* 4:26 pm: US Attorney James Lewis sent a letter to the co-chairmen of the Legislative Audit Commission today asking again that the Commission delay testimony of subpoenaed Quinn administration officials. Read it here.
As you may recall, Republicans and the Chicago Tribune have wondered aloud why the legislative liaison branch of the US Department of Justice asked for the delay of hearings on the anti-violence program instead of the US Attorney for the Central District of Illinois, who is actually handling the case. The letter makes it clear that the US Attorney himself asked the DoJ to make the initial request…
The Assistant Attorney General made that request to the Commission on behalf of the Department of Justice and our office because we are conducting an ongoing criminal investigation as to conduct associated with NRI. We asked [the Office of Legislative Affairs] to make that request because we are genuinely concerned that interviews and testimony about the matter during this 90-day time period would pose several substantial risks to our ongoing investigation.
More…
We recognize and appreciate the importance of the Commission’s work. For that reason, we have asked only for the deference that we believe is necessary to avoid interference with our investigation. As you know, we have not asked the Commission to defer its collection or disclosure of documents or records as to NRI.
Thank you for your attention to this important matter.
* 4:54 pm - The Republicans on the Commission are preparing a joint response. Stay tuned.
* 5:17 pm - The GOP response…
Late this afternoon, the Legislative Audit Commission received a request from James A. Lewis, United States Attorney, Central District of Illinois, to defer conducting interviews or receiving testimony from individuals in connection with the State of Illinois’ Neighborhood Recovery Initiative for 90 days.
The request came because the office is “conducting an ongoing criminal investigation,” according to Lewis.
The bipartisan, bicameral Legislative Audit Commission will consider the U.S. Attorney and Department of Justice request at the public hearing scheduled for 10am Wednesday and 9am Thursday, if necessary, at the Michael J. Bilandic Building, Room 600, Chicago.
The Legislative Audit Commission will convene as planned. All witnesses – including those subpoenaed — are expected to attend as scheduled.
Sen. Jason Barickman, Co-Chair
Rep. David Reis
Sen. Bill Brady
Rep. Ron Sandack
Sen. Jim Oberweis
Rep. Rich Brauer
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* AP…
Republican Bruce Rauner says he raised about $8 million in the second quarter and has about $3.5 million on hand for his bid for Illinois governor.
The Winnetka businessman’s campaign released fundraising totals Tuesday for the three-month period that ended June 30.
Rauner also claims to have received more than 8,500 contributions in the quarter. Gov. Quinn was vastly outraised, but he has lots more cash on hand.
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* From Cook County Board President Toni Preckwinkle…
“I have decided to rule out a run for Mayor of Chicago in 2015 because I made a commitment to reform Cook County’s criminal justice system, transform our healthcare system, and ensure the viability of our pension system. We are making progress, but we still have work to do. I’m proud that we have balanced the budget every year while cutting the sales tax, holding the line on property taxes, and cutting a billion dollars of fat out of our budget. I am equally proud that our economic development initiatives have helped position our region to create new jobs in the near future. I promised to clean up Cook county government and we are changing the culture of how we do business. In many instances we have vastly improved the delivery of services to county residents, but we have a lot of unfinished business that I intend to address wholeheartedly. I am passionate about making Cook County a more fair and efficient place to live and work. I appreciate all of those who have expressed confidence in me by urging me to run for Mayor, and I hope you will continue to support me going forward.”.
One of her campaign aides has been stirring this pot for months, even to the point of leaking this false info today…
Preckwinkle is to release a statement revealing she is heartbroken over the decision today.
But she’s been saying publicly over and over for just as long that she isn’t running. So it’s really no surprise, despite that Sun-Times poll showing her beating Rahm Emanuel like a rented mule.
* Meanwhile…
Karen Lewis’ potential bid for Chicago Mayor has moved beyond just a thought — it’s an “organic,” growing movement, the fiery Chicago Teachers Union president said.
Lewis revealed on Monday she already has an unofficial exploratory committee in the works, a chairperson has been named and her camp is working to have a representative in each of the city’s 77 neighborhoods.
Since an Early & Often poll released Sunday put Lewis at a 9-percentage-point advantage over Mayor Rahm Emanuel, Lewis’ phone has been ringing non-stop, she said.
“They’ve been coming from all over the country,” Lewis said in an interview Monday. “Facebook is blowing up. Twitter is blowing up.”
I’m not sure I’ve ever heard of an “unofficial exploratory committee” before.
If she does run, I may have to move back to Chicago just for the theatrical aspect. For a profanity-laced take on it, click here.
