Mayor Daley accused Gov. Quinn today of a political double-cross regarding the governor’s proposal to cut $300 million from the share of state income=tax revenues earmarked for local government.
Daley said that, just weeks before the Feb. 2 primary, Quinn went before the Metropolitan Mayors Caucus and pledged that the cities’ share would remain at 10 percent. […]
“Right before the election, he came before the Metropolitan Mayors Caucus, and he told the mayors it would not be cut,” Daley said. “This is a serious financial crisis, but it didn’t start after the primary. This is way before the primary. Then, coming before the Metropolitan Mayors Caucus and saying, ‘I am with you. I support you.’ Nothing has has changed from prior to the primary to after the primary.”
Oak Park Village President David Pope, who was at the gun news conference at Chicago Police Headquarters, said he also recalled Quinn saying he wouldn’t cut income tax revenues distributed to cities and villages.
“The state needs to take a very serious look at the expense side of its ledger,” Pope said, adding that his village has laid off 15 percent of its workers in the past two years.
“This is basically a tax shift, and what it will do is force the localities to increase taxes, because we’ve already taken the fat out of the cost of delivering services at the local level,” Pope said.
* This has to be one of the stranger press releases I’ve ever received from the US Attorney’s office. Apparently, they busted Bill Dugan on a misdemeanor charge for soliciting a $900 animal feeder for his Maryland buffalo farm from an employer. Dugan, you probably know, was president of Local 150 of the Operating Engineers for many years.
Dugan’s farm was raided a couple of years ago by the feds, who carted off a bunch of documents. He retired soon after. Here’s the announcement, made by three bigtime crime fighters, the US Attorney, the top dog in Chicago’s FBI and the “Special Agent-in-Charge of the US Department of Labor Office of Inspector General in Chicago.” OK, two bigtime crime fighters and one other guy…
The retired leader of a regional labor union local was charged today with violating federal labor law by allegedly demanding and accepting livestock feeders from a company that employed the union local’s workers for his buffalo farm in Maryland. The defendant, William E. Dugan, was charged in a single-count criminal information filed in U.S. District Court, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Dugan, 76, of Hancock, Md., and formerly of Mt. Prospect, was president and business manager of the International Union of Operating Engineers Local 150, headquartered in Countryside. The 23,000-member local represents workers in construction and a variety of other industries in Indiana, Illinois and Iowa.
Dugan will be ordered to appear for arraignment on the misdemeanor charge, which is violation of the U.S. Labor-Management Relations Act, at a later date in U.S. District Court.
According to the charges, in April 2005, Dugan demanded and accepted concrete buffalo feeders valued at more than $900 from Company A, whose workers were represented by Local 150.
The government is being represented by Assistant U.S. Attorney Patrick King. Other Labor Department branches that participated in the investigation are the Employee Benefits Security Administration and the Office of Labor Management Standards.
The labor law violation carries a maximum penalty of a year in prison and a $100,000 fine. If convicted, the Court would determine a reasonable sentence to be imposed under the advisory United States Sentencing Guidelines.
Dugan was a wealthy man, so it was stupid and arrogant to be doing something like “buffaloing” an employer into buying some cheap concrete feeders. But that this long federal investigation has resulted in such a minor charge makes one wonder why they bothered.
In a statement, Joseph Duffy, the attorney for William Dugan, the retired president and business manager of Local 150 of the International Union of Operating Engineers, said Mr. Dugan has “acknowledged receiving a thing of value from a contractor worth less than $1,000, specifically concrete piping,” and will plead to misdemeanor charges in the matter as part of a deal with federal prosecutors. […]
Sources close to the matter said further charges are likely in the case. But the one charge alone of violating federal labor law carries a potential penalty of up to a year in prison and a $100,000 fine.
So, he agrees to take the misdemeanor but more charges may be likely?
* Ameren’s request for a $130 million Illinois rate increase has drawn all sorts of criticism, especially after the company posted its 2009 profits. Despite the recession, Ameren finished the year with profits of $612 million - just $3 million shy of 2008…
The $612 million profit for 2009 compared to $615 million in 2008.
[Ameren’s Illinois earnings] from these utilities jumped 150 percent during the past year, from $51 million in 2008 to $127 million in 2009. That primarily is due to a rate increase that took effect in October 2008, along with lower operations and maintenance expenses. […]
The question for the [Illinois Commerce Commission] is how much profit in Illinois is too much? [Emphasis added]
An ICC administrative law judge has answered that question. He’s calling on Ameren to scale back the utility’s $130 million request to $56 million…
The 317-page proposal… suggests Ameren actually lower natural gas delivery rates for two of its three utilities. Electricity delivery rates would go up for all three.
Now, the Illinois Commerce Commission will review Administrative Law Judge John D. Albers’ report and make a final decision by the end of April. Only then would any rate changes kick in.
Even with Albers’ proposed reduction, Ameren still likely stands to increase its profits. AARP responds…
The Administrative Law Judge’s finding that Ameren should lower its rate hike request to $56 million is further proof that Ameren’s $130 million rate request was excessive. But Ameren’s request for a rate increase, even at $56 million, is still wrong.
State Rep. John Bradley, a Marion Democrat, quickly came out against Ameren’s rate increase request…
“Communities throughout Southern Illinois are facing the highest unemployment rates in recent history,” the Marion Democrat said. “Those workers who have managed to keep their jobs are facing cutbacks to their hours and benefits. For Ameren to ask these people to fund an increase so that their executives can see another year of growing profits is frankly appalling.”
Bradley was very vocal against Ameren’s request in 2008. He even took tour buses of people in and around his district to Springfield to attend commerce commission hearings.
* Meanwhile, the recent revelation that ComEd intends to ask the state for another rate increase has consumer advocates screaming at utility companies. Exactly how much ComEd will ask for is still unknown, but that hasn’t stopped the Citizens Utility Board and other consumer advocates from screaming at the state’s largest electricity provider.
“It’s terrible timing with the economy the way it is,” said Jim Chilsen, spokesman for CUB, a consumer advocacy group founded by the Illinois General Assembly in 1983.
Illinois consumers will also see electrical bills rise this spring as a result of a 2009 law designed to help people struggling financially to make utility payments.
Payments for lower-income families are based on a sliding scale that’s related to their income, one of several provisions in the 2009 law.
CUB is using an ongoing review of the last ComEd rate increase as a reason to hold off this request…
“The ink on the last rate hike isn’t even dry,” Chilsen said, adding, “and now we get disturbing news that ComEd’s filing with the Illinois Commerce Commission to ask for more.” ComEd said it understands the impact a potential rate increase may have on customers. “That’s why last year, instead of filing for a rate increase, we tightened our belts and reduced our budgets by approximately $200 million,” ComEd said in a prepared statement.
* Related…
* Shenanigans On The Senate Environment Committee?
*** UPDATE *** Bill Brady is doing an eight-city fly-around today and trying to focus on the budget and the economy…
Republican nominee for Illinois governor Bill Brady says he will try to appeal to voters on fiscal issues when they don’t share his conservative viewpoint on social issues.
Brady says he’s heard from people who disagree with his opposition to abortion who say they’ll support him because he has a state budget plan.
OK, well, let’s see that plan in all its glory.
After the beating he took in the Statehouse press room last week, Brady is avoiding Springfield on today’s fly-around.
[ *** End of Update *** ]
* Bill Brady stuck closely to the script during a recent appearance on ABC7’s morning show. He kept his focus on the budget deficit and the economy, even when the hosts tried to bait him on Pat Quinn’s claim that he’s an extremist right-winger.
“We don’t have the luxury of focusing on social issues in this election,” Brady said.
The full ABC7 interview is here, but I’ve clipped the most pertinent section for you. Watch it…
For the Republicans and their nominee, this ought to be a golden moment. The next governor’s challenges could not be more obvious or pronounced: Illinois is an ethical cesspool and flat broke. Voters don’t need to be reminded which party has been running things. All they want is a candidate to offer them a way out.
So where’s Brady? Off in the weeds — introducing legislation to ban civil unions and to allow mass euthanization of dogs; spouting off about teaching creationism in schools; shooting himself in the foot at a news conference meant to show that he’s tough on felons. His public statements about how to balance the state budget, meanwhile, make it clear he has no real plan to do that.
This is the guy who’s supposed to save Illinois? […]
Mr. Brady, you are at grave risk of making Quinn look like the more competent candidate in this race.
If you want to be governor, you’ll have to show that you know what’s wrong with Illinois, and that you know how to fix it.
“Everybody is focused on fiscal and economically responsible issues. Those are the issues that people care about, jobs and fiscal issues, so there is no real right or left in those, just right or wrong,” said Pat Brady, Illinois Republican chairman.
Yes, the economy and the budget are Number One, but he won’t be able to completely avoid answering social questions forever.
“Each party has now nominated the candidate the other party most wanted to run against,” said David Yepsen, director of the Paul Simon Public Policy Institute at Southern Illinois University at Carbondale.
Of the major candidates, that’s certainly right. This campaign is gonna be a race to the bottom. It’ll be a question of who is the scariest and most inept. There’s a hint of that in the Tribune story…
Brady also has opposed some government transparency efforts, including requiring campaign contributors to list their occupations, and he said adopting detailed federal-style statements of economic interest for public officials would be “a little bit of an overreaction.”
His business interests will be examined with a fine-tooth comb. Bet on it.
* Related…
* GOP candidate says he will focus on job creation
* Numbers tell the story in Brady’s primary victory: Three other races in February’s primary saw the nominee win by a slimmer vote margin than in the GOP [gubernatorial] race. But less than 450 total votes were cast in each of those races.
The Quinn administration plans a massive review of more than 250 government contracts made under former Gov. Rod Blagojevich to see if they need to be reduced or rebid.
The plan, which Gov. Quinn will announce Wednesday in his budget address, is to examine all contracts of more than $1 million each issued before January 2009.
This includes a variety of goods and services purchased by the state, from health care for state employees to food for prisoners, according to David Vaught, budget director for the governor’s Office of Management and Budget.
This should’ve been done right after Quinn took office last year. Better late than never, I suppose.
* Quinn will need to do a lot more than that to justify some of his proposed budget cuts, including a $32 million reduction to the Illinois State Police. Plus…
Gov. Pat Quinn’s plan to fill the biggest deficit in Illinois history includes cuts so severe that 17,000 teachers could lose their jobs, thousands of poor families would get less help with child care and fewer state troopers would patrol the roads, a top Quinn aide said Saturday. […]
General education spending would fall by about $1.4 billion, he said, an 11 percent decrease. The “foundation level” of state support for each child would fall from $6,119 now to about $5,600 next year. […]
Quinn also will propose $150 million in cuts to human services, Vaught said. That means, among other things, less money for local organizations that provide child-care services for the working poor.
Vaught estimated 6,000 children would be affected by the reduced hours and tighter eligibility standards likely to result from the cutbacks. Many of their parents would suffer an economic blow, he said.
“If you take away their child care, you’re also taking away their job because they can’t work,” Vaught said.
