The sorry tale of Peoria’s mayor
Wednesday, May 14, 2014 - Posted by Rich Miller
* Nate Anderson has a great story, much of it generated by FOIAs, of how the mayor of Peoria hounded a Twitter user via the state’s attorney and the local police. Go read the whole thing. Part of his conclusion…
The case serves as a reminder of the true power of the state. Thanks to the Internet, even local cops can now track down random Twitter miscreants without leaving the office—something that would have been impossible in the days of anonymous handbills plastered to brick walls around town. And those local cops can get as much information about your life as even the FBI could glean in a major felony investigation.
In this case, Peoria police had complete details of Daniel’s Twitter account usage along with cell phones and computers seized from his house. In addition, the police swore out a fourth warrant on April 17—two days after the raid—for Daniel’s Gmail account. The warrant sought not just connection details, but all content in the account, including “any image file, document files, text files, and other stored files.” Police had broad latitude to search through anything they found. Between an e-mail account, a mobile phone, and a laptop computer, police can gain an almost complete window into someone’s life. Do we want them to have this much power simply to crack down on misdemeanors?
The state doesn’t always exercise this tremendous power under rigorous oversight, either. Though the apparatus of oversight was in place, the judges who signed off on the warrants never pushed back on them, even though the warrants misstated the day on which Ardis learned about @peoriamayor and even though one of them said that the offense in question was a “violation of child pornography laws” rather than the actual claim of “false personation.”
* Meanwhile, from the the ACLU of Illinois…
The ACLU of Illinois now represents Mr. Daniel, the creator of the Twitter parody. Mr. Daniel, like other parodists, has a First Amendment right to post these tweets. He was engaging in a time-honored tradition of poking fun at public officials — even when the public official doesn’t like it. Because Mr. Daniel’s activities were protected, they should never have led to a warrant and search of his home. The police activity in this case was unnecessary and contrary to both the First and Fourth Amendment protections to which he was entitled.
In the coming weeks, the ACLU of Illinois anticipates bringing legal action in support of Mr. Daniel against those officials who are responsible for the violations of his rights. We hope this action will send a strong signal to all that wrongful use of the police power to suppress protected speech, even when it is critical or makes fun of public officials is an abuse of power and is not acceptable.
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Needed tax break reform or barrier to growth?
Wednesday, May 14, 2014 - Posted by Rich Miller
* House Speaker Michael Madigan introduced several reforms of Illinois’ EDGE credit today. It was an amendment to HB 3890, which easily passed out of committee. Here’s one of the biggest reform categories…
New Rules for “Special” EDGE Credits — The amendment addresses the special EDGE agreements, which give qualified businesses the option of utilizing their credits earned against the income taxes withheld from their employees. These special agreements have been approved by the General Assembly by law in the past. Going forward, businesses seeking this special treatment from the General Assembly will have to meet higher standards:
- The business must agree to create new jobs — this special treatment will not be available to businesses that are only retaining employees in this state.
- The new jobs must be created in an area of high poverty or high unemployment; “high poverty” means a census tract with over 20% of residents living below the poverty level; “high unemployment” means a census tract where the unemployment rate is more than 3 percentage points above the state average.
- The business must agree to disclose income tax information during the term of its EDGE agreement, including gross income, the amount of income allocated to Illinois, and net income before and after credits are applied. This information will be publicly available on DCEO’s website.
* The Illinois Chamber’s top dog was furious. From the Twitters…
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*** UPDATE *** * From the Humane Society…
I just wanted to send you a heads up that the bill regarding the sale of cats and dogs in pet stores will not be heard today. The parties are working on an amendment.
[ *** End Of Update *** ]
* From the Humane Society…
Representatives from The Humane Society of the United States and other witnesses will testify at the Illinois Senate Executive Committee hearing in support of HB 4056.
The first of its kind, the bill would allow pet stores across the state to only acquire dogs and cats from shelters and rescues.
* From CBS 2…
A new report from the Humane Society of the United States lists the 100 worst puppy mills in the country and two of them are in Illinois. […]
“We’ve documented reports of dogs so horribly matted that there was a fur coat like mat going from one end to the other in a sold mass, dogs with injuries and illnesses and injuries that hadn’t been treated by vet and dogs in small stacked cages,” said Summers. Other documented problems included overbreeding, inbreeding, minimum veterinary care and the lack of monitoring of other health issues. […]
“The only thing that’s going to stop this is to ban the sale of puppies at pet stores,” said Ida McCarthy, Chicago Coordinator of the Companion Animal Protection Society. As many as 30 cities in the U.S. have done just that including Los Angeles. San Diego is the latest considering a ban. In Canada, Toronto has enacted a similar law.
