Mayor Daley accused Gov. Quinn today of a political double-cross regarding the governor’s proposal to cut $300 million from the share of state income=tax revenues earmarked for local government.
Daley said that, just weeks before the Feb. 2 primary, Quinn went before the Metropolitan Mayors Caucus and pledged that the cities’ share would remain at 10 percent. […]
“Right before the election, he came before the Metropolitan Mayors Caucus, and he told the mayors it would not be cut,” Daley said. “This is a serious financial crisis, but it didn’t start after the primary. This is way before the primary. Then, coming before the Metropolitan Mayors Caucus and saying, ‘I am with you. I support you.’ Nothing has has changed from prior to the primary to after the primary.”
Oak Park Village President David Pope, who was at the gun news conference at Chicago Police Headquarters, said he also recalled Quinn saying he wouldn’t cut income tax revenues distributed to cities and villages.
“The state needs to take a very serious look at the expense side of its ledger,” Pope said, adding that his village has laid off 15 percent of its workers in the past two years.
“This is basically a tax shift, and what it will do is force the localities to increase taxes, because we’ve already taken the fat out of the cost of delivering services at the local level,” Pope said.
* This has to be one of the stranger press releases I’ve ever received from the US Attorney’s office. Apparently, they busted Bill Dugan on a misdemeanor charge for soliciting a $900 animal feeder for his Maryland buffalo farm from an employer. Dugan, you probably know, was president of Local 150 of the Operating Engineers for many years.
Dugan’s farm was raided a couple of years ago by the feds, who carted off a bunch of documents. He retired soon after. Here’s the announcement, made by three bigtime crime fighters, the US Attorney, the top dog in Chicago’s FBI and the “Special Agent-in-Charge of the US Department of Labor Office of Inspector General in Chicago.” OK, two bigtime crime fighters and one other guy…
The retired leader of a regional labor union local was charged today with violating federal labor law by allegedly demanding and accepting livestock feeders from a company that employed the union local’s workers for his buffalo farm in Maryland. The defendant, William E. Dugan, was charged in a single-count criminal information filed in U.S. District Court, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Dugan, 76, of Hancock, Md., and formerly of Mt. Prospect, was president and business manager of the International Union of Operating Engineers Local 150, headquartered in Countryside. The 23,000-member local represents workers in construction and a variety of other industries in Indiana, Illinois and Iowa.
Dugan will be ordered to appear for arraignment on the misdemeanor charge, which is violation of the U.S. Labor-Management Relations Act, at a later date in U.S. District Court.
According to the charges, in April 2005, Dugan demanded and accepted concrete buffalo feeders valued at more than $900 from Company A, whose workers were represented by Local 150.
The government is being represented by Assistant U.S. Attorney Patrick King. Other Labor Department branches that participated in the investigation are the Employee Benefits Security Administration and the Office of Labor Management Standards.
The labor law violation carries a maximum penalty of a year in prison and a $100,000 fine. If convicted, the Court would determine a reasonable sentence to be imposed under the advisory United States Sentencing Guidelines.
Dugan was a wealthy man, so it was stupid and arrogant to be doing something like “buffaloing” an employer into buying some cheap concrete feeders. But that this long federal investigation has resulted in such a minor charge makes one wonder why they bothered.
In a statement, Joseph Duffy, the attorney for William Dugan, the retired president and business manager of Local 150 of the International Union of Operating Engineers, said Mr. Dugan has “acknowledged receiving a thing of value from a contractor worth less than $1,000, specifically concrete piping,” and will plead to misdemeanor charges in the matter as part of a deal with federal prosecutors. […]
Sources close to the matter said further charges are likely in the case. But the one charge alone of violating federal labor law carries a potential penalty of up to a year in prison and a $100,000 fine.
So, he agrees to take the misdemeanor but more charges may be likely?
* Ameren’s request for a $130 million Illinois rate increase has drawn all sorts of criticism, especially after the company posted its 2009 profits. Despite the recession, Ameren finished the year with profits of $612 million - just $3 million shy of 2008…
The $612 million profit for 2009 compared to $615 million in 2008.
[Ameren’s Illinois earnings] from these utilities jumped 150 percent during the past year, from $51 million in 2008 to $127 million in 2009. That primarily is due to a rate increase that took effect in October 2008, along with lower operations and maintenance expenses. […]
The question for the [Illinois Commerce Commission] is how much profit in Illinois is too much? [Emphasis added]
An ICC administrative law judge has answered that question. He’s calling on Ameren to scale back the utility’s $130 million request to $56 million…
The 317-page proposal… suggests Ameren actually lower natural gas delivery rates for two of its three utilities. Electricity delivery rates would go up for all three.
