Off-duty cops hired to patrol exorcism
Thursday, Nov 21, 2013 - Posted by Rich Miller
* Yesterday’s gay marriage “exorcism” was unusual, but this Sun-Times tidbit interested me the most…
In an unusual use of public services, the exorcism included two armed Springfield police officers stationed inside the church vestibule where parishioners entered from the street. At one point during the service, one of the officers strode to the front of the church, though his purpose was unclear. There were no disruptions during the hourlong event. [Emphasis added.]
I checked with the Springfield police department this morning and they got back to me late this afternoon to tell me those were off duty officers who were hired by somebody with the church. As far as the person knew, there were no threats issued in advance.
So, no tax dollars were involved, which is a relief, but it seems a bit odd to me.
* Now, on to Sneed…
Sneed hears Paprocki’s decision to conduct a prayer service Wednesday to “exorcise” the evil of the new same-sex marriage law in Illinois even caused Cardinal Francis George — whose nephew is gay — to flinch.
“I am told the cardinal was embarrassed by Paprocki’s decision to conduct such a service,” said a Sneed source.
Sneed is told Paprocki “didn’t have to get permission from the cardinal to conduct the prayer service,” a second source said. “Paprocki’s boss is the pope. But it’s hard to imagine Pope Francis thinking this was a wise move in the era of understanding he is trying to create.”
* Sun-Times…
After the service, sign-waving demonstrators dodged raindrops as they lined up on the sidewalk outside the sandstone pillars of the church and sang songs in favor of same-sex marriage.
One man, Win Colburn, of Springfield, displayed a handwritten placard to passing motorists. In all-capital letters, it read, “JESUS HAD TWO DADS,” a sentiment that angered some worshipers inside the church and produced insults from drivers.
“I don’t want the haters to have the last word,” Colburn told the Chicago Sun-Times.
I don’t like the term “haters” used in this context, but it was still a rather clever sign.
* SJ-R…
The Rev. Martin Woulfe, a longtime advocate of same-sex marriage, said he joined several church and community members in celebration at the Abraham Lincoln Unitarian Universalist Congregation. The celebration there began with a live streaming of the bill-signing ceremony in Chicago and was followed by a public prayer of thanksgiving on behalf of gay and lesbians who will soon be able to marry, Woulfe said.
Woulfe said although he disagrees with Paprocki’s actions, it is not his job to judge someone for following their own beliefs.
“Today is a reminder to the population that the bishop does not speak for everyone in central Illinois. He speaks for his faith community, but there are other faith communities who will promote their views and no one person has a monopoly on religious truth,” Woulfe said. “I, of course, follow a very different path and have a very different interpretation. He would see it as a loss, but I see it as a victory.”
* Text of the bishop’s homily is here. You can also watch his press conference…
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Unions gear up for final push
Thursday, Nov 21, 2013 - Posted by Rich Miller
* AP…
Illinois unions are planning an intensive lobbying push in opposition to a developing plan to deal with the state’s $100 billion pension crisis.
The “We are One Coalition” represents the state’s major employee unions. The group sent an email to members about “emergency call-in days” next week and Dec. 2-3.
* From the coalition’s website…
With the leaders’ behind this scheme, it will take everything we’ve got to stop it. So be prepared to give it your all.
It’s also likely that the leaders will unveil their scheme quickly and try to jam it through the House and the Senate without enough time for open hearings or public review.
Pretty sure there will be hearings, but if they do come up with an agreement it’ll roll pretty fast.
* I always feel bad for legislative secretaries during actions like this, but it can’t be helped…
* Pension Emergency Call-In Days - November 25-26, Dec. 2-3 - We will swamp the switchboards of every legislator on these four days. No matter how many times you’ve called your legislators, call again. Call both your representative and your senator. Be sure to leave a strong, clear message “VOTE NO ON ANY PENSION BILL THAT DOESN’T HAVE THE SUPPORT OF THE WE ARE ONE UNION COALITION.” Our hotline is 888-412-6570 or click here to call on November 25-26 and December 2-3.
