On Thursday, legislation to extend the successful “Batinick Buyout” program for state pensions was signed into law by Governor Pritzker. House Bill 4292 passed the House and Senate with bipartisan support and Rep. Mark Batinick (R-Plainfield) was a chief co-sponsor.
“I said back in 2018 when the Batinick Buyout first passed through the General Assembly that we had to make changes to our pension system if we were going to solve our long-term fiscal problems in Illinois,” said Rep. Batinick. “I am delighted to see this program extended after successful implementation that has saved the state over $1 billion on our unfunded pension liability. I look forward to seeing how much more we can save to finally overcome and move past our state’s longtime pension crisis.”
HB 4292 amends the General Obligation Bond Act and authorizes an additional $1 billion to State Pension Obligation Acceleration Bonds. These bonds make accelerated pension benefit payments and participants can receive these payments instead of pension benefits or for reductions in the increases to their annual retirement annuity and survivors’ annuity. This extension is now June 30th, 2026.
Rep. Batinick originally introduced this pension reform language in 2018, which closely resembled a plan he introduced in 2016 and 2017. At the time, he was the first person in the United States to propose such a concept in bill form. Rep. Batinick is also the House Republican Spokesperson for the Personnel & Pensions Committee.
* More…
“Responsible fiscal management means taking every action possible to address our pension obligations while honoring promises made to current and retired workers – promises made by governors and legislators on both sides of the aisle,” said Governor JB Pritzker. “The expansion of this bipartisan pension buyout program builds on Democrats’ work this session to save taxpayers nearly $2 billion in pension liabilities by paying down our pension debt in advance.”
“The COLA buyout program is a win-win for the state’s finances and our retirees,” said State Representative Bob Morgan (D-Highwood). “I’m proud of this bipartisan effort that frees up nearly $100 million in our Budget annually to address much-needed investments in education and human services.” […]
“When legislators of both parties can come together on a plan to save taxpayers money by reducing the state’s pension shortfall, this is an occasion to celebrate,” said Illinois State Comptroller Susana A. Mendoza. “This is yet another example – along with a billion dollars for the Rainy Day Fund and half-a-billion in additional pension payments – that show Illinois is saving, not spending, and earning credit upgrades.”
“The savings generated by the pension buyout program is big point of pride for me,” said Illinois Senator Robert Martwick (D-Chicago). “When this idea was formed by myself and Rep. Batinick, we put aside our different ideas on partisan issues, and worked together to find a bi-partisan solution for the state’s most persistent and crippling financial problem. When Democrats and Republicans work together on these core financial issues, every Illinoisan benefits.”
“This bill is part of a commonsense solution to help us meet our pension obligations and reduce our unfunded liability, and I’m glad to see it signed into law today. I hope Illinoisans see this as another sign that we are putting our state back on the path of fiscal responsibility and making real progress for our residents.” -State Representative Margaret Croke (D-Chicago).
“By providing an additional $1 billion of State Pension Obligation Acceleration Bonds, we’re reducing long-term pension liabilities and furthering our state’s commitment to fiscal responsibility,” said State Representative Sue Scherer (D-Decatur). “This is an important piece of legislation that not only benefits the state, but also benefits state employees who have more of an opportunity to receive accelerated pension benefits.”
State employees will now have the opportunity to opt for a pension buyout for an additional two years, through June 30, 2026. $1 billion in bond authorization was approved to fund these buyouts. Previously the buyouts were offered only through June of 2024.
U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Senator Tammy Duckworth (D-IL) today released the following statement regarding Boeing’s plans to move its headquarters from Chicago to Washington, D.C.:
“Boeing’s decision to leave Illinois is incredibly disappointing—every level of government in our state has worked to make Chicago and Illinois the perfect home for Boeing’s headquarters for the past 20 years. We are working together to ensure Boeing leadership both understands how harmful this move will be and does everything possible to protect Illinois’s workers and jobs.”
In 2001, Durbin initiated two letters to then-Boeing Chairman and CEO Philip Condit when the company announced plans to leave the Seattle area, including a bipartisan letter that was signed by 17 Illinois Members of Congress.
Two decades ago, Illinois officials offered Boeing a $51 million package of tax breaks and incentives to lay down roots in Chicago. The state forked over $30 million, down from its original offer of $41 million that lawmakers ultimately deemed too hefty. An additional $21 million of deal sweeteners came from Chicago.
In exchange, Boeing was supposed to bring 500 top-level jobs to its new home—or at least that’s what public officials had advertised. Subsequent reporting by the Better Government Association shows Boeing has received more than $60 million in tax breaks despite falling short of the 500 job mark in at least four of the years since it moved. Politicians and Boeing apparently had different understandings of how to reach that metric and which employees would count toward fulfilling it, such as positions that are technically located in Gary. There were also different interpretations about whether hiring here or transferring people from Seattle would both meet the agreement.
Worries that Boeing might leave Chicago have been swirling for more than a year, since the company decided to review its real estate amid the upheaval from COVID-19 and the 737 Max debacle that sapped the company’s profits. Reuters last year called Boeing’s headquarters a “ghost town.”
* Background is here if you need it. This means all three rating agencies have now upgraded the state’s grade. Moody’s has upgraded the state twice in less than a year. Fitch…
Fitch Ratings has assigned a ‘BBB+’ rating to the following State of Illinois’ GO bonds:
–$925 million series of June 2022A;
–Up to -$900 million refunding series of June 2022B.
Additionally, Fitch has also upgraded the following state of Illinois ratings:
–Issuer Default Rating (IDR) to ‘BBB+’ from ‘BBB-’:
–GO bonds to ‘BBB+’ from ‘BBB-’;
–Build Illinois senior and junior obligation sales tax revenue bonds, which are linked to the state’s IDR based on state-dedicated tax analysis, to ‘A’ from ‘BBB+’;
The Rating Outlook is Stable. […]
ANALYTICAL CONCLUSION
The upgrade to ‘BBB+’ reflects fundamental improvements in Illinois’ fiscal resilience including full unwinding of pandemic-era and certain pre-pandemic non-recurring fiscal measures, meaningful contributions to reserves and sustained evidence of more normal fiscal decision-making. The ‘BBB+’ IDR also reflects the state’s elevated long-term liability position and resulting spending pressure, as well as a long record of structural imbalance primarily related to pension underfunding. Illinois’ deep and diverse economy is only slowly growing, but still provides a strong fundamental context for its credit profile.
DEDICATED TAX ANALYTICAL CONCLUSION
The Build Illinois bonds’ ‘A’ ratings reflect Fitch’s view that pledged state sales tax deposits will grow with inflation. The security structures can withstand a substantial level of decline and still maintain sum-sufficient debt service coverage. However, Fitch caps the ratings on the Build Illinois bonds at two notches above the state’s ‘BBB+’ IDR based on our assessment of security-specific considerations. This is below our assessment of the underlying credit quality of the dedicated tax bonds.
Economic Resource Base
Illinois’ economy is centered on the Chicago metropolitan area, which is the nation’s third largest and a nationally important business and transportation center. The state’s GDP ranks fifth largest amongst all U.S. states. Economic growth lags that of the U.S. as a whole with population stagnation and relative labor market weakness.
KEY RATING DRIVERS
Revenue Framework: ‘aa’
Over the long term, Fitch expects Illinois’ broad revenue base, primarily income and sales taxes, to capture the breadth of its economy and to track its slow growth trajectory. Illinois has unlimited legal ability to raise revenues.
Expenditure Framework: ‘a’
Illinois has adequate expenditure flexibility, with some of the broad expense-cutting ability common to most U.S. states. The natural pace of spending growth will likely outpace revenue growth, requiring ongoing and active budget management. Carrying costs are higher than all other states and contribution demands for retiree benefits will continue to be a particular pressure point as these benefits are constitutionally protected.
Long-Term Liability Burden: ‘a’
Long-term liabilities are an elevated but still moderate burden on Illinois’ significant resource base. Constitutional limitations suggest Illinois has very limited flexibility to modify existing pension and other post-employment benefit (OPEB) obligations.
Operating Performance: ‘bbb’
Illinois’ operating performance has improved but remains weaker than other U.S. states. Steady reduction in accounts payable, retirement of outstanding budgetary liabilities and smoother fiscal decision-making have become sustainable. Sizable gaps in pension funding and limited resilience to future downturns, despite recent additions to reserves, persist.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
–Sustained progress towards structural balance and improved liability management, primarily through narrowing the wide gap between actual and actuarially determined pension contributions;
–Material improvements in fiscal resilience, primarily through building reserves to, or approaching, double currently forecast levels.
–For the Build Illinois bonds, an upgrade to the state’s IDR.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
–Reversion to previous pattern of irresolute and contentious fiscal decision-making that could include delayed budgets with unsustainable fiscal measures such as deeper pension funding deferrals or sustained increases to accounts payable or other budgetary liabilities.
–For the Build Illinois bonds, deterioration in the state’s IDR given the linkages, or material weakening of pledged revenue coverage and structural resilience. Fitch considers this unlikely given the limitations on additional debt issuance. […]
CURRENT DEVELOPMENTS
Economic Recovery Picks Up; Continues to Trail National Pace
Illinois’ employment recovery has modestly accelerated in recent months, but overall recovery still lags the national rate. Through March 2022, Fitch’s analysis of BLS data indicates the state had recovered 82% of the jobs lost at the start of the pandemic versus the national recovery rate of 93% through the same period. Over the past six months, Illinois has gained jobs at a faster clip with its recovery rate up more than 18 percentage points (pps) versus 16 pps nationally.
