Edgar gets into the late payment game
Wednesday, Jul 6, 2016 - Posted by Rich Miller
* Sun-Times…
At the same time he’s criticized Gov. Bruce Rauner for failing to pass a state budget, former Gov. Jim Edgar and his business partners are looking to profit from the state of Illinois’ financial crisis, records obtained by the Chicago Sun-Times show.
Edgar is chairman of the board of Illinois Financing Partners, which on Wednesday won the Rauner administration’s OK to advance money to vendors that have been forced to wait months to get paid by the state. The payoff for the Edgar company? It gets to keep the late-payment fees when the state finally pays up. […]
“If the state ever did get their act together, this entity would go out of business,” Edgar says of his company. “Unfortunately, we’re not there.”
Edgar says he got involved with Illinois Financing Partners through Bill Fleischli, who worked for the state Department of Transportation when he was governor and now is executive vice president of the Illinois Petroleum Marketers Association. The majority owner of Illinois Financing Partners — Lindsay Trittipoe of Richmond, Va. — has financed environmental cleanup around defunct underground petroleum storage tanks through another company he heads.
Illinois Financing Partners says it has a $500 million commitment from Bank of America to help purchase vendors’ bills, according to its application to the state Department of Central Management Services filed in April.
* The Illinois Policy Institute, which has long railed against Edgar, has react for its radio network listeners…
Edgar has been critical of Rauner’s efforts to include economic reforms in state budget negotiations. Longtime Edgar friend Jim Nowlan said Edgar’s criticism could have hindered Illinois Financial Partner’s profits.
“It would probably have hurt his own business if Rauner had responded to Edgar’s criticism because there wouldn’t be all this unpaid debt,” Nowlan said.
State Rep. Ron Sandack, R-Downers Grove, said if Edgar had gotten his way and Rauner had caved and agreed to additional taxes without economic reforms, Edgar’s group would have gotten paid more quickly.
“Which I get, and – again – that’s their prerogative but that certainly wasn’t disclosed by Gov. Edgar when he was hitting the media circuits,” Sandack said.“That went undisclosed while he was making his assertions and offering his criticisms of Governor Rauner. I think that’s just more of the same, unfortunate.”
Discuss.
- Formerly Known as Frenchie M - Wednesday, Jul 6, 16 @ 10:23 am:
This is one of those glass-half-empty-or-half-full deals.
You’re either a vulture or a savior.
Guess it depends what side of the 1% you’re on?
- Indochine - Wednesday, Jul 6, 16 @ 10:28 am:
I’m so surprised to see Sandack weigh in here. The most dangerous place in Illinois is becoming between him and a reporter.
- Oswego Willy - Wednesday, Jul 6, 16 @ 10:28 am:
===
State Rep. Ron Sandack, R-Downers Grove, said if Edgar had gotten his way and Rauner had caved and agreed to additional taxes without economic reforms, Edgar’s group would have gotten paid more quickly.
“Which I get, and – again – that’s their prerogative but that certainly wasn’t disclosed by Gov. Edgar when he was hitting the media circuits,” Sandack said.“That went undisclosed while he was making his assertions and offering his criticisms of Governor Rauner. I think that’s just more of the same, unfortunate.”===
Oh, Owl…
It was you wanting no deal since September 2015, feeling frustrated, but advocating pain, and requiring reforms.
As Edgar gets into the game, Sandack was more than a cheerleader encouraging pain and decimation… for an agenda.
Sandack, not the “best” messenger, but… after the Daily Show, Sandack’s lack of self awareness and ownership speaks volumes about Ron Sandack.
I’m sure he slept well this weekend.
- Under Influenced - Wednesday, Jul 6, 16 @ 10:29 am:
Can the turnaround agenda really be labeled “economic reforms” when we still haven’t received a report/numbers of the actual impact to the economy…?
