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*** UPDATED x2 *** More trouble for Quinn on early release, while Meeks praises Brady and a problem (or not) for Giannoulias

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* The early release scandal won’t go away. From the AP

More than 1,700 Illinois prison inmates were supposed to get extra scrutiny on parole after they were set free early in a secret program that later embarrassed Gov. Pat Quinn.

But parole agents can’t monitor dozens of them because they can’t find them.

There are about 50 parolees who are AWOL after being let go as part of the so-called “MGT Push” early release program. Several were paroled after serving shortened sentences for violent crimes - or they have violent pasts.

More than three dozen have been missing more than 100 days. The average length of time on the AWOL list is 4 1/2 months.

Yet, Gov. Quinn thinks his Corrections director is doing a fine job.

* As I told you earlier, Sen. Bill Brady and Sen. James Meeks held a press conference today in support of Wal-Mart building more stores in Chicago. But politics did come up

…Meeks, who in the past threatened to run for governor only to be bluffed out by then-Gov. Rod Blagojevich, stopped short of endorsing Brady, a Senate colleague from Bloomington, or Democratic Gov. Pat Quinn. Asked by reporters if a Brady endorsement was possible, Meeks, who also is pastor of Salem Baptist Church, responded: “All things are possible. That’s what the scriptures teach us.” […]

“I’m not making a commitment or an endorsement at this time of either candidate,” Meeks said. “I support many of the initiatives of Gov. Quinn. Gov. Quinn and I both support a tax increase. Sen. Brady does not. Gov. Quinn and I both support many initiatives. So we’re together on many things.”

Meeks said the fact that he and Brady could come together to support Wal-Mart against union opposition in Chicago demonstrated how politics should work.

“I think that the message to those Democrats is that if we’re going to get things done in Springfield, if we’re going to get things done in Washington, it’s time to cross the aisle,” the Chicago Democrat said. ‘Every idea that Republicans have ain’t bad and every idea that Democrats have ain’t good. So it’s time for us to sit down. It’s time for us to cross the aisle. It’s time for us to come together. That’s why the state of Illinois is messed up right now.”

* Alexi Giannoulias has based many of his campaign ads on saving hundreds of jobs at a clothing manufacturer, but those jobs are now in jeopardy

The overseas firm that controls men’s apparel maker HMX — whose labels include Hart Schaffner Marx and Hickey Freeman, famously favored by the president — is pushing for heavy cost cuts, sparking worries that one of its key US factories might eventually be shuttered, sources told The Post.

India-based textile giant SKNL — which last August led a group of investors in scooping up the company formerly known as Hartmarx out of bankruptcy for $128.4 million — has been so aggressive about slashing costs and moving production overseas that union workers in Des Plaines, Ill., right in Obama’s backyard, are afraid the plant will be closed.

*** UPDATE 2 *** The Sun-Times says the NY Post story is bunk

Owners of HMX men’s suitmaker, formerly run by Chicago-based Hartmarx, are denying a report in today’s New York Post that the Des Plaines factory is again in danger of closing. […]

Doug Williams, CEO of HMX, now based in New York, issued the following statement today: “The Hart Schaffner Marx factory in Des Plaines is running at full capacity to meet customer orders. To fully meet those orders, we have taken the excess required production (primarily sport coats and suit trousers) and are adding it to our Hickey Freeman factory in Rochester, N.Y.

“Today Rochester is also running at full capacity. In addition, we have added a pant sewing shop in our Des Plaines factory to speed our product to market.”

Williams said that owner-partner SKNL “is in full support of management’s strategy and sees our factories as a competitive advantage to our domestic market.”

Lesson finally learned: Never, ever trust the NY Post. I’ve been burned before by them. This one’s on me.

[ *** End of Update *** ]

* Meanwhile, Giannoulias has a new campaign Internet video. Rate it


…Adding… In case you’re wondering about the music, it’s “Largo al factotum” from the “Barber of Seville.” Bugs Bunny performed the tune in Long-Haired Hare. The Giannoulias campaign confirmed my suspicion that this was an inside joke because a bunny rabbit is featured in the video. Being a hardcore Bugs Bunny fan, it’s what I immediately assumed.

* The Belleville News-Democrat has some petition numbers for two US Senate candidates

Instead of obtaining supporters locally, [former East St. Louis Mayor Carl Officer] turned in 3,452 pages of petitions or about 34,000 names gathered in Cook County or in the collar counties to the west and south of Chicago, said a spokesman for the Illinois State Board of Elections. […]

“I see how our federal government is not upholding our constitution and that’s why I’m running,” said [Constitution Party candidate Randy Stufflebeam] a retired Marine, who said he received nearly 20,000 votes when he ran for governor in 2006. He said he is opposed to those who, “Blatantly violate our constitution.”