The state’s official March monthly unemployment rate of 4.7% was higher than the national 3.8% rate that month. Illinois’ Fitch-adjusted unemployment rate (which adds back the declines in labor force since February 2020) was higher at 6%, indicating the state has seen material weakening of its labor markets over the course of the pandemic, which could be a factor in Illinois’ slower employment recovery.
Revenue growth well ahead of budgeted expectations in fiscal year 2021 and 2022 (ending June 30) and prudent expense management allows the state to accelerate repayment of various budgetary liabilities. Revenue performance largely reflected economic activity rebounding much faster than anticipated, with federal economic support playing a key role. Illinois currently estimates fiscal 2022 net individual income tax (IIT) revenues of $22.7 billion will be $1.9 billion higher than the enacted budget, a 9.3% improvement. The estimate for net sales tax revenues similarly forecasts fiscal 2022 growth more than 10% ahead of the enacted budget estimate, by nearly a billion dollars. Corporate income taxes, typically the most volatile and least predictable of the primary tax revenues, is estimated to end $1.6 billion ahead of budget. In total, Illinois currently projects fiscal 2022 state general funds tax revenues will end the year at $41 billion, $4.5 billion above the June 2021 estimate of $36.5 billion.
Recently released April 2022 revenue collections reported by the state legislature’s committee on government forecasting and accountability (CGFA) suggest final fiscal 2022 collections will be even stronger. Through April, a key month for income tax collections, CGFA reports fiscal 2022 state general funds receipts, net of refunds and statutory distributions for income and sales taxes, up more than 16% yoy. CGFA notes several reasons for the sharp increase in April monthly receipts (69.1% yoy) including a change in tax filing deadlines in 2021, which suggests final year results will be somewhat lower than the 16% YTD gains. Through March, CGFA reported a yoy increase of 9.4%.
With operating expenditures generally in line with the enacted budget, the state was able to direct the revenue surplus for the current year towards paying down liabilities including the remainder of its federal Municipal Liquidity Facility (MLF) loans ($1 billion), outstanding interfund borrowings ($929 million - most of which was incurred pre-pandemic) and longstanding unpaid health insurance bills for employee and retiree healthcare ($898 million, also incurred pre-pandemic). Additional measures taken include paydown of a liability for the College Illinois program, a contribution to the state’s budget stabilization fund and primarily one-time tax relief measures as described further below.
The state’s trend in accounts payable has improved for several years, with the pace of repayment accelerating since the start of calendar 2021. As of March 31, 2022, the Comptroller’s Debt Transparency Act (DTA) report indicated an approximately $3.6 billion general funds bill backlog and a 12-month moving average (to adjust for seasonality) of $4 billion. This is down 44% from the pre-pandemic (February 2020) 12-month moving average of $7.1 billion. The March DTA report also notes $48 million in reported pending late payment interest penalties, down 85% from February 2020 ($319 million).
According to the March report, the Office of the Comptroller’s bill payment cycle, or the age of the state’s oldest unpaid general funds voucher for external vendors was 18 business days as of March 31. The Comptroller reports this metric has steadily decreased (aside from seasonal variation) from a peak of 210 days in November 2017.
Illinois’ enacted fiscal 2023 budget, along with supplemental fiscal 2022 budget changes, solidifies the state’s recent financial operating performance improvements but also maintains some fundamental weaknesses. The state expects to end the current year having fully repaid a series of outstanding budgetary liabilities while also making steady progress in reducing its account payables to essentially normal levels with an external vendors bill cycle well below 30 days. The 2022 revised and 2023 enacted budgets also deposit just over $1 billion into the state’s budget stabilization fund (BSF), which had been essentially zeroed out since fiscal 2017. While significantly improved, the planned contributions would leave the BSF at a still modest 2.2% of projected total general funds expenditures in fiscal 2023.
The 2023 enacted budget also includes increases over the current year originally enacted budget in all major spending areas including education ($767 million, with $350 million in evidence-based funding for K-12), human service ($1.3 billion) and healthcare ($552 million). Total general funds expenditures rise $3.7 billion from the enacted fiscal 2022 budget. General funds revenue sources rise $4.1 billion in the 2023 budget, yielding a roughly $440 million surplus, with $312 million allocated towards the BSF. $1.8 billion of tax relief measures in the revised fiscal 2022 and enacted 2023 budgets is concentrated in one-time measures in fiscal 2022, drawing on the large revenue surplus. Only $100 million for an increase to the earned income tax credit is an ongoing tax policy change.
While the fiscal outlook continues to improve, structural gaps remain, primarily underfunding of pension contributions. The 2023 budget fully meets Illinois’ statutory obligations which are based on funding up to target of 90% funding of the state’s pension liabilities by 2045. For fiscal 2023, the CGFA estimates a gap of $4.1 billion (roughly 10% of state sourced general funds revenues) between the statutory state pension contributions of $10.8 billion and the actuarially determined contributions (ADC). The 2022 budget revisions and the 2023 enacted budget includes a total of $500 million in supplemental pension contributions, over the statutorily-defined level, but still well below the actuarial level necessary to fully fund pensions over time.
Measured Initial Use of Federal Aid
Illinois’ plans for spending American Rescue Plan Act (ARPA) state fiscal recovery fund aid is focused on one-time investments rather than recurring operating needs. In the fiscal 2022 budget, the state allocated $2.8 billion of Illinois’ $8.1 billion ARPA state fiscal recovery fund (SFRF) distribution on infrastructure and other one-time, or temporary pandemic-specific needs. Additionally, the state created the Essential Government Services Support Fund (EGSSF) and anticipates flowing $1.5 billion of the ARPA aid through the fund for operating needs. The $1.5 billion is more than offset from a budgetary perspective with repayment of the MLF loan (approximately $1 billion) and interfund borrowing ($928 million), though ARPA aid will not be used for the actual repayments.
In the spring 2022 legislative session, the state also allocated $2.7 billion to repay Illinois’ loan from the federal government’s unemployment trust fund account. Additional one-time uses for healthcare facilities, small businesses and affordable housing essentially round out the state’s use of SFRF aid. Illinois also has access to $254 million from the ARPA’s Coronavirus Capital Projects Fund for infrastructure projects.
Bottom line is Fitch wants the state to stay the course, avoid going back to the endless Blagojevich/Quinn/Rauner (especially) budget wars and double the rainy day fund to $2 billion.
…Adding… Speaker Welch…
Less than a year ago we celebrated Illinois’ first credit rating increase in more than 20 years. Today, we’ve received multiple upgrades from all three credit rating agencies. Thanks to steadfast and responsible budgeting, Democrats continue to improve our state’s fiscal health. More work remains, but we’ve promised to restore financial stability and that’s exactly what we’re delivering.
…Adding… Gov. Pritzker…
Governor JB Pritzker hailed a two-notch bond rating upgrade from Fitch Ratings, Illinois’ fifth notch upwards in less than a year, saying it validated the strong and responsible fiscal management he’s implemented since taking office.
The Fitch upgrade is the first for Illinois’ GO bonds since June 2000 and follows an upgrade by Moody’s Investor Service last month, the second such upgrade by Moody’s in 10 months.
“Balanced budgets four years in a row, paying the state’s bills on time, early repayment of pandemic-related borrowing, clearing out debts left by previous administrations, making higher-than-required pension payments, setting aside $1 billion in savings for a rainy day — this is what responsible fiscal management looks like,” said Governor JB Pritzker. “Working with the General Assembly and my fellow constitutional officers, with dedication and determination we have turned Illinois from a deadbeat state into a fiscally responsible state that is attracting business from around the globe.”
“The upgrade to ‘BBB+’ reflects fundamental improvements in Illinois’ fiscal resilience including full unwinding of pandemic-era and certain pre-pandemic non-recurring fiscal measures, meaningful contributions to reserves and sustained evidence of more normal fiscal decision-making,” the Fitch Ratings release stated, noting a steady reduction in accounts payable and retirement of many of the state’s lingering debts.
In its rating action, Moody’s credited the state’s “solid tax revenue growth over the past year” which expanded the state’s ability to rebuild financial reserves and increase payments toward unfunded liabilities. Moody’s noted Illinois’ progress in repaying its debts and its increased pension contributions as an indication of the state’s increased commitment to paying its pension debt.
The Governor thanked House Speaker Chris Welch, Senate President Don Harmon, Leader Greg Harris, Senator Elgie Sims, Comptroller Susana Mendoza and Treasurer Michael Frerichs for their ongoing commitment to Illinois’ fiscal well-being.
The upgrades follow the enactment of the state’s fourth balanced budget in a row, while providing $1.8 billion in tax relief to the working families of Illinois and marked Illinois’ first contribution to a Rainy-Day Fund in 18 years, as well as a $500 million extra payment toward the state’s pensions. The historic budget places Illinois it its strongest financial position in a generation while funding key investments for education, human services, law enforcement and violence prevention.
Fitch upgraded Illinois’ rating on its General Obligation bonds to BBB+ (stable outlook) from BBB- (positive outlook), and also upgraded Build Illinois sales tax bonds to A (stable outlook) from BBB+ (positive outlook).
Moody’s upgraded Illinois’ rating on its General Obligation bonds to Baa1 stable outlook from Baa2 stable outlook, and also upgraded Build Illinois sales tax bonds to Baa1 from Baa2 while maintaining their stable outlook.
The rating of a state’s bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars.
Between 2015 and 2017, the State of Illinois suffered eight credit rating downgrades and sat at the top of many analysts’ lists of the worst managed states in the nation. At its worst, Illinois’ bill backlog hit nearly $17 billion.
Key Actions – Responsible Fiscal Management
Fiscally responsible choices over the last three years have resulted in historic progress toward financial stability in Illinois.
Illinois’ FY2023 budget:
• Deposits $1 billion to the Budget Stabilization Fund (BSF) across FY2022 and FY2023 - the first deposits in 18 years. Also creates ongoing, permanent funding for BSF for the first time.