- Lucky Pierre - Wednesday, Jul 6, 16 @ 10:33 am:
OW it was Madigan who wanted no deal. Rauner has made concessions the Speaker has not even agreed to call Senator Cullerton’s pension reform. Taxpayers in Chicago will be expecting pension reforms even more after opening up their property tax bills with 20-40% increases to fund city pensions
- Oswego Willy - Wednesday, Jul 6, 16 @ 10:34 am:
- Lucky Pierre -
Don’t make me drag the Sandack tweet out…
Sandack was frustrated but he was more than ok with a stalemate… for reforms yet to pass.
If you’d like I’ll drag it out…
- LINK - Wednesday, Jul 6, 16 @ 10:37 am:
Edgar and I believe Costello have just a 1% piece of the action. One percent, and I am sure it’s a matter of public record.
I just have to wonder where the Sun Times got the motivation to write about this. Was it their intrepid investigative staff? Was it luck? It was just so curious to me when I read this story yesterday that to me it was reminiscent of the negative stories coming out on his opposition when Rauner ran for office.
Tin Foil Beanie on!
- Curious - Wednesday, Jul 6, 16 @ 10:39 am:
Rauner does not mess around. This is a well-executed oppo placement to discredit Edgar rebukes of BVR. Of course, it helps that he has unlimited money and like 40 groups/organizations who can pass this info along to the Sun Times to keep your finger tips off of it. Dems thinking about running should pay attention.
- Huh? - Wednesday, Jul 6, 16 @ 10:39 am:
Why just call out Edgar? the same specious complaint could be said about any of the vendors, social service agencies, schools, higher ed, municipalities, doctors, hospitals and (endless list inserted here) who have been stiffed by 1.4%
- SAP - Wednesday, Jul 6, 16 @ 10:43 am:
Edgar has been up front on pushing for an expeditious end to the budget stalemate. To Rep. Sandack’s claim that a swift budget resolution would get Edgar paid faster, I’d respond that a slower resolution to the budget would have earned Edgar additional interest. The company wouldn’t have bought out the debt if it couldn’t afford to wait.
- Saluki - Wednesday, Jul 6, 16 @ 10:43 am:
As if this in anyway makes Edgar wrong on the issue. Sandack should represent his district for once, and not just serve as the Governor’s lap dog. I need to send Sandack a Cheerleaders outfit with “Rauner Town High” on the front so he can be properly attired for the role he has taken on.
- John Gregory (ex-IRN) - Wednesday, Jul 6, 16 @ 10:43 am:
Edgar made his boldest statement against Rauner’s role in the impasse in Oct: https://capitolfax.com/2015/10/16/jim-edgar-we-cant-hold-the-budget-hostage-for-other-issues/
About a month later, the bill backlog stood at 5.875 billion: https://www.illinois.gov/gov/budget/Documents/Bill_Backlog_Presentation_11.15.15.pdf
Last I checked, Reuters had the bill backlog at $7.8 billion.
If Rauner had reached a deal, as Edgar was advocating, this company could’ve missed out on fees attached to billions of dollars of overdue bills. I don’t know if you can figure out exactly how much with the typical rise and fall of the backlog at different points of the year.
Edgar’s comments would appear to be acting against, not in favor of, this company’s interests, as Nowlan said.
- Huh? - Wednesday, Jul 6, 16 @ 10:43 am:
Link - the vig is 1% per month on unpaid bills, that is what Edgar et al are banking on when they buy up the unpaid vendor bills.
- Lucky Pierre - Wednesday, Jul 6, 16 @ 10:44 am:
It is not just Rauner advocating stiffing the vendors. Senator Lightford believes the Legislators who have failed to pass the balanced budget for several years should be paid before the vendors
- Longsummer - Wednesday, Jul 6, 16 @ 10:45 am:
LINK- this was a hit piece for sure. Easy to see.
If you talk bad about Rauner, before too long there is going to be something in the paper about you too. That is message being sent here. And his surrogates (surro-goats, really) are more than happy to weigh in on his behalf. Funny how the democrats in GA all hated Quinn and Blago, yet the republicans too scared to buck their “Glorious Leader”.
