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This just in… Chris Kelly pleads guilty

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* 3:44 pm - Chris Kelly has pled guilty to two counts. It’s unclear from early press reports if he has agreed to cooperate in the investigation against former Gov. Rod Blagojevich. Kelly was a close Blagojevich friend, mega campaign fundraiser and administration fixer.

* Jeff Coen of the Tribune Tweets that Kelly pled guilty in exchange for 57 months. …Adding… That’s on top of the 37 months he got in his tax case.

* Natasha Korecki reports at the Sun-Times that Kelly reports to prison next week

Kelly still faces trial on charges with the ex-governor — his third indictment. Kelly pleaded guilty in a separate tax scheme earlier this year.

The plea deal was finalized at the last minute, with Kelly initialing portions of it outside the courtroom minutes before court. At one point, Norgle recessed because Kelly said he hadn’t read the whole document.

* Read the plea agreement by clicking here.

…Adding… If you’re reading the plea deal and having trouble remembering who “Co-Schemer A” is, this Sun-Times story from March will refresh your memory

George M. Criel is a roofing consultant who has worked for Chicago’s Merchandise Mart as well as American Airlines and United Airlines.

Criel has another identity, too. He’s “co-schemer A'’ — the previously unidentified consultant who federal prosecutors say got $450,000 in kickbacks for helping former Gov. Rod Blagojevich’s top adviser, Christopher Kelly, get $8.5 million in rigged contracts from American and United, the Chicago Sun-Times has learned.

Between 1998 and 2006, Criel and Kelly allegedly ran a scheme to steal from those airlines by inflating the cost of roofing projects and making sure that Kelly’s company — BCI Commercial Roofing — submitted the lowest bids for the work, according to prosecution court filings in the Kelly case. Their actions “guaranteed profits'’ for Kelly and kickbacks for “co-schemer A,” who was working for the airlines, according to prosecutors.

  28 Comments      


The gathering storm

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* Two things made the 1994 GOP landslide so devastating for Democrats: 1) A huge chunk of their base was discouraged and embarrassed and didn’t bother to show up to the polls; and 2) Republican voters were energized and did come out to vote.

So, while the latest round of “tea parties” has received little coverage in the state’s mainstream media, Monday’s New Lenox rally turnout ought to force another look

About 6,000 people packed the hillside venue at The Commons Performing Arts Pavilion for the protest, part of a nationwide Tea Party Express tour that includes speeches, musical performances and updates from a traveling Fox News correspondent.

Monday’s audience was the largest yet, organizers said.

Tea party organizers claim 10,000 people showed up, citing the Will County Sheriff’s office. New Lenox police estimated the crowd at 8-10,000…

The unexpectedly large crowd caused traffic to be backed up a quarter-mile on Interstate 80 as well as forcing some participants to park one-half mile away from the Commons Performing Arts Pavilion in New Lenox.

Illinois Review has plenty of coverage and several videos, including this one


* At least some of the GOP base appears to be fired up. For now, at least, that has translated into a possible uptick in the number of primary challengers against Republican legislative incumbents. Eventually, though, attention will turn to Democrats. Whether the intensity will last through next November is anyone’s guess.

But what about the Democratic base? The Rod Blagojevich trial, the ineptness of the Quinn administration and a potentially nasty primary against Dan Hynes, the general Democratic Party position in favor of an unpopular tax hike, the ethics debate, the U of I “scandal,” the Todd Stroger meltdown and his upcoming primary, etc., etc., etc. won’t exactly energize Dem voters.

And editorials like this one in the Sun-Times blasting the all but certain slating of Cook County Democratic Chairman and Board of Review member Joe Berrios for county assessor foreshadow a big problem

You may be surprised — or not — to learn that Berrios has a close relationship with property tax attorneys, whose business depends, of course, on how successful they are getting tax breaks for clients from the board of review.

