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*** UPDATED x3 *** We’re Number 2!!! - And other updates

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Reuters expands on its story from earlier today about the Moody’s bond rating downgrade. We’re now the second-lowest rated state in the nation. Man, this is not good

The downgrade gave Illinois the second lowest U.S. state rating from Moody’s, with California having the lowest at Baa1, a Moody’s spokesman said.

How many minutes before this winds up in a TV ad?

Three… two… one….

* The Sun-Times has a brief post online about the AFL-CIO endorsements

A spokesman for state Comptroller Dan Hynes said they were thrilled the organization gave a “stinging rebuke” of the sitting Democratic Governor, Pat Quinn, by not endorsing him.

But Quinn’s office was reportedly happy the union did not endorse Hynes, who has racked up an impressive number of union endorsements for a challenger, including the Illinois Federation of Teachers on Monday.

I’ll have more on this for subscribers tomorrow, but I think Hynes got what he wanted here, and Quinn fumbled what should’ve been a sure thing, but in the end dodged a political bullet.

* In other campaign/endorsement news, Steve Rauschenberger has endorsed Dan Proft for governor

This morning on the Don Wade & Roma Morning Show on WLS-AM 890, former State Senator Steve Rauschenberger endorsed Dan Proft for Governor in the Republican 2010 primary. […]

“I am proud to endorse Dan Proft’s candidacy for Governor because Proft is the only candidate who has properly diagnosed what afflicts state government and is prescribing the right policy remedies,” said Rauschenberger, who is seeking to regain his old senate seat currently held by State Senator Michael Noland (D-Elgin)

“The other candidates believe we have a management problem in state government. Proft correctly understands that it is a system problem.”

Rauschenberger, a well-respected former member of the Senate Appropriations Committee and lead budget negotiator for the Senate Republicans, cited Proft’s plans to cut taxes and impose statutory spending caps in his endorsement.

* And the Kane County Board voted this morning to opt out of legalized video gaming

In a 12-11 vote, board members narrowly approved a measure that bans the practice of legal video gambling in businesses in unincorporated Kane County.

The measure, of course, applies only to unincorporated areas of the county.

* Also, the US Supreme Court is hearing the “honest services” case today and is asking some tough questions

They peppered federal government lawyer Michael Dreeben with questions about the so-called honest services law that’s commonly used to prosecute corporate executives for fraud.

Justice Stephen Breyer was particularly forceful, suggesting that under the law a U.S. employee could be charged for going to a baseball game on company time because prosecutors could argue the worker was depriving his employee of honest services.

There are 150 million workers in the United States, Breyer said, and 140 million of them would “fail your test,” he told Dreeben.

And

Justice Stephen Breyer said he worries that the Obama administration’s interpretation of the law could be used to criminalize huge swathes of the U.S. workforce for such offences as reading The Daily Racing Form on the job.

And

Justice Antonin Scalia repeatedly criticized the law for being “inherently vague” and said Congress should have been more specific.

He said that not even the Justice Department can figure out exactly what activities the law covers. “I don’t see how you can expect the average citizen to figure it out,” Scalia told the government lawyer.

Justice Anthony Kennedy said vagueness “is the lurking problem here” while Justice Ruth Bader Ginsburg said lower courts have been “massively confused” about the law’s reach.

*** UPDATE 1 *** From the Quinn campaign…

As a former member of the Teamsters and the United Food and Commercial Workers, Governor Quinn is honored by the support he has received from organized labor. To date, Governor Quinn’s campaign has received endorsements the Service Employees International Union, the United Auto Workers, the International Brotherhood of Teamsters Joint Council 25 and several other major unions. Together, the labor groups that have endorsed Governor Quinn represent more than 450,000 hard-working men and women.

Union leaders have praised Governor Pat Quinn’s vision of economic development and his effective leadership in passing Jobs and Growth for Illinois, the state’s first comprehensive public works program in more than a decade. Over the next six years, Illinois Jobs Now! will create and retain more than 439,000 jobs, helping to revive Illinois’ economy.

Throughout his entire career, Governor Quinn has been proud to stand with organized labor, walking picket lines and speaking out when workers’ rights to health coverage, decent work conditions, and fair compensation have been threatened or unfairly taken away.

*** UPDATE 2 *** Comptroller Hynes responds to the Moody’s downgrade…

This report confirms what I’ve long said. Illinois state government’s habit of spending more money than it takes in is harming the state’s ability to rebound from the downturn in the economy, making it more difficult for businesses to thrive, for people to find and keep work and for this state to move forward.

The rating agency obviously took issue with the delay in any meaningful resolution of the state’s fiscal situation until February.

It also confirms that undertaking additional short-term borrowing, when the state already owes $2.25 billion in short-term borrowing, is a bad idea.

*** UPDATE 3 *** From the governor’s office…

Moody’s downgraded the State of Illinois’ General Obligation Bonds and Build Illinois Bonds one notch from A1 to A2. This downgrade is the result of the nationwide economic downturn and the long-term mismanagement of the state’s finances. It underscores the urgency for solutions and emphasizes the need to take action immediately.

The Quinn administration has been examining and exhausting every possible remedy to solve the budget crisis. The administration has proposed budget cuts, borrowing, revenue increases, and has asked for help from the federal government. We need everyone to work together and compromise for the common good to come up with solutions to solve this budget crisis.

  41 Comments      


Question of the day

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* We’re running late today because of various breaking news items, so I apologize for that. Anyway, let’s get on with it.

Andy McKenna’s TV ads claim the state is “facing bankruptcy.” McKenna repeated the bankruptcy claim to Greg Hinz today

Mr. McKenna did not say how he’d persuade state workers unions to get their members to pay more [pension contributions], but added, “The alternative is, we go bankrupt. That’s not good for everybody.”

A judge cannot force a state into bankruptcy, and no state has ever technically declared bankruptcy, even during the height of the Great Depression. We’ve had this discussion several times in comments, but I thought we’d front-page it today.

* The Question: In your opinion, is this a gross misstatement that ought to be corrected by the media and the candidate, or is it no big deal and simply a use of dramatic license? Explain.

  59 Comments      


More bad budget news

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Budget director David Vaught told Chicago Public Radio that he wants state agencies to cut 14 percent from their spending

VAUGHT: We don’t want people to, to think that this is a minor situation. It’s not. We’ve got some serious problems that involve big numbers. And so we’ve got to plan in double digits. And so to say to agencies ‘we want you to cut 10 percent’ just would not have been realistic.

Vaught says he hopes to save two billion dollars by cutting the budgets of state agencies. He’s also looking at borrowing more money and raising taxes.

If there’s no tax increase, and I’m really doubtful about that, then a 14 percent spending cut will look like chicken feed this time next year.

* Remember last week when Gov. Pat Quinn was trumpeting a positive bond rating from Fitch as evidence that his fiscal stewardship was working?…

Armed with a new AA bond rating from Fitch Rating Service that he says demonstrates the state is a “good credit risk,”

You probably didn’t catch that unless you’re a subscriber. As I told subscribers this week, the Fitch rating was on bonds that are not only secured by the sales tax, but have first dibs on sales tax receipts, so the rating wasn’t exactly a huge deal, nor a direct reflection on Quinn.

Today, though, Moody’s downgraded some debt ahead of the sale of those very same sales tax-backed bonds. Well, I’m wondering what the guv thinks now. This is from Reuters. No link yet, but it’ll pop up soon…

Moody’s Investors Service on Tuesday downgraded Illinois’ general obligation bond rating to A2 from A1, citing the state’s financial woes.

Moody’s said it also downgraded other Illinois ratings, affecting about $24 billion of outstanding debt, including the state’s Build Illinois sales tax revenue bonds, which were also cut to A2 from A1. […]

As a result, Moody’s also revised the outlook for the state’s GO and related ratings to negative, “reflecting the continuing likelihood of large structural budget deficits, growing negative year-end fund balances, strained operating fund liquidity and mounting pressure from pension and retiree health benefit obligations.”

More

Moody’s said Illinois identified an $11.6 billion budget gap–a $4.3 billion deficit for the latest year and a projected $7.3 billion one for the current year–when the firm began its review of the state’s ratings five months ago. That $11.6 billion gap accounted for more than a third of the state’s expenditures last fiscal year and was one of the largest among U.S. states.

Making matters worse, the governor’s proposal in March to address the gap this fiscal year by raising tax rates by half and reforming pensions failed to win support in the legislature

* Meanwhile, in other news, perhaps the idea that the state’s legalizing of video poker will take the Outfit out of the picture will gain a little bit of media traction now that the Sun-Times is reporting that a federal investigation is afoot

A federal investigation of mob-backed video poker machines is now under way in the Bridgeport neighborhood, sources have told the Chicago Sun-Times and NBC5 News.

Yeah, it’s the mayor’s old neighborhood, so that’ll probably dominate the news. But there’s much in the Sun-Times story worth keeping in mind when you decide it’s OK by you to maintain the status quo. For instance…

Authorities believe the video poker machines, which produce illegal payouts, tie back to the operation of the late Joseph “Shorty” LaMantia, a top lieutenant in the 26th Street Crew.

LaMantia, in turn, worked under Frank Calabrese Sr., who was convicted in 2007 in the historic Family Secrets trial, involving 18 unsolved mob murders. Calabrese, Joseph Lombardo and three others were found guilty on racketeering and conspiracy charges.

