* Carol Marin writes about the next big federal corruption trial. Bill Cellini’s trial will begin either late this year or early next year. But there’s a problem…
He’s charged with trying to shake down, with the help of Levine, Rezko and Kelly, a Hollywood movie producer. In exchange for allowing that producer’s investment company to handle $220 million in state teacher pension funds, the producer would be required to kick back cash to them. Or give Blagojevich a $1.5 million campaign contribution as a thank you.
It didn’t happen. The producer refused to be extorted but got the state business anyway.
At Rezko’s trial, it was the only thing he was acquitted of — raising the question of how strong this same charge is against Cellini.
We don’t know.
Nor do we know if the government has more alleged pay-to-play schemes up its sleeve.
We’ll see when the government files its proffer.
It’ll be quite fascinating, I’m sure. But, as Marin rightly notes, there won’t be long lines waiting to get into the courtroom or any national TV coverage.
* This morning’s court action was about what happens if Blagojevich is found guilty. Forfeiture and new evidence…
U.S. District Judge James Zagel just concluded a brief session in court to lay out some of the details of another hearing he might hold to instruct the same jurors if they ultimately find Blagojevich guilty. In that event, the jury will be sent back to decide what personal and political assets Blagojevich should be required to forfeit as part of his punishment.
Blagojevich and his wife, Patti, could lose property they own, including their Ravenswood Manor home. Also at issue is control of cash from the ex-governor’s political fund, Friends of Blagojevich, which has been tapped for court-approved payments to lawyers and other expenses.
Before jurors would adjourn to decide what should be forfeited, prosecutors said they planned to briefly present new evidence concerning the political fund that wasn’t presented at trial. Zagel said the timing of the forfeiture hearing would depend on what time of day the jury returned its verdict.
I’ve seen the best minds of my generation, starving, hysterical tired, waiting for a Blagojevich verdict.
The 2nd Floor of the Dirksen Federal Building, where the cafeteria and couches are located, is full of reporters from every local TV station, working on their laptops. They are huddled at tables that are located near electrical outlets, in order to keep their laptops charging in the event of a verdict.
Most are reading the headlines from the day on news websites. Just two tables over, half of Rod and Robert Blagojevich’s defense team sits. They are on hand, waiting for any possible jury questions. Sam Adam Jr. & Sr. are not here.
The federal marshal won’t even say what they’re eating for lunch.
Any suggestions for how they might get through their days?
* Roundup…
* Sign Shop Chief Ousted by Blago’s Team Loses Appeal: An Illinois employee who was fired and replaced by a political ally of former Gov. Rod Blagojevich’s administration lost his First Amendment lawsuit against state officials in the 7th Circuit. The Chicago-based federal appeals court ruled that the state officials are immune from William Moss’s lawsuit for damages, even though the firing was politically motivated.
* The US Chamber of Commerce has posted a tough new TV ad on YouTube which blasts Alexi Giannoulias. I’m checking the buy at the moment. Subscribers may know more tomorrow. Rate it…
Illinois Senate candidate Alexi Giannoulias is about to take a hard hit from the U.S. Chamber of Commerce, as the powerful business lobby goes on the air with a commercial slamming the Democrat’s “record of failure” and linking him to the state’s 10.5 percent unemployment rate. “Does anyone think Alexi Giannoulias can create jobs?” the commercial begins. “Look at his record of economic failure: Giannoulias was an executive at Broadway Bank, which was driven into the ground and taken over by the feds. As Illinois state Treasurer, Giannoulias lost $85 million in college savings for parents, causing more pain.” The new ad hits the airwaves a day before President Barack Obama makes a long-awaited trip to Chicago to raise money for Giannoulias.
* If Giannoulias had any campaign cash, he might be able to share this report from Wall Street Journal’s MarketWatch…
The financial industry spent $251 million as it sought to tamp down the financial-reform bill that was recently signed into law. Brokerages and banks, which were kept afloat through a bailout valued at more than $1 trillion, spent a whopping $84 million alone. Insurers, which were also battling health-care reform, spent $85.9 million through July 26, according to the Center for Responsive politics. See the latest data at Opensecrets.org. […]
So who were the pigs at the trough? Sen. Charles Schumer (D., N.Y.) received $2.14 million. Rep. Mark Kirk (R., Ill.) received $826,149, and House Majority Leader Harry Reid (D., Nev.) accepted $742,445 from the securities industry alone.
“Pigs at the trough” is a great line. Trouble is, Kirk is sandwiched in between two Democrats. Then again, Kirk voted against the financial reform bill, while those two Dems voted for it. From NBC5’s blogger…
Obviously, Kirk is a much cheaper vote than Schumer. Schumer wouldn’t do Wall Street’s bidding for $2 million. Kirk needed less than half that.
Kirk should take that “pigs at the trough” statement as a compliment. No candidate ever lost an election because he had too much money. Schumer is an enormously successful politician who won his last election with 70 percent of the vote, and is given a 100 percent chance of winning again this year by fivethirtyeight.com. Kirk could have worse company.