Vaught claims that state employee headcount fell by 1,000 last year alone, which is something the governor is sure to highlight in his budget address on Wednesday. Quinn will also outline cuts in aid to local governments…
David Vaught, Quinn’s budget director, said [Friday] that municipalities across Illinois must “share the pain” by giving up a portion of income tax revenues the state typically shares. Instead of getting 10 percent, which amounts to about $1 billion a year, municipalities would receive 7 percent under Quinn’s plan. That’s about a $300 million cut.
Vaught also said the Quinn administration does not plan to make the full $4.1 billion employee pension payment this year because the governor is confident proposed reforms will pass the General Assembly that will ultimately save the state money. Instead, the state will pay $3.8 billion, $300 million less than required.
According to the AP, Quinn will propose borrowing billions to pay off overdue bills. The cuts and borrowing will still leave a $5 billion hole to fill with a tax hike.
* Keep in mind that it’ll be tough for Sen. Bill Brady to respond to the magnitude of these cuts because he has already proposed a ten percent across the board reduction to everything - including federal funds. That 10 percent cut has already been criticized by his GOP running mate, and now at least one House Republican candidate backed by GOP leadership has come out in opposition…
[101st Illinois House District candidate Adam Brown] said he disagrees with the spending plan proposed by state Sen. Bill Brady of Bloomington, the presumptive Republican candidate for governor. Brady proposes a 10 percent across-the-board cut to all state agencies.
“I don’t think 10 percent across the board is going to be effective,” Brown said. “I think we’ve got to look through the budget line item by line item and determine where our priorities are.”
* Related…
* State Senator Jones Advice to Schools: Plan to Cut Teachers
* Local counties feel state budget’s crunch: The state owes Union County about $300,000 and another $70,000 of back pay for money the county has paid the state attorney’s office….Franklin County is owed nearly $640,000 with the salary reimbursement at the center totaling almost $500,000.
* Illinois budget woes leaves circuit clerks with zero stipend
* Possible tax hike doesn’t worry product expo vendors
* My syndicated newspaper column this week is about a possible new funding source for capital projects: Slots at tracks…
The Statehouse is buzzing yet again with talk of a new gaming plan. This time, the players say, they have their acts together. Really.
I’m always pretty skeptical of these big legislative pushes. Expanding gaming is one of the most difficult things to do. A big reason is that there’s so much money involved with gaming that people get too greedy. Eventually, the bill suffocates under its own weight. Too many goodies are added to the Christmas tree.
The only time this ever works is when all the legislative leaders and the governor are pulling together. That’s how gaming was expanded under Gov. George Ryan, and that’s how video poker was legalized last year under Gov. Pat Quinn. Everybody at the top, Democrat and Republican, worked together to get it done.
In video poker’s case, it was the Republicans who broached the idea. The Democratic majority was looking around for ways to fund a massive public works proposal, and when the Republicans agreed to keep the fee hikes to a minimum by using video poker, the deal was set.
The latest action started when state Rep. Will Burns (D-Chicago) introduced a bill to put slot machines at horse racing tracks.
The idea would be to use the money for capital projects. The law legalizing video poker in taverns, truck stops and fraternal organizations has come under increasingly heated attack by editorial boards while several local governments are opting out of the law.
The state’s checkbook is empty, so using the state’s account to borrow money is difficult, to say the least. The Illinois Gaming Board is taking its sweet time in preparing rules and regulations for the placement of the slots. Chicago Mayor Richard Daley also indicated recently he wasn’t thrilled with the idea of legalizing the machines for his city.
Even if video poker works out OK, there’s always a hunger in Springfield for more capital projects. This state’s infrastructure is so out of whack that we probably could spend $100 billion and not get everything working right.
Anyway, the latest gaming push really kicked into gear when House Speaker Michael Madigan (D-Chicago) suggested that language from a bill he introduced awhile back be used instead of Burns’. Madigan’s bill would raise more money than Burns’ bill would, so Madigan’s interest got everyone pretty excited, and negotiations began in earnest.
The biggest initial hurdle when dealing with the racetracks is getting the track owners together. They don’t like each other much and usually will bicker among themselves ad infinitum. Then, negotiators have to convince the people who own and train the horses to climb on board, and that’s never easy, either.
From what I can tell, negotiations apparently have gone far better this time around, and the owners and the horsemen reportedly are getting close to an agreement. The sputtering economy and the fact that Illinois is losing quality horses to other states that pay out higher purses apparently is playing a major role in spurring the negotiators on.
Of course, the state’s riverboat casinos then could want their own piece of the pie. That could wind up making the bill too heavy. Whether anything will ever come of this is anybody’s guess at the moment, as usual.
The Senate Democrats don’t seem too excited yet because they’ve seen Madigan kill off gaming bills countless times. Madigan did reportedly have a meeting with proponents a few weeks ago in Chicago, and the House Republicans are participating in the talks. Because Madigan often cuts out the Republicans, that’s a very positive sign.
One difference this time around could be the bill’s sponsor. Burns dealt with numerous complicated negotiations back when he was a high-level member of the Senate Democratic staff, including a massive gaming bill. His fresh approach certainly is drawing a lot of Statehouse respect.
Also, Quinn said in December that the state ought to take a look at slots at tracks. That’s heartening to proponents.
The new proposal would inject about $300 million almost immediately into the capital projects program. And that’s driving a whole lot of interest.
But then there’s the final hurdle: public opinion during an election year. Will that much gaming expansion in such a short period of time be rejected by the public - particularly when the rest of the state’s budget is such a disaster?
The family of Democratic U.S. Senate nominee Alexi Giannoulias stands to collect more than $10 million in federal tax refunds even if its Broadway Bank fails, which Mr. Giannoulias said this week is likely.
A $75-million loss at the struggling lender last year generated tax benefits potentially worth between $12 million and $15 million to Mr. Giannoulias, his two brothers and his mother. As the sole owners of a subchapter S corporation that controls $1.2-billion-asset Broadway, they pay the taxes on the bank’s income and reap tax deductions on its losses. […]
Asked whether he would advise his family to put the tax refunds back into the bank to help recapitalize it, Mr. Giannoulias said, “We’ll do everything we can to keep the bank going. . . .You’ll have to ask management of the bank what the best course of action is.”
The campaign says the family is filing for a return of taxes overpaid last year on capital gains in anticipation of profits that didn’t materialize. The campaign claims that the idea all along has been to use the cash to recapitalize the bank, not to enrich themselves. From a campaign website…
Like the millions of Americans who overpay their income taxes each year, the family is owed tax refunds. They are actively pursuing a refund of this money as a way to help save the bank. They would not profit in any way if the bank fails. Alexi has said repeatedly that he will do whatever he can to help save the bank, which includes using any tax refund he might receive on his 3.6% share to recapitalize the bank. If the bank does indeed fail, the Giannoulias family, who are sole shareholders, will bear the full brunt of the loss.
* Meanwhile, the Daily Herald editorial page asks some pertinent questions about how Republican congressional nominee Joe Walsh can afford to rent this $860,000 Winnetka house on what Walsh claims is an annual income of just $40,000…
The editorial also looks at some claims Walsh has made about the foreclosure on his Evanston condo and his subsequent eviction…
If Congressional candidate Joe Walsh was so hard up for money that he couldn’t fulfill his obligation on a $300,000 mortgage, why was he able to afford to rent an $860,000 colonial in Winnetka with an in-ground pool?
If he needed more room for his large family, why didn’t he look to rent a house of the same size but for half the price in, say, Wauconda or Lake Zurich? Is it possible he could have managed his mortgage payments if he had done that?
Walsh said that people have to understand the circumstances that led to the foreclosure on his Evanston condominium. He was only making $40,000, he said, and he couldn’t afford to keep paying for two homes.
Take a look at the picture above. Does that look like the house you would rent if your family was making $40,000 a year? Especially if you also owed money on another residence?
And the Northwest Herald notes another item in its latest story…
Walsh’s problems [include] a lawsuit filed by his former campaign manager for about $20,000 in unpaid services
Morton Grove-based Patrickson-Hirsch Associates filed a lawsuit today with the Circuit Court of Cook County alleging Walsh did not pay the company $20,000 for the campaign management services provided by Keith Liscio, a principal with the company who also has had a 15-year business relationship with Walsh.
According to the lawsuit, Patrickson-Hirsch provided campaign management services that required $5,000 payments bimonthly, beginning Sept. 1. The lawsuit claims that each of the first three such bills were paid past their due dates. The lawsuit then states that Walsh failed to pay any of the subsequent four installments, beginning with the Oct. 15 bill. On Dec. 4, the lawsuit states, Patrickson-Hirsh terminated its management of Walsh’s campaign, still owed $20,000.
Jim Thacker, a spokesperson for the Walsh campaign, said because of this pending litigation, Walsh will not comment on the issue. Thacker added that he has been working on campaigns for over 20 years and has “never seen anything like” having a lawsuit filed against a candidate so close to a primary election.
Two unions representing bedside nurses are fighting a territorial battle after the recent formation of National Nurses United, a “super union” of 150,000 RNs from nurse groups across the country.
At $28.64 an hour, the top wage rate for Chicago Transit Authority bus drivers ranks third-highest among U.S. transit agencies, according to an analysis conducted for the Tribune.
* CTA gets $1.5M federal grant for electrified vehicle stalls
* Chicago taxpayers on hook for 444 percent more in government pensions than decade ago, report says
The watchdog Civic Federation said today that the funding deficit for the 10 largest Chicago-area public pension funds soared from $3.4 billion in 1998 to $18.5 billion in 2008, the last year for which figures are available.
Daley’s administration was not aware of the allegations, first reported by the Chicago Sun-Times, until Wednesday, when they were brought to the attention of Chief of Staff Raymond Orozco, Heard said.
Chicago-area police departments and prosecutor’s offices often follow different policies for when and how fast those kits are submitted to the Illinois State Police crime lab for testing. They may not send the kit at all, depending on whether the prosecutor charges a suspect. Or if the victim recants or decides not to press charges, or the accused says sex was consensual.
As the Roseland resident and 12 others tied their knots, Chicago’s only public all-male, all-African-American high school fulfilled its mission: 100 percent of its first senior class had been accepted to four-year colleges.
Mayor Richard Daley and city schools chief Ron Huberman surprised students at the all-school assembly Friday morning with congratulations, and school leaders announced that as a reward, prom would be free.
* Towns urge residents to help capture new funds by filling out census
The U.S. Department of Housing and Urban Development uses census data to select low- and moderate-income areas in towns eligible for Community Development Block Grants. Palatine received $408,622 from CDBGs in 2008, with revenues going to adult education and job training, programs for the homeless, and water main improvements.
Kane County Board members would be forbidden from being employed by the county for one year after leaving office or serving on paid commissions while in office, under a proposed ethics ordinance.
The measure also would place limits on campaign contributions of $1,000 per year from contractors, unions, lobbyists, vendors or their affiliated political action committees that have sought contracts with the county.
* Zorn: Name-change idea doesn’t play in, oh, you know where
There are at least two reasons why Peoria Mayor Jim Ardis has rejected the idea of changing the name of his downstate town to Google in order to win the affections of the Mountain View, Calif., computing company.
