* Tribune, 2015…
Testifying under a grant of immunity, [Vince Dublino] said he would visit each bar every week or so to count up the money and split the proceeds with the bar owners after paying off the winners under the table. He told the jury he then underreported the income on the machines on his taxes and on the tax forms he filled out for the taverns he serviced. On top of that, he told jurors he was still operating the so-called gray games at the time of his testimony, when video gambling in Illinois was still illegal.
Dublino testified that in summer 2002, an irate Sarno accosted him outside a Berwyn bar after learning the witness planned to install illegal video gambling machines in a Lyons diner that was on the mobster’s turf. […]
Dublino’s admissions of illegal gambling and tax fraud weren’t sufficient to bar him from receiving a handler’s license from the Gaming Board in 2013. The following year, the board granted him his first establishment license at his bar in Berwyn, Nonna D’s, which allows him to pocket 35 percent of the profits from each of the five machines he installed. This year, the board granted establishment licenses allowing him to install five machines each in Vinny’s Cafe and another bar he owns.
“The board’s investigation revealed no evidence that Dublino is a member of organized crime but did indicate that he cooperated with law enforcement by testifying against organized crime at the trial of Mike Sarno,” Gaming Board spokesman Paul Prezioso said in an email response to Tribune questions about Dublino’s licenses. “Mr. Dublino’s known record does not disqualify him from licensure.”
* Today…
Illinois State Police (ISP) and Illinois Gaming Board (IGB) officials announce the arrest of Vincenzo Dublino, a forty-five (45) year old man of Oak Brook, Illinois (DuPage County), who was arrested and charged with two counts of Felony Theft and one count of Forgery.
In 2017, Illinois Gaming Board Agents received information alleging Dublino was knowingly taking United States Currency from Accel Entertainment Gaming, LLC (Accel), an Illinois licensed video gaming terminal operator, by submitting fraudulent documentation for reimbursement. After receiving this information, a thorough investigation ensued. As a result of the investigation, on Tuesday, October 29, 2019, Illinois Gaming Board Agents arrested Dublino at his residence without incident. Dublino was arrested and charged with two counts of Felony Theft and one count of Forgery. Dublino was lodged at the DuPage County Jail on a $50,000 bond.
Dublino is a licensed video gaming terminal handler for Accel, and he is also an Accel sales agent. The Gaming Board voted on December 12, 2018, to order Accel to disassociate from Dublino and to issue a disciplinary complaint to revoke Dublino’s terminal handler license. These matters are currently pending.
“The IGB takes all allegations of wrongdoing by its licensees seriously,” said Illinois Gaming Board Administrator Marcus D. Fruchter. “The IGB works closely with all of its federal, state and local law enforcement partners to maintain the integrity and safety of gaming in Illinois.”
“These matters are currently pending” almost a year later? What?
* And here he is…
Hat tip: Hannah Meisel.
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Gov. Pritzker claps back at President Trump
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* AP…
Visiting Chicago for the first time as president, Donald Trump disparaged the city Monday as a haven for criminals that is “embarrassing to us as a nation.”
* From the president’s speech…
It’s embarrassing to us as a nation. All over the world, they’re talking about Chicago. Afghanistan is a safe place by comparison. (Laughter.) It’s true. […]
Last year alone, here in Illinois, local officials blocked ICE detainers for illegal aliens responsible for hundreds of offensive — including homicide, trafficking deadly drugs, trafficking humans, robbery, and sexual assault.
* Politifact…
[US Sen. Richard Durbin] said that in Illinois, less than 20% of immigrants who are deported “have been charged with any serious crime.”
Limited federal backs that up, but it comes with a few caveats — most notably the fact that the available count includes all individuals who departed from Illinois at the time of their deportation. That means they may have resided and been arrested in a state other than Illinois before leaving the country.
We rate Durbin’s claim Mostly True.
* Gov. JB Pritzker Twitter thread…
If President @realDonaldTrump wants to know what’s ‘embarrassing to us as a nation,’ he should look in the mirror.
Offering no solutions to the real challenges facing cities across America – from poverty to gun violence – the President used his visit to Chicago to spew hateful rhetoric that has no place in that great city or our great state.
Comparing any Illinois city to war-torn Afghanistan is insulting & wrong. Chicago is the crown jewel of Illinois: the transportation & logistics hub of the nation, home to world-class universities & a thriving economy and a shining example of the values that make America special.
While we shouldn’t be surprised at the character deficit of someone who lied and cheated his way to the top, the American people should demand more from the man who holds the highest office in the land.
Having a President who visits a great American city only to slander our residents, our communities and our police officers is embarrassing to us as a nation.
Having a President who demeans immigrant families in a country built by immigrants is embarrassing to us as a nation.
Having a President who so thoroughly disregards the rule of law – putting foreign dictators over the American people and using the federal government to enrich himself – is embarrassing to us as a nation.
The President has committed impeachable acts, and @realDonaldTrump must be held accountable. No one is above the law.
Take a deep breath before commenting, please.
…Adding… Another view…
Illinois state Rep. Chris Miller (R-Oakland) argues that a new poll revealing that Gov. J.B. Pritzker’s disapproval numbers have climbed to above 40 percent does not accurately represent the sentiment in the 110th District.
“I would say those numbers would be shockingly low among the people in my district,” Miller told the East Central Reporter. “It’s closer to 90 percent where I live, and it’s because he’s been part of passing legislation that is the most egregious ever. It’s killing babies, putting small business owners out of business and tyrannizing taxpayers and hardworking people everywhere.” […]
“All those things would be drivers of why people are starting to feel the way they do about him,” Miller said. “I think it’s going to get worse as he’s voted to get more kids hooked on dope with this recreational marijuana law and all the taxes. It’s just a downward spiral as we move toward a more addictive society.”
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CPS strike updates
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* Yesterday…
At a time when union leaders claim another $38 million could end the teachers strike, Mayor Lori Lightfoot’s 2020 budget requires the Chicago Public Schools to reimburse the city for $60 million in pension contributions previously covered by City Hall. […]
[The mayor’s budget overview] states: “In 2020, an additional $60 million is expected from Chicago Public Schools to cover a portion of its share of the city’s annual contribution to the Municipal Employees’ Annuity and Benefit Fund.”
For years, City Hall has covered the school system’s annual contribution to the largest of four city employee pension funds. […]
And, according to a Chicago Teachers Union official, Lightfoot also wants CPS to repay the city for $33 million in security costs, although the city says that’s not a new demand this year.
* This morning…
Chicago Public Schools and the Chicago Teachers Union met at the bargaining table for nearly 16 hours Monday with talks ending around 2:00 a.m. with no resolution.
* Late this morning…
At a City Hall press conference, Mayor Lori Lightfoot said the union’s bargaining team “continues to move the goalposts and bring in more issues that do not belong in any collective bargaining contract” by introducing issues that don’t belong in a contract and demanding a reduction in class time for students.
The union wants her to support a bill for an elected school board in Springfield that she opposed and changes to the state law that restricts what issues CTU can strike over, Lightfoot said.
As a mayoral candidate, Lightfoot promised to support an elected school board but she has opposed a bill supported by the union that would create a board that’s too large.“
Are we really keeping our kids out of class unless I agree to support the CTU’s full political agenda wholesale?” Lightfoot said. “If the CTU wants a deal, there’s a deal to be had, right now, on the table.”
