Pension reform status update
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* From the We Are One Coalition…
Today, the Sangamon County Circuit Court decided it would take up first the motions filed by the We Are One Illinois coalition and other plaintiffs who argue that the Pension Protection Clause renders SB1 unconstitutional. At today’s status hearing, the Court stated its belief that the Plaintiffs’ motions, if granted, will resolve the question of whether SB1 is constitutional. The Court directed the Plaintiffs to file their replies in support of their motions by October 31 and set argument for November 20 at 1:30 p.m.
The following statement may be attributed to We Are One Illinois:
“As we have always maintained and the recent Kanerva decision confirms, the pension protection clause of the Illinois Constitution is absolute and without exception. There is no merit to the State’s purported justification for the unconstitutional diminishments and impairments that SB1 imposes. We are hopeful for a swift resolution in the plaintiffs’ favor, so that we can work with legislators willing to develop a fair—and legal—solution to our state’s challenges, together.”
…Adding… SJ-R…
“There are three motions pending saying that the reserve sovereign powers as alleged by the state is not a defense in this case,” said Springfield attorney Don Craven, who filed one of the multiple lawsuits attempting to have the pension reform law declared unconstitutional. “The court agreed to take those matters up first. If we are right, and the reserve sovereign powers doesn’t work, this case will be over.”
At least at the circuit court level. Both sides agree the matter will eventually be decided by the state Supreme Court.
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Caption contest!
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* Yes, it’s late in the day, and yes, we already have one other caption contest going, but how could we pass up this? From my pal Kerry Lester…
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Money still coming in for referenda
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* More money is flowing into political committees designed to push statewide ballot initiatives. For instance the Committee to Reduce Income Inequality & to Support Human Rights has gone from raising $757,500 since the end of last month to a bit over a million dollars today. The Operating Engineers, Amalgamated Transit Union and the Great Lake Region Organizing Committee have all pitched in since we last checked that committee.
* The Committee to Raise Illinois’s Minimum Wage had raised $603K by the end of September. It’s up to $962K today. SEIU Healthcare, the NEA, Leo Smith and others all contributed.
* And as subscribers already know, Dr. Henry Nicholas III contributed $850,000 to the Marsy’s Law for IL Committee on October 1st.
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A very important thing to remember
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* This comment by “Illannoyed” is spot on…
The Rauner folks might be getting some of what they need. Both the Sun-Times and Tribune have headlines and stories that can be used in campaign ads. I understand that a campaign taking advantage of an existing policy isn’t improper in and of itself, but good luck explaining that to an electorate accustomed to political corruption. The nuance is likely to be completely lost.
S/he’s right. Sun-Times…
Tribune…
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Question of the day
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* Former Illinois Violence Prevention Authority director Barbara Shaw is sworn in this morning before taking questions from the Legislative Audit Commission…
* The Question: Caption?
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* Sun-Times…
For the first time, proof emerged that Gov. Pat Quinn’s 2010 Neighborhood Recovery Initiative factored into his election strategy that year in personal emails from the governor’s former top aide that were released Wednesday by a legislative panel investigating the program.
The emails from ex-Quinn chief of staff Jack Lavin represented a key highlight from the opening of two more days of hearings on the $54.5 million anti-violence grant program that is now under federal investigation. […]
“I don’t think there’s been any question in anyone’s mind that the Quinn administration, his governmental staff and his political staff, used government resources to please certain constituencies that they hoped would increase the voter turnout and suppress the voter turnout for us prior to the election,” Brady told Early & Often, the Chicago Sun-Times political portal.
“There’s been various sightings, so to speak. This clearly is smoke. I don’t know if it’s a smoking gun or not. But clearly, they were using government programs to try to increase their support in certain communities in the state. This is clear evidence of it,” said Brady, who narrowly lost the 2010 election to Quinn and is a member of the Legislative Audit Commission.
* OK, let’s look at the e-mails.
…Adding… The governor’s campaign and a spokesperson for the Senate Republicans clarified that these e-mails were from Jack Lavin’s personal, not his government account.
[If the links don’t work for you, click here, go to NRI Audit Review Documents and then find the Lavin e-mails.] Here’s the relevant part of the Lavin e-mail dump mentioned above. Lavin was Quinn’s chief operating officer at the time and also did work on the campaign during his off-hours…
* This does indeed show cooperation between the governing side and the campaign side. But if you know anything about campaigns and governing, you know that there is no absolute wall separating the two. As long as it’s done outside the confines and locale of government offices, hours, etc., it’s all accepted practice.
Look, incumbents campaign on (or run away from) their records, and so it’s no real surprise that the campaign would discuss the value of using a state program for their guy’s political benefit (or to keep something from becoming a problem). And, again, keep in mind that these aren’t state workers on state time. These are people with the campaign and administration officials on their own time. There’s a huge difference there.
The e-mails certainly show that the NRI was viewed by the campaign as a popular program that would help Quinn’s reelection. I don’t think anyone has ever denied that. Governors do this sort of thing all the time with ribbon cuttings, etc. If you want politics completely out of government, you have to cancel all elections.
* To be illegal, though, you’d probably need some internal state correspondence or a witness who could place overtly campaign decisions within the governing process, instead of the other way around (which is what those e-mails appear to show). Barbara Shaw denied any such connection during her testimony this morning…
“Elected officials, presidents, governors often introduce initiatives and programs to respond to the needs of constituencies that they serve. So, it wasn’t a shock to me, that this was happening during that time. But I do want to say here, the governor’s office never told us who to give the money to, what communities to go in, what agencies should get that money. The elections did not play a role in where that money went to,” Shaw answered.
* So, on to some other e-mails, which are agendas for early morning campaign meetings…
* Again, what this shows is that on at least three days during the the campaign, the political operatives discussed the political value of the NRI program.
Were decisions being made about the actual NRI program during those three meetings, or was NRI discussed in the context of maximizing political benefit from a state program? Standard campaign procedure would suggest it’s most likely the latter, but, of course, we don’t know for sure.
However, “incoming FOIAs” right below “NRI” is quite interesting. We don’t know whether or not the two topics are related. But that’s really interesting. Again, though, the campaign needs to know what to expect from the media and the opposition, and so discussing incoming government FOIA requests would definitely be part of that process.
*** UPDATE 1 *** From the Rauner campaign…
“Governor Quinn’s chief of staff tried to conceal these emails but got caught red-handed,” Rauner campaign spokesperson Mike Schrimpf said. “These emails are the tip of the iceberg but one thing is now clear – the Neighborhood Recovery Initiative had nothing to do with policy and everything to do with politics. It shouldn’t be a surprise to anyone that two federal grand juries are investigating the blatant diversion of millions of taxpayer dollars to support the governor’s election. It’s time for Pat Quinn to turn over all of his electronic communications from 2010 so we can finally find out what he knew and when he knew it.”
*** UPDATE 2 *** From the Quinn campaign…
Those were clearly not government conversations.
Chicago was in a state of emergency in the spring and summer of 2010. The issue of gun violence was a critical concern for many constituencies, particularly in the African American community. Six police officers were slain. Dozens of innocent people were being gunned down every day. A young boy was shot 22 times. There were calls for Governor Quinn to activate the Illinois National Guard.
