* Democratic US Sen. candidate Alexi Giannoulias has two new TV ads up and running. I’m told they’re not being run in a way that dilutes the points. The first one we’ll look at is entitled “Heroes” and features a young African-American woman talking up the Bright Start college savings program. There are some obvious political calculations there, since the person polling second in this race is a black female. Watch it…
The second ad is called “Values” and talks about how he “recovered millions” when “Wall Street made improper investments.” Have a look…
I’ll have buy info for subscribers tomorrow.
Democratic rival David Hoffman may have gotten a sneak peak at the new Giannoulias ads, which were officially unveiled this afternoon, because he sent out a press release this morning. It’s long, but worth a look…
Giannoulias’ TV Ad Makes Questionable Claims About Bright Start
Illinois State Treasurer, Alexi Giannoulias, has a long-standing habit of claiming credit for the good things that happen during his tenure, but when it comes to taking responsibility for the mistakes and failures on his watch, he has been skillful at distancing himself. There is no bigger failure during his time as Treasurer than his mismanagement of Bright Start, the college savings program for families who aspire to send their children to college. And true to his nature, Mr. Giannoulias accepts no responsibility for his mismanagement and oversight failure of the $150 million that Illinois families lost in the savings fund.
Quite the contrary, Mr. Giannoulias has perpetrated a number of myths about his management of Bright Start that raise serious questions about his performance in office. This document lays out the many myths that Mr. Giannoulias has put forward over the last year and provides facts that will give you some perspective on the degree to which he has sought to duck responsibility for his mismanagement of Bright Start, and how he purposely misled the public about the catastrophic loss incurred by Illinois families who invested in the program.
As you begin to cover the last four weeks of the Senate Democratic primary, we hope you will ask the many questions about Bright Start that Mr. Giannoulias for more than a year has refused to answer. Voters deserve to know the true records of the candidates. Mr. Giannoulias has covered up his record with false claims and myths. You now have an opportunity to expose them.
Myth vs. Reality
True Loss to Bright Start Victims
Myth. From the very beginning of 2009, Mr. Giannoulias led the public to believe that Bright Start victims lost $85 million in the college savings fund.
Reality. On December 22nd when Mr. Giannoulias announced the settlement with Oppenheimer, he revealed for the first time that the true extent of the loss was $150 million.
Myth. On June 8, 2009, Mr. Giannoulias announced that he had a “tentative settlement” that would return 90 percent of the lost money to Bright Start victims.
Reality. On December 22, 2009, Mr. Giannoulias announced that the settlement would only return 51 percent of the lost money to Bright Start victims.
Giannoulias Markets the Core Bond Fund as Safe
Myth. In the Bright Start promotional material published by the Treasurer’s office, the Core Bond Fund was characterized as a conservative savings fund.
Reality. Mr. Giannoulias knows that the fund is investing in mortgage backed securities and corporate junk bonds. It said so in the Treasurer’s own promotional materials. Oppenheimer also told the Treasurer’s office on April 22, 2008 that, since fourth-quarter of 2007, the Core Bond Fund was investing in risky mortgage backed securities.
Myth. Mr. Giannoulias, a self-proclaimed experienced banker, should have known that risky mortgage backed securities were an inappropriate investment for families seeking to save money to send their children to college.
Reality. Mr. Giannoulias ignored all the warning signals, including the collapse of Bear Stearns under the weight of toxic mortgage backed securities and Morningstar financial analyst reports, and continued to allow families to invest their money in the Core Bond Fund from April of 2008 up until December of 2008, by which time they had lost almost 40 percent of their investment.
Myth. Mr. Giannoulias, knowing that the Core Bond Fund is heavily invested in mortgage backed securities and corporate junk bonds, claims he has no knowledge how the Core Bond Fund lost almost 40 percent of its value, and places all the blame on Oppenheimer.
Reality. Mr. Giannoulias emailed Oppenheimer on May 6, 2008, saying he wanted to discuss Core Plus’ underperformance. He demanded weekly status reports and monthly performance meetings. The fund was in a free fall, losing 20 percent by October 24, 2008 and 38 percent by December 4, 2008. From May 6, 2008-December 4, 2008, knowing full well that the Core Bond Fund was declining in value at a rapid rate, Mr. Giannoulias continued to allow families to invest in the fund.
