* Yeesh, what a week. Glad that one’s over. The Giannoulias folks just told me that there would likely be no decision tonight on whether to approve the governor’s short-term borrowing plan, so I’m done for the day.
* The easiest wisecrack is to suggest he did it himself, but I would never dare make such a suggestion. Still, it is Chicago…
Chicago police are investigating a burglary at the law offices of the attorneys for former Gov. Rod Blagojevich, sources said, and are trying to recover computers containing discovery evidence in the sweeping corruption case.
Someone broke into the offices of laywers Sam Adam and his son, Sam Adam Jr., in the 6100 block of South Ellis Avenue, sources said, and stole computer equipment. At least one of those computers carried copies of secretly made tape recordings in the case, sources said.
The burglars set off an alarm but escaped the area. Investigative sources said there are no suspects in the crime.
The U.S. attorney’s office in Chicago declined to comment on the incident or the fact that evidence in the case apparently has been compromised.
I wonder if the thieves even know what they have. Heh.
* 12:48 pm - Comptroller Dan Hynes will announce his decision on whether to sign off on a $500 million short term state loan at 1 o’clock this afternoon. I’ll update this post shortly thereafter.
While we wait, take a look at this Trib story which I missed earlier today…
When Gov. Pat Quinn accused Comptroller Dan Hynes of playing politics on a plan to use short-term borrowing to pay a backlog of state bills, the governor said that when he was state treasurer he “worked together” with a Republican governor and a Democratic comptroller on borrowing plans “on behalf of the common good.”
What Quinn didn’t mention is that as state treasurer in 1992, he single-handedly blocked an effort by then-Gov. Jim Edgar to borrow money to pay overdue bills to state vendors in a failed effort to leverage money for the Chicago Public Schools.
Quinn’s move so enraged then-Comptroller Dawn Clark Netsch, she accused fellow Democrat Quinn of trying to playing a “political chess game” at the expense of state vendors who were owed money.
Just one more strike against the governor. Man, did he ever blow this one. Thoroughly.
Just in: Comptroller Dan Hynes says no to Gov. Quinn’s plan to borrow $500 million to pay state’s bills
If you’re a subscriber, that was expected.
*** UPDATE 2 - 1:15 PM *** Hynes has sent the governor a letter announcing his decision. Click here to read it. Page 2 is here. [Fixed links.]
Hynes points out that he has already signed off on $2.25 billion in borrowing over the past seven months…
“That is a historic amount of short term debt and the state will risk default if that money is not repaid by June 10, 2010. Any additional short-term borrowing such as you now propose would further strain a state budget that can barely accommodate the currently scheduled debt service and critical on-going payments our office must make, especially given the $900 million revenue failure you office has now projected.
“The expected ‘federal and state revenues in excess of $600 milliion’ you refer to has already been incorporated in the existing cash managment plan. My office must prepare this month to reserve funds for the first installment of the $2.25 billion to be repaid beginning in March. Absent an additional revenue source dedicated to the repayment of any new notes, there is insufficient flexibility in the latter half of the year for additional debt service payments. In essence, the proceeds from the short-term borrowing you request would need to be set aside immediately in order to pay it back. For this reason alone, I would have problems supporting your plan as presented.” [Emphasis added]
Hynes goes on to say that if the governor had, as promised, sold $3.5 billion in bonds to make the pension payment in September, things would be different. If the bonds were sold as late as the end of October, Hynes claimed, it “would have allowed the state’s General Funds including the Common School Fund to receive $700 million in cash reimbursements… and would reduce our current payment backlog by $667 million.”
Hynes also quotes “a former State Treasurer”…
“Rollover borrowing always digs government deeper into holes.”
That former treasurer was none other than Pat Quinn. Quinn made that statement when he was fighting with Jim Edgar in 1992 (see above). “Your current proposal is not dissimilar in that it effectively constitutes rollover borrowing,” Hynes wrote.
Hynes concludes by saying he is willing to work on a “comprehensive” plan, but one that “addresses less than 5% of the backlog” of state bills is “neither comprehensive nor is it fair to the very state service providers we both wish to assist.”
