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This just in… Tribune files for bankruptcy protection

Monday, Dec 8, 2008 - Posted by Rich Miller

* 12:48 pm - The Tribune quotes the AP in a story about itself…

Media conglomerate Tribune Co. has filed for bankrutpcy protection, pressured by high debts, according to the Associated Press.

Background is here.

…Adding… Crain’s reports that the Cubs are excluded from the bankruptcy filing [h/t to commenters]

  35 Comments      


Blagojevich: Feds’ alleged taping “smells like Nixon and Watergate”

Monday, Dec 8, 2008 - Posted by Rich Miller

* Via the Tribune’s raw video of Gov. Rod Blagojevich’s press conference, we learn that the governor addressed the Tribune’s report that the feds taped some of his conversations…

“If anybody wants to tape my conversations, go right ahead, feel free to do it. I appreciate anybody who wants to tape me openly and notoriously. And those who feel like they wanna sneakily and wear taping devices, I would remind them that it kinda smells like Nixon and Watergate.”

Not sure I quite get that Watergate point, unless the taping was done illegally.

* More…

“This is America. I’d appreciate if you want to tape my conversations, give me a heads-up and let me know.”

That’s not the way prosecutors do things, but whatever.

* On the Tribune revelation that lobbyist and longtime friend John Wyma’s cooperation helped the feds record the guv…

“The Tribune was wrong and very well may have defamed him.”

* And the governor sees a bright side to the taping…

“The good news is, if they’re going to those lengths and extents, if in fact that’s true, that would suggest all the past has been pretty good.”

* When asked about the dark cloud hanging over him…

“I think there’s nothing but sunshine hanging over me.”

* NEW: More quotes at the Tribune.

  46 Comments      


Hype reported, specifics unquestioned

Monday, Dec 8, 2008 - Posted by Rich Miller

* Today’s press conference by Gov. Rod Blagojevich is getting a lot of media play. From the Tribune

Gov. Rod Blagojevich said this morning the state of Illinois “will suspend doing any business with Bank of America” until the company restores credit to the shuttered Republic Windows & Doors company on the North Side.

Blagojevich made the announcement after meeting with former workers who have been staging a sit-in on the factory floor since Friday to protest abruptly losing their jobs. The governor said the state has “hundreds of millions of dollars” in dealings with the bank. [emphasis added]

* OK, but I wondered what business the State of Illinois actually does with Bank of America. So, I posed that question to the guv’s press office, and they didn’t have a ready response.

Bank of America owns LaSalle Bank, a storied Chicago institution. So, there is probably quite a bit of business there, particularly with bonding. But are we going to cancel those bonds? No. Can we disqualify the bank from future bonding without facing bigtime lawsuits? You got me. Is this bridge loan program for state vendors also in jeopardy?

It would be nice if we knew exactly what sort of pressure this threat will actually put on the bank itself, or whether this is just an empty gesture designed for maximum press exposure.

I’ll update with any new information.

* CNN’s coverage…

The CNN guy gushed at the end of the piece: “Wow! You wanna talk about some news!”

* Raw video…

* A bit of background

The story of Republic Window and Doors started quietly last week, when Bank of America informed the company, located on Chicago’s Goose Island, that it had canceled their $5 million line of credit. Then came the rumble. Republic’s executives, in turn, announced that the company would be shutting down and gave its 250-plus workers 72 hours to leave their jobs. In the days since, the story has built to a roar, with employees deciding on Friday to stage an ongoing sit-in in the factory. Local officials, members of Congress, and the national news media have all taken notice and you can be sure to hear more about the situation over the course of the next week.

* More

Leah Fried, an organizer for the United Electrical Workers union that represents the workers, said the company told the union that Bank of America has canceled its financing. The bank had said in a statement that it wasn’t responsible for Republic’s financial obligations to its employees.

  57 Comments      


Question of the day - More Golden Horseshoes

Monday, Dec 8, 2008 - Posted by Rich Miller

* More for your consideration…

1) Best press spokesperson (legislative, congressional, local or statewide)

2) Best Statehouse lobbyist

3) Best non-press staffer for a constitutional officer

Remember: No negativity and no snark. And please explain all your votes. The explanations are worth infinitely more than raw totals. Thanks much.

Winners so far were posted Friday.

  49 Comments      


Budget woes and a ray of hope

Monday, Dec 8, 2008 - Posted by Rich Miller

* This is an extremely short-term solution, and it’s not even that

Illinois will borrow $1.4 billion to make payments to schools, health care providers and others who’ve been waiting months to be reimbursed by the state.

The deal, which does not need lawmakers’ approval, could be completed within weeks and potentially free up cash to pay backlogged bills by month’s end.

“Especially in this poor national economy, Illinois needs to make sure that we can pay the businesses that provide the state with the goods and services which help families in these tough times,” Gov. Rod Blagojevich said in a statement announcing the borrowing plan, which was agreed to by Comptroller Dan Hynes and Treasurer Alexi Giannoulias.

The state’s delinquency in paying billions of dollars in bills has caused havoc with budgeting at schools, hospitals and other health care providers.

The loan has to be paid back by the end of this fiscal year, so Illinois must start setting aside money right away to pay off the debt. So, some late payments will be made, but the state has billions more in unpaid bills, so most vendors won’t see relief.

The reason that this is so important is that Illinois’ social service network is mostly run by private, non-profit agencies like Catholic Charities, Lutheran Social Services, etc. If the state did all of this work “in-house” then we’d be in even worse shape because those state worker pay checks would have to be cut every two weeks. Instead, our problems are foisted off on those who can ill afford it.

* Mike Lawrence offers up some shock therapy

Because too many politicians have chosen sweet talk over straight talk, Illinoisans overwhelmingly believe we can provide adequate K-12 funding, assure higher education accessibility to the less affluent, preserve parks and historic sites, respond comprehensively to mental illness, arrest and imprison violent offenders, combat methamphetamine, heroin and crack cocaine, keep faith with retired public employees and rehabilitate the state treasury simply by curtailing raises for legislators, firing political hacks, grounding the governor’s plane and doing some surgical snipping here and there.

But the far less soothing reality is that we could make legislators serve for free and barely ding the deficit. We could shutter five universities and close down departments that patrol our highways, guard and conserve our natural resources, serve senior citizens and veterans and protect the public health — and still not eradicate the red ink, let alone protect and invest in our children and in the roads, bridges and other infrastructure vital to economic development.

More than 90 percent of general revenue funds support education, health care, services for the needy, law enforcement and pensions.

Even while in the grip of an unemployment-escalating, insecurity-abetting economy, can we diminish or even continue to tolerate substandard resources for youngsters in any corner of Illinois and abide academic achievement gaps between whites and burgeoning minorities without ultimately yielding good jobs to other states and countries that offer better educated and trained workers?

* Admittedly tongue in cheek stories like this only feed that false perception of an easy solution

Illinois’ license plates proudly boast we’re the Land of Lincoln. Now, we’re the Land of Obama, too. So what would happen if state leaders gave drivers the option of buying a special license plate to commemorate Barack Obama’s historic inauguration as president?

Judging by calls to Secretary of State Jesse White’s office and an examination of state records, the idea might offer a boost for the state’s cash-strapped budget.

* The new Senate President is offering up some much-needed hope for change

John Cullerton, who takes over as president of the Illinois Senate in January, said Saturday he will make the long-delayed capital bill his “number one priority.”

Speaking at the reopening of the Irving Park Brown Line station on the North Side, Cullerton said a capital bill will bring not only improved bridges, roads and public transit, but jobs.

“The jobs situation in Illinois has been terrible,” said Cullerton (D-Chicago). “I look forward to working with the mayor and all the elected officials, bringing the governor and the speaker together, and try to get this dysfunctionality that’s been going on in Springfield over with, get this gridlock to end and get working on our problems.”

* And the Peoria Journal-Star, which endorsed a Senate President candidate backed by Rod Blagojevich and Emil Jones, demands a leadership change

If the leaders - that the members choose, by the way - won’t lead, then it’s time to change leaders, or at least challenge them publicly.

Um, they just had an election to change leaders in the Senate. Why not wait and see what happens before ranting and raving?

* Somewhat related…

* 50 states, 50 holes

* A look at Gov. Rod Blagojevich’s wish list for infrastructure projects

* Pontiac doesn’t agree with governor’s office

* SJ-R Opinion: Make COGFA rulings binding

* SJ-R Opinion: Fix ethics law so road funds are not at risk

* Proposed driving restrictions not all fair

* Rosemont mayor returns mob-linked funds

  11 Comments      


Christmas wars come to the Statehouse

Monday, Dec 8, 2008 - Posted by Rich Miller

* I suppose I’ll never quite comprehend why certain people feel it’s so darned necessary to put up religious displays on taxpayer property

If the placement of a Nativity scene in the Statehouse last week starts a trend at other public places in Illinois, that would be fine with organizers of the display. But they’re not going to force the issue.

“We’re here to be a catalyst towards the goal, but forcing it upon someone does nothing,” said Dan Zanoza of Lincoln, chairman of the Springfield Nativity Scene Committee, which held an unveiling ceremony Tuesday. “Yes, we would like to see a Nativity scene on Christmas in every town, in every hamlet, in every municipality, but that’s if the people of those communities would like it to be.”

Zanoza, his wife Julie, and other members of the committee got the help of the Chicago-based Thomas More Society, a public interest law firm, in organizing the event. The Italian marble figures of baby Jesus and Mary and Joseph cost about $7,000, and the society, at 29 S. LaSalle St., Suite 440, Chicago, IL 60603, is accepting donations to pay for them.

