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Friday, Mar 13, 2009 - Posted by Rich Miller

* I’ll close the week with a message to the governor’s press staff: If you’re gonna have a Statehouse press briefing on the budget, please invite all the Statehouse bureaus, not just some. How difficult could that possibly be? Thanks for listening.

* And now, Johnny Winter plays some Bob…


I got forty red, white and blue shoe strings
And a thousand telephones that don’t ring

  Comments Off      


Tax hikes coming *** UPDATED x6 *** Deficit now at $11.5 Billion *** Blagojevich: I told you so *** Quinn to skip pension payments ***

Friday, Mar 13, 2009 - Posted by Rich Miller

[Bumped up for visibility]

*** UPDATE 6 - 6:36 PM *** They’re gonna skip pension payments

The governor also will propose $850 million in additional state cuts and make a potentially hefty cut in the state’s pension payment, while proposing a scaled-back pension plan for new state hires. Quinn aides would not provide more specifics on those plans.

*** UPDATE 5 - 4:18 PM *** Right on cue

Former Illinois Gov. Rod Blagojevich released the following statement on the proposal from Gov. Pat Quinn to raise the state income tax:

“This is exactly what I said was going to happen. It is unconscionable that the new governor, Pat Quinn, wants to raise the income tax by 50% especially at a time when people are hurting and the economy is in shambles.

“When Pat Quinn and I ran as a ticket we promised the people not to raise their income taxes. For six years I kept that promise. It took him less than six weeks to break it.”

Former Gov. Blagojevich is not available for interviews and will not be making any other public statements today.

*** UPDATE 4 - 4:02 PM *** I told subscribers about this new $11.5 billion deficit estimate in late February, and recently pointed out the crashing income tax numbers, but this is still astounding

The state’s budget hole has grown to an estimated $11.5 billion — “an unprecedented tsunami of red ink” — aides to Gov. Pat Quinn disclosed Friday afternoon as the new governor began to sketch out how he proposes to fix the state’s financial woes. […]

At the same time, while promising that Mr. Quinn will unveil $1.3 billion in proposed spending cuts when he introduces his fiscal 2010 budget on Wednesday, they and Mr. Quinn in an earlier appearance confirmed that a state income-tax hike definitely is on the way.

Officials said the tax increase, of unspecified size, would be paired with a tripling of the personal exemption, a combination that would freeze or cut taxes for a family of four if it earned no more than about $60,000 a year, but would require those in higher income brackets to pay more. […]

Over fiscal 2009 and 2010 combined, state revenues from individual and corporate income taxes and the sales tax are projected to be off a projected $3.2 billion — an “unprecedented” decline, according to Mr. Stermer.

At the same time, he said, Medicaid will cost the state an additional $1 billion or so in fiscal 2010, which begins on July 1, higher social services will cost taxpayers an additional $300 million, scheduled employee wage hikes and group health insurance another $300 million, and employee pensions potentially well over $1 billion, depending on possible cost savings..

*** UPDATE 3 - 2:12 pm *** From the AP

Quinn wouldn’t give specific details Friday on the income rate or personal exemption levels he plans to propose.

But he did give a hint about who would be affected by any tax increase. The governor says a family of four making less than about $57,000 a year won’t see its taxes go up. The less money people make, he says, the more of a tax cut they’ll see.

*** UPDATE 2 - 1:47 pm *** The governor’s comments

“There will be some that will have a higher tax burden,” Quinn told reporters today during an impromptu news conference at the James R. Thompson Center, adding it would be based on the ability to pay. Quinn said an increase would be part of a “fundamental reform” of the income tax system that would provide tax relief for many Illinoisans. He said that would come from more generous tax exemptions for working families who are suffering amid the nation’s economic decline.

*** UPDATE 1 - 12:38 pm *** From CBS2’s Twitter page…

Gov. confirms taxes will go up for folks earning above 56k in Illinois.

[ *** End of Updates *** ]

* This possible tax hike isn’t as much as some thought, especially considering the higher exemptions…

Gov. Pat Quinn is considering raising the Illinois income tax by 50 percent in a politically risky bid to address one of the biggest budget dilemmas in state history, sources said Thursday.