* Meanwhile, Rod Blagojevich’s biggest radio cheerleaders Don & Roma are shocked - SHOCKED - that Giannoulias’ family bank loaned some money to a company affiliated with Tony Rezko. Listen…
Look, it’s a legit issue. I get it. But these two people have literally fawned all over Blagojevich for more than two years. It’s one of the most embarrassing transformations I’ve ever seen. I’m so disgusted with their behavior that I refuse to appear on that station. Giannoulias wasn’t mentioned in Rezko’s original indictment, but Blagojevich was. Their duplicity is simply mind-boggling.
*** UPDATE *** Ex wives are not always the most reliable sources, and should probably be left alone. But Kimberly Vertolli appeared at Mark Kirk’s campaign kickoff last year and said he’d make a fine US Senator. And now Chicago Magazine has published part of an interview with Kirk’s ex that is pretty darned explosive…
Her marriage to Rep. Mark Kirk (R-10th Dist.) may have ended amicably in June 2009, and the two may remain friends today, but Kimberly Vertolli said that she will not “advocate” for her ex in his Senate run because she fears he is too influenced by a “Svengali figure” in his life—a former staffer named Dorothy “Dodie” McCracken. […]
[Carol Felsenthal]: Is there any kind of insinuation that there’s any kind of romance going on between them?
[Kimberly Vertolli]: I will not characterize their relationship. […]
CF: Was it political differences that contributed to you and Mark divorcing?
KV: I think that if Dodie McCracken had not continued to be in our lives, we probably would still be married.
Oof.
And then there’s this…
CF: What about the rumors that Mark Kirk is gay?
KV: That’s been going on since he first ran. It’s highly unusual for a man to have been married to a woman for eight years and not produced children. And it’s unusual for a man to have not been married until he’s 40 years old. [Kirk was 41]. So people get suspicious. It’s human nature. When we don’t understand something, we want to attach an explanation to it. It’s not an accurate explanation that Mark is gay, but nevertheless, that’s how some people choose to reconcile it.
Vertolli told Chicago Mag that she won’t be voting for Kirk because of his vote against a bill to eliminate “Don’t Ask, Don’t Tell” - a vote that she blamed on Ms. McCracken.
* Obama could raise big money in Chicago: At the Palmer House, the president will help his protege Giannoulias, talking to a crowd that paid up to $2,400 a ticket at an event a Democratic Party source estimates will bring in about $1 million.
* I don’t know too many truly whacked-out people, so I don’t get a lot of those crazy chain e-mails claiming that the preznit is the Antichrist, or something. But, since it’s Barack HUSSEIN Obama’s birthday today, I thought I’d share one of those Illinois-related e-mails which was forwarded to me by a subscriber, who saw right through it. The e-mail included several photos, and here are a few…
The text…
New Cook County Correctional Center, Chicago, Illinois
It shows that in most cases the quality of life for prisoners has improved considerably from what you might expect.
Oh yea, they can also choose from the menu!?
Let me see now ..
Who was the US Senator who helped arrange the funds to build this beautiful “punishment center”???
Oh yes, it was Obama!!!?
No wonder he sees nothing wrong with the wasted spending in his “Stimulus Plan”.
This is where he plans on putting the terrorists from Gitmo, and we have Americans living in cardboard boxes on the streets that have never killed anyone. Nothing makes sense anymore.
The facility in the photographs is actually the Justice and Detention Center in Leoben, Austria, designed by renowned architect Josef Hohensinn. I’m sure Sheriff Dart is amazed that he has such a nice jail. Anyway…
* The Question: What is the weirdest chain political e-mail you’ve ever received? Please, keep it clean, and keep this to politics only. Thanks.
Saying he is out to restore “the integrity of the state” and take on those who are “afraid” of House Speaker Michael Madigan, House Minority Leader Tom Cross Tuesday presented a package of bills he called the Cook County Property Owners’ Bill of Rights and aimed specifically at undercutting the power of Democratic leaders Madigan and Joseph Berrios.
The bills would bar contributions to the Cook assessor or any commissioner on the Board of Review or the County Board by anyone with a pending assessment appeal, and also would ban those county officials from working as registered lobbyists on behalf of other entities.
Mr. Cross also proposes that both offices maintain a public log of ex parte (unofficial) communications, disclose all decisions within 48 hours and establish a Web site that allows searches by law firm, size of appeals granted and other categories.
“Illinois residents don’t believe that politicians are always acting in their best interest,” Mr. Cross said. “We need to put rules in place to create an environment where the public can again trust elected officials.”
* The proposal is aimed right at House Speaker Michael Madigan and Cook County Board of Review Commissioner Joe Berrios. The two have a wonderful little relationship. Madigan has clients at the Board of Review. Berrios is a Springfield lobbyist. Madigan put Berrios in charge of the Cook County Democratic Party. Berrios, making perhaps the biggest mistake of his entire life, is now running for county assessor.
“The proposals released today by House Minority Leader Tom Cross and the House GOP caucus are strong ideas. They take dead aim at the outrageous conflicts of interest that raise our taxes and undermine the integrity of our property assessment system. As a candidate, I have refused contributions from property tax appeal attorneys. As Assessor, I will implement transparency initiatives on the office web site so that citizens can see clearly how the process is operating, and for whom. I will also travel to Springfield to advocate for passage of these reforms so that voters in Cook County can have their faith in government restored,” said Claypool.
