* Comptroller Dan Hynes’ office has just released a shocking new report on the state’s finances. It’s pretty much hopeless…
Hynes said Illinois had $5.1 billion in unpaid bills at the end of December. Add to that $2.25 billion in short-term loans the state must repay soon, and another $1.4 billion in unpaid health care bills that have not yet been sent to the Comptroller’s Office, and the state’s effective bill backlog climbs to more than $8.75 billion. [Emphasis added]
Yikes.
The payment delays are horrendous…
Suppliers of goods and services to the state, including health care providers and other critical social services are waiting 92 business days to be reimbursed – or more than 4 ½ months. That delay is almost double the 48 business-day delay at this time last year.
Oof.
A few backlog details…
The backlog includes grants to school districts and pre-school programs totaling $1 billion, university and community college payments in excess of $775 million and local government and transit district payments of more than $478 million.
If this keeps up for much longer, the ripple effect down the governmental chain will turn into a tidal wave.
There’s just no good news here…
The state’s cash flow position already has declined by $4.1 billion over the past year, Hynes said. He identified several factors in the decline of the state’s cash flow position, including continued weakness in the state’s economy-driven revenues, a structural imbalance in the enacted FY2010 budget, and the failure to address the deficit in the FY2009 budget, resulting in the state using its first $3.9 billion in revenues this fiscal year on last fiscal year’s bills.
Though there is evidence of improved economic conditions nationally, further declines in Illinois’ economy-driven revenue sources this year continue to threaten the state’s financial stability. State corporate income tax receipts were down 16.3 percent, sales tax receipts decreased 12.6 percent and individual income tax receipts fell 7.6 percent, compared to the same period last year
A prediction…
“Without major changes in the way Illinois collects revenues and how it spends those dollars, the state will enter FY2011 on July 1 with the largest amount of unpaid bills from the prior year in its history,” Hynes said.
Illinois must repay about $2.25 billion of cash-flow certificates in the coming months that Fitch warned would leave the state with nearly $6 billion of accounts payable at the end of fiscal 2010 on June 30. [Emphasis added]
That’s up from the $3.9 billion lapsed at the end of last fiscal year.
Rating agencies have taken the state to task for the delay, citing it as a factor in negative rating actions because it has exacerbated the government’s growing liquidity problem and poor financial performance.
“We were anticipating some movement towards improving the state’s financial picture by October or November,” said analyst Edward Hampton. “The planned deferral of legislative action to address fiscal 2010 imbalances until at least February or March leaves little time in the fiscal year to take actions to materially reverse the trend of financial weakening.”
* 2:54 pm - The legislative Commission on Governmental Forecasting and Accountability just voted 7-4 to approve the closure of the almost empty Thomson state prison so it can be sold to the federal government. Sen. Dave Syverson and Rep. Rich Myers were the only two Republicans to vote for the plan. Syverson has touted the economic impact of the federal project.
The vote is nonbinding, but had some symbolic importance since it’s become such an intense state and national political football. Gov. Quinn and Sen. Dick Durbin have already issued a press release praising CoGFA for its bipartisan vote…
“We are pleased the bipartisan Commission on Government Forecasting and Accountability has endorsed the sale of the Thomson Correctional Center to the federal government and rejected the partisan rhetoric.
Elected officials, community and business leaders and the residents of Northwest Illinois are wholeheartedly supporting this proposal because they understand that this is an opportunity to create up to 3,800 jobs and generate more than $1 billion in a region that desperately needs both.
Fully utilizing Thomson and upgrading this facility to make it the safest prison in the nation will not jeopardize the safety and security of our country or our state; we would never endorse a plan that would do so. Despite the fear-mongering and nay-saying of a vocal few, we stand with state, county and local law enforcement officers and state’s attorneys from across the area, and with our nation’s military commanders, who know that this is about making our country safer by removing the deadly recruiting tool that Guantanamo has become.
This should not be a political or partisan issue. This is about doing what’s right for our troops, for our national security and for the people of Illinois. We will continue doing everything we can to make this sale a reality and bring the jobs and other economic benefits to our state.”
Here’s the rollcall, with Republicans in red and Democrats in blue…
Bellock No
Brady No
Frerichs Yes
McCarthy Absent
Murphy No
Myers Y
Nekritz Y
Poe N
Riley Y
Schoenburg Y
Syverson Y
Trotter Y
* 3:17 pm - From AFSCME…
AFSCME believes Thomson should be used for its intended purpose: to relieve dangerous overcrowding in the state’s maximum-security prisons. It’s very disappointing COGFA did not agree with our view. The panel did, however, approve language urging the governor to consider “prisoner overcrowding and the impact on staff” in the prison system going forward.
