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Joe Walsh scolded by judge, ordered to prove he doesn’t owe child support - Jackson bites back

Wednesday, Sep 14, 2011 - Posted by Rich Miller

* A judge today ruled that Congressman Joe Walsh has to prove why he doesn’t owe $100,000 in back child support

A judge in Chicago issued a preliminary ruling Wednesday against U.S. Rep. Joe Walsh (R-Ill.) in the Tea Party favorite’s child-support dispute with his ex-wife, ordering Walsh to explain why he appears to be $100,000 behind on his child-support payments.

Cook County Circuit Judge Raul Vega also wanted to know why Walsh wasn’t in court for the hearing — the McHenry Republican’s ex-wife, Laura Walsh was — and said he expects him to show up at the next hearing, in November.

Walsh’s new attorney, Janet Boyle, asked Vega “for what purpose” he wanted the congressman in court.

Vega gave her a puzzled look.

To which Boyle responded: “Mr. Walsh is a U.S. congressman.”

“Well, he’s no different than anyone else,” the judge said.

Ultimately, Laura Walsh’s attorney said the congressman probably wouldn’t have to come to court for the next hearing, after all.

Still, Vega said he was going to issue a “rule to show cause” why Walsh shouldn’t be held in contempt of court for falling behind, according to his ex-wife, by $100,000 in his child support over the past five years.

The effect of that ruling is that, instead of Laura Walsh having to prove that the congressman owes the money, now the burden shifts to the congressman to prove that he doesn’t owe money, according to attorneys for both Walshes.

The judge also stayed a subpoena that Walsh had filed of his ex-wife’s employer after Walsh’s attorney backed away from her attempt to force the ex to show exactly how much money she was making.

* Meanwhile, Congressman Jesse Jackson, Jr. is not pleased with this comment by potential primary opponent Debbie Halvorson

Halvorson sounded very much like a candidate when she said, “He (Jackson) lives in D.C.. He doesn’t come home on weekends. His kids go to school in D.C.”

* Jackson’s response

“I think it’s helpful when people leave people’s families and children out of political contests,” Jackson said. “People in my district are concerned about employment, they’re concerned about jobs, and I’ve been narrowly focused on that.” […]

Jackson said that because of the schedule set by GOP leaders, he puts his children in school in the nation’s capital. “If they weren’t here, I’d never see my children,” Jackson said. “I want to see my children. It comes with the real estate, it comes with the territory.”

He snapped that “other Members of Congress have grown children,” perhaps a veiled swipe at Halvorson, a mother of four. Her youngest child has graduated from college.

…Adding… Kinda related…

* Political groups owe Illinois $700k in overdue fines, with little reason to pay: The Illinois State Board of Elections posts on its website a list of overdue fines. Close to 200 political committees are there, ranging from the Putnam County Democratic Central Committee, which owes $25, to the Friends of William Burch, which owes $35,500.

* Candidate for Cook County office vows to clear up $17,500 in overdue fines: A politician running for a Cook County office on a message of reform owes more than $17,000 dollars to Illinois’ election board. Ald. Rick Munoz is promising to clear up the overdue fines. Munoz is listed as chairman of a couple campaign funds, including one called the 22nd Ward Independent Political Organization. The fund has racked up big fines this year for failing to file on-time campaign disclosure reports, which are supposed to list who gave the committee money, and how it spent that money. One of the reports was more than a year late. All together, the 22nd Ward campaign fund owes $17,500 in overdue fines to the state board of elections.

  39 Comments      


A weird idea, to say the least

Wednesday, Sep 14, 2011 - Posted by Rich Miller

* Ummm

What would you think of the Thompson Center downtown for a Chicago casino?

Chicagoland Chamber of Commerce president Jerry Roper says the high, glassy atrium in the state office building would make it ideal.

“It’s front-end loaded. It’s a burden to the state. And it could make a great casino on the first floor and the lower level and hotel rooms surrounding. That would be one site,” Roper said.

With those high ceilings, I gotta figure the place would be too noisy to bear. Then again

“If you take a look at the casino that is in Montreal, you’ll see that it’s the old French Pavilion. Turned upside-down, it looks just like the State of Illinois building. We showed it to the governor and he made a note of a re-purposed use of state property. Think about that building. As old as it is, it’s going to have to have a major renovation. Maybe you’re better off just allowing somebody else to renovate it.”

Turned upside down? Turned inside out, maybe.

Thoughts?

* In other casino news, Gov. Pat Quinn might be getting himself into even hotter water with Mayor Rahm Emanuel

Quinn’s latest criticism centers on the way casinos would be taxed under the legislation, as a major portion of that money is set aside each year for schools. That amounted to $328 million last year, according to Quinn’s office, but the governor says that will drop under the bill that needs his signature to become law.

As it stands, casinos are taxed on a sliding scale of 15 percent to 50 percent, depending on the amount of money they bring in. The legislation Quinn is weighing eventually would limit the rate to 40 percent for casinos raking in between $200 million and $300 million a year and 30 percent for those pulling down between $300 million and $350 million a year.

For casinos making more than $350 million a year, the tax rate would fall to 20 percent. It’s estimated that the lower rate would apply only to a casino built in Chicago because it is expected to bring in the most money.

The casino tax rates would fall before all of the new casinos came online, however, which leads to the estimated initial dip in gambling money going to the education fund.

As subscribers have known for weeks, Quinn has been talking privately for a while now about forcing a Chicago casino to pay a significantly higher tax rate. That’s a deal-killer for Emanuel, who believes the financials won’t work at a higher rate.

* Speaking of Quinn and trouble, this is from the Bond Buyer

Illinois has selected Mayer Brown from among 18 law firms that submitted proposals to work as the state’s bond and disclosure counsel for the next two years.

The state’s procurement office made its choice public Monday in an award notice posted on its IllinoisBID website. Mayer Brown was chosen based on its top score, state debt manager John Sinsheimer said.

More from Crain’s

Mayer Brown scored highest among the 18 law firms vying for the work, Mr. Sinsheimer said, adding, “I would say it was close.” Scoring was based on each firm’s bond disclosure experience nationwide, the team assembled for the Illinois work and a detailed description of how the state should handle its public disclosure requirements.

So, apparently, it was not only close but the ratings were subjective as well.

I posted these stories because some powerful Democrats reached out to me this week upset at Gov. Pat Quinn’s choice of attorneys. Mayer Brown partner Ty Fahner is the lead attorney on the Republican lawsuit against the new Democratic congressional map.

That’s just what Quinn needed to do. Yep. Hand out sweet, expensive goodies (indirectly) to the guy who’s probably more hated by the state’s Democratic congressional delegation than anybody else right now. Also, way to hobnob with Republicans, guv, after making such a big deal out of House Speaker Michael Madigan attending a fundraiser for US House Speaker John Boehner.

  69 Comments      


Medicaid funding threatened as poverty, uninsured rise

Wednesday, Sep 14, 2011 - Posted by Rich Miller

* Forget about the political framing in this New York Times article, and think of the damage this could do to Illinois’ budget

As Congress opens a politically charged exploration of ways to pare the deficit, President Obama is expected to seek hundreds of billions of dollars in savings in Medicare and Medicaid, delighting Republicans and dismaying many Democrats who fear that his proposals will become a starting point for bigger cuts in the popular health programs.

The president made clear his intentions in his speech to a joint session of Congress last week when, setting forth a plan to create jobs and revive the economy, he said he disagreed with members of his party “who don’t think we should make any changes at all to Medicare and Medicaid.”

Few Democrats fit that description. But many say that if, as expected, Mr. Obama next week proposes $300 billion to $500 billion of savings over 10 years in entitlement programs, he will provide political cover for a new bipartisan Congressional committee to cut just as much or more.

* Illinois’ budget simply cannot take a major hit on Medicaid without kicking a whole lot of people off the system. Period. End of story. Why? Read on

Illinois had more poor people last year than it has had in nearly two decades, according to data released Tuesday by the U.S. Census Bureau that also showed the number of impoverished nationally at a new high.

More than 1.82 million people lived in poverty in Illinois last year, up from 1.69 million. That was the biggest number of poor since 1992 when there were 1.86 million people who were impoverished.

