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*** UPDATED x3 *** We’re Number 2!!! - And other updates

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Reuters expands on its story from earlier today about the Moody’s bond rating downgrade. We’re now the second-lowest rated state in the nation. Man, this is not good

The downgrade gave Illinois the second lowest U.S. state rating from Moody’s, with California having the lowest at Baa1, a Moody’s spokesman said.

How many minutes before this winds up in a TV ad?

Three… two… one….

* The Sun-Times has a brief post online about the AFL-CIO endorsements

A spokesman for state Comptroller Dan Hynes said they were thrilled the organization gave a “stinging rebuke” of the sitting Democratic Governor, Pat Quinn, by not endorsing him.

But Quinn’s office was reportedly happy the union did not endorse Hynes, who has racked up an impressive number of union endorsements for a challenger, including the Illinois Federation of Teachers on Monday.

I’ll have more on this for subscribers tomorrow, but I think Hynes got what he wanted here, and Quinn fumbled what should’ve been a sure thing, but in the end dodged a political bullet.

* In other campaign/endorsement news, Steve Rauschenberger has endorsed Dan Proft for governor

This morning on the Don Wade & Roma Morning Show on WLS-AM 890, former State Senator Steve Rauschenberger endorsed Dan Proft for Governor in the Republican 2010 primary. […]

“I am proud to endorse Dan Proft’s candidacy for Governor because Proft is the only candidate who has properly diagnosed what afflicts state government and is prescribing the right policy remedies,” said Rauschenberger, who is seeking to regain his old senate seat currently held by State Senator Michael Noland (D-Elgin)

“The other candidates believe we have a management problem in state government. Proft correctly understands that it is a system problem.”

Rauschenberger, a well-respected former member of the Senate Appropriations Committee and lead budget negotiator for the Senate Republicans, cited Proft’s plans to cut taxes and impose statutory spending caps in his endorsement.

* And the Kane County Board voted this morning to opt out of legalized video gaming

In a 12-11 vote, board members narrowly approved a measure that bans the practice of legal video gambling in businesses in unincorporated Kane County.

The measure, of course, applies only to unincorporated areas of the county.

* Also, the US Supreme Court is hearing the “honest services” case today and is asking some tough questions

They peppered federal government lawyer Michael Dreeben with questions about the so-called honest services law that’s commonly used to prosecute corporate executives for fraud.

Justice Stephen Breyer was particularly forceful, suggesting that under the law a U.S. employee could be charged for going to a baseball game on company time because prosecutors could argue the worker was depriving his employee of honest services.

There are 150 million workers in the United States, Breyer said, and 140 million of them would “fail your test,” he told Dreeben.

And

Justice Stephen Breyer said he worries that the Obama administration’s interpretation of the law could be used to criminalize huge swathes of the U.S. workforce for such offences as reading The Daily Racing Form on the job.

And

Justice Antonin Scalia repeatedly criticized the law for being “inherently vague” and said Congress should have been more specific.

He said that not even the Justice Department can figure out exactly what activities the law covers. “I don’t see how you can expect the average citizen to figure it out,” Scalia told the government lawyer.

Justice Anthony Kennedy said vagueness “is the lurking problem here” while Justice Ruth Bader Ginsburg said lower courts have been “massively confused” about the law’s reach.

*** UPDATE 1 *** From the Quinn campaign…

As a former member of the Teamsters and the United Food and Commercial Workers, Governor Quinn is honored by the support he has received from organized labor. To date, Governor Quinn’s campaign has received endorsements the Service Employees International Union, the United Auto Workers, the International Brotherhood of Teamsters Joint Council 25 and several other major unions. Together, the labor groups that have endorsed Governor Quinn represent more than 450,000 hard-working men and women.

Union leaders have praised Governor Pat Quinn’s vision of economic development and his effective leadership in passing Jobs and Growth for Illinois, the state’s first comprehensive public works program in more than a decade. Over the next six years, Illinois Jobs Now! will create and retain more than 439,000 jobs, helping to revive Illinois’ economy.

Throughout his entire career, Governor Quinn has been proud to stand with organized labor, walking picket lines and speaking out when workers’ rights to health coverage, decent work conditions, and fair compensation have been threatened or unfairly taken away.

*** UPDATE 2 *** Comptroller Hynes responds to the Moody’s downgrade…

This report confirms what I’ve long said. Illinois state government’s habit of spending more money than it takes in is harming the state’s ability to rebound from the downturn in the economy, making it more difficult for businesses to thrive, for people to find and keep work and for this state to move forward.

The rating agency obviously took issue with the delay in any meaningful resolution of the state’s fiscal situation until February.

It also confirms that undertaking additional short-term borrowing, when the state already owes $2.25 billion in short-term borrowing, is a bad idea.

*** UPDATE 3 *** From the governor’s office…

Moody’s downgraded the State of Illinois’ General Obligation Bonds and Build Illinois Bonds one notch from A1 to A2. This downgrade is the result of the nationwide economic downturn and the long-term mismanagement of the state’s finances. It underscores the urgency for solutions and emphasizes the need to take action immediately.

The Quinn administration has been examining and exhausting every possible remedy to solve the budget crisis. The administration has proposed budget cuts, borrowing, revenue increases, and has asked for help from the federal government. We need everyone to work together and compromise for the common good to come up with solutions to solve this budget crisis.

  41 Comments      


Question of the day

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* We’re running late today because of various breaking news items, so I apologize for that. Anyway, let’s get on with it.

