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CHRIS KELLY INDICTED *** NEW CHARGES FOR REZKO *** HURTGEN RE-INDICTED *** BLAGOJEVICH RESPONDS *** KELLY FACES 38 YEARS IN PRISON ***

Thursday, Dec 13, 2007 - Posted by Rich Miller

From the US Attorney…

CHRISTOPHER KELLY INDICTED ON FEDERAL TAX FRAUD CHARGES;

ALLEGEDLY CONCEALED MORE THAN $1 MILLION IN INCOME AND

USE OF BUSINESS FUNDS TO PAY PERSONAL GAMBLING DEBTS

*** DOWNLOAD THE FULL KELLY INDICTMENT HERE ***

*** HURTGEN RE-INDICTMENT IS HERE ***

*** REZKO SUPERSEDING CHARGES ARE HERE ***

* More…

A suburban businessman was indicted today on federal tax fraud charges for allegedly understating his true personal and business income by more than $1.3 million over five years, in part by concealing the use of corporate funds for personal expenses including gambling debts to sports bookmakers. The defendant, Christopher G. Kelly, president and owner of a roofing business and a separate consulting firm, allegedly cheated the government on his personal and business taxes between 2000 and 2005, according to a 12-count indictment returned today by a federal grand jury, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

Kelly, 49, of Burr Ridge, was charged with one count of obstructing and impeding the IRS, five counts of filing false individual federal income tax returns, five counts of filing false corporate tax returns and one count of illegally structuring monetary transactions. He will be arraigned at a later date in U.S. District Court.

According to the indictment, Kelly was the president and owner of BCI Commercial Roofing, Inc., and CGK Consulting, Inc., both of which shared offices at 3062 West 167th St., Markham. Kelly maintained financial control over the two companies and determined how each company spent money and categorized its spending for purposes of calculating its business expenses as well as Kelly’s personal income.

As part of a corrupt endeavor to obstruct and impede the IRS, Kelly allegedly used business funds to pay for certain personal expenses, concealed the true nature of the payments through improper recording of the payments on the companies’ financial books and created false documents describing the payments; structured cash withdrawals under $10,000 from banks by disguising them as legitimate business expenses; and used third parties to pay portions of his illegal gambling debts.

More specifically, Kelly allegedly:

o caused BCI Roofing to pay gambling debts for certain of his losing wagers placed with Individual A, who, with the assistance of Individual B, ran a bookmaking operation in Illinois that accepted wagers on such sporting events as professional and college football, professional and college basketball, baseball and horse racing, and with whom Kelly placed millions of dollars of wagers. On at least one occasion, Kelly allegedly hid the use of corporate funds to pay a gambling debt to Individual A by ordering that the payment be falsely recorded in BCI Roofing’s financial books as a loan from the company to Individual A;

o placed millions of dollars of wagers with casinos in Las Vegas and caused BCI Roofing to pay for certain of his losing wagers there. On at least one occasion, Kelly allegedly hid the use of corporate funds to pay a gambling debt to a casino by ordering the preparation of false internal BCI Roofing documentation to make it appear that the payment was a legitimate business expense incurred by the company as part of a roofing contract for an airline;

o caused BCI Roofing to partially pay for his home in Burr Ridge and caused BCI Roofing and CGK Consulting to pay for various home items and services, including electronic equipment, hardwood floors, drapery, and lawn maintenance; and

o hid the use of corporate funds on multiple occasions to pay for various items and services for his home by ordering the preparation of false internal BCI Roofing documentation to make it appear that his payments for home items and services were legitimate business expenses incurred by the company as part of various roofing contracts for such clients as airlines and an electric company.

Both the IRS obstruction count and five counts of filing false individual federal tax returns for calendar years 2001 through 2005 allege that Kelly reported an aggregate of more than $5.2 million in total income for those five years but understated his true income by more than a $1 million for the same period.

As a result of concealing his income and directing the fraudulent classification of certain personal expenses as business expenses, the IRS obstruction count also alleges that Kelly caused false corporate income tax returns to be filed on behalf of BCI Roofing and CGK Consulting from 2000 to 2005, understating the companies’ true income by more than $300,000. The five counts of filing false corporate tax returns on behalf of BCI Roofing for each fiscal year from 2000-01 through 2004-05 allege Kelly overstated the company’s cost of goods sold and understated both its taxable income and total tax by falsely deducting certain personal expenses as business expenses.

The IRS obstruction and structuring counts allege in September 2004, Kelly solicited Individual C’s help in cashing three checks, each slightly under $10,000, and returning the cash to Kelly. In one instance, Kelly allegedly gave Individual C a BCI Roofing check for $9,500 payable to Individual C’s four-year-old child, and the following day, Kelly allegedly gave Individual C BCI Roofing and CGK Consulting checks payable to Individual C and Individual C’s spouse and obtained the cash back from Individual C for all three checks.

About the same time, Kelly also allegedly concealed his receipt of additional cash by depositing and cashing six BCI Roofing checks payable to himself, his children, his wife and cash. In each of these transactions, Kelly allegedly structured the cash receipts in amounts less than $10,000 to avoid generating Currency Transaction Reports.

The indictment seeks forfeiture of $86,600, which is the total amount of the allegedly structured funds.

The IRS obstruction count also alleges that in early 2005 Kelly attempted to conceal the source and nature of a partial payment on a large gambling debt he owed to Individual A. To assist Kelly in paying the debt, Individual D arranged for a wire transfer of approximately $79,140 from a bank account in Saudi Arabia to a bank account in Florida, according to the indictment. After learning that the wire transfer was not credited to the Florida bank account, Kelly allegedly arranged for the wire transfer of approximately $45,000 from a pizza company in Chicago to Individual A’s bank account. On at least one other occasion, Kelly allegedly attempted to pay a portion of the gambling debt to Individual A by tendering multiple checks, each made out for thousands of dollars and with the payee line left blank, from a second pizza company.

* Hurtgen…

A former executive in the Chicago office of Bear Stearns & Co., an investment firm that arranges financing for public works projects in Illinois, was indicted today on federal charges for allegedly assisting a fraud scheme in which a former member of the Illinois Health Facilities Planning Board and a construction firm owner engaged in insider-dealing, influence-peddling and extortion involving their private interests and public duties, federal officials announced today. The defendant, P. Nicholas Hurtgen, a lawyer and investment banker, allegedly participated in a fraud scheme to help lawyer, businessman and previous co-defendant Stuart Levine, formerly an influential member of the state board that controls medical facility construction projects, obtain millions of dollars for Levine and certain of his associates, including another previous co-defendant, Jacob Kiferbaum, an architect and construction firm owner, who schemed with Levine to obtain multi-million dollar contracts and to distribute construction kickbacks, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

* From Hurtgen’s reindictment…

HURTGEN told the CEO that Levine and Kiferbaum were friends and that Levine had a close relationship with a high-ranking Illinois elected official, Public Official A, who also liked Kiferbaum. HURTGEN told the CEO that she did not want to know why Levine and Public Official A wanted Kiferbaum to get the Edward Hospital construction projects, but advised her that the support for Kiferbaum by Public Official A and those surrounding Public Official A was “all about money” for political campaigns. HURTGEN also told the CEO that he had recommended to Levine that Kiferbaum “latch on to” the CEO’s team because Edward Hospital was a growth hospital.