“You have to stop the demand and the puppy mills – where are they going to sell their dogs? There are always going to be puppy mills but there’s not going to be thousands of them like there are now,” she said.
* From the Pet Industry Joint Advisory Council…
You, and other supporters of our cause, know that closing pet stores by banning the retail sale of pets in Illinois does not effectively address the problems associated with bad, out-of-state breeders. In fact, the Chicago Veterinary Medical Association-whose members include over 1,000 veterinarians in the Chicago area-echoed this in in a statement opposing the recent Cook County ban:
“The Chicago Veterinary Medical Association strongly believes that ongoing education of the public is a much more effective method to increase pet owner awareness and bring about the desired positive change necessary to address valid concerns regarding unethical, unscrupulous breeders who are the ultimate problem.” […]
An Illinois-wide ban means consumers will have limited choice in where they obtain a healthy, happy pet as there will be no pet stores to sell them, which will:
Hurt animal welfare since other sources (like rogue internet operators) are not regulated at all. In fact, Illinois pet stores are the most regulated source for consumers to obtain purebred pets in the state-while other sources for purebred pets have no veterinary requirement;
Remove some of the most stringent consumer protection laws in the United States which only apply to retail pet sales;
Negatively impact the state’s economy by putting people out of jobs and reducing tax revenue collected by Illinois and localities; and
Limit the availability of pets and foster an environment for unregulated black market breeding.
* The Question: Should pet stores be forbidden by the state to sell dogs and cats from breeders and mandated to only sell those animals from shelters and rescues? Take the poll and then explain your answer in comments, please.
web surveys
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Vote “Yes” for Health Care
Wednesday, May 14, 2014 - Posted by Advertising Department
[The following is a paid advertisement.]
Illinois depends on the hospital community, but the important and vital work of our hospitals and health systems would be threatened by devastating cuts if the General Assembly does not enact a fully funded budget that maintains current tax rates. The Illinois Hospital Association and hospital community urge our state lawmakers to vote “Yes” to enact an FY2015 state budget that maintains current tax rates and avoids harmful cuts.
Every year, our state’s more than 200 hospitals and nearly 50 health systems:
• Welcome more than 152,000 new babies into the world.
• Perform 1.1 million surgical procedures.
• Admit almost 1.5 million inpatients.
• Treat 86,327 outpatients every day.
• Treat 5.4 million emergency department patients.
Illinois hospitals are the largest employer in many communities, and among the top three employers in 48 of the State’s 102 counties. The total economic impact of Illinois hospitals is $83.4 billion a year.
This week, during National Hospital Week, we celebrate hospitals across Illinois, along with the men and women who, day in and day out, support the health of their communities through compassionate care, constant innovation and unwavering dedication.
Illinois’ hospitals provide care to all who enter their doors, regardless of their ability to pay, thanks to the hard work, dedication and commitment of their nearly 250,000 employees. They are there to care, 24 hours a day, seven days a week.
Vote “Yes” to maintain current tax rates, to avoid harmful cuts and to support hospitals as they care for people in every community throughout Illinois.
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Today’s quotable
Wednesday, May 14, 2014 - Posted by Rich Miller
* George Will writes about Illinois politics…
[Gov. Pat Quinn] is, as Winston Churchill reportedly said of an adversary, a modest man with much to be modest about. Hence Quinn’s campaign theme: Don’t compare me to the Almighty, compare me to the alternative.
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Ride-Sharing: Why do they want to be excused from the law?
Wednesday, May 14, 2014 - Posted by Advertising Department
[The following is a paid advertisement.]
Would you choose to ride with a driver who never received a proper background check or a drug test, in a car that is not properly insured?
Would you let your son or daughter ride with a driver whose background is unknown and who could be a criminal, like in a recent investigation by NBC 5 Chicago?
Why do ride-sharing companies like Uber and Lyft continue to fight the same public safety protections required of any other car service? Is it because these protections cut into their financial bottom line?
Is the fact that they force their passengers to pay a so-called “safety fee” and sign a waiver agreeing to use their service “at your own risk” because they are worried who their drivers are?
