Gov. Pat Quinn today said the Illinois Senate will not head back to Springfield to vote on a nearly $3.7 billion pension borrowing plan until after the November election.
…Adding… I suppose this means I can finally get a haircut. My wife will be pleased, as will my mother.
But not on every topic…
Meanwhile, Quinn defended giving raises to certain members of his staff amid the state’s budget crisis, saying the bumps in pay corresponded with increases in responsibility. An Associated Press report found that Quinn has given 43 salary increases averaging 11.4 percent to 35 staffers in the past 15 months.
But Quinn said that despite the pay hikes, the budget for the governor’s office is less than it was when he took over for disgraced ex-Gov. Rod Blagojevich in January 2009.
“I raised individual members of my staff when they had a new assignment that required them to do a different jobs,” Quinn said. “Having said that, the overall budget of the governor’s office is 25 percent lower than it was when I was sworn in. I think that’s what the taxpayers are looking for. If you don’t cut the budget, then you’re not getting the job done. I’ve cut the budget of the governor’s office. I’ll continue to do so.”
*** UPDATE *** Bill Brady’s campaign responds…
“Today’s revelation shows there are two rules under Governor Pat Quinn - one for him and the powerful insider crowd, and another for all the rest of us.
While working families are tightening their belts and doing more with less, Pat Quinn is doling out massive pay raises to his own staff - and we’re paying for them. Today’s revelation shows, once again, that Pat Quinn is incapable of solving our fiscal crisis, and has lost control of state government. How many other agencies received pay raises?”
* Why Alexi Giannoulias didn’t just take a credit for future years’ taxes on his ‘09 tax return is beyond me. As it is, he’s hurt his own campaign by accepting a 100 percent tax refund on his state salary.
[Mark Kirk] said there is a big difference between the financial situation of Mr. Giannoulias and Mr. Brady, even though neither has had any income-tax liability of late due to reversals in their families’ businesses.
The difference is that “the Giannoulias family transferred this incredible $394-million bill” to the Federal Deposit Insurance Corp. when its Broadway Bank recently collapsed, he said.
But, in the same way that Mr. Giannoulias ought to pay something because he draws a state paycheck as Illinois treasurer, so should Mr. Brady, a state senator, Mr. Kirk said.
“If you are dependent on a salary paid by the taxpayers, you ought to pay tax,” Mr. Kirk said. “You ought to find a way to pay taxes.”
Kirk is exactly right on that second point. If you’re a politician, you need to find a way to pay taxes on your state salary.
And don’t think for a minute that Pat Quinn won’t use that quote against Bill Brady. This is obviously a game of every man for himself. Kirk played it today, Quinn will play it as well.
*** UPDATE *** Jason Plummer wasn’t spared, either…
And in another statement that could come back to hit the Republican candidate for lieutenant governor, Jason Plummer, Kirk said, “All statewide [candidates] should release their tax returns.” Brady initially refused to release his tax returns but relented. Plummer still has not released his and says he won’t.
But Kirk repeatedly dodged a question about himself…
Kirk also refused to say during the news conference whether he stands behind a statement that he was fired on while riding in a dutch armored vehicle in Afghanistan. He repeated several times that reporters should just look at the fitness reports he released about his military service.
I thought he was pledging to be Mr. Honesty these days?
* The McLean County Medical Society formed a PAC back in late March and transferred $201,000 out of what appears to be the Society’s operating fund to the PAC on June 23rd. It then contributed $200,000 to Sen. Bill Brady’s campaign on June 30th. Brady is from Bloomington, which is in McLean County. Quite a nice chunk of change there.
* This doesn’t look like a huge deal to me. I think 11th District GOP candidate Adam Kinzinger did a pretty good job explaining the reasoning in the final graf of our excerpt…
In the primary election, Kinzinger’s biography on his website and his news releases said he was serving in the Air Force Special Operations Command. […]
It turns out Kinzinger was detailed to Air Force Special Ops for two three-month stints in 2008 and 2009, but was not permanently assigned to Special Ops, Air Force officials said.
“The way it was worded was incorrect,” Dawn M. Hart, chief of community relations for AFSOC public affairs in Florida, told the Chicago Sun-Times on Saturday. “He only worked for [Air Force Special Operations Command] for those two assignments.” […]
Kinzinger was never disciplined by the Air Force for saying he works for Special Ops. But he changed his website to say that he “has worked for” Special Ops. […]
Changing “is” to “has” on his website was no bigger deal than changing his age from 31 to 32 in February, Kinzinger said.
