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Question of the day

Thursday, Jun 9, 2011 - Posted by Rich Miller

* I got so busy and distracted that I forgot to post a question. Sorry about that. It’s very late in the day, so let’s have a caption contest instead…

  62 Comments      


*** UPDATED x3 *** Don’t freak out just yet

Thursday, Jun 9, 2011 - Posted by Rich Miller

*** UPDATE 3 *** Gov. Quinn talked to the media this afternoon about CME. Quinn said CME Executive Chairman Terry Duffy was a “good friend,” adding the two have had dinner together. “We’ll have an ongoing conversation and dialogue,” Quinn said.

The governor was asked if he now thought the corporate tax hike was a bad idea. “No, not at all,” he replied. Quinn once again called the income tax hike “temporary” to pay off the bills, provide good schools, etc.

Was he worried about a corporate shakedown? “We don’t believe in that kind of approach to life,” he said.

“I don’t think that anybody likes paying taxes,” the governor said “but that’s the price of democracy.”

Audio…

*** UPDATE 2 *** I must’ve missed this

The Chicago Sun-Times reported that Texas, New York, New Jersey and Indiana are possible alternatives. A CME spokesman declined to comment.

New York? Way high state and local taxes. Same for New Jersey and Indiana. Texas? Have fun with the gross receipts tax.

*** UPDATE 1 *** Mayor Rahm Emanuel said today that he’s talked with top CME officials and is “confident” the business will stay in Chicago

Mr. Emanuel said he talked both to Mr. Duffy, apparently this morning, and CME Chairman Emeritus Leo Melamed.

“CME has grown and been successful in Chicago. I believe they have many years ahead,” Mr. Emanuel said, adding that he’s “confident” the firm will stay here.

“I know their frustration,” added Mr. Emanuel, who served on the board of predecessor firm Chicago Mercantile Exchange about a decade ago. “I also know they believe they can continue to be here.”

Asked if changes in the state tax hike will be needed, Mr. Emanuel replied, “We’re not at that point.”

[ *** End Of Updates *** ]

* You would think that with the big and, as it turns out, almost totally fake uproar about Caterpillar leaving Illinois after the state raised its income tax rates that reporters might be a bit more circumspect the next time a corporate titan hinted at longing for greener pastures. You’d be wrong

Chicago business is partly defined by its concentration of financial traders, but the boss of the city’s two dominant futures exchanges said Wednesday that he might pull jobs out of the region in response to a state tax hike on corporations.

Terrence Duffy, chairman of CME Group Inc., said he, Chief Financial Officer James Parisi and the company’s internal staff are evaluating a move to other states. […]

“I’m going to do what’s in the best interests of shareholders,” Duffy said, adding that “if that means opportunities are greater elsewhere, then we’re going to look at those opportunities.” […]

It accounts directly for about 2,000 jobs in the Chicago area, but its ripple impact goes much further. Trading firms set up shop here to be near the downtown trading floors, and banks and other institutions add staff to serve that business.

Some estimates place the job count from the trading industry here, which includes the Chicago Board Options Exchange, at more than 60,000.

The above story claims that Chief Financial Officer James Parisi said the tax hike will cost CME an extra $50 million a year. A CME spokesman said today that Parisi’s statement was accurate.

* But this is also important. Duffy said at the meeting that CME would not be abandoning Chicago

“We’re investigating what would be in the best interests of our shareholders,” Duffy said, noting that such a move would not mean CME would abandon its presence in Chicago, home to its markets for over a century.

So, the traders can calm down now. They won’t have to move to Alabama or some similarly awful place.

* Duffy also added this

Duffy tells the Chicago Sun-Times he is upset by the state’s failure to close corporate tax loopholes. He says they favor some companies but leave others, including CME, to pay the full rate.

That’s a good point.

* Chairman Duffy did not mention the state tax situation during his remarks. The state tax hike was also not mentioned in anybody’s multi-media presentation.

