversation,” Rep. Jan Schakowsky, D-Ill., said about replacing Sen. Barack Obama, D-Ill., if he becomes the 44th president. “If there is a conversation about it, I want to be in the mix.”
In Illinois, in addition to Schakowsky, there is speculation that Democratic Gov. Rod Blagojevich might want to serve in the Senate, but the most likely candidates come from the congressional delegation, perhaps Rep. Rahm Emanuel or one of the state’s three black representatives, all Democrats: Reps. Bobby Rush, Jesse Jackson Jr., or Danny Davis.
Rush, who defeated Obama in a 2000 Democratic primary by a 2-1 margin, said he supports Obama’s presidential bid, and added there would be no dearth of candidates to replace him. “There are a lot of people who I think would be well-positioned to become a U.S. senator,” Rush said.
Aides said Emanuel has not given the Senate any thought. Other prominent Illinois Democrats include state Attorney General Lisa Madigan and Chicago Mayor William M. Daley, although one party source suggested the mayor might see Washington as a “lateral move” at best.
Oh, brother, I can’t stop laughing. Tears are in my eyes. What a hoot!
Legislation being considered by the Illinois House says dogs can accompany owners at outdoor cafes.
The bill is sponsored by State Rep. John Fritchey (D-Chicago). It passed the Senate earlier this month.
The legislation applies to cities with populations over a million, meaning only Chicago qualifies.
The bill doesn’t propose allowing animals inside restaurants. It says that restaurants would have to comply with health codes and could refuse service to a dog owner if the animal’s behavior threatens the health or safety of other diners.
And now, the question: How do you feel about this proposal? Explain.
* The Senate is expected to vote today on Sen. Gary Forby’s plan to roll back electric rates to last year’s levels and freeze them for a year. Word is that will happen sometime around eleven o’clock, so check back often for updates on this post.
*** UPDATE 1:34 pm *** Both parties left for caucus about an hour ago. They should be back soon. Stay tuned.
*** UPDATE 2:00 pm *** They’re back from caucus, but they have a ways to go before they get to the bill.
*** UPDATE 2:26 pm *** Lots of hot rumors right now, but I was asked by the Senate Democrats to hold off on an “Extra” for a few minutes. Stay tuned for more.
*** UPDATE 2:43 pm *** It doesn’t look like the Forby bill will be called today. Subscribers, check your fax or e-mail.
*** UPDATE 2:48 pm *** They’ve adjourned. It won’t be called. Forby told reporters he plans to call the bill after the two-week break.
* I kinda doubt that this little flower shop was as successful as claimed if they’re going out of business after one month of high rates, but we’ve seen several stories like this so here’s another one…
Kerry Bieker started work at the little flower shop here the day it opened, and she thought the place could really make a go of it.
It did, too. At least for a while. But when the Ameren electric bill this month cost more than the rent, the owners decided to fold, making it perhaps the first store in the area to go out of business because of the electric company’s rate increases. […]
Rent at the four-room building was just $300 a month. Last month’s electric bill, though, was more than $400.
* I’ve told you before that Attorney General Lisa Madign believes there may be some collusion between New York bond rating firms and the electric utility companies. She filed a “motion to compel” this week for force out information about the relationship between the companies. Here’s a background story, but here are some excerpts from that motion…
There have been a number of instances in which the nature and timing of credit rating agencies’ announcements relating to Illinois utilities, including Ameren, have raised troubling questions as to whether the credit rating agencies are providing objective information or promoting the interests of their clients - the utilities and their parent companies.
a. In the fall of 2005, Standard and Poor’s and Moody’s issued warnings and downgrades — seemingly right on cue to promote the interests of the utilities and their parent companies in a lobbying campaign claiming that elected officials and regulators were setting Illinois on a course toward a “California-style energy crisis” that would lead to utility bankruptcies:
On September 27, 2005, a utility-sponsored “consumer coalition” called Consumers Organized for Reliable Electricity (”CORE”) announced its formation “to warn the public about political threats to the electric industry…”
On September 30, 2005, Moody’s Investors Service announced that it might cut its ratings on Ameren and Commonwealth Edison Company, citing “an increasingly contentious political and regulatory climate in Illinois.”
On October 3, 2005, Standard & Poor’s lowered the credit ratings of Ameren and Exelon because of the “heightened adversarial regulatory environment in Illinois.”