* More on Hurtgen from the Tribune…

Hurtgen was reindicted on charges he took part in a fraud scheme to force kickbacks from hospital expansion projects. He was originally charged with political insider Stuart Levine, real estate consultant John Glennon and construction firm owner Jacob Kiferbaum. But a judge in March dropped Hurtgen from that case, finding that the original indictment did not specifically outline that Hurtgen knew that kickbacks were involved.

*** Statement from Gov. Rod Blagojevich ***

“Chris Kelly is my friend. I am saddened to hear these allegations about Chris’s personal life. I know the pain it must be causing him and his family. My thoughts and my prayers are with them during this difficult time. In fairness to Chris, I believe it is important to let the legal process play out and not rush to judgment.”

*** Kelly is looking at 38 years behind bars ***

Kelly, 49, of Burr Ridge, was charged with one count of obstructing and impeding the IRS, five counts of filing false individual federal income tax returns, five counts of filing false corporate tax returns and one count of illegally structuring monetary transactions. He will be arraigned at a later date in U.S. District Court. […]

If convicted, each count in the indictment carries the following maximum penalties: obstructing and impeding the IRS and filing a false tax return – three years in prison and a $250,000 fine, and illegal structuring of monetary transactions – five years in prison and a $250,000 fine.

*** 5:02 pm *** A good point from the Sun-Times…

The governor’s campaign has received $212,000 in contributions from Kelly’s roofing and consulting companies, and it remains unclear if the governor will return the money.

134 Comments

This just in… Unions to walk off *** Kevin Burns drops out ***

Thursday, Dec 13, 2007 - Posted by Rich Miller

*** 12:01 pm *** The Tribune reports on some unsettling news…

Mass transit in the Chicago area would screech to a halt from Sunday night through Monday if all goes according to plan in a one-day “job action” that CTA labor unions have approved, union officials said today.

The threatened walk-off, which union leaders insist is not a strike, aims to send the strongest message yet the governor and lawmakers in Springfield that the deadlock over transit funding must end now, according to the Amalgamated Transit Union, which represents CTA bus drivers, train operators and other employees.

If successful, the shutdown of all CTA bus and rail service for 24 hours would paralyze downtown Chicago and overwhelm transportation across the region. The CTA serves 40 suburbs.

The union’s ultimate goal is to shut down all CTA, Metra and Pace operations to demonstrate the need for more transit funding and to restore balance to union pension funds and health care plans. But such a wide-spread walkout would require the cooperation of 19 unions at the three transit properties in the Regional Transportation Authority system.

* Don’t forget to purchase tickets here for the December 16th performance of “No-El, Or How the Blagojegrinch Stole Christmas” - Our Capitol Fax holiday party. I do have some extra tickets if you need them.

* 12:29 pm - Rod Blagojevich… Hero?

…and I dare say that my life was saved by our own Governor Rod Blagojevich when he stopped me from accidentally taking a backward step off the roof of the Marion Civic Center.

[H/T: 11th Hour]

* 1:01 pm - Congrats to Rep. Eddie Sullivan on the birth of his new daughter, Kaleigh. I’m told that mom and daughter are both doing well.

* 1:13 pm - From a Chris Lauzen press release entitled: “Lauzen Celebrates Hastert Endorsement of Oberweis”…

The Hastert endorsement may be good for Oberweis (who has lost all 3 campaigns he’s ever run, including the 2002 U.S. Senate Race, also with Hastert’s endorsement), but it’s bad for the people and bad for unity in the Republican Party. Hastert has resigned; Oberweis is running against me; let the people decide.

*** 1:32 pm *** And then there were two. Republican congressional candidate Kevin Burns has dropped out of the race…

Soon after former House speaker Dennis Hastert endorsed one of his opponents this morning, candidate Kevin Burns announced he is dropping out of the 14th Congressional District race.

Burns, Geneva’s mayor, said Hastert’s support of Jim Oberweis was the main factor in his decision to “suspend” his campaign.

“It is my best interest and the party’s best interest to suspend my campaign,” Burns said. “It’s extremely difficult, but in the final analysis, it’s what’s best for me.”

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Thursday, Dec 13, 2007 - Posted by Rich Miller

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Hmmm…

Thursday, Dec 13, 2007 - Posted by Rich Miller

There are plenty of rumors about what this press conference will entail, but we’ll just have to wait and see…

Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with officials of several federal law enforcement agencies, will hold a press conference at 2 p.m. today, Thursday December 13, 2007, to announce a new criminal matter.

The press conference will be held in the U.S. Attorney’s Press Conference Room on the 11th floor, north end, of the Dirksen Federal Courthouse, 219 South Dearborn St., Chicago. Media access to the press conference room will begin at 1 p.m. Additional details will become available sometime within the hour preceding the press conference. There are no court appearances scheduled today in connection with this matter.

I’ll update this when information becomes available. And I’ll open comments if it’s appropriate. This is just a heads up for now.

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Question of the day - The Golden Horseshoes, Round 3

Thursday, Dec 13, 2007 - Posted by Rich Miller

Yep, we finally have a name for these awards. I called around yesterday to see if we can have trophies made up in the shape of a horseshoe - the actual shoe, not the dish.

I’m gonna declare a tie in the legislator who best epitomizes public service award. Ray LaHood wins the “statesman” award. CUB gets the association award.

Three new questions today. Please explain all your responses…

1) Best political bar/restaurant in Springfield (must be currently operational)

2) Best statewide officeholder

3) Best state legislative staffer

Again, please explain your votes and try your very best to answer all three questions. Thanks.

…Adding… The contest is not just based on the number of votes, but on the intensity of each vote. So, if you don’t explain your vote, it will have far less weight or not be counted at all, depending on my mood.

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Reform and renewal, Parts 9,682, 9,683, 9,684, 9,685 and 9,686

Thursday, Dec 13, 2007 - Posted by Rich Miller

* As you know already, former Gov. Jim Thompson wrote a letter to the Tribune the other day attacking the paper for writing about Patti Blagojevich’s real estate business. Mrs. Blagojevich has, in the past, had clients who also were closely connected to state politics and government.

But Big Jim and his wife had a different standard when he was governor. Dan Curry dug up this 1987 Thompson quote…

[Jayne Thompson] no longer practices law because “I`m somewhat of a liability to some law firms. It precludes them from getting the kinds of state business they think they are entitled to and probably are.“

Sensitive to conflict-of-interest charges, she tries to avoid any hint of impropriety as wife of the highest official in the state.

* Meanwhile, the self-promotion at taxpayer expense continues…

llinois taxpayers could be on the hook for as much as $335,000 in the coming year to make sure Illinois politicians are photographed and videotaped at various state events.

According to state documents, the state has renewed the contracts of five video production companies in the northern part of the state to do the special public relations work.