• Contributes an additional $500 million directly towards state unfunded pension liabilities, reducing long-term liabilities by an estimated $1.8 billion.
• Pays down $4 billion in debts across FY2022 and FY2023, including eliminating the payment delays in the employee and retiree health insurance program through $898 million in FY2022 supplemental appropriations.
• Keeps pace with payment of the state’s bills, with estimated bill payment delays at the lowest levels since before the Great Recession, saving taxpayers hundreds of millions in unnecessary interest costs.
…Adding… Comptroller Mendoza…
Today, Fitch Ratings gave the state a two-notch, bond-rating upgrade, noting the state’s “fundamental improvements in Illinois’ fiscal resilience.” This is the first Fitch upgrade for Illinois in more than 20 years. It comes on the heels of an upgrade from Moody’s Investors Services last month.
Comptroller Susana A. Mendoza repaid Illinois’ federal loans years ahead of schedule, saving Illinois taxpayers $82 million.
“Prudent expense management allows the state to accelerate repayment of various budgetary liabilities,” Fitch said in its double-upgrade Thursday.
Last year, Moody’s upgraded the state’s rating on June 29, 2021, which was the first upgrade the state had earned in more than two decades. The next week, on July 8, S&P Global upgraded the state’s credit rating as well.
With Fitch’s announcement today, the state’s credit has now been boosted five times in less than a year.
“Our state has now earned five credit upgrades during my tenure as Comptroller, it’s an amazing accomplishment and I’m very proud that my team and state leaders are showing you can lead with empathy – prioritizing human and social services as well as promises made to state retirees about their pensions – while also prioritizing fiscal responsibility,” Comptroller Mendoza said.
Comptroller Mendoza has focused on paying down the state’s backlog of bills and shrinking the time state vendors wait to be paid.
“According to the March report, the Office of the Comptroller’s bill payment cycle, or the age of the state’s oldest unpaid general funds voucher for external vendors was 18 business days as of March 31. The Comptroller reports this metric has steadily decreased (aside from seasonal variation) from a peak of 210 days in November 2017,” Fitch wrote.
Under the prior governor, the state had suffered a 736-day budget impasse and eight credit downgrades, during much better economic times.
Moody’s and Fitch both cited the state’s contributions into reserves as a reason for the recent upgrades.
Comptroller Mendoza has been a strong proponent and driver of reviving the state’s Budget Stabilization Fund – commonly referred to as the Rainy Day Fund.
The FY ‘23 budget signed by Gov. JB Pritzker includes $1 billion for the Rainy Day Fund and an additional $500 million to the Pension Stabilization Fund, saving Illinois taxpayers $1.8 billion in the long run.
Under Comptroller Mendoza, there is no longer a bill backlog, rather an accounts payable, that stands at about $2.1 billion today. That’s down from nearly $17 billion in 2017.
“We’re putting our best fiscal foot forward, and we’re earning recognition for these great strides we’re making,” said Comptroller Mendoza. “Even better days are yet ahead if we keep leading with fiscal responsibility.”
• Although the Illinois Department of Public Health (IDPH) officials were informed of the increasing positive cases almost on a daily basis by the Illinois Department of Veterans’ Affairs (IDVA) Chief of Staff, IDPH did not identify and respond to the seriousness of the outbreak. It was the IDVA Chief of Staff who ultimately had to request assistance. The IDVA Chief of Staff inquired about a site visit and about rapid tests (November 9th), and inquired about getting antibody treatments (November 11th) for LaSalle Veterans’ Home residents. From the documents reviewed, IDPH officials did not offer any advice or assistance as to how to slow the spread at the Home, offer to provide additional rapid COVID-19 tests, and were unsure of the availability of the antibody treatments for long-term care settings prior to being requested by the IDVA Chief of Staff.
• The outbreak at the LaSalle Veterans’ Home occurred at a time when COVID-19 cases were trending up statewide. Positive cases in Region 2 (where the LaSalle Home is located) increased from 12,108 in October 2020 to 37,825 in November 2020, an increase of 212.4 percent. Also, the outbreak occurred prior to the COVID-19 vaccine. Prior to the outbreak that began at the end of October 2020, only six staff members had tested positive for COVID-19. Even though the LaSalle Home had designated areas for isolation and quarantine, once the virus entered the Home, it spread very rapidly.
The administration threw IDVA chief of staff Tony Kolbeck under the bus. He appears to have gotten a bad rap on at least some of this.
Department of Public Health officials didn’t show up at the Lasalle home until 11 days after the outbreak began on Nov. 1, 2020, even though department leaders had been receiving near daily updates on the deteriorating situation at the home, according to Auditor General Frank Mautino’s review, which was released Thursday.
The public health department’s visit came only after top agency staff members were told that Pritzker was “very concerned” and wanted them to go to the facility, the report said.
The public health department’s failure to intervene early at the LaSalle home after the outbreak had been detected was notable, the audit said, because “all but four” of the 36 “residents who died were positive prior to” the agency’s first site visit on Nov. 12, 2020.
Mautino’s review, requested by the General Assembly, also said an inspector general’s report ordered by Pritzker and released in April of last year that blamed management failures at the Illinois Department of Veterans Affairs and the LaSalle home was too narrowly focused on that VA and was flawed because it largely excluded the public health department’s role in the crisis.
That report, from the Department of Human Services inspector general, contended the significance of the outbreak was not being meaningfully tracked by Veterans Affairs chief of staff when, “in fact, auditors found the chief of staff provided detailed information” that was used by former state Public Health Director Ngozi Ezike in her daily COVID-19 briefings, the auditor general report said. […]
Overall, the state audit points to a massive bureaucratic failure involving the administration’s response to the pandemic and the LaSalle deaths.
The virus hit the Home very quickly with a large number of residents and staff positive within a few days. As a result, it was unclear whether non-adherence to policy caused the virus to spread so quickly or whether the rapid spread was due to other factors. These factors include: a rumored outside gathering of employees; a Halloween parade at the LaSalle Home; or possibly the high positivity rate during that time in the community. Auditors obtained pictures of the parade and Halloween activities from October 30, 2020, where residents and some staff were unmasked. Since the virus is invisible, and several days may pass after exposure before symptoms develop, the origin of the virus at the Home may never be determined. It is likely that the high positivity rate in the community during that time period was a significant contributor.
Emphasis added because we’re going to hear from outraged GOP legislators today who were pushing back hard against the administration’s mitigations at the time of the outbreak and up to this day.
…Adding… Rep. Welter…
Illinois House Republican Conference Chair Rep. David Welter, R-Morris, issued the following statement today in reaction to the Auditor General’s findings on the Pritzker Administration’s response to the deadly COVID-19 outbreak at the LaSalle Veterans Home in the fall of 2020 that claimed the lives of 36 of our state’s heroes:
“The Governor’s Office previously testified how the IDVA Director duped them regarding the outbreak’s severity. Today’s report from the Auditor General proves Governor Pritzker was the one who deceived us. His office had information from day one and failed to act. The Governor’s investigation into the matter was flawed, too narrowly focused, and purposely removed him and IDPH’s leadership team from scrutiny until today’s independent findings. The Governor can no longer cover up the truth, and he must be held accountable for his collapse of competence. Legislative hearings must be scheduled to determine how the administration failed so greatly in protecting our state’s heroes.”
…Adding… Irvin campaign…
Aurora Mayor Richard Irvin released the following statement in response to the Illinois Auditor General’s report published today showing that J.B. Pritzker’s team and senior leadership at the Illinois Department of Public Health were well aware, in real time, of the Covid-19 epidemic at the LaSalle Veterans Home and failed to take quick action to address the outbreak that ultimately took the lives of 36 heroes:
“As an Army veteran, it is disheartening and beyond disturbing that J.B. Pritzker and his Department of Public Health were aware of the outbreak at LaSalle and neglected to respond quickly to save the lives of 36 veterans. The governor owes the families of these American heroes an explanation and needs to be held accountable for his administration’s failure to prevent this needless tragedy.”
The outbreak occurred several months into the Covid-19 pandemic in Illinois, where safety protocols and preventative measures were to be in place at all nursing homes, hospitals and community living facilities. An initial investigation by the Office of the Inspector General found that this tragedy could have been prevented if the safety protocols were followed. Today’s Auditor General Report found that the OIG report did not go far enough in thoroughly investigating the Governor’s Office and IDPH, and only lightly touched the surface in its determination of their actions or lack thereof.
…Adding… Irvin mentions “safety protocols” in his response, but check out his answer to this newspaper question…
What is your position on mask- mandates and vaccination requirements at workplaces?
Again, I oppose such state mandates.
Not good.
* Rep. Yednock…
State Rep. Lance Yednock, D-Ottawa, who led the Legislature to request a special state audit in the aftermath of the deadly La Salle Veterans Home COVID-19 outbreak in late 2020, today issued the following statement in response to the release of the audit:
“The devastating and deadly outbreak at the La Salle Veterans Home raised so many questions, and we needed to know more. Today’s audit reveals some disappointing breakdowns in communications and protocols that very likely led to more sickness and deaths. It also underscores the terrifying speed of infection we saw at COVID-19’s peak and acknowledges even the best preparation and planning might not have been enough to prevent more infection.
I want to thank Auditor General Frank Mautino and his dedicated staff for reviewing thousands of documents and spending the time needed to talk with everyone involved and paint a clear picture of what went wrong and how we can make sure it never happens again at the La Salle Veterans Home.
I’m frustrated and disappointed there wasn’t better coordination between state agencies to recognize and address the increasingly serious infection rate at La Salle as it was happening. As the audit found, staff should have been tested more regularly, and the Illinois Department of Public Health should have moved more quickly to visit the home.
