* From a Southern Illinoisan article about a dispute over debates between Bill Enyart and Mike Bost…
“Springfield insider Mike Bost has no answer as to why he thinks we should lower the minimum wage and make thousands of Southern Illinoisans suffer, while at the same time he takes a pay raise from taxpayers for $3,100. It is not surprising he is now backing out of every debate possible,” said Enyart campaign advisor Jason Bresler. […]
This is just another example of Beltway Bill trying to distract from his votes in favor of Obamacare, Nancy Pelosi and and Washington DC. Mike has fought Springfield politicians at every turn, anyone who says differently, hasn’t seen YouTube,” [Bost campaign spokesman Jim Forbes] challenged back.
Ugh.
For crying out loud, learn to talk like human beings. Nobody’s gonna tune into those quotes except people who are already insanely hyperpartisan.
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Suarez stands by her ad, produces evidence
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* Well, didn’t this story just get interesting?…
Rich,
I was just alerted to your post saying that someone else wrote the piece about women in the military. As I told you, I stand by my ad. Here is the original letter to the editor that was published in the St. Louis Post Dispatch on October 14, 1998. There is only one Kurt Prenzler (that we can find) living in the United States and he was living in Brentwood, MO at the time.
I think what you found was a post on Facebook by a gentleman trying to confront Prenzler with the words and Prenzler deleted it.
Please call me if you have any questions.
–
Marleen Suarez
Democratic Candidate - Madison County Treasurer
* The letter to the editor…
Oh, that’s gonna sting.
…Adding… If Suarez wants to raise any money to get that ad on the air, then she probably ought to update her fundraising link, which no longer functions.
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* The Tribune had a story the other day about Rahm Emanuel’s ties to Bruce Rauner. It skipped some important bones of contention, particularly those Rauner robocalls slamming Rahm’s pension reform plan. But, anyway, from the story…
Just a few months before announcing plans to become Chicago’s next Democratic mayor, Rahm Emanuel strolled down the gravel path to a Montana resort restaurant with Republican businessman Bruce Rauner, both men smiling as they carried bottles of wine.
In his hand, Emanuel carried a bottle of Napa Valley Reserve. The wine — which a spokeswoman says was not Emanuel’s — is so exclusive it is available only through a private vineyard whose members pay six figures to join the club. […]
[Emanuel’s spokeswoman] said the bottle did not belong to Emanuel. Officials from Rauner’s campaign declined to comment.
* The Sun-Times followed up…
Q: Do you belong to a wine club that costs $100,000 to be a member of?
RAUNER: (Laughs) I have many investments and I am a member of many clubs.
REPORTER: So that is a yes?
RAUNER: Yes.
* And the Quinn campaign pounced…
Quinn for Illinois spokesman Izabela Miltko issued the below statement regarding Republican billionaire Bruce Rauner’s comments today confirming that he belongs to an invitation-only wine club that requires a more than $140,000 initiation fee, a fact he hid from the Chicago Tribune over the weekend.
According to the wine club, the membership structure is similar to most fine private clubs. Membership is non-equity and by invitation only. There is a membership deposit with two levels of membership: Estate Vineyard Program and Designated Vineyard Program, both requiring an initiation fee of more than $140,000.
“You just can’t get more out-of-touch than Republican billionaire Bruce Rauner.
“While enjoying a luxury $140,000 wine club membership, Republican Bruce Rauner actually proposed to cut the minimum wage, taking $2,000 a year out of the pockets of hard-working Illinois families.
“Mr. Rauner’s proposal to cut the minimum wage was heartless on its own merits. The fact that when he made it, he was wining and dining himself on the best wine money can buy is even more callous.
“Bruce Rauner may not like the minimum wage, but he sure loves his vino.”
*** UPDATE *** From what I know of Rauner (spend big bucks on things that appreciate, like land and mansions, don’t spend money on stuff like watches and cars, which often lose value), I wouldn’t have guessed he would get suckered into spending that much money to join a wine club. WaPo has another possible explanation that makes more sense to me…
While Rauner said he belongs to the club, it’s not clear if it’s NVR — or what he might have paid for that membership. As Worth dot com notes, Rauner was also a silent partner in Harlan’s first investment in vineyard property in Napa Valley. Perhaps his investment in land that Worth (the site) says could have been worth (the noun) somewhere in the neighborhood of nine figures meant he was grandfathered in.
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A very good point
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* Illinois has a veterans hiring preference law. So, handing out a few hundred state government jobs to the politically connected when those positions should’ve been handled by the civil service system (which would mean veterans would have a preference) does, indeed, harm some vets…
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Rauner outspent 2-1 on Chicago TV last month
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* Keep in mind that these Quinn-Rauner ad spending totals don’t include spending by that union-backed PAC which has run ads attacking Bruce Rauner…
During the last month, the two campaigns spent nearly $3 million on TV ads in the expensive Chicago broadcast market, records show. And experts say the pace of ads and the amount spent will only grow in the weeks leading up to the Nov. 4 election.
From late July through Friday, Quinn aired 1,133 ads at a cost of nearly $1.97 million. That includes 159 airings of an unusual one-minute spot to introduce his campaign at a cost of almost half a million dollars. Rauner aired 1,382 half-minute commercials that cost just more than $1 million, records show.
People in the area tell me that both candidates have been running ads on St. Louis TV, which is almost unheard of at this point in the game.
Quinn is on a pace that pretty much everybody predicted. Rauner’s ad buys, however, are a whole lot lighter than I figured they’d be. Only a million for the entire month?
* But Rauner is picking up the pace this week…
Rauner bought 466 spots for more than $536,000 in Chicago, including $90,000 for a pair of 30-second ads on Sunday’s Bears home game. That number could be even higher, as TV station records were incomplete late Friday. Quinn had bought 269 ads for the week at a cost of more than $420,000.
…Adding… Background info from a certain campaign…
Since the primary (3/18/14):
Rauner: $6.5M on broadcast, cable, & radio.
Quinn: $4.2M on broadcast, cable, & radio.
Since 6/11/2013:
Rauner: $15.8M on broadcast, cable, & radio.
Quinn: $4.2M on broadcast, cable, & radio.
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So far, it’s still stuntish
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* Gov. Quinn was asked today about how the minimum wage challenge was going for him…
Gov. Pat Quinn says his experience trying to live on the minimum wage for a week has meant graham crackers for dinner. […]
Quinn told reporters Tuesday that he’s opted for water instead of iced tea while eating out. He made the comments after talking to Chicago students returning to school for the first day of classes. […]
Quinn says he’ll spend $79 this week on food and other expenses. His campaign says that’s the estimated amount left for minimum wage workers after transportation and housing costs.
* React…
State Sen. Bill Brady, who ran against Quinn in 2010, calls it a publicity stunt.
“Frankly, it kind of mocks the struggles those who are living on minimum wage are dealing with,” Brady said. “It defers the attention that really needs to be focused on creating good paying, career-oriented jobs. That’s what we’re about.”
This is merely a simulated experience. Quinn won’t have to constantly fret this week about paying his rent, or making his car payment, or buying school clothes for his kids, or keeping his phone and electricity turned on, or paying for a dentist to deal with an other-worldly toothache, or the myriad other soul-crushing emergencies that the working poor deal with every single day.
If the governor talked more about those realities, I’d be more inclined to say this isn’t a stunt.
* Quinn did talk about the policy importance of the minimum wage today, but it was the same old lines he’s been using…
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* Politico’s Alex Isenstadt says Bill Enyart could be dumped soon…
Despite the GOP’s troubles, Democrats remain anxious that the political environment could deteriorate still further before Election Day. They say two of their vulnerable incumbents, New Hampshire Rep. Carol Shea-Porter and Illinois Rep. Bill Enyart, may soon be lost causes and are scrambling to prevent that list from growing.
We’ll see. That’s certainly a tough district for Enyart in an off year with Pat Quinn’s numbers in the tank. But only one occupation polls lower than a sitting congressman: Illinois state legislator. Mike Bost has taken lots and lots of votes over the years.
* By the way, Bost is airing his first TV ad…
* Back to the Politico article. Most of the chatter I heard over the weekend was about Ann Callis…
Democrats have gradually narrowed their focus to protecting jeopardized incumbents and are likely to seriously invest in only the dozen or so candidates seen as realistic contenders for Republican-held seats. At the start of the cycle, for instance, national Democrats had been talking up the candidacies of Ann Callis, a former county judge running for an Illinois seat, and Amanda Renteria, a former Capitol Hill aide seeking a California seat. Neither candidate is now seen as likely to win, and neither is receiving as much attention.
The DCCC’s only evidence that they haven’t yet jettisoned Callis is their media buy reservations haven’t been canceled. Kinda thin soup.
* Meanwhile…
Katie Prill, a spokeswoman for the National Republican Congressional Committee, said the GOP’s Illinois strategy has changed from defense to offense. The NRCC has spent a half million dollars on television ads to support Dold against Schneider, and a total of $1.4 million to support Mike Bost, who is facing the Democrat Enyart, and Davis in their races.
Prill singled out the Dold-Schneider race as a “huge pickup opportunity” for Republicans. Dold lost to Schneider in the independent-leaning district by about one percentage point in 2012.
The Democratic Congressional Campaign Committee has spent $800,000 on ads so far in the Dold-Schneider race, and about $3.5 million in the other two districts. U.S. House Minority Leader Nancy Pelosi recently appeared in Chicago to rally with Callis and Schneider, and push the Democratic campaign themes of equal pay for women and raising the minimum wage.
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* During the Illinois State Fair, I was chatting with a friend of mine who’s also a Chicago TV reporter. The conversation turned to Jim Oberweis and Dick Durbin. My buddy said Durbin would win going away. I said I thought it would be closer than that, partly because Durbin’s been in DC so many years. So, we made a bet. I bet the final spread would be single digits, my friend said it would be double digits.
The last We Ask America poll of this race in late July had Durbin ahead 53-38. The poll was taken before the State Fair, so I could understand why my buddy was so confident.
But things can change in politics. And while I haven’t yet won that bet, I may be on my way to collecting some cash…
In a year that’s expected to tilt toward Republicans across the nation, Durbin, the No. 2 Democrat in the U.S. Senate, is leading Oberweis, who is making his third run for the Senate, 47.8 percent to 40.5 percent, the [We Ask America] survey commissioned by the Sun-Times’ political portal shows.
And in the first major survey since an Illinois State Board of Elections ruling allowed the Libertarian Party onto the ballot, candidate Sharon Hansen had a showing of about 4 percent.
Now you see why the Republicans wanted the Libertarian Party off the ballot. She’s getting 8 percent of the independent vote, according to the poll. So far, anyway, she’s splitting the anti-Durbin vote with Oberweis. We’ll see what happens when party loyalty kicks in.
…Adding… Something happened to half this post. It didn’t publish. Hold on a bit. I’m reconstructing now.
* More…
Of those surveyed, 60 percent responded they were less likely to vote for a U.S. Senate candidate who had served in Washington, in the Senate and Congress, for 31 years. […]
Still, when asked: “If a candidate for the U.S. Senate has run five unsuccessful campaigns for various public offices in the past, would that make you more likely or less likely to vote for him?” [54 percent less likely] 44 percent said they were either more likely to support that person or that it made no difference.
* From the pollster…
“The tight numbers may be a reflection of a Republican year,” he said. “Still, Sen. Durbin is close to 50 percent in the poll. He has the advantage of a large campaign fund and an experienced campaign staff. That can’t be ignored.”
