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Reort: Probe into fraudulent PPP loans has ensared numerous state workers, including those at facilities for the disabled

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Molly Parker

Dozens of state employees across multiple agencies are under investigation by a state watchdog for claims they fraudulently obtained payments from a federal pandemic-era loan program, Capitol News Illinois has learned.

Neil Olson, general counsel at the Illinois Office of the Executive Inspector General, confirmed that “OEIG has been investigating allegations of Paycheck Protection Program fraud by state employees under our jurisdiction.” The review, he said, is “systematic,” involving multiple state agencies and the other governing bodies under OEIG’s jurisdiction, which include state universities, boards and commissions, and regional transit boards. […]

Fraud in the PPP program has been widespread across the United States. In a June report, the inspector general for the SBA estimated that the agency paid out more than $200 billion in “potentially fraudulent” aid during the pandemic – about 17 percent of the $1.2 trillion that was dispersed through the PPP and other similar programs. […]

The scandal has ensnared numerous employees who work at the Illinois Department of Human Services, including at state-run facilities for people with disabilities that are facing staffing shortages. In late June, a spokesperson for the agency confirmed that at least 30 IDHS employees were in various stages of the disciplinary process for inappropriately taking PPP loans. At the time, eight IDHS employees had been fired, six had resigned and 16 were pending disciplinary action. […]

The fraud was not limited to IDHS. Collectively, state employees may have obtained millions of dollars in fraudulent payments. A spokesperson for Gov. JB Pritzker declined to provide specifics about how many employees have faced disciplinary action for PPP fraud, saying that the governor’s office does not comment on ongoing investigations. While some employees have already received notices of their termination, they have a right to appeal that decision.

Well, that’s one way to get rid of the dead weight.

  8 Comments      


The lost art of outreach (continued)

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Tribune

More than 47,000 Illinois residents lost Medicaid health insurance coverage this month — joining millions of people across the country losing Medicaid as states ask recipients to prove they’re still eligible for the program, for the first time since the COVID-19 pandemic started. […]

The federal government has estimated that about 700,000 people in Illinois may lose Medicaid coverage by the time the process is complete. The Illinois Department of Healthcare and Family Services is more optimistic, estimating that about 384,000 Illinois residents may lose coverage. […]

Of the Illinois residents who lost coverage this month, 13,375 individuals were no longer eligible. Another 34,250 individuals lost Medicaid because they didn’t respond to requests to prove their eligibility or because they didn’t provide the state with all the required information, Munks said.

Another 139,538 people were found to still qualify for Medicaid, and will continue to have Medicaid coverage. The state is still determining whether an additional 13,830 people should stay on Medicaid.

If the state’s goal is to prevent half of the federal government’s projected losses by reaching out to current Medicaid recipients and making sure they fill out the paperwork and file it on time, then the state is now way behind. Better outreach is obviously needed.

  10 Comments      


Palate cleanser

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Former White Sox organist Nancy Faust is a gem…


  11 Comments      


Afternoon roundup

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Press release…

Today, Governor JB Pritzker signed HB2396, requiring each school board to establish a kindergarten program with full day attendance, beginning with the 2027-2028 school year. Under this bill, every district must also establish a half-day program that is developmentally appropriate and provides opportunities for play-based learning. […]

According to the National Education Association, children in full-day classes show greater reading and mathematics achievements than those in half day classes. Research also indicates that children’s early reading skills are enhanced with the additional instruction time provided by full day kindergarten programs. Alongside academic gains, full day kindergarten offers several social and emotional benefits to students.

Districts that currently do not offer a full-day program can apply for a waiver to extend the implementation date up to two years past the 2027-2028 school years if they meet certain criteria.

