* Crain’s headline on a Bloomberg story…
Three key reasons Ken Griffin picked Irvin for governor: Location, location, location
* From the story…
You’d never guess that wealth and power in America converge here, at the intersection of Diehl and Eola roads, off Interstate 88, west of Chicago.
But not everything is as it seems in Aurora, Illinois. […]
The Citadel chief’s pick for Illinois: none other than Aurora Mayor Richard Irvin. So far, Griffin has pledged $20 million to Irvin’s campaign, the rough equivalent of half the money he’s sunk into the midterm elections.
Griffin, 53, is a major donor to Republicans nationwide and has begun to hint at political ambitions of his own. But Aurora has a special meaning to Citadel and other financial firms because the city is home to a massive exchange.
While the Chicago Mercantile Exchange is headquartered more than 30 miles away, virtually all the trading happens between computers here in a data center on Diehl Road. Dish antennas attached to towers are crucial to making this work and enabling firms to keep pace with rivals. That’s because the antennas beam buy and sell orders to other financial markets in Chicago, the U.S. East Coast and elsewhere around the globe.
There’s a whole lot more to this, including a Griffin spokesperson claiming this is all a “conspiracy theory,” so go read the rest.
* Democratic Party of Illinois…
A new report today from Bloomberg builds on reporting from WTTW about the deep pay-to-play connections between Richard Irvin, Ken Griffin, Aurora telecommunications firm Scientel Solutions, and Griffin’s hedge fund, Citadel.
According to Bloomberg, Irvin helped clear the way for Scientel to build a communications tower close to a Chicago Mercantile Exchange data center in Aurora over the objections of the city council. The tower was widely believed to be constructed to support Citadel’s wireless network, and its location would give Citadel an advantage over its competitors in its trading activity.
Irvin has raked in at least $135,000 in Scientel-related campaign cash and even traveled on a private plane to Mexico with Scientel’s leadership. Scientel has in turn received millions of dollars’ worth of contracts from the city of Aurora under Irvin’s watch. Meanwhile, Citadel’s hedge fund and market making operations have exploded in value, adding billions to Griffin’s net worth.
Now, Irvin is trying to take this pay-to-play gameplan from the mayor’s office the governor’s office, as he has collected $20 million from Griffin in the first few months of his gubernatorial campaign.
Griffin claims he only became aware of Irvin “months ago,” but reporting demonstrates Citadel had a longstanding interest in Irvin and his actions in Aurora. And while questions swirl, Irvin continues to hide from reporters and both Irvin’s campaign and Citadel refuse to answer basic questions about the history between Griffin and Irvin as well as the Scientel Solutions tower.
But as Griffin-funded Irvin ads blanket the airwaves and innundate mailboxes, the voters of Illinois deserve immediate answers from both Richard Irvin and Ken Griffin.
* DGA…
New reporting from Bloomberg exposes Richard Irvin for yet another pay-to-play scandal — and this time, Irvin’s biggest fan and megadonor Ken Griffin is at the center of the corruption.
In a February interview, Griffin said Irvin “understands the joint prosperity that comes with a successful business community,” but new reporting shows that “joint prosperity” isn’t for all the people of Illinois — just Irvin and Griffin themselves.
The city of Aurora is a key financial trading point, making Mayor Irvin a “gatekeeper for high-speed traders” like Griffin’s company Citadel.
Irvin and Griffin both have close ties to one stakeholder company called Scientel Solutions, which donated over a hundred thousand dollars to Irvin’s campaign and committees connected to him and, in return, received millions in city contracts and permission to build a high frequency trading tower that officials warned would interfere with fair access.
“From what I understood, [Irvin] and his team were reaching out directly to the aldermen to sway their opinion,” said one alderman. “I didn’t like anything about it.”
After they won the vote, the CEO of Scientel sent out pictures celebrating with Irvin at a Mexican restaurant near City Hall. Scientel only connected their antenna to one firm inside the data center: Griffin’s.
“Richard Irvin and Ken Griffin may claim they’re for honest government, but in reality, both only do what fills their own pockets and campaign coffers,” said DGA Senior Communications Advisor Christina Amestoy. “Now, Griffin is leaning in even more by backing Irvin in hopes that Irvin will sway things to his company’s benefit. Irvin and Griffin’s corruption is getting harder to hide.”
*** UPDATE *** From Citadel…
Citadel Securities has not had any engagement with Richard Irvin on any aspect of its business.
It is a matter of public record that Citadel Securities does not use the Scientel tower in Aurora.
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*** UPDATED x1 *** Campaign notebook
Monday, Apr 25, 2022 - Posted by Rich Miller
*** UPDATE *** This is big…
Earlier today, SEIU Local 1 endorsed Gil Villegas for Illinois’ 3rd Congressional District. SEIU Local 1 — representing more than 3,500 Illinoisian working families in the 3rd Congressional District — supports candidates who have demonstrated a strong commitment to fighting for economic, racial, immigrant and environmental justice for our state’s working families.
“Gil Villegas has been a champion for the working families of SEIU Local 1. He not only has stood with SEIU Local 1 but he has been a strategic partner with our Local to win for workers. He has played a key role in ensuring developments in our communities create good-paying union jobs with benefits,” said SEIU Local 1 President Genie Kastrup. “It is rare that elected officials use their voice and power to help working families time and time again. Gil Villegas is one of those elected officials. He’s used his influence and actively engaged to help successfully win a good contract for the Window Washers when they went on strike.”
