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*** UPDATED w/ Videos *** Brady, guns, superintendents, scholarships and a roundup

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* We’ll have more on this later, including some video, but the Senate Appropriations II Committee held a hearing this morning on a ten percent across-the-board budget cut. The idea was to illustrate what would happen if the likely Republican gubernatorial nominee Bill Brady is elected.

University presidents were up first

Stan Ikenberry, head of the U of I, said the cuts proposed would mean a $74 million cut in state support to that university’s campuses. For perspective, he said that is the amount of support combined for Illinois’ Springfield campus, law school, med school campuses, dental school and college of education.

Glenn Poshard said such a cut would immediately trigger a 15 percent layoff across the SIU campuses, something he said is “not practical, prudent nor possible.”

The underlying but publicly unmentioned goal of today’s discussion in a Senate budget committee — discussion that will carry over to tomorrow — is to focus political ire on state Sen. Bill Brady, a Bloomington Republican and the likely GOP nominee for governor. On the campaign trail, he’s denounced tax increases and called for across the board 10 percent cuts.

The Democrats who control the General Assembly are now giving members and the public a taste of what Brady’s budget would do. So far, the state’s two largest public universities are describing layoffs, program cuts and double-digit tuition increases, which will further drive up the costs of a degree.

They’ll continue the hearing tomorrow. Check back for some videos in a few.

*** UPDATE *** Senate Approp II Chairman John Sullivan was asked repeatedly today what his committee was supposed to accomplish with this hearing and whether it was a shot at Sen. Bill Brady. He denied everything. Sullivan did, however, say that Brady was free to testify if he wanted. Have a look


U of I interim Stan Ikenberry discussed his testimony to the committee


GOP Sen. Chris Lauzen responded


[ *** End of Update *** ]

* I showed this video to subscribers this morning, but it’s worth showing everyone. Watch Rep. Julie Hamos and Rep. John Bradley go after each other over a provision in Bradley’s concealed carry bill that would not allow guns in schools


* This is certainly egregrious, but it’s far from surprising

The state’s school superintendents are cutting costs in a gruesome budget cycle, but they can take some consolation: Their own paychecks are growing comfortably.

The average salary and benefits of Illinois’ top school executives grew 4.1 percent last year, about 10 times faster than raises enjoyed by other wage earners in the Chicago metro area, according to state data. A record number of superintendents — 150 — earned $200,000 or more.

The earnings report comes as school districts from Amboy to Zion have threatened to trim teaching positions, close swimming pools or cancel lacrosse and band programs — all in an effort to balance budgets.

The new salary information, provided by the Illinois State Board of Education, shows that the average compensation of full-time superintendents grew from $145,000 during the 2007-08 school year to $151,000 in 2008-09.

We see the same thing in the private sector all the time. Corporate boards award lavish salaries to CEOs and high-level execs. Look at the Tribune Co.’s recent request to a bankruptcy court to award $45 million in management bonuses. Meanwhile, the Trib lays off reporters.

The difference, of course, is that this is taxpayer money we’re talking about here.

If the locals won’t control themselves, should the state step in? Worth pondering.

Then again, the GA has its own issues…

* Legislators shouldn’t give scholarships

* Eliminate legislative scholarships

* Local officials: Modify, don’t toss, scholarships

* Roundup…

* Capitol Fax Video: Sen. Sandoval talks about working on red-light cam reform

* Capitol Fax Video: Sen. Duffy discusses red-light cameras

* No statewide repeal of red-light cameras: State Sen. Dan Duffy, a Lake Barrington Republican, admitted he’ll have to do “a lot of selling” to get others on board with his proposal to purge cameras from the state except in construction zones and railroad crossings, but he’s confident he’ll be able to work with colleagues to refine camera enforcement.

* Lawmakers rail on state’s juvenile prison system

* Proposed law: Helmets on kids

* Legislators again grappling with malpractice awards

* Election commission bill’s status in limbo

* Traffic quotas ban bill stalls in House

* State Capitol Q&A: Legislators again grappling with malpractice awards

* Interlocking puzzlement

* House committee approves break for hair braiders: The measure would require hair braiders to take 300 hours of training, including 70 classroom hours and 230 hours as an intern. But that would be a break from the current rules.

* Local governments push for pension changes

* Medical society planning rally to protest state payment delays

  72 Comments      


*** UPDATED x1 *** Giannoulias: Quite likely that family bank will not be around

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* Alexi Giannoulias told the Sun-Times today that his family’s bank may very well go under

“The bank has always been well-capitalized and has always been prepared for a 10- to 15-percent, even 20-percent, decline in real estate values, which, that would be almost unprecedented, But I don’t think anyone, very few people could have foreseen a 40 percent drop in real estate values and that’s why we’re in the position we’re in,” Giannoulias said.