Now, the Illinois Commerce Commission will review Administrative Law Judge John D. Albers’ report and make a final decision by the end of April. Only then would any rate changes kick in.
Even with Albers’ proposed reduction, Ameren still likely stands to increase its profits. AARP responds…
The Administrative Law Judge’s finding that Ameren should lower its rate hike request to $56 million is further proof that Ameren’s $130 million rate request was excessive. But Ameren’s request for a rate increase, even at $56 million, is still wrong.
State Rep. John Bradley, a Marion Democrat, quickly came out against Ameren’s rate increase request…
“Communities throughout Southern Illinois are facing the highest unemployment rates in recent history,” the Marion Democrat said. “Those workers who have managed to keep their jobs are facing cutbacks to their hours and benefits. For Ameren to ask these people to fund an increase so that their executives can see another year of growing profits is frankly appalling.”
Bradley was very vocal against Ameren’s request in 2008. He even took tour buses of people in and around his district to Springfield to attend commerce commission hearings.
* Meanwhile, the recent revelation that ComEd intends to ask the state for another rate increase has consumer advocates screaming at utility companies. Exactly how much ComEd will ask for is still unknown, but that hasn’t stopped the Citizens Utility Board and other consumer advocates from screaming at the state’s largest electricity provider.
“It’s terrible timing with the economy the way it is,” said Jim Chilsen, spokesman for CUB, a consumer advocacy group founded by the Illinois General Assembly in 1983.
Illinois consumers will also see electrical bills rise this spring as a result of a 2009 law designed to help people struggling financially to make utility payments.
Payments for lower-income families are based on a sliding scale that’s related to their income, one of several provisions in the 2009 law.
CUB is using an ongoing review of the last ComEd rate increase as a reason to hold off this request…
“The ink on the last rate hike isn’t even dry,” Chilsen said, adding, “and now we get disturbing news that ComEd’s filing with the Illinois Commerce Commission to ask for more.” ComEd said it understands the impact a potential rate increase may have on customers. “That’s why last year, instead of filing for a rate increase, we tightened our belts and reduced our budgets by approximately $200 million,” ComEd said in a prepared statement.
* Related…
* Shenanigans On The Senate Environment Committee?
*** UPDATE *** Bill Brady is doing an eight-city fly-around today and trying to focus on the budget and the economy…
Republican nominee for Illinois governor Bill Brady says he will try to appeal to voters on fiscal issues when they don’t share his conservative viewpoint on social issues.
Brady says he’s heard from people who disagree with his opposition to abortion who say they’ll support him because he has a state budget plan.
OK, well, let’s see that plan in all its glory.
After the beating he took in the Statehouse press room last week, Brady is avoiding Springfield on today’s fly-around.
[ *** End of Update *** ]
* Bill Brady stuck closely to the script during a recent appearance on ABC7’s morning show. He kept his focus on the budget deficit and the economy, even when the hosts tried to bait him on Pat Quinn’s claim that he’s an extremist right-winger.
“We don’t have the luxury of focusing on social issues in this election,” Brady said.
The full ABC7 interview is here, but I’ve clipped the most pertinent section for you. Watch it…
For the Republicans and their nominee, this ought to be a golden moment. The next governor’s challenges could not be more obvious or pronounced: Illinois is an ethical cesspool and flat broke. Voters don’t need to be reminded which party has been running things. All they want is a candidate to offer them a way out.
So where’s Brady? Off in the weeds — introducing legislation to ban civil unions and to allow mass euthanization of dogs; spouting off about teaching creationism in schools; shooting himself in the foot at a news conference meant to show that he’s tough on felons. His public statements about how to balance the state budget, meanwhile, make it clear he has no real plan to do that.
This is the guy who’s supposed to save Illinois? […]
Mr. Brady, you are at grave risk of making Quinn look like the more competent candidate in this race.
If you want to be governor, you’ll have to show that you know what’s wrong with Illinois, and that you know how to fix it.
“Everybody is focused on fiscal and economically responsible issues. Those are the issues that people care about, jobs and fiscal issues, so there is no real right or left in those, just right or wrong,” said Pat Brady, Illinois Republican chairman.
Yes, the economy and the budget are Number One, but he won’t be able to completely avoid answering social questions forever.
“Each party has now nominated the candidate the other party most wanted to run against,” said David Yepsen, director of the Paul Simon Public Policy Institute at Southern Illinois University at Carbondale.
