* As we’ve already discussed, the governor can’t make this trip because of his fractured leg. From a press release…
Senior members of the Pritzker Administration will lead a 5-day trade mission to Japan for the annual U.S. Midwest Japan Association Conference, marking the first international trade mission for the administration.
The mission will take place in Tokyo from September 6 to 11 and will bring together leaders in business and government to highlight the strengths of the Illinois economy and opportunities for investment for foreign companies. The Illinois delegation will be led by Anne Caprara, Chief of Staff to Governor Pritzker; Dan Hynes, Deputy Governor for Budget and Economy; and Erin Guthrie, Acting Director of the Department of Commerce and Economic Opportunity, and the full delegation consists of over 30 business and economic development leaders from across the state.
“Our state has enjoyed a strong relationship with Japan for decades, and with this first overseas trip, this administration looks forward to building on those deep ties,” said Governor Pritzker. “With a diverse and growing economy, world-class education system, and our status as one of the world’s most vital transportation hubs, Illinois is a smart investment, and this administration will continue to spread that message far and wide.”
Illinois is the largest exporting state in the Midwest and the fifth largest exporting state in the country. Last year alone, bilateral trade between Illinois and Japan exceeded $12 billion. The state is home to the largest number of Japanese company locations in the Midwest, with over 46,000 Illinoisans currently employed by Japanese companies in Illinois. These companies include Koito Manufacturing, Kotobuki Company, the parent company of Beam Suntory and Hinckley and Schmitt, as well as Astellas Pharmaceutical.
Illinois was a founding member of the U.S. Midwest Japan Association and has operated a trade and investment office in Japan for over 30 years.
“Japan is an important economic partner for Illinois. I’m proud to join Governor Pritzker’s trade delegation to showcase great opportunities to attract foreign investment in our state and expand markets for Illinois companies,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “Manufacturers account for 93 percent of Illinois exports and rely on strong global relationships.”
“Japan is a crucial market for growing product startups,” said Haven Allen, CEO of mHUB. “I’m honored to be a part of this delegation to MWJA and look forward to building relationships to strengthen connectivity and investment between our regions.”
“The relationship between the Midwest Region of the United States and Japan is a critical one,” said Melissa Washington, Vice President of Governmental and External Affairs for ComEd. “Illinois is a great and inclusive place for all businesses across the globe. With ComEd’s highly reliable, and affordable energy infrastructure, we look to continuing to grow trade and business relations both domestic and abroad at this annual conference.”
“It’s an honor to be selected to represent Illinois’ tech community overseas,” said Mark Lawrence, CEO of SpotHero. “The Pritzker administration has been a strong champion for Chicago’s fast-growing technology sector, and I am humbled by the opportunity to share the innovative and important work happening in Chicago and throughout the state on an international stage.”
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Question of the day
Thursday, Sep 5, 2019 - Posted by Rich Miller
* I have a number of errands to run that can’t be done after work or on the weekend, so I’m outta here for a bit. How about your predictions for tonight’s big football game?…
The Green Bay Packers have dominated their rivalry with the Chicago Bears since Aaron Rodgers has led the green-and-gold offense, but Chicago went 12-4 last year, qualified for the playoffs and returns the top-ranked defense. Green Bay has a new head coach and new outlook, and the two NFC hopefuls face off in the 2019 NFL Kickoff Game on Thursday night at 8:20 p.m. ET from Soldier Field. Matt LaFleur takes over as head coach in Green Bay, while Matt Nagy enters his second year in Chicago after a successful rookie campaign. The latest Packers vs. Bears odds show Chicago as a three-point favorite, down from the opening line of -4. The over-under, or total points Vegas thinks will be scored, is 46.5 after opening at 46. In the 17-year history of the NFL Kickoff Game, the home team has won 14 times.
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Fodder for the right
Thursday, Sep 5, 2019 - Posted by Rich Miller
* The mayor’s people retracted her statement, but the damage is being done and this quote is gonna be repeatedly recycled for the next 14 months. Austin Berg at the Illinois Policy Institute…
The new mayor is already in a world of trouble. She’s staring down a large city budget gap she can’t close without action from House Speaker Mike Madigan. She’s in heated negotiations with some of the nation’s most extreme labor unions (the Chicago Teachers Union has already set a date for a strike vote.) And her city continues to lose taxpayers to other states.
In the face of this, Lightfoot spoke the truth about the progressive income tax. Voters across Illinois, Democrats and Republicans, should take note.
“We can’t keep taxing the hell out of all of our people who make substantial incomes,” Lightfoot told the Chicago Sun-Times editorial board.
