Question of the day
Wednesday, Mar 14, 2007 - Posted by Rich Miller
First, the setup…
A week ago it won a narrow endorsement from a key Senate committee despite “no†votes from both Jones and Watson — a political rarity. A nearly identical plan has enjoyed similar initial success in the Illinois House where influential House Speaker Michael Madigan supports the plan and Gov. Rod Blagojevich appears to lean that way as well.
The suburban sponsor of one of the plans said he believes momentum is building and the start of the Cook County ban could prove crucial.
“It helps most definitely,†said state Sen. Terry Link, a Waukegan Democrat. “You know why I think the chances are better? Because of what Chicago and Cook County did, none of their senators and representatives has any reason to vote against it because it’s not going to do anything to them.†[…]
Similarly, a statewide ban would end a “scatter shot†approach across the suburbs where one community banning smoking sees cigarette-toting bar patrons flock to the next community over.
Sixteen states no longer allow smoking in public places. At least 42 Illinois municipalities, including nearly 20 suburban locations, have similar bans in place or about to take effect. There are more than 1,000 municipalities in the state. […]
Preliminary head counts by supporters show there’s not yet enough backing to get a statewide ban approved in the 59-member Illinois Senate. And it’s unlikely that it would be called for a vote unless success is all-but guaranteed.
We’ve already debated a smoking ban several times. Let’s not do it again. Today’s question is a bit different: Would it be better to just ban smoking statewide instead of allowing some towns to gain any economic advantage on others that have already banned consuming the brown weed in public?
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I wrote about this study in yesterday’s Capitol Fax. I was a bit surprised by the results and I’m wondering what you think.
A study shows the number of naturalized citizens in Illinois since 2000 has increased, with the most growth occurring in state legislative districts now held by Republicans.
The numbers, compiled by the Illinois Coalition for Immigrant and Refugee Rights, underscore the changing face of the suburbs as new immigrants increasingly arrive and settle outside of Chicago. The findings imply future voting blocs that could wrestle political power from some longtime Republican strongholds. […]
According to the report, the average percentage increase in naturalized citizens is 62 percent higher in Illinois’ Republican House districts than in Democratic House districts — 22.4 percent vs. 13.8 percent — and 42 percent higher in Republican Senate districts than in Democratic Senate districts — 21.2 percent vs. 14.8 percent.
Of 10 House districts that saw the highest growth rate in naturalized citizens, nine are held by Republicans. The 10 Senate districts that saw the highest growth rate in naturalized citizens have seven seats held by Republicans.
You can download the complete report by clicking here.
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Taxes and budget stuff
Wednesday, Mar 14, 2007 - Posted by Rich Miller
The Post-Dispatch does some fact-checking on the governor’s new TV ad promoting his gross receipts tax…
The ad is also reminiscent of Blagojevich’s earlier campaign commercials in that it engages in what some would argue is a selective presentation of facts.
The ad implies that the scant income taxes often paid by major corporations are all they pay. In fact, those companies’ biggest tax expenses often are property, sales and other taxes.
It also implies the proposed new business tax plan would decrease residential property taxes, but there is no provision in the plan to do that. The ad also implies that the new tax would address the state’s pension crisis; however, that is part of a different Blagojevich plan, involving leasing the state lottery and restructuring debt.
I’m not sure if this was posted yesterday, but Treasurer Giannoulias expressed some serious reservations about the governor’s gross receipts tax this week…
“Our pension system needs help, obviously,†Giannoulias said Monday at a Statehouse news conference. “Health care for everybody would be great. I just, I want to make sure the GRT didn’t place too much of a burden on the consumers at some point. … I want to look at it a little more.â€
Giannoulias also wondered about the effect the tax would have on businesses.
“We definitely don’t want businesses leaving the state of Illinois,†he said.
And the governor told the Associated Press that voters shouldn’t be surprised that he is now proposing a huge tax increase and flatly stated that the gross receipts tax was the only way that schools would get more money…
“This gross receipts — this tax fairness proposal is very much along the lines of what I did for four years. It’s just a bigger, bolder version of it,†Blagojevich said.