Of the major candidates, that’s certainly right. This campaign is gonna be a race to the bottom. It’ll be a question of who is the scariest and most inept. There’s a hint of that in the Tribune story…
Brady also has opposed some government transparency efforts, including requiring campaign contributors to list their occupations, and he said adopting detailed federal-style statements of economic interest for public officials would be “a little bit of an overreaction.”
His business interests will be examined with a fine-tooth comb. Bet on it.
* Related…
* GOP candidate says he will focus on job creation
* Numbers tell the story in Brady’s primary victory: Three other races in February’s primary saw the nominee win by a slimmer vote margin than in the GOP [gubernatorial] race. But less than 450 total votes were cast in each of those races.
The Quinn administration plans a massive review of more than 250 government contracts made under former Gov. Rod Blagojevich to see if they need to be reduced or rebid.
The plan, which Gov. Quinn will announce Wednesday in his budget address, is to examine all contracts of more than $1 million each issued before January 2009.
This includes a variety of goods and services purchased by the state, from health care for state employees to food for prisoners, according to David Vaught, budget director for the governor’s Office of Management and Budget.
This should’ve been done right after Quinn took office last year. Better late than never, I suppose.
* Quinn will need to do a lot more than that to justify some of his proposed budget cuts, including a $32 million reduction to the Illinois State Police. Plus…
Gov. Pat Quinn’s plan to fill the biggest deficit in Illinois history includes cuts so severe that 17,000 teachers could lose their jobs, thousands of poor families would get less help with child care and fewer state troopers would patrol the roads, a top Quinn aide said Saturday. […]
General education spending would fall by about $1.4 billion, he said, an 11 percent decrease. The “foundation level” of state support for each child would fall from $6,119 now to about $5,600 next year. […]
Quinn also will propose $150 million in cuts to human services, Vaught said. That means, among other things, less money for local organizations that provide child-care services for the working poor.
Vaught estimated 6,000 children would be affected by the reduced hours and tighter eligibility standards likely to result from the cutbacks. Many of their parents would suffer an economic blow, he said.
“If you take away their child care, you’re also taking away their job because they can’t work,” Vaught said.
Vaught claims that state employee headcount fell by 1,000 last year alone, which is something the governor is sure to highlight in his budget address on Wednesday. Quinn will also outline cuts in aid to local governments…
David Vaught, Quinn’s budget director, said [Friday] that municipalities across Illinois must “share the pain” by giving up a portion of income tax revenues the state typically shares. Instead of getting 10 percent, which amounts to about $1 billion a year, municipalities would receive 7 percent under Quinn’s plan. That’s about a $300 million cut.
Vaught also said the Quinn administration does not plan to make the full $4.1 billion employee pension payment this year because the governor is confident proposed reforms will pass the General Assembly that will ultimately save the state money. Instead, the state will pay $3.8 billion, $300 million less than required.
According to the AP, Quinn will propose borrowing billions to pay off overdue bills. The cuts and borrowing will still leave a $5 billion hole to fill with a tax hike.
* Keep in mind that it’ll be tough for Sen. Bill Brady to respond to the magnitude of these cuts because he has already proposed a ten percent across the board reduction to everything - including federal funds. That 10 percent cut has already been criticized by his GOP running mate, and now at least one House Republican candidate backed by GOP leadership has come out in opposition…
[101st Illinois House District candidate Adam Brown] said he disagrees with the spending plan proposed by state Sen. Bill Brady of Bloomington, the presumptive Republican candidate for governor. Brady proposes a 10 percent across-the-board cut to all state agencies.
“I don’t think 10 percent across the board is going to be effective,” Brown said. “I think we’ve got to look through the budget line item by line item and determine where our priorities are.”
* Related…
* State Senator Jones Advice to Schools: Plan to Cut Teachers
* Local counties feel state budget’s crunch: The state owes Union County about $300,000 and another $70,000 of back pay for money the county has paid the state attorney’s office….Franklin County is owed nearly $640,000 with the salary reimbursement at the center totaling almost $500,000.
* Illinois budget woes leaves circuit clerks with zero stipend
* Possible tax hike doesn’t worry product expo vendors
* My syndicated newspaper column this week is about a possible new funding source for capital projects: Slots at tracks…
The Statehouse is buzzing yet again with talk of a new gaming plan. This time, the players say, they have their acts together. Really.
I’m always pretty skeptical of these big legislative pushes. Expanding gaming is one of the most difficult things to do. A big reason is that there’s so much money involved with gaming that people get too greedy. Eventually, the bill suffocates under its own weight. Too many goodies are added to the Christmas tree.
The only time this ever works is when all the legislative leaders and the governor are pulling together. That’s how gaming was expanded under Gov. George Ryan, and that’s how video poker was legalized last year under Gov. Pat Quinn. Everybody at the top, Democrat and Republican, worked together to get it done.
