* Tom Cross’ campaign probably should’ve done this in small stages. I don’t think I’ve seen a longer press release this year…
State Senator and Democrat candidate for State Treasurer Mike Frerichs has consistently touted his financial experience, yet a review of his performance as Champaign Auditor calls into question his claims. In fact, based on his past performance, Frerichs’ financial mistakes coupled with his own patronage program ended up costing Champaign County taxpayers millions of dollars.
“Based upon the facts of his poor performance as auditor coupled with the patronage scandals he was engaged in, there truly is only one conclusion: Mike Frerichs is not ready to be Illinois’ next Treasurer,” said State Representative and Assistant House Republican Leader Bill Mitchell.
Frerichs’ Claims On The Campaign Trail
“I’m a certified public finance officer and I think people want someone who has some experience in government finance in this office.” (Mike Frerichs, WMAY Interview, 6/4/14)
“I think the state treasurer is the fiscal watchdog for the state, but the main responsibility of the treasurer is to oversee the state’s investments. As a certified public finance officer and former county auditor, that’s going to be my main priority.” (Mike Frerichs, 5/29/14)
“While Tom Cross is better known than Mike Frerichs on August 1st, we have the resources and game plan to turn that around and show voters there’s a clear choice between a prepared and experienced finance official and a twenty year Springfield insider to be the next state Treasurer. Mike Frerichs has detailed plans to clean up the mess created by the current Republican Treasurer and when voters tune into the race in the fall, we are confident they will choose what Mike has been talking about for over a year now; bringing competency and transparency to the Treasurer’s office while making wise investments to help build our economy from the middle out.” (Capitol Fax, August 1, 2014)
Mike Frerichs’ ERI Program Costs Taxpayers $3 Million
Even with the stock market in a steep decline since September 11, 2001, in 2003 County Auditor Mike Frerichs proposed an Early Retirement Initiative (ERI) that he said would be a ‘good tool to deal with budgetary problems for the county board.’ (The Champaign News-Gazette, 7/3/03)
The County Board, utilizing analysis and data from Mike Frerichs, approved the Frerichs ERI plan, but not without objection. Board Member Scott Tapley warned that with the past market decline and rising pension costs, the Frerichs’ ERI program would only add further pension costs. (The Champaign News-Gazette, 7/25/03)
Within months, Tapley was proven right as Frerichs’ plan failed to achieve savings and in fact created $2.5 million in new unfunded liability for the county catapulting Champaign County’s annual IMRF contribution from $755,769 to over $1,797,000. (Source: IMRF Champaign County Employer Rates)
Frerichs Mistakes Cost Taxpayers Over $3 Million:
To address the funding shortfall created by Frerichs’ ERI program, in 2005 the Champaign County Board approved a bonding issuance to pay off pension obligations for IMRF. The $2.75 million in bonds were issued to pay off the county’s funding shortfall. (source: Champaign County Board Meetings, 12/20/2005)
The bonds to fund the shortfall of Frerichs’ failed ERI program were finally paid off nine years later in January, 2014 with a total cost to taxpayers of over $3 million. (source: Champaign County Records)
“Mike Frerichs used bad math to fuel bad policy that cost Champaign County taxpayers over $3 million,” said former Champaign County Clerk Mark Shelden. “Auditor Frerichs was warned that the market was in decline and that this had the potential to significantly increase costs, but he ignored the facts and the warnings and recklessly proceeded with a plan that ultimately cost taxpayers millions.”
County Board Removes Frerichs As IMRF Officer:
As a result of Frerichs’ reckless policy, he was dismissed by the Champaign County Board as the County’s agent with Illinois Municipal Retirement Fund (IMRF). Frerichs
fought the dismissal, but it was approved by the County Board by a bipartisan vote of 17-5. (source: Champaign County Board Resolution No. 5643)
“Mike Frerichs used poor planning to implement a plan that underfunded pensions while costing Champaign taxpayers millions,” said former Champaign County Board Member Stephanie Holderfield. “As a result of his poor planning and bad management in 2003, Champaign taxpayers were forced to pay for his mistakes until January of this year. Mike Frerichs simply isn’t ready to manage taxpayer money at any level.”
