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Thursday, Mar 5, 2009 - Posted by Rich Miller

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Question of the day

Thursday, Mar 5, 2009 - Posted by Rich Miller

* The setup

It’s virtually certain that a Hannig will continue to represent the 98th House District in the Illinois General Assembly.

Illinois Secretary of Transportation Gary Hannig of Litchfield started his new job this week after being in the House since 1979. Democratic county chairmen in Montgomery and Christian counties both say they favor Hannig’s wife, Elizabeth “Betsy” Hannig, for the job.

* The Question: Should the General Assembly pass a bill to forbid relatives of the former incumbent from being appointed to any vacant legislative seat? Explain fully, and try to keep in mind that some capable people have been appointed that way.

Also, I’m not asking whether a special election should be held. I’m only asking about this limitation.

And don’t attack Mrs. Hannig, please. This isn’t about her, per se. It’s about the issue. Thanks.

  70 Comments      


Medical marijuana clears House committee

Thursday, Mar 5, 2009 - Posted by Rich Miller

* For the first time ever, a House committee has sent a medical marijuana bill to the floor

Representative Lou Lang says his bill would help people deal with cancer, AIDS and other diseases. The Skokie Democrat says patients would be allowed to own up to seven marijuana plants each.

LANG: The idea here is to let people let people have what they need to relieve their pain and the severe nausea from chemotherapy, but we don’t want people to have the ability to do the wrong thing with these marijuana plants.

The bill passed committee 4-3 yesterday.

* Synopsis

Creates the Compassionate Use of Medical Cannabis Pilot Program Act. Provides that when a person has been diagnosed by a physician as having a debilitating medical condition, the person and the person’s primary caregiver may be issued a registry identification card by the Department of Public Health that permits the person or the person’s primary caregiver to legally possess no more than 7 dried cannabis plants and 2 ounces of dried usable cannabis. Amends the Cannabis Control Act to make conforming changes. Provides that the provisions of the Act are severable. Provides that the Act is repealed 3 years after its effective date. Repeals the research provisions of the Cannabis Control Act. Effective immediately.

* The opposition

But Rep. Patricia Bellock, R-Hinsdale, said the bill raises serious questions. Will it be misused by people who don’t really have a medical need for marijuana? Would it open the door to outright legalization of pot use in Illinois?

“It is the No. 1 drug that introduces young people to other drugs,” said Bellock, who voted against the measure in the Human Services Committee.

I thought the number one “gateway drug” was alcohol.

More opposition

David Jocson, statewide drug enforcement coordinator with the Illinois State Police, opposed the bill because he said marijuana is not an FDA-approved medication and because allowing people using cannabis for medicinal purposes would make it easier for others to obtain.

* Lou

“This is a very controlled bill. It doesn’t allow anyone to have more than seven plants,” Lang said. “Second, we have to be able to trust the medical community.” He said there is little outcry when doctors prescribe massive amounts of morphine, Vicodin or codeine to alleviate pain.

“It’s only when you start talking about cannabis that people start talking about that, because they’re looking for an excuse to be against the bill,” he said.

* Context

Thirteen states already have medical marijuana laws that preclude a criminal conviction for use, according to the Marijuana Policy Project… Technically, Illinois authorized medical marijuana in 1978. But implementation was left to the Public Health Department and it never took action, so the law has been in limbo.

* The future

Similar legislation was approved by a state Senate committee last year, but the sponsor never found enough support to call it for a vote. That sponsor, John Cullerton, is now Senate president, so the latest proposal should have an influential supporter if it ever reaches the Senate.

* Irony

A Springfield man’s “medical marijuana club” was raided Wednesday night, less than 14 hours after he announced the club to the news media.

Springfield police raided a home in the 1100 block of North Third Street about 7 p.m. Wednesday and arrested Scott Carriere, 40, according to Deputy Chief Clay Dowis.

Carriere will be charged in connection with growing several marijuana plants inside the house, Dowis said, although police did not indicate how much was recovered.

Carriere’s e-mail to the news media…

“I have opened a medical marijuana club in Springfield. I just wanted you to know. It is currently being run out of my residence. The address is (he gave an address in the 1100 block of North Third Street). I am accepting customers and suppliers. Thank you.

“P.S. I have filed the paperwork at the courthouse under my name and address, the name of the business is Medical Marijuana Compassionate caregivers Club.”

Thoughts?

* Related…

* House panel approves medical marijuana

* House committee OKs use of medical marijuana

  76 Comments      


Special elections by mail?

Thursday, Mar 5, 2009 - Posted by Rich Miller

* I’m not sure what I think about this

Chicago and Cook County election officials will ask the state Legislature to allow them to conduct future special elections by mail to save money and increase voter participation.

Even if only 10 percent to 18 percent of the voters are going to turn out for an election, officials have to have enough ballots and staff for a 100 percent turnout.

That means the City of Chicago spent $1.75 million on Tuesday’s special election, or about $33 per vote. Cook County Clerk David Orr spent about $165,000 on Tuesday’s election, or about $30 per vote, he said.

Wow. That was a huge cost per vote.

* More

Under the proposal, already used in the states of Washington and Oregon, secured drop-off boxes are set up in each neighborhood if voters do not want to send in ballots by mail. The board would also have the option of keeping early voting centers open.

Such a system is feasible, but implementing it would be up to the Illinois General Assembly, rather than the state board, said Ken Menzel, an elections specialist with the Illinois State Board of Elections.

State Rep. Elaine, Nekritz, D-Des Plaines, chairman of the Illinois House Elections Committee, said she could not comment on the proposal before seeing it, but felt the committee would be willing to consider it.

