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Question of the day

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Could it get any weirder? Explain.

  44 Comments      


*** UPDATED x1 - Uber responds *** Lightfoot says Uber is buying off black ministers to oppose her rideshare tax plan with $54 million

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* StreetsBlog Chicago

In case you missed it, last week Crain’s Chicago ran an excellent piece by columnist Greg Hinz on Mayor Lori Lightfoot’s plan to raise the tax on traffic-clogging solo and downtown ride-hail trips, while lowering the fee for more sustainable shared rides in the neighborhoods, and earmarking about $2 million of the revenue annually to fund transit. He did a great job of explaining why, despite Uber and Lyft’s self-serving claims that the initiative would hurt South and West side residents, “in fact, it targets Lincoln Park types, and it is intended to shore up CTA service that is far more important.”

However, this weekend Uber tweeted out an earlier Crain’s op-ed on Lightfoot’s proposal, written by some of its official allies in local chambers of commerce, which is full of misleading — or even downright false — statements about the plan. The piece was penned by Illinois Hispanic Chamber of Commerce head Jaime Di Paulo, Illinois Chamber of Commerce chief Todd Maisch, and Chicagoland Chamber of Commerce senior vice president Michael Reever. All three organizations are listed as partners of Moving Illinois Forward, a lobbying group for Uber and Lyft. Let’s take a look at some of the claims from their op-ed.

Go read the rest. Good stuff. Lots of disinformation out there.

* From November 6

A group of more than 30 South and West side ministers is complaining that Mayor Lori Lightfoot’s proposed ride-share tax increase will hurt low-income riders and drivers, but city officials dispute the claim.

“Ride-share has truly been a blessing,” said the Rev. Walter Turner of New Spiritual Light Missionary Baptist Church in the South Shore neighborhood, at a news conference on Tuesday. Turner said the proposed fee hike would have a “major impact” on people trying to get to doctor visits or buy groceries.

“Do not tax our people,” said Turner, who was among the group of ministers who signed a letter to Lightfoot complaining about the fees.

* Today…


That’s a pretty darned bold statement to make. Let’s see if she can make that stick. If not… well, let’s just see what happens first. Whew.

…Adding… Sun-Times

“Is this the one where they’re paying off black ministers by $54 million? That one? Or is this a new one?” the mayor said.

“They offered up black ministers $54 million — a one-time deal — if they would convince the mayor to do away with any other kind of regulation. And as we walked these ministers through the realities of what’s actually at stake here, I think they realized that, frankly, they’d been hoodwinked.”

Pressed for proof, Lightfoot said, “I’ve had a number of ministers who’ve met with us and said, `Uber promised us $54 million if you [convince the mayor to] back off.’ … We’ll get those names to you.”

*** UPDATE *** Response…


If this was about $54 million in revenues for the city and not $54 million in payoffs to black ministers, she’s got some walking-back to do. Again.

This kinda reminds me of when Maryann Loncar said she witnessed then-Rep. Lou Lang being offered a $170 million bribe, but it was actually about new revenues for the state.

  49 Comments      


Towns selling sewer systems to pay down pension debt

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Brian Brueggemann

In 2018, Alton’s pension funds for firefighters and police officers had about $117 million in unfunded liabilities — the retirement money that will have to be paid to retirees.

But in June, the city cut that shortfall nearly in half. How? They sold the city’s sewer system to a company, Illinois American Water, for $53.8 million.

Godfrey also sold its wastewater system to Illinois American, for $13.5 million.

And now Granite City, which has $83 million in unfunded liabilities in its police and firefighter pension funds, is looking to sell part of its wastewater system.

But Kent Redfield, an expert in Illinois politics and government, warned that selling off city assets could be a bad move, particularly if the sale provides only a quick, bandage repair to a long-term pension problem. He said once a city sells its sewer system, there’s little chance the city will ever own it again.

“You can only sell your car once to make your house payment,” Redfield said. “Is it a long-term fix, or is it a temporary Band-Aid that kicks the can down the road?”

I’m not a fan of these sales. At all. But this isn’t about selling your car to make a house payment. It’s about selling your car to pay off as much as half your mortgage, which I’d say is not a terribly bad idea.

…Adding… I’m seeing a lot of comments like this…

This is exactly like the city’s parking meters

Nope. That’s ridiculous.

Mayor Daley spent all the parking meter money right away. The lease had no lasting value. If he had put the windfall into the city’s pension funds, Chicago would be a whole lot better off today.