Thomas Brejcha, president and chief counsel of the Thomas More Society, made it clear in remarks at the unveiling that the private funding is what made the display appropriate for a public building.

“The legal theory involved here is simple and essential,” Brejcha said. “It’s a free-speech exercise. If you can stand on your soapbox, proclaim your politics in America’s public square, then equally you can proclaim your religious faith and the values that that faith enshrines.”

That sounds reasonable I suppose, but only if they follow through with their reasonableness. Keep reading for the bad news.

* The nativity scene, of course, has prompted a couple of other requests

White spokesman Dave Druker the office now has a pending request to place a menorah in the building. Sen. Ira Silverstein, D-Chicago, said Chabad of Chicago will sponsor the menorah. The Chabad movement has centers around the world that provide outreach and other activities for Jews. The movement was in the news recently when terrorists targeted a Chabad center in India.

“I think it is important that all religions be represented (in the Capitol),” Silverstein said. “If there is a Nativity scene, the Jewish faith should have something and Muslims, too, if they want.”

There is no pending request from a Muslim group to have a display. However, there is a request pending from one other group, Druker said. The Freedom From Religion Foundation of Madison, Wis., plans to put up a sign as early as next week stating its thoughts.

“We don’t think there should be religion or irreligion in the Capitol,” said co-president Annie Laurie Gaylor. “If the state says it will have a public forum, we want to make sure the non-religious are represented as well.”

Gaylor recited what will be on the sign, which is identical to signs placed in capitols in Washington state and Wisconsin.

“Our message at this season of the winter solstice is may reason prevail. There are no gods, no devils, no angels, no heaven or hell. There is only our natural world. Religion is but myth and superstition that hardens hearts and enslaves minds.”

* And despite saying they’d be fine with other religious displays, Dan Zanoza just sent out a press release this morning which indicates there’s trouble ahead…

An organization from Madison, Wisconsin, which calls itself the Freedom from Religion Foundation, is seeking a permit from the office of Jesse White (the Illinois Secretary of State) and some see this move as an attempt to malign the Nativity scene which was designed and constructed solely with private donations, as would be the case for the Menorah. There has been a national debate over whether the atheist sign in Washington is political dialogue or hate speech.

Hate speech? Oh, boy, here we go. So much for reasonableness.

…ADDING… Try to avoid predigested and preapproved talking points in the discussion. This has the potential to be as goofy as any national political discussion. So, use your own brain and your own words. Thanks.

  59 Comments      


Obama’s replacement circus and the Blagojevich taint *** UPDATED X1 ***

Monday, Dec 8, 2008 - Posted by Rich Miller

* The “Gimme Barack’s seat” fervor is getting outta hand

“Barack would not be there had [it] not been for an Emil Jones,'’ Ald. Carrie Austin (34th) said at a Sunday news conference to push Jones.

A news conference to push Emil Jones for Senate? Good grief.

*** UPDATE *** Oops. I forgot to make mention of this Fox News report

Illinois Senate President Emil Jones has become the front runner to replace President-elect Barack Obama in the United States Senate, a source told FOX News.

Look, it may be Jones. But using a single source to make a claim about what’s going on in Gov. Blagojevich’s head is kinda goofy. Unless it was RRB hisself, I don’t buy that report.

Again, though, the guv may very well pick Jones. I heard a while ago he was leaning in that direction. I just don’t buy into the Fox report as fact.

[*** End of update ***]

* But Jones would likely be a placeholder, and Sen. Robert Menendez, the incoming US Senate Democratic campaign chairman, doesn’t want a placeholder appointed

Menendez expressed his hope that Blagojevich will avoid a placeholder appointee, as will New York Gov. David Paterson (D).

“Those are our standards, and I’ve spoken to both Gov. Blagojevich and Gov. Paterson about our desires,” Menendez said. “And I think they share it with us in terms of making sure that whoever they consider appointing will meet those standards — their ability to represent Illinois and New York well, as well as be able to win the seat in the next election that will be up for the rest of the expired term.”

* Believe it or not, Danny Davis has been on a campaign tour

The six-term U.S. congressional representative visited Aurora to promote his bid for President-elect Barack Obama’s U.S. Senate seat vacancy.

“It might seem odd to be campaigning for a one-person decision,” Davis said, but he wanted to encourage people to suggest that he would make a good replacement for Obama in the Senate.

Davis was also in Rockford.

* And the Tribune finally notices that Blagojevich’s choice could be tainted

The revelation that federal prosecutors have recorded Gov. Rod Blagojevich as part of their corruption investigation of his administration cast new controversy Friday over his pending decision to appoint a replacement for President-elect Barack Obama in the U.S. Senate.

Fellow Democrats were already expressing private reservations that the governor’s scandals could politically taint whoever he handpicks for the job. Those concerns grew Friday with the Tribune’s revelations that close Blagojevich confidant John Wyma is cooperating with the tightening federal probe.

But even as the governor’s office sought to give Blagojevich distance from the latest twist in the investigation, Wyma’s closeness to him was underscored by word that Wyma talked with one of the candidates seeking the Senate job.

Wyma spoke with Jesse Jackson, Jr., which probably didn’t seem like a huge deal until the Tribune reported Friday about Wyma allegedly working with the feds.

Cynthia Canary, director of the Illinois Campaign for Political Reform, said anyone who wants to be the next U.S. senator from Illinois must “do a very strange dance where they have to charm the governor and then immediately disown him.”

“If whoever becomes our next senator wants to have a political future, they cannot afford to have their star tied to the governor one day longer than it takes to be appointed,” said Canary, who called Blagojevich “politically toxic.”

Anyway, it’s nice that the Tribune finally noticed this real problem.

* The Tribune had another Blagojevich story over the weekend

The contents of the [Wyma] taping have not been disclosed, and the governor’s office reiterated Friday that he had committed no wrongdoing. Blagojevich has not been charged with a crime. Nor has his wife, Patricia, whose real estate deals have come under the federal microscope as part of the probe of pay-to-play politics. Wyma has not been charged, either.

So far, though, 13 people have been indicted or convicted in the festering scandal, including prominent Blagojevich fundraiser Antoin “Tony” Rezko, who faces sentencing, and the governor’s former chief fundraiser, Christopher Kelly, once the governor’s point man on gambling issues, who stands indicted on tax fraud counts linked to his betting activities in Las Vegas.

“I think we have to look at the inner core of the governor’s sanctum and who those players are,” said Rep. Jack Franks (D-Woodstock), a longtime critic of Blagojevich. Franks has pushed for legislators to do a preliminary investigation on whether they should launch impeachment hearings.

* And speaking of Blagojevich’s troubles

The sentencing of former Democratic National Committee fund-raiser Joseph Cari Jr. has been delayed at the request of prosecutors.

It’s a sign the feds want to use Cari as a witness — again. […]

He was supposed to be sentenced months ago, after he testified against Tony Rezko, the former fund-raiser for Blagojevich and President-elect Barack Obama. But that was put off, and no new date has been set.

At Rezko’s trial, Cari testified that Blagojevich told him he planned to reward big campaign donors with state contracts. The governor has denied having that conversation.

Not a good thing for the guv, or for whomever he appoints to the Senate.

* Mayor Daley is no fool

Mayor Richard M. Daley is lobbying to keep Gov. Rod Blagojevich’s mitts off several hundred million dollars Chicago is poised to get through a proposed economic stimulus package under debate in Congress.

* Related…

* NEW: Illinois Attorney General Lisa Madigan wants to block former tollway chief Brian McPartlin from taking a job with an engineering firm that has received more than $30 million in agency contracts.

* Emil Jones interested in U.S. Senate seat

* Obama’s Mini-Me

* Obama’s basketball pal for governor?

* Obama breaks Cook County records

* Tribune Editorial: If you keep your pledge of 21 months ago to discuss the federal investigation with us, we would hope for a similar engagement and a similar tone. Mostly we would hope to help explain to the people of Illinois your thoughts on the cloud of scandal that, fairly or not, envelops your administration. Governor Blagojevich, let’s talk.

  33 Comments      


Morning Shorts

Monday, Dec 8, 2008 - Posted by Kevin Fanning

* U.S. Rep. Luis Gutierrez has made more than $420,000 on real estate deals

Among the reasons his real estate dealings do not cause conflicts, Gutierrez has said, is that he never interferes in local zoning matters. But the Tribune reported in October that Gutierrez sent a letter to Mayor Richard Daley seeking support for a controversial project built by one of the congressman’s political donors who also had lent him money. The newspaper reported that federal authorities investigating zoning matters have shown interest in the Gutierrez letter.

* Rep.-elect Debbie Halvorson: From cosmetics sales to Congress

* Admission Price Tops $1 Million for Most Winners in House Races

* Lots of bread along 14th District trail

Ranked in order by votes received, here’s a look at how much they each spent and the per-vote cost of their campaign. Vote totals are according to the Illinois State Board of Elections, while the financial information comes from the Federal Election Commission.

• Rep. Bill Foster: 303,011 votes; $4,880,916 spent, or $16.10 per vote.

• Jim Oberweis: 269,275 votes; $5,036,947 spent, or $18.70 per vote.

• State Sen. Chris Lauzen: 65,539 votes; $1,222,287 spent, or $18.66 per vote.

• John Laesch: 60,445 votes; $179,489 spent, or $2.96 per vote.

• Jotham Stein: 10,947 votes; $228,411 spent, or $20.86 per vote.

• Joe Serra: 6,033 votes; $0 spent.

• Michael Dilger: 1,847; $0 spent.

The bottom line in this race for Washington? Coincidentally, $16.10 per vote — the amount Foster spent.

* Is Daley mortgaging the future?

He has now unloaded four of the city’s most valuable assets for a $6 billion mountain of cash and saddled taxpayers with $5.8 billion worth of long-term debt.