When pushed, Giannoulias conceded he had little hope for his family’s bank to survive, “And that breaks my heart. … It was my father’s whole life.”

Will the bank still be there in November for the general election?

“It’s quite likely that the bank will not be around,” Giannoulias said. “There’s not a lot of capital out there for somebody to find $60, $70 million [as federal and state regulators want the Giannoulias family to reinvest in the bank in the next two months]. I hope I’m wrong.”

He also owned up to his share of the problems…

“I take my share of responsibility for possibly concentrating too much in commercial real estate,” Giannoulias told the Sun-Times’ editorial board. “Obviously, it’s easy to look back four or five years and say that, but I think in my role, that’s part of what I should be doing. This is not something I’m shying away from. This is not something I’m hiding from. I’m here to answer as many questions as I possibly can.”

This does not sound like a guy who would be pushed out of the race if his family’s bank does, indeed, go under. Just the opposite.

*** UPDATE *** We have two press releases. The first is from the Illinois Republican Party…

Appearing before the Chicago Sun-Times editorial board this morning, Illinois Senate candidate Alexi Giannoulias denied he helped a former campaign staffer become Illinois’ top banking regulator get his job – a role that could ultimately determine whether regulators close the Giannoulias family’s Broadway Bank.

“Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which would have jurisdiction over Broadway Bank,” the Sun-Times reported.

On January 26, 2010, Broadway Bank entered a consent decree with the Illinois Department of Financial and Professional Regulation (IDFPR) and the FDIC. When banks are closed, the IDFPR makes the final decision to close and then names the FDIC as the receiver of the bank. IDFPR is headed by Brent Adams, whose official state biography shows he served as Giannoulias’ Policy Director in 2006. Additionally, Illinois State Board of Elections records show Citizens for Giannoulias paid Mr. Adams $500 in salary in July 2006.

“We already knew about loans to organized crime and Blagojevich insider Tony Rezko,” Illinois Republican Party Chairman Pat Brady said. “Now we see Broadway Bank’s fate in the hands of a Giannoulias insider. We deserve a full accounting of how the State of Illinois will deal with this obvious conflict of interest and why this conflict was never declared.”

The second is from Kirk for Senate…

***FACT CHECK***

Giannoulias Misleads Chicago Sun-Times on Risky Investments, Loans to Organized Crime

False Giannoulias Claim: “I would vehemently disagree that these are reckless or risky loans,” he said. The only reason Broadway Bank appears ready to collapse is because the bottom fell out of the real estate market, he said. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)

Get The Facts:

On January 26, 2010, the Illinois Department of Financial and Professional Regulation and the FDIC ordered Broadway Bank to “cease and desist from engaging in unsafe and unsound banking practices.” (www.idfpr.com)

From 2002 to 2006, Alexi Giannoulias increased Construction & Development loans from $80 million to $356 million – expanding such risky investments from 25 percent to 46 percent of the bank’s total loan portfolio. (Chicago Reader, Alexi’s Albatross, 12/3/09)

From 2002 to 2006, Alexi Giannoulias increased the bank’s brokered deposits (also known as “hot money”) fourfold to $640 million. The typical bank at this point was growing brokered deposits at about 9 percent a year. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)

When Alexi Giannoulias left the bank, the ratio of brokered deposits to total assets at Broadway was 68 percent, according to FDIC records. The average for all federally insured banks nationwide was 4.5 percent. (Chicago Reader, Alexi’s Albatross, 12/3/09)

False Giannoulias Claim: “The bank has always been well-capitalized.” (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)

Get the Facts:

From 2006 through 2009, the Giannoulias family took over $100 million in dividend payments out of the bank – money that could have been used to shore up capital reserves. (Consolidated Reports of Condition and Income for A Bank with Domestic Offices Only)

In 2006, the bank set aside $2.2 million as a provision against loan losses, a safety measure that federal regulators require banks to take. Despite its large increase in risky loans, Broadway only doubled its bad-loan reserve in the time Mr. Giannoulias was there. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)

False Giannoulias Claim: But, Giannoulias said, he did his due diligence on those loans and never knowingly gave loans to people linked to organized crime. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)

Get the Facts:

In 2005, Alexi Giannoulias authorized $15.4 million in loans to a convicted mob bookmaker and pimp named Michael “Jaws” Giorango. (“Boulis kin, 2 felons own Martha’s site,” Miami Herald, June 18, 2006; “Loans cast pall over candidate; Treasurer nominee oversees mortgages to crime figures,” Chicago Tribune, April 9, 2006)

Alexi told the Chicago Tribune he once discussed Giorango’s criminal past with him. (David Jackson, “Giannoulias Speaks Up On Loans,” Chicago Tribune, 4/27/06)

Alexi Giannoulias said he traveled to Miami to inspect property the bank had financed for Giorango and met with him there. Giannoulias declined to provide details of that meeting. (“Giannoulias ‘Embarrassed’ By Remarks About Convicted Felon,” Chicago Tribune, 4/27/06)

In 2005, Alexi Giannoulias authorized a $3.6 million loan for Demitri Stavropoulos of Oak Brook, who was convicted in 2004 for his role as ringleader of a multistate sports bookmaking operation that grossed about $1 million a year. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)

Stavropoulos was in federal prison in June 2005 when the $3.6 million Myrtle Beach loan was made. The inmate’s wife signed the loan papers as his ‘attorney in fact,’ land records show. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)

  98 Comments      


Question of the day

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* The Tribune editorialized today in favor of Sen. James Meeks’ school voucher bill

Meeks’ bill would focus on 49 elementary schools and 15 high schools, the worst-performing schools in Chicago. As many as 35,000 kids would be eligible. The vast majority of those kids are poor.

They would qualify for vouchers to pay tuition at any school that admits them.

The Meeks plan wouldn’t cost the state an extra dime. It would match the money the state already provides for the children.

And it would actually leave the Chicago Public Schools with more money to spend on kids who stay.

You can read the Meeks bill by clicking here.

* The Question: Is this a good idea or not? Explain. And, please, focus on the Meeks bill at hand.

  75 Comments      


Campaign 2010 roundup

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* Oops

A suburban congressional candidate who’s stressed the need for fiscal restraint lost a condominium to foreclosure last October, the same month he announced his bid for office, court records show.

Joe Walsh, the Winnetka Republican running against Democratic incumbent Melissa Bean in the 8th House District, used to own a condominium on the 1400 block of Sherman Avenue near downtown Evanston. The two-bedroom unit went into foreclosure in 2008 and Walsh was evicted last fall, Cook County circuit court records and real-estate reports indicate. […]

Walsh now opposes abortion and a weapons ban, but he didn’t when he first ran for Congress in 1996. Earlier this year, he told the Daily Herald his views on abortion changed after a spiritual journey, and he shifted on gun control after being “educated” on the issue.

He also said he had a more liberal stance on gay rights in 1996 “because I was running in Evanston, Ill.,” a reference to the largely left-leaning city.

* I told subscribers about this last week

Cook County President Todd Stroger has quit his post as Democratic committeeman in Chicago’s 8th Ward, and he all but announced his retirement from politics after today’s County Board meeting.

“I’m going to continue to be involved in public service,” Stroger said, “but I won’t be running for office any time soon.”

Quitting the committeeman position was more than symbolic, as Stroger’s father, John Stroger, built the 8th Ward Democratic organization into his political power base as he became the county’s first black president.

Ald. Michelle Harris is taking over the committeeman’s job. More on Stroger

A Sneed spotter claims since his election loss, outgoing Cook County Board President Todd Stroger has become a fixture at the East Bank Club. “I guess he doesn’t need to be bothered by his current job,” said the Sneed source.

* It will be interesting to see how the editorial boards handle these interviews today

Illinois Democratic Senate nominee Alexi Giannoulias will face the editorial boards of the Chicago Sun-Times and the Chicago Tribune on Wednesday to answer questions about his connections to his family-owned troubled Broadway Bank.

Giannoulias, the state treasurer, has to factor into his campaign the potential for the bank to fail in the coming weeks as his GOP rival Rep. Mark Steven Kirk (R-Ill.), makes the Giannoulias tenure at the bank as a loan officer a central part of his campaign. On Tuesday, the Kirk campaign sent out a memo titled, “Mounting questions surrounding Alexi Giannoulias’ risky lending practices take center stage in Illinois Senate race.”

* So far, the only applicants for lt. governor are people who haven’t done much in politics. Here’s a coverage roundup…

* Dozens seek to replace Scott Lee Cohen as lieutenant governor nominee

* Democrats taking applications for Ill. lt. gov.