  38 Comments      


False alarm on Asian Carp?

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Last week

Federal and state agencies announced [last] Friday that invasive Asian Carp DNA has been found in Bubbly Creek in Chicago, which is about 5 miles from Lake Michigan. This spike in eDNA so close to Lake Michigan is a cause for alarm. Agencies have commenced increased sampling and monitoring in the area.

In reaction to this alarming news, Alliance for the Great Lakes President & CEO Joel Brammeier released the following statement:

“This discovery is yet another sign that we are teetering on the edge of a nightmare scenario. The time for delay is over…”

* Today

Officials are eyeballing the metropolitan sewer system as a possible source for invasive carp genetic material found in the Chicago River last month in amounts that puzzled wildlife experts and triggered emergency searching for live fish.

So far, netting and electrofishing have found no traces of silver or bighead carp after agencies announced Nov. 1 that routine testing around the Chicago Area Waterway System turned up 76 positive carp genetic material detections in Chicago’s Bubbly Creek. […]

There’s a suspicion the DNA hits could be related to either human waste or wash water from fish markets entering the sewer system, she said. City fish mongers sell silver and bighead carp and the state of Illinois is promoting commercial catch as a means of species control.

[Amy McGovern, aquatic invasive species supervisor with the U.S. Fish & Wildlife service] said the Racine Avenue station is “pumping a significant amount of material into the water near a community that eats a lot of dead Asian carp.”

The wildlife service wants to begin sampling inside the sewer system. […]

The Racine Avenue pumping station on Bubbly Creek transfers wastewater to the Stickney treatment plant from Chinatown and much of the city south of the river down to 87th Street. According to MWRD, the station discharged to the creek twice just prior to the eDNA sampling; 731 million gallons on Oct. 3 and 185 million gallons on Oct. 5.

  11 Comments      


Boost Your Cannabis License Application by Partnering with Labor

Wednesday, Nov 13, 2019 - Posted by Advertising Department

[The following is a paid advertisement.]

Labor provisions in the Illinois Cannabis Regulation and Tax Act highlight our state’s belief that organized labor can and should represent workers within the industry, if they so choose.

Illinois Cannabis Unions is a coalition of some of the largest and most forward-thinking labor unions in Illinois who already represent workers in the cannabis industry or will seek to represent new employees.

Local 881 UFCW, SEIU Local 1, Local 399 IUOE, and Teamsters Joint Council 25 will help grow this new industry, advocate for its success, and support the thousands of workers across all racial lines and backgrounds throughout our state who will help staff and service legal cannabis. No matter the background or where we they come from, all workers deserve a better future for their families, and that starts with joining in union.

The law awards up to five points, out of a possible 250, for applicants entering into a “labor peace agreement” with a labor organization recognized under the National Labor Relations act.

If you plan to apply for a license, are a current operator or investor, or are generally interested in learning more, boost your application by partnering with us today.

Start the process at ilcannabisunions.com.

  Comments Off      


*** UPDATED x1 *** City Club rejects Jay Doherty’s resignation

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* I somehow forgot to include this in today’s Corruption Roundup post. Greg Hinz

The City Club of Chicago is contending with the fallout of its president’s involvement in a federal probe of Commonwealth Edison influence in Springfield. Weeks after Jay Doherty’s City Club offices were raided—and in the wake of disclosures that the prominent public affairs group’s chief was paid more than $3.1 million over a span of years by the utility giant—a growing roster of speakers are canceling upcoming City Club appearances. […]

After some internal debate, the club’s board decided to reject Doherty’s offer to resign, insiders tell me, at least in part because Doherty in recent years has been critical to the club’s success in landing prominent public officials to its forums, including governors and mayors, U.S. senators and even candidates for president.

“Mr. Doherty is the president of the club. I don’t know of any move afoot to change that,” club attorney Michael Hayes told me. “I hope he stays. He’s largely the reason we’ve been successful.”

At the same time, club leadership has declined to press Doherty for some explanation of exactly what he did to earn that much from ComEd, a state regulated entity, and to answer whether that big check conflicts with the club’s very public role in helping shape city and state public policy.

Yeah, well, they can add me to the list of people who aren’t speaking this year.

*** UPDATE *** Look who’s speaking tomorrow…

  50 Comments      


It’s just a bill

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* From the bill creating the Property Tax Relief Task Force

Within 90 days after the effective date of this amendatory Act of the 101st General Assembly, the Task Force shall submit an initial report to the Governor and General Assembly outlining short-term and long-term administrative, electoral, and legislative changes needed to create short-term and long-term property tax relief for homeowners.