* Champaign council discusses costs of development
The study found that only high-priced, single-family detached homes in the $400,000 to $600,000 range and downtown apartments generated income surpluses, primarily due to their higher taxable values. Other types of residential property are net losers, when the cost of infrastructure for those developments is considered.
* State probes Belleville’s wheel tax meeting; did it violate open meetings law?
* O’Fallon eyes more cutbacks; business still slow in city
* Unless my usual Friday afternoon nap lasts too long, I’ll be at Bar None tonight for Tom Irwin and His Hayburners. This is a “happy hour” show which starts at 7 o’clock. Check it out if you can. The Hayburners are musicians from the New Goat Ensemble, the Spoonbenders and NIL8 - all legendary Springfield-area bands.
* This song has been in my head ever since I put up that Joe Walsh post earlier today…
Well he’s tellin’ us this
And he’s tellin’ us that
Changes it every day
Says it doesn’t matter
Quinn for Illinois Statement on GOP Gubernatorial Nominee Bill Brady
The Republican nominee is from the extreme right wing of the party and far from the mainstream of Illinois voters. In his legislative career, Senator Bill Brady has voted against the Family Medical Leave Act, equal pay for men and women, and raising the minimum wage. He has also proposed repealing anti-discrimination laws, would ban all abortions — even for victims of rape and incest — and even voted against a bill funding mammograms and pap tests.
These and other extreme positions reflect Mr. Brady’s misguided priorities, especially at a time when we need to rebuild our economy and prepare our workers for the jobs of the future. He may represent the extreme fringe of the right-wing, but he certainly does not represent the people of Illinois.
*** UPDATE 1 *** Brady got some rather pointed advice this afternoon from the president of the IMA: Move to the suburbs…
Mr. Brady needs to focus on issue like taxes — Mr. Quinn is proposing a big hike in the state income tax — and needs to “buy a house in the western suburbs and learn the culture of metropolitan Chicago,” said Greg Baise, president of the Illinois Manufacturers’ Assn.
Mr. Brady must learn that local property taxes are high in part because a disproportionate share of state education aid goes to other portions of the state, and he needs to understand that local motorists need alternatives to clogged highways and gridlock, Mr. Baise said.
Literally living here for a while “would give him a better feel for what’s on in the mind of people who haven’t voted Republican in the last few election cycles but might.”
*** UPDATE 2 *** The Quinn people are apparently using a big-time jobs announcement to help drown out the official Brady win. That’s the only reason I can figure for dropping something this juicy on a Friday afternoon. From a press release…
Governor Pat Quinn US House Transportation and Infrastructure Chairman Jim Oberstar (D-MN) and Congressman Dan Lipinski (D-IL) to highlight federal funding for the Chicago Region Environmental and Transportation Efficiency (CREATE) Program’s Englewood Flyover in Chicago. The project received $133 million under the American Recovery and Reinvestment Act (ARRA) High-Speed Intercity Passenger Rail Program to build a rail flyover in Chicago’s Englewood neighborhood that will significantly reduce rail congestion.
The project will create nearly 1,500 Illinois jobs.
A former adviser to ousted Gov. Rod Blagojevich has withdrawn his application to be the state’s Democratic candidate for lieutenant governor.
Bob Arya withdrew his application Thursday. In a letter to Democratic party officials, he says he’s throwing his support behind State Rep. Arthur Turner.
Arya had no chance at all, and supporting Turner means zip to anyone other than Arya. This LG search is really getting outta hand.
In a flip-flop from a month ago when he questioned the need of the Illinois lieutenant governor’s post, state Sen. Dave Koehler submitted his application for the job Thursday.
Koehler, D-Peoria, who is completing his first, four-year term, said he was encouraged by colleagues to apply, but that he does not plan to campaign or lobby for the spot. Another factor in his last-minute decision is his belief that someone from downstate should provide “geographic balance” to the statewide Democratic ticket weighted with Chicago-area candidates.
* From a press release…
Raja (RAH-jah) Krishnamoorthi (krish-nah-MOOR-thee) today submitted his application to the Illinois Democratic State Central Committee to be considered as the party’s Lieutenant Governor nominee.
“I am a Democrat because the Democratic Party has never settled for the status quo,” Krishnamoorthi wrote in his application. “The Democratic Party has always believed that government can be a force for good and that no one should be left behind.”
Krishnamoorthi emphasized his unique appeal as a Lieutenant Governor nominee with a strong electoral performance in the 2010 Democratic primary for Comptroller in the two key battlegrounds for the November general election: the Chicago suburbs and Downstate.
Krishnamoorthi, who garnered roughly 384,000 votes statewide but lost the Democratic nomination for Comptroller by less than 1% of the votes cast, won 22 out of the 30 Cook County suburban townships with a 52-41% margin of victory.
He swept all of the Chicago collar counties (DuPage, Lake, Will, Kane, Kendall, McHenry) by a total of 60-33%.
The Democratic Party hasn’t updated its website yet (12:40 pm), so Raja’s application isn’t available. But you might want to scroll through it anyway to see if there’s anything interesting.
State Sen. Bill Brady (R-Bloomington) is the Republican nominee for governor.
Brady ended up topping state Sen. Kirk Dillard (R-Hinsdale) by 193 votes, according to final results of the Feb. 2 primary certified this morning by the Illinois Board of Elections.
Dillard has scheduled a news conference for 1:30 p.m. at which he is expected to concede the race to Brady.
Brady has scheduled a news conference for an hour after Dillard’s.
Brady ended up with 155,527 votes, to 155,334 for Dillard, according to the final, official count.
Earlier, unofficial totals had Brady ahead by 250 votes.
He is also planning to greet voters in downtown Chicago at 5:30 p.m. Friday evening.
On Monday, Brady has scheduled an eight-stop statewide fly-around to formally kick-off his general election campaign. Included are stops in the Quad-Cities and Marion.
He will wind up the day in Bloomington, at the same hotel where he and his supporters watched election returns on Feb. 2.
* 11:38 am - The Democratic Governor’s Association is already out with a Welcome Wagon press release…
Will Brady’s Frantic “Moderate Makeover” Now Come to an End?
Washington, D.C. – With the Illinois State Board of Elections certifying Bill Brady’s victory in the February Republican primary today, will his frantic attempts to whitewash his record finally come to an end?
While Illinois voters have been waiting to find out who won the GOP nod, Brady has been using the time to quietly scour his legislative record and purge it of some of his most bizarre proposals. First, Brady removed his name from legislation he sponsored that would allow the mass killing of cats and dogs in gas chambers. Then Brady removed himself as the sponsor of a bill that would allow some employers to discriminate on the basis of religion, sexual orientation or gender identity. For observers who’ve relished the Brady whitewash, that might not be all – Brady has countless other outside-the-mainstream positions he can reverse, such as his opposition to abortion even in the case of rape, incest and the health of the mother.
“I understand why Bill Brady wants to run from his right-wing record,” said Nathan Daschle, executive director of the Democratic Governors Association. “Mass animal gassing and denying human rights aren’t exactly high on the list of voter concerns right now. Unfortunately for Brady, no one in Illinois knew who he was before they heard about his ludicrous proposals.”
Daschle added, “Maybe now that he feels he’s moderated his position on mass animal euthanasia, Brady will feel free to join the debate on the issues voters most care about: jobs, growing the middle class and investing in Illinois’ future.”
* 12:06 pm - I shoulda mentioned this earlier, but several people close to Dillard say he will definitely concede today. Not a surprise, but thought you should know.
* 12:57 pm - The county-by-county results are now posted at the State Board of Elections’ website. Keep this on the down-low, but I’m hearing the SBE is unveiling a new site soon.
Gov. Pat Quinn says there’s a “Grand Canyon” of difference between him and Republican Bill Brady. […]
The Democratic governor says he’s looking forward to a good contest with Brady before the November election. He says he hopes the two meet in lots of debates around the state.
In a statement issued by Dillard’s campaign prior to a Chicago news conference, the Hinsdale lawmaker said “it was a “close” race but that he “will help Sen. Brady in any way I can to ensure the Republican Party wins back the governor’s office in November.”
* 1:50 pm - From a press release…
State Senator Kirk Dillard today threw his support behind State Senator Bill Brady in the race for Governor, saying it was “close,” but that Brady had won the Illinois Republican Primary. “I will help Senator Brady in any way I can to ensure the Republican Party wins back the Governor’s office in November,” Dillard said.
Dillard had waited until the Illinois State Board of Elections had reported the final totals in the February 2 Primary election had been counted before conceding because of the narrow margin of Brady’s lead. “It was a hard-fought race, and it was close: less than .0002 of a percent,” said Dillard. “But it is now clear to me that my friend and colleague Bill Brady has won the Illinois Republican Primary for Governor.”
Dillard went on to stress why he will aggressively campaign on Brady’s behalf. “As I’ve said countless times during the campaign, Illinois is a state in crisis. Pat Quinn cannot lead, and shows no urgency in putting people back to work.”
The State Senator from Hinsdale also thanked former Governor Jim Edgar for his support and the hundreds of volunteers and thousands of supporters who backed his campaign during these last seven months. “I call on my supporters and the supporters of the other Republican candidates to join me in supporting Senator Bill Brady,” Dillard said.
Dillard also said he would continue to work hard as a state senator for the people of his district and all of Illinois. “I will continue to fight for the Republican principles of Abraham Lincoln and Ronald Reagan. I will continue to fight for a balanced budget and new jobs. And I will continue to fight for a state government that works for the people, not the politicians.”
* 2:30 pm - From a press release…
STATEMENT FROM RNC CHAIRMAN MICHAEL STEELE ON ILLINOIS GOP GUBERNATORIAL PRIMARY
WASHINGTON – Republican National Committee (RNC) Chairman Michael Steele released the following statement today on Illinois’ Republican gubernatorial primary:
“I extend my sincere congratulations to our Illinois Republican gubernatorial candidate, state Senator Bill Brady. Both he and state Senator Kirk Dillard ran great, positive campaigns focused on the GOP principles of fiscal responsibility and controlling government spending, and I commend them both. Together with Senate candidate Mark Kirk, state Senator Brady will help lead the strongest Illinois Republican ticket in years. These candidates have put the Republican Party in an excellent position to compete in November talking about the issues that matter the most to Illinoisans. After Governor Quinn and Illinois Democrats mismanaged everything from the state’s economy to ending the culture of corruption, voters are ready for a new brand of leadership. With our alternative solutions for job creation and economic growth centered around lower taxes and less regulation, I am confident Republican candidates will prevail this fall.”
It addresses questions about his family’s failing Broadway Bank. And it says that while Broadway Bank did loan money to people like Tony Rezko, a lot of other banks did too.
* The US House passed a relatively tiny stimulus bill yesterday, and GOP Rep. Mark Kirk voted against it. That vote prompted a predictable back and forth…
The bill would offer companies a one-year exemption from paying the 6.2% Social Security tax for each new worker they hire that had been out of work for at least two months. It also would expand investment write-offs for small business, transfer cash into the government’s depleted highway-building fund and offer subsidies to local governments to issue construction bonds.