In a 45-minute interview, Blagojevich said he’s not sure how much his plan would shrink the gap between the state’s richest and poorest schools, but he warned education advocates that his plan is the only way schools will get more money. […]
The governor said education advocates should back his plan as the only way schools will get more money.
“I’ll never raise the income tax or sales tax. So if we’re going to put money in our schools, this is it. This is the only game in town,†he said.
Finally, the Tribune reports that Gov. Blagojevich isn’t finding a lot of Statehouse support for his proposed gaming tax increase.
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Numbers
Wednesday, Mar 14, 2007 - Posted by Rich Miller
I didn’t see this Bernie Schoenburg column the other day about a recent poll taken by the Illinois Republican Party.
Among the findings of the 600 registered voter poll taken Feb. 20-21 was that the public ain’t exactly enamored with the idea of selling the Lottery. The idea was opposed by 67.3 percent, while just 13.7 percent approved and 19 percent had no opinion.
The other results are fairly predictable…
* Nearly 51 percent of respondents thought Illinois is “headed off on the wrong track,” compared with 36 percent saying the state us going in the “right direction.” The rest didn’t know or didn’t answer.
* Blagojevich was viewed by almost 37 percent in a “favorable” light, including 12.5 percent “very favorable” and 24.3 percent “somewhat favorable;” However, 46 percent were on the “unfavorable” side, including almost 28 percent saying they have a “very unfavorable” view of the governor. Almost 15 percent had no opinion, and yes, 2.5 percent had not heard of him.
* On job approval, 63.2 rated Blagojevich’s performance as “only fair” or “poor,” including 26.8 percent “poor.” There were 31.7 percent on the plus side, with 5.3 percent rating him as excellent, and 26.3 percent calling the performance “good.”
* 26 percent said state government “works well,” while 65.5 percent said it “needs reform.”
* Just under 20 percent said Blagojevich has “restored honesty and integrity to state government,” while 66.5 percent said it has been “politics as usual” under him. Nearly 14 percent didn’t know or didn’t answer.
* In a question that could be worded in different ways, 77.2 percent said they disapproved of the governor “taking money from the state employee pension fund to help balance the state budget.” In recent budget years, some money that would have gone to the fund was used for other purposes, but it wasn’t taken from the base. So this wording may paint too dismal a picture. […]
* Respondents were asked about a gross receipts tax on business “to pay for state subsidized health insurance for anyone in the state who currently does not have health insurance,” which is somewhat different from the plan the governor announced, which would also help some people pay for insurance they have.
The question also says the tax would end up “raising prices for consumers on all goods and services,” which doesn’t take into account exemptions announced by the governor last week. Given the flaws in the question, disapproval of the idea came in at 50.7 percent, while 33.2 percent approved.
* Just for fun, perhaps, the Republicans threw in a question asking if the state Constitution should be amended to allow voters “the right to recall state elected officials and vote them out of office before their term expires.” In all, 73.3 percent approved, while 13.3 percent disapproved and 13.3 percent didn’t answer.
You can download the poll by clicking here.
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Morning Shorts
Wednesday, Mar 14, 2007 - Posted by Paul Richardson
* Governor returns to center stage to campaign for healthcare plan
* Budget leaves out harbor funding
* Plan to raise casino revenue might be gamble for governor:
“His answer to everything seems to be a tax increase,” she said. “The riverboat industry is a huge industry in the state of Illinois and provides a lot of income and a lot of jobs.”
* Analyst sees budget as ‘lifeboat’ for state GOP
* Slick ads promote business tax plan
* Budget advocates, opponents square off
* Businesses forsee hit if state passes payroll tax
* Cindy Richards: Guv’s budget lands in fair territory
The business community needs to stop stonewalling any idea that comes out of the governor’s mansion or propose a realistic plan that ensures all businesses pay their share of state bills.
* Governor’s plan sparks PR battle
* Former newsman goes to bat for governor on healthcare
* ComEd President: Rate freeze would bankrupt ComEd and cripple the state
* AG Madigan thinks Ameren downgrade may have been orchestrated
“The attorney general is concerned that the relationship between the utilities and the credit rating agencies is not nearly as independent as the utilities claim,” Ben Weinberg, chief of the public interest division for Madigan’s office, said Tuesday.