The poverty rate last year rose to 14.1 percent from 13.2 percent in 2009, data showed. […]

The report also revealed the percent of uninsured in Illinois rose to 14.8 from 14.2 in 2009. There were 1.91 million people uninsured in the state last year, up from 1.81 million. Nationally, 49.9 million Americans had no health insurance, or 16.3 percent, up from 16.1 percent, or 49 million.

Median household income in Illinois fell 5.5 percent to $50,761 last year from $53,743, the report showed. Nationally, it dropped 2.3 percent to $49,445, from $50,599. Since 2007, median household income has declined 6.4 percent. [Emphasis added.]

Oy.

* More misery

“In the fiscal year that ended June 30, we serviced 5.1 million individual visits to our food pantries,” said Bob Dolgan, spokesman for the Greater Chicago Food Depository, which operates 650 pantries, soup kitchens and shelters in the city and Cook County. “You go back just three years ago, it was 3.2 million visits.”

Cuts to even relatively small government assistance programs are making it difficult to serve the growing numbers of poor, said Shurna, citing an 87 percent cut to an $11 million state program designed to prevent homelessness.

“So many people are just one catastrophe from becoming homeless, suddenly unable to make a house or rent payment because of unforeseen medical bills or some other emergency,” he said. “Now, because of this cut, 10,371 such people will not be helped.”

* Quote of the day

“It’s a lost decade for the middle class,” said Sheldon Danziger, a poverty expert at the University of Michigan.

* Nearby state poverty rates

Indiana 16.3 percent, Ohio 15.3 percent, Kentucky 17.7 percent, Michigan 15.5 percent, Missouri 14.8 percent, Wisconsin 9.9 percent.

* A very depressing national poverty rate graph

* Meanwhile, the governor’s staff had to straighten out a nervous bond trader

Quinn last week announced $313 million in budget cuts through the shuttering of seven state facilities and slashing 1,900 jobs. He pressed lawmakers to either increase spending in the $33 billion budget or reallocate funds to support the facilities.

Michael Brooks, a senior portfolio manager at Bernstein Global Wealth Management, slammed the governor’s comments, saying they might offset strides made this year to improve the state’s image in the investment community and lower its borrowing costs.

Brooks said the spread early this year of 250 basis points between five-year Illinois paper and triple-A rated debt has narrowed to 145 basis points in recognition of the state’s move to increase its income tax.

[llinois debt manager John Sinsheimer] said Quinn’s comments were directed specifically at the budgets for the various facilities being shuttered and not the overall budget.

But, hey, that’s probably what happens when you make a gigantic freaking public deal about a few million dollars in reallocations.

  35 Comments      


Doing themselves no favors

Wednesday, Sep 14, 2011 - Posted by Rich Miller

* This latest Chicago Teachers Union effort at spin predictably didn’t work

Chicago Teachers Union President Karen Lewis says Mayor Rahm Emanuel made a comment to her that included an obscenity during a heated discussion over lengthening the day at Chicago public schools […]

Activist the Reverend Paul Jakes has written a letter demanding the mayor apologize.

“I know that African-American women have been victims continuously down through the years of disrespect and we as an African-American community will not stand for it,” said Rev. Jakes.

But Alderman Emma Mitts said there’s nothing racial about it and and who knows what Lewis may have said to Emanuel.

“I know there’s two sides to every story, and somtimes three sides to every story. So what really went on,” said Mitts.

* Zorn looks at how the teachers union is doing itself no favors

A simple for instance: Is the union for or against a longer school day?

Yes and no.

The union is in favor of it if the extra time is well-used — “we want a better school day,” is how CTU President Karen Lewis puts it — and if teachers get commensurately more money for putting in more hours. But they’re against it because Chicago’s instructional time is very similar to instructional time in similar cities and because objective research doesn’t back up the claims for longer school days. […]

The union often stresses the need to empower classroom teachers in making important educational decisions. But when City Hall began the recent effort to lengthen the classroom day by a majority vote of the teachers in individual schools, union leaders objected, called it union busting and filed suit on procedural grounds.

The teachers now look like confused obstructionists — part of the problem, not part of the solution — largely due to self-inflicted public relations injuries.

* A while ago, Zorn attempted to get to the bottom of the disagreement between Mayor Emanuel and the Chicago Teachers Union over how many instruction minutes per year kids are receiving

The teachers union claims 55,260 minutes a year, the administration claims 52,360.

In a flurry of email and phone messages I tried to get the sides to reconcile these numbers — the difference amounts to 17 minutes a day — and concluded it has to do with whether you count “passing time” (time allocated for physically transitioning from one activity to another) as instructional time, which other school districts may also do.

In other words, the CTU is counting time spent in the hallways as instruction time.

* But after being played like a violin by the mayor, this bit of spin is the first time that the CTU has seemed to get ahead of the story

Using the elite private school where Mayor Rahm Emanuel now sends his kids as a starting point, Chicago Teachers Union officials have crafted a proposed schedule that adds 75 minutes to the typical public elementary school student’s day.

The union’s latest salvo in the battle over a longer school day uses as a comparison point the schedule of one third-grade classroom at the University of Chicago Laboratory Schools, union officials said Tuesday.

Just like at what U of C kids often call “the Lab School,’’ the CTU proposal offers a well-rounded curriculum featuring far more art, music, physical education and other extras than most CPS kids now get and even includes the study of a second language.

Ultimately, the proposed CTU schedule would provide an even longer school day than the Lab School , where a third-grader’s tuition is $21,876. And it does so without requiring Chicago Public School teachers to add any minutes to their work day.

The union will need lots more PR like this to try to neutralize Emanuel. This, alone, won’t do it, of course. Emanuel is a driven, ruthless man who has the polls and the public behind him.

* But, President Lewis can’t seem to get that silly argument behind her

Also on Tuesday, new information emerged about the four-letter fracas between Mayor Rahm Emanuel and the teachers union president in his City Hall office. The mayor is said to have used the F-word when pushing his plan during a heated exchange.

“This is obviously a demonstration and illustration of who he is. That’s what that is,” said Lewis.

“My view is this is a distraction from the major issue which is getting the kids an education and time in class learning,” said Emanuel.

But sources say she too screamed and swore during the meeting, something she doesn’t deny.

“I did not, um, I did not take it. Let’s put it that way,” said Lewis when asked if she cursed back.

It’s time she moved on to more important things. Just because a reporter asks a question doesn’t mean she has to answer it.

* Related…

* 2 more schools opt for longer days - 7 faculties have now bucked union on divisive issue

* City Enacting New Preschool Health Goals

* Emanuel to aldermen: Suggestion box is out on budget - Mayor needs to eliminate shortfall put at $636 million

* Goldman Sachs to provide $25 million in loans and grants to Chicago-area small businesses

* New city crime database goes online

  29 Comments      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition and a campaign roundup

Wednesday, Sep 14, 2011 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, Sep 14, 2011 - Posted by Rich Miller

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Careful what you wish for

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* From the March 23, 2009 edition of the Jacksonville Journal-Courier’s editorial page

Until we address the core issue of an ever-expanding state government with fewer workers to pay for it, Illinois will continue to deteriorate.

* Same editorial page, July 17, 2009

The budget does include about $2.1 billion in spending cuts, with the possibility of an additional $1.1 billion in cuts later in the year. But these cuts merely postpone the inevitable day of reckoning.

* December 30, 2010

Glaringly present by its absence is any real discussion about trimming the pounds of fat wobbling under the arms of state government.

* January 13, 2011

At the same time, lawmakers do little to address the problem of gluttonous spending that got the state into a $15 billion hole. Rather, they simply “limit” spending — and we know how well that has worked in the past.

* Sept. 8, 2011

Published reports indicate Quinn also will announce the closing of a handful of state facilities this week.

One of the powerhouse unions in the state — the American Federation of State, County and Municipal Employees, which represents about 30,000 people — has called on lawmakers to increase spending to avoid any cuts.

That would be a step backward after lawmakers already cut $1.5 billion out of what Quinn requested in fiscal year spending.

We’re empathetic with the pain that such closings and layoffs will bring, but cannot overlook the pain inflicted already on the private-sector workforce.