*** UPDATE *** Durbin, you’ll recall, refused to release his own polling results last month. But Oberweis has released the results of his poll…
Incumbent Democratic Senator Dick Durbin leads Republican challenger Jim Oberweis by a mere 6% among likely voters in the upcoming November mid-term elections. Receiving 44% of the vote, the 32-year incumbent is well below the 50% threshold.
Durbin and Oberweis receive comparable support from voters of their respective parties. Durbin garners 76% of the Democratic vote and Oberweis receives 77% of the Republican vote. Oberweis has a slim lead over Durbin among independent voters at 38-37%.
Libertarian Sharon Hansen receives 8% of the vote, noting that third-party candidates traditionally poll higher than the vote received at the ballot box.
On the generic ballot for Senate, the Republican candidate holds a slight lead at 44-43% over the Democratic candidate. Independents prefer to vote for a Republican (43%) over a Democrat (27%) to represent them in the U.S. Senate.
More results here. Durbin’s approval rating is upside down. Not good.
[ *** End Of Update *** ]
* Meanwhile, Oberweis got a big boost from a prominent black minister…
Bishop Larry Trotter, the senior pastor of Sweet Holy Spirit Church of Chicago, said Sunday he’s backing Republican state Sen. Jim Oberweis for U.S. Senate, changing allegiance from longtime incumbent U.S. Sen. Dick Durbin, D-Ill. […]
He said he’s switching his support from Durbin to Oberweis after seeing meager economic development in African-American neighborhoods; a lack of a south suburban trauma center and a perceived “lack of access” to Durbin.
“When you pastor 8,000 people, I think you ought to get a return phone call,” Trotter said at a news conference in his church office Sunday afternoon.
He said he has spoken with Durbin only once despite “many attempts” to express his concerns to the No. 2 Democrat in the U.S. Senate.
I’m betting the real reason is Trotter’s leadership of the anti gay marriage effort last year. Oberweis voted with Bishop Trotter. Durbin supports gay marriage. No mention of either fact in the article, however.
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*** UPDATE *** As noted above, Marleen Suarez has now produced evidence which indicates that her ad is, indeed factual. Click here to read her response and see her evidence.
[ *** End Of Update *** ]
Remember that brutal campaign video I posted a month ago about the Madison County Treasurer’s race? The ad, by Democrat Marleen Suarez, alleged that all sorts of bad things were discovered at Republican incumbent Kurt Prenzler’s daycare center, including “rat droppings and roaches.”
Well, Suarez’s campaign is at it again, but this time they’ve missed the mark, to say the least. Watch…
Oof.
* But the allegations don’t appear to be true.
A Google search for the phrase “Meanwhile, there is sex in the barracks and the U.S. Navy has transformed itself into a floating brothel” turned up a cached result of a deleted comment on the Madison County Treasurer’s Facebook page.
That comment appears to have been written by somebody named Edward Hartmann, not Prenzler. Here’s a screen capture…
Oops.
Amazingly enough, Prenzler doesn’t appear to have responded. Also, keep in mind that we’re talking Madison County here, perhaps best known nationally for its lawsuits. Stay tuned.
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* As we’ve already discussed, outside groups have bought over a million dollars worth of TV ads attacking freshman Democratic Congressman Brad Schneider. Today, Schneider launches his own TV buy. From a press release…
U.S. Congressman Brad Schneider (IL-10) launched his first campaign television ad this election, highlighting his Democratic values and commitment to stand up to the Tea Party.
The ad features Schneider explaining what it means to be Democrat, including his support for marriage equality and protecting a woman’s right to choose. In contrast, former Republican Congressman Bob Dold makes no reference to his party affiliation in his most recent ad.
* The ad…
* The script…
Here’s the thing.
To me, being a Democrat means we can’t let “We the People” turn into “We the Few”.
It means tea party obstruction has to stop.
Being a Democrat means we should lower the tax burden on the middle class.
It means we have to protect a woman’s right to choose and every person’s right to choose whom to marry.
I’m Brad Schneider and I approve this message because we’re all in this together, accountable to each other.
We can still accomplish great things.
Discuss.
*** UPDATE *** Dold campaign response…
At a time when voters have had it with do-nothing politicians and the bitter partisanship that has paralyzed Washington, Congressman Brad Schneider is demonstrating just how out of touch he is by doubling down on his record of serving his party leaders rather than the people of the 10th District.
No need to take our word for it, Congressman Schneider says it all himself in his new campaign ad while taking himself out for a coffee break.
After voting with Nancy Pelosi 90 percent of the time, Congressman Schneider’s own ad reminds everyone how enthusiastically he embraces blind partisanship and rejects the independent-minded leadership the 10th District enjoyed under Mark Kirk and Bob Dold. As if anyone needed a reminder.
But what Schneider deliberately leaves out in his first ad is 1) any record of accomplishment on anything at all from his time in office 2) the fact that he is the 10th District’s current sitting member of congress.
Why would the Congressman leave important details like these out?
“After amassing a record as a hyper-partisan politician who’s earned a toxic 28 percent approval rating and has been ranked as one of the least effective legislators in all of Washington, it’s no wonder that Congressman Schneider makes no mention of his abysmal record or even the fact that he’s a member of Congress,” said James Slepian, Dold for Congress campaign manager. “Congressman Schneider has demonstrated that he knows how to hide from his constituents, but the voters won’t let him hide from his record at the ballot box.”
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A boldfaced lie
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* My weekly syndicated newspaper column…
“We should have billions of dollars every year as part of our budget process…(to) maintain and expand our infrastructure,” Bruce Rauner said last week, according to the Chicago Tribune.
Rauner has been doing his best to woo the road builders all year, and he was speaking to the Illinois Farm Bureau, which has lots of members who rely on roads and bridges to get their goods to market. So I understand the practical politics of his bold promise.
But this stuff costs money. Lots and lots and lots of money. And infrastructure is only his second priority. His top priority is education funding. He wants to spend even more money on schools.
Yet, Rauner says he wants to slash the state’s income tax rate. Can he really do all that with lower revenues?
There are three ways to pay for these pie in the sky plans: 1) Gin up the state’s economy to North Dakota levels; 2) Stop making the full state pension payments; or 3) Increase state total taxation far above current levels.
Let’s examine all three, shall we?
1) Rauner has been saying all along that economic expansion is key to generating the revenue needed to pay for everything he wants to do. Yes, Illinois’ jobless rate is down considerably over the last year. That’s good news. But unless oil and natural gas “fracking” turns our state into another Saudi Arabia, there’s just no way Illinois can hit Rauner’s fantasy projections.
Last week, the Congressional Budget Office issued a forecast that the nation’s economy will grow by a mere 1.5 percent in 2014. We’ll need state growth way beyond that just to start covering Rauner’s big promises. Does anybody out there really believe Illinois is capable of outperforming the national economy by that much, even with massive reforms to civil lawsuits, workers’ compensation and unemployment insurance?
2) Resuming the state’s sad history of skipping or skimping on pension payments would likely result in a major bond rating downgrade, perhaps even to junk status. That’s really not an option. The other move would be to force local school districts to take over the state’s role of funding the teachers pension system. But Rauner has also proposed another amazing magical fantasy of capping local property taxes.
He can’t shift pension costs and cap property taxes all at once without decimating the budgets of every school district in Illinois. Period. End of story. And if he doesn’t muscle this local fiscal nightmare through the General Assembly in a big hurry (fat chance), there won’t be nearly enough money available to pay for even a little of what he wants to spend.
Rauner has also said he wants to immediately put all state employees, teachers and university employees into a 401(K) type retirement system to ease pressure on the state budget. But considering the Illinois Supreme Court’s clear hostility to anything that even remotely pares back public pension benefits, that idea ain’t gonna pass constitutional muster. Not to mention the huge outstanding pension debt the state has accumulated over the years, which still has to be paid off.
3) After assuring Republican primary voters that he’d slash taxes, the candidate now says he wants to gradually roll back the 2 percentage point, 2011 income tax hike over four years. That’s somewhere around $8 billion in lost annual revenue by his target date - about a 40 percent cut in current income tax receipts, and the personal and corporate income taxes account for a little over half of all state revenues.
According to the General Assembly’s Commission on Government Forecasting and Accountability, state revenues, including federal sources and the 2011 income tax hike, have grown an average of just 4.5 percent a year since Fiscal Year 1998.
Rauner’s proposed service tax would have to be ginormously biggerthan the $450 million or so he’s advertised to cover a nut like that. And never mind that taxes on services will tend to drive down consumption, which reduces demand, which hurts economic growth, particularly at the middle and lower ends (see fantasy #1).
Say what you want about Gov. Pat Quinn, and I’ve said more than my share of negative things over the years, but at least he tries to live somewhere in the neighborhood of budgetary reality. In contrast, the new government spending that Bruce Rauner is proposing on the campaign trail transcends the political posturing we’ve grown accustomed to as Illinoisans.
I don’t say this lightly, but it’s a boldfaced lie, cheerily spoon-fed to an angry, disgusted populace desperate for even a hint of good news. He needs to be called out for this.
…Adding… Greg Hinz…
In an exchange of emails, the Rauner campaign appears to have removed any ambiguity about asking workers to accept less or to get their checks later rather than when due. “All benefits accrued to date will be paid fully and on time,” a campaign spokesman says. That means the money will have to come from somewhere else.
But where? Mr. Rauner has said he wants to repeal Mr. Quinn’s income tax hike over four years. He says boosting education aid will be his top priority and that much of the money will come from reviving the state’s still-lagging economy. But doing so will take time, sweat and the political skills of a Lyndon Johnson.
Even if Mr. Rauner somehow persuades Springfield Democrats to enact tort and workers’ compensation reform, switch out a tax on service for the income tax hike and take other controversial steps, will that provide enough revenue to make the schools happy and retire $100 billion in debt?
I doubt it.
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Rate Gov. Quinn’s new TV ad
Tuesday, Sep 2, 2014 - Posted by Rich Miller
* From a press release…
Featuring Governor Quinn’s 63-year-old push mower, Quinn for Illinois released a new ad today showing the Governor trimming his lawn and recounting the steps he has taken to rein in government spending and restore fiscal health to Illinois. The ad, which features the Governor mowing the lawn in front of his modest Georgian home in Chicago’s Galewood neighborhood, went up on the air this morning.
“I’m working to fix the mess and I’m not finished,” Governor Quinn concludes in the ad.
Governor Quinn inherited a mess, but he’s been making the tough decisions and getting the job done to move Illinois in the right direction.
* The ad…
* Transcript…
Governor Quinn: “When I became Governor, state government needed to be cut, just like my lawn. So I got to work. I cut state spending by $5 billion, cut over 2 million square feet of office space, closed 50 state properties, and we’re selling 9 state airplanes. I suspended legislators’ pay along with my own. We balanced the budget in a fiscally responsible way. I’m Pat Quinn, I’m working to fix the mess and I’m not finished.”
…Adding… As you’ll recall, Quinn got some bad publicity not long ago when one of his neighbors complained that his lawn was too long. That could be seen as a negative metaphor here. Yeah, he’s cutting his lawn now, but he should’ve been cutting it all along… or something.