On October 3, 2005, CORE issued a barrage of press releases:
“Standard & Poor’s Ratings Services said today that it lowered its corporate credit rating on diversified energy company Exelon Corp. and its subsidiaries […]
“Moody’s places the long term debt ratings of Ameren . . . [Illinois subsidiaries] under review for possible downgrade.” […]
On October 3, 2005, Fitch Ratings noted that “despite the controversy, there have not been any adverse regulatory rulings.” Fitch left the ratings unchanged for Ameren and ComEd and kept their outlooks stable. […]
b.More recently, Moody’s downgraded the Ameren Illinois utilities to junk status, even though there was no change in the utilities’ revenues or costs, thereby “forcing” Ameren to cancel millions of dollars of rate relief […]
On March 13, 2007, the Illinois Commerce Commission approved Ameren’s rate relief plan and, only hours later, Moody’s announced that it was downgrading the Ameren Illinois utilities’ rating to junk status.
* I had a long talk with a staunchly pro-labor southern Illinois Democrat last night who was surprised to learn that one of his local lumber yards - which employs 50 people - has gross receipts of about $5 million a year. One of his car dealers, who is threatening to move out of state if the governor’s gross receipts tax passes, had gross revenues last year of about $4.7 million. Both businessmen are furious about the GRT plan. The legislator is not exactly overjoyed with the governor right now and won’t be around when Blagojevich breezes through the area on his statewide bus tour next week.
McBarron said that the teachers unions have plans to step up their campaign for the gross receipts tax next week when legislators return from Springfield to their districts.
“They’re going to be hearing from their constituents, and we feel confident that by the time they return to Springfield, many of them will feel much better about supporting the gross receipts tax,” McBarron said.
* The editorial page editor of the Rockford Register-Star makes a connection today between the GRT and skyrocketing downstate electric bills in a column about the Illinois Press Association’s opposition to the tax hike…
Advertising representatives at smaller newspapers, especially those served by Ameren, are having a tough time selling ads. Business owners say they have enough trouble paying utility bills that have almost doubled; they can’t buy ads, too. Throw in a new tax and those small businesses, and the newspapers in their communities, will struggle to survive.
You may see a lot more of that logic during the governor’s statewide bus tour next week.
* The Tribune is now noticing dissension within the Senate Democratic ranks since Senate President Emil Jones issued a statement saying he will never call the tax swap for a vote…
Senators in Jones’ own caucus are showing signs of rebellion and are chafing under a process where legislative leaders call most of the major shots.
Meeks suggested rank-and-file lawmakers are weary of “sitting on the bus in full gear while other people play the game.”
Key Hispanic senators also released a statement criticizing the Blagojevich proposal and praising legislation to reduce reliance on local property taxes for schools.
The Tribune often drives coverage in other papers and media outlets, so watch for this meme to finally begin spreading.
* And Phil Kadner makes a good point about the significance of HB 750 moving out of a committee yesterday…
But it never would have passed out of committee without a green light from House Speaker Michael Madigan (D-Chicago).
* More tax and spend stories…
* Harriet Meyer: Governor’s budget plan a boost for healthcare, education
* Joseph Persky, professor of economics at the University of Illinois at Chicago and a member of the Governor’s Council of Economic Advisers: GRT is best option for raising revenues
*** UPDATE *** Unlike the teachers unions, the Illinois PTA is supporting HB 750 as the “best way to provide fairer funding for schools.” No mention of the gross receipts tax on the organization’s front page…
You are urged to call your representativesand senator next week to express our continuing support for H/S 750, as the best way to provide fairer funding for schools, while providing additional money for state needs by the fairest method.
[Hat tip: YDD in comments.]
*** UPDATE 2 *** From a press release…
On Monday April 2, at 1:30 the Illinois Press Association will host a teleconference with the Illinois Chamber of Commerce and the Illinois Taxpayers Federation to address Governor Blagojevich’s proposed Gross Receipts Tax (GRT). Both Doug Whitley of the Illinois Chamber and Tom Johnson of the Taxpayers Federation will offer remarks for a few minutes and then take questions from IPA members.
The IPA encourages all members – publishers, editors and reporters — with questions or concerns about the proposed GRT to take part in this conference.
*** UPDATE 3 *** The biz groups opposed to the GRT have a new television ad. Watch it below…
We have been told so often over the past several decades that a state has to have a good business tax climate in order for its economy to grow, that we have begun to accept it as the truth.