Any real attempt to address Illinois’ budget problems must reflect the realities that have existed in the private sector for years. Any real attempt cannot continue to reckless and carefree spending of money that simply isn’t there.

To do so would be at the expense of the people state government is supposed to serve.

* Not long after that last editorial was published, Gov. Pat Quinn announced the closure of Jacksonville Developmental Center. Here’s the paper’s editorial from September 12, 2011

Hi, Gov. Quinn, it’s us.

I know we haven’t been on the best of terms lately, what with our occasional swipes against you on this very page.

Hey, at least you aren’t Rod Blagojevich, right?

Um, OK, we’ll get to the point.

You’re killing us.

Illinois generally, Jacksonville specifically.

Your announcement Thursday that unless lawmakers approve more money, you’ll close a prison, a juvenile detention center, three homes for the mentally ill and two centers for the developmentally disabled was a death knell for this region. […]

Gov. Quinn, Jacksonville has been hit hard by economic turmoil. Yes, everyone has, but hundreds upon hundreds of good-paying jobs have vanished from this city in the past two years. Gone with them has been an incredible pool of talent and of people to provide the vibrancy that makes a city a community.

* To be very clear here, I’m on record repeatedly saying that these proposed cuts are mainly theater and that I seriously doubt whether Quinn truly intends to follow through. Also, to be clear, the Journal-Courier has often offered up thoughtful, realistic and spot-on critiques of Illinois’ failure to get a handle on its budget. I mean, really, it’s no secret that our government has been a mess and even a failure. The paper is also far from alone in helping fan the “cut government now” flames. And it’s not the only media outlet which fanned those flames despite having state facilities and lots of state workers in its coverage zone. It just happens to be the only one of those papers which also has an easily accessible archive.

Even so, it’s always dangerous to demand cuts when your own community is a potential target. Just sayin…

* Related…

* JDC petition efforts mobilize

  43 Comments      


Elgin hammered by Des Plaines casino

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* There’s a simple reason why Las Vegas casino owners tear down their establishments and/or build new ones on such a regular basis. Gamblers love new casinos. It’s a silly sentiment, since slots are usually far tighter at expensive new casinos in order to pay for all that fancy construction. But gamblers aren’t exactly taking mathematically sound risks when they walk in the door.

Anyway, this story is not surprising on any level

The new gambling palace in Des Plaines opened as the biggest money-maker among Illinois casinos, but some suburban leaders say the cost to existing establishments argues against further expansion of gambling.

In its first six weeks since opening July 18, Rivers Casino grossed almost $52 million, according to figures released by the Illinois Gaming Board.

But Rivers’ gain apparently came at the expense of existing Chicago-area casinos. The Des Plaines establishment earned almost twice as much as any other Illinois casino in August, and at all but one of the nine existing casinos, revenues for the month were down from the same time last year. […]

Tom Swoik, executive director of the Illinois Casino Gaming Association, said the reductions at other casinos showed the danger of a legislative proposal to open five new casinos, including one in Chicago, plus add slots at racetracks.

* The Gaming Board, in all its wisdom, chose Des Plaines at least partly because it was so close to Chicago, which is off-limits by law right now to a casino. The Board could’ve chosen a site nearer our Wisconsin or Indiana borders to attract out-of-state money, but the Board decided to focus on bringing in Chicago cash, which has now apparently resulted in cannibalizing the Elgin casino, the next closest site

The [Elgin] Grand Victoria Casino’s revenues for August, down 24 percent compared to August 2010, are also down nearly 20 percent from just last month.

* But how much of that Elgin dropoff is cannibalization and how much should be laid at the feet of the lousy economy and the overall age of the facilities? Take a look at the August-to-August comparison for every Illinois casino

They’re all down except Rock Island, which is, by the way, still a fairly new casino.

* The point here is that the cannibalization by Des Plaines of Elgin and other casinos is most likely occurring. However, the economy and the “newness” issue are also factoring in here.

And whatever cannibalization we’re seeing is purely the Gaming Board’s fault. They picked Des Plaines.

The General Assembly, on the other hand, has chosen to site new casinos that the Gaming Board chairman has repeatedly claimed will cannibalize existing locations. But that’s the GA’s prerogative, just as it was the chairman’s several years ago when the board chose the Des Plaines site. He should probably drop this line of argument.

  23 Comments      


Question of the day

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* Yesterday’s QOTD asked whether readers agreed with Illinois Chamber of Commerce CEO Doug Whitley’s statement…

Whitley said one of the problems facing Illinois is that “Cook County people are out of touch with the pain of the people of downstate Illinois.”

It was no surprise that Downstate readers nearly unanimously agreed (”agrees” are in green)…

What surprised me a little is that a majority of Chicago-area readers agreed as well…

Apparently, most Cook Countians are aware that they’re out of touch. Let’s expand on yesterday’s question…

* The Question: Do you think that one of the problems facing Illinois is that Downstate people are out of touch with the pain of the people of Cook County? Take the poll and then explain your answer in comments, please. Also, please tell us where you call home. Thanks.


  72 Comments      


Skilling case results in overturned Illinois conviction

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* U.S. Judge Joe Billy McDade recently overturned former Secretary of State official Cecil Turner’s four wire fraud convictions

Cecil Turner was convicted on four counts of wire fraud in 2006 for covering up a scheme in which three janitors were paid for hours they didn’t actually work.

Turner did not take any illegal money. He was convicted on the legal theory that he denied taxpayers the honest services they deserved.

Since then, however, the U.S. Supreme Court has narrowed the scope of “honest services'’ violations.

* Some background on the case from Turner’s 2008 appeal, which was denied back then

Led by Dinora, the three night janitors devised a scheme to take massive amounts of unauthorized leave without being detected by their supervisors.  […]

The janitors’ scheme could not have succeeded without Turner’s help.   Prompted by requests from Dinora, Turner repeatedly intervened when the janitors’ immediate supervisors began to watch the three more closely.

Turner filed motions in 2010 to vacate his convictions, mainly because of the Skilling v. United States ruling.

* More explanation of Judge McDade’s recent ruling

Under the wire fraud statute, it is illegal to use interstate wires in any scheme to defraud, or for obtaining money or property by means of false pretenses, representations or promises. A scheme to defraud may include a scheme to deprive someone of “honest services”

In the Skilling opinion, the high court narrowed the scope of the right of “honest services” to include only cases involving bribes or kickbacks.

There was no evidence that Turner received any kickbacks or otherwise personally profited from the janitors’ scheme.

McDade said in his opinion that the court couldn’t determine whether or not the jury’s verdict on the wire fraud charges was based on a monetary scheme to defraud or the now-improper ground of honest services fraud.

* There was a monetary angle to the original case, but it was pretty darned minor and tenuous

Federal prosecutors alleged Turner helped the janitors pocket unearned state pay in exchange for special treatment by city trash collectors in his Springfield neighborhood.

Turner received no financial kickbacks, but aided in the scheme because one of the janitors - Dana Dinora - also worked for Springfield’s public works department. He allegedly arranged quick pickups of junk ranging from water heaters to a dog house for Turner and his neighbors, Chesley said. […]

[Turner’s lawyer] told jurors special trash pickups in Turner’s neighborhood were arranged by another city employee, not Dinora, and are common for people with political connections. Turner is vice chairman of the Sangamon County Democratic Party and his wife a Sangamon County Board member.

* Interestingly enough, the appellate court had earlier used its reasoning from the Robert Sorich conviction to deny Turner’s original 2008 appeal

The defendants in Sorich had misused their public offices for the private gain of third parties-campaign workers who were given civil-service jobs.   This was sufficient, we said, because “the true purpose of the private gain requirement-and one that does not depend on who gets the spoils-is to prevent the conviction of individuals who have breached a fiduciary duty to an employer or the public, but have not done so for illegitimate gain.”… Because the defendants in Sorich had “created an illegitimate, shadow hiring scheme based on patronage and cronyism by filling out sham interview forms, falsely certifying that politics had not entered into their hiring, and covering up their malfeasance,” the “hallmarks” of an honest services fraud were present.