* The Rauner campaign is out with a “fact check”…
Quinnocchio Alert: New Ad Misleads on Quinn’s Record of Higher Spending, Higher Taxes, Unbalanced Budget
“Taxes in Illinois are a lot like the weeds in Pat Quinn’s yard – out-of-control and hurting his neighbors. The only thing Pat Quinn knows how to cut is education funding to the tune of $500 million.” – Rauner Spokesperson Mike Schrimpf
Quinn Claim: “I Cut State Spending By $5 Billion”
Reality: The Budget Has Grown Under Pat Quinn, And He Raised Taxes By $25 Billion
Spending From Illinois’ General Funds Has Increased From $32.23 Billion In FY2010 To $35.76 Billion In FY2015. (State Of Illinois Budget Summary - Fiscal Year 2015, Commission on Government Forecasting & Accountability, p.26)
Quinn’s Tax Increase Has Taken $25.7 Billion From The Pockets Of Illinois Families. “From an aggregate perspective, it is estimated, then, that a cumulative total of approximately $25.7 billion has been generated from the increases in the personal and corporate tax rate so far thru FY 2014.” (State Of Illinois Budget Summary - Fiscal Year 2015, Commission on Government Forecasting & Accountability, p.17)
Reality: Quinn Cut Education By $500 Million
Pat Quinn Has Cut Education Funding By $500 Million. (”State of Illinois Budget Summary - Fiscal Year 2014, Illinois Commission on Government Forecasting and Accountability, 8/19/13; “New Details Emerge on FY2015 Budget, Civic Federation, June 5, 2014)
Reality: Quinn Is Under Federal Investigation For His 2010 Slush Fund That Wasted $55 Million In Taxpayer Money
Pat Quinn’s Administration Is Under Federal Criminal Investigation For His 2010 Neighborhood Recovery Initiative. “Federal prosecutors and Illinois lawmakers are investigating a troubled state anti-violence program, creating a growing headache for Gov. Pat Quinn, who is locked in a tight re-election race. A legislative audit commission held a hearing Wednesday on the Neighborhood Recovery Initiative after subpoenaing members of Mr. Quinn’s administration. But the proceedings were hampered by federal prosecutors who recently confirmed that a criminal probe is under way into the program and warned lawmakers that public testimony could hurt their efforts.” (Mark Peters, “Illinois Gov. Pat Quinn’s Re-Election Hampered by Criminal Investigation,” The Wall Street Journal, 7/16/14)
The Neighborhood Recovery Initiative Wasted $55 Million In Taxpayer Funds. “The Neighborhood Recovery Initiative was launched in 2010 after Chicago community leaders called on Mr. Quinn to declare a state of emergency to address violence. The program, which had $55 million in funding in its first two years, focused on such areas as mentoring and assistance for those leaving prison. Earlier this year, the Illinois auditor general found ‘pervasive deficiencies’ in the program’s operations, including a lack of monitoring of expenses.” (Mark Peters, “Illinois Gov. Pat Quinn’s Re-Election Hampered by Criminal Investigation,” The Wall Street Journal, 7/16/14)
Quinn Claim: “We’re Selling 9 State Airplanes”
Reality: Much Like His Lawn, Quinn Only Did Something About Illinois’ Wasteful State Airplanes When People Started To Complain
Quinn Only Cut His Lawn After The Press Reported That His Neighbors Were Complaining. ” My own guilt made it hard not to cringe when the pictures showed up in my inbox. The snapshots of a forest of dandelions — those hated flowering weeds that choke front lawns and spread their seeds on puffy white pillows caught in the wind — showed every homeowner’s landscaping nightmare. Even though the photos were not of my front yard, I was hit with pangs of guilt because I should have weeded my own front lawn garden weeks ago. ‘Footlong dandelions all over,’ wrote the unhappy neighbor who sent the pictures. ‘Worst on the block. … I don’t know what’s worse, the front yard or the back.’ The dandelion tattletale said he sent the pictures because the dandelions and tall grass grow on the front lawn of a prominent Chicagoan who prides himself on regular-guy sensibilities — Gov. Pat Quinn.” (Mark Konkol, ” Gov. Quinn’s Front Yard Dandelion Forest Frustrates Neighbor,” DNAinfo Chicago, 5/22/14)
Bruce Rauner Proposed Selling Illinois’ Wasteful Air Fleet On June 12. “Republican gubernatorial hopeful Bruce Rauner on Thursday laid out the first specific cost-cutting proposals of his candidacy, saying Illinois could save hundreds of millions of dollars, including by selling most of its airplanes, merging the comptroller’s and treasurer’s offices, and reforming the agency that oversees state property and purchasing.” (Tammy Webber, Rauner Details Cost-Cutting Ideas For Illinois,” The Associated Press, 6/12/14)
Quinn Said He Would Seek To Sell Nine Of Illinois’ State Planes On June 30. ” Illinois Governor Pat Quinn made $250 million in budget cuts and put nine airplanes up for sale as the lowest-rated state in the country struggles to improve its finances.” (Elizabeth Campbell, ” Illinois Governor Quinn Cuts Budget, Sells State’s Planes,” Bloomberg, 6/30/14)
Quinn Claim: “I Suspended Legislators’ Pay, Along With My Own”
Reality: Quinn’s Stunt Was Unconstitutional, And Slapped Down By The Courts
Quinn’s Move Was Ruled Unconstitutional By A State Judge And Lawmakers Were Paid Their Salaries, With Interest. “A Cook County judge decided Thursday that Gov. Pat Quinn’s move to stop paying lawmakers was unconstitutional and ordered Illinois Comptroller Judy Baar Topinka to pay them immediately — plus interest. Cook County Judge Neil H. Cohen ruled that Quinn violated the section of the Illinois Constitution that holds that state lawmakers’ salaries must not be changed during the term in which they were elected.” (Dave McKinney, Jon Seidel and Mitch Dudek, “In Blow To Gov. Quinn, Judge Rules State Lawmakers Must Be Paid,” Chicago Sun-Times, 9/26/13)
Quinn Claim: “We Balanced The Budget In A Fiscally-Responsible Way”
Reality: Quinn’s FY2015 Budget Is “Grotesquely Out Of Balance”
The FY2015 Budget Signed By Pat Quinn Is “Grotesquely Out Of Balance.” FOX 32 POLITICAL REPORTER MIKE FLANNERY: “I can’t recall seeing as irresponsible budget as was just approved… You’d think that the whole General Assembly was on medical marijuana when they were passing this thing. It’s grotesquely out of balance. It doesn’t have nearly the revenue that they claim. They emptied their whole dirty bag of tricks to make it look balanced.” (Fox 32 Chicago, 6/15/14)
Illinois Is At Risk Of Having Its Credit Rating Downgraded Yet Again Due To Quinn’s Unbalanced Budget. ” A top Wall Street bond-rating agency Wednesday raised the prospect of a downgrade on state bonds because of concerns over the newly implemented state budget and a recent court ruling on retiree health benefits. Standard & Poor’s lowered its outlook on the state’s general obligation bonds to negative, though it retained its existing A- rating on state bonds. ‘The outlook revision follows the enactment of Illinois’ fiscal 2015 budget, which in our view is not structurally balanced and will contribute to growing deficits and payables that will likely pressure the state’s liquidity,’ Standard & Poor’s credit analyst Robin Prunty said in a prepared statement.” (Dave McKinney, “Bond-Rating Agency Shifts State Financial Outlook To Negative,” Chicago Sun-Times, 7/23/14)
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* Well, I decided to wait to close comments until after my errands. But I’m heading out now, campers.
Here’s Merle Haggard…
Well, I keep my nose on the grindstone
Work hard every day
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Fracking rules finally unveiled
Friday, Aug 29, 2014 - Posted by Rich Miller
* IDNR released its new fracking rules today. Lawrence Falbe took a quick look for us…
Rich,
My take on the revisions is that IDNR seems to worked very hard to digest an enormous body of public comment, and revise the regulations as it saw necessary and appropriate. I think that few people will be able to argue that IDNR rushed the process or otherwise did not fairly consider the staggering volume of comments it received, even if the end result is not considered perfect by either pro- or anti-fracking proponents.
Here is my “quick hit” list of what I saw that was important in my first very quick run-through.
• Requirement to disclose specific fracking chemicals is strengthened and burden to prove protection as a trade secret is more stringent
• Radioactivity is now addressed and a Radioactive Materials Management Plan is now required, among other things
• The carve-out for adverse effects to water bodies that are “wholly contained” is much more stringent, with any hydrogeological connections to off-site groundwater sources now enough to exclude this caveat
• The permit applicant must identify efforts to mitigate the impact of HVHHF on local roads
• Burden is on the applicant to show if local first responders have adequate training and equipment to respond to emergencies
• Changes to the permit application to address deficiencies identified by IDNR may trigger a new public comment/hearing period on those changes
• Tightens up rules for when an objector can demand a public hearing by requiring specific facts and regulations at issue to be identified, but softens requirement to identify witnesses at time of request for public hearing
• Public hearings must be held WITHIN THE COUNTY of the well site when possible but in no event more than 30 MILES OUTSIDE of county of well site
• Applicants MUST appear at the public hearing (if there is one) except in a case of documented emergency, in which case the hearing can be rescheduled but applicant must pay costs
• Clarifies that Hearing Officer does not render a “decision” but now makes only recommended findings, and the IDNR (presumably the Director but it’s not specified) makes the decision.
• The permit decision still has to be made within 60 days of application completion unless waived by the applicant
• The standard for granting a permit now specifically includes consideration of potential harm to property, wildlife, aquatic life and the environment
• The IDNR has to make specific findings in its permit decision on key input from governmental agencies and objectors that was presented by public comment/hearing
• The permit decision must consider the incremental impact and CUMULATIVE EFFECT of past, present and future fracking operations in the same vicinity or county
• Significant deviations to the original permit application (including changes in well dimensions, boring locations, changes to proposed containment, etc.) requires another $13,500 fee
• IDNR can impose ADDITIONAL SETBACKS as necessary to protect public health, public safety, property, wildlife, aquatic life, or the environment
• Baseline groundwater monitoring requires GPS coordinates
• Burden for claiming technical or economic infeasibility of complying with requirements to manage natural gas and hydrocarbon fluids produced during flowback periods is more stringent
• Excess fluid in a reserve pit must be removed within 7 days after it is deposited
• SITE Restoration is MANDATORY and cannot be contractually waived between site owner and permittee
Note that the new requirement that a well permit application decision must consider incremental impacts and “cumulative effects” (Section 245.300(c)(4)(vii)) is HUGE and could have a major impact on incentivizing companies to rush to get permitted, for fear that an overabundance of wells in a certain area may make additional permits harder to get as time goes on.
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Question of the day
Friday, Aug 29, 2014 - Posted by Rich Miller
* From the Oberweis campaign…
During his 32 years in Washington, Dick Durbin has jumped in front of every TV camera in production. So why is he shy about doing televised debates against Jim Oberweis?
Durbin has agreed to only one Chicago televised debate.
Here are some possible reasons he suddenly is allergic to TV cameras:
1) He infamously lied about Obamacare.
2) Then, he did it again.
3) His policies have devastated Illinois families. Since he last ran re-election, a typical Illinois family is making $5,053 less money in annual income.
4) He pays women staffers $11,000 less than men in his Senate office.
5) He asked the Internal Revenue Service to scrutinize a conservative organization on the eve of the 2010 congressional election and in the midst of illegal targeting of conservatives by the IRS.
6) He refuses to release any other correspondence he had with the IRS during the IRS scandal.
7) He tried to intimidate conservative donors in what the Chicago Tribune editorial described as “Durbin’s enemies list.”