“That’s not right, it’s not fair and it’s not going to work.”
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* Tribune…
Illinois paid an estimated $4.6 million in state and federal money to health insurance organizations to cover people on Medicaid who were dead, according to a federal audit released this week.
The state paid the money to Medicaid managed care organizations — insurers that administer Medicaid benefits for the state — between Oct. 1, 2015 and Sept. 30, 2017, according to a federal audit released Tuesday. Medicaid is a state and federally funded health insurance program for the poor.
Now, the state has been advised to try to get the money back and repay the federal portion of $3.2 million.
Auditors said the error occurred because the state did not enter the Medicaid beneficiaries’ dates of death into its system used to process payments and track eligibility and enrollment information. The state attributed that error to a technical flaw in the system, according to the audit.
* This is not an Illinois-only problem. From the HHS Office of Inspector General…
The Illinois Department of Healthcare and Family Services (State agency) pays managed care organizations (MCOs) to provide covered health care services in return for a monthly fixed payment for each enrolled beneficiary (capitation payment). Previous Office of Inspector General (OIG) reviews found that State Medicaid agencies had improperly paid capitation payments on behalf of deceased beneficiaries. We conducted a similar review of the State agency, which administers the Medicaid program. […]
The State agency made payments of approximately $11 billion to Medicaid MCOs during our audit period.
Hopefully, the state can get the MCOs to pony up.
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Justice was served in Schock case
Thursday, Sep 5, 2019 - Posted by Rich Miller
* I’ve seen a lot of harrumphing since yesterday about the federal charges being dropped against former US Rep. Aaron Schock. “Didn’t he essentially commit the same crimes as former US Rep. Jesse Jackson, Jr.?” many have asked. Why, then, was J3 sent to prison and Schock allowed to walk free?
The answer boils down to how the two investigations/prosecutions were conducted.
* Jim Dey wrote a pretty good summary back in March of how this case crumbled…
Before it was over, the case was assigned to three different judges, and the original prosecution team of Tim Bass and Patrick Hansen was removed from the case by their superiors in Washington, D.C., for prosecutorial misconduct.
In fact, topsiders in D.C. removed all the federal prosecutors from the Central District from the case and replaced them with a new prosecution team from the Northern District in Chicago.
Although the case against Schock collapsed Wednesday, its impending doom was foreshadowed in September. That’s when Assistant U.S. Attorney Brian Hayes, chief of the criminal division in the Chicago U.S. Attorney’s office, said a new prosecution team under his supervision would “get to know the case and evaluate it” before making decisions on how to proceed.
It was that promised review of the evidence, two different grand-jury investigations and the indictment that failed to pass muster with the second group of prosecutors.
* This was a hardball prosecution from the beginning. From a Schock legal filing…
[The government] Recruited a staffer to be a confidential informant who covertly recorded Mr. Schock, a sitting Member of Congress, in his District Office and elsewhere; covertly recorded staff members represented by counsel; misrepresented himself as represented by the same attorney representing those staff members; attempted at the government’s direction to steal privileged documents; and covertly stole documents and more than 10,000 emails that were the personal property of Mr. Schock as a Member of Congress
All done without a warrant, mind you.
* More from that same filing about the confidential informant and federal tactics…
The government’s apparent obsession with Mr. Schock’s sexuality and whether or not he “dated” Karla Gonzalez was fueled from the very first conversation with the government’s confidential informant: “C/S [Confidential Source] did not know for sure Schock’s relationship status, but heard gossip that ‘something was going on’ with Shea Ledford. . . . C/S believed Schock’s ex-girlfriend Karla Gonzalez was not a ‘real girlfriend,’ and was a ‘beard.’” As with so many other things, the government’s CI was wrong. But that did not stop the government from trying to prove him right for the next two years.
Indeed, the government asked twelve additional witnesses questions on these topics. We have detailed below where the grand jury transcripts or government reports of interviews make clear that these topics were discussed with ten of those witnesses. But troublingly, it appears based on our own investigation that government reports for two other witnesses omit information regarding these types of inquiries.
They got into some really detailed questioning of witnesses on this topic. Click here to read it all.
* And then this happened…
The Schock case is complicated by the embarrassing admission, following emphatic denials, of possible obstruction of justice. The Acting U.S. Attorney finally admitted on 11 occasions, his attorney told the grand jury Schock “had failed to appear” before the grand jury (a defendant is not required to appear before a grand jury).
* The judge was furious…
The federal judge overseeing the criminal case against former Rep. Aaron Schock leveled an unusual public complaint Tuesday that he was misled by a prosecutor on the case.
