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Friday, Jun 10, 2011 - Posted by Rich Miller

* This man will never be replaced

Friends, colleagues and above all family remembered the late state Rep. Mark Beaubien of Barrington Hills on Friday, as a man of conscience and integrity whose embrace of people from backgrounds and mindsets very different from his own evolved over time.

“Before he was deified by you all for his tolerance, he was quite an Old Testament father,” Beaubien’s son Mark recalled, evoking a chuckle from those attending the funeral Mass at St. Anne Church in Barrington. […]

The younger Mark Beaubien said it was a wonder to watch his father evolve into a Republican legislator capable of lending support to such untraditional causes as same-sex civil unions and a woman’s right to choose whether to carry a pregnancy to term.

A statement on the back of the funeral program said, “If asked why he was one of the few Republican supporters of the Civil Union Bill, he would respond with humility and simplicity that it was simply time and we should all ‘live our own lives and speak our own values.’”

The younger Beaubien said his father died as one of his best friends, describing him as “oppressively affable.”

* Many will remember Mark’s speech on the House floor after Rep. Deb Mell announced her engagement. “Live your own life, speak your own truth”

* The House chambers

* Frank will play us out

That’s how deep it goes - if it’s real

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*** UPDATED x1 *** Oh, please

Friday, Jun 10, 2011 - Posted by Rich Miller

* A recent Wall Street Journal editorial contains a horribly fatal flaw

llinois gained nationwide notoriety in January when Governor Pat Quinn signed into law a 67% hike in the personal income tax rate while lifting the corporate tax rate to 9.5%, the fourth highest in the nation. How is that working out?

The good news is that corporate tax receipts in Springfield are up by about $300 million amid the economic recovery—though the state comptroller’s office announced in April that the state still faces $8 billion in unpaid bills. The bad news is that, according to the state’s Department of Commerce, Illinois has already shelled out some $230 million in corporate subsidies to keep more than two dozen companies from fleeing the state. And more are on the way.

Illinois has most definitely not “already shelled out some $230 million in corporate subsidies” this year. Those subsidies will be handed out over time, as many as ten years in the case of Motorola Mobility. So subtracting a decade-long subsidy from five months of corporate tax receipts to make some sort of a point is just beyond ridiculous.

* Rod Blagojevich’s defense attorneys have filed yet another mistrial motion. My favorite line from the filing

The Court has not only made findings of fact, but it has effectively ruled that it does not believe certain aspects of the testimony of Blagojevich.

That’s a wise court. Of course he can’t be believed.

More background here.

* From a column written by then-Lt. Gov. Paul Simon on November 3, 1971

The Downstate Teachers’ Retirement System is funded only at 34%.

That means that we can get by this year and next year, but 10 years from now or 15 years from now there will be a great many teachers retiring and someone is going to suddenly say, “What happened to all that money?”

There’s almost nothing new at the Statehouse. And worries about imminent doom of the pension system go back decades before that column was written.

* Oy

Gov. Pat Quinn is withholding $52 million in transportation payments for Illinois’ cash-strapped schools so he can use that money instead to get the most out of federal Medicaid stimulus funds.

“After the buses are in the garage and the students are home for the summer, how’s a school district supposed to make a cut?” asked state Rep. Roger Eddy, R-Hutsonville, and Hutsonville School District superintendent. “Those expenses have been incurred. There is no way that we can do that. This is the most ridiculous proposal I’ve ever heard.”

As part of the 2009 stimulus plan, the federal government offered states more Medicaid money if they didn’t decrease Medicaid eligibility and followed certain guidelines. Illinois receives 60 cents from the federal government for every dollar it spends, but that will drop to the pre-stimulus amount of 50 cents for every dollar spent starting next month. So far, the state has received $3.6 billion from the federal government’s stimulus plan.

“We have to manage our resources right now in order to get that match. That’s worth maybe $100 (million) to $200 million to our state,” Quinn said at a news conference earlier this month. “I have to do everything necessary to get the most money that we can.”

Quinn said he is using school transportation funding, because the school districts have flexibility in how they spend their general state aid, or GSA. Schools can dip into their GSA to cover the lack of bus money over the summer and fall months, Quinn’s office said, until they are reimbursed for their transportation outlays.

Quinn’s office plans to pay the districts the $52 million by December for expenses incurred during the fourth quarter, which ends June 30.

* I really wanted to avoid this topic, but the NRCC apparently intends to make it an issue here

Republicans are beating the drums, asking if former Democratic Congressman Bill Foster of Batavia plans to return $1,000 in “tainted contributions” he received from disgraced New York Rep. Anthony Weiner. […]

“Will Bill Foster return his scandal-tainted Weiner money … or will he silently condone his former colleague’s unacceptable and potentially ethically-compromised behavior?” a GOP email blast asked. Foster, who plans to run again, has not replied to our request for comment.