* Press release…

Governor JB Pritzker, TCCI, Richland Community College, and the Illinois Department of Commerce and Economic Opportunity (DCEO) today joined local leaders and partners to break ground on TCCI’s new electric vehicle (EV) Innovation Hub in Decatur. A global leader in electric compressors for commercial, heavy-duty, and automotive specialty markets, TCCI’s EV Innovation Hub is a critical part of Illinois’ growing EV ecosystem. […]

Bolstered by the State of Illinois’ Reimagining Energy and Vehicles in Illinois (REV Illinois) incentive package which supports the manufacturing facility expansion, $21.3 million in capital grants were also appropriated to the City of Decatur and Richland Community College to build the first-of-its kind Climatic Center for Innovation and Research, as well as the EV + Energy Workforce Training Academy.

“This three-tiered project represents a historic investment in American manufacturing and a major step toward establishing a full EV supply chain in the US, from supplies to talent,” said TCCI President Richard Demirjian. “It’s fitting that Decatur, on the same site where we have produced compressors since 1984, will now play a critical role in driving the global transportation sector toward an exciting future of electrification.”

Headquartered in Decatur, TCCI’s state-of-the-art electric compressor line will produce the largest range of capacity and voltage of any compressor manufacturer in the EV automotive market. By manufacturing electric compressors locally, TCCI not only supports the growth of electrification but will also create high-wage, skilled jobs that fuel economic development in the local community.

Producing essential EV components at TCCI’s Decatur location will help solidify the state’s position as a manufacturing leader and expand the EV Innovation Cluster in central Illinois. Production is slated to begin by the third quarter of 2024, making it one of the first such production facilities in the U.S.

* Press release…

Governor JB Pritzker today signed House Bill 0780 to establish and administer a Grandparents Raising Grandchildren Pilot Program in Will County beginning January 1, 2024, through January 1, 2027. The Illinois Department on Aging worked in close coordination with Leader Natalie Manley to establish this legislation that amends the Illinois Act on Aging. It will require an intake coordinator for Will County to be responsible for connecting grandparents raising grandchildren to relevant resources and services provided by state agencies.

* The CTU-aligned left-wing has been claiming for years that Chicago and its school system are fiscally “broke on purpose” and that there is more than enough money to go around. Mayor Johnson is obviously still a believer, but reality is setting in

Brandon Johnson strode into a conference room this month at Malcolm X College, where scores of mostly West Siders had gathered to hear how Chicago’s newly minted mayor will align his unapologetic progressivism with the dollars-and-cents realities of the city’s $16.4 billion budget.

The crowd of at least 100 at the community budget roundtable listened raptly as the mayor dared them to imagine: “How about a budget that creates more than enough for revenue?” It was a nod to his stirring orations during the campaign where he often promised his dinner table will be “big enough” for all Chicagoans.

But during another roundtable this past week, Johnson’s budget director, Annette Guzman, spoke in more cautious terms.

“Unfortunately, it’s sort of like a zero-sum game,” Guzman said. “OK, there’s only so much resources that we have. So we have to make sure that we’re allocating it amongst many, many competing interests.”

* Center Square headline

Pritzker: No plan to deploy National Guard in Chicago

Lede

As Gov. J.B. Pritzker weighs whether to use the National Guard in Chicago to help officers deal with crime, some city officials are speaking out against the possibility.

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Pritzker said he doesn’t plan to use the National Guard to combat crime.

“National Guardsman and women are trained to kill people on a battle field. That is what they are trained to do. They are not police. They don’t know how to do crowd control,” Pritzker said.

What the heck was that all about?

* Isabel’s roundup…

  10 Comments      


Funny how this works

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Crain’s

In a metaphor of sorts for the state of the party — and, for that matter, the nation — Illinois Republicans are all over the map in their reaction to the indictment of former President Donald Trump for allegedly conspiring to nullify the results of the 2020 presidential election and claim a second term in the White House.

Leading conservatives in the Illinois GOP, mostly downstate, are blasting the indictment on four felony counts as a rigged political action aimed at hurting Trump’s chances in 2024. More moderate party figures, mostly in the Chicago area, are ripping Trump and his allies for abetting an effort to overturn American democracy. Solid swaths of other Republicans are keeping mum, issuing no tweets or press statements.

All the “moderate party figures” quoted in the piece are out of power, like former US Reps. Joe Walsh and Adam Kinzinger.