*** UPDATE 5 *** Tom Kacich at the Champaign News-Gazette has a great blog and a very good post this afternoon about the governor’s upcoming stop in Danville. He wonders which state legislators might show up and then writes…
And state Rep. Naomi Jakobsson, D-Urbana, said today that she still hasn’t taken a position because she still hasn’t seen the GRT legislation. “I don’t really talk about hypothetical situations,” she said. “I haven’t even seen what the proposal is yet so I can’t take a position on something I haven’t seen.’
In addition, she wasn’t aware that Blagojevich was going to stop in Danville on Thursday. “What you’re telling me is something I haven’t been told.”
Nice advance work by the governor’s office, I’d say.
What the heck is this guy doing? More House and Senate Dems are peeling off this idea every day, the business groups are running effective TV ads against it (I even saw one on ESPN last night) and statewide Democratic officials have come out against it. It looks like the teachers unions and a few other groups are going to be stuck driving over the cliff with the governor on this initiative.
Rep. Mike Boland is not exactly the most popular member of the Illinois House. Many of his colleagues say they just don’t trust his word. I used to like the guy. I thought he was plucky in the face of overhwhelming odds. Then I saw close hand a couple of years ago why he wasn’t trusted.
While opponents whistled the sound of falling bombs, proponents argued passionately for anti-smoking legislation aimed at protecting the health of young children.
House Bill 1769 went down in flames Thursday, garnering just 18 “yes” votes while the 91 opponents cheered.
The bill would have prohibited smoking in a vehicle with children ages 8 and under.
Rep. Mike Boland, D-East Moline, sponsor of the bill, said he chose that age because children are in car seats until then. He thought it would simplify things for police officers.
If everyone had voted, Boland might have hit the magic “Century” mark of “No” votes. Anyway, here’s more…
“Enough is enough,†said state Rep. Bill Black, a Danville Republican. “What’s next? Are we going to have the smoke police come to your house?
“Why don’t we just put a bill on the calendar that says no cigarettes shall be sold in the state of Illinois and the possession … the mere possession of a cigarette would be a Class X felony?â€
State Rep. Michael Boland, an East Moline Democrat, sponsored the plan, citing similar laws in Louisiana, West Virginia and Arkansas. […]
Handing anti-tobacco forces a major political win, the Illinois Senate on Thursday voted to ban smoking in bars, restaurants, casinos and workplaces statewide.
The initiative, which passed 34-23 and now moves to the House, would replace a patchwork of local anti-smoking laws beginning next January.
The American Cancer Society estimates that eight Illinoisans die each day — about 2,900 a year — after getting sick from breathing smoke-filled air.
Restaurant and bar employees who work eight-hour shifts in a smoke-filled environment breathe in the equivalent of 16 cigarettes, supporters said.
Thursday’s Senate vote to ban smoking in all Illinois public places comes on the heels of hundreds of thousands of dollars in television advertising trying to convince voters and lawmakers that second-hand smoke is dangerous.
The anti-smoking ads join spots about Gov. Rod Blagojevich’s business tax plan and others about cable TV competition as recent commercials that could interrupt the local news or “Good Morning America.â€
Jeff Brand, a communication professor at Millikin University in Decatur, says it’s not necessarily unusual to see groups take their legislative goals to the tube.
“I think right now we just have a glut of issues,†he said.
For the first time, the state would give Illinois students who study in Illinois a break on interest rates for student loans. Then, the break gets better if those students find jobs in-state after graduation, or opt for smaller-paycheck professions such as public service or health care in underserved areas.
If the plan were allowed to expire Sunday night, regulation involving hospital construction would cease to exist, meaning any hospital could be built provided it complies with local zoning restrictions. Hospitals still would be required to be licensed by the state before opening.
As I always say, a committee vote usually means little in the House, but this might be another exception to the rule. House Bill 750 - the income/sales tax increase - cleared the House Education Appropriations Committee this morning on a vote of 12-3 with six abstentions.
Here are the services that would be taxed for the first time under Amendment One of the bill, which is the version the committee approved…
* Arts entertainment and recreation.
* Personal and laundry services.
* Personal and household goods repair and
maintenance.
* Travel arrangement and reservation services
* Investigation and security services.