The Governor acted forcefully in response to the bloodshed on the streets. The NRI program was one of many actions he’s taken that the campaign promotes - he signed bills to crack down on gun violence, prevent guns from getting into the wrong hands and to tackle some of the root causes of violence. He implemented programs to address high unemployment in the most at-risk areas. He came into the inner city often to meet with community activists, clergy, parents, students and law enforcement personnel. He did his job.
In any incumbent’s campaign, you run on your record.
Obviously the campaign would want to promote what we are doing to fight violence in the community during an election, just like any other policy issue in a campaign.
We are constantly taking inventory of all the various policies, programs and achievements of the Governor’s administration so we can properly and fully communicate them to constituencies who care about where he stands, what he’s done and what he will continue to do in office.
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Poll: Durbin up 51-38
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* From a Jim Oberweis fundraising e-mail sent yesterday…
Here are three quick facts about my campaign to unseat Obama Democrat Dick Durbin in Illinois:
1.) Multiple polls now show me surging to within 6 points of Dick Durbin.
2.) Dick Durbin is nowhere near 50 percent in a single poll.
3.) My campaign needs your immediate help to close this gap and win this race!
Please make your most generous donation of $25, $50, $100, $250, $500, or more to my campaign right now to help me keep the pressure on Dick Durbin. We’re on track to win this race, but we can’t give up now!
My name is Jim Oberweis. I’m a conservative state senator here in Illinois, and I have made it my mission this year to send Dick Durbin packing.
Right out of the gate, liberals - and even some conservatives! - wrote my campaign off as a non-starter. But now, I’m pulling within 6 points of one of the top Democrats in the U.S. Senate!
* It’s a good thing he sent that yesterday, because today…
Seeking his fourth term, Democratic U.S. Sen. Dick Durbin held a 13-percentage-point lead over Republican challenger Jim Oberweis in a new Reboot Illinois poll.
Oberweis, a Republican state senator from Sugar Grove, had a better showing among Chicago and Cook County voters than in a Reboot Illinois poll a month ago, but he also lost ground to Durbin among respondents in the five collar counties and downstate. Libertarian candidate Sharon Hansen was the choice of 4 percent of respondents, with 6 percent undecided.
The automated poll of 1,086 likely voters, conducted Oct. 7 by We Ask America, had a margin of error of 2.98 percent with cell phone contacts making up 24.5 percent of contacts. Party identification of respondents was 27 percent Republican, 35 percent Democrat and 38 percent independent.
* Crosstabs…
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* The SJ-R followed up on the Politico story about Democratic groups pulling out of Ann Callis’ congressional race…
Ann Callis said Tuesday that having the political arm of the House Democrats pull funding for some advertising on her behalf doesn’t mean she’s out of the running in the 13th Congressional District.
“I don’t wake up in the morning to see what the national Democrats and the national press are saying about me,” Callis told the editorial board of The State Journal-Register. “I know we have built an extremely strong ground game … and I am confident that we are in a very, very good place.” […]
But Brandon Lorenz, DCCC regional press secretary, did not concede the 13th. “Ad reservations are changing every week, and Judge Ann Callis is running an aggressive campaign in a tough climate” while exposing Davis’ record, he said.
“Remain calm!”
* WICS has more Callis reaction…
“It’s clear we’re building grassroots momentum and will continue to fight for our values for the next four weeks.”
“All is well!”
Hat tip to the NRCC for the story links. The “Animal House” reference is my own.
*** UPDATE *** From the Callis campaign…
The campaign of former Chief Judge and Congressional challenger Ann Callis today announced it is in a strong position going into the final four weeks of the election due to its successful fundraising and strong grassroots network of support.
The campaign had its strongest fundraising quarter of the cycle, raising more than $400,000 during the third quarter. As of September 30th, the campaign had more than $545,000 cash on hand. Volunteers across Illinois have responded to Callis’ call for change and have contacted thousands of residents and registered more than 8,300 new voters as of the traditional registration deadline, a strategic key in a district that was decided by 1,002 votes in 2012.
“Our campaign is building strong grassroots momentum as voters connect with our message of restoring accountability to Washington for members of both parties. We’ve seen record fundraising as individual low-dollar donors and families across Illinois are chipping in and doing what they can, rejecting Congressman Davis’ Washington insider strategy of relying heavily on funds from special interests and corporate donors that directly benefit from his votes.
“Let me be clear, this campaign has never been about the national Democratic Party, out-of-state billionaires like the Koch brothers, or Washington pundits. My campaign and vision for public service are not beholden to anybody but the people I’d be elected to serve. As a woman who has spent her career in the judiciary, I’ve been underestimated before, but I am confident and inspired by the many people across our district who are fueling this campaign and leading us to victory on Election Day,” said Callis.
*** UPDATE 2 *** The DCCC has reported paying for about $200K in ads blasting Rodney Davis, so despite the Politico report they haven’t completely withdrawn yet. Many thanks to a commenter.
*** UPDATE 3 *** From the Davis campaign…
1. DCCC was on record saying they were staying in Champaign-Springfield with their initial three week ad reservation. They are currently in the second week of that run. This reservation has been on the books for months, so the money put down this week is nothing new. This reservation has DCCC on Champaign-Springfield until 10/20.
“But the DCCC official pointed out that it will continue to advertise for Callis on Champaign, Ill., television for at least three weeks in October.”
http://www.stltoday.com/news/local/govt-and-politics/gateway-to-dc/democrats-pulling-air-support-for-callis-house-campaign-on-st/article_37b9439a-322a-5d56-b6ee-e469f61d3285.html
2. That same P-D story points out the DCCC reservation pulls in STL market.
“the Democratic Congressional Campaign Committee has decided to pull October advertising dollars on St. Louis TV it had set aside for Democrat Ann Callis, who is challenging Illinois’ 13th District Republican Rep. Rodney Davis, R-Taylorville.”
3. It was reported last week by Roll Call that House Majority PAC, cancelled reservations in STL market targeted for IL13
http://atr.rollcall.com/elections-2014-house-majority-pac-cuts-house-races/
4. DCCC still has a reservation in STL for 10/28-11/3 and HMP still has a reservation for Champaign-Springfield for 10/28-11/3. Of course, as the DCCC spokesman said, they are changing weekly.
5. Finally, our media folks confirm today that House Majority PAC has cancelled their reservation in Champaign-Springfield market for 10/21 to 10/27.
So, we have had DCCC pulls in the STL market and HMP pulls in STL and Champaign-Springfield markets, with certainly the potential for more pulls. Anyway you slice it, not good for them.
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* Reboot…
The automated poll, conducted Oct. 7 among 1,083 likely voters by We Ask America, found Cross leading Frerichs 40 percent to 39 percent, with Libertarian candidate Matthew Skopek at 6 percent and 15 percent undecided. Party identification of respondents was 27 percent Republican, 35 percent Democrat and 38 percent independent. The margin of error is 2.98 percent. Cell phone contacts made up 24.5 percent of the respondents.