In video poker’s case, it was the Republicans who broached the idea. The Democratic majority was looking around for ways to fund a massive public works proposal, and when the Republicans agreed to keep the fee hikes to a minimum by using video poker, the deal was set.
The latest action started when state Rep. Will Burns (D-Chicago) introduced a bill to put slot machines at horse racing tracks.
The idea would be to use the money for capital projects. The law legalizing video poker in taverns, truck stops and fraternal organizations has come under increasingly heated attack by editorial boards while several local governments are opting out of the law.
The state’s checkbook is empty, so using the state’s account to borrow money is difficult, to say the least. The Illinois Gaming Board is taking its sweet time in preparing rules and regulations for the placement of the slots. Chicago Mayor Richard Daley also indicated recently he wasn’t thrilled with the idea of legalizing the machines for his city.
Even if video poker works out OK, there’s always a hunger in Springfield for more capital projects. This state’s infrastructure is so out of whack that we probably could spend $100 billion and not get everything working right.
Anyway, the latest gaming push really kicked into gear when House Speaker Michael Madigan (D-Chicago) suggested that language from a bill he introduced awhile back be used instead of Burns’. Madigan’s bill would raise more money than Burns’ bill would, so Madigan’s interest got everyone pretty excited, and negotiations began in earnest.
The biggest initial hurdle when dealing with the racetracks is getting the track owners together. They don’t like each other much and usually will bicker among themselves ad infinitum. Then, negotiators have to convince the people who own and train the horses to climb on board, and that’s never easy, either.
From what I can tell, negotiations apparently have gone far better this time around, and the owners and the horsemen reportedly are getting close to an agreement. The sputtering economy and the fact that Illinois is losing quality horses to other states that pay out higher purses apparently is playing a major role in spurring the negotiators on.
Of course, the state’s riverboat casinos then could want their own piece of the pie. That could wind up making the bill too heavy. Whether anything will ever come of this is anybody’s guess at the moment, as usual.
The Senate Democrats don’t seem too excited yet because they’ve seen Madigan kill off gaming bills countless times. Madigan did reportedly have a meeting with proponents a few weeks ago in Chicago, and the House Republicans are participating in the talks. Because Madigan often cuts out the Republicans, that’s a very positive sign.
One difference this time around could be the bill’s sponsor. Burns dealt with numerous complicated negotiations back when he was a high-level member of the Senate Democratic staff, including a massive gaming bill. His fresh approach certainly is drawing a lot of Statehouse respect.
Also, Quinn said in December that the state ought to take a look at slots at tracks. That’s heartening to proponents.
The new proposal would inject about $300 million almost immediately into the capital projects program. And that’s driving a whole lot of interest.
But then there’s the final hurdle: public opinion during an election year. Will that much gaming expansion in such a short period of time be rejected by the public - particularly when the rest of the state’s budget is such a disaster?
The family of Democratic U.S. Senate nominee Alexi Giannoulias stands to collect more than $10 million in federal tax refunds even if its Broadway Bank fails, which Mr. Giannoulias said this week is likely.
A $75-million loss at the struggling lender last year generated tax benefits potentially worth between $12 million and $15 million to Mr. Giannoulias, his two brothers and his mother. As the sole owners of a subchapter S corporation that controls $1.2-billion-asset Broadway, they pay the taxes on the bank’s income and reap tax deductions on its losses. […]
Asked whether he would advise his family to put the tax refunds back into the bank to help recapitalize it, Mr. Giannoulias said, “We’ll do everything we can to keep the bank going. . . .You’ll have to ask management of the bank what the best course of action is.”
The campaign says the family is filing for a return of taxes overpaid last year on capital gains in anticipation of profits that didn’t materialize. The campaign claims that the idea all along has been to use the cash to recapitalize the bank, not to enrich themselves. From a campaign website…
Like the millions of Americans who overpay their income taxes each year, the family is owed tax refunds. They are actively pursuing a refund of this money as a way to help save the bank. They would not profit in any way if the bank fails. Alexi has said repeatedly that he will do whatever he can to help save the bank, which includes using any tax refund he might receive on his 3.6% share to recapitalize the bank. If the bank does indeed fail, the Giannoulias family, who are sole shareholders, will bear the full brunt of the loss.