How is Bright Start Rated?
Myth. Mr. Giannoulias routinely brags that Bright Start is rated as one of the top five college savings plans in the nation.
Reality. Morningstar Financial dropped Bright Start off its top programs list on May 14, 2009, citing losses in the Core Bond Fund due to investments in mortgage backed securities and credit default swaps.
Giannoulias Record on Transparency
Myth. Mr. Giannoulias claims “sunshine is the greatest disinfectant.” He claims that he imposed very tough ethics rules on himself when he became Treasurer.
Reality. Mr. Giannoulias stonewalled the Hoffman Senate campaign’s FOIA requests for documents on Bright Start for three months, which allowed him to continue to hide the true cost of the Bright Start loss and evade accountability.
Giannoulias’ View of Oppenheimer
Myth. On March 12, 2007, Mr. Giannoulias announces Oppenheimer as the New Manager of Bright Start. He promises they will have a good track record in investing Bright Start money.
Reality. On January 29, 2009, Mr. Giannoulias accuses Oppenheimer of “gross mismanagement.” He asks Attorney General, Lisa Madigan, to pursue a legal settlement to recover the lost funds. But after taking no responsibility for the mismanagement of Bright Start, and after blaming Oppenheimer exclusively for the loss, he keeps them as the investment advisor for the fund, where they continue in that role today.
Giannoulias’ View of the Bright Start Settlement
Myth. Giannoulias’ press spokesman put forth this reaction to the settlement: “This puts them back in the ballgame and will allow Bright Start families to move forward with their savings goals.”
Reality. Far from being back in the ballgame, Bright Start families have had their college savings plans decimated by the lack of oversight that Mr. Giannoulias failed to deliver in policing the hard earned money put away by these families. He is the Treasurer of the State of Illinois, one of the top financial officers of the state, yet he takes no responsibility for the devastating loss these families incurred. Mr. Giannoulias should ask any family who only recovered 51 percent of their investment if they “are back in the ballgame.”
Hoffman’s campaign, by the way, has a new Internet video trumpeting his endorsement by Paul Vallas. Take a peek…
* Perhaps encouraged by a fairly good review of his budget rhetoric by the Chicago Tribune editorial page yesterday, Andy McKenna took the pledge today. From a press release…
Republican Gubernatorial Candidate Andy McKenna announced today that he signed the Americans for Tax Reform Taxpayer Protection Pledge, vowing as Governor to “oppose and veto any and all efforts to increase taxes.”
“I am pleased to sign the Taxpayer Protection Pledge because it is wrong to ask the taxpayers of Illinois to do more when their government has done so little,” said McKenna. “I challenge my opponents to sign this pledge and make a commitment to the hardworking men and women of this state that they will not raise taxes.”
That editorial, by the way, praised an idea by another candidate to halve the income tax, while bemoaning the fact that Illinois is $4.9 billion behind in its bills. The edit board has officially lost its freaking mind.
* I’ll have much more for subscribers tomorrow, but Gov. Pat Quinn has been trying to appoint a Latino to the ICC for months, and he finally found somebody. Whether Ald. Manny Flores survives is another matter. From a press release…
Governor Pat Quinn today announced the appointment of Manuel Flores as Chairman of the Illinois Commerce Commission (ICC). Flores, a Chicago alderman, brings to his new position a deep understanding of public service, a record for advancing pro-environmental initiatives, and a commitment to expanding broadband Internet access throughout Illinois.
“Manny Flores is an experienced and highly-regarded public servant who will provide a fresh viewpoint at this very important Commission,” said Governor Quinn. “He excelled in the Chicago City Council and will do so at the helm of the ICC.”
CUB calls the appointment “good news” for consumers, but this is not a slam-dunk in the Senate as of yet. Still, it’s only tangentially related to the battles between South Side Latinos that I told subscribers about weeks ago. Carol Marin has some on that today.