If there’s more to this than I’m seeing here, then we’ll of course revisit. Your thoughts would be appreciated, however.
* The Tribune wants a new state law to guarantee special elections for vacant US Senate seats, but it does point out a serious problem with the case moving through the federal court system right now, which could force a special Senate election on the state…
Elections officials need 180 days lead time for a special election. That allows time for candidates to gather petitions and for challenges to be resolved, plus time to prepare the ballots, program the machinery, handle early and absentee balloting and deal with emergencies. As of Tuesday, there are 119 days until the Nov. 2 election.
* Roundup…
* Lawmaker divests nursing home stake: State Sen. Heather Steans has divested her ownership stake in a troubled southwest suburban nursing home that has faced repeated citations for serious patient neglect, including medical failures that allegedly contributed to two patients’ deaths. The December death of Cordelia Lee at Evergreen Health Care Center in Evergreen Park and another death of a 90-year-old patient last year are part of a pattern of substandard care that moved state health authorities earlier this month to revoke the facility’s license… Steans had no operational role in Evergreen, and the Chicago Democrat said that, following a Tribune report on the facility earlier this month, she shed her 2.8 percent interest in the home.
* David Axelrod headlining Giannoulias fund-raiser July 25
* Giannoulias: Obama will campaign for me: “I have a feeling he’ll be out here a few times before November,” Giannoulias said Tuesday in an appearance on the ABC News/Washington Post “Topline” Web show. Giannoulias said that he had not personally asked Obama to stump for him, but added: “The White House has been great; they’ll be out here.”
* Yet another charge that is gonna send Rod Blagojevich to prison. Lying to FBI agents. From this morning’s testimony by FBI supervising agent Patrick Murphy…
During that 2005 [FBI] interview, held in the offices of Winston & Strawn, Blagojevich said he maintained a separation between politics and fund-raising.
“He said he did not track who was contributing to him or how much they were contributing,” Murphy said. “This was a decision he made when he became governor,” he said Blagojevich told him.
Murphy, who is lauded as the investigative architect of the case, is testifying to the false statement charges in the indictment. Blago is charged with lying to the FBI about material matters in the investigation.
The surveillance tapes clearly show those statements to be outright lies. I’m not a huge fan of that “lying to a federal agent” law, but these are clear violations.
* My weekly syndicated newspaper column takes a look back…
During the long, excruciating overtime state legislative session of 2007, Illinois House Speaker Michael Madigan complained that Gov. Rod Blagojevich had a habit of diverting high-level discussions away from the budget and toward Madigan’s ties.
Madigan, it should be said, does wear some eye-catching ties. He takes no credit for his taste in clothing, however. His wife, he says, picks his ties out for him.
Speaker Madigan confided to me one day back then that whenever Blagojevich would compliment Madigan on his choice of ties, he would always complain that, as governor, he couldn’t afford such fashion gems. Madigan has a lucrative law practice which brings in a pretty penny. Blagojevich couldn’t do side jobs as governor, he would repeatedly explain to Madigan and everyone else in the room, so he couldn’t afford to dress like Madigan.
The House Speaker seemed quite frustrated at the time with Blagojevich’s fixation on his fetching ties, rather than on dealing with the budget deadlock and general political gridlock. After all, it wasn’t like Blagojevich dressed poorly. He always wore sharp clothes. He even showed up at the State Fair once dressed in designer blue jeans.
Thanks to his federal corruption trial, we now know that it was taste, not money, which caused Blagojevich to wax envious whenever he saw Madigan wearing a pretty tie.
According to testimony by an IRS agent last week, the former governor and his wife spent a mind-boggling $400,000 on clothes between 2002 and 2008.
Just for a little context, Blagojevich spent about half of his after-tax income as governor on clothes. Not to mention that the man usually worked out of his house or down the street at his campaign office.
All told, Blagojevich spent $206,000 at a single men’s store - the Tom James Company, a custom clothing maker. He spent another $31,000 at Geneva Custom Shirts. Blagojevich and his wife shelled out $57,000 to Saks Fifth Ave. and $29,000 to Neiman Marcus.
By August 2008, the Blagojeviches had run up over $90,000 in credit card debt - more than half of the governor’s gross annual salary. Their total “consumer debt” by the morning of Blagojevich’s arrest was more than $210,000.