There’s a reason why the media is asking “Why Is Uber Charging You Extra to Not Get Assaulted?”
Ask Uber and Lyft why they think they should be excused from the law.
Vote YES on HB 4075 and support common sense public safety protections for all.
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* From BlueRoomStream…
[GOP state Rep. Dennis Reboletti] says Dems are putting the cart before the horse by passing a budget assuming the tax hike will stay in place.
Yep.
* AP…
Democratic lawmakers are moving forward with a 2015 budget that is based upon an extension of Illinois’ temporary income tax increase. […]
The move to approve the budget one of political expediency for Democratic leaders in the statehouse, as passing a budget before endorsing a tax increase could serve to force the hand of several vulnerable lawmakers who are on the fence about voting for a permanent tax rise. […]
“I think that a vote for this budget is effectively a vote for the tax increase,” state Rep. David McSweeney, a Barrington Hills Republican said.
All true.
* Finke…
Rep. Jack Franks, D-Marengo, an opponent of extending the tax increase, said House leadership has been polling members to gauge support for extending the tax.
“I don’t think they have the votes,” Franks said. “I’ve been doing my own polling and talking to members. I think they’re short.”
Franks also said he doesn’t see how the budget plan “has any validity whatsoever” since it is based on a tax extension that hasn’t been approved.
Yep.
* Dave Dahl…
An idea floating around the Capitol is to pass the larger budget now, then save the tax vote for after the election and let whoever is elected governor then deal with it.
State Rep. Frank Mautino (D-Spring Valley), a member of the House Revenue and Finance Committee, is not on board with that. “I would hope that before we left here on May 31 and voted on the budget that we would have our revenues set for next year,” he said, adding that the uncertainty, to say nothing of the reduction of income, would damage school districts expecting state money.
Let’s hope they don’t leave town with a completely phony baloney budget.
* Illinois Public Radio…
[Democratic Rep. Greg Harris] says the revenue aspect of the budget will be handled separately. Extending the tax hike has been controversial, but Harris says the focus ought to be on what he calls the “important government services” that are at risk.
He also has a point.
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Rauner lawsuit oppo dump continues
Wednesday, May 14, 2014 - Posted by Rich Miller
* The Sun-Times reports on yet another lawsuit against Bruce Rauner’s former company GTCR…
In a federal lawsuit filed against GTCR, Universal American says Rauner’s firm essentially sold it a $222.3 million lemon after APS and GTCR executives engaged in a “deliberate campaign to conceal the truth.”
But this choice little nugget was buried way down in the piece…
Without admitting wrongdoing, APS [which was owned by Rauner’s company from 2007 until 2012] agreed to pay $13 million to settle allegations from the federal government and the state of Georgia in 2011.
The feds said the firm “failed to provide the required services to a large portion of the Medicaid recipients and over-billed the Georgia Department of Community Health.” This allegedly occurred from 2007 until 2010.
“APS Healthcare took Medicaid’s money for itself and left some of our most vulnerable citizens without the aid they deserved,” Sally Quillian Yates, the U.S. attorney for Georgia’s northern district, said at the time the settlement was announced.
Ouch, ouch, ouch, ouch, ouch.