* Services to buildings and dwellings.
* Other support services.
* Employment services.
* Car washes.
* Landscaping and architectural services.
* Specialized design.
* Lessors of miniwarehouses and self-storage units
* Rental and leasing (not auto).
* Nonscheduled air transportation.
* Taxi and limo.
* Scenic and sightseeing transportation.
* Navigational services to shipping and salvage
* Motor vehicle towing.
* Couriers (air and local).
Senate President Emil Jones has said he won’t call any tax hike for a vote except the governor’s gross receipts tax, so this definitely sets up an intercameral showdown. As of a few minutes ago, Senators were still waiting on an actual GRT bill, and it’s not known if they’ll see one this week.
The governor, of course, has said he will veto any income and/or sales tax increase.
*** UPDATE 2 *** A group of gross receipts tax supporters has sent a letter to House Speaker Michael Madigan…
(W)e do not see the merit of HB 750 compared to the Governor’s plan. […]
HB 750 is not an alternative to the Governor’s proposal. HB 750 fails to provide funding for health coverage, and it does not guarantee funding for school construction needs.
The signatories include SEIU, the IEA, the IFT, Illinois Hospital Association and Illinois Planned Parenthood Council, among several others.
The full letter is below. Click it to see it…
*** UPDATE 3 *** Madigan’s office refused comment on the letter. HB 750’s sponsor, Rep. David Miller, did have some things to say and those comments will be included in tomorrow’s Capitol Fax.
*** UPDATE 4 *** Details of the governor’s statewide bus tour next week have been released. [Hat tip: My dad, who was somehow sent the link.]
I’m an agnostic when it comes to campaign reform plans. It’s not that I don’t believe in reform, I do. It’s just that sometimes the arguments from the reform groups are so over the top that they undercut their own case.
The general rule in political journalism these days is that all contributions, no matter how small, are somehow tainted with corruption. That’s simply not true.
But it always makes for a good story, which is one reason we see so many of them. Reform group hyperventilates about corruption, big headlines follow.
Election reform activists on Wednesday proposed strict new campaign contribution limits in Illinois, saying the state’s long tradition of unfettered political donations has devastated public trust in state government.
Illinoisans “perceive that their government is for sale” after years of scandals involving the state’s unusual no-limit campaign finance system, reform activist Cindi Canary told an Illinois House committee. “Unlimited contributions … damage our democracy.” […]
Lawmakers pointed out that federal limits haven’t cleaned up politics in Washington…
This counter-argument is exactly right. DC is a cesspool of corruption, yet it imposes super-restrictive campaign finance regulations on itself. Moving to that system absolutely does not guarantee cleaner elections. Ask Jack Abramoff.
Also, an intricate system of campaign finance laws makes it way too easy to write pimpy little stories about how Candidate X “violated the law,” even though the violation may have been trivial and completely unintended. That potential is what really worries a lot of legislators.
At one point in the hearing of the House Election and Campaign Reform Committee, Rep. Kevin McCarthy, D-Orland Park, expressed anger that the presentation by the reform activists “makes it sound like we don’t return calls of people who don’t make contributions.”
McCarthy may have been overstating his case, but legislators receive hundreds of calls a week from non-contributing constituents, and most are conscientious about returning those calls. Nobody ever writes stories about that.
The measure also would limit to $20,000 per election what legislative leaders could give to individual legislators.
That’s something that sounds great on its face and I’ve been leaning towards it for years. Leaders have way too much influence.
I was talking to an old-timer the other day about when he was first elected to the House (he’s now a lobbyist). He recalled that in the late 70’s the House Democratic campaign fund had about $5,000 in the bank. These days, they raise almost that, on average, every single day.
But he was quick to add that this didn’t mean legislators were necessarily any more free from some type of party leadership influence. In Chicago and Cook County, local committeemen raised all the money for their legislators. Elsewhere, county chairmen were heavily involved in fundraising.
Anyway, the point is that despite what you often read, this isn’t a completely black and white issue. There’s a lot of gray and, believe it or not, there are a lot of decent people in politics.
Let this sink in: From 1997 to 2005, 48 percent of corporations with annual sales of $50 million or more paid no corporate income taxes, according to Blagojevich’s office of management and budget. […]
Scott Reeder, bureau chief for Small Newspaper Group in Springfield, reported in February that Boeing took to flying executives over the ocean when signing sales agreements to avoid taxation policies. […]
In the meantime, be skeptical — of the television commercials, the data, the projections, the doomsday scenarios. If it means playing “chicken” with big businesses threatening to leave the state, deal me in.