When Duffy talked about the problem with his stock’s subpar performance, the executive chairman identified only two factors. “A major overhang,” Duffy said during his prepared remarks, has been the “uncertainty” of federal regulations. The other problem, he said was the company’s “continued focus on new investments for future growth.”

* I called CME this morning to ask for a further clarification of Duffy’s comments about Illinois’ tax hike. I was told a further clarification wouldn’t be possible and was referred back to his quotes. I asked whether there was already a plan or at least a process in place to look for another CME headquarters site. I was told that the spokesperson couldn’t comment further.

The Q&A video with shareholders isn’t online, so I couldn’t find the complete context of Chairman Duffy’s comments.

* Former US House Speaker Denny Hastert was elected to the board of directors at yesterday’s shareholder event, but he’s in meetings all day today and I couldn’t reach him to ask whether he would fight to keep the company in his home state.

* The company has other problems as well

In response to a shareholder who questioned the need for a 33-member board, Mr. Duffy said that the company will pare the size of the board over time because he realizes it’s costly for it to be so large. Contractual obligations will only allow cutting it by a couple of members starting next year, but there will be bigger decreases between 2013 and 2014, he said.

Executives also blamed uncertainty over regulatory changes for hampering the exchange operator’s shares, adding it would look to global partnerships — not acquisitions — for growth.

Shares of CME, the world’s largest futures exchange operator, are down 18% so far this year vs. a 4% drop in the Dow Jones Global Exchange index.

The company’s shares have dropped 8% so far this month as government data showed the U.S. economic recovery stumbled — making an interest rate rise less likely and hurting the outlook for CME’s treasury and eurodollar trading.

* But it’s not exactly a pauper

  39 Comments      


*** UPDATED x1 *** Speaker Madigan opposes consolidation for the umpteenth time while Rutherford hit over publicity stunt

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Madigan has always been against this idea, going back to the Constitutional Convention, so this is no big shock

A constitutional amendment to merge the offices of the state treasurer and comptroller is stalled in the Illinois House because of opposition by House Speaker Michael Madigan, D-Chicago.

The amendment unanimously passed the Illinois Senate, but is stuck in the House Rules Committee, which is tightly controlled by the speaker.

Madigan spokesman Steve Brown said merger proponents, including the two current officeholders, have never sufficiently countered the reasons two offices were created at the 1970 constitutional convention.

“They’re radically different offices, as anybody who’s spent any time around them knows. They’re not similar in any way,” Brown said. “While the offices both deal with finance, in reality, they have hugely different activities. You can’t just say, well because they’re both about finance you can consolidate them and that makes sense.”

* Meanwhile, oops

The state’s Bright Start College Savings Program has come under fire again after a promotion promising a $250 match for contributions made this month quickly ran through its budget, leaving families feeling they were duped into adding money to their accounts.

The Illinois treasurer’s office said Wednesday that it is investigating why a website touting the promotion was not updated for nearly 24 hours after it had paid its limit of 2,500 bonuses. Participants complain that they continued to put money into their Bright Start funds expecting the match even though the program was finished by 3 p.m. Friday. […]

Some said they didn’t even get notice of the promotion until Saturday — a day after the matching funds were gone. […]

“It’s sort of a crass move to dole out these funds as a publicity stunt, but what you’ve done is worse by inducing people to invest in exchange for a promise you knew (at least by Friday afternoon) you couldn’t keep,” he said in an email to Bright Start and copied to the Tribune.

*** UPDATE *** I forgot to add this story, since it’s semi-related

The chief investment officer of the College Illinois prepaid tuition program has left that post for a newly created position within the Illinois Student Assistance Commission.

Frank Bello, a former deputy treasurer for the city of Chicago who joined the Illinois Student Assistance Commission as chief investment officer three years ago, was named director and chief credit officer for the Illinois Designated Account Purchase Program last month without an announcement, an ISAC spokesman confirmed Wednesday. That program, administered by ISAC, services a $1.1-billion portfolio of student loans and counsels student loan recipients in danger of defaulting. It’s the primary source of revenue to fund ISAC’s operations.