Frerichs, a Champaign Democrat, had trailed Cross, an Oswego Republican, in Reboot Illinois polls on June 17, July 31 and Sept. 4, by margins of 7, 11 and 6 percentage points, respectively.
* Xtabs…
* And the new result ought to help Frerichs raise money. From a recent NYT article entitled “How to Win at Raising Money: Warn That You’re About to Lose”…
Why do campaigns keep saying they’re losing? These doom-and-gloom messages seem to be effective at motivating donors. The best evidence to support this claim comes from a new study by the social scientists Todd Rogers of Harvard and Don A. Moore of the University of California, Berkeley.
In other contexts, they note, projecting confidence is often a successful leadership strategy. But in politics it may serve to demobilize potential donors by convincing them that their contributions are unnecessary. Why give if your preferred candidate is going to win anyway? By contrast, people are often more motivated to act when trying to avoid an undesirable outcome — in this case, losing an election.
To demonstrate this point, Mr. Rogers and Mr. Moore conducted experiments in which they showed that online survey participants are more supportive of hypothetical preferred candidates if they are just behind in the polls instead of just ahead.
These differences matter in the real world of campaigns, as the two professors show using fund-raising experiments conducted by the Democratic Governors’ Association and Anne Lewis Strategies, Inc. Emails from the D.G.A. saying that Rick Scott, the Republican candidate for governor in Florida, was ahead of the Democrat Charlie Crist in the polls were almost 50 percent more likely to result in a donation and raised approximately 60 percent more than those saying Mr. Scott was behind.
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Schneider’s new ad: “On the Floor”
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* From the Brad Schneider campaign…
U.S. Congressman Brad Schneider (IL-10) released a new broadcast television ad today that highlights former Congressman Bob Dold’s record of standing with Republicans to support ending the Medicare guarantee, raising the retirement age, raising middle class taxes and defunding Planned Parenthood.
“When he had his chance, Dold voted with Republicans to end the Medicare guarantee, raise middle class taxes and defund Planned Parenthood,” Schneider for Congress spokesperson Staci McCabe said. “Time and again, Bob Dold proved he could be counted on as a reliable vote for Republican’s irresponsible agenda.”
* This is the second attempt at reproducing the magic of 2012’s “too Republican” ad. Tell us what you think…
* Script…
Husband: More decisions, huh?
Wife: Yeah.
Husband: Oh no…Bob Dold and the Republicans…
Wife: They’re still selling this stuff?
Husband: Ridiculous. End the Medicare guarantee. Raise our taxes…
Wife: Raise the retirement age for Social Security. Defund Planned Parenthood?
We can’t afford any of this.
Husband: It looks even worse from this side.
Wife: Those Republicans…
Husband: Yeah, it’s not our style.
Wife: Definitely not for this house.
Husband: Do you have the receipt?
Wife: Just throw it out.
Um, if they “can’t afford any of this,” then why throw it out?
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NRI hearing coverage
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* Bombshell or just the usual? The lede…
The Neighborhood Recovery Initiative has been a political liability for Gov. Pat Quinn since a state audit tore apart the grant program in February, but newly released emails show top aides to the governor worried about its potential political cost as far back as 2011.
OK, but scroll down and here’s what you see…
That’s when former Quinn chief of staff Jack Lavin, the governor’s former chief operating officer Andrew Ross and the director of the Illinois Finance Authority, Chris Meister, worked to insulate the governor and help contain a brewing, NRI-related tempest involving Chicago Ald. Deborah Graham (29th) in her 2011 aldermanic race. […]
Ross’ emails show that Quinn’s cadre of advisors was focused on a campaign press release from Graham’s aldermanic opponents, who vowed to speak out jointly at a Feb. 15, 2011, news conference against the “questionable appropriation of anti-violence funding directly benefiting the incumbent alderman.”
“The potential exposure for the governor’s office from the factually incorrect press release alludes to a scenario where the governor and Alderman Graham made these funding decisions of [sic] their own,” Meister wrote, noting that four of Graham’s opponents had “received … either directly or through affiliated organizations state and federal funds.”
On the afternoon of Feb. 15, 2011, Meister circulated a statement from Graham in which she assailed her opponents’ “last-minute attack” as a move that “stoops to a new low.”
So, the governor and Graham both deny coordinating the grant. Why wouldn’t the governor’s office work to shoot this one down? Now, if they’re not telling the truth, that’s a whole other story. But if there was no coordination, then they do have a right of self-defense.
* Anyway, the Senate GOP says that live video of the 10 o’clock hearings will be available at the Legislative Audit Commission website (ADDING: It’s actually on the GA’s main page). Subscribers have access to our own exclusive live video here. And here’s the ScribbleLive thingy…
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Quinn TV ad slams Rauner on assault weapons
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* Today’s hearings into the governor’s 2010 anti-violence initiative may have prompted this Quinn campaign ad blasting Bruce Rauner over his stand on assault weapons. From a press release…
350 Bullets: That’s How Many Bullets a Military-Style Assault Weapon Can Fire During New TV Ad
CHICAGO - 350. That’s the number of bullets a military-style assault weapon with a high-capacity ammunition magazine can fire in the time it takes to watch a new Quinn for Illinois TV ad that highlights Republican billionaire Bruce Rauner’s heartless support for the deadly weapons.
Ignoring communities plagued by gun violence, Rauner has expressed strong support for the ownership of military-style assault weapons and said that use of such deadly weapons should be “up to the owner.”
The new ad points out that, “Assault weapons are designed for just one purpose - to kill a lot of people in a short amount of time.”
* Rate it…
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Rauner’s new web video: “NRI Blues”
Wednesday, Oct 8, 2014 - Posted by Rich Miller
* On the morning of the Legislative Audit Commission’s hearing into the governor’s botched Neighborhood Recovery Initative, Bruce Rauner has launched a new web video which attempts to paint Gov. Pat Quinn as corrupt. Rate it…
* Meanwhile, the AP has a brief preview story about today’s hearing…
The Legislative Audit Commission subpoenaed seven former Quinn administration officials connected to the Neighborhood Recovery Initiative. They’re due to start appearing before the bipartisan committee that oversees state audits today. Organizers say testimony could take all day.
Quinn championed the program in 2010 to help target neighborhood violence. However, state auditors found “pervasive” problems with management and spending and county and federal authorities are investigating further.
Critics deemed it a “political slush fund” to help Quinn shore up votes in a close gubernatorial contest. Quinn dismisses those claims, but the issue dogs his campaign. He faces a challenge from Republican Bruce Rauner
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Rauner gives self another $1.5 million
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Today’s A-1 filing is here. That comes on top of another $1.5 million Rauner’s campaign reported Friday afternoon. The gazillionaire has contributed $4.5 million to his campaign since September 22nd, and $15,576,000 to himself since becoming a candidate.
Hat tip to the DGA.
* Apparently, today’s fundraising e-mail wasn’t sufficient (/snark)…
Friend,
The Washington Post reported last week that Democrats have spent more money in Illinois than any other state!
President Obama was here last week. First Lady Michelle Obama is here today. Hillary Clinton is here this week too.
