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VRDOLYAK INDICTED *** Updated x9 ***

Thursday, May 10, 2007 - Posted by Rich Miller

*** The full indictment can be downloaded here. ***

*** The press release issued by Fitzgerald can be downloaded here. ***

*** If you missed Fitzgerald’s press conference, you can watch part of it at NBC5’s website by clicking here. ***

*** UPDATE 9 *** Vrdolyak’s mouthpiece speaks to the Sun-Times

Responding to the indictment, Vrdolyak’s lawyer, Michael Monico, said: “We do not believe that the charges will withold the scrutiny of a public trial. He did not engage in a scheme with Mr. Levine. He did not pay him any money, and he did not agree to pay him any money. Mr. Vrdolyak is not guilty of these charges.”

*** UPDATE 8 *** From the press release…

If convicted, each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and the bribery count carries a maximum penalty of 10 years in prison and a $250,000 fine. The Court, however, would determine the appropriate sentence to be imposed.

*** UPDATE 7 *** John Kass’ column is already up. It ends like this…

I never thought they’d get him. They don’t call him Fast Eddie for nothing.

*** UPDATE 6 *** ABC7 is carrying the press conference live right now. Go here. NBC5’s live video feed can be found here.

*** UPDATE 5 *** From the indictment…

VRDOLYAK and Levine agreed that VRDOLYAK would solicit Smithfield Properties to purchase the Scholl Property and that Levine, with VRDOLYAK’s knowledge, would misuse, and did misuse, Levine’s position and influence as a [Finch University of Health Sciences/Chicago Medical School] CMS trustee to arrange a sale of the Scholl Property to Smithfield Properties in exchange for a payment that would benefit Levine. VRDOLYAK ultimately entered into an agreement with Smithfield Properties to receive a $1.5 million payment after Smithfield Properties acquired the Scholl Property and repaid certain project costs. VRDOLYAK and Levine agreed that after VRDOLYAK received the $1.5 million payment, VRDOLYAK would deliver a portion of that amount to Levine.

[…]

At different times, VRDOLYAK and Levine discussed disguising VRDOLYAK’s transfer of the money to Levine through various subterfuges: by arranging for VRDOLYAK to make a sham loan to Levine’s wife, by having VRDOLYAK repay a loan that Levine would make with a business associate of VRDOLYAK’s, and by having VRDOLYAK make payments to Levine in cash. During this time period, VRDOLYAK talked with Smithfield Properties about the timing of Smithfield Properties’s payment to VRDOLYAK and VRDOLYAK then shared this information with Levine.

*** UPDATE 4 *** From CBS2

Vrdolyak is accused of scheming with businessman and Republican insider Stuart Levine to get a kickback for Levine from the 2004 sale of the old Dr. William F. Scholl School of Podiatric Medicine at 1001 N. Dearborn St. for a condo project.

Vrdolyak, 69, was charged with one count of mail fraud, two counts of wire fraud and one count of bribery, according to the U.S. Attorney’s office. He will be arraigned at a later date.

*** UPDATE 3 ***
From Crain’s

Former Chicago Ald. Edward Vrdolyak (10th) has been indicted on federal fraud and bribery charges, the U.S. Attorney’s office announced early Thursday afternoon.

*** UPDATE 1 *** John Kass explained “Operation Board Games” in a column

Just as that March 2005 memo downgrading Fitzgerald was making its way to the White House, Fitzgerald’s office in Chicago was proceeding in a fascinating political corruption probe involving alleged kickbacks requiring state approval for the construction of hospitals.

That case would mushroom into Operation Board Games, revealing bipartisan political influence in hundreds of millions of dollars invested through state pension funds. […]

The FBI and federal prosecutors here investigated how hundreds of millions of dollars in public pension investments were made, and the influence exerted by political insiders who brokered ridiculously lucrative pension fund deals.

Fitzgerald characterized the scheme as “pay-to-play on steroids.” The investigation began with hospital construction irregularities, and it led like a trail of bread crumbs to top Republican and Democratic insiders in Illinois.

