And then there were four…
Tuesday, May 8, 2012 - Posted by Rich Miller
* I’m coming a little late to this, but the Republican county chairmen in the 13th Congressional District has winnowed the possible ballot replacements for retiring US Rep. Tim Johnson to four…
* Jerry Clarke, who previously served as Johnson’s chief of staff;
* Rodney Davis of Taylorville, an aide to U.S. Rep. John Shimkus, R-Collinsville
* Former Miss America Erika Harold, an attorney and Urbana native;
* Kathy Wassink of Macoupin County, who owns a business that serves students with special needs.
* The list of those voted off the island…
The four candidates eliminated by the 14 Republican county chairmen in the district after a meeting Saturday in Springfield include former Illinois Agriculture Director Becky Doyle of rural Gillespie; Sam Spradlin, a Springfield truck driver; Frank Metzger, a retired ironworker, of Glen Carbon; and Michael Firsching of Moro, a veterinarian.
* Kurt Erickson looks at who is backing whom…
“He grew up in the district, knows the challenges facing the people of the district and has the same values as the citizens of the 13th Congressional District,” said state Sen. Bill Brady, R-Bloomington, who is endorsing Clarke. “He has served our nation’s Armed Forces with distinction for more than a quarter century, including three tours of duty as an Army commander and pilot in Iraq.”
Davis also has some heavy hitters on his side. His boss, Shimkus, is backing him.
U.S. Reps. Aaron Schock of Peoria and Bobby Schilling of Colona are said to be in his corner. That trio could pull some heavy duty weight with the county chairmen.
At the same time, a number of the county chairmen are new. They may resent the prospect of top-down pressure from top party officials.
And then there is Harold, the 2003 beauty queen originally from Champaign. The chairmen will have to decide whether voters in the downstate district will support a Harvard educated lawyer from Chicago. They’ll also have to consider whether they’ll have the resources to fend off the national Democrats, who may want to stop Harold in her tracks because of her potential to move up in the ranks if she wins.
* Fundraising abilities were a factor…
McLean County Republican Chairman John Parrott said the chairs asked each of the eight candidates various questions, including if he or she will be able to raise enough money for the race towards November.
“By the time we make the decision on this, on the 19th of May, it’s going to take anywhere from $8,000 to $10,000 a day to win this race,” Parrott said.
* In other campaign-related news, the Tribune discovered that a judicial candidate was arrested for allegedly stealing yard signs…
Carl Boyd won the Democratic nomination in March for a subcircuit judge post in Cook County and is a shoo-in for the November election because he is running unopposed. But first he must deal with a trial late this month — his own. He faces a misdemeanor charge of allegedly stealing the campaign signs of a primary rival in the middle of the night.
Boyd, a veteran Chicago attorney, was arrested by Chicago police about 2 a.m. the day before the March 20 primary while allegedly in the possession of a dozen signs promoting the campaign of primary rival Chester Slaughter. […]
“I can tell you that the police officer stated that this would make for a great story,” he told the Tribune. “But he certainly did not see me pick up one sign. That much is true.”
The cop may not have seen Boyd pick up a sign, but the police report claims that 12 campaign signs were found in Boyd’s car.
* This may be no joking matter…
Dane Ciolino, a law professor at Loyola University in New Orleans who specializes in legal and judicial ethics, said that even though Boyd was charged with a misdemeanor offense, he could face “significant” problems with legal disciplinary officials. Boyd could be suspended from practicing law or if he wins election as judge, he could be removed from office, Ciolino said.
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Question of the day
Tuesday, May 8, 2012 - Posted by Rich Miller
* The SJ-R posted a photo of a ticket for last night’s big Speaker Madigan fundraiser last night. As the ticket notes, this was the 32nd annual fundraiser on the lake…
* From last night’s SJ-R post…
As you can see from the $150 ticket, Madigan has had this fundraiser for the last three decades, and it will be packed with lobbyists, lawmakers and other statehouse denizens. It’s no wonder they have to bus people from Lincoln Land Community College to the Island Bay Yacht Club.
* The Question: Caption?
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* As subscribers were told earlier this morning, Mayor Rahm Emanuel will visit Springfield today and testify to a House committee…
Mayor Rahm Emanuel on Tuesday makes his first physical trip to Springfield since he took office in Chicago last year.