I also want to acknowledge those in charge of the home and at the Illinois Department of Veterans Affairs who, despite previous reports, did take proper precautions and sound the alarm for help repeatedly as infections grew.
Our goal with this audit was to produce positive change, not settle political vendettas. I am encouraged that significant improvements have been made to prevent this from happening again. I would ask the Auditor General’s team and all of the involved agencies to meet with us in an upcoming legislative hearing to discuss these findings in more detail. With COVID-19 still in our communities, we owe this continued work to every veteran counting on us to protect them and keep them safe.”
…Adding… Leader Rezin…
llinois Senate Deputy Minority Leader Sue Rezin (R-Morris) issued the following statement after the Illinois Auditor General released their report on the Pritzker Administration’s handling of the COVID-19 outbreak at the LaSalle Veterans’ Home that resulted in the death of 36 residents:
“The audit tells the story of a governor who fatally mismanaged the state’s response, abdicated his responsibilities to protect the veterans of this state, and tried to hide it with an investigation he arranged with a predetermined outcome, ensuring his office escaped all accountability.
“Governor Pritzker and his political appointees intentionally misled legislators during public hearings as we sought answers for the families who lost loved ones but nineteen months after the outbreak began, the truth came out. He must finally accept responsibility for failing to act on the information his office sat on since day one. The Senate must hold legislative hearings to demand answers from the Pritzker Administration.”
…Adding… HGOP Leader Durkin…
House Republican Leader Jim Durkin offered the following comments after Illinois Auditor General Frank Mautino released the findings of a performance audit into the fatal mismanagement that led to the tragic deaths of 36 of our nation’s heroes at the LaSalle Veterans’ Home.
“The Auditor General’s report today shows again that when it comes to protecting our state’s most vulnerable, like children in DCFS or Veterans in the care of IDVA, Governor Pritzker is a failure. Our heroes deserved better than Pritzker’s fatal mismanagement at the LaSalle Veteran’s Home.”
…Adding… Jesse Sullivan…
Following today’s release of an audit of the Pritzker administration’s failed response at the LaSalle Veterans Home, Jesse Sullivan is calling for an immediate criminal investigation into the Pritzker administration – starting at the top with J.B. Pritzker himself.
Sullivan said:
“What happened at LaSalle was a shameful tragedy. When our heroes cried out for help, they were met with deafening silence from the Pritzker administration. Thirty-six veterans died as a result. Illinois veterans deserve better. The families who lost loved ones deserve better.
“Four years ago, J.B. Pritzker called the 13 deaths at the Quincy Veterans Home from Legionnaires’ disease a ‘shameful neglect of our veterans’ and an ‘unconscionable moral failing.’ ‘[T]his is incompetence,’ Pritzker said. ‘This is gross mismanagement.’ Attorney General Lisa Madigan quickly launched a criminal probe into the Rauner administration.
“J.B. Pritzker needs to be held accountable for his failures, and to take responsibility for the lives lost and the damage done. Time and time again, Pritzker has blamed others. He scapegoated IDVA Chief of Staff Tony Kolbeck for not disclosing the severity of the outbreak, but now we are learning that it was IDPH that didn’t act. The bottom line is that by his own definition four years ago, Pritzker is unfit to serve as governor.”
“As governor, I will always stand up for our veterans, and ensure they receive the highest quality of care.”
…Adding… Rep. Kifowit…
State Representative Stephanie Kifowit (D-Oswego), a United States Marine Corps Veteran and Chair of the IL House Veterans Affairs Committee, was the Chief Co-Sponsor of House Resolution Number 62 (HR62), which passed the Illinois House unanimously on April 28, 2021. As Chair of the Illinois House Veterans Affairs Committee, she issued the following statement following the Auditor General’s Report issued today pursuant to HR62:
“The Veterans in all our Veterans’ homes trust and depend on the state of Illinois to give them the best care we can in honor for their service to our great Country. As a Veteran myself, I stand by this standard and strive to ensure our Veterans are properly taken care of every day”, stated Kifowit. “The heart-breaking loss of our decorated Veterans at the LaSalle Home showed us just how deadly COVID-19 was, and still is.
“The members of the Veterans Affairs committee have been diligent on ensuring that all the information regarding the COVID-19 outbreak at the LaSalle Veterans affairs has been fully vetted, and as Chair of the Veterans Affairs Committee, you have my word that this report will be fully vetted as well in an upcoming subject matter hearing that I have already requested to be scheduled before the end of May.
“Through the hard work of the committee, and already law in Illinois, the soon to be established Veterans Accountability Unit is expected to address some of the issues that we are seeing in the Auditor General’s report and will provide an avenue for concerns and complaints to be readily addressed in a timely manner. It is unfortunate that so many lives were lost in a complete breakdown in communication during the largest public health crisis in our history. We must make certain that tragedy like this will never happen again to our most vulnerable Veterans under the care of the State of Illinois.
“In the end, this is about our Veterans. I am encouraged by the leadership of newly confirmed IDVA Director Prince and his team, the hard work of all the employees that care deeply for our Veterans in all our Veterans’ Homes, and the dedication of the Veterans Affairs Committee members to bring about positive change for our highly decorated Veterans under the care of the state of Illinois.”
A legal battle over cannabis business licensing in Illinois could overturn the state’s residency requirement, throwing a wrench into the already dysfunctional process and attempts to diversify the industry.
The litigation is just the latest in a series of lawsuits that have kept much of the state’s legal cannabis industry in limbo. But there are signs the logjam may be breaking.
A Cook County judge in another case has indicated she may lift a court injunction against issuing 185 pending recreational store licenses and hold a corrective lottery to remedy complaints about the licensing process. State officials also plan to issue 55 new licenses using a new streamlined process.
But this new federal case could jeopardize that. At issue is whether the state can favor license applicants who live in Illinois. Federal courts have struck down similar requirements in Maine, Michigan and Missouri, potentially opening licensing to much greater competition nationwide.
An Illinois federal judge said Friday that it appears that the statute laying out Illinois’ licensing process for cannabis dispensaries probably does violate the dormant commerce clause of the U. S. Constitution, but questioned the “sweeping relief” sought by two men claiming the state discriminates against out-of-state residents. Juan Finch Jr. , who moved to Chicago in December, and Pennsylvania resident and cannabis investor Mark Toigo want U. S. District Judge Rebecca Pallmeyer to block the state from issuing the 185 conditional licenses it has allotted so far in three separate lotteries and require regulators to rerun the licensing process without the residency requirements.
Cannabis Business Association of Illinois executive director Pamela Althoff summed up the state of the state’s legal recreational-use cannabis industry in one word: “Halted.” […]
“With the legal battles ongoing and the temporary restraining order placed on dispensaries, we’ve halted any real growth and advancement of the cannabis industry in Illinois,” Althoff said.
This has left lottery winners, many of whom have invested significant funds in their bids for licenses, in limbo while also delaying the diversification of what is still a nearly all-white and all-male industry on the dispensary side. […]
The diversity numbers would likely stand to improve significantly once licenses are given out as all those who have applied in the latest rounds are considered social equity candidates.
There’s evidence of this on the cultivation side. Last year, the Illinois Department of Agriculture awarded its first 40 craft grow licenses and 32 infuser licenses along with several transporter licenses.
This led to an increase in non-white majority-owned licensees on that side of the industry from zero to 44%. After the resolution of a court case last month, an additional 60 craft grow licenses could be awarded in the coming days or weeks.
An Illinois judge Friday pushed dozens of unsatisfied cannabis dispensary license applicants towards a corrective lottery before hearing arguments on whether or not they deserve to participate in the application process and told litigants that she expects the case to last through the end of the year and possibly into late 2023.
“This case will never conclude by 2022, you’ll be lucky if it concludes 18 months following that. There would not even be a ruling on merits for many, many months. If not years out,“ said Cook County Circuit Court Judge Cecilia Gamrath. “I want those plaintiffs to understand that reality. If any plaintiff is thinking they will get a ruling in three months.”
Judge Gamrath’s pronouncement was part of a four hour hearing in the state’s dispensary “supercase”, a consolidation of 67 plaintiffs from across Illinois ordered by the state Supreme Court. The supercase deals with applicants who contend their applications were either mishandled by the state or barred from participating in the application process. [Emphasis added.]
State Rep. Curtis Tarver says Illinois erred in the first place when it passed the cannabis legalization law. He said he said drafters were ultra-cautious about not wanting to invite lawsuits by giving too much priority in the license application process based on social equity and racial qualifications.
Instead, it’s those who can least afford it who are beset by litigation. He said there’s little legislators can do while various lawsuits wind their way through the courts.
“I don’t know that we ultimately will legislate our way out of this,” Tarver said. “The original 678-page bill was so flawed, I’m not sure that there’s legislative solutions. There was a lot of concern initially when I was in conversations and trying to push back on some of these things, about their being litigation if we went too far as far as providing equity. And now we’re in a situation where there’s litigation regardless. And the people often who can least afford to be litigated are the ones fighting for their opportunities.”
Once the courts weigh in, he said Illinois can make more moves.
* I stopped tracking this bill at the end of session because I figured it would pass. Here’s the BGA…
Despite strong rhetoric from Gov. J.B. Pritzker and other top state officials demanding public pension funds divest more than $100 million in Russia-based assets, state lawmakers now say they won’t act until the Fall veto session.
A key legislative proposal to force the pullout in the wake of the Russian invasion of Ukraine died in a Senate committee awaiting a vote.
Senate President Don Harmon, D-Oak Park, declined to be interviewed for this report, but his staff suggested the Senate had too little time before the session closed on April 9. The House bill — which passed by a vote of 114-0 on April 5 — was never taken up in the Senate chamber.