Those who have pleaded guilty include senior Republican fundraiser Stuart Levine and Democrat Joe Cari, the former finance chairman for the Democratic National Committee. Cari and Levine are cooperating with federal authorities. […]

Individuals A and K have not been indicted. But the Tribune identified them as Big Bob Kjellander (pronounced $hell-ander) and his buddy, Big Bill Cellini, the political boss of Springfield.

*** UPDATE 2 *** The Tribune has a brief story up…

Sources have said recorded conversations included Levine speaking to a number of figures, including former Chicago Ald. Edward Vrdolyak.

A lawyer for Vrdolyak, Michael Monico, said this morning he had not been made aware of any charges. Randall Samborn, a spokesman for the U.S. attorney’s office in Chicago, said the office had no comment.

Vrdolyak has never before been charged criminally, despite frequently coming under investigation during his decades in politics.

I wonder what this might be about? [Emphasis added]…

FOR IMMEDIATE RELEASE
THURSDAY MAY 10, 2007

PRESS CONFERENCE ADVISORY

Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Byram Tichenor, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago, will hold a press conference at 1:30 p.m. today, Thursday May 10, 2007, to announce federal criminal charges resulting from Operation Board Games, a public corruption investigation of alleged insider-dealing, influence-peddling and kickbacks involving private interests and public duties.

The press conference will be held in the U.S. Attorney’s Press Conference Room on the 11th floor, north end, of the Dirksen Federal Courthouse, 219 S. Dearborn St., Chicago. The charges and a detailed press release will be available shortly before the start of the press conference. There are no court appearances scheduled for today in connection with this matter.

I’ll open comments when we know what’s going on.

  32 Comments      


Will Madigan make the Century Club? *** Updated x24 ***

Thursday, May 10, 2007 - Posted by Rich Miller

Updated and bumped up and comments are now open. Check update “2″ for some breaking news. We’ll use this later today to live blog the House debate on Madigan’s resolution asking members for an up or down nonbinding vote on whether they support the GRT and I’ll open comments at that time.

—————————————————————–

*** UPDATE 24 *** The Farm Bureau website has a clip of Madigan’s comments, or you can click below…

[audio:madiganresolution_13471.mp3]

Also, the rollcall is now online. Click here.

*** UPDATE 23 *** The rollcall still isn’t online, but the “PRESENT” votes were: Marlow Colvin, Will Davis, LaShawn Ford, Connie Howard, Chuck Jefferson, Al Riley and Eddie Washington. I don’t know if it makes any difference, but they are all African-American Democrats.

*** UPDATE 22 *** Madigan went straight to his office without commenting to reporters.

*** UPDATE 21 *** You can find the rollcall at this link in a few minutes.

*** UPDATE 20 *** 0 YES; 107 NO; 7 PRESENT

*** UPDATE 19 *** Speaker Madigan closes the debate.

“A proposal for the imposition of a gross receipts tax in Illinois, would constitute a fundamental shift of philosophy of taxation in this state.”

This would be the first time that Madigan has specifically come out against the GRT.

Madigan said that when people start companies they figure on losing money in the first year or two, and the GRT would harm those business plans.

“The gross receipts tax is a regressive tax.”

“Even his own lt. governor has stated opposition to the tax. The mayor of Chicago has stated opposition to the tax…”

“I plan to vote ‘NO’ today.”

*** UPDATE 18 *** Rep. Bill Black: I don’t want to see unnamed sources say, there’s really 35, 45, 55 votes for the gross receipts tax… they just didn’t want to vote against the Speaker… and at a date to be determined they will rise and say they support it.

No means no.

*** UPDATE 17 *** From the Tribune’s Clout Street blog [emphasis added]…

Earlier today, House Speaker Michael Madigan (D-Chicago) made his strongest comments to date on the governor’s plan, saying there seems to be more support for an income tax than the governor’s gross receipts tax. Blagojevich has promised to veto an income tax increase.

Madigan, speaking to WGN-AM’s Spike O’Dell this morning, repeated his position that some type of tax increase is needed. But he still isn’t saying what he favors.