Mr. Bello was ISAC Executive Director Andrew Davis’ key lieutenant in dramatically overhauling the $1.2-billion investment fund for the prepaid tuition program, which allows parents to purchase contracts at a fixed price for future tuition at state universities and colleges and acts as a potential hedge against tuition inflation.

In a bid to close a 31% gap between assets and future liabilities in College Illinois, Messrs. Davis and Bello moved to shift nearly half the fund’s assets from stocks and bonds to “alternative” assets like hedge funds and private equity—a level of exposure to exotic asset classes well above those of other state prepaid tuition plans or pension funds its size.

* Related

Illinois Attorney General Lisa Madigan’s office has launched an investigation of the agency running the College Illinois prepaid tuition program, which has suffered steep losses.

“We’re looking into it,” said Natalie Bauer, a spokeswoman for the AG’s office.

The investigation of the Illinois Student Assistance Commission began early this spring, she said, declining to provide further details.

* And then there’s this

Over the last two years, the state of Illinois in order to pay its basic bills has seized more than $1.6 million from at least 15 different “charity” funds, to which Illinoisans voluntarily donate for causes like feeding the hungry and helping the homeless.

Each year, the Illinois Department of Revenue invites taxpayers to donate their tax refunds or other money to a handful of funds described as “charities” and avenues to “make a difference” and “make giving easy.” The “voluntary charitable donation funds,” of which there have been more than 50 different varieties over the years, are commonly called “check-off” funds and range in purpose from preserving wildlife and researching diseases to supporting military families and promoting healthy smiles.

For the 2008 tax year, Illinois workers donated a total of $1.4 million to 10 different funds. But, with the approval of the General Assembly, Gov. Pat Quinn authorized $434,300 in sweeps from seven of the funds in Fiscal Year 2010, when the 2008 tax year donations were first available for spending. Sweeps are transfers from special funds with specific purposes to the general revenue fund, the state’s largest pool of money, which pays for basic government operations.

For the 2009 tax year, Illinois taxpayers donated $1.37 million to 10 different funds, but during the current fiscal year, FY2011, Quinn has borrowed $1,176,100 from seven of those funds as well as five other check-off funds that are no longer listed on tax forms but were holding donated money from previous years.

While the state is required by law to repay the borrowed sums within 18 months, the state will not return any swept funds.

* As long as we’re updating, let’s do a quick roundup…

* Report: Gambling revenue continues decline

* Ill. Supreme Court hopes to modernize procedures

* Press release: State Cemetery Board Urges Passage of Legislation to Address Implementation of Cemetery Oversight Act

  19 Comments      


The family business

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Congressman Jerry Costello’s son is getting into the family business

State Rep. Dan Reitz said Wednesday he’ll likely leave office before his current term expires, and that he thinks a good appointee to finish his term would be Jerry Costello II, son of U.S. Rep. Jerry Costello.

“I’m leaning now toward not finishing out the term,” said Reitz, a Democrat from Steeleville. […]

“I’ve definitely decided I’m not going to run again. Having made that decision, it’s just a matter of sitting down to figure out when it’s in everyone’s best interest when to retire,” Reitz said. “I thought long and hard about running the last time.” […]

Jerry Costello II, a Democrat, has been rumored to be a replacement for Reitz. When new legislative maps were released a couple of weeks ago, state Sen. Dave Luechtefeld, R-Okawville, said he was told that one factor in deciding the legislative boundaries was having a district where Jerry Costello II could run. […]

“I think he’d do a good job,” Reitz said. “I’ve spoken with him on a number of occasions on different things, that being one of them. He was interested in running last time.”

Some have said Costello’s congressional district might not be winnable by a Democrat when he retires. But his son would have the same name, so if he gets his feet wet in the Illinois House, he could conceivably then move up the ladder to DC. I’m not saying this is the plan, but it sure looks that way.

* Former Congressman Bill Foster is already releasing a poll to knock back a potential opponent

Former Rep. Bill Foster (D-Ill.), making a 2012 comeback bid in the new 11th congressional district, starts the contest in a much stronger position than potential Democratic rival John Atkinson, according to a poll Foster commissioned.