* Potential Quinn running mates are non-politicians so far

* A Priest, a Teacher and an Intern Walk Into an Office

* Former CBOT chair Arbor among Democratic running-mate hopefuls

* Ex-CBOT chief Pat Arbor wants to be lite guv

* Selle: Trolling for a state job

* Sen. Kirk Dillard talks about the ongoing vote-counting process. Not much new here, but take a look if you get the chance


* I don’t write about it much, but some of you know that my wife is an Assyrian from Iraq. Mark Brown has an interesting read today on how the Christian exiles/immigrants are not pleased with the voting venue for Iraq elections this year

One of the little tricks of the old Chicago Democratic Machine was to screw around with the polling places in areas where the opposition was expected to run strongest by moving them to locations that would tend to discourage voters from turning out.

Strange, but that’s exactly what some members of Chicago’s Iraqi community say has been done to them in advance of their national parliamentary elections, the balloting for which opens here Friday.

The one and only Chicago area polling place for Iraqis living in the U.S. is located inside a martial arts studio in the back corner of an out-of-the-way Glenview industrial park with no access via public transportation and limited parking.

And when I wrote “exiles” I meant exactly that. My wife’s family home was bombed three times and a Muslim gang demanded that they hand over my brother-in-law so he could be martyred for their cause. They finally left for Syria, obtained UN refugee status and are now in Finland, of all places.

  13 Comments      


Unclear on the concept

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* Sometimes, I just wanna tear my hair out

Want more evidence that video poker has links to the mob?

Look no further than Tuesday’s arrest of Casey Szaflarski.

As part of a federal investigation into the Chicago Outfit, Szaflarski has been charged with running an illegal gambling business, not paying $255,000 in business income taxes and filing no return for 2007.

Szaflarski owns Amusements Inc. of Berwyn, which distributes video gambling machines. The government accuses it of involvement in illegal gambling. Moreover, Szaflarski shared gambling proceeds with Michael Sarno, the reputed head of the Cicero mob, according to an affidavit filed in the case.

In July, Gov. Quinn and the General Assembly legalized video gambling machines to help pay for a $31 billion statewide construction program. The worry is that the expansion of video gambling will funnel new revenues to the mob.

Yes. We all know that video poker machines have been linked to the Outfit. That’s why legalizing video poker is important.

Right now, if you own a tavern and allow gambling on your machines, you split the cash proceeds with the distributor. Some of these distributors are allegedly unsavory types, and the long-held suspicion is that tavern owners don’t report all their cash profits to the taxing authorities.

With legalized video gaming, the Outfit is cut out. The Gaming Board is super-sensitive to this problem and is developing a process to make sure the Outfit stays out. The board has also decreed that any tavern owner busted for illegally paying out winnings will automatically be denied a video terminal license.

Currently, video poker machines are licensed as “for amusement only.” Under the new law, those machines would be subject to seizure by the police. No more long, expensive sting operations would be required to bust tavern owners for paying out.

So, if you want organized crime out of video gambling, do what this country did after inadvertently allowing the Mob to control alcohol via Prohibition. Legalize it.

The same goes for illegal drugs. You want the gangs busted up? Kill off their top money source. Walgreen’s and CVS won’t be shooting bullets at each other to vie for street corner space. I guess I should do a Google search first, but I really doubt that Budweiser and the Miller Brewing Co. resorted to armed violence after Prohibition ended.

* Related…

* Illinois Capital Construction Plan Gets Slow Start

* James R. Thompson Center Facelift 2 Years Away - Chicago Landmark Will be Under Scaffolding Until Money Comes Through For Repairs

  63 Comments      


Protected: SUBSCRIBERS ONLY: Behind yesterday’s concealed carry votes

Wednesday, Mar 3, 2010 - Posted by Rich Miller

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Edgar: Media totally blew it last year

Wednesday, Mar 3, 2010 - Posted by Rich Miller

* Former Gov. Jim Edgar echoes what many of us said over and over last spring: Not nearly enough emphasis was being placed on the budget mess because of the intense fight over ethics

“To me the big issue was not ethics, it was finance,” Edgar said.

I asked if he meant campaign finance, and he said no, government finance. He said lawmakers, pressured by the media, missed a unique opportunity to actually do something about the state’s crippled economy and sinking budget.

“Last year I think the media blew it,” Edgar said. “Last year was a huge disappointment. I thought something positive might happen, not ethics, just making government function again. And it didn’t happen. Last year nothing happened. It was just a huge disappointment.”