Prohibition enriched mobsters beyond their wildest dreams. Heck, we’re still seeing the effects of it today. Calabrese belongs to the same outfit Al Capone once perfected.

What the Sun-Times editorial board and others are missing is that the current quasi-legal machines can only operate under a special state amusement license. Those licenses expire as soon as the new legalization program kicks off. If tavern owners keep the unlicensed machines, the machines can be seized and destroyed. No more need for long, expensive investigations of possible illegal payouts. They’re just gone.

* Related…

* Editorial: State nearing its limit on gambling

* Morton: No video gambling

  34 Comments      


State Fed neutral in guv’s race and other campaign news

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* As I’ve already told subscribers today, the Illinois AFL-CIO has decided to remain neutral in the Democratic gubernatorial primary. Hynes’ press release just arrived, so I figured it was time the rest of you heard the news…

In a major rebuke to a sitting Democratic governor, particularly one who touts his dubious record on job creation, the Illinois AFL-CIO chose today not to make an endorsement in the race for the Democratic nomination for governor. The federation of Illinois labor organizations voted 58-42 in favor of challenger Dan Hynes.

“Rather than offering the expected formality of endorsing the sitting Democratic governor, the Illinois AFL-CIO today instead issued Pat Quinn a stinging rebuke by opting not to make an endorsement in the race for the Democratic nomination,” Hynes campaign communications director Matt McGrath said. “Make no mistake, this is a direct reflection of the Governor’s lack of leadership and inability to create jobs. No matter how many ribbon cuttings Pat Quinn attends and takes credit for, the working men and women who actually build and repair our communities and infrastructure clearly know better.” […]

“The events of recent days add up to one thing: more and more people are alert to the fact that Dan Hynes has the vision and the ideas to lead our state forward, and our campaign has real momentum,” McGrath said. “The budget continues to be a mess and unemployment is at record highs, and Dan is the one candidate offering real solutions, with the record and competence to see it through.”

I’ve asked the governor’s campaign for a response and will post it here as soon as it arrives. SEIU and some other big unions have gone with Quinn, so the governor should’ve had the advantage, particularly since he’s an incumbent governor who signed the first capital bill into law since George Ryan’s days.

* Gov. Quinn reacts to Dan Hynes receiving the Illinois Federation of Teachers’ endorsement

Quinn said he was “disappointed” he didn’t get the teachers’ backing.

“You always want to try to get every endorsement you can,” he said.

As the campaigns march toward the February primary, another plum teachers’ union endorsement is still up for grabs: the 133,000-member Illinois Education Association. If the union makes an endorsement, it won’t be until after a January board of directors meeting, said union spokesman Charles McBarron.

The IEA often stays out of statewide primaries, but this is a hot one and it’s always possible they could jump in. Stay tuned.

* Mary Mitchell slams Mayor Daley for refusing to endorse Todd Stroger for reelection

When you consider how much Stroger’s father, John Stroger, stuck his neck out for Daley when Daley needed it the most, the about-face is nothing short of appalling.

The elder Stroger stuck his neck out for Daley time and time again. I agree that there’s a serious debt there that can never be fully repaid, but John Stroger was county board president for quite a while and the son was dragged across the finish line and given every chance to prove himself. He screwed up. Debts only last so long, particularly political debts to somebody who had nothing to do with the original debt and who has so thoroughly screwed up his family’s formerly solid name.

* Democratic US Senate candidate David Hoffman took questions on Daily Kos yesterday. As usual with posts like that, not much actual news was made.

There were a couple of interesting moments, however. Alexi Giannoulias’ campaign has hired Georgia Logothetis, better known as former front-page DKos blogger “Georgia10.” Logothetis and other Giannoulias backers were fully engaged during the discussion, rebutting Hoffman’s polling claims and posting Giannoulias’ positions on various issues. Hoffman’s campaign did the same to Giannoulias over at DKos last Saturday, so turnabout was fair play, I suppose.

The other item of interest to me was finding out that Hoffman has hired former Democratic congressional candidate John Laesch, who ran against former Speaker Denny Hastert and lost and then lost the Democratic special primary to Bill Foster. As longtime blog readers know, I’m not exactly a fan. He’s also probably looking for a little revenge on Giannoulias, whose endorsement of Foster inspired this Laesch retort

Laesch shrugged off Giannoulias’ endorsement, calling him “just a wealthy guy who bought himself an office.”

But the pièce de résistance - for me, at least - was this comment by Laesch


“Abraham Lincoln, I don’t know if you know this, he didn’t [free the slaves] for the right reason, social justice. He just did it because so many white people were out of work because they couldn’t compete with slave labor.”

Whew.

Nice hire, dude.

  45 Comments      


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Tuesday, Dec 8, 2009 - Posted by Rich Miller

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Ryan: Tax hike now would be “criminal”

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Republican gubernatorial candidate Jim Ryan used some extreme rhetoric when talking about tax hikes to the Tribune editorial board yesterday…

Ryan, the former attorney general and DuPage County prosecutor who lost as the GOP governor nominee to Blagojevich in 2002, maintained that “to raise taxes during this recession is criminal.”

Asked for specific cuts in the state budget to eliminate the deficit, Ryan said “I don’t know if I can get there exactly,” though he joined the others in proposing reduced pension benefits for future state workers and instituting a managed health care program for the poor. But Ryan also said he would “cut aid to municipalities—at least reduce it if not eliminate it.”

You’d think if a tax hike was “criminal,” you’d have a plan to keep the awful event from ever happening.

Ryan added that cutting revenues to local governments “will put them on a diet and also save us money.” They’re already starving, so that’ll be one heckuva diet.

As we’ve already discussed, two years ago Ryan was supporting a big tax increase, but times change, and people decide to run for office. Also, he’s no longer listed as a board member of the Center for Tax and Budget Accountability, which still supports a tax hike despite the recession.

* Ryan’s remarks were made during the Tribune’s infamous closed-door editorial board candidate debates. In the past, they’ve posted audio of the debates, but I didn’t see anything online for the GOP gubernatorial hopefuls. Here’s a bit more…

Adam Andrzejewski, a Hinsdale businessman, said he would go further than the others on proposing pension reforms, vowing to take responsibility for retirement programs away from lawmakers and the governor and turn it over to each agency or local government.

I’m not sure what “each agency” means. But could that mean the State Board of Education would control the teachers’ pension fund? Yeah, that’ll work.

More…

McKenna criticized Dillard and Brady did the same to Schillerstrom over the DuPage County politicians’ backing of higher sales taxes for regional mass transit — a move likened to the unpopular sales tax imposed under Cook County Board President Todd Stroger. “You’re from downstate,” Schillerstrom, a Naperville resident, told Brady. “You didn’t have to worry when the trains stop running.”

* Greg Hinz takes a look at some of Sen. Bill Brady’s budget proposals. One point…

Similarly, despite all the red ink in Springfield, he’d repeal the sales tax on gasoline, eliminate much of the estate tax and repeal business-tax hikes pushed through by ex-Gov. Rod Blagojevich — a total of about $1 billion a year in revenues.

Mr. Brady says such steps would pay for themselves by reviving the state’s moribund economy, thereby generating more taxes.

The last time gas taxes were cut, it didn’t result in a spike in receipts as some had promised.

* Back to Jim Ryan for a moment. The candidate told ABC7 recently that he believes “most people in Springfield are good people. Most people in politics are good people.” But, he added, that the Democrats have failed and claimed “Honestly, I don’t think representative government works in Illinois. It doesn’t. Because I don’t know who they’re representing. They’re not representing me. They’re not representing you. Who, exactly, are they representing?” Take a look


  52 Comments      


Rate Bill Brady’s first ad

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Republican gubernatorial candidate Sen. Bill Brady begins running his first TV ad today. I’m not sure yet how many points are behind it. But, let’s go ahead and rate it


  51 Comments      


Morning Shorts

Tuesday, Dec 8, 2009 - Posted by Mike Murray

* Vice provost: furloughs possible for faculty, staff

* Some Caterpillar jobs to leave Illinois

Caterpillar Inc.’s new parts distribution plant in Clayton, Ohio, will result in some jobs moving from its logistics center in Morton and will replace the company’s regional distribution center in Indianapolis, the company said Monday.

About 170 material specialist positions will move from Morton to Clayton when the new $65 million, 1 million square foot plant opens in 2011.

* More firms plan layoffs than hires in early ‘10, study says

Employment services firm Manpower Inc. found that among companies it surveyed in the Chicago-Naperville-Joliet area, 16% plan to cut payroll during the first three months of the year. Just 8% plan to add workers, the outlook survey showed.

* Chicago’s hiring outlook bleak for early 2010

* Area gas down 14 cents from month ago, up $1 from year ago

* Tax Rebate Available for Chicago Homeowners

Households that earn less than $200,000 a year can get up to $200 back. Mayor Richard Daley is paying for the $35 million program with money from the controversial parking meter lease.

* Chicago and the American Metropolis: Urban Policy and Our Region’s Future

* Chicago to use honor system to dole out $35 million in property tax relief

Chicago will dole out $35 million in property tax relief on the honor system, but only to a point: One of every 50 applicants will be required to produce their 2008 income tax returns.

* Mayor’s nephew: I’m out of city pension deals

Mayor Daley’s nephew Robert Vanecko says he no longer has a financial stake in a real estate investment firm he co-founded that got deals to manage $68 million for five city pension funds.