* As for those still in positions of power

Among those saying nothing at all so far are the state Republican Party, Illinois GOP Chairman Don Tracy and Cook County Republican Party Chair Sean Morrison.

* The Illinois Republican Party isn’t completely silent about corruption, though. The party issued a press release today about a Chicago alderperson who resigned four years ago

Welcome to another edition of Continuing Corruption, where we dig deep into the actions of politicians embroiled in controversies that erode public confidence. Today, we shift our focus to Illinois Democrat Willie Cochran, a former alderman whose troubling actions have left a stain on the state’s political landscape.

Before his corruption came to light, Willie Cochran was a prominent figure in Chicago politics and served as the alderman of the 20th Ward in Chicago, Illinois. The 20th Ward, in particular, has had a dismal track record, with Cochran becoming the third alderman in the last four to be indicted while in office.

So, what exactly did he do?

Cochran was charged in December 2016 with one count of felony wire fraud. The case revealed his involvement in stealing a staggering $14,000 from a charity he had created to support vulnerable children and seniors in his South Side ward. Instead of fulfilling the noble purpose of the charity, Cochran shamelessly misused the funds for personal gain, indulging in lavish dinners, splurging on Mercedes-Benz accessories, funding his daughter’s college education, and feeding a dangerous gambling habit.

Let me repeat that: he stole from a charity for children and elderly to fund a gambling habit.

Cochran resigned from his position as alderman of the 20th Ward in Chicago on March 1, 2019. His resignation came after he was re-elected to his position in February 2019 while facing the pending charges of wire fraud.

In June 2019, Cochran was sentenced to one year in prison on one count of felony wire fraud.

The Illinois Democratic Party’s persistent series of corruption scandals has cast a dark shadow on the state’s political landscape. Time and again, prominent figures within the party have faced allegations of unethical conduct, abuse of power, and misuse of public funds. From former aldermen and city officials to high-ranking state politicians, the list of individuals embroiled in controversies seems unending. These scandals not only erode public trust in the party but also undermine faith in the state’s governance. It’s a troubling pattern that demands a thorough examination of the party’s internal mechanisms and a renewed commitment to transparency, accountability, and ethical leadership.

But of course, we’ll see you back next week when we discuss yet another member of the Illinois Democrat Party who abused their power as an elected official at the expense of the public they were supposed to serve.

…Adding… Sean Morrison issued a statement on crime today…

At some point Cook County’s elected officials should acknowledge that the enacted prosecutorial, bail and judicial sentencing “reform” policies are failing our community. More precisely, they are failing the innocent hard-working families in Cook County and beyond.

* Meanwhile, Darren Bailey said this in March of last year

“Today’s indictment of the former Speaker and leader of the @IllinoisDems is no surprise. As Governor, I’ll root out corruption and ensure those who engage in illegal activity are prosecuted and pay a steep price for violating public trust. It’s time to reform Springfield. #twill,” Bailey posted on Twitter

Contrast that with yesterday…


* Bailey’s primary opponent Mike Bost issued a press release cheering on the feds last year, then tweeted this yesterday…


OK, I’ve broken the seal. Take some deep breaths before commenting, please.

  45 Comments      


State’s net General Funds growth exceeded year-over-year inflation in July by $300 million (nearly 10 percent)

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Keep in mind when reading this Commission on Government Forecasting and Accountability report for July that federal ARPA funds were used for one-time things, like debt reduction, etc. So, the overall “decline” isn’t really doing anything to ongoing state spending programs. Instead, pay most attention to recurring base revenues

Base revenues into the State’s General Funds performed quite well to start off FY 2024 with year- over-year growth of $396 million. However, when last July’s $584 million deposit of ARPA reimbursements are included in the calculation, the overall change is a decline of $188 million to start the fiscal year. July had the same number of receipting days as the same month the prior fiscal year. The increase in base receipts was spurred by notable improvement from income tax receipts. Personal Income Taxes rose $184 million in July, a net increase of $153 million when removing distributions to the Refund Fund and the Local Government Distributive Fund (LGDF). Similarly, Corporate Income Taxes rose a solid $117 million, or $95 million on a net basis.