8) He publicly repeated a false story about a Republican leader being rude to the President.
9) He refuses to return $38,550 in campaign contributions linked to one of the most infamous sexual harassment firms in U.S. history.
10) He has said nothing about $4-a-gallon gas prices after spending years haranguing about the issue when prices were lower under a Republican president.
Before we begin, I strongly encourage you to vote and comment quickly because I’m probably shutting down early today ahead of the Labor Day weekend.
* The Question: How many televised debates do you believe Sen. Durbin should agree to? Take the poll and then explain your answer in comments, please.
survey software
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A big IDOT roundup
Friday, Aug 29, 2014 - Posted by Rich Miller
* AP…
Last week, an Office of the Executive Inspector General review concluded more than 250 IDOT “staff assistants” got jobs in the past decade based on clout, when the positions should have been publicly available to any candidate and filled based on qualifications. Quinn’s administration announced last week it was laying off 58 people who still held those jobs.
But they didn’t get rid of others who have moved into other positions still on the state payroll.
Those include two former employees of ex-U.S. Rep. Philip Hare, a Democrat. The workers were hired by IDOT as staff assistants in 2010. Rather than follow typical state hiring procedures, IDOT gave them jobs using an exemption that is supposed to be used only when the job involves policymaking or confidential information. Their jobs involved planting trees and implementing training classes, the review found.
Quinn said his administration “acted promptly” to address problems at the department, including putting in a new transportation secretary who is conducting a full analysis of all positions. He wouldn’t answer a question about why some of the improper hires still have state jobs.
* The easiest explanation for why those folks weren’t laid off with the others is that they’ve been successfully burrowed into the bureaucracy, like these folks might have been…
The Illinois Department of Transportation hired four former staffers of ex-U.S. Rep. Phil Hare, D-Ill., after he lost his re-election bid in 2010, according to an inspector general’s report released late last week that said the state DOT improperly hired more than 250 people over the past decade.
The inspector general’s report focused mostly on the hiring of “staff assistants” to get around hiring rules.
Hare represented the Quad-Cities after being elected in 2006 and again in 2008. But after Hare lost in 2010, three of his former staffers were hired on at the DOT as staff assistants, while a fourth was brought on as an assistant to the regional engineer in District 2 of the Division of Highways, according to the report by Executive Inspector General Ricardo Meza.
The report doesn’t identify the employees by name, but it says one worked for Hare as a regional field organizer and two others as district schedulers.
A fourth person is referenced, too, though it doesn’t list the person’s position with Hare.
According to that story, nobody knows nothing about nothing and nobody. It’s just a series of coinkidinks. Nobody made a call, nobody reached out, nobody did anything to help out Hare’s people.
Yep.
Right.
* OK, remember this guy from yesterday?…
Employee 140’s Duties Included Producing Spreadsheets And Planting Trees. “Employee 16 told the OEIG that as a Staff Assistant, Employee 140’s duties included producing spreadsheets and other computer-generated documents and assisting in the Services Development area. In that capacity, Employee 140 planted trees and performed other preventative maintenance tasks.” (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 75)
IDOT Employee Andrew Waeyaert Was Employed By Phil Hare Until March 12, 2010, And Was The Only Hare Employee To Leave In March Of 2010. (Statement Of Disbursements Of The House – January 1, 2010 to March 31, 2010, U.S. House Of Representatives, p. 1266)
Waeyaert Does Not Appear On The List Of Illegal Hires Being Fired By IDOT As A Result Of The Inspector General Report. (IDOT Layoffs List, State Journal-Register, 8/27/14)
Andrew Waeyaert Is Still Listed As Being Employed By IDOT. (Employee Salary Database, Illinois Comptroller, Accessed 8/28/14)
* The Rauner campaign dug up this photo from a 2010 Illinois Statehouse News story…
The newspaper’s caption…
Standing in the back of the room Andy Waeyaert makes sure that Illinois Gov. Pat Quin can see his show of support for the Democratic incumbent during Gov. Quinn’s campaign stop at the Quad City International Airport in Moline on Monday afternoon, November 1. Mr. Waeyaert also held a sign supporting U.S. Rep. Phil Hare who is in a tight race a day before voters head to the polls.
* Meanwhile, is an unfortunate turn of events…
Sean O’Shea, the deputy chief of staff to Gov. Pat Quinn who resigned just as his boss came under fire for patronage hiring, is going to be unemployed awhile longer.
Mr. O’Shea was going to become chief of staff to venture capitalist J.B. Pritzker but walked away from the job after his departure was reported earlier this week by Greg Hinz and became fodder for Bruce Rauner’s campaign. […]
Mr. O’Shea withdrew from the job with Pritzker Group earlier this week when it became clear he was going to be part of the campaign narrative.
“I met Sean a few months ago through our search process and was impressed that he was universally praised by every reference I spoke with as a man of high integrity with exceptional professional accomplishments,” Mr. Pritzker said in a statement. “Unfortunately, the kind of political blood-sport that smears a guy like Sean O’Shea is exactly what drives good people away from public service. I wish Sean nothing but the greatest success.”
I get why JB might not want to have been dragged into this mess, and I get that O’Shea is in an unflattering spotlight right now, but his life is really going to suck from here on out and, personally, I don’t wish it on anybody.
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Even Steven, for now
Friday, Aug 29, 2014 - Posted by Rich Miller
* Remember the other day when Bruce Rauner and his chief of staff were saying that Rauner’s campaign was being outspent 2-1 by Gov. Pat Quinn and his allies? No longer…
Bruce Rauner’s campaign just doubled its near future TV ad buy, sources tell Early & Often.
The camp on Thursday doubled its new flight from the period of Aug. 28 through Sept. 8.
“I’ll apologize to everbody in this room. You’re going to see my face on television more in the next two months than you’ll ever want to see it,” the Republican gubernatorial candidate told the audience at the Metropolitan Planning Council event on Thursday.
I’m guessing that Rauner will do more than just catch up come September. We’ll see, though.
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*** UPDATE *** The Libertarian Party has sent out a press release saying they have provided documentation to the Attorney General and plan to soon file a complaint with the state’s attorney. The release is here.
[ *** End Of Update *** ]
* I had also heard this but have been so far unable to confirm…
Republican News Watch has learned that the Libertarian Party of Illinois lodged complaints on Thursday with both the Office of Illinois Attorney General Lisa Madigan and the Office of Cook County State’s Attorney Anita Alvarez over intimidation tactics employed in an attempt to prevent the Libertarian’s slate of statewide candidates from appearing on the November ballot. […]
“The Illinois Republican Party’s actions, by hiring a private investigation firm such as Morrison Security Corporation to engage in deceptive and coercive tactics against the Libertarian Party’s petition gatherers and signers, are beyond outrageous,” said Ben Koyl, Libertarian Party candidate for Illinois Attorney General. “The actions by the Republicans are calculated to deprive registered voters of Illinois of their right to free and open elections. These coercive and deceptive tactics have a chilling effect in that they discourage people from signing petitions and are in violation not only of Illinois election law, but also of our First Amendment rights,” added Koyl.
.
The party did highlight the above story on its Facebook page, however.
* Meanwhile…
Bruce Rauner for the first time personally responded to Early & Often reports that private investigators were armed with guns while working for the Republican effort to remove the Libertarians from the November ballot.
Rauner said in a news availability that he was “outraged” and “appalled” by the behavior, but said it had nothing to do with himself or his campaign. […]
When asked about ties between the program and Rauner’s campaign, Rauner said: “One person did but that person as far as I know was not involved in the specific issue that was raised. That person who we paid for a specific project that was done, it was a discreet project, it had nothing to do with this other work that the state party had to do. That was completely disconnected. Our campaign has had nothing to do with the issues.”
* Video…
* The Quinn campaign offered up a “fact check”…
On the 51st anniversary of Martin Luther King’s “I Have a Dream” speech, Republican billionaire Bruce Rauner found himself explaining yesterday why his campaign bankrolled armed operatives to intimidate voters recently at their homes, as first reported by the Chicago Sun-Times.
In the video… Rauner refused to apologize for his campaign’s unacceptable voter intimidation with guns, let alone take an iota of responsibility. Rauner also refused to say whether anyone was fired over this dangerous dirty trick.
Rauner’s responses range from false to evasive. Check it out:
Rauner Claim #1: “That program that was run - that was run by the state party.”
Reality: Seriously? You mean your so-called “voter integrity” program by your lawyer, with your staffer?
Rauner Claim #2: Only “one person” from my campaign was involved.
Reality: Uh, no. Rauner lawyer John Fogarty is the same lawyer leading the petition attack for the Illinois Republican Party. Furthermore, Morgan Kreitner - a notary for the Rauner-backed effort to knock the Libertarians off the ballot, is a salaried employee of the Rauner campaign. In addition, Rauner personally has donated $6,500 to the man carrying out this voter integrity initiative. And Rauner has donated millions of dollars to the Illinois Republican Party.
That’s three, at least, by our count, including the candidate himself.
Rauner Claim #3: “That person who we paid for a specific project that was done – it was a discreet project –it had nothing to do with this other work…it was completely disconnected.”
Reality: Wait, what? What’s this “discreet” project, exactly? Who did you pay to do what?
Rauner Claim #4: “Our campaign has nothing to do with the issues that you describe.”
Reality: Only you do. You bankrolled it. You’ve gone all over Illinois bragging about your so-called “voter integrity” efforts, your campaign has donated more than $2 million to the Illinois Republican Party to carry out these efforts and you personally donated $6,500 to the political organization of the man carrying out the gun intimidation effort. But now that your cronies have been caught red-handed, it’s hear-no-evil, see-no-evil, speak-no-evil. Is this the Rauner version of accountability?
* The Tribune editorial board also weighed in today…
We know, we know: Politics ain’t beanbag. But politics doesn’t have to be rotten and nefarious either.
Yet oodles of people who run for office in this state will tell you of strong-arm tactics they endured, sometimes from their own party, to get their names on an Illinois ballot.
It’s shameful. Sincere candidates who believe in public service spend months walking door-to-door collecting signatures — one of the purest elements of democratic elections — only to get kicked off the ballot through dishonest means.
The latest allegation of skulduggery accuses Republican Party leaders of trying to remove Libertarian Party candidates from the Nov. 4 ballot, ostensibly to protect GOP candidate for governor Bruce Rauner. Rauner would compete more easily in a one-on-one race with Gov. Pat Quinn with no Libertarian candidate siphoning off votes. Rauner says he knew nothing of the alleged intimidation:
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* For decades in this state, a small number of casinos had a complete, legal and state-protected monopoly on slot machine gaming. The public benefits of those monopolies have mainly been confined to a handful of communities, although the state has brought in money as well. Meanwhile, local bar owners have been hurt by the state’s smoking ban and by competition from the casinos in those areas, so legalized video poker has saved a whole lot of small business owners from ruin. Yeah, there’s some slippage at the former monopolies, but the little guys are benefiting, so I’m not sure I see a crisis or anything yet…
Tony Mossuto, owner of the Double Play Saloon in the Chicago suburb of Blue Island, said bars have struggled to cope with higher liquor taxes and a 2008 smoking ban. His five slot machines have attracted a new, older clientele that is keeping his establishment open and 10 employees working.
“It’s saved our industry,” he said.
Casino revenue in Illinois fell 5.3 percent in 2013, the first full year with the new competition. Sales fell similarly in July, marking 11 straight months of decline, according to Bloomberg Intelligence data. The first casino opened in the state in 1991.