Andy McKenna’s TV ads claim the state is “facing bankruptcy.” McKenna repeated the bankruptcy claim to Greg Hinz today

Mr. McKenna did not say how he’d persuade state workers unions to get their members to pay more [pension contributions], but added, “The alternative is, we go bankrupt. That’s not good for everybody.”

A judge cannot force a state into bankruptcy, and no state has ever technically declared bankruptcy, even during the height of the Great Depression. We’ve had this discussion several times in comments, but I thought we’d front-page it today.

* The Question: In your opinion, is this a gross misstatement that ought to be corrected by the media and the candidate, or is it no big deal and simply a use of dramatic license? Explain.

  59 Comments      


More bad budget news

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Budget director David Vaught told Chicago Public Radio that he wants state agencies to cut 14 percent from their spending

VAUGHT: We don’t want people to, to think that this is a minor situation. It’s not. We’ve got some serious problems that involve big numbers. And so we’ve got to plan in double digits. And so to say to agencies ‘we want you to cut 10 percent’ just would not have been realistic.

Vaught says he hopes to save two billion dollars by cutting the budgets of state agencies. He’s also looking at borrowing more money and raising taxes.

If there’s no tax increase, and I’m really doubtful about that, then a 14 percent spending cut will look like chicken feed this time next year.

* Remember last week when Gov. Pat Quinn was trumpeting a positive bond rating from Fitch as evidence that his fiscal stewardship was working?…

Armed with a new AA bond rating from Fitch Rating Service that he says demonstrates the state is a “good credit risk,”

You probably didn’t catch that unless you’re a subscriber. As I told subscribers this week, the Fitch rating was on bonds that are not only secured by the sales tax, but have first dibs on sales tax receipts, so the rating wasn’t exactly a huge deal, nor a direct reflection on Quinn.

Today, though, Moody’s downgraded some debt ahead of the sale of those very same sales tax-backed bonds. Well, I’m wondering what the guv thinks now. This is from Reuters. No link yet, but it’ll pop up soon…

Moody’s Investors Service on Tuesday downgraded Illinois’ general obligation bond rating to A2 from A1, citing the state’s financial woes.

Moody’s said it also downgraded other Illinois ratings, affecting about $24 billion of outstanding debt, including the state’s Build Illinois sales tax revenue bonds, which were also cut to A2 from A1. […]

As a result, Moody’s also revised the outlook for the state’s GO and related ratings to negative, “reflecting the continuing likelihood of large structural budget deficits, growing negative year-end fund balances, strained operating fund liquidity and mounting pressure from pension and retiree health benefit obligations.”

More

Moody’s said Illinois identified an $11.6 billion budget gap–a $4.3 billion deficit for the latest year and a projected $7.3 billion one for the current year–when the firm began its review of the state’s ratings five months ago. That $11.6 billion gap accounted for more than a third of the state’s expenditures last fiscal year and was one of the largest among U.S. states.

Making matters worse, the governor’s proposal in March to address the gap this fiscal year by raising tax rates by half and reforming pensions failed to win support in the legislature

* Meanwhile, in other news, perhaps the idea that the state’s legalizing of video poker will take the Outfit out of the picture will gain a little bit of media traction now that the Sun-Times is reporting that a federal investigation is afoot

A federal investigation of mob-backed video poker machines is now under way in the Bridgeport neighborhood, sources have told the Chicago Sun-Times and NBC5 News.

Yeah, it’s the mayor’s old neighborhood, so that’ll probably dominate the news. But there’s much in the Sun-Times story worth keeping in mind when you decide it’s OK by you to maintain the status quo. For instance…

Authorities believe the video poker machines, which produce illegal payouts, tie back to the operation of the late Joseph “Shorty” LaMantia, a top lieutenant in the 26th Street Crew.

LaMantia, in turn, worked under Frank Calabrese Sr., who was convicted in 2007 in the historic Family Secrets trial, involving 18 unsolved mob murders. Calabrese, Joseph Lombardo and three others were found guilty on racketeering and conspiracy charges.

Prohibition enriched mobsters beyond their wildest dreams. Heck, we’re still seeing the effects of it today. Calabrese belongs to the same outfit Al Capone once perfected.

What the Sun-Times editorial board and others are missing is that the current quasi-legal machines can only operate under a special state amusement license. Those licenses expire as soon as the new legalization program kicks off. If tavern owners keep the unlicensed machines, the machines can be seized and destroyed. No more need for long, expensive investigations of possible illegal payouts. They’re just gone.

* Related…

* Editorial: State nearing its limit on gambling

* Morton: No video gambling

  34 Comments      


State Fed neutral in guv’s race and other campaign news

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* As I’ve already told subscribers today, the Illinois AFL-CIO has decided to remain neutral in the Democratic gubernatorial primary. Hynes’ press release just arrived, so I figured it was time the rest of you heard the news…

In a major rebuke to a sitting Democratic governor, particularly one who touts his dubious record on job creation, the Illinois AFL-CIO chose today not to make an endorsement in the race for the Democratic nomination for governor. The federation of Illinois labor organizations voted 58-42 in favor of challenger Dan Hynes.

“Rather than offering the expected formality of endorsing the sitting Democratic governor, the Illinois AFL-CIO today instead issued Pat Quinn a stinging rebuke by opting not to make an endorsement in the race for the Democratic nomination,” Hynes campaign communications director Matt McGrath said. “Make no mistake, this is a direct reflection of the Governor’s lack of leadership and inability to create jobs. No matter how many ribbon cuttings Pat Quinn attends and takes credit for, the working men and women who actually build and repair our communities and infrastructure clearly know better.” […]

“The events of recent days add up to one thing: more and more people are alert to the fact that Dan Hynes has the vision and the ideas to lead our state forward, and our campaign has real momentum,” McGrath said. “The budget continues to be a mess and unemployment is at record highs, and Dan is the one candidate offering real solutions, with the record and competence to see it through.”