An increase to 4.5 percent from the current 3 percent tax rate on individuals would include a corresponding hike in the corporate income tax on businesses, according to sources familiar with the new governor’s preparations for his first budget address Wednesday.

The first state income tax increase in 20 years would be cushioned in part by raising the standard tax exemption up to $6,000 per person from $2,000, the sources said. […]

Fee increases for license plate stickers and driver’s licenses are also under consideration by Quinn, sources said. The governor has also emphasized he wants to “cut, cut, cut” state government.

* Meanwhile, my Sun-Times column today is also about the tax issue…

‘I think this economy makes it almost impossible to place an income tax increase on people.”

What Illinois politician said that this week?

Rod “No Tax Hikes on People, But I’ll Gladly Take Your Bribe” Blagojevich?

A Republican?

A conservative “Blue Dog” Democrat?

Nix, nein Frankenstein, as we used to say in Germany.

The answer: Attorney General Lisa Madigan, talking to the Aurora Beacon News.

Has Congressman-in-waiting Mike Quigley’s winning campaign strategy of bashing Todd Stroger’s tax increase spread to the staid, soft-spoken, liberal attorney general?

This is the same Lisa Madigan, after all, who fumed at Rod Blagojevich last year for vindictively slashing her office’s budget to the marrow. Now, she wants every other state agency subjected to the same cruel slash?

After waiting around all day for a response, Madigan’s spokeswoman finally called to explain that her boss really meant to say all other options should be looked at before any tax increase was proposed.

That’s not what she said, but whatever.

So, I asked, does Lisa Madigan support a tax hike?

“She’s waiting to hear what the governor proposes in his budget address next week.”

Is she open to a tax hike?

Same answer.

The message seems to be clear, however. She’s reserving the right to bash Gov. Quinn for raising taxes during an economic downturn.

Tax-increase foes have valid economic points, but too many fail to see the plain, hard facts.

There are those who say that the state’s budget deficit is about half or even less than half of the $9 billion to $12 billion estimated by Comptroller Dan Hynes and Quinn. All we need to do, they say, is cut $4 billion to $5 billion this fiscal year and again next fiscal year and the problems are solved. Poof.

What those folks never mention is that there are about 100 days left in the current fiscal year. Cutting $4 billion to $5 billion by June 30 would require turning out all the state’s lights. Open up the prison doors, lay off all the cops, no school payments, no Medicaid, no driver’s license facilities, no parks, no road repairs, no aid to local governments, no attorney general . . . no nothing, except for a skeleton crew to process our tax payments. And that still probably wouldn’t be enough.

We simply cannot cut our way out of this deficit. We shouldn’t fully tax our way out, either, of course. Real cuts should be made. But there are no magical solutions, and Lisa Madigan most certainly knows it.

This week, the two Republican state legislative leaders called for more gaming to fund a multi-billion-dollar capital construction program. It’s a pipe dream.

Quinn is widely expected to propose an income tax increase to help balance the budget, so Madigan’s tax comment was probably predictable. Madigan can sit back and let her father, House Speaker Michael Madigan, push through Quinn’s tax increase and then reap all the populist benefit.

But Madigan in the role of the angry white tax-hater and lifelong populist Quinn as the bumbling Strogerish incumbent?

Seriously?

Well, Blagojevich did win his first election as a reformer, so I suppose anything’s possible with enough campaign money.

I just can’t see it. And I sure hope Madigan doesn’t try.

…Adding… I just noticed that something got cut for space. It was a couple sentences after “This week the two Republican state legislative leaders called for more gaming to fund a multi billion dollar capital construction program. It’s a pipe dream.” Here’s what was edited out…

MGM spent almost a billion dollars to put a casino in downtown Detroit a couple of years ago. Those days are over. MGM’s stock price has lost 90 percent of its value since last summer and the company is in danger of defaulting on its debt. MGM is far from alone in the industry.