* Early this afternoon…
The Chicago Teachers Union has called in its House of Delegates for a key meeting Tuesday evening to discuss the state of negotiations with Chicago Public Schools.
The meeting will bring the union’s 800-plus school-level delegates up to date on the latest talks and could set the stage for either a vote on the school district’s current offer or another meeting in the next day or two for the governing body to end the now nine-day strike.
The delegates are set to meet at 6 p.m. at the CTU’s Near West Side headquarters.
* A few minutes ago…
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* As we discussed yesterday, Gov. JB Pritzker said he supported legislation allowing Illinois college athletes to be compensated for their likenesses.
AP…
The NCAA Board of Governors has taken the first step toward allowing athletes to cash in on their fame. The board voted unanimously on Tuesday to clear the way for the amateur athletes to “benefit from the use of their name, image and likeness.”
The vote came during a meeting at Emory University in Atlanta.
In a news release, board chair Michael V. Drake said the board realized that it “must embrace change to provide the best possible experience for college athletes.”
…Adding… Earlier today…
Nevermind.
…Adding… No hard plan as of yet…
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* Senate President John Cullerton was asked today about the Chicago casino negotiations and specifically about joint state/city ownership…
It’s not about the ownership, that’s not an issue any more. We’re talking about the rates. The tax rates that passed were apparently too high that Chicago may not even get a casino. If that happens, the state loses money.
I think we’re pretty close to a compromise on changing those rates that would result in us being able to pass a bill.
Subscribers know some details of what’s under discussion.
* He was also asked about SB1966, a bill to require fingerprinting of FOID card recipients (among other things) which passed the House in the spring and then stalled in the Senate…
We had a very positive meeting on that today with a number of members that are affected. That bill will be in a position to require 36 votes, which I don’t believe we have today.
* Related…
* Country Club Hills, Crestwood drop casino bids; field down to four in south suburbs as state deadline passes
* Road map to riches — or ruin?
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* Press release…
House Speaker Michael J. Madigan released the following statement Tuesday:
“Today, I filed the necessary paperwork initiating the official process of removing Representative Luis Arroyo from office. At my request, Representatives Fred Crespo, Justin Slaughter and Barbara Hernandez will serve on an investigative committee as required under House rules. They will plan on meeting for the first time this Friday, Nov. 1, with a second meeting on Friday, Nov. 8.”
…Adding… From the House Republicans…
We will have our three announced later this afternoon
*** UPDATE *** Appointed…
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* In the wake of Rep. Luis Arroyo’s arrest, Senate President John Cullerton told reporters today that he wants to work with the House on rules and statutory changes. He said the two chambers worked together after Rod Blagojevich was impeached to put together an ethics package…
We are definitely going to deal with responses to the other incidences of ethics violations that have been alleged by working with the House and working with ethics changes.
I went back and looked at what we did when Blagojevich was impeached. We had a joint committee with the House and the Senate. So I’m going to talk to the speaker about urging us to do that again, have hearings to find responsible changes to our rules and our statutes to address it.
There are clearly some issues we’re dealing with, that were not addressed ten years ago with regard to lobbying, which is something we should look at for sure.
* A reporter pointed out to Cullerton today that the House will likely soon begin an investigative process into Rep. Arroyo. So what will he do about Sen. Tom Cullerton, who’s been indicted?…
That’s what we’re gonna talk about with regard to the House. It doesn’t do any good just to have one chamber dealing something. I think it’s important that we look and see if we have to have any statutes changed. So, we’re gonna talk to them and I’m gonna talk to the speaker today.
* Cullerton was then asked what it would take to possibly expel Tom Cullerton…
There’s a whole bunch of different issues with regard to that. There’s issues dealing with whether or not the activity alleged directly relates to the legislature, like taking a bribe to pass a bill, something like that. As opposed to something that’s not related. That’s an issue.
There’s issues dealing with due process for the people that are charged with a crime, allowing them to defend themselves while they’re also defending themselves in a different forum. It’s very complicated. So I think the best thing to do is set up a joint committee with the House and have testimony on the various ways in which we can change the rules to address them.
He said later than Sen. Tom Cullerton’s indicment doesn’t appear to involve the legislature and noted that Sen. Sandoval hasn’t yet been charged with anything.
* Cullerton also said he’s talked with Sen. Terry Link in the past 24 hours about a gaming bill for the city of Chicago. Cullerton said that Link is still his point person on gaming and since Link denies that he is the cooperating witness, “I don’t know what else you can say about that.”
Cullerton said he hadn’t talked to Link about the Arroyo case. He was asked how he deals with a caucus which includes someone who may be wearing a wire…
I just learned about it yesterday, I haven’t had a chance, we didn’t even talk about it in our own caucus yesterday. So I don’t know what people want to do. That’s why I want to see what the members want to do in response to it. That’s all I can say. We don’t even know who it is, you see.
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* Background is here if you need it. This recording is courtesy of Hannah Meseil at the Daily Line. She was talking to Senate President John Cullerton and then Sen. Terry Link (D-Waukegan) was approached by reporters and Hannah quickly shifted to that conversation…
Link: I said what’s their source? You answer me. You’re a reporter. I answered the question yesterday. I’m not going to continually answer this every day of my life. I’m down here to do a job that I was elected to do and that’s what I’m gonna do.
Reporter: But how are you going to do that job if everyone suspects…
Link: Real easy! Real easy. Because you’re the only ones that are bothering me. The public’s not bothering me. I’m getting emails from all of my constituents very happy with me. ‘Stick in there.’ ‘Fight.’ And so they’re not mad at me. I don’t represent you, I represent them.
Reporter: So you’re saying you are not, you did not wear a wire.
Link: Why don’t you ask them where they got their source? [Cross talk] Hey, you know I’ve been around a long time. I know how people like to twist my words. I’m not gonna twist, I’m not gonna twist my words.
Some video is here.
More on the rest of this audio later.
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Durkin’s EtO bill goes down in House committee
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* Jerry Nowicki at Capitol News Illinois…
The House Energy and Environment Committee diverged Monday on a pair of highly-publicized bills aiming to better regulate ethylene oxide gas emissions in the state, passing one while letting another remain in committee.
The opposing votes represented a largely partisan split in a months-long effort from lawmakers to impose stricter regulations on, and create greater local authority to regulate, a known cancer-causing gas used in medical supply sterilization and manufacturing processes.
House Bill 3885, sponsored by House Minority Leader Jim Durkin, a Western Springs Republican, failed to pass with 11 voting in favor and 17, all Democrats, voting present. That bill would have given home rule municipalities the authority to ban ethylene oxide emissions from sterilization facilities within their communities.
Democrats voted present on the bill after Durkin would not commit to any Republican support for House Bill 3888, a stronger ethylene oxide regulatory bill sponsored by Waukegan Democratic Rep. Rita Mayfield, which was to be heard later in the committee hearing.
* Leader Durkin’s response…
The actions taken today by the House Democrats to block my legislation that would allow local municipalities to ban the use of ethylene oxide just proves they put partisan politics ahead of the health and safety of Illinois residents, including their own constituents.
The trouble some have with the Durkin bill is that some believe that Waukegan will not act on its own to shut down the EtO-using company Medline because it employs so many people there. Local activists want the plant gone.