I’ve asked the governor’s campaign for a response and will post it here as soon as it arrives. SEIU and some other big unions have gone with Quinn, so the governor should’ve had the advantage, particularly since he’s an incumbent governor who signed the first capital bill into law since George Ryan’s days.

* Gov. Quinn reacts to Dan Hynes receiving the Illinois Federation of Teachers’ endorsement

Quinn said he was “disappointed” he didn’t get the teachers’ backing.

“You always want to try to get every endorsement you can,” he said.

As the campaigns march toward the February primary, another plum teachers’ union endorsement is still up for grabs: the 133,000-member Illinois Education Association. If the union makes an endorsement, it won’t be until after a January board of directors meeting, said union spokesman Charles McBarron.

The IEA often stays out of statewide primaries, but this is a hot one and it’s always possible they could jump in. Stay tuned.

* Mary Mitchell slams Mayor Daley for refusing to endorse Todd Stroger for reelection

When you consider how much Stroger’s father, John Stroger, stuck his neck out for Daley when Daley needed it the most, the about-face is nothing short of appalling.

The elder Stroger stuck his neck out for Daley time and time again. I agree that there’s a serious debt there that can never be fully repaid, but John Stroger was county board president for quite a while and the son was dragged across the finish line and given every chance to prove himself. He screwed up. Debts only last so long, particularly political debts to somebody who had nothing to do with the original debt and who has so thoroughly screwed up his family’s formerly solid name.

* Democratic US Senate candidate David Hoffman took questions on Daily Kos yesterday. As usual with posts like that, not much actual news was made.

There were a couple of interesting moments, however. Alexi Giannoulias’ campaign has hired Georgia Logothetis, better known as former front-page DKos blogger “Georgia10.” Logothetis and other Giannoulias backers were fully engaged during the discussion, rebutting Hoffman’s polling claims and posting Giannoulias’ positions on various issues. Hoffman’s campaign did the same to Giannoulias over at DKos last Saturday, so turnabout was fair play, I suppose.

The other item of interest to me was finding out that Hoffman has hired former Democratic congressional candidate John Laesch, who ran against former Speaker Denny Hastert and lost and then lost the Democratic special primary to Bill Foster. As longtime blog readers know, I’m not exactly a fan. He’s also probably looking for a little revenge on Giannoulias, whose endorsement of Foster inspired this Laesch retort

Laesch shrugged off Giannoulias’ endorsement, calling him “just a wealthy guy who bought himself an office.”

But the pièce de résistance - for me, at least - was this comment by Laesch


“Abraham Lincoln, I don’t know if you know this, he didn’t [free the slaves] for the right reason, social justice. He just did it because so many white people were out of work because they couldn’t compete with slave labor.”

Whew.

Nice hire, dude.

  45 Comments      


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Tuesday, Dec 8, 2009 - Posted by Rich Miller

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Ryan: Tax hike now would be “criminal”

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Republican gubernatorial candidate Jim Ryan used some extreme rhetoric when talking about tax hikes to the Tribune editorial board yesterday…

Ryan, the former attorney general and DuPage County prosecutor who lost as the GOP governor nominee to Blagojevich in 2002, maintained that “to raise taxes during this recession is criminal.”

Asked for specific cuts in the state budget to eliminate the deficit, Ryan said “I don’t know if I can get there exactly,” though he joined the others in proposing reduced pension benefits for future state workers and instituting a managed health care program for the poor. But Ryan also said he would “cut aid to municipalities—at least reduce it if not eliminate it.”

You’d think if a tax hike was “criminal,” you’d have a plan to keep the awful event from ever happening.

Ryan added that cutting revenues to local governments “will put them on a diet and also save us money.” They’re already starving, so that’ll be one heckuva diet.

As we’ve already discussed, two years ago Ryan was supporting a big tax increase, but times change, and people decide to run for office. Also, he’s no longer listed as a board member of the Center for Tax and Budget Accountability, which still supports a tax hike despite the recession.

* Ryan’s remarks were made during the Tribune’s infamous closed-door editorial board candidate debates. In the past, they’ve posted audio of the debates, but I didn’t see anything online for the GOP gubernatorial hopefuls. Here’s a bit more…

Adam Andrzejewski, a Hinsdale businessman, said he would go further than the others on proposing pension reforms, vowing to take responsibility for retirement programs away from lawmakers and the governor and turn it over to each agency or local government.

I’m not sure what “each agency” means. But could that mean the State Board of Education would control the teachers’ pension fund? Yeah, that’ll work.

More…

McKenna criticized Dillard and Brady did the same to Schillerstrom over the DuPage County politicians’ backing of higher sales taxes for regional mass transit — a move likened to the unpopular sales tax imposed under Cook County Board President Todd Stroger. “You’re from downstate,” Schillerstrom, a Naperville resident, told Brady. “You didn’t have to worry when the trains stop running.”

* Greg Hinz takes a look at some of Sen. Bill Brady’s budget proposals. One point…

Similarly, despite all the red ink in Springfield, he’d repeal the sales tax on gasoline, eliminate much of the estate tax and repeal business-tax hikes pushed through by ex-Gov. Rod Blagojevich — a total of about $1 billion a year in revenues.