I was shown the entire Foster poll–by the Global Strategy Group–as Atkinson is weighing whether to run in the new 11th district–or stay with his original plan, to challenge Rep. Dan Lipinski (D-Ill.) in the 3rd congressional district. Either way, Atkinson would face a Democratic primary.

The poll of 400 likely Democratic 2012 primary voters was taken between June 2 and June 5 and has a 4.9 percent margin of error.

Atkinson’s problem, the poll shows, is that he is virtually totally unknown, while Foster has a running start as a former House member. Just six percent of the voters in the new district are familiar with Atkinson, compared to 41 percent for Foster.

In a head-to-head, voters in the survey gave Foster a 30 point lead, 36 percent to Atkinson, 6 percent.

Atkinson, however, could decide to run against incumbent Democrat Dan Lipinski, the son of former Congressman Bill Lipinski. And Atkinson isn’t the only one looking at the 11th. From a press release…

Today, Aurora Alderman-At-Large, Richard Irvin, announced that he will form an exploratory committee to consider a bid for the Republican nomination for U.S. Congress in Illinois’ new 11th Congressional District. Richard Irvin was first elected Alderman-At-Large in 2007 and was re-elected to a second term in April.

Richard Irvin is a life-long resident of Aurora. After graduating from East Aurora High School, he joined the United States Army where he served in the first Gulf War. Upon returning, he earned a law degree from Northern Illinois University. After serving for several years as an Assistant State’s Attorney in both Cook and Kane counties, Richard formed his own successful law firm.

* Republican Congresscritter Bobby Schilling has been hit with a round of Medicare robocalls

The Democratic Congressional Campaign Committee has launched a round of robocalls targeting 13 Republicans. The calls, according to a sample script released by the DCCC, hammer away at Democrats’ message of criticizing the GOP’s budget plan to dramatically overhaul Medicare.

The calls hit Members for voting in favor of Budget Chairman Paul Ryan’s (R-Wis.) budget blueprint, noting the GOP’s “plan to end Medicare actually increases the debt by almost $2 trillion because of more tax breaks for millionaires and corporations.”

Democrats believe their Medicare messaging was a key component of their win in New York’s 26th Congressional district, where now-Rep. Kathy Hochul beat Republican Jane Corwin.

Schilling was the only Illinois Republican targeted in this round. Also, Schilling’s family was also just sued

The lawsuit, filed this week in Henry County Circuit Court, says [18 year old Thomas Reese] was at a birthday party for the Schillings’ son Levi in May of 2007.

That’s when Reese claims Levi Schilling along with Croegart, Dragolovich and Walters took gasoline from an unlocked area in the garage, filled the hopper part of a toy dump truck, and lit the gasoline on fire.

Then, according to the suit, one or more of the boys pushed the truck toward Reese, catching his shorts on fire.

Reese says as a result, he suffered severe burns on one third of his body and still deals with mental and physical pain.

The suit claims the four boys are at fault because they failed to warn Reese and the Schillings are responsible because they didn’t safeguard the dangerous substance. […]

Representative Bobby Schilling’s camp released a statement Wednesday saying “Some kids were over at the house, they were horsing around. An accident happened. The mom and dad are friends of ours. We see them at church every week. They donate to my campaign. They weren’t able to settle with the insurance company, so they have to do what they’ve got to do. That’s what happened. I just thank God Tom wasn’t hurt worse.”

* Is this the first step toward a state legislative campaign announcement? Perhaps

Former state Rep. Jay Hoffman will have a news conference today to talk about the delays in the Illinois 159 road project.

The $54 million project to straighten and improve Illinois 159 was planned in three phases and is currently in its second phase through Main Street and the downtown district. The third phase widens the road from Johnson Street to Kinloch Avenue, but money so far is only for land acquisition, not actual construction.

Hoffman, 48, a Democrat, was defeated in November by state Rep. Dwight Kay, R-Glen Carbon, after 20 years in the state legislature. Hoffman couldn’t be reached for comment Wednesday.