*** UPDATE 16 *** House GOP Leader Tom Cross: “From a policy standpoint (the GRT) just doesn’t work.”

*** UPDATE 15 *** Stephens moved that the resolution vote be exempted from the Century Club award. Madigan: “We were ahead of you. That was the plan.”

*** UPDATE 14 *** Rep. Ron Stephens: The governor mentioned yesterday that the electric rate issue is so critical, but the governor has not yet bothered to even call a meeting to negotiate the issue.

*** UPDATE 13 *** Rep. Julie Hamos: Also voting “NO” today. “I hope that our votes today will not be misinterpreted that… (we need) efforts to change (business tax structure).” “The governor has made a compelling case… that businesses are not paying their fair share in Illinois.” Suggests a “modified GRT,” perhaps a “value added tax” or a “gross margins tax.”

*** UPDATE 12 *** Rep. John Bradley: Disagrees with Hoffman when he said that the House should wait and see what the money will be used to fund. Bradley is saying that it’s important to look at the GRT for what it is, a regressive tax.

*** UPDATE 11 *** More Hoffman: The resolution doesn’t even match the changes that the Senate made.

Hoffman also read a letter from SEIU and the Laborer’s Union, which claims that the vote on the resolution is “premature.” The labor leaders (Ed Smith and Tom Balanoff) ask that all members vote “NO.” Hoffman said he would also vote “NO.”

*** UPDATE 10 *** More Hoffman: “I don’t understand why people can’t hear that (speaking of the governor’s promises not to raise income or sales taxes)… Unless we have 71 votes in this House to raise the income tax, why are we even talking about it?”

*** UPDATE 9 *** Rep. Jay Hoffman, Blagojevich’s House floor leader, is speaking. “We have three weeks to get together, to pass a budget… Why are we doing this today? Who would vote for a tax increase without knowing where the money is going to go?”

*** UPDATE 8 *** Rep. Rosemary Mulligan just asked Madigan whether they should continue with the vote because of the governor’s request that everyone vote “NO.” Madigan: “I would recommend that we engage in a good faith (debate)”

*** UPDATE 7 *** Paul says that House Republicans have signs on the back of their laptops which read: “No means no governor”

*** UPDATE 6 *** The House has begun debating the Madigan GRT resolution. Go here for live audio and video.

*** UPDATE 5 *** A reporter buddy just cracked that the guv’s request for “No” votes on Madigan’s resolution is like “the high school coach who forfeits the game rather than get skunked.” lol

It doesn’t appear, from that comment and the AP story below, that reporters are impressed by this move.

*** UPDATE 4 *** The AP’s take on the situation…

Facing the possibility of a serious defeat, Gov. Rod Blagojevich began lobbying lawmakers to vote against his very own tax plan Thursday.

The Illinois House plans to vote on a resolution testing whether lawmakers support the governor’s plan for a $7.6 billion business tax. The tax is widely expected to suffer a sound defeat, which would be a serious blow to Blagojevich’s chances of ever getting it passed.

So Blagojevich announced that he wants lawmakers to vote “no” - but not because they oppose the plan. He’s portraying a “no” vote as “a clear message that this issue is too important for a rush to judgment on a nonbinding resolution.” […]

Spokeswoman Abby Ottenhoff denied the request for votes against the plan was an attempt to put a better spin on an inevitable defeat.

*** UPDATE 3 *** My interview this morning on WBEZ can be found here, or you can listen below…

[audio:848_20070510a.mp3]

*** UPDATE x2 *** This just in from the governor’s office [emphasis added]…

“Yesterday was a good and productive start to the budget discussion in the House of Representatives. Members asked good questions, raised valid concerns and expressed an interest in working together to meet our state’s biggest challenges like healthcare and education.

“Considering that this meaningful dialogue was initiated just 24 hours ago, it would be premature to conclude the discussion today and ask members to make a decision before they have an opportunity to get answers to their questions and offer their ideas. So we are asking all members to vote ‘no’ to send a clear message that this issue is too important for a rush to judgment on a non-binding resolution.”

It looks like Madigan may get the trophy after all. LOL

*** UPDATE 1 *** If you were wondering about my mention of the House’s “Century Club” trophy, here are a couple of photos. The trophy is “awarded” to members whose bills receive at least 100 “NO” votes. Madigan’s resolution on the GRT might get close. These were taken with my Treo, so they’re not great.