Cross’ complete press release can be read by clicking here. Despite the nature of the event, the Cross proposals received scant coverage in the Chicago media and only rated passing mention by the Tribune editorial page today. The reason? Everybody figures this ain’t going anywhere. Senate President John Cullerton also handles property tax appeals.
Madigan spokesman Steve Brown questioned the timing of the proposals - in midsummer, after the regular legislative session has ended, and three months before the general election.
“If it walks like a duck and it talks like a duck, it must be a political stunt,” Brown said, adding that newspaper investigations have turned up no evidence of preferential treatment for Madigan’s clients.
* Former Blagojevich/Quinn cabinet member registers as lobbyist: Barry Maram, former director of the Illinois Department of Healthcare and Family Services, joined Chicago-based Shefsky & Froelich Ltd., a law firm that represents a major drug company, lottery vendors and riverboat gambling ventures, according to the filing with the Illinois Secretary of State’s Office.
* Illinois GOP Leaders Hosting Glenn Beck, Andrew Breitbart At Conservative ‘Right Nation’ Event
* Republican congressional candidate Randy Hultgren blasted away at Democratic Congressman Bill Foster yesterday for taking money from Maxine Waters…
As Bill Foster continues to evade concerns about his close relationship with corrupt Democrat colleague and donor to his campaign, Charlie Rangel, a new round of charges from a House Ethics panel reveal that Foster is sitting on even more controversial contributions.
Democrat Rep. Maxine Waters has been charged with abusing her position of influence to steer bailout funds to a bank with ties to her family. Waters has given Foster at least $1,000 […]
“By holding on to these dirty campaign contributions, Bill Foster is sending a clear message that he has no issue with the culture of corruption in Washington,” said Hultgren For Congress Spokesperson Veronica Vera.
Trouble is, Hultgren’s opposition research doesn’t appear to be up to snuff. Congressman Foster’s campaign responded with a humorous press release…
Hey Mon! You Got the Wrong Guy. Hultgren Campaign Apparently Believes Jamaican Man on Left Represents the 14th District of Illinois
(Batavia, IL): Today, the campaign of U.S. Rep. Bill Foster responded to challenger Randy Hultgren’s latest desperate attack by informing Hultgren’s struggling campaign that it was Gary Foster of Jamaica – not Rep. Bill Foster of Batavia – that received a contribution from Congresswoman Maxine Waters.
On Monday, August 2, the Hultgren for Congress campaign issued a scathing yet embarrassingly false press release condemning Rep. Bill Foster for taking a contribution from Rep. Maxine Waters of California. The only problem was that the contribution was to Gary Foster, a Jamaican politician described in press reports as “the Jamaican Obama,” instead of 14th District Congressman Bill Foster, a scientist and successful businessman.
Brandon Pinette, the Campaign Manager for Bill Foster for Congress, said, “Many people had told us to expect this kind of thing from State Senator Hultgren, especially after his baseless attacks on Ethan Hastert in the primary, when he sent out mailings attempting to tie Denny Hastert’s moderate Republican son to “human trafficking.”
Oops.
Also, according to the Foster campaign, the Rangel contributions were donated to the Northern Illinois foodbank March 1st, 2010.
The Department of Healthcare and Family Services, which oversees Medicaid for the poor, will lose $216 million, or about 2.7 percent. Last month, Quinn said the agency would be one of the few getting more money.
The Department of Human Services is being cut by $576 million, about 14 percent. Originally, the department was going to lose just $312 million.
Education spending, from preschool to high school, will be cut by $311 million, or about 4.3 percent. Quinn announced last month that education would be cut by $241 million.
The school cuts include $146 million for student transportation and $68.5 million in reading improvement block grants.
Quinn’s budget office said the total additional reductions amount to about $891 million. Quinn held a news conference in July to say he would be cutting $1.4 billion from the budget, but he did not specify then how the entire $1.4 billion would be achieved.
“He said details would be forthcoming,” said Quinn budget spokeswoman Kelly Kraft. “This details the (entire) $1.4 billion.”
* Here are the education cuts…
Overall, P-12 education funding is reduced by $311 million in the fiscal year 2011 budget. Reductions include:
• $146 million in student transportation
• $68.5 million in reading improvement block grants
• $16 million in hold harmless subsidy to school districts with declining enrollment
• $3 million in operations and support programs at the State Board of Education
• $80 million in support for other grant programs
Not a whole lot of detail there. According to the SJ-R, that student transportation cut is a 42 percent reduction from last year. We’re still waiting on a Quinn campaign press release blasting the governor’s education cuts for surely causing property taxes to skyrocket [/snark].
* Some agencies receive a boost, like Veterans Affairs…
Overall, funding for the Department of Veterans’ Affairs is increased by $7.8 million in the fiscal year 2011 budget.
• $8.2 million increase in operations, mostly for staffing at veterans’ homes to increase the level of nursing care provided to resident veterans.