Las Vegas-based Boyd, which owns the Par-A-Dice Hotel Casino in East Peoria, cited the burgeoning competition as one reason for a shortfall in second-quarter profit. […]
Casino operators are now focused on keeping truck stops from having more than five machines and developing restrictions that limit the competition to places like bars and social clubs.
Your “position”?
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Stark contrasts on taxes, minimum wage
Friday, Aug 29, 2014 - Posted by Rich Miller
* On taxes…
“It’s painful, I hate to put new taxes in place but it’s an important, pro-growth, investment policy,” Rauner said. “We shouldn’t tax investment and income, we should tax consumption.”
And…
“A consumption tax hurts hard-working people raising families and living from paycheck to paycheck,” Gov. Pat Quinn said.
I’m not sure how taxes on consumption promote growth, but whatever.
* On the minimum wage and the upcoming referendum…
“I wouldn’t support raising Illinois’ minimum wage without pro-business reforms. I would not support that,” Rauner said.
“There’s only one candidate for governor who supports raising the minimum wage without condition. It’s the right thing to do,” Quinn said.
Discuss.
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Oppo dump
Thursday, Aug 28, 2014 - Posted by Rich Miller
* From the Rauner campaign. Sorry for the length. Blame them. But there is some interesting stuff here…
Over the last week, Pat Quinn has led voters to believe he took decisive action to end patronage hiring at the Illinois Department of Transportation by laying off those who were illegally hired. The State Journal-Register published the list of people who Pat Quinn claims he laid off.
But a review of last week’s Inspector General report, the State Comptroller’s website and state hiring records reveals that dozens of people who were illegally hired by IDOT as “staff assistants” are still working at IDOT and were not part of Quinn’s announced lay-offs.
“This already looks like another broken promise from Pat Quinn,” Bruce Rauner said. “You’ve got to wonder if this is just another charade. Instead of throwing people under the bus, we need a new driver.”
Here’s a look at just three of the dozens of examples:
Employee 201
“Employee 201” Is Identified In The Illinois Executive Inspector General’s Report As The Daughter Of Chicago Alderman Gene Schulter. (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 143)
Monica Schulter, Gene Schulter’s Daughter, Is Identified In Press Accounts As Having Been Hired As A “Staff Assistant” At IDOT. “The hires made under the questionable ‘staff assistant’ process include Monica Schulter, daughter of former Chicago Ald. Eugene Schulter (47th). She was hired as a staff assistant in 2010, and now makes $58,000 as an assistant to IDOT’s top administrator, Ann Schneider. When reached by phone, Monica Schulter declined to answer questions, however Eugene Schulter did.” (Patrick McCraney, “Clout Hiring Persists Under Quinn,” Better Government Association, 8/14/13)
Schulter Does Not Appear On The List Of Illegal Hires Being Fired By IDOT As A Result Of The Inspector General Report. (IDOT Layoffs List, State Journal-Register, 8/27/14)
Schulter Is Still Listed As Being Employed By IDOT. (Employee Salary Database, Illinois Comptroller, Accessed 8/28/14)
Employee 140
“Employee 140” Is Identified In The Illinois Executive Inspector General’s Report As A Former District Scheduler For Congressman Phil Hare Who Left Hare’s Office In March Of 2010. “In addition to the examples discussed above, the OEIG investigation uncovered another Rutan-exempt Staff Assistant, Employee 140, who worked for Congressman Hare immediately prior to joining IDOT. Employee 140 began employment with Mr. Hare in 2007 as a District Scheduler and held that position until March 2010.” (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 75)
Employee 140’s Duties Included Producing Spreadsheets And Planting Trees. “Employee 16 told the OEIG that as a Staff Assistant, Employee 140’s duties included producing spreadsheets and other computer-generated documents and assisting in the Services Development area. In that capacity, Employee 140 planted trees and performed other preventative maintenance tasks.” (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 75)
IDOT Employee Andrew Waeyaert Was Employed By Phil Hare Until March 12, 2010, And Was The Only Hare Employee To Leave In March Of 2010. (Statement Of Disbursements Of The House – January 1, 2010 to March 31, 2010, U.S. House Of Representatives, p. 1266)
Waeyaert Does Not Appear On The List Of Illegal Hires Being Fired By IDOT As A Result Of The Inspector General Report. (IDOT Layoffs List, State Journal-Register, 8/27/14)
Andrew Waeyaert Is Still Listed As Being Employed By IDOT. (Employee Salary Database, Illinois Comptroller, Accessed 8/28/14)
Employee 139
“Employee 139” Was A Former Phil Hare District Scheduler, Hired In March OF 2010, And Was Hired By IDOT Following Hare’s 2010 Loss. “Employee 139’s employment application indicates he began work for Congressman Hare as a District Scheduler in March 2010 and left that position because of Mr. Hare’s 2010 election loss. Employee 139 began employment with IDOT in the Bureau of Personnel Management, but transferred to District 2 of the Division of Highways on March 28, 2011. The Internal Personnel Request authorizing his hire into the Staff Assistant position was signed by former Director of Finance and Administration Matt Hughes and former Bureau Chief of Personnel Management Mike Woods, Jr.” (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 74)
Employee 139 Developed And Implemented Training Classes, And Did Not Perform Duties Listed In The Staff Assistant Position Description. “Investigators questioned Administrative Services Manager for District 2 Employee 16 about the duties Employee 139 performed in Safety and Training after his transfer. Employee 16 stated Employee 139’s duties included developing and implementing training classes. According to Employee 16, Employee 139 did not perform duties reflected on the Staff Assistant position description.” (“In re: Ann Schneider, Gary Hannig, Matthew Hughes and Michael Woods, Jr – OEIG Final Report, Office Of The Executive Inspector General, 8/22/14, p. 74)
IDOT Employee Derek Jones Began Working For Hare On March 15, 2010, And Was The Only Hare Employee To Be Hired In March Of 2010. (Statement Of Disbursements Of The House – January 1, 2010 to March 31, 2010, U.S. House Of Representatives, p. 1265)
Jones Does Not Appear On The List Of Illegal Hires Being Fired By IDOT As A Result Of The Inspector General Report. (IDOT Layoffs List, State Journal-Register, 8/27/14)
Derek Jones Is Still Listed As Being Employed By The Illinois Department Of Transportation. (State Employee Salary Database, Illinois Comptroller, Accessed 8/28/14)
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Rauner doubles down
Thursday, Aug 28, 2014 - Posted by Rich Miller
* Oy…
“General growth”? C’mon. Does he even have a clue about the sky-high rate of growth we’d need to cut $8 billion in taxes and raise spending on education, infrastructure, IDNR and any other ideas he comes up with?
And if he’s gonna cut lots more than the few million he’s already proposed, then we at least deserve an outline about what he’ll be targeting.
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Back in the news
Thursday, Aug 28, 2014 - Posted by Rich Miller
* Remember the story I posted not long ago about how a guy had thoroughly bamboozled Springfield’s top lobbyist, Gov. Pat Quinn, House Speaker Michael Madigan, David Axelrod’s son and many others? Well, that guy was indicted yesterday…
A Chicago man fraudulently raised $160 million from Chinese nationals who invested in his purported plan to build a convention center complex with hotels near O’Hare International Airport, the U.S. attorney’s office in Chicago announced Wednesday.
Charges were lodged Wednesday against Anshoo Sethi, 30, who was the founder and managing member of A Chicago Convention Center LLC, which told investors it planned to build a hotel and convention center on 3 acres of land east of O’Hare.
The indictment alleges that between January 2011 and February 2013, Sethi defrauded 290 Chinese investors and deceived the U.S. government in its review of visa applications through false statements and representations.
According to the indictment, foreign nationals may obtain a certain kind of visa if they invest money in domestic projects. Sethi solicited Chinese investors interested in obtaining this visa to invest at least half a million dollars apiece, plus a $41,500 administrative fee.
* Around 10:30 this morning, I received this e-mail from the Cheri Bustos campaign…
BREAKING NEWS: Bobby Schilling’s Controversial “Visa for Sale” Program Dominating Illinois Headlines with Indictment
Last night, a high profile indictment for fraud involving Bobby Schilling’s controversial “Visa for Sale” program was filed. Schilling himself has also been recently scrutinized for using his influence as a former Member of Congress to cash in big, selling U.S. residency to wealthy foreign nationals.
The release referenced an earlier Bustos release…
After getting elected thanks to the help of executives that get rich off of wealthy foreign investors, ex-Congressman Bobby Schilling stood up in support of the controversial “Visa for Sale” program. Now he’s making a six-figure salary working for the same executives that helped him get elected.
“If this is what Bobby Schilling means by ‘leading by example,’ then what should Illinois working families expect next?” said Jeremy Jansen, Bustos’ Campaign Manager. “Schilling not only voted to give tax breaks to corporations shipping Illinois jobs overseas and fled a public meeting with workers whose jobs are now in China, but after losing re-election Schilling walked out of Congress into a six-figure job selling American visas to wealthy Chinese investors that pay hundreds of thousands of dollars to game the immigration system.”
* Schilling’s campaign responded a few moments ago…
Cheri Bustos Steps In Cowpie
Bustos co-sponsored a bill in January that would make EB-5 program permanent
Clumsy attempt to change subject backfires
Bustos campaign melting down in desperate bid to divert attention from
Bustos’ broken promise to give back 10 percent of her salary
EAST MOLINE, Ill.—Congresswoman Cheri Bustos (D-East Moline) lashed out mindlessly today by attacking Bobby Schilling (R-Colona) for supposedly “selling visas.” The EB-5 program that Bobby Schilling’s employer, CMB Regional Centers, operates under is renewed by Congress every three years, and this past January, Congresswoman Cheri Bustos co-sponsored legislation to make the EB-5 program permanent. How’s that for hypocrisy?
H.R. 15, the Border Security, Economic Opportunity, and Immigration Modernization Act, has nearly 200 co-sponsors in Congress, including Congresswoman Cheri Bustos. The bill “makes the EB-5 visa regional center program permanent.”
Yes, you read that correctly—today Cheri Bustos lashed out against a program she co-sponsored. The program has incredible bipartisan support and even includes support from Bustos’ mentor, U.S. Senator Dick Durbin (D-Illinois).
The EB-5 program does the exact opposite of outsourcing jobs. For far too long, American wealth has been invested overseas, creating jobs in countries all over the world. The reason Senator Durbin and others in Congress support the EB-5 program is to lure foreign investment to the United States, creating new American jobs here at home.
Under the EB-5 program, CMB Regional Centers in Rock Island has helped create more than 90,000 new American jobs and helped add more than $7 billion in economic activity to rural and high unemployment areas throughout the United States of America.
Bustos’ claim that the program is “selling visas” is ridiculous because selling visas is illegal. It seems Bustos’ desperate campaign doesn’t know much about her record in Congress because today they attacked a U.S. government program that Congresswoman Bustos has passionately supported by co-sponsoring a bill in Congress to make the EB-5 program permanent.
Cheri Bustos cannot have it both ways. If she thought the EB-5 program was a bad idea, she should not have sponsored legislation to make it permanent. Either she thinks the voters of Illinois are not paying attention, or she thinks we are too stupid to notice that she is lambasting a program she has previously supported for political gain. Clearly her sudden revelation that the EB-5 program is a work of evil is politically motivated by her need to change the subject from her broken promise to give back 10 percent of her congressional salary.