Judge Colin Bruce, of the U.S. District Court for the Central District of Illinois, also ordered the prosecution to conduct a review of all its court filings in the matter for potential inaccuracies.
* The feds got him removed from the case…
…Bruce ordered the government to review all court filings in the case to determine whether they contained false or misleading claims. Furthermore, Bruce ordered that acting U.S. attorney Patrick Hansen, as opposed to Bass or anyone else, conduct the review.
It was an unusual step for a federal judge, and it didn’t sit well with Bass or others in the U.S. attorney’s office, according to a motion in an unrelated case filed last week by federal prosecutors. Lisa Hopps, a paralegal in the U.S. attorney’s office, saw Bruce’s order as “an unfounded personal attack” against Bass, according to last week’s filing made in response to a request for a new trial made by Sarah Nixon, who was convicted of international kidnapping in 2016 for taking her child to Canada during a custody dispute with the child’s father. Nixon is asking for a new trial based on improper emails exchanged between Bruce, the judge in her case, and employees in the U.S. attorney’s office.
Upset by Bruce’s criticism of Bass, Hopps told Bass about emails that she’d received from the judge nearly a year earlier during Nixon’s trial, when the judge in emails sent to Hopps critiqued the performance of prosecutors and assessed odds for acquittal. Such emails from judges, who are supposed to refrain from commenting on cases outside courtrooms, are considered improper.
* And then DC stepped in and removed the prosecutors…
The increasingly odd corruption case filed against former U.S. Rep. Aaron Schock took another bizarre turn Thursday when local prosecutors were removed from the case by their superiors in Washington, D.C.
A few months later, the feds decided to drop all the charges against Schock in exchange for some reimbursements. It was the right decision.
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* Rep. Dave McSweeney (R-Barrington Hills) just called to say he’s decided not to run for reelection, but he will complete his current term in office.
McSweeney said he wants to focus on a statewide bid in 2022, either for US Senate against Tammy Duckworth or for secretary of state if Jesse White retires.
It’s tough to see success in the current political environment, but a statewide GOP win isn’t totally out of the question if President Trump loses next year and the new Democratic president has a rocky start (think 1994 and 2010).
McSweeney said he’s forming a super PAC, likely a 501(c)(4), that he’ll use to buttress a statewide bid. He plans to start campaigning statewide soon, but he has been speaking at various Lincoln Day dinners over the past year.
McSweeney said he has been encouraging Barrington Hills Village President Martin McLaughlin to run for his House seat, but McLaughlin has so far made no commitments.
* Rep. McSweeney has fought battle after battle with House Republican Leader Jim Durkin over the years. In retaliation, Durkin has pulled McSweeney’s state staff and McSweeney has called him a corrupt, anti-Trump RINO. A McSweeney exit will undoubtedly lower the tension on the Republican side of the aisle.
Durkin’s spokesperson Eleni Demertzis released a brief statement today: “We wish him well.”
…Adding… Rep. Mark Batinick…
David McSweeney was one of my earliest supporters. While there was friction within our caucus over the last few years, I’ve always appreciated his independent streak and willingness to challenge authority. Rep. McSweeney has been fighting for property tax relief, transparency, and reform at every level of government. We need reformers in Springfield.
Rep. McSweeney will no doubt bring his tenacious approach and reform agenda to a statewide run. I wish him the best.
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* Rebecca Anzel…
Catholic protesters rallied at the Illinois Statehouse Wednesday, denouncing lawmakers’ recent expansion of abortion rights and potential votes to further that agenda.
Led by Father Edward Ohm, of the Diocese of Peoria and based in Lincoln, a group of about 30 met to ensure their legislators know they are “not in favor” of laws recently enacted by the General Assembly and Democratic Gov. J.B. Pritzker, including the Reproductive Health Act and a package of tax increases. […]
Meanwhile, high taxes in Illinois, Ohm said, are “wrecking havoc on people’s lives.”
“Churches need people to help them when it comes to keeping the doors open on the weekends,” he said. “…The funds are not as plentiful as they used to be because more people are paying taxes and, on top of that, more people are moving out of state.”
* Brian Mackey…
“We want to follow what God wants us to do in this life, and some of the things that they’re promoting goes against God’s will in our life,” Ohm said after the service.
But some Democrats say more needs to be done on abortion. Their party controls both the Illinois House and Senate, and they hope to repeal the parental notification law when the legislature returns to Springfield this fall.
Among that group is State Rep. Chris Welch, a Democrat from Hillside and co-sponsor of the parnetal-notification repeal legislation.
“Sometimes, some families communicate better than others,” Welch said. “But I don’t think that’s a business for the legislature to get involved in.”