* City reacts to South Loop parking confusion

* Pay for year not served on board key for election

Not only will Democrat Carolyn Gardner get her 9th District seat on the Winnebago County Board on Thursday, she’ll be paid $7,500 for the year the Illinois Supreme Court said she should have served but couldn’t because Republican appointee Ted Biondo was holding down the fort.

* City, county seem close to deal on high-speed rail

* Busy week in store for Springfield city government

* Davlin says he opposes property tax hike

* Traffic cameras, guns on City Council’s wish list

* Our View: Some city woes needed no crystal ball to see coming

* District 150 ends fiscal year with $8.9 million deficit

* Flossmoor to dip further into savings to cover costs

* School District forecasts $30M shortfall

* Lockport High School board eyeing referendum question

* Dist. 186 broaches how to finance overhaul

* Teachers too valuable to be allowed to strike

* SD 144 negotiations resume today

* Orland Park trustees OK 2010 budget; Dial-A-Ride fare lowered

* Orland Park to unveil LaGrange Road Corridor plan tonight

* Homer Glen Plan Commission wants village to drop plan for parkland purchase

* Maywood crime down in 2009

* Former Elgin city councilman Powers dies

* Swine flu: Homelessness, H1N1 flu a risky combination

Homeless people are more likely to be sick and have higher rates of chronic illness, placing them at the top of the priority list for receiving the H1N1 vaccination, experts say. But they are also far less likely to take such a preventive measure.

* Will carp lock out industry?

* Fishermen netting for Asian carp in Ill. channel

* Decade of 2000s was warmest ever, scientists say

* 55 to 65: Semi Speed Limit Increases After New Year

  4 Comments      


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Prosecutors may bring new indictments against Blagojevich

Monday, Dec 7, 2009 - Posted by Rich Miller

* Not unexpected, but it’ll be fun to see what they do

Federal prosecutors are promising to bring a new indictment against former Gov. Rod Blagojevich to avoid issues connected to an appeal before the U.S. Supreme Court on the scope of the federal “honest services” statute under which Blagojevich has been charged.

That would prevent the need to delay Blagojevich’s June trial date, they said.

In a filing today, prosecutors said they would handle the honest services question in the new filing against the former governor. The high court is expected to hear arguments tomorrow related to the limits of the federal statute. […]

[Assistant U.S. Atty. Reid Schar] wrote that, at most, some of the counts against Blagojevich would be dropped if the high court severely limited the use of honest services.

Happy early anniversary, Rod.

…Adding… It’s unclear whether this is related to the Sun-Times report the other day that the federal investigation of hiring abuses under Blagojevich is continuing. That report was mostly overlooked by the rest of the media, but it could prove important.

More

“To avoid any unnecessary delay in the June [2010] trial date, the government anticipates requesting the grand jury return a second superseding indictment in the instant case towards the end of January 2010,” prosecutors wrote today. “At this time, it is anticipated that any new charges would be based on the underlying conduct that currently encompasses the pending charges.”

  18 Comments      


Question of the day

Monday, Dec 7, 2009 - Posted by Rich Miller

* The news reports on how the Chicago police came to the conclusion that Michael Scott’s death was a suicide contained an interesting little tidbit

Much of that investigation involved public surveillance cameras that recorded Michael Scott over a roughly 45-minute time period as he drove to the location along the Chicago River where he would, police say, later commit suicide.

The cameras are all linked to the city’s 911 center as part of what is called Operation Virtual Shield. By entering a description of Scott’s Cadillac into the system, it gave detectives video of the vehicle as Scott drove it from multiple camera positions.

The program is referred to as video analytics and has been touted for its potential as a high tech crime-fighting tool. […]

The video analytics used to track Scott’s car searched through many terabytes of recorded video just based on the vehicles description.

* The Question: Are you comfortable with the knowledge that the Chicago police have this sort of surveillance capabilities? Explain.

  67 Comments      


Endorsement season kicks into high gear

Monday, Dec 7, 2009 - Posted by Rich Miller

* The Sierra Club endorsed Gov. Pat Quinn the other day, but don’t expect any endorsement like that for Republican US Senate candidate Mark Kirk

Environmental groups who champion cap-and-trade say Kirk has now cost himself general election support in a decidedly Democratic state. Cap-and-trade tops their agenda and appears to surpass other pro-environment positions the congressman holds.

“Mark Kirk is catering to a very vocal, very angry minority,” says Jack Darin, director of the Sierra Club’s Illinois chapter. “This is a very important seat and we want to know that our next U.S. senator is going to be a leader on environmental and energy policy.”

Both the Sierra Club and League of Conservation Voters sided with Kirk in his 2008 race against Wilmette Democrat Dan Seals, a battle that drew millions of dollars in spending and national attention.

In the past, Kirk has used endorsements from groups like the Sierra Club and others (anti-gun, pro-choice, pro-gay rights, etc.) to prove to his constituents that he’s not like other Republicans. That’s a big reason, maybe one of the main reasons, why he’s withstood assault after assault during gigantic Democratic years. Then again, Illinois isn’t like his congressional district - it’s more conservative as a whole.

* Turning to more local politics, a comment by Todd Stroger caused a stuttering, sputtering rejoinder by Mayor Daley. First, the comment

The embattled president of the Cook County Board says he can name a long list of elected officials and labor union leaders who have forsaken him. But it is the name at the top of Todd H. Stroger’s tally of defectors that stands out: Mayor Richard M. Daley.

Chicago’s mayor, Mr. Stroger said, has delivered a “slap” to his face by failing to support him in his bid for re-election when he badly needs political support.

The mayor’s reply

“I’ve never slapped anyone in the face — even symbolically I haven’t,” Daley said. “When is the last time you heard me criticize him?”

Asked if he supports Stroger’s re-election bid, Daley tripped all over himself.

“No, I didn’t — how do you know? How does he know?” Daley stammered.

Told that Stroger believes he does not have the mayor’s endorsement, Daley said, “Well, that’s his problem.” Asked if he intends to issue an endorsement, Daley said, “We’ll see.”

In more important county board president endorsement news, Ald. Toni Preckwinkle was endorsed by the New Trier Township Democrats yesterday with a whopping 83 percent of the votes.

* Back to statewide endorsements. I told you about this last week, but the Illinois Federation of Teachers made it official today. From a press release…

Citing his record as Illinois comptroller and stances on education and labor issues, the Illinois Federation of Teachers has unanimously endorsed Dan Hynes for governor in the Feb. 2, 2010 primary election.

Hynes wants a progressive tax increase, which would have to first be approved by voters, since he’d have to change the state’s constitution. The IFT, however, was a major force in pushing for a higher tax increase right away. Here’s how the IFT finesses the issue…

“The IFT has supported a variety of revenue proposals over the years to provide needed funding for public education and public services,” said Geppert. “The IFT still supports an income tax increase this year to prevent layoffs in schools and in state government. Dan Hynes is the best candidate to work with us and finally fix the state’s structural deficit for the long term.”

The governor is announcing some West Side endorsements today

Quinn is announcing support from U.S. Rep. Danny Davis, state Sens. Rickey Hendon and Kimberly Lightford, state Reps. Annazette Collins and Karen Yarborough, as well as Cook County Commissioners Earlean Collins and Robert Steele. Other endorsements include Chicago Alds. Walter Burnett, 27th, Sharon Denise-Dixon, 24th, Emma Mitts, 37th, and Ed Smith, 28th.

I kinda wonder if anyone will use the opportunity to ask Quinn about Hendon’s candidacy for lieutenant governor.

Also today, Citizen Action Illinois announced its endorsement of Quinn and Giannoulias. The IFT endorsed Giannoulias on Friday. And several downstate legislators endorsed Sen. Bill Brady’s GOP gubernatorial campaign over the weekend. And Rep. Suzi Bassi was shunned by her own township organization

A challenger to state Rep. Suzie Bassi landed the official endorsement of the Palatine Township Republican organization Saturday, continuing a historic feud between the incumbent and a local party boss.

Tom Morrison, a Palatine businessman, was backed by the organization over Bassi, who has held the 54th District seat since 1999. […]

“It was not the least bit unexpected,” Bassi said of the group’s snub. “But I’m glad I showed up to remind them of what I have done.”

* Our campaign video this morning is from Gov. Quinn. It’s a video wrapup of the Sierra Club nod. Have a look


* Related…

* Illinois sets public hearing on Thomson prison plan

* Quinn’s rise leads to interest in his old job

* Marin: Quinn vs. Hynes: But this race may boil down to which guy you’d rather have a beer with.

* Governor hopefuls focus on health care - Candidates share views on keeping costs in check and the federal bill in U.S. Congress

* Hysteria in our time

* Senate candidates agree on elections for vacancies, making jobs a priority

* Republican, Democratic U.S. Senate candidate tackle Illinois issues

* Preckwinkle gets New Trier Democrats’ nod in county president race

* Decatur a key spot for state political candidates

* Sumption drops out of Democrat’s 10th battle

  58 Comments      


Our ever-worsening budget problem

Monday, Dec 7, 2009 - Posted by Rich Miller

* This is just a small example of how the state budget deficit is hurting employers

More than $80 million [in state reimbursements] is owed to 259 agencies surveyed by Metro Chicago United Way during the last fiscal year, which ended June 30.

Sixty percent of the groups surveyed said they will be forced to reduce or freeze the number of people they serve. More than 10 percent of the agencies anticipate that they will be forced to temporarily or permanently close locations because of less state funding.