* Pension Emergency Legislative District Actions - Monday, December 2 - We’ll be targeting the district offices of key legislators all across the state for a vigorous grassroots lobbying effort with as many union members and retirees as possible in attendance. Check with your local unions and/or retiree subchapters to see if there is an event in your area — our coalition’s unions will be reaching out to involve their members and retirees in this action day. Then clear your schedule NOW so that you can make sure legislators in your area feel the heat.
…Adding… Eden Martin’s Sun-Times column is about the Gettysburg Address…
President Lincoln wanted people to understand the reason for their war sacrifices. He wanted them to resolve that we not go back to monarchy or any other government by the few. He knew better than most how messy democracy was, but he exhorted citizens to do the work of preserving that democracy, even when it meant accepting decisions with which they profoundly disagreed. Even if it meant they and their representatives had to accept compromise.
Yet compromise is unacceptable in pension reform, Eden?
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* For a long time now, the RTA, Cook County and Chicago have been attempting to stop companies from avoiding paying sales tax revenues by setting up “sham” billing offices in low tax counties. They won today…
The Illinois Supreme Court on Thursday delivered a resounding blow to questionable tax strategies that allow businesses to minimize their sales tax burden in the state.
In a unanimous opinion, the court found that the widespread corporate practice of shifting the official point of purchase from the Chicago area to downstate counties with lower sales taxes inconsistent with state law.
* Hartney Fuel Oil Co. became the big test case. Hartney’s headquarters is in Cook County, but it sent purchase orders to a tiny “sales office” fax machine in downstate Mark, IL. From today’s Illinois Supreme Court opinion…
This shift from Forest View to Mark removed Hartney from the retail occupation tax rolls of Forest View, Cook County, and the RTA. This effected more than a shift in tax allocation; it effected a full removal from tax liability. It did not, however, remove Hartney from the enjoyment of services offered by the Local Governments.
* Hartney wasn’t alone, however. Tribune…
Saddled with some of the nation’s highest sales taxes, some Chicago area businesses have found a creative way to avoid them: They route purchases through offices in places like Kankakee and Channahon with lower sales taxes. Dozens of companies, from airlines and catalog houses to oil companies and computer purveyors, use the strategy to save money on purchases or make their pricing competitive.
The giant loophole exists because Illinois is one of the few states in which sales tax is applied where a purchase is accepted rather than where the product is delivered.
The Illinois Department of Revenue ruled that Hartney was avoiding taxation and had to pay back taxes totaling $23 million, which Hartney paid under protest and then filed suit.
* But the Supremes ruled today that Revenue did not follow applicable state law and Supreme Court precedent when it wrote its original rules, which Hartney used to set up its satellite “office” and avoid taxation.
The bottom line is that it doesn’t appear that companies can use this specific sort of tax avoidance scheme any longer, which is a big win for the high tax entities…
Just how much money is at stake is hard to track. In one instance, the RTA claimed United and American airlines, which set up offices in DeKalb County to buy jet fuel, deprived public transit agencies of nearly $300 million during the past seven years.
* As an aside, Hartney got its money back because it was merely following the DoR’s original rules, which it was entitled to do…
While we do not find Hartney’s approach to retail occupation tax liability consistent with the statute or this court’s precedent, the company did act consistently with the Department’s regulation published at the time.
* Greg Hinz…
The RTA, in a suit later joined by the city of Chicago and Cook County, is seeking $100 million in back payments from companies that it alleges avoided RTA-region sales taxes by routing orders through downstate Channahon and Cook County. That matter has been pending in court pending a ruling in the Hartney case.
It doesn’t appear they’ll get those back taxes, but it does look like the companies can no longer avoid paying the taxes.
* The Supremes, by the way, avoided discussion of whether setups like Hartney’s were shams…
The Local Governments have additionally argued that Hartney’s arrangement should be disregarded as a sham transaction. Analyzing a sham transaction requires assessment of the multiple steps of a transaction, with each being considered relevant, to determine whether economic reality accords with the formal arrangement. Commissioner v. Court Holding Co., 324 U.S. 331, 334 (1945). Because we conclude the regulation erroneously sited tax based solely on purchase order acceptance in the case at bar, the sham transaction doctrine is unavailing. Hartney structured its affairs in accordance with the regulation, by relocating its order-receiving function to a lower tax jurisdiction. Hartney’s arrangement was not without economic substance or economic effect. “The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.” Gregory v. Helvering, 293 U.S. 465, 469 (1935)
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* From a press release…
The Committee for Legislative Reform and Term Limits announced today that it has collected more than 150,000 petition signatures and is halfway to placing the term limits amendment on the November 2014 ballot.