The figure could rise even higher when the ink dries on contracts for private companies in other parts of the state.

Gov. Rod Blagojevich came under fire for the contracts last year when his gubernatorial opponent, Republican Judy Baar Topinka, called them an example of the governor using taxpayer money to promote his political agenda.

* The governor courts the Gucci loafer crowd…

[A] quintet of clout-heavy players hoped to cash in on that generosity Wednesday with a small fund-raising gathering for Gov. Blagojevich at the Chicago Yacht Club.

“I am honored to be hosting this event along with my friends David Gustman, Michael Henneman, Michael Rumman and Roger Bickel,” attorney Brian Hynes wrote in the invitation.

The hosts: Hynes, a Springfield lobbyist; Gustman, an attorney and next-door neighbor of Tony Rezko, the governor’s indicted former adviser; Rumman, a Rezko business associate and former member of the governor’s Cabinet; Bickel, an attorney and former staff member of imprisoned ex-Gov. George Ryan’s, and Henneman, who owns a Downstate engineering company that has gotten a slew of government contracts.

* More fun stuff…

Illinois law prohibits tax deadbeats from getting state business, but that hasn’t kept an associate of indicted gubernatorial adviser Tony Rezko from operating restaurants on state property.

Al Chaib owes the state $359,639 in unpaid business taxes dating back five years, yet his firm, Morpheus LLC, owns Subway sandwich shops at all seven Illinois Tollway oases, the Chicago Sun-Times reported in Thursday’s editions.

“We have asked the tollway and lawyers from the attorney general’s office to look into the ownership issue and make sure there is no conflict with state procurement rules,'’ said Abby Ottenhoff, spokeswoman for Gov. Rod Blagojevich.

* And the feds take over yet another case…

Federal prosecutors have taken over a state investigation into allegations of influence peddling involving a fundraiser for Gov. Rod Blagojevich.

In 2005, Illinois State Police closed a case against Harish M. Bhatt, a Joliet pharmacist and major fundraiser for the governor, who had been accused of offering to help derail a fraud investigation into a Chicago pharmacist in exchange for a $25,000 campaign contribution to Blagojevich. Jatin Patel, who stopped payment on a $25,000 check he had given to the governor’s campaign shortly after writing it, has denied any wrongdoing.

The state has ordered Patel to repay $1.5 million in alleged Medicaid overbillings. Bhatt, who was also subject of a fraud investigation, has not had sanctions imposed by the state and says he did nothing wrong. Patel has told the Chicago Tribune that Bhatt had offered to help in Patel’s fraud probe in exchange for a campaign contribution, an assertion Bhatt denies. […]

Now, the U.S. attorney’s office in Chicago is subpoenaing state police files and taking over the investigation, The State Journal-Register has learned.

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Are you freaking kidding me? *** Updated x2 ***

Thursday, Dec 13, 2007 - Posted by Rich Miller

* As you might imagine, this offends me to no end…

A possible deal right out of left field could leave taxpayers on the hook for the renovation of Wrigley Field.

It’s not a done deal, but CBS 2 has learned discussions have been on for weeks for the state to purchase Wrigley Field. As Chief Correspondent Jay Levine reports, the stadium is a Chicago landmark and sits on a valuable piece of property in a hot neighborhood.

But the Cubs might be worth more to a new owner without Wrigley Field, than with it. And that’s why the state is talking with the Cubs about buying the stadium and running it just like they do U.S. Cellular Field.

Sources confirm Wednesday night that the Gov. Rod Blagojevich’s people have been talking with the Cubs’ owners about buying the stadium before the Tribune Co. sells the team.

So, the state is bidding on Wrigley to help Sam Zell get a better price for the Cubs? That is so offensive to me.

* More from the Tribune…

The bidding for the Cubs has been red hot, giving Tribune several choices on how best to sell the team and the assets connected to it, including the ballpark. […]

Selling the ballpark separately to an entity like ISFA actually could help Tribune secure a better price overall, sources said. If a new owner were to pay top dollar for both the team and ballpark, the price tag for major renovations likely would suppress the overall bidding price, those sources say.

Why should the state help a kazillionaire maximize his profits from an asset sale? This is crony capitalism at its worst.

The Cubbies are worth a fortune because of Wrigley, not in spite of it. Those tourists don’t flock to Wrigely to see the Cubs play. They come for the “atmosphere.” No new owner in his or her right mind would move out of that stadium, no matter how dilapidated and run-down it is.

The governor is the state’s number one Cub fan, and it really shows in this goofy move. Instead of working on solving the CTA funding crisis, and carving out a deal on a much-needed capital plan, he’s showboating on this stupid idea.

*** UPDATE 1 *** This report from NBC5 is so not true…

The plan, in part, intends to prevent the Cubs from leaving the city for a new stadium in the suburbs.

That’s a completely bogus cover story, to say the least. No potential owner could possibly be stupid enough to move the Cubs from its “holy” site out to the suburbs. And if he/she did, that person deserves to fail.

*** UPDATE 2 *** Mayor Daley turns big thumbs down on goofy idea…

“We can’t even get any money for the CTA and they’re worried about the Chicago Cubs? They’ve made money every year. It’s very profitable and some way, we’re supposed to bail them out? I’ve never heard [of that] . . . I don’t think they’re leaving. They just increased the price of tickets,” Daley said.

“We have a crisis at the CTA right now. It’s hard to believe . . . that people are now talking about taxpayers helping out the Cubs. The Cubs are not gonna move. It’s a gold mine. . . . If you’re gonna start holding this issue over the heads of passengers of the CTA and this crisis we’re in and they want to start talking about whether or not taxpayers are gonna buy [Wrigley Field] — that’s hard to believe.” […]

…Daley said he raised “serious questions” during that meeting. In fact, he told Zell point-blank, “You’re basically asking the taxpayers to . . . some way help the Cubs. Simple as that.”

The mayor said he’s so opposed to the taxpayer-financed acquisition of a private sports stadium, he would oppose any effort to raise the restaurant tax or hotel tax to retire Wrigley stadium bonds.

“You’re not gonna increase the hotel tax in the city of Chicago for that purpose. You will not increase the restaurant tax. . . . It would be unfair for everyone,” Daley said.

Can you say “Dead”?

64 Comments

Morning shorts

Thursday, Dec 13, 2007 - Posted by Paul Richardson

* Morgan Stanley issues full U.S. recession alert

* Countrywide Financial under IL probe, NY Times reports; more here

* Sun-Times media shareholder demands cost cuts

* Ditka defends charity but dissolves it

* Sun-Times Editorial: Ditka should have kept better on eye on charity

Ditka should have raised questions at the large disparity between the money his fund spent on three celebrity golf tournaments, costing $715,000, according to USA Today, and the charity his fund gave to ex-players.

“Not enough, probably, was given out,” admits Ditka, stating that $159,000 was the actual amount of the payouts, including a sizable sum to Misericordia, the local facility for children with developmental disabilities. One reason his fund didn’t give more money to ex-players, said a person involved in the trust who requested anonymity, was the unexpected difficulty of getting proud or mentally ill ex-players to apply for aid.

