The full Frerichs response
Wednesday, Aug 13, 2014 - Posted by Rich Miller
* I’m not sure how the AP interpreted this statement from Sen. Michael Frerichs as “confirming basic facts behind the allegations” made by the Tom Cross campaign yesterday, but that’s not how I read the Frerichs response…
Tom Cross’ media tour highlights exactly what is wrong with his run for Treasurer: loose with the facts and worried more about running against his opponent than running with a vision for the office.
Here are the facts:
On the Champaign County early retirement initiative, many financial experts missed the continued recession that occurred after those decisions were made, not by Mike Frerichs but by other county leaders. The Champaign News-Gazette correctly pointed this out in its 2004 endorsement of Frerichs for County Auditor.
Deb Busey, who has been the Champaign County Administrator since 1998, said, “I brought the ERI proposal to the County Auditor and the County Board. To say otherwise is not accurate.”
Republican Mike Graham, a former Champaign County Board member and CPA, said, “I served on the Champaign County Board when we passed the Early Retirement Incentive. It was brought to the board by the County Administrator, Deb Busey, and Mike Frerichs provided us with an analysis that showed both costs and potential savings. I don’t know why the Cross campaign is saying otherwise.”
Steve Beckett, former Democratic Champaign Board member added, “The ERI under question was never a Mike Frerichs proposal. It was brought to the County Administrator by county employees and the administrator asked Mike to review its advantages and disadvantages. Mike did so and presented his findings to the Board, who then adopted it in a bipartisan fashion. This attack by Tom Cross is ludicrous and typical of a 20-year Springfield insider who would rather sling mud than talk about the issues.”
The Champaign County Board changed its management of IMRF as part of a greater restructuring plan by the board, not a criticism of Frerichs’ work as Auditor. The Cross attack is revisionist history.
Deb Busey, who has been the Champaign County Administrator for 16 years, said, “The IMRF authorized agent was moved when the County reorganized to bring payroll into the same department as human resources, to say it was for any other reason is a fabrication.”
On allegations of patronage, Frerichs employed neither of the two men mentioned in their official capacity. Again, these hiring decisions were made by the Champaign County Board.
Tom Cross might want to look more closely at his own past while he’s revisiting the facts:
Rep. Tom Cross voted for the notorious $10 billion bond deal pushed by then-Gov. and now inmate Rod Blagojevich. Remember that deal? It provided more than $35 million in fees to big banks and more than $800,000 to Republican Springfield insider Bob Kjellander, whose ties to convicted felon Tony Rezko were a key part of the scandal that ultimately doomed Blagojevich.
That same $10 billion pension bond fiasco Cross supported followed the infamous 1995 pension payment ramp he supported that pushed billions of dollars in pension debt onto future generations. Both helped create a system today whose debt tops $100 billion and puts state finances in peril.
If Tom Cross wants to talk clout, then why did he appear on Blagojevich’s “clout list” 46 times?
Voters want more and deserve better than the distasteful politics shown here by party cronies for a 20-year Springfield insider who has shilled for corporate interests as House Republican Leader at the expense of working families. Mike Frerichs has a clear vision for reforming a Treasurer’s office swamped by scandal and using the tools in that office to better invest in Illinois’ success. Cross offers nothing new in commending the current Treasurer for doing a good job.
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* The Sun-Times reports that Secretary of State Jesse White is concerned that Bruce Rauner may be trying to buy votes in the black community…
“He may be encouraging them to support him … with possible promises or some money they may have received,” White said after a Democratic unity breakfast held by the Illinois Democratic County Chairmen’s Association in Springfield. […]
“Sometimes you go into someone else’s turf, you try to invade them and you try to encourage them to support you and we don’t believe he’s going to be successful in that effort,” White said.
Did he really think Rauner was trying to buy the black vote?
“I do,” White said. “I really was surprised at the number of people who were wearing his shirts…Sometimes when you give a person a T-Shirt, they’ll wear it and sometimes they’re unaware of what it says on the back and wha the message is they’re trying to convey.”
* Meanwhile, from the Tribune…
Gov. Pat Quinn struck a class warfare theme today in a plea to Democratic Party faithful to turn out a big vote this fall to defeat Republicans with pockets as deep as “King Midas.”
The re-election seeking Quinn and fellow Democrats drummed away on the theme of the common-man-versus-the-privileged-class on Governor’s Day at the Illinois State
They sought to rev up support in a year they won’t have home-state Democrat Barack Obama pulling Democrats to the polls but must compete against Republican Bruce Rauner pouring millions of his own dollars into his race against Quinn. […]
Quinn also cited John F. Kennedy in drawing a contrast with Rauner. Kennedy once said “a rising tide will lift all boats,” but Rauner’s philosophy is that a rising tide “lifts all yachts.”