Check out the photo behind the trophy in the first example. Madigan hisself…

A closeup of the trophy…

WBEZ just called asking for an interview, so some posting might be delayed. I’m supposed to be on around 9ish, so tune in your radio or click here to listen on the Intertubes.

  52 Comments      


Question of the day

Thursday, May 10, 2007 - Posted by Rich Miller

Setup, Part One, is Paul’s compilation of GRT-related news stories…

* Blagojevich defends tax plan, warns he’ll veto others\ taxes

* Governor goes long to defend tax plan

* Blagojevich tax plan may go nowhere

* Governor defends tax plan, warns of vetoes

* House to vote on governor’s tax plan

* Governor tries to sell his tax plan

* Governor: GRT or deep cuts

* Taxes vote set after rare day-long hearing

* Gov goes on offensive as House to vote on tax plan

* Governor makes plea for tax hike

* Koehler calls tax plan ‘unfair’ for businesses

* Editorial: GRT merits thumbs down from legislators

* Editorial: Blago must prepare to face political reality

Setup, Part Two, is this e-mail which was forwarded to me yesterday by a friend…

got a robocall at 1:45 today regarding the GRT. It said the Governor has laid out 3 options for Illinois…
1. Tax big business through a GRT
2. Multi-billion $ income tax increase
3. Make do with what we have.
Then I was supposed to vote for which option I preferred.

Question: Which of those three options do you prefer?

  38 Comments      


Surprising vote on gun bill

Thursday, May 10, 2007 - Posted by Rich Miller

The rollcall on this bill was pretty surprising

With suggestions that it could help limit tragedies like April’s Virginia Tech massacre, the Senate on Wednesday approved a ban on high-capacity gun magazines.

Ammunition clips holding more than 10 rounds of ammunition would be illegal under legislation that passed 31-26 and was sent to the House.

Sen. Dan Kotowski, a Park Ridge Democrat, sold the bill as one that doesn’t limit the manufacture or sale of guns in a state reluctant to toughen controls on weapons despite solid Democratic control of the Legislature. […]

But critics said the legislation does nothing to stop violence and would drive gun manufacturers out of the state.

The Illinois State Rifle Association has kicked up a lot of dust over this bill, claiming at one point that Kotowski was “dancing in the blood of the Virginia Tech victims.”

But the bill had bipartisan support and could not have passed without several Republican votes. You can download the rollcall here, but Republican Senators Althoff, Cronin, Dillard, Hultgren, Millner and Murphy all voted for it.

Murphy? Matt Murphy, who was backed by conservative money bags Jack Roeser in last year’s primary? I asked Murphy about his vote last night and he said that besides the fact that he supports stuff like this, the bill is popular in his district.

Anyway, here is a mailer that ISRA sent out a few weeks back attacking Kotowski. Click the pics to see larger images. It’s quite something…

soldier_kotowski1.jpg soldier_kotowski2.jpg

Discuss.

  20 Comments      


Morning Shorts

Thursday, May 10, 2007 - Posted by Paul Richardson

* Protesters rally against utility rates

* Protesters demand rate relief during capitol rally

* Illinois is still irate over rates

“We’ve heard our customers; we understand there are customers that the higher rates have created a burden for,” said Leigh Morris, spokesman for Ameren Corp. “We’ve proposed a number of (rate-relief) initiatives over the previous months, but we cannot proceed with those under the threat of a rate rollback and freeze.”

* Sun-Times Editorial: Power rollback would be a mistake

But Jones is on the right side in this debate. Refreezing the rates will do nothing to encourage competition, but the auction prices stand a much better chance. The freeze threatens to put off competition indefinitely. And lawmakers who support a freeze are telling ComEd it must buy power for more than it can sell it — remember, it no longer generates its own power.

* Cesspool of mismanagement cited in audit of juvenile center

* Mental Health system decried

“I’m fed up with the status quo,” Rep. David Leitch, R-Peoria, told those assembled around the Lincoln statue on the east side of the Capitol. “We have a system in Illinois that’s archaic, expensive and, worst of all, ineffective.”