Frerichs Attempts To Blame Market, But Defense Falls Flat:
During his 2004 re-election campaign for Auditor, Frerichs’ campaign attempted to blame the mistakes on market forces, yet the market had already suffered its worst losses before Frerichs introduced his ERI plan. In fact, the Dow Jones Industrial Average dropped over 2,000 points between January 2001 and December 2002. (source: Champaign News Gazette 10/27/2004, www.djaverages.com)
“Throughout this whole event, Mike Frerichs refused to accept responsibility for this failed plan – blaming the error on anything and everyone but himself,” said former Champaign County Clerk Mark Shelden. “But the simple fact is that he was removed from his role because he ignored the warnings, he didn’t understand the process and applied bad math that cost taxpayers $3 million.”
Now, as Mike Frerichs touts his past experience as Auditor as a key point in his campaign, many believe Frerichs’ record deserves a closer look.
“The best predictor of future performance is past performance and it is clear that Mike Frerichs does not have the skillset to effectively safeguard the hard-earned tax dollars of Illinois’ families,” said State Representative Adam Brown.
Rampant Patronage & Alleged Ghost Payroll
Mike Frerichs is at the epicenter of two of the most publicized and costly patronage scandals in recent Champaign County history. Patronage scandals that ended up depriving taxpayers of the honest delivery of services, while costing them over $100,000.
Frerichs’ Campaign Rhetoric:
“I think it’s time we have a Treasurer who knows the office, wants to be Treasurer and will end the political games from the outset. Our elected officials in Springfield need to work for the middle class, not for each other for political benefit.” (source: Mike Frerichs Facebook page, 7/12/14)
“Mixing state business and political activity is unacceptable. Unfortunately, this is a recurring problem for the current Republican Treasurer. From spending taxpayer dollars
on promotional brochures to Republican donors to asking government employees to perform campaign work, it’s time to take politics out of the Treasurer’s office. (source: Mike Frerichs Facebook page, 2/11/2014)
Mike Frerichs’ Focus On Patronage Costs Taxpayers Thousands
At Frerichs’ Urging, His Campaign Chairman Received Taxpayer-Paid Post:
“At one end of the Brookens Administrative Center, Curt Deedrich, a 44-year-old Pesotum farmer and multitownship township assessor, was smiling for the television cameras after narrowly being appointed to a four-year term as Champaign County supervisor of assessments … Deedrich was elected township assessor as a Democrat and he also served as campaign chairman for Michael Frerichs’ two unsuccessful campaigns for state representative in 1998 and 2000.” (“Pesotum Man Gets Top Assessor Post,”The Champaign News-Gazette, 5/7/04)
Frerichs Pushed For Deedrich To Get Patronage Post:
“After a big fight, Deedrich and his political sponsor, current state Sen. Mike Frerichs, for whom Deedrich had worked as a campaign manager, persuaded a majority of the county board to approve Deedrich’s appointment.” (“County Positions Should Be Filled On Merit, Not Loyalty,” The Champaign News-Gazette, 4/6/07)
Frerichs Patronage Program Led To The Bypassing A Better-Qualified Employee:
“The Deedrich appointment three years ago stemmed from the dual desire of county board Democrats both to flex their newfound political muscle by filling county jobs with patronage appointments and to satisfy current state Sen. Mike Frerichs’ desire to find a good job for his former campaign manager. So in a controversial decision, board Democrats passed over a better-qualified employee in the supervisor of assessments office and named Deedrich to what had been a nonpolitical post.” (“Deedrich Follies Are County Board’s Doing,” The Champaign News-Gazette, 6/10/07)
The Results Of Frerichs Patronage Program Called A “Disaster”:
“But he’s been such a disaster that it’s unlikely Deedrich will win reappointment when his term expires next year. That’s assuming he hasn’t been fired by then.” (“County Positions Should Be Filled On Merit, Not Loyalty,” The Champaign News-Gazette, 4/6/07)
Frerichs Patronage Program Also Called A “Fiasco” & “Awful”:
“To call the Deedrich chapter in county government a fiasco from beginning to end minimizes just how truly awful it was. Suffice it to say, he was the wrong person
appointed for the wrong reason to the wrong job.” (“Deedrich Follies Are County Board’s Doing, The Champaign News-Gazette, 6/10/07)
Frerichs Patronage Program Costly For Taxpayers – Scandal Cost $100,000:
“Curt Deedrich’s contentious three-year tenure as Champaign County’s supervisor of assessments ended with a $100,000 settlement.” (“Board Accepts Deedrich Resignation, Approves $100,000 Settlement,” The Champaign News-Gazette, 6/5/07)
Deedrich Resigns Amidst Resolution Calling For Dismissal:
According to the resolution that resulted in Deedrich’s dismissal, the county alleged that Deedrich changed a township assessor’s work on a Mahomet gravel pit and environs in 2006 without informing the assessor. In March 2007, he misrepresented the work to be performed by another official, used e-mail to urge legislators to investigate an Illinois Department of Revenue practice about the exempt status of hospitals, suggested school districts could sue the county on instant assessment and gave instructions to township assessors that may not be in accordance with the law.