Mr. Kirk, a Republican, said the $18 billion bill is defective because there is no assurance the Social Security fund ever will be reimbursed.
“The American people need jobs — not gimmicks,” he said in a press release. “Very few small businesses will spend $40,000 creating one new job just to get a $1,000 tax credit in return.”
Mr. Giannoulias, a Democrat, wasn’t available for comment himself, but the Democratic Senatorial Campaign Committee put out a statement on his behalf ripping Mr. Kirk’s “stunning” vote against the alleged interests of 725,000 unemployed Illinois residents.
Bill Brady has a somewhat similar tax break for job creation, so it’ll be fun to see the Kirk quote used in that context.
The head of the state agency that regulates banks said today he will recuse himself from matters involving the struggling family bank of U.S. Senate candidate Alexi Giannoulias because he once worked as a campaign aide to Giannoulias.
Brent E. Adams, secretary of the Illinois Department of Financial and Professional Regulation, worked for one month as a policy adviser on Giannoulias’ campaign for state treasurer in 2006, said department spokeswoman Susan Hofer. The department is working with the Federal Deposit Insurance Corporation in deciding whether Giannoulias’ struggling family bank should be taken over by federal banking authorities.
While Adams doesn’t believe his stint with Giannoulias’ campaign causes a conflict of interest he will not be involved in any decisions regarding the bank, Hofer said. Adams received $500 from Giannoulias’ campaign fund for his work. […]
A Giannoulias spokeswoman said the state treasurer was never asked to help Adams get his state job and never advocated on Adams’ behalf.
Some community banks are struggling in this economic downturn. This week, U.S. Senate candidate Alexi Giannoulias said his family bank is one of them.
It is on a federal watchlist of problem banks along with many others.
The Independent Community Bankers Association told ABC 7 Thursday that virtually all of the group’s member banks are under some stress because of falling real estate values. But he acknowledged the Giannoulias family-owned bank apparently is among those facing the most dire circumstances.
Despite hearing the name Broadway Bank in news reports, many long-time customers have not considered moving their accounts. Restaurant owner Jake Moody, a 30-year customer, likes the personal service there.
* Tom Cross held a press conference yesterday to discuss the budget negotiations…
The top House Republican leader Thursday shoved the possibility of an income-tax increase this spring further into the legislative deep freeze, accusing ruling Democrats of burying GOP efforts to “fundamentally change” the state’s spending practices.
House Minority Leader Tom Cross (R-Oswego) embraced a series of budgetary reforms put forth by the Illinois Policy Institute, a conservative think tank, including requiring a supermajority for tax hikes, providing a weeklong review of a budget before a vote and making it harder for legislative leaders to deny floor votes by bottling up bills.
“We’re not going to have any discussion about revenue until we look at all these approaches that I’ve talked about,” Cross said.
The agenda is less specific on how it would cut state spending, which it notes has risen 39% over the past decade compared to a 6.8% increase in the state’s population.
A press release says only that the group favors “common-sense reforms,” and formation of a special panel that would review all state rules and regulations with an eye toward eliminating those that retard job growth.
This idea of comparing budget increases to population increases is a bit goofy. First, inflation has risen 25.8 percent since 2000. Also, do they not know about rampant health care cost inflation? That’s a huge portion of the state budget. Energy prices? Etc.? Also, revenues for this fiscal year are about equal to FY 2006. Things are bad, to say the least.
Notice that they didn’t use IPI’s “Piglet Book” in the presser. Perhaps because the group attacked some of Cross’ favored ideas.
* Not that anybody else is making much magic. The Senate Democrats continued hearings on their “Brady budget” bill yesterday. The Senate approved a bill to borrow $250 million to pay bills and shore up Medicaid. The Senate Dems unveiled an ad hoc economic development program.
* Could this help? Illinois Review points to an op-ed by Indiana Gov. Mitch Daniels about the state’s success using Health Savings Accounts, or HSA’s…
In Indiana’s HSA, the state deposits $2,750 per year into an account controlled by the employee, out of which he pays all his health bills. Indiana covers the premium for the plan. The intent is that participants will become more cost-conscious and careful about overpayment or overutilization.
Unused funds in the account—to date some $30 million or about $2,000 per employee and growing fast—are the worker’s permanent property. For the very small number of employees (about 6% last year) who use their entire account balance, the state shares further health costs up to an out-of-pocket maximum of $8,000, after which the employee is completely protected.
The HSA option has proven highly popular. This year, over 70% of our 30,000 Indiana state workers chose it, by far the highest in public-sector America. Due to the rejection of these plans by government unions, the average use of HSAs in the public sector across the country is just 2%.
What we, and independent health-care experts at Mercer Consulting, have found is that individually owned and directed health-care coverage has a startlingly positive effect on costs for both employees and the state.
I don’t know much about health savings accounts, but it appears to be working across our eastern border.
* Related and a roundup…
* Illinois could get $500 million in federal education money - State is one of 16 finalists in Race for the Top competition
* The NRCC has thrown Republican congressional candidate Joe Walsh right under the bus…
National Republican Party fundraisers aren’t putting much stock in Joe Walsh’s campaign to unseat incumbent Democratic U.S. Rep. Melissa Bean in the suburban 8th District, a spokesman said Thursday.
The races for the 10th District, 11th District and 14th District seats are the most competitive in the state, National Republican Congressional Committee spokesman Tom Erickson said, and are getting the most attention from the party. […]
“We’re really focused on the seats where we see the clearest paths to victory,” Erickson said. “It’s no secret these are the most competitive (races).” […]
“In the primary, we had really liked Dirk Beveridge or Maria Rodriguez,” Erickson said, referring to two of the five candidates Walsh defeated Feb. 2. “Those are the two candidates who we thought really had the potential to make this a very competitive race.”
Bean’s seat is certainly a stretch for the GOP, but I thought she might be vulnerable to populist attacks that she’s been way too cozy with the financial services industry. She’s repeatedly back-stopped their attempts to kill off reform.
Still, I’ve never really seen the NRCC do that to a candidate before. It certainly looks like a not so subtle hint to get out of the race.
As you already know, the Daily Herald reported earlier this week about how Walsh’s condo was foreclosed upon and his subsequent eviction. Walsh’s over the top diatribe [fixed link] against the paper didn’t do himself many favors, either.
While many other Democrats are rushing to dump campaign cash given by under-fire U.S. Rep. Charlie Rangel, Melissa Bean isn’t.
The Barrington Democrat says she won’t donate to charity the $28,000 she received between 2005 and 2007 from the New York congressman or from committees associated with him.
The money was given before Rangel was under investigation for ethics abuses, Bean spokesman Jonathan Lipman pointed out. Plus, he says, the money has already been spent.
* Meanwhile, GOP Congressman Peter Roskam is doing Internet advertising on behalf of a “tele-town hall.” The kicker is that he’s using taxpayer money to buy the ads. Check out a screen cap…
If you can’t read the fine print, it says: “Paid for by Official Funds Authorized by the House of Representatives.”
Strange that he would use taxpayer funds to advertise a meeting about “out of control spending.”
Even stranger, the ad in question was placed by Google on Talking Points Memo, a liberal website.
* Campaign roundup…
* New Lake Co. GOP leader may reflect growing conservative movement: A member of the conservative Republican Assembly of Lake County, Cook brings a different dynamic to the leadership, observers say. RALC Chairman Raymond True said Cook will be in better touch with the conservative members of the party.
* Stroger hires campaign worker as deputy chief of staff: Carla Oglesby replaces Pamela Munizzi, who recently retired. Oglesby, who was a managing partner of CGC Communications, will be paid $116,000 a year in her new post. “I was deeply impressed by Ms. Oglesby’s work on the political side in the run-up to the” Feb. 2 Democratic primary, Stroger said in a statement.
* Sneed: Sneed hears voter turnout for the recent governor’s primary was the lowest in Illinois history.
* Code Red: NRCC Launches Targeted Calls Against Bill Foster
* Toftoy gets term as Kendall GOP leader: When the dust cleared, it was Kenny the Coroner — Ken Toftoy, the Kendall County coroner — who bested Sawmill Dan — Dan Nicholson, owner of Sawmill Pizza and Ristorante in downtown Yorkville — for a two-year term as chairman of the Kendall County Republican Committee.
* Former politician now brokers real estate deals: Lee Daniels, who used to negotiate the state’s multibillion-dollar budget as the Republican leader in the Illinois House, now chases buyers for small commercial buildings in the suburbs.
* I’m running the question early because the State Board of Elections will release their final vote tally today in the GOP governor’s race. And Sen. Kirk Dillard has a 1:30 pm press conference scheduled. From Crain’s…
Mr. Dillard has been saying he won’t go on to the next step — a partial recount — unless the certified total shows him within about 100 votes. He’d asked only that everyone wait until all the votes were counted and the totals double-checked.
Something could change at the last second, but insiders say there is no sign of that.
* The Question: Considering the problems Sen. Bill Brady has had on the campaign trail during the past month, do you think Dillard should ask for a recount even if the spread is more than 100 votes, but his advisers say he still has a legit shot at winning?
A plea to non-Republicans: Try to remain intellectually honest here.
As he warmed up Thursday for his expected acceptance of the Republican governor nomination, state Sen. Bill Brady took a swing at Democratic Gov. Pat Quinn and hit nothing but air.
The story, of course, was about Brady’s botched press conference yesterday over the Quinn administration’s super-controversial early release program that I told you about yesterday. More…
The trouble is, state prison officials later pointed out, the inmate wasn’t among those the Quinn administration released early because he wasn’t eligible.
Brady hadn’t fully checked available public records, including an online list the Quinn administration posted detailing which inmates were let out early after getting sped-up “good time” off their prison sentences. When told there is such a list, Brady offered a short response: “There is?”
The gaffe is the latest controversy for Brady, who likely will be certified Friday by state elections officials as the winner in Feb. 2 primary.
“There is?” That’s my favorite line from the presser.
* Sun-Times hed: “Brady misfires on governor - Republican can’t back claim that Quinn freed murder suspect from prison early.” From the story…
State law allowed [recently accused murderer Jonathon Phillips] to knock off one day from his six-year carjacking sentence for every day of good behavior. He served 27 months in the Western Illinois Correctional Center and received an additional 60 days off his sentence for “meritorious good time” and 196 days of credit for time in the Cook County Jail awaiting trial on the 2007 carjacking charge, Smith said.
“We were told by legal opinion that he likely was [released early],” Brady said.
Asked what he meant by the term “legal opinion,” Brady said, “It means we consulted people with a law degree.”
“We consulted people with a law degree.” My second favorite line.
Phillips was sentenced to six years for vehicular hijacking in Cook County. The law requires him to serve at least three. He was released early after receiving 60 days good-conduct credit, which the Corrections director may grant to most inmates, in October 2007, Smith said.
Brady questioned whether Phillips was eligible for meritorious good time because of his crime.