Liz Mitchell, Harmon’s spokeswoman, said the plan is to review the measure and take it up when they return in the Fall veto session.
Critics say that’s too little, too late.
“When you have a supermajority in both chambers and a Democratic governor, it’s a massive failure,” said Rep. Jim Durkin, R-Western Springs, the House Minority Leader. “It’s the right thing to do at the right time, and they have failed to do anything. It’s embarrassing. We could have been a leader on this.”
Durkin’s GOP divestment bill never made it out of committee.
In a written statement to the Better Government Association, Harmon promised action in retaliation for the Russian invasion that began on Feb. 24. He did not address the delay. […]
According to a review of pension audit reports for nine of the major public pension funds — including five in the City of Chicago and three state pension funds — a combined total of nearly $112 million was invested in Russian equities, bonds and other assets at the start of the invasion. […]
The Teachers’ Retirement System, the biggest fund in Illinois that represents teachers outside Chicago Public Schools, identified close to $59 million in assets in its portfolio.
TRS spokesman Dave Urbanek put the battle between fiscal responsibility and morality surrounding the issue into perspective.
“Letting go of an investment that’s making money, there’s a risk to that,” Urbanek said. “But you don’t want to be profiting off a war.”
Urbanek described the fund as waiting for direction from the state to act, similar to others.
* Accusations way too often turn out to be confessions for these folks…
If you signed a petition to help put U.S. Rep. Mary Miller (R-Illinois) on this June’s primary ballot, there’s a chance that a man convicted of luring a child for sex was the one who asked you to sign those campaign documents.
Congresswoman Mary Miller is facing new questions about her relationship with Brad Graven, a former state worker who pleaded guilty to luring a young boy to a drugstore parking lot for sex acts in 2005.
Photos, videos, and state election records show Graven was actively involved in helping the effort to re-elect Miller. Reached by phone, Graven claimed he was merely an unpaid volunteer for the Miller campaign. His name does not show up on the campaign payroll, but Graven enjoyed virtually unlimited access to Miller, served as her personal chauffeur at public events and raised money for her campaign. Miller trusted Graven with her family vehicle, which is adorned with campaign stickers and legislative license plates.
At several of those campaign stops, Miller encouraged voters to judge her and her colleagues in Congress by the company they keep.
“A politician is known by their votes and by who they hang around with,” Miller told supporters on Monday night in Quincy. […]
Miller’s closest ally on Capitol Hill is arguably U.S. Rep. Marjorie Taylor Greene. The Georgia Congresswoman hosted a fundraiser for Miller last summer and recently caused a stir among religious conservatives for claiming the Catholic church “harbored monsters.”
“I could not trust the church leadership to protect my children from pedophiles,” Greene said.
YOU’RE INVITED TO CELEBRATE THE LAUNCH OF THE ILLINOIS FREEDOM CAUCUS TRUMP HOTEL CHICAGO, MAY 5 12:30PM
The State Freedom Caucuse Network would like to cordially invite you to a private luncheon celebrating the launch of Illinois’ new Freedom Caucus! Come mingle and enjoy good company while supporting limited government in Illinois!
Join Illinois Freedom Caucus members—Chris Miller, Brad Halbrook, Dan Caulkins, Adam Niemerg and Blaine Wilhour — and select members of Congress, at our celebration.
Gotta figure US Rep. Miller is that “select” member. No relation, by the way.
Critics of the congresswoman argue that her rhetoric surrounding policies aimed at “protecting minors” is hypocritical. One source noted that a summer camp run by her family featured twice-removed Alabama Supreme Court Chief Justice Roy Moore as a speaker. Moore came under fire during his 2017 GOP Senate bid after nine women accused him of inappropriate sexual or social conduct, some of whom were under the age of 18.
Additionally, campaign finance reports show Miller’s husband, state Rep. Chris Miller, donated $5,000 to former Illinois state House candidate Tom McCullagh, who dropped out of his race following accusations of grooming an underage person. McCullagh has publicly denied the accusations.
It may be the last big gush of money before the numbers shift, but state of Illinois tax revenues absolutely soared last month compared to a year ago.
Personal income tax receipts in April, still the state’s largest tax-paying month, hit $5.440 billion, up 99.9% from the $2.721 billion collected in April 2021.
Corporate income tax growth was also peppy, soaring 63.5%, up from $1.13 billion a year ago to $1.847 billion now.
For the year to date—Illinois’ fiscal year ends June 30—individual income tax receipts are up $3.91 billion, or 18.8%, and corporate income taxes are up $1.973 billion, or 56.5%.
The negative aspect of this robust performance of income tax receipts in FY 2022 is that it will be extremely difficult to repeat. Furthermore, there are several factors that could potentially limit income tax revenue growth entering into FY 2023, including the impact of rising inflation on the economic activity; the lack of repeated federal stimulus dollars; the potential economic impact of additional COVID-19 variants; and the possible fallout of continued geopolitical uncertainty involving Russia and the Ukraine. The Commission has kept these potential mitigating factors in mind when projecting next fiscal year’s revenue estimates. This is why stagnant to negative growth is expected in FY 2023 from income tax related sources, despite the sensational performance of tax receipts in FY 2022. For these reasons, it would not be surprising to see another swing in April receipts in 2023, this time in the negative direction, especially when considering the extraordinary base to which it will be compared.
With two months of the fiscal year remaining, overall base receipts are up an astonishing $5.965 billion. Much of this growth is due to personal income taxes being up $3.910 billion, or $3.284 billion on a net basis. However, because next month’s personal income tax revenues will be compared to May 2021 figures containing delayed final payments, a notable revenue reduction in May 2022 revenues should be anticipated. Therefore, it will not be until May’s revenues are included that a more “apples to apples” comparison of year-to-date fiscal year totals of personal tax receipts can be made. Last year’s April to May tax deadline delay did not impact corporate income tax receipts. This makes the corporate income tax growth of $1.973 billion (or $1.529 billion net) thru April even more impressive, especially when considering FY 2022 totals are being compared to FY 2021 receipts that benefitted from two sets of final tax payments.
Sales tax receipts continue to improve on its stellar year, now up $852 million on a net basis. The remaining State tax revenue sources are down a combined $22 million thru April. Overall transfers continue to rise above last year’s levels and are now up $472 million. A $39 million reduction in refund fund transfers has been offset by increases in other areas, including $354 million in gains from miscellaneous transfers; $121 million from the return of casino transfers and related proceeds; and $36 million in lottery transfer increases.
Federal sources, when not including the revenues from the ARPA Reimbursement for Essential Government Services, are $150 million below last year’s levels with two months of the fiscal year remaining. [If the $439 million of ARPA money that has been receipted in FY 2022 is included, total federal sources are up $289 million].
Attorney General Kwame Raoul today joined a multistate coalition of eight attorneys general urging President Biden to fully cancel federal student loan debt owed by every federal student loan borrower in the country. The coalition urges the president to immediately exercise his authority under the Higher Education Act to cancel the more than $1.7 trillion owed to the federal government by student borrowers.
“Without action, the student loan crisis will continue to get worse, stifling economic activity and weighing down families with mountains of debt that they cannot afford to repay,” Raoul said. “While long-term reforms to the student loan system are desperately needed, I urge the Biden administration to take action that will provide immediate relief to student loan borrowers.”
In their letter, Raoul and the coalition argue that a full cancelation of student debt is necessary to address the sheer enormity of debts owed, systemically flawed repayment and forgiveness systems and the disproportionate impact of the debt burden on millions of borrowers. While Raoul and other state attorneys general have taken key actions to ease debt burdens wherever possible, the coalition contends that only permanent action by the Biden administration can provide the widespread relief that is needed by millions of federal student loan borrowers.
The coalition further argues that the cancelation of federal student loan debts will reduce stress and mental fatigue and provide countless opportunities for borrowers, such as saving for retirement and purchasing new homes. Additionally, the attorneys general argue that canceling federal student loan debt can substantially help close the racial wealth gap.
Today’s comment letter builds off recent action taken by the Illinois Attorney General’s office to protect student loan borrowers. In 2021, Raoul’s Know Before You Owe legislation was enacted to address the lack of publicly-available data about private student loans in several ways, ensuring student borrowers have information about their federal aid eligibility before they turn to more costly private loans.
The Illinois Attorney General’s office has long been a national leader in investigating and enforcing consumer protection violations in the higher education field. Raoul’s office has secured more than $160 million in relief for Illinois consumers defrauded by their schools, lenders, or servicers since 2019. Earlier this year, Raoul’s office announced a $1.85 billion national settlement with Navient that includes nearly $5 million in restitution payments and more than $133 million in debt cancelation for Illinois borrowers. In addition, Illinois will receive a direct payment under that settlement of more than $7 million.
Student borrowers who have questions or are in need of assistance can call the Attorney General’s Student Loan Helpline at (800) 455-2456. Borrowers can also file complaints on the Attorney General’s website.
Joining Raoul in sending today’s comment letter are the attorneys general of Hawaii, Michigan, Minnesota, New Mexico, New York, Puerto Rico and Washington.
Chilly, wet and dreary — that’s how weather experts are describing the extreme bummer that has been spring in Chicago.
The National Weather Service categorized just one day in April as “clear and sunny,” said Kevin Donofrio, science and operations officer. NBC 5 meteorologist Paul Deanno said Tuesday just one of the past 42 days saw significant sunshine. That report was followed by another dark and soggy day.
Though still gloomy, there were seven sunny days recorded in April 2021. It’s been colder than usual, too.
“This year, we’re stuck with heavier spring jackets, maybe one that has rainproof on it with a fleece underneath,” Donofrio said. “It’s been much cloudier than usual.”
