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State’s Executive Inspector General refers 177 PPP fraud cases to law enforcement in ongoing probe

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* OEIG…

In 2022, the Office of Executive Inspector General for the Agencies of the Illinois Governor (OEIG) initiated a large-scale fraud investigation project, to examine whether State of Illinois employees improperly obtained federal Paycheck Protection Program (PPP) loans. PPP loans were issued to provide relief to small businesses affected by the COVID-19 pandemic, and were eligible for forgiveness if used for qualifying expenses.

Using publicly available information, the OEIG identified PPP loans obtained by individuals with personal identifiers matching those of employees under the OEIG’s jurisdiction. Because a preliminary review of the data revealed a large number of such loans, the OEIG initially focused the investigation on PPP loans of approximately $20,000 or more. In order to be eligible for a PPP loan of that size, a business typically would have needed to generate approximately $100,000 or more of annual net profit or gross income—earned outside of the employee’s full-time State work hours. Once the OEIG identified these PPP loans, the OEIG conducted further investigation to determine whether employees received those loans in a fraudulent manner.

To date, the OEIG has conducted the following investigative activity since beginning its PPP investigation project:

As of 9/12/23

    PPP investigations initiated: 438
    PPP investigations concluded: 204
    PPP referrals to any law enforcement agency 177

The State of Illinois Code of Personal Conduct requires State employees to conduct themselves “with integrity and in a manner that reflects favorably upon the State.” In addition, various agency policies prohibit employees from engaging in conduct that is unbecoming of a State employee. In 177 cases to date, the OEIG determined that there was reasonable cause to believe that a State employee violated the State of Illinois Code of Personal Conduct and/or agency policy by obtaining PPP loans based on falsified information. The OEIG has, so far, issued these founded reports to the employing State agencies, as indicated below:


To date, the improper loans identified in these founded reports total more than $4.5 million in public funds. The OEIG’s PPP investigation project remains ongoing. These numbers do not reflect a final total of OEIG founded reports or a final total for any particular agency.

State employees are expected to maintain the public’s trust and confidence, and misappropriating public funds is far from acting with integrity, or conducting oneself in a manner that reflects favorably upon the State. Acting in such a manner may result in the loss of employment. Employees also are reminded of their duty to cooperate with OEIG investigations, and that failure to cooperate can also be grounds for disciplinary action, including dismissal.

  23 Comments      


Isabel’s afternoon roundup

Tuesday, Sep 12, 2023 - Posted by Isabel Miller

* Here you go…

  1 Comment      


Illinois State Fair claims attendance record

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* Press release…

Today, Governor JB Pritzker announced record-setting attendance totals for the 2023 Illinois State Fair. The more than 700,000 attendees over the 11-day event make the 2023 fair the most highly attended fair since industry standards were enacted.

“Once again, the hard work of the Department of Agriculture and hundreds of dedicated fair staff have resulted in shattered attendance records, serving as a testament to the value of our increased Fairgrounds funding and the spirit of Illinois,” said Governor JB Pritzker. “Attractions like the new Multi-Purpose Arena and our highly attended concerts drew in hundreds of thousands of fairgoers from across the state and the country, bringing our community together in an unprecedented way.”

“While mother nature will always be a driving force in attendance for any outdoor event, the 2023 Fair benefited from a return of programming at the newly renovated Multi-Purpose Arena (MPA), a result of Governor Pritzker’s $58.1 million dollar capital investment to address years of deferred maintenance on our historic state fairgrounds,” said IDOA Director Jerry Costello II. “The 2023 Fair also greatly benefited from new promotions and big attractions aimed at bringing visitors to the fairgrounds mid-week to capitalize on discount admission days.”

The Illinois State Fair also unveiled new theme and discount days to enhance the fairgoer’s experience. On Thursday, August 10, the Fair started with a full day promoting County Fairs and Horse Racing Day. On Tuesday, August 15th, the Fair discounted admission as part of the new weekday theme – TWOsday. This new promotion resulted in more than 27,000 additional fairgoers. The week also allowed for more opportunities for families to attend before the start of school.

“Enhancing the fairgoer’s experience is a vital part of the planning process,” said State Fair Manager Rebecca Clark. “Providing additional entertainment on Opening Day, exposing more Illinoisans to our state’s number one industry, and offering more ways for families to affordably enjoy the Illinois State Fair are priorities that proved to be a driving factor in the growth we experienced at the 2023 Illinois State Fair.”