Emanuel’s office confirmed he will testify at 10 a.m. before the Illinois House of Representatives Committee on Personnel and Pensions.
This isn’t the mayor’s first dealing with Springfield. He’s been known to work the phones (i.e. for Chicago speed cameras) and has a team in place, but this time, he’s traveling there himself. […]
Though the meeting is the only thing on the mayor’s Tuesday public schedule, sources say he has an open-ended return to Chicago.
* The hearing begins at 10 o’clock. Emanuel will probably testify soon after it starts. Follow live Tweets here. You can find the General Assembly’s live audio/video feed for hearing room 114 here. The folks at BlueRoomStream.com have also provided us with a live embed…
Live broadcast by Ustream
* Emanuel is not expected to speak to the media, but my intern Owen is on the scene, so we may have some video later.
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* The House Speaker tried to blame the media yesterday for pointing out some very real and substantive differences between himself and the Senate President about how to proceed with pension reform. As I told you yesterday, Speaker Michael Madigan introduced legislation that would change the MWRD’s pension plan in a deal worked out with most of the unions involved. It was seen as a model for reforming the state’s pension funds, but Senate President John Cullerton tacked on an amendment in the Senate which would’ve “nudged” employees into a new pension system by cutting their benefits in the current system. Cullerton eventually backed off that proposal and allowed Madigan’s version to stand. WUIS picks it up from there…
Several news reports highlighted the differences. But Madigan was diplomatic.
MADIGAN: “I don’t know that Cullerton took that much of a different approach.”
The speaker says he’s keeping an open mind.
MADIGAN: “I wouldn’t get uptight about the opinions unless of course you want to run a story that there’s a big conflict. If you want to do that, well you’re going to do what you’re going to do.”
Despite what Madigan says, the legal differences between the approaches are central to the debate over what Illinois can and cannot do as leaders look to cut the cost of retiree benefits.
That reporter is exactly right. These may look like technical differences, but they are quite different approaches to pension reform. And if Madigan does his usual thing and insists on his way or the highway, he could divide the two chambers.
Cullerton’s idea looks far more constitutional to many Statehouse eyes. But the reality is that neither may pass judicial muster.
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* House Speaker Michael Madigan basically told reporters yesterday that if his proposal to all but eliminate the requirement that the state pay retiree health insurance premiums doesn’t pass, then major budget woes will follow…
Illinois’ House speaker isn’t sure lawmakers will finish their business ahead of the scheduled adjournment at the end of the month.
House Speaker Michael Madigan, D-Chicago, says a lot of work still must be done, particularly on Medicaid. He says much of the budget hinges on the governor’s proposal to cut $2.7 billion out of the program, and Madigan says lawmakers must hit that target.
“If the governor’s requested reductions in Medicaid don’t meet the mark… we need to go back and rearrange all the other numbers,” he says.
Lawmakers will also spend the next three weeks trying to fix what some call the state’s unsustainable pension systems, but that has been difficult as many proposals have preemptively been called unconstitutional.
Madigan says he’s watching his proposal, S.B. 1313, work its way through the legislature. The proposal would eliminate free health care premiums for 78,000 state government retirees, which is how many retirees gave 20 years of service or more. Other government employees who gave less than 20 years, whose premium is calculated based on years of service, would also be affected.
“There’s much to be done in terms of the budget making. Significant reductions that must be done… and if we’re not able to pass S.B. 1313, then I would ask, what are we going to be able to do?” he says. “This will be a reduction budget.”
Translation: Without this cut, other budget items will have to be slashed.
* Related…
* Quinn linking Illinois budget cuts to job growth
* Day Care Providers Stress Urgency Over Funding Gap
* Editorial: Restore funds for child-care program
* Hospitals warn Medicaid cuts could mean fewer services
* Illinois House, Senate deliberating future of enterprise zones
* Dan Rutherford: Put partisan politics aside to fix our problems
* Former budget chief says state needs major reforms
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Question of the day
Monday, May 7, 2012 - Posted by Rich Miller
* Yours truly hanging out with Ice T at the Derby (for, like, two minutes)…
* The Question: Caption?