And the problem is only going to get worse.

* Mike Lawrence looks at pie in the sky promises by the various gubernatorial candidates and attempts to inject a little reality

Assume we freeze tax rates and a robust recovery produces revenue growth of 7.79 percent from the sales tax, 13.2 percent from the personal income tax and 41 percent from the corporate income tax — all of which would match spikes over the last quarter century. The yield would be $2.4 billion, only 20 percent of the deficit.

Illinois revenue experts consider even that scenario wildly optimistic. None of those categorical high points occurred in the same year. Moreover, the generally prosperous 1990s produced annual growth of 6.3 percent from the sales tax, 8.1 percent from the personal income tax and 11.1 percent from corporate and business taxes.

The idea, espoused by several Republican candidates, that if we somehow bring back prosperity our budget problems will disappear is mostly nonsense. You’d think, therefore, when a candidate claims he can balance the budget by slashing tax rates in half that he’d be challenged a bit by the interviewing reporter. Nope

Republican gubernatorial candidate Dan Proft visited Edwardsville recently, pledging that, if elected, he would cut the state income tax by half, cut the corporate tax by half and eliminate the estate tax.

And speaking of the economy, Andy McKenna has joined other GOP candidates on the minimum wage issue

Cutting Illinois’ minimum wage is increasingly becoming a key proposal by Republican candidates for governor as they push ideas to help the state’s economy.

Voters are not likely to hear that in campaign mailers or TV ads, but when pressed for their plans on job creation, several GOP candidates turn to reducing the lowest amount employers are allowed to pay workers.

The latest entry to the fold is Andy Mckenna, a Chicago business owner and former head of the Illinois Republican Party. He told WBBM’s At Issue program on 780 AM Friday that Illinois’ high minimum wage, which is nearly $1 more than the federal limit, “is a problem.” […]

Other Republican candidates to support reducing the minimum wage include former Illinois Attorney General Jim Ryan of Elmhurst and Hinsdale businessman Adam Andrzejewski.

I didn’t hear the “At Issue” program over the weekend and WBBM hasn’t yet posted it on their website, but maybe we can listen later.

* Related…

* Track slots idea needs discussion

* Is Illinois willing to up the ante on gambling?

* Use these tools to keep leaders in check

* Why does Commerce Dept. need $2,821 in hot sauce?

  37 Comments      


Reform and Renewal, Part 247,968

Monday, Dec 7, 2009 - Posted by Rich Miller

* Rep. Mike Zalewski (D-Chicago), the son of a Chicago alderman, was appointed to his seat last year. He has a no-name challenger, but the Machine, as usual overreacted. Somebody allegedly obtained drivers license photographs of Zalewski’s opponent and the opponent’s father to circulate door-to-door. The Zalewski folks believed that the circulators weren’t who they said they were, but getting those photos ain’t exactly legal

Zalewski’s supporters - and Zalewski himself, according to affidavits filed in the case - went door to door with photographs of Collins and his dad and asked voters who signed their petitions if the Collins duo, indeed, were the circulators.

But before the electoral board could rule on the circulator issue, Collins’ attorney, Richard Means, raised the illegality of using driver’s license photos, which were attached to Molaro’s objection paperwork.

“There is no question these are their driver’s license photographs and they came from inside,” Means said. “When you look at an actual driver’s license, there’s a watermark, or imprint, on it. Here we have the exact same photo with no watermark, so it wasn’t taken off the face of his license. It was taken off the original picture in the files of the secretary of state’s office. We were ready to prove that.”

Democratic Party attorney Michael Kasper swiftly informed Means the objection would be dropped, according to Means.

Ugh.

An internal Secretary of State investigation has been launched. This is one of those little things that can easily mushroom into something bigger, so we’ll keep an eye on it.

* Speaking of a mushrooming controversy

A Chicago AIDS charity has been ordered to return a $500,000 state grant it received to rehabilitate a South Side apartment building, amid questions about the group’s spending.

The legal judgment obtained by the Illinois Commerce and Economic Opportunity Department and announced Friday, comes in the wake of Chicago Sun-Times stories outlining the Let’s Talk, Let’s Test Foundation’s financial struggles and failure to complete the apartment project, which was meant to help fund AIDS-education efforts.

State officials said the foundation — created in 2002 by state Rep. Connie Howard (D-Chicago) in an effort to stem the spread of AIDS in African-American neighborhoods — hasn’t finished the project and didn’t “disclose the complete nature of all grant-fund expenses.”

Separately, Illinois Public Health Department lawyers plan to try to recover $523,545 more from the organization, based on questionable expenses they say it made after getting a separate, $1.2 million AIDS-awareness grant. A court-style hearing in which the foundation would be allowed to defend its spending should be opened in the “very near future,” and a judge would decide if the money was misspent, a health department spokeswoman said.

The association claims it’s almost a million dollars in debt and can’t afford to defend itself against the charges. Oops.

* Meanwhile, in Rod Blagojevich news, the cops thought they had a lead in the investigation into last week’s break-in at Sam Adam Jr.’s office, but it turned up little

Prosecutors filed a misdemeanor gun charge against the man arrested after police executed a search warrant related to the burglary of the law offices of former Gov. Rod Blagojevich’s attorney.

Prosecutors did not tie Calvin Ware, 41, to the burglary, though, either in court documents or during his appearance on Sunday in Cook County Circuit Court. Ware, charged with unlawful use of a weapon, was given a $25,000 bond and ordered to return to court on Friday.

Adam told the Sun-Times that the most important stuff related to the Blagojevich case was not touched

Sam Adam Jr. said [Sunday] he remained “99 percent sure” no sensitive material was on the laptops. Adam said the hundreds of hours of recordings that a judge has barred from public disclosure are contained on disks, as well as a main server. Neither the server, nor the disks were touched, Adam said.

“None of the tapes are on the [stolen] computers,” Adam said.

Another source said “at best” portions of some transcripts may have been on the computers.

The laptops stolen link up to a main server where the sensitive material — including tapes and transcripts that are not public — is stored.

And Sneed’s lede Sunday was as follows

Former Gov. Rod Blagojevich, a major Elvis fan who is strapped with legal fees, will be paid $75 to debate a Columbia College professor about the “cultural merits” of the Elvis Presley film “Viva Las Vegas” Dec. 16.

Huh?

There’s really no need to ask why he took so llttle cash. The publicity from this stunt is enough, and he just got some more.

* Related…

* Report: U.S. lawmakers bend ethics rules

* Lawyer: Blago will testify at his own trial

* Rod Blagojevich, God’s instrument: “I embrace this opportunity that I’ve been confronted with. I know God has a purpose for me. Because this whole story is upside down. And this is one way —by me fighting back for the liberties and the rights of Americans that men and women have lost their lives for through the decades and a couple of centuries — to give me a chance to be able to fight back against these powerful forces who are lying. (This) is in many ways I think God’s way of having me serve my country again.”

* Rod Blagojevich, witness to be: “I want you all to know and the people of Illinois to know that I can’t wait to testify at my trial. I am going to testify at my trial, I will answer each and every question asked of me….I’m looking forward to testifying at my trial. And what I love about that is the fact that I’m going to be under oath. Everything that I say is going to be under oath. And you’ve gotta tell the truth. And I can’t wait for my story to come out because I’ve got the simple truth on my side….I know what the truth is. I am going to testify. I’m going to answer every question asked of me. The truth will come out”

* One year after Blagojevich’s arrest, Illinois has seen changes, struggles

* Rod Blagojevich: A strange trip for Illinois

  15 Comments      


Quinn better - and worse - than expected

Monday, Dec 7, 2009 - Posted by Rich Miller

* My syndicated newspaper column takes a look back at the events of last week and puts it all into the context of something I’ve been mulling for quite a while now

For the past several weeks, I’ve been confiding to friends that I think Gov. Pat Quinn has turned out to be a much better campaigner than anyone expected, and a much worse governor than everyone had hoped.

The campaign team that Quinn has put together is quite good. He’s raised a ton of cash, which has paid for some well-produced television ads.

“He’s had to unlearn three decades of muscle memory,” cracked someone from inside Quinn’s campaign a couple of months ago.

Indeed.

Quinn has never been an “A-List” campaigner. He has never really understood what it took to win a really big race - and it’s showed whenever he’s tried. He ran for secretary of state and was clobbered by George Ryan. Two years later he ran for U.S. Senate and was creamed in the Democratic primary by Dick Durbin. He still owed thousands of dollars from that 1996 U.S. Senate race until early this year.

From what I gather, the governor’s brother sat him down and told him that if he wanted to continue being governor then he would have to do all those things he detested, like spend a few hours a day raising money. To his credit, Quinn listened. And I, for one, have been pretty impressed with the results.

It’s the “governing” part of the job that’s been the problem for me. From the failure of his budget rollout, to his constant flip-flops on everything from taxes to gambling to ethics reforms to a government shutdown, Quinn has seemed that he’s in over his head. I, like everybody else, wanted him to succeed after the six-year Rod Blagojevich horror show. But he just hasn’t proved to me, at least, that he’s up to the task.

Last week came one of the biggest blows yet to Quinn’s credibility as governor.