“Illinoisans are hungry for term limits and our effort is gaining serious momentum,” said Bruce Rauner, chairman of the committee. “This amendment will help put the people back in charge of state government and folks are enthusiastically signing on.”
The term limits initiative has steadily gained steam since it was announced at the beginning of September.
In September, the committee collected 12,250 signatures. In October, over 61,000 signatures were collected. More than 77,000 signatures have already been collected in the first three weeks of November.
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Question of the day
Thursday, Nov 21, 2013 - Posted by Rich Miller
* It’s now the law of the land…
* Gay marriage bill signed: ‘A triumph of democracy,’ Quinn says: Perhaps the biggest legislative advocate for the law, state Rep. Greg Harris, D-Chicago, the bill’s House sponsor, was the last to speak before Quinn. “When our constitution was written, those who wrote it understood that liberty and equality were not destinations, but they’re journeys,” Harris said.
* Quinn signs gay marriage bill into law - Illinois now poised to become the 16th state to allow same-sex marriages: “It takes both parties to make something happen, and when we work together, look what we can do,” said Republican Comptroller Judy Baar Topinka. “I am available to be a flower girl, and I’ll even waive the fee.”
* Illinois governor signs same-sex marriage into law: “We understand in our state that part of our unfinished business is to help other states in the United States of America achieve marriage equality,” Quinn said before he signed the bill on a desk once used by President Abraham Lincoln. He said part of that mission was to ensure that “love is not relegated to a second class status to any citizen in our country.”
* Sneed: Gov. Pat Quinn sees same-sex marriage bill as ‘road to social justice’: “Nobody should be relegated to second-class status when it comes to love,” Quinn said.
* The Question: What one word describes your reaction to this new law? Keep your response to one word, please. Thanks.
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More Rauner money news
Thursday, Nov 21, 2013 - Posted by Rich Miller
* Illinois Review…
Palatine Township Republicans met [yesterday] evening to endorse 2014 primary election candidates. Those candidates receiving 60% or more of the votes were officially endorsed by the Palatine Township Republican Organization (PTRO). The results were as follows:
ILLINOIS GOVERNOR
* Rauner: 65% (endorsed)
* Rutherford: 20%
* Dillard: 11%
* Brady: 4%
* As usual, money was an issue. Illinois Observer…
Palatine Township Committeeman Aaron Del Mar, who is also the Chairman of the Cook County Republican Party, helped engineer Rauner’s victory, sources say.
Del Mar and the committees under his control have been showered with cash from both Rauner and Rauner ally Jack Roeser, a wealthy conservative activist .
Rauner, who recently won the GOP Lake County straw poll, donated $1,000 to the Palatine Township GOP on August 28, 2013 and $2,500 to Del Mar’s personal political committee on August 12, 2013.
Roeser donated $5,000 to Del Mar’s personal political committee on October 19, 2012 and $5,000 on August 16, 2013. And since Del Mar become the Cook County GOP party chief in April 2012, Roeser and his wife and his company, Otto Engineering, have donated $46,500.
“Rauner’s Palatine endorsement was foreordained,” said a GOP source. “Roeser and Rauner are Del Mar’s biggest donors.”
Dillard’s gubernatorial campaign donated $500 to the Palatine Township GOP on September 7, 2013.
* By the way, Rauner has reported raising $519,317.53 since he filed his November 13th letter of intent to bust the state contribution caps.
That total does not include Rauner’s own $500,000 contribution to himself. So, he’s over a million. It does include a $250,000 contribution from Glen Tullman, a $100,000 contribution from Illinois Policy Institute board member Elizabeth Christie, and $20,000 from Edgar Bachrach, who is listed on Rauner’s disclosure as an Illinois Policy Institute board member.
