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Wednesday, Feb 4, 2009 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Deficit info, Hynes presser audio; Meeks on Blagojevich (Use all caps in password)

Wednesday, Feb 4, 2009 - Posted by Rich Miller

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This just in…

Wednesday, Feb 4, 2009 - Posted by Rich Miller

* 11:25 am - From Lee Newspapers

Comptroller Dan Hynes says Illinois faces a $9 billion budget deficit. After a federal stimulus, it could go down to $6 billion.

Holy moly.

* 11:40 am - We have some more detail. That $6 billion figure is for the coming fiscal year, 2010, and it assumes no growth in any current state spending.

* 11:59 am - From the Sun-Times

Illinois government is on pace to be a record $9 billion in the red by the end of the state’s budget year June 30, Illinois Comptroller Dan Hynes says.

“Faced with a record $8.95 billion deficit for 2010, Illinois now stands at the precipice of the worst financial crisis in the state’s history,” a report Hynes put out this morning says. “If the recession is prolonged beyond this summer and/or revenues erode further, the state’s fiscal situation will deteriorate even more than the bleak assessment presented here.”

* 12:01 pm - Hynes says we’ll have a “carry over debt” from this fiscal year of $4.28 billion, plus $1.5 billion for spending that has not yet been appropriated.

* 12:11 pm - AP

Hynes says Illinois will carry a deficit of more than $4 billion into the budget year that begins July 1. Then the new budget year will see its own, even larger gap.

The figures assume officials don’t increase spending except for Medicaid and pension costs that are set by law. If spending goes up elsewhere, the deficit would go up, too.

Hynes says economic-stimulus money from the federal government could reduce the gap. Even if that money comes through, state officials will still have to figure out how to fill a $6 billion hole.

  65 Comments      


Question of the day

Wednesday, Feb 4, 2009 - Posted by Rich Miller

* Which one thing would you cut to achieve a billion dollars in budget savings?

* Medicaid reimbursements to private and not-for-profit providers
* Medicaid benefits to participants
* K-12 education (state portion of state/federal/local funding mix)
* Required state payments to the pension funds
* State employee payroll

Make sure to explain why you think this is the best possible cut, both politically and fiscally.

And, keep these two things in mind: 1) This is a billion dollars we’re talking about here, so it ain’t peanuts - the cut you propose will do significant damage; and 2) That’s only the beginning of the cuts the state will probably need to make if taxes are not increased substantially, which is why I’ve only given you one choice.

No cop-outs, please. Choose only from this list and choose only one item.

…Adding… For those of you who think this is an improbable question because the pain will be spread around, I would point you to the update above: “Comptroller Dan Hynes says Illinois faces a $9 billion budget deficit. After a federal stimulus, it could go down to $6 billion.”

In reality, the $1 billion cut is only a small beginning. You could cut a billion from everything above and still not balance the budget. So, I’m actually giving you an easy out here.

  152 Comments      


Quinn launches ambitious agenda with a folksy charm

Wednesday, Feb 4, 2009 - Posted by Rich Miller

* This timeline may be overly ambitious, but it’s good to see he’s setting a deadline for himself…

In office less than a week, Gov. Patrick Quinn is setting April 3 as his goal to enact a long-delayed capital bill to fund Illinois road projects and other improvements.

“It will give us a target to shoot at and keep an urgent approach,” he said after a 50-minute meeting Tuesday in Washington, D.C., with members of Congress from Illinois. […]

The April 3 date marks the start of a two-week Easter recess for the Illinois General Assembly. A capital bill was expected to be a high priority for the new governor, but not as urgent as ethics reform and the state’s $4-billion deficit.

“We will (pass a capital bill),” said Mr. Quinn, adding that after consulting with legislators, he will present details on the bill to the public on March 18 when he unveils next year’s state budget. He declined to say how big the bill would be or whether it would be financed with tax increases, increased borrowing or a combination of the two.

It will be “pretty big,” he said. “The more we can get, the better.”

* Paying for a “pretty big” capital plan will not be easy, however. There’s no question that we need the plan, but funding it will be excruciatingly unpopular with a recesssion-weary populace

House Speaker Michael Madigan will support a proposal to raise the existing 19-cent-per-gallon motor fuel tax to 27 cents—a boost that could raise $500 million a year to fund bond payments on a $5.9 billion transportation repair plan, a Madigan spokesman said.

Senate President John Cullerton also told the Chicago Tribune’s editorial board that increased motor fuel taxes and higher vehicle fees should be considered “on the table” for what he called an Illinois “stimulus” package that would fund school construction as well as road and transit projects.

A spokesman for Gov. Pat Quinn said the governor is “keeping all options open as he works to get a clear idea of the state’s finances.” […]

Illinois’ current motor fuel tax rate has been unchanged since 1990.