State law indicates the credit does not apply when a judge finds that the victim of vehicular hijacking suffered great bodily harm. Such felons must serve 85 percent of their sentences, which Brady suggested should have applied to Phillips.
But the Cook County state’s attorney’s office told the AP in January there was no finding of great bodily harm in Phillips’ case.
The law is worded in a way that could be read to deny meritorious good time for everyone convicted of vehicular hijacking. But criminal defense lawyers contacted earlier by the AP generally said the law appears to have been properly applied in Phillips’ case.
Here’s some inside info for you. Word’s been going around for months about this Jonathon Phillips case. I’ve looked into it, the AP examined it, the Hynes campaign took a long look (after being approached by the murder victim’s mother) and Brady’s people have known about it as well. Everybody but Brady came up empty. Well, actually, Brady came up empty as well, he just didn’t think he did.
…Adding… Some folks I talked to yesterday pointed out that Quinn could now use those “Brady swings, misses” headlines in his own defense when Brady’s early release ads start airing.
* Related…
* Brady’s attempt to link Quinn, murder suspect falls short
* Brady links Quinn prison-release policy to local murder
* Capitol Fax video: Sen. Brady demands Quinn publicize names of prisoners released
* Capitol Fax video: Brady continues to jab Quinn for early prisoner release
* Rates jump on some health plans for individuals in Illinois
Blue Cross & Blue Shield of Illinois, the state’s largest health plan, increased the base rate on one of its HMO plans by 20% last summer, according to the Illinois Division of Insurance.
UnitedHealthcare of Illinois, the No. 2 carrier locally, raised base rates on its HMO plan by 13% in December, the state’s data show.
* School funding a ‘huge crisis,’ state school superintendent warns
Daley rejected the notion that creating two inspectors general — one to police the executive branch, the other to bird-dog aldermen — would create another level of bureaucracy taxpayers can ill afford.
“You know what? There’d be 50,000 people applying for these jobs,” Daley said. “I mean, there’s so many people out of work. If you were ever to open employment, there’d be 50,000. These are good-paying jobs. Everybody would like to not work and get two hours’ pay.
That means the new treasurer and county clerk still will make $93,116, and the new sheriff will make $110,923. The new county board members will each get $23,000.
Laborers’ pay starts at $18.68 an hour and will rise to $19.24 on June 1, 2011. The foremen and water operators start at $23.59 an hour and rise to $24.31 by the third year. Top pay for the most experienced laborers in 2011 will be $26.73 an hour; for foremen and water plant operators, $32.40.
The Federal Communication Commission is requiring all law enforcement departments to use split-band frequencies that will allow for both UHF and VHF frequencies. Currently, the Galesburg Police Department uses UHF only, while the Galesburg Fire Department and Knox County Sheriff’s Department use VHF.
Thanks to Mayor Larry Morrissey’s State of the City speech tonight, we were able to do a by-the-numbers approach to problems and opportunities facing Rockford. And we were glad he didn’t forget to count the city’s blessings,
* Proposed bill will expand fire safety requirements in nursing homes
* Sen. Bill Brady claimed today that an alleged murderer had been released too early from prison. Jonathan Phillips was charged with murder last month after being released from prison in November.
Sen. Brady claimed that under the state’s Truth in Sentencing law, Phillips was released from prison seven months too early.
But a reporter with the Associated Press countered repeatedly that the AP had looked into the Phillips case and determined that he was not set free before the normal day-for-day good time release which any other inmate could get. The scandal sparked last year by AP reporting was that the DoC was releasing prisoners 60 days earlier than the usual good time program.
Brady also claimed today that he could not obtain the list of prisoners who had been released, but reporters pointed out that the information was already available. Brady was joined in the presser by House GOP Leader Tom Cross and Senate GOP Leader Christine Radogno. The legislators unveiled legislation requiring the state to post photos and background information on all prisoners released early.
**UPDATE x1 ** 3:20 p.m. — Sen. Brady talked to reporters after the Senate Executive Committee unanimously approved his early release proposal. He said he plans to stay in the Senate through the campaign…
* Former Republican gubernatorial candidate Adam Andrzeiewski recently asked Attorney General Lisa Madigan for a formal opinion on whether the Senate “joint caucus” last month was illegal. You’ll recall that the entire Senate - both parties - held a private meeting to hear a budget presentation by the NCSL. The meeting was widely denounced in the media and Senate President John Cullerton vowed not to do it again.
The Legislature is not covered under the Open Meetings Act, and the constitution requires that sessions and committee meetings be open to the public unless a super-majority of two-thirds decides otherwise. The Senate Dems said they were on solid constitutional ground because there is no prohibition against “joint caucuses” in the state Constitution.
Madigan’s public access counselor wrote Andrzejewski that since the Open Meetings Act doesn’t apply, “the Public Access Division has no express power to offer an opinion.” She also wrote that since the Public Access Division has no authority over the matter, research into the constitutionality of the joint caucus wouldn’t be warranted. Read her full letter by clicking here.
It’s ironic that the self-described “Champion” of transparency is of no legal assistance on this issue. The Attorney General’s office basically says:
1. Because of politics, we are not going on the record on the substance of this issue
2. If the Legislature invents a type of “meeting” not defined by statue or in the Constitution, they can do what they want in that meeting, and
3. In order to get any finding of a violation of the spirit or letter of Illinois laws, you need to file a law suit and hope that the court finds in favor of transparency.
“This is merely another example of how Illinois’ political class abuses the laws, and citizenry, of Illinois. Why bother having a Freedom of Information Act, an Open Meetings Act, or even a Constitution, if the Legislature can operate outside any rules with impunity?” asked Andrzejewski.
The un-enforceable Illinois Constitution, along with the amorphous laws passed underneath it, deprive the citizens of their putative right to see the workings of their government. This is by design, not by accident, as Lisa Madigan’s actions indicate.
A trip through the Hall of Governors at the state Capitol might leave a person feeling like they are forgetting someone. Former Gov. Rod Blagojevich is not among the portraits of all the other former governors hanging in the hall.
That doesn’t bother state Rep. Bill Black (R-Danville). He is sponsoring legislation to prohibit the state from paying for the portrait of an impeached and convicted governor. Black says the cost of those portraits can be as high as $25,000, and he thinks the taxpayers shouldn’t have to foot the bill.
* The Question: Envision the official Blagojevich portrait. Got it? OK. What is he doing?
* Sheila Simon has put together a video for the Democratic state central committee as they ponder whom to pick for lt. governor. Have a look…
Simon has not yet submitted her former application to the state party, or the party hasn’t yet posted it. Rep. Art Turner told me yesterday that he’ll file his application today.
A criminal defense attorney who represented former Cicero Town President Betty Loren-Maltese has joined the growing list of Democrats who want to succeed Scott Lee Cohen as the party’s lieutenant governor candidate.
Another 25 political newcomers submitted their names to the state Democratic Party, bringing the total to 69. Two potential candidates who submitted their names already have dropped out of consideration.
Among the names posted today at ildems.com is Leonard Goodman, who represented Loren-Maltese during the appeals process following her conviction on racketeering, conspiracy and fraud charges.
Another would-be running mate for Quinn is a 25-year-old from Chicago who says one of his strengths is that he “did not vote for Rod Blagojevich in 2006.”
Given their lack of political experience, applicants were creative in describing what strengths they would add to the Democratic ticket. One suburban Chicago man listed his ” Jamaican wife and three kids” among his strengths, while a self-professed independent listed his “ability to create an organization of farmers, hunters and wizards that will zoom with innovative solutions.”
As of Wednesday, two Springfield-area residents were among the more than 70 people who applied online to become the Democratic nominee for Illinois lieutenant governor.
They are:
Daniel Hoffman Sr., 70, of Springfield. Hoffman said in his online application that he is a Native American who used to work for the Sangamon County sheriff.
“I think I would make a good candidate for lieutenant governor because I have never been a person to kiss butt and have always put the American people first,” he wrote.
– Shannon Kelly, 38, of Williamsville. Kelly is a correctional officer at Logan Correctional Center and has been active in his union there. On his application, he wrote that good promotion of the state’s history will continue to spur tourism, and he called President Obama, who announced for the office in Springfield, the state’s greatest public relations asset.
* While they’re at it, maybe the central committee can convince Quinn to listen to his bodyguards…
Sneed hears State Police are suffering from a case of the jitters over Gov. Quinn’s driving habits.
• Explanation: Contrary to his predecessors, Quinn either drives himself or insists on being driven by his trusty aide/sidekick, Lou Bertuca.
• Translation: “The troopers are worried” said a police source. “They are in a tail car, but not in the front seat.”
• Upshot: The governor insists on a certain amount of independence . . . and feels he gets a lot of work done traveling with Bertuca, who is also entrusted with Quinn’s ancient briefcase, “Betsy.”
* State schools superintendent Christopher Koch told a Senate appropriations committee this morning that he’s anticipating over 13,000 school-related layoffs in the upcoming fiscal year with the budget proposal he’s submitting.
Brutal.
Koch’s statement reinforces the notion that state government has become one of the biggest drags on Illinois’ economy.
…Adding… From my intern Barton Lorimor who is at the hearing…
Koch just said that 13,000 job loss figure is only based on 75% of the school districts responding to ISBE’s inquiry. Still waiting on the other 25% to report their expected losses.
* Every year, Moody’s/Economy.com prepares a report for the Commission on Government Forecasting and Accountability. I’m still wading through it, but let’s look at a couple quick points.
Retail sales are regaining some strength, but there’s a long way to go…
The contraction of the employment base is also weighing on retail sales in the state. Though estimated retail sales declined precipitously in the fourth quarter of 2008, the pattern of declining retail sales has halted. Estimated sales grew by 4% on an annualized basis in the third quarter but remain 9% below their year-ago level.
While the analysts expect the state’s economy to grow a tiny bit more than the nation as a whole, it won’t help the budget situation…
Moody’s Economy.com expects Illinois’ real gross state product to grow 2.5% over 2010, only a touch stronger than the 2.3% growth forecast nationally and not strong enough to turn the state’s finances around. […]
Illinois follows the U.S. business cycle closely and this time will be no exception. Moody’s Economy.com expects a strong rebound in 2011 and 2012. However, as has been the case during every recovery of the past 40 years, Illinois’ rebound in terms of employment will be slightly weaker than the U.S. rebound.
And then Moody’s practically endorses a new tax on services…
A proposal by the State of Illinois to raise taxes through a broad-based services tax would garner $3.6 billion to $7.3 billion in revenues.
The proposed tax, designed to improve the state’s revenue generating capacity, will help lift the state from its current fiscal woes, which have nearly doubled the average time the state takes to pay accounts payable and led to several rounds of downgrades for the state’s bond rating, which has in turn raised the cost of borrowing.
A services tax is aimed at drawing revenues from some of the state’s fastest-growing and most dynamic industries and relieving some of the burden from historically strong but contracting industries such as manufacturing. Fears that services taxes will push away critical industries may be misplaced; other states with strong financial and corporate headquarters industries such as South Dakota and Delaware also heavily tax services.
