* Yesterday’s Tony Rezko trial wasn’t great for Gov. Rod Blagojevich. Rezko and Stu Levine were allegedly trying to shake down Tom Rosenberg for a big contribution to the governor’s campaign or a large finder’s fee. Rosenberg then flipped out and threatened to go to the authorities when he became convinced that his investment allocation deal at the Teachers Retirement System was being held up for nefarious purposes…

Chicago businessman Tom Rosenberg became furious after a $220 million allocation from the state teachers pension fund for his investment firm had stalled, millionaire attorney Stuart P. Levine told the court.

Rosenberg threatened to complain to federal investigators that he suspected Rezko and another Blagojevich fundraiser, Christopher Kelly, were engaged in corruption at the state teachers pension board. […]

“[Rezko] indicated to me that he had made the governor aware of the situation” and what Rosenberg had said, Levine said. He said Rezko indicated that Blagojevich agreed Rosenberg should be calmed and that while he should get the $220 million allocation for his investment firm it would be “the last thing that Mr. Rosenberg should get from the state.”

He quoted Rezko as saying Blagojevich indicated “he doesn’t care what happens to Mr. Rosenberg - that he feels he owes Mr. Rosenberg nothing.”

* And we don’t have to rely solely on admitted drug-lover Stu Levine for this one, either…

Political insider William Cellini also spoke to Rezko about the Rosenberg solution and, in a phone conversation with Levine that was secretly recorded by federal agents, reported hearing the same thing from Rezko about Blagojevich’s knowledge and approval.

“Did he tell you, too, that the big guy said Rosenberg means nothing to him?” Cellini asked on the call played in court Wednesday. Levine explained to jurors that “the big guy” was Blagojevich and that Cellini’s comments meant that the governor did not feel that he owed the uncooperative Rosenberg anything.

* If you read carefully, there is no explicit statement that the governor knew about the alleged shakedown, which Rezko’s lawyers have claimed that Levine concocted himself. Reading only what was actually said, Blagojevich only allegedly knew that Rosenberg was freaking out and making threats. But it’s definitely implied that he knew more, which is why the Sun-Times put the story on the front page with this lede…

Despite Gov. Blagojevich’s repeated denials that he knew anything about alleged pay-to-play schemes, “the big guy” was told about one plan to squeeze campaign contributions from a firm seeking state business, according to bombshell testimony Wednesday at Tony Rezko’s corruption trial.

* Meanwhile…

A measure allowing voters to dump the governor and other statewide officeholders through California-style recall petitions advanced Wednesday in a key test vote in the House, though its approval is far from certain.

Proponents said the bill was prompted by their dissatisfaction with Gov. Rod Blagojevich, who has been criticized by Republicans and his fellow Democrats for what they say is his autocratic and aloof style of governance. But they argued the measure also is good public policy already embraced by 18 other states, including California, which replaced an unpopular governor with action movie star Arnold Schwarzenegger in 2003.

“I would not have filed it but for the dismal performance of this governor,” said Rep. Jack Franks (D-Woodstock), the bill’s sponsor. “Our state is dysfunctional. . . . We are stuck at an absolute impasse because the governor refuses to lead and refuses, frankly, to show up for work. He won’t govern, and he can’t govern.”

The House adopted an amendment to the bill on an 80-25 vote, which Franks said indicates it likely will be approved by a wide margin when he tries to send it to the Senate next week. The favorable reception in the House also underscores Blagojevich’s running feud with Speaker Michael Madigan (D-Chicago), who voted for the amendment.