*** UPDATE *** Mayor Emanuel…
“Toni Preckwinkle has been a strong partner in tackling many of the challenges facing Chicago neighborhoods, and an outspoken voice for criminal justice and pension reform. The unprecedented cooperation between the City and County has produced more than $65 million in taxpayer savings, a reformed workforce board that’s finding jobs for more Chicagoans, and expanded partnership to expand minority and women-owned businesses. I agree that we have more work to do together on these and other issues so that we can find ways to improve Chicago and Cook County for everybody.”
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The cost of corruption
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* A new study on public corruption and state spending started out with five hypotheses…
Hypothesis 1: All other things being equal, states with higher levels of public officials’ corruption are likely to have larger total expenditures.
Hypothesis 2: All other things being equal, states with higher levels of public officials’ corruption are likely to spend more on items that may provide a larger rent to corrupt officials, such as capital, construction, and highways
Hypothesis 3: All other things being equal, states with higher levels of public officials’ corruption are likely to spend more on items that may provide larger benefits to corrupt officials. This predicts that debt financing and expenditures on total wages and salaries will become larger in a more corrupt state.
Hypothesis 4: All other things being equal, states with higher levels of public officials’ corruption are likely to spend less on items that provide fewer opportunities for corrupt officials to collect bribes, such as education, welfare, health, and hospitals.
I’d quibble with some of that, particularly that last part. Rod Blagojevich tried to shake down a children’s hospital for a huge campaign contribution, for example.
* But it played out pretty well for the researchers in the end. As the Times of Indiana reports…
Spending comparisons between highly corrupt Illinois and Indiana, which placed in the middle tier of corrupt states, seem to bear out the researchers’ conclusions.
In 2013, Illinois spent $932.47 per person more than Indiana, according to the National Association of State Budget Officers. At the same time, Indiana spent more than twice as much from its general fund on education than Illinois.
Illinois lawmakers this year approved a $1.1 billion “mini” capital spending program for road and bridge construction throughout the state. It follows a $31 billion construction spending plan approved in 2009.
Meanwhile, Hoosier legislators have resisted borrowing money to fund state construction programs and this year paid cash for new university buildings and some road projects.
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The city that makes it hard to work
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* Agreed…
Chicago needs entrepreneurs. But too often, the city slows them down or chases them out of town.
The “City that Works” doesn’t work for startups. A simple process is necessary so that startups in Chicago can get off the ground and start working, hiring and paying taxes. One good place to start is to make Chicago a 24-hour city.
This idea arrived in America after Phoenix city councilmen observed the startup licensing process in Hong Kong. A Hong Kong entrepreneur can walk into a government office in the morning and walk out with a business permit in the same day.
So the Phoenix City Council set the goal of getting businesses through permitting in one day. Phoenix privatized the process to speed it up, allowed businesses to “self-certify” and is now allowing online permitting so that businesses can get licensed in less than 24 hours.
Chicago, more than anywhere else in the country, needs this type of regulatory innovation
* Let’s just think about one thing: Awnings. If you want to put up an awning in front of your store, you have to fill out a five-page application, submit it to your alderman for approval, then submit it to the city inspector, and then send it to the city council…
Each application for use of the public way requires approval by the City Council. Once the application is approved by the alderman of the ward in which the proposed public way use id located and submitted to BACP, it is prepared for City Council passage. The application is then referred to the Committee on Transportation and Public Way. Once approved by the Committee, the application is referred back to the City Council for passage by the Council. Where the aldermanic approval signature is not received by BACP within 60 days after applicant submission, and there is no applicant-sponsored ordinance as described in paragraph 3 above, then, provided the application is complete and accurate and the applicant is not in violation of any pertinent provision of the Municipal Code and has submitted the necessary Building Permit application(s) to install the sign, canopy, awning, banner or marquee and has been approved by all related inspecting departments, the application shall upon the 61st day be deemed approved by BACP and processed for submission to the City Council as a Mayoral introduction.
Then you pay a $400 city fee and have to buy insurance - a million dollars worth of liability insurance…
The Certificate of Insurance is evidencing no less than $1,000,000.00, combined single limit, with said insurance covering all liability, both public liability and property damage that may result from the granting of said privilege. Please ensure that the insurance liability is no less than $1,000,000.00.
The city estimates that it can take up to three months to navigate this process.
For an awning.
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Not good enough
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* The Chicago Tribune editorialized on the secrecy surrounding denials of concealed carry permits...
So far, the state has handed out 62,258 permits, denying some 1,620 for not following the rules or failing to meet some requirement. The Tribune’s Kim Geiger and Dahleen Glanton reported that local authorities have opposed some 2,400 applications (more than half of the objections coming from Cook County Sheriff Tom Dart), and 809 individuals have been rejected. Overall, Illinois has not been stingy with licenses.