Schilling campaign manager Steven Shearer commented, “One wonders what caused Cheri Bustos to make another unforced error of this magnitude. Out here in farm country it’s called stepping in a cowpie.”
And it’s not even September.
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Question of the day
Thursday, Aug 28, 2014 - Posted by Rich Miller
* The Chicago Tribune editorial board took a look at the reporting on the NRI and IDOT messes and concluded…
The governor’s spokespeople invariably use the words “zero tolerance” to defend his response to the unfolding disasters.
Besides replacing Schneider at IDOT, Quinn has ordered the agency to abolish the “staff assistant” position. Last week, IDOT fired 58 people whose jobs were improperly classified and created a merit board to oversee hiring.
Quinn also signed legislation meant to toughen the rules governing state grants and prevent some of the problems that occurred with his own bungled anti-violence program. And he ordered all state agencies to cooperate with investigators.
Quinn took those actions as the headlines and audits and subpoenas exploded around him. That’s not zero tolerance. It’s CYA.
* The Question: “Zero tolerance” or “CYA”? Take the poll and then explain your answer in comments, please.
surveys
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* Bruce Rauner was asked yesterday whether he thought that education should receive more money from the state. His response…
“I do believe it should have a higher percentage coming from the state, yes I do.”
* He also said this…
“We should have billions of dollars every year as part of our budget process…(to) maintain and expand our infrastructure,” Rauner said.
Rauner said he can do this by ending diversions from the Road Fund. However…
The state puts gasoline taxes and vehicle fees into the road fund. Last year, a state audit found that $1.5 billion was diverted from the road in the 2012 budget year. Auditors, however, cited as diversions such items as $419 million in debt payments to cover previous construction projects as well as millions of dollars more salaries and benefits for workers involved in related project work.
In addition, $26 million in subsidies for the state’s Amtrak routes and nearly $18 million for the Regional Transportation Authority to cover reduced fares came out of the road fund that year.
* And, of course, there was his pledge this month to increase funding for IDNR.
And he’s gonna do all that how? By slashing taxes, of course.
Right.
Tell me another fairy tale.
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Frackers loving them some Bruce
Thursday, Aug 28, 2014 - Posted by Rich Miller
* This probably shouldn’t be a surprise. Kurt Erickson…
But with the rules for fracking still not finalized, oil producers, drilling companies and geologists who work in the industry are shunning the governor and putting their money behind the gubernatorial campaign of wealthy Republican businessman Bruce Rauner.
On July 9, dozens of oil company officials attended a fundraiser for the Republican at a Mount Vernon restaurant.
Records show the political newcomer netted nearly $240,000 for his stop at the Rare Chop House that day, with most of the largesse coming from companies that have been waiting for the state to get the permitting process up and running. […]
Nelson Wood, a Mount Vernon-based oil producer who co-hosted the fundraiser, said his colleagues are tired of being idle.
“We just think Bruce Rauner will be the better choice. There’s a lot of consternation out there,” Wood said Wednesday. “The governor should have gotten this going a year ago.
With all these delays, their frustration is totally understandable.
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* His opponent is already on the air. Announcement…
U.S. Rep. Rodney Davis’ (R-Ill.) campaign today released its first television ad for the 2014 general election.
The ad, titled “Coach”, once again features Davis’ football team, the same players, including his twin boys, he’s been coaching for nearly 10 years. In the ad, Davis talks about his success in coaching a winning football team at home, and the need to change Washington to get things done for the families of central and southwestern Illinois.
In Washington, Rep. Davis is a part of the No Labels Problem Solvers and has been named to the “Governing Caucus”, a coalition of 30 House Republicans willing to join a majority of House Democrats to pass major legislation, by the National Journal. Additionally, in the National Journal’s 2013 Vote Ratings, Davis was ranked the 220th most liberal and the 212th most conservative House member.
The ad begins today.
* Ad…
* Script…
I’m Rodney Davis.
As your Congressman, I’ve had the honor of being part of a team that’s working hard, and getting results.
I’m of course talking about the football team I coach when I’m home every weekend. Go Tornadoes!
As far as DC goes, the only thing they’re good at is creating problems.
I’m working to change that…
…to get things done for hardworking taxpayers…and the next generation.
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Caption contest!
Thursday, Aug 28, 2014 - Posted by Rich Miller
* Illinois Review…
On August break, Illinois Congressman Aaron Schock and representatives of the Global Poverty Project in New York visited with USAID/India representatives, who led a tour of sanitation improvements in a Delhi slum settlement Tuesday. The location is one of 200 slum settlements throughout India being supported by Health of the Urban Poor activities that provide water and sanitation improvement and awareness at Chanakyapuri.
Schock also met with India’s new Prime Minister Shri Narendra Modi…
I spoke to a group of contractors last week in Peoria. Schock spoke after me, so I stuck around. He gave some incredibly thoughtful answers to some difficult questions that went beyond the usual Beltway Speak crud.
Anyway, I thought you might wanna know that before you begin your humorous rants. Not that it will probably matter anyway, but, you know, just sayin…
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Today’s number: 9 percent
Thursday, Aug 28, 2014 - Posted by Rich Miller
* William Lazonick in the Harvard Business Review…
Five years after the official end of the Great Recession, corporate profits are high, and the stock market is booming. Yet most Americans are not sharing in the recovery. While the top 0.1% of income recipients—which include most of the highest-ranking corporate executives—reap almost all the income gains, good jobs keep disappearing, and new employment opportunities tend to be insecure and underpaid. Corporate profitability is not translating into widespread economic prosperity.
The allocation of corporate profits to stock buybacks deserves much of the blame. Consider the 449 companies in the S&P 500 index that were publicly listed from 2003 through 2012. During that period those companies used 54% of their earnings—a total of $2.4 trillion—to buy back their own stock, almost all through purchases on the open market. Dividends absorbed an additional 37% of their earnings. That left very little for investments in productive capabilities or higher incomes for employees.
“Very little” would be 9 percent.
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* From a press release…
Just in time for Labor Day weekend, Quinn for Illinois released a new television ad highlighting Republican billionaire Bruce Rauner’s cruel proposal to cut the minimum wage, which would take $2,000 dollars a year out of the pockets of workers. The new ad hits airwaves this morning.
“What kind of man would do that?” the narrator asks.
The answer is Rauner, who during the Republican primary proposed a $1-per-hour cut to the state’s minimum wage, which he said would make Illinois “competitive.”
Using business practices that included massive layoffs, outsourcing jobs overseas and even outright fraud, Mr. Rauner has amassed incredible riches, including $53 million in 2012 alone.
* The ad…
Working on getting the script.
*** UPDATE 1 *** Rauner campaign response…
Pat Quinn released a new television advertisement today falsely claiming that Bruce Rauner wants to cut the minimum wage.
Fact Check:
Bruce Rauner’s Jobs and Growth Plan includes a component on how to raise the minimum wage:
“Rauner Reforms: To provide working families and teens relief from Pat Quinn’s economic policies, the state of Illinois should implement a phased-in minimum wage increase, coupled with workers’ compensation and lawsuit reforms to bring down employer costs.This strategy will ensure that businesses can succeed while at the same time providing more economic opportunity for thousands of Illinois residents.” (Bring Back Blueprint: Jobs and Growth Agenda, p17)
The Chicago Tribune published an op-ed written by Bruce Rauner on how to raise the minimum wage:
Raising the national minimum wage would raise the level in Illinois and in our neighboring states, eliminating our competitive disadvantage. I support that.
Without action from Washington, I would favor increasing Illinois’ minimum wage if we also adopt creative solutions to avoid further damage to our state’s already shattered business climate. That can be done by providing incentives to small businesses to help offset the added costs. It can be done through workers’ compensation reform, tort reform and elimination of other impediments to job growth. (Bruce Rauner, “How to Raise the Minimum Wage,” Chicago Tribune, 1/9/14)
*** UPDATE 2 *** Man, Rauner really has a lot of extra staff…
Looks like Quinn both “outsourced” his stock photos to other states and Canada and used people who don’t have minimum wage jobs (server room technician)
Woman at coffee shop: http://www.gettyimages.ca/detail/photo/coffee-shop-and-cafe-in-high-falls-called-the-last-royalty-free-image/164420051 NOTE: this photo is from a coffee shop in High Falls, NY
Man in front of computers: http://www.gettyimages.com/detail/photo/proud-server-room-technician-high-res-stock-photography/488217717
Photographer is Seattle based http://www.jettaproductions.com/models
“We shoot on location in the Seattle/Tacoma/Kitsap Peninsula areas”
Cashier at hardware store: http://www.istockphoto.com/photo/cashier-at-hardware-store-15121609
Photographer is Canadian: http://www.istockphoto.com/profile/lsophoto
Woman behind reception desk: http://www.gettyimages.com/detail/photo/portrait-of-woman-behind-reception-desk-high-res-stock-photography/140967517
Photographer is from NYC: http://www.allisonmichaelorenstein.com/#/profile
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Now, that’s a lede
Thursday, Aug 28, 2014 - Posted by Rich Miller
* I don’t know Kim Geiger at the Tribune, but I sure like her style. Check out this lede…
State Sen. Jim Oberweis, who won the Republican primary for U.S. Senate this year without facing his opponent in a single televised debate, found himself on the other side of that issue Wednesday as Sen. Dick Durbin agreed to meet him in just one TV debate before the Nov. 4 election.
She put that relevant and admittedly zinging context right up top. Good stuff. More…
It was not long ago that Oberweis, himself fairly well-known in Republican political circles, rebuffed invitations to debate his primary opponent, first-time candidate Doug Truax. Oberweis and Truax met for only one debate, which was not broadcast beyond the retirement community where it took place.
Oof.
* But, Sen. Durbin really ought to agree to more than one televised debate. C’mon, dude, you’re a big boy. Start acting like it…
Oberweis, a Republican businessman from Sugar Grove, had proposed seven televised debates between himself and Durbin, a veteran lawmaker and the Senate’s second-ranking Democrat.
Durbin’s campaign countered by offering what it described as four joint appearances, including one TV debate, a radio debate, a meeting with the Chicago Tribune Editorial Board and a candidate forum with downstate farmers.
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* Keep in mind two things when reading this Insurance Journal article about the governor’s veto of the ridesharing bills: 1) The ridesharing bills passed both chambers with huge, veto-proof majorities; and 2) The insurance industry is quite powerful in this here state…
HB 5331 would have required rideshare dispatchers to “carry commercial liability insurance in the amount of $350,000 combined single limit per accident.”
HB 4075 would have provided that the private passenger auto “insurer of a motor vehicle used in a commercial ridesharing arrangement may deny coverage during the time the vehicle is made available for dispatch or used in a commercial ridesharing arrangement.” It also would have required that commercial rideshare drivers and vehicle owners be made aware of that provision. […]
The Illinois Insurance Association and the Property Casualty Insurers Association of America said they are disappointed about the veto of the bills, which they say would have protected consumers by closing the gaps in insurance coverage that leave drivers, passengers and the public vulnerable if an accident occurs.
“PCI is deeply disappointed in this veto because it is vitally important that the vehicles used by commercial ride-sharing services are properly insured and the public is protected,” Jeffrey Junkas, Illinois regional manager for PCI, said in a statement released by the organization. “These bills sought to create a comprehensive, uniform statewide approach to protecting consumers and provided a firm foundation for innovation. They offered clear insurance rules that don’t leave policyholders or accident victims in the lurch because of coverage disputes. They also would have helped to avoid the creation of a confusing and costly patch work of local regulations.”