*** UPDATE 3 - 1:37 PM *** The treasurer’s office just said that they still have not seen any documents on the governor’s short-term borrowing plan. Quinn’s budget office promised them by this afternoon, according to Giannoulias’ spokesperson.
I would like to begin by thanking you for your outstanding efforts in providing critical services to the people of Illinois. I remain impressed as always by the important work you do to ensure that our most vulnerable citizens are cared for and protected. Moreover, your ongoing commitment to continue working in good faith as business partners with the State of Illinois is truly commendable given the fact that the State has been anything but a good business partner in return. I know that the current payment situation has caused many of you personal anguish as well as professional difficulties as you struggle to maintain viable service levels.
Your commitment and perseverance stands in stark contrast to the state’s actions over the past few years. Providers have been placed in an extremely vulnerable situation as you were subjected to needless anxiety during budgetary stalemates that did not allow you to develop your own budgets and left you wondering what program levels would be funded and whether service terminations and staff reductions would be necessary. Now after too many of you have made painful decisions and sacrifices, the state is months behind in meeting its financial obligations to you, so I don’t blame you for being angry. You have every right to be.
The level of unpaid obligations in my office stands at $4.4 billion and will continue to grow as there is simply insufficient revenues to meet all the demands. The state has borrowed $2.25 billion that must be paid back within the next six months. There is a new proposal to borrow $500 million more, a sum that I believe will simply exacerbate the existing problem of paying back the money we already owe, and more seriously, give false hope to all of you awaiting payments from the state. I refuse to agree to a “solution” that addresses only 5% of the problem and even then only for the very short term at the risk of creating a bigger problem No matter what else you may hear about the benefits of more borrowing, that is my honest assessment.
Like you, I am disappointed as well as deeply concerned that you have been placed in this situation. You deserve better, and the people that you work with and care for deserve better as well. Instead of the non-stop cycle of extended payment delays, we need a comprehensive plan that will eliminate the deficit and restore fiscal stability to Illinois for the long term. Most importantly, it is time for our leaders to recognize that the public service community and its hundreds of thousands of employees is not just an essential purveyor of critically needed services to our most at risk population but is a significant element of our state’s economy. I not only recognize that fact but will continue to seek meaningful ways to address the problems confronting the service community and to maintain what is in many ways is one of Illinois most important infrastructure components.
In the meantime, going forward, I will work with you to the best of my ability, as I always have, and be honest with you, as I always have, to address the day to day problems that confront us.
Sincerely,
Daniel W. Hynes
Comptroller
*** UPDATE 5 - 4:13 PM *** Treasurer Giannoulias told reporters this afternoon that he is leaning in favor of supporting the plan. That would put Hynes out on a limb all by himself. Giannoulias apparently stressed that the federal Medicaid match would more than make up for interest and fees and that the money could be repaid.
Gov. Pat Quinn says Illinois Comptroller Dan Hynes must reconsider his decision to oppose borrowing $500 million to help pay the state’s bills.
Quinn said Friday that “nope” was not an option when social services are at risk because agencies can’t pay their employees. They can’t meet payroll because they aren’t getting the money the state owes them.
*** UPDATE 7 - 4:32 PM *** I just got off the phone with the comptroller’s office. They were pretty surprised to learn that the treasurer’s people think there’s enough liquidity to pay off these short-term loans, even with the Medicaid match.
At a Chicago news conference, Quinn shot back with the kind of shaming, populist attacks that he’s gotten so good at. He chided Hynes for letting struggling social service entities to go unpaid, warning of “a human toll” if those agencies end up laying off their workers because they aren’t getting the money they’re owed from the state. He even invoked Christmas.
Quinn also pointed out that the state has previously engaged in short-term borrowing to pay bills 11 times during Hynes’ tenure as comptroller, and that Hynes didn’t refuse to sign off on those plans.
“We have a campaign going on; everybody knows that,” said Quinn — more or less openly accusing Hynes of holding up the money as a campaign strategy. “ . . . A policy of `no, no, no’ is not a good policy for the people of Illinois.”