* Turner’s two convictions for lying to the FBI were allowed to stand by Judge McDade, however. Here’s what the appellate court wrote in 2008 about that

On appeal, Turner contends that his statements to the FBI were not material because the FBI already knew about his involvement in the scheme and therefore could not have been misled by what he said.  

We disagree.  

A false statement need not actually influence the agents to whom it is made in order to satisfy the materiality requirement for this offense;  it need only have the possibility of influencing a reasonable agent under normal circumstances.   Turner’s statements to the FBI-denying that he provided supervisory cover for the janitors’ fraudulent scheme-satisfied this standard.

* Meanwhile, in a different part of the state, US Attorney Patrick Fitzgerald was in rare form yesterday

U.S. Attorney Patrick Fitzgerald said he sometimes wants to smack people “upside the head” who tell him after he’s convicted someone that they knew all along the person was a crook.

“Seriously, speak up,” Fitzgerald said in a talk to the City Club of Chicago Monday.

“The one thing I find frustrating is that people view corruption as a law enforcement problem. If I had a dollar for everyone who has come up to me after we’ve convicted someone and said: ‘yes, we knew he or she was doing that all the time but we wondered when someone was going to get around to doing something about it. And I bite my lip, but I wanted to smack them upside the head.”

The person who needs to do something about corruption, he said: “was you.”

“It is my view that sometimes we say that’s the way it is in Illinois or that’s the way it is in Chicago. If you’re finding yourself saying that, what you’re really saying is: “that’s the way I will allow it to be,” Fitzgerald said.

“You either speak up and do something about it or you’re part of the problem. That’s the only way to look at it.”

Discuss.

  23 Comments      


Governing by press release, Part 54,285

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* I have some objections to this Tribune editorial, but it’s generally on the right track

Gov. Pat Quinn slammed down a rubber stamper with a dramatic thud Monday as he followed through on his pledge to veto the so-called smart grid bill, which would upgrade the electricity distribution system in Illinois.

Now what? Apart from talking tough — and stamping tough — the governor has no real Plan B. […]

The bill needs a stronger answer for the prolonged power outages that hit more than a million customers in northern Illinois this summer — they’re still angry. An aggressive program to replace cable, upgrade circuits and bury the most vulnerable lines should be part of the deal. ComEd might win more support if it revived the idea of a fund to ease the impact of future rate hikes on the elderly and poor.

The storm-related service problems have made ComEd an easy target, and opponents of the bill looked like they had fun bashing it on Monday. But as the governor should know, this legislation is not “a nightmare for the consumers of Illinois,” as he described it. It is not “legalized pickpocketing,” or a bet on “unproven smart technology,” as Attorney General Lisa Madigan declared at the press conference.

The General Assembly passed a largely solid framework. High-tech upgrades to the power grid will save consumers money over time and make Illinois more attractive for business. The governor gave his veto stamper a good workout on Monday. Now it’s time to push for a genuine electricity upgrade.

I don’t think the bill’s framework was “largely solid.” What we saw over the summer is that the basic structure of the current “Dumb Grid” isn’t nearly up to par. The company needs to be pushed into upgrading its entire network from the ground up, not just the technological improvements produced by a “Smart Grid.” Yes, that would cost money. Lots of it. But these far too frequent outages are also costing money as well, and they’re hurting our state’s competitiveness. We have an opportunity here to squeeze this company to be the best in a whole lot of aspects. For instance, their customer service is horrible, and not just for individual consumers

For the third year in a row, business customers have placed Commonwealth Edison second-to-last in customer satisfaction among its Midwest peers.

According to a J.D. Power and Associates study — based on interviews with representatives of more than 17,000 U.S. businesses that spend between $500 and $50,000 monthly on electricity — ComEd tied for second-to-last place with the state’s other major utility Ameren Illinois. Both received a score of 607 on a 1,000 point scale.

And guess which company tied for last place in the Midwest? If you said “Ameren,” you’d be correct.

* Gov. Pat Quinn has had months to come up with an alternative plan. Instead, he just issued a veto and walked away, promising to come up with something down the road.

That’s absolutely unacceptable. Yesterday was simply one more in a series of high-profile feel-good media pops for a governor who all too often governs by press release. Vetoing the ComEd bill was easy. Proposing real solutions is difficult. So, it’s no surprise which avenue this governor took.

Maybe one day Pat Quinn will grow up and start to actually lead, but I’m not holding my breath.

…Adding… The SJ-R editorial board is still steaming about Tenaska

If a newspaper editorial page could have a face, ours would be blue from telling the story of Commonwealth Edison’s relentless effort to prevent construction of a clean coal power plant in Taylorville. […]

A group called the STOP Coalition, heavily backed by Exelon, quickly set about sounding the alarm of economic doom if that happened. Using worst-case-scenario predictions, it said the Tenaska deal would lead to massive increases in power rates for nonresidential users, forcing tens of thousands of jobs out of Illinois. ComEd succeeded in stopping Tenaska’s bill in January. Then it asked the Illinois Commerce Commission for its own $396 million rate hike. (Eventually, it was granted $155 million.)

The Tenaska bill limited Tenaska to a 2 percent increase on residential rates spread over 30 years . The bill vetoed by Quinn this week would have meant 9 percent increases on average for ComEd customers.

This episode was a lesson for us. It said ComEd would do anything necessary to protect its bottom line and keep competition away, no matter how much hyperbole and alarmism was necessary.

* Roundup…

* ComEd Customer Service - User Reviews, Ratings and Comments

* Sen. Don Harmon statement on governor’s ComEd veto: “By vetoing this bill, the Governor paves the way for common sense legislation that can allow for electric grid modernization, while providing true safeguards for Illinois’ consumers. I stand with the Governor in his efforts to create jobs, protect the environment and maintain key consumer protections. The lack of adequate protections in these key areas is the reason I voted no on the ‘ComEd bill’ and today support the Governor’s veto. To be effective, any legislation to modernize the electric grid should contain lower profit margins for utility companies, key protections for those who can least afford rate increases, dedicated revenues for storm response measures, environmental safeguards, and clear evidence that ratepayers will realize future savings from smart meters.”

Unless a trailer bill can be passed to address these specific concerns, I urge legislators to support the veto. I look forward to working with the General Assembly to advance these goals.”

* Gov. Quinn vetoes ComEd rate-hike bill, override battle to come: Bob Pierson, business manager of IBEW Local 9 and chairman of the union’s International Executive Council, said he is disappointed and that the IBEW will continue to try to pass the bill in the upcoming veto session. “There are no jobs now,” he told the Sun-Times. “This would have meant at least 1,500 jobs for our members, more jobs for the utility company, more income for the state and given the state an actual, reliable [electrical] system.”

* Quinn vetoes electric rate hike bill: “If they want to try and override the veto, be my guest. Because we’ll, I think, show them as we did 30 years ago that the people of Illinois are mightier than Commonwealth Edison,” said Quinn, who helped form the Citizens Utility Board nearly 30 years ago.

* Quinn vetoes ComEd rate hike: In December 2008, the ICC ordered the state’s two largest utilities — ComEd and Ameren — to participate in a series of workshops with consumer advocates, government officials and other policymakers to discuss issues surrounding smart grid. The idea was to develop a strategic plan to guide deployment of smart grid in Illinois and to recommend policies the commission could adopt. The resulting 356-page report, released in October 2010, was meant to guide utilities as they moved forward with requests for smart-grid technology. But the utilities never came forward with a detailed proposal, said Scott, instead choosing to fight for legislation that would provide a means to pay for the smart grid without clearly defining what consumers would be paying for.

* ‘Smart Grid’ Might Invade Privacy: ComEd released a statement denying that personal data would be collected: “The parties that negotiated the Energy Infrastructure Modernization Act (SB1652) ensured that customer data information protections were embedded in the legislation. The legislation says that electric utilities shall comply with the consumer privacy requirements of the Personal Information Protection Act and it prohibits selling of individual customer-specific data. ”

* Quinn vetoes electricity rate-hike plan: “To be effective, any legislation to modernize the electric grid should contain lower profit margins for utility companies, key protections for those who can least afford rate increases, dedicated revenues for storm response measures, environmental safeguards, and clear evidence that ratepayers will realize future savings from smart meters,” said state Sen. Don Harmon, an Oak Park Democrat.