Quinn unexpectedly and harshly lashed out at Comptroller Dan Hynes during a press conference for refusing to sign off on a $500 million short-term borrowing plan, which Quinn said was needed to pay outstanding bills before the end of the year. Quinn claimed that Treasurer Alexi Giannoulias had already agreed to the plan, which turned out to be false. Giannoulias had done no such thing. Both Hynes and Giannoulias must both agree before the bonds can be sold. Hynes, of course, is challenging Quinn in the Democratic primary.

Quinn’s office was needlessly secretive and grossly incompetent during this entire process. The governor switched the type of borrowing that he wanted to do, changed the amount that he wanted to borrow, demanded - out of the blue - an immediate deadline to approve the plan, refused to provide Attorney General Lisa Madigan with crucial information, all without disclosing how he intended to spend the cash.

You’d think this wouldn’t be a very tough sell. Small and large not-for-profit service providers are hurting badly because the state hasn’t been able to reimburse them in weeks or months.

Heck, even Blagojevich was able to get a short-term borrowing plan approved by the comptroller, treasurer and attorney general after he was arrested by the FBI last year - around the same time that the attorney general was attempting to have him removed from office via the courts. If Blagojevich could put it together, why can’t Quinn? After all, the state’s financial crisis is worse now than it was then, with backlogged bills totaling $4.6 billion.

Hynes eventually turned thumbs down on Quinn’s borrowing idea, saying the cash couldn’t really be spent because there was simply no money to ever pay off the loan. He also pointed out that when Quinn was state treasurer, Quinn opposed a very similar borrowing plan attempted by then-Gov. Jim Edgar.

Some might say that Hynes was politically motivated here, but his case is pretty solid. The real political motivation is likely from Quinn. The governor tried to humiliate his political rival over unpaid bills, got caught in a lie (saying that Giannoulias had signed off on the loan, when he hadn’t) and then couldn’t explain the basic mechanics for how the cash would be used or how the loan would be repaid.

I just wish somebody in that governor’s office would learn how to play this game. It really isn’t that difficult, but you’d never know it from the past ten years.

* Others had slightly different perspectives about the short-term borrowing plan. Kurt Erickson was brutal, comparing Quinn to a prevaricating teenager. Finke just wants it resolved and the Pantagraph editorializes that it’s “hard to tell” which one is playing politics here, then claims it doesn’t care, then says whoever is playing politics ought to resign. What a useless editorial that was.

* Meanwhile, the AP notices how Gov. Pat Quinn always seems to get riled whenever Dan Hynes’ name is mentioned

Politicians, even when they dislike their opponents, usually hide their feelings. Especially when talking about members of their own party, they portray disputes as simple policy differences and make sure to note their opponent’s good intentions or long record of public service.

Not Quinn.

Normally easygoing, he bristles at the mention of Hynes’ name and flings harsh accusations: Hynes doesn’t know much about creating jobs, he went AWOL during tough state budget talks, he’s an “ankle-biter” who complains without offering better ideas.

Quinn won’t discuss his irritation at being challenged by Hynes, but he doesn’t deny it either.

“It’s a free country. Anybody can run for office,” Quinn said when asked about it.

This has been obvious since at least July, when Quinn first went off on Hynes after a reporter mentioned the comptroller’s name during a press availability.

* Related…

* Hynes, Quinn clash: Quinn blasted Hynes in news conferences and in campaign commercials for being “missing in action” when Quinn was trying to solve the budget crisis earlier this year. Hynes said Friday he suggested cuts to Quinn that would have helped: “I gave the governor a list of $1.2 billion in contracts, 5,000 contracts. I said: ‘This is where we need to cut. Three months go by and not only are they not cut, they grow to $1.8 billion,” Hynes said.

* Hynes to Quinn: No way on borrowing

* Quinn urges Hynes to reconsider nixing state’s $500M borrowing

  20 Comments      


Morning Shorts

Monday, Dec 7, 2009 - Posted by Mike Murray

* Unemployment report leaves experts optimistic

* Better news on jobs: Not a miracle, but progress

* Manufacturing won’t solve next decade’s job woes

* State posts 20th bank failure

* RTA’s matchmaker plan a win for transit growth

* Clean Up Continues on the Canal

* Minorities’ death rate for H1N1 is twice whites’

* Ex-Asst. Corporation Counsel named to Tollway board

* Former Chicago Park District Board president tapped for tollway board

* Former Daley appointee now on tollway board

* Lawmakers seek to expel regional school chief

Legislation in the works calls for abolishing the Suburban Cook County Regional Office of Education.[…]

“We need to redesign the system,'’ said Rep. Elaine Nekritz (D-Des Plaines), who introduced a bill to dissolve the elected office. “The real problem is the schools are not getting the services they need. I think eliminating that office is the best way to get those services.'’

* Metra on track to rehab and rebuild dozens of stations

State will fund $136 million in improvements, which are needed to increase ridership

* Emotionally troubled CPS students lag in graduating

Chicago Public Schools students with behavioral problems are posting the lowest academic performance of all special-education students, with only 18.7 percent of them graduating in four years, a new study by the University of Chicago shows.

* Disabled students: Report links high absences to poor academic performance in Chicago public high schools

* Daley: CPS graduation rate ‘on-track’ to rise in 2012

8% jump predicted for 2012 based on records of freshmen, Daley says

* In city life, Maggie is part of the family

* Slew of tax, fee, fine hikes across the city

* City Hall hit again for delays in reporting hiring violations

* More Chicago hiring abuses alleged: Monitor criticizes Mayor Richard Daley’s team

* Why didn’t worker pay to park while writing tickets?

* Daley says Michael Reese demolition will continue despite historic sites push

* Kennedy Expressway to reopen all downtown lanes this week, but construction will linger until spring

* South Side beaches going back to nature

* Illinois offers holiday light recycling programs

* Illinois sees 7th warmest November on record

* Illinois biofuel projects get federal cash

* Officials consider expanding H1N1 shots

* Kane County prosecutors initiated 4 new state laws

* Oak Lawn budget gets more scrutiny

* Evergreen Park officials still trying to close gap

* West Haven neighbors fight sex offenders facility expansion

* St. Leonard closes doors to sex offenders

* One-of-a-kind taxing class not a fair deal

* SJ-R Opinion: ‘Discussion’ should not be about tax hike

* When columnists jump ship, newspapers spring leaks

  5 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Monday, Dec 7, 2009 - Posted by Rich Miller

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Reader comments closed for the weekend

Friday, Dec 4, 2009 - Posted by Rich Miller

* Yeesh, what a week. Glad that one’s over. The Giannoulias folks just told me that there would likely be no decision tonight on whether to approve the governor’s short-term borrowing plan, so I’m done for the day.

Adriana Colindres went to Cuba like most of the rest of us Statehouse reporters back in 1999 and did some really good work there. She wrote a ten-year follow-up piece not long ago that’s worth a read. So, this one’s for her


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*** UPDATED x1 *** Break-in at Blagojevich lawyers’ office

Friday, Dec 4, 2009 - Posted by Rich Miller

* The easiest wisecrack is to suggest he did it himself, but I would never dare make such a suggestion. Still, it is Chicago

Chicago police are investigating a burglary at the law offices of the attorneys for former Gov. Rod Blagojevich, sources said, and are trying to recover computers containing discovery evidence in the sweeping corruption case.

Someone broke into the offices of laywers Sam Adam and his son, Sam Adam Jr., in the 6100 block of South Ellis Avenue, sources said, and stole computer equipment. At least one of those computers carried copies of secretly made tape recordings in the case, sources said.

The burglars set off an alarm but escaped the area. Investigative sources said there are no suspects in the crime.

The U.S. attorney’s office in Chicago declined to comment on the incident or the fact that evidence in the case apparently has been compromised.

I wonder if the thieves even know what they have. Heh.

*** UPDATE *** From ABC7’s Twitter page

Blagojevich lawyers tell ABC 7 office break-in probably random, will not effect trial preps.

Good to know.

  44 Comments      


Hynes decision at 1 o’clock - UPDATED x10: Hynes says “No!” - Alexi says “Leaning in favor” - Quinn shoots back - Raw audio of Quinn

Friday, Dec 4, 2009 - Posted by Rich Miller

* 12:48 pm - Comptroller Dan Hynes will announce his decision on whether to sign off on a $500 million short term state loan at 1 o’clock this afternoon. I’ll update this post shortly thereafter.

While we wait, take a look at this Trib story which I missed earlier today…

When Gov. Pat Quinn accused Comptroller Dan Hynes of playing politics on a plan to use short-term borrowing to pay a backlog of state bills, the governor said that when he was state treasurer he “worked together” with a Republican governor and a Democratic comptroller on borrowing plans “on behalf of the common good.”

What Quinn didn’t mention is that as state treasurer in 1992, he single-handedly blocked an effort by then-Gov. Jim Edgar to borrow money to pay overdue bills to state vendors in a failed effort to leverage money for the Chicago Public Schools.

Quinn’s move so enraged then-Comptroller Dawn Clark Netsch, she accused fellow Democrat Quinn of trying to playing a “political chess game” at the expense of state vendors who were owed money.

Just one more strike against the governor. Man, did he ever blow this one. Thoroughly.

*** UPDATE 1 - 1:07 PM *** From ABC7’s Twitter page

Just in: Comptroller Dan Hynes says no to Gov. Quinn’s plan to borrow $500 million to pay state’s bills

If you’re a subscriber, that was expected.

*** UPDATE 2 - 1:15 PM *** Hynes has sent the governor a letter announcing his decision. Click here to read it. Page 2 is here. [Fixed links.]