I’m hearing some things about how some candidates don’t even have the minimum 25,000 signatures, but I suppose I’ll save that for subscribers.

* For those of you who think that pulling petition sheets and challenging signatures is purely a “Machine” game, well, think again. Green Party gubernatorial nominee Rich Whitney has viewed the petitions of four different gubernatorial candidates. However, he hasn’t had copies made yet, so he may not file an objection.

*** UPDATE *** I forgot to add this one. We talked yesterday about how conservative US Senate candidate Mike Niecestro pulled up stakes on his campaign when an unidentified “flake” Republican failed to deliver on his promised petition signatures. I already told subscribers about this today, but Doug Ibendahl also talked to Niecestro yesterday and filed this report

…the guy who didn’t deliver to Niecestro as promised was Bill Kelly – the same Bill Kelly who just ran unsuccessfully in the GOP Primary for Comptroller. I would definitely agree with the “flake” characterization mentioned by Niecestro.

  44 Comments      


*** UPDATED x1 *** The alibi is gone

Wednesday, Jun 23, 2010 - Posted by Rich Miller

*** UPDATE - 2:50 pm *** Rod Blagojevich idolized Richard Nixon for most of his life. The supreme irony of both men being brought down by “the tapes” has not been lost on many of us. Now, we get this

Rod Blagojevich refers to demons and Richard Nixon in brief comments on wiretap recordings played at the former governor’s corruption trial. […]

But he suddenly becomes introspective, comparing himself to former President Richard Nixon and saying they share a tendency to become depressed after winning elections.

Blagojevich also says fundraiser Chris Kelly appeals “to the demons in me.” Without offering details, Blagojevich says there are things he shouldn’t have done.

Creepy, man.

[ *** End of Update *** ]

* As I’ve been saying for months now, Rod Blagojevich’s story about how he “really” wanted to appoint Lisa Madigan to the US Senate is merely a false alibi to cover for the criminal allegations against him regarding that alleged seat sale. From the Tribune

[Blagojevich and chief of staff John Harris] talked about the idea of boosting their position by floating a false story that Blagojevich might want to appoint Illinois Senate President Emil Jones, a political ally, or even Illinois Attorney General Lisa Madigan, the daughter of Blagojevich’s nemesis, Illinois House Speaker Michael Madigan.

Assistant U.S. Attorney Carrie Hamilton spent time with Harris chopping away at the Madigan proposal, which Blagojevich has claimed was his intention all along. Following his arrest, Blagojevich said he wasn’t trying to sell the Senate seat but rather was seeking to name Madigan to the post in a political deal to get her father to stop impeding his legislative agenda in Springfield.

Harris, however, testified that it was clear to him that Lisa Madigan’s name was being dangled as a “stalking horse” to make Obama think he might not land the Senate post for Jarrett unless he offered an enticement to Blagojevich.

“(Madigan) would be the person that’s in the race but not necessarily the person we want to win the race,” Harris told the prosecutor. “I believed at the time that she wouldn’t be interested. It was kind of a high-risk strategy.”

From the tapes

BLAGOJEVICH We, you know, then we gotta figure out the Madigan play if there is one, right?

HARRIS Right. […]

BLAGOJEVICH Negotiating with Madigan and suggesting his daughter, and then can’t make a deal with him that I’m gonna be satisfied with, right?

HARRIS Right.

BLAGOJEVICH Then I end up using my ace in the hole and I send myself. Right?

HARRIS Right.

BLAGOJEVICH Among the reasons I ended up having to fall back on this position was I couldn’t get the Democratic speaker and party chairman to agree that if I sent his daughter to the U.S. Senate all he had to do in exchange for that was to provide health care, pass a health care plan that Obama supports, a job’s plan that Obama supports and balance the budget without raising taxes on people which is what Obama was elected on. Right?

HARRIS Right.

This was actually just another goofy Blagojevich scheme to attack Speaker Madigan. But when he learned he was being bugged by the feds, he switched to the idea of appointing the attorney general so he could declare that he was just an innocent actor.

He’s an actor, allright, but he ain’t innocent.

* Carol Marin is one of my favorites, but I’m surprised that she’s surprised about this fact

Tim Novak, ace Sun-Times reporter who favors Hawaiian shirts and psychedelic Jerry Garcia ties, stuck his head in my office Tuesday.

“I have a question,” he said, pausing to pop a handful of M&Ms in his mouth. “Has anything surprised you so far in this Blagojevich trial?”

Good question.

My first answer was no.