• $0.4 million reduction in grants
* And some lines were restored or cuts averted over at the Department of Human Services…
Community Mental Health Residential services have been restored.
Funding has been identified to mitigate Developmental Disabilities rate reduction.
Teen REACH and Safety Net Works are maintained with minor reductions.
But DHS was in line for other cuts…
• $60.3 million from operations
o Impacts operations at local offices, state psychiatric hospitals and developmental centers; DHS will achieve operating efficiencies through review of contracts and programmatic changes
• $515.7 million from grants
o Reduces or eliminates non-Medicaid programs in mental health, developmental disabilities and rehabilitative services
o Extends payment cycles for developmental disabilities programs
o Reduces Community Health and Prevention programs
* And Quinn is still counting on a higher level of federal Medicaid reimbursement…
Overall, funding for the Department of Healthcare and Family Services is decreased by $216 million in the fiscal year 2011 budget.
• $207.8 million decrease in Medicaid lines and Group Insurance. The department plans to enact various quality and efficiency initiatives.
• $8.0 million in operations reductions
Assumptions include continued enhanced federal Medicaid match (FMAP).
Without that FMAP cash, those cuts will have to be deeper.
* But details matter, and we don’t have a lot. For instance…
Overall, funding for the Illinois State Police is reduced by $18.8 million in the fiscal year 2011 budget. […]
Funding to support AMTRAK operations will be $2 million less in the fiscal year
2011 budget with no reduction in service.
That’s all the explanation we have for ISP and Amtrak. Not much.
Earlier this morning, the U.S. Senate voted to overcome a Republican fillibuster of legislation providing state governments with $26 billion to prevent teacher layoffs and Medicaid cuts. U.S. Sens. Susan Collins (R-ME) and Olympia Snowe (R-ME) sided with Democrats after Senate Majority Leader Harry Reid (D-NV) rolled back $11.9 billion in food stamp benefits that were first approved as part of the economic recovery bill last year. (This move comes one day after Illinois announced a record increase in Supplemental Nutrition Assistance Program participants.)
Illinois is in line for $750 million in Medicaid and $415 million in education funding.
*** UPDATE 2 *** Related and a roundup…
* Sun-Times: Now isn’t the time for thinking small: The real shame is that Quinn has now backed himself into a corner. If he wins re-election, he can propose no more than the 1-percentage point tax increase, offering up a measly compromise when Illinois needs tough, courageous leadership.
* Cook Co. Treasurer Pappas furious over tax law: “This is a bad economy,” Pappas told the Sun-Times. “Springfield comes in, Quinn comes in and says now you’ve got to pay right away. And he says he’s on the side of homeowners? What planet is he on? This is outrageous for taxpayers. It’s outrageous. Who’s advising him and what is he smoking?”
* Tribune: The bad guys won: The Illinois Gaming Board’s efforts to keep organized crime out of state-sanctioned gambling could leave veterans with no place to go on a Tuesday night. That’s Gov. Pat Quinn’s rationale for signing a bill that strips regulators of the discretion they need to police thousands of new video poker terminals coming online soon.
The state Department of Human Services announced Tuesday that the June caseload is 786,162 households, an 11.9 percent increase over June, 2009, a release from IDHS said. The SNAP (Supplemental Nutrition Assistance Program) is fully federally funded.
SNAP applications increased 27 percent from a year ago, from 140,473 applications in June 2009 to 178,415 in June 2010, the release said. This is part of a national trend. For the first time in U.S. history, more than 40 million Americans are on food stamps, and the USDA projects that number will reach 43 million in 2011.
Two top executives at Tribune Co. engaged in “intentional fraud” in late 2007 when working to finish the $8.2 billion sale of the company to Sam Zell, an examiner said in a 1,500-page inquest into its bankruptcy.
Chandler Bigelow, a company treasurer who was promoted to chief financial officer after Zell took over, and former Senior Vice President of Finance Donald Grenesko falsely assured the deal’s financiers that the company had an opinion from Morgan Stanley that it could refinance debt in 2014, the examiner said. The assurance, which Morgan Stanley told the examiner it never gave, was essential for Zell to complete his debt-loaded takeover.
The release of the examiner’s report also forced the company to push back the scheduled start of hearings to confirm its reorganization. Junior creditors said the report makes billions of dollars of first-in-line claims on the Tribune estate subject to legal attack.
“The number of homicides today is far lower than a decade ago. But numbers don’t provide much consolation if you’ve lost a family member or a friend to violence or feel vulnerable to its awful grip,” Daley said Tuesday after a crime-fighting summit with State’s Attorney Anita Alvarez, Cook County Sheriff Tom Dart and aides to Chief Circuit Judge Tim Evans.
Weis noted that crime has dropped for “19 consecutive months” and that July homicides were down 24 percent from the same period a year ago.
He blamed a “24/7 news cycle” for creating the mistaken impression that crime is on the rise.
The lawsuit, filed Monday in federal court in Chicago, claims the teachers’ rights were violated under the Illinois school code and the union contract because at least some layoff decisions were not made based on seniority. The union further argues that teachers’ due process rights were violated.