- Johnny Tractor - Wednesday, Jul 6, 16 @ 10:50 am:
Hey, I’ve got this wild, just-so-crazy-it-might-just-work idea about how to drive Illinois Financing Partners out of business …
- wordslinger - Wednesday, Jul 6, 16 @ 10:58 am:
–State Rep. Ron Sandack, R-Downers Grove, said if Edgar had gotten his way and Rauner had caved and agreed to additional taxes without economic reforms, Edgar’s group would have gotten paid more quickly.–
LOL, if bills were being paid on time, they wouldn’t be in business at all.
- wordslinger - Wednesday, Jul 6, 16 @ 11:00 am:
LP, does the governor give you a nickel every time you write “reform,” those mysterious things that you can’t quantify after 18 months?
If so, you’re a rich man.
- Norseman - Wednesday, Jul 6, 16 @ 11:04 am:
Sandack continues to be a joke.
Edgar’s advice was good and appropriate, which is why he’s being attacked by IPI. His joining a business venture that makes money from Rauner’s failure is amusing.
- Just Me - Wednesday, Jul 6, 16 @ 11:07 am:
I would argue that this is a vital service right now for a lot of folks. Maybe they should be thanked for their efforts instead of vilified.
- Winnin' - Wednesday, Jul 6, 16 @ 11:19 am:
This is a hustle.
It. Should. Be. Illegal.
- Lucky Pierre - Wednesday, Jul 6, 16 @ 11:23 am:
Wordslinger you are one of the few who believe we don’t need any reforms just tax increases.
- A worker - Wednesday, Jul 6, 16 @ 11:57 am:
Vendors, contractors, and others are being stiffed by the lack of revenue. All this shows is that government cannot pay its current obligations with the current level of revenue. When will state government have a real discussion of how much money it costs to operate state government?
- Annonin' - Wednesday, Jul 6, 16 @ 12:03 pm:
We stipulate that SlickHeadSandy is a Einstein like figure, but Edgar makes less if the bills get paid faster — %1 a month every month got it Slick?
- Oldman - Wednesday, Jul 6, 16 @ 12:47 pm:
This is an excellent idea in that the vendors will likely get some relief. heck, I’d participate if I were allowed. Where else are you going to get a guaranteed 12 % ?
- wordslinger - Wednesday, Jul 6, 16 @ 12:51 pm:
–Wordslinger you are one of the few who believe we don’t need any reforms just tax increases.–
LP, you can teach a bird or a chimpanzee to mindlessly repeat the word “reforms” and the rest of your Rauner chants.
Anytime you’d like to take a trip up the evolutionary scale and quantify the ROI on your “reforms,” that would be swell.
The big kids do it every day in the private sector.
And you’ve had plenty of time to finish your homework. If you can’t sell it by now — especially in the context of the grave damage that has been done in pursuit of your agenda — maybe you should just put it away. You ain’t got the goods.
- Lucky Pierre - Wednesday, Jul 6, 16 @ 2:22 pm:
Wordslinger Democrats like Senator Cullerton propose pension reform. Steans and Nekritz and many others think our state needs reforms. Are they chimpanzees too? Why do resist any changes? Are you happy with the way our state is run?
- Delimma - Wednesday, Jul 6, 16 @ 2:47 pm:
@Lucky Pierre - which state would you say is being run best? Kansas? Illinois? Wisconsin? California? It might be time to rethink the idea that reforms that have been proven to not work should be replaced with reforms that do work.
Yes, not all “reforms” are the same. Modest pension reforms that meet constitutional muster are NOT the same as reforms that decimate middle class wage earners and have no demonstrable ROI.