* Davlin says Springfield property tax may go up

Davlin blames the legislature, which has boosted — while not providing the money — firefighter pension and death benefits four times since 1999.

The council has no control over the pension benefits given to cops and firefighters, but local governments must provide the annual payment from property tax revenue. Actuaries determine the city’s pension payments, estimating what rate of return the systems will get on their investments.

* CHA proposing adult residents work 20 hours or face eviction

* Clout City: Right to work

City and negotiators for 33 trade unions representing 7,800 city employees recently hashed out a deal on pay and benefits for the next 10 years. Some critics have charged that the Daley administration gave away too much–pay will increase by 16 percent over the next five years alone–in the interest of ensuring labor peace during the possible buildup to the 2016 Olympics. Others, including many of the council’s black aldermen, have long howled that the trades shouldn’t get sweet city deals when they can’t be bothered to improve recruitment outside old white ethnic circles. Former alderman and current Cook County commissioner William Beavers summed up this view during last year’s Big Box minimum-wage debate: Unions, he said, “don’t do nothing for us in the construction industry.”

* Cook officials told to brace for cuts

* Stroger’s sales tax increase plan dies

* Tribune Editorial: The power of taxpayers

* Durbin seeks probe of air controller fatigue and runway safety at O’Hare; more here

* FutureGen developers plan site announcement on Tuesday, despite DOE ’slow down’ advice; more here

“What’s going on at DOE behind the curtain, I’m not sure,” Sheehan said.

“We do intend to move forward on December 18th as planned,” she said, adding the developers believe the DOE has plenty of time to finalize its record of decision. “We do feel collectively that we owe this (announcement) to the states of Texas and Illinois.”

The site announcement, initially due in September, has been delayed several times.
FutureGen’s developers say the coal-fired plant would emit almost no carbon dioxide, trapping the greenhouse gas and storing it underground. The plant is intended to be a prototype, experimenting with the technology so it can be used in future power plants.

* Two states, one big coal windfall

* IL school chiefs’ pay on sharp curve up

School superintendents’ average pay in Illinois climbed 23 percent in the last five years, a jump experts said reflects an increasingly competitive market and a number of retirees with big end-of-career raises.

* JCAR to vote later on smoking ban

“The law supercedes the rules,” Kimberly Parker, a state Department of Public Health spokeswoman, said Wednesday. “The law goes into effect as announced.”

* Russ Stewart: Madigan’s Misery, to quit or fight in 2010?

A new scenario is germinating: Lisa Madigan could run for the Illinois Supreme Court in 2010, when the terms of 1st District (Cook County) Justices Charles Freeman and Thomas Fitzgerald expire; if one or both retire, she would easily win a Democratic primary. And, if a Democrat occupies the White House, Lisa Madigan would be on a short list of potential U.S. Supreme Court appointees. In Illinois, Mike Madigan would back state Treasurer Alexi Giannoulias in the primary against Blagojevich, and state Comptroller Dan Hynes would run for Lisa’s spot as attorney general.

* Oberweis to get Hastert endorsement; more here and here

* McQueary: Congressional candidate takes campaign to high school

* 18th CD candidates on tightening of immigration

* WurfWhile: SEIU endorsement gives Foster support, hurts Laesch

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Protected: EXTRA: Major development with SEIU endorsements

Wednesday, Dec 12, 2007 - Posted by Rich Miller

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Wednesday, Dec 12, 2007 - Posted by Rich Miller

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Question of the day - Blog reader awards, Round Two

Wednesday, Dec 12, 2007 - Posted by Rich Miller

Let’s continue today with our still-unnamed annual contest. I received some late e-mail votes (I probably shut down comments too early last night) so let’s have a runoff between two people who not only received the most votes, but also were supported by the strongest statements of why they should be named as the state legislator who best epitomizes public service. You can just write the name of either favored candidate in your response.

On our second and third questions today, please back up your vote with an explanation of why you feel this way. Just typing the name won’t count.

Here we go…

1) Who best epitomizes public service: Rep. Frank Mautino or Rep. Julie Hamos?

2) Which Illinois US Congressman, in your opinion, shows true statesmanlike qualities of putting country over party? Explain.

3) Which Illinois union, association, etc. has the most positive impact on Illinois government? Explain.

As before, purely negative or snarky comments will be deleted. If you want to argue with someone else’s choice, fine, but make sure you have your own nominee.

Comments will be closed on this contest at 6 pm tonight.

By an overwhelming margin, the late Don Stephens won the “Most effective local mayor” award yesterday. Also, I didn’t really like any of the names suggested for these awards. I’ll continue to think about it.

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Not in my beautiful park

Wednesday, Dec 12, 2007 - Posted by Rich Miller

* Like I’ve said before, I keep hearing that the old Congress Hotel is a prime site for any new Chicago casino. CBS 2 reported the same thing last night, and also reported that Mayor Daley has ruled out other sites that have been discussed…

“Well, it’s not going to be near the lakefront, of course. It’s not going to be in communities, it’s not going to be I Navy Pier, it’s not going to be in my beautiful park, Northerly Island,” he said with a smile and added it would also not be at McCormick Place or Block 37.

“My beautiful park.” Yeah, it was a joke, but humor often masks hard truths.

* Meanwhile, hizzoner pushed again for an immediate transit bailout…

Reacting for the first time to a new gambling expansion package, Mayor Daley Tuesday cautioned that winning legislative approval for new casinos should not be tied to a bailout of the CTA.

The mayor warned a complicated gambling deal — even the one that emerged Monday with Illinois House Speaker Michael Madigan’s reluctant support — will take time to work out. […]

“The solution is to pass a transit bill immediately,” he said. “Pass it.”

But the Republicans aren’t buying into that yet…

“People will be very reluctant to put a vote on a massive gaming bill without knowing what benefits their districts derive, and I don’t blame them for that,” said state Rep. Brent Hassert (R-Romeoville), the House GOP’s point man on gambling.

* The Daily Herald editorialized today against Speaker Madigan’s proposal to allow middle class women and minorities to buy into any new casinos. The DH echoed state Sen. Rickey Hendon’s argument that the plan would be unfair to wealthy women and minorities…

Madigan’s plan to assure minority and female casino ownership by letting them buy into a $5,000 ownership lottery is odd on its face. It could make it difficult for women and minorities with substantial financial backing to get an ownership share.

* The Tribune, however, cuts to the chase of this argument…

Too often in Illinois, though, “minority participation” has meant the same wealthy people getting wealthier: Time and again, they land the set-asides. Poor and middle-class people? They may not share in this public-supported bounty.

Case in point: The failed Emerald Casino project included set-aside stakes for minorities and women. We’ll award a tall stack of casino chips to the political insider who first details how that group came together: Chaz Ebert (wife of Roger), former Chicago Bear Shaun Gayle, auto dealer extraordinaire Al Johnson, Connie Payton (widow of Walter), Sandra Degnan (wife of longtime Daley operative Tim), and so forth.

That privileged group epitomizes one problem that can flow from mandated set-asides: The investors start to think of themselves as beneficiaries entitled to win big, even if they voluntarily put their money into a shoddily run company.