The great Chicago sell-off started with the Skyway ($1.83 billion), continued with downtown parking garages ($563 million) and Midway Airport ($2.5 billion) and culminated this week with the sale of Chicago parking meters ($1.15 billion).

More troubling for future generations is the fact that the mayor plans to spend at least $425 million of the parking meter windfall over the next five years — and $324 million more if the moribund economy is slow to bounce back.

Daley has also increased the city’s long-term debt by a whopping 178 percent over the last decade — from $2.1 billion to $5.8 billion or $2,006 per person.

And Chicago has more than 150 tax increment financing districts that siphoned $555.3 million away in 2007.

The bottom line is that Daley’s successor will be boxed in by heavy debt, a diminishing tax base and precious few money-making assets.

* Daley Asks Why Plows Missed Some Street Corners

Chicago Mayor Richard Daley says he wants to know why some street corners weren’t plowed properly following this week’s snow storms.

DALEY: That’s the key. That’s the key. How do they miss corners? How do they miss a corner over here and take every corner down Madison Street. Why did they miss that corner? So that’s what you’re trying to figure out.

* Daley admits mistakes were made in snow removal

* CTA trains speed up as slow zones fade away

* Union ignoring facts in defense of Burge

* The undercover agent

On Tuesday the Justice Department announced charges against 17 defendants, 15 of them Chicago, Cook County or suburban law officers. They’re accused of providing armed security for what they believed to be cocaine and heroin transactions. They were paid, the government alleges, to serve as lookouts, ready to intervene in the event honest police—or rival drug dealers—tried to interfere with the purported drug trafficking.

* Part II: Let’s talk taxes, baby

This week, I’ll revisit tax cap legislation of the 1990s; how it affected your pocketbook; and the status of the 7 Percent Expanded Homeowner Exemption pushed by Cook County Assessor James Houlihan.

Sharpen your pencils, pupils. Here we go:

* Banks protege gets new City Hall zoning post

The influence of the Northwest Side political clan that dominates City Hall’s real estate development process expanded Friday as Mayor Richard Daley named Patricia Scudiero the first commissioner of the new Zoning and Land Use Planning Department.

Scudiero is a protégé of Ald. William J.P. Banks (36th), chairman of the City Council Zoning Committee since Daley became mayor in 1989. She served as a Banks aide from 1989 to 2004.

* Federal regulators green light CN merger with conditions

Echoing the sentiments of a divided Chicago region, federal regulators issued their final report Friday on the environmental impact of the Canadian National Railway merging with the smaller EJ&E railroad, finding it will ease freight traffic in Chicago and nearby suburbs but cause problems for some towns along the “J.”

The report issued by the U.S. Surface Transportation Board gave a list of conditions CN must follow to ease negative impacts of buying the EJ&E but seemed to assume the deal would move forward.

* Planes go around again for added safety

* Virgin abandons O’Hare plans

* Staff Cuts at Chicago Public Radio

* Tribune Co. hires bankruptcy advisers

Tribune must raise cash, either by selling assets such as the Chicago Cubs, or by cutting costs. It already has cut hundreds of jobs at its newspapers, which include the Los Angeles Times and Baltimore Sun, and last week managers cut 11 jobs in the Chicago Tribune newsroom.

The recession in newspaper advertising has hurt the Tribune as it tries to swallow $12 billion in debt that Zell took on last December when he took the company private.

Analysts who follow Tribune debt, which carries junk-bond ratings, have said the company’s immediate concern is a covenant that limits its borrowings to nine times its cash flow. Some experts believe Tribune no longer meets that standard, especially after it reported a third-quarter operating loss of $124 million. Tribune reportedly owes $1 billion in interest payments this year and a $512 million debt payment in June.

* Media: It’s all skittles and beer for the newspaper business

* Media: Journal Star losing two reporters

* NYT’s 10K subscribers on Kindle: The start of something bigger?

One other important note from that internal New York Times memo my colleague Zach got a hold of: The company reports it has “more than 10,000 paid subscribers” to an electronic edition of the newspaper on Amazon’s Kindle ebook reader. To my knowledge (please correct me if I’m wrong), that’s the first time a major newspaper has released numbers on how it’s doing on Kindle — a platform lots of newspaper execs are eager to see turn into a saving grace for their industry.

Given that the electronic Times costs $13.99 a month, that would mean the NYT Kindle edition is generating in the neighborhood of $1.68 million a year. How much of that goes to NYT Co. and how much stays with Amazon is unclear.

* Idled workers occupy factory in Chicago

* Plant Closing Leads to Sit-In

* Republic Windows, workers at odds over closing

Disgruntled union workers for Republic Windows & Doors Inc. met Friday with company management, a congressman and representatives of Bank of America in an attempt to settle a dispute over the manufacturer’s abrupt closing.

The meeting Friday was brokered by U.S. Rep. Luis Gutierrez, D-Ill.

Republic’s 239 workers learned Tuesday that the Chicago company would close Friday morning after B of A cut off its line of credit. The company, already struggling from a prolonged downturn in the housing market, was unable to stay in business.

Rich Gillman, Republic’s CEO, said that the company’s monthly sales had fallen to $2.9 million from $4 million in the past month, and staying open would only create greater financial losses. The company had “no choice but to shut our doors,” he wrote in a memo to the union

* Chicago factory layoffs are a ‘wake-up call to America’

* Cure for recession won’t be sweet, will require balance

* Mitsubishi plant shutting down for seven weeks

* McDonald’s girding for union fight

* Mortgage Modifications Help Homeowners, But for How Long?

* Trains no longer home for homeless?

* Tough choices, difficult times

* Everyone–in this economy—has a story

* Another election season begins with local filing today

Candidates will head to their village halls today as the filing period for begins next spring’s local election.

In area suburbs where primaries are possible - namely Hoffman Estates, Schaumburg and Palatine - candidates have from 8 a.m. today to 5 p.m. Monday, Dec. 15 to file.

* Cops: Bob Shaw slugged on street

* Man questioned in confrontation with South Side politician Robert Shaw

  12 Comments      


Attorney: Wyma did not wear or know about wire, won’t say whether he’s cooperating

Friday, Dec 5, 2008 - Posted by Rich Miller

* John Wyma’s attorney has released a statement

An attorney for one of Gov. Rod Blagojevich’s closest friends denied Friday that his client ever wore a wire or made recordings of the governor for the FBI and was unaware of any such recordings.

“Any allegation or insinuation to the contrary is simply untrue,” Zachary T. Fardon, attorney for lobbyist and Blagojevich friend John Wyma, said in a statement.

His statement followed a report in Friday’s Chicago Tribune that Wyma has cooperated with federal investigators in their probe of corruption in the Blagojevich administration and quoted unnamed sources as saying that the assistance provided by Wyma “helped lead to recordings of the governor and others.”

The Tribune never reported that Wyma had worn a wire or made recordings.

Fardon declined to answer questions as to whether his client, a former Blagojevich staff aide who is now a lobbyist, was cooperating with the government.

* Here’s the original Tribune copy, which was somewhat artfully worded

As part of this undercover effort, one of the governor’s closest confidants and former aides cooperated with investigators, and that assistance helped lead to recordings of the governor and others, sources said.

Some of us initially interpreted that wrong, including myself, unfortunately. Thanks to Fardon for clearing it up.

  Comments Off      


Reader comments closed for the weekend - And the Golden Horseshoe winners so far

Friday, Dec 5, 2008 - Posted by Rich Miller

* It’s been another one of those weeks. Illinois politics is like a very good political novel. It’s hard to put it down. But we’ve arrived at the weekend, so all things must come to an end. I’ll see you Monday.

Keep heading to Illinoize for bloggy fun, and buy yourself a classified or calendar ad at InsiderzExchange, the place to be seen.

* Let’s announce some Golden Horseshoe winners, shall we?

* Best legislative staffer: Nick Bellini and Nick McNeely. This was how a commenter explained his/her vote….

Because in an election year based on the concept of change, they got [Rep. Ron Wait] a 20-year incumbent who bailed a sex-offender out of jail re-elected.

Can’t argue with that.

* Best legislative secretary/admin assistant: Marcia Simmons. She really does do a great job. Sen. Munoz’s Springfield secretary got a bunch of votes, and here’s one…

It makes your visit to Springfield easier when legislative assistants want to not only help you but do it in a pleasant manner.

* Best state legislator: Senate President-in-waiting John Cullerton

I can’t believe this transition went as smooth as it did.

* Best political bar/restaurant. Saputo’s wins this hands down, according to readers…

We all know who sits in the corner and it’s a sure thing to see dozens of legislators. It looks like the location has treated Cullerton pretty well also.

* Best Agency Director: Doug Scott

Hardly ever in the news. Just keeps the agency running with no major scandals or screwups, which is what a good director should be.

* Best statewide official: Lisa Madigan. Both Madigan and Alexi Giannoulias had lots of support in today’s runoff, and it was a very tough decision. Madigan won last year, and I was just about to give it to Alexi when I read this comment by Jake from Elwood…

Simply put, very few politicians in my lifetime have exceeded my expectations when they have first taken office. She is one of them.

Then way south of the border wrote this…

Her early work (which dates back at least two years) on mortgage fraud has paid off beautifully this year, with landmark lawsuits and settlements that are a model for the nation.

I appreciate Alexi as a young, energetic idea guy, but Lisa’s focus and foresight puts her in front of the whole pack of constitutional officers. She has really delivered, when we need it most.

* Best congresscritter: Dick Durbin. I went into today’s runoff figuring that the George Ryan commutation uproar would doom Durbin against Mark Kirk. Boy, was I wrong. Kirk had a lot of intense support, but Durbin gets the win because the odds were so heavily stacked against him today…

I cannot agree with his position on Ryan. I can understand it.