* In other Rauner news, Greg Hinz looked at some more contributions…
The story is that four companies listing the same address — 4615 Northpark Drive, Suite 101 — each in recent days have donated $10,500 to the Rauner campaign, according to a state Board of Elections disclosure filed yesterday.
The question is, why? And who?
The Rauner campaign isn’t saying. The candidate’s spokesman failed to respond to several requests for comment.
What I do know is, three of the firms are in the self-storage business and the fourth is a financial firm, RG Investments No. 4 LLC, according to the filings. None has a listed phone number that I could find.
Greg sent me a link to the story and asked if I had any idea what was going on. I searched around and e-mailed him back some clues…
Update — Rich Miller at Capitol Fax may have figured out part of the mystery.
Another donor who gave $5,300 to Mr. Rauner in June is Colorado Springs businessman Richard Graham. And he has a company, Graham Investments, that lists the Northpark Drive address and is in the warehouse business.
Mr. Graham wasn’t immediately available for comment. Perhaps he was just spreading around his donations. But the question remains: Why would a Colorado guy who runs self-storage facilities be so interested in who’s elected governor of Illinois?
Most likely what’s going on here is that we have a wealthy guy who got around the contribution caps by sending maxed out checks from various corporate entities he controls. It’s legal. And now that there are no caps, it’s no longer even necessary.
Still, as Greg notes, it is a bit odd that a Colorado storage business owner would be so heavily involved in the Illinois governor’s race.
* Meanwhile…
Bruce Rauner’s initiative to get a term limits question on the Nov. 2016 ballot just got a new treasurer, according to newly filed disclosures with the state.
At the last reporting period, the initiative raised $600,000 since August and had $458,000 in the bank at the close of the period.
Harlan Teller of Evanston, who now heads the Center for Economic Progress, will now serve as the treasurer of the Committee for Legislative Reform and Term Limits. Records show he once made a modest donation to Gery Chico for Chicago Mayor.
About the Center for Economic Progress…
We help promote financial education and sound money practices — helping cut ties to predatory financial services.
We provide year-round workshops and one-on-one financial coaching to help clients set financial goals; create a spending plan; access safe and affordable bank products like bank accounts and small dollar loans; and review and correct credit reports and improve credit scores.
We have helped nearly 10,000 families open bank accounts and provided financial workshops in Chicago’s underserved communities to reach thousands more.
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“The belly of the beast”
Thursday, Nov 21, 2013 - Posted by Rich Miller
* My former intern Kevin Fanning recently stumbled across a short essay he wrote back in 2009 about his work for me the year before…
I had the rare opportunity to work for Capitol Fax creator and Illinois political guru Rich Miller. The experience was a once-in-a-lifetime chance to look inside the belly of the beast that is our statehouse, and has often been referenced as the best internship in state politics. Riding shotgun with Mr. Miller enabled me to experience things to which few Illinois politicos are privy, let alone a 22-year-old.
My official duties included daily work on The Capitol Fax blog, interviews with every legislative spokesperson, weekly opinion columns, and intense on-the-ground reporting at the statehouse. The high profile of The Capitol Fax created opportunities to interact with, learn from, and develop relationships with a variety of key players in the legislative process including but not limited to: constitutional officers, caucus leaders, legislators, lobbyists, journalists, and staffers.
Late-night office conversations, backroom restaurant talk, and quiet corner event discussions became a staple of my residency. Much of the real statehouse action takes place behind closed doors, and oftentimes I was lucky enough to be there to observe. The experience was heightened by the rare spectacle that was the 2008 General Assembly session, the Tony Rezko verdict, and the presidential bid of Springfield’s native son, Barack Obama. I had an exceptional time in Springfield, and will continue working on the blog while pursuing my master’s degree.
* I flat out rejected Jim Nowlan when he initially tried to persuade me to bring on Paul Richardson during the summer of 2006. I didn’t want to be tied down, slowed down, held back, whatever, by a tag-along kid. But Paul turned out to be fantastic, and over the years I’ve learned a lot from those young guys, and we had some amazing times along the way.