* AG Madigan investigated Olympia meeting complaint

* Erwin selected as new education commissioner

* McQueary: If only I could get a life

* Mayor introduces ordinance to review police wrongdoing allegations

* Daley appoints nephew to states sports authority

* Shakman rips county inspector general office

  1 Comment      


Hunsdorfer fundraiser reminder

Wednesday, May 9, 2007 - Posted by Rich Miller

Don’t forget that the fundraiser to help former House Staffer Tim Hunsdorfer pay off some of his crushing debt load is tonight from 6:30 to 8:30 p.m. at the Illinois Federation of Teachers Headquarters, 700 S. College, Springfield. Beer, wine, soda and “heavy appetizers” will be served.

Tim is very, very sick and he really needs some help. If you can’t make it to the fundraiser and would still like to kick in a few bucks, go here and scroll down for info.

I plan to be there. I’ll probably split my time between that one and the Beer Distributors’ shindig.

  Comments Off      


FRESH GRT THREAD

Wednesday, May 9, 2007 - Posted by Rich Miller

Nightmare. Power is out at the intl headquarters. Forced to resort to my Treo. Lost a big chunk of the last post attempting to update. [Power restored.]

This is a fresh thread. I really need to buy a generator. [Earlier updates and comments can be found here…. Today’s schedule is here.]

[If you’re having any trouble looking at the video or hearing the audio, open your Windows Media application and under “Open URL” enter (for video) http://12.43.64.137/hsevideo or for audio: http://12.43.64.137/audio]

—————————–

4:48 The Committee of the Whole is officially adjourned.

4:26 Rep. Flowers: “Mr. Filan you are subsidizing the rich.” [applause]

4:23 The specific impact of the employee tax credit (passed in the Senate yesterday) has been answered in entirely different ways by the panelists today. Filan has stated that it will have the effect of exempting the first $5 million in almost all cases. Earlier, Tom Johnson claimed that in only rare cases will all $5 million be exempt. The truth is probably somewhere in the middle, and I expect we will hear more details on each argument over the coming days.

4:17 Rep. Mulligan: “We want fried chicken on Sunday tax proposal…You kill the chicken and you no longer get the eggs anymore.”

3:51 John Filan will be the committee’s final speaker. He is relaying his usual remarks highlighting the GRT’s “broad base” benefit, complaining about the flaws in the current corporate income tax system, and highlighting the success of other states with the GRT.

3:42 Mr. Peters, Illinois Hospital Association: Attempting to re-frame the debate away from the mechanics of the tax and onto the use of the increased revenue…“The GRT is neither good nor bad unto itself. It can only be reasoned in the context of purpose.”

3:23 Fritchey: “Mr. Treasurer your comments were superb. They truly were. What you have learned in 100 days about engaging the legislature…I want to thank you not only on behalf of our caucus by other chamber members I have talked to as well.”

3:18 The House response to Giannoulias is certainly telling. By far the warmest of the day.

3:16: The Treasurer is speaking now on compromise: “I could easily spend all of my time bashing the governor’s plan and make headlines as the new guy…The last thing you want to hear is a ‘lets hug it out’ ideal from a 31 year old…Lets work together and not squander this opportunity to achieve greatness…all or nothing approaches to solving problems are counterproductive.”

3:10: Rep. Hamos cuts Trevor Martin and Greg Blankenship: If they don’t believe that there are any specific programs/issues/concerns in the state that require fund increases, than obviously they would be against any tax increase (GRT included).

3:03: I have a hard time believing that lawmakers have heard anything today that is that truly novel or persuasive. There are few topics any denser than complex tax policy. As the committee meeting hits the 6 hour mark in this 80 degree weather more than a few legislators have literally closed their eyes for a couple minutes of nap time.

2:54: Pantagraph story is up…

Before the governor spoke, Madigan complimented him for putting forth a bold plan to tackle the state’s money problems.

’’Not everyone has shown that kind of courage and initiative,’’ Madigan said.

2:41: OK, Rich again for one last post today. You can find this month’s Fiscal Focus, published by Comptroller Hynes which analyzes the GRT by clicking here [pdf file].