“Anything that can save money and increase voter turnout is worth looking at,” Nekritz said.

What do you think of this idea?

* Related…

* Chicago board wants mail-in special elections

* Chicago Board of Elections Wants Mail-in Voting for Special Elections

* Cook County Clerk on Board with Mail-in Voting Proposal

  27 Comments      


Trib wants a revolution

Thursday, Mar 5, 2009 - Posted by Rich Miller

* The Tribune has proclaimed next year the “Revolution of 2010” in the wake of Mike Quigley’s primary victory this week…

What if Tuesday’s treacherous rebellion spreads?

Quigley won Tuesday’s primary with not a lot of money, no help from ward bosses and no endorsements from the public employee unions that have a chokehold on so many of Chicago’s Democratic politicians.

This was, though, the first chance voters have had to express themselves since Rod Blagojevich imploded and a bevy of his fellow Democrats—Sen. Dick Durbin, Gov. Pat Quinn, Illinois House Speaker Michael Madigan and Senate President John Cullerton—ran off a cliff together. Maybe it will occur to this crowd that, by blatantly reneging on their earlier support for a special election to fill Obama’s Senate seat, they tried to push around Illinois voters once too often. […]

The comedy du jour was hearing machine pols try to explain away Quigley’s win by noting that voter turnout in the special primary was light. Wait a minute: Those are the same pols who usually crow that light turnout helps their candidates—and disadvantages reformers such as Quigley who don’t have big ward organizations or labor armies.

Look, it was undeniably an impressive win and there’s a good argument to be made that voters rejected the Democratic organization, since about two-thirds of them cast their lot with candidates who weren’t directly affiliated with the Machine. But, let’s not get completely carried away with ourselves yet. This may very well spread, and it will definitely have an impact on short-term politics, but Quigley did score just 22 percent of the vote on Tuesday.

Also, if you’re gonna trumpet a coming revolution, perhaps you should first check state laws…

Committeemen Tom Tunney (44th), Tom Sharpe (46th) and Michele Smith (43rd), the three of you control the lion’s share of the weighted vote of committeemen. Together, you can install a reformer here. Patrick O’Connor (40th) and Ira Silverstein (50th), Democratic voters furious at party bosses will be watching how you and the other committeemen fill Quigley’s seat.

Um, here’s the pertinent state statute

[Oops. I stand corrected. The Trib is right. Sorry about that. And sorry about not getting to this sooner. Was away from the computer.]

I’m hearing that Randy Barnette, the 39th Ward Democratic committeeman who supported Pat O’Connor in the congressional race, is expressing early interest in the seat.

* Meanwhile, speaking of the county board

Meet Cook County Commissioner “Tweetie.” That’s the handle outspoken Republican Tony Peraica uses in posting his live play-by-play of County Board meetings on Twitter, the online micro-blog that’s all the rage.

Last month, Peraica started posting short messages — called “tweets” — during board meetings about everything from contract votes and political bickering to his opinions and wisecracks in 140 characters or less. […]

During Wednesday’s County Board meeting, Peraica posted 15 tweets, including updates on major votes, mild self-promotion and a jab at Commissioner Mike Quigley, who won the 5th Congressional District Democratic primary the night before. […]

County Board President Todd Stroger said Peraica should probably pay closer attention to what’s going on during meetings rather than “twittering his thumbs.”

“I think it’s strange,” Stroger said. “It doesn’t sound kosher. He probably shouldn’t be typing while we’re doing business. Maybe that’s why he can’t remember how he voted on things two weeks ago.”

* Related…

* Stroger cool to Quigley win

* Could Quigley’s win be Stroger’s as well?

* Why Quigley beat the Ward Bosses

* Quigley win a promising sign

* Likely Rahm successor is no insider

* Politico: The Dover Group, which has been consulting with Quigley on fundraising and strategy, is also planning a March fundraiser in Washington

* Press release: Illinois Green Party Congratulates Matt Reichel Primary Victory

  59 Comments      


Morning Shorts

Thursday, Mar 5, 2009 - Posted by Mike Murray

* 3 Sun-Times staffers win national awards

* Top cop in contempt

A federal judge found Chicago Police Supt. Jody Weis in contempt of court Wednesday and set a Monday deadline for him to release the names of officers who have at least five citizen complaints filed against them since 2000.

Weis says handing over the thousands of names would “compromise officers’ performance, threaten safety, reduce morale and improperly impugn many officers’ otherwise well-deserved good reputations.”

* Jody Weis in Contempt of Court

* Mayor Richard Daley and wife flew aboard private jet to Singapore in 2006

Plane was provided by student loan charity with ties to mayor’s wife

* City hiring called corrupt in Chicago fraud trial

“The hiring and promotion process at City Hall was rigged — it was corrupt,” Assistant U.S. Attorney Steve Grimes said in the government’s opening statement.

* Hiring trial ties HDO work, city jobs

Al Sanchez, the city’s former Streets and Sanitation commissioner, lobbied top aides to Mayor Richard Daley to ensure that members of Sanchez’s political organization moved to the front of the line for city jobs, a former department official testified Wednesday.

Jack Drumgould, personnel director under Sanchez, testified at the first day of Sanchez’s fraud trial that Sanchez gave him names of Hispanic Democratic Organization members whom he wanted hired. Drumgould said he in turn took the names to the mayor’s Office of Intergovernmental Affairs. Other political groups and labor unions were clamoring for their share of the jobs pie, he said.

Qualifications and performance in interviews “were totally non-relevant,” Drumgould told jurors.

* Fast Eddie’s past ties to a crooked judge

Former Cook County Judge George J.W. Smith pleaded guilty and went to prison in 2002 while keeping his mouth shut about allegations he’d paid a certain unnamed political figure $30,000 to buy his seat on the bench.