Hynes points out that he has already signed off on $2.25 billion in borrowing over the past seven months…

“That is a historic amount of short term debt and the state will risk default if that money is not repaid by June 10, 2010. Any additional short-term borrowing such as you now propose would further strain a state budget that can barely accommodate the currently scheduled debt service and critical on-going payments our office must make, especially given the $900 million revenue failure you office has now projected.

“The expected ‘federal and state revenues in excess of $600 milliion’ you refer to has already been incorporated in the existing cash managment plan. My office must prepare this month to reserve funds for the first installment of the $2.25 billion to be repaid beginning in March. Absent an additional revenue source dedicated to the repayment of any new notes, there is insufficient flexibility in the latter half of the year for additional debt service payments. In essence, the proceeds from the short-term borrowing you request would need to be set aside immediately in order to pay it back. For this reason alone, I would have problems supporting your plan as presented.” [Emphasis added]

Hynes goes on to say that if the governor had, as promised, sold $3.5 billion in bonds to make the pension payment in September, things would be different. If the bonds were sold as late as the end of October, Hynes claimed, it “would have allowed the state’s General Funds including the Common School Fund to receive $700 million in cash reimbursements… and would reduce our current payment backlog by $667 million.”

Hynes also quotes “a former State Treasurer”…

“Rollover borrowing always digs government deeper into holes.”

That former treasurer was none other than Pat Quinn. Quinn made that statement when he was fighting with Jim Edgar in 1992 (see above). “Your current proposal is not dissimilar in that it effectively constitutes rollover borrowing,” Hynes wrote.

Hynes concludes by saying he is willing to work on a “comprehensive” plan, but one that “addresses less than 5% of the backlog” of state bills is “neither comprehensive nor is it fair to the very state service providers we both wish to assist.”

*** UPDATE 3 - 1:37 PM *** The treasurer’s office just said that they still have not seen any documents on the governor’s short-term borrowing plan. Quinn’s budget office promised them by this afternoon, according to Giannoulias’ spokesperson.

Breath-taking, ain’t it?

*** UPDATE 4 - 3:27 PM *** From Comptroller Hynes’ office…

An Open Letter to Illinois Service Providers,

I would like to begin by thanking you for your outstanding efforts in providing critical services to the people of Illinois. I remain impressed as always by the important work you do to ensure that our most vulnerable citizens are cared for and protected. Moreover, your ongoing commitment to continue working in good faith as business partners with the State of Illinois is truly commendable given the fact that the State has been anything but a good business partner in return. I know that the current payment situation has caused many of you personal anguish as well as professional difficulties as you struggle to maintain viable service levels.

Your commitment and perseverance stands in stark contrast to the state’s actions over the past few years. Providers have been placed in an extremely vulnerable situation as you were subjected to needless anxiety during budgetary stalemates that did not allow you to develop your own budgets and left you wondering what program levels would be funded and whether service terminations and staff reductions would be necessary. Now after too many of you have made painful decisions and sacrifices, the state is months behind in meeting its financial obligations to you, so I don’t blame you for being angry. You have every right to be.

The level of unpaid obligations in my office stands at $4.4 billion and will continue to grow as there is simply insufficient revenues to meet all the demands. The state has borrowed $2.25 billion that must be paid back within the next six months. There is a new proposal to borrow $500 million more, a sum that I believe will simply exacerbate the existing problem of paying back the money we already owe, and more seriously, give false hope to all of you awaiting payments from the state. I refuse to agree to a “solution” that addresses only 5% of the problem and even then only for the very short term at the risk of creating a bigger problem No matter what else you may hear about the benefits of more borrowing, that is my honest assessment.

Like you, I am disappointed as well as deeply concerned that you have been placed in this situation. You deserve better, and the people that you work with and care for deserve better as well. Instead of the non-stop cycle of extended payment delays, we need a comprehensive plan that will eliminate the deficit and restore fiscal stability to Illinois for the long term. Most importantly, it is time for our leaders to recognize that the public service community and its hundreds of thousands of employees is not just an essential purveyor of critically needed services to our most at risk population but is a significant element of our state’s economy. I not only recognize that fact but will continue to seek meaningful ways to address the problems confronting the service community and to maintain what is in many ways is one of Illinois most important infrastructure components.

In the meantime, going forward, I will work with you to the best of my ability, as I always have, and be honest with you, as I always have, to address the day to day problems that confront us.

Sincerely,

Daniel W. Hynes
Comptroller

*** UPDATE 5 - 4:13 PM *** Treasurer Giannoulias told reporters this afternoon that he is leaning in favor of supporting the plan. That would put Hynes out on a limb all by himself. Giannoulias apparently stressed that the federal Medicaid match would more than make up for interest and fees and that the money could be repaid.

This could turn around pretty fast. Stay tuned.

*** UPDATE 6 - 4:28 PM *** This ain’t gonna happen

Gov. Pat Quinn says Illinois Comptroller Dan Hynes must reconsider his decision to oppose borrowing $500 million to help pay the state’s bills.

Quinn said Friday that “nope” was not an option when social services are at risk because agencies can’t pay their employees. They can’t meet payroll because they aren’t getting the money the state owes them.

*** UPDATE 7 - 4:32 PM *** I just got off the phone with the comptroller’s office. They were pretty surprised to learn that the treasurer’s people think there’s enough liquidity to pay off these short-term loans, even with the Medicaid match.

*** UPDATE 8 - 4:58 PM *** Quinn shoots back

At a Chicago news conference, Quinn shot back with the kind of shaming, populist attacks that he’s gotten so good at. He chided Hynes for letting struggling social service entities to go unpaid, warning of “a human toll” if those agencies end up laying off their workers because they aren’t getting the money they’re owed from the state. He even invoked Christmas.

Quinn also pointed out that the state has previously engaged in short-term borrowing to pay bills 11 times during Hynes’ tenure as comptroller, and that Hynes didn’t refuse to sign off on those plans.

“We have a campaign going on; everybody knows that,” said Quinn — more or less openly accusing Hynes of holding up the money as a campaign strategy. “ . . . A policy of `no, no, no’ is not a good policy for the people of Illinois.”

*** UPDATE 9 - 5:00 PM *** Raw audio of Quinn’s Q&A with Chicago reporters can be heard by clicking here.

*** UPDATE 10 - 5:23 PM *** I just listened to the audio of the governor’s press conference. Quinn repeatedly went after Hynes for approving short-term borrowing for Rod Blagojevich even after he was arrested. Score on political point for Quinn. (On the other hand, Quinn could be pegged as even more of a bumbler than Rod). The governor also stressed a new AA rating from Fitch to say that the government was doing better than expected.

Overall, he did a good job handling the Chicago media and that’ll probably be reflected in their usual scant coverage.

  53 Comments      


The dying media is an embarrassment and Durbin needs to be stopped

Friday, Dec 4, 2009 - Posted by Rich Miller

* You’ve often seen me complain about the Peoria Journal Star’s political coverage - mainly their silly columnists who don’t seem to know much about politics.

But you’ve never once seen me complain about Adriana Colindres, the PJ Star’s Statehouse bureau reporter. Colindres is top notch all the way. She’s one of those real reporters who gets down to the nitty gritty. She’s not flashy, a bit on the quiet side (OK, more than a bit), and her stories are always solid.

Colindres’ paper laid her off yesterday.

What a stupid, stupid move, but all too common these days. Sacrifice state coverage for local puff pieces.

Best of luck, Adriana. If there’s anything I can do, just ask.

* Meanwhile, if you want to learn more about Mother Tribune’s new CEO, take a look at this Salon piece from 2001. I’m not gonna excerpt it because it’s kinda racy, and if your employer would frown on that sort of thing you might want to wait until you get home. When you do look at the piece, search the page for “Behind the mike.” The juicy part starts there. Or, click here and scroll down to the excerpt. I’m sure all Trib Co employees are super proud this week.

* And speaking of embarrassments to Illinois, I give you Sen. Dick Durbin

Senators Diane Feinstein and Dick Durbin are attempting to narrow the definition of a journalist in the federal shield law under consideration by the Senate Judiciary Committee this morning. Their amendment would limit protection from testifying to professional journalists working for “a newspaper, book, magazine, or other periodical.” Not included: student journalists, amateur bloggers, or even freelancers working without a contract.

Markos Moulitsas had the news last night. I’ve been on the phone this morning with people who have worked on the bill, and the consensus is that Feinstein and Durbin are introducing the amendment out of national security concerns: If the shield law is too broad, they reason, it could afford protection to criminals and terrorists who claim the mantle of journalism. Neither senator’s office has returned my calls, and it’s not clear if the amendment will be adopted at today’s committee meeting.

The version of the shield law already passed by the House (H. 985) defines a journalist in monetary terms, covering only those who gather and disseminate information “for a substantial portion of the person’s livelihood or for substantial financial gain.” The Senate has waffled between a similarly professional definition and one that would cover amateurs. The White House, which had dragged its feet on the shield law over national-security concerns, is said to support the broader definition.

A number of news-industry groups, including the Newspaper Association of America, are also supporting coverage for amateurs. Kevin Goldberg, general counsel for the American Society of News Editors, told me today: “There are already exemptions for national security in the bill. If the concern is that the guy holding the video camera for an Osama bin Laden tape is not going to have to testify, that’s a little far-fetched.”