But I’ve been thinking about Tim’s question ever since.[…]

But on reflection, I am surprised about one thing. I’m amazed at the sheer, unmitigated, mind-boggling incompetence of this man.

His incompetence was there for all to see for six years.

* And his delusions of grandeur are also no surprise. He talked several times with Harris and with his wife about possibly using the Senate appointment to leverage an ambassadorship to India. Yes, India

In an exchange with his wife, Patti Blagojevich begins doing what appears to be Internet research on the current Indian ambassador — a “white guy right now, David C. Mulford” — and on the ambassador’s residence in New Delhi.

“How are the running routes around there?” Rod Blagojevich is heard asking.

“Congested, I’m sure,” Patti says.

Harris testified he had to explain to Blagojevich that India was a pipedream.

“I just didn’t think a governor from Illinois would be the right person for that,” Harris said. Though he said it was realistic that Obama would “sideline” Blagojevich to some remote country with an ambassadorship position.

* Roundup…

* Andy Shaw: Noon, June 23, 2010. As I was sitting in the courtroom this morning, listening to the audio tapes of Rod Blagojevich brain-storming (and I use the term very loosely) with his chief of staff John Harris in the fall of 2008 about what to ask for from soon-to-be President-elect Barack Obama in exchange for the appointment of Obama’s friend and advisor Valerie Jarrettt to the soon-to-be-vacant U.S. Senate seat, I was struck by the fact that our ex-governor, the star defendant in this massive corruption case, was living in a fantasy world. One of his top lieutenants, fixer Tony Rezko was awaiting sentencing on his corruption conviction. Another key advisor and fundraiser, Chris Kelly, had been indicted a year earlier on charges of tax fraud. Democratic fundraiser Joe Cari, another pay-to-play partner, was cooperating with the feds after copping his plea on corruption charges. And one of Rezko’s partners in crime, Stuart Levine, entered a guilty plea in his corruption case and was also cooperating with the feds.

* Darrow Abrams On honest services fraud, June 23, 2010. There’s a lot of talk at the Dirksen federal courthouse these days about when the Supreme Court will issue its ruling on the validity of honest services fraud. Given that the Supreme Court is expected to decide the issue by the end of this month, a ruling should be handed down imminently. So what is honest services fraud, and why does it matter in this case? Honest services fraud refers to a theory of fraud liability under the mail and wire fraud statutes. Basically, a government official owes the public a duty of honest services. If this official (a) knowingly participates in a scheme to deprive the public of their “intangible right of honest services,” (b) does so knowingly and with the intent to defraud and (c) uses either the US mail or electronic communications (e.g., phones, cell phones, faxes, e-mails, etc.) to carry out the scheme, then the public official has committed honest services fraud.

* Judge denies defense request for mistrial

* Blagojevich trial focus shifts to alleged Senate seat sale attempt

* Tapes show Blago excited by value of Senate seat

* “What Can I Get for This Senate Seat?”

* Union leader to Blagojevich on night of presidential election: Obama wants Valerie Jarrett

* Rahm Pushed Obama’s Preference for Appointing Jarrett, Says Former Deputy Gov

* Brown: Blagojevich really wanted out of gov job

* ‘I’d like to get the (expletive) out of here’

* Blagojevich: Desperate and Fumbling to Get Out of Illinois?

* Blagojevich on Senate seat: “The objective is to get a good gig over there.”

* Rod Blagojevich. Ambassador to India.

* UN ambassador on Blago’s ‘pecking order’: witness

* Which is more important — commerce secretary or ambassador to India?

* Rod and Patti discuss Indian ambassadorship

* Trying to oust the Tribune editorial board

  26 Comments      


Question of the day

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* As noted below, our state’s financial position appears to be rapidly worsening and the budget office won’t talk about it. As a “celebration” of that happy confluence, here is a photo of budget director David Vaught…

* The Question: Caption?

  53 Comments      


One of the worst in the world

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* A couple of graphs have been making the rounds lately and causing some big shocks. From The Economist

Click the pic for a larger image of this chart from credit info company CMA

So, we’re worse than Portugal. Great. But, look on the bright side. We’re just slightly better off than Iraq. Whoopee!

From Bloomberg

The cost of insuring Illinois bonds against default rose to a record as lawmakers sought to close a $13 billion deficit in the state’s proposed budget for the year starting July 1.

The cost of a five-year credit-default swap for the state rose 2 basis points today to 304.64 basis points, or $304,640 per $10 million of debt according to CMA DataVision.

There aren’t a lot of credit default swaps traded on Illinois debt, so this may be an unfair comparison.