Last week’s trial included the playing of a surveillance recording from November 2008 of Blagojevich bitterly complaining about how his wife’s real estate business was all but dead. Reporters had dug through Mrs. Blagojevich’s client list in an attempt to show she often did no work for the money she made off of connected insiders. During that process, reporters called several of her former clients, and that, combined with the negative publicity and Mrs. Blagojevich’s real fear of a federal indictment led to her company’s collapse.
A minute or two later, Blagojevich whined about an upcoming financial burden.
“Amy is going to college in six years and we can’t afford it. I can’t afford college for my daughter,” Blagojevich exclaimed.
During the six days after he complained about his dire financial situation, Blagojevich plunked down $858 for four ties at Saks.
Apparently, the man couldn’t help himself. It goes without saying that $400,000 would’ve paid for a whole lot of college tuition for both of his kids.
It also goes without saying that prosecutors have established a very strong financial motive for several of Blagojevich’s alleged crimes.
Financially, he was in way over his head. The very real possibility of impeachment, which he constantly fretted about on the tapes, would dry up his future earning prospects. His wife’s career was in ruins. He was at the end of the line. There would be no more designer ties, handmade shirts and custom suits he so clearly loved. When Barack Obama won the president’s race and his U.S. Senate seat suddenly became vacant, Blagojevich pounced on the opportunity as his ticket out of debt and back to the high life.
It won’t be difficult for Blagojevich’s jurors to make this connection. They’ve seen the fancy clothes he’s worn during the trial. None of them are millionaires who could afford such nonsense, so this is a devastating attack by the prosecution.
I hope Blagojevich doesn’t mind wearing orange, because a federal jumpsuit is most probably in his future.
* The FBI agent who ran wiretaps on Blagojevich: “He was in his running suit. He was stretching, running in place, animated. I couldn’t believe it. He couldn’t sit still,” Cullen said. “He kept combing back his hair. It was almost like he’s awaiting going on camera. But we were just here [in the FBI office] — no one was going to see him.”
* After taking a ribbing for not disclosing his income tax returns (the topic that won’t go away) Republican lt. governor nominee Jason Plummer was asked about his favorite baseball team. His answer wasn’t exactly standard IL GOP fare…
* The Question: I just got back from a baseball trip to Texas (Go Sox!), so how about telling us what your favorite baseball team is and why?
* The New York Times engaged in gross hyperbole over the weekend…
…but many analysts, liberal and conservative, warn of a potentially far grimmer reckoning — Greece by Lake Michigan. Borrowing costs are rising, nonprofits that depend on taxpayer money are dropping contracts, and the state’s pension costs and unpaid bills balloon each month.
That’s what’s known as lazy journalism.
The state is suffering through a fiscal crisis, no doubt about it. But one of those vaunted New York Times editors that I always read about should’ve demanded that this reporter reveal the names of those “liberal analysts” who are making that “Greece” comparison. Also, the state’s borrowing costs are predicted to rise (although strong interest from foreign buyers could mitigate the price increase), but haven’t really risen yet.
The “Little Tribune” editorial writers at the Daily Herald were quick to pounce, of course…
This is Illinois, which the New York Times over the weekend dubbed “Greece by Lake Michigan.”
* Things are undoubtedly horrific, but let’s take a look at some facts.
A recent report from the Illinois Commission on Government Forecasting and Accountability shows Illinois is ranked 9th in the nation per capita on its outstanding debt. That’s high, but far from the highest.
As for total state expenditures, Illinois ranked 21st in the nation per capita. K-12 state and local spending is ranked at 22nd per capita. State and local spending on public welfare programs was 30th in the nation on a per capita basis. All of those are below the national average.
And there’s plenty of room for future revenue increases, if the populace decides to go with a Democratic governor this fall…
Illinois ranked 7th in the nation in the amount collected from state government individual income taxes in 2009 with a total amount of $9.2 billion. On a per-capita basis, Illinois ranked 31st. Illinois’ per-capita rate of $711 was below the national average of $801 and well below the 1st ranked state in this category, New York, at $1,885 per capita. Illinois has had a flat personal income tax rate of 3.0% since it was
increased from 2.5% in July 1993. Of the seven states with a flat income tax (most have graduated rates) Illinois’ has the lowest rate. […]
In 2009, Illinois ranked 9th in the amount of sales tax revenue collected with a total of $7.5 billion. California collected the most, generating $29.0 billion. On a per-capita basis, Illinois ranked 37th in the nation with a value of $579 per capita. As shown in Chart 9, in the Midwest Region, only Missouri (42nd) was ranked lower than Illinois.