More next week.

* This song seems to be appropriate on a whole bunch of different levels…


Praise be to Nero’s Neptune
The Titanic sails at dawn
And everybody’s shouting
“Which Side Are You On?”
And Ezra Pound and T. S. Eliot
Fighting in the captain’s tower
While calypso singers laugh at them
And fishermen hold flowers
Between the windows of the sea
Where lovely mermaids flow
And nobody has to think too much
About Desolation Row

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Protected: SUBSCRIBERS ONLY - This afternoon’s edition of Capitol Fax

Friday, Dec 5, 2008 - Posted by Rich Miller

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Quinn wants answers, and more on the guv’s Philly trip

Friday, Dec 5, 2008 - Posted by Rich Miller

* Yeah, this’ll happen. From the Tribune

Lt. Gov. Pat Quinn demanded today that Gov. Rod Blagojevich immediately explain himself to the public following the Tribune’s disclosure that the governor has been covertly taped by federal authorities investigating corruption in state government.

“I think the governor has a short period of time to come forward and level with the people of Illinois,” Quinn said. […]

“The governor owes to the people of Illinois a full and complete explanation,” said Quinn, who defended Blagojevich while serving as his running mate in 2006, when the federal probe already was going on.

Quinn said Blagojevich should open himself up to questions raised by the Tribune story and his relationships to convicted political insiders like Stuart Levine, whom Blagojevich kept on state boards where corruption flourished, and Tony Rezko, whose federal conviction followed a trial where the governor was repeatedly linked to allegations of pay-to-play politics. Blagojevich and Wyma have not been charged with any crimes.

“He should immediately find a forum and stand there for however long it takes and fully and completely answer all questions raised,” Quinn said.

An apt forum might be a House impeachment hearing.

Just sayin’.

* Meanwhile, we now know about how many staffers that Gov. Blagojevich took with him to Philadelphia to meet with fellow Chicagoan Barack Obama…

According to the governor’s press office, Blagoejvich and 7 or 8 staffers took a state owned twin turbo jet to Philly.

That’s a heckuva lot of staff. Compare that number to other governors at this link.

Back to the story…

We checked into how much more expensive it was to fly the private plane compared to a commercial flight.

According to the state auditor’s office, it costs $9.81/mile to fly the private plane. A round trip from Chicago to Philadelphia is 581 miles. That means it would cost an estimated $7,880 to fly round trip betwen Chicago and Philly.

We then priced a commercial flight from Chicago to Philadelphia. According to Southwest.com, a round trip flight would cost $440.

Therefore, it would cost the governor and staffers $3,520 to make the round trip. That’s a difference of nearly $8,000.

A spokesman for the governor tells us flying the private plane allowed the group to meet while in air and it has phone access as well.

The math here is really screwed up.

The 581 miles used in the story is actually nautical miles. 581 nautical miles x2 for a round trip is 1,162 miles, x$9.81 = $11,399.22, not the number in the story.

The Auditor General has also decreed that the billing rate for the state plane should be $1.85 per seat-mile. If it was the guv plus eight staffers (we’ll take the high end) that’s $16.65 for each mile.

So, using nautical miles, that’s 1,162 round-trip miles, times $16.65 = a recommended $19,347.30 pricetag.

Yowza.

  48 Comments      


Question of the day - Golden Horseshoe Runoffs

Friday, Dec 5, 2008 - Posted by Rich Miller

* I can’t make a decision on the following Golden Horshoe contests…

1) Best statewide official: Lisa Madigan or Alexi Giannoulias

2) Best congresscritter: Mark Kirk or Dick Durbin

Vote for only one in each contest. No further nominations will be accepted. Please explain your reasoning, but keep it positive. I’m not interested at all in why you’re for somebody because of how much you’re against the other. I’ll just delete that sort of comment if I’m around.

I’ll post the winners to date later today.

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Protected: SUBSCRIBERS ONLY - Fiscal meltdown continues; Latinos; Turner; Shaw; Condos (use all caps in password)

Friday, Dec 5, 2008 - Posted by Rich Miller

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A reason for Durbin’s mercy?

Friday, Dec 5, 2008 - Posted by Rich Miller

* Steve Huntley and I agree on Dick Durbin’s possible motive for asking President Bush to commute George Ryan’s sentence…

A few weeks ago, Durbin’s daughter, Christine Ann, died at age 40 after a lifelong struggle with a congenital heart condition. As we enter one of Christianity’s holiest seasons, Durbin understands how fleeting the joys of life are, how closely death shadows our lives, and how precious family life is.

Durbin, a fiercely partisan liberal, and I, a conservative, don’t agree on a lot of things. I can’t find myself agreeing with him on this one, but I also can’t find fault with him.

Mrs. Ryan is said to be more ill than has been reported, by the way. That certainly played into Durbin’s thinking.

* The list of congresscritters opposing mercy for Ryan grows longer by the hour...

Congresswoman-elect Debbie Halvorson (D-Crete) and U.S. Reps. Judy Biggert (R-13th) and Jesse Jackson Jr. (D-2nd) said they oppose commuting former Gov. George Ryan’s prison sentence. […]

Two other Southland members of Congress - Bobby Rush (D-1st) and Dan Lipinski (D-3rd) - did not return calls for comment.

* Related…

* On the Record: Gov. George Ryan Commutation

* Debate Over Ryan Commutation Heats Up

* Lake County Sheriff Mark Curran opposed to Ryan sentence change

* Joseph Birkett joins list of Illinois leaders who oppose clemency

* Ryan should stay in jail: AG Madigan

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Merry Fitzmas! Trib says Wyma helping the G

Friday, Dec 5, 2008 - Posted by Rich Miller

* Man, if Wyma has flipped, is there anyone at all whom the governor can trust?

Federal investigators recently made covert tape recordings of Gov. Rod Blagojevich in the most dramatic step yet in their corruption investigation of him and his administration, the Tribune has learned.

As part of this undercover effort, one of the governor’s closest confidants and former aides cooperated with investigators, and that assistance helped lead to recordings of the governor and others, sources said.

The cooperation of John Wyma, 42, one of the state’s most influential lobbyists, is the most stunning evidence yet that Blagojevich’s once-tight inner circle appears to be collapsing under the pressure of myriad pay-to-play inquiries.

We’re talking about one of the governor’s very closest political and personal friends here. This ain’t no low-level guy.

* Did they get this meeting on tape?

Wyma, Blagojevich’s chief of staff when he was in Congress, has long been one of the few advisers trusted by Blagojevich and kept in the loop on matters of policy and politics. As the federal probe intensified, Wyma met privately with the governor and his former chief of staff at the governor’s campaign headquarters on the North Side for 90 minutes on Oct. 22.

Confronted outside that meeting, Wyma declined to talk to Tribune reporters about what the meeting was about before jumping into his car. The next day, the Tribune was the first to report that Wyma’s name appeared in a federal subpoena delivered to Provena Health, a former client of his.

Blagojevich might’ve been comfortable enough in that meeting to say anything. Oof.

…Adding… Lon Monk was the “former chief of staff” listed as attending that campaign headquarters meeting in today’s Trib article. Some background on Provena and that meeting can be found at this link

Pushing further into Gov. Rod Blagojevich’s inner circle, federal investigators have subpoenaed records involving a lobbyist friend who represented a hospital company that won a favorable state ruling.

The company’s for-profit affiliate donated $25,000 to Blagojevich’s campaign a month after the state’s action.

John Wyma, a top fundraiser and former Blagojevich aide, was named in a federal subpoena delivered two weeks ago to Provena Health, according to sources. It sought records about Provena’s lobbying relationship with Wyma, the donation and the company’s efforts to win approval for a new heart program. […]

On Wednesday, Wyma met for about 90 minutes with the governor and another fundraiser and state lobbyist, Lon Monk, at Blagojevich’s political offices on the North Side. When asked after the meeting about the subpoena, Wyma said, “I have no comment.”

Monk, who was Blagojevich’s chief of staff during his first term, also declined to comment.

Doug Scofield, a spokesman for the Friends of Blagojevich campaign committee, described the meeting as “routine.”

“I don’t think anything big happened,” he said.

Lisa Lagger, a spokesman for Provena Health, said, “We are not parties of interest here.”

If Provena isn’t a “party of interest,” then that might leave at least two others: The guy who solicited the standard $25,000 contribution and the guy who accepted it.

* Anyway, here’s more background

Wyma, 42, now a top lobbyist, has also been named in a federal subpoena delivered to Provena Health, a former client of his.

The subpoena sought records about Provena’s relationship with Wyma, the hospital’s efforts to win state approval of a new heart program and a $25,000 donation the company’s for-profit affiliate gave to Blagojevich’s campaign fund, the newspaper reported.

Wyma had no comment about the story.

Wyma doesn’t lobby the General Assembly much at all. He mainly uses his exclusive access to Gov. Blagojevich to make money.

* This story from a year ago might help explain some things as well…

Gov. Rod Blagojevich’s wife received the real estate commission in a $650,000 condominium sale from a businessman who since has won $10 million in no-bid state contracts.

The seller was Mark T. Wight, owner of Wight & Company, an architecture firm that won three new contracts with the state’s toll highway authority after the 2005 sale. The buyer was John R. Wyma, Wight’s tollway lobbyist and a longtime Blagojevich insider.

The governor might wanna make that US Senate appointment before it’s too late.

Just sayin’.

* Meanwhile

In another development, FBI agents searched two Joliet businesses owned by Harish Bhatt, a longtime Blagojevich supporter.