* Editorial: Ameren ups the ante in rate game
* Editorial: Voting on ICC members won’t help consumers
* Lawmakers not discouraged by Ameren’s ‘junk’ status
* AG Madigan and Patrick Fitzgerald announce $344 million judgment against Medicaid HMO [press release]
* The mother of all judgments; company emails
The case, brought by a civil whistleblower and then joined by federal authorities and the state attorney general’s office, charged that Amerigroup cherry-picked “healthies” and purposely avoided women in their third trimester of pregnancy because they cost more to insure
* U.S. stops payments to Tinley Center
* Senate committee passes .50 caliber rifle ban
* Bill would define lawsuit settlements as public information: “The public has a right to know about where their tax dollars are being spent and why a case had to be settled and who’s wrong.”
* Legislation regulating nurse/staff ratio has only tepid support
* Daley always knew city had to pony up for Olympics
In a stuttering response to a reporter’s question, Daley said he knew “at the beginning” of the bidding process that city money would have to be put on the table. Daley said he kept it quiet — not because he wanted to get past the mayoral election — but because “we’re not putting any direct money into it.”
* City Council takes up Olympic funding
* Daley on blame for postal woes: Feds are ‘Dysfunctional’
* The promise of reform at Cook Co. juvenile detention center
* U of I board buries the Chief
* ‘Uncle Amrish’ helped raise $500,000 for governor
* Immigrant rights groups say suburbs need to start listening
* Carol Marin: FBI inquiries give county officials reason to sweat
* Michael Sneed: Tillman, Daley, Inspector General Hoffman
* Editorial: Merc, CBOT merger good for Chicago
* Excerpts from recent editorials: HPV, budget , electric rates
* City Inspector named in bribe case, said to have pocketed $16,000
* Cooking county smoking ban starts Thursday
* West Chicago to get tough on landlords with code violations
* Smoking laws in some Southland towns
* Ousted candidates back on ballot in Summit Hill
* New Lennox mayor position not likely to be made full-time: I have a lot of time with a flexible schedule to be here when the village needs me, but I don’t think it needs an $80,000-a-year mayor’s salary.”
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Daley blasts guv’s rhetoric, plans
Tuesday, Mar 13, 2007 - Posted by Rich Miller
Mayor Daley let loose on the governor today, noting that he favors a tax swap and pointing out that the governor hasn’t yet guaranteed any property tax relief. But what got his dander up the most was the rhetoric used by the governor in his budget address…
“Business people are not fat cats. I object to saying that … The idea of trying to divide businesses out of this city and state is a serious mistake. Why? They don’t have to be here. They can go to Wisconsin. They can go Indiana. They can go to India. They can go to China. So, if you want to beat up businesses, go beat them up and when they leave, just wave to them and they’re going to wave back to you,†Daley said.
“I have a good working relationship [with business]. That doesn’t mean I [don’t] differ with business on issues. But I don’t have to publicly condemn them continually. I think it’s a mistake. There has to be a meeting of the minds in regards to education. I think the business community wants to improve education. But…you don’t have to go and beat them up.â€
And on the gross receipts tax…
“The idea is good. But, how does it effect real estate taxes? I’m gonna increase gross receipts. I’m gonna increase real estate taxes. I’m gonna increase all the other taxes. So, where’s the benefit to the public in the long-run? And how are people gonna pay that? Are they gonna pass this on to consumers? If business can pass it on to consumers, then you’re gonna hit the consumers twice,†he said. […]
[Asked] if he would favor an alternative to the Blagojevich plan, Daley said, “There’s a lot of alternatives down there already. Don’t worry. The income tax. A lot of things. At least people are willing to present a plan. That’s what we want. You have to educate our children. We don’t even have a full-day kindergarten in Illinois. We’re supposed to be progressive. We’re supposed to be a blue state. We are not progressive in education.â€
Did I just see Mike Madigan smile that Cheshire Cat grin of his?
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Question of the Day
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
It appears that the security camera requirement for Chicago businesses is running into opposition:
Chicago aldermen gave a cold reception Monday to a long-stalled proposal that would require all businesses in the city open late to install security cameras.
Ald. Ray Suarez had tinkered with the ordinance, which he first proposed more than a year ago, in hopes of gaining more support.