Now the 63-year-old Smith wants his law license reinstated, and in the process, he’s disclosed an interesting piece of information you can read here first:

Around the time the judge went to prison, his wife Jolanta went on the payroll of Fast Eddie Vrdolyak, the man long suspected of being on the other end of that $30,000.

* Fast Eddie judge followed letter of the law

* Chicago archdiocese’s sex-abuse tab: $15.8 million in ‘08

The Roman Catholic Archdiocese of Chicago paid more than $15.8 million in legal settlements related to sexual abuse last year, amounting to $80.2 million in claims for the decade, according to the annual report.

* Chicago Archdiocese pays $35.5M in abuse claims

The Archdiocese of Chicago has paid nearly $35.5 million in claims to the victims of sexual abuse by priests since June 2007.

* Chicago Archdiocese paid $100M in sex abuse claims: Church report

Sex abuse claims have cost the Catholic Archdiocese of Chicago almost $100 million this decade, a church financial report shows.

* Chicago 6th on green-cities list

* Budget gap pits city against suburbs

The suburban bus side of Pace will be able to weather the storm this year, but a gap of about $24 million is projected for paratransit, a transport service for disabled people who cannot use fixed routes to reach their destinations mandated as part of the Americans with Disabilities Act.

Pace Director Frank Mitchell, who represents Will County, said shortfalls in paratransit should not negatively affect bus operations in the suburbs. He noted that the majority of paratransit riders are from Chicago.

* Illinois tax cap yokes schools in Chicago’s southwest suburbs

With inflation near zero, state formula leaves districts scrambling to trim budgets

In 2008, the annual bump in the rate was an unprecedented 0.1 percent. That means most taxpayers can expect only slight increases in their 2009 tax bills, which are paid in 2010.

But it also means that many school districts and other government agencies will see only tiny increases in the property-tax revenues they will collect next year. And that has sent shock waves around the state, as school districts scramble to adjust their budgets and plan for cuts as early as next school year.

With tax referendum measures unlikely to succeed in the current recession, suburban districts are moving to eliminate everything from staff to band programs and sports teams as they try to cover teacher salaries and other costs that are going up by far greater than 0.1 percent.

* UIC to Close Clinic for Low-Income Latinas

The University of Illinois at Chicago says it’s closing a medical clinic geared for low-income women in a mostly Mexican neighborhood. But a community group is fighting to keep the facility open.

* Cook County assessor cuts 5 suburban offices

Five suburban assessor’s offices will close and the workers will be sent downtown because of budget cuts, Cook County Assessor James Houlihan said Wednesday.

Last month, the County Board approved a $2.9 billion compromise spending plan that imposed a 4 percent cut on most offices, including the assessor’s.

*CN settles suit with West Chicago

* Chicago Heights considers wind farm on old landfill

The city hopes it could make money from the wind farm by selling the energy produced to ComEd, hopefully generating $3 million to $4 million, Sabo said.

* Grants can help pay utility bills

Up to 10,000 Peoria County residents may have benefited from a state energy assistance program when its fiscal year ends this summer.

The Low Income Home Energy Assistance Program provides residents with a one-time grant to help pay utility costs.

Administered by the Peoria Citizens Committee for Economic Opportunity, the aid program is funded by the U.S. Department of Health and Human Services, the Department of Energy and the state of Illinois.

* Trustee Candidate’s Past Includes Bombing, Battery Convictions

* Dig out the wallet for a local stimulus

We should rethink that strategy, a group of local experts and residents told Daily Herald reporter Anna Marie Kukec this week. Instead, they advise us to spend wisely and spend locally.

* ‘Gentlemen’ scarf cozy dogs for good cause

* Thirty-five days without a Lt. Gov. Have you noticed?

Sliding Gov. Pat Quinn up the food chain illuminated one budget-saving option for state taxpayers: Eliminate the office of lieutenant governor.

Money? Savings of at at least $2.6 million.

Personnel? State government downsized by about30 employees.

Drawbacks? None.

* Pontiac mayor: Quinn will decide on prison soon

* Mayor expects decision on prison soon

Although the mayor of Pontiac didn’t get the meeting with Gov. Pat Quinn he was seeking, he learned a decision will be made soon on the future of Pontiac Correctional Center.

Mayor Scott McCoy was in Springfield on Wednesday seeking a meeting with Quinn in order to tell him Pontiac is being devastated by the threat of losing the prison and its 500-plus jobs.

* State expands holdings around Volo Bog

Illinois officials have purchased 32 acres in northwest Lake County that they say contain one the state’s natural wonders: a bog.

The Illinois Department of Natural Resources says it bought the land for nearly $1.1 million. The Illinois Conservation Foundation provided a private donation of $125,000 toward the cost.

* SJ-R: Cleaning up funeral fund mess a big job

BUT FOR SOME 49,000 buyers of pre-need contracts through a trust fund administered by the Illinois Funeral Directors Association, the purchase of pre-paid funeral services has brought nothing but headaches and angst. In what is described in a lawsuit as a massive Ponzi scheme, the IFDA is alleged to have made more than $190 million in questionable investments, putting many funeral homes at huge financial risk and leaving thousands of individuals wondering whether their investments will cover funeral expenses for themselves and their loved ones.

* Want a tollway sign?

What does it take to get an informational sign posted on the Illinois tollway? The agency listed guidelines on its Web site Wednesday that define criteria for communities or businesses

* Metzger will keep state board post

Mark Metzger may no longer be president of the Indian Prairie Unit District 204 school board, but he will keep the top spot at the Illinois Association of School Boards.