It’s not right to completely blame the media for the failures. The leaders could’ve found a way to end the ethics debate far earlier, instead of allowing it to shove aside the budget until after the end of May - when a three-fifths majority was required to pass anything.

Still, I can’t argue too much with him. Edgar’s conclusion was that last spring was “one of the worst sessions, if not the worst session I’ve ever seen.” True dat.

* Speaking of the budget, let’s revisit the Chicago Tribune editorial board’s budget cutting proposals. Greg Hinz obtained some revealing quotes this week

Civic Committee President R. Eden Martin told me that it is true, as the editorial posited, that trimming state employee benefits via later retirement and other shifts would save roughly $20 billion in coming decades, allowing the state to trim its annual pension payment by $2.1 billion.

But, Mr. Martin added, Illinois’ unfunded pension liability was most recently estimated at around $80 billion, so cutting $20 billion still would leave a $60-billion hole. The cut suggested by the Trib “doesn’t save that kind of money,” he said.

In other words, Illinois still would have to do something else to close the hole — like raise taxes.

There’s more to it than that, as subscribers know, but I can’t fault the Trib for not tackling the entire unfunded issue all at once. This is a crisis that simply cannot be solved today.

More

At the Civic Federation, President Laurence Msall agreed that cutting most state operating expenditures 7.2% to 2007 levels would indeed save $2.5 billion a year. But extending those cuts to grade and high schools — and applying them to state aid to municipalities, as the Trib proposed — would be extremely painful and politically difficult, he added, placing pressure on local governments to raise their property taxes.

Those proposed cuts to local governments were described this way in the Tribune’s editorial

This subsidy gives municipalities a free ride: A dollar from Springfield is a dollar they don’t have to conserve, or fight citizens to raise in local taxes.

That’s some pretty harsh language, particularly in an era when revenues are drying up and more people are in need of more services. Here’s a roundup of related municipal revenue stories for today alone…

* Gurnee eyes hike in phone tax; Increase to 6 percent would give $650,000 boost

* [Gurnee] Mayor blames previous fiscal decisions for tight village budget

* [Waukegan] Mayor warns of more layoffs

* Carpentersville trustees forgo public works addition

* Mayor: Belvidere ‘struggling’ with budget for FY2011

* State owes Oneida $21,000

* Union members challenge layoffs at CWLP

* Carbondale looks to cut energy costs

* County officials taking 35 percent pay cuts on state-mandated duties

* Illinois libraries waiting for state to pay up

Putting pressure on municipalities to trim costs is a laudable goal, but the Tribune seems to be on board with the idea that government ought to be practically strangled to death.

Thankfully, though, the Tribune isn’t making their editorial a must-do for legislators, which would mean precisely the sort of thundering editorials that Edgar complained about above…

The Tribune’s John McCormick, who wrote the editorial, noted that the piece was titled “A no-tax-hike option,” and stated in its second paragraph that, “We haven’t voted yes or no on this.” In other words, he said, it was just a discussion starter.

It has certainly started a discussion. I’ll give them that.

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

Wednesday, Mar 3, 2010 - Posted by Rich Miller

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Question of the day

Tuesday, Mar 2, 2010 - Posted by Rich Miller

* I’ve been telling subscribers about this for at least a couple of weeks now. Speaker Madigan and Senate President Cullerton are both hoping to run a six-month budget this May

Just days after the Civic Federation’s Lawrence Msall cast an ominous warning on WTTW’s Chicago Tonight that absent new tax revenue, “we run the risk of the state’s entire financial system collapsing,”a team of journalists convened on the set Friday night to talk about the political calculations for actually passing an inevitable income tax increase.

At one point, host Joel Weisman asked his panelists: “Where does Mike Madigan stand on it?”

“Where he’s always been,” veteran political reporter Mike Flannery responded. “He wants to protect his Democratic caucus. Madigan has set the earliest ever adjournment deadline, May 7 … [T]he thinking in Springfield is [pass] a six month budget, get the heck out of town.”

In theory, the “six month budget” would allow the Democrats to get through Election Day without putting any votes on an income tax hike.

The “theory” would be to pass another budget like the one they did last year, giving the governor tremendous authority to decide which budgetary line items to save and which to cut. If Quinn is reelected, then they’d take up a tax vote (if needed) in the January lame duck session. If Bill Brady is elected, they’ll just dump the problem in his hands.

* The Question: Your thoughts on this idea?

…Adding… Yes, the story is wrong about the “earliest ever” adjournment date. They adjourned April 15th one year. Stick to the question, please.