2:35: Professor Fred Giertz explains that it is misleading to focus only on “small business” that are adversely affected by the GRT. Just because a business is large doesn’t mean it can sustain the hit from the tax.

2:21: Paul has the helm.

2:18: The governor’s budget office asked that I post these two releases on the blog, so here you go. Both are .doc files…

* Illinois Ranks Lowest Among All Midwest States in Overall Tax Burden… …After GRT is Adopted, Illinois is Second Best in the Midwest

* Setting the record straight on misleading claims made by big business groups at today’s Committee of the Whole [corrected version]

1:54: Taxpayers’ Federation: GRT is essentially a form of income tax, and therefore violates the state’s Constitution, which limits the ratio of corporate to personal income taxes.

1:52: The Committee of the Whole isn’t the only show in town today…

Hundreds of upset residents are taking their complaints about soaring electric rates straight to the place where they could get help.

They rallied today at the state Capitol and pleaded with state lawmakers to provide some relief for rates that have spiked since the beginning of the year.

The rally organized by the A-A-R-P and the Citizens Utility Board featured pictures of two pigs with the names of utilities Ameren and Com-Ed on them.

State lawmakers led ralliers in chants of “We need relief” and promised they would continue to work on a resolution.

1:50: I’m not sensing so far that anyone’s mind has been changed by any of this debate. Your thoughts?

1:43: The Illinois Farm Bureau has a brief story and a couple of audio clips

* Speaker Madigan explains the GRT resolution that will receive a vote by the full chamber tomorrow [mp3 file]

* Gov. Blagojevich threatens to veto a tax hike [mp3 file]

1:32: The Sun-Times now has a story

[If nothing is done] “We will hurt people,” Blagojevich said. “Schoolteachers will have to be laid off because school districts won’t have the money they need to be able to fund our schools. New textbooks won’t come because the school districts won’t have the money they need. Football teams might not get the uniforms at their high school football games because we don’t have the money we ought to have for our schools.”

His reference to football players being deprived of uniforms triggered a chorus of groans from Republicans and a handful of Democrats, who viewed the warning as an over-the-top scare tactic.

“I’m a little worried about the football players without uniforms,” House Minority Leader Tom Cross (R-Oswego) said sarcastically after the governor’s appearance. “I’m trying to envision…our high school football games this fall with only [players] having pads on and spikes. That concerns me.”

Cross predicted the governor’s tax plan has a “short life” because “it’s, policy-wise, an awful tax. It’s bad for jobs. It’s bad for business. It’s bad for consumers.”

1:13: I just noticed that the Daily Herald’s Animal Farm bloggy type thing did a bit of live-blogging earlier today. Here’s an excerpt…

Now the governor is talking about the doomsday scenario of a “do-nothing” budget if no revenue enhancements pass: no warm meals for seniors in Carbondale, no new uniforms for the high school football teams.

“I believe in football, I believe in high school football,” Blagojevich said. “A do-nothing budget means pain to your constituents.”

1:06: Gordon to IFT and IEA: Provide to me the amount of money you need, not want. (Asked for written response.)

1:02: Oops. I forgot to post today’s schedule. Here it is.

12:55: CBS2 has some video.

12:47: The Tribune’s Clout Street blog has an update

“If that means we are here all summer… I am determined to do that,” Blagojevich said. Lawmakers are scheduled to adjourn at the end of the month.

Blagojevich answered questions from lawmakers, but left the House chambers this morning without taking questions from reporters.

“He just spent an hour answering questions,” spokeswoman Abby Ottenhoff said.

Blagojevich’s security detail surrounded him and blocked reporters from getting close to the governor as he made his way through a crowded Capitol rotunda, down a little-used stairwell and into a rear entrance of his statehouse office.

12:42: Press release from the Illinois Association of Realtors

The gross receipts tax proposed by Governor Blagojevich would take a huge bite out of construction employment in Illinois, as slower growth in the state’s economy due to the new levy would cause a projected permanent loss of 13,968 jobs in the sector, a new study finds. The study results were provided in written testimony today in a hearing of the Illinois House Committee of the Whole on the proposed gross receipts tax.