As provided by P.A. 103-0008, the annual percentage of personal income tax revenues that are to go to the Income Tax Refund Fund was lowered from 9.25% in FY 2023 to 9.15% in FY 2024. The percentage of corporate income tax revenues that are to go to the Income Tax Refund Fund was also reduced, from 14.5% to 14.0%. Reduced refund fund percentages mean that more available funds could go into the State’s General Funds. However, the gain in net receipts due to these percentage changes will be more than offset by an increase in the portion distributed to the LGDF. Public Act 103-0008 also provided that 6.47% (instead of 6.16%) of personal income tax revenues (net of refunds) shall go to the LGDF in FY 2024. The amount of net corporate receipts to the LGDF did not change and remains at 6.85%.

The growth in base revenues was also aided by a significant rise in Federal Sources base receipts. In July these particular receipts were $253 million higher than the year prior. However, if the $584 million in non-base federal dollars receipted in July 2022 from the ARPA Reimbursement for Essential Government Services are included into the equation, Federal Sources were actually down $331 million for the month. No additional ARPA reimbursements are anticipated in FY 2024, which will be a comparable disadvantage throughout the year when comparing FY 2024 with FY 2023 year- to-date totals.

Sales Taxes held flat in July on a gross basis. On a net basis, when accounting for distributions to the Road Fund and other transportation funds, a modest decline of $11 million occurred due the increase in Road Fund Transfers under current law. In regard to all Other State Sources, revenues combined to eke out a $2 million gain. A $20 million increase in Interest on State Funds & Investments, a $7 million rise in Corporate Franchise Taxes, and a slight $1 million increase in Public Utility Taxes helped offset declines in General Funds receipt distributions from Insurance Taxes [-$16 million]; Inheritance Taxes [-$6 million]; and the Cigarette Tax [-$4 million].

The performance of Transfers In was mixed. Lottery Transfers were $20 million higher, Gaming Transfers from Illinois’ casinos were up $7 million, and Cannabis Transfers rose $1 million. These gains, however, could not overcome the $124 million decline in Other Transfers, resulting in an overall Transfers In decline of $96 million. The notable decline in Other Transfers is primarily due to a Capital Projects Fund July 2022 transfer of $140 million that did not repeat in July of this year.

* To recap, this is a year-over-year July-only growth of $396 million, including net gains of $153 million in personal income taxes (10.9 percent increase) and $95 million in corporate income (57.9 percent increase).

Also setting aside one-time ARPA money for one-time spending, the state saw a $253 million base increase in federal funding, which is a 414.8 percent increase.

The sales tax net decline was due to the yearslong task of eventually transferring all sales taxes on motor fuels to the Road Fund.

Excluding ARPA, total net General Funds sources grew from $3.01 billion in July of 2022 to $3.406 billion in July of 2023. That’s a 13.2 percent increase.

* With inflation, $3.01 billion in July of 2022 is equal to $3.1 billion in June of 2023. July numbers aren’t yet available, but inflation has significantly cooled of late. So, factoring inflation, that’s still $306 million in growth and represents a 9.87 percent increase. It’ll be slightly smaller when July numbers arrive.

  9 Comments      


Delivery Helps Chicago Restaurants Grow On Uber Eats

Wednesday, Aug 2, 2023 - Posted by Advertising Department

[The following is a paid advertisement.]

At Uber Eats, local restaurants are the backbone of our communities and delivery continues to help small business owners reach new customers and increase sales.

We recently published the results of the 2022 US Merchant Impact Report—which come directly from a survey of merchant partners. Read More.

  Comments Off      


Live coverage

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* ScribbleLive is down and XTwitter, in another super-genius move, has stopped allowing people to embed their list feeds on websites. So, click here and/or here to follow breaking news.

