Capitol Fax.com - Your Illinois News Radar » 2008

Friday, Apr 18, 2008 - Posted by Rich Miller

* Haven’t felt well all week, but hopefully things have turned the corner. At least there’s no session next week. Anyway, have a good one. Head to Illinoize for more.

* Rezko got his wish, so this one’s for him…

Well, if they freed me from this prison,
If that railroad train was mine,
I bet I’d move it on a little,
Farther down the line,
Far from Folsom Prison,
That’s where I want to stay,
And I’d let that lonesome whistle,
Blow my Blues away.

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Rezko News ***UPDATED X2*** Tony Rezko to be released on bail

Friday, Apr 18, 2008 - Posted by Kevin Fanning

* When testimony concludes today, Judge Amy St. Eve will decide whether Tony Rezko should be released on bond. He’s been in jail since he was arrested Jan. 28.

It’s unclear what her decision might be, but this may possibly offer some insight:

Though the circumstances are different in the Rezko case, St. Eve is the same judge who allowed bond for two defendants accused of having ties to Hamas terror funding. St. Eve allowed the two free on bond despite passioned pleas from the prosecution to keep them behind bars so they wouldn’t flee.

Muhammad Salah and Abdelhaleem Ashqar didn’t flee and were ultimately convicted on lesser charges. During and before trial, St. Eve set tight restrictions on the two, including house arrest and requiring a GPS monitoring bracelet for Ashqar.

* Prosecutors have called Scott Parrish to the stand. He was a private-equity investment officer for the Illinois Teachers’ Retirement System when Stuart Levine and Tony Rezko were allegedly corrupting the state pension board and steering investments to firms in exchange for kickbacks.

Parrish is giving the jury background information on how TRS was supposed to work. He said he oversaw investments and was a contact for investment firms interested in doing business with TRS:

He would contact fund managers and ask them to come in for meetings if TRS was interested in their investment proposal.

Jon Bauman, TRS executive director, would make recommendations to the board on proposals that the staff found to be acceptable, Parrish said. Bauman was the “final editor” of material that would be submitted to the TRS board for review.

* Levine previously testified on how his control over Bauman helped him steer business to firms willing to pay bogus finder’s fees. One such firm was Glencoe Capital. Parrish testified that Bauman asked him to contact the firm around 2002.

More to come later….

*** UPDATE *** 12:40 - Testimony has now concluded for the day. St. Eve is going to handle a sentencing in another case and then get back to the question of Rezko’s possible release. She has asked Rezko’s lawyer to be prepared with a figure that represents the total value of all the properties being pledged for bail.

The Tribune points to this prior action by the court:

St. Eve rejected his explanations for a $3.5 million wire transfer he received from Lebanon in 2007. The overseas money was sent on Rezko’s behalf after Rezko had told the court he had no access to funds from abroad.

* Check back with the blog to see St. Eve’s decision.

*** UPDATE *** 2:25 - This just in, Tony Rezko will be released from jail on $8 million bond:

Rezko’s lawyers proposed and the judge ordered that he be released to home detention on electronic monitors. He and his wife offered to post $350,000 in cash to ensure he would not flee. In addition, properties with a combined equity of $8 million were also be pledged to secure his bail.

* The decision came after 30 individuals pledged equity in their homes to secure Rezko’s bond. It appears that behind closed doors, St. Eve has cleared up some issues tied to a $3.8 million wire transfer Rezko didn’t disclose to the court last year. Most of that money went toward legal fees, according to the Judge.

“My decision is based in part in the significant number of individuals from the community coming forward, knowing full well that they will lose it if you fail to come to court and comply with conditions of the bond,” St. Eve said.

If Rezko flees: “You will leave me no choice to foreclose on these 30 individuals and take, what is in some instances, is their entire life savings,” she said. “$8 million Is a very very high bond. Certainly one of the higher I have ever seen set in this building.”

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Question of the day

Friday, Apr 18, 2008 - Posted by Rich Miller

* Nobody wants to see a repeat of NIU, or Columbine, or whatever, but WBBM Radio has a good piece on the wave of recent school closures…

A rash of threats at Chicago area schools has prompted administrators to cancel classes recently, but it’s tough to tell what’s a legitimate precursor to violence or just some kids trying to get out of class.

Brett Sokolow tries to help universities train staff to identify credible threats and mitigate problems before they get to the point of menacing messages on bathroom stalls. […]

Sokolow says credible threats are often repeated and have lots of details.

Founder of the Center for Aggression Management John Byrnes says lots of schools overact by closing campus because they don’t know what they’re looking for and they’re worried about legal liability.

He says looking for aggressive students through body language would cause authorities to miss cold, calculating types like Cho Seung-Hui, who killed 32 students at Virginia Tech.

* I was talking with some pals this week who told me that when they were in high school together, somebody shot a teacher and the students were told to get back to class and not talk to the media.

Things would be much different today.

* The question: Can we be too careful? Or is the rash of closures prudent?

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Help us or else

Friday, Apr 18, 2008 - Posted by Rich Miller

* He’s done this before, so no surprise here…

Gov. Rod Blagojevich, never shy about using taxpayer resources to push his agenda, is once again marshaling state employees to build backing for his budget proposals, according to documents obtained by The Associated Press.