* Hannah Meisel at the Daily Line…
Durkin filed a bill to allow [home rule] municipalities to ban the use of ethylene oxide in their towns. But State Rep. Rita Mayfield (D-Waukegan), facing a primary challenge over ethylene oxide issues, filed a bill that would completely phase out the use of ethylene oxide in the state. Business interests, which had mostly stayed out of the fight in the spring, have now jumped on board to oppose that bill.
Durkin’s bill, HB 3885, failed in committee Monday, with Democrats voting no. The lone “present” vote was from State Rep. Mary Edly-Allen (D-Libertyville), who was still listed as a sponsor on the bill. State Rep. Joyce Mason (D-Gurnee) withdrew her sponsorship of Durkin’s bill prior to Monday’s committee.
Edly-Allen told The Daily Line after the vote that she still wanted Durkin’s bill to be heard, but said Durkin’s “bill didn’t have as much teeth as Rita’s.”
“And it really just comes down to keeping people safe,” she said. “Hers is much more aggressive. I think that’s what the people want.” […]
During the committee roll call, both State Rep. Will Davis (D-Homewood) and State Rep. Robyn Gabel (D-Evanston) said they were voting yes “to get the bill out of committee.” Gabel added that she thought there “may be a compromise here.”
Mayfield’s Democratic primary opponent is an organizer against local EtO use.
* Related…
* Health Department: ‘Extended air monitoring’ for ethylene oxide underway outside Gurnee and Waukegan plants
* ‘I’ve never gotten sick’: Employees from Medline stage protest in Waukegan against ethylene oxide regulations
* Medline Quality Division president: Illinois shouldn’t ban ethylene oxide, which ensures the state’s supply of sterile medical products
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Question of the day
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* Greg Bishop at Center Square…
Illinois Gov. J.B. Pritzker wouldn’t say Monday if Michael Madigan should step down as House Speaker, or even as chairman of the state’s Democratic Party, despite Madigan being named in a sweeping federal corruption probe. […]
Earlier this month, Chicago public radio WBEZ reported Madigan’s name was included in a subpoena sent to the City Club of Chicago. Federal agents also raided the offices of several people associated with Madigan, including a former campaign worker and a former ComEd lobbyist. The FBI also recorded a conversation between Madigan, then-Chicago Ald. Danny Solis, and a businessman and a developer. Madigan was pitching his private law firm’s tax appeal services to the businessman, according to media reports. Madigan has not been charged with a crime.
Asked if Madigan should step down from his leadership positions, Pritzker said he wouldn’t tolerate corruption or deception.
“The kinds of things that we’ve seen that apparently have been now called out and even raids have taken place,” the governor said.
Pritzker said his position on Madigan was different than Sandoval. After the Sandoval raid, Pritzker asked the senator to step down from his committee leadership position.
“[The federal investigators] seem to be directly about transportation,” Pritzker said. “[Sandoval] was chairman of the Transportation Committee. I didn’t ask him to step down from his position as senator, but he should have and did step down as chairman of the transportation committee while we find out the rest of the story.”
Also this summer, prosecutors filed charges against State Sen. Tom Cullerton, D-Villa Park, for allegedly embezzling money from the Teamsters union. Cullerton has pleaded not guilty.
Pritzker also talked about how Cullerton was transferred from heading the Labor Committee to the Veterans Affairs Committee after the indictment. That move allowed Cullerton to keep an extra stipend.
“I’ve been very clear that when there is direct action taken, very specifically, then that is the time in which I’ve been willing to come forward and will always be to call out the kind of corruption that we’re hearing about,” the governor said.
* The Question: What should Gov. Pritzker say about Speaker Madigan?
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* Steve Daniels at Crain’s…
As the Illinois Clean Jobs Coalition prepares to bus hundreds of activists to Springfield for a lobbying day [today], it confirmed that coalition members voted a week ago no longer to negotiate with any utilities on their bill to promote more energy sources in Illinois that don’t emit heat-trapping carbon.
The decision was made following news of federal subpoenas of Exelon and its Chicago utility Commonwealth Edison, tied to a grand-jury probe of corruption in the state capital and elsewhere.
“The utilities oppose the Clean Energy Jobs Act. Period. They have made that clear to us, and have made that clear to lawmakers,” a spokeswoman for the coalition said in an email. “We were asked by legislators to work with all stakeholders to find areas of agreement, and we have been diligently doing that, including with the utilities, among others. However, the steady revelation of news is troubling. While we continue to meet and talk with other stakeholders, last Monday, our coalition voted to suspend talks with the utilities indefinitely.” […]
To say that Exelon opposes the Clean Energy Jobs Act may be true technically. But Exelon executives have spoken out repeatedly in favor of the centerpiece of the legislation, which is a state takeover from a federally chartered regional organization of the responsibility of determining the mix of power plants paid each month by ratepayers to promise to deliver when demand is highest and resources are most needed.
Go read the rest of Steve’s report for why Exelon favors a big aspect of that bill.
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Unclear on the concept
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* Illinois Policy Institute…
Gov. J.B. Pritzker claims only 3% of Illinois taxpayers will see their tax bills go up under his progressive income tax ballot measure.
But that picture changes significantly at the community level.
In Wilmette, for example, nearly a quarter of all taxpayers, 22%, will see higher income taxes if voters approve Pritzker’s progressive income tax amendment at the ballot box in November 2020. Springfield would take an additional $75 million from those taxpayers, in total.
A staggering 39% of joint filers in Wilmette would be hit with a tax increase, according to IRS data:
1,446 fall into the $250,001 to $500,000 tax bracket
729 fall into the $500,001 to $1 million bracket
426 fall into the more than $1 million bracket
Additionally, 165 Wilmette single filers would experience a tax increase:
76 fall into the $250,001 to $350,000 tax bracket
76 fall into the $350,001 to $750,000 bracket
43 fall into the $750,001 or more bracket
Several Ricketts family members reside in Wilmette. So, yeah, that’s the whole idea of this thing.
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* Dan Mihalopoulos at WBEZ last year…
For years, Chicago Mayor Rahm Emanuel has been staunchly opposed to allowing video gambling machines at bars and restaurants in the city, hoping instead to land approval for one big downtown casino.
But unregulated devices that look and work almost exactly like video poker machines are popping up in places all over Chicago.
Thanks to these machines — often referred to as “sweepstakes” — the city has become studded with what effectively are mini-casinos in gas stations, convenience stores, and even a laundromat.
Unlike the video poker machines that the state has regulated and taxed since 2012, the other machines don’t pay state or local government. And the state does not conduct background checks of sweepstakes machine operators or the businesses that install them, as is required for video poker licenses.
* Tribune…
According to the charges unveiled Monday, CW-1 told the FBI that [Rep. Luis Arroyo, D-Chicago] had approached him about “the passage of sweepstakes-related legislation” during the House’s spring session.
Arroyo is a manager of a lobbying firm called Spartacus 3 LLC, which includes as a client the owner of a company involved in video gambling sweepstakes machines, according to the complaint.
Sweepstakes machines, sometimes called “gray machines,” allow customers to put in money, receive a coupon to redeem for merchandise online and then play electronic games like slot machines. Critics contend the largely unregulated devices, which operate in cities like Chicago that have banned video gambling, are designed to skirt the law.
In that Mihalopoulos story from last year, House Republican Leader Jim Durkin, who sponsored a bill to outlaw the machines, said he played a sweepstakes machine and was paid a cash prize, not a coupon.