But some of those who were turned down say they don’t know why — and can’t find out. One is Michael Thomas, of Chicago, a former Air Force reservist who was honorably discharged. “I have never been arrested or convicted for any offense, either misdemeanor or felony, in the state of Illinois or any other state,” he said in a letter to the Illinois State Police. But neither the state police nor the board will tell him why he was refused.
So the National Rifle Association is suing the state on behalf of 194 rejected applicants. It argues that the opaque process denies them due process, because they are not informed of the basis for the decision or given the chance to challenge it.
We don’t often say this, but the NRA has a point. We supported giving the state some discretion in handing out permits to carry loaded guns in public. Local law enforcement officers often know of risks (such as gang associations) posed by particular people who have not been convicted of crimes. Common sense argues for erring on the side of keeping firearms away from anyone who poses a discernible danger.
* As did the SJ-R…
But the law also allows the agency to object to an application even after those requirements have been met. The Concealed Carry Licensing Review Board, made up of people with federal, state and local law enforcement backgrounds, reviews the agency’s objections in private, and the state police says the board doesn’t have to explain its reasons unless ordered to do so by a court.
* So, the coppers have come up with some new rules…
Under the new rules, persons denied a concealed carry license will learn the reason, and be told what law enforcement agency made that determination. They then have to hurry to find evidence that proves they’re not a danger to themselves or others or a threat to public safety — they get ten days to make their case to the board.
It’s not clear, though, if the new rules will satisfy gun rights’ groups demands for due process, or what it will mean for the ongoing litigation.
The new rules are here. They’re inadequate. Giving applicants just ten days to respond and keeping all hearings closed to the public just aren’t good ideas.
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* From a press release…
As Governor Quinn heads into the final fundraising quarter of his campaign for re-election, he’ll do so with more than $12 million on hand. Quinn for Illinois today released their latest fundraising numbers, raising more than $3.7 million in the second quarter alone.
The Governor’s campaign had 1,357 donors in the second quarter, with 68% of them contributing $100 or less. Additional contributions since July 1 when the fundraising quarter ended have brought the total to more than $12 million on hand.
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Medical pot company bulks up
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* A very interesting move…
The U.S. Senate’s former top cop is moving from guarding the U.S. Capitol to protecting pot.
Terry Gainer, who retired from the U.S. Senate in May as one of its longest serving sergeant at arms, has been hired as a security consultant for a Chicago-based start-up seeking to launch medical marijuana growing facilities in Illinois.
Green Thumb Industries, founded by Chicagoan Ben Kovler, is among a number of companies trying to position themselves as possible growers or distributors in the state’s budding medical pot business.
“GTI is wholly committed to ensuring our facilities are safe. Chief Gainer brings almost half a century of experience in law enforcement at the municipal, state and federal levels to our team,” Kovler said in a statement obtained by the Springfield bureau of Lee Enterprises.
* And check this out…
The company also has hired Mike McClain as its lobbyist in Springfield. McClain is a close ally of House Speaker Michael Madigan, D-Chicago.
That would be the same guy we’ve named our annual insider award for.
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Not there yet
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* The governor’s office has sent me this press release three times since yesterday…
Governor Quinn Announces State’s Backlog of Bills Falls to $3.9 Billion
Lowest Point Since Governor Quinn Took Office; Strict Spending Brings Backlog Down from High of $9.9 Billion in 2010
CHICAGO - Governor Quinn today announced that the state’s backlog of bills has fallen from a high of $9.9 billion in 2010 down to $3.9 billion as of June 30, the lowest point since the Governor took office. Five years ago, Illinois was home to the worst pension crisis in America and the state’s backlog of bills was on its way to more than $9 billion. Since taking office, Governor Quinn has made tough decisions, enacted major structural reforms and cut state spending by more than $5.7 billion.
“Making the tough decisions has moved Illinois forward,” Governor Quinn said. “Today Illinois is in a stronger financial position than we were five years ago and we have more work to do to continue moving our finances in the right direction.”
The backlog of bills is now closer to the typical private industry 30-day billing standard – about $2.2 billion in Illinois’ case – and is a direct result of the Governor’s willingness to make the tough decisions including overhauling the Medicaid program, reforming worker’s compensation and unemployment insurance systems and implementing major efficiencies such as closing and consolidating more than 50 state facilities.
I agree that this is good news, but the state is still $1.7 billion away from its 30-day billing goal.
Also this…
But that income tax increase? It’s set to expire in January, halfway through this new fiscal year.