“Scandal-tainted money?” Really? Was Weiner sending X-Rated Tweets to potential donors? C’mon.

Try your very best to keep your comments clean, people. Thanks.

*** UPDATE *** Sheesh. I can’t believe I forgot to do this. I mean, the whole point of writing this post was to show you this photo…

* Along with this story

On the average day, the man attends between five to ten events, meets dozens of people, has regularly scheduled media appearances, is responsible for $15 billion in investments, and manages a staff of close to two hundred employees. Meet Dan Rutherford, the banker for the State of Illinois. […]

Treasurer Rutherford recently announced the state’s purchase of $10 million worth of bonds from the State of Israel as a portion of the treasury’s sovereign bond holdings. “State of Israel bonds is a secure investment with an outstanding track record; they produce a strong rate of return and Israel has never defaulted on payments of principal or interest,” Rutherford said.

In praising the purchase, Israel Bonds president and CEO Joshua Matza noted, “The state of Illinois has been a loyal, consistent purchaser of Israel bonds. We are gratified by the state’s continued recognition of Israel bonds as dependable securities, as well as the fact that Israel bonds represent an investment in a sister democracy with shared values and ideals.”

Sounds like a decent idea, but apparently Illinois has been buying these bonds for years. Dude, could you make it any more obvious that you’re running for governor?

Just sayin’…

  25 Comments      


Question of the day

Friday, Jun 10, 2011 - Posted by Rich Miller

* More potentially bad news

On Thursday, it was the Chicago Board Options Exchange suggesting that higher corporate taxes in Illinois could cause it to take jobs out of state. The CBOE’s warning came a day after CME Group Inc. said the same thing. CME owns the Chicago Mercantile Exchange and the Chicago Board of Trade.

* And some good news for a change. From a Gov. Pat Quinn press release

“Today’s announcement that United Airlines is bringing 1,300 jobs to Chicago is great news.

“The merger of United and Continental Airlines and their plan to continue making Chicago the nation’s hub for air transportation show that our efforts to boost Illinois’ businesses are paying off. This investment will have a major impact on our state as the company grows and its employees become part of our economic fabric.

“This once again demonstrates that Illinois is the premier state in the Midwest for businesses from around the world, and we’re committed to continuing to make it an even better place to live and work. I thank United Airlines for its continued commitment to the state of Illinois and the city of Chicago as we continue our economic recovery.”

…Adding… From Mayor Emanuel’s press office…

Mayor Emanuel made the announcement alongside United Airlines president and CEO Jeff Smisek, on the 10th floor of the Willis Tower, where many of the United Airlines employees will be working.

“As Chicago’s hometown airline, United is pleased to announce that we are bringing an additional 1,300 jobs downtown from locations throughout our system by the end of 2012,” said Smisek. “Mayor Emanuel recognizes the importance of keeping Chicago competitive with other cities and expanding job growth here, and we look forward to working together with him and his team.”

* The Question: Should Illinois’ corporate income tax hike be repealed - after finding a way to replace the revenue or cut the budget? Take the poll and then explain your answer in comments, please.


  43 Comments      


Fear sells newspapers

Friday, Jun 10, 2011 - Posted by Rich Miller

* Kudos to the Tribune editorial board for this piece about all the “wilding” stories

The test for Emanuel and his top cop is to shut down the violence — and the fear-mongering — fast.

* But, wait, wasn’t this Trib editorial yesterday part of the problem? Yep

It feels like a variation on “wilding,” in which roving gangs assault strangers, seemingly for sport. In 1989, five young men were charged with raping a jogger in New York’s Central Park. Police said the attack was a case of wilding — though in the end the convictions were vacated.

The violence hasn’t reached that level in Chicago. It needs to be stopped before it does.

* That was a totally stupid historical analogy

The [Central Park] convictions were vacated in 2003. Another man already jailed for other crimes confessed to the attack. DNA evidence supported his claim.

* More

On April 19, 1989, Meili was raped and nearly beaten to death while jogging in New York’s Central Park. She suffered numerous injuries, including skull fractures and lacerations and severe blood loss. The five young men who were ultimately indicted, tried and convicted say they were coerced into a confession. At the time, police attributed the crime to marauding gangs of teens who engaged in what was termed “wilding.” Those who committed such acts became known as “wolf packs.” Once again, as in other points in American history, associations between animals and black criminality became part of the public conscience.