Illinois Gov. Pat Quinn has handed out raises topping 20 percent to his staff at a time when he’s promising $1.4 billion in spending cuts because of the fiscal crisis. An Associated Press analysis of documents shows Quinn has given 43 salary increases averaging 11.4 percent since he became governor.
They include a $24,000 bump to the man overseeing state spending. Budget Director David Vaught got a 20 percent raise — to $144,000 — when he was promoted in October.
* After endorsing his opponent in the Democratic primary and refusing to endorse either general election gubernatorial candidate four years ago, the Illinois Education Association has endorsed Pat Quinn for governor. From a press release…
“There never has been a more clear-cut choice for governor and lieutenant governor of Illinois. The Illinois Education Association enthusiastically recommends Governor Pat Quinn and Sheila Simon to our members and to everyone who supports public education,” Swanson said.
IEA represents more than 133,000 education employees including elementary and secondary teachers, higher education faculty and staff, educational support professionals, retired educators and college students preparing to become teachers.
* Acknowledging that the IEA has had its differences with Quinn, IEA President Ken Swanson. But Swanson lashed out at Republican Bill Brady’s opposition to new revenues, his plan to convert defined benefit pensions to 401(k) funds with no state contributions and his support for making Illinois a “right to work” state. Watch his video…
The backing of the IEA, one of the two major politically active teachers unions in Illinois, is a big victory for Quinn. Odds of the union backing Brady were slim because he opposes tax increases and backs dismantling the state’s education bureaucracy. But Quinn has done little to move his agenda with the Democratic legislature.
*** UPDATE *** From the Bill Brady campaign…
“The union leadership has unfortunately chosen the status quo. Governor Quinn’s answer to the crisis in Illinois is to keep spending, borrow money and raise taxes. Pat Quinn will fight for massive tax hikes, while I strongly oppose them. I am advocating a strong jobs climate that generates lasting job opportunities and revenues.
Pouring more and more of our tax dollars into the bureaucracy with no plan and no accountability is not the solution for improving education. But under four more years of Pat Quinn, that is exactly what will happen. I am standing with teachers to redirect our tax dollars away from the bureaucrats into where we need them most — our classrooms. The choice is clear, and I welcome this debate in the months ahead.”
* Related…
* Cost of Governor’s Campaign Going Down: State Sen. Bill Brady (R-Bloomington), the Republican candidate for governor, estimates he’ll spend $13 million to $20 million on his campaign this year, far short of the $27 million Rod Blagojevich spent to win in 2006. Republican Judy Baar Topinka spent $9.8 million on her unsuccessful campaign. Brady says he’ll economize by allowing the Blagojevich corruption trial to do some of the talking. “A lot of people are focused on the trial right now, so spending money through the summer months is not necessarily the most productive use of resources, which may delay some of the spending,” Brady says.
* Tea party rally focuses anger on Obama policies, Illinois politics: “We don’t have a president, we have a usurper,” said McKiernan, who identified herself as a volunteer with the Brady campaign.
* Tea Party bags GOP speakers at rally of ‘true patriots’: “It’s time to turn the State of Illinois around, isn’t it?” Brady said, standing on the steps of the Ansel Cook Mansion with his wife, Nancy. “Are we tired of tax increases? Are we tired of not paying our bills? (Are) we tired of record unemployment?”
* Libertyville hosts Tea Party event: “We’re good, solid people who care about their government and won’t take for granted their government anymore,” Republican candidate for governor Bill Brady said.
Democratic U.S. Senate candidate Alexi Giannoulias didn’t have to pay any state and federal income taxes last year because of big losses tied to his family’s failed Broadway Bank, according to his campaign and tax returns released Friday.
The wealthy state treasurer stands to collect about $30,000 in refunds, but immediately announced he would donate the money to charities. Giannoulias sought to avoid having his tax situation become a campaign issue that could anger voters who make less money, pay their taxes and don’t have much sympathy for a rich guy getting a break.
Giannoulias reported $2.7 million in losses last year. That represents the 3.6 percent he owned in non-voting bank shares, said campaign spokeswoman Kathleen Strand.
You can try burying a story before the 4th of July weekend, but people like me won’t let you.
Also, what Giannoulias doesn’t say is that a charitable donation would give himself another big tax deduction for this year’s return.
* If you thought that Mark Kirk would tread a bit lightly on this topic since fellow statewide Republican candidate Bill Brady is basically in the same boat, you’d be wrong. From a press release…
“Alexi Giannoulias wants to raise our taxes but doesn’t pay any taxes himself. After costing the FDIC $394 million and wiping out $73 million in college savings, Illinois voters can no longer afford Alexi Giannoulias.”