Mr. Brady says such steps would pay for themselves by reviving the state’s moribund economy, thereby generating more taxes.

The last time gas taxes were cut, it didn’t result in a spike in receipts as some had promised.

* Back to Jim Ryan for a moment. The candidate told ABC7 recently that he believes “most people in Springfield are good people. Most people in politics are good people.” But, he added, that the Democrats have failed and claimed “Honestly, I don’t think representative government works in Illinois. It doesn’t. Because I don’t know who they’re representing. They’re not representing me. They’re not representing you. Who, exactly, are they representing?” Take a look


  52 Comments      


Rate Bill Brady’s first ad

Tuesday, Dec 8, 2009 - Posted by Rich Miller

* Republican gubernatorial candidate Sen. Bill Brady begins running his first TV ad today. I’m not sure yet how many points are behind it. But, let’s go ahead and rate it


  51 Comments      


Morning Shorts

Tuesday, Dec 8, 2009 - Posted by Mike Murray

* Vice provost: furloughs possible for faculty, staff

* Some Caterpillar jobs to leave Illinois

Caterpillar Inc.’s new parts distribution plant in Clayton, Ohio, will result in some jobs moving from its logistics center in Morton and will replace the company’s regional distribution center in Indianapolis, the company said Monday.

About 170 material specialist positions will move from Morton to Clayton when the new $65 million, 1 million square foot plant opens in 2011.

* More firms plan layoffs than hires in early ‘10, study says

Employment services firm Manpower Inc. found that among companies it surveyed in the Chicago-Naperville-Joliet area, 16% plan to cut payroll during the first three months of the year. Just 8% plan to add workers, the outlook survey showed.

* Chicago’s hiring outlook bleak for early 2010

* Area gas down 14 cents from month ago, up $1 from year ago

* Tax Rebate Available for Chicago Homeowners

Households that earn less than $200,000 a year can get up to $200 back. Mayor Richard Daley is paying for the $35 million program with money from the controversial parking meter lease.

* Chicago and the American Metropolis: Urban Policy and Our Region’s Future

* Chicago to use honor system to dole out $35 million in property tax relief

Chicago will dole out $35 million in property tax relief on the honor system, but only to a point: One of every 50 applicants will be required to produce their 2008 income tax returns.

* Mayor’s nephew: I’m out of city pension deals

Mayor Daley’s nephew Robert Vanecko says he no longer has a financial stake in a real estate investment firm he co-founded that got deals to manage $68 million for five city pension funds.

* City reacts to South Loop parking confusion

* Pay for year not served on board key for election

Not only will Democrat Carolyn Gardner get her 9th District seat on the Winnebago County Board on Thursday, she’ll be paid $7,500 for the year the Illinois Supreme Court said she should have served but couldn’t because Republican appointee Ted Biondo was holding down the fort.

* City, county seem close to deal on high-speed rail

* Busy week in store for Springfield city government

* Davlin says he opposes property tax hike

* Traffic cameras, guns on City Council’s wish list

* Our View: Some city woes needed no crystal ball to see coming

* District 150 ends fiscal year with $8.9 million deficit

* Flossmoor to dip further into savings to cover costs

* School District forecasts $30M shortfall

* Lockport High School board eyeing referendum question

* Dist. 186 broaches how to finance overhaul

* Teachers too valuable to be allowed to strike

* SD 144 negotiations resume today

* Orland Park trustees OK 2010 budget; Dial-A-Ride fare lowered

* Orland Park to unveil LaGrange Road Corridor plan tonight

* Homer Glen Plan Commission wants village to drop plan for parkland purchase

* Maywood crime down in 2009

* Former Elgin city councilman Powers dies

* Swine flu: Homelessness, H1N1 flu a risky combination

Homeless people are more likely to be sick and have higher rates of chronic illness, placing them at the top of the priority list for receiving the H1N1 vaccination, experts say. But they are also far less likely to take such a preventive measure.

* Will carp lock out industry?

* Fishermen netting for Asian carp in Ill. channel

* Decade of 2000s was warmest ever, scientists say

* 55 to 65: Semi Speed Limit Increases After New Year

  4 Comments      


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Prosecutors may bring new indictments against Blagojevich

Monday, Dec 7, 2009 - Posted by Rich Miller

* Not unexpected, but it’ll be fun to see what they do

Federal prosecutors are promising to bring a new indictment against former Gov. Rod Blagojevich to avoid issues connected to an appeal before the U.S. Supreme Court on the scope of the federal “honest services” statute under which Blagojevich has been charged.

That would prevent the need to delay Blagojevich’s June trial date, they said.

In a filing today, prosecutors said they would handle the honest services question in the new filing against the former governor. The high court is expected to hear arguments tomorrow related to the limits of the federal statute. […]

[Assistant U.S. Atty. Reid Schar] wrote that, at most, some of the counts against Blagojevich would be dropped if the high court severely limited the use of honest services.

Happy early anniversary, Rod.

…Adding… It’s unclear whether this is related to the Sun-Times report the other day that the federal investigation of hiring abuses under Blagojevich is continuing. That report was mostly overlooked by the rest of the media, but it could prove important.

More

“To avoid any unnecessary delay in the June [2010] trial date, the government anticipates requesting the grand jury return a second superseding indictment in the instant case towards the end of January 2010,” prosecutors wrote today. “At this time, it is anticipated that any new charges would be based on the underlying conduct that currently encompasses the pending charges.”