* Not much of a surprise

The runner-up in the 2010 gubernatorial race plans to seek another term in the Illinois Senate.

State Sen. Bill Brady, R-Bloomington, announced Wednesday he will run in the reconfigured 44th Senate District in the 2012 election.

Brady, a 50-year-old real estate developer, will run in a district that includes most of Bloomington, none of Normal and a lot of new turf in Tazewell, Logan, Menard and Sangamon counties. […]

The district no longer contains the Central Illinois Regional Airport in Bloomington, but does encompass the Abraham Lincoln Capital Airport in Springfield. He also would no longer represent Illinois State University. But, he would represent the Illinois State Fairgrounds.

I hadn’t noticed that his district went all the way down to the Springfield airport and the fairgrounds. Wow. Downstate Senate districts are all quite large, but that seems a tad strange.

* There was no mention of this story in the piece

Three contractors have claimed Brady Homes and a related company owe more than $400,000 in unpaid bills — a cash-flow problem the family-owned firm says reveals the depth of the homebuilding industry’s struggles.

The contractors filed at least 19 mechanic’s liens, totaling $402,107, on 10 Twin City residential properties owned by Brady firms in the past month, according to documents in the McLean County Recorder’s office. The liens allege unpaid bills for concrete and electrical work completed this year and other homebuilding materials.

Bob Brady, who owns Bloomington-based Brady Homes with his brothers, Ed and Bill, said Friday the liens were “just a cash flow issue” that would be resolved as each property is sold. Brady said their relationships with contractors and vendors remains good and they are “working civilly with everyone” involved. […]

Bob Brady said the brothers are not considering bankruptcy for Brady Homes, which he noted has five closings scheduled in just the next three weeks. He also stressed that the family’s other companies are financially “solid,” such as Re/Max Choice.

“These are just some bumps in the road,” Brady said.

The homebuilding industry is most certainly hanging on by a thread these days. Brady can’t really be blamed for an international financial calamity. These things happen in business, so it’s best not to make too much of them.

* Roundup…

* Black Power Wanes Amid Rising Hispanic Economic Clout in U.S.

* Senator Cultra ‘perplexed’ by Barickman’s decision to run against him: State Senator Shane Cultra says it “didn’t make my day” when Representative Jason Barickman told him that he plans to run against him for Cultra’s Senate seat next year… “I think I have a lot of experience and basically (Barickman) doesn’t have any,” Cultra said. Cultra says had Barickman decided to stay in the House, he would have had his choice of heavy Republican districts to run for in the next election.

* Shane wants to come back

* Sommer announces 88th District reelection bid

* Know your state rep: Derrick Smith

  25 Comments      


*** UPDATED x1 - VanillaMan returns! *** A commenter shout-out

Thursday, Jun 9, 2011 - Posted by Rich Miller

* Hey, VanillaMan! Where the heck are you, dude? I really miss your song parodies, and with the Blagojevich case about to go to the jury, we could sure use some of your magic about now. Also, I’m sure Wordslinger would lighten up on you a little if you decided to come back. Right, Word? We need you, man. Come back, please.

* We had a bit of a problem earlier this week when I banned two commenters for life and had to shut down two different threads. The banned commenters were relative newbies who just couldn’t behave on some emotional topics. The closed threads were also about emotional topics and I was just tired of policing them. Everybody, try to take a deeeeeeep breath before commenting, please. It’s the summer. Let’s relax a little bit.

* I’m working on stories for the Fax and the blog right now, which explains the late postings today. I’ll be back soon. In the meantime, do you have anything you’d like to say to other commenters? Do it here…

*** UPDATE *** VanillaMan is back! I checked his IP address, and it’s really him. Read his latest comment here.

  85 Comments      


Rod Blagojevich trial live blog

Thursday, Jun 9, 2011 - Posted by Rich Miller

* The jury is expected to get the case today. So, soak it up while you can. BlackBerry users click here, everbody else can just chill right here and enjoy the show…

  56 Comments      


Question of the day

Wednesday, Jun 8, 2011 - Posted by Rich Miller

* I’ve seen this debate played out all over the state since the new maps were unveiled

Proponents say newly drawn U.S. congressional districts give Rockford the opportunity to have two representatives pulling for the city’s interests.

