* Politicians apparently still haven’t gotten the message that their district offices and their political offices are supposed to be kept separate…

U.S. Rep. Danny Davis, state Rep. Karen Yarbrough and a township Democratic organization operated for years out of a village-owned building in near-west suburban Broadview.

But the deal among political allies involved no signed leases with the village and was beset by disclosure problems, the Tribune found, raising questions about whether tax dollars helped bankroll political operations.

Among the issues, Davis used federal tax money to pay Yarbrough’s campaign fund about $300 a month — about $15,000 since early 2007 — but the state legislator failed to disclose it in campaign reports. And the Proviso Township Democratic Organization, which is run by Yarbrough, was allowed to use the same village-owned building without a lease specifying how it would be used and how much to pay for it.

The money from Davis came out of his taxpayer-funded allowance for staff salaries, office and travel expenses. Both lawmakers say it was used to cover his share of utilities and cleaning at the shared offices. […]

“(The staffer) was told by an accountant that you don’t want to make it look like the federal government is making a contribution to your campaign,” Yarbrough said.

Oy.

* Double oy…

A new state law barring government employees from drawing a pension while earning another public paycheck doesn’t apply to the vast majority of current workers, leaving thousands free to “double dip” after retirement and doing little or nothing to help salvage desperately underfunded pension systems.

Responding to high-profile examples of double dipping and a public eager for pension reform, legislators last year passed a law restricting the practice, though only for workers hired – not simply retired – after Jan. 1 of this year. That means most current employees would be permitted to double dip even if they retire decades from now.

Lawmakers said they had no choice because the state constitution doesn’t allow them to reduce retirement benefits for unionized public employees, meaning they could not stop pension payments regardless of an employee’s future job status.

But critics say that’s a matter of interpretation, especially because future double dippers already would be retired from their current jobs before they got another, and there is no specific vested right to employment in other government jobs.

* Good points…

Using new, post-Blagojevich rules, the state of Illinois puts up for public bid a contract that’s been held by the same provider for three decades. The winning bidder promises to cut costs for the cash-strapped state by $100 million a year—a cool $1 billion over a decade.

Who possibly could object?

As it turns out, just about everybody in beautiful Springfield. And therein is a classic example of how state government is broken, caught in a morass of mistrust, complexity and good old politics.

At issue in this case is health insurance for roughly 100,000 state workers and government retirees. In an attack led by conservative Republicans—abetted by Democratic leadership, but oddly not by a key workers union—the Capitol gang has pretty well scuttled Gov. Pat Quinn’s plan to shift to new providers. Not good. […]

But COGFA’s co-chairman, state Sen. Jeff Schoenberg, D-Evanston, says the state is tossing away $1 billion. Largely agreeing with him is AFSCME, the big government employees union, which says the anticipated savings “look real.” Even Mr. Schnorf credits the Quinn administration with a sincere effort.

* Statehouse Roundup…

* 40% of single moms raising families in poverty

* “Fox Guarding the Hen House” of Illinois Health Reform?: One of the next steps for the Affordable Care Act in Illinois is setting up the Health Benefit Exchange that will help about 1 million uninsured residents and small businesses get coverage. This week, a legislative committee finalizes its recommendations on the Exchange. One big issue is who should sit on its governing board. The insurance industry has asked to be represented, saying it has expertise to offer.

* Quinn administration accused of dragging heels on Medicaid changes: In January, Illinois lawmakers passed a series of Medicaid reforms that they said could save the state up to $774 million over the next five years. However, federal regulators later said Illinois couldn’t proceed with two of the changes, which deal with how the state verifies the eligibility of Medicaid recipients to receive aid. Some Republican lawmakers now say Democratic Gov. Pat Quinn’s administration isn’t being aggressive enough in challenging that ruling and implementing other reforms.

* Lawmakers to consider reforms for police interrogations

* Lawmakers Will Have Full Plate During Veto Session

* Cook County joins sales tax battle against Kankakee and Channahon

* Erickson: Underwear controversy all washed up