* 4:06 pm - Sen. Kirk Dillard…
“Today’s vote is unfortunate. Terror suspects should stay at Guantanamo. Importing jobs should not equate to importing terrorists. The working families of Illinois deserve better solutions for our economic problems than this. Pat Quinn’s decision once again demonstrates the pitiful jobs climate in Illinois and his lack of urgency to attract and create private sector jobs.
“As governor, my highest priority will be balancing our budget and restoring confidence in state government so that we can make Illinois an employer-friendly state.”
In the wake of a court ruling that barred the state from collecting increased lobbying fees that went into effect January 1, Secretary of State Jesse White’s office has pulled the lobbyist registration and reporting system from its Web site.
Both the ACLU and the Illinois Society of Association Executives sued White over the fee increase, claiming it was an unconstitutional tax on free speech.
Pamela Tolson, executive director of the Illinois Society of Association Executives, said she had already advised her members not to pay the increased fees after a court granted a temporary halt on collection. Now, she says lobbyists also may not be required to report their spending for the last six months by the deadline at the end of this month. […]
It appears that White is washing his hands of the entire situation until the courts sort it out. If that doesn’t happen before next week, lobbyists will return to Springfield for the spring legislative session without having registered and unsure of what reporting requirements they face in the near future. (White’s website does say that after the court makes its final decision, lobbyists who register within two weeks will be retroactively registered from January 1.) So the result, for the time being, is that an attempt to create more transparency has led to having none.
The Illinois Campaign for Political Reform has more over at Illinoize…
…while the federal injunction applies only to non-profits, the Secretary of State ended registration for all lobbyists. They could have kept registration open, collecting the $1,000 fee from for-profit entities and no fee from non-profits, or they could have collected the old $150 fee from non-profits and, after the two suits were concluded, adjusted the fee accordingly. Instead, it now appears that Illinois is the only state in the country without lobbyist registration.
Let’s hope this gets resolved soon.
Again, I’ll have more tomorrow for subscribers.
* The News-Gazette has a fascinating look at the U of I’s budget during part of the Great Depression. Go read it all.
On March 1, 1933, the U of I ordered 10 percent pay cuts - far higher than the U of I’s plan announced this week to trim many paychecks by 2 percent via furloughs. And then the U of I really fell on its sword…
A month after the UI salary reductions went into effect in 1933, board members and administrators traveled to Springfield and asked for a two-year appropriation (the state then operated on a biennial budget) of $7.8 million – 30 percent less than what was the existing budget and the lowest spending plan at the university since 1919. Included was an additional salary cut of 5 to 6 percent for highly paid faculty and administrators.
Don’t bet on that happening again any time soon.
* And Zorn whacks Cook County State’s Attorney Anita Alvarez but good today. Go have a look-see.
* Other stuff that I didn’t get to today…
* Rivals criticize Giannoulias touting Bright Start success in TV ads: Only 3 percent of the families with money in Bright Start had all their money invested in Core Plus — the one fund out of 21 funds that suffered devastating losses. Ironically, Core Plus was supposed to be one of the least risky — designed for parents of upperclassmen shortly bound for college. Giannoulias traded letters with Oppenheimer throughout 2008 as the funds plummeted. His opponents say that as a former banker, Giannoulias, better than anyone, should have known to pull the plug sooner on the fund which was heavily invested in risky mortgage-backed securities.
* The governor just announced a new bureaucrat for the Department of Corrections. From a press release…
January 6, 2010. Governor Pat Quinn today announced that Michael J. McCotter, a 37-year law enforcement veteran, has been named to the recently announced position of Chief Public Safety Officer at the Illinois Department of Corrections (IDOC).
McCotter, whose experience includes a number of high-ranking positions in the Chicago Police Department, will evaluate and oversee implementation of IDOC’s statutorily-sanctioned meritorious good time and electronic home-detention programs.
Notice the ever so subtle dig at the General Assembly. What the release doesn’t mention is that these are not legally mandatory early outs. This is a discretionary program. And the director and the administration thoroughly screwed it up.
Quinn is also putting one of his most trusted guys in charge of watching the day to day operations…
Governor Quinn has designated Sean Vinck to be a special administrator for IDOC, where his primary task will be to assist in the day-to-day management of the agency. He will report to Governor Quinn and Jerome Stermer, Chief of Staff to Governor Quinn. Vinck will retain his position as Chief of Intergovernmental Affairs for the Office of the Governor.