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SIUC chancellor looks on the bright side
Thursday, Sep 5, 2019 - Posted by Rich Miller
* We talked a bit about Southern Illinois University’s enrollment drop yesterday. SIUC Chancellor John Dunn wrote about it as well. Here’s an excerpt…
Our official fall 2019 enrollment is 11,695, down 8.75 percent. You may be wondering why a decline might be considered positive, but there are a lot of details underneath the overall total that signal a change in direction.
Let’s start with retention. Our freshman to sophomore retention rate, reflecting the percentage of last year’s first-time freshmen who returned this fall, is 75 percent. Consider that it was 71 percent last year and 67 percent the year before. This is news to celebrate, as retention is as critical to our enrollment as recruitment.
Looking at the freshman class, our average ACT score has risen to 24.30, up from last year’s more than 20-year record of 23.65. We are continuing to attract strong students who will find success at SIU. At the same time, we continue to weigh every applicant’s potential carefully as we know that grades and test scores don’t tell the full story.
The number of transfer students was relatively flat at 1,268, increasing by 7 students – or less than 1 percent. This is the result of outstanding efforts to connect with our community college partners and identify pathways for our transfer students.
And while the number of first-time students has declined fewer than 100 students to 1,037, or 8.47 percent, this follows decreases of 24 and 20 percent the previous two years. New programs in nursing, business analytics and other areas will help close this gap in the future. We are heading in the right direction.
Graduate enrollment is also relatively flat at 2,683, down 26 students or just under 1 percent. Last year it was down 8.29 percent.
International enrollment is down 13.9 percent, which is not unexpected given policy changes both in the United States and abroad. While some of this is out of our control, we are working diligently on international recruitment.
While helping out at the SIU tent at the Illinois State Fair in Springfield, I had the opportunity to talk with a visitor: Illinois Governor JB Pritzker. He offered some wisdom on the challenges of turning around the state, noting that it’s a lot faster to go downhill than it is to climb back up.
This is true for SIU Carbondale, as well. I note that we had predicted this enrollment decline not only because we had a large graduating class last spring followed by the smaller classes that are still in the pipeline, but also because it will take time to change strategies and perceptions, some of which are tied to the state budget impasse.
Every one of us has a part to play, whether you are in the classroom, maintaining our facilities and beautiful campus, supporting students as they make decisions about classes or campus life, or helping tell our positive story within the larger community. Every single interaction you have with a current or prospective student has the potential to make a difference. Remember my motto: “It’s personal.”
If nothing else, it’s a refreshing attitude.
(Hat tip: Ted Cox)
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State budget gives court system some relief
Thursday, Sep 5, 2019 - Posted by Rich Miller
* Rebecca Anzel…
Illinois’ judicial branch will use its first budget increase in six years in part to alleviate costs paid by local governments, court officials said.
This is the first time in almost 30 years the state’s courts were allocated the financial resources by the General Assembly to fully reimburse counties for salaries and probation services, an official said.
* The story is based on a recent column by Illinois Supreme Court Chief Justice Lloyd Karmeier…
Year in and year out, conflict between the executive branch and the General Assembly exacerbated the state’s financial woes and sent the courts scrambling to find new strategies for meeting their obligations under the law. At one point, the state went nearly 800 days without a full budget. For five straight years, the Supreme Court’s appropriation level remained flat as the expenses we were required to meet continued to mount. We were rapidly approaching the breaking point, especially with respect to reimbursement for probation services.
Fortunately, there has been a dramatic change. This year – for the first time – I was able to report to my colleagues at the Conference of Chief Justices that Illinois could not only boast of a functional court, but also of a government that was finally able to provide the judicial branch with a timely and workable budget. For Fiscal Year 2020, our appropriation from the General Revenue Fund was increased to $405,321,200, a figure that is $60.5 million higher than each of the previous five years.
While substantial, this long overdue increase is hardly a windfall. Rather than fund new initiatives, it will be used primarily to catch up on existing financial responsibilities that have continued to rise even as our budget remained stagnant. Most significant will be the change in our level of probation reimbursement, which had fallen far below statutory requirements.
* Back to Anzel’s piece
Statute mandates the Supreme Court reimburse counties for probation costs. Instead of being locked in a jail cell, a person on probation is allowed to “contribute to their communities,” keep a job and maintain contact with their family, Kara McCaffrey, assistant director of Administrative Services, said. It is a period of supervision different from parole, which is overseen and paid for by the Department of Corrections.
“Because of shortening the judicial branch of their requested amounts, those shortages were passed on through probation back to the communities simply because the court has very limited options in their budget,” Rich Adkins, assistant director of Probation Services, said.