“My family lost everything when I was eight years old after my father died. But my brother and I survived because my mother was an incredibly strong woman, our community stepped up, and we had help. We lived in public housing, relied on food stamps, and we were fortunate that government death benefits stabilized our family,” said Alderman Gil Villegas. “I will never forget what it’s like to struggle and that’s why I will fight every day in Congress for workers to be given a fair shot at good-paying jobs. The scales have been tipped against working people for far too long in Washington. If the people of Illinois send me to represent them in Congress, I will deliver for them just like I’ve helped to deliver more affordable housing and better wages for working people in Chicago.”
* Sen. Darren Bailey’s proposed constitutional amendment last year would’ve killed off the state pension clause’s “enforceable contractual relationship” and “shall not be diminished or impaired” language…
SECTION 5. PENSION AND RETIREMENT BENEFITS RIGHTS
Nothing in this Constitution or in any law shall be construed to limit the power of the General Assembly to reduce or change pension benefits or other benefits of membership in any public pension or public retirement system, regardless of whether those benefits have accrued or have been earned and regardless of when those benefits were established. Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.
Today, gubernatorial candidate Bailey said he wanted to “clear up some confusion” on his pension stance…
So anyone out there that knows a teacher, knows a Department of Corrections officer, knows somebody’s working for IDOT, DCFS and Illinois State Police, any other government entity, and you hear them say, ‘Oh, Darren Bailey is going to take my pension, I know it.’ It’s another flat-out lie.
Yeah. Right.
And that proposal is coming back to haunt Bailey…
The Irvin for Illinois campaign today is proud to announce Illinois Troopers Lodge #41’s endorsement of Aurora Mayor Richard Irvin and State Representative Avery Bourne in the Republican primary for Governor and Lieutenant Governor of Illinois. […]
Troopers Lodge 41 is the largest statewide police union in Illinois that includes approximately 3,200 sworn and retired Illinois state troopers. Irvin’s strong record in supporting law enforcement and cracking down on crime in Aurora, along with Bourne’s voting record against anti-police legislation, distinguish them as the best candidates in the Republican primary to make public safety a priority and empower our law enforcement agencies across the state.
* On to a different topic from the Irvin campaign…
The Irvin for Illinois campaign won the Lake County GOP Straw Poll that took place on Saturday at the Round Lake Beach Cultural and Civic Center. Richard Irvin earned over 39 percent of the vote, almost 20 percent more support than the candidates in second place.
“Representative Bourne and I are grateful for the support that resulted in our first victory at the Lake County GOP straw poll this weekend,” Irvin said. “This is just one of many wins to come on our path to take Illinois back from J.B. Pritzker’s extreme policies that have created unsafe communities and forced high taxes onto Illinois families and businesses.”
But there was some controversy and it kinda got ugly…
Tom DeVore was upset…
UPDATE ON RICHARD IRVIN STRAW POLL GAMES
This man in the Irvin/Bourne shirt is Derek Murphy, or now I’m being told possibly a Soros fellow. He is the former member of the Illinois Republican Party who left that position to join the Irvin/Bourne campaign. He’s making sure the Indian Senior citizens get back on the bus. Mr. Irvin’s team has serious connections to the establishment Republicans who have done nothing for the people of this state for years.
Also, word on the street is Nimish Jani, who is the committee person from the 8th district of the Illinois Republican Party, and who is also Indian, may have orchestrated getting the Indian Senior citizens lined up, in exchange for Mr. Jani being set to receive an appointment into Mr. Irvin’s cabinet if he wins. I have no direct knowledge if this is true but Mr. Jani is an Indian man from Cook County who is an establishment Republican, the Senior citizens are Indian and also from Cook county, and these good people really had no idea why they were there and what was going on. It certainly seems plausible does it not?
While you won’t be able to see it until early June, you should each remind yourselves to go look at Mr. Irvin’s campaign account and see if and how much of a donation he made to the Indian Senior citizens group for their efforts?
It’s all one big club my friends and you ain’t in it!! You can however dismantle the club and start over!! It’s your call!!
Man, that post is absolutely soaked in foulness.
* Reform for Illinois…
As of March 28, House Minority Leader Durkin is no longer subject to contribution limits thanks to the Republican State Leadership Committee (RSLC) PAC, which spent just over $100K in independent expenditures supporting his campaign and triggered Illinois’ “millionaire’s exemption” or “self-funding loophole.” The RSLC behind the PAC bills itself as “America’s Only Line of Defense Against Socialism in the States” and boasts board members including Karl Rove, Reince Priebus, and Barbara Comstock.
The Republican State Leadership Committee PAC also blew Durkin’s contribution caps in 2020, 2018, and 2016. In 2018, Leader Durkin took advantage of his lack of caps by accepting $6 million from Ken Griffin, accounting for almost two-thirds of his fundraising that cycle. He also received $5 million from Griffin in 2016, and broke nationwide state legislative fundraising records. Though those donations came considerably earlier in the election cycle than where we are now, we’ll be keeping a close eye on Durkin’s campaign now that his caps are off.
All the other legislative leaders loaned themselves the triggering amount for the self-funding provision. But while Harmon and Welch have taken ample advantage of the loophole to rake in huge contributions, Durkin and McConchie have not as of yet. […]
This quarter also saw some movement at last from Mike Madigan’s campaign committee: he spent $4 million on legal fees between January and March. It remains to be seen whether his use of campaign funds for legal expenses will be affected by the Illinois Supreme Court’s recent ruling in a case involving disgraced former Ald. Danny Solis. Madigan still has $6.4 million left in his account.