“CTU’s affected members have had no opportunity or other procedural due process required … to be heard as to why they should be retained,” the complaint states.
The suit also challenges the district’s plan to terminate about 200 teachers who were rated unsatisfactory. The union claims the move would violate the teachers contract, but school officials argue it is allowed under the Illinois school code.
Chief of staff Joe Fratto, 55 and hailing from Bridgeport, is leaving in August for another county job: chief of staff for Cook County Treasurer Maria Pappas.
Pappas is charged with collecting the county’s property tax bills. Her current chief of staff is retiring.
The proposed law would require anyone soliciting or distributing materials on private property to obtain a city permit. This includes publishers of newspapers, but it also includes those handing out fliers or collecting for charity.
The new law would prohibit delivering those materials to any house with “no trespassing” or “no soliciting” signs and, in all other cases, require the printed matter to be secured so the wind does not blow it.[…]
Alayne Weingartz, the city’s top attorney, heard strong opposition from two newspaper companies, Sun-Times Media (publishers of The Beacon-News) and the Chicago Tribune. Tiffany Wohlfeil, attorney for the Tribune, cited the First Amendment and promised newspaper companies would sue.[…]
County board members Tuesday unanimously endorsed a formal letter to CMAP officials objecting to several key portions of the plan, most notably its call for tax reform that may include imposing a state sales tax on service and ridding the state’s flat income tax in favor of a graduated tax.
“The biggest point we want to make is that we do not want any tax increases,” said Tina Hill, chairman of the McHenry County Board’s planning and development committee. “There’s plenty of tax dollars (to the state government). They just have to decide how to spend it.”
* Antioch police chief on leave as officials probe attack claim
We understand that lawmakers and area leaders are trying to prevent a chilling effect on economic development here. However, they also need to think about what happens if this bill encourages new development and there’s a flood before the levee repairs are completed.
* The Flubs have sucked so badly this season that I haven’t bothered to engage much in one of my favorite pastimes of messing with their fans. I mean, 13.5 games out of 1st? An 18-1 loss to Milwaukee which included a franchise record 26 hits given up?
Look, I know that the White Sox lead in their division may not hold up. We’re only just one game ahead of the Twins. But we are beating the absolute snot out of Detroit today, so I thought I’d chime in with an afternoon question…
* In a somewhat strange turn of events, a couple of historically moderate Republicans, House Republican Leader Tom Cross and Senate GOP Leader Christine Radogno, are co-hosting an ultra-conservative national event next month in Illinois. Andrew Breitbart and Glenn Beck are both speakers at the Right Nation 2010 extravaganza. From a press release…
Right Nation 2010 announced today that Andrew Breitbart will be joining fellow conservatives, Republicans and Tea Party Independents at the September 18 event. An outspoken conservative, Breitbart has built a reputation as a public figure unafraid to take on the liberal left or the controversial topics of the day.
The founder of Breitbart.com, Breitbart.tv, Big Hollywood, Big Government, Big Journalism, and Big Peace, Breitbart is also a commentator for the Washington Times and various news programs, as well as an author and publisher.
Breitbart joins conservative icon Glenn Beck, Former House Majority Leader Dick Armey, Congressman Aaron Schock and Tea Party leader Herman Cain, as well as journalists Stephen Moore, John Fund, and others.
House Republican Leader Tom Cross has long had a reputation as a moderate, but he’s been pushing hard against that for the past year or so. The same goes for Senate GOP Leader Christine Radogno. Both leaders are listed as hosts of Right Nation 2010. Several local tea party groups are listed as partners. Cross’ House Republican Organization is one of the sponsors.
State budget shortfalls pose a “significant” or “severe” risk to the national economy. The loss of tax revenue has forced state and local governments to cut services and lay off workers. […]
At the same time, state budget shortfalls have emerged as a major threat in the economists’ view. State and local governments cut their spending in the first three months of this year at a 3.8 percent pace. That was the biggest cutback since the second quarter of 1981, just before the economy entered a severe recession.
When states and localities tighten spending by trimming services and jobs, the cutbacks ripple through the broader economy, causing individuals to spend less, too. The drop in state and local government spending shaved about half a percentage point off the U.S. gross domestic product in the first three months of this year.
Nearly two-thirds of the economists view the states’ budget crises as a significant or severe threat to the rebound. [Emphasis added]
I’ve been saying for well over a year that the administration and the Congress screwed up badly by not giving the state’s a bigger helping hand. One of the reasons for the failure of the economic stimulus was that the states counteracted it with their spending cuts.
And, to be clear, I’m not necessarily saying that the stimulus should’ve been bigger, although many would. I am saying that more money sent the states’ way and less spent on things that barely stimulated anything would’ve been the smart thing to do. But, no.
* Our chart of the day is from the Rockefeller Institute and looks at quarterly state tax revenues for all states since the beginning of 2007…
Reid said he is now more confident of getting a small-business relief bill through the Senate this week, including significant tax breaks for companies and a $30 billion Treasury-backed loan facility. But new budget problems Monday cast fresh doubt on the Senate’s ability to deliver on a White House-backed state and local aid package designed to avert tens of thousands of layoffs, including teachers, in the fall.