* Democrat Terry O’Brien is the first Cook County Board President to air TV ads. This is a significant buy on Chicago network and cable. Details for subscribers tomorrow. Rate it…
* More campaign stories and other stuff that I didn’t post earlier…
* McQueary: Macellaio speaks on Burke, quiet on ghosts: So when Evergreen Park Library Board President Kelly Burke decided to run for the 36th District House, she wasn’t surprised when a pal of her opponent invited her for coffee. At a local donut shop, Burke was given opposition research done on her to try to scare her out of the race. The research indicated she cheated on her property taxes. For more than five years, she received a senior citizen exemption on her tax bills for which she did not qualify. The exemption knocked about $200 annually off her $11,000 tax bill.
Gov. Pat Quinn admitted Wednesday that state corrections officials made a “mistake” in putting hundreds of inmates back on the street after just a few weeks in prison and said he didn’t know about his own administration’s cost-cutting decision beforehand.
Stung by the politically embarrassing revelations, the governor blamed his hand-picked corrections chief, Michael Randle, for exercising “bad judgment” but said he will not fire him.
Gov. Pat Quinn’s conclusion that it was a “big mistake” for his Corrections Department to release more than 1,700 inmates early still leaves major unanswered questions about the decision, his role and the implications for the state’s overcrowded prisons.
Quinn sent mixed messages Wednesday when he announced he was halting the secret program that allowed some inmates out of prison after serving only two or three weeks. While condemning the program, Quinn repeatedly pointed out that the 1,718 inmates let out early spent an average of just 37 fewer days in prison than they would have.
The early release, dubbed “MGT Push” because it involves granting meritorious good time to the prisoners, involved two steps. Quinn addressed only one, a decision to abandon the Corrections Department’s previous policy of requiring all inmates to serve at least 61 days before they could be considered for release.
The Democrat said nothing about the other part — granting prisoners time off for good behavior the day they step into prison, before they’ve had a chance to display any behavior at all. A Corrections spokeswoman says that is no longer done, but records raise doubts about that claim.
Sen. Kirk Dillard tosses in his two cents via a press release…
According to a hastily arranged announcement, the Quinn administration acknowledges that 64 former inmates have allegedly committed new crimes, some violent, since the Administration ordered the secret release without notifying victims or law enforcement. New crimes include assault, domestic violence, and firearm possession by a felon.
* The Question: Based on what we’ve seen so far, should Gov. Quinn fire Department of Corrections Director Michael Randle? Explain fully, please.
* The Illinois Executive Ethics Commission has fired a major warning shot at state employees: Do a little campaign work on state time for your boss and you could be fined…
Three aides to former Gov. Rod Blagojevich have been fined by a state ethics panel for campaigning for Barack Obama on the taxpayers’ dime.
Sheila Nix, Abigail Ottenhoff and Rebecca Rausch broke the law in 2007 when they issued a press release supporting Obama on behalf of Blagojevich, the Illinois Executive Ethics Commission ruled.
The ruling came in the case of three employees of then-Gov. Rod Blagojevich’s communication staff who wrote a memo under the governor’s signature in February 2007 praising the nascent presidential campaign of fellow Illinoisan Barack Obama. The ethics commission, responding to a complaint filed in September 2008 - before Obama’s election and the ethics allegations that led to federal charges against Blagojevich and his eventual ouster - ruled that the memo actually constituted “political activities” and, since it was created on state time and state-owned computers, it represented a violation of state law.
The release itself - which the three employees testified the governor never saw or discussed with them - was cloaked in the guise of a statement of pride for the hopes of a state’s favorite son, but with a particularly Blagojevichian flourish, it added “Senator Obama supports the very best of these Democratic values; they are values that he and I share, values I know he will fight for.”
Phrases like that, the ethics commission said - as well as others stating Blagojevich was “excited and proud to support Senator Obama in his bid for the presidency” - cannot be read in any other way than as a statement of political support.
“The prohibition of political activity would mean nothing if a State employee could use State time and equipment to support a political candidate as long as he or she made clear that the support was based on the candidate’s priorities or policies,” the commission wrote. “Indeed, a fundamental aspect of campaigning is to attempt to convince the electorate that they should support the candidate because of his or her policies or priorities.”
I remember that press release and recall thinking that it sure looked like a campaign release to me. There can be a fine line between governing and politics, but this seemed to cross that line. But we have to be careful not to take this too far. Our entire system is based on the political process. They can’t always be easily separated, nor should they.