The Task Force shall submit a final report to the Governor and the General Assembly… by December 31, 2019.

The task force obviously missed the first deadline

The law was enacted Aug. 2. The 90-day deadline, Oct. 31, came and went. With the initial report nowhere to be found and only a couple of days left in the fall veto session, lawmakers won’t be able to take any action on the task force’s suggestions this year.

A spokesman for the task force referred questions to the eight co-chairs of the task force.

State Rep. Deanne Mazzochi, R-Elmhurst, said Republicans have given Democrats a number of suggestions, but said Democrats have shown no interest in creating actual legislation to take up those ideas.

“The initial draft was supposed to be done on October 31st as far as I know,” she said. “The governor and their staff missed the deadline, so now we’re going to be waiting until December 31st for a final report, but obviously if we don’t even have a draft it’s very difficult for us to put input into the final draft.”

The governor’s office has two members on the task force, but neither are co-chairs. So, blaming the governor for this is a bit weird. It’s not their task force.

* Last month

When Governor J.B. Pritzker appointed former state Senator Bill Haine to serve on the State Board of Elections in May, the former downstate Democratic Senator had to surrender control of his campaign fund and the $286,786 in it. But now, months later, Haine controls the same money, just under a different name. […]

Haine said he believes the law would allow him to spend money in his son’s race [for state’s attorney], or any race, if he chooses.

The spokesman for the Illinois State Board of Elections told me this at the time

Bill Haine also consulted with our staff before joining the board about the disposition of his candidate committee. His conversion of the committee to a political action committee puts him in compliance with board rules.

Haine’s son sent me this statement last week…

There has been some speculation regarding my Dad’s political action committee, “William Haine Fund to Promote Progress of Citizens of the Metro-East.” Now that he’s on the Illinois State Board of Elections, he has made it clear that he is in the process of liquidating this account. Some have pointed out that, by law, some of this fund could be donated to my own campaign for Madison County State’s Attorney. But that won’t happen. I agree with my Dad’s plan - these funds will go to local charities, not politics

* Press release

As allegations of government corruption continue to plague the Statehouse, Republican legislators including State Senators Dan McConchie (R-Hawthorn Woods) and Jason Barickman (R-Bloomington) and State Representatives Tim Butler (R-Springfield) and Mark Batinick (R-Plainfield), announced new legislation during a press conference at the Capitol on November 13 that aims to ensure members of the Illinois State Board of Elections aren’t funding political action committees.

“Under current state law, a person can serve as a member of the Illinois State Board of Elections while at the same time run a political action committee that benefits candidates. Not only is this allowed, it’s currently happening,” said Sen. McConchie. “Common sense would dictate that no member of the State Board of Elections should be allowed to fund a campaign while simultaneously presiding over and judging legal matters regarding that campaign. It’s an inherent conflict of interest and yet another loophole in state law that enables government corruption—something that is all too familiar in Illinois.”

The bill is here

Prohibits a member of the State Board of Elections from contributing, either financially or in services or goods or any other way, to a political committee or from serving as an officer of a political committee. Requires a member of the State Board of Elections serving as an officer of a political committee to resign from the political committee within 30 days after confirmation by the Senate or within 30 days of the effective date of the amendatory Act if currently serving. Effective immediately.

* In other news

Despite House leadership calling on former Chicago representative Luis Arroyo to step down last Monday, he did not do so until that Friday. Some of his colleagues say this was not a coincidence and now they want to make sure nothing like this happens again.

Representative Mike Murphy of Springfield is calling for action on a bill that would allow lawmakers to only receive pay for days they actually worked instead of full pay on the last working day of each month.

“We need some reforms and this a pretty simple reform. The fact that you can work one day and get paid for the entire month is silly,” said Murphy.

“We had a representative recently resign the first of the month, so he’s going to be paid for the entire month. He’s going to get medical benefits, you know, insurance for the whole month. One more month will be added to his retirement and it’s just not right.”

Yep. That’s why Arroyo waited until November 1 to resign. Back in the day, legislators received their full pay up front.

  11 Comments      


*** UPDATED x3 - City is not giving up - Out of time? *** Today’s quotable

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Text from a friend regarding the gaming trailer bill…

Gaming is a plane with no wings and a lot of finger pointing about who built a plane with no [gosh-darned] wings.

Heh.

Stay tuned.