* Quinn vetoes Ameren rate hike proposal

* Quinn vetoes Ameren $625 million rate hike bill in Illinois

* With Quinn veto, ComEd’s focus on rate hike bill turns to lawmakers

  17 Comments      


Procter & Gamble now marketing to America’s economy like Mexico and Philippines

Tuesday, Sep 13, 2011 - Posted by Rich Miller

* You can look at charts and treatises all day long and still not quite get your head around the problem of America’s stark inequities. This incredibly important Wall Street Journal article, however, brought it all home for me

For generations, Procter & Gamble Co.’s growth strategy was focused on developing household staples for the vast American middle class.

Now, P&G executives say many of its former middle-market shoppers are trading down to lower-priced goods—widening the pools of have and have-not consumers at the expense of the middle.

That’s forced P&G, which estimates it has at least one product in 98% of American households, to fundamentally change the way it develops and sells its goods. For the first time in 38 years, for example, the company launched a new dish soap in the U.S. at a bargain price. […]

Economist Edward Wolff of New York University estimates that the net worth—household assets minus debts—of the middle fifth of American households grew by 2.4% a year between 2001 and 2007 and plunged by 26.2% in the following two years.

P&G isn’t the only company adjusting its business. A wide swath of American companies is convinced that the consumer market is bifurcating into high and low ends and eroding in the middle. They have begun to alter the way they research, develop and market their products.

Food giant H.J. Heinz Co., for example, is developing more products at lower price ranges. Luxury retailer SaksInc. is bolstering its high-end apparel and accessories because its wealthiest customers—not those drawn to entry-level items—are driving the chain’s growth.

Citigroup calls the phenomenon the “Consumer Hourglass Theory” and since 2009 has urged investors to focus on companies best positioned to cater to the highest-income and lowest-income consumers. It created an index of 25 companies, including Estée Lauder Cos. and Saks at the top of the hourglass and Family Dollar Stores Inc. and Kellogg Co. at the bottom. The index posted a 56.5% return for investors from its inception on Dec. 10, 2009, through Sept. 1, 2011. Over the same period, the Dow Jones Industrial Average returned 11%.

“Companies have thought that if you’re in the middle, you’re safe,” says Citigroup analyst Deborah Weinswig. “But that’s not where the consumer is any more—the consumer hourglass is more pronounced now than ever.” […]

To monitor the evolving American consumer market, P&G executives study the Gini index, a widely accepted measure of income inequality that ranges from zero, when everyone earns the same amount, to one, when all income goes to only one person. In 2009, the most recent calculation available, the Gini coefficient totaled 0.468, a 20% rise in income disparity over the past 40 years, according to the U.S. Census Bureau.

“We now have a Gini index similar to the Philippines and Mexico—you’d never have imagined that,” says Phyllis Jackson, P&G’s vice president of consumer market knowledge for North America. “I don’t think we’ve typically thought about America as a country with big income gaps to this extent.”

Procter & Gamble is one of the smartest marketers in the world. If this is how P&G now sees our country, you can bet it’s accurate. We really are in serious trouble here.

Go read the whole thing.

* And here’s another important story that you shouldn’t pass by

Caterpillar Inc. is struggling to add skilled workers in its manufacturing operations despite high U.S. unemployment levels that have forced President Barack Obama to take extraordinary measures, the company’s chief executive said on Friday.

The dichotomy in the makeup of the workforce is threatening U.S. and Canadian competitiveness, Caterpillar CEO Doug Oberhelman said.

“We cannot find qualified hourly production people, and for that matter many technical, engineering service technicians, and even welders, and it is hurting our manufacturing base in the United States,” he told a business audience at the Spruce Meadows equestrian facility outside Calgary.

“The education system in the United States basically has failed them and we have to retrain every person we hire.”

* Related…

* Social Status and How the Elected Vote

* Capital gains tax rates benefiting wealthy feed growing gap between rich and poor

* Steel company moving HQ to Chicago: An Ohio steelmaker is in line to receive more than $1 million in financial incentives from the city of Chicago to move its headquarters to a downtown office tower… In addition to the 50 jobs that will move from JMC’s Beachwood, Ohio headquarters, the company, which makes steel pipes and tubes, plans to retain 50 corporate jobs already in Chicago that could have moved to Ohio.

* Community college enrollment falling in Illinois

* Battle Lines Being Drawn In Push For Longer School Day

* Illinois teachers union official blasts CPS longer-day tactics

* Mitchell: Rahm Emanuel right to be a bully about a longer school day

* Crop yield estimates cut due to weather conditions

  58 Comments      


*** UPDATED x1 *** In Which Christopher Robin Leads an Expotition to the North Pole and Discovers a Heffalump named Machiavelli… Or something

Monday, Sep 12, 2011 - Posted by Rich Miller

* If you want to be a candidate for public office, wouldn’t it be a good idea to state on your campaign website which office you’re seeking?

A guy named Bill Sullivan Tweeted about the ComEd bill today, which led me to his website. He’s apparently running for something

Thank you for visiting my website. I invite you to learn more about my campaign and then get involved.

We need your time, talent and treasure to win in March 2012.

I hope to see you soon on the campaign trail. Mention you saw my website and tell me what you think.

Warm Regards,

Bill

Bill, I am now mentioning that I saw your website and I am totally befuddled. What office are you seeking, man?

* Sullivan’s blog isn’t helpful, either

Why? That is the question people ask when I tell them about this new chapter in my life.

For me my life has always been about giving back by serving others and I wouldn’t have wanted it any other way. I can talk proudly about what I have accomplished in my career, especially with my two sons and that makes all the difference.

Now as I throw my hat into the ring for elected office, it remains about giving back by serving others. Instilling in my sons and all who will listen, that politics is a noble vocation.

* According to Sullivan’s Facebook page, he’s running for the “General Assembly.” Which chamber? He doesn’t say. Check out his favorite books

The House at Pooh Corner
The Chronicles of Narnia
The Prince
Stickin’: The Case For Loyalty

The “House at Pooh Corner” and “The Prince?” I don’t think I’ve ever seen that combo before. Anywhere.

* Sorry. I know I shouldn’t be picking on this guy, and this is obviously not the most important post I’ve ever created, but his goofy website is driving me a wee bit crazy because I can’t figure out who this Bill Sullivan person is. I called and left a message. I sent an e-mail. Nothing yet. I asked a few people in the area (Palos Park) if they’d heard of him. One person did know him. Rep. Bill Cunningham (D-Chicago) said that Sullivan volunteered on his campaign last year, but he hasn’t seen or heard from him since election day. Cunningham didn’t know what office Sullivan wanted, but said he was a “nice guy.”

Perhaps I should Tweet him. Yeah. I think I’ll do that right now.

* Anyway, I think I’d better lay off the caffeine for the rest of the day.

*** UPDATE *** From an e-mail…

Rich,

Apparently there are some glitches in our email system. I apologize.

I am seriously considering a run for the Illinois General Assembly. I won’t make a final decision until the incumbents announce their decisions regarding running for re-election. I can say that I’m not running against Bill Cunningham, who is one of the bright stars of the legislature.

I’ve created the website to provide friends and family opportunities to volunteer and donate. It’s a work in progress.

Love the headline in your blog. Clearly, your a bit a Pooh fan yourself.

Let’s keep in touch.

Regards,

Bill Sullivan

* Here’s a campaign roundup…

* Speaker Madigan on Obama: At the DNC meeting held in President Barack Obama’s hometown, Madigan told the nation’s top Democratic leaders that the president’s proposed job-creation plan was important for the incumbent and the party heading into the 2012 elections. “What’s important is that all of us, however possible in a public way, demonstrate our firm support for the president’s policy,” Madigan said. “It’s important for the nation. It’s important for the American people. It’s critical for the Democratic Party in the general election in 2012,” he said. “Let’s think in terms of going to the polls today. We’d be in trouble. We’d be in serious trouble. So we have a window of opportunity between now and November 2012 to right the ship.”