The high attendance numbers reflect the second highest Grandstand tickets sold in the last five years; an 86% increase from 2021 ticket sales for events at the MPA which sat dark in 2022 due to construction; and record-breaking carnival revenue ($1.58 million) led by robust sales of Mega & Jumbo passes. Thanks to dry weather on the final weekend, race fans were able to enjoy two popular auto races in the Grandstand. […]

2023 State Fair Impact by the Numbers:

    • $89,800 in scholarships awarded to youth exhibitors
    • 600 new first-time exhibitors
    • 60 charities volunteered 20,000 service hours

Governor Pritzker has obligated over $80 million in infrastructure investments on the fairgrounds. Construction resumes this fall on Phase 2 of the Coliseum, which focuses on an electrical overhaul, underground plumbing, new seating, new restrooms, an elevator, and adding an HVAC system that will allow for year-round use.

Other projects slated to take place include:

    • $9.5 million: Road construction along 8th Street between the IDOA building and the IDNR building and along the backstretch on the northwest corner of the fairgrounds; provides funding to make structural improvements to the south pedestrian tunnel leading into the fairgrounds from Gate 6/infield parking;
    • $4.57 million: Roof replacements on the Junior Livestock Building, Sheep Barn, Hobbies Arts and Crafts Building, and at least three barns along the backstretch;
    • $11.9 million: HVAC replacements on the Orr Building, Illinois Building, Junior Livestock Building, Artisans Building, Hobbies Arts and Crafts Building, and Grandstand;
    • $2.99 million: Tuckpoint work in the Grandstand, Artisans, Hobbies Arts and Crafts, Emmerson and Block (IDOA headquarters) buildings.

  6 Comments      


Protected: SUBSCRIBERS ONLY - This just in… (Updated x2)

Tuesday, Sep 12, 2023 - Posted by Rich Miller

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Giannoulias testifies to US Senate committee about book bans, denies political motivation, sends follow-up fundraising email

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* Media advisory yesterday…

Illinois Secretary of State Alexi Giannoulias will testify [Tuesday morning] before the Senate Judiciary Committee about his landmark, first-in-the-nation legislation designed to prevent book bans and protect First Amendment Rights. Giannoulias initiated Bill 2789, setting a nationwide precedent in the fight to combat censorship of books and resources. The bill was signed into law on June 12, 2023, as Public Act 103-100.

Public Act 103-100 allows Giannoulias’ office to provide grant funding to libraries that adhere to the American Library Association’s Library Bill of Rights, which states that reading materials should not be removed or restricted because of partisan or personal disapproval. Libraries can also issue a statement prohibiting the practice of banning books or resources. Libraries that do not adhere to the law will be ineligible for state grants from Giannoulias’ office.

Giannoulias’ law banning book bans in Illinois illuminates a path for other states to follow in an effort to turn the tide on the scourge of censorship sweeping the nation. His office has launched a website – banbookbans.com – that enables visitors to share their stories and to learn how to protect their state’s Right to Read.

* From today’s hearing

Sen. John Kennedy: So tell me what you want, who gets to decide? All I’ve heard is ‘the librarians’ and parents have nothing to do with it. And if that’s your response, what planet did you just parachute in from? Or what country, more appropriately? This is not China.

Secretary of State Alexi Giannoulias: Senator, with all due respect, parents absolutely have a say. My parents were immigrants, came to this country. We never checked out books without our parents seeing what books we were reading. They encouraged us to…

Sen. Kennedy: Mr. Secretary, I understand this is good for your politics back home.

Secretary Giannoulias: It’s got nothing to do with my politics.

Sen. Kennedy: It has everything to do with your politics.

Secretary Giannoulias: I’m here to…

Sen. Kennedy: But you came here with a problem and I’m trying to understand the solution and you don’t have one, other than [cross-talk] other than to tell us that ‘We don’t agree with you. You’re on the wrong, we’ll be on the wrong side of history’

Secretary Giannoulias: We solved the problem in Illinois. We fixed it.

* Giannoulias campaign email pitch at 11:35 this morning…

I just finished testifying in front of the U.S. Senate to discuss book banning. Frankly, I can’t believe this is even a conversation we have to have.