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* Greg Hinz gives us the story on what could be a very big disagreement between House Speaker Michael Madigan on one side and Senate President John Cullerton and Gov. Pat Quinn on the other over pension reform…
As I reported in my blog on ChicagoBusiness.com last week, the bill at issue dealt only with the Water Reclamation District of Metropolitan Chicago. It would have enacted an agreement between the district and all but one of its unions that called on workers to contribute an additional 3 percent of their salaries to the pension fund and the district to double its contribution from property taxes.
The bill passed the House unanimously—a rarity when it comes to pensions. Since workers still would be getting a defined benefit, albeit one that would cost more, everyone seemed pretty happy.
But when the bill moved to the Senate, Mr. Cullerton claimed sponsorship and moved to amend it. Specifically, he wanted to add a clause allowing workers to stay in the current system without paying that extra 3 percent if they froze their pensions at current levels.
Mr. Cullerton obviously hoped that would be a model in negotiations on restructuring the state’s overall pension systems. The Chicago Democrat, like Gov. Pat Quinn, is a strong believer that pension changes cannot be imposed by fiat but only as part of a negotiated process in which workers have some choice.
Anyhow, Team Cullerton seemed to think it had the green light. They filled me in and re-tweeted an item I did on the president’s “big pension move.” And the chief sponsor of the House bill, Rep. Elaine Nekritz, D-Northbrook, told me she was OK with the change.
Then Mr. Cullerton abruptly yanked his own amendment. His folks make it pretty clear that was done at the request of Mr. Madigan. Indeed, Madigan spokesman Steve Brown effectively confirmed that, telling me, “I think the speaker felt the bill was fine as it passed the House.”
What’s not clear as of this writing is whether Mr. Madigan pulled out the rug unfairly at the last second, or whether Mr. Cullerton got a little ahead of things. Different sources are giving me different answers.
* More details from Chris Wetterich…
But the two Chicago Democrats see the water reclamation district plan in different ways — Madigan believes changes can be imposed after negotiating with unions, while Cullerton thinks all employees have to be offered a choice.
Cullerton wants to let workers decide between an altered pension, which would cost the employee more but be better funded, and the current system, which would cost workers the same but could have other consequences, such as not having future raises counted when pensions are calculated.
The concept is called “consideration” by Cullerton and the Senate Democrats’ legal counsel, Eric Madiar.
The choice would apply to all public employees, not just those in unions. The state constitution makes public employee pensions a contractual right regardless of whether an employee participates in collective bargaining.
Cullerton and Madiar contend that simply negotiating with unions won’t be enough for any legislation to comply with the state constitution’s language. Late last month, after proposing a plan that follows the Cullerton-Madiar structure, Gov. Pat Quinn said he also believes that simply negotiating with the unions won’t pass constitutional muster.
In the case of the water reclamation district, only about 800 of the 2,000 employees are unionized.
I think Cullerton probably has the right idea here. How can unions negotiate pension changes for systems with lots of people who aren’t union members?
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Deja vu all over again
Monday, May 7, 2012 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Call it “Blagojevich Lite” or whatever you want, but it became pretty clear last week that state Rep. Derrick Smith’s attorneys are planning the same sort of mockery of the system that Rod Blagojevich’s legal team did during those dark days after the former governor’s arrest.
“While I have been troubled to experience the shenanigans being played by the FBI, to lean on people around me and to get them to say bad things about me, I will not cower,” Smith (D-Chicago) told reporters after he pleaded not guilty to federal bribery charges.
Never mind the fact that nowhere in the arrest report or federal indictment is there any reference to anybody saying “bad things” about him. Smith is accused of taking a $7,000 bribe to help get a state grant for a day care operator, a business that was a creation of federal agents.
Smith also claimed that the people of his district “elected” him on March 20 because “they believed in me.” Yeah. Right. OK.
The voters gave him the Democratic nomination on March 20 despite the fact that he had been charged because party leaders warned them that Smith was up against a white, conservative Republican activist who was posing as a black Democrat. Many of those same Democratic leaders are now calling for Smith’s resignation.
Smith’s pledge to never “cower” in the face of the federal prosecution was right out of Blagojevich’s defiant playbook. Blagojevich loudly declared his complete innocence, vowed to fight to the end, said he had been persecuted by the feds and once even challenged the U.S. attorney to a manliness contest.