…Adding… I’m hearing the city’s police and firefighter unions are “beating down the door” in favor of the gaming bill. That will definitely help. Unions have been a big part of every major legislative success this year.

…Adding… Some language has finally surfaced. Click here. I do not think that’ll be the vehicle used because it’s a Senate Bill in the Senate. They’ll likely use it for a subject matter hearing so they can skip a full hearing if the House passes a bill.

*** UPDATE 1 *** Bad news for Mayor Lightfoot…


*** UPDATE 2 *** A city hall source tells me they have “multiple partners” working the House as hard as they possibly can to get a roll call taken today. “Hold on tight.” We shall see.

*** UPDATE 3 *** Gonna take a near miracle…


  15 Comments      


Your moment of Zen

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Oscar catching some rays and chilling outside my office…

Another pic…

  27 Comments      


Second McClain story surfaces in 13 hours

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* The BGA’s Chuck Neubauer and WBEZ’s Dan Mihalopoulos report that former ComEd lobbyist and master Statehouse insider Mike McClain was still paid by ComEd even after he retired from lobbying

The giant electric utility reported shelling out $361,000 to McClain for “legal services” in the two years after his retirement in December 2016, even though he is no longer authorized to practice law in Illinois, records show. […]

ComEd spokeswoman Jean Medina said this week McClain stopped working for the company in May. That was when the federal raid occurred at McClain’s home.

And Medina said ComEd executives believe the payments to McClain in 2017 and 2018 were “mislabeled” as being for legal services when the utility made its filings to state regulators.

“These amounts were for political consulting services,” Medina said. “Those payments were neither for lobbying nor legal work.”

* Meanwhile, Pomerantz LLP is a law firm that files a whole lot of class action shareholder lawsuits. From its website

We are investigating Exelon Corporation (EXC) (“Exelon” or the “Company”) for potential violations of the federal securities laws.

On July 15, 2019, Exelon announced that both Exelon and Commonwealth Edison (“ComEd”), owned by Exelon, had received a grand jury subpoena from the U.S. Attorney’s Office in Chicago concerning Exelon’s lobbying activities in Illinois. Then, on October 9, 2019, Exelon disclosed receipt of a second grand jury subpoena regarding its communications with Illinois State Senator Martin Sandoval. On October 15, 2019, Exelon announced the abrupt departure of Anne Pramaggiore, Chief Executive Officer of Exelon Utilities. Analysts immediately identified the criminal subpoenas and Pramaggiore’s abrupt resignation as “being directly related to each other.” On this news, Exelon’s stock price fell $2.15 per share, or 4.57%, to close at $44.91 per share on October 16, 2019. Finally, on October 31, 2019, Exelon disclosed that the U.S. Securities and Exchange Commission had also opened an investigation into the Company’s lobbying activities. On this news, Exelon’s stock price fell $1.17, or 2.51%, to close at $45.49 per share on October 31, 2019.

  11 Comments      


Sen. Van Pelt has new “multi-level marketing” scheme

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* Remember this?

Dozens of social media posts and promotional videos posted online reveal State Senator Patricia Van Pelt, a Chicago Democrat, is looking to cash in on cannabis and go “riding the wave with the rich” in the final days leading up to a highly anticipated vote that could legalize recreational marijuana for adult use in the state.

* And this?

Senator Patricia Van Pelt, a Chicago Democrat, has been removed as a co-sponsor of the bill to legalize recreational cannabis after a report revealed she was selling tickets to her get-rich-quick seminars where she offered investment tips on hot cannabis stocks.

* She’s still at it

Despite her gaudy invitation for paying customers to become “marijuana millionaires,” the fine print on Van Pelt’s new multi-level marketing materials warns of high risk and low rewards.

A disclaimer on her company website lists the starting cost for new members at $500, and warns that fewer than four percent of affiliates will ever earn enough commission money to recoup that cost. A compensation chart on her company’s site says 89 percent of participants make less than $100 per month.

And she’s apparently making up claims

Toward the end of the winding 18-minute call with her fellow “Wakannapreneurs,” Van Pelt made a stunning claim that has since been disputed.

“I signed up Senators, and the Secretary of State, and the Cook County Clerk of the Circuit Court,” she said.

Reached by phone on Tuesday, a spokesman for Secretary of State Jesse White, whose office is overseeing an investigation into Van Pelt, vehemently denied any business relationship with Van Pelt, and said her account was “embellished.”