  5 Comments      


Waukegan’s questionable casino selection process at heart of appellate ruling

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* October of 2019

The Forest County Potawatomi tribe of Wisconsin is suing the city of Waukegan, Illinois, for rejecting its proposal to build a casino on the site of a ghost shopping mall in the city. […]

Last week, the city council rubber-stamped bids from the tribe’s three competitors — Full House Resorts, North Point Casino, and Rivers Casino Waukegan – sending them to the Illinois Gaming Board, which will make the final decision. But the Potawatomi project didn’t make the cut. […]

The report in question, complied by Johnson Consultants, asserted the tribe was offering $5.6 million to buy the plot of land on which the casino would be built, the lowest of the four bids.

But the tribe argues it didn’t quote any specific price for the land in its application at all, and neither was it required to. It merely stated it would pay within 15 percent of the plot’s market value.

The tribe later submitted supplementary materials emphasizing it was prepared to pay $12 million for the plot, which was not included in the Johnson Consultants report.

According to the lawsuit, the report rated the Potawatomi as first or second in every other category except for the purchase price, but ultimately ranked the entire proposal last – a decision the tribe describes as “inexplicable.”

* November of 2021

The owners of the Potawatomi Hotel and Casino claim that former [Waukegan] Mayor Sam Cunningham manipulated the bidding for a future Waukegan casino to favor the gambling company of former state Sen. Michael Bond. […]

The Potawatomi group pointed to the significant financial contributions that Bond, CEO of Tap Room Gaming, had provided to councilmembers who voted in line with Cunningham’s request.

In the final weeks of the 2017 mayoral campaign, Bond directed more than $50,000 to Cunningham. Then, ahead of the 2019 City Council election, Bond and his network of companies and committees gave $250,000 to candidates he backed, essentially fully bankrolling four candidates who won seats.

According to the tribal casino entity, city officials favoring Bond’s North Point proposal also selected Neil Bluhm’s Rush Street Gaming/Rivers Casino for consideration by the state gambling board as a result of Rivers’ teaming up with Waukegan Gaming LLC, the entity that had been selected by the city in an unsuccessful 2004 effort to bring a casino to town and had filed suit seeking the new license.

“Based on Bond’s campaign largesse and personal connection to Cunningham, North Point indeed had the inside track. But given public scrutiny of the Bond connection, the City also favored Full House as a relatively weak competitor that could ‘quash’ the (accurate) perception of bias toward North Point,” Potawatomi attorneys alleged. “The selection of Rivers does nothing to negate this inference, because Rivers punched its own ticket in the form of damaging information it unearthed in the Waukegan Gaming litigation. Hence Cunningham’s directive to send North Point, Full House and Rivers, but not Potawatomi, to the Illinois Gaming Board.”

Except, the Illinois Gaming Board wound up choosing Full House, which was granted a temporary operating license earlier this year and a sports betting license in June.

* But now

The cards have already been dealt in the Waukegan casino game, but a state appellate court has issued a ruling that could bring back to the table a spurned bidder that has long complained of a “rigged” contest for the coveted gambling license.

That means the north suburban casino selection process could end up being reshuffled, even though Las Vegas-based Full House Resorts has been open for betting business at a temporary gambling mecca in the city for almost six months.

Illinois’ First District Appellate Court sided Friday with the Forest County Potawatomi Community in their long-running court battle with Waukegan, where the Native American tribe has contended officials didn’t give them a fair shake in 2019 while considering casino operators that were then forwarded for a final selection by state gambling regulators. […]

“Potawatomi Casino pursued a significant business opportunity to fairly compete for a casino license, and where that opportunity was denied due to the city’s alleged failure to perform the process lawfully, there is a distinct and palpable injury,” Justice Raymond Mitchell wrote in the decision.

The ruling is here. The case was sent back to the trial court.

  4 Comments      


It just keeps getting more ridiculous

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* Fox News is gonna Fox News, I suppose. Chaos in the streets, some predict..

- Illinois enacting a law that ends cash bail is a “backdoor way” to defund law enforcement and will likely spark a police exodus as officers ask why they should even bother arresting people, according to retired law enforcement officials who spoke to Fox News Digital.