* Sun-Times…
The case against Arroyo revolves around his lobbying work in Chicago as manager of Spartacus 3 LLC. Arroyo signed a deal between Spartacus 3 and V.S.S. Inc. in August 2018 that promised $2,500 in monthly payments from V.S.S. to Spartacus. V.S.S. had hired Arroyo’s company to lobby the Chicago City Council for a sweepstakes ordinance, according to the feds.
Sweepstakes machines are not regulated by the Illinois Gaming Board but look like regular slot machines.
Ald. Gilbert Villegas (36th) said he introduced an ordinance in 2018 to legalize sweepstakes machines in the city and tax them after being approached by Arroyo on behalf of two firms “that wanted to come out of the shadows” to end questions about whether they were operating lawfully.
Also contacting Villegas in support of the ordinance was James Weiss, son-in-law of former Cook County assessor and Democratic chairman Joe Berrios, the alderman said. Villegas said Weiss is an owner-operator of sweepstakes machines. Weiss is married to Berrios’ daughter, former state Rep. Toni Berrios.
* Mihalopoulos yesterday dug up the recording of a House committee hearing in May about sweepstakes games…
[Former Gaming Board lawyer William Bogot], who is now in private practice, told lawmakers that “every published case in the country that has looked at a sweepstakes vending machine has held them to be illegal.”
At that point, Arroyo interrupted Bogot.
“I’m just concerned with Illinois,” Arroyo said. “Not New York, none of the other states. I don’t care what goes on in any of those other states. I want to know what’s happening here.”
Arroyo said a lobbyist for the sweepstakes companies had testified that there were court cases in their favor.
“He says it’s not illegal, you’re saying it’s illegal,” Arroyo told Bogot. “Somebody here is lying. Why are you up here saying it’s illegal? Either you’re lying or the gentleman in the back [of the] room is lying.”
Oops.
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Madigan: “I’m not a target of anything”
Tuesday, Oct 29, 2019 - Posted by Rich Miller
* This is the same basic playbook Madigan used during the #MeToo scandals. Eject the accused, promise a change in state laws and conduct a review of what went wrong…
After a closed-door House Democrats caucus meeting Monday afternoon, Madigan handed out a written statement saying Arroyo had agreed to step down from his committee chairmanship, but he said he agreed with Durkin that Arroyo should resign immediately or face disciplinary proceedings.
“I urge Representative Arroyo to resign from the House of Representatives, effective immediately,” Madigan said in the statement. “If he refuses, I will take the necessary steps to begin the process to remove him from office.”
Madigan, who has served as speaker for all but two years since 1983, also said he plans to call in “stakeholders and experts” to re-examine the state’s ethics and lobbying laws, but he said he didn’t know why it isn’t already illegal in Illinois for the owner of a lobbying firm to serve as a lawmaker.
“I don’t know the answer to that question. That’s the type of thing that should be addressed by this group that we’re going to convene,” he said to a group of reporters Monday in the Capitol.
Legislators shouldn’t be lobbying local governments. They also shouldn’t be selling red light cams to local governments. And, a case could very well be made that they shouldn’t be involved in local zoning matters or even property tax appeals.
* Madigan also said this…
“I’m not a target of anything,” Madigan said.
…Adding… I should’ve put this story here…
Amid an ongoing flurry of federal investigative activity pertaining to state government, a bipartisan group of lawmakers called during a Statehouse news conference Monday for the creation of a task force to recommend greater ethical safeguards.
“We’re not here to be the judge and the jury at all, we are here to start a conversation,” Rep. Tony McCombie, a Savanna Republican, said. ”… We need the people who put us in office to be able to rely on us and trust us, and today, they can’t do that.”
McCombie is sponsoring House Joint Resolution 87, which would create a bipartisan task force to examine state ethics laws and how to better improve and enforce them. […]
Maurice West, a Rockford Democrat who has been in office since January, agreed with his Republican colleagues.
“This issue should not be a partisan issue. Matter of fact, it should not even be a bipartisan issue, this should be a moral issue,” West said.
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* Press release…
With Chicago Mayor Lori Lightfoot already facing formidable odds in her quest to convince the Illinois Legislature to approve an increase in the city’s Real Estate Transfer Tax (RETT), nine state lawmakers said Tuesday they’re not prepared to vote for the measure unless it includes funds dedicated to alleviating homelessness.
In a letter submitted to Lightfoot, members of the Illinois House of Representatives wrote, “It is our intention to support your proposed Real Estate Transfer Tax increase only if a significant amount is statutorily dedicated to homelessness, and we believe that at least 60% should go toward that purpose.”
The letter is signed by State Reps. Kambium Buckner (D-26th); Will Guzzardi (D-39th); Aaron Ortiz (D-1st); Elizabeth Hernandez (D-24th); Thaddeus Jones (D-29th); Theresa Mah (D-2nd); Delia Ramirez (D-14th); Anne Stava-Murray (D-81st); and Celina Villanueva (D-21st).
Their announcement threatens to place another hurdle in Lightfoot’s path, unless the Mayor is willing to revisit a proposal to allocate some of the tax funds to reducing homelessness – a concept that she repeatedly promised to support during her campaign for office.
While soliciting support on the campaign trail, Lightfoot touted a proposal to increase the RETT on higher-priced property sales to pay for programs that reduce homelessness and expand affordable housing. But in the wake of her election, she gutted those provisions from her plan and now is seeking legislative authorization to funnel all revenues from the tax increase into the city’s coffers to defray Chicago’s budget deficit.
On Tuesday, several of the lawmakers who signed the letter joined members of the Bring Chicago Home coalition – which has championed a measure akin to the one Lightfoot promoted in her campaign – at a news conference to say that they share the Mayor’s commitment to resolving the budget deficit, but also believe the 86,000 Chicago residents currently afflicted by with homelessness shouldn’t be a casualty to that effort.
“Chicagoans experiencing homelessness are already struggling on the margins, so we shouldn’t exacerbate their woes by leaving them stranded from the legislative support they were promised,” Rep. Ramirez said. “The proposed RETT increase is one mechanism in Mayor Lightfoot’s arsenal to rectify the budget deficit, and I would certainly favor using it for that purpose, in part. But we should do that in concert with, rather than at the expense of, Chicago’s homeless population. In fact, funding aid for the homeless is the one justification for the proposed RETT increase that has already garnered public support.”
In a 2018 public opinion poll, two-thirds of Chicago’s likely voters said they supported the proposal to increase the RETT on properties sold for more than $1 million if the money was legally dedicated to programs that relief homelessness.
This doesn’t necessarily kill the mayor’s RETT plan, but it sure isn’t a good sign. Their letter to Lightfoot is here. Lightfoot has justified her change of position by pointing to the city’s large budget deficit.
*** UPDATE ***
Rich, just an update: The number of signatures on the letter — the latest editions of it is attached — has expanded to 13. The names:
Buckner
Evans
Gabel
Guzzardi
Hernandez
T. Jones
Mah
Ortiz
Ramirez
Slaughter
Stava-Murray
Villanueva
West
*** UPDATE 2 *** Senate President John Cullerton was asked about the issue today…
There’s a difference of opinion in our caucus on the real estate transfer tax, we’ll see. It’s just something we need to address. […]
There’s concerns that [progressives in his caucus] raised about how the money would be spent. So we talked about the fact that our state legislation would not spend the money. We would only authorize the city to spend the money. So that’s maybe something that the progressive members of the House were not aware of.