* Unofficial St. Patrick’s Day at University of Illinois

School is cracking down on booze in class. (This is not a new tend…it will still be a blast)

* IDOT says no stimulus deadlines missed

* Officials have year to set up projects

Then IDOT chief of transit and metro program planning Jim Stack, who had calls in to Springfield, came back with different marching orders: There is up to a year to set up stimulus projects. And IDOT will put up the money at first, as it does for other local road and highway projects included in an IDOT bid letting.

“You have a year,” Stack said. “It’s in the law.”

That is still less time than it seems. To safely meet the deadline, Therkildsen told the group, it should have projects to IDOT by the end of October for the Jan. 15 letting. If the committee wants to be more conservative, projects need to be ready and in IDOT’s hands in early September for the November letting.

* Stimulus money to pave Southland

A list released by the Illinois Department of Transportation this week shows the state is asking the federal government to fund more than $100 million worth of road work in the Southland under the recently passed $787 billion stimulus bill.

Some of the biggest area projects on the list are resurfacing 159th Street between Interstate 355 and LaGrange Road, reconstructing 159th Street from Interstate 294 to Halsted Street, repairing a series of overpasses on Interstate 57 between 103rd Street and 167th Street and resurfacing Interstate 94 from Martin Luther King Drive to 159th Street.

* Planners make Veterans Parkway intersection a priority for stimulus funds

* Dow closes up 149 as stocks rally

* CAT Stock Jumps Up

On Wall Street today, Caterpillar’s stock prices went up 13 percent today…the most in four months…

* GM auditors raise the specter of Chapter 11

* Stocks set to drop on China letdown, GM news

Stocks are set to resume their plunge Thursday, as China deflated investors’ hope that the country will boost spending and worries re-emerged about General Motors Corp. Ahead of the market’s opening, Dow Jones industrial average futures dropped 110, or 1.61 percent, to 6,720.

Standard & Poor’s 500 index futures lost 10.70, or 1.51 percent, to 697.80, and Nasdaq 100 index futures fell 8.50, or 0.77 percent, to 1,092.50.

* Retailers report sales declines in February

* Expect Illinois’ treasurer to try for Senate seat

He could have some powerful help, too:

“The president is mentor to me, a close friend who inspired me to run for office,” he said. “We haven’t had a conversation about what he’s going to do, but I do think it’s important for Illinois to have a senator who brings integrity back to the process, who has a relationship with the administration, who understands the whole state and who will effectively lead so we can talk about issues like the economy, getting people back to work.”

He also is on friendly terms with Sen. Dick Durbin, D-Ill., with whom he traveled recently to Cyprus to meet with diplomats in an attempt to cool the tension between Turks and Greeks that he said “is about two press releases away from a war between Greece and Turkey.”

* Watch Out, Payday Lenders

Abusive interest rates of as much as 650 percent charged for “payday loans” would be outlawed by a just-introduced bill capping annual interest rates for consumer credit at 36 percent.

Sponsored by Sen. Dick Durbin (D-Illinois), the Protecting Consumers from Unreasonable Credit Rates Act (S. 500), would impose a federal usury cap of 36 percent Annual Percentage Rate (APR) on all consumer credit transactions. Several states have already enacted similar and even more restrictive interest caps. Durbin’s bill would not affect state laws that impose interest rate caps lower than 36 percent. A 36 percent interest cap law is already in place for U.S. military personnel and their families.

* Lawmakers Want to Expand FDA Funding

Senate Assistant Majority Leader Richard Durbin, D-Ill., says it’s clear that the FDA simply can’t keep up with the challenge. The challenge is the fact that FDA is charged with protecting nearly 80% of our food supply. Senator Judd Gregg, R-N.H., says there is momentum for this and that there is no significant opposition to this bill.

* Burris Refuses to Resign; Digs In

* Only the truth The Blago beat …

* Luciano: Blagojevich has no new tales to tell

* PJStar: May Blagojevich’s book not become a best-seller

* We won’t go buy the book

  3 Comments      


Morning video

Thursday, Mar 5, 2009 - Posted by Rich Miller

* I now have over 1,200 “friends” on FaceBook and I’m wondering why…


  4 Comments      


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

Thursday, Mar 5, 2009 - Posted by Rich Miller

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Wednesday, Mar 4, 2009 - Posted by Rich Miller

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Question of the day

Wednesday, Mar 4, 2009 - Posted by Rich Miller

* I think this photo of our new governor’s stationery deserves a caption contest…

  93 Comments      


The annotated Sneed

Wednesday, Mar 4, 2009 - Posted by Rich Miller

* Allow me to annotate today’s Sneedling

The poison pen: Disgraced former Gov. Rod Blagojevich reportedly spent 12 hours Tuesday writing his tell-all book on a legal pad and wearing a special “writer’s jacket” to get him in the correct frame of mind, according to his publicist, Glenn Selig.

Writer’s jacket or straight jacket? And, seriously, he spent 12 hours doing just one thing? He never did that when he was governor, unless it was pace around his home office and jabber at the wall, pretending he was president or maybe Secretary of Energy.

• • A Blago blackout? But the book’s publisher, Michael Viner, tells Sneed there will be no media appearances by Blago until the book is finished. “Well, that has yet to be determined,” Selig told Sneed. The tome is due to be published by Phoenix Books in October.

Great. At least we’re getting a respite from the insanity. And, hey, the book will be published just in time for Halloween. How fitting. I think I’ll scream. Also, he’ll probably still be on his book tour when the February primary comes around. That’ll be joyous fun for all Illinois Democrats.