Agents descended upon Basinger and Essington pharmacies early in the morning and combed through paperwork. The FBI would only say it’s part of an ongoing federal investigation.

Bhatt told reporters agents weren’t looking into him, adding, “We have nothing to do with it.”

Last year, the Tribune named Bhatt as being part of an ongoing investigation into Blagojevich’s administration. The paper reported state police were looking into whether Bhatt solicited campaign donations in exchange for state favors.

Bhatt and Blagojevich go back years. Bhatt has raised thousands of dollars for the governor. And just this year, another Blagojevich fundraiser, Antoin “Tony” Rezko, was convicted on pay-to-play corruption charges.

* More from the Joliet Herald News, which broke the story yesterday…

Rice said the warrant was connected to “an ongoing federal investigation,” but would not disclose details on what the agents were looking into.

Both the complaints and warrants were under seal, Rice said.

* The Sun-Times is not so sure this is related

It appeared, however, that the feds’ visit to Bhatt’s pharmacies was not connected to the Blagojevich probe. “They are looking into somebody else,” Bhatt said Thursday. “We have nothing to do with it.”

Bhatt would not disclose whom the feds were interested in, saying agents asked him to be quiet.

We’ll all know soon enough.

* More bckground on Blagojevich and Bhatt is here.

A photo of Blagojevich and Bhatt…

And here’s one of Wyma [center] and Blagojevich in Texas from back in August. They apparently held a funder down there…

  120 Comments      


Morning Shorts

Friday, Dec 5, 2008 - Posted by Kevin Fanning

* Hospitals find it tough to borrow

Carle Foundation Hospital in Urbana has delayed beginning construction of its $236 million expansion project for at least six months.

Hunt says for all practical purposes, there is no bond market for hospitals. He says until the market opens up again, expansion won’t start because the institution wants to borrow money at a favorable rate

* Feds OK $775 million a year to Ill. for Medicaid

The federal government has approved sending more than $775 million a year over the next five years to Illinois hospitals and other medical providers to help care for Medicaid patients.

Gov. Rod Blagojevich announced Thursday that the federal Centers for Medicare and Medicaid Services approved the five-year deal with the state.

As a result, the Illinois Department of Healthcare and Family Services will distribute more than $1.5 billion a year in Medicaid payments. Half of the money will come from the federal government and half from the state.

* State move spurs Aurora to cut 6 empty jobs

Six vacant city jobs will be eliminated as part of the effort to offset Gov. Blagojevich’s plan to pull back state-shared money.

Faced with possibly $2 million less in state income tax dollars, Aurora finance officials in the late stages of setting the 2009 budget scurried to absorb the reduction.

* Budget chief who installed shower in office washes out

Mayor Daley’s $163,656-a-year budget director abruptly resigned Thursday, leaving a giant void as Chicago struggles to survive its worst financial crisis in recent history.

“Look at the history of budget directors. It’s two budget seasons and out. That’s just the way it goes. It’s a tough and demanding job. I’ve done a lot to try and help the city, but it’s time to move on. It is truly and absolutely for my own personal reasons,” said Bennett Johnson III.

* It’s official: Chicago parking meters will be private, pricier

City Hall could spend more than half of its $1.2 billion check within a few years, but a private company that agreed to pay that huge sum to lease Chicago’s parking meters now will get to collect the cash for the next 75 years.

Although the 36,000 meters generate almost $20 million a year in net income—and rates are set to rise sharply next month—Mayor Richard Daley contends the city is better served in these tough economic times by taking the money upfront.

Under a deal approved Thursday by a 40-5 City Council vote, the cost to park at two-thirds of the meters in Chicago will quadruple next month. Neighborhood spots that cost a quarter an hour will cost $1 an hour and will increase to $2 an hour by 2013. The top meter rates in the Loop will go from $3 an hour to $6.50 within five years.

* Aldermen Support Parking Meter Deal Despite Reservations

* City shouldn’t plow its way into a fiscal fiasco

* New O’Hare runway seeing tons of traffic, and nearby residents not keeping quiet

* Mayor calls Pontiac Prison task force a sham

* Run for Rahm’s seat: Cary Capparelli files papers for 5th House bid.

* Illinois sees slight decline in school enrollment

The net decline of 3,689 students last year was less than 1 percent of Illinois’ nearly 2.1 million public school students, according to the state school report card released this fall. What’s more significant is that the decline was widespread. Enrollment dropped in 63 of the state’s 102 counties last year, according to a Tribune analysis. The state education agency is monitoring the shifting population, a spokesman said.

Cook County drove the decline, with a drop of more than 25,000 students from 2003 to 2008, Tribune research shows.

The Chicago Public Schools lost more than 45,000 students in the last five years, according to the state report card, and a city school spokeswoman said they’ve seen no “significant reversal of the downward trend.”

* SJ-R Opinion: Giannoulias pension plan deserves study

* A chance for Illinois pensions

Bureaucratic wagons are circling against Illinois State Treasurer Alexi Giannoulias’ clear-headed approach to the state’s public employee pension mess.

Illinois has five separate pension funds managed by three separate boards. Together, they have 300 employees.

Giannoulias proposes merging administration of these funds to cut overhead and reduce the impact of political influence and corruption.

Already, some of the employee groups are reacting predictably with complaints that can be summarized thusly: Leave us alone. We can get along fine by ourselves.

But they aren’t by themselves. Several analyses rank Illinois’ unfunded pension obligations as the worst in the nation. Unfunded pension debt — the amount expected to be owed to future retirees versus the money expected to be paid in — exceeds $43 billion. So, taxpayers have to kick in to help cover the $1,900 to $3,100 per month in retirement payments guaranteed to about 270,000 retired teachers, judges, legislators and other public employees.

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So, how did other governors get to Philly?

Thursday, Dec 4, 2008 - Posted by Rich Miller

* We were told yesterday that Gov. Blagojevich took a state plane to this weeks’ governors meeting with President-elect Barack Obama. An Akron radio station has now taken a look at how other governors traveled to Philadelphia

Ohio Governor Ted Strickland was among those making the trip to press for more money from Washington, but his spokesman Keith Dailey noted the visit by commercial jet was paid for out of Strickland’s campaign money and not with state funds. The Governor didn’t take the state plane because the trip wasn’t bipartisan business, as he attended a Democratic Governor’s Association sponsored event Monday.

Gov. Blagojevich also attended that Democratic event. Hmm.

* This is the argument I made yesterday when I called the state plane usage a “stupid” idea…

Some of the state leaders obviously took a page from what happened when the Detroit top executives were roundly criticized by federal lawmakers and pundits for taking private jets to Washington to appear before Congress to press for relief in the form of up to $25 billion in assistance.

You’d think there’d be a learning curve on 15 16. You’d be wrong.

California’s governor, Arnold Schwarzeneggar, flew on a private jet, but paid his own way, New Jersey’s governor took a train and the governor of Michigan drove.

Ahnold is rich, NJ is close by, but the Michigan governor drove? Interesting.

In all, 11 governors took a commercial flight, eight flew on a state plane, officials in Kentucky and Mississippi said their governors flew on a plane, but wouldn’t specify whether it was a private or commercial jet and five governors didn’t go. There were 22 state offices that did not return our phone calls.

At least eleven took a commercial flight, but that was apparently not on our governor’s agenda.

* Here is part of the station’s list…

Florida - Governor Charlie Crist flew in a state plane and took his Chief of Staff, Communication’s Director , two security officials and an aide.

Illinois - Governor Rod Blagojevich flew to Philadelphia on a state plane; no other details were provided.

Indiana - Governor Mitch Daniels flew to see Obama on a state plane.

Iowa - Governor Chet Culver took a commercial flight.

Kansas - Governor Kathleen Sebelius took a state plane.

Maine - Governor John E. Baldacci took a commercial plane, flying US Airways.

Maryland - Governor Martin O’Malley took a state plane. (Annapolis, MD is a 126-mile trip taking approximately 2 hours, 27 minutes according to Mapquest.com)

Massachusetts - Governor Deval Patrick flew on a commercial plane.

Vermont - Governor Jim Douglas flew on a commercial plane to D.C. then traveled by train from D.C. to Philadelphia.

Virginia - Governor Tim Kaine flew to Philadelphia on a state plane.

Washington - Governor Christine Gregoire flew on a commercial plane.

West Virginia - Governor Joe Manchin III took four people, including security, via a state plane.

Wisconsin - Governor James Doyle took a commercial flight to Philadelphia.

I still say it was a stupid idea to take a state plane to Philly.

  35 Comments      


New poll numbers for US Senate, Ryan ‘pardon’***UPDATED X1***

Thursday, Dec 4, 2008 - Posted by Rich Miller

* Rasmussen Reports has a couple of new polls out today. The first has Attorney General Lisa Madigan leading all candidates for US Senate…

Among all Illinois residents, Madigan attracts 25% support, closely followed by [Congressman] Jackson with 23%. Duckworth is next with the backing of 21%. Schakowksy has seven percent (7%) support, with [Emil] Jones at three percent (3%). Twenty-one percent (21%) are undecided.

Among Democrats, however, Jackson leads…

The Chicago congressman who has been openly campaigning for the job has the support of 36% of Illinois Democrats, according to a new Rasmussen Reports telephone survey in the state taken Tuesday night.

Tammy Duckworth, director of Illinois’ Department of Veterans Affairs, is next with the backing of 29%, followed by state Attorney General Lisa Madigan with 17%.

Frankly, it’s interesting to see Duckworth doing so well in a statewide poll.

* More…

Madigan is the leader among men with 28% support, while Jackson is the favorite of a plurality of women (29%). Next for women is Madigan with 22% backing. Second for men is Duckworth (24%), who gets 19% support among women. Just 15% of men support Jackson.

