* 2:14 pm - The House Republicans are claiming on the House floor that the House Democratic budget for next fiscal year has a $2 billion deficit - and they’re not even finished voting on the agency budgets. Listen or watch here.
* 2:19 pm - For some background, this is what happened earlier today…
The House voted 63-51 Wednesday for the main operations budget that would keep state government running, then planned to vote for a more expanded version.
But whether this proposal or something like it will become the state’s next budget remains far from clear.
That’s because Senate Democrats are preparing their own budget plan that could be more modest than what the House supports.
* 4:00 pm - The House Democratic budget deficit is up to $3.1 billion and rising as of now according to the House Republicans
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Question of the day
Wednesday, May 21, 2008 - Posted by Rich Miller
* This help wanted ad at CareerBuilder for a new press secretary for Gov. Rod Blagojevich has been making the rounds…
Position Responsibilities:
* Build and maintain relationships with members of the press
* Act as a spokesperson, proactively pitching stories and developing/delivering reaction to reporters’ inquiries
* Collaborate with Governor’s press staff and agency press officers to generate ideas and develop media strategies
* OneMan adds these…
* The ability to keep tabs on Rich Miller
* Know how to look up synonyms for unrelated and coincidence.
* Finally the ability to say “He isn’t public official A” with a straight face
* Chicagoist chimes in…
* Must maintain working knowledge of all Elvis and Hank Williams songs
* Must be skilled with hair spray
* Must be able to “forget” things or “misplace” information
* Must be able to never, ever, mention the name “Rezko”
Your turn.
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Another pension bond deal? Maybe
Wednesday, May 21, 2008 - Posted by Rich Miller
* The Tribune has the scoop…
Illinois Senate Democrats are looking hard at borrowing $16 billion, pumping the cash into the state employee pension systems and hoping the investments can beat the market—all as a way to ease budget pressures.
It’s an idea that so far has worked after Gov. Rod Blagojevich took a chance on a $10 billion bond package in 2003. He caught the markets at a terrifically low rate of just over 5 percent and the pension systems took their portion of the proceeds and mostly invested wisely.
Several senators emerged from the Senate Democratic caucus Tuesday saying the latest pension bond idea will emerge in the budget plan they hope to roll out soon. […]
But Sen. Susan Garrett (D-Lake Forest) said she is skeptical about voting for a $16 billion pension bond and the newly proposed $31 billion construction plan when a state operating budget remains unsettled.
* That won’t be easy to pass. The AP did a story on this idea earlier in the week…
Critics, including business groups and Republicans, say borrowing to pay off old debt, even if it’s at a lower interest rate, isn’t wise. It just puts off the problem.
They say there’s also too much risk in a pension bond. It only works if the invested proceeds from the bond get a better return than the interest rate on the amount borrowed, which could be 5 percent a year. In a shaky stock market, critics warn, nothing is guaranteed and the state’s pension debt could get even worse.
“This is a craps game, and you shouldn’t operate the state’s finances based on taking those kinds of risks,” said Eden Martin of the civic committee of the Commercial Club of Chicago.
* The Civic Federation had some harsh words about the idea in a recent report…
“Until Illinois political leaders dedicate themselves to putting the state’s fiscal house in order, Illinois taxpayers and the Civic Federation will not have confidence that any new revenue will be spent effectively,”
* If the plan is met with stiff opposition, it might be dumped like a hot potato…
“I don’t think there’s a will from any member to be down here this summer,” said Sen. Donne Trotter of Chicago, the budget point man for the Senate’s Democratic majority.
* More evidence of that apparent willingness to abandon ship and get out of town…
The House is expected to first push a “bare-bones budget” and follow up with spending expansions as agreement can be found.
Senators, however, say they don’t plan on entertaining more spending until there’s a deal on producing the needed dollars.
“You can’t order up the dinner and know that your Link card, the ATM card’s gonna bounce, MasterCard, whatever they (House members) think they have over there. We’re broke,” said state Sen. Rickey Hendon, a Chicago Democrat.
* But there’s also this…
.Blagojevich spokeswoman Rebecca Rausch said the governor is more focused on seeing a good budget that meets the right priorities than having something done by a specific date.
Except almost nobody really believes that they can pass a “good budget” this year, so why bother sticking around?
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No trust, no deal
Wednesday, May 21, 2008 - Posted by Rich Miller
* “Trust” is the word of the day….
Conceding that many state lawmakers just don’t trust Gov. Rod Blagojevich, two former congressmen Tuesday unveiled a $31 billion public-works package to be paid for by leasing part of the lottery, giving Chicago a casino and allowing slot machines at horse-racing tracks.