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* The Hill…
Rep. John Shimkus (R-Ill.), who announced this summer he won’t run for reelection in 2020, said Monday night he has been asked to reconsider his decision.
In a brief interview with The Hill outside the Capitol, the 23-year veteran lawmaker declined to say whether House Minority Leader Kevin McCarthy (R-Calif.) or Rep. Tom Emmer (R-Minn.), the House GOP campaign arm’s chief, had asked him to run again.
Shimkus, 61, also declined to say whether he was seriously entertaining the idea.
But his remarks come at an interesting time. Earlier Monday, longtime Oregon Rep. Greg Walden, the top Republican on the influential House Energy and Commerce Committee, announced that he would retire at the end of this term, even though he could have served in the top job through January 2023.
Walden had defeated both Shimkus and then-Rep. Joe Barton (R-Texas) for the Energy and Commerce gavel in a hotly contested 2016 race. Barton had previously served as chairman, and Shimkus had more seniority than Walden on the committee.
*** UPDATE *** Politico reporter…
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* I asked Sen. Link earlier today if he was the unidentifed Senator in the Arroyo complaint and he said he wasn’t. But both the Sun-Times and the Tribune say he is. Tribune…
* Sun-Times…
Link, who is an assistant majority leader in the Senate, is not named in the criminal complaint, but referred to as a cooperating witness or CW-1.
Link started cooperating with the feds in 2016 but was initially closed as a source on Nov. 3, 2016, after he allegedly submitted false income tax returns, the complaint states. Link expects to be charged in relation to his taxes, according to the feds, and is working with them now in hopes of getting a break on any sentence he may receive.
In one secretly recorded conversation, Link asks Arroyo what’s in it for him if he helps sponsor Arroyo’s legislation.
The first Arroyo sitdown was in Highland Park. The Senator said he was in the “twilight” of his career. And it was a gaming issue. Again, he denies it. Keep that in mind.
*** UPDATE *** Strongest denial yet…
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* Click here. Working from my phone so that’ll have to suffice.
…Adding… The signatures are not easy to read. It was signed by Tony McCombie, Amy Grant and Blaine Wilhour
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* From a press release…
House Speaker Michael J. Madigan released the following statement Monday:
“The charges filed against Representative Arroyo are very serious. We have already contacted Representative Arroyo’s counsel to determine whether he will resign as state representative. I urge Representative Arroyo to resign from the House of Representatives, effective immediately. If he refuses, I will take the necessary steps to begin the process to remove him from office.
“Additionally, I have instructed my staff to begin bringing together stakeholders and experts to closely examine our ethics and lobbying laws and find ways to strengthen existing law.”
* More…
…Adding… If they expel him, they could face a repeat of the Derrick Smith debacle…
The Illinois House expelled one of its members Friday, but state Rep. Derrick Smith remains on the November ballot and still could be re-elected. […]
The Illinois Constitution prohibits either house of the General Assembly from expelling a member more than once for the same offense. So, Smith could reclaim his seat by winning the election.
That’s what happened the last time the House kicked out a member, in 1905. Rep. Frank Comerford, D-Chicago, was ejected after accusing his colleagues of corruption and besmirching their “good name and reputation.” But Comerford won the special election called to fill his seat.
Smith was, indeed, reelected. And then he was convicted and had to resign.
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Question of the day
Monday, Oct 28, 2019 - Posted by Rich Miller
* From Rep. Luis Arroyo’s Facebook page…
That’s Sen. Marty Sandoval on the left, if you somehow didn’t recognize him. The pic was posted on August 2nd.
* The Question: Caption?
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* Press release…
Illinois State Rep. LUIS ARROYO has been charged in federal court with offering a bribe to a fellow state lawmaker in an effort to influence and reward the lawmaker for supporting legislation that would benefit Arroyo’s private lobbying client.
Arroyo, 65, of Chicago, is charged with one count of federal program bribery, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Arroyo made an initial court appearance this morning before U.S. Magistrate Judge Maria Valdez and was ordered released on a personal recognizance bond. The next court date was not immediately set.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Christopher Stetler and James Durkin.
Arroyo has represented the 3rd District in the Illinois House of Representatives since 2006. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
According to the complaint, on Aug. 2, 2019, Arroyo offered to pay $2,500 per month to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation that would benefit one of Arroyo’s lobbying clients. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie and provided him a check for $2,500 as an initial payment, with the expectation that additional payments would be made for the next six to 12 months, the complaint states. The check was made payable to a nominee of the senator for the purpose of concealing the illicit payment, the complaint states.
Federal program bribery is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
* More…
*** UPDATE 1 *** Read the full complaint by clicking here.
*** UPDATE 2 *** House Republican Leader Jim Durkin just called on Rep. Arroyo to resign by the end of the day or he would be filing paperwork to invoke House Rule 91, which reads in part…
Disciplinary proceedings may be commenced by filing with the Speaker and theMinority Leader a petition, signed by 3 or more members of the House, for a special investigating committee. The petition shall contain the alleged charge or charges that, if true, may subject the member named in the petition to disciplinary action by the House and may include any other factual information that supports the charge or charges.
*** UPDATE 3 *** From the governor…
These are extremely troubling charges. Corruption, deception and self-dealing have no place in our government, and public officials who betray the public trust have forfeited the privilege of serving. While this investigation and court case continue, Rep. Luis Arroyo must immediately step down from his committee chairmanship, or be removed.
*** UPDATE 4 *** Crain’s…
City records maintained by the Board of Ethics show Arroyo lobbied aldermen on “sweepstakes” legislation on behalf of a firm, V.S.S. Inc. Arroyo and his wife, Maribel, operate Spartacus 3.
Aldermen twice considered legislation to change the city code to ban “free play option” or “sweepstakes” machines that might look like poker, bingo, craps, keno, eight-liner or other similar gaming machines, but don’t require money to play. The City Council changes came amid increased scrutiny of the machines from WBEZ, but neither measure managed to pass.
The complaint suggests Arroyo was planning to pursue legislation in this veto session regarding sweepstakes gaming.
Tribune…
State Rep. Luis Arroyo, a Chicago Democrat, has been hit with a federal charge alleging he agreed to pay a state senator $2,500 a month in bribes in exchange for the senator’s support on legislation involving video gambling sweepstakes games that would benefit one of Arroyo’s lobbying clients.
The 13-page criminal complaint, made public Monday when Arroyo appeared in U.S. District Court, revealed that the undisclosed state senator whom Arroyo allegedly agreed to pay has been cooperating with the FBI since 2016 when he was confronted with evidence that he had filed false income tax returns.
Arroyo delivered the first of the promised $2,500 checks to the senator at a restaurant in Skokie on Aug. 22 as the state senator secretly recorded the conversation, according to the complaint.
“This is, this is the jackpot,” the complaint quoted Arroyo as telling the senator.
Sun-Times…
The feds secretly also recorded some of Arroyo’s conversations over the phone as well as conversations with the state senator, according to court records.
In one secretly recorded conversation, the state senator asks Arroyo what’s in it for him if he helps sponsor Arroyo’s legislation.