* And the Quinn campaign followed up early this morning with a press release containing “Additional examples of fraud”…
Lason
“If his (political) narrative is ‘I’m a hands-on manager,’ this is not a firm where you would want to say that,” said Peter J. Henning, an expert on securities fraud and white collar crime. “If he was hands-on, he certainly might have gotten his fingers dirty. Henning said Lason might be recalled as “one of the worst accounting frauds ever” had it not been upstaged by similar scandals at much bigger companies — Enron and WorldCom.” (Chicago Tribune, 1/20/14)
In an August 1999 interview with The Wall Street Transcript, a subscription newsletter that features interviews with business leaders, Rauner hailed Lason as a “great company … doing quite well,” and went on to describe an ownership philosophy at GTCR steeped in the kind of hands-on involvement he now vows to bring to the governor’s office if elected. “We spend a lot of time living with our companies on a week-to-week basis, understanding what’s going on, and being in the flow of information, so we can be helpful and knowledgeable about the operation,” Rauner said. (Chicago Tribune, 1/20/14)
Acartha
In 2004, Mr. Rauner made a personal $4.5 million startup investment in fund manager Acartha Group LLC, a suburban St. Louis firm founded by Burton Douglas Morriss. Before Acartha, Mr. Morriss had already arranged one deal in which the duo made more than $75 million. Mr. Rauner, an avid outdoorsman, also owned a hunting camp with Mr. Morriss. But in 2012, the SEC seized control of Acartha, accusing Mr. Morriss of defrauding investors of $9.1 million. Mr. Rauner was a “passive investor” who was “misled and defrauded” by Mr. Morriss, like dozens of others, Mike Schrimpf, a spokesman for Mr. Rauner’s campaign, says in an email. “Bruce is angered and outraged by Morriss’ actions.” […](“Rauner backed firm later shut down for fraud,” Crain’s Chicago Business, 2/24/14)
To acquire his stake in Acartha, Mr. Rauner traded his interests in Hela and another Morriss venture, for which he paid $2.5 million, and paid an additional $2 million in cash. The two men along with two others also owned a hunting lodge and farm in Canada. […](“Rauner backed firm later shut down for fraud,” Crain’s Chicago Business, 2/24/14)
In a 2005 interview with the St. Louis Business Journal, Morriss said that two of his partners in the Acartha Group included New York financier Nicolas Rohatyn and Bruce Rauner, who operates a Chicago-based private equity firm. They did not return phone calls Tuesday. Morriss served as chairman of the board…”Morriss lived a lavish lifestyle, living in a multi-million dollar home, driving luxury automobiles, leasing a private airplane and helicopter, and taking expensive vacations,” the SEC complaint states. (“SEC accuses Clayton-based financier of defrauding investors,” St. Louis Post-Dispatch, 1/18/12)
“Bust Out” Nursing Home scheme
According to a U.S. Bankruptcy Court judge in Florida on March 14, Rauner can’t walk away from being at the helm of an elaborate “bust out” plan to avoid culpability for purchases and practices of a string of nursing homes.
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* Sun-Times…
Cook County Circuit Court Clerk Dorothy Brown’s husband has been hit with a federal subpoena asking him to appear before a grand jury as part of an investigation into a state anti-violence program.
A source with knowledge of the investigation told the Chicago Sun-Times that the subpoena from the U.S. Attorney’s Office in Springfield is directed at Benton Cook III.
It’s a sign that federal authorities, who already have requested documents from two state agencies regarding Gov. Pat Quinn’s troubled Neighborhood Recovery Initiative, are taking a closer look at Cook’s role in receiving grant money from the program. […]
Cook was paid more than $146,000 in salary and fringe benefits from Neighborhood Recovery Initiative grant funds, accounting for 7 percent of the total $2.1 state allotment to combat violence in the West Garfield Park neighborhood. Cook oversaw several subcontractors, including his own non-profit, which took in more than $3,300 in anti-violence grant money. The Sun-Times has previously reported that Cook is a felon, raising questions over how he qualified to oversee money in the program.
* Cook has hired Ed Genson as his attorney. Genson is a legendary criminal defense attorney and recently defended his client to the Sun-Times…
An attorney hired by Cook County Clerk Dorothy Brown’s husband Benton Cook III, said his client has unfairly become the “fall guy” for a troubled state anti-violence program that’s been the subject of a series of investigations.
“If there were things that went wrong with regards to that program, neither he nor she had involvement,” Genson told Early & Often, speaking on behalf of Brown and her husband. “He was just a salaried worker who did his job.” […]
“He’s really the fall guy for this because of his relationship” to Brown, Genson said.
* Meanwhile, this is from the website of Cook County Clerk Dorothy Brown’s husband Benton Cook…
Dr. Cook has conducted anxiety reduction and stress management groups at multiple community venues. He has taught in the Psychology and Management Departments and is an experienced meeting facilitator and focus-group leader. He has 25 years of management and administrative experience.
Dr. Cook earned his Doctor of Psychology and Masters Degree. He’s completed internships in clinical and counseling psychology. His Master’s focused on Management and Organizational Behavior. His psychology training and internship institutions are accredited by the American Psychological Association.
* So the Tribune asked the state whether Cook was licensed to practice psychology. He wasn’t and the state sent him a notice to appear before an administrative law judge on June 16. Oops…
The civil complaint by state regulators cites Cook’s online description. Those claims “constitute the unlicensed practice of a clinical psychologist,” which carries a fine of up to $10,000 per violation, the complaint states. The aim is to get Cook to stop representing himself as a clinical psychologist, said Susan Hofer, spokeswoman for the regulatory department.