Eighty-one percent (81%) of African-Americans favor Jackson, compared to 10% of whites. Madigan gets the highest level of white support (31%), followed by Duckworth with 22%. Statistically, Madigan has 0% support among blacks.

* And the guv still isn’t popular…

Just 15% now say Blagojevich is doing a good or excellent job as governor, while 61% rate his performance as poor.

* Meanwhile

Two-thirds of adults in Illinois (66%) are opposed to a presidential pardon for former Governor George Ryan, according to a new Rasmussen Reports telephone survey in the state.

Just 23% say Ryan, the Republican convicted on federal corruption charges in 2006, should be pardoned. Eleven percent (11%) are undecided. […]

Twenty-eight percent (28%) of men favor a pardon for Ryan, compared to 19% of women. Seventy percent (70%) of whites oppose a pardon, compared to 22% who support it. Blacks are closely divided, with those opposed to a pardon having just a four-point edge.

Members of Ryan’s own political party are more unforgiving than his former political opponents. Sixty-seven percent (67%) of Republicans oppose a pardon versus 59% of Democrats. Twenty-six percent (26%) of both parties favor pardoning Ryan. Among those unaffiliated with either major political party, just 15% support a pardon, while 77% oppose one.

Opposition to a pardon generally rises with income level.

Except Ryan isn’t asking for a full pardon, so the poll is flawed.

*** UPDATE 1 *** [Posted by Kevin Fanning] Joe Birkett enters the debate over Ryan’s possible commutation with a letter to President Bush:

While we empathize with Ryan’s family and their plight, I do not believe the hardships they face in his absence are reason enough to free inmate George Ryan. All inmates have families, not just those who led privileged lives prior to their incarceration. The suffering faced by former Governor Ryan’s family is no greater than that experienced by the families of thousands of other inmates across Illinois. That Senator Durbin would ask for special treatment for a man who for decades enjoyed special treatment at the expense of taxpayers is a slap in the face of justice.

[…]

Please help Illinois restore its once proud image of open, honest government by denying Senator Durbin’s request for leniency for a pubic official who has disgraced himself and the great state of Illinois.

* And John Patterson takes us on a stroll down memory lane like only he can…

Turns out, Gov. Rod Blagojevich had a nose for corruption back when he was in Congress.
The Chicago Democrat sat on a House committee looking into President Bill Clinton’s last-minute pardons, including the controversial pardon of fugitive financier Marc Rich.

Rich’s wife gave more than $1 million to the Democratic Party and nearly $500,000 to Clinton’s presidential library.
Blagojevich said at the time he thought the pardon was shady. He apparently could see a conflict of interest at that time when it came to massive donations and the distribution of government largesse.

“I think the pardon would not have happened if not for the campaign contributions,” Blagojevich was quoted as saying then.
Blagojevich also made clear then that he thought Rich’s pardon was an abuse of presidential power. He called it “indefensible and reprehensible.”

Funny how things change.

  24 Comments      


Protected: SUBSCRIBERS ONLY - Halvorson; Dunn; Brady; Chicago; Leaders; Hospitals; Madigan; Schools; Pace; CTA; Deportations (use all caps in password)

Thursday, Dec 4, 2008 - Posted by Rich Miller

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Question of the day - Golden Horseshoe Award, Round 2

Thursday, Dec 4, 2008 - Posted by Rich Miller

* Here’s round 2 of our Golden Horseshoes award. As I told you yesterday, voting is based on intesity of the opinion, not the sheer numbers of votes, so make sure to fully explain your positions, please. Also, no snark and no negativity. I don’t want to have to babysit this thread all day…

1) Best Illinois state legislator

2) Best Illinois congresscritter

3) Best IL statewide elected official

4) Best IL state agency director

I’ll announce yesterday’s winners later.

  43 Comments      


Lots of heat, but precious little light

Thursday, Dec 4, 2008 - Posted by Rich Miller

* Has everyone had their say about George Ryan yet? Probably not, which is why we have another thread on this topic today…

When Sen. Dick Durbin first floated the idea that he might ask President Bush to commute former Gov. George Ryan’s 6 1/2 year prison sentence, we thought that he simply was sending up a trial balloon.

Politicians sometimes do that. Put out an idea, see what the public reaction is, but leave yourself room to back out. Dutifully, we put forth an editorial explaining why a commutation was a bad idea as did many Illinois newspapers, columnists and pundits. Even our letter writers fired up their pens and expressed their displeasure.

To say that we were disappointed when Durbin decided to follow through and write Bush a letter, pleading for mercy for Ryan, would be an understatement. Durbin’s decision permanently stains his credibility.

* More

We cannot figure out why U.S. Sen. Dick Durbin, a Springfield Democrat, believes that commuting the sentence of our corrupt former governor, George Ryan, is an idea worthy of ignoring overwhelming public sentiment against it. […]

We consider Durbin an honorable public servant with a sterling record. His decision to write this letter is a profoundly disappointing deviation from it.

* More

His willful criminal behavior perpetuated Illinois’ worldwide infamy for corrupt elected officials, no doubt inhibiting many good women and men who might have considered public office.

* Obama defers to Bush…

President-elect Barack Obama’s office said Wednesday that he doesn’t feel it’s “appropriate” to get involved in the controversy about whether former Republican Illinois Gov. George Ryan should get executive clemency from President George W. Bush.

* Kass pounces

But the Combine wouldn’t like it. So he punted, probably sending a tingle up the leg of Tony Rezko, the convicted influence peddler and Obama’s personal real estate fairy, now facing years in federal prison.

You can almost hear Rezko shriek, from solitary confinement, in his orange jumpsuit:

“At this time! At this time? See? He didn’t rule it out! Maybe next time is my time! Next time! Oh thank you, Barack. Next time, yeah baby!”

* I told you about this yesterday…

Democratic Illinois Atty. Gen. Lisa Madigan said today that she does not agree with Democratic U.S. Sen. Dick Durbin’s decision to send a letter to President George W. Bush asking him to commute the federal corruption sentence of former Republican Gov. George Ryan.

* This piece is the only real news of the day, and I’m probably excerpting too much, but it’s worth it…

“When it comes to the law, there should not be two sets of rules - one for President Bush and Vice President Cheney and another for the rest of America,” Durbin said after Bush commuted the 30-month prison sentence of Cheney aide Scooter Libby. “Even Paris Hilton had to go to jail. No one in this administration should be above the law.”

Earlier in the summer of 2007 when talk of a Libby commutation was rampant, Durbin said, “It sends a terrible message at a time when we are demanding accountability from the generals at Walter Reed … to suggest anyone in our government is above the law.”

In commuting the sentence, Bush noted that Libby already paid a price by losing his respect and government positions. Likewise, Durbin said Monday Ryan will always have a “cloud” over him because of the conviction. […]

Durbin said Monday he always seeks to right injustice, though he said Ryan was not the victim of injustice. He portrayed his decision to help Ryan as one that sprouted routinely as any other problem brought by a constituent — but he couldn’t identify one previous time when he wrote a letter asking a president for commutation.

After the press conference, Durbin’s staff revealed there was one other time. Though it wasn’t made public at the time, it was likely when he urged for the commutation of another high profile politician, former U.S. Rep. Mel Reynolds. […]

Much like with Ryan, Durbin invoked the criminal politician’s wife as reason enough to open the prison doors.

“His wife has been in a homeless shelter,” Durbin said of Reynold’s wife at the time. “She’s been on Welfare. This has torn them apart.”

At the time, Durbin also praised Clinton’s pardoning of U.S. Rep. Dan Rostenkowski.

  23 Comments      


Health care, taxes and voting trends

Thursday, Dec 4, 2008 - Posted by Rich Miller

* A new study will be released tomorrow on older uninsured people

It finds that 13.3 percent of 50 to 64 year old Illinoisans — 287,084 adults — are uninsured. When adults in this age range who are officially poor are considered (an individual earning $10,400 or less a year, a couple earning $14,000 or less), 44 percent are found to lack health insurance (68,406 people).

And check this out…

The report breaks down data for Illinois by the legislative districts in the state. Senate district 13 has the highest number of uninsured 50 to 64 year olds, 8,706 residents, followed by district 17 with 8,482 and district 14 with 8,170.

Senate District 13 is President-elect Barack Obama’s former district.

* Meanwhile, another new study shows that last year only 0.9 percent of estates owed federal estate taxes in Illinois. That ain’t much. The reason the study was released…

In 2009 the per-spouse exemption is scheduled to increase to $3.5 million and in 2010 the estate tax is scheduled to disappear altogether for one year. Advocates for tax fairness have called on Congress to act before 2010 to prevent the estate tax from disappearing. If the estate tax is allowed to disappear, they fear, Congress will find it more difficult to resist the lobbyists who will insist that repeal of the estate tax be made permanent.

President-elect Barack Obama has proposed to make permanent the estate tax rules that will be in effect in 2009 under current law, including the $3.5 million per-spouse exemption. This would be an improvement in the sense that it would prevent the estate tax from disappearing. But it would be a regressive and costly giveaway to the very wealthiest families in America, because it would mean that the tax would affect even fewer estates than it does now. […]

…family farms and other closely held businesses get additional breaks from the estate tax (in addition to the exemptions all estates get) including a provision that allows the tax to be paid off over a period of 14 years. The estate tax has always been confined to serving its actual purpose — reducing extreme concentration of wealth in the hands of a few super-wealthy families, and asking these families to contribute to the society that made their wealth possible.

Here’s the Illinois breakdown. Click the pic for a larger image…

* And it doesn’t appear as though the “wealthy” are gonna squawk much about higher taxes, at least that’s not how they voted this year. From The Hill

Take a guess. Which demographic group doubled its share of the electorate from 2004 to 2008?