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Cross alleges lots and lots and lots of… stuff
Wednesday, Aug 13, 2014 - Posted by Rich Miller
* Tom Cross’ campaign probably should’ve done this in small stages. I don’t think I’ve seen a longer press release this year…
State Senator and Democrat candidate for State Treasurer Mike Frerichs has consistently touted his financial experience, yet a review of his performance as Champaign Auditor calls into question his claims. In fact, based on his past performance, Frerichs’ financial mistakes coupled with his own patronage program ended up costing Champaign County taxpayers millions of dollars.
“Based upon the facts of his poor performance as auditor coupled with the patronage scandals he was engaged in, there truly is only one conclusion: Mike Frerichs is not ready to be Illinois’ next Treasurer,” said State Representative and Assistant House Republican Leader Bill Mitchell.
Frerichs’ Claims On The Campaign Trail
“I’m a certified public finance officer and I think people want someone who has some experience in government finance in this office.” (Mike Frerichs, WMAY Interview, 6/4/14)
“I think the state treasurer is the fiscal watchdog for the state, but the main responsibility of the treasurer is to oversee the state’s investments. As a certified public finance officer and former county auditor, that’s going to be my main priority.” (Mike Frerichs, 5/29/14)
“While Tom Cross is better known than Mike Frerichs on August 1st, we have the resources and game plan to turn that around and show voters there’s a clear choice between a prepared and experienced finance official and a twenty year Springfield insider to be the next state Treasurer. Mike Frerichs has detailed plans to clean up the mess created by the current Republican Treasurer and when voters tune into the race in the fall, we are confident they will choose what Mike has been talking about for over a year now; bringing competency and transparency to the Treasurer’s office while making wise investments to help build our economy from the middle out.” (Capitol Fax, August 1, 2014)
Mike Frerichs’ ERI Program Costs Taxpayers $3 Million
Even with the stock market in a steep decline since September 11, 2001, in 2003 County Auditor Mike Frerichs proposed an Early Retirement Initiative (ERI) that he said would be a ‘good tool to deal with budgetary problems for the county board.’ (The Champaign News-Gazette, 7/3/03)
The County Board, utilizing analysis and data from Mike Frerichs, approved the Frerichs ERI plan, but not without objection. Board Member Scott Tapley warned that with the past market decline and rising pension costs, the Frerichs’ ERI program would only add further pension costs. (The Champaign News-Gazette, 7/25/03)
Within months, Tapley was proven right as Frerichs’ plan failed to achieve savings and in fact created $2.5 million in new unfunded liability for the county catapulting Champaign County’s annual IMRF contribution from $755,769 to over $1,797,000. (Source: IMRF Champaign County Employer Rates)
Frerichs Mistakes Cost Taxpayers Over $3 Million:
To address the funding shortfall created by Frerichs’ ERI program, in 2005 the Champaign County Board approved a bonding issuance to pay off pension obligations for IMRF. The $2.75 million in bonds were issued to pay off the county’s funding shortfall. (source: Champaign County Board Meetings, 12/20/2005)
The bonds to fund the shortfall of Frerichs’ failed ERI program were finally paid off nine years later in January, 2014 with a total cost to taxpayers of over $3 million. (source: Champaign County Records)
“Mike Frerichs used bad math to fuel bad policy that cost Champaign County taxpayers over $3 million,” said former Champaign County Clerk Mark Shelden. “Auditor Frerichs was warned that the market was in decline and that this had the potential to significantly increase costs, but he ignored the facts and the warnings and recklessly proceeded with a plan that ultimately cost taxpayers millions.”
County Board Removes Frerichs As IMRF Officer:
As a result of Frerichs’ reckless policy, he was dismissed by the Champaign County Board as the County’s agent with Illinois Municipal Retirement Fund (IMRF). Frerichs
fought the dismissal, but it was approved by the County Board by a bipartisan vote of 17-5. (source: Champaign County Board Resolution No. 5643)
“Mike Frerichs used poor planning to implement a plan that underfunded pensions while costing Champaign taxpayers millions,” said former Champaign County Board Member Stephanie Holderfield. “As a result of his poor planning and bad management in 2003, Champaign taxpayers were forced to pay for his mistakes until January of this year. Mike Frerichs simply isn’t ready to manage taxpayer money at any level.”
