Bad news roundup
Friday, Jan 8, 2010 - Posted by Rich Miller
* Oy…
When Gov. Pat Quinn halted a secret early prison release program last week, he acknowledged that 56 of the freed inmates were already back behind bars - 48 of them for violating rules of their parole.
What he didn’t say was that those broken rules included at least 17 allegations of violent crimes, including attempted murder, armed robbery and domestic battery, according to Associated Press interviews and reviews of both public and internal Corrections Department documents.
One offender who’s back after he was released under the program known as “MGT Push” allegedly shot his victim in the leg. Victims of nine others who earned return trips to the penitentiary contend they were battered.
Seven parolees are back in lockup for crimes involving guns or other weapons.
* Expected, but not good…
Illinois, the second-lowest rated U.S. state, paid more than some comparably ranked U.S. companies when it sold $3.47 billion of taxable bonds to finance its annual contribution to a public employee pension fund.
The state, downgraded last month by Standard & Poor’s and Moody’s Investors Service, paid as much as 4.421 percent yesterday on the bonds, which mature in one to five years. The top rate was 182 basis points, or 1.82 percentage points, higher than the yield on five-year U.S. Treasuries, according to data compiled by Bloomberg. Corporate securities rated A that mature in three to five years traded 154 basis points over Treasuries yesterday, indexes from Bank of America Corp.’s Merrill Lynch & Co. show.
“They certainly did have to pay a premium to get this deal done,” said Matt Buscone, a portfolio manager at Boston’s Breckinridge Capital Advisors Inc., a money manager overseeing $11 billion in assets, which bought Illinois debt maturing in two years. Municipal bonds “are subject to a lot of bad headline risk these days” with deteriorating state and local budgets, he said. “Headline risk” refers to the potential effect of bad news on investment values.
* The only good news here is that it’s getting some media attention…
Because the state of Illinois isn’t paying its bills, Community Workshop & Training Center cut its hours.
“We have to close early now,” Executive Director Gail Leiby said Wednesday.
CWTC provides services to the developmentally disabled, with an operating budget of about $9 million a year. Missing $1.8 million over the last six months represents almost 40 percent of its funding. As a result, a not-for-profit that tries to operate as a business has tightened its belt in all sorts of ways.
“We have not received a payment since July 1. That’s for services already rendered, of course,” Leiby said. “. . .We’ve cinched it so tight we can barely breathe.”
- Will County Woman - Friday, Jan 8, 10 @ 11:56 am:
of course MGT Push totally ignored the state’s crime victim notification protocol. the whole thing really undermines our criminal justice system because all too often its difficult enough to get victims to come forward. they are afraid of reprisals, and rightfully so. yet, their informed of all of the protections afforded to them, which aren’t many to begin with. but, to the extent that victim notification of an offenders impending release is of any comfort makes it extremely important that this particular aspect of the criminal justice system is followed through. it’s critical that it is followed through. Under MGT Push, victims were totally let down, betrayed and put at great risk–along with all of the rest us.
- The Doc - Friday, Jan 8, 10 @ 12:20 pm:
Six-plus months and counting for the state to honor its financial obligations. Truly despicable.
You wanna talk about job growth - how about making sure the ones we currently have aren’t cut by the myriad employers being stiffed by the state?
- Will County Woman - Friday, Jan 8, 10 @ 12:23 pm:
“They certainly did have to pay a premium to get this deal done,”said Matt Buscone, a portfolio manager at Boston’s Breckinridge Capital Advisors Inc., a money manager overseeing $11 billion in assets, which bought Illinois debt maturing in two years. Municipal bonds “are subject to a lot of bad headline risk these days” with deteriorating state and local budgets, he said. “Headline risk” refers to the potential effect of bad news on investment values.
great.
- wordslinger - Friday, Jan 8, 10 @ 12:23 pm:
The lousy rates on the pension bond sale is an endorsement for Hyne’s refusal to sign off on any more short-term borrowing. We have five big debt service payments due before the end of the fiscal — he has to squirrel that money away, now.