* However, the Europeans appear to be interested in our debt. The state just finished a European tour ahead of another bond sale. From the Bond Buyer

Market participants attribute the fresh foreign interest to the perception that U.S. government credits are relatively safe and have value, especially following this year’s European sovereign debt crisis. Also helping is better marketing by broker-dealers with foreign trading desks like Citi and the generally improving view of BABs as an asset class with federal legislation pending to extend the stimulus program.

For Illinois, the need to expand its universe of buyers is all the more urgent as it has asked domestic buyers to digest a steady flow of paper amid an ongoing deluge of negative fiscal news from rating downgrades to columnists raising the specter of insolvency.

* Illinois’ inability to solve its deficit problems, coupled with all the credit problems around the world is making things worse. There’s also a definite psychological aspect out there

“A lot of our buy-side customers are reporting fatigue. It’s a saturation issue,” said Matt Fabian, managing director at Municipal Market Advisors. “You have unsophisticated buyers who don’t understand the pledge and sophisticated buyers who understand it but are getting fatigued fighting for it” as they have to answer to risk managers and board members who see the negative news.

Because liquidity is a paramount concern for BAB buyers, some investors also might worry about headline risks and the effect on their ability to trade their holdings, Fabian said.

The market lives on psychology

Akin to the authorities in Greece, state and local officials in the US lack the luxury of Washington’s electronic printing press and helicopter “money”. And, again like Greek debt, things deteriorate rather rapidly when the market turns nervous and demands significantly higher yields. Meanwhile, the market’s faith is waning with respect to the ability of recovery to cure structural state and local deficits, as well as in the federal government’s capacity to move forward with numerous additional bailouts.

* The governor’s office is doing what it can to soothe the market, but this is a pretty hollow threat

The bond offering statement notes that if the Senate doesn’t pass the pension issue, the governor’s options include vetoing the budget and calling a special session.

If he does bring them back, the pension borrowing bill probably won’t pass anyway.

* And, fair reporting or not, this story is reverberating widely

Dale Rosenthal, a former strategist for Long Term Capital Management, the hedge fund known for its epic collapse in 1998, and a proprietary trader for Morgan Stanley, has seen his share of financial complexities.

But when shown a seven-page list of derivatives positions held by the Illinois Teachers Retirement System as of March 31, obtained by Medill News Service through a Freedom of Information Act request, the University of Illinois-Chicago assistant professor of finance expressed disbelief.

“If you were to have faxed me this balance sheet and asked me to guess who it belonged to, I would have guessed, Citadel, Magnetar or even a proprietary trading desk at a bank,” Rosenthal said. […]

For the quarter ended March 31, according to derivatives experts who studied TRS’ financial documents, the fund lost some $515 million on its derivatives portfolio. Since then, the fund’s derivatives positions have likely soured further, the experts said, due to worsening financial conditions in Europe. […]

In the balance sheet provided to Medill News Service, TRS’s OTC derivatives portfolio showed that in addition to writing CDSs, the pension fund was selling swaptions and shorting international-based interest rate swaps. For each contract written or sold, TRS received a premium.

TRS claims it made money on the derivatives, but that’s hotly disputed in the article.

I asked the Governor’s Office of Management and Budget for a comment, but they declined. Not bright.

* Related…

* Is Illinois the New California?

* U. of I. finds ways to save $60 million on supplies, services

* ‘Culture change’ in UI administration, services could save tens of millions

* Lawmakers cool to graduated income tax plan

  23 Comments      


Quinn supports Wal-Mart deal

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* State Sen. Bill Brady will hold a press conference this morning at the proposed Wal-Mart site in Chicago’s Pullman neighborhood with Democratic state Sen. Rev. James Meeks and others. Brady has been a staunch supporter of building new Wal-Marts in Chicago and issued a press release earlier this week praising a deal cut by Mayor Daley that’s still pending in the city council. The deal would require the company to pay starting workers 50 cents an hour above minimum wage. Unions have decried the deal as a sellout. Here’s Brady’s release…

“As the author of legislation aimed at bringing exactly these types of jobs and opportunities to food deserts throughout Chicago, I strongly support the announcement by Wal-Mart and key community leaders of their agreement to create real jobs and more consumer choice in Chicago,” said Bill Brady.

“I’ve met with community leaders who recognize this as an opportunity to create thousands of jobs — both union and non union. I join with them in working to bring this proposal one step closer to reality. Mayor Daley and others have shown tremendous leadership in the effort to bring real private sector jobs that we desperately need. I will stand shoulder to shoulder with those ready to deliver on this agreement and get the job done for Chicago families. If only Governor Quinn was willing to do the same.”

Quinn, however, sounded positive notes about the Daley/Wal-Mart deal yesterday…

Quinn said Tuesday that he is happy to see so many jobs potentially coming to Chicago. He tried to downplay the politically sticky issue that many of those jobs will not be union jobs, and will pay less than the demanded “living wage.”