  101 Comments      


A bill we probably don’t need and some we might

Tuesday, Mar 2, 2010 - Posted by Rich Miller

* Yikes

Picture this scene: Six or seven police officers struggle for a half hour on the floor with an uncooperative man while a phlebotomist repeatedly jabs the man’s hand with a needle, trying to draw blood.

It’s not a pretty picture. But it’s one you could see in Illinois if a bill that last week passed out of an Illinois House committee becomes law.

As the law stands now, police — even with a subpoena — are not allowed to use force to draw a suspect’s blood. House Bill 4969 would change that, allowing “all necessary and reasonable force” to obtain a blood sample.

The bill’s sponsor, state Rep. Keith Farnham (D-Elgin), says he introduced the bill at the request of the Kane County state’s attorney’s office, which has staged occasional “no refusal” weekends since 2008 to crack down on DUI suspects who refuse Breathalyzer tests. […]

The scene described above — cops fighting a suspect for a blood sample — did in fact take place in Arizona, where the man was left with a hand so swollen he couldn’t use his thumb. Former Cook County Judge Daniel M. Locallo, who sits on the Illinois State Bar Association’s Criminal Law Section, calls it an example of “frontier justice.”

Farnham barely won his race last year, so apparently he thinks he has to look super-tough on crime and cooperate fully with his local prosecutor to win this time around. But this seems to be a bit much, no?

* Here’s an interesting populist notion

Legislation pending in the Illinois House would prohibit businesses from hiring based on a person’s credit history to spare people who lose their jobs and their homes from being “double victimized” when they can’t find new work, its top supporter said Monday.

“Can you imagine you’re someone who, at no fault of your own, you lose everything — you’re laid off, you can’t afford your mortgage so you lose your home — and then when you’re trying to get back on your feet, you got companies running credit checks on you while you’re looking for jobs?” said Rep. Jack Franks (D-Woodstock), chief House sponsor.

I have a pretty good life, so I really can’t complain about much. However, I’d like to see some legislation to stop mobile phone companies from running those over-long explanatory messages (often with several-second pauses) during voice mail messages. I’m pretty sure everybody knows how to leave a message at the beep. I’m also pretty sure that those several seconds add up to huge profits when taken in the aggregate.

* It might also be nice if not-for-profits that don’t tell the truth about their lobbying expenses be somehow penalized, but I won’t hold my breath, especially considering the subject of this particular story

Chicago Children’s Museum officials said they plan to amend the museum’s federal tax filings to reveal its City Council lobbyists and how much they were paid in recent years after the Tribune asked why it had failed to do so.

According to council members, several professionals were hired to lobby aldermen — who in June 2008 sided with Mayor Richard Daley and approved a controversial plan to build a museum in Grant Park.

But those lobbyists weren’t disclosed, as required, on the museum’s Internal Revenue Service reports for a two-year period ending June 30, 2008, according to recent not-for-profit filings at the Illinois attorney general’s office.

“It was an administrative error, and we are currently amending those tax returns,” said museum spokesman Natalie Kreiger.

That’s a pretty big error.

* Related…

* Meeks’ School Voucher Plan Moves Ahead: His voucher proposal would allow parents of students in the academically lowest 10 percent of Chicago Public Schools to have the option of sending their children to a private school, if space is available.

* Possible red-light camera ban faces Senate hurdle

* Illinois Primary Might be Moved Again

* Legislators take aim at new FOIA

* Recorder has risen quickly: Relationship with Hoffman has helped county official

* Ties to Jay Hoffman help Madison County recorder — just 31 — rise quickly in political circles

  26 Comments      


*** UPDATED x1 - Lt. guv applicants listed *** Kirk on offense; LG updates

Tuesday, Mar 2, 2010 - Posted by Rich Miller

* Alexi Giannoulias’ campaign is obviously planning to paint Mark Kirk as a definite vote to perpetuate the DC gridlock on President Obama’s proposals. Kirk is a smart guy, however, and is already trying to show that he won’t be an automatic “No” on everything

U.S. Rep. Mark Kirk of Highland Park, the Republican candidate for U.S. Senate in Illinois, opposes a Kentucky Republican senator’s stand against extension of unemployment benefits.

Sen. Jim Bunning, R-Ky., is blocking action in the Senate to extend the benefits. The blocked legislation also includes some highway money and Bunning’s action has temporarily shut down more than 40 projects nationwide, including a $1 million road project in Alexander County in far southern Illinois.