In 1989, Donald Trump paid $85,000 for full-page ads in four of the New York-area newspapers. Under the headline “Bring Back the Death Penalty,” Trump wrote, “They should be forced to suffer and, when they kill, they should be executed for their crimes. They must serve as examples so that others will think long and hard before committing a crime or an act of violence.”

Members of the Central Park Five believe that Trump’s call for the death penalty — for minors in a non-capital case — only served to create a hostile media environment before the teens went to trial. A new book on the case by New York Daily News staff writer Sarah Burns, called The Central Park Five: A Chronicle of a City Wilding, suggests that Trump’s incendiary rhetoric was one of numerous factors which resulted in injustice for the Central Park defendants.

Some innoccent people are gonna get railroaded if we go back to those bad old days. Guaranteed. The crime wave is real and serious. But we absolutely cannot let newspapers dictate the climate.

  74 Comments      


*** UPDATED x1 - He’s not interested *** Sneed: Brady vs. Schock?

Friday, Jun 10, 2011 - Posted by Rich Miller

*** UPDATE *** Nope. From Bill Brady’s spokesman Dan Egler…

Rich:

Sorry to diminish the spectator sport here. Brady had some people suggest he should consider a Congressional run in the 18th or new 13th, but after the briefest of consideration told them his focus is on reelection to the Senate and continuing to work to fix Illinois’ problems.

(He hasn’t made any calls seeking support for any Congressional run, and you’ll recall he announced for re-election earlier this week.)

[ *** End Of Update *** ]

* Oh, man, I hope this is true for purely spectator reasons

Schock shock? Sneed hears state Sen. Bill Brady, the GOPer who came this/close to beating Gov. Pat Quinn, is making calls to explore running for Congress against Rep. Aaron “Mr. Abs” Schock.

Discuss.

* Roundup…

* From an e-mail: Word in Kane County is John Laesch is planning on running in the 11th District. Possible Foster/Laesch rematch. His website John06.com is down for “maintenance”

* Alderman Bustos considers run for 17th District: East Moline Ald. Cheri Bustos has added her name to the growing field of Democrats considering a 2012 run for the U.S. Congress from the newly-redrawn 17th District… Former, long-time Rock Island Mayor Mark Schwiebert said Thursday his hat is still in the ring. He said he’s also close to making a final decision.State Sen. Dave Koehler, D-Peoria, publicly has announced he’s running.

* Hultgren could face Walsh in 14th District

* Here’s why Illinois Hispanics say one seat in Congress may do for now

* Illinois Democrats, Republicans, clash over second Hispanic Congressional District

* Redistricting Journal: Dems look for big gains in Illinois

* War on Women Is Democratic Rallying Call Against Republicans: Emily’s List cited the Medicare plan as it singled out nine House Republican freshmen as its first targets next year, months earlier than in the last election. They are Paul Gosar of Arizona, Allen West of Florida, Robert Dold and Adam Kinzinger of Illinois, Chip Cravaack of Minnesota, Joe Heck of Nevada, Frank Guinta and Charlie Bass of New Hampshire and Steve Stivers of Ohio.

* GOP Freshmen Promise Cuts, Spend Big in First Quarter: GOP Freshmen Promise Cuts, Spend Big in First Quarter: Illinois Rep. Adam Kinzinger is the biggest freshman spender, dishing out $78,000 on “mass mailings and communication” to constituents, including a pamphlet explaining “some of the ways we can help” in government interaction

* Republican freshmen spend big bucks on cars, PRL: The biggest newly elected spender in this realm is Illinois Rep. Adam Kinzinger, who authorized spending $78,518 in taxpayer money on “mass mailings and communications” — just under $900 for every day he was in office during the first three months of his congressional career. Kinzinger sent a pamphlet to his constituents explaining “some of the ways we can help” in interactions with the government. Kinzinger also advertised the “state-of-the-art multimedia section” on his website. His office told POLITICO in a statement that it has no more plans for franked mail after it sent a mailing to 217,000 houses across the district.

* GOP freshman fundraising off new Congressional map: Rep. Adam Kinzinger (R-Ill.) is fundraising off the new Illinois congressional map. His campaign is urging supporters to “fight back” and “stop Chicago Democrats’ Illinois power grab.” The goal is to raise $20,000 by June 30, which marks the end of second quarter fundraising, according to his campaign website.

* A Letdown from Freshman GOP Congressmen: According to Politico, more than a dozen of these budget-conscious freshmen spent thousands of taxpayer dollars on these items. Including the biggest spender, Illinois’ Adam Kinzinger.

* Editorial: Let the races begin

* Johnson happy to represent Macon County; less happy about process

* Officials slow to sign rail minority hiring agreement

* Matthews Fails to Convince Dem Congresswoman that Bush Tax Cuts Were All Bad

  55 Comments      


I’m just sayin’… He’s guilty

Friday, Jun 10, 2011 - Posted by Rich Miller

* My Sun-Times column is about the Rod Blagojevich defense

“He talked and he talked and that is all he did. . . . They want you to believe his talk is a crime. It’s not.”