Just hours before a scheduled cloture vote Monday, the Congressional Budget Office informed Senate leadership that it was still about $5 billion short of offsetting the full $26.1 billion cost of the package. […]
Within the aid package, $10 billion is dedicated to protecting teaching jobs, and the remaining $16.1 billion is to help governors meet their state Medicaid payments for the first half of 2011. In both cases, the funds would essentially extend relief provided under the giant economic stimulus bill enacted soon after Obama took office last year. But Democrats have pledged to fully offset the costs through a combination of tax reforms and spending cuts, about $10 billion of which came from the recovery act.
* Economists Confirm: State Budget Cuts Threaten Economic Recovery: In fact, states’ actions to close their estimated $140 billion in budget shortfalls without more federal aid could cost the economy up to 900,000 public- and private-sector jobs. You don’t have to be a leading economist to realize that’s the last thing our economy needs.
* More Balance: So, claims that our analysis systematically understates costs for public employers are invalid on this basis. Similarly, claims that our study should have added the value of the entire unfunded liability (of state and local government DB plans) onto a single year’s compensation costs are completely off base. Any analysis that does so will reach conclusions that are equally inappropriate and flawed.
* Poll: Public Prefers Candidates Who Serve Pork, But Not Tea
At the behest of Illinois Republican Party Chair Pat Brady, the president of the Chicago Young Republicans has been ousted amid a growing scandal for the state GOP.
An allegation of sexual misconduct against CYR President Jeremy Rose — and the alleged cover-ups, blind eyes turned and retributions made in its wake — resulted in Rose vacating the post Monday.
Chairman Brady said Rose’s continued involvement with the Young Republicans was “a distraction to what we’re trying to accomplish.”
In addition to being the longtime CYR president, Rose was hired by Cook County Republican Party chairman Lee Roupas as political director in 2009. He was promoted in early 2010 to CCRP Executive Director, though Roupas knew full well of the allegations against Rose. […]
“I told the board of the Young Republicans that Jeremy needed to step down immediately,” Brady said. “The Young Republicans aren’t under my jurisdiction per se, but I did tell the board that it’s time to have Jeremy step down.”
The background is here. As I noted in comments the other day, I can’t help but wonder how the League of Women Voters now feels about giving the CYRs $5,000 during its remap petition drive.
* In more important Chicago news, the Sun-Times reports that nine city aldermen are heading out the door, including Ald. Helen Shiller, who already announced her retirement…
The list of aldermen at least thinking about calling it quits includes such political heavyweights as: Ginger Rugai (19th), Jim Balcer (11th), Frank Olivo (13th), Ed Smith (28th), Vi Daley (43rd), Pat Levar (45th), Mary Ann Smith (48th) and Bernard Stone (50th).
That list doesn’t include Ald. Toni Preckwinkle, who will likely move up to county board chairman, and Ald. Brian Doherty, who is running for the state Senate.
* Related…
* Alderman’s finances come under scrutiny - Campaign donations not reported over three years
Several commenters and critics have sniffed that they recall I was quite enthusiastic about Blagojevich early on. Not so. A review of the archives from his election through the end of 2003 finds mostly offhand references, little praise and such digs as these:
* The Question: What was your first impression of Rod Blagojevich? Be honest and explain.
* The Democratic Governors Association is running a new radio ad attacking Bill Brady. Rate it…
Script…
“Auction” – 60-second radio
Auctioneer: The bidding starts at eight dollars. Do I hear eight dollars? Eight…eight…
Man: I’ll go eight dollars…
Auctioneer: Thank you, Mister Bill Brady. Do I hear seven? Seven-dollars-an-hour for a lower minimum wage…
Wife (whispering to husband): Darling! What is Bill Brady doing?
Man: Seven! Yes! I’ll go seven…
Husband (annoyed): Keep your voice down, dear.
Auctioneer: Again! It’s Bill Brady! Can we go lower? Lowwwwer…
Wife (whispering to husband): But…how awful! Brady’s bidding to lower the minimum wage?
Husband (irritated): Yes, Mumsy! He said it back in June – Bill Brady thinks the Illinois minimum wage is too high.
Wife (urgently whispering to husband): And Brady wants to roll the minimum wage back?
Husband (irritated): Correct…
Wife (incredulous, whispering to husband): But, darling…we’re not even that cruel to the gardener!
Auctioneer: Sold! Bill Brady would roll back the minimum wage for Illinois families. And that’s why this ad is paid for by the Democratic Governors Association-Illinois. Not authorized by any candidate and no candidate is responsible for Democratic Governors Association-Illinois’ activities.
Strangest ad I’ve heard so far this season. What the heck? Am I wrong here?
…Adding… An alternate view from a trusted buddy who isn’t connected to either campaign…
I spend about 20-40 minutes a day in the car and have been through a few sessions with ad folks on this stuff.
Sounds, voices and repetition are what make radio ads good.
First thing you hear: “crack” of the auction gavel. That catches the listener’s attention.
Next thing is a fast talking auctioneer, then a husky voice of brady, then back to the auctioneer who deliberately changes his speed when he says “lowwwwer” minimum wage.