Critics say it does the opposite. […]

“When you lump in 75 percent of Rockford in with Freeport, part of Peoria and the entire Illinois side of the Quad Cities … optimistically, I would hope that Rockford will still, so to speak, have a seat at the table, but practically speaking we’re lost in that district,” said Jim Thompson of the Winnebago County Republican Central Committee. “If there’s going to be any focus, it’s going to be the Quad Cities from a geographic standpoint and population standpoint.”

* More

Can less equal more when it comes to the number of people speaking for Springfield residents in the U.S. House? Mayor Mike Houston says yes.

“I think, generally speaking, that we are better off having two congressmen representing the area as opposed to three,” Houston said, reacting to a congressional map passed by the Democratic-controlled Illinois General Assembly. […]

Johnson’s current district, the 15th, does not come into Sangamon County. But he lives in the proposed new 13th. If he were to run there and win, he would represent most of Springfield, including downtown.

“I think he could more than adequately represent Springfield,” said Johnson spokesman Phil Bloomer. “He’s familiar with the area.” Johnson spent 24 years in the General Assembly in Springfield.

* The Question: Do you think it’s better to have one congresscritter representing a Downstate or suburban town or more than one? Take the poll and then explain your answer in comments, please. Thanks.


  45 Comments      


Roads and power… both kinds

Wednesday, Jun 8, 2011 - Posted by Rich Miller

* This is not fully true

Although the capital program was approved in 2009, a reappropriation bill was used as the vehicle for adding $430 million in operational funds for education, human services and other budget add-ons. The Senate approved HB 2189, but the House rejected it — leaving ongoing construction projects in limbo.

Rep. Jim Watson, R-Jacksonville, blames Quinn and the Senate Democrats for playing games with the budget.

“The way the budget was crafted in the House, was based on the amount of money that we thought we would have,” Watson said.

When the Senate wanted to boost spending, the capital program was used without identifying new revenue.

As subscribers already know, the Senate did, indeed, provide for $270 million in funding for their programs. And they’ve backed away from $150 million of the $430 million in add-ons. So, the “new spending” actually comes in under the House’s spending limit. I’m really not sure why the proponents of this spending have not bothered to explain their plan, and I’m still wondering why the media hasn’t bothered to figure this out yet. It’s really not all that complicated. All you gotta do is pick up the phone and ask. That’s what I did last week.

* However, the other problem here - and it’s a big one - is that the leaders all agreed two years ago not to mess with the capital plan. An attempt by Gov. Pat Quinn at the time to mix the budget negotiations with the capital bill was roundly shouted down by everyone, including the Senate Democrats. Leader agreements are supposed to be inviolate. Senate President John Cullerton has told me this move wasn’t a violation, but I can’t see how it isn’t. He’s opened the door to further games on the capital plan, and that should not be allowed to happen. So, I can’t disagree with this part of a Pantagraph editorial

These projects aren’t a pie-in-the-sky proposal to put people to work; they are putting people to work.

An estimated 52,000 people would be out of work if these state-funded projects are shut down. Illinois doesn’t needs that now. […]

Topinka said in a statement, “My message to fellow leaders is simple: Do not play games with capital projects and the jobs they bring to Illinois.”

So let’s see some leadership — from all sides. Resolve these questions before June 17 — and don’t hold the construction program hostage in an attempt to get action on unrelated matters.

* Meanwhile, in other news, ComEd made its case before the Sun-Times editorial board yesterday and outlined how its bill had improved

†ComEd will go before the Illinois Commerce Commission every year, instead of every two to four years, so that the ICC can review how ComEd is spending the money.

†If the average residential rate increase is more than 2.5 percent by 2014, the entire program, including infrastructure investments and smart-meter installations, is terminated. Critics argue that ComEd will never hit the rate cap because energy-generation prices are dropping, and utility profits will continue to increase regardless of the consumer rates.