That statement Thursday by Rod Blagojevich’s attorney Aaron Goldstein, as reported by the Sun-Times’ “Blago Blog,” pretty much sums up the former governor’s defense in his federal criminal trial:

“I’m not sayin’ . . . I’m just sayin’.”

Mind you, Rod wasn’t saying that he wanted to extract a bribe in exchange for appointing various people to fill Barack Obama’s vacant U.S. Senate seat. He was just tossing around ideas. He didn’t really mean it.

“He’s not perfect,” Goldstein said. “He likes to talk.”

Rod didn’t really want a bunch of billionaires to pony up cash to fund a nonprofit group in exchange for appointing Valerie Jarrett to the Senate seat. He was just talking about it. And the fact that he stopped talking about the scheme after Jarrett withdrew her name means nothing. He just has attention deficit disorder or something. He quickly moved along, and so should we. There’s really nothing to see here.

Um, OK. Hold on. What about when he told his brother to be careful about negotiating a huge cash payoff in exchange for appointing U.S. Rep. Jesse Jackson Jr. to the Senate seat because the whole world would be listening?

“‘The whole world is listening’ is a phrase I use all the time,” Blagojevich said on the stand.

But, wait. When Blagojevich discovered soon after that his office was being bugged by the FBI, didn’t he then order an aide to “undo” the negotiations on the Jackson appointment?

All talk. No big deal. There wasn’t anything there to begin with.

Excuse me, but what about when he told an aide that he wanted to hit up the CEO of Children’s Memorial Hospital for a $50,000 campaign contribution while discussing a state grant for that hospital? Didn’t he also make a call to see if he could hold up the grant?

Nah, there’s nothing to that. He was just thinking out loud.

But the grant wasn’t actually released until after he left office, right?

Hey, he tried to have the money released after he was arrested by the FBI. So, see? It’s all just talk.

“Look at his actions,” Blagojevich’s lawyer said Thursday. That’s how you will know what was in his mind.

You see, Rod never actually came right out and told the hospital CEO, or a big tollway contractor, or Rep. Jackson or anybody else that he wanted a campaign contribution or a job or whatever in exchange for doing them a favor. Others he sent might have said some words to that effect, but they weren’t sayin’. They were just sayin’. Plus, how can Rod control what his own emissaries say? Not to mention that just asking for a contribution isn’t illegal. Never mind that he said privately that he wanted something in return. He didn’t really want anything. It was all just talk. There’s nothing to it.

“This case is about nothing,” Goldstein said. Blagojevich got nothing and he did nothing.

All Rod did was talk.

“I’m not sayin’ . . . I’m just sayin’.”

His lawyers are clearly hoping the jurors will buy into that line of bunk. But maybe they’ll think about it a bit differently. Maybe they’ll assume it’s what a bookie might say if you fall behind on your gambling debts.

“I’m not sayin’ I’ll break your legs if you don’t pay me tomorrow. I’m just sayin’ you might have trouble walking for a while.”

* Meanwhile, we can only hope that the Blagojevich jury decides the same

The time has come to put this boy away

  80 Comments      


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Friday, Jun 10, 2011 - Posted by Rich Miller

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Question of the day

Thursday, Jun 9, 2011 - Posted by Rich Miller

* I got so busy and distracted that I forgot to post a question. Sorry about that. It’s very late in the day, so let’s have a caption contest instead…

  62 Comments      


*** UPDATED x3 *** Don’t freak out just yet

Thursday, Jun 9, 2011 - Posted by Rich Miller

*** UPDATE 3 *** Gov. Quinn talked to the media this afternoon about CME. Quinn said CME Executive Chairman Terry Duffy was a “good friend,” adding the two have had dinner together. “We’ll have an ongoing conversation and dialogue,” Quinn said.

The governor was asked if he now thought the corporate tax hike was a bad idea. “No, not at all,” he replied. Quinn once again called the income tax hike “temporary” to pay off the bills, provide good schools, etc.

Was he worried about a corporate shakedown? “We don’t believe in that kind of approach to life,” he said.

“I don’t think that anybody likes paying taxes,” the governor said “but that’s the price of democracy.”

Audio…

*** UPDATE 2 *** I must’ve missed this

The Chicago Sun-Times reported that Texas, New York, New Jersey and Indiana are possible alternatives. A CME spokesman declined to comment.

New York? Way high state and local taxes. Same for New Jersey and Indiana. Texas? Have fun with the gross receipts tax.