Right up until he checked himself into federal prison to serve a 14-year term, Blagojevich said the feds had the wrong guy. Smith, by the way, is now looking at 10 years in a federal penitentiary.
But it was one of Smith’s attorneys, Victor Henderson, who really brought the former governor to mind with his remarks.
Henderson told reporters that Smith had been entrapped, but the lawyer’s evidence of this entrapment was an allegedly phony government website and a fictitious day care center operator. That’s hardly proof of entrapment. Actually, it’s standard stuff for a federal sting operation.
And doesn’t claiming that Smith was entrapped into accepting a $7,000 bribe mean Smith and his lawyers are all but admitting that he took the money? And if he did take the cash, isn’t that enough right there to expel him from office?
The House doesn’t have to consider whether or not Smith is guilty under state or federal criminal statutes. This is not about criminality. It’s about politics.
Under its rules, the House merely has to establish “disorderly behavior” by the offending member. That isn’t a very high bar. Theoretically, the House could expel a member for spitting on the sidewalk if two-thirds of the members so voted.
Henderson did make a good point about the FBI failing to inform a judge of its informant’s extensive criminal record. And he gave the strongest indication yet that he planned to disrupt and distract the process from beginning to end when he quoted anti-Nazi Lutheran Pastor Martin Niemoller’s immortal poem about moral cowardice during the Holocaust.
“First they came for the socialists, and I did not speak out because I was not a socialist. Then they came for the trade unionists, and I did not speak out because I was not a trade unionist. Then they came for the Jews, and I did not speak out because I am not a Jew. Then they came for me, and there was no one left to speak to, for me.”
“Today it’s Derrick Smith,” Henderson told reporters, according to Chicago Public Radio. “Who is it tomorrow?”
Needless to say, invoking the Holocaust to defend a client accused of taking a cash bribe is more than a bit much.
But now that the House Special Investigating Committee has allowed Smith and his legal team more than enough time to get their feet underneath them by continually postponing the inevitable, we can probably expect a lot more crud such as this.
Henderson told Illinois Issues magazine that his client plans to testify at future House hearings. The next one is scheduled for May 10.
If Henderson was telling the truth about Smith testifying, we can all expect an embarrassing circus.
* Henderson is also raising expectations of incredible new evidence that will clear his client’s name. Sound familiar? It should…
Henderson accused the FBI of targeting his client because allegedly he would not supply information about Jesse White and other prominent Illinois public officials.
Henderson declined to provide details about what information the FBI allegedly sought. Druker strongly refuted Henderson’s charges, responding “the focus here is Derrick Smith and not Jesse White. These are just desperate charges.”
“There are going to be some developments that will begin to unfold in the next few days,” Henderson insisted. Smith has pled not guilty and appeared in court on April 30.
At one time, Blagojevich also hinted that the feds were after information about Barack Obama. That was just another of his lies.
* And Mark Brown has some news…
A group of Democratic ward committeemen met behind closed doors Friday in search of a strategy to clean up the Derrick Smith mess. […]
An hour or so later, Secretary of State Jesse White, whose support of Smith was key to his earlier selection, emerged to say the group had developed a plan to either replace or defeat the accused lawmaker.
White said a delegation would be sent to speak directly with Smith to ask him to give up the Democratic nomination he won in the March primary. Smith’s victory came only after party leaders stepped in to keep the seat from falling into the hands of his opponent, the former executive director of the Cook County Republican Party.
Ald. Jason Ervin (28th) and Rep. Karen Yarbrough (D-Maywood) will be the official emissaries, White said. […]
If the diplomatic efforts fail, White said Democratic leaders resolved to field a third-party candidate to defeat Smith in November.
Thoughts?
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Fun with numbers
Monday, May 7, 2012 - Posted by Rich Miller
* From the Tribune we find a story about the company which manages the state Lottery…
Northstar Lottery Group — which took charge of daily operations July 1, a few days after the Illinois auditor general blasted the selection process — promised to boost revenue by more than $100 million.
While the dollars are indeed up, they are expected to fall $55 million short of their projections, renewing criticism from those who had opposed the deal.