Former U.S. House Speaker Dennis Hastert, a suburban Republican, and former U.S. Rep. Glenn Poshard, a Downstate Democrat, delivered the Blagojevich-backed plan to lawmakers, who immediately greeted its chances with skepticism as they try to finish a state budget in the next 10 days.
* And…
But the two veteran political leaders — who have been Gov. Rod Blagojevich’s roving emissaries on the issue lately — acknowledged that legislative distrust of Blagojevich has hampered their effort. Their recommendations include “accountability provisions” to reassure legislators that the Democratic governor won’t break any agreements on how the money is supposed to be spent. […]
“Part of the problem is a trust factor, frankly, between the Legislature and the governor,” said Hastert, a Republican who is a former speaker of the U.S. House
* And…
Senate Minority Leader Frank Watson, R-Greenville, said the revenue ideas floated Tuesday are “iffy at best.” He said Republicans also are still leery of so-called accountability measures contained in the plan. Those measures were included to allay fears that Blagojevich might use the money for something other than construction projects or would only approve projects for his political allies.
* Watson added…
“We need a lockbox that Houdini can’t get out of.”
* As Watson pointed out, the trust factor isn’t the only problem here. There’s also the funding mechanisms…
To pay for the $31 billion package, proponents are counting on two ideas that have stalled in the legislature.
They hope to raise $10 billion by leasing a large portion of the lottery, with $7 billion going for construction and the rest for increased education spending.
The other hurdle is winning support for a huge gambling expansion that includes a land-based Chicago casino, a new riverboat casino, adding thousands of positions at existing boats and putting slot machines at racetracks. The plan also counts on taking advantage of the state’s surge in gas-tax revenues tied to higher prices at the pump.
* That last proposal came at somewhat of an inopportune time for the House Republicans, who held a press conference yesterday morning demanding that motorists be given a gasoline sales tax holiday this summer…
House Republicans are calling for a suspension of the Illinois sales tax on gasoline this summer.
Lawmakers claim the average family would save up to $60 over a four-month tax holiday. Truckers might save $1,000.
* Patterson put it well…
So, now those House Republicans face this choice: help local motorists, or get credit for big new construction projects with grand ribbon-cutting ceremonies.
But Patterson later bumped into a House GOP spokesperson who said: “We’re for capital.”
* That quote sums up the dire need for a capital plan…
Most Illinois political leaders in both parties agree a major program is necessary to rebuild deteriorating highways, bridges, schools and public transit. The failure to launch such a plan has endangered $9.3 billion in federal matching funds.
“We’re the fifth-largest state in the nation (and) we’ve been nine years without an investment in our infrastructure,” said Poshard, a former Democratic gubernatorial candidate and now president of Southern Illinois University at Carbondale. “We can’t compete (economically) if we don’t decide to invest.”
But without trust, it’s gonna be really tough to get this done.
* Meanwhile, even though Blagojevich has said that the capital plan and the budget are tied together, two top Senate Democrats had news for the guv…
Sen. Donne Trotter, D-Chicago, said lawmakers have to approve a budget before adjourning.
“We do not need to pass a capital bill to be out of here by June 1,” he said.
“A capital bill is separate. They are not tied together in any way,” agreed Senate Majority Leader Debbie Halvorson, D-Crete.
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In Rod they don’t trust
Tuesday, May 20, 2008 - Posted by Rich Miller
* The most important sentence in this story is the last line below…
The Illinois House could begin voting as early as Wednesday on the outlines of a bare-bones state budget. […]
Hannig offered few details about the proposal Monday, but said lawmakers will be given the opportunity to vote on a no-growth budget plan that essentially keeps state government operating when the new fiscal year kicks in July 1.
In a new twist, Hannig said lawmakers also will be then given the option of boosting spending on various programs. For example, lawmakers could vote to add up to $600 million in new funding for schools. […]
Action in the House, however, may be nothing more than a political maneuver.
The aspect of the House budget plan that allows members to tack on almost whatever they want to the spending proposal is pure politics. The rest, not so much. There are some useful things being done this week outside of the grandstanding.
* A long summer session is not favored by the Senate Dems this year…
I don’t think there’s a will from any member to be down here this summer,” said Sen. Donne Trotter of Chicago, the budget point man for the Senate’s Democratic majority.
That’s good news, but they’ll still have to deal with the governor…
Blagojevich sees a state budget and a major construction program as connected, because the construction bill would “relieve pressure on an operations budget. That remains our focus,” said spokeswoman Rebecca Rausch.
That’s pretty ominous if the guv sticks to his guns.
* I couldn’t have said this better myself…
Talks about a state capital building plan are still occurring in Springfield, although it’s hard to see much progress. […]
Rich Miller, who writes the political insider newsletter The Capital Fax, hit on the real issue recently.
It’s trust.
Few legislators trust Blagojevich to spend the money fairly and equitably. It’s hard to blame the legislators.