*** UPDATE 9 - 5:00 PM *** Raw audio of Quinn’s Q&A with Chicago reporters can be heard by clicking here.
*** UPDATE 10 - 5:23 PM *** I just listened to the audio of the governor’s press conference. Quinn repeatedly went after Hynes for approving short-term borrowing for Rod Blagojevich even after he was arrested. Score on political point for Quinn. (On the other hand, Quinn could be pegged as even more of a bumbler than Rod). The governor also stressed a new AA rating from Fitch to say that the government was doing better than expected.
Overall, he did a good job handling the Chicago media and that’ll probably be reflected in their usual scant coverage.
* You’ve often seen me complain about the Peoria Journal Star’s political coverage - mainly their silly columnists who don’t seem to know much about politics.
But you’ve never once seen me complain about Adriana Colindres, the PJ Star’s Statehouse bureau reporter. Colindres is top notch all the way. She’s one of those real reporters who gets down to the nitty gritty. She’s not flashy, a bit on the quiet side (OK, more than a bit), and her stories are always solid.
Colindres’ paper laid her off yesterday.
What a stupid, stupid move, but all too common these days. Sacrifice state coverage for local puff pieces.
Best of luck, Adriana. If there’s anything I can do, just ask.
* Meanwhile, if you want to learn more about Mother Tribune’s new CEO, take a look at this Salon piece from 2001. I’m not gonna excerpt it because it’s kinda racy, and if your employer would frown on that sort of thing you might want to wait until you get home. When you do look at the piece, search the page for “Behind the mike.” The juicy part starts there. Or, click here and scroll down to the excerpt. I’m sure all Trib Co employees are super proud this week.
Senators Diane Feinstein and Dick Durbin are attempting to narrow the definition of a journalist in the federal shield law under consideration by the Senate Judiciary Committee this morning. Their amendment would limit protection from testifying to professional journalists working for “a newspaper, book, magazine, or other periodical.” Not included: student journalists, amateur bloggers, or even freelancers working without a contract.
Markos Moulitsas had the news last night. I’ve been on the phone this morning with people who have worked on the bill, and the consensus is that Feinstein and Durbin are introducing the amendment out of national security concerns: If the shield law is too broad, they reason, it could afford protection to criminals and terrorists who claim the mantle of journalism. Neither senator’s office has returned my calls, and it’s not clear if the amendment will be adopted at today’s committee meeting.
The version of the shield law already passed by the House (H. 985) defines a journalist in monetary terms, covering only those who gather and disseminate information “for a substantial portion of the person’s livelihood or for substantial financial gain.” The Senate has waffled between a similarly professional definition and one that would cover amateurs. The White House, which had dragged its feet on the shield law over national-security concerns, is said to support the broader definition.
A number of news-industry groups, including the Newspaper Association of America, are also supporting coverage for amateurs. Kevin Goldberg, general counsel for the American Society of News Editors, told me today: “There are already exemptions for national security in the bill. If the concern is that the guy holding the video camera for an Osama bin Laden tape is not going to have to testify, that’s a little far-fetched.”
So, Durbin’s not worried that terrorists will strike Illinois if we move Gitmo prisoners to Thomson, but he’s actually fretting that a terrorist will be shielded as a journalist, even though there is already a provision in the bill that forbids shielding terrorists? Give me a break.
Frankly, I don’t want the government taking any role in defining who a journalist actually is. They’ll just screw it up and make life difficult for too many people.
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CBS 2 Political Editor Mike Flannery on Thursday talked with Democrat Cheryle Jackson, who completely missed a deadline several months ago to provide a list of her assets and potential conflicts of interest to the U.S. Senate Select Committee on Ethics
Another Democrat, Jacob Meister, also did not submit the form. But he requested – and received – an extension. A spokeswoman for the Ethics Committee told CBS 2 they received nothing from Jackson. She is now subject to a mandatory fine for filing late, and could face additional penalties.
The report to the Senate Ethics Committee tells voters what assets, such as corporate stock, a candidate owns and what potential conflicts of interest they may have.
Jackson called it “an oversight.” She added that she’s doing a complete review of her involvement with several not-for-profit boards before completing the disclosure.
If Jackson raises the money, I think she has a shot at winning the primary. But she doesn’t need stuff like this coming out. Inexcusable.