Arroyo allegedly responded: “I’m a paid consultant, okay? . . . If you put a price on it, I mean, if you want to get paid, you want somebody else to get a check monthly, a monthly stipend, we could put them on a contract. You tell me what it is. Tell me what you need.”
Center Square…
House Minority Leader Jim Durkin said if Arroyo doesn’t step down by the end of the day, Durkin will file a motion via House rules to begin a special investigation that could lead to Arroyo’s removal.
Durkin said the motion would have to be approved by House Democrats, but he couldn’t say how long the process would take. Durkin said he’s been told nothing by Democratic leadership about Arroyo’s arrest.
“It’s as fast as the Democratic leadership wants it to go,” Durkin said. “I will ask that we move expeditiously and we’ll move accordingly. We can do this in the nest few months. It has to go through the rules committee and has to be approved by the Speaker.”
*** UPDATE 5 *** Stay tuned…
…Adding… Heh…
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* Rep. Arroyo (D-Chicago) chairs the House Appropriations-Capital Committee. He worked with Sen. Martin Sandoval, the former chair of the Senate Transportation Committee, on the infrastructure bill…
This post will be updated.
…Adding… Rep. Arroyo gave up a spot in leadership to take over the chairmanship of that approp committee.
Arroyo’s recent contributions include $5,000 on September 24th from Rick Heidner’s Gold Rush Amusements, Inc. He received $2,500 that same day from ComEd.
*** UPDATE 1 *** Wow…
His attorney is Terence Gillespie. The Sun-Times reports he’d negotiated a $10,000 unsecured bond.
…Adding… Arroyo has a side business called Spartacus 3…
Spartacus 3 offers the most comprehensive Municipal and County business advocacy services. The combined experience of over 20 years in government operations paired with the unparalleled individual skills of our team offer you focus, leadership and reliability for a successful partnership. We will assess the need, identify a strategy with you, procure the necessary documentation and advocate for your business through legislative and regulatory processes until your objective is accomplished. […]
The Spartacus 3 team excels at every dimension of winning political campaigns and has penned many victories in it’s score card. Winning a political or government campaign requires a sharp message. It also requires a sharp field and targeting plan, rapid response, political outreach, press strategy and direct voter contact, all executed without mistakes. Your path to victory starts with us.
The company pays Arroyo’s political committee $1,000 a month in rent.
*** UPDATE 2 *** One of the items listed to be seized on the Sandoval warrant was anything related to “sweepstakes” businesses and/or anything “any issues supported by any of those individuals or businesses.” I do not know if this is related, but Arroyo and his company registered to lobby the Chicago City Council this year on a “Sweepstakes Ordinance.”
*** UPDATE 3 *** Yep. It’s related…
I’ve been watching this sweepstakes issue for a different reason. We’ll see if this leads to where I think it might.
*** UPDATE 4 *** HGOP…
MEDIA ADVISORY: Durkin, HGOP Members to Make Statement on Arrest of State Representative Luis Arroyo
WHAT: Illinois House Republican Leader Jim Durkin, Members of the HGOP Caucus to discuss the arrest of Illinois State Representative Luis Arroyo
WHEN: 1230PM TODAY
WHERE: Capitol Blueroom (Springfield)
…Adding… Sun-Times…
Arroyo’s office released a statement Monday, saying that he “would politely decline to answer any questions concerning today’s events. Suffice it to say that Rep. Arroyo entered a plea of not guilty and believes that he will eventually be completely vindicated of the charges against him.”
I’m told the governor will be issuing a statement soonish.
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* The invaluable Mark Brown…
Many Chicago politicians have gotten the itch through the years to try their hand at the restaurant and bar business in hopes of having a place of their own to eat and drink with friends and play the big shot.
What distinguishes Cook County Commissioner Jeff Tobolski from the others is that he used taxpayers’ money to get his own place.
As the mayor of McCook, the least populous town in Cook County, Tobolski led an expensive renovation of a village-owned “pub” into what its website describes as an “upscale dining establishment mixed with a classic social club.” […]
“It’s like a boys club. They treat this place like their basement,” said Autumn Pippenburg, who worked as food and beverage director for the McCook Athletic & Exposition Center, known as “The MAX,” and its adjoining restaurant, Alta Grill.
By Pippenburg’s account, Tobolski used the taxpayer-subsidized dining spot as his private hangout, often staying past closing time to drink with pals while running up tabs he sometimes didn’t pay. Tobolski regularly went behind the bar to pour himself a drink or wandered into the kitchen to order up items not on the menu — and insisted the restaurant always be prepared to serve him his favorite dish: grilled octopus, she said.
Prior to her job at The MAX, Pippenburg ran a staffing agency that supplied women to sell and cut cigars at Casa de Montecristo, a Countryside cigar lounge which has been mentioned in federal search warrants and was a Tobolksi hangout.
The entire Brown column is a must-read because he tied several strings together, often with Pippenburg’s help.
There’s also Rick Heidner’s Gold Rush Gaming, which supplies the video gaming equipment to The Max. Both Heidner and his company were featured in Sen. Martin Sandoval’s indictment. Sebastian Jachymiak and his Technicraft Inc. auto body shop make an appearance, as does Simo “Sam” Krneta, who was found guilty of battery in an alleged sexual assault of Pippenburg. Omar Maani of SafeSpeed LLC was a regular, Brown tells us. And he gives us a couple of tantalizing previews of what might be to come.
Mark is invaluable because he’s the rare newspaper columnist who thinks like a reporter. He did it again with this piece.
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* My weekly syndicated newspaper column…
Gov. J.B. Pritzker has won plaudits lately from even conservative opinion-makers for making the right moves on corruption. But I am going to register an objection in a bit.
When Senate President John Cullerton dithered about what to do with Sen. Martin Sandoval (D-Chicago) after the powerful Transportation Committee’s Statehouse and district offices and home were raided by federal agents, Pritzker called on Sandoval to quit the chairmanship or be removed.
“Let me be clear,” Pritzker said, “While Sen. Sandoval is under investigation, it’s in the best interest of the state that he no longer serve as chairman of the Transportation Committee. If he doesn’t step aside, he should be removed.”
When the Senate Democrats finally released an unredacted version of the Sandoval Statehouse search warrant and Cesar Santoy’s name was on it, Pritzker quickly pulled Santoy’s nomination to the Illinois Toll Highway Authority, saying he wanted to “make sure no cloud is carried over to any work done by the tollway.”
After word got out that the City Club of Chicago’s office was raided and that its longtime president Jay Doherty was reported to be under federal investigation, Pritzker ordered people in his administration to cancel their speeches to the group.
Just about everybody who is anybody has spoken at City Club events, including presidential candidate Donald Trump (and even me, once a year for several years around Christmastime).
“While questions remain about the City Club’s involvement in the ongoing federal investigation, the administration is recommending state agencies pursue alternative forums to communicate with the public,” Pritzker’s communications director Emily Bittner said, according to Crain’s Chicago Business.
Pritzker decreed early on that no bill would move during the fall veto session that benefits Exelon and ComEd, which have received two federal subpoenas, one relating to Sandoval and the other relating to their lobbying activities.
Doherty, by the way, is a ComEd lobbyist. That stance has caused Pritzker to take some heat from environmental activists, who have been pushing a clean energy bill that would benefit Exelon’s nuclear power plants, but the governor would not budge.