“He was accused of harassment last year, but the board voted that he had not committed that offense – while admonishing Deedrich to improve relations with staff. At one point in his tenure, he was locked out of his office, but his attorney, Glenn Stanko of Champaign, had that decision reversed.” (“Board Accepts Deedrich Resignation, Approves $100,000 Settlement,” The Champaign News-Gazette, 6/5/07)
Frerichs Patronage 2.0: Program Didn’t End With Deedrich
Frerichs Pushes Fabri For County Auditor Post:
“[Tony] Fabri had the backing of two former auditors at the meeting, Frerichs and Urbana Mayor Laurel Prussing.”(“Champaign County Democrats Nominate Fabri For Auditor,” The Champaign News-Gazette, 1/4/07)
Fabri Decides He Doesn’t Need To Show Up For Work:
“County government telephone records indicate that Champaign County Auditor Tony Fabri has been missing from his office for well over half the workdays in the last year, including two different periods when he apparently was gone for more than a month.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
But Fabri Does Find Time To Make Political Calls To Senator Frerichs:
“While Fabri said he is careful not to make potentially political phone calls from his desk phone, the records show he made calls from his desk phone to county board member Claudia Gross, state Sen. Mike Frerichs and Urbana Mayor Laurel Prussing, all Democrats.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
And Frerichs Gives Fabri Advice On How To Avoid Ghost-Payroll Criticism:
Fabri Said Frerichs, Who Preceded Him As County Auditor, Warned There Might Be Sniping About His Attendance At Work. “He said that when you start hearing complaints to just walk around Brookens and say ‘Hi’ to everyone and make sure that they see you,’ Fabri recounted.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
Frerichs Admits Fabri Doesn’t Show Up For Work & Doesn’t Do A Good Job, But Urges Voters To Support Him Anyway:
Frerichs, A Longtime Ally Of Fabri’s, Urged Voters To Look Beyond The Charges Of Absenteeism Against Fabri. “I’m not saying that the current auditor shows up every day and does the best job.” (“Voters To Decide Whether To Keep Elected Auditor,” The Champaign News-Gazette, 3/29/11)
Fabri “Steal[ing] A Living,” But Frerichs To Blame:
“As an elected official, Fabri sets his own hours. If he chooses to steal a living from the taxpayers, they can only blame themselves for electing him. Sadly, it’s not just Fabri who is responsible for this outrage. He never would have been in the position to take advantage of the public if he hadn’t had an influential political patron (former auditor and current state Sen. Michael Frerichs) and supportive friends among the Democrats on the county board.” (“Tony’s Excellent Adventure,” The Champaign News-Gazette, 3/18/09)
“As Auditor and a State Senator, Mike Frerichs fueled a patronage driven program that put unqualified people in offices of significant public trust. Mike Frerichs’ patronage program cost taxpayers over $100,000 while clearly putting people in positions they had no business serving in. The simple fact is that at every opportunity Mike Frerichs has used his position to advance patronage at the expense of better-qualified people and honest service to the public,” said Pat Brady, former federal prosecutor. “It’s simply appalling that Mike Frerichs is giving one of his patronage employees tips on how to avoid being criticized as a ghost-payroller. Mike Frerichs represents the politics of the past, the failed politics that has sent Governors to jail and led to our culture of corruption. Mike Frerichs is unprepared, reckless and not ready to lead.”
Whew.