New voices from the couple at the auction, the back and forth on it and Lower minimum wage is repeated no short of 5 times.
Another crack of the gavel and then bill brady would roll back the minimum wage.
That is a great radio ad. It has sound effects, changing voices and it repeats the main thing they are trying to get across at least 4 or 5 times. Most people are distracted when listening to radio by driving or working. So, great radio ads involve tons of repetition and distinguishing sounds that make them memorable. The story is less important than the acting to catch someone’s attention.
I think it’s just way too cluttered to be effective. The repetition gets lost in the nonsense. But, we’ll see.
…Adding More… From a friend…
I know they are working a theme, but this doesn’t make me hate Bill… Unless they just want me to remember he is against the minimum wage as a set-up piece for when they go in for the kill on the taxes, Florida condo and Porsche
* The Alexi Giannouolias US Senate campaign insists that their candidate left the daily operations of his family bank in September of 2005. That’s now an important claim because the Sun-Times reported this yesterday...
On Feb. 14, 2006, newly obtained records show, the bank made a $22.75 million loan to a company called Riverside District Development LLC, whose owners, it turns out, included Rezko.
Giannoulias couldn’t have known about the Tony Rezko-related loan, the campaign insisted to the Sun-Times, because he wasn’t part of day-to-day operations…
Through a spokeswoman, Giannoulias says he knew nothing about the $22.75 million loan to Riverside District Development until reporters contacted him.
“Alexi left daily operations of the bank in September of 2005, months before this loan was made,” says Kathleen Strand of his campaign staff. “He had no knowledge of it, and his name is not on any documents related to the loan.
“This guilt-by-association story is an unfortunate and failed attempt to link Alexi to Mr. Rezko.'’
* The trouble is, which Alexi Giannoulias are we to believe? The current Giannoulias, or the one who was interviewed in March of 2006, a month after the Rezko-related loan was made? From a March 15th, 2006 article in The Windy City Times…
WCT: What’s your biggest advantage and your biggest disadvantage?
AG: That’s easy. My biggest advantage is that this is a fiscal office and I’m a banker and a financial manager. The state treasurer is responsible for investing $12 billion—and you want someone who’s [invested] before. My opponent may be a nice guy, but he’s more qualified to be an attorney general.
My parents founded Broadway Bank; over the past four years, we’ve more than doubled in asset size. I’m senior loan officer and vice president, so I oversee a $600 million loan department. I’m also chief investment officer and invest about $150 million. [Emphasis added]
That doesn’t sound like past tense to me. “I’m senior loan officer,” “I oversee,” “I’m also chief investment officer…” All present tense - and a month after that Rezko-related loan. And it’s not the only article out there. The Kirk campaign has pointed to a December 20, 2005 SJ-R story…
Giannoulias noted that he currently serves as vice president and senior loan officer at the four-branch Broadway Bank in Chicago.
* When asked yesterday whether the candidate has any paperwork verifying that he actually left daily operations, a campaign spokesperson said she didn’t. Besides, she said, the bank is now closed, so accessing paperwork would be practically impossible. And she continued to insist that Giannoulias left daily operations in September of 2005.
It’s not clear exactly what day Giannoulias was interviewed by the magazine, but it was definitely after March 1st of 2006…
Windy City Times: At the Stonewall Democrats Illinois forum [on March 1] , you sounded off on [main primary opponent] Paul Mangieri.
Again, March 1st would be after that Rezko-related loan was granted.
So, either Giannoulias was not telling the truth back in 2006, or he’s not telling the truth now. Which is it? The campaign response…
It was a passing reference to his position at the bank. He didn’t resign or quit. He took leave and if he lost his election he would have resumed his job at the bank.
So, I’m guessing that means he was lying back then, but not now. I’m also guessing that they’re right and that Giannoulias didn’t have much to do with the bank during the heat of the March primary. He was busy getting thwacked pretty much every day by the Democratic Party of Illinois. Then again, he could’ve saved himself some grief in ‘06 by just announcing that he had stepped aside. So, my guesses could be wrong.
Kirk said that on the day of Obama’s inauguration, Pelosi introduced a bill for the stimulus package. He said he canceled his plans that day, “pulled an all-nighter” and read the bill. The next day he issued a memo to Republicans of “why the stimulus won’t work.”
“Every Republican voted against the stimulus off that,” he said.
Kirk also claims that Illinois hospitals are laying off people because of the health care bill…
He said hospitals are generally the number-one employer in communities, but that the $500 billion in cuts to Medicare in the health-care reform legislation have required hospitals to stop hiring or to layoff staff and to stop all expansion programs.
“And so not only do we see the problems of our own health care being created by this law, but we’re also seeing the number-one employers in many Illinois communities beginning to contract because of the details of this legislation,” he said.
More on that another time.
*** UPDATE *** The Illinois Federation of Teachers has endorsed Giannoulias. From a press release…
Citing his commitment to quality public education for all students, the Illinois Federation of Teachers has endorsed Alexi Giannoulias for the United States Senate.