So, Durbin’s not worried that terrorists will strike Illinois if we move Gitmo prisoners to Thomson, but he’s actually fretting that a terrorist will be shielded as a journalist, even though there is already a provision in the bill that forbids shielding terrorists? Give me a break.

Frankly, I don’t want the government taking any role in defining who a journalist actually is. They’ll just screw it up and make life difficult for too many people.

Contact Durbin’s office by clicking here. The amendment is here.

  24 Comments      


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Friday, Dec 4, 2009 - Posted by Capitol Fax Blog Advertising Department

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Viewership of ad-supported cable continues to surge

Friday, Dec 4, 2009 - Posted by Capitol Fax Blog Advertising Department

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A well placed advertising schedule on Comcast Spotlight can add the winning punch to a political campaign. For further information on how Comcast Spotlight can add the winning element to your campaign, please click on the banner ad to the right for Comcast Spotlight. Or contact Richard Brehm at 312-327-5622 or via email: richard_brehm@cable.comcast.com.

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Question of the day

Friday, Dec 4, 2009 - Posted by Rich Miller

* Democratic State Rep. Julie Hamos has a new TV ad in her race for the open 10th Congressional District seat. Take a look


* The Question: Rate it?

  19 Comments      


*** UPDATED x1 *** Oops x5 and a campaign roundup

Friday, Dec 4, 2009 - Posted by Rich Miller

* When you used to work for Rod Blagojevich, and you’re now running statewide, it’s probably best to make extra sure you file your ethics forms

CBS 2 Political Editor Mike Flannery on Thursday talked with Democrat Cheryle Jackson, who completely missed a deadline several months ago to provide a list of her assets and potential conflicts of interest to the U.S. Senate Select Committee on Ethics

Another Democrat, Jacob Meister, also did not submit the form. But he requested – and received – an extension. A spokeswoman for the Ethics Committee told CBS 2 they received nothing from Jackson. She is now subject to a mandatory fine for filing late, and could face additional penalties.

The report to the Senate Ethics Committee tells voters what assets, such as corporate stock, a candidate owns and what potential conflicts of interest they may have.

Jackson called it “an oversight.” She added that she’s doing a complete review of her involvement with several not-for-profit boards before completing the disclosure.

If Jackson raises the money, I think she has a shot at winning the primary. But she doesn’t need stuff like this coming out. Inexcusable.

She didn’t look all that good when Flannery spoke to her yesterday. Watch it


* In other news, John Kass, believe it or not, buys into Andy McKenna’s claim that he’s an “outsider”

To his credit, as state party chairman at the 2008 GOP convention in Decatur, McKenna had angry public words for some of those who helped destroy their party, standing up to former Gov. James Thompson and pension fund insider Bob Kjellander (R-Blagojevich).

“I’ve done what an outsider would do. I made tough decisions as chairman of the party, we took steps on ethics that some insiders disagreed with, and I asked certain people like Kjellander to leave their roles in the party,” McKenna said. “I wouldn’t be doing this if I wasn’t prepared to go to Springfield and make the necessary decisions.”

An outsider who wants to work in Springfield?

Fascinating.

Yeah. Fascinating.

* I told subscribers about this story today and yesterday. It’s a doozy

Republican veteran Steve Rauschenberger’s attempt to take back his Elgin-based state Senate seat is under threat because he may not be Republican enough.

In the latest bizarre chapter of Illinois’ thick history of kicking candidates off the ballot, Rauschenberger could lose his spot in the GOP primary because he pulled a Democratic ballot for February’s local elections. […]

Meanwhile, with Rauschenberger’s position for the Feb. 2 in contention, three Republicans filed Thursday as write-in candidates, including Kane County Recorder of Deeds Sandy Wegman.[…]

Elgin Township Clerk Kurt Kojzarek and Elgin attorney Jeff Meyer also filed. Rauschenberger said he encouraged those two candidates to file. If he is scrubbed from the ballot, he could theoretically ask one of them to step aside after the primary so he could be slated.

Go read the whole thing. More here. This is one of the weirdest stories of the election season to date.

*** UPDATE *** Rauschenberger says he’ll run as an independent if necessary

I am more resolved than ever to defeat Michael Noland in Nov of 2010. I expect to do it as a Republican, but I will run as an Independent if I have to.

[ *** End of Update *** ]

* Any story that quotes Delmarie Cobb as a political prognosticator is not one you should trust all that much, so the Reader’s piece on Alexi Giannoulias would fall into that category

If [the Giannoulias family bank] were to fail, the federal government would be on the hook to cover much of Broadway’s $1.1 billion in deposits out of money that banks—through fees paid by their customers—contribute to an insurance fund.

And what would happen, some Democrats wonder, if that happened after Giannoulias won the Democratic nomination but before the general election?

“I think we’re going to lose the seat,” says Delmarie Cobb, a political consultant whose clients include Burris (who’s not running to keep the seat). “He needed to spend [more] time in [state] office to let the controversies die down and build a record apart from them.”

First, the banks pay the insurance fees. It’s not a direct customer fee. And while there will be a huge uproar if the bank goes down, I’m not yet convinced it’s a total deal breaker. Giannoulias has lots of problems, as the article makes clear with its rehash of what we knew in 2006, and a bank failure (which is not guaranteed) would certainly contribute to and greatly magnify those problems because it makes it possible to use a new hook to bring up all that old stuff. But I wouldn’t be ready quite yet to say this would make him a sure-fire loser.

Still, the history of the bank most certainly played into the White House’s decision to court Lisa Madigan and others to run for Senate. Giannoulias will have a very rough road ahead if he wins the primary. The ads pretty much write themselves, but let’s not get ahead of ourselves quite yet.

* More trouble for Dorothy Brown

A state EarnFare worker who claims to have collected petition signatures for Clerk of the Cook County Circuit Court Dorothy Brown in her bid for County Board president filed a formal complaint with the state Department of Labor today saying he hadn’t been paid for the work he was coerced into doing, illegal though it might have been.

Barry Johnson of Chicago said he collected 1,000 signatures for Brown and had been promised a dollar a signature by her campaign field director, Hasan Muhammad. Brown publicly ended her association with Muhammad after news broke that he had used state EarnFare workers to collect signatures.

Brown’s campaign spokesman did not reply to requests for a response.

Johnson said about 20 to 25 EarnFare workers collected signatures for Brown and that four or five planned to join him in filing formal complaints with the Department of Labor.

* Related…

* Editorial: Back bid to fix system of drawing districts : The goal is 500,000 signatures by April, enough to put a constitutional amendment on the November ballot asking voters if they want to strip from legislators the power to draw legislative districts and give that power to an independent, bipartisan commission. Nine other states already do it this way.

* Reform groups want major change in way state draws legislative districts: House Speaker Michael Madigan, D-Chicago, said he expects a proposal out of the Senate committee soon and will consider it. When asked if he thought there was a need for reform, Madigan pointed to political history. “I’ve said for a long time that I think the current system worked real well in the ’90s when the Republicans drew the maps then in the House the Democrats won four out of five elections,” Madigan said.

* Giannoulias, Hoffman air TV ads in Democratic U.S. Senate race

* 3 of 4 Dem candidates for Senate already running TV ads

* Ill. candidates for Obama’s old Senate seat crowd the airwaves

* Blago would take 5th in casino lawsuit: attorney

* Dem retirees present GOP with golden opportunities: Stuart Rothenberg is out with his list of the 12 House seats most likely to switch- 10 of them are Democratic held seats, including Moore’s . One interesting note- in prior lists, Illinois 10, Mark Kirk’s seat, was right near the top , but now it is not among the top 12.

* Democrat drops out of Illinois treasurer’s race

* Candidates for governor should disclose tax info: Does disclosure of tax returns guarantee Illinois won’t see another governor indicted? No. Both George Ryan and Rod Blagojevich made their tax returns public. Nonetheless, such disclosures show a commitment to openness that voters have a right to expect.

* GOP candidate Murphy touts cutbacks to government

* Press release: Gov’s Friday schedule

* Friday Illinois political docket: Quinn talks global warming, Daley education

* Goslin to run unopposed in primary

* State board knocks 8th District candidate off ballot

* 10th District candidates Dan Seals, Julie Hamos differ on war, tax cuts

* Purcell drops out of 14th Congressional District race

* Board keeps Faso on ballot

* Brown stays on ballot in Cook County Board president contest

  44 Comments      


Gloom and doom and no relief in sight

Friday, Dec 4, 2009 - Posted by Rich Miller

* Yesterday, House Speaker Michael Madigan disclosed one reason why he isn’t thrilled about a tax hike right now

“For those that think that tax increases are the answer, it’s a partial answer,” Madigan told an audience gathered for a panel discussion at the annual Illinois Legislative Latino Caucus Foundation meeting in Rosemont on Thursday. “Because you can raise the rate on the Illinois income tax, but if the economy is not performing you’re not going to get an increase in money out of the increase in rate.” […]

Madigan said while the public may be aware of the financial help provided to major banks under the federal stimulus package, many don’t know that institutions also borrowed from private lenders, and those loans come due next year. He said the banks may have a hard time making those payments, therefore there is a “major threat of further contraction” in the economy during the first part of 2010.

“Everybody should understand… we are in a very difficult economic situation,” Madigan said. “Not everybody in the country fully appreciates the gravity of the situation.”