Now it’s being reported this will be the most expensive governor’s race in history… and we’ve been outspent.
We’ve been outspent in what could be the most expensive governor’s race in Illinois history. Why are Barack and Michelle Obama, Hillary Clinton, national Democrats and special interests pouring in tens of millions to beat us?
A few words: polls and priorities.
Polls? A series of polls show us with a small but durable lead. Their only hope to win is to outspend us (turn on your TV to see how they’re trying to make that happen).
Priorities? Pat Quinn is the poster child of machine politics. A career politician under two federal investigations who raised taxes 67% and oversees a state with billions in debt. A governor who raised taxes on everyone, but still has cut education spending by $500 million and released violent prisoners early.
When we beat him, we will beat the machine. Everyone knows that. That’s why Michelle Obama is here today. It’s why Hillary Clinton is coming.
Will you help us compete with Pat Quinn’s Obama-Clinton fundraising machine by making an online contribution of $10, $25, $100, $250 or even $1,000 right now?
The President, the First Lady and Hillary Clinton. What do they all have in common? All three are going all-in to save Pat Quinn’s campaign from defeat.
Last week, President Obama came to Chicago to raise $1.25 million for Pat Quinn. And you stepped up BIG to help us compete. But it’s not over yet.
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* AP…
A Chicago attorney and anti-corruption campaigner is stressing that a court-appointed monitor is needed to ensure the state’s Department of Transportation is in compliance with political hiring bans.
Michael Shakman’s filing Monday in federal court comes in response to a motion by Gov. Pat Quinn’s attorneys that the governor’s administration’s response to allegations of political hiring in the department had been both “prompt” and “appropriate.” […]
Shakman says the state investigator’s findings are reason enough for the monitor.
* Shakman says a whole lot more than that. From his filing…
The centerpiece of Governor Quinn’s argument is that all the issues identified by the [Inspector General’s] Report have been addressed. As noted above, the Report did not probe the involvement of the Governor’s office and did not state the numbers of transfers that violated the Decree. Thus, whatever the Governor’s responses, they don’t address those issues. Nor are they sufficient to address the identified violations in a manner likely to prevent reoccurrences.
Governor Quinn responded to the Report by directing IDOT to (i) retrain executive staff, who “will be required to attend a Rutan training course,” (ii) annually compare employee job descriptions with actual duties and if there is a discrepancy, “the job descriptions must be clarified,” (iii) hire an outside consultant to review exempt positions and provide updated descriptions to CMS to decide if they are really exempt, (iv) not create new exempt positions until the Governor says to do so, (v) abolish the “staff assistant” title, (vi) create a new definition of “technical” and an oversight board, (vii) “ensure” that all transfers into non-exempt positions are lawful and (viii) review prior audits for compliance.
What is missing in the Governor’s Response? Like the Report, the Governor’s response provided no explanation for the root causes of illegal hiring (in violation of Rutan) or for illegal duty assignments to often-meaningless jobs, followed by illegal transfers to non-exempt positions (both in violation of the 1972 Decree). Rutan and executive orders previously cited by the Governor, June 6, 2014 Response clearly did not prevent illegal hiring, illegal job assignments or illegal transfers. Missing from the Report and the Governor’s response is an analysis of why these violations occurred, the methods used, and structure to give reasonable assurances that violations will not occur in the future. Without that, the Governor’s directives will just be more words on paper.
How meaningful are the Governor’s remedial actions? The Governor is embroiled in a hotly-fought election contest against a candidate who focuses on the IDOT employment mess; the Report describes serious problems with IDOT employment practices, mostly on Governor Quinn’s watch; the Plaintiffs’ motion seeks a monitor to investigate and report, and the right to take discovery. What is surprising is how little the Governor has actually done in response.
(i). Retraining is not a solution because there was training before, as the IG’s Report notes. It did not prevent violations.
(ii). Comparing job descriptions and actual duties may provide more evidence that job titles have been manipulated, but will not address why. It will not prevent new “discrepancies” in a system operated for political purposes, as has occurred since early in the Blagojevich administration. The real question is how to prevent political misuse of job titles. […]
(iv). Freezing creation of exempt positions until the Governor says otherwise may be good public relations, but is not good public policy. Some positions should be exempt. The process of creating legitimate exempt positions should not be suspended until the Governor says otherwise. Rather, proposed exempt position descriptions could be prepared and circulated to Plaintiffs’ lawyers and a monitor. That process has worked well for other governmental agencies subject to Court orders in this case. It results in a credible exempt list approved by the Court.
(v) - (iv). Abolishing the “staff assistant” title, creating a new definition of “technical” and an oversight board fall into the category of closing the barn door after the horses have left. The problem with “Staff Assistants” was not inherent in the position. Rather, hundreds of positions were used to employ people who had clout, but who did little or nothing. Eliminating the “Staff Assistant” job title does nothing to prevent the same misuse of other positions. Nor does defining a “technical” job description and reviewing that determination prevent reoccurrence of patronage practices in other jobs. This case has demonstrated the creativity and willingness of public officials to engage in political manipulations in violation of the Decrees and their own internal written policies. Here “[t]he actions of IDOT officials violated Administrative Order No. 2 (2009) and IDOT’s own personnel policies,” Report at iv, not to mention this Court’s Decree. More than restating the rules is needed. Independent, external oversight is necessary.
(vii) - (viii). Ensuring that all transfers to non-exempt positions are lawful and reviewing all prior audits for compliance are also after-the-fact efforts that do not identify causes, prevent repetition or provide a trustworthy policing mechanism.
All these steps could have a role in a comprehensive effort to devise permanent, long-term solutions. But they appear mainly to be public relations efforts to show that the Governor is doing something – and to support his argument that the Court should do nothing.
*** UPDATE *** From the Rauner campaign…
“Bruce agrees with Michael Shakman that the governor’s phony reforms ignored the underlying corruption inside his administration and will not prevent illegal hiring at IDOT in the future. Pat Quinn said he would end patronage four years ago — he was lying then and he’s lying again today. The only way to end illegal patronage hiring is to submit to Michael Shakman’s call for a federal hiring monitor at IDOT.” - Rauner Spokesperson Mike Schrimpf
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* Bruce Rauner isn’t the only guy running pro-choice ads on Chicago-area cable TV…
Tom Cross, the Republican candidate for State Treasurer, is running a television ad in which he plainly states that he’s “pro-choice, pro-stem cell research,” and “proud” of being a deciding vote to legalize same sex marriage in Illinois.
It is unclear the scope of the ad buy. However, it is running on the Food Network, which boasts a 62% female viewer demographic with a household income $75,000+.
The Cross campaign has yet to make the ad publicly available, according to Illinois Review.
* And this’ll probably make some GOP heads explode, but Cross shared an endorsement with his Democratic rival today…
The Equality Illinois Political Action Committee (Equality Illinois PAC) today endorses the re-election of Atty. Gen. Lisa Madigan, Secretary of State Jesse White and Comptroller Judy Baar Topinka in the Nov. 4 General Election.