The relationship is so close, in fact, that those attorneys have been major contributors to Berrios’ political funds and to those of his daughter, Maria Antonia “Toni” Berrios, a Democratic state representative from the Northwest Side. […]

And did we mention that the board of review is under investigation by the Cook County state’s attorney’s office? (No one has been charged with wrongdoing.)

Or that Berrios is known for his skill at helping family and close friends get government jobs?

Or that he’s a Springfield lobbyist?

A great lobbyist, in fact. Berrios was a key player in getting video poker passed in this state — one of the worst ideas in the history of state government.

Berrios owes his success as a lobbyist in part to House Speaker Mike Madigan. Madigan’s law firm, in turn, specializes in getting property tax breaks for Cook County businesses.

As I’ve been saying for weeks, we can expect a whole more on this topic as the campaign progresses. A lot more. A lawsuit by political operative Victor Santana won’t make things any easier, either.

While some Latinos may be fired up about the Berrios run, the Berrios slating is almost guaranteed to bring the heat on party leaders in a big way, which could further depress the rest of the Democratic base.

I’ve said it before and I’ll say it again: This Berrios slating could be Michael Madigan’s Waterloo.

* Related…

* Fox Chicago: Who’s Giving Toni Berrios Money and Why?

* Zorn: Remind me again why this sign isn’t sickeningly ominous

* Quinn renames board chairman despite alleged Rezko ties

* Quinn rarely uses state-issued cell phone

* Campaign donation limits back to drawing board

* Legislative pay raises will be considered again

* Peters to Quinn: Restore funding to grant program

* BND Editorial: What will they tax next?

* Budget cuts to reduce nursing home advocate program

* The other Mrs. Blagojevich speaks - Ex-gov’s sister-in-law, a former teacher, had led a ‘quiet, private life’ — until now

* ADDED: Chicago attorney running for Senate: Jacob Meister announced his candidacy Tuesday. Meister practiced law in Chicago for nearly 20 years, focusing on banking regulation, interstate commerce and telecommunications.

  78 Comments      


Question of the day

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* The setup

A new study says that taxing services such as haircuts, plumbing repairs and storage facilities could generate more than $7 billion for Illinois’ depleted budget.

The Commission on Government Forecasting and Accountability, which provides revenue forecasts for the General Assembly, estimates that up to 100,000 businesses could be affected by adding such a tax, which is used in other states but is sparingly deployed in Illinois.

From the study itself…

• In 1975, money spent on services made up approximately 46% of total consumer spending. By 1995, money spent on services had grown to 58% of consumer spending. Service spending has remained around this rate since then. In 2008, consumers spent over $6.0 trillion on services in the U.S.

• Similarly, the Illinois service sector has been growing in recent decades. In 1977, service related industries accounted for approximately 32%, or $37 billion, of the $115 billion Illinois economy. The service sector accounted for $271 billion (43.9%) of the $617 billion Illinois economy in 2007.

• Illinois’ economy is more dependent on services than the other Great Lake states primarily due to the increased importance of the 1) Finance and Insurance industry 2) the Professional and Technical Service industry, and 3) the Information industry in Illinois.

* The Question: Should Illinois impose a broad tax on services? Explain fully, please.

  44 Comments      


Landmine awaiting Alexi? And other political news

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* Crain’s reports that Alexi Giannoulias’ family bank is now, by one measure, the second-weakest bank of its size in the Chicago area. And that could be a serious landmine during next year’s US Senate campaign

Without a substantial injection of new equity capital, Broadway could be fighting for survival and facing regulatory action during the heat of Mr. Giannoulias’ Senate race next year. On his Web site, the Democrat touts his experience as a former banker at Broadway.

The reason? The bank’s “high-octane growth strategy collided with the housing meltdown,” and that trouble was only made worse when the owning family took a gigantic dividend…

The Giannouliases, who own 100% of parent Broadway Bancorp Inc., appear to have exacerbated their predicament by vacuuming $70 million in dividends from the holding company in 2007 and 2008, double the bank’s profits during that period. The next-highest dividend total for a local bank Broadway’s size during that period was $39 million. Most banks in the category paid less than $15 million.