• • The backshot: Viner, who once served as an advance man in Robert F. Kennedy’s 1968 presidential campaign, helped produce several hits by the late singer Sammy Davis Jr.; was once married to actress Deborah Raffin, and produced TV miniseries based on author Sidney Sheldon’s books.

The publisher may have had a fine career, but Blagojevich’s literary agent is Jarred Weisfeld of Objective Entertainment. Here’s the guy’s bio, via Larry, provided without comment except for the obligatory: “Oy.”

• • The foreshot: Viner, who hopes the book becomes a classroom text, tells

Wait a second. Back up there. He hopes the book becomes a classroom text? With all those stories about boozed up philandering politicians? So, it’s for colleges, then? He can write at that level? Do we want our children reading this drivel?

• • The foreshot: Viner, who hopes the book becomes a classroom text, tells Sneed: “the book is not a question of his guilt or innocence, but not being treated fairly. It’s much more a rainbow story than a black and white story. He [Blago] understands that part of his downfall was caused by him — but it does not justify the treatment he received.”

So, he won’t explain how he broke the law, he’ll just fill two hundred pages whining about how badly he was treated by that mean Madigan guy. I can’t wait.

And, by the way, what the heck is a rainbow story? I looked that up on the Google and couldn’t figure it out. I’m sorry, your annotator is stumped.

A buckshot? Although Viner tells Sneed he has not been contacted by hotshot Hollywood agent Ari Emanuel, brother of White House Chief of Staff Rahm Emanuel — rumors surfaced Ari may have been trying to put the “kibosh” on the book’s publication.

• • The upshot: A phone call to Emanuel’s Endeavor Agency netted a “no comment.”

The book ain’t even written yet and they’ve already cooked up their first cheap publicity stunt.

Your turn.

* Related…

* History offers little help in predicting success of Blagojevich’s book

* Blago book could be jackpot — or crackpot

* Final vote on Blago: Don’t buy the book

* Blago Book Gets Reaction

* SJ-R: A shameless, shameful deal by Blagojevich

* Help Blagojevich find a tell-all hairstyle

  33 Comments      


It’s probably worse than we think

Wednesday, Mar 4, 2009 - Posted by Rich Miller

* Bloomberg has a very scary story about pension bond schemes, including an ill-advised Chicago Transit Authority deal that has crashed. This is a very long story, so make sure you read it all. Here are some excerpts…

With stock market losses this year, public pensions in the U.S. are now underfunded by more than $1 trillion.

That lack of funds explains why dozens of retirement plans in the U.S. have issued more than $50 billion in pension obligation bonds during the past 25 years — more than half of them since 1997 — public records show. […]

The CTA concluded it could borrow $1.9 billion, paying an interest rate of 6 percent to bondholders, and invest the proceeds to receive its expected rate of return of 8.75 percent. Such an annual return would add $52 million a year to bolster the fund.

The CTA chose to ignore not only Illinois’s auditor general but also its own actuarial firm, Detroit-based Gabriel Roeder Smith & Co. The company had determined there was just a 30 percent chance of earning 8.75 percent.

“We executed the best transaction we could, given the legislative and political restraints,” says CTA Chairman Brown, who is also co-head of municipal finance at Chicago-based Mesirow Financial Inc.

Since the bond sale, the authority has held the money as cash, earning 2 percent. And, with the credit crunch forcing municipal bond interest rates up to attract buyers, the CTA wasn’t able to sell bonds with a 6 percent return.

A team of underwriters, including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, sold the CTA bonds in August 2008, at a yield of 6.8 percent, so the fund had to pay bondholders more than it had expected.

“There is negative arbitrage,” Brown says. “It’s better than having dumped the money into the equity market.”

I’m afraid to even call the state pension funds to see how Blagojevich’s scheme is holding up.

Again, go read the whole thing. But let’s try not to get into some goofy debate about the stock market and the president and whatever, OK? This isn’t just about the current stock market conditions. The CTA was warned not to do this and they did it anyway. Let’s try to keep the talk as focused as possible.

* Meanwhile, the Tribune is one of the first newspaper editorial boards to actually propose or at least suggest some large-ish budget cutting ideas, even if they were cribbed from the Civic Committee of the Commercial Club of Chicago…

Reforming how Illinois does business may well require unpopular steps: moving Medicaid recipients into managed-care programs; outsourcing food, janitorial, technology and other internal services; slimming revenue sharing and grants to local governments.

But Illinois desperately needs to create the government it can afford to replace the government it has now. A new report from the Civic Committee of the Commercial Club of Chicago puts the state’s unfunded present and future obligations at $116 billion—almost $10,000 for every man, woman and child. The report says that total could be increasing by as much as $10 billion a year.

We hope Illinois lawmakers, from Gov. Pat Quinn on down, caught this comment from committee Chairman W. James Farrell: “We need someone to take action, and that action has to be reform [and] cut costs—what responsible people do when they can’t live within their means. You really can’t tax your way out of this problem. If you tax your way out of this, businesses would be leaving the state in droves.”

Think that’s an idle threat? Illinois has trailed the nation and the rest of the Midwest in job creation for years. Piling on taxes will put more people out of work.

* Oh, come on already

Illinois still has not officially submitted a list of shovel-ready road and mass transit projects to the federal government for funding under the economic stimulus package, U.S. Transportation Secretary Ray LaHood said Tuesday, warning that time is running out.

“The law requires us to get the money out the door very quickly,” LaHood said. But “we have not received a list from the state or from Chicago.”

State transportation officials vowed to get moving with the application process, but they expressed no concerns about possibly losing federal aid. […]

The deadlines vary depending on the different modes of transportation. But the stimulus legislation aimed at putting Americans to work requires Washington to distribute funding to the states for highway, bridge and transit projects by March 10, which is 21 days from the law’s enactment.