* Back to the Tribune’s story…
Blagojevich is not charged with a crime and has denied wrongdoing. But the confluence of the scandal and the growing disenchantment with him takes a toll on budget negotiations. […]
[Senate President Emil Jones] downplays a lack of trust.
“We’re talking about money,” he said. “In God we trust. It’s on our money.”
I’m not quite sure what that means, but whatever.
* Meanwhile…
The horse racing industry leaders are back at the state Capitol to plead for state assistance. This time they’re trying to convince lawmakers that if the state helps them, they can turn more profits and help fund a $20 billion infrastructure program for the entire state.
The argument is that horse racing in Illinois is losing horses, trainers, agribusiness, and lots of money tied to the industry to other states. Many of those states subsidize the industry and offer larger prizes for winning a race. Blagojevich signed a measure into law nearly two years ago that would have shaved 3 percent of the profits from the state’s casinos to support the ailing horse racing industry, but the measure immediately landed in court.
* Related…
* Proponents say slot machines at tracks would help racing industry, state
* Hastert, Poshard campaign for state roads
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Our courageous governor
Tuesday, May 20, 2008 - Posted by Rich Miller
* Gov. Blagojevich was on the West Side yesterday touting an apparent reduction in prison recidivism rates, but reporters wanted to ask him other questions…
When asked about the Rezko trial, Blagojevich has typically responded that he is not involved in the case and therefore it is not appropriate for him to talk about it.
But asked Monday afternoon if he was concerned that he might be the next target of investigators, Blagojevich answered, “As I’ve said before, I’m not going to answer stupid questions like that.”
The audience applauded the answer, but reporters pressed on…
The question about the federal investigation followed others about his woeful poll numbers and being booed at the Chicago Board of Trade as he rang the morning bell to open trading on Monday.
The audience hissed at reporters as they asked about these negative issues.
What a guy.
* Somewhat related…
* Corrections says convictions among parolees down
* Prison drug programs paying off, state says - Percentage of parolees arrested again way down
* Number Of Repeat Offenders Down
* Blagojevich: No more ’stupid questions’
* Politicians should take credit for all of their great ideas
* Worker says he was fired to protect governor
* IDOT’s proposal to move jobs goes on the clock
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Campaign roundup *** UPDATED x1 ***
Tuesday, May 20, 2008 - Posted by Rich Miller
* Republican congressional candidate Steve Greenberg has a new campaign manager…
Collin Corbett, who previously had served as a Greenberg field coordinator, now is running the candidate’s bid to topple two-term incumbent Rep. Melissa Bean in the 8th House District.
No offense to Corbett, but check this out…
A 22-year-old Wauconda resident, Corbett volunteered with other local GOP congressional campaigns before joining Greenberg’s team in October.
If that isn’t a good indication of how badly Greenberg’s campaign is going, and how little interest there is in DC, here’s more…
Greenberg’s campaign has been relatively low on cash. According to the most recent campaign disclosure reports available, the campaign had about $5,000 in the bank as of March 31, far less than Bean’s roughly $1.4 million total as of the same date.
Relatively low on cash? Relative to what?
* Meanwhile, in another campaign…
The Second City has become first in the nation for high gas prices, with consumers struggling as oil company profits soar, U.S. Sen. Dick Durbin (D-Ill.) said Monday.
“We’ve got to stop the price-gouging,'’ Durbin said.
And Durbin’s solution?
[Durbin] took credit for a new Federal Trade Commission probe into record fuel prices as he spoke before a BP station at Roosevelt and Wabash with regular gas selling for $4.25.
Ooooo. An FTC probe. Be still my heart.
* The Daily Herald lists a few reasons why gas prices are so high…
Analysts agree that global demand, particularly in China and India, is driving prices nationally, as are refinery capacity limits and speculation on the crude oil futures market.
The speculation is really driving the price in a big way. We can’t do much about China and India, but something could be done about speculators and capacity limits. Also, the just in time delivery system could be altered by requiring producers to have more fuel on hand. There are other good ideas out there as well, but all we’re gonna get from Durbin is an FTC probe. Hilarious.
* Of course, there is also the tax issue…
Illinois is one of only nine states to apply its basic sales tax to gasoline purchases. Most — including neighboring Iowa, Wisconsin, Missouri and Kentucky — do not.
Beyond that, Illinois, alone among Midwestern states, allows local units of government to add taxes to gasoline sales. Cook County, for instance, tacks on 6 cents per gallon, Chicago 5 cents. It all adds up.
No mention of that by our US Senator.
* Speaking of gas prices, the governor showed he was a bit out of touch…
BLAGOJEVICH: Price of gas is going to be about four-dollars a gallon…(crowd murmurs, ‘It is’)… See when you’re the governor you don’t fill your gas up.