* The company promised $825 million in total revenues. It’s on track to bring in $770 million. That may actually be a $100 million increase, as you’ll find if you read way down deep into the article explains…
Northstar said several factors led to the lowered forecast, chief among them the fact that the lottery’s revenue for the previous fiscal year was about $668 million, not the $712 million the state anticipated.
But, as the article notes, the Lottery claims it transfered $690 million last fiscal year to the state budget. Nobody could explain the discrepancy.
Northstar has to meet a specific goal or it’ll be fined. According to the Trib, if the company hits the $770 million projection, it would owe nearly $11 million in penalties…
In a move aimed at avoiding possible penalties, Northstar wants the state to lower the goals.
Officials with Northstar and the Illinois Lottery refused to discuss what new revenue targets the company is seeking through arbitration.
What we really need here are the real numbers. The Lottery needs to start sharing. Pronto.
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Man bites dog
Monday, May 7, 2012 - Posted by Rich Miller
* Rare is the day when the Chicago Tribune editorial page blasts Republican state legislators on the budget, but today is that day…
Patricia Bellock, Michael Frerichs, Raymond Poe, you are part of the problem.
Suzi Schmidt, Dave Syverson,you are not far behind.
They are all members of the Illinois House or Senate. They sit on the Commission on Government Forecasting and Accountability. Last week, they reviewed Gov.Pat Quinn’splan to close government facilities around the state.
Illinois has no money. It has to stop spending wherever it can. The governor has made some tough choices.
The commission voted on closing six major facilities the governor wants to close. The commission went 0 for 6.
House Republicans Bellock and Poe and Senate Democrat Frerichs didn’t vote to close one major facility.
Senate Republicans Schmidt and Syverson voted to close only one.
Look, there are plenty of really good reasons not to close some of those facilities. I even agree with some of them, disagree with others. There are decent arguments against closing all of them. For instance, this is from a Treasurer Dan Rutherford op-ed in the very same Tribune…
I would prefer a long-range strategic plan before the state closes any of its mental health or correctional facilities
Legislating ain’t always easy, especially in times like these. But there are folks who talk a good game about cutting the budget and then won’t follow through.
* The Trib’s closer…
It’s time for Republicans to get in the game. You want more cuts in Medicaid than the governor has proposed? Put ‘em on the table. You want to spare local schools from pension costs — where’s your better idea? You don’t want to close a costly prison? Then name another state operation you will shut down tomorrow.
Step up.
Hard to argue with that.
* Other stuff…
* DNR hopes to create ’sustainable’ funding support for outdoors programs
* Editorial: Illinois Senate finally gives up scholarships
* Marin: Oh, the pain of giving up a perk
* Editorial: At last, a victory for common sense
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Cutting Medicaid ain’t easy, Part 9,257
Monday, May 7, 2012 - Posted by Rich Miller
* The Associated Press looks into “cutting fraud” as the answer to solving a big portion of Illinois’ Medicaid funding woes…
Sen. Kirk Dillard, R-Hinsdale, has argued for years that much of Illinois’ Medicaid problem could be solved by rooting out waste and abuse. He says experts believe 10 percent of Medicaid money is spent improperly, which would amount to nearly $1.5 billion in Illinois.
Unfortunately, there’s little evidence to support that claim.
Dillard attributes the figure to the New York Times. He doesn’t specify, but he may be referring to a series of stories in 2005 on fraud in the New York state Medicaid program. The 10 percent figure popped up for two different kinds of fraud and abuse. One was an estimate of the problem in New York’s badly run Medicaid program, and the other was an estimate of losses in all health care nationwide, not just Medicaid.
Neither figure says anything about fraud and abuse in the average state Medicaid program.
A 2010 report by the National Health Care Anti-Fraud Association said a conservative estimate of fraud in the nation’s total health spending _ not Medicaid alone _ would be 3 percent, although it also noted the FBI had put the rate at somewhere between 3 percent and 10 percent. A spokesman for the group recently put national fraud loss at “tens of billions of dollars” but wouldn’t be any more specific.
The Illinois Department of Healthcare and Family Services says it’s not aware of any 10 percent fraud estimate and doesn’t consider it to be accurate. The department’s fraud recovery each year amounts to tens of millions of dollars _ nothing close to the hundreds of millions that Dillard envisions.
Discuss.
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