*** UPDATE 1 *** Mayor Rahm Emanuel said today that he’s talked with top CME officials and is “confident” the business will stay in Chicago

Mr. Emanuel said he talked both to Mr. Duffy, apparently this morning, and CME Chairman Emeritus Leo Melamed.

“CME has grown and been successful in Chicago. I believe they have many years ahead,” Mr. Emanuel said, adding that he’s “confident” the firm will stay here.

“I know their frustration,” added Mr. Emanuel, who served on the board of predecessor firm Chicago Mercantile Exchange about a decade ago. “I also know they believe they can continue to be here.”

Asked if changes in the state tax hike will be needed, Mr. Emanuel replied, “We’re not at that point.”

[ *** End Of Updates *** ]

* You would think that with the big and, as it turns out, almost totally fake uproar about Caterpillar leaving Illinois after the state raised its income tax rates that reporters might be a bit more circumspect the next time a corporate titan hinted at longing for greener pastures. You’d be wrong

Chicago business is partly defined by its concentration of financial traders, but the boss of the city’s two dominant futures exchanges said Wednesday that he might pull jobs out of the region in response to a state tax hike on corporations.

Terrence Duffy, chairman of CME Group Inc., said he, Chief Financial Officer James Parisi and the company’s internal staff are evaluating a move to other states. […]

“I’m going to do what’s in the best interests of shareholders,” Duffy said, adding that “if that means opportunities are greater elsewhere, then we’re going to look at those opportunities.” […]

It accounts directly for about 2,000 jobs in the Chicago area, but its ripple impact goes much further. Trading firms set up shop here to be near the downtown trading floors, and banks and other institutions add staff to serve that business.

Some estimates place the job count from the trading industry here, which includes the Chicago Board Options Exchange, at more than 60,000.

The above story claims that Chief Financial Officer James Parisi said the tax hike will cost CME an extra $50 million a year. A CME spokesman said today that Parisi’s statement was accurate.

* But this is also important. Duffy said at the meeting that CME would not be abandoning Chicago

“We’re investigating what would be in the best interests of our shareholders,” Duffy said, noting that such a move would not mean CME would abandon its presence in Chicago, home to its markets for over a century.

So, the traders can calm down now. They won’t have to move to Alabama or some similarly awful place.

* Duffy also added this

Duffy tells the Chicago Sun-Times he is upset by the state’s failure to close corporate tax loopholes. He says they favor some companies but leave others, including CME, to pay the full rate.

That’s a good point.

* Chairman Duffy did not mention the state tax situation during his remarks. The state tax hike was also not mentioned in anybody’s multi-media presentation.

When Duffy talked about the problem with his stock’s subpar performance, the executive chairman identified only two factors. “A major overhang,” Duffy said during his prepared remarks, has been the “uncertainty” of federal regulations. The other problem, he said was the company’s “continued focus on new investments for future growth.”

* I called CME this morning to ask for a further clarification of Duffy’s comments about Illinois’ tax hike. I was told a further clarification wouldn’t be possible and was referred back to his quotes. I asked whether there was already a plan or at least a process in place to look for another CME headquarters site. I was told that the spokesperson couldn’t comment further.

The Q&A video with shareholders isn’t online, so I couldn’t find the complete context of Chairman Duffy’s comments.

* Former US House Speaker Denny Hastert was elected to the board of directors at yesterday’s shareholder event, but he’s in meetings all day today and I couldn’t reach him to ask whether he would fight to keep the company in his home state.

* The company has other problems as well

In response to a shareholder who questioned the need for a 33-member board, Mr. Duffy said that the company will pare the size of the board over time because he realizes it’s costly for it to be so large. Contractual obligations will only allow cutting it by a couple of members starting next year, but there will be bigger decreases between 2013 and 2014, he said.

Executives also blamed uncertainty over regulatory changes for hampering the exchange operator’s shares, adding it would look to global partnerships — not acquisitions — for growth.

Shares of CME, the world’s largest futures exchange operator, are down 18% so far this year vs. a 4% drop in the Dow Jones Global Exchange index.

The company’s shares have dropped 8% so far this month as government data showed the U.S. economic recovery stumbled — making an interest rate rise less likely and hurting the outlook for CME’s treasury and eurodollar trading.

* But it’s not exactly a pauper

  39 Comments      


*** UPDATED x1 *** Speaker Madigan opposes consolidation for the umpteenth time while Rutherford hit over publicity stunt

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Madigan has always been against this idea, going back to the Constitutional Convention, so this is no big shock

A constitutional amendment to merge the offices of the state treasurer and comptroller is stalled in the Illinois House because of opposition by House Speaker Michael Madigan, D-Chicago.