  18 Comments      


Question of the day

Monday, Dec 7, 2009 - Posted by Rich Miller

* The news reports on how the Chicago police came to the conclusion that Michael Scott’s death was a suicide contained an interesting little tidbit

Much of that investigation involved public surveillance cameras that recorded Michael Scott over a roughly 45-minute time period as he drove to the location along the Chicago River where he would, police say, later commit suicide.

The cameras are all linked to the city’s 911 center as part of what is called Operation Virtual Shield. By entering a description of Scott’s Cadillac into the system, it gave detectives video of the vehicle as Scott drove it from multiple camera positions.

The program is referred to as video analytics and has been touted for its potential as a high tech crime-fighting tool. […]

The video analytics used to track Scott’s car searched through many terabytes of recorded video just based on the vehicles description.

* The Question: Are you comfortable with the knowledge that the Chicago police have this sort of surveillance capabilities? Explain.

  67 Comments      


Endorsement season kicks into high gear

Monday, Dec 7, 2009 - Posted by Rich Miller

* The Sierra Club endorsed Gov. Pat Quinn the other day, but don’t expect any endorsement like that for Republican US Senate candidate Mark Kirk

Environmental groups who champion cap-and-trade say Kirk has now cost himself general election support in a decidedly Democratic state. Cap-and-trade tops their agenda and appears to surpass other pro-environment positions the congressman holds.

“Mark Kirk is catering to a very vocal, very angry minority,” says Jack Darin, director of the Sierra Club’s Illinois chapter. “This is a very important seat and we want to know that our next U.S. senator is going to be a leader on environmental and energy policy.”

Both the Sierra Club and League of Conservation Voters sided with Kirk in his 2008 race against Wilmette Democrat Dan Seals, a battle that drew millions of dollars in spending and national attention.

In the past, Kirk has used endorsements from groups like the Sierra Club and others (anti-gun, pro-choice, pro-gay rights, etc.) to prove to his constituents that he’s not like other Republicans. That’s a big reason, maybe one of the main reasons, why he’s withstood assault after assault during gigantic Democratic years. Then again, Illinois isn’t like his congressional district - it’s more conservative as a whole.

* Turning to more local politics, a comment by Todd Stroger caused a stuttering, sputtering rejoinder by Mayor Daley. First, the comment

The embattled president of the Cook County Board says he can name a long list of elected officials and labor union leaders who have forsaken him. But it is the name at the top of Todd H. Stroger’s tally of defectors that stands out: Mayor Richard M. Daley.

Chicago’s mayor, Mr. Stroger said, has delivered a “slap” to his face by failing to support him in his bid for re-election when he badly needs political support.

The mayor’s reply

“I’ve never slapped anyone in the face — even symbolically I haven’t,” Daley said. “When is the last time you heard me criticize him?”

Asked if he supports Stroger’s re-election bid, Daley tripped all over himself.

“No, I didn’t — how do you know? How does he know?” Daley stammered.

Told that Stroger believes he does not have the mayor’s endorsement, Daley said, “Well, that’s his problem.” Asked if he intends to issue an endorsement, Daley said, “We’ll see.”

In more important county board president endorsement news, Ald. Toni Preckwinkle was endorsed by the New Trier Township Democrats yesterday with a whopping 83 percent of the votes.

* Back to statewide endorsements. I told you about this last week, but the Illinois Federation of Teachers made it official today. From a press release…

Citing his record as Illinois comptroller and stances on education and labor issues, the Illinois Federation of Teachers has unanimously endorsed Dan Hynes for governor in the Feb. 2, 2010 primary election.

Hynes wants a progressive tax increase, which would have to first be approved by voters, since he’d have to change the state’s constitution. The IFT, however, was a major force in pushing for a higher tax increase right away. Here’s how the IFT finesses the issue…

“The IFT has supported a variety of revenue proposals over the years to provide needed funding for public education and public services,” said Geppert. “The IFT still supports an income tax increase this year to prevent layoffs in schools and in state government. Dan Hynes is the best candidate to work with us and finally fix the state’s structural deficit for the long term.”

The governor is announcing some West Side endorsements today

Quinn is announcing support from U.S. Rep. Danny Davis, state Sens. Rickey Hendon and Kimberly Lightford, state Reps. Annazette Collins and Karen Yarborough, as well as Cook County Commissioners Earlean Collins and Robert Steele. Other endorsements include Chicago Alds. Walter Burnett, 27th, Sharon Denise-Dixon, 24th, Emma Mitts, 37th, and Ed Smith, 28th.

I kinda wonder if anyone will use the opportunity to ask Quinn about Hendon’s candidacy for lieutenant governor.

Also today, Citizen Action Illinois announced its endorsement of Quinn and Giannoulias. The IFT endorsed Giannoulias on Friday. And several downstate legislators endorsed Sen. Bill Brady’s GOP gubernatorial campaign over the weekend. And Rep. Suzi Bassi was shunned by her own township organization

A challenger to state Rep. Suzie Bassi landed the official endorsement of the Palatine Township Republican organization Saturday, continuing a historic feud between the incumbent and a local party boss.

Tom Morrison, a Palatine businessman, was backed by the organization over Bassi, who has held the 54th District seat since 1999. […]

“It was not the least bit unexpected,” Bassi said of the group’s snub. “But I’m glad I showed up to remind them of what I have done.”

* Our campaign video this morning is from Gov. Quinn. It’s a video wrapup of the Sierra Club nod. Have a look


* Related…

* Illinois sets public hearing on Thomson prison plan

* Quinn’s rise leads to interest in his old job

* Marin: Quinn vs. Hynes: But this race may boil down to which guy you’d rather have a beer with.