“I voted for the unemployment extension last week,” Kirk told The State Journal-Register during a visit to Springfield Monday. “In Washington, 41 senators can stop something, but one senator can only delay it. My read on this is the vote is pretty much 99 to one.”

Kirk’s campaign recently admitted that their own polling showed pretty high approval ratings for Obama in Illinois. So, he has to make sure he is more identified with, say, the new Republican Massachusetts Senator, who broke the impasse on a recent jobs bill, than people like Bunning.

* Kirk also scored some big PR points on the Giannoulias family bank yesterday…

Republican U.S. Senate candidate Mark Kirk said Monday the fate of his Democratic rival’s family bank should be an issue of concern for voters.

“I think there’s no question that Alexi Giannoulias bears direct personal responsibility for reckless loans that could bankrupt the Broadway Bank,” Kirk said of the Democratic U.S. Senate nominee. “I also worry that the possible collapse of the Broadway Bank will leave taxpayers left paying for Alexi’s reckless loans.”

Kirk’s comments came after the Tribune reported Sunday that the bank’s chief executive, Demetris Giannoulias, said the family must raise at least $85 million by the end of April to prevent a government seizure of the financial institution. Demetris Giannoulias is the older brother of Alexi Giannoulias.

More

“Alexi Giannoulias engaged in the same kind of reckless lending that brought our U.S. economy to its knees,” Kirk said.

The Giannoulias campaign response sounded more than a little canned

“While Alexi hasn’t been at the bank for four years, Mark Kirk has been in Washington for a decade supporting the failed and reckless Bush policies that got us into this economic mess,” Strand said.

It’s not a bad point, mind you, but it just oozes “DC talking point” blandness.

* Meanwhile, failed Democratic comptroller candidate Raja Krishnamoorthi is stepping up his efforts to be appointed the Democratic lt. governor candidate

In addition, the Indo-American Democratic Organization is trying to collect 10,000 signatures on Krishnamoorthi’s behalf to present to House Speaker Mike Madigan.

I just can’t see how they could skip over an also-ran in the lt. governor’s race and give the slot to an also-ran in the comptroller’s race. But both parties are actively courting Indo-Americans, who haven’t quite yet established themselves here. It’s a delicate balancing act for sure. And that may be why more are saying they should just leave the slot open, including, apparently, Senate President John Cullerton

CBS 2 Political Editor Mike Flannery has learned top Dems are seriously considering leaving the slot open while simultaneously asking Illinois voters to abolish the office entirely. […]

Wiping out the office of lieutenant governor would save millions of tax dollars. And Illinois Senate President John Cullerton, D-Chicago, said Monday that having nobody as lieutenant governor would be preferable to the rookie Republican candidate.

He’s Jason Plummer, a 27-year-old whose main experience involves working for his father’s downstate lumber company. Democrats saw an opening last week, after Plummer stumbled repeatedly during an interview on WTTW’s “Chicago Tonight.”

Cullerton on Monday expressed interest in floating a constitutional referendum to abolish the office of lieutenant governor, following the embarrassment his party endured over Cohen. Voters could be asked to approve the measure on the November ballot, if super-majorities in the House and Senate can approve the proposal this spring.

*** UPDATE *** The Democratic Party of Illinois has published the list online of everyone who has applied to be considered for the open lt. governor slot, as well as their applications and their resumes. Some even supply references. Click here to see the list. Some of the bigger names aren’t on the list, like Rep. Art Turner, Raja, etc.

…Adding… The links on that page appear to be working now.

* Related…

* NBC5 Broadway Bank coverage

* ABC7 Broadway Bank coverage

  70 Comments      


“Cut somebody else”

Tuesday, Mar 2, 2010 - Posted by Rich Miller

* Dennis Byrne is only about half right today

Nice try, governor, but when you asked the people of Illinois how to balance the state budget, you got thousands of responses, but not one that I could see who said cut my services or raise my taxes.

Actually, a quick scan of just the front page of the governor’s budget website comment section revealed numerous pleas to raise taxes and fees on everyone, not just the rich. Here are a few…

* How about raising the driver’s license fee…

* Please pass HB 174 to raise revenue now.

* Increase income taxes.

* Raising user fees (driver’s license, car registration, etc)

As I’ve been monitoring the comment section for the past few days, however, I have noticed that almost nobody has demanded that their own pet programs be cut. The teachers are flooding the site demanding no cuts to schools - or even saying they want more money for schools - and pretty much everyone else is focusing on cuts to “the other”…

* KEEP THE TEACHERS AND THEIR UNION OFF THIS WEBSITE!! THIS IS FOR HARD WORKING TAXPAYERS, NOT FOR A BUNCH OF WHINY OVERPAID FUTURE MILLIONAIRES!