* Related…

* Illinois Republicans call for more gambling to raise revenue

* Quinn says he’ll push to boost education funding in Illinois

* Illinois governor tells teachers he’s with them

* Quinn pushing for overhaul of state’s tax system

* U of I assembles budget forecasting model

  74 Comments      


The shoe’s now on the other foot *** UPDATED x1 ***

Friday, Mar 13, 2009 - Posted by Rich Miller

* When allegations of perjury surfaced against US Sen. Roland Burris, Republicans were quick to call for his resignation. Now that a powerful township GOP committeeman and former Cook County Republican Party Chairman has been accused of hosting a late night visit by two prostitutes in his children’s playroom, Republicans all of a sudden remember the innocent until proven guilty stuff

Local politicos have been buzzing about a domestic dispute between Palatine Township GOP Committeeman Gary Skoien and his wife, but most stopped short of publicly calling for Skoien’s resignation.

Even Inverness Village President Jack Tatooles, whom Skoien unseated as committeeman in 2002, said only that he doesn’t agree with allegations the police messed up.

“He’s made some innuendos about the police department, but these are good men and women who don’t lie on reports,” Tatooles said, adding he hasn’t had much contact with Skoien in the last seven years.

Palatine Mayor Rita Mullins also ran and lost against Skoien in the 2002 election. She called the situation “very unfortunate” and said, “My heart goes out to his wife.”

State Rep. Suzie Bassi, a fellow Palatine Republican, went further to say she was “not willing to endorse him in the future” and that the situation has hurt the image of the party.

“It’s about time he got his life together and spent some time taking care of his family,” Bassi said. “Step down? That’s going to be a choice he is going to have to make, but I hope he is willing to think long and hard about doing the right thing for the Republican organization and the community.”

“I hope he is willing to think long and hard about doing the right thing…” Isn’t that what Mayor Daley said about Burris?

Kinda funny that there’s no outraged rush to the cameras on this one. The Tribune editorial page, which has led the charge against Burris, has been mute. Kass hasn’t come up with any silly nicknames for Skoien like he did with Burris. And there’s been almost total radio silence at the conservative blogs.

*** UPDATE *** Thanks to a commenter, here’s part of a letter to the editor published last week year in the Daily Herald…

Recently a group calling itself the United Republicans of Palatine Township posted a full-page ad in the newspaper and sent out a mailing attacking Gary Skoien, the Republican Committeeman for Palatine Township.

We, as your Republican and local elected officials, could not be more adamant in our statement that this attack was factually inaccurate, mean-spirited and absolutely ridiculous.

Sadly, this is far from the first time that attacks in the name of “United Republicans” have been leveled against Gary Skoien, the local Republican Party, and other Republican officials working to deliver good government to the residents of Palatine Township. Since Skoien’s successful election over their chosen candidate in the committeeman race in 2002, it has been this same small group of purported leaders in this organization who have continued to attack him and anybody who dares associate with Gary Skoien.

The signatories…

Congressman Mark Kirk, 10th District
State Sen. Matt Murphy, 27th District
Mayor William McLeod, Hoffman Estates
Gregg Goslin, Cook County Commissioner
Gene Dawson, state central committeemen, 8th Congressional District
Ruth O’Connell, Wheeling Twp. Republican Committeeman
Linda Fleming, Palatine Twp. supervisor
Kevin O’Connell, Palatine Twp. clerk
Terry Kelly, Palatine Twp. assessor
John Powers, Palatine Twp. Highway Commissioner
Art Goes, Bill Huley and Lisa Moran, Palatine Twp. trustees
Cary Collins, deputy mayor, Hoffman Estates
Ald. Tom Rooney, Rolling Meadows
Sue Quinn, Dist. 15 school board
Tom Donohue, Inverness Park District commissioner

Oops.

It would be interesting to hear what these people say about Skoien now.

[ *** End of Update *** ]

* Skoien has more troubles, by the way…

Police have rejected a request from a top suburban Republican to change a police report that states he was with two prostitutes when his wife attacked him over the weekend in their Inverness home.

Barrington-Inverness Deputy Police Chief Jerry Libit said today there would not be “any changes to the report,” as requested by Gary Skoien, a Palatine Township GOP committeeman and a former Cook County Republican chairman.

Libit said Skoien met Wednesday night with the officer who wrote the report.

Skoien has disputed that the women were prostitutes. He said he was with two friends early Sunday when his wife, Eni, punched him and swung a guitar at him.

* Related…

* Former Cook GOP Chairman: No Prostitutes At Home

* Skoien hints at stepping down after wife’s arrest

* WARNING: Take it easy in comments. Follow the guidelines. In fact, stay well within the margins on this one. I’m in no mood today to deal with over the top posts. Don’t get yourself banned.