* The Daily Herald, in typical newspaper style, editorializes that leaders need to make tough choices on the budget, but never suggests a single major choice

Accountability means our legislators will have to make some hard choices about where to cut state spending. And Quinn needs to show the leadership needed to make those hard choices.

Blah, blah, blah. Step up or shut up.

* Meanwhile, Quinn is showing a surprisingly deft touch so far

As he sat down in Durbin’s leadership office in the Capitol, Quinn gave his cell phone number to members of the [state’s congressional] delegation, saying, “In the past, I know it was hard for you to reach the governor.”

* And some folksy common sense

In marked contrast to the style of his predecessor, Illinois Gov. Pat Quinn took a United Airlines flight to the nation’s capital to discuss the effects of an economic stimulus plan.

Quinn, who took over last week following the impeachment and removal of Rod Blagojevich from office, flew coach rather than take the state plane, which Blagojevich had an affinity for.

* Also, Levi Moore takes a look at how Quinn might change Illinois government….

Quinn’s challenge is actually an opportunity for the Chicago Tech Community to help itself. Quinn created the Illinois Reform Commission. The commission is asking the public for suggestions as to how to clean-up Illinois government. Suggestions I have heard, include:

* Invalidating existing IT service and other technology-related Master Contracts;
* Pre-qualifying IT companies from a technical capability perspective;
* Creating an easily monitored web-site to preview procurement opportunities and review projects that are being implemented; and
* Overhauling the entire Illinois procurement system.

* And Democratic legislative leaders try to get out in front of the ethics issue

Leaders in the General Assembly are forming a committee to consider tighter ethics laws.

Senate President John Cullerton and House Speaker Michael Madigan say they’re filing a resolution to create a 16-member commission. […]

But the pair did not endorse more stringent rules on current practices, such as limits on campaign contributions, perhaps the top priority for government-reform groups. Illinois has no limit on the amount of money someone may donate to a politician. […]

The two leaders also directed their lawyers to meet with Gov. Pat Quinn’s new ethics commission to discuss legislation that could require disclosure of investigative reports of government corruption. They also would consider stronger lobbyist “revolving-door” laws and greater protection for whistleblowers.

* Related…

* Top Illinois lawmakers to push ethics reform

* Good-government reformers aim to seize the moment with campaign finance proposal

* Iowa seeks citizen input on state budget

* Go get the Medicaid money: a message to Gov. Quinn

* Update on State Budget Gaps: FY 2009 & FY 2010

* 4-H program faces budget problems

* DNR director hears cries of cronyism

* Attendance down 13 percent at Ill. historic sites

* New governor to take a methodical approach

* Quinn flies ‘economy class’ for trip to D.C.

* State’s new top dog has a watchdog history

* Gov. Quinn meets with Obama, lawmakers in D.C.

* Quinn meets with Obama at White House

* Rockford hopes Alpine patch job will hold

* Officials: Write Quinn letters to help save Pontiac prison

* Letter-writing effort planned to keep prison open

  36 Comments      


“I really wouldn’t give your troubles to a monkey on a rock”

Wednesday, Feb 4, 2009 - Posted by Rich Miller

* Perhaps the most satisfying moment of Rod Blagojevich’s appearance on David Letterman’s show last night was this

“But I’d like your listeners to know and everybody in Illinois and anyone else who’s listening that unlike those, I’ll be vindicated.” (some audience laughter) “I did nothing wrong.” (audience laughter)

The audience clearly saw him for what he really is. A lying clown.

* Another fine moment…

Dave: “Right now, other people will say, ‘Well, what he’s doing now, he’s working on the jury pool for the spring trial. He’s trying to plead his case, trying to prejudice a group of people so that it will be difficult to get an impartial jury for that trial. Anything?” (audience laughs)

Rod: “No, um - your audience obviously likes you, everything you say, they laugh at. And that wasn’t all that funny, with all due respect.”

Blagojevich was right. This isn’t funny. It’s shameful.

* Nice zinger…

Dave: “So, now, as I recall, there were 13 articles of impeachment leveled against you. So you’re telling me each one of those was a misunderstanding? Each one of those was something out of context?”

59-0. Pretty clear to the rest of us what happened there.

* More

Blagojevich also mentioned that federal authorities have “been scrutinizing Mayor [Richard] Daley,” a shout-out undoubtedly unwelcome at City Hall.

Hours earlier, Blagojevich said on NBC’s “Today Show” that he had been offered, but rejected, a “ghost payroller” deal to stay on as “an incapacitated governor” if he agreed not to fill the U.S. Senate seat vacated by President Barack Obama. He said he was given the opportunity to “keep my pay for two years, keep my security detail for two years.”