* More…
* Crowe nominated for U.S. attorney in Southern District: U.S. Senate Majority Whip Dick Durbin and U.S. Sen. Tammy Duckworth, both Democrats representing Illinois today released the following statement after the White House announced the nominations of Rachelle L. Crowe to serve as United States attorney for the Southern District of Illinois
* In Illinois secretary of state race, AFL-CIO stays neutral months after affiliated workers backed Giannoulias: The lack of an endorsement by the Illinois AFL-CIO signals good news for Giannoulias’ two major opponents in the Democratic primary on June 28, especially his main rival, Chicago City Clerk Anna Valencia, who has faced questions about whether her husband’s lobbying activities have interfered with her role in public office. … Drea said the organization also made no endorsement in three hotly contested Congressional races: the 3rd District, a newly drawn Latino-leaning district that covers the city’s Northwest Side and western suburbs and features Democrats Delia Ramirez, a state representative from Chicago, and Chicago Ald. Gilbert Villegas, 36th; the 6th District in the western suburbs, where two-term U.S. Rep. Sean Casten, a Democrat from Downers Grove, is facing off against first-term Democratic U.S. Rep. Marie Newman of LaGrange; and a crowded race in the 1st District to replace retiring Democratic U.S. Rep. Bobby Rush of Chicago.
* FOP president at center of controversy defeated in bid to extend his term - John Catanzara wanted the union president’s term extended from three years to five. FOP members overwhelmingly voted against the change at a general membership meeting Wednesday night: Sources in attendance said a larger-than-normal contingent of African American officers helped seal Catanzara’s defeat on both measures. … No African American officer has been elected to the FOP during the last two administrations. … Roughly 30 Black officers standing in the back of the room, mostly women, yelled back, sources told the Sun-Times, telling Catanzara he had no right to attack Davis when Davis was not there to defend himself.
* Darren Bailey sizes up the GOP gubernatorial race on the Juice week-in-review livestream
* Harmon defends ending cash bail, says ‘we funded police’: Harmon said he didn’t know if lawmakers needed to make any further changes to the SAFE-T Act before the state phases out the use of cash bail in January of 2023. “I think people have turned this political argument on its head,” he said. “Republicans have obviously seized on what they think is a winning rhetorical argument, but it doesn’t fit with the facts. Today, in a world of cash bail, the most dangerous criminal who has enough money can leave the jail awaiting trial and go commit more crimes. We would like a model that evaluates each defendant based on their threat to a specific person or to the community, and judges should be able to hold people who are dangerous in jail awaiting trial.”
* J.B. Pritzker and Ken Griffin: The Twin Titans of Illinois Campaign Finance: “Irvin has Rauner’s old campaign team. You know that in terms of his message discipline. I don’t think Irvin’s nearly as smooth as Rauner but give him credit. So far, he’s been very disciplined. In that sense, it’s Rauner 2.0 … with Griffin’s money,” said Redfield.
* GOP candidates ‘hiding from the press,’ Pritzker says: “I think at this point in the election four years ago, we had done… I don’t know, 30 to 40, forums, all the candidates,” Pritzker said in an interview on Capitol Connection. “You don’t see that in the Republican primary this time.”
* Dixon mayor receives local endorsements in statehouse bid: Dixon Mayor Li Arellano Jr., a Republican candidate for the Illinois House District 74, received endorsements from state Rep. Tom Demmer, former state Sen. Tim Bivins and Lee County Treasurer Paula Meyer. … Arellano is opposed in the primary by 22-year-old Dixon native Bradley Fritts.
* Candidate intro: Mary K. O’Brien runs for Illinois Supreme Court
* Illinois secretary of state candidates Dan Brady, John Milhiser discuss why they’re running
* Press Release: IBEW LOCAL 134 ENDORSES CHICAGO UNITED MAP: IBEW Local 134 Joins Local 150, Laborers’ District Council & Chicago Fire Fighters Union in Endorsing Map Backed by Majority of City Council: “The Chicago United Map is the path forward for Chicago, and we’re proud to endorse it,” said IBEW Local 134 Business Manager Don Finn. “The Chicago United Map reflects our diverse city, growing communities and historic neighborhoods. It’s time to come together and move our city forward with the Chicago United Map.”
* Illinois House Speaker Chris Welch’s wife ShawnTe Raines-Welch returns out-of-state contribution to judicial campaign: In a written statement, David Ormsby, her campaign spokesman, said: “The contribution to the Raines-Welch for Judge campaign from Intensive Specialty Hospital in Shreveport came entirely unsolicited. No one from the campaign and no one remotely associated with the campaign — no volunteer, no friend, no relative — at no time solicited the contribution. Additionally, the campaign’s vetting system identified the contribution as ineligible and returned it and notified the State Board of Elections on April 4, 2022, before receiving the board’s official notice. Our vetting worked. End of story.”
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Not so full disclosure
Monday, Apr 25, 2022 - Posted by Rich Miller
* Today…
Here’s The Deal: Lawyers and judges elevated to the Illinois Supreme Court by the Judicial Nominating Committee of the Cook County Democratic Party are allowed to be the best jurists they can be on 90% to 95% of the cases before them. But, on any cases affecting the party, such as redistricting reform, they must commit themselves to protect the party.
That’s The Deal: A good, prestigious job, with a great pension, all in return for turning a blind eye to Lady Justice on those infrequent political cases that affect the party and its interests, such as pensions, term limits and gerrymandering. Most wannabe jurists consider it worth the trade. They wouldn’t be offered the judgeship if they didn’t.