  54 Comments      


Clout watch

Friday, Mar 13, 2009 - Posted by Rich Miller

* Fox Chicago News takes a look at how Frank Zucharelli’s “Z Team” political machine uses South Suburban College as a power and fundraising base…


* Zell never contributed any money to Blagojevich, but this story does show us, once again, the Blagojevich mindset

Tribune Co. chairman Sam Zell was targeted for $25,000 by the Blagojevich campaign last November while the company’s Wrigley Field deal was under consideration and two weeks before the ex-governor was arrested, internal campaign documents obtained by the Chicago Sun-Times show.

Zell’s name appeared on a Nov. 25, 2008, document titled “Focus List” among a group of 33 potential donors. Alongside Zell’s name was the $25,000 figure and a notation that read: “Rod to follow up.” On a Sept. 22, 2008, fund-raising document titled “Call List,” an entry noted “Sam Party on 9.27.”

In another campaign document dated Dec. 3, 2008, Tribune Co. sports consultant Mark Ganis is listed among 143 names of potential donors for tentative or scheduled fund-raising events. Next to Ganis’ name are the notations “New York Event” and “Rod went to dinner on 9/19. Rob needs to follow up.”[…]

The revelation comes after Tribune Co. disclosed Wednesday that federal agents interviewed Zell in January as a “potential witness” in the Blagojevich case. Among the charges facing Rod Blagojevich is that he schemed to have members of the Chicago Tribune editorial board fired in exchange for helping push through the Wrigley deal.

* The Tribune has a story from the Al Sanchez trial that you need to read all the way through…

John Barrera wanted to work for the city, so he joined the Hispanic Democratic Organization, a feared political street army that wielded power over jobs inside Mayor Richard Daley’s administration.

So the story goes, Barrera was told he got a city job through HDO without even applying. But later in the story is this…

One of Sanchez’s lawyers, Patrick Blegen, got Barrera to reveal to the federal jury that he had political connections of his own. Blegen suggested that was how he got his city job. Barrera acknowledged that his father was a former ward committeeman and that he started working on political campaigns as a child.

…Adding… From comments

It’s a tricky thing to explain to a jury, but the fact that Barrera’s dad was a committeeman should actually make Sanchez look MORE guilty, not less.

Barrera’s dad was an independent Dem committeeman allied with the Balanoffs. His committeeman father couldn’t get him a job, (in fact, they probably wrote NO in big red letters on his application) so he felt he had to go through HDO instead.

But the funniest part is how Mayor Daley is reacting to all this…

When reporters pressed the mayor to explain how one city employee got her job, Daley grew angry and shut down the line of questioning.

“I’m not answering questions about that,” he said.

* And, finally today, Knox College gets another high profile speaker

The college announced on Thursday that Patrick Fitzgerald, U-S Attorney for the Northern District of Illinois, will deliver the commencement address at Knox on June 6th. Knox College President Roger Taylor called Fitzgerald’s leadership in combating crime “exemplary” and says the students have once again picked a national figure to address their class at commencement.

  11 Comments      


Question of the day

Friday, Mar 13, 2009 - Posted by Rich Miller

* The setup

State Rep. Brandon Phelps says if downstate lawmakers help Chicago vie for the 2016 Olympics, they should get something in return - perhaps a law allowing Illinoisans to carry concealed weapons.

“They’re going to ask us for a lot,” the Harrisburg Democrat said Thursday.

Four proposals aimed at allowing Illinoisans to carry concealed weapons have been introduced this year. But, long running philosophical disagreements over gun rights between downstate lawmakers and their Chicago colleagues could keep them from becoming law.

Phelps hopes some horse-trading could benefit gun owners and Olympic supporters.

* The Question: If you were a downstate legislator, for what specific thing would you trade your Chicago Olympics vote? Explain.

  55 Comments      


Lauzen: State GOP run by “self-serving, officious, lying, arrogant thugs”

Friday, Mar 13, 2009 - Posted by Rich Miller

* As I told subscribers yesterday, the circular firing squad had another fine day

The Illinois Republican Party has retained a prominent law firm and is warning state lawmakers of both parties it will fight any proposed changes to how Republicans choose their top governing body.