In response, the Giannoulias campaign flat-out lied…
When asked for comment by TPMDC, the Giannoulias camp turned the story right back to Kirk’s own personal dirt, relating to his previous inaccurate statements about his military record. Giannoulias spokesman Matt McGrath told us: “It comes as no surprise given his record of mistruths, half-truths and untruths about his military record, but when he says Alexi wants to raise taxes, Congressman Kirk is lying. Again.”
Giannoulias doesn’t want to raise taxes? Then why did he tell the Illinois Education Association that he’s “said from Day One,” that Illinois “needs an income tax increase”? Here’s the video…
Giannoulias also told the Chicago Tribune that if he is elected he would vote to let some current federal tax cuts expire, which is, in effect, a tax increase…
The Bush tax cuts for the wealthiest Americans generated some of the largest deficits in U.S. history and contributed nearly $2 trillion to our deficits. Those tax cuts were unnecessary and irresponsible, and I would allow them to expire.
You can usually see the true character of a campaign during a crisis, and the Giannoulias campaign has totally failed the test this time.
* The Illinois Republican Party has called on Giannoulias to give the cash to the FDIC. From a press release…
The Illinois Republican Party today called on Alexi Giannoulias to send his $30,000 in tax refunds for 2009 to the Federal Deposit Insurance Corporation (FDIC) as a down payment on the $394 million loss the FDIC incurred after the collapse of Broadway Bank. […]
“Alexi Giannoulias’ unsafe and unsound banking practices ultimately led to the collapse of Broadway Bank and the loss of $394 million to the Federal Deposit Insurance Fund,” ILGOP Chairman Pat Brady said. “Alexi wants to raise our income taxes but doesn’t pay any income taxes himself. Instead of using his distasteful tax refund to win another tax write-off, Alexi should do the right thing and send his refund to the FDIC.”
Congressman Kirk just announced that he’s holding a press conference at one o’clock this afternoon. Kirk has a very real opportunity to turn this race around again. Charlie Cook recently moved this race from lean Republican to toss-up. It’ll probably go back to lean Republican again.
* My own opinion is that Giannoulias ought to write a check to the state and federal government equal to the amount owed on his state treasurer’s salary. It’s the same position I had on Bill Brady’s taxes.
Using private business losses to avoid paying taxes on an elected official’s government salary is just plain wrong. And it’s especially bogus during a period of time when the state can’t pay its bills and the federal deficit is soaring.
This was submitted by John Patterson, who is leaving the Daily Herald today….
Today is my final day in the Daily Herald’s Springfield bureau. The walls have been stripped clean of the decade’s worth of clutter I’d compiled with some help of some outstanding interns over the years. The fridge is Miller’s and I hereby bequeath him the futon — his interns have to sleep somewhere.
Note: Out of respect for the passing there is no sound…
And this seems like a fitting farewell. This guy spent some time in Springfield too…
Tax documents belonging to Alexi Giannoulias show the Democratic U.S. Senate nominee will receive a tax return of at least $26,000. From the AP…
Losing millions of dollars through his family bank allowed Senate candidate Alexi Giannoulias to get a tax refund of nearly $26,000.
An aide says the Chicago Democrat will donate the money to charity.
Giannoulias released tax returns Friday that show $2.7 million in losses related to the failure of Broadway Bank.
Spokesman Matt McGrath says Giannoulias lost more money that doesn’t show up on the returns. He says the total loss is between $7 million and $30 million.
The charity has yet to be identified in reports thus far.
The Sun-Times, which is reporting in its story that Giannoulias’ return is closer to $30,000, breaks it down a little more…
Giannoulias’ share in family trust funds plummeted from an estimated “$8 million to $40 million” down to an estimated “$2.5 million to $11.5 million,” according to the financial disclosure form he is required to file as a candidate for U.S. Senate.
Other family trusts are doing well enough that his net worth could range from $7 million to $29 million, the report said. That’s down from the $13 million to $62 million range he reported last year.
Giannoulias’ income tax returns show he earned $119,000 from his job as state treasurer. He reported $414,757 in capital gains.
More…
Also, the night his family bank was seized, Giannoulias said he would not be filing for an income tax break he might be entitled to for struggling businesses.
ADDING… Rich has asked whether Giannoulias received a complete tax refund on his state treasurer’s salary, but has heard no reply.
*** UPDATED ***
The Alexi camp says he did receive a complete tax refund on the salary.