With no incumbent in the race for treasurer, Equality Illinois PAC, endorses both candidates, state Rep. Tom Cross, a Republican, and state Sen. Mike Frerichs, a Democrat.
Notice they went with Topinka over Sheila Simon. They explained in the press release that they side with incumbents who are with them.
* Meanwhile, from the Tribune editorial board meeting…
Cross, a partner at a Joliet-based law firm, has said he hopes to use the bully pulpit of the treasurer’s office as a means to encourage the General Assembly to approve a balanced budget and could sue. Frerichs called Cross out Monday, saying any citizen could do that and there’s nothing in the Illinois Constitution that gives the treasurer responsibility to do so.
“Every lawyer I’ve consulted says the … treasurer has no special standing,” Frerichs said.
Cross maintained that a lawsuit “is one way to hold the General Assembly and/or the governor accountable,” he said.
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Senger up with new TV ad
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* As we discussed yesterday, state Rep. Darlene Senger may have a fighting chance against incumbent Democratic Congressman Bill Foster. Rate her new ad…
* Script…
Big spending Bill Foster…
…He’s voted seven times to increase the debt limit…
…While opposing a balanced budget.
Higher taxes, job killing regulations, wasteful spending…
…Bill Foster voted for it all.
I’m Darlene Senger. I’m running for Congress to get Washington to work for us.
We need to cut the debt and lower taxes for families and small businesses.
Darlene Senger opposed governor Quinn’s tax increases.
She’ll fight for us in Congress.
I’m Darlene Senger and I approve this message.
* Related…
* Foster, Senger disagree on immigration approach
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* Tribune…
Republican governor candidate Bruce Rauner today said he blames Democratic Gov. Pat Quinn for the deaths of child-abuse victims whose families previously had contact with the state’s child-welfare agency.
“Yes,” Rauner said when asked by reporters if the deaths of 95 children with past contact with the Department of Children and Family Services from 2011-2013 were attributable to Quinn.
“Pat Quinn is, in the end, responsible for the failings at the Department of Children and Family Services. If it was a one-year problem or a temporary problem you could say, ‘OK, maybe, there was, it’s not really his responsibility.’ But he’s been governor for six years. He’s had a revolving door of failure at Department of Children and Family Services for years and years,” Rauner said.
But…
Quinn spokeswoman Anderson said that an increase in deaths from 2010 to the 2011-2013 time period was in part attributable to a change in reporting requirements. That change required a finding of neglect if an infant died after being left in an unsafe sleep situation, such as in bed with a parent. Those reporting requirements were changed to the former rules in March.
* And YDD makes a very interesting point in comments…
I would note that the opening scene of the Rauner ad shows an infant being placed to sleep with a blanket in his crib.
One of the leading causes of sleep suffocation, according to every medical expert.
The American Academy of Pediatrics strongly recommends infants sleep alone, on their backs, and in a crib that is free of blankets, toys, and other possible suffocation hazards.
Sleep suffocations were the single largest cause of death in the Sun-Times report.
The child in this ad is clearly being shown placed at risk, apparently unbeknownst to Rauner, who is promoting a very unsafe practice.
He appears to be right about the AAP and the ad itself.
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* As I’ve been telling subscribers for a couple of months now, the advertising in state legislative races has been truly vicious, particularly the stuff from the House Democrats. For example…
District 59 Republican challenger Leslie Munger is denying claims that she supports pedophiles working in schools, a misinterpretation that she says incumbent State Rep. Carol Sente is spreading through a call center.
Munger said she learned about the claims when a supporter and resident of the district copied a voicemail message and shared it with her. The person who left the voicemail said that Munger opposes a recently adopted law that would help keep pedophiles from working in schools, and reminded the voter of a Buffalo Grove teacher who was recently arrested on charges of producing and receiving child pornography, according to Munger. […]
“These attacks are completely baseless and are a result of my desire to stop the unfunded mandates Springfield keeps passing, imposing increased costs and higher property taxes on our communities,” Munger said in a statement responding to the voicemail message. “My opponent is spreading these lies against me because she cannot run on her record.”
Munger said a search of the national sex offender registry only costs $5 and background checks cost between $7 and $15. She said she supports the checks and would not repeal that law, but surmised that the caller may have been referring to her opposition to “unfunded mandates.”
When you say you’re against “unfunded mandates,” you should say right at the start you don’t mean “good unfunded mandates.”
But, yeah, wow, what a nasty hit. The danger for Sente is that this creates a North Shore backlash. And, frankly, that’s as it should be.
Subscribers have audio of the robocall and the full script.
* The House Democrats also love to bring national issues into state races because people tend to understand national stuff more than state stuff and because the House Democrats are actually responsible for the bad state stuff and they can more easily blame Republicans for all the lousy national Congressional stuff. I’ve given subscribers numerous examples of this, but here’s an Illinois Review piece from today…
Tuesday, West Suburban Patriots released copies of the campaign ads that have filled voters’ mailboxes in the 46th House districts they say are “blatantly false” about their organization’s efforts.
“Heidi Holan’s Tea Party friends know she will grant their dangerous wishes,” one mailer said, with “Cut Social Security” and “Slash Medicare” as two wishes from an Aladdin’s lamp.
“Heidi Holan and the Tea Party agenda are Bad News for Illinois Seniors,” the reverse side says.
The West Suburban Patriots are very upset about the impression the mailers leave with their neighbors.
“At no time, nor in any manner has our organization ever advocated ‘cutting funding from Social Security or Medicare or slashing guaranteed medical coverage and benefits that senior citizens rely on, etc.’ To state such is a blatant lie,” the press statement said.
* The Republicans are not happy with these hits, but they take them in stride and fire back when necessary.
There’s just no way to prepare yourself to run against these House Democrats because they grab things out of thin air and throw it at you.
I mean, they’re using an end-of-session budget press release by House GOP Leader Jim Durkin to claim that a bunch of GOP candidates support raising politicians’ pay, which is an absolutely crazy concoction. I’d tell you more, but I want a subscription check first.
* Anway, when Dan Proft’s Liberty Principles PAC took a page from the House Democratic playbook, Rep. Scott Drury (D-Former Federal Prosecutor) filed a $9 million lawsuit…
Drury alleges that around Oct. 1, Proft, Liberty Principles PAC, Neerhof and his campaign produced and distributed campaign mail and cable ads that falsely portrayed Drury as “a proponent of local school funding cuts — which he is not,” the suit stated.
Drury was also portrayed as unethical and a political “sheep” who does the bidding for others, the suit stated.
Proft, reached by phone Monday night, said Drury’s suit is “frivolous.”
“The idea that Scott Drury thinks that a disagreement over policy in a political campaign is something to be litigated shows how insulated he is from the need for public discourse in this state,” Proft said.
* Basically Proft did what the HDems are doing elsewhere, claiming that because his party leaders want something, Drury does, too. In this case, it’s Sen. Andy Manar’s school funding reform bill…
* And check out part of Drury’s lawsuit. Click for a larger image…
OK, first of all, this is an uncoordinated (by statute) independent expenditure by Proft, so I don’t understand why Drury’s opponent is getting dragged into this lawsuit.