The University of Illinois program that brought Paul, Kevin, Mike Murray and Dan Weber changed after Nowlan left, and we no longer work together. SIU’s Paul Simon Institute sent me the irrepressible and smart as a whip Barton Lorimor, and I’ve known Owen Irwin since he was a young child. I took Owen on after he invited me to dinner one evening last year and impressively laid out his future plans and asked for my help.
* I didn’t have an intern this past spring. In some ways it was easier because I wasn’t responsible for anyone else. In other ways, though, I really missed the mentoring and the help.
Barton, Owen and I went out to dinner last night and talked about old times and current events. I thoroughly enjoyed myself and wondered later if I should try and find someone for next session.
* So, if you know a young person who is keenly interested in politics and can hang with the big dogs, send me an e-mail or give me a call. Perhaps we can work something out.
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* Illinois’ $100 billion unfunded pension liability just got a bit smaller. Illinois Issues…
As part of a $13 billion national settlement, JPMorgan Chase & Co. has agreed to pay millions to Illinois’ public employee pensions systems for not disclosing the risks associated with some investments.
As part of the settlement, JPMorgan Chase admitted that it the misrepresented the quality of mortgage-backed investments it sold. “Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” Attorney General Eric Holder said in a prepared statement. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior. The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability.”
Under the deal, the bank will pay $100 million to Illinois pension systems that purchased the investments prior to 2009. “We are still cleaning up the mess that Wall Street made with its reckless investment schemes and fraudulent conduct,” Attorney General Lisa Madigan said in a written statement. “Today’s settlement with Chase will assist Illinois to recover its losses from the dangerous and deceptive securities that put our economy on the path to destruction.” Madigan has been working with President Barack Obama’s Financial Fraud Enforcement Task Force. The group’s investigations spurred this and other settlements from big banks and mortgage servicers. […]
The settlement is the largest in U.S. history. It also includes a $4 billion settlement with the Federal Housing Finance Agency and a $4 billion for the U.S. Department of Housing and Urban Development. Some of that money will go toward loans the bank is forgiving or giving more favorable terms to borrowers. Some will go to new low-interest loans to borrowers in areas hit hardest by the housing crisis. The funds will also be used to tear down long-abandoned homes.
Rob a liquor store, go to prison. Steal billions, send the international economy into a devastating tailspin and give some money to the government.
* More…
The biggest chunk, $72.4 million, will go to the Illinois Teachers’ Retirement System; $16.2 million will go to the State Universities Retirement System; and $11.4 million will go to a unit that invests on behalf of funds that cover other state workers.
Imagine how horrible that settlement would’ve been for former JPMorgan Chase Midwest Chairman Bill Daley if he’d stayed in the governor’s race.
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Edgar stands by his man
Thursday, Nov 21, 2013 - Posted by Rich Miller
* Bernie talked to Jim Edgar about Sen. Kirk Dillard’s emphasis on his socially conservative beliefs…
Particularly since Dillard spoke at a Statehouse rally in opposition to same-sex marriage before the House vote that sent the measure to the governor, some observers have sensed that Dillard is stressing conservative credentials in his quest for the GOP nomination.
“I’ve said on social issues Kirk is far more conservative than I am,” Edgar said in another recent interview. “But as I’ve often said, the key thing is fiscal issues. … I would not encourage him to go any farther right. I still think, and even in a Republican primary in Illinois, you want folks in the middle, too.”
“I don’t expect to agree with the candidate I support 100 percent, “Edgar added. “I still think he is the best prepared to be governor.”
Dillard’s campaign just Wednesday issued a news release announcing support from several conservative leaders. They include PHYLLIS SCHLAFLY, president and founder of Eagle Forum; former state Rep. PENNY PULLEN of Arlington Heights, president of Eagle Forum of Illinois; the Rev. BOB VANDEN BOSCH of Lake Zurich, director of Concerned Christian Americans; LIZ EILERS, a member of the board of directors of Springfield Right to Life; and SANDY RIOS, a conservative radio host.
An open letter from the group of endorsers states that among the four GOP candidates for governor, “All but Dillard have failed in their duty to lead on issues like life, marriage and lower taxes.” The word “lead” is boldfaced in the letter.
Discuss.
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