A spokesman for Gov. Pat Quinn said no such deal was offered. Senate President John Cullerton said he doesn’t “know what [Blagojevich] was talking about.” And a spokesman for House Speaker Michael Madigan said Blagojevich “has no connection to reality and hasn’t for years.”

* After the show…

“He threw a lot of stuff at me and I did the best I could to try to answer it. And his audience loves him and they’re very biased and pro-him,” Blagojevich said after the Letterman taping.

* Related…

* Dave Bakke: Vacant Lincoln Estates residences testament to Blagojevich’s failures

* Job prospects unclear for the ousted Blagojevich

* SJ-R Opinion: Blagojevich is ‘yesterday’s tomatoes’

* Blagojevich tells Letterman he’s misunderstood

* Ex-gov to Letterman: ‘Are you hiring?’

* CBS’ Letterman asks Blagojevich, “Why exactly are you here?” Show transcript.

* Blagojevich stays on the defensive

* Letterman just a guest on the Blago show

* A Top Ten for blabbing Blago

* Blagojevich: ‘The Truth Will Set Me Free’

* Blagojevich, the spoof, debuts in Chicago

* Rod Blagojevich vs. Crispin Glover

  52 Comments      


Morning Shorts

Wednesday, Feb 4, 2009 - Posted by Mike Murray

* ADDED: Lipinski talks Buy American provision with Lou Dobbs

* FutureGen tangled in stimulus packages

The proposed clean coal technology project reached the top of a House Republican list of “wasteful programs” in the economic stimulus bill now moving through Congress. Some House Republicans claim the plant proposed for construction west of Mattoon was defunded last year by the U.S. Department of Energy “because it said the project was inefficient,” according to a report on CNN.com.

The claim places the energy program with a $2 billion price tag on a long list of political pork projects, which President Barack Obama promised to avoid in the stimulus package.

* Casino proposal may go before Des Plaines plan commission in 6 months

* United reports lower January traffic

* Kraft Foods 4th-quarter profit falls

* Sara Lee posts 2Q loss due to write-down

* 14 want to take the 5th, one stands out

* Quigley slams GOP for failing to support more mass transit funding in stimulus bill

* US Rep. Tim Johnson — Gargantuan spending that won’t work

* DCCC Announces Families First Ad Campaign

* District 150 takes chance on stimulus funds

* In Chicago and elsewhere in Illinois, schools see an oversupply of teachers

* Illinois fails to retain good teachers

* Scott back as school board chief?

Sources said the mayor has decided to team Huberman with the politically-savvy Scott, who resigned in 2006 after five years as board president.

Scott would replace Rufus Williams, who has stepped on toes at the board and City Hall.

Scott is a consummate peacemaker who kept aldermen informed at every turn about decisions that impacted their local schools.

* Housing Preservation Strategy Report

* Hiring victims get tax forms

* Ethics board probing highway OT policies

* Cook’s stealth tax hike

* Sheriff: We can take over forest police

* Cook County sheriff offers to take over patrolling of forest preserves

* City Budget Cuts Effecting Speed Of Ticket Hearings

* Chicago’s ‘Bean’ damaged

Workmen today will begin buffing out graffiti scratched into Millennium Park’s famous bean-like sculpture, Cloud Gate - a defacement that infuriated Mayor Richard Daley.

Hurwitz said the repair work will be done by Hillside-based MTH Industries, which originally welded the stainless steel plates together for the $17 million sculpture

* Daley wants vandals to pay for Bean repair

* Feds say sex offender registries are unreliable, inaccurate

* How the Big Gulp Approach to News Makes Readers Scram

  5 Comments      


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

Wednesday, Feb 4, 2009 - Posted by Rich Miller

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Vallas to run for county board prez as Republican

Wednesday, Feb 4, 2009 - Posted by Rich Miller

* I didn’t think he’d pull the trigger, but he apparently will

Paul Vallas is ready to run again. “Cook County is broken, and I like fixing things that are broken.”

The speed-talking, reform-minded maverick who was CEO of Chicago Public Schools under Mayor Daley, then lost the 2002 gubernatorial primary to Rod Blagojevich by just 25,000 votes, went on to make a national name rescuing school districts in Philadelphia and New Orleans.

Now, he told the Chicago Sun-Times, he is coming home for good at the end of the year to run for president of the Cook County Board in 2010.

Not as a Democrat, which he has been all his life, but as a Republican.

Go read the whole thing. Interesting column by Marin.

  41 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Isabel’s afternoon roundup
* Governor Pritzker meets with the family of Sonya Massey (Updated)
* It’s just a bill
* Showcasing the Retailers Who Make Illinois Work
* Pritzker hasn’t received VP vetting materials from Harris, but doesn’t shut down speculations that he’s interested
* Open thread
* Isabel’s morning briefing
* Selected press releases (Live updates)
* Your moment of zen
* Yesterday's stories

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