The other reason, of course, is political. After the uproar over Todd Stroger’s tax hike, Madigan is loathe to touch a state increase.

* Meanwhile, Rome continues to burn. The state’s payments to community colleges will be delayed for months

Yet, a cloud of uncertainty hangs over the state’s 39 community colleges, which could lose half their state funding this year, or roughly $148 million, despite seeing a 10 percent to 12 percent spike in student enrollment.

Colleges received the first of four quarterly disbursements from the state, due in August, just last week.

State officials confirmed the second funding installment originally scheduled for November could be delayed until May, which means the last two payments for the year would be pushed back until the 2010-2011 school year.

* And the Champaign News Gazette thinks the governor might be delaying capital program bond sales for political purposes

If the bonds aren’t marketed until February or March, that means it likely won’t be until the second half of 2010 – probably long after the worst of the recession but much closer to gubernatorial Election Day – when any of the construction projects finally get under way.

Construction workers are out of work. Contractors are hungry for projects. The state’s economy is in miserable shape. Yet the state, according to Quinn, will wait a few more months to finally get the long-awaited capital bill rolling.

His only explanation for the delay is that he is relying “on the experts who run our budget department to pick the best time to get the best rate” for a bond sale.

Skeptics, whose voices are getting louder and louder as the state’s unemployment rate grows by the month, suggest that Quinn is most concerned not with putting people back to work “right now” but with election days in February and November. We hope the governor is prepared to prove those skeptics wrong.

* Related and other state stuff…

* Illinois Prepares $5.27 Billion in Pension and School Borrowing

* SIUC: No layoffs yet

* State Sen. James Meeks says higher state income tax will fix schools

* Ill. legislature’s Latino caucus conference held in Rosemont

* State uses eBay to sell items left in safe deposit boxes

* New law aims to crack down on gang members with guns

* Gang gun law: New statute mandates prison for gang members caught with loaded weapons

* Quinn signs gang gun law named after Chicago cop

* Quinn signs tougher gun law

* New Law Cracks Down On Gangs

  12 Comments      


A brave heckler

Friday, Dec 4, 2009 - Posted by Rich Miller

* More like this, please

As Daley began to speak, he quickly was interrupted by a heckler at the rear of the crowd. “What about the parking meters?” the man shouted, referring to the controversial long-term lease of city meters that sent rates soaring this year.

Daley took it all in stride, smiled and said, “I know. They are doing very well, thank you.” Then he chuckled, and repeated, “They are doing very well, thank you.”

The crowd laughed along

They’re doing well? For whom? What arrogance.

And that was some real guts displayed by that heckler. I can’t recall Daley being heckled at a public event since he was elected mayor. He’s made himself such an imposing figure that nobody dares speak against him. I wonder if the heckler’s car was towed.

* Meanwhile, Sneed is reporting on some Daley musical chairs

Word is CTA President Richard Rodriguez, who was appointed by Mayor Daley in February, may be leaving to return to the private sector.

Word is Daley’s chief of staff Paul Volpe may become the next CTA chieftain. (Volpe, who was the mayor’s point man on the parking meter lease deal, once called City Inspector General David Hoffman’s claim of a $974 million taxpayer loss on the deal “ridiculous.”)

Word is City Aviation chief Rosemarie Andolino may become Daley’s new chief of staff.

Word is Pat Harney, the mayor’s deputy chief of staff, may become the city’s new aviation chief.

* Despite everything else, I certainly hope Mrs. Daley will be OK. She’s one heckuva human being

Mayor Richard Daley today said his wife, Maggie, is doing “very well” but that he does not know her prognosis as she continues radiation therapy for cancer.

The mayor made his first public comments since last night’s disclosure from his office that Maggie Daley will be getting around in a wheelchair because of her latest treatment for cancer.

More

“She’s doing very well. She’s having meetings today about afterschool programs. . . . She’s had many setbacks. In all families, you have setbacks. But the family comes together [to] be able to defeat any setback in life. . . . Her commitment is to be able to defeat this.”

* Related…

* Daley adds bitter twist at French market opening : Mayor Daley on Thursday used the grand opening of the Chicago French Market to browbeat aldermen who wanted him to erase a massive budget shortfall by borrowing from the $1 billion stashed away in tax increment financing districts.

* Hinz: How to get Daley’s Christmas gift to you: To get your money, click on this link, look for the “property tax relief” button, and download the application. Submit it at the addresses listed below, enclosing a copy of your tax bill and a photocopy of your picture ID. The link will go live on Monday, Dec. 7, with applications due no later than March 31, 2010.

* Chicago Budget on the Books, Despite ‘Pokes’

* Mayor lauds wife’s spirit after latest cancer setback

* Daley says his wife is a ‘fighter’ bent on beating cancer

* Maggie Daley Being Treated for Bone Cancer

  14 Comments      


Morning Shorts

Friday, Dec 4, 2009 - Posted by Mike Murray

* Just 1 Asian carp found sleeping with the fishes

“If there aren’t any Asian carp, we still believe it was an essential operation,” John Rogner, assistant director of the Illinois Natural Resources Department, said before the lone 22-pound fish was found.

* Kevin Wright: Market-driven power pricing has been good for customers

* A hearing on a half-dead historic district: The state takes up Michael Reese today

For historic preservationists, the fantasy outcome has to be that the council will shame Mayor Richard M. Daley by saying “yes” to the recommendation, thereby making it clear to all the world that the mayor is engaging in an act off cultural vandalism.

But the likelihood of that really happening? Probably somewhere between slim and none.

* Police Supt. Weis: not ready to call Scott’s death a suicide

Weis said the police still need to make sure they have spoken to everyone who came into contact with Scott over the week before his body was discovered Nov. 16 near the Apparel Center at 350 N. Orleans.

* Lathrop Homes: Chicago plans to move ahead with redevelopment of public housing complex

Despite an ongoing effort by residents of Lathrop Homes and several community organizers to preserve the low-income public housing complex — including a push to designate the site as an historic landmark — the city is moving ahead with plans to begin redeveloping the complex next year.

* Chicago lab goes after digital crooks

* Grayslake N. principal accused of sexual harassment in former job

* County worker fired in scandal back in jail

* City inspector took bribes, jury told

A City of Chicago supervisor pocketed cash bribes and was treated by developers to Bulls skybox tickets — all in exchange for overlooking code violations and pushing through permits, prosecutors said Thursday.

* Former deputy fire chief indicted on child porn counts

* Cook Co. needs about 2,000 election judges

* Orland falls short on election judges

* Census bureau looking to fill temporary jobs

* Census Bureau to hire 300 to distribute forms

* Chicago, Peoria nurses paid more

* 24-hour hotline gives flu advice

* Ill. health officials warn against computer scam

* Suburban homeless population grows; shelter crunch worsens

Crowded and underfunded, suburban shelters turned away an increasing number of homeless last year and already have done it this year even though temperatures have been above normal since October, the traditional start of shelter season.

* I-PASS users face extra charge

Starting Jan. 1, motorists who use Illinois Tollway I-PASS transponders on the Indiana Toll Road will be paying a little more — 3 cents per toll — for the privilege.

* Winter’s here, yet Illinois corn harvest drags on

* Who’s to blame for water commission mess?

* Oak Lawn chips away to try to balance 2010 budget

A $1.4 million deficit in Oak Lawn’s 2010 budget has been pared to $1 million, leaving village officials to again consider more cuts instead of raising or introducing taxes.

* Cries for cash to greet voters

* Energy grants help Machesney Park economy, environment

* Time for bond issue in School District 228?

* Our Opinion: District 186 should alter how teachers evaluated, graded

* Flowers’ office closed for good?

* Dist. 144 teachers strike in 2nd day, appears headed into next week

* Prairie Hills School District On Strike

* Union officials oppose SD 140 hiring custodial firm

* Schools add background checks for visitors

* Aldermen kill one-strike-and-you’re-towed music ordinance

* Oak Park child porn suspect on electronic monitor

When residents of the 1000 block of N. Taylor Avenue heard a helicopter circling at 6:30 a.m. Thursday, they didn’t know that would mean the federal arrest of a neighbor.

Within several hours, cyber-crimes agents from the Chicago office of the U.S. Bureau of Immigration and Customs Enforcement, backed by Oak Park police, served a search warrant on the house at 1000 N. Taylor, seized a computer and took Kevin G. Fuller into custody. Neighbors say the 41-year-old biology professor at Columbia College was a quiet and polite man who lived in a modest corner house, kept the back yard well maintained and tended a parkway garden. A federal judge says he’s a danger to the community. […]

The 1,500-square-foot house at 1000 N. Taylor is owned by Chicago radio personality Bruce DuMont, who is president and CEO of Chicago’s Museum of Broadcast Communications. Neighbors and public records indicate Fuller has lived at the address since 2003.

The men appear to have known each other since at least 1997. A newspaper article from that year in Fuller’s hometown paper in Rockmart, Ga., notes that Fuller met President Bill Clinton at a Museum of Broadcast Communications fundraiser at the Chicago Cultural Center, and quotes DuMont. On the museum’s Web site Friday, Fuller appeared in two photos, one at May 2009 banquet and another with the caption “MBC staff, volunteers and Junior Board.” Those images have since been removed.

There was no answer at the door of DuMont’s house Friday morning. DuMont has not returned phone messages left with his secretary or replied to e-mails.

  15 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Friday, Dec 4, 2009 - Posted by Rich Miller

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