The study, commissioned by the Illinois Association of REALTORS, finds that housing construction employment alone would fall by more than 1,700 jobs under the weight of the proposed gross receipts tax (GRT).

The research also calculates that the GRT would increase the cost of new homes in Illinois by $5,400 to more than $12,000, depending on the purchase price of the home.

The study can be downloaded here.

12:36: Speaker Madigan said earlier that the House would vote on a resolution tomorrow on the GRT. The resolution is now online and can be found here. It begins with a fairly neutral explanation of the gross receipts tax and then concludes thusly…

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that those voting “aye” on this resolution are in support of Governor Blagojevich’s proposed Gross Receipts Tax and urge that legislation to enact it into law be passed by the General Assembly as soon as possible, and those voting “no” on this resolution do not support Governor Blagojevich’s proposed Gross Receipts Tax and believe that it should not become law

Madigan is the sponsor and House GOP Leader Tom Cross is the chief co-sponsor.

12:18: Greg Baise of the Illinois Manufacturers Association pointed out a few minutes ago that Illinois has lost 200,000 manufacturing jobs since 2000. No offense to Baise, but I thought the single sales factor exemption that was rammed through the legislature about that time was supposed to create 200,000 manufacturing jobs?

12:01: Dave Vite of IRMA: “Small business is not exempt.” He’s using the pyramiding argument now. “Gasoline will cost between 7 and 15 cents more per gallon.

12:01: The governor has a new press release touting his remarks. Find it here.

11:54: More audio clips from our friends at Metro Networks. These are from yesterday’s Senate Executive Committee meeting. The first is a sharp disagreement among committee members…

[audio:58GRTFight1.mp3]

And here is some raw audio of Emil Jones’ remarks…

[audio:JonesRaw.mp3]

11:50: Here’s a short audio clip from the governor’s remarks…

[audio:guv_grt_1.mp3]

[If that doesn’t work, go to the

11:35: Quinn’s time is up. Next in the dock, Illinois AFL-CIO president Michael Carrigan and other labor leaders.

11:35: Rose: Do real people pay the tax on this GRT? Quinn: It’s a soak the middle class tax.

11:28: Hoffman just pointed out that Quinn’s alternative funding solutions aren’t adequate to solve the problems that Quinn claims need to be addressed.

11:28: The governor didn’t say a word to the press as he left the chamber. The entrance and exit was what worried his staff the most.

11:26: From the Tribune

“I believe we have a unique opportunity right now,” Blagojevich said. Nothing that he and his fellow Democrats had recently been re-elected to lead the state, he said “all of us are back in business” and should “not shirk away” from the responsibility to move the state forward.

“We can do it together. I know it’s hard. I know it’s tough,” Blagojevich said. But he said constituents would appreciate better health care and better funding for schools “so they can have an equal chance in the race of life.”

Underscoring his belief that access to health care is a “moral imperative,” the governor vowed to keep pushing for his plan and lashed out at alternative ideas to increase sales and income taxes, vowing once again to veto either increases.

“I won’t do it — not because I made a promise not to do it,” Blagojevich said. “I believe it’s wrong.”

11:19: Pat Quinn: “Ben Franklin did not say it was inevitable to be taxed to death.” Ouch. His remarks are sure to sting as he goes along.

11:19: The governor’s finished. From what I heard, the questions were too long and open-ended for the short-answer format imposed on the proceedings.

11:02: The Senate Republicans have introduced a resolution calling for the rejection of the GRT. No Democratic co-sponsors yet. The resolution is here. [Hat tip: IP]

10:57: Lang: “You say you’re here in the spirit of compromise… but you’ve shut all of those other [tax hike] option down…. How can we compromise with you if there’s only one thing left on the table?” [applause]

Governor said he would talk compromise as long as the alternative ideas are for big bucks and comprehensive and not a sales or income tax.

10:51: Interestingly enough, Rep. Greg Harris (D-Chicago) is asking about exempting family farms.

10:43: Power is back on. Apparently, the time limits are pretty strict, so some Repubs are being forced to submit them in writing. Dems are asking questions now. Rep. Jack Franks is the first.