* The Daily Southtown today praised Joe Berrios’ decision to drop his challenge to Forrest Claypool’s nominating petitions. Here’s how the editorial board summed up…
We wish more candidates would drop fruitless and expensive ballot challenges and adopt a more democratic approach toward contested races. Instead of trying to clear the field, they should embrace the fight. Prove yourself to voters. Game on.
May the best candidate win.
* The Question: Should it be more difficult to challenge petition signatures? Explain.
* Here’s some good news, the prosecution expects to wrap things up in two weeks…
Government prosecutors have on a couple of occasions said they’re ahead of schedule in their case against the former governor of Illinois.
Now, the Chicago Sun-Times has just learned that prosecutors may rest its case against Rod Blagojevich the week after next.
Judge James Zagel had set aside 15-17 weeks for the trial.
The trial is only now in its fourth full week and the government is already moving on from the bulkiest part of its case — testimony about the U.S. Senate seat.
While there’s expected to be additional testimony in that regard, including about a $1.5 million promise of a contribution in exchange for a Jesse Jackson Jr. appointment, numerous key recordings were already played about the Senate seat.
Government witnesses have taken the stand and delivered explosive testimony at a quick clip. Key witnesses — including former chief of staff John Harris and lobbyist Lon Monk were on and off the stand in a matter of a few days.
By contrast, Stuart Levine, the chief witness in the trial of businessman Tony Rezko, was on the witness stand in that trial for parts of 15 days.
* Remember, this is the same guy who blasted “Gucci-wearing lobbyists” and worked mostly out of his home and his campaign office…
In November 2008, Rod Blagojevich was plotting for a new job with his advisers, loudly complaining he was desperate for cash.
“Amy is going to college in six years, and we can’t afford it,” Blagojevich screamed on the Nov. 10 call. “I feel like I’m f—— my children.”
Four days later, he dropped $429 on two ties at Saks Fifth Avenue.
Two days after that, he hit Saks again, spending another $429 on a pair of neckties.
Blagojevich and his wife were awash in more than $200,000 in consumer debt when he was arrested in December 2008, federal agent Shari Schindler said at the former governor’s corruption trial.
“Sometimes they used credit cards to pay for other credit cards,” Schindler said. […]
Several entries, Schindler said, showed Blagojevich spent more than $10,000 a day on suits. A basket-weave tie from Saks cost $179.85. Around the same time, Schindler said, Blagojevich spent $2,590 in a single store on shirts. A charge on Patti Blagojevich’s card showed a payment of $3,800 for furs.
The couple displayed a special fondness for Saks, spending around $57,000 there over the six-year period - the fifth-largest itemized expense; they spent $28,000 at Neiman Marcus, the 11th largest. By comparison, in the same period, they spent less than $50,000 on child care and less than $100,000 on groceries.
The Rezko cash payments weren’t enough. They needed a lot more money to stay afloat. As I told subscribers today, there’s your financial motive.
On Thursday, Rich Miller, who runs the Capitol Fax blog, asked his readers, “What’s the most money you’ve ever spent on an item of clothing?”
Few admitted to spending more than $500, even fewer said more than $1,000.
Money is a mirror. How you spend yours reveals who you are. It reflects your activities and your aspirations.
The $400,000 Blagojevich and his wife spent on clothes during his years as governor offer a telling portrait, and a sad one.
It’s a portrait of a man out of touch and out of control, consumed by appearances, striving to belong to an elite of leading men and titans that the best suits in the world would never let him enter.
The jury will never forget - and won’t likely forgive - that IRS testimony.
[Vaught’s] peculiar assertion that borrowing $3.7 billion to make the state’s 2011 pension payments would be a form of refinancing unfunded pension obligations that have been piling up for decades was a stretch too far for us to accept.
What Vaught actually said was the state was trying to convert far more expensive “soft debt” to much cheaper “hard debt.” The pension funds charge the state 8 percent interest on old, unpaid debt. The bond markets charge about half that or even less. Much of that $3.7 billion that Quinn wants to borrow is for old debt, but not all, of course. The state is borrowing the entire amount owed to the pension funds, including money to make this fiscal year’s individual pension payments.
That’s not too hard to understand, is it?
* Tribune reporters weren’t all that supportive, either…
Gov. Pat Quinn pledged Thursday to whittle $1 billion in spending, his cuts hitting students and the mentally ill especially hard.