In the wake of Emerald’s collapse, the minority and women investors have been demanding to get their money back — from Illinois taxpayers, no less. And Jones has been angling furiously for a way to bail them out. […]

[Wealthy minorities and women] can band together as investors and compete with other bidders for one or more casino licenses. That opportunity is wide-open to the rich people whose alleged victimhood upsets Hendon. Madigan’s plan takes care of less-than-wealthy people who just want a stake in the game.

* On the other hand, former Chicago Bear Shaun Gayle, was one of those Emerald investors and he made a good point in an op-ed this year…

Emerald was forced to sell off 20 percent of the company to minorities, so they mixed in with us their own “illegitimate minorities” — shareholders placed in the minorities category by Emerald’s management who are fronting for someone other than themselves or have undisclosed political ties. And they had us fund the entire deal. That way, if things went awry, it would be our money at stake and not their own. The press feels there’s no way we could have that type of wealth and gotten into this deal without being “connected.” I offer no apologies for having the money to invest; truth is, many Chicagoans watched me earn it. As for who is or isn’t politically connected, there is a team of Gaming Board investigators paid by your tax dollars to weed out connected and corrupt investors trying to get into gaming. They’ve already identified and announced more than a few who are corrupt. Still, the media ignore those names and continue to list mine, Chaz Ebert and Connie Payton as wrongdoers just for effect, when we’ve never been accused. Even when a clause in the new gaming bill floated in Springfield included the minorities, the press led an outcry, blurring the line between “legitimate” and “illegitimate” minorities by reporting the clause was written for “Emerald shareholders,” when the bill specifically singled out women and minorities for inclusion.

* More gaming/capital/transit stuff…

* Federal transit aid in jeopardy over gridlock

* Feds to Metra: Transit gridlock might kill rail upgrades, new projects

25 Comments

Congressional roundup

Wednesday, Dec 12, 2007 - Posted by Rich Miller

* This may have sounded like a great idea at first. Combine a hockey game with a political debate for candidates in the Peoria area’s 18th Congressional District. But, as Gov. Rod Blagojevich discovered, hockey and politics just don’t mix…

Candidates answered questions from Rivermen hockey fans in a meeting room at the Peoria Civic Center during a political forum before Tuesday’s game. The cost for the event was $5, which also included admission to the game, though only about a dozen people took advantage of the incentive.

Still, credit where credit is due.

* Meanwhile, state Rep. Aaron Schock has lined up more endorsements in the 18th District GOP primary…

U.S. Rep. John Shimkus, R-Collinsville, was unable to attend [a Quincy event] due to icy roads, but spoke to the crowd at Schock’s fundraiser by telephone.

“We (Republicans) are in the minority because we kind of lost our way,” Shimkus told reporters in a teleconference.

Shimkus said he believes Schock and other young, energetic Republicans can reconnect with conservatives and with a majority of the nation’s voters.

Still no word yet from the incumbent Schock hopes to replace, Ray LaHood. He’s ducked the endorsement issue so far, but he may not be able to keep that up.

* In another district, two Democratic candidates faced off in a Tribune debate yesterday…

The two Democrats seeking to unseat U.S. Rep. Mark Kirk (R-Ill.) from his North Shore seat clashed on the Middle East and where they live Tuesday in their first meeting of the campaign season.

Former White House adviser Jay Footlik criticized Democratic primary opponent Dan Seals for saying during his previous congressional run that he would support “peace” in a conflict between Iran and Israel.

“His statement saying that he’d ‘come down on the side of peace’ suggests to me that he may not know what to do,” Footlik said during an hourlong appearance before the Chicago Tribune editorial board. “And I don’t know if he necessarily has the experience to provide the kind of support that Israel and our other crucial allies in that region need from the United States.”

The district is 20 percent Jewish, so the Israeli question is important there.

The two candidates really don’t like each other and the Tribune editorial board “debate” is one of the first times that they’ve agreed to appear together.

* Seals lives just outside the district (as he did when he ran last year), and had a pretty good response for why he hasn’t moved into the 10th…

“If I was a millionaire I could certainly just pick up and buy a new home, [but] I’m not a millionaire, and if you want more millionaires in Congress, I’m not your man,” Seals said.

Footlik, who has made an issue of Seals’ residency, was then forced to admit that he only rents a home in the district. Oops.

* And, finally, 11th Congressional District Republican hopeful Tim Baldermann “officially” kicked off his campaign this week with a shot at one of his primary opponents, Jimmy Lee. Baldermann is vying to replace retiring GOP Congressman Jerry Weller…

[Baldermann] said he understood Lee has apparently donated to the political campaigns of both Chicago Democratic Mayor Richard J. Daley and Gov. Rod Blagojevich, also a Democrat.

“I think the reason he’s donated to those campaigns is because he’s from Chinatown - a resident of Chinatown in the city of Chicago, and it’s a fairly Democratic area,” Baldermann said.

“It’s my understanding he recently took up an address in Utica. I don’t know if he resides there. It would make sense if he has no connections with the 11th Congressional District. He’s from Chicago. I don’t know what his motivation was.”

Partisanship, race-baiting and Chicago-bashing all in one sentence. Wow.

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Morning shorts

Wednesday, Dec 12, 2007 - Posted by Paul Richardson

* Purchase tickets here for the December 16th performance of “No-El, Or How the Blagojegrinch Stole Christmas” - Our Capitol Fax holiday party

* Editorial: Casear’s wife

No doubt Mrs. Blagojevich performed work in exchange for her real estate commissions. Personal friendships also may have helped her land business from people with state connections. She grew up in politics, so she obviously has connections of her own.

Still, it’s hard to avoid the suspicion that the governor’s family is making money from people who might expect more than just their thanks. The Blagojeviches don’t have to go as far as Julius Caesar did — he divorced his wife, Pompeia, when she was involved in scandal. But they should remember what he said: “Caesar’s wife must be above suspicion.”

* Illinois horse-slaughtering plant plans appeal of state law

A series of lower-court decisions upheld a law signed by Gov. Rod Blagojevich in May that effectively shut down the plant by banning the import, export, possession and slaughter of horses for human consumption in Illinois. Cavel, which is based in Belgium, challenged the ban on constitutional grounds, claiming the law violated interstate and foreign commerce rules because the meat is shipped overseas. The plant had been in operation for about 20 years and had 60 employees.

* Don’t like sales tax hike? How about tax on booze?

* Tribune Editorial: Maria Pappas’ surprise

As Cook County Board members gather Wednesday to mull tax increases, county Treasurer Maria Pappas has a sweet surprise for them: millions of dollars in bonus revenue that she already has collected thanks to sheer imagination — the kind of imagination Cook County has to exhibit before it asks taxpayers for one more penny.

Pappas is the pariah that other county executives love to loathe. She relentlessly modernizes and downsizes. Since she took office in 1998, she has reduced her employee head count from 258 to 131. Her total budget, including a terrific automation group that did not exist back then, is lower than it was when she arrived.