“Alexi Giannoulias will fight for our children and their education,” said IFT President Ed Geppert. “He understands the needs of public schools and he has the leadership ability to continue the fight for those schools as a member of the United States Senate.”
“I believe that a strong, vital system of public education is essential to our future. Our public education system is the key to opportunity for millions of children and families. And a quality system of higher education is essential in today’s knowledge-based economy. I’m honored to receive this endorsement from the Illinois Federation of Teachers,” said Giannoulias .
A national antigun group is endorsing Democratic Gov. Pat Quinn in the November election.
Quinn’s campaign office says he will pick up the backing of the Brady Campaign to Prevent Gun Violence at a Tuesday event on Chicago’s South Side.
The group believes that the recent Supreme Court decision striking down Chicago’s gun laws can still be used to promote robust gun control. From their website…
“We are pleased that the Court reaffirmed its language in District of Columbia v. Heller that the Second Amendment individual right to possess guns in the home for self-defense does not prevent our elected representatives from enacting common-sense gun laws to protect our communities from gun violence. We are reassured that the Court has rejected, once again, the gun lobby argument that its ‘any gun, for anybody, anywhere’ agenda is protected by the Constitution. The Court again recognized that the Second Amendment allows for reasonable restrictions on firearms, including who can have them and under what conditions, where they can be taken, and what types of firearms are available.
“Chicago can amend its gun laws to comply with this ruling while continuing to have strong, comprehensive and Constitutional gun laws, just as Washington D.C. has done. After the Heller decision, at least 240 legal challenges have been brought to existing gun laws, nearly all of which have been summarily dismissed. There is nothing in today’s decision that should prevent any state or local government from successfully defending, maintaining, or passing, sensible, strong gun laws.”
* Meanwhile, somebody in Illinois finally noticed that Gov. Quinn signed a bill into law late Friday evening. From the Sun-Times editorial page…
If you play a long shot in poker, you’d better be ready for a losing hand.
With legislation that Gov. Quinn signed Friday to amend the 2009 Video Gaming Act, Illinois is playing a long shot: that organized crime won’t creep into the newly authorized video gaming industry.
Theoretically, this law could prove a winner for Illinois, just as you can theoretically win a poker hand with a pair of deuces.
Problem is, the odds against you are pretty steep.
Now, if they’d just open their eyes and look around, they’d see a whole bunch of other actions that Quinn successfully buried Friday night. It’s truly amazing to me that the entire Illinois media has let Quinn get away with this.
On Wednesday, Bloomberg News reported that Quinn budget director David Vaught had predicted during an interview that, in January, Illinois lawmakers would raise the income tax by 2 percentage points. Quinn, in full damage control mode, on Thursday admonished Vaught for speaking out of turn, said Vaught’s remark was “misconstrued” and added that a Bloomberg reporter from out of state didn’t understand what Vaught said. Quinn reiterated his support for a 1 percent income tax increase — sorry, a 1 percent surcharge for education — and added that he would veto anything else.
The wheels fell off that “misconstrued” explanation Friday when the Capitol Fax Blog posted a video recording of Bloomberg’s interview with Vaught. His words: “We fully expect that we’re going to pass a tax increase in January. We think it’s going to be substantial.” Asked to define “substantial,” Vaught explained Quinn’s support, variously, of a 2 percent hike and a 1 percent hike and concluded, “To me that’s the range of possibilities.” Then John Sinsheimer, Quinn’s director of capital markets, made 2 percent sound like Quinn’s true goal: “The overseas investors we talked to, when we told them we could balance the budget with a 2 percent increase in individual and corporate income taxes, that pretty much raises about $6 billion, slightly less than that — that’s the deficit.” The overseas investors, he added were impressed. “They looked at us and said, ‘Only a 2 percent increase?’ They were amazed by that.”
Illinois taxpayers may be amazed too. We can’t top the headline on Bloomberg’s follow-up story: “Illinois sends contrasting messages to bond buyers, voters on deficit plan.” Oh, and about that supposedly clueless out-of-state Bloomberg reporter: Among the three Bloomberg journalists conducting the interview with Vaught and Sinsheimer was Flynn McRoberts, a former Tribune staffer and now Bloomberg’s Chicago bureau chief.
However, CMS said employees may voluntarily use that option to meet the requirement that they take 24 unpaid days off by June 30, 2011.
Rules fleshing out how the furlough program, ordered by Gov. Pat Quinn, will work were issued to state agency directors, budget directors and other managers who work under Quinn’s control. The rules still leave a lot of discretion to agencies to see that the furlough day commitment is followed while still ensuring that the agency can function. […]
At one time, the administration was considering requiring employees to use their paid state holidays to fulfill the furlough requirement. State employees get 12 paid holidays between now and the June 30, 2011 end of the current fiscal year. Forcing non-union workers to forego pay on the holidays would allow the state to get the benefit of furlough days at a time when the majority of employees would be off work anyway.
However, the CMS memo makes the use of holidays as furlough days voluntary, not mandatory. CMS spokeswoman Alka Nayyar said the idea was dropped because it would have required a change to state personnel rules, a process that would take a minimum of 90 days. That would have further compressed the time in which employees had to take furlough days.