Even with his unprecedented power to shape the budget, Quinn’s cuts will do little to chop down the state’s mountain of debt. Illinois still faces a $13 billion shortfall next year. […]
It’s a budget that counts on a large dose of hope. Quinn is counting on Congress and President Barack Obama to come up with $750 million to help pay for health care for the poor. And the governor is hoping the Illinois Senate changes its mind and votes to borrow $3.7 billion to keep the pension system afloat.
Republicans pounced, contending that $891 million in Quinn’s cuts simply are promises to keep money in reserv
When a state supposedly run by grownups fails to do its job, the result is the budget Gov. Quinn signed Thursday.
It’s built around borrowing and whacks people who can least take the hit. The latest victims are people with developmental or other disabilities and those seeking mental health services.
If you’re not Medicaid eligible and you received state-funded counseling in June, you’ll probably be cut off soon.
If you’re not dirt poor and disabled, you could be out of luck if you need rehabilitation services.
And the pain you’ll suffer really gets Illinois nowhere.
One of the main sentiments expressed Thursday about Illinois’ new budget was disappointment - either in the cuts made, or that the state put itself in a position to render such cuts necessary.
AFSCME is also concerned about an executive order Quinn issued Thursday directing state agencies to make further reductions on their own, ranging from curtailing travel to canceling unnecessary subscriptions and memberships to slashing printing expenses by 25 percent.
One part of the order also directs agencies to develop a plan “to limit expenditures associated with group insurance, including increasing employee and retiree group insurance co-payments and deductibles.”
“We’re very firm in our belief that our contract sets contribution rates for state employees and retirees,” Lindall said.
Vaught said the administration intends to bargain with unions over the issue.
After speaking with state Department of Human Service officials on Thursday, one thing is clear for SPARC in Springfield, according to Carlissa Puckett, SPARC chief executive officer.
The agency’s Epilepsy Resource Center, funded with grants from state general revenue, will close, Puckett said.
Republican State Senator Matt Murphy is skeptical about Illinois Governor Pat Quinn’s budget cuts. […]
MURPHY: I think it’s another insincere effort at convincing… a head fake towards fiscal responsibility to get through the election when they can pass an income tax hike.
The education budget cuts announced Thursday were not as bad as they could have been, according to local education officials, who remain uncertain about when they’ll actually get the money.
As part of $1.4 billion in budget cuts, Gov. Pat Quinn trimmed $241 million from several school grant programs. He left the general state aid formula, the centerpiece of the state’s funding for schools, intact.
“It’s far better than it could have been,” said David Wood, Bloomington District 87’s chief legal and financial officer.
Among the $6.5 million Decatur has yet to receive for the fiscal year just ended on June 30 is transportation funding.
“What am I supposed to do if I can’t fund transportation? How am I supposed to get children to school?” she said. “How are we supposed to function? What am I as a superintendent supposed to do? We’ve already cut $7 million from our budget. What am I supposed to do to make sure that the staff receives salaries and benefits and the children are educated? You need staff to educate children.”
The district is working on a month-to-month basis right now, she said, because there’s no way to predict when or if state funds will show up. Last week, districts throughout the state finally received a long-overdue payment, which brought them up to November. They’re all still owed payments from December through June.
The only agency that will see an increase in funding is the Department of Health Care and Family Services, where the budget went up by $162 million. The department will have to make a $7.2 million cut in operating costs. About $169.2 million will go toward getting certain Medicaid providers on a 30-day reimbursement cycle, which is required to capture a higher match of federal funds.
* I told you yesterday how Bill Brady reacted to the budget. Here’s the Quinn campaign’s response…
Governor Quinn’s strong action today makes the contrast between the two candidates even sharper.
After a thorough review of the state budget, Governor Quinn struck a balance - cutting $1.4 billion in state spending, while protecting healthcare, education, and public safety programs to nurture Illinois’ economic recovery.
As a member of the Illinois General Assembly, Senator Brady had the chance to lead this session. Instead, he stood in the way of every constructive plan that was put forward and has routinely placed politics ahead of Illinois residents.
He’s proposed a billion-dollar tax cut for big businesses without specifying how he’d pay for it. He has called for a 10 percent across-the-board cut for state departments, which would drastically reduce vital services such as education, health care, and public safety while making the state ineligible for federal matching funds. And he’d lower the minimum wage for hard-working families.
Bill Brady’s every economic proposal has been derided by experts. It’s apparent that Senator Brady fails to understand the complexities of our budget.