State GOP Chairman Andy McKenna today issued the warning after an Illinois Senate panel backed a measure to require that the 19-member Republican State Central Committee be elected by voters at the primary election every four years. Currently, the representatives from each of the state’s congressional districts are chosen by Republican township and county committeemen.

The change long has been pushed by a group of insurgent conservatives looking for a toe-hold in running a political organization beset by strife and hobbled by the scandals surrounding imprisoned former Gov. George Ryan.

The legislation to make the governing change, backed by state Sen. Chris Lauzen of Aurora, got out of an Illinois Senate panel earlier this week on a 5-4 vote. Only one Republican voted for it along with four Democrats. In a video posted on his Web site, Lauzen has blasted the state’s GOP leadership as “domineering parasites” and “self-serving, officious, lying, arrogant thugs” for not supporting his bill.

* Here’s the video…


* More

Saying he was “deeply troubled” by the “misguided and unconstitutional” proposal, McKenna said “the Illinois Republican Party will vigorously defend its rights under the United States Constitution.” […]

“Political parties in Illinois have a right to freedom of association - in other words they have a right to be free from exactly this sort of meddling,” McKenna said. “The Illinois Republican Party takes its First Amendment rights seriously and will not cede those rights to any governmental entity nor to any opposing political party.”

But Lauzen must rely on Democratic support to pass his plan since Republicans only hold 22 of the 59 state Senate seats. Lauzen said he will keep working toward passage.

“How can it be unconstitutional to restore what was there in the beginning?” Lauzen asked. Before 1988, Republican primary voters elected the party’s central committee. Democratic primary voters already elect their central committee.

Lauzen has a point about the constitutionality. The state currently gives state parties two organizational options. Lauzen’s proposal essentially deletes one of those options. The party strongly feels otherwise, however.

…Adding… From the state GOP’s lawyer Bill McGinley of Patton Boggs…

The State’s intrusion is no less unconstitutional now because the Party did not challenge previous statutory regulation: in Tashjian v. Republican Party of Connecticut, 479 U.S. 208 (1986) the Supreme Court held unconstitutional a statute that had been in effect for decades before the Republican Party finally challenged it.

In that case, the law requiring parties to hold closed primaries had been on the books since 1955 and the state parties had not protested. In 1984, the Republicans adopted a new rule to permit independents to participate in their primary . . . after the old law had been enforced against them for THIRTY YEARS. The Party won this challenge and the Supreme Court held that the state could no longer enforce the statute against them.

The Court later reaffirmed this principle, concluding that “[w]e have never held that a political party’s consent will cure a statue that otherwise violates the First Amendment.” Eu v. San Francisco County Democratic Cent. Committee, 489 U.S. 214, 226 (1989).

In short, a state party does not “waive” or “give up” its constitutional rights simply because it did not protest prior regulation. Freedom of association entitles Parties to determine their current internal governance in accordance with the desires of current members; this is the entire point of protecting their right to define their own organization, its membership, and its message in response to changing times. State regulation that infringes that internal control is unconstitutional, regardless of whether past Party members objected to similar encroachment in prior legislation.

  47 Comments      


Traffic safety division to stay put

Friday, Mar 13, 2009 - Posted by Rich Miller

* Yesterday, the governor reversed Rod Blagojevich’s decision to close the Pontiac prison. Today, Gov. Quinn is reversing another one

After months of uncertainty, the state’s traffic safety division is not moving to southern Illinois.

Rep. Raymond Poe, R-Springfield, said he received a voice mail this morning at his Springfield office from new Illinois Department of Transportation Secretary Gary Hannig that an announcement about the division staying in Springfield would be made later today.

Anders Lindall, a spokesman for the American Federation of State, County and Municipal Employees Council 31, confirmed the union also had been notified an announcement was coming today.

Spokespersons for IDOT and the governor’s office did not immediately comment on the news.

  22 Comments      


Morning Shorts

Friday, Mar 13, 2009 - Posted by Mike Murray

* Chicago police, school leaders meet to address student deaths

* Al Sanchez trial: Chicago worker says job came before application

* Still clinging to corruption

* No easing of foreclosures

Illinois ranked seventh nationally in foreclosure activity last month as Cook County filings surged in recent weeks despite pledges by big banks to a temporary cease fire, according to two reports released Thursday.