Kevin Martin, executive director of the IIA, said his group welcomes new transportation choices but that “consumer safety is of utmost concern. We supported the provisions in the state house bills as they would have helped to prevent all Illinois drivers from subsidizing the riskier driving activities of a small number of drivers and the companies that facilitate these programs.”
However, the bill’s House sponsor is Rep. Mike Zalewski, an ally of Mayor Rahm Emanuel, who wanted the veto. If Z sides with Rahm, then the bills might not even be called for override votes.
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Question of the day
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Libertarian Party gubernatorial candidate Chad Grimm…
* The Question: Caption?
…Adding… I’m not sure anyone will surpass the first comment by “too obvious”…
To Rauner campaign. Hands up. Don’t shoot.
I may just give him/her an award for that one.
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Fun with numbers
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Paul Vallas released a report today on what could happen to individual school district funding if the income tax hike is rolled back all at once…
He says if Rauner rolled back the income-tax increase, public schools would see a $4 billion-a-year loss in state revenue. That’s because the income tax increase brings in $8 billion a year and education makes up half of the discretionary part of the budget. […]
Rauner campaign spokesman Mike Schrimpf says the numbers Vallas uses “are just made up.”
He says even though Quinn raised the tax 67 percent in 2011, he cut school spending by $500 million. He says Rauner will “fully fund our schools.”
OK, they’re both wrong. Rauner has recently said he’d gradually roll back the tax hike, not do it all at once. [ADDiNG: The release, which I didn’t get, acknowledged the roll back, but there likely will be some revenue gains over the years and other budget priorities could come into play, so to state categorically that it’s a $4 billion cut isn’t quite Kosher] And Schrimpf is obviously making up numbers because there’s no way Rauner can avoid cutting school funding if that tax hike is rolled back over four years. Unless, of course, he wants to start skipping pension payments again.
By the way, back in the day, George Ryan removed state pension payments from the definition of state school funding. That, in retrospect, was a big mistake. You can’t have schools without teachers, and you can’t have teachers without pensions. If you include pension funding, spending on education has, indeed, increased.
…Adding… From the IFT…
In response to an analysis of Bruce Rauner’s funding plan for education released by Governor Pat Quinn today, Illinois Federation of Teachers (IFT) President Dan Montgomery noted that Rauner’s approach completely ignores the most critical issue of school underfunding.
“Bruce Rauner’s so-called budget was not designed with students in mind,” said Dan Montgomery, President of the IFT and a high school English teacher for eighteen years. “Unsurprisingly, he claims to support working families, but his plan fails to address the fact that Illinois schools are some of the worst funded in the nation. Aside from his empty, feel-good TV commercials, he has no explanation or problem with blowing an $8-billion dollar hole in the state budget and forcing layoffs, larger class sizes, and devastating cuts to our public schools. Strong schools begin with strong investment, and Rauner’s proposals would decimate public education as we know it and force communities to raise property taxes just to keep the doors open.
“As educators, we know best what students need and parents want – high-quality neighborhood schools with libraries, support services, and experienced teachers who are fixtures in the communities they serve. The only candidate committed to these families is Governor Quinn.”
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Teamsters want fired IDOT workers spared
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Bernie…
Lawyers representing Teamsters Local 916 said Tuesday they want 55 members of the union who were put in Illinois Department of Transportation jobs as staff assistants under a process criticized by a state inspector general’s report to be able to continue working for the agency. […]
Carl Draper, another lawyer representing the Local 916 employees, said Tuesday that the inspector general’s report showed that IDOT “used an expedient path to hire people for work they needed to have done,” and the employees shouldn’t be punished.
“I don’t understand, and the Teamsters certainly don’t understand, why their members are the ones who have to pay the price for what the OEIG (Office of Executive Inspector General) characterizes as unlawful conduct by high-ranking IDOT officials,” Draper said. He said the report showed “no criticism that these employees were doing anything other than the work that was assigned to them. … The Teamsters are looking for a way to protect the employees from becoming the scapegoat for the improper conduct either of the governor or the secretary of transportation.
* The full list is here. Back to Bernie…
Among the people on the list to be dismissed is Kathleen Vehovic, who works in Springfield and makes $50,184 annually. Her father, Todd Renfrow, a one-time chairman of Sangamon County Democrats, said she is a registered nurse and her duties at IDOT are related to that field.
Also on the list is Elizabeth Haskins of Effingham, who is listed as making $51,696 annually. She is sister-in-law of Ellen Schanzle-Haskins, who is now retired and was chief counsel to IDOT in Springfield. […]
Another person listed is Cori Pickett, who makes about $50,200 at a Springfield job. She is daughter of Mike Stout, who left a job as director of IDOT’s traffic safety division at the end of 2011.
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Rahm reverses course, Voices backs wage hike
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Mayor Emanuel refused to say earlier this month whether he’d push to raise Chicago’s minimum wage if the state raises its minimum wage. Yesterday, he changed his tune…
Mayor Rahm Emanuel said Tuesday that he would push aldermen to raise Chicago’s minimum wage to $13 an hour no matter what Springfield lawmakers do on the issue this year.
Previously, the mayor had declined to say whether the city would move ahead with its own higher minimum wage even if state lawmakers raised the statewide minimum wage to $10 after the November election.
“Illinois should do it, and when Illinois does it, we’re going to take the steps necessary to get us to the $13 here in the city of Chicago, because it’s relevant to making sure work pays and making sure people can afford to live in the city of Chicago,” Emanuel said at a news conference about Chicago public high school graduation rates.
* More…
“I’m committed … to seeing an increase in the minimum wage so people can afford to live in Chicago. And more importantly than living in Chicago, which is very important to me, is making sure that, if you work, a child is not raised in poverty.”
One day after joining Quinn and Vice-President Joe Biden at a roundtable on the minimum wage issue, Emanuel noted that 400,000 Chicagoans, “mainly mothers,” stand to benefit from a $13-an-hour minimum wage that would help them “meet their obligations” to their children.
* Meanwhile, Voices for Illinois Children has released a report supporting a hike in the minimum wage…
Raising the minimum wage to at least $10.10 an hour would benefit an estimated 1.1 million Illinois workers — over 20 percent of Illinois’ workforce — and nearly one in five Illinois children (about 583,000) who have a parent who would earn higher wages. On average, parents who would benefit from an increase are responsible for a majority of their families’ income. Raising the minimum wage would boost total family income, helping these families who work hard and struggle to get by on low wages the afford basic necessities.
Children in families with enough income to cover basic necessities are healthier, have more success in school, and earn more as adults. In contrast, children whose families struggle economically are more likely to experience harmful levels of stress, more likely to struggle in school, and more likely to have health problems than their peers. By raising the minimum wage, more working families would be able to meet their children’s basic needs, reducing the adverse effects of poverty on child well-being. […]
Workers who would benefit include both those who currently earn between $8.25 and $10.10 an hour (over 700,000 men and women), as well as those who currently earn a wage at or slightly above $10.10 an hour (about 400,000 workers). Many in the latter group would benefit because employers often raise wages in order to maintain a “wage ladder” for different job levels, economists have found. Of workers who would benefit, 56 percent are women, and a majority is at least 30 years old. Over 50 percent of benefiting workers work full-time (at least 35 hours a week), and nearly half have at least some college experience
* Dot points…
• 86 percent are at least 20 years old, and about 35 percent are at least 40 years old,
• more than one third are married, and about one in four have children, and
• almost 90 percent have at least a high school diploma, and 55 percent have at least some college education.
The report also cites studies which purport to show that minimum wage increases aren’t job killers.
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Fracking regs to be released Friday
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Tribune…
Long-anticipated rules that would govern a new fracking industry in Illinois, are expected to become public Friday.
Those rules could be approved as early as next month, opening the door to oil and gas drillers to apply for permits to begin drilling the state’s shale rock in search of oil reserves. Lawmakers are hoping that an oil boom in the southern part of the state will fatten state coffers with oil revenue and bring jobs to a struggling downstate economy.
The Illinois Department of Natural Resources has been sifting through more than 35,000 comments that were launched at its first draft of the rules, which were based on legislation passed more than a year ago. It faces a November deadline to structure the law.
State Sen. Don Harmon, D-Oak Park, co-chairman of the Illinois Legislature’s Joint Committee on Administrative Rules, said IDNR has said it expects to drop the rules off with the committee Friday. The obscure committee’s approval is the final step in a multi-year effort to regulate horizontal hydraulic fracturing in Illinois, defined as 80,000 gallons of fluid or more injected into underground rock formations to extract oil and gas.
* Attorney Lawrence Falbe thinks there could be a large number of anti-fracking protesters at September’s JCAR meeting, and told me this…
While this puts fracking back in the news, which I think many people think Quinn has been trying to avoid by having IDNR slow-walk the regulations, the fact is that even if JCAR approves the regs at its September meeting, there is still a long way to go before any drilling actually occurs, since very detailed information must be included in the permit applications and will take time to compile, and it’s very likely objectors will force public hearings on at least the first batch of permits.
There will probably be a lot of attention on JCAR and its members, and how they approach this, but it’s pretty much out of Quinn’s hands at this point, so it will be interesting to see if he still gets heat from the enviros.
* And this is from a memo penned by Falbe and a colleague for clients…
The end result of this is that final fracking regulations reasonably should be expected to be approved and in place by mid-October. That means the process of accepting permit applications and issuing permits can then begin. However, as both the statute and the regulations provide, any company wishing to submit a permit application must register 30 days before submitting the permit request. Moreover, those planning to apply for a permit should also anticipate having to defend objections to the permit in a public hearing, which can be demanded by objectors to such a permit after meeting some fairly minimal standards to show potential harm, should the permit be issued.
In summary, the regulation of fracking in Illinois has been a long and convoluted process, but there is now light at the end of the tunnel. Significant hurdles will still need to be overcome by those who seek permits, as the fracking objectors are poised and ready to repeat their onslaught against the first group of permit seekers. Carefully crafting a robust permit application, supported by sound science and expert testimony, and preparing a persuasive public hearing presentation that will withstand and refute the expected objections, will be the next challenge faced by permit seekers in Illinois.
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Making the big banks pay
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* From last week…
Attorney General Lisa Madigan today announced a record $300 million settlement with Bank of America over of the bank’s misconduct regarding risky mortgage-backed securities.
The settlement includes $200 million in relief to fully recover for losses incurred by Illinois’ pension systems and $100 million in consumer relief.
The agreement is part of a national settlement forged by the U.S. Department of Justice and also joined by attorneys general from California, Delaware, Massachusetts, New York and Kentucky. The settlement includes recoveries for RMBS issued by Countrywide and Merrill Lynch, both of which were acquired by Bank of America.
“This settlement resolves the fourth enforcement action I have brought against Bank of America to fight the widespread fraud that was at the root cause of the economic crisis,” said Madigan. “Bank of America, and in particular Countrywide, were major players in virtually every aspect of the market that caused the crisis, from shoddy loan originations and discriminatory lending to African Americans and Latinos to fraudulent marketing of mortgage-backed securities.”
The settlement with Bank of America stems from an investigation by Madigan’s office that revealed that between 2006 and 2008 the bank failed to disclose the true risk of RMBS investments to Illinois’ pension systems and therefore misled the systems when they invested in the RMBS market. […]
Madigan has reached similar agreements with JPMorgan Chase & Company for $100 million to Illinois’ pension systems, and with Citigroup for $44 million to the state’s pension systems and an additional $40 million in consumer relief.
