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*** UPDATED x1 *** Sun-Times, Tribune claim Sen. Link is the cooperating witness against Arroyo

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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…


  38 Comments      


Durkin files paperwork to begin proceedings against Arroyo

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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

  5 Comments      


Madigan to Arroyo: Resign or I will take the steps to remove you

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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.

  58 Comments      


Protected: SUBSCRIBERS ONLY - Today’s “extra” edition of Capitol Fax (use all CAPS in password)

Monday, Oct 28, 2019 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

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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?

  54 Comments      


Great timing by the Illinois Supreme Court /s

Monday, Oct 28, 2019 - Posted by Rich Miller

* Terms start when they start, but still…


  22 Comments      


*** UPDATED x5 - Pritzker responds - Durkin to initiate proceeding to kick Arroyo out if he doesn’t resign today*** Feds: Arroyo offered $2,500 per month to unnamed Senator who was already cooperating with the feds

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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…



  52 Comments      


*** UPDATED x3 - Sweepstakes legislation involved - “Bribery of a state official” *** This just in… Rep. Arroyo arrested on public corruption charges

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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.

  76 Comments      


Lots of folks tied to the federal probe were connected to Tobolski’s government-owned hangout

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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.

  17 Comments      


The governor should stop using state resources to support a ballot issue

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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.

  17 Comments      


Why I’m not buying the numbers that the CTU is selling

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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

  49 Comments      


Pritzker campaign hired Leon Finney’s not-for-profit media company to do field consulting

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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?

  8 Comments      


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…


  5 Comments      


Pritzker supports allowing college athletes to sign endorsement deals

Monday, Oct 28, 2019 - Posted by Rich Miller

* 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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