She didn’t look all that good when Flannery spoke to her yesterday. Watch it…
To his credit, as state party chairman at the 2008 GOP convention in Decatur, McKenna had angry public words for some of those who helped destroy their party, standing up to former Gov. James Thompson and pension fund insider Bob Kjellander (R-Blagojevich).
“I’ve done what an outsider would do. I made tough decisions as chairman of the party, we took steps on ethics that some insiders disagreed with, and I asked certain people like Kjellander to leave their roles in the party,” McKenna said. “I wouldn’t be doing this if I wasn’t prepared to go to Springfield and make the necessary decisions.”
An outsider who wants to work in Springfield?
Fascinating.
Yeah. Fascinating.
* I told subscribers about this story today and yesterday. It’s a doozy…
Republican veteran Steve Rauschenberger’s attempt to take back his Elgin-based state Senate seat is under threat because he may not be Republican enough.
In the latest bizarre chapter of Illinois’ thick history of kicking candidates off the ballot, Rauschenberger could lose his spot in the GOP primary because he pulled a Democratic ballot for February’s local elections. […]
Meanwhile, with Rauschenberger’s position for the Feb. 2 in contention, three Republicans filed Thursday as write-in candidates, including Kane County Recorder of Deeds Sandy Wegman.[…]
Elgin Township Clerk Kurt Kojzarek and Elgin attorney Jeff Meyer also filed. Rauschenberger said he encouraged those two candidates to file. If he is scrubbed from the ballot, he could theoretically ask one of them to step aside after the primary so he could be slated.
I am more resolved than ever to defeat Michael Noland in Nov of 2010. I expect to do it as a Republican, but I will run as an Independent if I have to.
[ *** End of Update *** ]
* Any story that quotes Delmarie Cobb as a political prognosticator is not one you should trust all that much, so the Reader’s piece on Alexi Giannoulias would fall into that category…
If [the Giannoulias family bank] were to fail, the federal government would be on the hook to cover much of Broadway’s $1.1 billion in deposits out of money that banks—through fees paid by their customers—contribute to an insurance fund.
And what would happen, some Democrats wonder, if that happened after Giannoulias won the Democratic nomination but before the general election?
“I think we’re going to lose the seat,” says Delmarie Cobb, a political consultant whose clients include Burris (who’s not running to keep the seat). “He needed to spend [more] time in [state] office to let the controversies die down and build a record apart from them.”
First, the banks pay the insurance fees. It’s not a direct customer fee. And while there will be a huge uproar if the bank goes down, I’m not yet convinced it’s a total deal breaker. Giannoulias has lots of problems, as the article makes clear with its rehash of what we knew in 2006, and a bank failure (which is not guaranteed) would certainly contribute to and greatly magnify those problems because it makes it possible to use a new hook to bring up all that old stuff. But I wouldn’t be ready quite yet to say this would make him a sure-fire loser.
Still, the history of the bank most certainly played into the White House’s decision to court Lisa Madigan and others to run for Senate. Giannoulias will have a very rough road ahead if he wins the primary. The ads pretty much write themselves, but let’s not get ahead of ourselves quite yet.
A state EarnFare worker who claims to have collected petition signatures for Clerk of the Cook County Circuit Court Dorothy Brown in her bid for County Board president filed a formal complaint with the state Department of Labor today saying he hadn’t been paid for the work he was coerced into doing, illegal though it might have been.
Barry Johnson of Chicago said he collected 1,000 signatures for Brown and had been promised a dollar a signature by her campaign field director, Hasan Muhammad. Brown publicly ended her association with Muhammad after news broke that he had used state EarnFare workers to collect signatures.
Brown’s campaign spokesman did not reply to requests for a response.
Johnson said about 20 to 25 EarnFare workers collected signatures for Brown and that four or five planned to join him in filing formal complaints with the Department of Labor.
* Related…
* Editorial: Back bid to fix system of drawing districts : The goal is 500,000 signatures by April, enough to put a constitutional amendment on the November ballot asking voters if they want to strip from legislators the power to draw legislative districts and give that power to an independent, bipartisan commission. Nine other states already do it this way.
* Reform groups want major change in way state draws legislative districts: House Speaker Michael Madigan, D-Chicago, said he expects a proposal out of the Senate committee soon and will consider it. When asked if he thought there was a need for reform, Madigan pointed to political history. “I’ve said for a long time that I think the current system worked real well in the ’90s when the Republicans drew the maps then in the House the Democrats won four out of five elections,” Madigan said.