In other words, Quinn will essentially have his own set of eyes over there at DoC.
I certainly hope the governor doesn’t think that these personnel moves are enough. Heads absolutely have to roll.
* Meanwhile, Dan Hynes gave a speech today at the City Club that is the most powerful case I’ve yet seen for why he decided to run against Quinn. You can read all the provided excerpts by clicking here, but here’s some of it…
While I do not begrudge [Gov. Quinn] the circumstances under which he assumed office, I do not accept that those circumstances prevented him from doing what’s right for the people of Illinois. In fact, I believe the circumstances presented a unique opportunity, and now one that is lost.
Think about it. After Rod’s departure, never before have the people and institutions of Illinois wanted so much for one man to succeed. The right leader might have taken advantage of the situation to get things done – to be the leader who could shepherd through the hard choices that have too long been ignored.
The people of Illinois were rooting for Pat Quinn. And Pat Quinn struck out.
This isn’t a critique of Governor Quinn as a person. It’s an indictment of his leadership, and it is based in fact.
When you have the opportunity to lead – when leadership is what is needed most - You don’t make your signature priority a 50 percent tax increase on the middle class, particularly in a recession.
You don’t change your position two, three, or even four times on that same tax hike, in the process sowing doubts about your sincerity.
You don’t tell the people of Illinois that nothing matters more than a jobs bill, so you would never play politics with it – and then hold up its passage for a month to try and pressure lawmakers into supporting your tax hike, losing a construction season in the process.
You don’t call a watered-down ethics bill a “landmark,” and then turn around and veto it.
You don’t continue to rely on a government full of Blagojevich appointees, including a budget team that makes AIG look savvy.
You don’t try to negotiate in public a plan to borrow half a billion dollars, and then deceive us about the details to try and browbeat a political opponent.
You don’t brazenly put off addressing the budget crisis until after an election, when it costs us money every single day.
And you certainly don’t, at the very same time, secretly release 1,700 dangerous criminals at any cost; then offer vague, contradictory explanations for what you knew and when you knew it; and then stonewall the people you serve.
All the while, the people of Illinois have lost jobs, seen their children’s futures further mortgaged, and watched their streets become less safe.
Now ask yourself if you deserve another year – or 4 more years — like that.
To those who will somehow say that raising these issues is negative – or a naysayer? I say it’s just the opposite. Because this is the reality that we’re living, and what I believe is that we can do better. In fact, what’s negative is to condemn this conversation as somehow inappropriate — because that says that we – you and I — should be happy with what we’ve got and ask for nothing more.
That’s what it says to all of us who care about Illinois. Who are concerned about what will be left for our kids. And who believe that we do deserve better, and that better needs to start – right now.
I think that all we’re looking for are good ideas – and leadership that reflects our own common sense and responsibility. Because that’s how we’re going to mend the wounds of the past few years, solve the problems of this decade, and respond to the challenges of our times. […]
But to make any of these things reality – to bring sanity and fairness to our budget, to restore jobs and grow our economy, and yes, even to ensure that our government is ethical and working for us, the people it serves – we need new leadership
* Illinois Set For $3.5B GO Issue: After spending the week in a heavy marketing campaign that includes international buyers, Illinois on Thursday or Friday will price nearly $3.5 billion of taxable general obligation bonds with a five-year maturity to help cover its fiscal 2010 pension payments.
* Wednesday Illinois political docket: State panel to vote on prison sale for Gitmo detainees
* I mentioned this yesterday, but I’m gonna repeat it today: We need a thorough legislative investigation, with subpoena power, of this early release program. Literally giving convicted attempted murderers a Get Out of Jail Free card is beyond the pale…
A west suburban man sentenced to prison for murder conspiracy was freed early under a controversial state program that Gov. Quinn called a “mistake” and discontinued last week, a Chicago Sun-Times analysis has found.
Also sprung early were 20 other people with killings or attempted murder in their criminal backgrounds, records show. Six were convicted of murder, five of second-degree murder, one of manslaughter, one of murder conspiracy and seven of attempted murder.
Those 20 inmates already had served their sentences for those crimes but had been sent back to prison for committing others.
Under the discontinued program — called “MGT-Push” or “accelerated meritorious good time” — inmates’ past crimes weren’t factors in whether they should be eligible for early release. By law, Quinn’s corrections chief, Michael Randle, considered only the offenses for which inmates were currently in prison, officials said Tuesday.