The Deal is never spoken, of course, in the best tradition of indicted ex-House Speaker Mike Madigan, a state lawmaker for more than half a century and chairman of the Democratic Party of Illinois for years. Winks and nods speak volumes. […]
The Deal was in obvious play in 2016, when the four Democrats on the seven-member Illinois Supreme Court blocked a constitutional amendment petition drive signed by 600,000 Illinois voters. Petitioners sought to put on the ballot a proposal that legislative redistricting be conducted by an independent commission. Surveys showed 80% of voters supported independent mapping.
But no. In a blatantly partisan opinion, Justice Tom Kilbride wrote that the amendment was unconstitutional, preventing voters from having their say. His ludicrous reasoning: The proposal gave some responsibilities to the Illinois auditor general, a constitutional officer of the legislature, and the auditor lacked the staff to carry out such responsibilities. This, as if modest staffing issues supersede the state constitution, rather than the other way around.
Insiders tell me one of the two female justices on the court, Chief Justice Anne Burke (wife of, guess who? see above) or Mary Jane Theis, had doubts about the opinion, but ultimately caved to The Deal. Both came up through the system of The Deal.
Nor did opinion author Kilbride recuse himself from hearing the case, even though it was argued before him by Mike Kasper, treasurer of the Democratic Party of Illinois, and Madigan’s elections lawyer. And even though the party had just a few years earlier contributed more than $1.5 million to his successful retention bid. Only in Illinois.
So now, Illinois has among the most preposterously contorted legislative districts in the nation, a disservice to democracy, and to all 8 million Illinois registered voters.
This November we can expunge The Deal by electing justices who have no ties to the Burke-Madigan axis of the Democratic Party of Illinois.
• Jim Nowlan is a former state legislator and aide to three unindicted Illinois governors. A retired professor of American politics, he writes a newspaper column on Understanding Illinois.
* OK, now let’s back up to April 16 when Illinois’ wealthiest resident Ken Griffin contributed $6.25 million to a political action committee called Citizens for Judicial Fairness, the same committee which funded most of the campaign to oust Justice Kilbride and will play a big role in this year’s Supreme Court races. The committee’s chairman? Why it’s Jim Nowlan.
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* April 14…
The Midcontinent Independent System Operator (MISO) released the results of its 2022-2023 annual Planning Resource Auction (PRA) indicating capacity shortfalls in both the north and central regions of MISO. This encompasses parts of 11 states in the Midwest. MISO remains committed to continue its work with members and state regulators to maintain grid reliability across the entire 15-state MISO footprint.
“We have anticipated challenges due to the changing energy landscape and have communicated our concerns through the Reliability Imperative. We have prepared for and projected resource fleet transformation, but these results underscore that more attention is required to offset the rate of acceleration,” said MISO Chief Executive Officer John Bear. “These results do not undermine our ability to meet the immediate needs of the system, but they do highlight the need for more capacity flexibility to reliably generate and manage uncertainty during this transition.”
The Local Clearing Requirement – capacity required from within each zone – was met for the entire MISO Region, but Zones 1-7 cleared at the Cost of New Entry (CONE).
• Zones 1-7 (parts of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Montana, North Dakota, South Dakota and Wisconsin) all cleared at $236.66/MW-day.
• Zones 8-10 (parts of Arkansas, Louisiana, Mississippi and Texas) cleared at $2.88/MW-day.
Load Serving Entities (LSEs) that entered the MISO auction without enough owned or contracted capacity to cover their requirement (load plus reserves) will pay these prices for the amount of capacity they are ‘short’. The cost impact to consumers of those LSEs with a shortfall will depend on the amount they are short and the LSE’s retail rate arrangement with their state regulator. LSEs that entered the auction with sufficient capacity to cover their requirement will not need to purchase capacity at these prices.
“The reality for the zones that do not have sufficient generation to cover their load plus their required reserves is that they will have increased risk of temporary, controlled outages to maintain system reliability,” said Clair Moeller, MISO’s president and chief operating officer. “From a consumer perspective, those zones may also face higher costs to procure power when it is scarce.”
Emphasis added.
* Steve Daniels last week…
Carmel, Ind.-based Midcontinent Independent System Operator, or MISO, the regional power grid overseer for much of the Midwest, including downstate Illinois, warned last week that rolling blackouts are possible this summer because of a shortage of power-generation capacity. […]
Critics of policies phasing out coal and natural gas in favor of renewable power are seeing their doomsday forecasts start to come true far faster than even they thought. The price shock downstate also hands Republicans who didn’t support Gov. J.B. Pritzker’s sprawling, costly Climate & Equitable Jobs Act, or CEJA, last year an issue in the upcoming election.
The statute requires the closure of all fossil fuel power plants in Illinois no later than 2045. Effectively, it’s made the usual method of addressing power-supply shortages—construction of new natural gas-fired plants—uneconomic and significantly reduced the tools available to address the shortage that’s emerged. […]
“Currently, we are confident that our delivery system is stable and reliable and power will be there when it is needed this summer,” spokeswoman Marcelyn Love said in an email. But, she added, “Even hearing MISO’s president suggest the possibility of having to shed load is a serious concern.”
* Richard Irvin campaign last Thursday…
The cost of living in Illinois is again about to get higher for residents thanks to Governor Pritzker’s ComEd bailout bill which passed last year.
In a notice to consumers this week, Ameren Illinois, one of the state’s leading energy providers, warned consumers to expect to see their yearly energy bills rise by as much as $500. In addition to the price hike, consumers may also face rolling brownouts during the hottest days of summer due to a shortage of power-generation capacity driven by Pritzker’s energy law.