The amendment unanimously passed the Illinois Senate, but is stuck in the House Rules Committee, which is tightly controlled by the speaker.

Madigan spokesman Steve Brown said merger proponents, including the two current officeholders, have never sufficiently countered the reasons two offices were created at the 1970 constitutional convention.

“They’re radically different offices, as anybody who’s spent any time around them knows. They’re not similar in any way,” Brown said. “While the offices both deal with finance, in reality, they have hugely different activities. You can’t just say, well because they’re both about finance you can consolidate them and that makes sense.”

* Meanwhile, oops

The state’s Bright Start College Savings Program has come under fire again after a promotion promising a $250 match for contributions made this month quickly ran through its budget, leaving families feeling they were duped into adding money to their accounts.

The Illinois treasurer’s office said Wednesday that it is investigating why a website touting the promotion was not updated for nearly 24 hours after it had paid its limit of 2,500 bonuses. Participants complain that they continued to put money into their Bright Start funds expecting the match even though the program was finished by 3 p.m. Friday. […]

Some said they didn’t even get notice of the promotion until Saturday — a day after the matching funds were gone. […]

“It’s sort of a crass move to dole out these funds as a publicity stunt, but what you’ve done is worse by inducing people to invest in exchange for a promise you knew (at least by Friday afternoon) you couldn’t keep,” he said in an email to Bright Start and copied to the Tribune.

*** UPDATE *** I forgot to add this story, since it’s semi-related

The chief investment officer of the College Illinois prepaid tuition program has left that post for a newly created position within the Illinois Student Assistance Commission.

Frank Bello, a former deputy treasurer for the city of Chicago who joined the Illinois Student Assistance Commission as chief investment officer three years ago, was named director and chief credit officer for the Illinois Designated Account Purchase Program last month without an announcement, an ISAC spokesman confirmed Wednesday. That program, administered by ISAC, services a $1.1-billion portfolio of student loans and counsels student loan recipients in danger of defaulting. It’s the primary source of revenue to fund ISAC’s operations.

Mr. Bello was ISAC Executive Director Andrew Davis’ key lieutenant in dramatically overhauling the $1.2-billion investment fund for the prepaid tuition program, which allows parents to purchase contracts at a fixed price for future tuition at state universities and colleges and acts as a potential hedge against tuition inflation.

In a bid to close a 31% gap between assets and future liabilities in College Illinois, Messrs. Davis and Bello moved to shift nearly half the fund’s assets from stocks and bonds to “alternative” assets like hedge funds and private equity—a level of exposure to exotic asset classes well above those of other state prepaid tuition plans or pension funds its size.

* Related

Illinois Attorney General Lisa Madigan’s office has launched an investigation of the agency running the College Illinois prepaid tuition program, which has suffered steep losses.

“We’re looking into it,” said Natalie Bauer, a spokeswoman for the AG’s office.

The investigation of the Illinois Student Assistance Commission began early this spring, she said, declining to provide further details.

* And then there’s this

Over the last two years, the state of Illinois in order to pay its basic bills has seized more than $1.6 million from at least 15 different “charity” funds, to which Illinoisans voluntarily donate for causes like feeding the hungry and helping the homeless.

Each year, the Illinois Department of Revenue invites taxpayers to donate their tax refunds or other money to a handful of funds described as “charities” and avenues to “make a difference” and “make giving easy.” The “voluntary charitable donation funds,” of which there have been more than 50 different varieties over the years, are commonly called “check-off” funds and range in purpose from preserving wildlife and researching diseases to supporting military families and promoting healthy smiles.

For the 2008 tax year, Illinois workers donated a total of $1.4 million to 10 different funds. But, with the approval of the General Assembly, Gov. Pat Quinn authorized $434,300 in sweeps from seven of the funds in Fiscal Year 2010, when the 2008 tax year donations were first available for spending. Sweeps are transfers from special funds with specific purposes to the general revenue fund, the state’s largest pool of money, which pays for basic government operations.

For the 2009 tax year, Illinois taxpayers donated $1.37 million to 10 different funds, but during the current fiscal year, FY2011, Quinn has borrowed $1,176,100 from seven of those funds as well as five other check-off funds that are no longer listed on tax forms but were holding donated money from previous years.

While the state is required by law to repay the borrowed sums within 18 months, the state will not return any swept funds.

* As long as we’re updating, let’s do a quick roundup…

* Report: Gambling revenue continues decline

* Ill. Supreme Court hopes to modernize procedures

* Press release: State Cemetery Board Urges Passage of Legislation to Address Implementation of Cemetery Oversight Act

  19 Comments      


The family business

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Congressman Jerry Costello’s son is getting into the family business

State Rep. Dan Reitz said Wednesday he’ll likely leave office before his current term expires, and that he thinks a good appointee to finish his term would be Jerry Costello II, son of U.S. Rep. Jerry Costello.