Residential and commercial properties in some stage of foreclosure totaled 14,218 last month, down 1.6 percent from January but up more than 62 percent from February 2008, according to RealtyTrac, a foreclosure listing company.

* Foreclosure Filings Up in Cook County

* Iowa lawsuit seeks $1M from company linked to former Republic owner

* Anger, disappointment linger after Republic owner’s Iowa deal

* Natural gas pipeline could be flowing soon

* FutureGen flap irks Costello, Durbin

* Audit finds fault with state’s choice of Pepsi

* Lawmaker wants new bids on statewide cola contract

* Audit spurs call for state to dump Pepsi pact

* Audit questions Rod Blagojevich’s ‘No Coke, Pepsi’ contract

* Prison decision another chance for Quinn to reverse Blagojevich

* Quinn says Pontiac prison will stay open

* Quinn: Keeping Pontiac prison open will save hundreds of jobs

* Quinn cites jobs in keeping Pontiac prison open

* Pontiac Correctional Center Stays Open, Reaction Mixed

* Pontiac Prison Gets Reprieve

* Pontiac residents happy with decision to keep prison open

* With Pontiac matter resolved, Thomson a question again

* Lawmakers: Release funeral trust fund records

State lawmakers from Springfield oppose Illinois Comptroller Dan Hynes’ decision to deny a request by The State Journal-Register for records regarding a troubled funeral trust fund.

“This has occurred during the last six years under the comptroller’s watch, and he is the one that is supposedly doing the auditing, so let’s get all of that out in the open and solve the problem,” Rep. Raymond Poe, R-Springfield, said Thursday.

* Official: Illinois’ prepaid tuition plans are OK

* Illinois’ prepaid tuition plans get passing mark

* Students shouldn’t be political pawns

* Ald. Ed Burke delays vote on spay and neuter ordinance

* 20% of Illinois adults still light up regularly: CDC

Twenty percent of adults in Illinois are regular smokers, according to government figures released Thursday.

Nationally, the number of adults who smoke is estimated at 19.8 percent, the Centers for Disease Control and Prevention reported

* City offers incentive for homeowners to get water meters installed

* Daley lays out $1 billion stimulus wish list

* Daley says $1 billion in stimulus cash ‘better than nothing’

* Daley Lays Out Stimulus Plan

* Daley Breaks Down Plans For City’s Stimulus Money

16,000 Jobs To Be Created Or Saved

* Chicago Olympics team wants more financial support

* Daley not worried USOC changes will hurt bid

* Olympic apartments won’t be ‘white elephant,’ IOC chief says

* Chicago Sun-Times editing jobs won’t be outsourced to India, Canada

Union officials representing Sun-Times editorial employees said management informed them Thursday that the paper is scrapping the radical January proposal to eliminate up to 30 jobs.

The Newspaper Guild was braced for a fight. But, in the interim, a shareholder-led overhaul upended parent Sun-Times Media Group’s board and a succession of other changes, including John Barron replacing Cyrus Freidheim as Sun-Times publisher and Don Hayner succeeding Michael Cooke as editor.

* Chicagoans React to Renaming Sears Tower

* All about money? That’s OK.

Paint it silver? No. Call it Willis? Why not? Our immediate reaction upon hearing that Chicago’s landmark Sears Tower soon would be renamed Willis Tower was not good. Why, we wondered, can’t people leave Chicago iconography alone?

Macy’s should be Field’s. The Aon Center should be Big Stan. Cellular Field should be Comiskey Park.

* Tower power

* Willis Tower ain’t what it used to be

* Willis Tower? Addams Tollway? Old names still stick after renaming

* Willis we always call it the Sears Tower? No, we won’t-is

* Robbins mayoral race marred by defaced campaign billboards

* Sox Park’s new top dog

Vienna Beef replaces Best’s Kosher at Cell

  11 Comments      


Open thread

Friday, Mar 13, 2009 - Posted by Rich Miller

Lost a tooth filling, which led to a tooth infection, which led to lots of nighttime pain, which woke me up in the middle of the night, which caused me to oversleep this morning and miss my dentist appointment. Feeling just ducky. Anyway, some posts will be up shortly. Trying to shake the grog.

  23 Comments      


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