* Yvette Shields at the Bond Buyer…
The fate of the lawsuit seeking to block repayment of $14.3 billion of Illinois general obligation debt is in a judge’s hands.
Sangamon County Circuit Court Judge Jack D. Davis II heard oral arguments in his Springfield courtroom Thursday about the case that opponents say is “frivolous” and filed for “a malicious or ulterior purpose.” […]
The two traded swipes over the market impact. “There is damage” to the state from the lawsuit and it “will disrupt the markets” and “it’s going to make borrowing more difficult” if the case moves forward and if the petitioners prevail, [Assistant Attorney General Joshua Ratz] said.
[Daniel Thies, an attorney for the Illinois Policy Institute’s John Tillman] disagreed. “The state’s credit rating is going to be helped…$20 billion of debt will be taken off its books” and there will be a court ruling outlining what is constitutionally allowed in the future. “This will help the state and its ability to borrow.”
* Mark Glennon at Wirepoints…
(T)he actual results for the state, if Warlander were to win, would be far different than some critics seem to think. The state would be destroyed and it’s credit slashed, some are saying.
Nonsense. The state would stop payment on the challenged bonds, indeed freeing up that cash to relieve the budget crunch and ensure that other bonds get paid. Taxpayers would be better off. Only the challenged bonds would be impaired, provided the court’s rationale were limited to those bonds. That’s an important proviso. If the court issued a sloppy or overly broad opinion, many other bonds could become suspect. Regardless, however, the credit rating for bonds to be issued in the future would improve, provided the they are made within the legal limits the court would have laid out in its decision. That point came up yesterday in court.
That’s the part that so many don’t seem to get. It’s the creditworthiness of bonds to be issued in the future that counts. Holders of old bonds are of less concern. They should get what the courts say they have a right to get, and nothing more.
That’s some truly wishful thinking. The state can’t just walk away from bond obligations. If the courts eventually do rule against Illinois (which I seriously doubt, but it’s the courts, so one never knows for sure), Illinois will have to make bondholders whole or undoubtedly face serious consequences with the credit ratings agencies. It can’t just walk away from billions in debt - even with a judicial ruling - and not expect a major downgrade into junk status. After all, most of the same institutions which now hold those old bonds are the ones who will be buying new bonds.
* Back to Yvette…
…Adding… From Glennon…
Rich, the whole point of the suit is to stop payment on just those certain bonds. That’s their specific request for relief. That’s the part that’s wishful thinking because I, like you, think they likely will lose. But if they win you apparently think the state would somehow pay those bondholders anyway. No, the state would be barred from doing that, and the bar would apply only to the challenged bonds. Other bonds and future bonds would benefit, provided, as I said, that the ruling was limited to the challenged bonds. It would be as if a court said you no longer had to make payments on your mortgage because of some claim you had against that lender. Would your credit rating be impaired? No, of course not. It seems very odd to me that you and many of your readers are so concerned about the rights of old bondholders instead of protecting of future bond issues.
This passage is just so goofy it blows my mind…
It would be as if a court said you no longer had to make payments on your mortgage because of some claim you had against that lender.
Poppycock.
The lawsuit is not about the lender. The lawsuit is about the borrower (the state) allegedly making false claims when it borrowed the money. If the state is found in the wrong, bondholders and credit agencies would naturally wonder how many other bonds could be suspect. And that would indeed kill the credit rating.
So, to use Glennon’s logic, if you are busted for borrowing money under false pretenses your credit rating is gonna suffer. He has it all bass-ackwards.
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* Oy…
Turns my stomach that anyone could think that was a good idea anywhere, not just at a campaign fundraiser.
* Gov. JB Pritzker…
As our nation grapples with the epidemic of gun violence, purposely pointing a fake gun at anyone is insensitive and wrong. I condemn actions like the ones displayed in the pictures because they lack the civility our politics demands.
* Democratic Party of Illinois…
The tragedies in El Paso and Gilroy have demonstrated how hate-filled political rhetoric can fuel violence. These images are unacceptable and dangerous. The place to make our voices heard against Trump is at the ballot box.
* Maxwell’s story…
Donors paid a minimum of $250 to attend Sandoval’s golf outing at the Klein Creek Golf Club in west suburban Winfield. A woman who attended the event posted the photos to her Facebook page on Saturday and tagged Sandoval in them. Sandoval is pictured separately posing with the man who held the fake weapon, but it remains unclear if the Senator knew about the incident when it occurred. […]
Sandoval, a powerful state lawmaker who chairs the Senate Transportation Committee and was a driving force behind the recent gas tax increase to fund the ‘Rebuild Illinois’ capital plan, issued an apology in an emailed statement.
“The incident that took place is unacceptable,” he said. “I don’t condone violence toward the President or anyone else. I apologize that something like this happened at my event.”
Illinois Republican Party Chairman Tim Schneider called on Sandoval to fire the person in the photo if they were a staffer or volunteer.
…Adding… Center Square…
State Rep. Darren Bailey, R-Xenia, said Sandoval should resign.
“I think the man should resign his position and I hope that the voters of his area will be just as disgusted as I believe the rest of the state will be and call for his resignation,” Bailey said.