Quinn instead focused his comments on the need Wal-Mart could fill in providing supermarkets to Chicago-area residents.

“It’s a municipal issue for the city of Chicago…It puts people to work, gets grocery stores where they need to be located in every neighborhood, and at the same time helps our economy go forward.” […]

“I’ve said all along that I believe…[in getting] a good wage for employees who work in the stores and for those who build the store,” said Quinn.

I’m sure SEIU is gonna be happy with that statement. The union has been in the lead on the Wal-Mart boycott and spent $1.7 million on Quinn in the primary,

* In other economic news, Gov. Quinn is expected to sign the “Worst Bill Ever” into law today

Illinois Governor Pat Quinn will sign what his office calls “major economic legislation” Wednesday morning in Marion.

An aide to state senator Gary Forby confirms it’s Illinois senate bill 2093, better known as the STAR bonds bill. STAR stands for “sales tax and revenue.”

That bill will divert state sales tax revenue to help finance a major retail and entertainment development along Interstate 57 in Marion. […]

At Local 773, the Marion-based chapter of the Laborers International Union of North America, man hours dropped from around 1.1 million in 2001 to around 412,000 in 2007.

As the recession continued that number shrank to around 380,000 in 2009.

* And the folks who run Churchill Downs are warning that their Arlington racetrack is on the bubble

Churchill Downs Inc.’s chief executive on Thursday raised doubts about the future of Arlington Park, its Chicago-area track and said the company’s flagship Louisville track may have to further reduce racing dates.

“You can’t run on hope,” CEO Bob Evans said in an interview after the company’s annual shareholders’ meeting in Louisville. “… If we get to the point where you know ‘not racing’ is the best answer, well that’s the best answer. But we’re not starting there, and I hope we don’t get there.”

During prepared remarks at the meeting and in the interview after, Evans talked of plans for an impending internal review of its four racetracks and said it is difficult to justify racing at tracks that don’t have slot machines or other forms of gambling to supplement purses.

Asked if Arlington Park and Churchill Downs are in jeopardy, Evans said any racetrack without alternative gambling would find it difficult to keep going without some business to make up the difference.

More

Churchill’s gaming operations now include the Calder Casino and Studz Poker Club at the Miami track and slot machines at Fair Grounds along with video poker at off-track sites. Churchill’s gaming revenues increased 22% in 2009 to $61,227,000.

Evans outlined racing’s $2.47-billion dip in pari-mutuel wagering in 2009 compared to ’07 and noted that foal crops continue to get smaller. The Jockey Club projects an 11.8% decrease in foals in 2010. With that in mind, Evans believes the tracks that will thrive will be the outlets that are able to boost purses with money from added gaming to attract entries from a shrinking pool of horses.

Evans said the company’s comprehensive review of racing operations would not necessarily lead to immediate changes.

“I’m not sure about the timeframe of any of this, but we have to be realistic,” Evans said. “Every track without alternative gaming or some other way to get money into purses is going to be in trouble. There’s no other way to survive.”

And

Last week, Arlington announced $725,000 in cuts to stakes purses for 11 races and the elimination of another, citing declines in out-of-state betting.

* And speaking of slots at tracks and racing woes

Harness racing at county fairs like the Perry County Fair has long been a tradition in Illinois, but cuts in state funding and late payments to county fairs are putting the tradition in jeopardy and threatening jobs.

Rita Williams, a member of the board of directors of the Illinois Harness Horsemen’s Association, said the future of harness racing at Illinois fairs is in “critical mode.” She said Illinois law provides reimbursement of 66 percent to county fairs. Williams said the actual figure is one-third of what it should be. […]

Williams said the purses that draw horsemen to enter races are composed of fees paid by the horsemen and funds the state provides to fairs. In the past several years the harness racing industry has experienced a reduction of more than 50 percent in state funding, which has reduced the purse size for each race and caused some horsemen to seek alternative venues, she said. […]

“If we lose this industry we will lose 35,000 to 40,000 jobs,” Williams said. “What will these people do? That will create another burden on the state.”[…]

A piece of legislation in the general assembly could save harness racing in Illinois, Williams said. Senate Bill 3146 would amend the Illinois Horse Racing Act of 1975 and allow slot machines at tracks. Williams said the action would not only save the harness racing industry, but provide hundreds of millions of dollars in revenue for the state.

Expect a bill after the election.