“Those (dividends) are appalling,” says Bert Ely, a Virginia-based banking consultant. “They basically were sucking capital out.”

* Speaking of the Senate race, the Democratic Senate Campaign committee just sent out a press release claiming that Republican US Senate candidate Mark Kirk omitted a key item from a bullet-point list of his recent voting record. The DSCC has a July 20th screen capture from Kirk’s old campaign website which includes in his voting record his “Democratic Position” on the so-called Cap & Trade issue, while a flier Kirk distributed in a recent Downstate swing left that out. Click here to see the original list from July, and click here for the more recent Downstate flier.

* Meanwhile, Congressman Danny Davis made it official Sunday evening. He’s running for Cook County Board President

The congressman says he wants a higher standard of care in county health facilities, and he says he wants to streamline county operations and, hopefully, cut taxes.

However, Davis refused to say whether he would have favored the recent increase in the county sales tax.

State Sen. Rickey Hendon, Reps. Annazette Collins and LaShawn Ford and others, including Darlena Williams-Burnett, business owner Jim Ascot and pastor Marshall Hatch.

* And our political quote of the day goes to Illinois GOP chairman Pat Brady

Illinois Republican Party Chairman Pat Brady said it is appropriate for Obama to address the nation’s school children – but not to encourage them to help him.

“At first blush, this is something you would see at a far-left regime like Cuba or North Korea,” said Brady, of St. Charles. “Oppressive regimes do this to their children.”

* Related…

* Hynes, Quinn march with unions, but who will get backing? Sources in SEIU and in Quinn’s camp say the union is leaning toward Quinn. That endorsement could translate into a six-figure infusion into Quinn’s primary battle.

* Quinn vs. Hynes: Who’s winning tax spat?

* Hynes will use ‘different‘ strategy, hasn’t said how

* Judy Baar Topinka’s back in the limelight - ‘I can’t sit too long,’ ex-state treasurer says

* Candidates face West Side, South Side debate

* Another Evanstonian joins race to succeed Hamos: Robyn Gabel, executive director of the Illinois Maternal & Child health Coalition, confirmed… she was very serious about running for the seat and planned to file shortly to run in next February’s Democratic primary.

* Get ready for some intense action in Illinois governor race

* Crowded, boisterous field seeks Illinois governor’s chair, Senate seat

* Dart ‘loves’ his job, to run again for Cook Co. sheriff

  51 Comments      


Under the bus: A look at Blagojevich’s new book

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* My weekly syndicated newspaper column is about Rod Blagojevich’s new book

As expected, former Gov. Rod Blagojevich’s new book paints himself as the hero of Illinois politics and blames everyone but himself for his troubles.

He also tries to settle an old score. Blagojevich’s longtime enemies House Speaker Michael Madigan and Attorney General Lisa Madigan are both attacked.

“I believe the two Madigan’s are not the people they pretend to be,” Blagojevich writes in his new book, “The Governor.”

“Both of them are surrounded by conflicts of interest and indiscretions in their public and private lives.”

Blagojevich doesn’t detail any “indiscretions” about either Madigan’s personal lives, but he does allege that Speaker Madigan’s property tax law practice is “unethical” and “very well may be illegal.” And if it’s not illegal, it should be, Blagojevich writes.

The irony of Blagojevich’s use of the word “indiscretion” is obvious and undoubtedly intended. Speaker Madigan once said of Blagojevich “I could talk about some of his indiscretions, but I don’t plan to do that,” after Blagojevich had singled Madigan out for criticism during his first gubernatorial campaign.

Blagojevich also alleges that Mike and Lisa Madigan sabotaged his legislative agenda because Blagojevich refused to contribute money to the Democratic Party of Illinois, which Mike Madigan runs.