The Dept. of Corrections claims state law forbade them from using those prior convictions in determining whether the bad guys got an early release. You gotta be kidding me. This was a discretionary program concocted by the administration. The director could essentially grant the good time credits to just about anyone he wanted. And, man, did he hand out some doozies…
A Sun-Times review of the records of the released inmates showed Michael Rodriguez, 36, was convicted of murder conspiracy. In 2007, Rodriguez was one of 31 Latin Kings gang members charged in connection with 22 killings in the Aurora area over the past two decades. He and three others were charged in Kane County with the 1990 murder of Albert Gonzalez, 18.
Rodriguez was in the county jail between June 28, 2007, and Oct. 29, 2009 — jail time that was applied to his 66-month prison sentence.
He served 40 days in state prison before he was paroled early on Dec. 8. All told, he spent less than half his sentence behind bars.
That’s just insane. Truly. Insane.
Again, we need a legislative investigation. Pronto. The citizens of this state have a right to know whether their government - and their governor - are endangering their lives due to gross incompetence.
* I told subscribers about this yesterday morning, along with some details of his TV ad reservation…
Democratic Comptroller candidate Raja Krishnamoorthi says his bank account is approaching nearly $1 million as he tries to win his party’s nomination in his first run for state office.
Krishnamoorthi’s campaign on Tuesday reported he raised more than $900,000 in 2009 – apparently setting an Illinois record for non-incumbent candidates for comptroller.
Krishnamoorthi spokesman Mark Schauerte said most of the money came from individual donors and the funds will pay for a statewide television ad campaign starting later this month.
Krishnamoorthi is a former deputy state treasurer who lives in the Chicago suburbs. He faces state Rep. David Miller of Lynwood and Wilmette lawyer Clinton Krislov in the Democratic primary.
That’s gonna be tough to match, unless Krislov dumps a ton of his own cash into the race. Quite impressive, indeed.
* In other campaign news, Patrick Hughes is up with a new cable TV ad. As subscribers already know, this is a very modest buy. Rate it…
* Jim Ryan’s gubernatorial campaign is attacking Andy McKenna for preparing to run a spate of negative TV ads. From a press release…
A media report indicates that Andy McKenna is ready to launch a deep attack ad to revive his floundering campaign.
The Illinois news media needs to immediately ask Andy McKenna why his blind ambition is leading him to do exactly what he said as Illinois GOP chairman should not be done—unfairly attack his Republican opponents.
They should ask him why anyone in Illinois would believe any “pledge” he takes now when the upcoming ad he plans to run violates a pledge he asked Republican candidates to sign for the 2006 elections?
—In 2005, McKenna, as Illinois GOP chairman, asked candidates for office to sign a pledge to not condone “any misrepresentations, distortions, malicious untruths, unfounded accusations or innuendos about my opponent or my opponent’s family.” (Illinois Republican Party “Code of Conduct” memo, Dec. 22, 2005, authored by Andy McKenna).
—Less than a year ago, McKenna said this about attacking members of his own party: “Primaries of themselves aren’t bad. They’re bad if they become negative and people use it to destroy other candidates.” (Chicago Tribune, April 13, 2009)
Yet, according to the media report, McKenna is ready to launch a TV ad that says Jim Ryan has a different position on taxes than he does. He knows that is not true. He knows that every Republican candidate for governor has said repeatedly they will not raise taxes. He knows that Jim Ryan as a candidate for governor in 2002 proposed a constitutional spending cap and has proposed the same cap in 2010.
McKenna is taking the low road after airing millions of dollars of ineffective ads photoshopping bad haircuts on people. So what does he do: Attack the person who is running nearly 20 points ahead of him in the polls and the first Illinois Republican in a decade to lead a Democrat for Governor in a reputable poll. The Rasmussen poll late last month showed Jim Ryan leading Pat Quinn by 7 points.
He needs to be held accountable for his hypocrisy. He needs to stop hiding behind his Rod Blagojevich-like remote control TV campaign.
For his part, Andy McKenna uses House GOP Leader Tom Cross to set up his impending attack ads. From a press release…
This week Republican Gubernatorial Candidate Andy McKenna announced he signed the Americans for Tax Reform’s Taxpayer Protection Pledge and challenged his opponents to do the same. However, according to the Daily Herald, both Jim Ryan and Kirk Dillard have refused to sign the pledge.
“Now more than ever, we need a Governor absolutely committed to holding the line on taxes and enacting real reforms to move Illinois in the right direction,” said House Republican Leader Tom Cross.
Jim Ryan’s history of supporting tax increases includes endorsement of House Bill 750, a $5.5 billion tax increase on Illinois families and chairing a campaign in DuPage County to increase the sales tax. Kirk Dillard was also a key vote in Springfield to increase the sales tax in DuPage County.