* That same approp committee mentioned above will resume taking testimony this morning on the “Brady budget” - legislation based on Brady’s campaign pledge to slash the budget by 10 percent across the board. We already talked about this yesterday, and we’ll have more videos and reports later today, so here’s a roundup of coverage on yesterday’s hearing, which featured two university presidents…
* Senate considers cuts to this year’s budget: [Republican] Sen. Matt Murphy asked the two men if they would consider a deal that would guarantee their schools the money they are owed, with a 10 percent reduction. “It is not acceptable for me to take a 10 percent deal right now and run with it,” Poshard said to Murphy. “You folks passed legislation that guaranteed us a certain amount of appropriation, upon which we built our budget. We depended upon that. We gave a promise to thousands of students based upon that promise to us from the state legislature and the governor.”
* Legislative gamesmanship on state budget: Democrats got the twin benefits of trying to embarrass Republican standard-bearer Brady while again preparing voters for the notion that a tax increase is an inevitable part of the solution. Democrats denied that was their motivation. Brady dismissed the public hearing exercise as a time-wasting “circus” that doesn’t get the state any closer to solving its problems.
* University presidents ask legislators to avoid more cuts: University of Illinois President Stanley Ikenberry said the 10 percent cut would equal $74 million and would come on top of $86 million in cuts already made at the university. Ikenberry said appropriations to the UI have fallen by $100 million since 2002.
* Senate moves slowly on budget cut plans: “We are not trying to put anybody on the hot seat,” said State Sen. John Sullivan, D-Rushville, the committee’s chairman. “Republicans have said they want 10 percent cuts across the board to services and we wanted to highlight today what the effect of cuts would be.”
* Dems zero in on Brady’s call for cuts: Brady, a Bloomington businessman, said Democrats were playing politics with the state’s “horrific” budget woes. “Ever since February 2, they’ve been politically motivated,” Brady said. “I’m not going to play the political games they are. We have got to deal with the fact that we can’t afford a tax increase.”
* And here’s your local government financial gloom and doom roundup…
* Last December Sheikh Kifah Mustapha completed the Illinois State Police training course to become the ISP’s first Muslim chaplain. But there’s a problem…
According to a police statement, “in early January, the ISP became aware that Mr. Mustapha was potentially identified as a member of the Muslim Brotherhood’s Palestine Committee. An immediate review of our background process began.” […]
Such membership resulted in Mustapha being named as an unindicted co-conspirator in the holy land foundation case, the “largest terrorism financing prosecution in American history.”
The ABC7 report claims that all seven people who went through the chaplain training have been “told to refrain from any state police work.” Apparently, the ISP doesn’t quite know what to do about this situation.
All this came to light when Steve Emerson, a “self-styled national security expert,” started digging…
Mustapha’s name appears on a list of unindicted co-conspirators in the Holy Land Foundation (HLF) Hamas financing trail, which ended with sweeping convictions in November of 2008. On this list he is identified as a member of the Muslim Brotherhood’s Palestine Committee. According to the indictment in the HLF trial, the “Muslim Brotherhood is an international Islamic fundamentalist organization” that is “committed to the globalization of Islam through social engineering and violent jihad.” It created the Palestine Committee with a “designed purpose to support HAMAS” politically and financially.
A 1991 internal memo to Palestine Committee members reveals that members of the committee intended to further the Muslim Brotherhood’s goals “on the American front.” Mustapha appeared on the list due to his positions with HLF and Hamas’ U.S. propaganda arm, the Islamic Association for Palestine (IAP).
The IAP also wasa component in the Palestine Committee’s Hamas-support network.
In a deposition for the civil litigation Boim v. Quranic Literacy Institute Kifah Mustapha explained that he was a “registered agent for HLF in Illinois” from the mid 1990s until 2001 when HLF’s assets were frozen. During this time Mustapha raised money for HLF.
During the deposition Mustapha also described himself as a former member of a volunteer committee for the IAP beginning in the early 1990s. As a volunteer, he “distributed flyers” and helped prepare for “festivals or conventions.” Those meetings often featured incendiary rhetoric and skits portraying Hamas violence against Israelis. Additionally Mustapha said that he donated money to HLF and “maybe” IAP.
The Illinois State Police chief of staff will get better than a 20 percent pay increase if the governor’s office approves the recommendation from the department. […]
Is the midst of a state budget crunch the right time for this? [First deputy director Luis Tigera] said such things should be viewed on a case-by-case basis.
“She does an excellent job,” he said.
Jessica Trame’s salary will rise from $87,108 to $105,000.
Local Republicans also elected a new Republican representative to the State Central Committee for the 14th Congressional District in the form of dairy magnate Jim Oberweis. Oberweis has run for several government offices over the years. Most recently, he lost to Democrat Bill Foster for the 14th Congressional District seat. Oberweis defeated Kane County Clerk Jack Cunningham by about 3,000 votes to win the spot of the State Central Committee. As chairman, Kenyon was able to cast a block of about 13,000 votes representing the precincts not currently filled by a local committeeman. He said he split that block between Oberweis and Cunningham in pretty much the same margins as the final vote came out.
One can’t help but wonder how long it’ll be before the milk magnate announces that he’ll use the post to springboard himself to the state party chairmanship.
* We learned yesterday from the Daily Herald that an Evanston condo owned by 8th District Republican congressional nominee Joe Walsh was foreclosed upon and he was subsequently evicted. He issued a long press release last night which included this slap at the Daily Herald…
I knew getting into this race that the local media would do Melissa Bean’s dirty work for her. And the Daily Herald has now lived down to my expectations. The media elites are part of a dysfunctional political establishment that has destroyed our economy in pursuit of reshaping America into a country working people don’t even recognize and cannot afford.
[Venturi] called the revelation newsworthy, despite Walsh’s insistence in the Wednesday statement that “the local media (is doing) Melissa Bean’s dirty work for her.”
“It’s something that needs to be addressed,” Venturi said. “And if it’s something (Walsh) addresses, it could be a positive for him.”
Two of Walsh’s opponents in the GOP primary - Long Grove Village President Maria Rodriguez and Barrington resident Chris Geissler - said they knew nothing about the foreclosure during the winter campaign.
“I do believe … this kind of information should be divulged by the individual candidate,” Geissler said. “Anyone seeking public office needs to take a hard look at their personal history as well as motivations and be able to reconcile that with the public trust they seek.”
* Walsh and other Republican congressional candidates are currently badgering their Democratic opponents to return contributions from Congressman Charles Rangel, who has stepped aside from his powerful Ways and Means Committee chairmanship because of ethics problems. 10th District Democrat Dan Seals is returning the direct cash, but the GOPs want more…
Seals’ campaign announced Wednesday that the Wilmette business consultant gave $14,000 to local charities in the 10th District, which reaches from northern Cook County into Lake County. That falls short of the $55,000 amount that Seals’ Republican opponent Robert Dold, a Kenilworth businessman, has called on him to return.
Seals deputy campaign manager Jamie Crain said they are giving up only direct contributions from Rangel that have come in over the last two election cycles. This is Seals’ third run. The other $41,000 came from fundraisers associated with Rangel.
* Related…
* Cook Democrats retain Berrios as chairman: The vote was unanimous for the county board of review commissioner and assessor candidate. Yet what was surprising is he was nominated by Chicago Alderman Toni Preckwinkle, the party nominee for county board president.
* Treasurer Alexi Giannoulias sat down for a long interview with Carol Marin last night as part of a day-long media tour. Have a look…
* The Giannoulias campaign has set up a website to counter allegations about his family’s bank and the Bright Start program called TruthAboutAlexi.com. The campaign also rebutted yesterday’s Kirk campaign’s attacks in a long press release. From that release…
KIRK SPIN: When Alexi Giannoulias left the bank, the ratio of brokered deposits to total assets at Broadway was 68 percent, according to FDIC records. The average for all federally insured banks nationwide was 4.5 percent.
THE TRUTH: There are numerous instruments that small and mid-sized banks use to fund their loans. Broadway managed the use of brokered deposits as it grew, and the problems it is currently facing have nothing to do with these deposits.
* Giannoulias’ media tour was far from flawless, however. You can listen to his Tribune editorial board meeting by clicking here. A condensed and edited transcript is here. From the transcript…
Tribune: How did [Michael Giorango, a convicted bookmaker and prostitution ring promoter] come to the bank?
Giannoulias: I wasn’t even around when he first came to the bank, so I don’t know.
Tribune: You haven’t been curious about how this guy wound up with your bank?
Giannoulias: Well, it’s tough to ask my father questions.
Tribune: Was your father the first contact?
Giannoulias: Do I know how a customer met my father? No. He could’ve walked in the door.
In answering questions about Broadway’s loans to Giorango, Giannoulias said Giorango had a relationship at the bank before he worked there full-time after his graduation from law school. But in offering his latest explanation of his contact with Giorango, Giannoulias today at first contended he was unaware of Giorango’s criminal history.
That contradicted Giannoulias’ comments in 2006 to the Tribune, in which he acknowledged knowing Giorango had a criminal background. When reminded today of his past comments, the treasurer said he would have to check his past statements before saying any more because he doesn’t want to give inconsistent answers.
Giannoulias also expanded on his previous explanation for $69 million in dividend payouts that he has said were part of settling his father’s estate after his death in June 2006.
Giannoulias said $40 million was used to pay income taxes for him and his family, the bank’s sole shareholders. The remaining $29 million was paid out to the family as part of his father’s wishes to diversify their assets beyond the bank, he said.
Reiterating previous statements that only 9 percent of the non-performing loans now on Broadway’s books were initiated during his tenure, Giannoulias at first said the 9 percent was based on the number of loans, not their value. His campaign later clarified the figure represented the value of troubled loans.
The story isn’t over. Voters will have plenty to consider as the bank’s fortunes play out in tandem with Giannoulias’ campaign. No doubt he’d rather focus on his record as state treasurer and his vision for the U.S. Senate. Like it or not, though, Giannoulias’ political future depends largely on his handling of the continuing fallout over Broadway Bank.
During his tenure at the bank, from 2002 to 2006, was Alexi Giannoulias a real player who helped shape the bank’s policies and practices, for better or worse?
Or was he a 26-year-old former jock fresh out of law school, still wet behind the ears as a banker despite his title of vice president, who deferred to his father and his brothers?
Either way, fairly or not, he doesn’t come out of this looking good.
* Mark Brown makes an important, but often overlooked point…
Giannoulias’ first campaign contribution was a $200,000 check from his father, Alexis, in November 2005. After his father’s death, the estate of Alexis Giannoulias loaned $800,000 to his son’s campaign for treasurer, while Alexi’s mother, Anna, loaned about $1.5 million more. Those loans are still carried as debts of his Citizens for Giannoulias campaign fund. All together, the family chipped in half of what Giannoulias spent in 2006.
At the time, the Broadway Bank was a high-flying Edgewater-based community bank making loans in such far-flung locations as New York, Florida and California. The aggressive growth strategy more than tripled the size of the bank between 2000 and 2005 and then doubled it again by 2008, taking it from a $200 million to $1.1 billion institution in just a decade.