- Joe M - Wednesday, Jul 6, 16 @ 3:55 pm:
I thought Rauner was pushing this loan service:
“The administration has been using a special loan fund to help some prison contractors get through this rough patch. The vendors can sell their debt to a company for most of what they’re owed, which can keep them limping along.”
from:https://capitolfax.com/wp-mobile.php?p=29391&more=1
AND
http://www.chicagobusiness.com/article/20160617/NEWS02/160619842/how-is-rauners-administration-keeping-the-lights-on
- Whatever - Wednesday, Jul 6, 16 @ 3:59 pm:
Lucky Pierre @ 11:23 am ==Wordslinger you are one of the few who believe we don’t need any reforms just tax increases.==
Why? Because Word keeps asking you for specific reform proposals and for some numbers to back up the assertion that they will solve our problems? If so, count me in with Word. In a later post, you bring up pension reforms. What specific reforms? And what is the dollar amount they will save? And the bonus question — what constitutional reform will make even the tiniest dint in the current unfunded pension liability, which is 100% for pensions already earned for services rendered by employees, and 0% related to any pensions to be earned in the future?
- the Cardinal - Wednesday, Jul 6, 16 @ 4:11 pm:
If the supermajority party could have held together there would not have been the need in the first place. Say what you like but that fracture caused a lot of pain for a lot of people. Or maybe that was by design?
One would have thought Edgar was beyond needing to get in a deal like this though ? Since he is not a lawdog he can’t get rain maker money gotta find other ways
- Sad in Chicago - Wednesday, Jul 6, 16 @ 4:21 pm:
This is a non story at best and a hit job at worst. With all the real wrongdoing and incompetence on display at the moment, it’s stunning to see Sun Times give this front page coverage. Here’s hoping it doesn’t dissuade Edgar from continuing to weigh in sensibly on critical issues.
- Oswego Willy - Wednesday, Jul 6, 16 @ 4:31 pm:
===If the supermajority party could have held together there would not have been the need in the first place.===
Willfully ignorant or blissfully unaware.
Madigan, at no point had a functional super-majority. See 60+ failed overrides.
Ugh.
- wordslinger - Wednesday, Jul 6, 16 @ 4:36 pm:
–This is a non story at best and a hit job at worst.–
It’s a good story that shows how things really work and gives Edgar the opportunity to say his piece, hence not a hit job.
Rauner could put them out of business in a minute if sober, responsible government was his objective.
But he’s a “reformer,” even though he and his cult followers can’t explain what that really means in earthling terms.
- Chicago 20 - Wednesday, Jul 6, 16 @ 5:05 pm:
Rauner is creating marketplace disruptions, creating a crisis, then creating new rules or “reforms” which benefit the insiders like Edgar and his associates while punishing everyone else.
Notice how this deal only works when Rauner gives his “approval” or collusion.
There is an appearance of impropriety and a strong suspicion of a quid pro quo.
- walker - Wednesday, Jul 6, 16 @ 6:03 pm:
Sandack has it backwards. The more quickly past due bills are paid, following Edgar’s recommendations, the less money this company makes.
- Blue dog dem - Wednesday, Jul 6, 16 @ 7:46 pm:
Edgar….part of the problem….not part of the solution.
- Arthur Andersen - Wednesday, Jul 6, 16 @ 9:14 pm:
Chicago 20, you’ve been reading too many crime novels.
What, exactly, is the “marketplace disruption” for old State receivables? They have been disrupted since about 2009. As far as the crisis, Rauner didn’t do that on his own.
The first program like Edgar’s was and is highly successful for all involved, including the vendors. That’s why the State is bringing more companies on board. Companies that are reputable and can go establish nine-figure credit lines-this being Illinois, odds are that recognizable names will turn up in the firms. That hardly establishes the appearance of anything.
Sorry you didn’t get a piece of the deal.
- Anonymous - Wednesday, Jul 6, 16 @ 9:24 pm:
Illinois Policy…Gov Rauners Tokyo Rose…. Repeating the same propaganda over & over..trying to throw a scare into everyone….all the while hoping that no one takes a close look at them! Was Edgar perfect …no…but compared to the current version…great might work!
- Chicago 20 - Wednesday, Jul 6, 16 @ 10:12 pm:
-Art
These are State payables, not receivables.
Creating Marketplace Disruption is by Adam Hartung, while it’s not a crime novel it might as well be for those without an ethical compass.