* More…
The Chicago Area Project recently hired Rick Jasculca, a high-profile communications consultant, to answer questions about the state grant. In an email on behalf of the group’s executive director, David Whittaker, Jasculca said Cook told officials that he was married to Brown before they hired him and they “did not find that relevant.”
Jasculca wrote that Cook was hired because of his “seemingly relevant academic achievement, breadth of experience and deep involvement in the community.”
“Cook’s work and credentials were reviewed, and he was interviewed by CAP management,” Jasculca added. “In hindsight, it is clear that we should have used a more robust process to vet his credentials and background.”
* In other news…
A prosecutor who helped convict Canadian media mogul Conrad Black and other high-profile figures is the new head of the criminal division at Chicago’s U.S. attorney’s office.
The office announced Julie B. Porter’s appointment Tuesday.
The announcement comes as the new U.S. attorney for northern Illinois, Zachary Fardon, makes various structural changes. He has faced pressure to find more ways his office can help stem street-level violence in Chicago.
Ed Genson defended Conrad Black, by the way. And Porter helped prosecute Bill Cellini.
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* No revenue stream is reportedly in this plan, but the Sun–Times reports that a new pension reform proposal by Cook County Board President Toni Preckwinkle will “likely” pay for the $144 million in new state-mandated contribution costs with a property and/or sales tax increase…
(T)he bill would require all employees hired before 2010 to pay 10.5 percent of their salaries into their retirement, the source said.
That’s a 2-percent hike for most county employees, who currently pay 8.5 percent of their salary into the fund. The increase for sheriff’s office employees would be smaller because they already pay 9 percent.
Future retirees would have to wait two years after retirement to get a cost-of-living increase, the source said. And those cost-of-living increases — currently locked in at 3 percent — would fluctuate between 2 and 4 percent, depending on the rate of inflation
Additionally, all retirees would also have their cost-of-living increases frozen in 2016. And cost-of-living increases would be frozen in the future if the accounts dip below 59 percent funding, according to the source.
AFSCME is opposed, but SEIU Local 73 supports the bill’s “basic components,” the paper reports.
*** UPDATE *** From Crain’s…
“The funding of health insurance for retirees is a major gain, especially for those who are close to retirement and not eligible for Medicare yet,” according to a post this month on the website of Service Employees International Union Local 73, which represents Cook County workers and other government employees in the Chicago area.
According to another summary on a Teamster website, pension cost of living benefits would be suspended if the fund dips below 50 percent funding and would be increased if funding exceeds 100 percent.
But the cost of living adjustment for workers hired before Jan. 1, 2011, would remain generous by recent standards for pension deals, if the funding level remains between 50.01 percent and 99.9 percent.
According to the Teamsters website, the COLA would be at least 2 percent a year and up to 4 percent a year, depending on the consumer price index, and it would be compounded each year. If the funding ratio exceeds 100 percent, the COLA goes back to three percent, compounded annually.
“Just on the surface, it’s very generous,” said Laurence Msall, president of the Civic Federation, a Chicago fiscal watchdog group that advocates for pension changes. “It calls into question whether they get enough savings” from the proposed reforms.
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Credit Unions – Individual service, united in focus
Wednesday, May 14, 2014 - Posted by Advertising Department
[The following is a paid advertisement.]
As not-for-profit financial cooperatives, credit unions hold a strong belief in giving back to their communities at the credit union level and on a geographic basis. Twenty-four chapters unite the state’s 333 credit unions and are integral to fulfilling their mission for nearly three million consumer members. Like the boards at credit unions, chapter boards are also run by volunteers. The Illinois Quad Cities Chapter alone serves 10 credit unions and their 234,000 members in a three county area. Similarly to other credit union chapters, Illinois Quad Cities is particularly active in community charitable activities and worthwhile causes. This includes helping consumers protect their personal information by sponsoring community shred days to properly dispose of documents. The chapter also hosts “community nights” to provide local organizations a forum to request financial support. As a result, more than $15,000 has been provided to a variety of local charities. Motivated by their stories, credit unions separately hold fundraisers to support these groups, as well participate in events for others, including the local children’s hospital. Members know credit unions will be there for their daily financial needs and support their community – just some of the many virtues that define the credit union difference.
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