“I’m leaning now toward not finishing out the term,” said Reitz, a Democrat from Steeleville. […]

“I’ve definitely decided I’m not going to run again. Having made that decision, it’s just a matter of sitting down to figure out when it’s in everyone’s best interest when to retire,” Reitz said. “I thought long and hard about running the last time.” […]

Jerry Costello II, a Democrat, has been rumored to be a replacement for Reitz. When new legislative maps were released a couple of weeks ago, state Sen. Dave Luechtefeld, R-Okawville, said he was told that one factor in deciding the legislative boundaries was having a district where Jerry Costello II could run. […]

“I think he’d do a good job,” Reitz said. “I’ve spoken with him on a number of occasions on different things, that being one of them. He was interested in running last time.”

Some have said Costello’s congressional district might not be winnable by a Democrat when he retires. But his son would have the same name, so if he gets his feet wet in the Illinois House, he could conceivably then move up the ladder to DC. I’m not saying this is the plan, but it sure looks that way.

* Former Congressman Bill Foster is already releasing a poll to knock back a potential opponent

Former Rep. Bill Foster (D-Ill.), making a 2012 comeback bid in the new 11th congressional district, starts the contest in a much stronger position than potential Democratic rival John Atkinson, according to a poll Foster commissioned.

I was shown the entire Foster poll–by the Global Strategy Group–as Atkinson is weighing whether to run in the new 11th district–or stay with his original plan, to challenge Rep. Dan Lipinski (D-Ill.) in the 3rd congressional district. Either way, Atkinson would face a Democratic primary.

The poll of 400 likely Democratic 2012 primary voters was taken between June 2 and June 5 and has a 4.9 percent margin of error.

Atkinson’s problem, the poll shows, is that he is virtually totally unknown, while Foster has a running start as a former House member. Just six percent of the voters in the new district are familiar with Atkinson, compared to 41 percent for Foster.

In a head-to-head, voters in the survey gave Foster a 30 point lead, 36 percent to Atkinson, 6 percent.

Atkinson, however, could decide to run against incumbent Democrat Dan Lipinski, the son of former Congressman Bill Lipinski. And Atkinson isn’t the only one looking at the 11th. From a press release…

Today, Aurora Alderman-At-Large, Richard Irvin, announced that he will form an exploratory committee to consider a bid for the Republican nomination for U.S. Congress in Illinois’ new 11th Congressional District. Richard Irvin was first elected Alderman-At-Large in 2007 and was re-elected to a second term in April.

Richard Irvin is a life-long resident of Aurora. After graduating from East Aurora High School, he joined the United States Army where he served in the first Gulf War. Upon returning, he earned a law degree from Northern Illinois University. After serving for several years as an Assistant State’s Attorney in both Cook and Kane counties, Richard formed his own successful law firm.

* Republican Congresscritter Bobby Schilling has been hit with a round of Medicare robocalls

The Democratic Congressional Campaign Committee has launched a round of robocalls targeting 13 Republicans. The calls, according to a sample script released by the DCCC, hammer away at Democrats’ message of criticizing the GOP’s budget plan to dramatically overhaul Medicare.

The calls hit Members for voting in favor of Budget Chairman Paul Ryan’s (R-Wis.) budget blueprint, noting the GOP’s “plan to end Medicare actually increases the debt by almost $2 trillion because of more tax breaks for millionaires and corporations.”

Democrats believe their Medicare messaging was a key component of their win in New York’s 26th Congressional district, where now-Rep. Kathy Hochul beat Republican Jane Corwin.

Schilling was the only Illinois Republican targeted in this round. Also, Schilling’s family was also just sued

The lawsuit, filed this week in Henry County Circuit Court, says [18 year old Thomas Reese] was at a birthday party for the Schillings’ son Levi in May of 2007.

That’s when Reese claims Levi Schilling along with Croegart, Dragolovich and Walters took gasoline from an unlocked area in the garage, filled the hopper part of a toy dump truck, and lit the gasoline on fire.

Then, according to the suit, one or more of the boys pushed the truck toward Reese, catching his shorts on fire.

Reese says as a result, he suffered severe burns on one third of his body and still deals with mental and physical pain.

The suit claims the four boys are at fault because they failed to warn Reese and the Schillings are responsible because they didn’t safeguard the dangerous substance. […]

Representative Bobby Schilling’s camp released a statement Wednesday saying “Some kids were over at the house, they were horsing around. An accident happened. The mom and dad are friends of ours. We see them at church every week. They donate to my campaign. They weren’t able to settle with the insurance company, so they have to do what they’ve got to do. That’s what happened. I just thank God Tom wasn’t hurt worse.”