Bailey noted this is another reason why southern Illinois is “disgusted” with some politicians in Chicago. He also said Sandoval bullied him when Bailey was critical a proposal to double the state’s gas tax. At the time, Sandoval suggested carving Bailey’s district, and any other district represented by lawmakers who didn’t support the tax increase, out of the capital plan.
“That’s the mindset, that’s the bullying mentality that’s taking place of the power that Chicago has and it’s got to change, it needs to change,” Bailey said. “That’s just the flat mobster bullying idea and that’s got to end and he needs to be called out for it.”
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* NRCC…
The National Republican Congressional Committee today announced the first round of “On the Radar” candidates as part of the Committee’s 2020 Young Guns program. The program mentors and supports candidates in races across the country and works to provide them with the necessary tools to run successful, winning campaigns against their Democratic opponents.
“It’s clear the 2020 election will be a choice between two futures: a future of more freedom or government control,” said Republican Leader Kevin McCarthy. “The new socialist Democrats are embracing policies that are in direct conflict with the needs and priorities of the American people: more taxes, more spending, more government, and less freedom. Simply put, this is theft.
“In stark contrast, Americans’ priorities are Republican priorities. This is why we are recruiting the best to compete in 2020 and I am proud to welcome each of these candidates to the Young Guns program. I remain focused on ensuring they have the resources they need to win, and I look forward to seeing them on the campaign trail over the next 14 months.”
* Candidate list for Illinois…
(IL-06) Evelyn Sanguinetti
(IL-14) Ted Gradel
(IL-14) Jim Oberweis
A snub of state Sen. Sue Rezin in the 14th? Interesting. And 73-year-old Jim Oberweis is part of the “Young Guns” program?
…Adding… Candidates apparently needed to have $100K in the bank at the end of June, but Rezin didn’t announce until mid-July. The same goes for Jeanne Ives in the 6th CD.
* From Sanguinetti…
Today, Evelyn Sanguinetti, Republican candidate for Illinois’ 6th Congressional District, was named as one of the National Republican Congressional Committee’s “On the Radar” candidates as part of the Committee’s 2020 Young Guns program. The program mentors and supports candidates in races across the country and works to provide them with the necessary tools to run successful, winning campaigns against their Democratic opponents.
“Americans’ priorities are Republican priorities. This is why we are recruiting the best to compete in 2020 and I am proud to welcome each of these candidates to the Young Guns program,” said U.S. House Republican Leader Kevin McCarthy. “I remain focused on ensuring they have the resources they need to win, and I look forward to seeing them on the campaign trail over the next 14 months.”
“I am honored to receive this important recognition by the NRCC and I look forward to victory next November,” said Evelyn Sanguinetti. “This election is about beating Sean Casten to ensure our kids and grandkids have the chance to live the American dream. Socialism is not the answer. Sean Casten has consistently shown that he does not represent the interests of the 6th district, but rather the elite progressive donors and socialists he’s catered to since being elected to office.”
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* Daily Line…
Cook County Democratic Party leaders swept aside an insurgent campaign amid lingering questions about Illinois Supreme Court Justice P. Scott Neville’s property taxes, backing his bid to keep his seat on the high court. […]
A party committee tasked with recommending an endorsement for the Supreme Court chose Neville following a closed session that lasted fewer than 30 minutes. The full party is widely expected to vote on Friday to accept the recommendation, solidifying the party stamp that would give Neville precious caché and campaign resources in next year’s primary.
Neville had been seen as the party’s inevitable choice to fill the seat until a contingent of black leaders including Secretary of State Jesse White, Ald. Emma Mitts (37) and Ald. Pat Dowell (3) rallied around Appellate Judge Nathaniel Howse as an alternative.
And Neville was dealt a setback on Monday, when NBC5 reported that he reaped the benefits of a homeowner property tax exemption for a house where he does not live. The candidate repeatedly said on Thursday that Cook County Assessor Fritz Kaegi’s office found “no evidence of any wrongdoing.”
* Crain’s…
Justice Neville received ownership of the home from his siblings in a quitclaim deed in 2004 but does not live there. The exemption is worth $726.
Neville told the committee during questioning today that there had been “no irregularities” or evidence of wrongdoing on his part. “I don’t think I can provide any more elaboration than the assessor provided. They have records. They have indicated there’s no evidence of wrongdoing. What else is there to say? If you have some evidence, I’d very much like to see it.”
Scott Smith, a spokesperson for Assessor Fritz Kaegi, said homeowners’ exemption applications from the year 2000 were “destroyed by the assessor’s office” and is unable to say who requested the exemption after Neville’s mother’s death.
“Our electronic records indicate whether a property received a homeowner’s exemption, but they do not reflect the name of the applicant. Therefore, we do not have the name of the person who filed for the exemption on this property in 2000. (Justice Neville’s) name is on the deed so he’s ultimately responsible for repayment of the erroneous exemption and has been in contact with our office about doing so.”
Neville told reporters he’d never asked for the exemption.