* Meanwhile, the Daily Herald editorial page asks some pertinent questions about how Republican congressional nominee Joe Walsh can afford to rent this $860,000 Winnetka house on what Walsh claims is an annual income of just $40,000…
The editorial also looks at some claims Walsh has made about the foreclosure on his Evanston condo and his subsequent eviction…
If Congressional candidate Joe Walsh was so hard up for money that he couldn’t fulfill his obligation on a $300,000 mortgage, why was he able to afford to rent an $860,000 colonial in Winnetka with an in-ground pool?
If he needed more room for his large family, why didn’t he look to rent a house of the same size but for half the price in, say, Wauconda or Lake Zurich? Is it possible he could have managed his mortgage payments if he had done that?
Walsh said that people have to understand the circumstances that led to the foreclosure on his Evanston condominium. He was only making $40,000, he said, and he couldn’t afford to keep paying for two homes.
Take a look at the picture above. Does that look like the house you would rent if your family was making $40,000 a year? Especially if you also owed money on another residence?
And the Northwest Herald notes another item in its latest story…
Walsh’s problems [include] a lawsuit filed by his former campaign manager for about $20,000 in unpaid services
Morton Grove-based Patrickson-Hirsch Associates filed a lawsuit today with the Circuit Court of Cook County alleging Walsh did not pay the company $20,000 for the campaign management services provided by Keith Liscio, a principal with the company who also has had a 15-year business relationship with Walsh.
According to the lawsuit, Patrickson-Hirsch provided campaign management services that required $5,000 payments bimonthly, beginning Sept. 1. The lawsuit claims that each of the first three such bills were paid past their due dates. The lawsuit then states that Walsh failed to pay any of the subsequent four installments, beginning with the Oct. 15 bill. On Dec. 4, the lawsuit states, Patrickson-Hirsh terminated its management of Walsh’s campaign, still owed $20,000.
Jim Thacker, a spokesperson for the Walsh campaign, said because of this pending litigation, Walsh will not comment on the issue. Thacker added that he has been working on campaigns for over 20 years and has “never seen anything like” having a lawsuit filed against a candidate so close to a primary election.
Two unions representing bedside nurses are fighting a territorial battle after the recent formation of National Nurses United, a “super union” of 150,000 RNs from nurse groups across the country.
At $28.64 an hour, the top wage rate for Chicago Transit Authority bus drivers ranks third-highest among U.S. transit agencies, according to an analysis conducted for the Tribune.
* CTA gets $1.5M federal grant for electrified vehicle stalls
* Chicago taxpayers on hook for 444 percent more in government pensions than decade ago, report says
The watchdog Civic Federation said today that the funding deficit for the 10 largest Chicago-area public pension funds soared from $3.4 billion in 1998 to $18.5 billion in 2008, the last year for which figures are available.
Daley’s administration was not aware of the allegations, first reported by the Chicago Sun-Times, until Wednesday, when they were brought to the attention of Chief of Staff Raymond Orozco, Heard said.
Chicago-area police departments and prosecutor’s offices often follow different policies for when and how fast those kits are submitted to the Illinois State Police crime lab for testing. They may not send the kit at all, depending on whether the prosecutor charges a suspect. Or if the victim recants or decides not to press charges, or the accused says sex was consensual.
As the Roseland resident and 12 others tied their knots, Chicago’s only public all-male, all-African-American high school fulfilled its mission: 100 percent of its first senior class had been accepted to four-year colleges.
Mayor Richard Daley and city schools chief Ron Huberman surprised students at the all-school assembly Friday morning with congratulations, and school leaders announced that as a reward, prom would be free.
* Towns urge residents to help capture new funds by filling out census
The U.S. Department of Housing and Urban Development uses census data to select low- and moderate-income areas in towns eligible for Community Development Block Grants. Palatine received $408,622 from CDBGs in 2008, with revenues going to adult education and job training, programs for the homeless, and water main improvements.
Kane County Board members would be forbidden from being employed by the county for one year after leaving office or serving on paid commissions while in office, under a proposed ethics ordinance.
The measure also would place limits on campaign contributions of $1,000 per year from contractors, unions, lobbyists, vendors or their affiliated political action committees that have sought contracts with the county.
* Zorn: Name-change idea doesn’t play in, oh, you know where
There are at least two reasons why Peoria Mayor Jim Ardis has rejected the idea of changing the name of his downstate town to Google in order to win the affections of the Mountain View, Calif., computing company.
* Champaign council discusses costs of development
The study found that only high-priced, single-family detached homes in the $400,000 to $600,000 range and downtown apartments generated income surpluses, primarily due to their higher taxable values. Other types of residential property are net losers, when the cost of infrastructure for those developments is considered.
* State probes Belleville’s wheel tax meeting; did it violate open meetings law?
* O’Fallon eyes more cutbacks; business still slow in city