Illinois would not be eligible to receive any money until the General Assembly approves a special appropriation totaling $693 million to cover contracts for the first round of stimulus projects in the spring, according to the Illinois Department of Transportation. Once the money is spent, the federal government would reimburse the state.

* Now, on to some frivolity because I’m too depressed from reading all this gloom and doom. This could be pretty cool

One thing is for sure, security will be tight if the Fenwick boys basketball team makes it to the Class 4A Farragut Regional Championship to face Whitney Young on Friday night (March 6, 7:30 p.m.). After all, the governor may be on hand, as well as His Airness.

But before the Friars can have the pleasure of playing in front of Gov. Pat Quinn, the brother of Fenwick head coach John Quinn, and Michael Jordan, the father of Marcus Jordan, who plays for Young, they’ll need to find a way to get past Farragut on its home court tonight (Wednesday, March 4, 8 p.m.). Even though the Admirals are having a bit of a down year - they’re 15-9 and seeded eighth in the Morton Sectional - a first-round win won’t be automatic for the Friars, who closed out the regular season last week with a 61-33 slashing of Northside Prep. Fenwick is 16-9 overall and was awarded the 10th-seed in the sectional.

“We’ve had an up and down season, but we’ve managed to stay on the positive end of things,” said Fenwick head coach John Quinn. “Our tendency to have a bad quarter in a game just can’t happen against the teams we could possibly face early in the playoffs.”

  38 Comments      


Is it really worth the fight?

Wednesday, Mar 4, 2009 - Posted by Rich Miller

* My weekly syndicated newspaper column takes a look at a biennial GOP war

Every two years, the Illinois Republican Party tears itself apart over a piece of legislation that supposedly would allow rank-and-file party members to have more say in party affairs. This year may be worse than usual, however.

Senate Bill 600, sponsored by Sen. Chris Lauzen (R-Aurora), would stop the practice of allowing Republican township, ward and precinct committeemen to elect state central committeemen. The bill would instead force the GOP to adopt the same rules as the Democrats and allow primary voters to elect the state central committee.

Most people don’t care about this, and I can understand if you’re with them. But since this tiny little change has been one of the most divisive issues in the Illinois GOP’s recent history, it’s worth a closer look.

The concept has always been vigorously opposed by the Republican establishment, partly because of who is pushing it. Lauzen is among a large handful of “insurgent conservatives,” whose most prominent member is ultraconservative activist Jack Roeser. The insurgents have sharply criticized the state party for its allegedly top-down insider ways and its refusal to allow them a seat at the table.

The “powers that be” have complete disdain for the Roeser/Lauzen types. The insiders view the insurgents as troublemakers who can’t win elections and instead blame party leaders for their own failures. They worry the bill would spark endless intraparty battles and divert precious financial resources away from their attempts to fight the Democrats. Plus, they simply don’t want to give up any power to “those people.”

The ultraconservative activists say they want elections because the insiders have locked them out of the system. They were enraged last year at the state GOP convention in Decatur, when delegates voted to pass a resolution in favor of retaining the status quo. The insurgents claim the vote was rigged.

Republican state legislators are put smack dab in the middle of this fight every time the bill is introduced. Two years ago, the bill was unanimously passed by the Senate, but House GOP leadership strong-armed the House Republican sponsor into giving up the bill, then sat on it until the session clock ran out. That, of course, infuriated the insurgents.

The state Senate’s new GOP leader has been put into an awkward position by the legislation. Christine Radogno (R-Lemont) is a moderate Republican who was allied with the “insider” faction and was vigorously opposed by the insurgents. She hasn’t yet fully consolidated control over her caucus, and this legislation is not making her task any easier. Complicating matters further, Radogno has taken a strong stand in favor of calling a special election to fill Barack Obama’s former U.S. Senate seat. That means opposing a bill to open up the party process to voters would appear hypocritical.

Radogno signed on as a co-sponsor of Lauzen’s bill, which surprised the heck out of party leaders. The bill was set for a committee vote last week, and legislators’ phones were ringing all day from very upset people on both sides of the issue.

Things got even weirder when Republican Sens. Bill Brady (R-Bloomington) and Matt Murphy (R-Palatine) removed themselves as co-sponsors of the legislation. Brady is running for governor and Murphy is seriously considering a bid for Cook County Board president. Murphy was backed by Roeser the first time he ran, and both men are very conservative. But they apparently believed that winning support from party leaders was more important at this stage of the game.

The Democrats, of course, love this bill. With their own party facing one nightmare after another, anything they can do to weaken, divide and distract the GOP is viewed as a good thing.

Republican Party insiders completely freaked when they learned Rep. Paul Froehlich, a former conservative Republican who switched to the Democratic Party, had filed to sponsor the bill when it gets to the House. With a Democrat controlling the bill, the Republicans couldn’t slow-walk the legislation into oblivion again, so they figured that House Speaker Michael Madigan was behind the maneuver. The Republicans worry Madigan could use the bill to essentially blackmail GOP leaders to get in line when it comes time to vote on tax hikes, or anything else he chooses.

Last week’s vote was eventually delayed. But this fight is far from over. And if you still wonder why the Republicans would bother to wage a civil war over this issue, you’re not alone.