Secondly, Proft’s PAC has done this very same hit on several other Democrats and they haven’t gone screaming to the judicial branch with $9 million lawsuits.
* Should political attacks be based on hard facts? Heck yes they should. But since when has that ever happened? I’m in no way condoning Proft’s hit, just like I don’t condone the HDems’ multiple falsehoods, but, baby, that’s just part of life in the bigtime.
If you want to fight this, then battle it out on the proper playing field. Don’t run crying to Lady Justice.
* Man, it’s just too easy to sue somebody in this state. And, please, keep that in mind before you comment on this particular post. There’s an angry lawyer out there on a sacred Mission of Truth, and that type can be an extremely dangerous beast when provoked (and I’m not in any way comparing Rep. Drury to an animal, it’s just an expression meant to be slightly humorous, so please don’t sue me, Scott).
*** UPDATE *** From House Republican Leader Jim Durkin…
“Mr. Drury should back up a little bit and grow a thicker skin. His response gives new meaning to the term “overreaction.”
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Today’s number: 100,000
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Charles Thomas…
The deadline for normal registration to vote is midnight Tuesaday. But eligible Illinois residents will have their chance to register up until and including on Election Day.
More voter registration applications arrived Monday afternoon at the office of Cook County Clerk David Orr.
“Registration in suburban Cook is going to be significantly up over four years ago,” Orr said. “My guess is we’ll easily be more than 25,000 registrations up over four years ago.”
And city residents account for most of the 100,000 new voter registrations collected by “Every Vote Counts,” a coalition that targeted low to moderate income neighborhoods and young people.
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*** UPDATE *** From the Schneider campaign…
“This shameless ad is a perfect example of why Americans hold Washington Republicans in such low regard,” Schneider for Congress spokesperson Staci McCabe said. “Attacking Brad’s wife and family for cheap political gain is why so many Americans are disgusted by Republican’s tactics. The hypocrisy of this smear campaign is that Republican Bob Dold was in Congress, he voted to award the company referenced in the ad with a sweetheart land deal even after it was revealed that it would benefit Iran.”
From their background material…
Congressman Dold Voted to Protect Oil Companies that Violate Iran and Syrian Sanctions. On July 25, 2012, House Republicans voted against a plan to prohibit companies who conduct business with Iran or Syria in violation of U.S. sanctions from receiving drilling leases. [HR 6082, Vote #510,7/25/12]
Congressman Dold Voted to Protect Mining Companies Doing Business with Iran. On July 12, 2012, House Republicans voted against a plan to prohibit companies from receiving mineral exploration permits if they have violated the sanctions imposed against Iran, or if Iran holds an ownership interest in the company. The measure was offered Congresswoman Louise Slaughter. [HR 4402, Vote #467, 7/12/12]
Congressman Dold Voted Against Stopping American Companies from Conducting Business With Iran. On November 3, 2011, House Republicans voted against a measure “that would have stopped Americans from doing business with any person who directly or indirectly is doing business with Iran.” [HR 2930, Vote #824, 11/3/11; Washington Jewish Week, 11/4/11]
House Republicans Voted To Reward a Company That Helps Iran Mine The Fuel it Needs for its Nuclear Efforts. On October 26, 2011, House Republicans voted to allow Resolution Copper to swap land with the federal government, effectively clearing the way for development of North America’s largest copper mine. Resolution Copper is a subsidiary of Rio Tinto. RioTinto, one of the world’s largest mining companies, has partnered with Iran on a uranium mining operation in Nambia. The mine accounts for 7 percent of the global supply of uranium. Rio Tinto continued its partnership with Iran, in spite of United Nations ruling barring the country from investing in mines of the fuel. Iran owned its stake in the mine through the Iran Foreign Investment Company. [HR 1904, Vote #808, 10/26/11; The Hill, 10/26/11; The Arizona Republic, 10/26/11; Resolution Copper’s Website, accessed10/26/11; Bloomberg, 10/27/10; see also: JTA, 10/26/11]
House Republicans Voted to Protect a 20 Percent Tax Break for Companies Violating Iranian Trade Sanctions. In April 2012, House Republicans voted against a motion to recommit that would have eliminated a 20 percent income tax cut for companies that violate U.S. trade sanctions against Iran. The motion failed 179-229. [HR 9, Vote #176, 4/19/12; Washington Post, 4/22/12]
[ *** End Of Update *** ]
* From the NRCC…
“Brad Schneider has been trying to hide his family’s income because they invest in companies that are dangerous to America. We now know Brad invests in companies that send jobs to China and uranium companies that do business with Iran. It’s clear we can’t trust Brad Schneider’s judgment.” – Katie Prill, NRCC Spokeswoman
* The NRCC’s new ad…
* Script…
ANNCR: What is Brad Schneider hiding?
Schneider still won’t release all of his tax returns.
And news reports say that Schneider has abruptly changed his filing status to keep some of his family’s income secret.
Now official documents reveal Schneider’s family invested thousands in companies that outsource jobs to China.
Schneider’s family even invested in a uranium mining company that did business with Iran.
We just can’t trust Brad Schneider.
The National Republican Congressional Committee is responsible for the content of this advertising.
Oy.
Do you think people actually believe this stuff?
* Meanwhile, the NRCC is running a new spot on St. Louis TV…
Bill Enyart went to Washington and voted with Nancy Pelosi 90% of the time instead of fighting for Southern Illinois. We can’t trust Enyart when he votes to protect his first class travel and special congressional health care perks all while voting for more government spending. We need Mike Bost who will make a difference in Congress and fight for Southern Illinois families and jobs.” – Katie Prill, NRCC Spokeswoman
* The ad…
* Script…
ANNCR: Bill Enyart is part of the problem in Washington.
He’s voted with his party almost 90%.
Enyart voted to raise the debt ceiling 3 times.
To reward himself, he voted to keep first class airfare and special health care perks for Congress.
Bill Enyart, another politician wasting our tax dollars helping himself.
Mike Bost is different. He’ll fight for us in Washington. Mike Bost for jobs.
The National Republican Congressional Committee is responsible for the content of this advertising.
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Poll: Quinn over Rauner 44-40
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* A new We Ask America poll conducted for Reboot Illinois has Gov. Quinn leading Bruce Rauner by four points, with Libertarian candidate Chad Grimm scoring 6 points. Quinn’s 44-40 lead is outside the margin of error for the first time in a WAA poll and the governor appears to finally be shoring up his base, while Rauner may have some weakness developing Downstate…
Perhaps the biggest piece of good news for Quinn is the 62-14 lead he registered among respondents in the city of Chicago. That’s a 4-percentage-point bigger lead in Chicago than Quinn registered in the Sept. 2 Reboot Illinois poll. Among respondents in Chicago in the three earlier Reboot Illinois polls, Quinn led Rauner 65-18, 59-18 and 62-18.
In the Cook County suburbs, Quinn polled slightly ahead of Rauner — 44.5 percent to 43.9 percent — in the Sept. 2 survey. Quinn scored a huge increase in suburban Cook in the new poll, finishing ahead of Rauner by 27 percentage points, 58-31. […]
The new poll also is the first for Reboot Illinois in which Quinn leads among women voters. After trailing Rauner by 4, 7 and 5 percentage points, respectively, in three previous Reboot Illinois polls, Quinn finished ahead among women this time, 44-36.