Democratic Secretary of State candidate Anna Valencia announced today, during National Teacher Appreciation Week, that she has earned the endorsement of the Illinois Education Association (IEA). IEA, an affiliate of the National Education Association, is the largest union in the state, with 135,000 members who work as teachers and educators in elementary, secondary and higher education.
“We are proud to recommend Anna Valencia for Secretary of State. Anna grew up in a union household and is the product of Illinois public schools. We know Anna will stand with our public educators and our students,” said IEA President Kathi Griffin. “Her track record as Chicago’s City Clerk has shown us she understands the needs of the working class. During her tenure with the city, she helped reform the ticketing process in Chicago. Anna also worked to pass the License to Work Act (SB 1786), which ends driver’s license suspension for not paying nonmoving vehicle tickets, like parking tickets, so people can still travel to work and pay their tickets. We believe Anna has the skillset to be Secretary of State and her deep understanding of the middle class will be an asset to our great state.”
The endorsement comes as Valencia continues to build momentum and a broad coalition of support from across Illinois. Earlier this week, Planned Parenthood of Illinois Action endorsed Valencia.
“I am humbled and proud to have earned the endorsement of the Illinois Education Association,” said Valencia. “I know the incredible impact that teachers have on our children’s lives because it was with the support and encouragement of my own public school teachers that I became the first in my family to graduate from college. I thank the IEA and their members for joining us in our campaign. I promise that when elected, teachers and educators will have a strong supporter and ally in the Secretary of State’s office.”
Since entering the race in June 2021, Valencia has built a strong statewide coalition of support from a robust slate of highly-respected elected officials, business leaders, political groups and labor unions—including the Associated Fire Fighters of Illinois (AFFI) and Illinois Nurses Association-The Nurses Union (INA). Both of Illinois’ US senators, Dick Durbin and Tammy Duckworth, current Secretary of State Jesse White, Governor JB Pritzker and Lieutenant Governor Juliana Stratton have endorsed Valencia. She has also secured support from the national Latino Victory Fund, EMILY’s List and other influential organizations and leaders from across the state and nation.
* Casten…
Today, U.S. Congressman Sean Casten (IL-06) announced the endorsements of 12 local elected officials & community leaders for his re-election campaign. From former primary opponents to local Mayors to county-wide elected officials, these endorsements add to a list of over 60 local elected officials & prominent community activists from every township in IL-06 who are backing Rep. Casten’s re-election.
“Government works best when we are all working together,” said Rep. Sean Casten. “I’ve worked hand-in-hand with these dedicated public servants to deliver real results for families in the 6th District. I look forward to continuing to fight for our shared values - like lowering costs for families, combatting the climate crisis, and protecting a woman’s right to choose.”
The following people endorsed Rep. Casten today:
Maria Pappas, Cook County Treasurer
Justin Slaughter, Illinois State Representative (27th District)
Deb Conroy, Illinois State Representative (46th District)
Vernard Alsberry, Mayor of Hazel Crest & Bremen Township Democratic Committeeman
Mike Glotz, Mayor of Tinley Park
Dennis MaGee, Former Mayor of Merrionette Park & Former Worth Township Democratic Committeeman
Kenneth Nolan, Palos Hills Treasurer
Autumn Geist, Lisle Township Trustee
Jane Nolan, Palos Township Clerk
The Proviso Township Democratic Organization
Nancy Sheperdson, State Central Committeewoman for IL-06
Jennifer Zordani, Community Activist and Former Candidate for IL-06
You can find the full list of Rep. Casten’s endorsements here.
* GOP SoS primary…
From day one, Dan Brady, a Bloomington Republican, has made the fight against distracted driving in Illinois a key part of his campaign for Secretary of State. That battle is even more crucial now, with a new study listing Illinois as one of the deadliest states in the country for distracted driving.
“Anyone who has seen another driver looking at their phone, eating, putting on makeup, or other activities instead of focusing on the two-ton piece of metal they are driving knows what I am talking about,” Brady said. “My goal as Secretary of State is to make Illinois the safest state in the nation the next time this distracted driving study comes out.”
The company MoneyGeek, in an analysis of National Highway Traffic Safety Administration data, ranks Illinois as the eighth deadliest state in the country for distracted driving with 1.6 deaths per billion miles driven.
Brady will have the Secretary of State’s office work with organizations such as the Tire Rack Street Survival, a tire and auto industry-sponsored program that graphically teaches teenagers the physics behind driving their own cars in real-world situations. As students learn what it takes to safely move more than a ton of motor vehicle on the street, they learn more focus and concentration and why they should take fewer risks themselves, such as distracted driving.
“I am passionate about reducing vehicle accidents related to distracted driving and developing better ways to teach our young drivers behind the wheel,” Brady said. “I have already worked closely with the Secretary of State’s Office on initiatives that will make Illinois roadways safer and to better train Illinois drivers, and I plan to use the resources of the Secretary of State’s office to greatly expand that effort.”
Brady is also active on other issues related to driver safety. He recently worked with the National Safety Council and advocates for older adults on a law that will help make driving safer for older residents.
“I recently passed legislation that was signed into law regarding E-learning defensive driver courses for mature drivers that will potentially lower their insurance premiums while providing enhanced technology options for training,” Brady said.
Abortion seeps into state House race: Rep. Mike Zalewski (23rd) is being taken to task for voting against a bill that repealed a state law requiring minors to notify their parents before pursuing an abortion. Democratic challenger Abdelnasser Rashid says Zlewski “put the health and lives of young women at risk,” according to a statement.
That vote kept Zalewski from being endorsed by Planned Parenthood or Personal PAC, which advocates for abortion rights. Zalewski “is not a pro-choice incumbent,” Personal PAC’s Terry Cosgrove claims in the statement from Rashid.
Zalewski defends his record, describing himself as a pro-choice Democrat who voted for the Reproductive Health Act that keeps abortion safe and legal in Illinois, as well as HB40, which allows abortions to be covered by Medicaid. It’s only the parental notification bill that gave him pause, though Zalewski says he’s glad it ultimately passed. This week, he called on Congress to codify Roe v. Wade. […]
— Ad buy: United Association of Union Plumbers & Pipefitters has bought airtime on broadcast and cable TV for Republican Rep. Rodney Davis in his race for the 15th Congressional District. The ad buy is $380,684 and starts next week. A digital component will be roughly $85,000. […]
— La’Mont Williams’ campaign for state Senate in the 16th District has been endorsed by the AFL-CIO, Ald. Jeanette Taylor and Cook County Commissioner Dennis Deer.
* CD1…
Latino Leaders to Endorse Karin Norington-Reaves
WHO: Karin Norington-Reaves
Former Rep. Luis Gutiérrez
Emma and Tanya Lozano
WHAT: Endorsements in her race for Congress, IL-01
WHEN: Thursday, May 5 at 2:00 PM CT
WHERE: Blue Island Public Library, 2433 York St, Blue Island, IL 60406
* CD17…
Today, Jonathan Logemann, Democratic candidate for Illinois’ 17th Congressional District, announced the endorsement of Elect Educators Everywhere, a national education-focused organization dedicated to electing more teachers and education professionals to public office. Elect Educators Everywhere has played a substantial role this cycle at the local and federal level supporting educators running for public office to make a difference in their communities.
“As a High School teacher who’s taught in public schools my entire career, I am honored to receive the endorsement of Elect Educators Everywhere,” said Jonathan Logemann. “During the course of my time as a teacher, I have witnessed the impact that educators throughout our public schools have on students, parents, and their local communities. From inspiring a lifelong love of learning to preparing our young people for the workforce to involving parents and our local community in the education of our kids, I’m proud of the work I have done as a teacher, and I am excited to continue this public service out in Congress.”
* Cook County Assessor…
The reelection campaign of Cook County Assessor Fritz Kaegi released its first television ad on Wednesday, ahead of the June 28 Democratic primary.
The ad, titled “Hot Dog,” lays out the inequities in the broken property tax assessment system that for too long favored clouted property tax attorneys, big corporations and the very wealthy, and left middle-class families and small businesses with an unfair burden.
“I ran for Cook County Assessor because I wanted to bring equity and transparency to our broken property tax system. I am leading with fairness and for the first time in a long time, large wealthy corporations are paying their fair share,” Assessor Kaegi says in the ad.
The ad will air on broadcast, cable and streaming networks beginning Wednesday. View the ad here.
The full script of the ad is as follows:
I’m Fritz Kaegi, and this is John. John treats all of his customers the same.
That’s not how the assessor used to work. Corrupt politicians shifted the tax burden away from wealthy downtown landlords on to middle class families, drenching you with sky high property taxes.
As a Democrat, that left a bad taste in my mouth.
So that’s why I’m reforming the system, and expanding protections for seniors, veterans and people with disabilities.
If only paying taxes were this good.
Also in that race…
Kari Steel has loaned herself $100,001, enough to lift the caps in the Cook County Assessor's race.https://t.co/mkzwBRDBmF
* The two Democratic candidates competing to be the underdog against GOP Rep. Chris Bos continue racking up the endorsements. Chelsea Laliberte Barnes just scored US Sen. Richard Durbin. Nabeela Syed is the other Dem.
* CD13…
Access to safe, legal abortion in America took a devastating blow this week with POLITICO reporting on a leaked draft Supreme Court majority opinion that would strike down Roe v. Wade and open the door for 26 states to immediately move to ban the right to abortion.
Republicans Jesse Reising and Regan Deering are complicit in this all-out assault on women’s freedoms. Already, both Reising and Deering are lining up to support this attack on Illinoisans’ freedoms to make their own health care decisions.