* Related…

* Quinn to sign STAR bill in Marion

* Harris: Controversial tax break for developer goes to Quinn

* AT&T announces plans to upgrade and expand broadband in Illinois

* Quinn signs bill at Community Nurse clinic

* Churchill Prospering from Diversification

  26 Comments      


Tracker story takes an ugly turn

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* Apparently, a lot more happened after that Republican video tracker turned off his cam at Alexi Giannoulias’ DC fundraiser the other day. You’ll remember the story. Tracker shows up, gets harrassed, told to leave, GOP makes a big splash claiming foul play. The video


The first guy to confront the tracker was DC lawyer Michael Kosmas, the party’s host. Politico has a story about what transpired later that evening

An attorney for a resident of Madrigal Lofts, a condominium building in downtown Washington, D.C., is asking the Senate campaign of Democrat Alexi Giannoulias to investigate an alleged incident of “harassment, intimidation, and assault” that occurred after a recent rooftop fundraising event. […]

The tracker contended that he had been invited to the rooftop by a different resident of the condominium building. And that resident accused Kosmas and several other individuals of showing up at her door later that evening, around 11:00 pm, and confronting her “using inappropriate and threatening terms.”

The accusing resident did not open the door at the time but was later escorted by a building security guard to Kosmas’ condominium to complain, according to accounts by both parties.

According to a letter sent to the Giannoulias campaign by the woman’s attorney, Bobby Burchfield, Kosmas “would not commit to refrain from repeating the situation” and the woman was “knocked on her shoulder” as she walked past him.

The woman was not identified, but according to the article “she has worked for Republicans in the past but is not currently employed by an official GOP organization.”

* As you’d expect, the Republicans have pounced yet again. From a Mark Kirk for Senate press release, entitled: “Kirk Campaign Expresses Serious Concern over Report that Giannoulias Event Host Intimidated Young Woman after Fundraiser”…

“The news that Alexi Giannoulias’ campaign event host intimidated a young woman at her home in Washington following the campaign’s DC fundraiser raises serious concerns with regard to the integrity of the Giannoulias campaign and its associates,” Kirk spokesperson Kirsten Kukowski said. “We call on Alexi Giannoulias to immediately apologize for his campaign affiliates’ intimidation tactics, publicly identify all those involved and terminate all association with them.”

IL GOP…

“We call on Alexi Giannoulias to issue a public apology, identify those involved and cut ties to them immediately,” Chairman Brady said.

“Campaigns should not tolerate the intimidation and harassment of women.

“I hope some of Alexi Giannoulias’ supporters like Dick Durbin and Jan Schakowsky will have the courage to stand with me in condemning all acts of violence, bullying, intimidation and harassment of women by a political campaign or their supporters.”

And from the NRSC…

“Instead of demonstrating leadership by stepping up and denouncing this kind of inappropriate activity, mob banker Alexi Giannoulias simply embraced the Chicago way and condoned it. The people of Illinois deserve better than a mob banker who is willing to turn a blind eye to any type of predatory harassment, intimidation, or violence.” – Amber Marchand, National Republican Senatorial Committee (NRSC) Press Secretary.

* The Giannoulias campaign isn’t commenting, but Michael Kosmas did issue a statement. Here’s part of it…

On the evening of June 16, 2010, I hosted an event at my Washington residence for Alexi Giannoulias, the Democratic nominee for U.S. Senate in Illinois.  Despite the fact that this was a private event in a private residence building, an uninvited intruder entered the perimeter of the party and videotaped my guests.  Building security ultimately escorted him to the outside the perimeter of my private reserved party area.  This person continued to videotape the event from afar despite being told repeatedly by the security guard that he was in violation of the building rules.

Following the event I went and complained at the unit whose occupant allowed the videographer upon my roof.  She did not answer her door, but instead came to my door with the building security guard a few moments later to complain I was harassing her.  The security guard told her in no uncertain terms that if her guests violate building rules, I have an absolute right to go to her unit and complain.  Unsatisfied with the guard’s explanation, she then summoned a District of Columbia police officer, who gave her the exact same answer.

On the evening in question this woman refused to identify herself. I have since been given a copy of a letter on her behalf by a Washington attorney to the Giannoulias campaign.  Aside from containing many factual inaccuracies, it quite simply doesn’t make sense.  If she in fact feels that she was harassed, with inappropriate and potential illegal activity as she claims, where is her complaint to the police?  Where is her complaint to the building?  This is political opportunism and game playing at its worst.

Kosmas is also distributing a blistering statement by former Congresswoman Helen Delich Bentley, a Maryland Republican…

On the evening of June 16, 2010, my longtime senior Congressional aide and chief political operative, Michael S. Kosmas, hosted an event at his Washington residence for Alexi Giannoulias, the Democratic nominee for U.S. Senate in Illinois. Despite the fact that this was a private event in a private residence an uninvited intruder entered the perimeter of the party and videotaped Mr. Kosmas and his guests.