“Secretary White has nothing to do with Senator Van Pelt’s business,” spokesman Dave Druker said.

Dorothy Brown also denied involvement and Van Pelt walked it back.

The odd thing about all this is Sen. Van Pelt is a quiet legislator. She only passed one, small bill this year. You’d never know how gregarious and risk-taking she is in her side hustle. Weird.

Anyway, there’s plenty more to Mark Maxwell’s story, so go read the rest. Bizarre.

  15 Comments      


*** UPDATED x3 - EtO bill dies in SEXC - Insulin bill passes - Pension consolidation bill agreement *** Veto session updates

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* The Senate Revenue Committee is meeting today at 11 in Room 400 to take up the aviation repair tax credit bill, HB3902, that Gov. Pritzker has vowed to veto. The Senate Executive Committee meets today at noon in Room 212 to take up HB3888, the ethylene oxide phase-out bill. Keep an eye on SB516, which might possibly be used as the gaming vehicle bill, although it could start in the Senate with a different bill.

*** UPDATE 3 *** The House bill was apparently just too stringent for Senators to climb aboard. The backstory is that Rep. Rita Mayfield (D-Waukegan) has a primary opponent who is an EtO activist. So, they got the job done for her in the House…


…Adding… IMA…

“As recently noted by the U.S. Food and Drug Administration, the number of facilities using ethylene oxide to sterilize medical equipment is limited and additional closures could result in years of shortages of critical medical devices,” Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “Illinois recently enacted bipartisan legislation imposing the toughest regulations on ethylene oxide in the nation. That measure should be allowed to be fully implemented while a comprehensive, long-term solution is explored by state and federal officials.”

…Adding… Medline…

We are grateful legislators recognize the need for additional study of this important issue, which comes amid warnings from the U.S. Food and Drug Administration that additional closures of facilities using ethylene oxide to sterilize medical devices could lead to equipment shortages that compromise patient care.

Medline’s top priority is the safety of our employees and the communities we operate in and we remain committed to working in partnership with state and federal officials.

[ *** End Of Update *** ]

* Very good point at the end of Hannah Meisel’s report

A proposal to ban flavored tobacco products would not include traditional tobacco products. An amendment filed Tuesday on SB 668 would ban all flavors of vaping products — including mint and menthol — leaving only tobacco-flavored vapor products on the market. This latest amendment is a departure from negotiations that as of Friday included a ban on flavored cigarillos, but allowed for mint- and menthol-flavored vape products like liquids and one-piece e-cigarettes such as the ones made by vaping giant Juul. The Black Caucus has pushed hard for menthol cigarettes to be excluded from any sort of flavored tobacco ban, as menthol cigarettes have been targeted at African Americans since their introduction to the market decades ago. State Rep. Thaddeus Jones (D-Calumet City) told The Daily Line that he also opposes “regulations that harm businesses near the Indiana border,” saying attempts to ban menthol and other tobacco products “only [exacerbates] the significant black market sales of loosies and single packs in our communities. This hurts local businesses who are struggling to keep afloat at a time when investment in our communities is not as strong as it needs to be.” But SB 668, sponsored by Senate President John Cullerton (D-Chicago) is a vehicle bill that has not yet been over to the House, meaning its chances for full passage this week are extremely slim, given the constitutional requirements that bills be read into the record on three separate days.

Yep. After much hype, the air has at least temporarily gone out of this issue.

* Also from Hannah

House Speaker Mike Madigan (D-Chicago), who on Monday called for other Democrats to pick a replacement without Arroyo, told reporters he agreed with Gov. JB Pritzker’s contention that a large-scale ethics package should wait until January. “I agree with the governor,” Madigan said Tuesday after a lengthy House Democratic caucus. “I think he’s correct. We should take some action this week, and then we should move toward a fuller study in the long-term.”

* One more from Hannah

A bill that would partially consolidate Illinois 649 suburban and downstate police and firefighter pension funds is on track, despite a hurdle that nearly derailed the bill Tuesday.

SB 1300 passed the House Personnel & Pensions Committee Tuesday evening with what would have been unanimous bipartisan support, Republicans said, had it not been for a last-minute addition to the bill in language filed Monday afternoon.

As The Daily Line reported Tuesday afternoon, the Illinois Municipal League — for years one of the loudest voices in favor of consolidating the state’s hundreds of public safety pension funds — announced it was opposing the bill in its current form. […]

State Rep. Mark Batinick (R-Plainfield) was the only aye vote on the GOP side, after asking everyone in the committee room to raise their hands if they wanted the language Cole and the league opposed to remain in the bill. No one raised a hand. […]

Batinick ultimately said he trusted Hoffman would work out a deal, and voted the bill out of committee.