Pappas will tell the board that the fees she is now generating will cover a good 60 percent of what it costs to run her office. Pending a ruling from the state’s attorney that it is legal for her to allocate the money, she will slash the amount she requests from the County Board — from taxpayers, really — by a corresponding $7 million.

* Cook Co. stops paying for non-residents prescriptions

Health services bureau spokesman Sean Howard estimated those prescriptions cost Cook County $5 million last year. The burden had become too great to continue serving those who don’t live in the county, he said.

Koehler and officials in other counties said Tuesday they are optimistic residents turned away by Cook County could participate in programs that provide federal money to assist with drug costs.

* Chicago State copier buys were inside deal

State Rep. Monique Davis (D-Chicago), whose district includes Chicago State, was critical of the copier purchase and the lax oversight by the university’s board of trustees.

“If somebody was working there and started a business, it is wrong and it is unethical to simply give him a contract and not put it out for bid,” she said. “It is more than wrong. It is a disgrace.

* One of the ‘hardest jobs on the planet,’ Chicago Housing Authority chief; more here and here

The CHA is also broadening its work-or-study mandate. Under a policy to be decided next week, 5,000 able-bodied adults who live in traditional public housing would be required to work or attend school at least 15 hours a week immediately and 20 hours a week by 2010. Those who didn’t make a good-faith effort would be evicted, beginning in July.

* Chicago may ban chicken as pets

The Chicago City Council is expected to vote today on a proposal to ban chickens, a former barnyard denizen that is pecking its way into cities across the country as part of a growing organic food trend among young professionals and other urban dwellers.

Chicken lovers say the birds make great pets, don’t take up much backyard space and provide tasty, nutritious eggs.

* West Chicago says ex-official secretly installed spy software on city computer

* More speeders on new I-355 extension

They see the wide, open lanes. They feel the fresh, virgin pavement. They experience the light, sometimes non-existent, traffic.

It’s a perfect recipe for speeding.
“A lot of them thank me for stopping them,” Janecek said. “Because it is such a smooth road, you can get lost in your drive.”

The bucolic forests and farms up and down the road also are creating admirers.

Unfortunately, they are behind the wheel.

* Chicago Reader: A little TLC for the Reader

The new leaner, meaner, more melancholy Reader has come in for a little sympathy from New York Times media writer David Carr. A former editor of the Reader’s sister paper in Washington, D.C., the Washington City Paper, Carr’s Monday column tells the story of the Reader’s devastating layoffs last week (City Paper took the same kind of beating) by focusing on John Conroy, one of the four writers dismissed here. Last week, after the city of Chicago reached settlement agreements with four men who had accused its police officers of torturing them, Conroy received a note that may have given him some consolation.

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Protected: SUBSCRIBERS ONLY - Today’s Capitol Fax (Use all caps in password)

Wednesday, Dec 12, 2007 - Posted by Rich Miller

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Messages to readers

Tuesday, Dec 11, 2007 - Posted by Rich Miller

* My intern for next year, Kevin Fanning, needs a place to stay in Chicago this weekend. Kevin wants to go to the holiday party Sunday night, but requires a crash pad. If you can help him out, please use the “Contact Me” button just under the blog’s banner and I’ll forward your info to Kevin. We’ve already found a place for Paul, who relinquishes his princely crown in January. Thanks for any help you can provide.

* From a press release…

The Web site chicagoclassicalmusic.org — of which the Chicago Symphony Orchestra is proud to be a member organization — has been revitalized and now features many exciting special offers such as free classical music downloads and exclusive “Hot Deals” on concert tickets and recordings.

Beginning December 5, in celebration of the new redesign, chicagoclassicalmusic.org offers free music downloads, the first of which features the fifth movement of Mahler’s Third Symphony with the Chicago Symphony Orchestra and CSO Principal Conductor Bernard Haitink.

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Lost in the shuffle

Tuesday, Dec 11, 2007 - Posted by Rich Miller

* This story received absolutely no play anywhere, but I’ve been hearing the same thing for weeks. Apparently, putting something in the Sunday Sun-Times is akin to burying it…

Federal authorities are investigating whether Gov. Blagojevich’s former lead adviser on gaming policy properly disclosed personal gambling winnings and losses to the tax man, sources told the Chicago Sun-Times. […]

His lawyer, Michael Monico, said Kelly has done nothing improper.

“We have no control over what the government is going to do in this matter, but two things we do know: Mr. Kelly has paid millions of dollars in taxes, and, second, at the end of the day, the evidence will show that Mr. Kelly has no taxes due and owing,” Monico said. […]

Before his 2003 appointment by Blagojevich, Kelly wagered hundreds of thousands of dollars at Illinois casinos run by people he later dealt with on the state’s behalf. It was not clear if the wagering that has drawn federal interest took place in Illinois casinos, Las Vegas or some other gambling venue.

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Protected: SUBSCRIBERS ONLY - Capital bill; Schock; Rita; Dunn; Black; Molaro; Coulson; Schools (Use all caps in password)

Tuesday, Dec 11, 2007 - Posted by Rich Miller

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Question of the day - Blog reader awards, Round One

Tuesday, Dec 11, 2007 - Posted by Rich Miller

OK, let’s use today’s QOTD to vote on our first round of annual Capitol Fax Blog awards. We have three questions to ponder today, so label them accordingly in your responses. Please try to give this some thought and avoid snark and negativity. If you’re gonna knock somebody’s choices down, provide reasons and provide your own nominations in all categories. Purely negative comments will be deleted.

1) This idea, slightly modified, comes to us from Trafficmatt…

Which state legislator best empitomizes public service (i.e. sincerely helping politicians, lack of corruption, being there, etc.). This may be a legislator that doesn’t necessarily get a lot of newspaper time, but is just working behind the scenes and getting stuff done.

[No Congresscritters, please. We’re looking for state legislators only.]

2) Snidely Whiplash suggested this one, slightly modified by myself: Most effective local mayor of a city with less than one million people.

3) What should we call these awards?

Give these plenty of thought, please. Thanks.

…Adding… Please explain all your answers. Thanks.

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Caveats

Tuesday, Dec 11, 2007 - Posted by Rich Miller

* We talked about Speaker Madigan’s proposed gaming expansion bill yesterday. Today, let’s look at some caveats. First up, is a final deal likely soon? Maybe, maybe not…

State Sen. Christine Radogno, a Lemont Republican who has been a negotiator at the legislative talks, said she would not “characterize today’s development as putting us on the eve of a deal” for the remaining issues. A resolution to all the issues could occur in January, she said.

January is surely a possibility. Our woes continue.

* State Sen. Terry Link, a big expansion proponent, also had some doubts…

…Link said his concerns start with a provision that would give 2 percent of gross revenue to the host community and 3 percent to the host county. Previously, those numbers were 5 percent to the city and 1 percent to the county.

“I’ve got a little bit of a problem with that,” Link said. “Waukegan has to put in all the infrastructure (but) the county gets more revenue? That makes no sense. This is not a done deal by any means.”

Link added said he’s “not a proponent of slots at the tracks,” because “what we do there is basically set up five more land-based casinos.”