While these sorts of dirty tricks occur regularly in politics, what disturbs me is the response of the Republican Party. Rather than condemning this trespassing in a private party in a private residence, the Republican Party has lionized the trespasser, and with respect to Mr. Kosmas, the party host, have questioned who he is and his relationship to the Giannoulias campaign.

I am actually quite surprised that national Republicans have to ask this question. Six months to the day before the Giannoulias fundraiser at his home, Mr. Kosmas was an official co-host of an event at the National Republican Senatorial Committee for Rob Portman, the Republican nominee for U.S. Senate in Ohio, at which Senator McConnell was the guest speaker.

For the record, Mr. Kosmas spent nearly a decade as my Congressional aide, and managed many of my successful re-election races to the U.S. House. He served a four year term as elected member of the Republican Central Committee of Maryland. He has donated thousands of dollars to Republican candidates over the years, including myself, Bob Ehrlich, Michael Steele, Susan Collins, Dan Burton, Duncan Hunter and others.

I am disgusted that the reward for Mr. Kosmas efforts for so many Republicans over the years is to have political operatives trespass into his home when he does an event for a member of the other party. The Kirk for Senate campaign and the National Republican Senatorial Committee owe Mr. Kosmas an apology.

* Lawyers and political strategists are now involved, so don’t bet on any apologies being offered by anyone, which is what would normally happen if this wasn’t a campaign thing and was just a dispute between a couple of tenants.

It certainly would’ve helped the GOP’s cause if a formal complaint had been filed with the local coppers about the confrontation and the alleged shoulder-bump, but that doesn’t appear to have happened. Still, confronting a female tenant at 11 o’clock at night is more than just ungentlemanly, not to mention the alleged physical contact. She had a right to be frightened, even though she did play a role in this escapade. But she shouldn’t have allowed somebody to use her name to crash the funder and not expect at least some consequences.

Everybody really needs to calm down and act like human beings. I suppose, however, that’s too much to ask. It is DC, after all.

  46 Comments      


Morning Shorts

Wednesday, Jun 23, 2010 - Posted by Rich Miller

* Shots fired into Washington Park mayor’s house

Mayor Cynthia Stovall-Hollingsworth was not believed to be a target and was not injured, police said. The bullets that hit her house were believed to be stray shots.[…]

Stovall-Hollingsworth came to office in April after the former mayor, John Thornton, was shot to death driving home from work on April 1. Thornton stopped to talk to two men when one got into his car and shot the mayor.

* ‘Frozen in place’ by the recession

The slow economy has led to Chicago’s greatest population increase of the decade.

Chicago gained 21,000 people between July 2008 and July 2009, according to Census Bureau city population estimates released Tuesday.

The reason: fewer people are leaving the city, allowing immigration plus births to more than make up for the 3,500 people who left town.

* 2009 population estimates for Illinois cities

* Chicago home sales jump 32% in May

* Tax incentives drive May surge in [Springfield] home sales

* Home sales dip 2.2 pct despite tax credits

* DuPage tech park to be turned over to airport

The privately run DuPage National Technology Park — a near-empty west suburban non-profit project that Illinois taxpayers sunk $34 million into — is dead, DuPage County Board chairman Robert Schillerstrom declared today.

Schillerstrom said the tech park will be taken over by the DuPage Airport Authority, which owns the land in West Chicago that backers once hoped the park would turn into a flourishing home for dozens of technology businesses bringing thousands of new, high-tech jobs.

* Hinz: Schillerstrom concedes DuPage tech park fight

* Youth’s slaying shows limits of struggling school’s progress

Earlier this month blood marked the grass outside Brian Piccolo Specialty School in West Humboldt Park where a 15-year-old boy was slain. Officials there hope the tragedy won’t taint the progress they have achieved in the past two years.

The school, which had been plagued by violence and low test scores, has seen improvement in both, according to school officials and state data. But Principal Althea Hammond worries that the school’s strides may be overshadowed by one tragedy.

“I always compare schools to a fairy-tale place. It’s an illusion,” Hammond said on a recent morning. “When (students) leave, they are going back to their own reality.”[…]

When it began to rain, Jeremy took refuge near Piccolo along the 4200 block of West Thomas Street, according to an account of the events read by prosecutors in court on June 16. Prosecutors alleged that a 20-year-old began shooting and hit Jeremy in the neck. The suspected shooter has been charged with first-degree murder.