* But…
Smith said Neville’s name is on the deed, “so he’s responsible for repayment of the erroneous exemption and has been in contact with our office about doing so.”
* Meanwhile, in the circuit court clerk’s race…
*** UPDATE *** Done…
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* I pointed out to subscribers several days ago that Dan Proft’s campaign committees hadn’t raised any money this year after spending a fortune battling House Republicans in past primary cycles. The House Republicans have been saying they don’t believe Proft will be getting any more bigtime cash from Dick Uihlein and that they’ve made peace with some key Proft allies. I’ve reached out to Proft for comment a couple of times this week and haven’t heard back.
Hannah Meisel advanced the story today…
[Illinois Republican Party Chairman Tim Schneider] said he’s trying to nix any Republican infighting before it has the chance to bloom in the 2020 campaign cycle. He told The Daily Line that he’s been working with the free-market think tank Illinois Policy Institute, whose CEO John Tillman was an early supporter of Rauner, and who has previously been in the background of efforts to field candidates against mainstream Republicans.
Schneider said he also planned to work with Ideas Illinois, a not-for-profit dark money organization created by longtime business leader Greg Baise to fight Pritzker’s signature policy: a progressive income tax that voters will have to weigh in on in the November 2020 election.
“We’re all working together, that’s the whole thing,” Schneider said. “You know, we’ve been fighting each other for so long, nobody’s done enough to try to get everybody to work together. And I think if there’s one thing that we’re doing that we haven’t done effectively, the last couple years we’ve been fighting each other.”
Schneider said because of his efforts, Republicans would face fewer primary battles — even from candidates launched by conservative radio host and one-time gubernatorial candidate Dan Proft, and conservative business magnate Richard Uihlein.
“In the past, resources have come from the Policy Institute and Dick Uihlein,” Schneider said. “And I don’t see that they’ve engaged in giving resources to Dan Proft in the last two quarterly statements, so I think there’s a pullback from that. I think they’d rather see us all working together than working against one another…if people are gonna constantly fight one another for radio ratings, no, we’re not interested in that.”
…Adding… Good point by Maxwell…
*** UPDATE *** I asked Matt Paprocki at the Illinois Policy Institute for comment on Chairman Schneider’s claim that his group was one of the “partners” on the state GOP’s team…
Illinois Policy Institute has no role with the Illinois GOP team.
But I hope everyone — Republicans, Democrats and Independents — says we are good partners.
We want to work to everyone. Our state’s biggest problems are not partisan. And the solutions to fix them have to be bipartisan, as well.
Illinois Policy Institute is nonpartisan, which means our policy work is open to all, and we will partner with anyone.
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* This early exit is highly unusual…
Lots of internal turmoil in that office.
*** UPDATE *** With a hat tip to a subscriber, this is from October 6, 2017…
After just 88 days in Gov. Bruce Rauner’s administration, former Illinois Policy Institute head Kristina Rasmussen is out as the governor’s chief of staff — leaving a job she said she knew would be “rife with promise but would come with a lot of turbulence.”
Needless to say, this is not the path the mayor wants to be following.
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* US Senate candidate and former Lake County Sheriff Mark Curran spoke to the Illinois Republican State Central Committee/County Chairman’s Association Breakfast this morning…
My name is Mark Curran and I’m here to take out slick Dick Durbin [applause]. Slick Dick has been in office for over three decades, four terms as a United States Senator. … He’s as partisan a member of the United States Senate as there is. He’s in leadership, but ultimately his god is power.
Today for Catholics is the Feast of the Assumption. The archbishop down the street said that Dick Durbin cannot accept communion in the Roman Catholic Church. It means nothing to Dick Durbin because Dick Durbin is about power, that’s what drives him, that’s all that matters to him… He’s a dangerous guy… I need you to help me kick slick Dick to the curb.
* Curran explained his narrow 2018 reelection loss…
Lake County is not purple, it’s blue, folks. You know, the wrong people moved in, what have you. We need to change that and we will!
* On his switch from the Democratic to Republican parties…
I said they’re heading for evil, I want nothing to do with that, I’m done.
*** UPDATE *** Meanwhile, US Senate candidate Peggy Hubbard claimed she had to literally fight off a forced abortion while serving in the Reagan-era armed forces and said Sen. Durbin has never set foot in East St. Louis (the town of his birth). She also touted her fight to stop the removal of statues honoring the Confederacy. I kid you not.
…Adding… One of those “wrong people”?…
A traffic altercation near Gurnee Wednesday morning led to a felony hate crime charge against a man from unincorporated Gurnee who attacked a motorcyclist with an ice pick while yelling “racial slurs and racial expletives,” according to the Lake County Sheriff’s Office. […]
A 57-year-old man from unincorporated Gurnee called the sheriff’s office around 11:35 a.m. Wednesday after he said he was attacked by a man wielding an ice pick and shouting racial slurs and expletives, according to the news release.
The man, who police said was Hispanic and had a Mexican flag on his motorcycle, had been traveling northbound on North Delany Road near Sunset Avenue in unincorporated Gurnee when a 2009 Hyundai SUV abruptly changed lanes and cut him off, according to the release.
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