J.B. Pritzker pushed a radical total phase-out of fossil fuel power plants with massive spending and facility closures to begin over the next few years. Now, residents in Central and Southern Illinois are going to pay the price for Pritzker’s misplaced priorities with the possibility of no power at all this summer.
The rapid closure of coal-fired power plants in favor of less-reliable renewable energy sources has made the Midwest’s energy grid less resilient. Ameren shared this concern with Pritzker during negotiations for the 2021 energy bill, instead recommending a steadier transition to renewable generation. Industry experts warn that while Central and Southern Illinois customers are most at risk this summer, if a prolonged power shortage occurs it could affect future supplies in the Chicago market.
“J.B. Pritzker ignored countless warnings from lawmakers, businesses, and energy providers themselves; now consumers are living out the worst case scenario,” said Irvin for Illinois Spokesperson Eleni Demertzis. “Pritzker’s radical agenda keeps hurting the people of Illinois. Crime is out of control because of his anti-police, pro-criminal policies. Now struggling families will suffer even more because of his radical energy agenda.”
* From Jordan Abudayyeh in the governor’s office…
The market had already sealed the fate of coal long before the passage of CEJA, with nearly all announced retirements coming in advance of final action. New gas build was not prohibited by CEJA, and the ability of gas plants to stay online until 2045 without reaching zero emissions was a legislative concession to gas-fired investors who insisted they could make the economics work and transition to clean hydrogen in the out years. Some of those projects are in the permitting process currently.
No new gas plant could help with the current MISO projection; the permitting and construction of such a new plant would take many years - the buildout of new renewables, including Illinois’ innovative coal-to-solar program, could have a speedier impact. MISO may also consider accelerating the interconnection cue for new renewables, which would also be faster to market.
–
Background:
• MISO is much bigger than just Illinois. There are coal retirements throughout MISO, and even if CEJA were limiting new gas buildout, CEJA isn’t influencing that in other states.
• Many providers hedge to protect against price fluctuations. Anticipated costs in Michigan a couple of years ago (which were larger than the current MISO projections) didn’t come to fruition for the vast majority of Michigan MISO customers because of hedging
• MISO and SPP could work together to do enhance power flows between their RTOs. That would help in the short term, as well.
* Illinois Environmental Council…
“The irony of dirty, expensive fossil fuel generators and their allies issuing outdated, hyperbolic warnings on the eve of Earth Day borders on the ridiculous. These are the same old talking points we hear from fossil fuel special interests who aren’t honest with the people of Illinois that fossil fuels were already too dirty and expensive to compete. Frankly, it’s a tired playbook that voters and the General Assembly have already rejected.
“Coal plants were retiring before Governor Pritzker and the General Assembly moved proactively to ensure a healthy and prosperous future for Illinoisans when they passed the Climate and Equitable Jobs Act, a comprehensive short- and long-term plan to replace dirty, expensive gas and coal with a cleaner, less expensive, more reliable energy sector that will create thousands of clean energy jobs and save lives.”
The IEC also noted that “all MISO states in the Midwest are seeing the same price impacts”…
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The week that was
Monday, Apr 25, 2022 - Posted by Rich Miller
* Rather than try to do a bunch of posts about what I missed last week, I figured I’d just show you Heather Wier Vaught’s excellent lobbyist client roundup from Friday afternoon…
GENERAL ASSEMBLY
Schedule: The General Assembly has adjourned, but that doesn’t mean the members are done working – all 177 members return to their districts to handle governmental and constituent issues. Many will begin door-to-door activities in their districts, some in their official capacity and others as candidates because, of course, the June primary campaign season has begun.
Budget Roundup & Credit Upgrade: The Democratic lawmakers continue to focus on the fact they passed a balanced budget for FY23 that puts $1 billion in the state’s reserves, pays overdue bills, and pads pension contributions; whereas, Republican lawmakers believe the state remains ill-prepared and didn’t do enough. (More here and here.) Regardless, credit rating agencies and civic organizations have taken notice and like what they’re seeing. Governor Pritzker signed the FY23 budget, and shortly after that the State received another credit upgrade from Moody’s, the third credit upgrade in a year after going almost 20 years without any upgrades. The upgrade was attributed to revenue growth, fiscal accountability, and increases in pension contributions which demonstrates “increased commitment to paying its single-largest long-term liability.” And others may be on the horizon - according to Eric Kim, the head of U.S. state ratings for Fitch Ratings, Illinois is headed in the right direction. More here, here, here, and here.
Litigation Over Gas Tax Reduction Sticker Requirements: As part of the tax reduction package passed by the General Assembly, the gas tax will be reduced from July 1 – December 31, and gas stations must have signs clearly visible to customers explaining the reduction. Those who fail to display the stickers could be guilty of a petty offense, and the Illinois Fuel and Retail Association, the organization representing gas stations, has a problem with this – they’re taking it to court. More here.
Litigation Over Workers’ Rights Constitutional Amendment: The General Assembly approved a proposed constitutional amendment to appear on the November ballot. The amendment would give workers in Illinois “the fundamental right” to organize and collectively bargain for agreements on wages, hours and working conditions. The Liberty Justice Center and Illinois Policy Institute filed a lawsuit challenging the proposed constitutional amendment, claiming it would conflict with federal labor law and that Illinois doesn’t have the right to pass such a wide reaching law. More here.
EXECUTIVE BRANCH
Governor Drops Masking Requirements: Masks will no longer be required on public transit in Illinois. More here and here.