Being chief librarian was one of the duties that drew me to the Secretary of State’s office. I believe we have an opportunity to help children get ahead, to make unprecedented gains in adult literacy and aid everyone’s search for knowledge.

Books open doors and enrich minds. The last thing we should do is ban books, to censor the very freedom expression on which our country was founded, or demonize the LGBTQ community to run up the political scoreboard.

I’m willing to fight for that point, and I hope that you will too. Will you rush a donation right now to take a stand against extreme book bans?

Good government can definitely be good politics. No shame in that. Embrace it.

* Somewhat off-topic because this isn’t about a library, but it is in Illinois

Students in Yorkville High School’s English II Rhetorical Analysis class will not be using the book “Just Mercy” as part of their coursework after all.

The Yorkville school board has reversed its decision to allow teachers to use the book as an anchor text for the class.

Earlier this year, the parent of a student in the English II course complained about use of “Just Mercy” by Bryan Stevenson, triggering the district’s uniform grievance procedure. […]

According a statement released by [school board President Darren Crawford] as well as the meeting minutes, [board members] Knoll and Houston deemed the book “too controversial.”

The course is designed to engage students’ critical thinking skills.

About the book

Just Mercy tells the story of Bryan Stevenson, a young lawyer who founded the Equal Justice Initiative, a legal practice dedicated to defending those most desperate and in need: the poor, the wrongly condemned, and women and children trapped in the farthest reaches of our criminal justice system.

It was also made into a movie.

  36 Comments      


A solution in search of a crisis

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* I hate to complain too much because the Better Government Association’s David Greising has finally come around to reality on a constitutional amendment for pension “reform”

The Civic Committee and others — including me — have argued in the past for a constitutional amendment that might enable some renegotiation of retirement benefits. The state has other obligations to residents that sometimes might trump commitments it made to its retired workers, the thinking goes.

But Pritzker opposes an amendment, and he says he couldn’t pass one even if he tried. I have come to believe pension reform can be accomplished without a constitutional amendment. And one of the most interesting features of the Civic Committee plan is that this stalwart of the Chicago business community has also stopped calling for a pension amendment.

The Civic Committee’s plan relies on expanding the sales tax to services, which has gone nowhere in the past, but is still somewhat more realistic than changing the state constitution to reduce future pension benefits (which it may not be allowed to do anyway). They’ve also proposed jacking up the income tax by half a point on individuals and 0.7 percent on corporations, after having staunchly opposed a graduated income tax. Convincing Illinoisans to pay more money in taxes to fund public employee pension systems would be a very heavy lift.

* The real problem is this continued belief that pensions are still a main driver of state spending

Illinois’ $50.4 billion budget this year is up 26% from Pritzker’s first budget, passed in 2019.

One of the biggest factors behind that increase: pensions, of course.

Pension payments in Gov. Pritzker’s first budget (FY20) totaled $8.113 billion. The FY24 appropriations plan budgets $10.135 billion, a 25 percent increase - slightly below the rest of the state’s budget growth. It’s not some outsized burden.

More importantly, pension payments represented 20.2 percent of base state expenditures in the FY20 budget as passed, and 20.1 percent of base state expenditures in the current budget. High? Yes. Manageable? Yes.

Greising also mentions pension bonds. Pension obligation and acceleration bond payments have fallen from $1.6 billion in Fiscal Year 2017 to $1.024 billion in FY24. Adjusted for inflation, the $1.6 billion FY17 payment would be $1.998 billion today, so that particular spending item has dropped almost by half in real dollars.

  33 Comments      


Undergraduate enrollment strong across Illinois

Tuesday, Sep 12, 2023 - Posted by Isabel Miller

* WAND

As the fall semester rolls on, universities across central Illinois have released their ten-day figures. These numbers are the traditional benchmark for reporting enrollment at colleges and universities.

Enrollment of first-year freshman at University of Illinois System universities hit a record number of 13,231 students. Total undergraduate enrollment also reached a record high with 60,013 undergrads. […]

Eastern Illinois University reported strong numbers in targeted areas. International enrollment reached record highs with both the number of students (880) and the number of countries represented (60). […]

Illinois State University welcomed its largest incoming class in 36 years with 4,147 freshmen. The student body is becoming more diverse as approximately 41% of this year’s freshman class come from traditionally underrepresented groups.