“We tried to amend certain parts where people had concerns,” said Suarez (31st). “This is not about punishing people or putting a burden on anybody. This is about safety.”
Opponents of the ordinance conceed the protection benefits from the cameras, but they are worried by the ever-growing reach of the government:
“I’m very concerned about the slippery slope we tread on when we talk about foregoing liberties for the sake of safety,” said Ald. Freddrenna Lyle (6th). “I think it is absolutely the wrong decision.” …
Ald. Tom Tunney (44th), owner of the popular Ann Sathers restaurants, said he thought the proposal was “overreaching.” …
Police and other city emergency departments said they favor the bill because it would help fight crime and response to disasters, while business groups testified in opposition.
This debate between “public security” and “freedom” seems to bear its head quite often with issues like this: seat belt laws, cell phone bans, smoking, HPV vaccine, on and on…
Question(s): On what side of these issues do you usually fall, security or liberty? Somewhere in the middle? What general principles should guide these government decisions?
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The kid’s alright
Tuesday, Mar 13, 2007 - Posted by Rich Miller
Whatever might have been said about Alexi Giannoulias last year, he’s certainly getting off to a fine start as state treasurer. First it was cleaning up the Cellini hotel mess, now it’s a much better deal - and a bunch of new scholarships to boot - for the college savings program Bright Start.
Until recently, the $2.2 billion fund was managed by Baltimore-based Legg Mason, whose underperfoming funds placed the Illinois education savings program 48th out of 49 in a ranking of college savings programs, according to Savingforcollege.com, an independent analysis firm based in New York. Bright Start has been running for about seven years.
Following a competitive-bid process, the state signed a seven-year contract with Oppenheimer Funds Inc., headquartered in New York, which will lower existing fees and offer three times as many portfolio options for families, said state Treasurer Alexi Giannoulias.
For example, under the new program, families contributing $3,000 a year with an 8 percent rate of return will save a total of more than $5,000 in fees by the time their child is 18, according to Giannoulias’ office.
The transfer will occur over the next few months at no cost to the families or the state; Oppenheimer will absorb all transaction costs, Giannoulias added. […]
Also included in the contract with Oppenheimer is the formation of a $3.5 million scholarship fund for Illinois students. Giannoulias said his office would work over the next few months on the qualifications for the scholarship money, set to be around a total of $500,000 a year.
I don’t usually hand out praise, but I can'’t say enough positive things about Giannoulias right now. He’s vastly exceeding expectations so far, and the reports that I get from inside the office are that he’s running a highly professional show and resisting entreaties from political types to install their people.
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Caught in a lie?
Tuesday, Mar 13, 2007 - Posted by Rich Miller
This could end up being a very big story.
As I’ve told you before, the attorney general is investigating whether Ameren improperly pushed its substantial discount for all-electric homes and businesses on consumers long after it knew that the break was being eliminated. The company denies it…
Leigh Morris, a spokesman for Ameren, said the electric utility had quit more than a decade ago promoting its all-electric discount, although it remained in existence until Jan. 2, when new higher rates took effect.
But some customers say otherwise…
But other AmerenIP customers interviewed by the News-Democrat contend that as recently as last year the utility had tried to encourage them to buy houses with all-electric heat, while keeping quiet about the discount’s impending termination. […]
“We met with Ameren and we said, ‘What is the most economical way to go?” Nuelle said. “And they said, ‘We have a special discounted rate for all-electric buildings. It’s going to save you this much money per kilowatt hour.’ Well, we went with it.”
But since the new electric rates went into effect in January, along with the end of the all-electric discounted rate, the building’s power bill jumped to $6,900 in February from $2,800 the previous February, Nuelle said.
Read the whole thing.
There’s lots more Ameren coverage from late yesterday - Moody’s downgrading its credit rating and Ameren getting approval for and then yanking a rate relief plan - down below. Just click here if you don’t feel like scrolling.
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Taxes and health care
Tuesday, Mar 13, 2007 - Posted by Rich Miller
* My syndicated column this week was about the governor’s amazingly quick turnabout on property tax relief.
Gov. Rod Blagojevich proposed no direct property tax relief during his annual budget address at the Statehouse last week, but he told me in an exclusive interview afterward that he would back the idea if a crucial Senate Democrat demanded it.