* Governor hopefuls focus on health care - Candidates share views on keeping costs in check and the federal bill in U.S. Congress

* Hysteria in our time

* Senate candidates agree on elections for vacancies, making jobs a priority

* Republican, Democratic U.S. Senate candidate tackle Illinois issues

* Preckwinkle gets New Trier Democrats’ nod in county president race

* Decatur a key spot for state political candidates

* Sumption drops out of Democrat’s 10th battle

  58 Comments      


Our ever-worsening budget problem

Monday, Dec 7, 2009 - Posted by Rich Miller

* This is just a small example of how the state budget deficit is hurting employers

More than $80 million [in state reimbursements] is owed to 259 agencies surveyed by Metro Chicago United Way during the last fiscal year, which ended June 30.

Sixty percent of the groups surveyed said they will be forced to reduce or freeze the number of people they serve. More than 10 percent of the agencies anticipate that they will be forced to temporarily or permanently close locations because of less state funding.

And the problem is only going to get worse.

* Mike Lawrence looks at pie in the sky promises by the various gubernatorial candidates and attempts to inject a little reality

Assume we freeze tax rates and a robust recovery produces revenue growth of 7.79 percent from the sales tax, 13.2 percent from the personal income tax and 41 percent from the corporate income tax — all of which would match spikes over the last quarter century. The yield would be $2.4 billion, only 20 percent of the deficit.

Illinois revenue experts consider even that scenario wildly optimistic. None of those categorical high points occurred in the same year. Moreover, the generally prosperous 1990s produced annual growth of 6.3 percent from the sales tax, 8.1 percent from the personal income tax and 11.1 percent from corporate and business taxes.

The idea, espoused by several Republican candidates, that if we somehow bring back prosperity our budget problems will disappear is mostly nonsense. You’d think, therefore, when a candidate claims he can balance the budget by slashing tax rates in half that he’d be challenged a bit by the interviewing reporter. Nope

Republican gubernatorial candidate Dan Proft visited Edwardsville recently, pledging that, if elected, he would cut the state income tax by half, cut the corporate tax by half and eliminate the estate tax.

And speaking of the economy, Andy McKenna has joined other GOP candidates on the minimum wage issue

Cutting Illinois’ minimum wage is increasingly becoming a key proposal by Republican candidates for governor as they push ideas to help the state’s economy.

Voters are not likely to hear that in campaign mailers or TV ads, but when pressed for their plans on job creation, several GOP candidates turn to reducing the lowest amount employers are allowed to pay workers.

The latest entry to the fold is Andy Mckenna, a Chicago business owner and former head of the Illinois Republican Party. He told WBBM’s At Issue program on 780 AM Friday that Illinois’ high minimum wage, which is nearly $1 more than the federal limit, “is a problem.” […]

Other Republican candidates to support reducing the minimum wage include former Illinois Attorney General Jim Ryan of Elmhurst and Hinsdale businessman Adam Andrzejewski.

I didn’t hear the “At Issue” program over the weekend and WBBM hasn’t yet posted it on their website, but maybe we can listen later.

* Related…

* Track slots idea needs discussion

* Is Illinois willing to up the ante on gambling?

* Use these tools to keep leaders in check

* Why does Commerce Dept. need $2,821 in hot sauce?

  37 Comments      


Reform and Renewal, Part 247,968

Monday, Dec 7, 2009 - Posted by Rich Miller

* Rep. Mike Zalewski (D-Chicago), the son of a Chicago alderman, was appointed to his seat last year. He has a no-name challenger, but the Machine, as usual overreacted. Somebody allegedly obtained drivers license photographs of Zalewski’s opponent and the opponent’s father to circulate door-to-door. The Zalewski folks believed that the circulators weren’t who they said they were, but getting those photos ain’t exactly legal

Zalewski’s supporters - and Zalewski himself, according to affidavits filed in the case - went door to door with photographs of Collins and his dad and asked voters who signed their petitions if the Collins duo, indeed, were the circulators.

But before the electoral board could rule on the circulator issue, Collins’ attorney, Richard Means, raised the illegality of using driver’s license photos, which were attached to Molaro’s objection paperwork.

“There is no question these are their driver’s license photographs and they came from inside,” Means said. “When you look at an actual driver’s license, there’s a watermark, or imprint, on it. Here we have the exact same photo with no watermark, so it wasn’t taken off the face of his license. It was taken off the original picture in the files of the secretary of state’s office. We were ready to prove that.”

Democratic Party attorney Michael Kasper swiftly informed Means the objection would be dropped, according to Means.

Ugh.

An internal Secretary of State investigation has been launched. This is one of those little things that can easily mushroom into something bigger, so we’ll keep an eye on it.

* Speaking of a mushrooming controversy

A Chicago AIDS charity has been ordered to return a $500,000 state grant it received to rehabilitate a South Side apartment building, amid questions about the group’s spending.

The legal judgment obtained by the Illinois Commerce and Economic Opportunity Department and announced Friday, comes in the wake of Chicago Sun-Times stories outlining the Let’s Talk, Let’s Test Foundation’s financial struggles and failure to complete the apartment project, which was meant to help fund AIDS-education efforts.

State officials said the foundation — created in 2002 by state Rep. Connie Howard (D-Chicago) in an effort to stem the spread of AIDS in African-American neighborhoods — hasn’t finished the project and didn’t “disclose the complete nature of all grant-fund expenses.”

Separately, Illinois Public Health Department lawyers plan to try to recover $523,545 more from the organization, based on questionable expenses they say it made after getting a separate, $1.2 million AIDS-awareness grant. A court-style hearing in which the foundation would be allowed to defend its spending should be opened in the “very near future,” and a judge would decide if the money was misspent, a health department spokeswoman said.