* Dem retirees present GOP with golden opportunities: Stuart Rothenberg is out with his list of the 12 House seats most likely to switch- 10 of them are Democratic held seats, including Moore’s . One interesting note- in prior lists, Illinois 10, Mark Kirk’s seat, was right near the top , but now it is not among the top 12.
* Candidates for governor should disclose tax info: Does disclosure of tax returns guarantee Illinois won’t see another governor indicted? No. Both George Ryan and Rod Blagojevich made their tax returns public. Nonetheless, such disclosures show a commitment to openness that voters have a right to expect.
“For those that think that tax increases are the answer, it’s a partial answer,” Madigan told an audience gathered for a panel discussion at the annual Illinois Legislative Latino Caucus Foundation meeting in Rosemont on Thursday. “Because you can raise the rate on the Illinois income tax, but if the economy is not performing you’re not going to get an increase in money out of the increase in rate.” […]
Madigan said while the public may be aware of the financial help provided to major banks under the federal stimulus package, many don’t know that institutions also borrowed from private lenders, and those loans come due next year. He said the banks may have a hard time making those payments, therefore there is a “major threat of further contraction” in the economy during the first part of 2010.
“Everybody should understand… we are in a very difficult economic situation,” Madigan said. “Not everybody in the country fully appreciates the gravity of the situation.”
The other reason, of course, is political. After the uproar over Todd Stroger’s tax hike, Madigan is loathe to touch a state increase.
* Meanwhile, Rome continues to burn. The state’s payments to community colleges will be delayed for months…
Yet, a cloud of uncertainty hangs over the state’s 39 community colleges, which could lose half their state funding this year, or roughly $148 million, despite seeing a 10 percent to 12 percent spike in student enrollment.
Colleges received the first of four quarterly disbursements from the state, due in August, just last week.
State officials confirmed the second funding installment originally scheduled for November could be delayed until May, which means the last two payments for the year would be pushed back until the 2010-2011 school year.
* And the Champaign News Gazette thinks the governor might be delaying capital program bond sales for political purposes…
If the bonds aren’t marketed until February or March, that means it likely won’t be until the second half of 2010 – probably long after the worst of the recession but much closer to gubernatorial Election Day – when any of the construction projects finally get under way.
Construction workers are out of work. Contractors are hungry for projects. The state’s economy is in miserable shape. Yet the state, according to Quinn, will wait a few more months to finally get the long-awaited capital bill rolling.
His only explanation for the delay is that he is relying “on the experts who run our budget department to pick the best time to get the best rate” for a bond sale.
Skeptics, whose voices are getting louder and louder as the state’s unemployment rate grows by the month, suggest that Quinn is most concerned not with putting people back to work “right now” but with election days in February and November. We hope the governor is prepared to prove those skeptics wrong.
As Daley began to speak, he quickly was interrupted by a heckler at the rear of the crowd. “What about the parking meters?” the man shouted, referring to the controversial long-term lease of city meters that sent rates soaring this year.
Daley took it all in stride, smiled and said, “I know. They are doing very well, thank you.” Then he chuckled, and repeated, “They are doing very well, thank you.”
The crowd laughed along
They’re doing well? For whom? What arrogance.
And that was some real guts displayed by that heckler. I can’t recall Daley being heckled at a public event since he was elected mayor. He’s made himself such an imposing figure that nobody dares speak against him. I wonder if the heckler’s car was towed.
Word is CTA President Richard Rodriguez, who was appointed by Mayor Daley in February, may be leaving to return to the private sector.
Word is Daley’s chief of staff Paul Volpe may become the next CTA chieftain. (Volpe, who was the mayor’s point man on the parking meter lease deal, once called City Inspector General David Hoffman’s claim of a $974 million taxpayer loss on the deal “ridiculous.”)
Word is City Aviation chief Rosemarie Andolino may become Daley’s new chief of staff.
Word is Pat Harney, the mayor’s deputy chief of staff, may become the city’s new aviation chief.