Democrats involved with crafting the budget have said they expect that’ll bump up the bill backlog again.
Illinois’ Comptroller, Republican Judy Baar Topinka, was unavailable for comment. But she recently said Illinois’ finances are “still a mess” and that she supports keeping the tax rate higher, and phasing it out over time.
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Not quite so egregious
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* From the DGA…
You’d think Republican Bruce Rauner would have this one down by now. After all, he already has had to face questions about outrageous neglect, abuse and deaths at nursing homes he owned. But there he was Monday, dodging accountability for actions related to a deadly chain of events at long-term care homes that he owned for people with disabilities.
When presented with the opportunity to be accountable for how he ran this business, he chose to blame his hand-picked managers. And when given the opportunity to be responsive to personal tragedies that occurred in his company, his conclusion was cold and calculating. Rauner said that this was simply a “bad investment.”
Oh, he may have tried to say the right things, claiming that “His heart went out” to the families of residents who were left to drown; children who died after being attacked by other residents; and mentally disabled people who were sexually assaulted by his employees. But once again, he takes no responsibility and he didn’t have anything to do with it, “They” did. The problem is, that “they” were his handpicked management team.
Watch the video from the Chicago Tribune, with complete transcript:
“It’s a failure, it’s tragic, it’s very upsetting and I feel horrible about it, The reality is the management team at that particular company that we invested in failed to serve the residents in a quality way. They failed the residents, they failed the staff, they failed the investors in the company.”
“All I could say is I wish we were perfect, I wish we always picked the right management team that always did the right thing and accomplished the right results…That management team failed. It was a bad investment for us.”
“We’re not perfect. What we are proud of is our track record. We’ve generally backed great management teams, we’ve invested in companies that did the right thing, got great results.”
Here’s the bottom line - when answering questions about a horrific streak of abuses that led to deaths, Rauner worries out loud about the poor investors rather the quality of care for the vulnerable. Rauner’s business model and profit-driven values may allow for this type of financial calculation at the expense of others, but Illinois shouldn’t.
* OK, that wasn’t a “complete transcript.” The DGA conveniently left off the beginning of Rauner’s comments…
“It’s a tragic situation, what’s occurred with some of the residents that were served by that company. My heart goes out to the families impacted.”
* Paul Vallas’ quote was better…
“Mr. Rauner is in the business of creating profit by squeezing companies by cutting expenses so he can sell those companies at a higher cost,” Vallas said. “Now that might be okay if you’re talking about shopping malls or maybe construction companies…but is it okay when you’re talking about nursing homes?”
And…
“This is the latest on a series of revelations about problems that he’s had with businesses and businesses that he’s invested in,” Vallas said of Rauner. “Either you’re a successful man who takes responsibilities or you’re a successful profiteer who ignores responsibilities.”
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Trib uncovers more problems with Quinn program
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* The Tribune takes a look at Healthcare Consortium of Illinois, which is based in Thornton Township, a major Democratic area…
Healthcare Consortium, in documents it sent state auditors, accused three of eight other nonprofits of misspending some of that [$1.2 million in state cash], and state auditors in turn questioned $125,000 that Healthcare Consortium itself spent to administer the program.
None of that counts several questionable expenses found by the Tribune. Those range from payments linked to a Dolton cop who records indicate accepted grant money to mentor kids at the time he was assigned to patrol the town, to a nonprofit’s executives buying scores of self-help management books, including one identifying “perfect phrases” for saying a program was successful.
The details are brutal. Make sure to go read the whole thing.
* The Rauner campaign and the state GOP are highlighting one aspect of the story, however. From a state party press release…
Former NRI Grant Adviser: “It was to drive, to get the vote out”
Bishop Lance Davis, Former Advisory Board Member to NRI Grant Distributor, Tells Chicago Tribune: “I believe, after the timing of it all, that absolutely, that it was to drive, to get the vote out.” (Chicago Tribune, 7/15/14)
Davis: “I don’t know what [NRI] was designed to do, myself. I thought it was to get kids, to change their mindset and their behavior, and to get them off of the street, and to set them onto something other than jail or nefarious activities, but I had no idea it was something that was more, you know — I won’t say sinister — but it’s certainly political.” (Chicago Tribune, 7/15/14)
* Bishop Davis cut a radio ad last year opposing the gay marriage bill and helped lead the opposition…
“We want to make sure that we a send a message to our elected officials that as a collective community and a collaborative, we will not allow you to speak in our churches, you will not be invited to our church when you’re running for office because we as a community are incensed,” said Bishop Lance Davis, senior pastor at a church in Dolton, who’s part of the group.