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* Press release…
The Illinois Policy Institute promoted its executive vice president, Matt Paprocki, to president of the nonprofit research organization. John Tillman will remain chairman and CEO of the Institute.
Paprocki will also serve as chairman of the recently formed Illinois Policy PAC. IPPAC gives taxpayers a platform with lawmakers and decision-makers in Springfield, and provides them the same kind of legislative access unions, corporations and other special interests have enjoyed for decades. As a nonpartisan, independent committee, the PAC supports Democrats and Republicans willing to fight for Illinois taxpayers. PAC activity can be viewed at illinoissunshine.org.
Statement from Matt Paprocki:
“The Illinois Policy Institute is the only research organization that helps taxpayers understand how public policy affects their lives and gives them a voice in Springfield. We are a team of economists, policy experts, communicators and leaders. I am proud and honored to work with an amazing team.
“We are thankful to have thousands of donors and hundreds of thousands of Illinois citizens who support our work because they believe in our mission. Our team provides taxpayers with a voice that can compete with the special interests that have long dominated in Springfield.
“I was a staffer in the legislature for seven years before joining the Illinois Policy Institute, and I always admired the Institute’s ability to fight for what’s right – not what’s easy. I will steward what John and the team have built, and will honor the Illinois Policy Institute’s founding vision: To fight for policies that empower people, not government. To do that, we need to build bridges. Our democracy works best when we work together and that will be a principle that drives me forward in all our work in Springfield and around the state.”
Statement from John Tillman:
“This evolution in our leadership structure properly reflects the great work Matt has done to lead our team on the daily fight to advance fiscal responsibility, criminal justice reform and, more broadly, a reform agenda that will put Illinois back on the track to prosperity for all of its citizens. Further, Matt’s role with the Illinois Policy PAC will help the team better advance our agenda with leaders on both sides of the aisle who share our common interest in reforms that put the people of Illinois first instead of special interests.”
I respect Matt and wish him well. He was behind the group’s push to find bipartisan sponsors for their bills this past spring, which was encouraging to see. And it’s also worth noting that Tillman went out of his way to say that the Institute was not formally part of his lawsuit to invalidate billions of dollars in state bonds.
We’ll see how this new PAC does. Its top contributor so far is the Government Accountability Alliance, which appears to be Tillman’s umbrella group for his various organizations.
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* July…
Cubs co-owner Todd Ricketts’ designer Wilmette home is worth more than twice as much as previously thought — and that could more than double his property tax bill next year and trigger a tab of at least $60,000 in back taxes and interest.
That bottom line emerged Tuesday as the Cook County assessor’s office completed its reassessment of Ricketts’ property following a Tribune story that revealed the Republican National Committee finance chairman had been paying taxes as if the older, smaller house he’d torn down more than a decade ago was still there.
* Today…
The Cook County Board of Review has referred to the state’s attorney its investigation of Cubs co-owner Todd Ricketts’ property tax appeal on his designer Wilmette home after concluding that Ricketts and his real estate lawyer made “misrepresentations” that lowered tax bills by tens of thousands of dollars.
The tax appeals panel concluded that it “does not have sufficient evidence to establish” that either Ricketts or attorney James FortCamp “knowingly misled” officials. But the board also noted it does not have the authority to compel those involved to testify under oath. […]
Ricketts’ attorney, former federal prosecutor Patrick Collins, wrote a four-page letter to the tax board that described the appeal as “a series of good faith miscommunications.”
“While Mr. Ricketts takes responsibility for the errors, there was no intent to deceive anyone,” the letter read.
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Tribune asks “Where’s the urgency?”
Thursday, Sep 5, 2019 - Posted by Rich Miller
* Tribune editorial on Mayor Lori Lightfoot and pensions…
We’re grateful to hear an elected official confront the details of the pension crisis and commit to solving it, regardless of the potential political cost. So far the responses from Springfield have been empty. A lot of: We look forward to hearing what the mayor has to say. …
Where’s the urgency?
True, Lightfoot is thin on details. She told Crain’s Chicago Business that handing out generous cost of living allowances to government retirees is “unsustainable,” and she wants to see “structural changes” to the pension system. But what exactly does she want from the state? How does she propose balancing the 2020 city budget? How much will she raise taxes if Springfield does help her — or, by contrast, refuses to help her — with pension relief, taxing authority and the possibility of a Chicago casino? To be determined.
What we know for certain: Chicago has a pension disaster. Springfield has one, too. Future stability and prosperity are on the line. Lightfoot doesn’t have a plan yet, but says she’s determined to act.
That puts her one step ahead of Springfield.
Thoughts?
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