Subscribers know a bit more about the status of that bill.

*** UPDATE *** From the Illinois Municipal League’s PR person about new amendments to the consolidation bill…

Amendment #6 resolves the issue that was of concern by the Illinois Municipal League. They are supportive now. Amendment #7 is purely technical.

The House will take this bill up this afternoon; it’s an agreed bill.

[ *** End Of Update *** ]

* Capitol News Illinois

Legislation aimed at capping the out-of-pocket costs of prescription insulin for those with state-regulated health care plans passed a House committee Tuesday with bipartisan support and a 13-2 favorable roll call.

Senate Bill 667 now awaits a vote from the full House of Representatives. If it passes, it will head to the desk of Democratic Gov. J.B. Pritzker, who has been a vocal supporter of the measure.

The bill would cap the price for a 30-day supply of insulin at $100 for people covered under certain kinds of insurance policies.

Chicago Democratic Rep. Will Guzzardi, the bill’s sponsor, said it would apply to those purchasing insurance on the marketplace, as well as public plans such as the state employee health program. He added it would apply to roughly 20 percent of Illinois’ population — about 260,000 of an estimated 1.3 million insulin users.

The sponsor thinks he has maybe as many as 80 floor votes. Stay tuned.

*** UPDATE 2 *** Rep. Guzzardi was a little off. His bill received 100 votes. It now goes back to the Senate for concurrence.

[ *** End Of Update *** ]

* Also from Capitol News Illinois

A bill calling on the Illinois Department of Transportation to conduct a study on the use of automated red light cameras advanced in the state Senate on Tuesday, lawmakers’ first day back at the Capitol for the final three days of the fall veto session.

Those devices, and the contracts that many Chicago-area suburban governments have with the companies that provide them, are believed to be one subject of an ongoing federal corruption probe focusing on state Sen. Martin Sandoval, D-Chicago. […]

The measure passed out of the Senate Transportation Committee, which Sandoval chaired before he was pressured to step down while the investigation continues.

If the full Senate does not vote on the bill by Thursday, the final day of the veto session, it could leave no time for the House to consider the measure this year. Lawmakers would then need to take it back up when they return in January for the start of the regular 2020 session.

Um, that bill is on Second Reading in the Senate. If it passed the Senate today, there would not be enough time to run it through the House because of the three-day reading requirement.

* Politico

Chicago Mayor Lori Lightfoot is close to winning a hand in Springfield after spending Tuesday talking to lawmakers about why helping Chicago is good for the state.

Sources familiar with the discussions between the mayor and Gov. J.B. Pritzker say the mayor’s request to tweak the tax rate for a Chicago casino could see approval this week — as early as today.

“It’s a good day,” Lightfoot told reporters after her meetings. She also discussed her sales pitch to lawmakers. […]

The mayor’s and governor’s offices have been going back and forth to nail down a palatable tax rate that downstate and suburban Democrats would agree to support. They think they’ve got it and the governor would sign off on it, too.

We’re about to find out.

Keep a close eye on our live coverage post for instant updates.

  8 Comments      


Corruption roundup

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* The Sun-Times interviewed Chicago’s new FBI chief Emmerson Buie

Now Buie, the onetime youth from Englewood, will play a key role in what appears to be multiple, ongoing federal public corruption investigations that have so far led to charges against three politicians — Ald. Edward M. Burke (14th), state Sen. Thomas Cullerton and former state Rep. Luis Arroyo. Two other politicians have been outed this year as FBI cooperators. And several more appear to be in federal crosshairs.

“Public corruption has been a cornerstone of my career,” Buie told the Sun-Times Tuesday. And, he added, it “will continue to be, in the Chicago division.”

Still, Buie declined to get into the details of the aggressive work being done by the FBI in Chicago. He started his new job Oct. 15. In his second week, a federal jury convicted two Chicago police officers on corruption charges. Three days later, Arroyo was arrested on a federal bribery charge.

“The American public as well as the city of Chicago has a right that their public officials and their law enforcement officials are upholding a certain standard,” Buie said. “Therefore, as we investigate those matters, we try to do them as respectfully and professionally as possible.”