* Cheryle Jackson, who was the governor’s press secretary until recently, didn’t have very kind words for the governor’s gross receipts tax during an interview with the Chicago Defender…
Chicago Urban League President Cheryle Jackson told the Defender that she likes what Blagojevich is trying to do, but she doesn’t agree with the taxation of businesses, which would include some small businesses. […]
“The number one creator of jobs in the Black community is Black businesses. Black business owners are the most important factor in creating jobs in the Black community. The Chicago Urban League’s main priority is to help Black businesses grow.”
“What this legislation does is penalizes the very thing that is the answer to economic development and job creation in the Black community,” Jackson continued. “It penalizes and discourages the very thing that is going to increase more jobs and increase more development in the Black community.”
Jackson would like the governor focus on a plan such as property tax relief, which she said would bring more economic development and money for education to African American communities.
* A story in the SJ-R yesterday reported on how Indiana got rid of its gross receipts tax. But buried way down was this…
Illinois business leaders predict a gross-receipts tax will lead to lost jobs and hurt economic activity. However, Indiana officials admit it’s difficult to document that getting rid of the tax has led to job growth and increased economic activity.
* I’m not sure I linked to this story before the budget address, but it was a good piece about a study done on corporations that don’t pay Illinois income tax…
The Citizens for Tax Justice study found Boeing did not pay income taxes to any state during two of the three years studied, 2001 to 2003. During the two years in which Boeing did not pay state corporate income taxes, the company turned a combined profit of $3.1 billion, McIntyre said.
Other profitable Illinois-based corporations such as Caterpillar, Tribune Co., Sears and Sara Lee successfully avoided paying any state’s corporate income taxes during at least one year of the period studied by Citizens for Tax Justice.
Although tax returns for companies, as well as individuals, are private, the institute was able to determine whether companies were able to avoid state taxes by analyzing documents publicly traded companies must file with the Securities Exchange Commission.
Is it any wonder why the Trib flip-flopped on the GRT?
* The Daily Herald has a brief story about the new ad that Gov. Blagojevich appears in on behalf of his tax hike.
* Insurance giant Aon has some kind words for the governor’s health insurance plan.
Aon applauds Governor Rod Blagojevich’s efforts to craft a health care plan that would provide affordable coverage options to the uninsured and underinsured, and address catastrophic illness and injury. Aon’s own Health Care Trend survey warns about the impact of double-digit health care rate increases.
* Stephanie Silvers of Small Newspapers has a couple of very good stories about the state’s underfunded, slow to pay Medicaid system that patients find bewildering an unhelpful. State Medicaid system overwhelmed… Dentists hard to find under Medicaid
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Somebody doesn’t know the difference between “may” and “shall.”
A Champaign attorney argues the University of Illinois violated state law by doing away with the Chief Illiniwek mascot and filed a lawsuit Monday to save the American Indian mascot.
In his lawsuit, John Gadau cites a 1996 state statute in which the General Assembly declared ‘’Chief Illiniwek is, and may remain, the honored symbol'’ of the university.
When university board of trustees Chairman Lawrence Eppley in February announced the end of the chief’s performances at sports events, Gadau argues, Eppley and the board of trustees violated that statute.
Gadau’s lawsuit, filed in Champaign County Circuit Court, asks a judge to nullify last month’s decision.
The full statute can be found here.
If the General Assembly had passed a law stating that the Chief “shall remain” the mascot, symbol, whatever, then Gadau would have a point. As it is, the statute means nothing. It is as symbolic as a goofy white boy dancing at halftime, or this lawsuit.
Meanwhile, the final end is near…
The University of Illinois Board of Trustees will consider two resolutions at its meeting Tuesday that offer very different paths for the future of Chief Illiniwek — one would formally retire the controversial symbol, while the other would renew the fight to keep it.
The first resolution, submitted by University President B. Joseph White for Tuesday’s meeting in Urbana, would formally ratify board chair Larry Eppley’s Feb. 16 decision to stop the controversial figure from performing at Illini sporting events.
The other resolution, which probably will not pass, would have the trustees join the lawsuit against the NCAA filed by two former mascots. The former mascots, by the way, want the university to give them the Chief trademark.