†ComEd’s profit margin is set at 10.25 percent rather than the initial requested 10.75 percent. ComEd says the 10.25 percent is less than the 10-year national average.

The Sierra Club, Environment Illinois and the National Resources Defense Council say the changes will create up to 5,000 new jobs in renewable energy by allowing urban rooftop owners to install solar and wind power on their roofs and creating new markets for small renewable energy generators.

The Citizens Utility Board says the bill has improved significantly, but still includes worrisome items such as a rate-hike cap that’s taken away after the first two years.

As usual with big utilities, ComEd introduced legislation that was so out of line that it had no chance of passing. By the time it made its changes, the die had been cast in public and legislative opinion. The company thought the changes would net it big, veto-proof majorities in both chambers. Instead, it managed just minimal majorities, all but inviting a gubernatorial veto.

Gov. Pat Quinn has already publicly brandished his veto stamp, but the Sun-Times wants more changes instead

If Quinn does reject the bill, which already reflects a good deal of last-minute compromise on ComEd’s part, we urge him to do so with an amendatory veto that resolves the remaining issues in dispute. Protecting ratepayers shouldn’t come at the cost of missing out on a digital-era upgrade that could benefit consumers and businesses by making the entire electrical grid more efficient […]

By the time the Legislature’s fall veto session rolls around, the results of a smart grid pilot project should be in, giving a clearer indication of just how much money such a modernization might save.

By then, perhaps, both sides will have found a way to end the gridlock over the grid.

The Smart Grid is a fantastic idea. I first suggested to company executives seven years ago that they consider updating their technology to provide cable and Internet services. That probably couldn’t pass, either, because the cable and phone companies are way too powerful. That’s really too bad, because they have the biggest pipes of anybody and would bring some much-needed competition to the market. Either way, though, I cannot disagree with their push to upgrade their delivery system, but the top brass should’ve introduced a much better bill to begin with.

* Related and a roundup…

* “Game of chicken” puts local road projects in jeopardy: Though Koehler initially supported linking the capital projects to increased spending for human services and education in the ordinary state budget, he acknowledges that because the House wouldn’t go along it’s now time to drop the gambit. “We played the game of chicken and now we have to blink because we don’t want to see these projects stop or see people thrown out of work,” he said.

* Budget battle puts Brisbin Road project at risk

* Roeder: Dixie Square ruins remain untouched

* Editorial: ComEd smart grid bill isn’t a wise idea right now: In fact, there’s lots of evidence the ComEd plan is not ready for launch and would benefit from the inspection the ICC would give. A May 30 Crain’s Chicago Business report said ComEd’s test of the new technology in the Chicago area “did not connect very well with consumers.”

* Illinois takes slow approach on health exchange

* Letter seeks suspension of new hospital approvals: Three Chicago-area hospitals say a state board should wait to approve any new hospitals until Illinois establishes a Center for Comprehensive Health Planning called for in legislation.

* Area legislators holding meeting on insurance

* ADDED: Heritage Manor employees protest cuts to nursing home payments

* Gov. Quinn Names Gery Chico Head of Illinois State Board of Education

* New law would change rules on teacher tenure

* District claims family lives out of town, sues for $30K in tuition: The Carters say it is frustrating because they pay property taxes — money that underwrites the local school system — on the Oak Park condo they continue to call home. They say they showed district officials the tax paperwork and phone bills to prove they live there. But their children were still shown the door. Property records show Terri Shaw Carter is listed as the owner of the Oak Park residence.