Illinois Governor Pat Quinn is allowing WBEZ to document life inside the state’s juvenile prisons. The permission resolves months of haggling over the issue.
WBEZ requested the access to see if the Department of Juvenile Justice is living up to its mission. The department was created three and a half years ago to help rehabilitate kids but critics say little has changed.
Quinn had originally denied our requests to visit the facilities but several attorneys on the governor’s staff recently sat down with WBEZ and a civil rights attorney, Craig Futterman, from the University of Chicago’s Mandel Legal Aid Clinic. Futterman has been volunteering his services as WBEZ has been seeking access.
It’s about time.
* The State Journal-Register, like most editorial boards, misses the point…
When state budget time arrives this spring, lawmakers once again will be scrambling to find new money sources that don’t involve raising taxes. Last year’s magic solution was the legalizing of video poker in bars and numerous other public places. To us, this was one of the most irresponsible and cynical votes on record. It’s not by accident that these machines have earned the nickname “the crack cocaine of gambling.”
The problem has been that taverns, fraternal clubs, truck stops and restaurants all over the state currently pay out illegally on those video poker machines. Perhaps the SJ-R edit board should walk over to their local VFW hall to see for themselves how the current system works. The only real day to day “regulation” is done by the bartenders who “regulate” who gets the payouts and who doesn’t (if we know you, you get cash, if we don’t, you don’t). The Gaming Board appears to be taking a super-strict, slow-it-down approach to legalization, so there’s no mad rush to put these machines on every corner. A little perspective is in order.
A Tribune poll last month of likely Republican primary voters found half believe more restrictions should be placed on abortion, 32 percent said current regulations should remain in place and only 8 percent said fewer restrictions should be imposed.
That split is definitely not as clear-cut as some on the Right might have you think. Only half of all Republicans want more restrictions, while 40 percent said do nothing or loosen restrictions? This is just another reason why running too far to the right in this state can be a liability. Occasionally, some will get through, but the trend is obviously not their friend here.
The number of abortions performed in Illinois reached a 10-year high in 2008, newly compiled state records show. […]
In 2008, the most recent year for which data are available, figures from the Illinois Public Health Department show that 47,717 abortions were performed statewide.
That represents a 5 percent increase from 2007. And it’s the most abortions in Illinois in a year since 1998, when 49,403 women were reported to have had abortions.
The state’s main provider of abortion services has heard from its clients that the economy is a factor in their decisions, said Steve Trombley, president and CEO of Planned Parenthood Council’s Chicago area chapter. […]
Robert Gilligan, executive director of the anti-abortion Catholic Conference of Illinois, attributed the 2008 increases, in part, to the opening of Planned Parenthood’s Aurora clinic in November 2007.
The same unconfirmed rumors about Mr. Kirk’s sexual orientation have been regurgitated quite a bit by the ideological swamp that is the blogosphere. Then there is the right wing’s overriding rage that Mr. Kirk, who represents a moderate north suburban district, supports abortion rights.
The diehards appear to believe that anything is fair game when it comes to preventing what they deem murder.
I’m not sure that’s an effective segue. I’m not sure it’s even comprehensible.
* Speaking of polls, my weekly syndicated newspaper column was linked here last week, but not posted. Here it is…
According to two recent polls taken by Rasmussen Reports and one by the Chicago Tribune, Gov. Pat Quinn has a detectable and significant problem with women voters, but a new development in the campaign might help the governor overcome this gender gap.
Rasmussen recently matched Republican gubernatorial frontrunner Jim Ryan against Democrats Gov. Pat Quinn and Comptroller Dan Hynes. Ryan outpolled Gov. Quinn by seven points, 46 to 39, but the former Republican attorney general trailed Hynes by two points, 40 to 42.
What’s going on? Well, the poll’s internals show a stark difference among women voters. Ryan leads Quinn 45 to 36 among women, but Hynes reverses the result and leads Ryan 42 to 32 with women. That’s a huge difference, but it seems to hold up when compared with other recent polling.