He also predicted that provisions about minority and women investors “will be a big stumbling block” because it allows for individual investments in what would be a multimillion-dollar bidding process.

* And what about that minority investment issue? The Tribune has more…

Senate President Emil Jones (D-Chicago), who pushed his own massive gambling expansion through his chamber earlier this year, was noncommittal. But his spokeswoman later directed reporters to state Sen. Rickey Hendon (D-Chicago), who predicted the Madigan-backed plan would be “DOA” and never come up for a Senate vote.

Hendon said his biggest problem is the “crumbs” it throws to the minority business community. Minorities would get to own 20 percent of each of the two new non-Chicago casinos, and women would get to own 5 percent, with would-be investors going into a lottery system.

“The speaker has made his mind up that any black with wealth should have no opportunity to participate, but he is not saying that to white people,” Hendon said. “That is called discrimination. That is called Jim Crow. I know people don’t want to talk about race these days, but we are not going to run away from it.” […]

Rep. Marlow Colvin, a Chicago lawmaker who is co-chairman of the Illinois Legislative Black Caucus, also is opposed to Madigan’s set-aside plan.

“You can go into any Charles Schwab office in the country and get the same kind of return on a $5,000 investment,” said Colvin, who didn’t rule out voting for Madigan’s gambling package. “You don’t need a riverboat to do that.”

Jones often prefers to stay above the fray and allow Hendon to speak for him, so directing reporters to Hendon was telling.

* And then there’s this…

The House hopes to vote on the gambling expansion plan and mass transit aid early next week, but a construction projects bill may not be ready then, [Madigan’s spokesman Steve Brown] said.

Without a capital bill, the vote on the transit plan could turn out the same as before, which means no progress.

* More gaming stories…

* Madigan makes gambling proposal

* Madigan pitches gambling plan to fix cash woes

* House Dems push gaming bill

* Madigan backs three new casinos

* Gambling plan could put slots at Fairmount, boost casinos

* Gaming plan includes Chicago casino

* State legislators propose Chicago casino, slots at Arlington Park

* Bethany Jaeger: The chips may fall, but…

* Critics say gaming expansion has huge social costs

Discuss.

37 Comments

Congressional roundup

Tuesday, Dec 11, 2007 - Posted by Rich Miller

* State Sen. Chris Lauzen, a GOP congressional candidate hoping to replace retiring incumbent Denny Hastert, sent an open letter to Hastert yesterday. It starts out with praise…

Congressman Hastert, I respect you and appreciate your more than 25 years of public service. As one of the recently most powerful men in America, I ask that, rather than taking a predominant role in the coming Republican Primary election by endorsing any individual, please let the people decide.

Any candidate running for the Republican nomination to succeed you would feel honored by your endorsement.

Lauzen repeats his request that Hastert not endorse anyone, and continues with this bizarre little passage…

At first, I was very concerned that your health was failing somehow, and I sympathized with you and your family. But, you have assured us repeatedly that there is no health problem and we are relieved on your behalf.

I’m not sure why that was put in there, but whatever. Next, some more criticism…

Many folks express their wonder to me about the apparent necessity to spend $1 Million of taxpayer funds that could better be spent on national security, healthcare, or education, on the March 8, 2008 Special Election. Now that you are stepping away from your official duties, I believe that citizens and voters would be distressed if you reassert yourself and use your considerable clout to influence the outcome of an impending primary.

Most people to whom I listen are pretty sick these days of the results that have been produced by big money and big clout in Washington, D.C. and Springfield.

To sum up: I respect you, would love to have your endorsement, but think you should pass on that opportunity. Oh, and by the way, slap, slap. Strange, that.

* React…

Oberweis spokesman Bill Pascoe lashed out at Lauzen, criticizing him for hiring Kane County Republican Party Chairman Denny Wiggins to work on his campaign last month.

“I find it hypocritical in the extreme that career politician Chris Lauzen decries the influence of big money and big clout after having used big money himself to purchase the endorsement of the most powerful county party chairman in the district,” Pascoe said.

In response, Lauzen criticized Oberweis for not speaking for himself, and called Pascoe a “highly paid, out-of-state consultant” who doesn’t care about the 14th District. Lauzen said he did not mean to be critical of Hastert in his letter, but merely express the opinions of people he has spoken to in the district.

He didn’t mean to be critical of Hastert? Then he should’ve proofread the letter he wrote.

* More congressional stuff, compiled by Paul…

* Two Democrats opening to joining race to replace Versace, Circuit Judge Rick Grawey and former state Rep. Bill Edley.

* Democrats look to replace Versace

* Peoria Pundit: Morris seeks votes at his D.C. alma mater, doesn’t get them

* McLean Co. Pundit: Reviewing the IL congressional races

* Five file for shot at replacing Hastert

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Morning shorts

Tuesday, Dec 11, 2007 - Posted by Rich Miller

* Purchase tickets here for the December 16th performance of “No-El, Or How the Blagojegrinch Stole Christmas” - Our Capitol Fax holiday party

* Sun-Times Editorial: Sharpton’s anti-Chicago Olympic sentiment could backfire

So Sharpton is willing to jeopardize the economic benefits that the Olympics could bring to the African-American community, the same people most victimized by police brutality? His demands expose the New Yorker as having a singular, narrow focus, one that ignores recent Chicago Police reforms.

* Tribune seeks access to state police files of Blago fundraising probe

* Aaron Chambers: Attorney General put in a tight spot

* Tribune Editorial: How to avoid Stroger’s taxes

All through 2007, Stroger’s allies didn’t hold him to his “solemn oath.” Many of them figured budgeting for 2008 would be like the good old days: They’d harrumph and whine about how impossible it is to cut Stroger’s $3 billion-plus budget — and in the end they’d get their way.

Maybe they will. But county government has been inexorably approaching this bitter showdown for several years.

* Zorn: City torture payoff reeks of bad message

Hobley, who had no previous criminal record and was employed as a medical technician at the time of the fatal fire, became one of the cause celebres in the local campaign against capital punishment. When former Gov. George Ryan commuted every death sentence in Illinois in early 2003, Hobley was one of four inmates to whom Ryan granted a full pardon and immediate release.

If the U.S. attorney’s office is able to revive the case and convict Hobley on federal charges related to the same crime, Feuer said that Hobley’s damage claims against the city would be far weaker and his cash settlement from a civil jury would be far smaller.

* Over 200 CPS teachers certified as ‘masters’; more here

More than 200 Chicago Public Schools teachers were certified as “master teachers” in 2007, the second-highest total of any school district in the country this year, Mayor Daley said today.

Certification from the National Board for Professional Teaching Standards is the highest credential an educator can earn.

With 208 “master teachers” this year and 860 total, Daley’s goal of having 1,200 of the most qualified teachers by the end of next year is well within reach.

* More farmers seeing wind as cash crop

* Do state troopers get enough training?

* War Room: “Oh Dana’

At a White House press briefing on Oct. 26, a reporter asked [UIS Public Affairs Reporting grad] Dana Perino about Vladimir Putin’s suggestion that a U.S. plan to base parts of a missile shield in Europe was similar to the events that led to the Cuban missile crisis.