Mayor Richard Daley today said his wife, Maggie, is doing “very well” but that he does not know her prognosis as she continues radiation therapy for cancer.
The mayor made his first public comments since last night’s disclosure from his office that Maggie Daley will be getting around in a wheelchair because of her latest treatment for cancer.
“She’s doing very well. She’s having meetings today about afterschool programs. . . . She’s had many setbacks. In all families, you have setbacks. But the family comes together [to] be able to defeat any setback in life. . . . Her commitment is to be able to defeat this.”
* Related…
* Daley adds bitter twist at French market opening : Mayor Daley on Thursday used the grand opening of the Chicago French Market to browbeat aldermen who wanted him to erase a massive budget shortfall by borrowing from the $1 billion stashed away in tax increment financing districts.
* Hinz: How to get Daley’s Christmas gift to you: To get your money, click on this link, look for the “property tax relief” button, and download the application. Submit it at the addresses listed below, enclosing a copy of your tax bill and a photocopy of your picture ID. The link will go live on Monday, Dec. 7, with applications due no later than March 31, 2010.
“If there aren’t any Asian carp, we still believe it was an essential operation,” John Rogner, assistant director of the Illinois Natural Resources Department, said before the lone 22-pound fish was found.
* A hearing on a half-dead historic district: The state takes up Michael Reese today
For historic preservationists, the fantasy outcome has to be that the council will shame Mayor Richard M. Daley by saying “yes” to the recommendation, thereby making it clear to all the world that the mayor is engaging in an act off cultural vandalism.
But the likelihood of that really happening? Probably somewhere between slim and none.
Weis said the police still need to make sure they have spoken to everyone who came into contact with Scott over the week before his body was discovered Nov. 16 near the Apparel Center at 350 N. Orleans.
* Lathrop Homes: Chicago plans to move ahead with redevelopment of public housing complex
Despite an ongoing effort by residents of Lathrop Homes and several community organizers to preserve the low-income public housing complex — including a push to designate the site as an historic landmark — the city is moving ahead with plans to begin redeveloping the complex next year.
A City of Chicago supervisor pocketed cash bribes and was treated by developers to Bulls skybox tickets — all in exchange for overlooking code violations and pushing through permits, prosecutors said Thursday.
Crowded and underfunded, suburban shelters turned away an increasing number of homeless last year and already have done it this year even though temperatures have been above normal since October, the traditional start of shelter season.
Starting Jan. 1, motorists who use Illinois Tollway I-PASS transponders on the Indiana Toll Road will be paying a little more — 3 cents per toll — for the privilege.
* Oak Lawn chips away to try to balance 2010 budget
A $1.4 million deficit in Oak Lawn’s 2010 budget has been pared to $1 million, leaving village officials to again consider more cuts instead of raising or introducing taxes.
When residents of the 1000 block of N. Taylor Avenue heard a helicopter circling at 6:30 a.m. Thursday, they didn’t know that would mean the federal arrest of a neighbor.
Within several hours, cyber-crimes agents from the Chicago office of the U.S. Bureau of Immigration and Customs Enforcement, backed by Oak Park police, served a search warrant on the house at 1000 N. Taylor, seized a computer and took Kevin G. Fuller into custody. Neighbors say the 41-year-old biology professor at Columbia College was a quiet and polite man who lived in a modest corner house, kept the back yard well maintained and tended a parkway garden. A federal judge says he’s a danger to the community. […]
The 1,500-square-foot house at 1000 N. Taylor is owned by Chicago radio personality Bruce DuMont, who is president and CEO of Chicago’s Museum of Broadcast Communications. Neighbors and public records indicate Fuller has lived at the address since 2003.
The men appear to have known each other since at least 1997. A newspaper article from that year in Fuller’s hometown paper in Rockmart, Ga., notes that Fuller met President Bill Clinton at a Museum of Broadcast Communications fundraiser at the Chicago Cultural Center, and quotes DuMont. On the museum’s Web site Friday, Fuller appeared in two photos, one at May 2009 banquet and another with the caption “MBC staff, volunteers and Junior Board.” Those images have since been removed.
There was no answer at the door of DuMont’s house Friday morning. DuMont has not returned phone messages left with his secretary or replied to e-mails.