* Is this the first step toward a state legislative campaign announcement? Perhaps

Former state Rep. Jay Hoffman will have a news conference today to talk about the delays in the Illinois 159 road project.

The $54 million project to straighten and improve Illinois 159 was planned in three phases and is currently in its second phase through Main Street and the downtown district. The third phase widens the road from Johnson Street to Kinloch Avenue, but money so far is only for land acquisition, not actual construction.

Hoffman, 48, a Democrat, was defeated in November by state Rep. Dwight Kay, R-Glen Carbon, after 20 years in the state legislature. Hoffman couldn’t be reached for comment Wednesday.

* Not much of a surprise

The runner-up in the 2010 gubernatorial race plans to seek another term in the Illinois Senate.

State Sen. Bill Brady, R-Bloomington, announced Wednesday he will run in the reconfigured 44th Senate District in the 2012 election.

Brady, a 50-year-old real estate developer, will run in a district that includes most of Bloomington, none of Normal and a lot of new turf in Tazewell, Logan, Menard and Sangamon counties. […]

The district no longer contains the Central Illinois Regional Airport in Bloomington, but does encompass the Abraham Lincoln Capital Airport in Springfield. He also would no longer represent Illinois State University. But, he would represent the Illinois State Fairgrounds.

I hadn’t noticed that his district went all the way down to the Springfield airport and the fairgrounds. Wow. Downstate Senate districts are all quite large, but that seems a tad strange.

* There was no mention of this story in the piece

Three contractors have claimed Brady Homes and a related company owe more than $400,000 in unpaid bills — a cash-flow problem the family-owned firm says reveals the depth of the homebuilding industry’s struggles.

The contractors filed at least 19 mechanic’s liens, totaling $402,107, on 10 Twin City residential properties owned by Brady firms in the past month, according to documents in the McLean County Recorder’s office. The liens allege unpaid bills for concrete and electrical work completed this year and other homebuilding materials.

Bob Brady, who owns Bloomington-based Brady Homes with his brothers, Ed and Bill, said Friday the liens were “just a cash flow issue” that would be resolved as each property is sold. Brady said their relationships with contractors and vendors remains good and they are “working civilly with everyone” involved. […]

Bob Brady said the brothers are not considering bankruptcy for Brady Homes, which he noted has five closings scheduled in just the next three weeks. He also stressed that the family’s other companies are financially “solid,” such as Re/Max Choice.

“These are just some bumps in the road,” Brady said.

The homebuilding industry is most certainly hanging on by a thread these days. Brady can’t really be blamed for an international financial calamity. These things happen in business, so it’s best not to make too much of them.

* Roundup…

* Black Power Wanes Amid Rising Hispanic Economic Clout in U.S.

* Senator Cultra ‘perplexed’ by Barickman’s decision to run against him: State Senator Shane Cultra says it “didn’t make my day” when Representative Jason Barickman told him that he plans to run against him for Cultra’s Senate seat next year… “I think I have a lot of experience and basically (Barickman) doesn’t have any,” Cultra said. Cultra says had Barickman decided to stay in the House, he would have had his choice of heavy Republican districts to run for in the next election.

* Shane wants to come back

* Sommer announces 88th District reelection bid

* Know your state rep: Derrick Smith

  25 Comments      


*** UPDATED x1 - VanillaMan returns! *** A commenter shout-out

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Hey, VanillaMan! Where the heck are you, dude? I really miss your song parodies, and with the Blagojevich case about to go to the jury, we could sure use some of your magic about now. Also, I’m sure Wordslinger would lighten up on you a little if you decided to come back. Right, Word? We need you, man. Come back, please.

* We had a bit of a problem earlier this week when I banned two commenters for life and had to shut down two different threads. The banned commenters were relative newbies who just couldn’t behave on some emotional topics. The closed threads were also about emotional topics and I was just tired of policing them. Everybody, try to take a deeeeeeep breath before commenting, please. It’s the summer. Let’s relax a little bit.

* I’m working on stories for the Fax and the blog right now, which explains the late postings today. I’ll be back soon. In the meantime, do you have anything you’d like to say to other commenters? Do it here…

*** UPDATE *** VanillaMan is back! I checked his IP address, and it’s really him. Read his latest comment here.

  85 Comments      


Rod Blagojevich trial live blog

Thursday, Jun 9, 2011 - Posted by Rich Miller

* The jury is expected to get the case today. So, soak it up while you can. BlackBerry users click here, everbody else can just chill right here and enjoy the show…

  56 Comments      


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