Perino’s response: “Well, I think that the historical comparison is not — does not exactly work. What I can say is what President Putin went on to say, which is that the president and President Putin have said that we can work together on this.” […]

Appearing on NPR’s “Wait, Wait … Don’t Tell Me” over the weekend, Perino said she “panicked” when she got the Cuban missile crisis question because she wasn’t exactly sure what the Cuban missile crisis was. “I really know nothing about the Cuban missile crisis,” Perino said. “It had to do with Cuba and missiles, I’m pretty sure.”

Perino said she went home that night and asked her husband, “‘Wasn’t that, like, the Bay of Pigs thing?’ And he said, ‘Oh, Dana.’”

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Protected: SUBSCRIBERS ONLY - Raw audio of this morning’s gaming press conference

Monday, Dec 10, 2007 - Posted by Rich Miller

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This just in… Madigan unveils gaming plan… Suit barred… No special session this week?…

Monday, Dec 10, 2007 - Posted by Rich Miller

* 11:59 am - The AP has a brief story up about the House Democrats’ new gaming proposal. Since the subscriber-only post is quite long, I’m going to leave it behind the firewall. However, the plan includes a $200 million price for a new Chicago casino (which will surely be seen by many as too low), 3,600 new slots at racetracks and a tough new ethics proposal. For the first time, Speaker Madigan has relented to pressure from the governor and the other leaders and agreed to a 70-30 split of the gaming proceeds between capital projects and education spending.

You can read the entire gaming proposal at this link [pdf file] or this link [txt file].

* 12:02 pm - As I told subscribers this morning, House GOP Leader Tom Cross is meeting with the governor and Senate President Jones at the moment to discuss the House Democrats’ gaming plan. I’ll pass along more when I know more, but the spending side of Madigan’s proposal could prove to be problemmatic, I’m told.

* 12:19 pm - Here’s the language on minority and female investment that we talked about the other day…

Once a license has been awarded, the winning bidder must allow for 25% of their equity interest to be put up for sale in $5,000 increments. The 25% shall be made available in the following manner: 20% for minority interests and 5% for female interests. If more applications are received than exist available shares, a lottery-based system shall be implemented with complete Gaming Board oversight.

This appears to apply only to the new private casinos, not Chicago’s publicly owned casino.

* 1:09 pm - The AP has a full story up now…

House Speaker Michael Madigan showed his hand in gambling negotiations Monday, proposing a major expansion that would raise $1 billion a year through two new casinos and thousands of slot machines at riverboats and horse tracks. […]

In a letter to lawmakers, Madigan said the House will meet next Monday to consider the proposal. […]

Blagojevich spokeswoman Rebecca Rausch said the governor’s office hadn’t seen details of the proposal and would need to compare them with what leaders had discussed in recent weeks.

[Emphasis added.]

* Daily Herald…

But one Republican familiar with ongoing talks cautioned that this should not yet be described as a “deal.” […]

The two Democratic state lawmakers who unveiled the gambling plan said they think a deal is close.

“We think it’s 99 percent there,” said state Rep. Lou Lang, a Skokie Democrat.

* 1:45 pm - React from Senate President Jones’ spokesperson…

“We have not seen language of the legislation yet. There are issues that were described in the meeting that we could support, others still need work. Once we see the actual legislation, we can begin to move forward.”

* 3:56 pm - This is not exactly earth-shattering because of the other pre-existing suit in Cook County, but here’s part of the AP story…

A Sangamon County judge barred a lawsuit against Governor Rod Blagojevich’s expanded health care plan Monday. But that’s only because a similar one is proceeding in Cook County.

Circuit Judge Leo Zappa agreed with lawyers for Blagojevich that allowing the lawsuit would be unfairly duplicative because a similar suit in Cook County was OK’d Monday.

The Illinois Coalition for Jobs, Growth and Prosperity sued the governor last week to stop him from adding 147,000 parents to state-subsidized health insurance. Blagojevich announced plans to expand the program even though he didn’t have authority from legislators.

React from the governor’s office…

We’re pleased that Judge Zappa today barred the lawsuit filed by two Republican activists designed to take healthcare away from families. We will continue to fight any efforts that keep hardworking people from getting the healthcare coverage that they need.

* 3:59 pm - I’m hearing from two different sources that there will likely be no special session this week. The Senate may hold a hearing on Friday, but it looks like we’ll all be back at the grind on Monday.

* 4:17 pm - Good riddance.

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Protected: SUBSCRIBERS ONLY - House Democratic gaming proposal *** Updated several times ***

Monday, Dec 10, 2007 - Posted by Rich Miller

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A few notes to readers and subscribers

Monday, Dec 10, 2007 - Posted by Rich Miller

* To subscribers: I’ll be posting the House’s new gaming plan for subscribers only right around 10 this morning. I’ll take the password protection off once other media outlets jump in, but if all goes well you should get it first.

* For everyone: Don’t forget to purchase tickets here for the December 16th performance of “No-El or How the Blagojegrinch Stole Christmas” - Our Capitol Fax holiday party.

* We’re going to start voting tomorrow on our “Best of” awards that we debated last week. I’m still going through the list and deciding which to choose.

* I was mentioned by Congressman John Shimkus last week during committee debate over new FCC rules on media ownership. Shimkus makes a good point that maybe the worries over consolidation (particularly in large cities) are somewhat overblown…

[audio:SHIMKUS_CAPFAX.mp3]

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Question of the day - Blagojevich and Bush

Monday, Dec 10, 2007 - Posted by Rich Miller

* My syndicated newspaper column this week attempts to explain the battle over JCAR and put it into perspective…

Now that Gov. Rod Blagojevich has unilaterally declared a previously obscure but always important legislative committee has no real power, things could radically change at the Illinois Statehouse.

* More on what could happen now that the governor has said that JCAR is essentially irrelevant…

I asked House Speaker Michael Madigan what impact the governor’s move would have. His response: Bills are going to get longer.

In the past, the General Assembly could avoid writing the minutiae of implementation language into most legislation because JCAR had a check on the administration’s rulemaking authority. Now, with the governor throwing JCAR out the window, legislators will likely want to make sure they write as much detail as they can into their proposals. As a result, the system may become lots more cumbersome.

Lawmakers may also want to revisit old laws and update them in an attempt to prevent Blagojevich from making even more mischief.

* And the conclusion…

Whenever an executive tries to grab lots more authority, it’s usually seen by the legislative branch as an abuse of power, and that branch often ends up with more power than before. The backlash against President Nixon’s notorious power grabs produced all sorts of laws designed to limit the executive’s authority, and the same thing is starting to happen with President Bush.

Blagojevich has seemed intent since day one on remaking the governor’s office into a far more powerful branch, often overstepping his authority or “misreading” the Constitution. Considering his abrasive tactics, massive unpopularity and bungled Statehouse execution, he could wind up leaving the governor’s office as a hobbled shell of its former self.

* Now, the question: Compare Gov. Blagojevich to President Bush.