* Robert Herguth and Mark Brown

In September 2015, shortly before Oak Lawn’s red-light cameras from SafeSpeed, LLC, went live at two busy intersections, a company official wrote the south suburb’s village manager about a new marketing campaign with the slogan: “Choose safety, stop on red.”

Soon after, SafeSpeed and Oak Lawn officials engaged in a behind-the-scenes dispute over how many red-light tickets were being issued, with the company pushing Oak Lawn for more, records and interviews show.

More tickets would bring more revenue to Oak Lawn, SafeSpeed and its commissioned sales consultants.

Leading the push for more aggressive ticketing were two former legislators from Oak Lawn: Michael Carberry and John O’Sullivan, according to records and interviews.

At the time, Carberry was on the village board, and O’Sullivan was Worth Township’s Democratic committeeman and a sales consultant for SafeSpeed who appeared to be overseeing Oak Lawn’s account.

There’s lots more to this, so go read the whole thing before commenting.

* Also by Robert Herguth and Mark Brown

When drivers get red-light camera tickets in Matteson, a portion of their fines has been going to a recently retired deputy Chicago city aviation commissioner who’s at the center of a political corruption investigation, records obtained by the Chicago Sun-Times show.

Bill Helm — a $125,000-a-year deputy aviation commissioner overseeing airfield maintenance at O’Hare Airport until he quit in August — also was a paid sales representative for SafeSpeed, LLC, while on the city payroll, the records show.

SafeSpeed paid Helm, who’d held the city aviation post since 2014, a commission on red-light tickets written in Matteson and also Glendale Heights, the records show. Glendale Heights ended its affiliation with the red-light camera operator in 2018, officials said.

Matteson and Glendale Heights officials said they hadn’t heard of Helm and were unaware he was being paid under their contracts with SafeSpeed.

Helm didn’t disclose the outside work to City Hall, as required for any “secondary employment,” a spokesman said. Nor did he inform the Chicago Board of Ethics of outside income.

* Related…

* Illinois House GOP pushes once again for ‘urgent’ ethics overhauls: “We acknowledge that there’s a longer, more ongoing conversation about the culture that’s tolerated some of these ethical lapses in Springfield,” Deputy Minority Leader Tom Demmer, R-Dixon, said. “But it’s very important that we, as elected officials, acknowledge that every day the people of Illinois are waking up and seeing in the newspaper, hearing on the radio or TV, that there’s additional issues that are ethical challenges and problems that are enacted by their representatives in Springfield. We need to do something to take advantage of this opportunity to reform our laws, so … the people of Illinois have better confidence in their elected officials.”

* Firms owned by Hazel Crest woman with criminal past collected $1.8 million consulting for suburbs, even while she faced federal indictment

  15 Comments      


JCAR nixes Gaming Board rule on state review of video gaming business sales

Wednesday, Nov 13, 2019 - Posted by Rich Miller

* David Heinzmann at the Tribune

Less than a week after the Illinois Gaming Board attempted to stop video gambling operators from selling their businesses without state approval, a panel of lawmakers in Springfield blocked the move.

The General Assembly’s Joint Committee on Administrative Rules voted 10-0 against the Gaming Board on Tuesday, rejecting the gambling regulators’ rationale for making the rule change on an emergency basis.

Gaming Board staff viewed their measure as an emergency step in response to the Tribune’s revelations last month about Rick Heidner, whose Gold Rush Gaming is one of the state’s largest operators. Regulators argued they needed to close a loophole in state law that allows video gambling operators to sell their businesses without Gaming Board approval. The status quo would allow a business owner facing a misconduct investigation to sell the business at a profit without facing state disciplinary action.

Republican Rep. Keith Wheeler of Oswego, the committee co-chairman, introduced the motion to vote on the issue Tuesday. He said he agrees that the state should close the loophole but said committee members are frustrated because they believe the Gaming Board is using the emergency rule-making process inappropriately.

There’s more, so go read the rest. The JCAR members may be right on the law, but that’s some pretty dumb politics. And if somebody under federal suspicion sells their video gaming business before this is all worked out, some fingers are gonna be pointed right at the committee.

* One caveat, however. Legislators and others are up in arms about how the Gaming Board has waited so long to write a rule allowing video gaming expansion at existing facilities. The gaming expansion law passed last spring upped the number from five machines to six and increased the tax by 3 percentage points. The state is collecting the higher tax rate, but no machines can be added until the Gaming Board acts. This should’ve been done months ago. The state is missing out on revenues.

