*** UPDATED x2 *** Careful what you wish for
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* From a press release…
On Friday, March 20, State Representative Ron Sandack (R-Downers Grove) will formally present his House Bill 298, which would allow Illinois municipal governments to seek bankruptcy protections under Article 9 of the Federal Bankruptcy Code. The hearing will be “subject matter only,” and take place before the House Judiciary-Civil Law Committee. The media is invited and encouraged to attend.
* Reuters…
The southern California city of San Bernardino has defaulted on nearly $10 million in payments on its privately placed pension bond debt since it declared bankruptcy in 2012, according to documents seen by Reuters.
In addition, the city has not negotiated with its bondholders since September, according to a person familiar with the stalled negotiations.
The missed payments illustrate the trend among cities in bankruptcy to favor payments to pension funds over bondholder obligations, which has increased the hostility between creditors and municipalities.
San Bernardino declared last year that it intends under its bankruptcy exit plan to fully pay Calpers, its biggest creditor and America’s largest public pension fund with assets of $300 billion.
The city continues to pay its monthly dues to Calpers in full, but has paid nothing to its bondholders for nearly three years, according to the interest payment schedule on roughly $50 million of pension obligation bonds issued by San Bernardino in 2005.
If Sandack’s bill passes, there’s a very good chance that municipal bond ratings will plummet throughout the state.
*** UPDATE 1 *** Rep. Sandack disputes my analysis…
Like other states, I’m proposing a statutory lien for bond holders. In sum they get secured creditor status.
*** UPDATE 2 *** Wordslinger makes a valid point in comments…
Sandack’s “statutory lien” means oogats to a federal bankruptcy judge.
You open the door, you’ll play by their rules.
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Election timeline and a look ahead
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* I posted much of this same info yesterday, but it may have been lost in the commotion…
Republican Gov. Bruce Rauner must call a special [election] within five days after Schock’s resignation becomes official on March 31, according to state law, and [the general election] must be held no later than 115 days from the call.
Rauner has leeway to decide the dates of the election within that time frame. In the last House special in Illinois, to replace Democrat Jesse Jackson Jr., the congressman resigned Nov. 21, 2012, the primaries were held three months later on Feb. 26 and Democrat Robin Kelly won the seat on April 9.
There are also federal laws about providing enough time for military mail-in ballots. I think that’s 45 days. So, they can’t piggyback the primary on the municipal elections. Both the primary and the general will be stand-alone, very low-turnout elections.
…Adding… The potential cost…
The special election to replace the Peoria Republican in the state’s 18th Congressional District could exceed $150,000, election officials said.
Peoria County Steve Sonnemaker estimated the cost for a primary and general election to be between $75,000 and $80,000.
“If Steve said it was $75,000 to $80,000 for the county’s part, I would say that the total cost is probably double that for both elections,” Tom Bride, the executive director of the Peoria Election Commission, told the Peoria Journal Star.
* DKos has the Romney numbers and is correct about the real action in this race…
Romney won this Downstate Illinois seat, which includes Quincy and parts of Peoria and Springfield, by a 61-37 margin, so all the action will be in the GOP primary.
Yep. And keep in mind that was a presidential year. Bruce Rauner undoubtedly won it by a whole lot more in his off-year race. And turnout will be even lower in a special. It’ll be a race to the right in the primary and a hopeless task for a Democrat.
Any talk or even idle speculation of an established Democrat running for this seat is just nuts. Either that, or the wannabe is nuts. Only a miracle could elect a Democrat in a special election in the strongest Republican district in the entire state. An established Democrat would lose a whole lot of credibility by being wiped out in the general.
* Getting back to the GOP primary, Sen. Darin LaHood appears to be gaining quite a bit of strength as others bow out. LaHood has reportedly been quietly plotting this move for a while now, figuring that Schock wouldn’t survive. He may need to raise a bunch of money in a big hurry to scare everyone else off, particularly former state Rep. and 2014 lt. governor candidate Jil Tracy of Quincy.
Tracy has serious family money that she can tap. She also has family in other parts of that district, including Springfield. And her 2014 statewide primary bid helped her develop contacts with party leaders.
If Tracy decides to take the plunge, she could give LaHood a real contest.
…Adding… From a prescient commenter…
Am I the only one who thinks, if played correctly by the right candidate, that the LaHood family connection to President Obama could be a factor in this race?
I’m guessing that to the kind of Republicans who will be voting in this race, Ray LaHood’s Cabinet duty for the Obama White House sticks much more prominently in their mind than his years of honorable service in Congress.
That commenter could well be right. If Tracy or whomever successfully somehow “reminds” hardcore Republican primary voters about the father’s close ties to Obama, it could definitely hurt the son.
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* Politico reports that Schock will reimburse the government… again…
On Monday evening, POLITICO began asking questions about tens of thousands of dollars of reimbursements he received from his campaign and federal government for mileage put on his personal car. Records show that Schock personally claimed reimbursement for roughly 170,000 miles driven from January 2010 to July 2014. But the only vehicle he owned during that time was sold with just 80,000 miles on the odometer.
Asked for his response to those findings, Schock announced his resignation. […]
Later that day, Schock’s office said he would pay back all of the mileage reimbursements he has received since coming to Congress in 2009. That would amount to tens of thousands of dollars — on top of the tens of thousands he’s already had to reimburse for a private flight and the cost of redecorating his office.
Schock’s associates — many of whom are afraid to speak for attribution, fearing potential legal action — say a combination of immaturity, sloppiness and an oversized ego led to his downfall. He came to Congress as an eager 27-year-old, raised a lot of money and spent it at a rapid clip.