  30 Comments      


Behind the Quigley numbers *** UPDATED x1 ***

Wednesday, Mar 4, 2009 - Posted by Rich Miller

*** UPDATE *** Progress Illinois has done a bangup job with this video, entitled Primary Day … In 300 Seconds


[ *** End of Update *** ]

* The Tribune’s Dan Mihalopoulos does a very good job of looking at the numbers so we don’t have to…

Quigley won the most votes of any candidate in the 12-way race in the 47th, 43rd and 44th Wards, known as “lakefront liberal” bastions. He also enjoyed a plurality in the affluent 32nd Ward, where rival John Fritchey was elected the Democratic Party’s committeeman last year.

Quigley didn’t need to win every ward or even win a majority in any of them, given the size of the Democratic field. In the 10 wards with the highest vote totals Tuesday, Quigley won five and finished second in four.

Of those wards, Fritchey won only the 45th and 36th Wards, where he enjoyed the support of local Democratic bosses. But Fritchey finished far short of the vote totals that he needed there. He did best in the 36th Ward, run by his in-laws, the Banks family. Even there, however, he managed less than one-third of the vote.

Fritchey also won Ald. Dick Mell’s 33rd ward by just 110 votes over Quigley. Not nearly enough.

Vic Forys really cut into Fritchey, winning Leyden and Proviso Townships, where Fritchey was widely endorsed…

Forys also carried the 38th Ward, which includes the heavily Polish neighborhood of Portage Park, even though the ward Democratic organization supported Fritchey. And Forys won a quarter of the vote in the 36th Ward.

Ald. O’Connor won his own ward and 39. Rep. Feigenholtz won no wards.

* Check the ward-by-ward results here.

* More numbers from the Sun-Times

Quigley won his own ward, the Wrigleyville-based 44th Ward. He also won Ald. Gene Schulter’s 47th Ward, even though Schulter endorsed Fritchey. Quigley won the far Northwest Side’s 41st Ward, even though Committeewoman Mary O’Connor endorsed O’Connor. Quigley won the 1st Ward, where Ald. Manny Flores endorsed Fritchey.

* Commenter “Mr. Know-it-All” had a good observation about Vic Forys, who shamed the pundits and finished ahead of Ald. Pat O’Connor…

Forys finished 4th because he tapped into a significant portion of the electorate and ran a very effective campaign aimed at them. But since he never targeted the rest of the 5th, he never really stood a chance. The Polish constituency is measurable but not a majority.

* I’ll have more about Quigley for subscribers, but this is what I wrote last week…

Cook County Commissioner Mike Quigley started the race way ahead in the polls, and he’s still at or near the top. That means he’ll do well with people who believe it’s their duty to vote in every election but are still vague about their final choice. He has a loyal cadre of workers, and his campaign believes they have identified more than enough supporters to win. They just have to get them to the polls.

* “LaborGuy,” who is with SEIU, had this bit of polling data in comments

The first poll in the race has Quigley at 22%. Our tracking poll had him at 25% ten days ago and he won with 22%.

* Name ID alone wouldn’t win it, though. The reformer mantle was all important.

Quigley was the obvious, credible, poplulist, anti tax hike “change agent” in the race. And he and his staff bluntly tapped into a very real anger out there. Remember this ad? It had all the elements Quigley needed and the voters craved…


Quigley summed it up well after he declared victory. Quigley mentioned Blagojevich and Todd Stroger and all the rest, and then said

“After all the recent embarrassments, this was first chance that the voters had to voice their desire for change and they spoke loud and clear.”

Yes, they did. Well, at least enough voters did to put a win on the board. And that’s all that matters in this ballgame.

* Related…

* Quigley, Pulido, Reichel to face off for Emanuel’s seat

* Quigley pulls off primary victory

* Quigley Wins Dem. Primary, Seeks Emanuel’s Seat

* Cook County Commissioner Wins Special Primary For Rahm Emanuel’s House Seat

* Quigley wins Democratic nomination

* Quigley Wins Democratic Special Primary

* 5th District Voters Struggled with Choosing Candidates

* Quigley Dishes Advice to Future Politicians

  72 Comments      


Morning Shorts

Wednesday, Mar 4, 2009 - Posted by Mike Murray

* Gov. Quinn, the man behind the wheel

“I know people around the governor,” said the man, who does know such people, “and they’re worried about him. They say he’s driving himself on expressways, talking on his cell phone, and they’re worried about his safety. My understanding is he’s driving a Taurus with over 200,000 miles on it.”

* Pastors want calls for Burris resignation to end

Several Chicago-area religious leaders are threatening to bring masses of people down to Springfield if politicians don’t stop calling for Senator Roland Burris to resign.

* Burris hangs on despite furor over Blagojevich

* ‘Burris for Senate’ website boots up . . . just in case

* AG sues Blagojevich friend for more than $3.9 million over alleged contract fraud

The Illinois attorney general today sued a defunct Chicago company run by a friend of former Gov. Rod Blagojevich, alleging it fraudulently billed the state for more than $1.3 million in drug tests it never performed.

The owner of the company already faces criminal fraud charges that sprung from an internal state investigation that began after the Chicago Tribune wrote about the owner’s ties to Blagojevich.

The civil suit brought by Attorney General Lisa Madigan alleges that Anita K. Mahajan through her company K.K. Bio-Science Inc. knowingly billed the state from at least January 2004 until November 2006 for drug testing services it never performed for state child custody cases. The lawsuit seeks more than $3.9 million in damages and penalties.

* State sues ex-vendor tied to Rod Blagojevich

* Illinois attorney general sues drug-testing firm

Mahajan was involved in real-estate transactions that in 2006 netted Patti Blagojevich $113,000 in commissions. Mahajan’s husband, Amrish, was a major fundraiser for the impeached ex-governor in the Indian-American community.

* Madigan sues Frankfort ad company

A Frankfort auto advertising company created “false, inaccurate and misleading” radio ads tied to the recently enacted federal stimulus package, Illinois Attorney General Lisa Madigan said in announcing a lawsuit against the company Tuesday.