* Burke and Emanuel square off again over Illinois Supreme Court seat: Mr. Emanuel won’t comment, but there’s no doubt he’s behind Justice Theis… Mr. Burke, in turn, is said to back another candidate, Appellate Court Justice Joy Cunningham. Cunningham campaign adviser Dana Houle says he’s “not sure” about Mr. Burke, but “a lot of folks are looking around” for a candidate to back.

* African-American groups seek to defend Democratic map in court: The coalition “is of the belief that the resulting map, which is now being challenged, satisfies the applicable voting rights laws, specifically allowing African Americans statewide to elect candidates of their choice, and to have the real ability to influence the outcomes of elections even in districts where African Americans do not constitute a numerical majority,” according to the request filed Friday.

* Republicans sue to get Democrats’ details on congressional map: As part of the discovery process, the Republican group made 21 requests for information from the Democratic Congressional Campaign Committee for documents involving the DCCC’s role in producing the map, including election and voter data and software.

* Kirk rallies Wheeling Township GOP faithful

* John Sullivan, Bobby Shilling speak to Farmer’s Breakfast

Also, in case you’re wondering, an “expotition” is “a sort of boat, which might not be exactly right, but we shall have to wait and see.”

  31 Comments      


*** UPDATED x1 *** Governor vetoes ComEd bill

Monday, Sep 12, 2011 - Posted by Rich Miller

[Comments opened and one story added and bumped up to the top because of the update]

*** UPDATE - 10:49 am *** Gov. Pat Quinn is speaking now about his veto of the ComEd bill. Click here to watch the feed. Blackberry users should click here. Others can just kick back and watch the live blog…

…Adding… The presser is over. I’ll post stories, Tweets, etc. to the live-blog thingy as they come in…

* The ComEd bill is the only piece of legislation currently sitting on the governor’s desk awaiting action

SB1652 UTILITIES - DELIVERY SERVICES
08/29/2011 Senate Sent to the Governor
Mike Jacobs
(Kevin A. McCarthy)

* So, it’s pretty obvious what this press conference will be about tomorrow…

GOVERNOR’S PUBLIC SCHEDULE
**Monday, September 12, 2011**

CHICAGO - Governor Pat Quinn will take legislative action.

WHEN: 10:30 a.m.

WHERE: James R. Thompson Center
15th Floor - Blue Room
100 West Randolph Street
Chicago, 60601

* Meanwhile, one aspect of Gov. Quinn’s energy policy is being undermined by a major gas utility

Peoples Gas is refusing to buy synthetic gas from a pair of politically favored plants on the drawing board for Chicago and Downstate Illinois, jeopardizing the multibillion-dollar projects.

Crain’s has learned the Chicago gas utility and its corporate sibling, North Shore Gas, told state officials Friday they won’t sign long-term purchase contracts with the coal-to-gas plants. State legislation enacted this summer cleared the way for the plants and sought to pressure large natural gas utilities into buying the facilities’ output.

Chicago and Downstate lawmakers, along with coal companies and labor unions, pushed for the plants, which are expected to buy large quantities of Illinois coal and employ hundreds of union workers.

But Peoples and others opposed the legislation on the grounds that gas from the plants would be too expensive, driving up household heating bills.

* Recent related news…

* ComEd eyeing concessions to stave off likely Quinn veto: Ideas on the table include having the utility set up a $50 million fund to help elderly and poor consumers pay their electricity bills, devote $150 million to better insulate the utility’s power grid from weather-related outages and cap ComEd’s annual profits to less than 10 percent during the next three years.

* ComEd officials ‘promise to do better in the future’

* Editorial: ComEd bill needs more consumer protections

* Illinois Town Wants More Precise Smart Energy Language

* ComEd takes more heat, lays out improvement plan at Glenview meeting

  21 Comments      


Question of the day

Monday, Sep 12, 2011 - Posted by Rich Miller

* The President and CEO of the Illinois Chamber of Commerce Doug Whitley was quoted saying something interesting the other day

Whitley said one of the problems facing Illinois is that “Cook County people are out of touch with the pain of the people of downstate Illinois.”

* The Question: Do you agree with Whitley? Take the poll and then tell us why or why not. Also, please tell us which Illinois region you call home. Thanks.


  88 Comments      


CME closer to Illinois deal?

Monday, Sep 12, 2011 - Posted by Rich Miller

* CME Group is still talking to several other states about moving its headquarters out of Chicago, but there is reportedly some progress here in Illinois

CME Group Inc. is making progress in talks with Illinois officials about a tax deal to keep its headquarters in Chicago, even as it expects to receive concrete proposals this week from five states seeking to lure the futures exchange operator away, people familiar with the conversations tell Crain’s.

CME Executive Chairman Terry Duffy met with Illinois Gov. Pat Quinn recently to discuss a new way to tax the company based on where its futures market transactions occur, the sources said.

Currently, the tax is tied to the floor trading, even though most of the company’s business is conducted electronically worldwide. The difficulty in tying the tax to those transactions is in linking them to a particular place and doing so despite confidentiality concerns.

CME Group claims to pay more corporate income taxes than anyone else in Illinois. The problem with our corporate tax is the same as our sales tax. It’s too narrowly targeted, so increases have to be high to generate revenues.

* Speaking of a narrow tax base

About 10 pages into [Comptroller Comptroller Judy Baar Topinka’s quarterly report on the state’s finances] was a snippet that caught my eye. It was the annual “Illinois Tax Expenditures” report. Essentially, this is an annual review of how much the state gives up in tax revenue by providing tax breaks to individuals, corporations and other organizations throughout the state.

The most recent report shows the state could have collected $6.6 billion more in revenue if it didn’t offer tax breaks. That money would pay off the state’s massive pile of unpaid bills and give Quinn enough cash to avert layoffs and facility closures.

Of course, killing off these tax breaks is just about politically impossible.

The biggest tax break is a reduction in the amount of sales tax charged on certain food, beverages and medical appliances. In fiscal year 2010, not collecting the full tax meant the state didn’t reap $1.5 billion in revenue.

In second place on the tax break list is the state’s decision to not collect income tax from retirement income. That cost the state $1 billion in potential revenue in fiscal year 2010. This figure is only bound to grow as baby boomers head into retirement.

* Meanwhile, this is a legitimate concern

Lawmakers who will play pivotal roles in setting up Illinois’ health-benefits exchange — an entity designed to make health insurance more affordable for consumers and small businesses — are among the top recipients of cash from the insurance industry.

One consumer group says campaign contributions make it likely the Illinois Health Benefits Exchange Legislative Study Committee will issue recommendations later this month that benefit the insurance industry at the expense of consumers. […]

Democrats Frank Mautino and William Haine and Republicans JoAnn Osmond and Bill Brady are co-chairpersons of the study committee, which is expected to make recommendations to the General Assembly by Sept. 30 on how the exchange should be governed and funded.

The four have served on insurance committees in the Illinois House and Senate and have received a combined total of $70,800 from the insurance industry so far this year.

You cannot be blamed for believing that this is a classic case of the fox guarding the henhouse.

* Another fox at the henhouse door? That’s what this lawsuit claims

Noted Knoxville attorney Gordon Ball is co-lead counsel on a blockbuster case filed in the Illinois Supreme Court involving State Farm, a $1 billion class action lawsuit, and an allegedly corrupt judge. Former Senator Fred Thompson, who recently led an effort to block “tort reform” liability limits in Tennessee, is co-counsel.

According to the lawsuit, State Farm and its lawyers got an Illinois Supreme Court Justice elected by pumping $2.5 to $4 million into his campaign through PACs, and six months later the judge cast a deciding vote to reverse on appeal a $1.05 billion class action consumer fraud judgment against State Farm involving bogus replacement parts for wrecked cars.

The plaintiffs seek to have the reversal vacated and the original judgement restored to “correct a judgment obtained through fraud and concealment.” They allege that “State Farm’s extraordinary financial and political support for Justice Karmeier’s 2004 campaign created a constitutionally-unacceptable risk of bias such that his participation and vote to reverse the $1.05 billion judgment deprived Petitioners of their due process rights.” They had previously requested the judge to recuse himself from the case but he refused.