Here’s a hint. It’s the same segment that increased its support for the Democratic presidential candidate more than any other.

If you answered younger voters or Latinos, you would be wrong, though we will discuss both below.

Stumped?

Americans who make over $200,000 a year doubled their share of the electorate and, while John Kerry lost that group by 28 points, Barack Obama won them by six — a 34-point shift in the margin — the biggest movement recorded in the exit poll.

In fairness, while the wealthiest segment did double its share of the electorate, it increased from just 3 percent to 6 percent. However, those who make over $100,000 constituted 26 percent of the electorate in 2008, compared to 18 percent in 2004 — nearly a 50 percent increase. Obama tied with this quarter of the electorate; Kerry had lost it by 17 points.

* Related…

* Health insurance sticker shock hits consumers

* AARP’s stealth fees often sting seniors with costlier insurance

* Durbin Concerned Relief To Lenders Could Hurt Student Borrowers

  14 Comments      


Conservatives vow appeal to Supreme Court over “Choose Life” plates

Thursday, Dec 4, 2008 - Posted by Rich Miller

* The Thomas More Society isn’t giving up its quest to force Illinois to issue “Choose Life” license plates. A three-judge federal appeals panel recently shot down their case, but the group wants a rehearing and is threatening to take their argument all the way to the US Supreme Court if necessary.

A bit of history…

Secretary of State Jesse White claimed he did not have power to approve the plate himself, and when the federal trial court ruled that he did have such authority under the wording of the license plate statute, the General Assembly passed a new bill that required legislative approval for every new specialty plate.

So, now we have a law on the books that specifically requires General Assembly approval of all new specialty plates, but a conservative group wants to overturn state legislative rights? I’m not sure I get it…

“Our US Constitution, especially the First Amendment’s free speech clause, must be held to mean the same thing in all parts of our country, and it makes no sense that specialty plates that say ‘Choose Life’ whose proceeds support the cause of adoption are permitted in so many other states, yet outlawed here,” said Brejcha. “This is a classic case of what federal courts always have condemned as ‘viewpoint discrimination’ and it must be stopped.”

Brejcha warned that Supreme Court authority would be sought in the event that rehearing is not granted or enough votes are not won to overturn the panel’s decision.

* OK, but this is what the appellate court actually ruled

Specialty license plates implicate the speech rights of private speakers, not the government-speech doctrine. This triggers First Amendment “forum” analysis, and we conclude specialty plates are a nonpublic forum. Illinois may not discriminate on the basis of viewpoint, but it may control access to the forum based on the content of a proposed message—provided that any content-based restrictions are reasonable. The distinction between content and viewpoint discrimination makes a difference here.

It is undisputed that Illinois has excluded the entire subject of abortion from its specialty-plate program; it has authorized neither a pro-life plate nor a pro-choice plate. It has done so on the reasonable rationale that messages on specialty license plates give the appearance of having the government’s endorsement, and Illinois does not wish to be perceived as endorsing any position on the subject of abortion. The State’s rejection of a “Choose Life” license plate was thus content based but viewpoint neutral, and because it was also reasonable, there is no First Amendment violation. We reverse the judgment of the district court.

That seems reasonable to me.

* More on the General Assembly’s role…

The amendment to section 5/3-600(a) makes explicit what the Secretary had argued was implicit: that the authority to approve new specialty license plates resides with the General Assembly… (”The Secretary of State shall issue only special plates that have been authorized by the General Assembly.”). We ordinarily apply the law in effect on appeal, and where (as here) a party requests only prospective relief, there is no impediment to doing so retroactively. […]

Because the General Assembly’s rejection of the “Choose Life” specialty plate was viewpoint neutral and reasonable, there was no First Amendment violation here, and the district court improperly entered judgment for CLI. We REVERSE the judgment of the district court, VACATE its order directing the Secretary to issue the “Choose Life” plate, and REMAND with instructions to enter judgment for the Secretary.

Thoughts?

  20 Comments      


Ethics, smoking, casinos and the gas tax

Thursday, Dec 4, 2008 - Posted by Rich Miller

* The feds stick their noses into a state fight…

Federal highway officials told Gov. Rod Blagojevich’s administration Wednesday that Illinois’ new high-profile ethics law conflicts with bidding requirements that must be followed to get road money from Washington.

Backers of the state law, which takes effect Jan. 1, maintain the issue can be easily addressed with follow-up legislation but that it might mean lucrative road-construction contracts would be exempted.

The ethics reforms, which were supported by President-elect Barack Obama, aim to prevent a practice known as pay-to-play politics by banning major campaign contributors from landing lucrative state contracts.

Blagojevich, whose prolific fundraising from state contractors inspired the state ban, raised the federal concerns as he vetoed the legislation earlier this year and asked the General Assembly to accept his proposed changes, said Lucio Guerrero, the governor’s spokesman.

The governor’s concern was, indeed, in the veto message, way at the bottom. He vetoed this bill because he wanted to continue raising money from road contractors.

* The Federal Highway Administration explains

“These provisions are not consistent with the economical and efficient use of federal-aid funds,” wrote Stoner, who is based in Springfield. “They limit the pool of potential bidders and impose requirements unrelated to the qualifications of contractors to perform the work in a competent and responsible manner.”

The highway administration will not authorize federal funding for projects once the law and executive order take effect in January, Stoner wrote.

But…

“We think we can work out something. We just don’t know what form that will take,” [a Federal Highway Administration spokesman] said.

OK, so it may not be all that bad after all.

* The House sponsor of the ethics law adds…

“I see the (FHWA) letter as nothing more than a minor roadblock on the road to a more ethical Illinois,” said state Rep. John Fritchey, D-Chicago.

They should be able to clear this up with a simple trailer bill next month, as long as the governor doesn’t use one of his patented amendatory vetoes to “improve” the new legislation.

* Meanwhile, it wasn’t that long ago when gaming expansion was supposed to help pay for a new capital bill. Big trouble is brewing in that industry, however, and the casinos make a good case that the statewide smoking ban is to blame

The struggling economy has dealt a bad hand to the nation’s usually robust gambling business, a downturn made even worse in Illinois, where the state’s nearly year-old smoking ban has proved unhealthy to casinos. […]

The big gambling states— Nevada, New Jersey and Mississippi—are off 5 percent to 7 percent in casino revenue. But the picture is worst in Illinois, where casino revenue is down 20.3 percent this year. […]

…across the border in Indiana, revenues are down by only three-quarters of a percent, according to the American Gaming Association.

“They have basically the same economy, the same weather” as Illinois, Swoik said. “The only difference is the smoking ban.”

Rather than sit and play a machine or a table game for hours on end, smokers have to walk outside to take frequent breaks. So, while attendance is down only slightly, revenues per person are way off, and that is not happening in smoker-friendly Indiana.

* And there’s more trouble for the long-dormant 10th casino license…

Rosemont shouldn’t get the state’s last available casino license because the people running the suburb have “not earned the trust and confidence of the public,” the nation’s oldest citizens’ crime-fighting group will tell state gambling regulators today.

“While Rosemont’s $435 million bid for the 10th casino license is tempting, particularly in these tough times, in our view the inability of the Illinois Gaming Board to address the concerns about alleged mob ties is enough to disqualify their application,” Chicago Crime Commission president J.R. Davis says in a statement being delivered to the board.

Internal Gaming Board investigation documents I obtained years ago claimed that putting a casino in Des Plaines would be almost as “dangerous” as siting a casino in Rosemont, because the alleged outfit guys could just drive the mile or three down the road. But that never seems to get mentioned.

The Des Plaines developer’s latest bid is about a quarter of the Rosemont bid. That developer has campaign finance ties to Attorney General Lisa Madigan, who has also strongly opposed the Rosemont bid. That’s something else which rarely gets a mention.

* And there doesn’t seem to be any way to satisfy the goo-goos

Rosemont Mayor Bradley Stephens, who succeeded his father after his death, has said he will pass laws banning village employees from working at the casino, village contractors from working for the casino and trustees from gambling at the casino.

Davis called Rosemont’s assurances “superficial.”

* Kinda sorta speaking of the capital bill, Greg Hinz touts the possibility of a gas tax funding mechanism

Some insiders say Mr. Madigan wants to wrap funds for infrastructure into a wider income-tax hike that would serve other state needs. I consider that a bad idea for several reasons, not least among them that even now, he might not be able to pass one over a certain veto by Mr. Blagojevich.

On the other hand, Mr. Blagojevich hasn’t said much about a gas tax itself, which in some ways is less a tax than a road users fee.

Some surely would squawk. But at my corner gas station, the price of a gallon of regular is half what it was just a few months ago. Bumping the price up a nickel or a dime a gallon wouldn’t draw nearly the reaction it would have a few years ago.

Metropolis 2020, the big-business civic group, actually is campaigning for a 12.5-cent-a-gallon hike. When inflation is taken into account, the action only would put the state back where it was in 1990 and would be sufficient to fund a $14-billion statewide capital bill, according to the group.

I don’t know what the magic number is. But it sure does look like a lot of stars have aligned behind some gas-tax action now. If lawmakers don’t act soon, the next window of opportunity could be way far away.

That may well happen, but funding is only half the problem, and probably the easiest aspect to deal with. The real problem is guaranteeing that the capital plan money will be spent fairly and equitably. Nobody trusts the governor, plain and simple.

* Semi-related…

* Faulty license plates in the mix among Illinois drivers

* State spending $60,000 in search for defective license plates

* The bill that won’t die

  16 Comments      


Giannoulias says he’s open to Senate appointment

Thursday, Dec 4, 2008 - Posted by Rich Miller

* Let’s fisk this Trib story, shall we?