The former governor asserts that both Madigan’s and others met with Blagojevich to persuade him to contribute to a fund for Democratic candidates. Blagojevich described the meeting as “an effort to muscle me for nearly $400,000 in campaign funds.”

Blagojevich added that Attorney General Lisa Madigan’s presence at the meeting was “incredibly unethical” because she had subpoenaed his campaign fundraising records.

After noting the details of the seating arrangements, Blagojevich wrote this of Speaker and Attorney General Madigan, respectively: “While dear old dad is literally and figuratively putting the arm on me from the left side, she is subtly holding a gun to my head from the right.”

A spokesman for Speaker Madigan said that the book’s publisher must have reneged on his pledge to force Blagojevich to take a lie detector test. “The guy’s a very troubled human being,” the spokesman said of Blagojevich, adding “Why anybody would pay attention to this is beyond me.”

Despite promising months ago to name names and spill the dirt on Illinois politics, Blagojevich does very little of that.

For instance, while discussing the allegations that he tried to sell Barack Obama’s US Senate seat, Blagojevich claims he never offered a quid pro quo on the seat. But, he writes that others “approached us about campaign contributions if I either appointed them or the person they were supporting to the Senate. If anyone should have been charged with a crime for this, it should have been them and not me.”

The ex-governor does provide an example of someone who mentioned campaign money in exchange for an appointment - but that offer doesn’t appear to have been direct. And he doesn’t give us the name. The former governor alleges that one of his close legislative allies who is also a “prominent” African-American state legislator brought up the subject.

Blagojevich alleged that the unnamed black legislator “intimated that his overflowing campaign fund might be available to me,” if Blagojevich ran for a third term as governor.

The legislator wanted to talk with Blagojevich in person, but Blagojevich claimed he canceled the meeting because he wanted to “avoid any conversations with anyone who could possibly be chosen as a senator who might say something that could be interpreted as improper.”

The former governor also noted that canceling the meeting probably saved this legislator from getting in trouble with the law, but that the legislator later voted to impeach him.

The book’s most useful passages imply what could be Blagojevich’s defense during his federal corruption trial. Essentially, chief of staff John Harris was to blame.

Harris was arrested the same day as Blagojevich, but he has since agreed to cooperate with the feds.

Blagojevich wrote that he intended to operate his administration, “effectively, honestly and always within the rules,” but then added he “relied” on Harris “to tell me what we could and could not do.”

“As Governor,” Blagojevich wrote, “I left those [operational] details in the hands of my chiefs of staff.”

That’s classic Rod Blagojevich. Throw everybody else under the bus.

* The former governor’s book tour has begun, and here’s a quick coverage roundup…

* Blago on Today: Shout it from the mountaintop

* Blagojevich says ‘simple truth‘ clears him: “When you’re an honest person … you want to tell the people who hired you (that) you didn’t let them down,” Blagojevich said while promoting his book, “The Governor.”

* Blagojevich goes on book blitz in New York: In keeping with his long-held position that he has been victimized by political enemies and “unethical” prosecutors, Blagojevich primarily blames his downfall on five people: House Speaker Michael Madigan, Illinois Atty. Gen. Lisa Madigan, U.S. Atty. Patrick Fitzgerald, convicted influence peddler Antoin “Tony” Rezko and his father-in-law Richard Mell (33rd).

* Blago: I’m the Anti-Nixon: “I’m the anti-Nixon, asking that these tapes be heard. My accusers are the ones who went to court and are keeping those tapes from being heard by the public. Someone’s lying here, and it’s not me.”

* ‘Askers’ got on Blagojevich’s nerves

  29 Comments      


Buried poll nuggets

Tuesday, Sep 8, 2009 - Posted by Rich Miller

* I’m not sure that the Tribune’s headline “University of Illinois admissions scandal hurt its reputation, poll shows” completely matches up with the Tribune’s poll results…

Over half of the respondents said the university’s reputation wasn’t harmed. And four out of five think it’s a common practice throughout the country. So, there’s been damage, but not according to the majority.