  6 Comments      


Tribune: Feds recorded McClain phone calls

Wednesday, Nov 13, 2019 - Posted by Rich Miller

[This Tuesday night post has been bumped up for visibility.]

* By Ray Long and Jason Meisner at the Tribune

Federal authorities recorded phone calls of one of House Speaker Michael Madigan’s closest confidants as part of the burgeoning investigation into ComEd’s lobbying practices, two sources with knowledge of the probe told the Chicago Tribune.

Recordings of phone conversations involving Michael McClain, who lobbied for ComEd and parent company Exelon before retiring in 2016, are part of the expansive probe that has rocked the Springfield political establishment over the past several months, the sources said. […]

It is unknown if the FBI listened in on any calls between McClain and Madigan, who is famously cautious about what he says in public and over the phone.

But McClain, 71, whose friendship with Madigan dates to when they both served in the House in the 1970s, is widely viewed as one of the few people in Springfield who would have candid conversations about legislative and political strategies with the speaker. Before he retired, McClain often could be found camped out in front of the speaker’s third-floor Capitol office.

He was also a frequent MJM dinner companion. But, as I’ve said before, Madigan is a lot like Paulie Cicero

Paulie hated phones. He wouldn’t have one in his house. He used to get all his calls second hand, then you’d have to call the people back from an outside phone. There were guys, that’s all they did all day long was take care of Paulie’s phone calls.

Then again, they got Paulie in the end.

  54 Comments      


Lightfoot leaves Springfield with no promises

Wednesday, Nov 13, 2019 - Posted by Rich Miller

[This Tuesday night post has been bumped up for visibility.]

* From Jordan Abudayyeh at 5:45 pm…

The governor and mayor had another productive meeting and conversation this afternoon, and he remains committed to encouraging members of the General Assembly to support the mayor’s priorities.

* Tribune

Mayor Lori Lightfoot headed to Springfield on Tuesday looking for help on legislation aimed at eventually shoring up Chicago’s troubled finances — a sweetened casino tax structure and the power to hike taxes on expensive real estate deals.

She was leaving Springfield without a deal in place on either.

Lightfoot stressed the urgency of getting a casino deal done this week to help ease the concerns of bond ratings agencies and provide certainty for future budget years.

* Sun-Times

Meanwhile, the casino bill’s House sponsor, state Rep. Bob Rita, D-Blue Island, said state Sen. Terry Link, is no longer involved in negotiations.

Link, D-Vernon Hills, had been a key player in gambling talks. Sources have told the Sun-Times that Link wore a wire in the investigation that ended with bribery charges against former state Rep. Luis Arroyo. Link denies any involvement, and he has not been charged.

“I haven’t talked to Sen. Link since the bill signing. No, he hasn’t [been involved],” Rita said. “I’ve talked with some of the senators, and I asked who was going to be the Senate sponsor, and we’re still waiting on that. But we have been negotiating with the Senate and staff. I’ve had talks with Senate President [John] Cullerton too.”

Rita said there were a number of questions from lawmakers in the south and north suburbs — areas where new casinos are proposed — about where the Chicago location would go. And negotiations aren’t just focused on restructuring the 33 percent tax rate. Rita said a change in fees is also in play, should the tax rate be adjusted.

“We’re getting close, but you know there’s other outlying issues that we need to address that [Lightfoot has] seen in caucus here that have been around,” Rita said. “So it’s not all just about the tax rates … and what it’s going to impact on the city of Chicago in the state, but there’s other issues that we’re faced with that we’re trying to work through.”

* From Jordan Abudayyeh at 8 pm…

The governor has said from the outset that it’s important for all parties to get the Chicago casino right, including maximizing the opportunities for jobs for residents and revenue to address our financial obligations, and if the city’s gaming legislation reaches his desk, he will sign the bill. Over the past several days, staff from the city, both the House and the Senate and the governor’s office have discussed the contours of a proposal, and there has been broad agreement from the parties. Our understanding is that legislators will be filing a bill shortly, and the governor would encourage lawmakers to support it.

* Related…

* Chicago Mayor Pleads Case in Springfield on Casino, Budget: Lightfoot told reporters after meeting with House Democrats that talks are continuing and said legislation to fix the casino problem would come “shortly.” She didn’t say whether that meant before Thursday’s adjournment of the fall session.

* Chicago mayor pleads case in Springfield on casino, budget

* Mayor Lightfoot Tells State Lawmakers City Needs Casino To Fill Budget Hole

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Wednesday, Nov 13, 2019 - Posted by Rich Miller

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