* The Sun-Times looks at what happened to the treasurer’s family bank…
Broadway Bank isn’t really a bank the way a lot of people understand it. The Giannoulias family’s enterprise writes only a small amount of single-family mortgages or loans to small businesses.
Where it puts its money is real estate development and commercial property. The strategy paid off handsomely in the last decade, making Broadway among the most profitable banks in Chicago. Broadway was a gambler that doubled down on its bet and won. But then it doubled down again.
It increased the value of its assets from $213 million in 2000 to more than $1 billion in 2007. In 2008, it reported a financial loss and last year, with real estate values in full retreat, the loss widened to $75.3 million.
* Related…
* Outside group targets Kirk: In an interview in Springfield this week, Kirk referred to the VoteVets organization as “one of the Democratic shell groups.” “They don’t mention cap and trade because they know that’s not popular with Illinois voters,” he said.
* Giannoulias defends family bank after GOP attacks
* Giannoulias acknowledges family bank will probably fail: Will his candidacy for U.S. Senate survive the bank’s collapse? “Yes,” he said “When I talk to people, people are getting crushed out there. Their primary concern is: how can you help create jobs? How can you help turn this economy around? That’s what I’m going to focus my campaign on.”
* Giannoulias defends family’s bank, but leaves unanswered questions: Mr. Giannoulias personally visited Florida to see property involved in a Giorango loan. Asked if he was aware then of Mr. Giorango’s criminal past, Mr. Giannoulias replied, “I didn’t know the full extent of his legal problems.” Full extent? Mr. Giannoulias declined to say more, despite several efforts to get him to elaborate on exactly what he knew and when he knew it.
* Is Giannoulias turning corner on his family bank woes?: But, so far, I’m not sure Alexi has pulled it off.
Burke has introduced an ordinance to mandate traffic school for drivers nabbed by red light cameras. He hopes teaching violators about the potential for a crash will do more than just a fine to convince them to stop.
* Ousted Security Boss: O’Hare is ‘Least Secure Airport’ in Country
* No Timeline for Decision on Closing Chicago Waterways
* 100 college prep seats set aside for top eighth-graders
The best-scoring eighth-graders from some of the city’s worst-scoring schools are being saved 100 seats at four elite college preps — including the top-scoring high school in the state — in the latest twist to this year’s controversial admission process.
* U. of I. Springfield chancellor to get salary for 14 months after leaving post
The agreement, to be voted on by the university’s board of trustees at its meeting next week, comes as University of Illinois officials have repeatedly said they are under severe financial constraints.
* DuPage Airport board, Schillerstrom ’save face’ in new budget deal
Airport board Chairman Dan Goodwin said the revised budget is a compromise that allows “both sides to save face” because it grants the tech park administration’s full funding request, but calls for the tech park to return $316,000 of the appropriation to pay off some of the $650,000 it owes the airport authority. The tech park’s large debt payback will cut into its $400,000 reserves, which Goodwin said both he and Schillerstrom agreed should not exist.
* [Kane] County ethics reform proposal gets warm reception
The changes would rewrite the code of conduct for county board members. If approved in its current form, the new laws would limit political contributions to no more than $1,000 per calendar year from anyone who does business with or seeks business with the county, or is appointed by the county board to a paid position. County board members would also be limited in their ability to take a paid appointment or receive a county job.
1st Ward Ald. Sam Cunningham said this week that he would like to see Waukegan enact an ordinance making sure that “young men don’t show their underwear” in public.
Peoria’s not going to change its name to Google, and Mayor Jim Ardis said he is not planning to bungee jump off the Murray Baker Bridge, but the floor is open for ideas to lure high-speed Internet to the region.
Officials who formed the Southwestern Illinois Flood Prevention District in 2007 figured to collect enough from a quarter-cent sales tax to pay the $150 million cost for 500-year-level repairs. They figured on 65 percent reimbursement later from the Army Corps of Engineers, which shares flood protection responsibilities.
But estimates have soared to more than $300 million for 500-year protection, and more than $200 million for the 100-year level.
[Mayor] Bergman was accused of shoving Willie Brown, who is one of four people charged with vote fraud in connection with the village municipal election in April. Brown, who could not be reached for comment, told police that Bergman shoved him in the hallway where the Village Board was then meeting following a contentious regular meeting of the board.
* We’ll have more on this later, including some video, but the Senate Appropriations II Committee held a hearing this morning on a ten percent across-the-board budget cut. The idea was to illustrate what would happen if the likely Republican gubernatorial nominee Bill Brady is elected.
Stan Ikenberry, head of the U of I, said the cuts proposed would mean a $74 million cut in state support to that university’s campuses. For perspective, he said that is the amount of support combined for Illinois’ Springfield campus, law school, med school campuses, dental school and college of education.
Glenn Poshard said such a cut would immediately trigger a 15 percent layoff across the SIU campuses, something he said is “not practical, prudent nor possible.”
The underlying but publicly unmentioned goal of today’s discussion in a Senate budget committee — discussion that will carry over to tomorrow — is to focus political ire on state Sen. Bill Brady, a Bloomington Republican and the likely GOP nominee for governor. On the campaign trail, he’s denounced tax increases and called for across the board 10 percent cuts.
The Democrats who control the General Assembly are now giving members and the public a taste of what Brady’s budget would do. So far, the state’s two largest public universities are describing layoffs, program cuts and double-digit tuition increases, which will further drive up the costs of a degree.
They’ll continue the hearing tomorrow. Check back for some videos in a few.
*** UPDATE *** Senate Approp II Chairman John Sullivan was asked repeatedly today what his committee was supposed to accomplish with this hearing and whether it was a shot at Sen. Bill Brady. He denied everything. Sullivan did, however, say that Brady was free to testify if he wanted. Have a look…
* I showed this video to subscribers this morning, but it’s worth showing everyone. Watch Rep. Julie Hamos and Rep. John Bradley go after each other over a provision in Bradley’s concealed carry bill that would not allow guns in schools…
The state’s school superintendents are cutting costs in a gruesome budget cycle, but they can take some consolation: Their own paychecks are growing comfortably.
The average salary and benefits of Illinois’ top school executives grew 4.1 percent last year, about 10 times faster than raises enjoyed by other wage earners in the Chicago metro area, according to state data. A record number of superintendents — 150 — earned $200,000 or more.
The earnings report comes as school districts from Amboy to Zion have threatened to trim teaching positions, close swimming pools or cancel lacrosse and band programs — all in an effort to balance budgets.
The new salary information, provided by the Illinois State Board of Education, shows that the average compensation of full-time superintendents grew from $145,000 during the 2007-08 school year to $151,000 in 2008-09.
We see the same thing in the private sector all the time. Corporate boards award lavish salaries to CEOs and high-level execs. Look at the Tribune Co.’s recent request to a bankruptcy court to award $45 million in management bonuses. Meanwhile, the Trib lays off reporters.
The difference, of course, is that this is taxpayer money we’re talking about here.
If the locals won’t control themselves, should the state step in? Worth pondering.
* No statewide repeal of red-light cameras: State Sen. Dan Duffy, a Lake Barrington Republican, admitted he’ll have to do “a lot of selling” to get others on board with his proposal to purge cameras from the state except in construction zones and railroad crossings, but he’s confident he’ll be able to work with colleagues to refine camera enforcement.
* House committee approves break for hair braiders: The measure would require hair braiders to take 300 hours of training, including 70 classroom hours and 230 hours as an intern. But that would be a break from the current rules.
* Alexi Giannoulias told the Sun-Times today that his family’s bank may very well go under…
“The bank has always been well-capitalized and has always been prepared for a 10- to 15-percent, even 20-percent, decline in real estate values, which, that would be almost unprecedented, But I don’t think anyone, very few people could have foreseen a 40 percent drop in real estate values and that’s why we’re in the position we’re in,” Giannoulias said.
When pushed, Giannoulias conceded he had little hope for his family’s bank to survive, “And that breaks my heart. … It was my father’s whole life.”
Will the bank still be there in November for the general election?
“It’s quite likely that the bank will not be around,” Giannoulias said. “There’s not a lot of capital out there for somebody to find $60, $70 million [as federal and state regulators want the Giannoulias family to reinvest in the bank in the next two months]. I hope I’m wrong.”
He also owned up to his share of the problems…
“I take my share of responsibility for possibly concentrating too much in commercial real estate,” Giannoulias told the Sun-Times’ editorial board. “Obviously, it’s easy to look back four or five years and say that, but I think in my role, that’s part of what I should be doing. This is not something I’m shying away from. This is not something I’m hiding from. I’m here to answer as many questions as I possibly can.”
This does not sound like a guy who would be pushed out of the race if his family’s bank does, indeed, go under. Just the opposite.
*** UPDATE *** We have two press releases. The first is from the Illinois Republican Party…
Appearing before the Chicago Sun-Times editorial board this morning, Illinois Senate candidate Alexi Giannoulias denied he helped a former campaign staffer become Illinois’ top banking regulator get his job – a role that could ultimately determine whether regulators close the Giannoulias family’s Broadway Bank.
“Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which would have jurisdiction over Broadway Bank,” the Sun-Times reported.
On January 26, 2010, Broadway Bank entered a consent decree with the Illinois Department of Financial and Professional Regulation (IDFPR) and the FDIC. When banks are closed, the IDFPR makes the final decision to close and then names the FDIC as the receiver of the bank. IDFPR is headed by Brent Adams, whose official state biography shows he served as Giannoulias’ Policy Director in 2006. Additionally, Illinois State Board of Elections records show Citizens for Giannoulias paid Mr. Adams $500 in salary in July 2006.
“We already knew about loans to organized crime and Blagojevich insider Tony Rezko,” Illinois Republican Party Chairman Pat Brady said. “Now we see Broadway Bank’s fate in the hands of a Giannoulias insider. We deserve a full accounting of how the State of Illinois will deal with this obvious conflict of interest and why this conflict was never declared.”