I’m going to try and restore that other post, but this is the thread to use.

  95 Comments      


Question of the day

Wednesday, May 9, 2007 - Posted by Rich Miller

Blogging on other topics will have to wait until later this morning because of the Committee of the Whole meeting.

In the meantime, here’s your question: Who is your favorite Illinois politician? Explain.

  40 Comments      


Committee of the Whole open thread and GRT updates

Wednesday, May 9, 2007 - Posted by Rich Miller

* The Committee of the Whole meeting begins at 9 o’clock. You can listen or watch it live at this link. Use the comments to help live blog it.

9:46: If you’re having any trouble looking at the video or hearing the audio, open your Windows Media application and under “Open URL” enter (for video) http://12.43.64.137/hsevideo or for audio: http://12.43.64.137/audio

9:41: The guv just warned of a billion dollars in budget cuts if nothing is done this session. He also reiterated his pledge to veto a tax increase on “people.”

9:27: Anyone else having trouble with audio or video? Big problems on my end. Looks like the governor is beginning now. Wow, they swore him in.

9:26: Madigan just said that the House will vote tomorrow on a resolution asking members whether they are for or against the GRT.

9:16: OK, it’s starting.

9:11: While we’re waiting, I forgot to mention that the blog was referenced in an NPR “All Things Considered” report yesterday. Go here and click on the “Listen” button directly under the headline “Florida Joins Crackdown on Campaign ‘Robo-Calls’”

9:07: Members are still milling about, according to Paul. It hasn’t begun yet, so that’s why your video/audio feeds aren’t working.

———————————————————

* Mayor Daley, whose words always hold sway at the Statehouse, urged compromise yesterday…

Mayor Daley urged Gov. Blagojevich on Tuesday to give up the ghost on his struggling gross receipts tax and drop his threat to veto the most viable alternative: an increase in the state’s income or sale

UPDATE: I accidentally killed off the rest of this post trying to update it from my Treo. Live and learn, I suppose.

Here are the GRT links from earlier today…

* It’s last call for a tax bill in Illinois

* Governor’s tax plan faces rocky hearing:

* Statehouse to discuss governor’s tax plan

* Daley urges compromise as governor’s tax hike keeps growing

* All day hearing could be key moment for governor’s tax plan

* Editorial: Don’t waste opportunity to address budget issue

* Statehouse Insider: Hearing may be death knell for tax proposal

* Q & A on gross receipts tax with Rep. Kevin Joyce

* Sun-Times Editorial: Gross receipts tax just doesn’t add up

  26 Comments      


Morning Shorts

Wednesday, May 9, 2007 - Posted by Paul Richardson

* ComEd says rate freeze could prompt suit

“To us, the picture is very clear,” ComEd Senior Vice President Bob McDonald said. “If, in fact, this rate freeze legislation were to become law, and we were not able to stop it in federal court, our path would be to bankruptcy court.”

* ComEd to pay out bill relief, Ameren will not

* Kadner: Customers getting hot over freezing cable

* State limiting public use of armories

* Mortgage probe brings suspensions; more here

* Illinois offers aid to tornado ravaged Kansas

* House sends message about altering its own pay

* Legislators consider bills to make teens drive safer; more here

* Tribune Editorial: Give illegals the ability to drive

* Brown: Certificate bill drives immigration debate

“Illegal is illegal.” Actually, I didn’t forget. I just chose to momentarily tune out that mantra in hopes that somebody might be willing to consider some practical steps to deal with the realities of illegal immigration in our communities while we’re waiting for Congress to come up with its own plan.

* Horse slaughtering, values clash in Illinois

* Excerpts from recent Illinois editorials

* DuPage Co. mulls home-rule to boost revenue

However, as a home-rule government, the county could impose taxes, such as a sales tax on cigarettes, without approval from voters or the state legislature

* Sneed: Ald. Burke & horse-slaughter bill

* Chicago Olympic team mum on potential revenue

* Mayor defends plan to fight police wrongdoing

* Police say killing of candidate’s son wasn’t political

  6 Comments      


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