* The Nation has a very long, detailed story about that JPMorgan Chase settlement…
In the end, the abject fear of Ben Wagner got Jamie Dimon to cave.
For much of 2013, Dimon, the chairman and chief executive of the formidable JPMorgan Chase & Company, was telling anyone who would listen that it was unfair and unjust for federal and state prosecutors to blame him and his bank for the manufacture and sale of mortgage-backed securities that occurred at Bear Stearns & Company and at Washington Mutual in the years leading up to the financial crisis. When JPMorgan Chase bought those two failing firms in 2008, Dimon argued, he was just doing what Ben Bernanke, Hank Paulson and Timothy Geithner had asked him to do. Why should his bank be held financially accountable for the bad behavior at Bear and WaMu?
It was a clever argument—and wrong. Dimon’s relentless effort to spin his patriotic story soon collided with the fact that Wagner, the US Attorney for the Eastern District of California, had uncovered evidence that JPMorgan itself was guilty of many of the same greedy and irresponsible behaviors. Piles of subpoenaed documents and e-mails revealed that JPMorgan bankers and traders had underwritten billions of dollars’ worth of questionable mortgage-backed securities that Dimon had been telling everyone had originated at Bear Stearns and WaMu. Worse, the bad behavior had occurred on Dimon’s watch.
The likelihood that the Justice Department would file Wagner’s civil complaint last fall—exposing publicly for the first time the litany of wrongdoing at JPMorgan and threatening to push it off the perch that Dimon had so artfully constructed for it over the years—ultimately brought Dimon to the table. On September 26, just weeks after the Justice Department shared a draft copy of Wagner’s complaint with Dimon, the two sides arranged for a summit meeting between Dimon and Attorney General Eric Holder. By mid-November, the bank had agreed to pay $13 billion in a comprehensive settlement of mortgage-related securities claims with various branches of the federal government and a group of states, led by the attorneys general of New York, California, Illinois, Massachusetts and Delaware.
It was the largest financial settlement of all time, and it kept Wagner’s complaint away from the prying eyes of the public. One thing is clear: Dimon’s claim that his own bankers and traders had done nothing wrong in the years leading up to the financial crisis wasn’t true. “The investigators and the lawyers were uncovering very viable evidence,” explains Associate Attorney General Tony West, who headed up the settlement negotiations on behalf of the Justice Department. “I think there was recognition that we had enough evidence there that would support the complaint and would support a robust lawsuit.”
Go read the whole thing. Whew.
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Quinn vetoes another speed limit bill
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* Tribune…
Gov. Pat Quinn [yesterday] vetoed a measure that would have raised the maximum speed limit on Illinois’ tollways to 70 mph from the current 65 mph, citing safety concerns.
“Recent evidence shows that drivers already travel at excessive speeds on Illinois toll highways,” Quinn said in his veto message to lawmakers.
The governor said a tollway study of drivers on Interstate 94 in Lake County last year found 71 percent of them exceeded the posted limit by 15 mph or more. Another tollway study found between 91 percent and 98 percent of drivers on seven different tollway segments exceeded the speed limit from 11 mph to 15 mph during off-peak hours, he added.
Quinn signed a law last year that raised the Interstate speed limit to 70 mph. That bill applied mostly to rural areas. And the tollway limit bill’s sponsor (like the Interstate bill and the trucker speed limit bill that Quinn also vetoed this summer) is GOP US Senate candidate Jim Oberweis. So, one win is enough, I guess. And no wins can be allowed in an election year.
But I’m sure the veto was all about safety.
/snark
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Missing the point
Wednesday, Aug 27, 2014 - Posted by Rich Miller
* I suppose the biggest news in this Dan Mihalopoulos column is that the Illinois Republican Party no longer believes that sending armed private investigators to the homes of Libertarian Party petition signers and gatherers was a good idea…
On Tuesday, though, the state party’s spokesman provided this “updated” statement: “We do not support the practice of any investigator wearing a firearm while verifying petition signatures. If even one person felt intimidated, that’s unacceptable.”
Well, that’s heartening. A bit on the late side, but heartening.
* And he finally got the Rauner campaign on record…
“Bruce wants as many people engaged in the political process as possible,” Rauner spokesman Mike Schrimpf said in an e-mail. “Bruce has no knowledge of these alleged activities, and if they are true, he strongly denounces them. Bruce doesn’t agree with any form of voter intimidation.”
* And, like the comment section here, he found a handful of direct ties to various players, including the private security firm, which is owned by a member of the GOP State Central Committee who is a big Rauner supporter. A notary used in the effort to kick the Libertarians off the ballot is also a member of Rauner’s staff. His conclusion…
It’s not enough for Rauner to say he was blissfully unaware of what was being done on his behalf. Not when those efforts involved many people he knows well, people he has relied upon heavily in what he says is a campaign to clean up Illinois politics.
But no mention at all that the governor has called for state and federal investigations into the alleged intimidation? I don’t get it. That’s serious news. Every time Rauner talks about how this or that is corrupt, the media’s all over it. But not on this?
* The Quinn campaign’s latest response…
“When it comes to his own campaign’s use of voter intimidation with guns right under his nose, again we see Bruce Rauner choosing to hear no evil and see no evil.
“Mr. Rauner’s previous claims that he was not linked to the individuals involved in these actions have turned out to be untrue. Even more alarming, Mr. Rauner is directly linked to the individual carrying out voter intimidation with guns.
“As we’ve said before, these are serious matters that should be investigated by the State Board of Elections, Cook County State’s Attorney, and the U.S. Department of Justice Civil Rights Division.”
“What happened in Oak Park was unacceptable. No voter should be intimidated from making their voice heard as part of the political process.
“If this is how Mr. Rauner is going to run his campaign, what does this say about how he’s going to run the state of Illinois?”
* Again, we have allegations of armed voter intimidation, coupled with a call from the governor for law enforcement action and nobody covers it?
Especially when coupled with statements like this…
[Illinois Republican Party Chairman Tim Schneider] wasn’t divulging details, but did say the party is identifying areas to keep an eye out for voter fraud.
“I’m not going to open up my playbook, but I will tell you that we will have a significant voter-integrity program,” he said.
And this…
I was provided video by RIKEESHA PHELON, Illinois spokeswoman for the Democratic Governors Association, of Republican gubernatorial candidate BRUCE RAUNER at a Nov. 23 term limits town hall meeting in Elmhurst. Rauner appeared there with Chicago-area radio talk show host and former U.S. Rep. JOE WALSH, R-McHenry.
An audience member asked, “How do we make sure that those who love (President Barack) Obama don’t vote six, seven, eight, 10 times?” He wondered how Rauner could win, given that the system is “so corrupt.”
“Fair point,” Rauner responded, adding, “We have a massive voter fraud, voter-integrity issue in Illinois. That’s just true.” He said there should be “rigorous accountability controls inside our voting process to try to bring back integrity. We need identification checking. We need poll watchers.”
Rauner also he would be “driving another initiative, and raising money for that as well, and volunteers around the state to bring a voter-integrity process to our next election cycle and put it in place for the future.”
That video is here.
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* Illinois isn’t alone by any means. From the Washington Post…
In a midterm election season when control of the United States Senate hangs in the balance, Democrats are increasingly turning to ballot measures to get otherwise reluctant voters to the polls.
Big Business is, too: Some of the most expensive races in the country this year will be ballot measures written by, and for, major corporations. Some the hardest-fought ballot battles of 2014 won’t involve candidates at all. They’ll be questions that come with big implications for corporate bottom lines — or promise big benefits to political strategists, especially Democrats, looking to drive turnout for other races.
For the first time in history, spending on the approximately 125 ballot questions facing voters in 41 states is likely to top $1 billion in campaign spending this year — and perhaps much more: Oil and gas companies in Alaska spent more than $170 for every vote they won in a successful campaign to reject higher taxes earlier this month.
* Spending this year is expected to vastly exceed 2012’s billion dollars…
WaPo also has a great interactive map. Go check it out.
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* From a press release…
Former Chief Judge and Congressional challenger Ann Callis today released the first ad of the general election, “Good Guys.” The ad highlights Callis’ pledge to fight for the people who make our communities stronger and safer, including teachers and soldiers.
“From the beginning, this campaign has been about standing with the men and women in Illinois who are working each day to make our communities stronger and safer. As the mom of a teacher and an Army Ranger, this fight is personal for me. While my opponent is a political insider who hires lobbyists and fights to protect his Congressional perks, I’ll never forget that Congress should work for the people who we have the honor to serve,” said Callis.
As a proven judicial reformer, Callis has made reforming Washington a central focus of her campaign, launching her Congressional Reform Agenda in response to Congressman Davis’ continued defense of taxpayer-funded perks, lobbyists on his payroll, and the “do nothing Congress.”
* [Oops. Somehow the code got left out when I hit the publish button.] The TV ad…
* The script…
(CALLIS): It’s easy to spot the good guys. They put others first. Defend us. And teach our kids.
But these days in Washington, they finish last. Medicare, education and veterans get cuts, but it’s perks for politicians and tax breaks for CEOs. I’m Ann Callis. I approve this message. As the mom of teacher and an Army Ranger, looking out for the good guys isn’t just the right thing to do. For me, it’s personal.
* NRCC Spokeswoman Katie Prill plays the class warfare card…
“Ann Callis is trying to fool Illinois families into thinking she is concerned with helping the middle class. Callis has lived a life of privilege and has benefited from her wealthy father’s status in Democrat politics her entire life. When Callis says she will look out for the good guys, she really means she will fight for the elite of the Democrat party and no one else.”
*** UPDATE *** Coincidentally, this is from today’s Tom Kacich column in the News-Gazette…
Davis spokesman Andrew Flach said the Republicans don’t plan to highlight Callis’ wealth.
“If that’s an issue, it will be up to the voters to decide,” he said.
That’s probably a good idea, said David Yepsen, director of the Paul Simon Public Policy Institute at Southern Illinois University-Carbondale, and the former chief political writer at The Des Moines Register. Part of the calculus for the Davis campaign, he noted, is that Bruce Rauner, who is far richer than Callis and her husband, is at the top of the Republican ticket.
“It will be difficult for the Republicans to make that attack because they don’t want to be shooting at her and hitting Rauner. They’d have to be careful how this is done,” Yepsen said. “If the campaign moves in that direction, it could just confuse voters.”
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* There’s much, much more to this Matt Levine piece in Bloomberg, so you should really read the whole thing. But this’ll do for now…
For instance, if you are a drug company, it costs you like a dollar to make a pill, and you sell it in the U.S. for $10,000. You might say, “well OK then I have $9,999 of net income in the U.S.,” but again you are being naive. The right answer is:
* Your U.S. subsidiary makes a pill for $1.
* Your U.S. subsidiary licenses the patent on that pill from your Bermuda subsidiary for $9,995.
* Your U.S. subsidiary sells the pill for $10,000.
* Your U.S. subsidiary has $4 of net income, which is taxable.
* Your Bermuda subsidiary has $9,995 of net income, which is not.
It’s more complicated than that, but that’s the general idea. If the parent company is a U.S. company, then eventually that Bermuda sub’s net income will be taxable in the U.S. anyway. But if the parent company is Canadian or Dutch or Swiss or whatever, then the Bermuda sub’s income will never be taxed [by the US].
Again, go read the whole thing.
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