State Offices Moving: CMS has finished the plans to relocate state agency offices within Chicago. Many of the changes are necessary because of the sale of the Thompson Center. More here.
US Department of Defense New Office in Chicago: The Department of Defense and Governor Pritzker announced that the DoD will have a new office located at the site of the Discovery Partners Institute (DPI). More here.
Grants for Freedom School: The state of Illinois announced a $17 million grant to build the first state-funded network of Freedom Schools in the country. Freedom schools are a nonprofit that dates back to the 1960s, volunteers traveled to the deep south to teach Black students how to read and write. Today, the schools provide summer and after-school enrichment programs with curriculums rich in cultural appreciation and integrated reading to improve literacy skills. The schools also aim to implement strategies that focus on racial justice and equity and help stop the learning gap that occurs over the summer. More here.
JUDICIAL BRANCH
Mask Mandate TRO Overturned: The 4th Appellate District vacated a TRO that prevented the Chicago Public Schools from requiring testing by unvaccinated teachers and staff. More here.
Transportation Lockbox Litigation: The Illinois Supreme Court ruled that Cook County cannot use $250M in transportation funds for other purposes based on a constitutional provision referred to as the Transportation Lockbox. More here.
CAMPAIGN NEWS
Senators Munoz and Landek Withdraw: As expected, Senators Munoz and Landek withdrew their candidacies, leaving their preferred replacements as the only remaining candidates. Javier Loera Cervantes will run for the 1st District and Mike Porfirio will run for the 11th.
State Board of Elections Roundup: The State Board of Elections met on Thursday to decide the fate of numerous ballot challenges, and several likely to result in additional litigation. A few noteworthy:
* Second District Supreme Court: Three candidates were removed, leaving only 2 candidates in each party primary. In the Republican primary, GOP preferred candidate Daniel Shanes will face John Noverini. In the Democratic primary, Elizabeth “Liz” Rochford will face Rene Cruz. The three candidates (Dem Nancy Rotering, GOP Mark Curran, and GOP Susan Hutchinson) were removed based on the number of signatures submitted, and all have indicated they will appeal.
* 1st Congressional District: Two Democrat candidates were removed and one withdrew, leaving an astonishing 17 candidates in the Democratic primary. After 1 withdrawal, there are 3 candidates in the Republican primary.
* A slate of pro-Trump Republicans was removed, including a Senate and gubernatorial candidates. More on the slate here.
Richard Irvin & Ken Griffin: Ken Griffin, Citadel CEO and Illinois’ richest man, has given more than $20M to his preferred Republican gubernatorial candidate, Aurora Mayor Richard Irvin. Aurora has a special meaning to Citadel because it is home to a large data exchange center. While the Chicago Mercantile Exchange is headquartered more than 30 miles away, all the trading happens between computers in the Aurora data center. Because of this Irvin has become a gatekeeper for high-speed traders. This brought on questions about the connection between Griffin and Irvin. More here. Irvin has used much of Griffin’s money to flood Illinois media, spending $11.9M in the last three months on advertising. More here.
Griffin has pumped millions into the state’s gubernatorial race and the national midterm elections, and recently told the Wall Street Journal that he has too much on his plate to consider running for office. More here.
Darren Bailey & Richard Uihlein: Darren Bailey is finding help from Richard Uihlein, founder of the privately held Uline office supply business. This week Uihlein gave Bailey another $2.5M, bringing his total contributions to more than $3.5M. More here.
Congressional Primary: The fight for the Democratic nomination in Chicago’s new Latino-leaning congressional district is getting heated and is one to watch. The new district that extends from progressive neighborhoods to historically conservative towns in DuPage County. More here.
Willie Wilson Runs for Mayor: Millionaire businessman Willie Wilson deposited $5 million into his candidate fund, which will result in blowing caps for all mayoral candidates. If elected Chicago mayor, he will donate the mayor’s $216,210 annual salary to churches and nonprofits. More here. Wilson also announced he will be giving away another $1 million in gas to provide some relief for city motorists; however, this raises questions about Wilson giving things of value to potential voters. More here.
Democratic State Central Committee: At the June primary, Democratic voters will select one female and one male per congressional district to serve on the Democratic Party of Illinois’ State Central Committee (DSCC). An unusually high number of candidates are seeking election to the DSCC. More here. […]
OTHER TIDBITS
Pension Consolidation Behind Schedule: In 2019, the General Assembly passed legislation to consolidate local police and fire funds, with one of the goals being to reduce local costs, and thereby reducing local property taxes. However, a lawsuit and lack of cooperation is delaying the move. More here
WTTW Settlement: Broadcast technicians at WTTW-Channel 11 reached a contract agreement with management yesterday, ending the three-week strike at the PBS Affiliate. Many politicos refused to appear on WTTW shows, such as Chicago Tonight, during the strike. More here.
Covid Mental Health: After two years of the COVID-19 pandemic, people are familiar with the physical effects of COVID. Beyond the physical aspect, Covid has sparked a wide-scale mental health crisis among Chicago area residents. More here.
IN MEMORY
Legendary lobbyist Billy Paige passed away, and the Sun Times has a lovely tribute to her here.
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* Capitol News Illinois…
A Cook County judge found DCFS Director Marc Smith in contempt on Thursday.
It’s the ninth time this year that Smith has faced contempt citations for failing to place children in settings that comply with the agency’s recommendations and court orders.
The latest case involves a 15-year-old boy with special needs who remains in a locked psychiatric unit despite a medical release on Jan. 31. The court ordered on March 14 that DCFS move the child to an appropriate placement by March 25. DCFS had not moved the child as of Friday.