* ABC 7 Chicago

The top brass at U of I is flying high after a new admission trend. Numbers we’ve just obtained show more and more students from Illinois are going to U of I. Foreign students remain attracted to the Urbana-Champaign campus, but those numbers are shifting some.

“We have record enrollment for the incoming freshman class, extremely strong representation from Illinois at 74% of the class,” said Provost John Coleman.

Freshman enrollment for 2023 includes 6,100 incoming students from Illinois who just arrived for the fall term. […]

Almost 1,100 students from other states are new freshman on campus, and about 1,100 from other countries.

China remains the overwhelming foreign feeder nation. Almost 57% of overseas U of I students are from China. But it is a portion of the student population that has fallen some in recent years, ever since 2017 when a Chinese scholar was kidnapped from a U of I bus stop and then murdered. The story received global attention. Chinese student enrollment dipped.

* WGLT

With over 4,000 freshman students on-campus this fall, Illinois State University is marking an enrollment high not reached since 1986.

ISU officials release enrollment totals once the data is more finalized following days of classes. Data released on Thursday show a total of 4,147 freshmen, marking a 4% increase from the prior academic year. Total enrollment — at 20,989 — is up by 1.5%, according to ISU. […]

Other enrollment figures include:

    1,814 transfer students (up around 2%)
    2,539 graduate students
    741 international students

* We’ve already talked about SIUC

For the first time since 2014, enrollment at Southern Illinois University Carbondale has grown. Overall enrollment for fall 2023 is 11,359 — 252 students, or 2.3%, more than last year — the highest overall boost in the number of students in 21 years and highest percentage increase in over 30 years. […]

In addition, 1,621 new freshmen are starting their college careers at SIU, which is 103, or 6.8%, more than last year. This is the first time in at least 50 years the university has increased its freshman class for four consecutive years. […]

The university also saw a 10.8% increase in new transfer students to 1,188. Part of that success can be attributed to Saluki Step Ahead agreements signed with more than 40 community colleges in Illinois, Missouri and Texas since 2021. Saluki Step Ahead provides a seamless path for students who earn associate degrees in participating community colleges to obtain their SIU bachelor’s degrees online in select programs. About 130 students, 121% more than last year, are earning their degrees through Saluki Step Ahead.

* Muddy River News

Western Illinois University’s fall 2023 total new student (freshman, transfer and graduate for both Macomb and Quad Cities) enrollment is 2,145, according to 10th-day data released by WIU’s Institutional Research and Planning. Western’s total fall 2023 enrollment is 7,073.

Western’s 2023 Fall class contains 1,226 full-time freshmen, up by 152 students.

  16 Comments      


Despite August growth pause, state revenues still up for the fiscal year

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* Didn’t get to this last week, but here’s COGFA

August base revenues deposited into the State’s General Funds slowed from July’s strong start, with a slight decline of $34 million. However, when combined with July’s base growth of $396 million, revenues are up a combined $362 million to start the fiscal year, perhaps indicating a timing element to the first two month’s collection activity. The value of the August decline falls to -$214 million when factoring in last August’s $180 million in ARPA reimbursements. August had the same number of receipting days as last year.

Overall, the value of the increases/decreases in August were relatively modest. Personal Income Tax receipts experienced the largest decrease with a decline of -$38 million or -$36 million when accounting for distributions to the Refund Fund and the Local Government Distributive Fund (LGDF). Corporate Income Taxes also slowed from its strong July numbers with a decline of -$23 million, or -$17 million on a net basis. Other State tax sources with declines include Other Sources [-$26 million]; Public Utility Taxes [-$14 million]; and the Corporate Franchise Tax [-$5 million].

The August declines were mostly offset by gains in several other State revenue sources. The largest year-over-year improvement came from Interest on State Funds & Investments, which grew $23 million thanks to comparatively higher interest rates (see page 4). Insurance Taxes bounced back from its low July numbers with a gain of $20 million. In addition, Inheritance Tax receipts were $18 million higher. Sales Tax receipts saw modest improvement with growth of $15 million. But this growth falls to only +$3 million when accounting for the non-General Funds distributions to the Road Fund and certain other transportation funds.