Make no mistake – access to abortion is on the line this November and hinges on control of Congress. Just hours before the draft Supreme Court opinion was leaked, the Washington Post reported that congressional Republicans are working on a “push for a strict nationwide ban on the procedure if Republicans retake power in Washington.”
DCCC Spokesperson Elena Kuhn:
“The stakes in this election could not be higher: Electing either Jesse Reising or Regan Deering would put House Republicans one step closer to achieving their decades-long dream of ripping away women’s freedom to make their own decisions about their bodies.”
* Lake County Democrats vow to protect abortion rights: State Rep. Daniel Didech painted a grim picture of a post-Roe V. Wade future. “In states that outlaw abortion, it means that we will see criminal investigations of miscarriages,” he said. “It means that women with nonviable pregnancies and ectopic pregnancies will be forced to risk their lives to carry those pregnancies to term. It means the criminalization of doctors and nurses who provide critical OB-GYN services. It means that in states that go backwards on reproductive rights, rapists will have more rights than women.”
* Meet the six Democrats who hope to keep the 17th Congressional District blue in November: “We as women and people who can become pregnant in our country, are facing an existential crisis right now,” Litesa Wallace said. “And it really isn’t limited to just us.” A former Illinois state representative from Rockford, Wallace said her work in the Illinois General Assembly helped Illinois become the “safe haven” that it is for those seeking abortions.
671 responses were gathered by Victory Geek for Cor Strategies from Friday, April 29th, though Monday, May 2nd, with 1/3 of those responses collected live over cell phones. The poll’s margin of error is ±3.78%.
Last week one of the questions from an internal poll we had conducted for a client got leaked, showing tracking numbers for the Illinois Governor’s race. The problem is this poll was never intended for public consumption—it was a quick and dirty automated tracking poll testing something else entirely. The data gave our client what they needed, but these results never should’ve been taken as an accurate snapshot of the governor’s race.
To say we were horrified to have our name tied to those results as an official public tracking poll would be an understatement, so we commissioned an actual poll that we could release. Here are those results.
Richard Irvin has taken a commanding lead in the Illinois governor’s race, with 33% support. Bailey is still in striking distance at 21%, but quickly running out of time. Sullivan has faded to 10%, and the rest of the candidates are in single digits (Rabine 7%, Solomon 3%, Schimpf 2%). With only 25% of likely Republican primary voters undecided, Irvin’s challengers either need to unite or individually dominate the remainder of this race if they are to have any hope of overcoming his lead.
Irvin’s support is statewide but strongest in the suburbs, where he has lapped the field with 38% of the vote compared to just 13% for Bailey. Meanwhile, Bailey polls significantly better outside the suburbs at 27%, but even there he still trails Irvin who has 31%. Sullivan’s support is fairly consistent throughout the state, while Rabine is significantly stronger in Cook County (14%) and the suburbs (11%) than the rest of Illinois (2%).
An interesting note is Irvin’s attacks on Bailey and Sullivan have increased their negatives but both candidates are still “above water.” In fact, Bailey’s net favorability is the same as Irvin’s (+12%). The key difference is overall name recognition: Irvin has achieved an extremely strong 71% name recognition while Bailey is at a relatively weaker 50%. The difference is glaring in the suburbs, where Irvin’s name recognition is 73% compared to just 38% for Bailey.
These results back up what many of us in the industry have observed:
• Irvin has dominated the space for months and used that to build his lead. If all voters hear is what Irvin is putting in front of them, can you blame them for voting for the one candidate they know?
• Bailey has done very little paid voter outreach to everyday Republicans, focusing almost exclusively on grassroots campaigning. This has given him extremely strong support among politically active conservatives, but he has a math problem because that is a small segment of the overall Republican voter population.
• Sullivan impressed early and earned a surprising level of support, but since has inexplicably been almost radio silent other than his one (excellent) video ad on socials and targeted tv.
• Rabine has built some support in Cook County and the suburbs but is likely fighting for 3rd in the race at this point. Interestingly, you combine his support in Chicagoland with Bailey’s support in the rest of the state and you almost have a candidate who can beat Irvin.
It’s important to point out that Bailey’s supporters are much more active and dedicated than Irvin’s, so he is likely to overperform any poll. The exact impact is dependent on voter turnout, but we’d estimate his overperformance to end up around 3%, though it could be as much as 5-7% if his team’s claims of their success with “silent voters” is to be believed.
So Bailey isn’t out of this race yet. But if he continues to ignore regular Republican voters, especially in Chicagoland, Irvin’s lead will just keep growing.
* Again, 25 percent of Republican primary voters are reported to be undecided statewide…
* Springfield’s Bishop Paprocki connected the Janus v. AFCSME and Roe v. Wade decisions four years ago…
It is encouraging that the U.S. Supreme Court ruling in Janus v. AFCSME upholds the right to be free from coercion in speech. No longer will public sector employees be required pay dues to support unions that promote abortion and other political issues with which they disagree.
* But Bloomberg political reporter Gregory Korte saw something else back then: A preview. Korte laid it out last night in a Twitter thread…
It was the last day of the term, and the first case was Janus v. American Federation of State, County and Municipal Employees. The issue was whether public employees could be compelled to join a union.
Justice Alito presented the opinion of the court.
The first issue that Alito had to confront was that the court previously decided in Abood v. Detroit Board of Education that these “agency fees” were constitutional. There was no question the precedent was directly on point.
But Alito outlined why stare decisis did not apply.
Alito: “The State’s extraction of agency fees from nonconsenting public sector employees violates the First Amendment. Abood erred in concluding otherwise, and stare decisis cannot support it. Abood is therefore overruled.”
Alito laid out four factors that he justified overruling precedent:
(1) “Abood was poorly reasoned, and those arguing for retaining it have recast its reasoning.”
(2) “Abood’s lack of workability also weighs against it.”
(3) “Developments since Abood, both factual and legal, have ‘eroded’ the decision’s ‘underpinnings’…”
(4) “Reliance on Abood does not carry decisive weight. The uncertain status of Abood, known to unions for years; the lack of clarity it provides…”
And so at this point I started thinking what you might be thinking: These are all, to a greater or lesser extent, conservative critiques of Roe over the years.
Justice O’Connor, e.g., famously said in 1983 that Roe’s trimester framework “was on a collision course with itself.”
I’m convinced that Justice Kagan also saw Alito’s opinion as laying the groundwork to overrule Roe. She delivered a vigorous dissent:
Rarely if ever has the Court overruled a decision - let alone one of this import - with so little regard for the usual principles of stare decisis. There are no special justifications for reversing Abood. It has proved workable. No recent developments have eroded its underpinnings. And it is deeply entrenched, in both the law and the real world. More than 20 States have statutory schemes built on the decision. Those laws underpin thousands of ongoing contracts involving millions of employees. Reliance interests do not come any stronger than those surrounding Abood. And likewise, judicial disruption does not get any greater than what the Court does today. I respectfully dissent.
Again, it was easy to see Janus as a proxy fight for Roe in Kagan’s dissent:
“Abood is not just any precedent: It is embedded in the law … in a way not many decisions are.”
More Kagan: “There is no sugarcoating today’s opinion. The majority overthrows a decision entrenched in this Nation’s law — and in its economic life — for over 40 years.”
Fast forward to 2022. Politico’s @joshgerstein gets a tremendous scoop with an almost unheard of leak of a draft opinion that would overrule Roe.
Alito is the author. On page 39 of the draft, Alito cites Janus as precedent (!) for overruling Roe, for many of the same reasons.
No Justice of this Court has ever argued that the Court should never overrule a constitutional decision, but overruling a precedent is a serious matter. It is not a step that should be taken lightly. Our cases have attempted to provide a framework for deciding when a precedent should be overruled, and they have identified factors that should be considered in making such a decision. Janus v. State, County, and Municipal Employees, 585 U. S. (2018) (slip op., at 34-35); Ramos v. Louisiana, 590 U.S. (2020) (KAVANAUGH, J., concurring in part) (slip op., at 7-9).
In this case, five factors weigh strongly in favor of over- ruling Roe and Casey: the nature of their error, the quality of their reasoning, the “workability of the rules they imposed on the country, their disruptive effect on other areas of the law, and the absence of concrete reliance.
Again, I’m no constitutional lawyer, but it was clear even to me that the conservatives on the court were engaged in a long-term effort to dismantle Roe and have been laying bread crumbs for years.
Again, the draft is here. The Janus decision is referenced five times.
Chicago unveiled its pitch to host the 2024 Democratic National Convention Tuesday morning, releasing a slickly produced video narrated by favorite son Common that showcases Chicago as the “heartland of Democracy” and the best place to launch the party’s pitch to voters.
Chicago is one of at least seven cities to be asked by the Democratic National Committee to bid for the convention to be held in the summer of 2024, officials said. […]
Illinois’ top Democrats joined forces with labor and business leaders to announce the bid, with Gov. J.B. Pritzker saying the convention would infuse $150 million into Illinois’ economy and boost Chicago’s flagging tourism and hospitality industries, which have been slow to recover amid the lingering COVID-19 pandemic.
A convention hosted in Chicago would “invite the nation to explore the Land of Lincoln and Obama,” Pritzker said in a statement.
The last Democratic convention in Chicago was in 1996 and propelled President Bill Clinton and Vice President Al Gore on to reelection. Before that, there was the tumultuous 1968 convention, which is often best remembered for anti-Vietnam protests and violence.
Much of Chicago’s current image around the country is focused on crime - and leaders say this would be an opportunity to change that.
“This is a really important economic development and branding tool for Chicago,” Mayor Lori Lightfoot said.
“We have the right leadership, the right infrastructure,” said Senator Cristina Castro, a convention delegate. “The city of Chicago is the perfect location to host this.”
It would either be an opportunity to help change the city’s image or reinforce that image if something really bad happens.