The association claims it’s almost a million dollars in debt and can’t afford to defend itself against the charges. Oops.

* Meanwhile, in Rod Blagojevich news, the cops thought they had a lead in the investigation into last week’s break-in at Sam Adam Jr.’s office, but it turned up little

Prosecutors filed a misdemeanor gun charge against the man arrested after police executed a search warrant related to the burglary of the law offices of former Gov. Rod Blagojevich’s attorney.

Prosecutors did not tie Calvin Ware, 41, to the burglary, though, either in court documents or during his appearance on Sunday in Cook County Circuit Court. Ware, charged with unlawful use of a weapon, was given a $25,000 bond and ordered to return to court on Friday.

Adam told the Sun-Times that the most important stuff related to the Blagojevich case was not touched

Sam Adam Jr. said [Sunday] he remained “99 percent sure” no sensitive material was on the laptops. Adam said the hundreds of hours of recordings that a judge has barred from public disclosure are contained on disks, as well as a main server. Neither the server, nor the disks were touched, Adam said.

“None of the tapes are on the [stolen] computers,” Adam said.

Another source said “at best” portions of some transcripts may have been on the computers.

The laptops stolen link up to a main server where the sensitive material — including tapes and transcripts that are not public — is stored.

And Sneed’s lede Sunday was as follows

Former Gov. Rod Blagojevich, a major Elvis fan who is strapped with legal fees, will be paid $75 to debate a Columbia College professor about the “cultural merits” of the Elvis Presley film “Viva Las Vegas” Dec. 16.

Huh?

There’s really no need to ask why he took so llttle cash. The publicity from this stunt is enough, and he just got some more.

* Related…

* Report: U.S. lawmakers bend ethics rules

* Lawyer: Blago will testify at his own trial

* Rod Blagojevich, God’s instrument: “I embrace this opportunity that I’ve been confronted with. I know God has a purpose for me. Because this whole story is upside down. And this is one way —by me fighting back for the liberties and the rights of Americans that men and women have lost their lives for through the decades and a couple of centuries — to give me a chance to be able to fight back against these powerful forces who are lying. (This) is in many ways I think God’s way of having me serve my country again.”

* Rod Blagojevich, witness to be: “I want you all to know and the people of Illinois to know that I can’t wait to testify at my trial. I am going to testify at my trial, I will answer each and every question asked of me….I’m looking forward to testifying at my trial. And what I love about that is the fact that I’m going to be under oath. Everything that I say is going to be under oath. And you’ve gotta tell the truth. And I can’t wait for my story to come out because I’ve got the simple truth on my side….I know what the truth is. I am going to testify. I’m going to answer every question asked of me. The truth will come out”

* One year after Blagojevich’s arrest, Illinois has seen changes, struggles

* Rod Blagojevich: A strange trip for Illinois

  15 Comments      


Quinn better - and worse - than expected

Monday, Dec 7, 2009 - Posted by Rich Miller

* My syndicated newspaper column takes a look back at the events of last week and puts it all into the context of something I’ve been mulling for quite a while now

For the past several weeks, I’ve been confiding to friends that I think Gov. Pat Quinn has turned out to be a much better campaigner than anyone expected, and a much worse governor than everyone had hoped.

The campaign team that Quinn has put together is quite good. He’s raised a ton of cash, which has paid for some well-produced television ads.

“He’s had to unlearn three decades of muscle memory,” cracked someone from inside Quinn’s campaign a couple of months ago.

Indeed.

Quinn has never been an “A-List” campaigner. He has never really understood what it took to win a really big race - and it’s showed whenever he’s tried. He ran for secretary of state and was clobbered by George Ryan. Two years later he ran for U.S. Senate and was creamed in the Democratic primary by Dick Durbin. He still owed thousands of dollars from that 1996 U.S. Senate race until early this year.

From what I gather, the governor’s brother sat him down and told him that if he wanted to continue being governor then he would have to do all those things he detested, like spend a few hours a day raising money. To his credit, Quinn listened. And I, for one, have been pretty impressed with the results.

It’s the “governing” part of the job that’s been the problem for me. From the failure of his budget rollout, to his constant flip-flops on everything from taxes to gambling to ethics reforms to a government shutdown, Quinn has seemed that he’s in over his head. I, like everybody else, wanted him to succeed after the six-year Rod Blagojevich horror show. But he just hasn’t proved to me, at least, that he’s up to the task.

Last week came one of the biggest blows yet to Quinn’s credibility as governor.

Quinn unexpectedly and harshly lashed out at Comptroller Dan Hynes during a press conference for refusing to sign off on a $500 million short-term borrowing plan, which Quinn said was needed to pay outstanding bills before the end of the year. Quinn claimed that Treasurer Alexi Giannoulias had already agreed to the plan, which turned out to be false. Giannoulias had done no such thing. Both Hynes and Giannoulias must both agree before the bonds can be sold. Hynes, of course, is challenging Quinn in the Democratic primary.

Quinn’s office was needlessly secretive and grossly incompetent during this entire process. The governor switched the type of borrowing that he wanted to do, changed the amount that he wanted to borrow, demanded - out of the blue - an immediate deadline to approve the plan, refused to provide Attorney General Lisa Madigan with crucial information, all without disclosing how he intended to spend the cash.

You’d think this wouldn’t be a very tough sell. Small and large not-for-profit service providers are hurting badly because the state hasn’t been able to reimburse them in weeks or months.