The complaint alleges that Prime Market Targeting Inc. violated state consumer fraud statutes. The company said it would not comment on the lawsuit.

* Tammy Duckworth’s D.C. post still on hold

It turns out Obama did not actually nominate Duckworth on Feb. 3, but only indicated his intent to nominate the Iraq war veteran. The White House has still not sent Duckworth’s nomination to the U.S. Senate.

* Commission hears residents’ opinions on government reform

* Reopening state parks tops new DNR director’s long list

* Prison situation unresolved as other jobs leave Pontiac

* Stock futures point higher after 5 days of selling

* State’s late payments strain many agencies

Hynes’ office has more than $2.8 billion of bills awaiting payment; another estimated $1.6 billion is still being processed by the Department of Healthcare and Family Services. And by the end of June, the state has to pay back a $1.4 billion short-term loan it took out in December to ease a massive backlog of bills then.

That’s $5.8 billion owed on state contracts for services already rendered.

* Stimulus Could Force Illinois to Mend Ways

The thing that might rescue health care in Illinois isn’t the money in the stimulus package. It’s the strings attached to the money.

Illinois has been a bit of a deadbeat. The state has piles of unpaid bills—including $2 billion just for Medicaid reimbursements. Now this massive backlog, which has dogged the state for years, could be virtually zeroed out by summer. That’s thanks to the federal stimulus package. But a little-noticed technicality could mean that some people who provide healthcare might not get the benefits.

* State’s stimulus Web site now taking requests

* Southland mayors move to grab their towns a slice of the stimulus package

Tinley Park leaders are bound for Washington, D.C., today, armed with a 12-page packet detailing about $200 million in projects they hope federal dollars will cover.

* Stalled developments torpedo suburban plans

As projected revenues fail to materialize, local governments looking to revise budgets

* School libraries get state aid

Last month Secretary of State and State Librarian Jesse White announced the fiscal year 2009 school district library grants.

It’s $1.4 million for 1.9 million students using 3,400 school libraries in 719 school districts.

* Catholics look to state for boost in school subsidy

Catholic leaders want Illinois taxpayers to pay an estimated $70 million more next year to subsidize private schools.

The current credit is worth $500 and cost Illinois taxpayers $71.8 million in 2007. Nearly half of the credit went to families earning more than $100,000 annually, according to figures provided by the Illinois Department of Revenue.

Doubling the credit to $1,000 could cost taxpayers an estimated $140 million

* Federal money for ‘black institutions’ pays for programs at 4 Chicago colleges

The U.S. Department of Education has awarded grants to four Chicago colleges for a combined $4.8 million over the next two years.

* FutureGen confusion

Regardless of the record of decision, FutureGen is eligible for the $1 billion in grants included in the stimulus package for fossil fuel research. The money could be given to one project or split up over several. Chu could hand it out as he sees fit, or several projects may be given the opportunity to compete for the money. According to a timeline on the federal stimulus Web site, agencies must start reporting on these competitive grants by May 20. Even if FutureGen got all the funding, it would not be enough to cover the plant’s estimated $1.8 billion dollar price tag.

* Bad PR forces City Hall to cancel contracts

The Daley administration on Tuesday abruptly canceled 11 public relations contracts with a $55 million pricetag to drive home the point that taxpayers cannot afford to augment the highly controlled message coming out of City Hall.

“We get it. We absolutely get it. We understand that it would seem absurd at a time like this to be using taxpayer funds for this kind of non-essential service,” said mayoral press secretary Jacquelyn Heard.

* In peril: College’s effort to aid women

Essential support came from a college program that provides tuition assistance and other help to low-income women who have gone through divorce, single parenthood or unemployment. Many participants have been victims of domestic abuse.

In existence nearly 40 years, the program is now financially threatened, officials say. Last fall, the state eliminated support for such initiatives at 10 community colleges, including nearly $60,000 a year that had been the primary funding of the Harper women’s program. A $500,000 donation from John Canning, chairman of investment firm Madison Dearborn Partners, and his wife, Rita, kept it afloat, but Harper officials say more money is needed for it to survive.

* CTA’s new voice: Carolyn Hopkins

* Amnesty raises $7 mil., now boots are coming

Chicago raked in $7 million and wiped 135,000 unpaid parking and red-light tickets off the books during a 10-week amnesty that sets the stage for a booting blitz.

Sometime in April, the threshold for applying the wheel-locking Denver boot will drop from three unpaid tickets to two older than one year. When the amnesty opened, 170,000 motorists fell into that category.

* Chicago police officer pleads guilty in towing probe

* Seven Officers Await Punishment for Involvement with Teenage Cop Impersonator

* A new brush with history

Talk of Sears Tower makeover creates big buzz

* The Straw Man

Why everyone in every race seems to be running against Todd Stroger.

* Foley appears to be good fit to fix county health system

The independent board overseeing Cook County’s huge health system, including Stroger Hospital, recently named a new chief, William Foley, to run its nearly $1 billion operation.

He’s a proven turnaround artist for financially ailing hospitals, here in Illinois and in California.

* Suburban park districts playing catch-up with fitness chains

Park districts and communities throughout the south and southwest suburbs are expanding hours, adding machines, making renovations and offering classes (like aerobics and yoga), all to offer their residents an alternative to private gyms.

* CN not ready to announce EJ & E reroutes

Railway also has no timetable for when it will start federally mandated work

* New trains coming? Not today, says CN

  5 Comments      


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Wednesday, Mar 4, 2009 - Posted by Rich Miller

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* Isabel’s afternoon roundup
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