Illinois Treasurer Alexi Giannoulias told the Chicago Tribune editorial board that he has started to raise money for a possible run for governor in 2010, but that he’d know within the next “two to six months” if he will pursue the office.

Two months would be OK, but six? The primary is early February of 2010 - about 14 months from now. Petitions will hit the streets in, what, August? Six months is too long to wait.

Just two years into his first term as treasurer, Giannoulias said he’s raising money to explore a bid, “though not as aggressively as I probably should be.”

I dunno about that. He raised quite a bit of money during the first six months of the year, and he has a big “young professionals” event tonight.

Giannoulias also said that staff within Blagojevich’s office have “reached out” to him as a possible candidate to replace President-elect Barack Obama in the U.S. Senate, though a Blagojevich spokesman said the governor has not contacted Giannoulias directly.

Giannoulias said he’s not pushing for the seat, but if it’s offered he’d have to take a “very, very hard look,” at the opportunity to work in Washington D.C. alongside his close friend Obama.

Alexi’s name is rarely mentioned for this seat by the DC types, and I’m not sure why that is. Just yesterday, the Politico trumpeted its top five “frontrunners,” which included Lisa Madigan. The reason for appointing her?

Selecting the popular attorney general, a rising star in Illinois political circles, would take Blagojevich’s biggest rival out of the gubernatorial picture – and she’d also be in strong position to hold the seat in 2010.

Much the same could be said of Giannoulias.

* Anyway back to the Trib story

“If anybody tells you they know what [Blagojevich is] going to do, I just think that’s probably inaccurate,” Giannoulias said. “I think he changes his mind left and right, so I don’t think anybody has any idea what he’s going to do, who he’s going to pick.”

Amen to that, brother. Amen to that.

* Speaking of reading the governor’s mind, a friend of mine yesterday suggested that perhaps Blagojevich might try to appoint Secretary of State Jesse White. If and when White turns him down, Blagojevich could then say, “Hey, I tried to appoint a black person, but he said ‘No,’ so now I’m gonna appoint someone else.”

It’s as good a theory as any, I suppose, but I wouldn’t crawl too far into RRB’s head if I were you.

* You really should listen to US Rep. Jesse Jackson, Jr.’s pitch to the St. Louis Post-Dispatch editorial board. You can find it at this link. Scroll down a bit.

* Related…

* Zorn: There are better ways to replace a senator

* Birkett considers statewide run in 2010

* NEW: Politico: The Obama seat

* NEW: American Prospect: Emil Jones not so safe after all

  20 Comments      


Morning Shorts

Thursday, Dec 4, 2008 - Posted by Rich Miller

* Moving forward, one step at a time

Northern Illinois University’s Cole Hall stands locked and empty as an uncomfortable reminder of the Feb. 14 shooting that killed five students. State legislative gridlock over a capital construction bill means a plan to renovate the building, retire Room 101 and build a new auditorium elsewhere is going nowhere.

* Poe wants state panel to get final say on building closures

State Rep. Raymond Poe wants to give a legislative panel binding authority over building closures pushed by Gov. Rod Blagojevich such as the planned move of the Illinois Department of Transportation’s traffic safety division to southern Illinois.

Poe, a Springfield Republican, has introduced a bill for lawmakers to consider next spring that would give the Commission on Government Forecasting and Accountability the final say on whether a closing can proceed.

* IDOT pledges not to scrimp on salt in winter

* Chicago Residents Sue City Over Alleged Misuse of TIF Funds

A group of residents on Chicago’s North Side is suing the city and developers over a development project. The group alleges city officials are misusing tax increment financing or TIF funds.

Chicago has dozens of TIF districts where some property tax money goes into a special economic development fund. A new lawsuit alleges the city shouldn’t be spending that money for a mixed use development in the Uptown neighborhood. Tom Ramsdell is an attorney for a group called Fix Wilson Yard. He says the project doesn’t need TIF funds because the area isn’t blighted or a historic site.

* Meters won’t rest on Sunday

Chicago parking meter holidays, including free Sundays, would end next month as a result of Mayor Richard Daley’s deal to lease the city’s spots to a private company for 75 years for a one-time windfall of nearly $1.2 billion.

Free overnight parking at some meters also would disappear as hours of operation become standard.

In most of the Loop, drivers would have to feed the meters 24 hours every day, with rates halved between 9 p.m. and 8 a.m. In other business areas, most meters would be checked from 8 a.m. to 9 p.m. And most neighborhood meters would need to be fed from 9 a.m. to 6 p.m.

If the City Council approves the lease as expected Thursday, Chicago would have some of the highest big-city parking meter rates in the nation. Most neighborhood rates would quadruple to $1 an hour next year and reach $2 by 2013. Loop meters would rise 50 cents to $3.50 next month and top out at $6.50 in 2013.

* Vote now, debate later

When you form opinions for a living, the commodities that matter most are information and the time to assimilate it. That goes for editorial writers and, we hope, city aldermen, who are supposed to act on those opinions on behalf of their constituents.

So when the mayor drops a plan, for example, to lease the city’s parking meter system to a private group for 75 years, doubling and even quadrupling parking rates almost overnight, it seems reasonable to expect that the City Council would take a week or so to digest and evaluate the proposal.

That’s not how it works in Mayor Richard Daley’s Chicago, where a $1.2 billion deal announced on a Tuesday can find its way out of the Finance Committee on Wednesday and hit the floor for an up-or-down vote on Thursday.

* Why the rush on parking meters?

* CTA rolls out hybrid buses

* CTA using unsafe buses: union

The CTA has cut 29 percent of its mechanics in the last 13 years, and the union claims those cuts means unsafe buses are on the roads.

“There’s not enough people to do the job,” said Dan Hrycyk, financial secretary-treasurer for the Amalgamated Transit Union Local 241. Union representatives said buses are put into service with bad brakes and power-steering problems. “Buses that shouldn’t be going out … they will send out,” Hrycyk said.

* Amtrak drops opposition to EJ&E sale

Amtrak is dropping its opposition to the hotly debated sale of a suburban Chicago railway line.

The passenger service says it’s agreed with the company that’s vying to purchase the Elgin, Joliet & Eastern Railway line that loops around Chicago.

Amtrak had worried Canadian National would stop maintaining other Chicago-area tracks if it purchased the EJ&E. It had feared that would jeopardize Amtrak service south to Champaign, Carbondale and other cities.

CN has now agreed to keep maintaining those tracks.

* Amtrak drops opposition to EJ&E sale

* Study: CN deal would benefit economy

Canadian National Railway’s plan to purchase EJ&E Railroad and divert to it a substantial amount of freight traffic would translate into $267 million in the nation’s gross domestic product - of which Chicago region’s gross regional product would increase by $60 million - a study released Wednesday stated.

* Northwestern Memorial Hospital patient’s complaint leads Sen. Chuck Grassley to question heart device

* Cook County agrees to settle medical death suit for $9.8 million

* 13-year prison sentence for not testifying

An uncooperative witness in a 2007 murder case has been sentenced to 13 years in prison for refusing to testify during the trial.

Cook County Circuit Judge Dennis Dernbach on Wednesday sentenced 22-year-old Jeremy House to prison after he pleaded guilty to one count of direct criminal contempt.

House refused to testify in the case involving his half brother Steven Hebron, who was charged with the 2004 murder of Keith Tiggs. Hebron was found not guilty in September 2008.

Defense attorney David Bickel said House agreed to the 13-year sentence, which prosecutors say is the longest ever handed down for a contempt charge.

* Allow interim justices for Ill. Supreme Court

The Supreme Court should be forward-thinking and fix its quorum problem. If it doesn’t, justice won’t be overtly denied. Without a quorum, the Illinois Supreme Court can’t establish precedent, which is a loss. But the lower court decision, where justice in an individual case is usually resolved, remains untouched.

But when a relatively simple and tested solution is at hand, there’s no reason to settle.

* Window closes on company

Republic Windows & Doors, once an emblem of corporate expansion on Goose Island, said it must shut down Friday because of inability to get financing.

It said more than 200 jobs will be eliminated. Amy Zimmerman, vice president of sales and marketing at Republic, said the shutdown was forced by Bank of America Corp., which withdrew a credit line because of the manufacturer’s declining sales.

* Ace Hardware overhauls financial, retail staff

* A Big Time Hurt: Chicago’s Zenith Plant 10 Years After Closing

* Mortgage Crisis Opens Doors for Squatters

* Sears cutting 128 jobs with Great Indoors closing

Sears Holdings Corp. is planning to lay off 128 workers when it closes its Schaumburg-based Great Indoors store next year, according to a state report.

* AT&T to cut 12,000 jobs, or 4 percent of work force

* United mechanics to be laid off in January

Nearly 700 United Airlines mechanics, including about 150 in Chicago, are going to lose their jobs in early January.

The cutbacks are part of United’s plans to lay off 7,000 workers, or 13% of its work force, as it grounds 100 older Boeing 737s and reduces capacity, which will help the airline cut maintenance and fuel costs. The cuts, announced in July, were expected to take place by the end of 2009.

* New layoffs announced at Chicago Tribune

* Tribune cuts more newsroom jobs

  12 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Isabel’s afternoon roundup
* Your moment of zen
* Showcasing The Retailers Who Make Illinois Work
* A walk down memory lane
* Springfield hosts the return of women’s pro baseball
* Roundup: Secretary of State Alexi Giannoulias announces run for Chicago mayor
* Madigan flashbacks?
* Isabel’s morning briefing
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* SUBSCRIBERS ONLY - Supplement to today’s edition
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