* If you were wondering whether gun owner rights groups would challenge Chicago’s new gun restriction proposals, this could be your answer…
“There are numerous problems,” said Alexa Fritts, a spokeswoman for the National Rifle Association. “It is extremely restrictive and completely against the intent of the Supreme Court ruling.
“It is ludicrous for someone to fear prosecution for fending off an attacker in their garage,” she added.
The National Rifle Association argued that mandatory classroom training, parental permission, registration fees and one gun-a-month limit are “unconstitutional impediments” to gun ownership.
Professor Ann Lousin of the John Marshall Law School said that doesn’t mean this ordinance won’t face legal challenges. She said the registration provisions will likely be the first thing challenged in court.
The National Rifle Association has already threatened to challenge a new gun ordinance.
In The Week Magazine, National Rifle Association chief Wayne LaPierre said any “byzantine labyrinth of regulations and restrictions” would be contrary to the spirit of the Supreme Court decision, and “the opinion of Mayor Daley doesn’t entitle him to throw out the Bill of Rights.”
Union leaders want construction contractors to come to the negotiating table this weekend, before a scheduled Wednesday meeting, to settle a strike that has stopped work on the Eisenhower Expy. and other area road and building projects.
“Our members are on strike, and we want to get back to negotiating,” said James Sweeney, president of the International Union of Operating Engineers, Local 150, which represents heavy-equipment operators. “Why wait?”
“Why strike?” retorted Tom Nordeen, chairman of the Mid-America Regional Bargaining Association, which represents contractors. MARBA wants to stick to the July 7 date.
Obviously, we have a complete standoff on our hands. More…
“We made ourselves available 24 hours a day, and the employers only agreed to meet four times in the entire month,” said James Sweeney. “The livelihoods of thousands of working men and women depend on these negotiations, and while we have made ourselves available, the employers are running out the back door of meetings.”
MARBA representatives have said that they are not seeking to reduce wages, and expressed surprise that working laborers would leave their jobs in the midst of such an unstable economy.
Sweeny said the union is not seeking a wage increase for the next three years, but added that the contractors have an obligation to help cover the increased costs of health care and unemployment benefits.
“We are feeding 1,000 families a week with boxes of food. We are covering COBRA payments for 1,200 families who have lost health-care coverage. We have spent millions upon millions of dollars to make sure that our members are provided for, so for them to insinuate that we are not aware of the economic conditions is insulting,” Sweeney said.
“Their negotiations have not been in good faith,” said James Sweeney, president of IUOE Local 150.
“We see no reason for a strike. We are going back negotiating on the 7th. It was mutually agreed upon yesterday,” said Lissa Christman, MARBA.
“It was a dictated date. They walked out and told us that would be the date they were coming. If they’re saying that, it’s an untruth,” said Sweeney.
* Gov. Quinn has asked his top staff to call around and see what he can do, but no action has yet been taken. Gov. George Ryan intervened years ago to stop a similar strike.
* Most of the projects would’ve been shut down anyway for the July 4th holiday, but without some sort of intervention, this work action could last well into the month…
The strike so far is not expected to cause major delays for state road projects because the Illinois Department of Transportation typically suspends construction wherever possible before a holiday weekend, said IDOT spokeswoman Marisa Kollias. She said that even without the strike, IDOT would have shut down construction on roadways by 3 p.m. today.
* The Eisenhower Expressway project appears to be the biggest one involved…
For now, the labor dispute has put the brakes on some 300 projects. If it drags on for awhile, the biggest concern is the Ike.
Projects on hold ranged from a 32-story structure being built at Roosevelt University to a main thoroughfare in Oak Park that will now have to wait for its second layer of asphalt.
Elgin-area projects on hold include work that was supposed to start Tuesday on a bridge between King Arthur Court and Rohrssen Road/Littleton Trail on Route 19 (Irving Park Road) that goes over the EJ&E rail line. The work had been expedited to take just a month because IDOT intends to close the road entirely in the work zone while completing the $248,000 project.
State Rep. Keith Farnham said he talked with IDOT officials, who told him if the strike should linger until late summer, the project could be delayed for a year to avoid closing the road while school is in session.
Motorists are enjoying a relatively traffic free commute into the city this morning after two major highway workers unions enacted a strike after negotiations with contractors fell through.
Cars were cruising, lanes were open and nary a construction worker could be seen.
The Illinois Department of Transportation cleared most roads of lane closures, signage and gear in preparation for the Laborers District Council of Chicago and the Local 150 of the International Union of Operating Engineers strike Wednesday morning. The workers’ equipment is parked out of the way on road shoulders.