And it doesn’t look like Illinoisans are sure about whom to blame, either…

Of the 700 residents surveyed, 35 percent said they blamed trustees most, compared with 26 percent for legislators and other elected officials and 17 percent for university personnel.

Also, you’d think that when about 75 percent favor a particular reform, it’d get more play instead of being buried deep in the story…

About three out of four respondents said trustees should be elected, not appointed by the governor.

…Adding… And after whacking the heck out of the U of I for months, this is the Tribune’s suggested reform of the legislative scholarship program? Really?

Putting the [scholarship] decision in the hands of the universities would make it far less likely that the scholarships would be used to buy friends or pay political debts. And educators are far more qualified to select the recipients than politicians.

* Meanwhile, deep in a story about the economy lies this little buried polling nugget

Like Keith, 67 percent of Illinoisans say they’re either not making ends meet or making just enough to get by.

There’s a big reason to be politically afraid of raising taxes.

* And towards the end of the Trib’s “red light camera” poll story, we find this

Just 31 percent of Downstate voters said they would like to see cameras installed where they live, while 57 percent said they would not. Illustrating the NIMBY syndrome, however, 54 percent of Downstaters surveyed also said they thought traffic cameras were a good idea.

Overall, anti-camera sentiment was strongest in the Cook County suburbs, which have experienced an explosion of traffic cameras in the last three years. More than half of suburban Cook residents surveyed said they disliked the notion of cameras, and 58 percent said they didn’t want one where they lived.

Thoughts?

  11 Comments      


Morning shorts

Tuesday, Sep 8, 2009 - Posted by Mike Murray

* Subpoena time in Strogerville

Word is that Cook County State’s Attorney Anita Alvarez’s special prosecutions bureau has issued subpoenas to the Cook County comptroller’s office as well as independent Cook County auditors.

* All but impossible to override Stroger veto

* Sims: ‘This was not about Todd Stroger’

* Tomorrow’s tragedy: Berrios as assessor

* The fence that Burke built

Powerful alderman spent $45,499 in taxpayer money to build a sidewalk and fence longer than a football field that keeps teens from hanging around the railroad track behind his home

* New Legal Tactic for Chicago Not so Smart?

Attorneys who sue the city of Chicago say a new legal tactic is going to cost the city a lot of money.

The city recently announced a new policy backed by Police Superintendent Jody Weis and the law department. It’s going to fight small lawsuits even though it would be cheaper to settle them. The idea is to scare off lawyers who think they can get some easy money.

PETERS: The cases aren’t gonna fall off.

* What’s new this year at CPS

* New Chicago schools

* Kids Start School Without Teachers: Huberman Promises Change

* CPS Seeks “Culture of Calm” in Chicago High Schools

* CPS’ new performing arts high school strikes a chord with students

* OK to give Metra credit

* Did state’s attorney use office for political work?

A special prosecutor will investigate claims that McHenry County State’s Attorney Louis Bianchi improperly ordered a secretary to do political work for him on county time, a judge ruled Friday.

* Daley’s return, Olympics guarantee top today’s Illinois political docket

* Chicago 2016 Olympics debate amps up

* The Olympics would be good for us – really

* Despite recession, visitors give Lake County $1 billion boost

The county posted nearly $1.1 billion in visitor and tourism spending in 2008, a 3.9 percent increase over 2007, according to the Lake County Convention and Visitors Bureau.

* Union Pacific has begun construction of a nearly $370 million, 785-acre intermodal terminal in Chicago

* FutureGen Alliance’s board taps new chairman

* Chrysler ramps up Dodge Caliber production at Belvidere

* Kraft to continue effort to buy Cadbury after bid rejected

* State marks National Preparedness Month

* Illinois governor set to receive seasonal flu shot

* Hospital in stroke center network

  4 Comments      


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