It’s not just Illinois, Cally or United States’ local governments. All of Europe is leveraged to the hilt. If you read The Economist, everyone is scared to death about who’ll be the first government to default on debt payments, starting an avalanche and then katy-bar-the-door. Look to Greece — they’re absolutely broke.
- Ghost - Friday, Jan 8, 10 @ 12:34 pm:
One thing not really discussed in the media coverage I have seen is what happens when we exit this fiscal year and these bills never get paid.
- Responsa - Friday, Jan 8, 10 @ 12:36 pm:
The only good thing to say about the MGT Push is that because it is an election year the program is getting all the exposure and bad press it so rightfully deserves. One wonders how long it might have remained an operative policy and a secret policy had not the governorship been up for election.
- lake county democrat - Friday, Jan 8, 10 @ 12:40 pm:
If you had a blue panel commission with the credentials and respect of the Reform Commission write a budget, recommend funding, and put it to a vote against whatever the legislature came up with, what would happen? A voter can dream…
- Will County Woman - Friday, Jan 8, 10 @ 12:42 pm:
LOL the spin here:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=1&RecNum=8156
I prefer the objective Bloomberg take on this transaction.
Also, I’ve noticed that some refer to this transaction as a sale, while others refer to it as a loan. For the sake of illinoisans I hope the chicago *electronic media know the difference when reporting about the transaction. techinically it’s a loan and the public needs to be very clear about that.
*let’s face it this is how most people get their news and information, in 30 sec or less soundbites.
- VanillaMan - Friday, Jan 8, 10 @ 1:53 pm:
Wordslinger is correct.
- Redbright - Friday, Jan 8, 10 @ 1:59 pm:
If the released inmates had stayed for their entire sentence, how would the outcome have been any different?
Seriously.
Now that they are (mostly) back in prison, is there some magical transformation that is going to take place when they are finally released? The press seems to think they will then become model citizens.
Quinn’s plan was stupid but it only altered the terrible outcomes by time, not results.
- ThePiper - Friday, Jan 8, 10 @ 2:09 pm:
Dem primary voters better wake up and vote for Hynes cause if Quinn wins bye bye mansion. I can see the 17 ads with these criminals, victims, and Quinn already. This is a BAD story for Quinn folks.
- Will County Woman - Friday, Jan 8, 10 @ 3:07 pm:
Redbright, the bottom line is that it’s the principle of the thing at play here.
People understand that criminals are likely going to be criminals regardless of early release or extra early release. The governor knew the risk. he took the risk. he took the gamble and he lost here.
- Responsa - Friday, Jan 8, 10 @ 3:08 pm:
Daily Herald website has up a story that says PQ just told their editorial board that Randle went “rogue” but he’s not going to be fired.
- My Kind of Town - Friday, Jan 8, 10 @ 5:17 pm:
IDOC and Prisoner Review Board are required to give crime vics notice of impending release only if crime vic files a written request. Was notice requirement in fact violated? Perhaps part of the vetting process for MGT Push was whether notice to vics would be required?
- Justice - Friday, Jan 8, 10 @ 5:28 pm:
Randle should be fired and a unemployed Illinoian should take his job. The newspaper failed to report the (3) new DOC early release program people’s salary!! The Governor lays us off on the front lines and then SPENDS SPENDS SPENDS. I truely hope 2010 holds some hope for many of us.
- Mida - Saturday, Jan 9, 10 @ 8:34 am:
This prison story is getting old. Redbright is correct. This can be compared to judges that set sentences all the time. Do we always hold judges acountable for a crime committed by a parolee right upon release if the judge does not impose a longer sentence? It’s the same thing because the law ALLOWS for the discretion for judges and DOC and it’s moronic to draw a nexus between the crime and release date. Most of the parolees released would have spent only a few more weeks in jail under normal release and half of these guys will end up back in jail anyways. This whole thing is pure fear mongering and the press knows it and dumbs it down to produce fear in the populace. Irresponsible reporting.
- walk in my shoes - Saturday, Jan 9, 10 @ 7:36 pm:
The Governor also needs to rescind the vast amounts of MGT/SMGT given to inmates in R & C on sentences of 2 yrs or less. The intent was for the inmate to earn the good time. Please explain how an inmated earns 6 months good time when he has only been in R & C 30 days?