Cook County Public Guardian Charles Golbert represents the boy in court and stated DCFS failed for months to schedule a neuropsychological exam to assess the boy’s special needs. […]
“DCFS is working hard to find placements for these vulnerable children with special needs. Tragically, when Gov. Rauner decimated social services, we were warned that it would be much easier to lose the 500 beds he destroyed than to recreate them again. Advocates warned that these services weren’t like a light switch that could be turned on and off with ease,” [Gov. JB Pritzker’s spokesperson, Jordan Abudayyeh] said.
* CBS 2…
The latest contempt of court finding comes nearly one month after Smith was hit with an eighth contempt of court order over an improperly placed teen, in a case involving a 14-year-old girl who was taken into temporary DCFS custody last September. Since then, she had been moved 21 times. She was stuck in a psychiatric hospital and was then moved around to different shelters, hospital emergency rooms, DCFS offices, and emergency foster placements. […]
CBS 2’s Irika Sargent spoke to CBS 2 Legal Analyst Irv Miller to get some answers.
Sargent: “This is the ninth time that this has come up and he’s been held in contempt, yet, is anything really happening? Are there really any results?”
Miller: “Not so far. This is not criminal contempt. It’s not doing something that is an embarrassment to the court, or, you know, says a swear word to the judge. That’s criminal contempt, where you can be locked up for six months. This is a civil contempt proceeding, where all they’re doing is trying to get him to do something. In this case, the judge is saying to the director of DCFS: ‘Listen, you are obligated to provide appropriate placements for these kids, and you’re not. We’re up to number nine right now. It’s outrageous. Do your job, sir, and if you don’t, there’s going to be some consequences.’”
* Meanwhile, Molly Parker takes a look at DCFS’ probles with recurring cases…
From January 2018 through June 2020, 33% of all confirmed reports of child maltreatment — about 17,500 cases — involved households with at least two previous investigations, according to DCFS investigative case data obtained and analyzed by The Southern Illinoisan and ProPublica. In far southern and southeastern Illinois, the rural area marked by poverty and industry decline that the Schotts have long called home, the rate of repeat investigations was 42%, the highest in the state. The region is served by DCFS’s Marion office and its satellite offices.
Seen one way, those numbers aren’t surprising: They show that many families that come to the attention of DCFS continue to struggle. But among child welfare officials and academics, the volume of repeat cases is a sign that the system is failing to live up to its mission not only to protect children, but to “increase their families’ capacity to safely care for them.” The pattern of repeated investigations involving a single family or child victim is called “recurrence.”
For decades, child welfare officials across the country have used recurrence rates as an indicator of an agency’s performance.
Illinois has long had one of the highest recurrence rates in the nation, according to comparative data from the U.S. Department of Health and Human Services. (The most recent data available is for fiscal 2019.) The data measures confirmed maltreatment that recurs within six months, though both DCFS and the federal government note that there are caveats to the state-by-state comparisons because of differences in how maltreatment is defined and what circumstances prompt an investigation.
Recurrence is complex, driven by a variety of factors. But child welfare experts and families tied up in multiple investigations said DCFS’s resources aren’t adequate. Parents say that classes often aren’t helpful, drug counseling and mental health services can be hard to find, and direct financial aid is insufficient. And those problems have persisted for years. […]
DCFS director Marc Smith said Illinois’ mandates for professionals such as teachers and social workers to report maltreatment accusations are “very aggressive,” leading to increases in confirmed cases of abuse. Nonetheless, he acknowledged the problem, saying the agency will do everything it can to “reduce the recurrence abuse and neglect rate.” […]
Child welfare advocates say that federal and state lawmakers have failed to make more funding available to help families with chronic troubles, and in recent years the department has turned to the default tool for child welfare agencies: removing children from struggling families. That has fueled a 120% surge in the number of children in foster care across the Marion service area over the past decade, even as the total child population in the area has declined. Overall, when children enter foster care in Illinois, they linger there longer than anywhere else in the nation.
*** UPDATE *** Durkin…
House Republican Leader Jim Durkin called on DCFS Director Marc Smith to resign today after it was recently revealed that he had been held in contempt for a ninth time for failing to protect Illinois’ children in care.
“Unfortunately, contempt of court orders against DCFS have become business as usual for the Pritzker administration. Governor Pritzker clearly isn’t bothered by a ninth contempt of court charge against DCFS Director Marc Smith and has done nothing about it – that is simply unacceptable. The Governor has had three and a half years to get this agency under control – he owns this ongoing tragedy. Since the Governor has failed to take action, I call on Director Smith to resign for the good of the children in this state who depend on DCFS.”
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* Tina Sfondeles…
Vowing to repeal key abortion rights protections in Illinois solely by communicating the “ideals of hope,” Republican gubernatorial candidate Darren Bailey on Thursday touted the endorsements of three leading anti-abortion groups — further solidifying his conservative support in a heated primary race. […]
Bailey was less clear how he proposed to outlaw abortion in a state in which Democrats hold supermajorities in both the Illinois House and Senate.
“With communication to the people,” Bailey said. “After all, we are in this position because I’ve been expelling truth, hope, the possibility of restoring them on the way. That’s what’s got us here.
“So, actually standing up and not threatening people but letting them know the ideals of hope, the possibilities of the policy that we can bring together and how we can ultimately work together for actually what everyone’s fighting for, which is women’s health. We can do that without threatening life.”
