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[Posted by Barton Lorimor]
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.
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Question of the day
Friday, Jul 2, 2010 - Posted by Rich Miller
* 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.
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Prosecution will finish in two weeks
Friday, Jul 2, 2010 - Posted by Rich Miller
* 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.
He was in way over his head…
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.
* Mary Schmich wraps it up nicely…
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.
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* The Chicago Tribune editorial board takes Quinn budget director David Vaught to task for a comment Vaught made yesterday on the pension borrowing plan…
[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
* The Sun-Times wasn’t impressed..
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.
* This lede pretty much sums up the budget plan…
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.
Case in point…
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.
Another one…
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.
* And on the other side…
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.
* One bright side…
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.
But every bright side has a dark side…
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.
Another one.
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.
* Related and a roundup…
* Quinn seeks to cut state budget $1.4B
* Quinn budget cuts $1 billion, leaves $13 billion hole next year
* Quinn announces budget cuts
* Quinn describes deep cuts, says more may be coming
* Quinn signs new budget, but details still lacking
* Quinn’s budget still fluid
* Quinn, Legislature failed to fix budget
* Debt and denial
* State Senator Murphy Skeptical Governor Will Cut Spending
* Teacher Union Wary of Illinois Budget Cuts
* Local educators: State cuts could’ve been worse
* Cutbacks greet new U. of I. chief
* U of I president to look beyond govt. for funding
* Groups wary of budget cuts to social services
* Social services feel the blow
Allocation Summary
Historical Approp Master 1
Historical Approp Master 2
Budget
Emergency Budget Act
Executive Order 10 - 2010 - Spending Reductions SCANNED
Executive Order 10 - 2010 - Spending Reductions
Reduction Veto Message
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* 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.
More…
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.
More…
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.”
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No end in sight to strike
Friday, Jul 2, 2010 - Posted by Rich Miller
* Striking construction workers are trying to turn the tables on management…
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.
More…
“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.
But that isn’t the only project impacted by the strike…
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.
More…
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.
* There is an upside, I suppose…
Why don’t these guys strike more often?
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.
* Your thoughts?
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