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[Retired Fulton County Sheriff Sgt. Donald “Ike” Hackett] added that eliminating cash bail also cuts revenue streams to programs that support victims. He said that revenue from bail is $300,000 in some counties, which is often used to pay for crime victims funds or domestic violence funds, which were established to “to reduce the financial burden imposed on victims of violent crime and their families,” according to the Illinois attorney general’s website that details the state’s Crime Victims Compensation Program.

OK, I’ve seen this stuff about victim restitution before. A bit of context is in order. According to a 2021 report of the Administrative Office of the Illinois Courts, circuit court clerks throughout Illinois disbursed $1.33 billion that year. Subtract the $66.4 million in refunds to people who posted cash bail, paid fines, etc. and that left $1.27 billion, which, needless to say, is a huge pile of cash.

Of that $1.27 billion, just $11.5 million was paid to crime victims statewide. Sheriffs offices, however, received $15.2 million for process serving and court security.

* Back to the story

Hackett pointed to an incident this month in Fulton County, where an 18-year-old recently released from custody on his own recognizance for domestic battery charges allegedly attacked a 14-year-old boy in Lewistown. […]

“This is what cashless bail will bring,” Hackett said.

Um, under the SAFE-T Act, domestic battery will be a detainable offense. The retired sheriff took a recent failure by his own county and projected it onto a law that hasn’t yet taken effect. And everyone seems to ignore the fact that groups which work with, and advocate for domestic violence victims supported the law because it got serious about domestic violence.

  50 Comments      


Big federal transit investment highighted in Metro East, Buttigieg touts ‘complete streets’ in Urbana

Wednesday, Aug 2, 2023 - Posted by Rich Miller

* For those who aren’t familiar with the Metro East area, MetroLink is the transit agency that serves both sides of the Mississippi River in the St. Louis area. Here’s St. Louis Public Radio

MetroLink will soon get $223 million from the federal government to replace aging light rail cars and repair damage from flooding, U.S. Transportation Secretary Pete Buttigieg said in East St. Louis on Monday.

The first portion of the federal money, $27 million, will help repair damage sustained last summer during record flooding. The remaining $196 million will fund 48 new light rail cars.

“We know how much transit means to people, and we know that this community has been through a lot,” Buttigieg said in a speech at MetroLink’s Emerson Park location. […]

Buttigieg, alongside U.S. Rep. Nikki Budzinski, D-Springfield; U.S. Rep. Cori Bush, D-St. Louis County, and U.S. Sen. Dick Durbin, D-Illinois, praised the MetroLink investment as the work of President Joe Biden’s administration. […]

Local officials said earlier this year that Emerson Park [in East St. Louis], the site of Monday’s press conference, would be the location of a new $13.6 million public safety center. The facility is currently being built and is scheduled to be completed in February.

The 16,000-square-foot center will include a new St. Clair County dispatch operation and space for the sheriff’s department.

Gov. Pritzker announced earlier this year that the Illinois State Police’s Metro East regional headquarters would be located in East St. Louis.

* Buttigieg also visited Urbana on Monday

In looking toward the future, Buttigieg put forth the idea of “complete streets.”

“Now is a great opportunity not to repeat some of the mistakes that we’ve inherited,” Buttigieg said. “There was a period that we thought, for example, that the only function of a road going through the middle of a built-up area where a lot of people live is to blast vehicles through as quickly as possible.”

A “complete street,” according to Buttigieg, would include sidewalks and more space so that cars, bicycles and pedestrians, including wheelchair users, can “coexist peacefully.”

He said that while this may seem like a new idea to some, he sees it as going back to basics, approaching city planning more like someone would have before the invention of cars.

“We were so excited about what cars could bring that we neglected to fit that into a bigger picture,” Buttigieg said.

  6 Comments      


Open thread

Wednesday, Aug 2, 2023 - Posted by Isabel Miller

* What’s up with y’all this Wednesday?…

  27 Comments      


Isabel’s morning briefing

Wednesday, Aug 2, 2023 - Posted by Isabel Miller

* Here you go…

  7 Comments      


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* Open thread
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* Selected press releases (Live updates)
* Yesterday's stories

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