Pritzker, the Champaign News-Gazette recently editorialized, has “made it clear that anyone who is compromised for whatever reason will be shunted aside at least until clouds of impropriety have dissipated.”
You won’t see much positive stuff published about liberal Democratic governors in that paper’s editorial page, but the editorial board appears to be impressed, even claiming on another occasion that the “comity” Pritzker brought to his dealings with the Illinois General Assembly “is a far cry from the relentless struggle in which former Republican Gov. Bruce Rauner engaged with Democratic House Speaker Michael Madigan from 2015 to 2019.”
So, I was a little surprised to read this headline from the governor’s press office last week about the Governor’s Office of Management and Budget: “GOMB Releases Five-Year Forecast Showing Significant Long-Term Challenges Without Fair Tax.”
As you know, the governor was able to convince the Legislature to put a constitutional amendment on the ballot next year to enact a graduated income tax, which he markets as the “Fair Tax.”
When asked, the governor’s office insisted the press release was within the law, even though it can be read as a taxpayer-funded entity openly favoring a question that is in front of voters, which could be seen as a no-no.
State law defines a campaign contribution as “a gift, subscription, donation, dues, loan, advance, deposit of money, or anything of value, knowingly received in connection with the nomination for election, election, or retention of any candidate or person to or in public office or in connection with any question of public policy.”
A “question of public policy” is later explained as a question “to be submitted to the voters” or “electors.” And “anything of value” is defined as “any item, thing, service, or good, regardless of whether it may be valued in monetary terms according to ascertainable market value.”
The governor obviously cannot issue a state government press release saying: “GOMB Releases Five-Year Forecast Showing Significant Long-Term Challenges Without Sen. Harriet Jones” before her reelection.
And school boards get in trouble for using taxpayer resources to promote property tax referendums. The governor’s office indicates that since they’re not coming right out and saying “Vote for the Fair Tax” they’re within the law.
Meh.
Pritzker shouldn’t be openly campaigning on behalf of a ballot issue on state time, even if it has been blessed by his highly capable lawyers. It can be both legal and unseemly, after all.
Also from that press release…
“Without structural changes like the Fair Tax, Illinois will continue to struggle to make ends meet, pay our bills on time and deliver vital services, like public education and public safety,” said Governor JB Pritzker. “While years of mismanagement has created these issues, we have a strong path forward and solution with the Fair Tax, which will ask the wealthiest 3 percent to pay more while 97 percent of Illinoisans will pay the same or less.
* As I told subscribers this morning, House Speaker Madigan’s chief eithics officer Justin Cox sent this memo to House Democrats late Friday afternoon…
With session starting back up and the Fair Tax constitutional amendment now set to be on the ballot, I want to remind you that the State Officials and Employees Ethics Act prohibits you (as well as State staff) from using State resources and State time to advocate for or against the constitutional amendment. Treat it as you would any other political activity. I have attached ethics guidance explaining the what you can and can’t do in relation to the amendment.
An excerpt from that attached guidance…
What you CAN do:
* Explain how you or your member voted on SJCRA 1 and the reasons for that vote.
* Provide a purely objective, factual statement regarding what the amendment does (i.e., “The proposed amendment eliminates the requirement that the income tax be at a non-graduated rate.”), rather than a statement meant to persuade (i.e., “The amendment allows Illinois to make the rich pay their fair share.”)
Hmm.
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* Sunday…
Following 14 hours of negotiations on Saturday, leaders from the Chicago Teachers Union said its most recent proposal asks for an additional $38 million in funds over the city’s latest offer. But Arnie Rivera, CPS’ chief operating officer, said that divide is actually much larger during Sunday’s news conference.
“On an annualized basis, the proposals that we discussed with CTU yesterday were closer to $100 million,” Rivera said, adding that the proposal is “just not anything that we can consider financially.”
* Also from yesterday…
“Lincoln Yards and the 78 got billions of public dollars to bankroll their new neighborhoods for rich people—dollars that should have gone to our schools,” Sharkey said in the statement.
I tend not to believe any dollar numbers floated by the CTU.
* Greg Hinz explains why…
As for the teacher talks, the most remarkable thing to me is that the Chicago Teachers Union continues to insist on its own set of facts, using math in, what, base 6?
The first example is its continuing instance that CPS got $1 billion in new money from the state for classroom needs. Wrong. It got some money, but a good two-thirds of that money was to pay old pension debt, and most of it came from a Chicago property tax hike—the very levy that was too toxic for Lightfoot to touch.
Example two is CTU’s continuing instance that tax-increment financing pots, notably the $1.2 billion in subsidies allotted for the proposed Lincoln Yards megaplex, can be raided for school usage. Wrong—and for a simple reason: The money doesn’t exist yet. It won’t exist until Lincoln Yards is up and running and produces $1.2 billion in new property taxes, years and years from now.
* Related…
* Tribune live updates
* Sun-Times live updates
* Mayor Lori Lightfoot announces deal with SEIU but says standoff continues with Chicago Teachers Union; classes remain canceled Monday
* CPS Classes Canceled For Eighth Day On Monday, Which Will Make 2019 Teachers’ Strike Longest Since 1987
* Lightfoot opts to tame TIFs, not abolish them
* Chance the Rapper gives striking teachers an ‘SNL’ shoutout, touts Chicago in song
* Beyond the picket line: Union clout, tallied
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* From April of 2015…
Sixteen months ago, prominent organizer and minister Leon Finney Jr. decided to ring in his seventy-fifth birthday bash with some big news: the Woodlawn Community Development Corporation was launching an initiative to give South Side black communities a multimedia production center. Just a few doors down from his Metropolitan Apostolic Community Church, Finney packed a historic Bronzeville mansion with the fruits of his networks and resources, creating Urban Broadcast Media (UBM). His vision: to “allow people of color to have a voice.”
Since then, donors such as PNC Bank, ComEd, and Community Trust Credit Union have invested about $700,000 to renovate the brightly colored house on King Drive for UBM, which is now filled with state-of-the-art acoustic equipment, rentable recording studios, and production rooms. Finney sees UBM as a black-owned media enterprise in the same vein as The Chicago Defender, Negro Digest, or any other historical black media institution in the U.S., and as a means of regaining control over the way black Chicagoans’ stories are told. In a world where a few large corporations control the vast majority of media outlets, the efforts of local broadcasting centers, especially those for black media, are often overshadowed.
For what it’s worth, the company’s YouTube page has not exactly been a rousing success.
* From this past September…
Federal authorities have launched a wide-ranging criminal investigation of the Rev. Leon Finney Jr. amid allegations from a federal bankruptcy judge that he engaged in fraud, self-dealing and mismanagement while running a nonprofit that managed a quarter of all public housing units in Chicago.
The revelation of the criminal investigation comes less than a week after the Chicago Sun-Times reported that Finney had stepped down from the nonprofit Woodlawn Community Development Corporation shortly after the firm filed for bankruptcy in October, pulling the curtains back on its finances.
* Sun-Times today…
The campaigns of two of Chicago’s most powerful politicos paid Rev. Leon Finney Jr.’s struggling media nonprofit more than $100,000 last election cycle to help bring out voters to the polls despite the company never holding a business license, records show.
Most of the money came from Gov. J.B. Pritzker’s campaign, which paid Urban Broadcast Media $93,540 in five installments between March and October of last year, according to campaign finance records.