While Rauner continued to lead among downstate respondents, his 47-32 lead in this poll is considerably smaller than in any of the previous Reboot Illinois polls. There was comparatively little change in the collar counties, where Rauner led 54-36 in the new poll. In the previous poll, on Sept. 2, Rauner led in the collar counties by 25 percentage points, 57-32.
Discuss.
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* From the Bruce Rauner campaign…
Bruce Rauner’s campaign today launched a new ad taking aim at Gov. Pat Quinn’s record of kids dying while in the custody of his Department of Child and Family Services.
“They were just children, our most vulnerable with their whole lives ahead – lives cut short tragically, senselessly from abuse, neglect while in the care of Pat Quinn’s administration,” the ad titled “Just Children” begins. “Incompetence or corruption? It doesn’t matter. Pat Quinn failed those who needed him most – and now he wants four more years.”
According to multiple media reports, the number of DCFS-involved children who have died due to abuse or neglect has spiked sharply under Pat Quinn – 15 in 2010, 34 in 2011 and 2012, and 27 in 2013 with five more under investigation.
Under Pat Quinn, DCFS funding has been cut by $115 million since Fiscal Year 2010. Meanwhile, Quinn’s DCFS has been repeatedly plagued by cronyism and corruption. Most famously, George E. Smith looted millions from DCFS using his relationship with then-Director Erwin McEwen. Smith allegedly used $100,000 for sports tickets. Rather than fire McEwen, Quinn allowed him to resign.
“There’s a real human cost to Pat Quinn’s cronyism and corruption,” Rauner campaign spokesperson Mike Schrimpf said. “If we had a governor who cared more about people than politics, maybe some of these kids would still be alive.”
Whew. Essentially calling the governor a “baby killer” and it’s only October 7th. I’m expecting a strong Quinn response to this. Stay tuned.
* Rate it…
*** UPDATE *** From the governor’s spokesperson…
This is a false and malicious attempt to smear the Governor.
Bruce Rauner is well aware that the Department of Children and Family Services is an agency that intervenes in emergency life and death situations to save children who are most at risk for abuse and neglect.
To imply the Governor is somehow responsible for the deaths of children in the horrific circumstances that this agency enters into while trying to save lives is despicable and a new low.
The cynical irony of Bruce Rauner’s false ad is that it’s his budget plan that would cut deny DCFS the resources necessary to fulfill its vital mission.
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“Hardball”
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Let’s revisit the Sun-Times story from below about a lawsuit alleging, among other things, that Bruce Rauner had threatened a CEO of one of his companies to prevent her from filing a suit…
Kirk alleged in the lawsuit that Rauner threatened her personally and through a LeapSource board member — a claim she made in a sworn deposition. That former LeapSource board member confirmed in a deposition that “threatening things…were said to her” and that he had been involved in some of those conversations. Rauner denied the allegations through a spokesman.
The lawsuit alleged that Rauner told Kirk in February 2001: “If you go legal on us, we’ll hurt you and your family.”
Kirk also alleged that Rauner, wary of a her possibly suing, relayed a similar threat to her a few days earlier through another board member, Thomas Gilman, a consultant and ex-top executive at Chrysler Financial.
“I will bury her,” Rauner is alleged to have told Gilman.
“I will make her radioactive,” Rauner allegedly told Gilman, according to the complaint. “She will never get another job anywhere, ever. I will bankrupt her with legal fees. I don’t know if she has a family or not, but if she does, she better think twice about this.”
* This is from Carol Marin’s NBC 5 version of the story...
In her sworn deposition Kirk alleged she was also warned by a colleague saying, “Bruce had threatened” her and would make her “radioactive.”
That colleague was Thomas Gilman, another plaintiff along with Kirk in the lawsuit, who sat on the Board of LeapSource and is a former CEO of DaimlerChrysler Financial Services Americas.
Gilman said Kirk was concerned about the behavior of GTCR and the threatening things that were said to her.
“Were you involved in any conversation where threatening things were said to Ms. Kirk?” Gilman was asked in his deposition. His answer was “yes.”
The Rauner campaign responding to questions posed by NBC 5 and the Chicago Sun-Times strenuously denied ever threatening Kirk, her family or her livelihood.
Federal District Judge Robert Broomfield later dismissed almost all of the counts of Kirk’s lawsuit saying there was no breach of fiduciary responsibility by GTCR, but the judge’s ruling did not address the alleged threats.
Judge Broomfield wrote Rauner’s GTCR: “chose to ‘play hard ball,’ adding “undoubtedly it would have been preferable to plaintiffs if defendants (GTCR) had comported themselves with an [a]spirational ideal of good corporate governance practices … that go beyond the minimal legal requirements of corporate law.”
Discuss.
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* My phone rang Sunday morning. It was a good friend of mine, but I had been out late in St. Louis the night before, so I let his call go to voicemail. We talked later in the day. He said a pollster had called his house at 10 o’clock that morning and asked to speak with the female voter. His wife took the phone. She was asked something about a gun and a woman and Bruce Rauner and she couldn’t really remember what else. Did I know what was going on?
I said I didn’t. Maybe it was the Republican Party stuff with the Libertarians? I didn’t know. I also found it very weird that a pollster was calling on a Sunday morning. That never happens. Not only that, but my friend’s wife is a “hard” Republican, and the poll was full of push questions against Bruce Rauner.
So, I filed it away and figured I’d find out what was up sooner or later.
* Last night, my friend texted me that the Sun-Times had the story which was outlined in the poll. Not long after, I asked for and obtained audio of the poll from a GOP source. Here’s the question…
CALLER: Okay. These’ll be like the last three questions. So Bruce Rauner, I’m just going to read another one, Bruce Rauner lacks the character and temperament to be governor. He won’t be a governor we can trust.
He allegedly threatened to quote bury unquote a woman CEO he hired telling her quote we’ll hurt you and your family endquote. At the same firm, Rauner let threats and violence against women occur without speaking up. When told that the male executive repeatedly threatened coworkers with a gun, physically struck a secretary, Rauner said addressing it was not a high priority, was more concerned with turning a profit than the wellbeing of his employees.
* Raw audio…
* If you listen to the full thing, you’ll hear the respondent ask the pollster a question…
PERSON: Oh, and one last thing.
CALLER: Mhm.
PERSON: Where were you calling from? I didn’t catch it in the beginning.
CALLER: We’re doing an interview down here in California.
PERSON: Oh wow, alright, cool. With what company?
CALLER: Mhm. ADG Research Group company. American Directions.
ADG is a Democratic outfit.
For the record, the Quinn campaign denies that it did the poll, but there are plenty of other Democratic organizations playing in this pond.
* And then, almost like magic, we got the Sun-Times story…
Kirk also alleged that Rauner, wary of her possibly suing, relayed a similar threat to her a few days earlier through another board member, Thomas Gilman, a consultant and ex-top executive at Chrysler Financial.