Quinn signed the gay marriage bill, so he’s obviously not welcome in Davis’ church.
* Davis also has ties to FreedomWorks, a very conservative national organization. From a report filed last month…
Despite the fact that the vast majority of black voters are Democrats and support President Obama, there’s a growing anti-establishment, anti-Democrat and anti-Obama trend that’s percolating in the black community.
Black urban communities, such as Chicago, are plagued with high unemployment, failing public schools, and crime. Since liberal policies have failed to help the black community, some blacks are questioning the political establishment and are seeking fresh alternatives to reverse the downward social and economic spiral.
Recognizing the growing dissatisfaction with politics as usual Empower.org, a FreedomWorks outreach program dedicated to help black Americans achieve their personal potential through education, financial literacy, and developing marketable skills, planned an event in Chicago.
On Father’s Day weekend, FreedomWorks and the community of The New Zion Covenant Church on the South Side of Chicago hosted the first Empower.org town hall for a candid discussion about the problems plaguing the community and new ways to empower the local citizens towards real progress.
At the event, I had the pleasure of moderating the panel of black leaders: FreedomWorks Senior Fellow and former NAACP chapter president, Rev. CL Bryant; Senior Pastor at New Zion Covenant Church, Bishop Lance Davis; Congressional Candidate in IL-02, Dr. Eric Wallace; Director of African American Male Resource Center at Chicago State University, Kwesi Ronald E. Harris, and Professor David Johnson.
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Frerichs to tout new IEA endorsement
Tuesday, Jul 15, 2014 - Posted by Rich Miller
* From a press release…
This week, members of the Illinois Education Association, the state’s largest education employee union with over 130,000 members across Illinois will join Sen. Mike Frerichs (D-Champaign) at four stops throughout Illinois and announce their endorsement of Frerichs for state Treasurer. […]
IEA President Cinda Klickna said, “As state senator, Mike Frerichs has been a strong and consistent proponent for eliminating the significant and unfair disparities in state funding for school districts. We are excited about his candidacy and look forward to working with him as Treasurer.”
* The Ilinois GOP responds…
“Tax Hike Mike” Frerichs is touring the state this week to tout a recent endorsement. But like Gov. Quinn, his failures and broken promises on education don’t stand up to scrutiny.
Three questions for “Tax Hike Mike”:
Frerichs says school funding in Illinois is “horribly unfair” and where you were born determines the quality of education (WGN-AM, 7/13/14). So why did Frerichs (D-Champaign) vote for $35 million in pork spending for a new school in Speaker Mike Madigan’s district, while taxpayers in downstate school districts face property tax hikes to build their schools?
During Frerichs’ tenure in the senate, education funding has been cut, teachers have been laid off, and class sizes have gotten bigger. That’s despite a massive 67 percent income tax hike – supported by Frerichs and signed by Gov. Quinn, and a 23% increase in state revenue over Frerichs’ tenure. Why did Sen. Frerichs prioritize tax hikes over education funding?
Frerichs is the Chairman of the Senate Higher Education Committee and claims to have “worked to reduce the costs and barriers of attending college in Illinois.” But tuition at the University of Illinois has risen 40 percent during Frerichs’ tenure, and Illinois ranks 46th in public higher education affordability. As Chairman of the Higher Education Committee, can Senator Frerichs explain why tuition has increased while state support has decreased?
“Both Frerichs and Gov. Quinn promised to make education a priority, but both broke that promise with funding cuts and a failure to support teachers, students, and families alike,” said Tim Schneider, Chairman of the Illinois Republican Party. “We’ve tried the Quinn/Frerichs plan, and we’ve seen the results for Illinois. It’s time for a new direction.”
* In other news…
Democratic state treasurer candidate Mike Frerichs says he thinks lawmakers should “go back to the drawing board” and start over on changes to public employee pension benefits following a recent Illinois Supreme Court ruling.
Frerichs, a state senator from Champaign, said the court’s 6-1 ruling this month saying state-subsidized health care benefits were guaranteed under the pension protection clause of the Illinois Constitution made it highly likely that justices would find unconstitutional a law approved by lawmakers and signed by Democratic Gov. Pat Quinn in December.
“I think in their opinion on health care, they made it fairly clear what their opinion on the state constitution is and how they’re going to rule on it,” Frerichs said Sunday about the public employee pension law on the “Sunday Spin” radio program on WGN 720-AM.
“We’ll wait and see what the Supreme Court rules, but I think it’s good to have a backup in place and to start working (on a backup plan) because I think it’s pretty clear we’re going to have to do that,” Frerichs said. “I think it’s probably time to go back to the drawing board.”
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