The case introduces new evidence from an investigation into the campaign contributions by retired former FBI Special Agent Daniel Reece, a Knoxville native who spent his 28-year career investigating public corruption and fraud in California, North Carolina, Tennessee, West Virginia and Illinois.

The full complaint is here.

* Related…

* House Republicans suggest eliminating state-supported Amtrak trains: According to an Amtrak news release issued Thursday evening, the FY 2012 Transportation-HUD Appropriations Subcommittee budget proposal offered by the GOP would prohibit the use of federal money to help pay for any operating costs of state-supported trains.

* State Challenging Hospitals’ Tax Exemptions: All three of the hospitals the state is focusing on provided free and discounted medical care that ranged from 0.96 percent to 1.85 percent of patient-care revenue, according to the revenue department. The state also said that each one had been operating as a “for profit” business when the state’s Constitution says that “only charities are entitled to a tax exemption.”

* Hold banks to account for their role in crisis: It’s critical that the banks not be given an unlimited pass for past transgressions – to ensure that the truth of what happened to our country is revealed and justice is not short-circuited by financial power. To date, front-line public officials appear to be holding firm. For example, Illinois Attorney General Lisa Madigan, a leader in pursuing cases to help homeowners harmed by bank abuses, recently made it clear that any settlement with the attorneys general will not include the broad waivers the banks are seeking.

* Groupon sued over unpaid overtime

* Aurora mom pickets smokeshop selling synthetic pot

* New takes on loyalty programs look to end dependence on incentives - Mobile apps, social media harnessed by startups to let merchants stay in close contact with frequent customers

* Amazon Wins Reprieve Over Charging Sales Tax: For the time being, mega-online-merchant of everything Amazon.com has gotten its way, somewhat. On Friday night, California lawmakers approved a compromise bill granting Amazon.com a one-year reprieve from charging sales tax to its customers in the state. Amazon, which has deemed the compromise bill “win-win legislation,” is to start collecting sales tax on September 15, 2012, provided there is no federal legislation passed that sets a national standard.

  10 Comments      


Madigan won’t agree to any spending increase

Monday, Sep 12, 2011 - Posted by Rich Miller

* Speaker Madigan says he’ll work with Gov. Pat Quinn to find money to avert facility closures. But there’s a catch. There cannot be any next spending increase

On Saturday, Madigan indicated that despite the governor’s harsh words about lawmakers, Quinn already had told him about plans to ask the General Assembly to increase spending in some areas coupled with cuts in other areas as part of the fall session next month. Quinn lacks the power to shift money around.

“(Quinn’s) representation to us is that where he proposes new spending, he would have commensurate reductions elsewhere. Now, he hasn’t given us the reductions. But I’ve shared with him that if there are changes in the budget they’ll be revenue neutral,” Madigan said after addressing the fall meeting of the Democratic National Committee at a Loop hotel.

State law requires Quinn to go through a formal facility closure process. But given Quinn’s discussions with Madigan, it raises questions why the governor sought such a public platform to chastise lawmakers and give them what he called “a rendezvous with reality.”

“Well, the governor’s engaged in a certain amount of rhetoric relative to the legislature. I’ve come to expect it from the governor,” Madigan said. “I’m not going to get into a difference of opinion with the governor on something like that. I prefer to devote my time and resources toward working with that budget because that’s where the money is being spent. But again, the House is resolved, we are not going above the lid that we put on spending.”

* Moving money around won’t be easy, either

Quinn suggested Thursday that the legislature simply sustain most of his $376 million in line-item veto reductions of spending in the budget. Lawmakers could then reallocate those funds to avert the $55 million in cuts he outlined this week, $76 million in pay raises for state workers that Quinn canceled that are now the subject of several lawsuits, and $183 million in other unspecified cuts Quinn says he will have to make in the future.

But Mautino said downstate was particularly hard hit in both Quinn’s line-item vetoes and his proposed cuts on Thursday. All but one of the seven facilities targeted for closure are downstate. It will be hard for the region’s lawmakers to sustain Quinn’s line-item vetoes and re-allocate those funds because the vetoes were for services that downstate lawmakers believe are vital, such as regional superintendents and school transportation, Mautino said.

* Also, it’s going to cost money to save money

According to state officials, it will take at least $3.8 million to retrofit existing mental health centers in preparation for taking on residents from the shuttered facilities.

Under a plan announced by the governor Thursday, which is subject to action by the General Assembly, Chester Mental Health Center will be closed along with Singer Mental Health Center in Rockford and the Tinley Park Mental Health Center in Chicago’s south suburbs. […]

The facility in Chester, however, is unlike others in the state. It serves as a maximum-security facility for potentially violent individuals who have been deemed unfit to stand trial, not guilty by reason of insanity or unfit to remain in regional mental hospitals because of violent behavior. […]

DHS spokeswoman Januari Smith said the agency will spend the $3.8 million not just on modifications at Alton, but on upgrades to facilities in Elgin and Springfield.

Discuss.

  12 Comments      


The governor’s serious credibility gap

Monday, Sep 12, 2011 - Posted by Rich Miller

* My weekly syndicated newspaper column is essentially a rewrite of a subscribers-only story from Friday morning. Over the weekend, just about every Statehouse journalist who also has a column or who published anything about Gov. Pat Quinn’s shutdown and layoff threats wrote that the governor has a troubled history of making threats and not following up.

To be clear, I’m not taking any credit for this. What I am saying is that if all of us are essentially on the same page, then it’s high time that the Chicago journalists (who are the only ones given access to the governor these days) start pressing this issue as well.

First up, my piece

I began to reminisce during Gov. Pat Quinn’s Chicago news conference last week. Quinn had called the media together to announce he was closing seven state facilities and laying off almost 2,000 state employees because the General Assembly had passed an inadequate budget.

Wait, I thought, haven’t I already seen this movie?

Back in May 2009, Quinn warned that if the General Assembly didn’t pass his proposed income tax increase within two weeks he’d have to implement a “doomsday budget” and lay off more than 14,000 teachers, cancel preschool for 100,000 children, cut 400,000 students off of college aid, kick 650,000 people off of health care rolls, eliminate all funding for public transit, slash a billion dollars to local governments, lay off 1,000 state troopers and release 6,000 inmates from prison early.

Two months later, Quinn threatened to lay off 2,600 state workers because the Legislature’s budget was inadequate.

Two weeks after that, Quinn had pared down the total threatened cuts to a billion dollars, including $225 million for college student aid, and said there was no way the government could operate through the end of the fiscal year without a tax hike.

Almost none of that happened, even though Quinn didn’t get his tax hike until almost two years later.

But, come the following spring, Quinn was back with the same playbook. Quinn said he’d have to cut education by $1.3 billion if a tax hike wasn’t approved.

That didn’t happen, either.

This year, Quinn repeatedly threatened huge cuts to human service providers, then somehow found the money to prevent the tragedy. He also warned in late spring that the bipartisan budget being prepared in the Illinois House was full of “radical” cuts and repeatedly vowed to stop it, then signed the bill into law.

And then last week he once again blamed the General Assembly for forcing him to close those facilities and lay off those state employees — all in order to save a paltry $55 million.

Quinn’s playbook is, by now, pretty darned clear: Blame the General Assembly for causing Armageddon, announce horrifically draconian countermeasures, then eventually find a way to somehow prevent the pending disaster.

He’s like an arsonist firefighter. And, frankly, this is really starting to get old, and it’s more than a little disturbing.

Can the governor comprehend what even the threat of a facility closure does to a small downstate town? Fear spreads like wildfire. People immediately stop spending money. The local economy instantly shuts down.

Yet just about everything Quinn has done since the end of the spring session has been aimed directly at downstate.

His reduction veto of the Medicaid budget spared inner-city hospitals. His vetoes of $100 million in school transportation funding and regional superintendents operations left Cook County virtually untouched. Last week’s layoff and closure announcement included just one Chicago-area facility. Every other state facility on his list was in a downstate Senate Republican district.