“I will bury her,” Rauner is alleged to have told Gilman. […]
Shortly before her firing, Kirk recorded a board meeting in February 2001, where discussion about the company’s precarious finances was sidetracked after she brought to the board’s attentions allegations that a LeapSource manager routinely brought a gun to work in his car, had a violent temper and had threatened to “take someone out” at work, according to a transcript in the court record.
Kirk also alleged the same employee, Matt Appel, wound up striking his secretary, causing her to quit, and posed “some big risks” to GTCR “from a litigation perspective,” the transcript shows. […]
Rauner expressed sympathy for the former secretary but also suggested LeapSource’s precarious financial condition trumped concerns about the manager and any liability related to the secretary being struck.
“In a normal operating company, there would be certainly channels on how to deal with that and no company and no civil person would want to have anything to do with an employee like that,” Rauner said at one point, according to the transcript. “The flip side is, we as a board … are you know, debating issues of whether LeapSource has its lights on on Monday. I mean, and so, you know, whether the secretary sues or not, you know, pales by comparison.”
There’s a whole lot more, so go read the whole thing.
* But the Rauner campaign pushed back hard against the story last night…
THE LEAPSOURCE LITIGATION WAS WITHOUT MERIT AND SUMMARILY DISMISSED BY A JUDGE
The Lawsuit Was Dismissed By A Federal Judge On Summary Judgment. “IT IS ORDERED that the motion for summary judgment by defendants GTCR Golder Rauner, L.L.C., GTCR Fund VI, L.P., GTCR VI Executive Fund, L.P., GTCR Associates VI, Joseph P. Nolan, Bruce V. Rauner, Daniel David A. Donnini and Philip A. Canfield (doc. 347) is GRANTED in part and DENIED in part, as hereinafter ordered.” (Order on Motion for Summary Judgment, Diane Mann, as Trustee for the Estate of LeapSource, Inc., et al., v. GTCR Golder Rauner, L.L.C. et al., U.S. District Court for Arizona, No. CIV-02-2099-PHX-RCB, 3/30/07, p. 73)
IN HER SWORN DEPOSITION, CHRISTINE KIRK DIRECTLY CONTRADICTS HER CLAIM THAT RAUNER THREATENED HER
Christine Kirk’s Complaint Alleges That, After She Was Fired As Leapsource’s CEO, Rauner Spoke To Her On The Phone And Said “If You Go Legal On Us…We’ll Hurt You And Your Family.” “During the board meeting, Rauner told Kirk to call him the next day to discuss her severance. When Rauner spoke with Kirk the next day, he threatened Kirk in a booming voice, ‘If you go legal on us [by filing a shareholder suit], we’ll hurt you and your family.’” (Plaintiff’s Fourth Amended Complaint, Diane Mann, as Trustee for the Estate of LeapSource, Inc., et al., v. GTCR Golder Rauner, L.L.C. et al., U.S. District Court for Arizona, No. CIV-02-2099-PHX-RCB, 6/14/04, p. 68)
In Her Sworn Deposition, Kirk Says The Phone Call She Referenced In Her Complaint Was “Entirely Professional.” ATTORNEY: “What did you say to Mr. Rauner and what did he say to you during that call?” CHRISTINE KIRK: “That — I said, ‘Bruce, you said to call you about my severance,’ and he said that I needed to work with Joe, that I had loans outstanding, and I needed to work with Joe on resolving those loans and the severance.” ATTORNEY: “Did he say anything else during that call?” KIRK: “Not that I recall.” ATTORNEY: “What did you say to him?” KIRK: “I told him I would do that.” ATTORNEY: “Was that call entirely professional?” … KIRK: “Yes, I believe so.” (Christine Kirk Deposition, 6/8/05, p. 999-1000)
CHRISTINE KIRK DID NOT COLLECT A PENNY IN DAMAGES
GTCR’s Settlement Agreement Explicitly States That The Settlement Payment Was For The Plaintiffs’ Out-Of-Pocket Legal Expenses – The Plaintiffs Did Not Collect A Single Penny In Damages. “The Defendants will pay $511,000.00 to settle the GTCR Litigation; the Settlement Agreement expressly provides that the GTCR/K&E Settlement Payment is being made by GTCR and K&E for the express purpose of reimbursing certain out-of-pocket expenses incurred by the Plaintiffs and by their counsel.” (Motion of Trustee and Plaintiffs to Approve Settlement with GTCR Defendants, Kirkland & Ellis, and Makings Defendants, In re: Leapsource Inc, U.S. Bankruptcy Court – District of Arizona, Case No. B 01-09020 PHX JMM, 8/12/08, p. 11)
WHEN ALLEGATIONS OF LEAPSOURCE EMPLOYEE MISCONDUCT SURFACED, RAUNER IMMEDIATELY ORDERED AN INVESTIGATION
During The February 27, 2001 LeapSource Board Meeting, Christine Kirk Accused An Employee Of Hitting His Secretary. CHRISTINE KIRK: “That’s right Dan that’s what I said. I think then I need to talk to Mike about, you know, the information we found and, you know, we get…what the lawyer just told us is that we have some big risks from a litigation perspective. The guy is at this point physically threatening people. We’re not talking about verbally assaulting them. I’m talking about he’s threatening to physically assault people.” RAUNER: “Did he hit anybody?” KIRK: “No. but he told people he’s a gun in his car, he’s told people he wants to take people out. Um he physically abused his secretary.” RAUNER: “He physically abused…what did he do?” KIRK: “He hit her.” RAUNER: “Oh, so he did hit somebody.” KIRK: “I mean…there’s…” RAUNER: “Is she still at the company?” KIRK: “No, she walked out.” (LeapSource Board Meeting, 2/27/01, p. 9)
Rauner Directed Kirk To Tell The Company’s New CEO, And That An Investigation Be Carried Out. DAN YIH: “Then aren’t we saying that Mike should review this?” KIRK: “Yeah, and that’s why I said I will go over it with Mike.” RAUNER: “That’s fair, I think it’s good….would be good if you did talk to Mike about it.” (LeapSource Board Meeting, 2/27/01, p. 9-10)
Rauner Clearly Denounced The Alleged Assault, Saying “No Company And No Civil Person Would Want To Have Anything To Do With That.” RAUNER: “Um…Chris in a normal operating company there would be certainly channels on how to deal with that and no company and no civil person would want to have anything to do with an employee like that.” (LeapSource Board Meeting, 2/27/01, p. 10)
The complete deposition referenced above is here.
* While many of the allegations in the Sun-Times story appear to be bogus or directly contradicted by other evidence, particularly since they were tossed by a judge, if Rauner loses the spin war on this thing he may very well be toast. Done. Put a fork in him. Ergo, the vigorous pushback.
* But there is one quote that stuck out for me. From a 2005 deposition taken from Bruce Rauner, with emphasis added for obvious reasons…
“That hard thing is getting customers; the hard thing is cutting expenses; the hard thing is laying people off. But that’s what good companies do when times are tough, and she just would not do it,” said Rauner, who sat on LeapSource’s board.
Hey, that really is the difficult truth about business, but people aren’t gonna want to hear it.
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