* Felon, fired cop land sweet school jobs in Cicero and Berwyn district

  22 Comments      


Blagojevich trial live-blog

Wednesday, Jun 8, 2011 - Posted by Rich Miller

* The prosecution finished its cross-examination of Rod Blagojevich yesterday and the defense intends to put a couple witnesses on the stand today. The prosecution may also offer closing arguments today and jury deliberations may begin tomorrow. BlackBerry users click here, everybody else can just kick back and watch the festivities…

  42 Comments      


Chicago police chief wants to bring gun debate “back to the center”

Wednesday, Jun 8, 2011 - Posted by Rich Miller

* The problem with finding a “middle ground” on hot-button issues is that both well-funded sides of those issues are usually so radicalized that any attempt at compromise is seen as a complete surrender of principles. So, I wouldn’t hold out too much hope for compromise here

Jody Weis wasn’t the only ex-city official that new police chief Garry McCarthy attempted to distance himself from on Monday. He also signaled a distaste for the gun control policies of former Mayor Richard M. Daley.

“My goal is to bring the gun debate back to the center,” McCarthy told aldermen. “I think that we have abolitionists on one side and I think that we have NRA and those kind of folks on the other side, and frankly it’s too polarizing a debate, and 95 percent of the country is somewhere in between.”

That is not something that would have been uttered by a Chicago public official a month ago. Daley was a relentless advocate of tough gun control laws—one of the “abolitionists” McCarthy referred to—and he tolerated no open dissent in city government. […]

“I think that we can protect the Second Amendment rights of people to bear firearms while at the same time preventing the illegal flow of firearms into our urban centers and killing our children,” he said. “That’s a pretty wide gap, and there’s someplace in between that we can come as a country.”

McCarthy noted that he’s the chairman of a policy committee on gun control for the Major Cities Chiefs Association. “That’s one of the things I’m committed to. And with a platform like Chicago, Illinois, I think we can bring attention to the matter and get something done.”

* And with cutbacks in the 311 program, I’m not sure how successful this will be, either

Mayor Rahm Emanuel’s choice to run Chicago’s Office of Emergency Management and Communications vowed Tuesday to usher in a “cultural change” in 911 dispatching to free police officers to respond to the most serious crimes.

At his City Council confirmation hearing, Gary Schenkel said it’s high time that Chicago alter an outdated dispatch policy that sends police officers to respond to 70 percent of 911 calls, compared to 30 percent in other major cities.

Schenkel acknowledged it won’t be easy to wean Chicagoans of the habit of dialing 911 at every turn, calling the emergency number even for minor matters. It will require a major public relations campaign to divert lower priority calls to 311 or convince crime victims to file their reports online, Schenkel said. […]

“If we start with the hard-fact data — the actual emergency responses that require a body, a car, an engine, an ambulance — that’s our starting point,” Schenkel said.

“Then, we look at the other end of the spectrum and say, `These are the types of calls we’re getting. Where’s my car? I think it was stolen. No, it was booted. No, it was hooked. I don’t know.’ Then, we start pushing those over gradually. We have to start that public information campaign.”

Former Mayor Richard M. Daley’s administration talked for years about altering dispatch policy but didn’t amid fears of a political backlash.

* Meanwhile, the fear of violence is increasing exponentially in the city…

* Mobs Attack on City Buses: Police - Gang of teens storm bus, attack victims and run off with their belongings, police say

* 3 arrested in another apparent mob attack

* Editorial: Mag Mile mobs - Chicago police need to target violent flash mobs

* But these buried nuggets in a Sun-Times story suggest that at least some of the problems are not real

Mary L. McCarthy, a Gold Coast resident who is not related to the new chief, said flash mobs are giving her second thoughts about venturing out at night for the first time in the 13 years she’s lived in a high-rise in the 1400 block of North State Parkway. On Friday night, a crowd of about 20 youths gathered outside her building, she said. She claimed the youths pulled people out of cars and taxicabs, leading the doorman to lock the doors to her building.

“We need a bigger police presence. I don’t know, maybe bringing horses back would help. A show of force would stop this nonsense. This does not portend well for the summer,” she said.

Police Near North District commander Kenneth Angarone, however, said police responded to the scene at North State Parkway but did not find a “bona fide incident.’’

Several officers have also told the Sun-Times they were recently warned by superiors to tell family members not to ride their bikes on the lakefront because of incidents of mobs pushing people off their bikes — and sometimes pushing cyclists into the lake.

But Angarone said police also investigated those claims and could not determine the incidents were bona fide.

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