Scrupulous accounting, it appeared, was not a priority. On one election filing, Schock labeled a private flight as a software purchase. He failed to disclose trips abroad, as well as the use of a private golf course for a fundraiser in 2014.
* Sloppiness and a lack of “scrupulous accounting” is one way to look at this. Deliberately hiding potential criminal conduct is another. And if he’s paying back tens of thousands of dollars, he may be all but admitting that he over-billed the taxpayers, even if he said the reimbursement decision was taken out of an “abundance of caution.”
If his lawyers didn’t negotiate some kind of deal with the G in exchange for his resignation, Schock could be in some very serious hot water…
Meredith McGehee, the policy director at the Campaign Legal Center, said Schock could face criminal charges if it’s proved that he filed a false reimbursement voucher.
* More…
Washington lawyer Kenneth Gross, formerly the associate general counsel at the Federal Election Commission, which handles civil enforcement of campaign-finance rules, said Tuesday that “a number of issues have been raised regarding (Schock’s) handling of campaign funds and office expenditures, but it’s hard to know what constituted a critical mass to cause him to resign.”
One campaign-finance lawyer, who spoke on condition of anonymity, said that as a general rule, the Justice Department, should it be taking a look at a lawmaker, would not be swayed one way or another by a resignation.
Schock had been under scrutiny in 2012 for allegedly soliciting a $25,000 contribution from a political action committee in excess of legal limits. But that case, before the House Ethics Committee, will go away once Schock’s resignation becomes official.
*** UPDATE *** Um, wow…
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[This post has been updated and bumped up for visibility.]
* The News-Gazette leads with the former hometown guy, but the ones to really watch on this list are the two with by far the most name ID: Darin LaHood and Bill Brady…
State Sen. Jason Barickman, R-Bloomington, said he is interested in succeeding U.S. Rep. Aaron Schock, R-Peoria, who abruptly resigned Tuesday from his 18th Congressional District seat.
State Rep. Dan Brady, R-Bloomington, also said this afternoon that he’s “looking at” the seat. And a spokesman for state Sen. Bill Brady, R-Bloomington, said the former Republican gubernatorial candidate also is considering running for the west central Illinois congressional seat.
Also mentioned as potential Republican candidates in the overwhelmingly Republican district are state Sen. Darin LaHood of Dunlap and former state Rep. Jil Tracy of Quincy.
*** UPDATE 1 *** Sen. Bill Brady…
“I’m very flattered that many supporters and residents of Central Illinois have suggested I seek the seat in Congress representing the 18th Congressional District. I have decided, however, to remain in the Illinois Senate at the current time because of my business interests and my wish to help Governor Rauner resolve the many challenges Illinois faces.
“There may be other opportunities in which I could better serve the citizens of Illinois in the future. For now, I look forward to working with our Republican governor to forge meaningful solutions that will set Illinois right and encourage greater business investment in our state.
“I have several longtime friends who also have expressed interest in the seat – my colleagues in the Senate, Darin LaHood and Jason Barickman who both helped me in my campaign four years ago, my brother Ed Brady , and my Bloomington colleague in the House, Dan Brady. They, along with others, have great potential for serving Central and Western Illinois well in Washington. “
*** UPDATE 2 *** Sen. Darin LaHood…
STATE SENATOR DARIN LAHOOD ANNOUNCES RUN FOR CONGRESS
Forming Federal Campaign Committee Today
LaHood is a former 10-year state and federal prosecutor
State Senator Darin LaHood announced today his intent to run for Congress in the 18th District and will be forming a federal campaign committee with the Federal Election Commission (FEC) today.
LaHood will soon make a formal announcement in locales throughout the 18th Congressional District. The 18th District includes 19 counties in Central and Western Illinois.
LaHood is currently serving in his fifth year as a Republican State Senator, elected without opposition in his last election. He has served on the following committees: Judiciary, Criminal Law, Executive Appointments, Public Health, Human Services, Pensions & License Activities, Environment, Insurance, and Transportation.
Since taking office, Senator LaHood has achieved a strong record as a leading fiscal conservative in Springfield. He has been an outspoken advocate for creating a better business climate in Illinois to boost the state’s economy and create jobs for Illinoisans.
From 2001-2006 LaHood served in the U.S. Attorney’s Office in Las Vegas, Nevada, where he was the lead prosecutor for the Project Safe Neighborhoods Program and then the Chief Terrorism prosecutor. Additionally, he has worked in both the Cook County and Tazewell County State’s Attorney’s Offices. LaHood has also previously worked in the U.S. House of Representatives as a Legislative Assistant and then an Appropriations Committee Associate. He graduated from The John Marshall Law School and currently practices law with the Peoria law firm of Miller, Hall & Triggs.
Darin LaHood has been married to Kristen for 13 years and together they have three sons: McKay 12,Lucas 10, and Teddy who is 8 years old. The LaHood family resides in Dunlap which is in Peoria County.
Governor Rauner has until April 5th to set a date for a special election which must occur within 115 days.
*** UPDATE 3 *** Sen. Jason Barickman…
“I am grateful to hear from so many people across Central Illinois urging me to consider a candidacy in the 18th Congressional District. Yesterday, I spoke with many supporters, and discussed this potential opportunity to serve with my family. However, the needs of my young family and the desperate fiscal situation in Illinois state government are paramount. These issues demand my full attention and present significant opportunities for me to serve my community and make a difference for our great state.
After careful consideration, I have decided not to run for Congress in the 18th Congressional District.”
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