The administration is contacting social service providers and advocates to drum up support, officials confirmed, raising concerns among some that the groups could feel pressure to back the governor.

They have to fill out “endorsement forms,” are given a sample letter and then must return everything to the state, obviously so their participation can be verified.

“When you’re beholden to the state, when the individuals being solicited have an interest in government business, or a state contract, are they free to disagree or ignore it?” [Jay Stewart, executive director of the Better Government Association] said. “Given the history of the state of Illinois, you can’t pretend that isn’t a concern.”

It must be particularly worrisome to state contractors getting a call from the governor, Stewart said, when newspapers are full of testimony from the ongoing federal fraud trial of Blagojevich friend and fundraiser Antoin “Tony” Rezko. He is accused of conspiring to squeeze companies seeking state business for kickbacks and campaign contributions to the Democratic governor. Blagojevich is not charged with any wrongdoing.

All true.

Everybody knows by now that Blagojevich can be a vindictive sonofagun, so I’ll bet they get a lot of responses.

* In a somewhat related development…

Fairfield High School Supt. David Savage reports that the State of Illinois plans to hold up distribution of the last two state aid payments so that the money will fall into the next fiscal year. The shortfall will cause the district to fall into the red this fiscal year by as much as $120,000.

This involves hundreds of millions of dollars, but it’s mostly an accounting move by the state. Move distributions that were supposed to out in late June (current fiscal year) to July (next fiscal year).

However, it irritates schools because if the state never catches up, the net result is a cut in school funding.

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Greenberg’s campaign is a mess; Plus, Tribune whacks Halvorson

Friday, Apr 18, 2008 - Posted by Rich Miller

* More bad news for Republicans…

Coming off a big primary win and comparatively small fund-raising report, Republican challenger Steve Greenberg finds himself without a campaign manager in the race to unseat U.S. Rep. Melissa Bean in the 8th District.

Brad Goodman left the campaign’s top staff position this week, and Greenberg said it will be “a few months” before he names an official replacement to lead the general election effort.

A few months? Wow.

Greenberg’s latest fundraising report showed he had just $5,000 in cash on hand. Bean had $1.4 million.

It’s not like he has much of a chance against Melissa Bean, but this is ridiculous.

Greenberg insisted the numbers in his latest FEC report and the staffing change aren’t that important.

“The election isn’t won in April. The election is won in November,” he said.

The election isn’t won if you have a campaign like that.

* Meanwhile, in another congressional race, the Tribune socked it to Debbie Halvorson for, um, supporting the Tribune’s position…

Senate Majority Leader Debbie Halvorson (D-Crete), who’s hoping to succeed Republican Jerry Weller in Congress, told the Tribune she was ready to vote [in committee] to send the [recall proposal] to the full Senate. […]

But there was no committee vote. Bad move: If Halvorson and Silverstein don’t see to it that Illinoisans get a November vote on a recall amendment, they risk the kind of blowback that would spare them from having to measure for drapes on Capitol Hill.[…]

Ms. Halvorson, Mr. Silverstein, if your timidity deprives citizens of a vote on a recall amendment, you’re going to hear questions about that again and again. People who don’t know you very well will weigh your answers and decide whether you have what a job in Congress demands.

In a way, this is a crock. The sponsor controls the bill, and the sponsor did not want to move the constitutional amendment to the floor.

However, not mentioned by the Tribune is that Halvorson’s Rules Committee has refused a request by Rep. Jack Franks to change sponsorship. In the past, those requests were often granted. No longer. Senate bill-jacking has become a common occurrence these days, upheld by Halvorson’s Rules Committee.

* A couple more congressional stories…

* Senate OKs local control of 3rd airport

* Callahan wants to cut federal gas tax in half

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Trib recuses itself, but timing is questionable

Friday, Apr 18, 2008 - Posted by Rich Miller

* Sometimes, the big guys can surprise you. Take, for instance, today’s Chicago Tribune editorial about the potential sale of Wrigley Field to the state.

I had figured that Mother Tribune would go all medieval on Illinois legislators in order to force them to approve the sale, just like they did with lights at Wrigley Field. Back then, the editorial page labeled recalcitrant aldermen ‘’boneheads'’ and ‘’political bums” for refusing to go along with the program.

Today was different, though. Here’s part of the editorial…

Neither the Cell nor Soldier Field was a matter of magnitude to Tribune Co. and its thousands of employees.

By contrast, the potential public purchase of Wrigley Field is.

In this case, we haven’t found a way to work around the financial implications for ourselves of such a deal, or to divorce ourselves from them. Hence, our recusal.

* Then again, this news broke yesterday…

In an about-face, Tribune Co. CEO Sam Zell said he may end up selling the Cubs and Wrigley Field as a package, despite months of negotiations to split the assets in a bid to maximize his take from the deal.

If a politician had waited and waited until making a decision, then finally made one when it might very well be moot, he’d probably be ridiculed by the Trib. So, I guess the attaboy shouldn’t be all that intense.