*** UPDATE *** GOP Congressional candidate Martin Ozinga just announced his staff lineup…
Glen Bolger (Pollster), Partner, Public Opinion Strategies: Glen Bolger is one of the Republican Party’s leading political strategists and pollsters. Public Opinion Strategies has 20 U.S. Senators, eight governors, and more than 50 Members of Congress as clients. Roll Call newspaper, a newspaper that covers Capitol Hill, noted Glen “has quickly emerged as the pollster of choice for House and Senate Republicans.”
Jonathan Poe (Media Consultant), Partner, Anthem Media: National political analyst Charlie Cook has called Jonathan Poe “one of the most talented operatives ever to work at a House or Senate committee.” Poe spent the past three election cycles in leadership roles at the National Republican Congressional Committee (NRCC), serving as Deputy Political Director during the 2006 cycle, National Field Director during the 2004 cycle and Field Representative during the 2002 cycle.
Aaron Leibowitz (Direct Mail Consultant), Partner, Targeted Creative Communications: Aaron’s professional experience in politics includes serving as Executive Director of the Republican Party of Virginia, an Account Executive for Karl Rove + Company, Senior Associate at Carlyle Gregory and Associates, and managing or working on congressional campaigns in the Midwest and South. Aaron was selected as a “Rising Star” by Campaigns & Elections Magazine in 2004 for his important role in so many targeted, critical races.
Joe Rachinsky (PAC Fundraiser), Partner, The Catalyst Group: Joe Rachinsky operated Rachinsky Consulting for two years, consulting on several top congressional races, and with the NRCC on their convention activities. Earlier he served as the Finance Director of the NRCC under Chairmen Tom Reynolds and Tom Davis. Rachinsky has also served as the PAC director of a major pro-business PAC, director of the NRCC’s PAC donor programs, and has worked in the field on several congressional campaigns.
Laura Anderson (Illinois Fundraiser), CEO, Winning Systems, Inc.: Laura spent the first 16 years of her career working with the Illinois Legislature in various policy and management positions. She later became Chief of Staff for Lee Daniels, former Speaker and Leader in the Illinois House of Representatives. In these years she was involved in the state budgeting process and legislative affairs, including issues relating to human services. Laura most recently served as the Illinois finance consultant to Rudy Giuliani’s presidential campaign.
Andy Seré (Campaign Manager): Ozinga’s bid marks the fifth campaign Seré has managed, including three targeted state legislative races in Texas and Virginia. Seré also managed the GOP primary campaign of Tim Baldermann, which culminated in a convincing 62% victory among a 3-way field. He is a graduate of the Republican National Committee’s Campaign Management College.
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Morning Shorts
Tuesday, May 20, 2008 - Posted by Kevin Fanning
* Kadner: Illinois can vote for con-con in November…
If you want to shake up the power brokers in Springfield, this may be the best way to do it.
* Con Con Considerations: Compensation
* Still deliberating on Rezko
* Report criticizes GOP power broker over hotel deal
* Former Hotel Owners May Have Abused State Loans
* Illinois treasurer denounces ‘cozy’ hotel
* Chicago City Council Committees Evade The Law, Experts Say
* Children’s Museum vote unlikely Tuesday
* Michigan Ave. ‘wall’ on danger list
* Daley Contends Crime Numbers
* City wants its cut from Stubhub, eBay tickets
In January, 2006, Rolling Stones fans coughed up as much as $1,500-a-ticket to watch Mick Jagger strut his stuff at the United Center.
They should have paid the city’s 8 percent amusement tax — $120 for a $1,500 — just like everyone else who buys from a broker. But if they bought their tickets on the Internet, Chicago taxpayers got zilch.
* Cronyism is the star of Stroger’s hiring show
* Hoffman Estates chief critical of officer’s Stroger snub
* Cook County state’s attorney foes go back and forth on corruption
* Oh, shoot!
So, what does an alderman do when he finds himself in violation of the law? He writes a new law. Mell has quietly introduced an ordinance that would reopen gun registration in Chicago and create a one-month amnesty for himself and other gun owners in the same predicament.
* Hearing on public defender’s job postponed
* Stroger drops effort to fire public defender
* Politics and public defenders
* Deal keeps Cook Co. public defender on the job
Burnette will keep his job after the two reached some sort of agreement Monday that will avoid a public hearing today before the Cook County Board on Burnette’s dismissal, said Cook County Commissioner Larry Suffredin, who said he had spoken to Burnette Monday.
* Larry Walsh pleads guilty to DUI
* State issuing trail grants
* Special election has Kane Co. elections dept. in $680,000 hole
* Law would help track abusive teachers
* House OKs creation of Lincoln anniversary license plates
* White: Recommendations to cut distracted driving should save lives
* Obama opposes rail deal
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