Last month, the DNC sent out formal letters to eight cities, including Chicago, Houston and Atlanta, asking city officials to submit bids for holding the quadrennial nominating convention. Organizers said that cities have until May 27 to submit their proposals to the DNC in order to be considered. The financial commitments are expected in the city’s formal response to the DNC’s request for proposals later this month.
As expected, the video submission for Chicago did not touch on outbreaks of violent crime in the city, something Republicans seeking to challenge Pritzker in the November general election and opponents of Lightfoot have noted as she faces reelection next year.
The announcement also did not include a dollar amount of prospective city, state and private financial inducements to lure the DNC to Chicago. […]
But hospitality industry officials said they were hopeful of winning the 2024 event to provide an influx of as many as 50,000 people to the city and inject revenue into hotels and restaurants that were severely hurt by pandemic closures and restrictions.
* Rather than focus on the video, the Sun-Times reported out some substance…
The Request for Proposal the Democratic National Committee sent to Chicago said the city would need to accommodate 50,000 participants — with the DNC alone needing a block of 15,000 hotel rooms for delegates, party officials, high-end donors and President Joe Biden, Vice President Kamala Harris, Cabinet members, Secret Service and White House staff. […]
The bid will also stress how accessible Chicago — in the center of the nation — is by car, plane and train. A very strong selling point of Chicago — with 50,000 hotel rooms within the city — is unlike other convention cities — where participants may face horrendous commutes from hotels to convention events — the event venues, restaurants, tourist attractions, even the Cubs and Sox stadiums are all close to downtown. […]
The bid will provide the DNC with menus of multiple options for using not only the United Center but — and this is not the complete list — McCormick Place, the Wintrust Arena, Navy Pier, Soldier Field and the Museum Campus. […]
The DNC will require an extensive financial package from the host city to cover a variety of costs — from festivities connected to a political convention to paying for the venue itself, to covering costs for a visit from the DNC site selection team. […]
Pritzker, asked about taxpayer expenses, said, “We have a lot of conventions as you know that come to the city of Chicago. We’ve had major gatherings, international and national, in the city of Chicago, and I wouldn’t expect that the expenditure by the city would be any more than any of those.”
Abortion prohibitions were common throughout the U.S. until Jan. 22, 1973, when the court, in a 7-2 ruling in Roe v. Wade, declared that access to abortion during the first two trimesters of pregnancy was protected as part of a fundamental right to privacy and that states had only limited authority to regulate the procedure.
For a time after that, Illinois was among a handful of states to enact so-called “trigger laws” that would reinstate the ban on abortion if Roe v. Wade was overturned.
A 1975 “trigger law” remained on the books in Illinois until 2017 when then-Gov. Bruce Rauner, a Republican, signed House Bill 40 to repeal the trigger law and allow abortions to be covered under the state’s medical assistance program and the state employee’s health insurance system.
Prior to that law, Illinois had only covered abortion services in cases of rape or incest, or when there was a threat to the life or health of the mother. The new law, however, extended that to anyone who was covered by the state’s Medicaid program.
But because federal Medicaid rules do not allow public funding of abortion, the services in Illinois are paid for entirely with state funds.
An April 2021 survey by Public Policy Polling concluded 73% of respondents agreed abortion “should remain legal in Illinois as a private decision between a woman and her doctor, not politicians.”
As an accessible region to conservative Midwest and southern states, the metro-east is at the center of the preparation for more patients to seek care in Illinois. If Roe is reversed, Planned Parenthood of the St. Louis region expects upwards of 14,000 patients from Arkansas, Kentucky, Missouri, Oklahoma and Tennessee, to travel to southern Illinois for abortions. The organization’s analysis estimates all the states bordering Illinois would move quickly to ban it. Two metro-east clinics that offer abortions announced in January a service to help pay travel costs for out-of-state patients coming to Illinois. Reproductive Health Services of Planned Parenthood of the St. Louis Region, which has a clinic in Fairview Heights, and the Hope Clinic for Women in Granite City will operate the Regional Logistics Center located in the Planned Parenthood’s center in Fairview Heights.
The logistics center is being billed as a “travel agency,” where women can get assistance in arranging and funding travel to the metro-east. This help includes covering the cost of plane tickets and lodging. There are no income limits for participants. Yamelsie Rodríguez, president and CEO, Planned Parenthood of the St. Louis Region and Southwest Missouri, said the draft “previews what we’ve long been preparing for.” She said patients should continue to go to their appointments.
“We knew this opinion was coming and while it’s not official, it brings us one step closer to an impending public health crisis,” Rodríguez said. “Abortion remains legal today. No matter what, with our partners, we will fight for what little is left of abortion access in Missouri and push forward to expand in Illinois where abortion access is protected beyond Roe.”
The Illinois Department of Public Health reported 7,534 nonresidents received abortions in Illinois in 2019, compared with 5,529 in 2017 and 2,970 in 2014.
[Planned Parenthood of Illinois President and CEO Jennifer Welch] predicted that anywhere from 20,000 to 30,000 additional patients could travel to Illinois each year to terminate a pregnancy if abortion rights are overturned.
This is on top of the ever-increasing number of patients who already cross state lines to come here for the procedure. Nearly 10,000 people came from out of state to have an abortion in Illinois in 2020, according to the latest data available from the Illinois Department of Public Health. This was a 29% increase over the previous year, when about 7,500 patients traveled here for the procedure from another state.
The number of abortions here for out-of-state women has risen every year since 2014, according to state health data.
While the news of Roe’s potential demise was shocking, Welch said her agency has been preparing for this possibility for the past five years by increasing the number of health centers, expanding access at facilities, creating a new telehealth program and launching the biggest fundraising campaign in the agency’s history. […]
In 2018, the [Chicago Abortion Fund,] provided funds for roughly 180 people seeking an abortion; in 2022, more than 500 people on average are calling for financial assistance each month, she said.
For too long, Illinois has been known as a haven for Democrat corruptocrats and wannabe communists. But it wasn’t always this way. Our state gave the country the leader who won the Civil War, and the leader who won the Cold War. I’m running for governor to be the leader that helps us win the culture war. Our kids aren’t racists. Boys aren’t girls. And we’re never allowing our kids to be used as political pawns ever again. If you agree with this kind of good old America First common sense and want a leader who can’t be bought, then please vote for me.
I still have trouble grasping why Pat Brady, who for decades billed himself as a moderate Republican and as the go-to GOP guy for Chicago political (especially TV) reporters, is working to nominate Rabine. But, hey, it’s a free country.
With Chicago-area homicides, carjackings and expressway shootings up in 2021, billionaire investment tycoon Kenneth Griffin minced no words last fall when he singled out one man, Democratic Gov. J.B. Pritzker, for not confronting the crime scourge terrorizing the region.
But as Griffin characterized Pritzker’s response as a “disgrace,” Griffin’s $46 billion hedge fund — Citadel — and its corporate cousin had investments and holdings in gun and ammunition makers, federal securities records show.
In fact, Chicago police data analyzed by WBEZ show nearly one of every four guns recovered from city homicides since 2017 came off assembly lines of firearms companies in Citadel’s stock portfolio — weapons involved in the same crime wave Griffin blames on the governor. […]
Citadel’s hedge fund and its related, Griffin-owned market-maker firm, Citadel Securities, reported combined investments and holdings in gun and ammunition makers exceeding $86 million last December, according to federal securities disclosures.
But a company spokesperson told WBEZ that Griffin doesn’t choose Citadel’s stock holdings, and they have no correlation to Chicago’s crime wave.
“These investments make up less than .01% of our portfolio,” Citadel spokesperson Zia Ahmed said, calling any links between the companies’ stocks and violent crime in Chicago “quite a stretch.”
Ahmed said the vast majority of Citadel’s positions in gun and ammunition companies are held by Citadel Securities, which he said does not make direct investments but instead owns stocks investors buy and sell through third-party brokerages.
Formerly a prominent skeptic–he once called crypto “a jihadist call” against the dollar–Griffin backtracked in March, saying that “the crypto market today has a market capitalization of about $2 trillion in round numbers, which tells you that I haven’t been right on this call.” He said his Citadel Securities would likely move into market making in crypto in the coming months.
How’s it going?
“You’ve found the great hotspot topic of debate within my firm,” Griffin told Schatzke on Monday. “All my colleagues who are younger than I am probably think I’m a dinosaur on this issue. They’re big believers. They believe that cryptocurrency has an important role in the global economy as a means of facilitating payment in a web3 world.” Griffin is coming around–at least to the profit potential of it all. “I have to live with the reality that an asset’s worth what people perceive it to be worth,” he admitted, so it’s “reasonable to expect to see us be more involved in the crypto space, providing liquidity to institutional, and potentially retail, investors.”
Still, he isn’t exactly rushing in: “It’s difficult to build to the level of rigor that we would want to build to. Things like ensuring that we’re not a party to a transaction with North Korea are really important to us–it may not be to our competitors, but I’m not gonna help fund the North Koreans with their various ventures by mistakenly buying their cryptocurrency.”
So, there is a “level of vigor” that he’s involved with after all.
The annual Paul Simon-Jim Edgar Statesmanship Award is presented to a former or current state or local government official in Illinois who has demonstrated a pattern of public service characterized by vision, courage, compassion, effectiveness, civility, and bipartisanship.
Former Governor Jim Edgar and the Paul Simon Public Policy Institute invite you to nominate an Illinois elected official who has displayed this kind of exceptional leadership.
We created the Simon-Edgar Statesmanship Award to shine a spotlight on remarkable public service that is taking place in our state and local communities. Please join us as we celebrate the Prairie State’s best traditions. Nominate an Illinois statesperson by June 1.