An earlier Rasmussen poll pitting Hynes and Quinn against the other Republican gubernatorial candidates showed Hynes doing far better with women than Quinn in every race.
The Chicago Tribune’s recent poll showed Quinn doing much worse with Democratic women than men on several issues. While 56 percent of Democratic men approved of Quinn’s handling of the state budget, just 38 percent of Democratic women did so. And while 45 percent of Democratic men approved of Quinn’s handling of ethics reforms, just 39 percent of women approved. Far more men, 40 percent, said Quinn was the better candidate to “eliminate” corruption in state government than women, 29 percent.
What appears to be happening is that many of Hynes’ supporters, particularly females, are so turned off by Quinn that they’re willing to at least say they’ll vote for the Republican Ryan rather than support the incumbent governor. Many of those voters, particularly harder-core Democrats, will eventually come “home.” For instance, Rasmussen’s poll has Quinn leading Jim Ryan 55 to 26 among black voters, while Hynes leads Ryan 81 to 9 among African-Americans. Some voters, however, may never come back. Rasmussen has Quinn virtually tied with Ryan (41 to 39) among moderate voters, while Hynes holds a strong 58 to 29 lead over Ryan among moderates.
Even so, Hynes hasn’t managed to translate this gender gap into a real electoral advantage. Quinn is leading Hynes 43 to 25 among Democratic women in the Tribune poll. That lead among women is a far smaller margin than the 57 to 19 advantage Quinn holds over Hynes with men, but it’s still a big lead.
Taken together, what the Tribune and Rasmussen polls probably show is that there is at least a little bit of flux left in the Democratic primary race, but that time is not on Hynes’ side. Women tend to outnumber men in Democratic primary voting, so Hynes will have to press this issue hard in January. It’s still doubtful that Hynes can find the right message and, more importantly, has enough time to pull it off by Feb. 2.
Making life even more difficult for Hynes was that Quinn was endorsed by the pro-choice group Personal PAC last week. The political action committee has a truly gigantic contact list and a bulging bank account. If the organization totally activates for Quinn, the governor’s problem with Democratic women could dissipate.
Meanwhile, why is Jim Ryan doing so much better than the other Republicans against Quinn and Hynes? Rasmussen polls showed both Democrats way ahead of all Republican candidates except Ryan.
Ryan is simply much better known and liked, even though he entered the race late, has little money and is not campaigning near as hard as most of the others.
The Tribune poll showed that 55 percent of Republican voters knew enough about Ryan to express an opinion about him (and they like him a lot), while only 27 percent on average knew enough about his top three GOP rivals to rate them.
Rasmussen had Ryan taking 88 and 87 percent of the Republican vote against Quinn and Hynes, respectively, while the other three GOP candidates scored a 70 percent average of the Republican vote against the two Democrats. The same goes for independents, conservatives and almost every other age group and demographic.
The good news for Ryan is the primary is so early that his huge name advantage could be enough to win this thing. The Feb. 2 election will be upon us before many people are even paying attention. The bad news? Well, there is no bad news in these polls for Ryan as of now.
* Except for Jim Ryan, most of the top GOP gubernatorial candidates told the Associated Press that they’re against legalizing medical marijuana…
“Legalizing medical marijuana appears to me to be nothing more than moving us down the slope of legalizing marijuana,” [Sen. Bill Brady] said. “According to experts, there are adequate medical alternatives.”
Brady also believes the federal government should be the pharmaceutical regulator. Illinois does not have the resources to determine what treatments are viable.
To Sen. Kirk Dillard, a Hinsdale Republican, enforcement is the key. He opposes medical marijuana, saying authorities are concerned about how they will police the law.
Andy McKenna, a Chicago businessman and former Illinois Republican Party chairman, said he “would have opposed the legislation presented to the Senate.”
Frontrunner Jim Ryan is the only major candidate who is keeping an open mind. Ryan’s spokesman told the AP he would be open to a “narrowly drawn” bill. Adam Andrzejewski would’ve backed the bill which passed the Senate last year, and Dan Proft is also for some sort of legalization. Bob Schillerstrom is against.
Gov. Pat Quinn wouldn’t support specific legislation, but indicated he’d be open to it. Dan Hynes didn’t directly answer the question.