Then again, this has to be welcomed news for legislators who worried that the ivory towered paper was going to slam them every day about the sale.

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A laugh riot

Friday, Apr 18, 2008 - Posted by Rich Miller

* The governor obviously didn’t want to answer questions yesterday…

Gov. Rod Blagojevich tried a new tactic Thursday afternoon when asked by reporters about testimony at a federal corruption trial that he offered to trade state business for national fund-raising assistance: he summoned schoolchildren and tourists.

“Kids, where are you when … I need you,” said Blagojevich, laughing and motioning to the bright yellow-shirted children to gather around him outside of his Capitol office. “Come on over. Come visit. Come on over.” […]

Asked to explain his approach to campaign fundraising, Blagojevich kept turning to children and other visitors saying, “How you been? How are you? Hi. How you guys? How are you? How you guys doing? […]

Pressed on whether he denied what [Rezko prosecution witness Joe Cari] said on the witness stand, Blagojevich said: “No such conversations took place—like that. Let me say it again: No such conversations like that took place.”

Listen to the audio by clicking here.

[Photos via OneMan, who was in Springfield this week and was invited into the govenror’s office after the presser with his daughter, Morgan.]

* The governor had just left a meeting with some of the legislative leaders and Denny Hastert about a capital plan. Hastert had this to say…

“Our next step is to look at possible revenue sources,” said former U.S. House Speaker Dennis Hastert, who attended the meeting. Hastert and Southern Illinois University President Glenn Poshard were appointed by Blagojevich to bring lawmakers together on a construction program.

Hastert declined to discuss specific funding options, but said a gambling expansion bill passed by the Senate last year is “a good place to start.”

* Blagojevich claimed that everyone agrees they need to spend $25 billion, but, wait…

Rep. Barbara Flynn Currie, D-Chicago, said the $25 billion figure isn’t necessarily the bottom line. That will be determined by how much state money leaders agree to put into the program, she said.

* The governor wants to lease the state Lottery to pay for much of the capital spending plan…

Gov. Rod Blagojevich is launching his 2008 public relations campaign to convince lawmakers to lease the Illinois Lottery to a private contractor as a way to drum up billions in immediate revenue.

Yet there is still little indication that the proposal has the necessary support in the House, where the idea went nowhere last summer.

Blagojevich’s budget team pitched the idea Thursday in a conference call with the Tribune’s editorial board. The governor’s team said a lease arrangement could generate $7 billion in upfront cash to help pay for a capital construction program, which has been stalled in Springfield.

“Stalled” is a polite way of saying, “very nearly dead.” Why? Well, here’s just one reason…

Charles Hannon [testified today that] Rezko offered he and his wife, Fortunee Massuda, a quid pro quo involving Gov. Blagojevich’s controversial proposal to lease the Thompson Center. Rezko, who at the time owed the couple $7 million, offered to sign on Massuda as a consultant for whomever signed up to lease the State of Illinois Building — known as the Thompson Center.

And now he wants to lease the Lottery?

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Morning shorts

Friday, Apr 18, 2008 - Posted by Kevin Fanning

* Another $10 billion needed for projects, transit leaders warn

* You may, or may not, address the board now

* County Board Is Where the Pay Is

* Ex-alderman, ex-con, ex-Dem, Jones seeks political comeback

* New chief for city airports

* What Happened to the Washington Coalition?

* News: Scientific study seems to support use of medicinal marijuana

* Central Illinois resorts in the news

Despite the fact that it is owed more than $200,000 by the owners of the Eagle Creek Resort on Lake Shelbyville, the Shelby County Board wants the financially troubled resort to keep the doors open.

* Poverty is rising, but so is momentum to end it.

* 2008 Illinois Poverty Report

* Northfield officials stunned by state’s Willow Road widening plan

* Schoenberg Shows His Dem Clout in Northfield Dispute

…this week he stomped on a compromise that Northfield Village President John Birkenbine has been negotiating for several years and slammed a couple of extra lanes (with a cost of $4 million to state taxpayers) along Willow Road.

* Northfield mayor says state’s decision to widen Willow Road violates design rules

* Poll Results: Who Wants a New Constitution (and Why)?

* Illinois Senate advances ban on flavored cigarettes

* Making Legislators’ Votes Available Online

* Hearing reveals little on ag funds

* State Senate looking to guard young health

* Illinois set to offer $1.2 B of notes

* State officials say Asian longhorned beetle has been eradicated from Illinois

* Illinois tries taking bite out of housing crunch

DeShana Forney, executive director of the Illinois Housing Development Authority, announced Wednesday that the Illinois Homeowner Assistance Initiative has a pool of $310 million, up from $200 million when the program was created in February.

* Mr. Atheist needs to apologize now

* Boehner Urges Probe Of Hurckes

* Mayor Daley defends Obama, vouching for William Ayers

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax

Friday, Apr 18, 2008 - Posted by Rich Miller

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Morning video - Earthquake edition

Friday, Apr 18, 2008 - Posted by Rich Miller

* This morning’s earthquake scared the daylights outta me. So here’s a song to remember it by…

Thanks to Jim Leach and WMAY for filling me in about what was going on.

Discuss your experiences below.

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