* Context from the Civic Federation

Total General Funds resources are expected to decrease from FY2023 year-end estimates by approximately $2.5 billion, or 4.7%, from $53.1 billion to $50.6 billion. The largest source of this decrease is due to the end of federal COVID-19 recovery funding directed to the General Funds. During FY2023 the General Funds received transfers of $1.06 billion in American Rescue Plan Act (ARPA) funds and $1.36 billion in Coronavirus Urgent Remediation Emergency (CURE) funding, both of which were allocated by the federal government as part of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The FY2024 budget does not include any appropriations from these federal funding sources within the General Funds. Additionally, the amount of refund fund transfers—accounted for in the “Other Transfers” line—decreased significantly, by nearly $1.2 billion in FY2024, from an unusually high amount in the FY2023 budget due to above-average income tax receipts in that year.

Net Corporate Income Tax is also expected to decline by 12.2%, or $712 million. The decline is due to a reallocation in fund distributions that will occur in FY2024 as part of the Department of Revenue’s annual statutory reconciliation of business-related tax payments, which will result in a decline in corporate income taxes and an increase in individual income taxes. The decrease is offset by an estimated increase in Net Individual Income Tax receipts of nearly $2 billion. Sales Tax, Public Utility Tax and other revenues are expected to decline by 0.3%, 4% and 9.1%, respectively.

General Funds receipts from other State-source revenues are projected to decrease by $176 million, or 0.4%. Lottery, gaming and adult-use cannabis revenues transferred into the General Funds are all estimated to increase over FY2023. Other Transfers are expected to decrease in FY2024 by $1.2 billion, or 51.2%, again based on a larger-than-usual transfer into the General Fund from the Income Tax Refund Fund in FY2023. Federal sources, aside from ARPA and CURE funding, are expected to increase by $80 million, or 2.1%, to $3.9 billion.

  1 Comment      


Something I did not know

Tuesday, Sep 12, 2023 - Posted by Rich Miller

* I didn’t know that the Belleville Shoe Manufacturing Company has been around for so long. Press release…

Today, Congresswoman Nikki Budzinski (IL-13) announced that the Belleville Shoe Manufacturing Company has been awarded a $7,816,274 contract from the Defense Logistics Agency for temperate weather combat boots. The boots will be supplied to the U.S. Army for the next two years.

“Since World War I, the Belleville Shoe Manufacturing Company has played a critical role in equipping the men and women serving our nation in the armed forces,” said Congresswoman Budzinski. “Today, I’m thrilled to announce that this local institution has been awarded a $7.8 million contract to continue providing combat boots to the U.S. Army. I’ve worked on a bipartisan basis to support domestic military equipment manufacturing and I look forward to continuing to support the important work happening in Belleville.”

“Belleville Shoe Manufacturing Co. welcomes the opportunity to once again serve the men and women of the U.S. Army in providing the essential Army Temperate Weather Combat Boot,” said Mark Ferguson, President of the Belleville Shoe Manufacturing Company.

The Belleville Shoe Manufacturing Company is the oldest and leading manufacturer of boots for the U.S. Military – beginning with their first combat boot supply order during WWI. Belleville Boot supplies the largest selection of certified boots to the U.S. Military and develops an assortment of styles to meet specialized needs.

In July, Congresswoman Budzinski introduced a bipartisan amendment to the National Defense Authorization Act with Congressman Mike Bost that would require the Department of Defense to examine current military footwear regulations and provide recommendations on improvements to support the footwear needs of our troops. The amendment aims to support domestic military-grade boot manufacturing, like that done by Belleville Shoe Manufacturing Company, and was included in the House-passed legislation.

More history on the company is here.

  12 Comments      


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

Tuesday, Sep 12, 2023 - Posted by Rich Miller

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Open thread

Tuesday, Sep 12, 2023 - Posted by Isabel Miller

* What’s going on in your part of Illinois?…

  10 Comments      


Isabel’s morning briefing

Tuesday, Sep 12, 2023 - Posted by Isabel Miller

* Here you go…

  5 Comments      


Live coverage

Tuesday, Sep 12, 2023 - Posted by Isabel Miller

* ScribbleLive is still down. Twitter has stopped allowing people to embed list feeds on websites. So, click here or here to follow breaking news.

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