The prosecutor said in court that the area where Jeremy was killed “is the site of ongoing rivalries” between gangs. […]

Even the memorials set up for Jeremy Baggett after the shooting caused stress for the school. What started as flowers and balloons turned into liquor bottles and, eventually, graffiti. City authorities cleaned up the site, but then Hammond heard rumors that people who were angry that the memorial was removed were threatening to shoot out school windows.

* Chicago to spend $25 million to fight school violence

The cornerstone is a $10 million mentoring program for 1,500 high-risk students at 13 high schools. Currently, 250 students get the special attention.

* Mayor Daley: Violence Proves Chicago’s Handgun Ban Is Needed

* Senate confirms Central District U.S. attorney

* Naperville leads Chicago area in DUI arrests, survey says

And according to a recent survey of statewide DUI arrests, several Chicago suburbs lead in enforcement — Carol Stream, Gurnee and Orland Park, to name a few.

Carol Stream racked up nearly 500 arrests for driving under the influence last year, ranking fourth in the state, a source of pride for its police department, officials said.

* Illinois State Police revoke Muslim chaplain appointee

In a statement, state police officials said Sheikh Kifah Mustapha, the associate director of the Mosque Foundation in Bridgeview, could not serve as a volunteer chaplain “due to information revealed during the background investigation.” State police declined to be more specific. […]

Shortly after Mustapha’s appointment, Steve Emerson, executive director of the Washington-based Investigative Project on Terrorism, criticized Illinois law enforcement for ignoring Mustapha’s history as an “unindicted co-conspirator” in the case against the Holy Land Foundation for Relief and Development, once the nation’s largest Muslim charity.

The foundation’s two founding members were sentenced last year to 65 years in prison each for funneling millions of dollars to Hamas, which the U.S. has labeled as a terrorist organization.

* Defense rests in cop torture trial

* Testimony wraps up in Burge trial

* Former court reporter: Alleged Burge victim had facial injuries

* Sculpture planned for injured Chicago police officers

* City teams help fund police statue

* Trump Tower spire to light up Wednesday night for the first time

* Daley, Wal-Mart tout benefits of chain coming to Chicago

Daley tends to display such emotion when he’s in a tough political situation. He’s frequently gotten fired up when discussing the city’s decades-old handgun ban, which the U.S. Supreme Court is expected to overturn any day now.

In the case of Wal-Mart, Daley is fighting a long-running battle that could come to a head Thursday when the City Council Zoning Committee votes on the proposed Pullman Park development on the South Side that would be anchored by a Wal-Mart Supercenter.

It’s not clear if the mayor has the votes to prevail — as he almost always does. “We’re gonna try,” he said.

* Daley wants answers from organized labor over $1 billion Wal-Mart deal

* ShoreBank needs bigger bailout: report

* City considers fines for big holes left unfilled

* Buildings Committee moves to fine property owners for eyesores

* SouthtownStar: Recession takes pressure off plan for Howe land

* Elgin seeks partner to find buyers for foreclosed homes

* Homewood bans seeking donations at intersections

* Lombard will close bridge if Glen Ellyn won’t pay

Lombard plans to close the aging Hill Avenue bridge on July 1 if neighboring Glen Ellyn won’t pitch in on the cost of rebuilding it.

The bridge over the DuPage River just south of the Union Pacific tracks belongs to Lombard, but traffic patterns indicate it has more value to Glen Ellyn residents.

That’s why Lombard is asking its neighbor to split the $600,000 local share of the reconstruction cost - and says it won’t foot the bill alone.

* No wage increase for D203 leaders

* Bureaucratic housekeeping in Naperville turns into debate over abortion clinics

City planners recently decided to streamline two separate land-use classifications — “medical or dental clinics” and “medical or dental offices” — into one category, to remove repetition and make the city’s zoning code clearer. Their proposal to do so at the June 15 City Council meeting, however, nearly was derailed by concerns by several council members over the possibility that an abortion clinic can operate anywhere that medical or dental facilities currently are allowed, including in the city’s downtown.

* RR Star: Keep an eye on Navistar

Persistence usually pays off, so it’s important that officials in the Rockford region remain persistent if they have any hope of attracting a Navistar facility that is having problems moving to Lisle.

The Northwest Herald reported Sunday that McHenry County has been aggressive in pursuing Navistar and is trying to lure the company to the Motorola site in Harvard.

Motorola closed the Harvard plant in 2003 and it’s been vacant since. The campus employed 6,000 people at its peak in 2000, so there’s plenty of room for Navistar.

* South Beloit finds $49,400 for next budget year

* [Quincy] to meet with companies interested in hydropower development

* Henry City Council approves utility tax

* Streator now getting ‘back to business’

* Regulators crack down on payday loan firm in Carbondale

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Wednesday, Jun 23, 2010 - Posted by Rich Miller

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