* Have all elected and appointed state officials take off one day per week with no pay just as companies are asking of their employees.

Byrne’s conclusion…

The truth is that much of what the state spends is for things that someone in Illinois wants. If we’re to come anywhere close to balancing the budget, it will require more than a debate over bigger cuts versus higher taxes. It will require a fundamental downsizing of our expectations of what we, ourselves, can milk from the government.

That’s a good point. And as I’ve said many times before, when newspapers and their employees start editorializing in favor of getting rid of their industry’s bigtime tax breaks, I’ll be far more inclined to take their other positions more seriously. Just about everybody has their fingers in the state government pie. And that’s a big reason why it’s so hard to do anything about the size of government.

…Adding… Several people are leaving budget-cutting proposals in comments. As with the state site, these are all aimed at other folks. We’ve had numerous posts here about ways to cut the budget. Your little cut ideas don’t interest me unless you propose cutting something that you depend on. I may start deleting these comments if they continue. Don’t waste our time.

* Related…

* Our Opinion: Sorting through budget thoughts

* Local lawmakers warn of deep school cuts

* Teachers pension fund earns 15% return

* Keep up push to end costly ‘free’ rides for seniors

  58 Comments      


Morning Shorts

Tuesday, Mar 2, 2010 - Posted by Rich Miller

* Daley defends Chicago handgun ban on eve of Supreme Court hearing

* SCOTUS to ponder Chicago gun ban

* Daley Defends Handgun Ban

* Mayor Daley ‘optimistic’ U.S. Supreme Court will uphold city’s handgun ban

* The Evolution of Chicago’s Handgun Ban

* Chicago gun control case could change constitutional map

* Plaintiffs put sympathetic face on Chicago gun case

* Chicago man explains challenge of city’s handgun ban

* January spending increases but income growth slows

* Unemployed fear losing benefits as Republican senator filibusters to block extension

* Thousands to Lose Unemployment Benefits

* Project Shield a big drain on Cook County taxpayers

Cook County’s post-Sept. 11 security initiative, dubbed Project Shield, which has come under fire for being sharply over budget and years behind schedule, is proving to be an even bigger drain on taxpayers.

* City steps in to block Daley testimony at developer’s bribery trial

The city asks a judge to quash a defense subpoena seeking to call Chicago Mayor Richard Daley to testify at the bribery trial of developer Calvin Boender. Boender is set to go on trial next week on charges he bribed then-Ald. Isaac “Ike” Carothers to obtain support for a large project.

* Ex-congressman’s daughter: Polish-Americans are under-counted in Census

“Why are there no Poles on major boards and commissions?” Pucinski asked. “Why, on the short form for the Census are we not allowed to identify ethnic identity?”

* School Districts Waive Pulaski Day Off

* Naperville City Council to mull 3 measures to fill budget gap

Garbage tax, gas tax hike and fund transfers to be considered

* New commission will help guide La Grange Park’s sustainability efforts

* Deer hits car, ‘crash tax’ hits driver

On her way to work in Glendale Heights on Dec. 8, a deer jumped onto Locklin’s car, crushing the windshield. Locklin slammed on the brakes and caught her breath.[…]

The Westchester resident suffered only minor injuries, a few cuts and scrapes from the damaged windshield.

What hurt far more was a $350 bill from the Glenside Fire Protection District, a fee critics refer to as a “crash tax.”

* Carbondale city council to discuss 2010 budget

* ‘Swipe fees’ a hidden tax on the poor, most of all

“These fees are a hidden tax on all of us, and they hit the poor especially hard,” said the study’s author, Robert Shapiro, who was undersecretary of commerce for economic affairs in the Clinton administration.

To pay for the rewards programs, which are heavily skewed toward the higher-income brackets, the card companies have boosted the processing fees retailers pay. “The result is massive transfer of wealth from poor to rich” in the checkout line, said Shapiro.

* Downstate judge resigns after alleged threats: [Judge] Brunton was suspended for allegedly making threats, though the nature of them never has been spelled out. No charges have been filed.

* A loud, bizarre silence in Island Lake

Two weeks ago, Village President Debbie Herrmann surprised the community by announcing she placed Police Chief Anthony Sciarrone on administrative leave.

* UI Springfield chancellor to retire in October

* Owner of many Peoria radio stations declares bankruptcy

* New broadband network would reach deep into Central Illinois

  5 Comments      


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