No argument from me that big business needs to pay its fair share. But one major quibble: McQueary writes about companies grossing more than $50 million a year, but the governor’s GRT proposal kicks in at a mere $1 million a year gross. A well-run family restaurant would gross that easily - hardly a big business.
* The AP has a story up entitled “Three Democratic senators reject Blagojevich tax plan.” Not quite. I’ll post a copy of the letter signed by the three Latino Senators in the subscriber-only section, but it doesn’t flat-out oppose the gross receipts tax.
* Democratic state Rep. Frank Mautino expressed his doubts about the GRT yesterday…
“It does not have support in this chamber,†said state Rep. Frank Mautino, D-Spring Valley.
* Schoenburg: Governor’s latest PR move puts pressure on nonprofits
“Here we have a state worker, on state time, using state equipment to generate a state-owned note that solicits providers with state contracts to use provided talking points to lobby their legislators to support the governor’s health-care proposals. […]
“The intimation is that support for the governor’s program will support our organization,” the social service agency person said. “If we do not, we have no way of knowing where we’ll stand after the dust settles.”
* According to Michael Sneed, Congressman Jesse Jackson, Jr. opposes the GRT…
The injury will not stop Jackson, however, from battling Gov. Blagojevich’s proposed gross receipt tax, claiming it will devastate small businesses.
I had a long talk yesterday with people running both the Naisy Dolar and Berny Stone races in the 50th Ward runoff election. Dolar seems set to run a better campaign than she did in the first round, but Stone has also ramped up his efforts, bringing in Mike Noonan, one of the top campaign operatives in the state. I’ll have more on this specific race later.
As we all know, lots of incuments were forced into primary runoffs, but many of them didn’t bother to run even half-decent campaigns. There was not much mail touting their specific achievements and almost nothing attacking their opponents. That will change for many incuments in the coming weeks as the Machine gears up to fight back.
And it looks like some of them will be able to tap into a big warchest. From the Tribune…
Some of Mayor Richard Daley’s most loyal supporters from his Bridgeport power base and from the business community have contributed hundreds of thousands of dollars to a newly created political account for Daley-endorsed aldermen who face strong challengers.
While labor unions have spent massive amounts trying to defeat the mayor’s City Council allies, Daley personally has given very little from his campaign fund to embattled aldermen who almost always vote with him. […]
But state records show that an obscure campaign fund established two months ago has quickly collected almost $300,000 for council candidates. The fund, led by longtime Daley supporter and real estate magnate Elzie Higginbottom, has received most of its biggest donations from clout-heavy 11th Ward players, including former top mayoral aide Timothy Degnan and Fred Barbara, a Bridgeport businessman and Daley friend.
The largest single donor to the effort, known as the First C.D. Victory PAC, was Commonwealth Edison, which provides electricity to Chicago under a franchise agreement with City Hall. […]
Almost $100,000 from the new fund already has gone to council incumbents opposed by union-backed candidates. The beneficiaries include Ald. Madeline Haithcock (2nd), Dorothy Tillman (3rd), Shirley Coleman (16th) and Lona Lane (18th).
Take a look at the committee’s details. Tons of developers are on the contribution lists, plus Machine stalwarts like Tim Degnan and Fred Barbara. ComEd’s PAC and top officials with the company have contributed $67,000. The Illinois Merchants PAC (read: “Big Box Ordinance”) kicked in $25,000.
The fund was apparently started to help Congressman Bobby Rush, but Rush bowed out as an officer in February and now the money is being funnelled to various aldermen.
* More local stories…
* 18th ward candidate decides to stay in the race; some say flip flop points to fraud
State Sen. James Clayborne, D-Belleville, the Senate’s lead negotiator with the two utilities in the continuing controversy over recent rate hikes, said Wednesday that he was “hopeful” that an announcement might be made today.
“The people I’ve spoken to over the last few days thought that Al Sanchez deserved a civic award for the hard work he has done for the city of Chicago over 31 years of service,” Breen said. “So this is kind of a sad day for a very fine man. He’s disappointed and sorry about all of this but I think he’s very hopeful.”
* Cook County’s top health official under fire after comments