The second is from Kirk for Senate…
***FACT CHECK***
Giannoulias Misleads Chicago Sun-Times on Risky Investments, Loans to Organized Crime
False Giannoulias Claim: “I would vehemently disagree that these are reckless or risky loans,” he said. The only reason Broadway Bank appears ready to collapse is because the bottom fell out of the real estate market, he said. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get The Facts:
On January 26, 2010, the Illinois Department of Financial and Professional Regulation and the FDIC ordered Broadway Bank to “cease and desist from engaging in unsafe and unsound banking practices.” (www.idfpr.com)
From 2002 to 2006, Alexi Giannoulias increased Construction & Development loans from $80 million to $356 million – expanding such risky investments from 25 percent to 46 percent of the bank’s total loan portfolio. (Chicago Reader, Alexi’s Albatross, 12/3/09)
From 2002 to 2006, Alexi Giannoulias increased the bank’s brokered deposits (also known as “hot money”) fourfold to $640 million. The typical bank at this point was growing brokered deposits at about 9 percent a year. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)
When Alexi Giannoulias left the bank, the ratio of brokered deposits to total assets at Broadway was 68 percent, according to FDIC records. The average for all federally insured banks nationwide was 4.5 percent. (Chicago Reader, Alexi’s Albatross, 12/3/09)
False Giannoulias Claim: “The bank has always been well-capitalized.” (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get the Facts:
From 2006 through 2009, the Giannoulias family took over $100 million in dividend payments out of the bank – money that could have been used to shore up capital reserves. (Consolidated Reports of Condition and Income for A Bank with Domestic Offices Only)
In 2006, the bank set aside $2.2 million as a provision against loan losses, a safety measure that federal regulators require banks to take. Despite its large increase in risky loans, Broadway only doubled its bad-loan reserve in the time Mr. Giannoulias was there. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)
False Giannoulias Claim: But, Giannoulias said, he did his due diligence on those loans and never knowingly gave loans to people linked to organized crime. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get the Facts:
In 2005, Alexi Giannoulias authorized $15.4 million in loans to a convicted mob bookmaker and pimp named Michael “Jaws” Giorango. (“Boulis kin, 2 felons own Martha’s site,” Miami Herald, June 18, 2006; “Loans cast pall over candidate; Treasurer nominee oversees mortgages to crime figures,” Chicago Tribune, April 9, 2006)
Alexi told the Chicago Tribune he once discussed Giorango’s criminal past with him. (David Jackson, “Giannoulias Speaks Up On Loans,” Chicago Tribune, 4/27/06)
Alexi Giannoulias said he traveled to Miami to inspect property the bank had financed for Giorango and met with him there. Giannoulias declined to provide details of that meeting. (“Giannoulias ‘Embarrassed’ By Remarks About Convicted Felon,” Chicago Tribune, 4/27/06)
In 2005, Alexi Giannoulias authorized a $3.6 million loan for Demitri Stavropoulos of Oak Brook, who was convicted in 2004 for his role as ringleader of a multistate sports bookmaking operation that grossed about $1 million a year. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)
Stavropoulos was in federal prison in June 2005 when the $3.6 million Myrtle Beach loan was made. The inmate’s wife signed the loan papers as his ‘attorney in fact,’ land records show. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)
* The Tribune editorialized today in favor of Sen. James Meeks’ school voucher bill…
Meeks’ bill would focus on 49 elementary schools and 15 high schools, the worst-performing schools in Chicago. As many as 35,000 kids would be eligible. The vast majority of those kids are poor.
They would qualify for vouchers to pay tuition at any school that admits them.
The Meeks plan wouldn’t cost the state an extra dime. It would match the money the state already provides for the children.
And it would actually leave the Chicago Public Schools with more money to spend on kids who stay.
A suburban congressional candidate who’s stressed the need for fiscal restraint lost a condominium to foreclosure last October, the same month he announced his bid for office, court records show.
Joe Walsh, the Winnetka Republican running against Democratic incumbent Melissa Bean in the 8th House District, used to own a condominium on the 1400 block of Sherman Avenue near downtown Evanston. The two-bedroom unit went into foreclosure in 2008 and Walsh was evicted last fall, Cook County circuit court records and real-estate reports indicate. […]
Walsh now opposes abortion and a weapons ban, but he didn’t when he first ran for Congress in 1996. Earlier this year, he told the Daily Herald his views on abortion changed after a spiritual journey, and he shifted on gun control after being “educated” on the issue.
He also said he had a more liberal stance on gay rights in 1996 “because I was running in Evanston, Ill.,” a reference to the largely left-leaning city.
Cook County President Todd Stroger has quit his post as Democratic committeeman in Chicago’s 8th Ward, and he all but announced his retirement from politics after today’s County Board meeting.
“I’m going to continue to be involved in public service,” Stroger said, “but I won’t be running for office any time soon.”
Quitting the committeeman position was more than symbolic, as Stroger’s father, John Stroger, built the 8th Ward Democratic organization into his political power base as he became the county’s first black president.
Ald. Michelle Harris is taking over the committeeman’s job. More on Stroger…
A Sneed spotter claims since his election loss, outgoing Cook County Board President Todd Stroger has become a fixture at the East Bank Club. “I guess he doesn’t need to be bothered by his current job,” said the Sneed source.
* It will be interesting to see how the editorial boards handle these interviews today…
Illinois Democratic Senate nominee Alexi Giannoulias will face the editorial boards of the Chicago Sun-Times and the Chicago Tribune on Wednesday to answer questions about his connections to his family-owned troubled Broadway Bank.
Giannoulias, the state treasurer, has to factor into his campaign the potential for the bank to fail in the coming weeks as his GOP rival Rep. Mark Steven Kirk (R-Ill.), makes the Giannoulias tenure at the bank as a loan officer a central part of his campaign. On Tuesday, the Kirk campaign sent out a memo titled, “Mounting questions surrounding Alexi Giannoulias’ risky lending practices take center stage in Illinois Senate race.”
* So far, the only applicants for lt. governor are people who haven’t done much in politics. Here’s a coverage roundup…
* Sen. Kirk Dillard talks about the ongoing vote-counting process. Not much new here, but take a look if you get the chance…
* I don’t write about it much, but some of you know that my wife is an Assyrian from Iraq. Mark Brown has an interesting read today on how the Christian exiles/immigrants are not pleased with the voting venue for Iraq elections this year…
One of the little tricks of the old Chicago Democratic Machine was to screw around with the polling places in areas where the opposition was expected to run strongest by moving them to locations that would tend to discourage voters from turning out.
Strange, but that’s exactly what some members of Chicago’s Iraqi community say has been done to them in advance of their national parliamentary elections, the balloting for which opens here Friday.
The one and only Chicago area polling place for Iraqis living in the U.S. is located inside a martial arts studio in the back corner of an out-of-the-way Glenview industrial park with no access via public transportation and limited parking.
And when I wrote “exiles” I meant exactly that. My wife’s family home was bombed three times and a Muslim gang demanded that they hand over my brother-in-law so he could be martyred for their cause. They finally left for Syria, obtained UN refugee status and are now in Finland, of all places.
Want more evidence that video poker has links to the mob?
Look no further than Tuesday’s arrest of Casey Szaflarski.
As part of a federal investigation into the Chicago Outfit, Szaflarski has been charged with running an illegal gambling business, not paying $255,000 in business income taxes and filing no return for 2007.
Szaflarski owns Amusements Inc. of Berwyn, which distributes video gambling machines. The government accuses it of involvement in illegal gambling. Moreover, Szaflarski shared gambling proceeds with Michael Sarno, the reputed head of the Cicero mob, according to an affidavit filed in the case.
In July, Gov. Quinn and the General Assembly legalized video gambling machines to help pay for a $31 billion statewide construction program. The worry is that the expansion of video gambling will funnel new revenues to the mob.
Yes. We all know that video poker machines have been linked to the Outfit. That’s why legalizing video poker is important.
Right now, if you own a tavern and allow gambling on your machines, you split the cash proceeds with the distributor. Some of these distributors are allegedly unsavory types, and the long-held suspicion is that tavern owners don’t report all their cash profits to the taxing authorities.
With legalized video gaming, the Outfit is cut out. The Gaming Board is super-sensitive to this problem and is developing a process to make sure the Outfit stays out. The board has also decreed that any tavern owner busted for illegally paying out winnings will automatically be denied a video terminal license.
Currently, video poker machines are licensed as “for amusement only.” Under the new law, those machines would be subject to seizure by the police. No more long, expensive sting operations would be required to bust tavern owners for paying out.
So, if you want organized crime out of video gambling, do what this country did after inadvertently allowing the Mob to control alcohol via Prohibition. Legalize it.
The same goes for illegal drugs. You want the gangs busted up? Kill off their top money source. Walgreen’s and CVS won’t be shooting bullets at each other to vie for street corner space. I guess I should do a Google search first, but I really doubt that Budweiser and the Miller Brewing Co. resorted to armed violence after Prohibition ended.
* Related…
* Illinois Capital Construction Plan Gets Slow Start
* James R. Thompson Center Facelift 2 Years Away - Chicago Landmark Will be Under Scaffolding Until Money Comes Through For Repairs
* Former Gov. Jim Edgar echoes what many of us said over and over last spring: Not nearly enough emphasis was being placed on the budget mess because of the intense fight over ethics…
“To me the big issue was not ethics, it was finance,” Edgar said.
I asked if he meant campaign finance, and he said no, government finance. He said lawmakers, pressured by the media, missed a unique opportunity to actually do something about the state’s crippled economy and sinking budget.
“Last year I think the media blew it,” Edgar said. “Last year was a huge disappointment. I thought something positive might happen, not ethics, just making government function again. And it didn’t happen. Last year nothing happened. It was just a huge disappointment.”
It’s not right to completely blame the media for the failures. The leaders could’ve found a way to end the ethics debate far earlier, instead of allowing it to shove aside the budget until after the end of May - when a three-fifths majority was required to pass anything.
Still, I can’t argue too much with him. Edgar’s conclusion was that last spring was “one of the worst sessions, if not the worst session I’ve ever seen.” True dat.
* Speaking of the budget, let’s revisit the Chicago Tribune editorial board’s budget cutting proposals. Greg Hinz obtained some revealing quotes this week…
Civic Committee President R. Eden Martin told me that it is true, as the editorial posited, that trimming state employee benefits via later retirement and other shifts would save roughly $20 billion in coming decades, allowing the state to trim its annual pension payment by $2.1 billion.
But, Mr. Martin added, Illinois’ unfunded pension liability was most recently estimated at around $80 billion, so cutting $20 billion still would leave a $60-billion hole. The cut suggested by the Trib “doesn’t save that kind of money,” he said.
In other words, Illinois still would have to do something else to close the hole — like raise taxes.
There’s more to it than that, as subscribers know, but I can’t fault the Trib for not tackling the entire unfunded issue all at once. This is a crisis that simply cannot be solved today.
At the Civic Federation, President Laurence Msall agreed that cutting most state operating expenditures 7.2% to 2007 levels would indeed save $2.5 billion a year. But extending those cuts to grade and high schools — and applying them to state aid to municipalities, as the Trib proposed — would be extremely painful and politically difficult, he added, placing pressure on local governments to raise their property taxes.
Those proposed cuts to local governments were described this way in the Tribune’s editorial…
This subsidy gives municipalities a free ride: A dollar from Springfield is a dollar they don’t have to conserve, or fight citizens to raise in local taxes.
That’s some pretty harsh language, particularly in an era when revenues are drying up and more people are in need of more services. Here’s a roundup of related municipal revenue stories for today alone…
* Gurnee eyes hike in phone tax; Increase to 6 percent would give $650,000 boost
Putting pressure on municipalities to trim costs is a laudable goal, but the Tribune seems to be on board with the idea that government ought to be practically strangled to death.
Thankfully, though, the Tribune isn’t making their editorial a must-do for legislators, which would mean precisely the sort of thundering editorials that Edgar complained about above…
The Tribune’s John McCormick, who wrote the editorial, noted that the piece was titled “A no-tax-hike option,” and stated in its second paragraph that, “We haven’t voted yes or no on this.” In other words, he said, it was just a discussion starter.
It has certainly started a discussion. I’ll give them that.