“I am supporting Andy McKenna because he is the one candidate for Governor that joins me in opposing tax increases and demanding true economic reform, Illinois can settle for nothing less,” added Cross.
* Sen. Matt Murphy, McKenna’s running mate, was endorsed by Senate GOP Leader Christine Radogno today.
* I’m not gonna comment about this tiny radio buy, and I hope you don’t, either. We’re talking two spots a day on a few Chicago radio stations, so it’ll barely get noticed…
Andy Martin, the U.S. Senate candidate who made waves by claiming his opponent - U.S. Rep. Mark Kirk - was gay, is at it again, this time attacking Kirk for covering up pedophilia in the United States Congress. The minute-long ad began airing on local radio today. So how did Kirk - and Dennis Hastert - cover up pedophilia? By not stopping Mark Foley’s infamous affairs with underaged staffers. Martin hits a new nadir when, in the ad, he makes clear that, “Kirk is not a pedophile,” but then feels compelled to add that since Kirk helped to “cover up” Foley’s trysts, that makes Kirk “a de facto pedophile.” No. Really. He says thatt. Listen to the ad below:
* Related…
* Bid for Thomson injunction flops: Republican state comptroller candidate William Kelly’s bid for an injunction against the Thomson Correctional Center deal that would bring Guantanamo Bay prisoners to Illinois was soundly rejected Tuesday after he arrived in court without legal representation.
* When Dan Hynes started running a negative ad slamming Gov. Pat Quinn over the botched early prisoner release program, I figured that Quinn would return the favor by dredging up the Burr Oak Cemetery tragedy. It happened this morning. You can probably safely bet that this issue will wind up in a TV ad.
From a press release…
The Quinn for Illinois campaign is calling on Comptroller Dan Hynes to give honest answers to consumers about the Illinois Funeral Directors Association Pre-Need Trust Fund – a Madoff-style Ponzi scheme that flourished for almost a decade under the Comptroller’s direct supervision.
“When Dan Hynes claims in his TV ads to be a good fiscal manager, Illinois voters need to take it with a $100 million grain of salt,” said Quinn campaign spokeswoman Elizabeth Austin.
The basic issue is simple: In 2001, Dan Hynes learned that the IFDA’s pre- need trust fund was losing money. In just one year, the fund balance had dropped from an $18 million surplus to a troubling deficit.
Yet, according to legal filings and newspaper accounts, Comptroller Hynes waited eight long years before taking action to protect consumers. As a result, an estimated $100 million in consumer dollars vanished from the fund, and hundreds of family-owned funeral homes throughout Illinois are facing serious financial losses – even bankruptcy.
“We all know that Dan Hynes waited far too long to act on disturbing reports about conditions at the Burr Oak Cemetery,” Austin said. “The IFDA scandal shows that Comptroller Hynes has a decade-long history of ignoring serious problems – with disastrous consequences for 50,000 Illinois consumers.”
Austin noted that Hynes has refused to provide documents requested by Bruce Rushton, a reporter for the Springfield State Journal-Register, that might shed light on the Comptroller’s delay in acting to end the fraud and protect consumers.
“When well-respected journalists file legitimate requests for information from his own office, Comptroller Hynes loses his enthusiasm for transparency, accountability, and the public’s right to know,” Austin said.
Gov. Pat Quinn on Tuesday suspended a second early prison release program, this one for nearly 1,000 nonviolent offenders, amid growing questions about the administration’s attempt to ease the state’s cash crunch by cutting costs in the Department of Corrections.
About 170 prisoners had been released so far under the program Quinn announced in September, according to the prison agency.
Asked why the program was suspended, representatives for the prison department and Quinn’s office would only say it was pending a review of all early release programs to be done when the governor appoints someone to the new position of chief public safety officer in the corrections agency.
People are watching more television than ever. As the audience grows, the percentage watching ad supported cable television grows even more. Cable is no longer a secondary medium; rather it has become an essential marketing medium. Smart political campaigns are realizing that local news alone does not attract all the potential voters. Top entertainment, news and sports programming on Comcast Spotlight bring additional reach to a traditional broadcast political news buy. Spot cable users can pinpoint voters by political party preference, age, gender and voting district. If needed, one can reach the entire state of Illinois via Comcast Spotlight and National Cable Communications.
Now for the first time ever political advertisers can harness the online power of Comcast.net, the #1 internet service provider in the Chicago market. When the right message gets to the right audience, campaigns maximize impact and reduce waste.
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.