The JB for Governor campaign fund recorded those payments as “media buys” in their financial report to the Illinois State Board of Elections, but deputy campaign manager Quentin Fulks acknowledged the money actually paid for field canvassing.
“The work was mistakenly listed as media buys instead of strategic field consulting on the committee’s campaign finance report and is being amended,” Fulks wrote in a statement to the Sun-Times.
Um, they paid a not-for-profit media company almost a hundred grand to do “field consulting”?
What?
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Veto session preview
Monday, Oct 28, 2019 - Posted by Rich Miller
* Finke…
With less than a handful of vetoes to deal with, the whole tenor of the session will be determined by how much other stuff lawmakers decide to tackle. And there’s a pretty long list of stuff they could do if they are inclined.
Bills to ban flavored vaping products and to cap out-of-pocket costs for insulin are definitely on the agenda. Both proposals have some intense opposition, so it’s not necessarily a slam-dunk for either one. (Then again, opposition to the insulin bill comes from pharmaceutical and other business interests, which don’t always engender a lot of sympathy in these here parts).
Gov. J.B. PRITZKER said he’s still going to push his idea to consolidate hundreds of downstate police and fire pension systems. But more and more lawmakers seem to not want to rush this idea.
There are other possibilities, but lawmakers may be inclined to basically just rest on the laurels of what was a pretty productive spring session.
It’s hard to say for sure at this point on anything. But I will just remind you that a whole lot of folks were predicting that very little would be accomplished in May, and then everything passed.
* Some really good session previews have been published since Friday. Hannah Meisel begins with the elephant in the room…
Lawmakers will return to Springfield Monday nearly five months after a momentous spring legislative session that saw the passage of massive bills from recreational marijuana legalization to a $45 billion infrastructure plan.
But the political climate has shifted significantly since early June, since the existence of widespread federal corruption probes was revealed over the summer and fall. The inquires appear targeted at Democrats and their allies, but the investigations have also shaken Republicans and longtime Springfield lobbyists who work for bipartisan interests across industries.
Federal agents raided the home, Springfield and district offices of State Sen. Marty Sandoval (D-Chicago) in late September. Since then, search warrants released by the state Senate and other local government bodies revealed federal agents are searching for information about dozens of individuals and businesses. […]
State Sen. Tom Cullerton (D-Villa Park) was indicted in August on 45 counts of embezzlement for allegedly keeping a ghost payroll job with the Teamsters Joint Council 25 in the early years of his time in the Senate.
Neither senator is expected to participate in Veto Session.
The feds also appear to be circling closer to House Speaker Mike Madigan (D-Chicago).
* Team coverage in the Tribune…
Lightfoot has a lot riding on the veto session, which will serve as a major test of her influence in Springfield. When she unveiled her budget plan at a special City Council meeting Wednesday, Lightfoot said the math only works if state lawmakers and Pritzker give Chicago permission to implement a graduated tax on real estate transactions. She also called on the General Assembly to rework the tax structure for a proposed city casino to make it more attractive to potential investors and to “develop a statewide pension reform package.”
But Lightfoot’s $11.65 billion 2020 budget plan doesn’t count on any revenue from the casino or any savings from pension changes at the state level, which could allow the mayor’s office to focus its lobbying efforts on pushing through the real estate transfer tax before the legislature adjourns for the year in mid-November. Her plan calls for raising the tax on the sale of residential and commercial properties worth more than $1 million.
Lightfoot had been saying for months that her spending plan would rely on help from Springfield, but she long left many key people in the dark on the specifics. Her office didn’t brief Pritzker’s staff on the details until a week before she publicly unveiled her budget and four days after she laid out her proposals for rank-and-file lawmakers who represent the city. After her Wednesday budget address, Republican leaders said they were still waiting for details.
Pritzker and legislative leaders have put the onus on Lightfoot to marshal support for her proposals. The mayor’s office declined to comment on its legislative strategy. […]
“Everyone knows that they have a difficult mountain to climb,” [House Majority Leader Greg Harris] said.
* Jerry Nowicki also covers several issues, including pension consolidation…
In recent days, a task force formed by Pritzker recommended the state consolidate 649 suburban and downstate police and firefighter pension funds into just two, saying the move would generate billions of dollars in additional earnings and cut administrative costs over the next 20 years.
The funds would be consolidated into one each for firefighters and police. The Illinois Fraternal Order of Police Labor Council “expressed strong concerns about the recommendations” of the task force in a statement, while the Associated Fire Fighters of Illinois said it supports the recommendations.
Pritzker said this week language for the bill “is being put together now.”
“There are many people who understand that if we want to keep property taxes down, we want to bring them down, that we want to stop the hikes that are occurring everywhere, we’ve got to attack property taxes everywhere we can,” he said. “One of them is to attack it by making sure that our police and fire pensions are reasonably well funded.”
The bill would not, however, address the more than $130 billion in unfunded pension liabilities facing state government, as the funds that would be consolidated are funded by local municipalities, not the state.
Make sure to click on all the links above. There’s just too much content to excerpt here.
…Adding… This is the city’s chief financial officer…
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* From the governor’s daily public schedule…
What: Gov. Pritzker to announce his support for legislation requiring that Illinois college athletes be compensated for their likenesses.
Where: Illinois State Capitol, Governor’s Office, Springfield
When: 9 a.m.
* Pritzker announced his support on Rick Pearson’s WGN Radio show yesterday…
“Student athletes are the backbone of the college sports industry, and they deserve the same opportunity as everyone else to earn compensation based on the use of their name and their image and likeness,” Pritzker said on WGN AM-720. […]
The California law allows college athletes to hire agents and make money from endorsement deals with sponsors, despite objections from the NCAA. The move would take effect in 2023, the same time frame in the Illinois legislation. […]
“I just have this problem with the commercialization of undergraduate and collegiate sports. I still believe in the concept, even though it seems to be waning, of the scholar athlete,” [House Republican Leader Jim Durkin] said.
* The bill’s sponsor, Rep. Chris Welch, responded to Leader Durkin via a press release…
Leader Durkin either hasn’t read the bill or confused over the reality of NCAA, a heavily “commercialized” multi-billion dollar business that has benefited nearly everyone except for the student athletes. He is clearly out of step with Republicans across the country like Senator Mitt Romney (R-UT) and Congressman Mark Walker (R-NC) demanding Congressional action to get College athletes paid.
* He also provided a list of dot points…
* The bill does NOT require schools to pay players or give them a cut of ticket sales. Rather, it allows then to earn money by selling the rights to their own name, image and likeness - same rights and opportunities that every American should have in a free-market economy.
* Student athletes would NOT be able to sign endorsement deals that conflict with their team’s sponsors.
HB3904 brings equity to student-athletes whose talent and labor generates significant revenue for the colleges and universities that they serve. This legislation won’t cost the NCAA or our schools a single dollar while creating a strong recruitment practice for Illinois schools. While colleges have been quick to create support systems to help tech titans like Michael Dell and Mark Zuckerberg turn their ideas into multi-billion dollar money making businesses, young men and women who stimulate the economics of the NCAA should also be able to secure their own economic well-being. I am proud to be the chief sponsor of this legislation to advance educational and financial equity for student athletes.
Welch also noted on Rick’s program that music students at universities like Northwestern can earn money by playing music when they’re not studying. Athletes should be given the same sort of right.
The bill is here.
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