* More from Tina Sfondeles…
Bailey’s campaign staff is minimal, and he communicates to his supporters via his Twitter and Facebook pages. According to a campaign filing on April 18, Bailey reported $1,039,054.16 cash on hand. A day later, Lake Forest mega donor Richard Uihlein donated an additional $2.5 million.
Still, the cash flow is less than Irvin’s seemingly unlimited campaign coffers from billionaire funder Ken Griffin, who has already given Irvin $20 million. Irvin had about half of that left on March 31, but Griffin is expected to give him more if it’s needed. […]
n stump speeches in Republican-friendly towns Anna, Metropolis and Marion on April 18, Bailey defended himself against what he called “lies” and “nonsense” in statewide television ads. Calling his supporters “great patriots” – borrowing another Trump tactic – Bailey also painted himself as a unifier for those in the state who believe in what he believes in — “conservative, common sense solutions.”
He’s telling his supporters he’s “leading in the polls drastically” and says he thinks it’s “awesome” that Pritzker would rather face him than Irvin in the November election.
While campaigns are conducting polling internally, no independent surveys have been released publicly. Bailey told the Sun-Times he was referring to early surveys that showed him with support in the 30% point range.
* Related…
* Another billionaire throws major cash into the race for Illinois governor: Late Wednesday, conservative megadonor Richard Uihlein, founder of the privately held Uline office supply business, gave $2.5 million to state Sen. Darren Bailey’s effort for the GOP governor nomination. That’s on top of $1 million Uihlein already contributed to Bailey’s campaign.
* Illinois anti-abortion groups back Bailey campaign for governor: The Illinois Federation for Right to Life, Illinois Citizens For Life, and Illinois Family Action joined the downstate Republican for the announcement at Trump Tower. Advocates say Bailey has shown a strong commitment to life and is unafraid to speak about his opinions on abortion.
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A quick look at the new state budget
Monday, Apr 25, 2022 - Posted by Rich Miller
* My statewide syndicated newspaper column which ran during the spring break…
The Illinois Senate adjourned its session April 9 just after 3 a.m. The House adjourned about three hours later, as the sun was coming up.
This wasn’t the first time the chambers worked into the wee smalls to finish their work, including a budget, and it probably won’t be the last, but it’s getting to be a bit much.
Senate President Don Harmon told me afterward that, in the future, he would like to “avoid” adjourning session that late.
Harmon claimed that because of the “remarkably collaborative and cordial working relationship” among Democrats in the Statehouse, the willingness to accommodate each other and to try to make “late adjustments to deal with ideas that came from this part of one caucus or that part of another caucus,” all led to a very long night.
“In the old days,” Harmon said, “a prior speaker might have said, ‘Noon on Thursday, and we’re done.’ This time, we were trying to work and adjust and adapt and add and subtract things at the request of the caucuses. And it did lead to a schedule challenge at the end.”
I can understand that explanation, but it was still severe for a whole lot of folks. Start earlier.
OK, let’s talk about that state budget. I’m going to throw some numbers at you, but I’ll try to make this as simple as I possibly can.
If you want an idea of how crazy this fiscal year has been, just check the projected revenues when the Fiscal Year 2022 budget was enacted last year, and compare them to where they are now.
Last spring, budget-makers settled on a $44.4 billion total revenue projection for FY22. As of last week, that number had risen to a whopping $49.2 billion — an increase of more than $4.8 billion, or almost 11%.
The unanticipated new money didn’t come directly from the federal government. But it was no doubt a result of the federal economic stimulus programs.
The only debt pay down appropriation in the original FY22 plan last year was $928 million to repay interfund borrowing, and no tax breaks were included.
But now because of that new revenue, additional debt payoffs, a larger rainy day fund and mostly one-time tax breaks will total $5.3 billion this fiscal year, a $4.4 billion increase above the originally enacted spending plan (not including the payoff of federal COVID-related loans).
The end of year surplus had been projected to be $1 billion, but that money was rolled into the overall spending plan by the new supplemental FY22 appropriation, and the state will now end this fiscal year in June with just $68 million cash, but with $1 billion in its heretofore empty rainy day fund instead of the $600 million initially proposed.
The new fiscal year, which begins July 1, will see its projected revenues drop by $2.6 billion, or about 5.4 percent from the latest estimate for this fiscal year. But that’s still a 5% ($2.175 billion) increase over the FY22 estimate the budget-makers relied on last year.
Debt pay down and tax relief will fall from a high of $6.37 billion (including about $1 billion to pay off federal COVID-related loans) this fiscal year to just $640 million next fiscal year, a difference of $5.73 billion.
Non-discretionary spending will fall by $51 million net, but most of those spending top lines will see increases. That can happen because, as noted above, the state’s remaining $1 billion in COVID-related debt will be paid off by the end of this fiscal year. Pension payments and transfers out will each rise by about $300 million, and group health insurance payments will increase by about $400 million.
“Discretionary” spending — apart from debt pay offs and tax relief — will increase by about $2.6 billion ($22.289 billion this fiscal year compared to $24.867 billion next fiscal year). The increases include P-12 education ($550 million), higher education ($240 million), human services ($1.2 billion), public safety ($300 million) and general services ($225 million).
The end of the coming fiscal year may be tight on paper. General Fund revenues are projected to be just $2 million higher than total spending next year. Yes, the state will have $1 billion in its rainy day fund just in case, and the state’s bill payment cycle can easily be expanded well beyond its current two weeks.
But a worse than expected economic downturn could still cause some fiscal pain, although not nearly as much as in the days when the state had no cushion at all (or even no budget).
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