*** UPDATE *** What’s done is done…
The University of Illinois swept aside the last vestiges of Chief Illiniwek Tuesday, voting to retire the mascot’s name, regalia and image.
The resolution lets Chancellor Richard Herman decide the details such as how and when the Chief Illiniwek name and image would stop being used and licensed to apparel makers and others.
The school would continue to call its sports teams the Fighting Illini under the resolution.
Trustee David Dorris offered the only dissent Tuesday among the 10 voting members.
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Budget News
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
* Blagojevich tax hike may ease property tax burden
* Cross disappointed governor didn’t mention property tax relief in plan
* Governor’s plan has some appeal
“It will not be a burden on small businesses,” Batchelov said. “But what it will do is get the larger corporations who make from $1.5 million, and up, profit from their merchandise pay a fair share.”
* Illinois Treasurer Giannoulias is cautious about supporting the GRT
“Our pension system needs help, obviously,†Giannoulias said Monday at a Statehouse news conference. “Health care for everybody would be great. I just, I want to make sure the GRT didn’t place too much of a burden on the consumers at some point. … I want to look at it a little more.â€
* Republicans voice disapproval with governor
Cross joined fellow GOPs, State Sen. Dave Luechtefeld, Carbondale Mayor Brad Cole and 87th district Rep. Bill Mitchell in Carbondale Saturday to call on Blagojevich to start showing some leadership, stop expanding programs the state can’t pay for and end the tirade against businesses they fear will drive more jobs out of Illinois.
* Cross attacks tax increase plan in visit to Marion
* Editorial: Better schools, more healthcare coverage with Blagojevich plan
If he can build public support and successfully steer it through the General Assembly, the people of Illinois could enjoy a healthier, more prosperous future, and the state could set an example for the rest of the nation.
* Kane County Editorial Cartoon: Blagojevich plan
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Morning Shorts
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
* Prosecuters seek to reduce Falwell prison term by 6 months; helps feds with 5 cases
* Chicago postal officials promise to correct problems
A U.S. Postal Service audit ranks overnight mail delivery in the city as the worst in the nation. City and state lawmakers are calling for improvements.
* Sun-Times Editorial: From pony express to phony express
* Editorial: Postal service needs to improve
* States tackle texting behind the wheel
* Medicaid working better but some still leery
* Blagojevich announces $3.2 in federal housing rehabilitation grants
* Mayor Daley calls for increased city recycling
* Rothenberg Political Report: For the Thousandth Time: Don’t Call Them ‘Push Polls’
* Kiley Developmental Center set up to fail with inadequate funding and staffing
* Early primary push upends 2008 presidential campaign plans
* Pat Quinn says Illinois should think green, use resources
* Governor wants more middle managers in prison system
* Using google earth for census data
* Illinois to drastically cut back the number of coal-fired power plants
* Left lane violators unlikely to be issued a ticket
* Get use to Giuliani visiting Illinois
* U.S. prosecutor Patrick Fitzgerald has built a reputation for going after the influential
* Tardy high school PSAE scores show few gains
* U of S faculty afraid of losing out to “Global Campusâ€
* Mark Brown: Aldermen reconcile their Olympic dreams with reality
Over at the City Council on Monday, the aldermen were in a pickle. They were expected to give their support to a $500 million city financial guarantee for operating cost overruns for the 2016 Olympics, even though most of them hadn’t been told such a possibility existed until a few days ago.
* Tax money spent on west side aquatic center in Olympic plan?
* State Senator’s brother back at city job after fight
* Rolling Meadows and Arlington Heights weigh smoking ban effect; 1 to gauge sales-tax changes; other wants statewide prohibition
* Editorial: Public servants should be accessible to the public
* States shouldn’t tax military pay away from home
When it comes to taxing military pay, Illinois has it right - and other states should follow our example.
Illinois is among only five states that exclude military pay from state taxation.
* Bill aims to give cyclists more room on the road
* Davlin, Strom meet in 1st Springfield mayoral debate
* Election ruling assures Ald. Solis another term
* Jackson Jr. endorses Dowell over Tillman
* Egan endorses Vi Daley reelection
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