Heck, even Blagojevich was able to get a short-term borrowing plan approved by the comptroller, treasurer and attorney general after he was arrested by the FBI last year - around the same time that the attorney general was attempting to have him removed from office via the courts. If Blagojevich could put it together, why can’t Quinn? After all, the state’s financial crisis is worse now than it was then, with backlogged bills totaling $4.6 billion.

Hynes eventually turned thumbs down on Quinn’s borrowing idea, saying the cash couldn’t really be spent because there was simply no money to ever pay off the loan. He also pointed out that when Quinn was state treasurer, Quinn opposed a very similar borrowing plan attempted by then-Gov. Jim Edgar.

Some might say that Hynes was politically motivated here, but his case is pretty solid. The real political motivation is likely from Quinn. The governor tried to humiliate his political rival over unpaid bills, got caught in a lie (saying that Giannoulias had signed off on the loan, when he hadn’t) and then couldn’t explain the basic mechanics for how the cash would be used or how the loan would be repaid.

I just wish somebody in that governor’s office would learn how to play this game. It really isn’t that difficult, but you’d never know it from the past ten years.

* Others had slightly different perspectives about the short-term borrowing plan. Kurt Erickson was brutal, comparing Quinn to a prevaricating teenager. Finke just wants it resolved and the Pantagraph editorializes that it’s “hard to tell” which one is playing politics here, then claims it doesn’t care, then says whoever is playing politics ought to resign. What a useless editorial that was.

* Meanwhile, the AP notices how Gov. Pat Quinn always seems to get riled whenever Dan Hynes’ name is mentioned

Politicians, even when they dislike their opponents, usually hide their feelings. Especially when talking about members of their own party, they portray disputes as simple policy differences and make sure to note their opponent’s good intentions or long record of public service.

Not Quinn.

Normally easygoing, he bristles at the mention of Hynes’ name and flings harsh accusations: Hynes doesn’t know much about creating jobs, he went AWOL during tough state budget talks, he’s an “ankle-biter” who complains without offering better ideas.

Quinn won’t discuss his irritation at being challenged by Hynes, but he doesn’t deny it either.

“It’s a free country. Anybody can run for office,” Quinn said when asked about it.

This has been obvious since at least July, when Quinn first went off on Hynes after a reporter mentioned the comptroller’s name during a press availability.

* Related…

* Hynes, Quinn clash: Quinn blasted Hynes in news conferences and in campaign commercials for being “missing in action” when Quinn was trying to solve the budget crisis earlier this year. Hynes said Friday he suggested cuts to Quinn that would have helped: “I gave the governor a list of $1.2 billion in contracts, 5,000 contracts. I said: ‘This is where we need to cut. Three months go by and not only are they not cut, they grow to $1.8 billion,” Hynes said.

* Hynes to Quinn: No way on borrowing

* Quinn urges Hynes to reconsider nixing state’s $500M borrowing

  20 Comments      


Morning Shorts

Monday, Dec 7, 2009 - Posted by Mike Murray

* Unemployment report leaves experts optimistic

* Better news on jobs: Not a miracle, but progress

* Manufacturing won’t solve next decade’s job woes

* State posts 20th bank failure

* RTA’s matchmaker plan a win for transit growth

* Clean Up Continues on the Canal

* Minorities’ death rate for H1N1 is twice whites’

* Ex-Asst. Corporation Counsel named to Tollway board

* Former Chicago Park District Board president tapped for tollway board

* Former Daley appointee now on tollway board

* Lawmakers seek to expel regional school chief

Legislation in the works calls for abolishing the Suburban Cook County Regional Office of Education.[…]

“We need to redesign the system,'’ said Rep. Elaine Nekritz (D-Des Plaines), who introduced a bill to dissolve the elected office. “The real problem is the schools are not getting the services they need. I think eliminating that office is the best way to get those services.'’

* Metra on track to rehab and rebuild dozens of stations

State will fund $136 million in improvements, which are needed to increase ridership

* Emotionally troubled CPS students lag in graduating

Chicago Public Schools students with behavioral problems are posting the lowest academic performance of all special-education students, with only 18.7 percent of them graduating in four years, a new study by the University of Chicago shows.

* Disabled students: Report links high absences to poor academic performance in Chicago public high schools

* Daley: CPS graduation rate ‘on-track’ to rise in 2012

8% jump predicted for 2012 based on records of freshmen, Daley says

* In city life, Maggie is part of the family

* Slew of tax, fee, fine hikes across the city

* City Hall hit again for delays in reporting hiring violations

* More Chicago hiring abuses alleged: Monitor criticizes Mayor Richard Daley’s team

* Why didn’t worker pay to park while writing tickets?

* Daley says Michael Reese demolition will continue despite historic sites push

* Kennedy Expressway to reopen all downtown lanes this week, but construction will linger until spring

* South Side beaches going back to nature

* Illinois offers holiday light recycling programs

* Illinois sees 7th warmest November on record

* Illinois biofuel projects get federal cash

* Officials consider expanding H1N1 shots

* Kane County prosecutors initiated 4 new state laws

* Oak Lawn budget gets more scrutiny

* Evergreen Park officials still trying to close gap

* West Haven neighbors fight sex offenders facility expansion

* St. Leonard closes doors to sex offenders

* One-of-a-kind taxing class not a fair deal

* SJ-R Opinion: ‘Discussion’ should not be about tax hike

* When columnists jump ship, newspapers spring leaks

  5 Comments      


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

Monday, Dec 7, 2009 - Posted by Rich Miller

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