“Let me know when ‘Good Pat’ rides in on his white horse, wouldya?” cracked an otherwise quite worried state Sen. Tim Bivins (R-Dixon) last week. The Mabley Developmental Center is in Bivins’ district and it’s on Quinn’s closure list. Bivins’ wisecrack referred to a recent Chicago Sun-Times column of mine about how “Bad Pat” will deliberately create a crisis so that “Good Pat” can swoop in and solve it.

Yes, there is a budget problem. I get it. I’ve written about it many times. Anyone who doesn’t get it is a fool. But if the governor had done the hard work of governing, rather than just hold a splashy Chicago news conference announcing the end of the world, all of this could have been prevented.

Quinn’s budget staff met with legislative staff a few times over the past several days to lay out the situation. Trouble is, the Quinnsters had a different explanation for how much money they needed to free up at every meeting. A memo handed out to staff late last month, for instance, had the budget hole at $180 million, which is a far cry from last week’s claim of a $313 million hole. It’s no wonder that the House Democrats have said they aren’t willing to adjust their revenue estimates to help Quinn out.

People’s lives are not fun little Chicago news conference games, governor. And you’ve been messing with those lives almost from the moment since you were elevated to your position. Grow the heck up, man.

* And here’s Doug Finke

The problem is that since he became governor, Quinn has issued a series of dire warnings about budget cuts and closures and whatever if lawmakers didn’t do his bidding. Lawmakers didn’t, and the dire consequences didn’t materialize.

The danger now is lawmakers will call Quinn’s bluff, thinking he will once again back down. Maybe he will, maybe he won’t.

Of course, that doesn’t help those 2,000 people who don’t know if they will or won’t have jobs in a couple of months. Nor does it help residents of the mental health facilities or their families who don’t know if they are going to be uprooted because the facilities are closing.

They’re just the pawns in this exercise.

* Kurt Erickson

Those potential roadblocks and Quinn’s penchant for backing down from his own threats left many lawmakers figuring the governor’s announcement was just a big bluff.

* Ray Long and Monique Garcia

In the last two-plus years, the Democratic governor repeatedly has issued drastic threats, including cuts in social services, only to back away. […]

Just weeks after taking office in early 2009, Quinn said then-U.S. Sen. Roland Burris should give up his appointed seat within two weeks or risk facing a special election to remove him. But Quinn abandoned that effort within days, saying it was time to “move on.”

When Quinn faced his first budget showdown in summer 2009, agencies under his control sent letters to thousands of social service agencies warning their subsidies would be cut or eliminated because of budget choices by state lawmakers. It didn’t get that bad as the state borrowed to stay afloat.

Later that summer, Quinn said he would fire two University of Illinois trustees who refused his demands to resign amid an admissions scandal. He later relented on the grounds that he did not want to risk a legal fight.

* Chris Wetterich

Sen. John Sullivan, D-Rushville, said a long process remains before any of the cuts or closures happen, including a review and non-binding recommendation by the legislature’s Commission on Government Forecasting and Accountability.

“He can lay it out … but it’s going to be a process to make that happen,” Sullivan said. “It seems to me like this is an overreaction, a knee-jerk reaction rather than sitting down and thinking this thing through.”

Asked if Quinn’s plan will actually be the reality come March 31, 2012, when the administration says the last of the facility closures would take place, Sullivan said, “I think that would be hard to do.”

Quinn budget spokesman Kelly Kraft said Friday the governor is serious – but that he also remains open to discussing options with lawmakers.

…Adding… Scott Reeder

Just consider:

– When he ran for office, he said he wouldn’t support an income tax hike greater than 33 percent. A few weeks after taking office, he signed a tax hike for double that.

– He ran supporting the death penalty but quickly abandoned that position, after getting elected. With one sweep of his pen, capital punishment was abolished in Illinois.

His campaign stances on these issues almost certainly resulted in his razor-thin electoral victory over Republican Bill Brady. Perhaps we shouldn’t be surprised when politicians shed their campaign positions. But how can a voter cast an informed vote if a candidate refuses to keep his word?

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Protected: SUBSCRIBERS ONLY - Supplement to today’s edition and a campaign roundup

Monday, Sep 12, 2011 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Monday, Sep 12, 2011 - Posted by Rich Miller

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Quinn, Emanuel meet the press

Monday, Sep 12, 2011 - Posted by Rich Miller

[Bumped up for visibility from Friday evening, slightly edited, comments opened and stories added.]

* Here’s the raw audio of Friday’s Q&A with US Secretary of Education Arne Duncan, Mayor Rahm Emanuel and Gov. Pat Quinn…

…Adding… Emanuel said he didn’t want to get into the claim by CTU President Karen Lewis that during a meeting Emanuel “exploded, used profanity, pointed his finger in my face and yelled.” But, he did say that the two hugged at the end of the meeting.

...Adding More… Gov. Quinn said “it’s very clear that I did not” decide which state facilities to close based on partisanship. He didn’t explain, however, why it’s so “very clear.”

The governor reacted harshly when asked about the Chicago city council voting this week to urge him to sign the gaming bill. “It would be nice if they read the bill,” Quinn said acidly, pointing out that this was the “same city council that approved a parking meter proposal” which he called a “disaster.”

Quinn was also asked about Emanuel’s previous statements that Quinn’s concerns about gaming regulation were easily dealt with. “C’mon,” Quinn sneered. “Chicago? Gambling? Easily dealt with?”

Ouch.

Emanuel had left the room before Quinn took questions, by the way.

…Adding… Tribune

Gov. Pat Quinn took a little shot today at Chicago aldermen who passed a resolution urging him to sign into law a major gambling expansion that would net the city a casino.

“This is the same City Council that approved a parking meter proposal. . .I don’t think my neighbors or folks in my neighborhood are very happy with the 75-year parking meter disaster,” Quinn said. […]

“To do things in a hasty, ill-considered way is the wrong way and I don’t do it that way,” Quinn added.

The governor’s comments came after the City Council on Thursday backed Mayor Rahm Emanuel’s push to get Quinn to sign the bill. They argued that a Chicago casino would bring new jobs and generate roughly $20 million a month. Emanuel has pledged to use the revenue to rebuild the city.

AP

Illinois Gov. Pat Quinn is denying Republican claims that partisanship played a role his decision to take steps to close seven state facilities and lay off more than 1,900 workers.

Quinn said Friday “it’s very clear” he didn’t target facilities in Republican areas. Illinois House Republican leader Tom Cross has accused Quinn of targeting “Republican facilities and Republican jobs.”

Five of the seven facilities Quinn targeted to close have both a Republican state senator and representative. A sixth has Democrats and a seventh is split with a Republican senator and Democratic representative.

* And Lynn Sweet indicates that President Obama is fine with a Chicago casino

When President Barack Obama dropped in at Chief of Staff Bill Daley’s office on Friday, the conversation with visiting Chicagoans — including former Mayor Richard Daley and his son, Patrick — turned to how Mayor Rahm Emanuel was doing, why Chicago doesn’t have casino gambling and Obama’s own immigration record.

That’s the report I got from Ald. Danny Solis (25th) […]

“Obama could never understand why Indiana and the other states” had casinos and Chicago did not, Solis said.

One thing, I guess, led to another and Obama offered up, Solis said, that his mother-in-law, Marian Robinson, “goes once or twice a year to Vegas and really enjoys it.”

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« NEWER POSTS PREVIOUS POSTS »
* Rep. Canty says she is ‘disturbed’ by LIG’s conduct
* Illinois becomes 19th state to beat back DOJ on voter database seizure attempt
* Reader comments closed for the weekend
* Isabel’s afternoon roundup
* Rep. Kelly Cassidy: Speaker Welch has issued a 'series of excuses, victim blaming, and a failure to publicly acknowledge shortcomings'
* LIG initially recommended no expulsion proceeding against Benton - One complainant claimed 'inaccuracies' in the report
* Speaker Welch statement (Updated x2 with Pritzker statement)
* LIG report released
* Legislative Ethics Commission still fine-tuning Benton report (Updated)
* Pritzker says he looks forward to seeing Welch's CPS funding plan
* Sean Grayson denied early medical release from prison
* Turning Promise Into Progress For Illinois Students
* Color me highly doubtful
* Governor Pritzker, Fight For Us.
* Today's must-read
* Isabel’s morning briefing
* Good morning!
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