Frerichs Attempts To Blame Market, But Defense Falls Flat:
During his 2004 re-election campaign for Auditor, Frerichs’ campaign attempted to blame the mistakes on market forces, yet the market had already suffered its worst losses before Frerichs introduced his ERI plan. In fact, the Dow Jones Industrial Average dropped over 2,000 points between January 2001 and December 2002. (source: Champaign News Gazette 10/27/2004, www.djaverages.com)
“Throughout this whole event, Mike Frerichs refused to accept responsibility for this failed plan – blaming the error on anything and everyone but himself,” said former Champaign County Clerk Mark Shelden. “But the simple fact is that he was removed from his role because he ignored the warnings, he didn’t understand the process and applied bad math that cost taxpayers $3 million.”
Now, as Mike Frerichs touts his past experience as Auditor as a key point in his campaign, many believe Frerichs’ record deserves a closer look.
“The best predictor of future performance is past performance and it is clear that Mike Frerichs does not have the skillset to effectively safeguard the hard-earned tax dollars of Illinois’ families,” said State Representative Adam Brown.
Rampant Patronage & Alleged Ghost Payroll
Mike Frerichs is at the epicenter of two of the most publicized and costly patronage scandals in recent Champaign County history. Patronage scandals that ended up depriving taxpayers of the honest delivery of services, while costing them over $100,000.
Frerichs’ Campaign Rhetoric:
“I think it’s time we have a Treasurer who knows the office, wants to be Treasurer and will end the political games from the outset. Our elected officials in Springfield need to work for the middle class, not for each other for political benefit.” (source: Mike Frerichs Facebook page, 7/12/14)
“Mixing state business and political activity is unacceptable. Unfortunately, this is a recurring problem for the current Republican Treasurer. From spending taxpayer dollars
on promotional brochures to Republican donors to asking government employees to perform campaign work, it’s time to take politics out of the Treasurer’s office. (source: Mike Frerichs Facebook page, 2/11/2014)
Mike Frerichs’ Focus On Patronage Costs Taxpayers Thousands
At Frerichs’ Urging, His Campaign Chairman Received Taxpayer-Paid Post:
“At one end of the Brookens Administrative Center, Curt Deedrich, a 44-year-old Pesotum farmer and multitownship township assessor, was smiling for the television cameras after narrowly being appointed to a four-year term as Champaign County supervisor of assessments … Deedrich was elected township assessor as a Democrat and he also served as campaign chairman for Michael Frerichs’ two unsuccessful campaigns for state representative in 1998 and 2000.” (“Pesotum Man Gets Top Assessor Post,”The Champaign News-Gazette, 5/7/04)
Frerichs Pushed For Deedrich To Get Patronage Post:
“After a big fight, Deedrich and his political sponsor, current state Sen. Mike Frerichs, for whom Deedrich had worked as a campaign manager, persuaded a majority of the county board to approve Deedrich’s appointment.” (“County Positions Should Be Filled On Merit, Not Loyalty,” The Champaign News-Gazette, 4/6/07)
Frerichs Patronage Program Led To The Bypassing A Better-Qualified Employee:
“The Deedrich appointment three years ago stemmed from the dual desire of county board Democrats both to flex their newfound political muscle by filling county jobs with patronage appointments and to satisfy current state Sen. Mike Frerichs’ desire to find a good job for his former campaign manager. So in a controversial decision, board Democrats passed over a better-qualified employee in the supervisor of assessments office and named Deedrich to what had been a nonpolitical post.” (“Deedrich Follies Are County Board’s Doing,” The Champaign News-Gazette, 6/10/07)
The Results Of Frerichs Patronage Program Called A “Disaster”:
“But he’s been such a disaster that it’s unlikely Deedrich will win reappointment when his term expires next year. That’s assuming he hasn’t been fired by then.” (“County Positions Should Be Filled On Merit, Not Loyalty,” The Champaign News-Gazette, 4/6/07)
Frerichs Patronage Program Also Called A “Fiasco” & “Awful”:
“To call the Deedrich chapter in county government a fiasco from beginning to end minimizes just how truly awful it was. Suffice it to say, he was the wrong person
appointed for the wrong reason to the wrong job.” (“Deedrich Follies Are County Board’s Doing, The Champaign News-Gazette, 6/10/07)
Frerichs Patronage Program Costly For Taxpayers – Scandal Cost $100,000:
“Curt Deedrich’s contentious three-year tenure as Champaign County’s supervisor of assessments ended with a $100,000 settlement.” (“Board Accepts Deedrich Resignation, Approves $100,000 Settlement,” The Champaign News-Gazette, 6/5/07)
Deedrich Resigns Amidst Resolution Calling For Dismissal:
According to the resolution that resulted in Deedrich’s dismissal, the county alleged that Deedrich changed a township assessor’s work on a Mahomet gravel pit and environs in 2006 without informing the assessor. In March 2007, he misrepresented the work to be performed by another official, used e-mail to urge legislators to investigate an Illinois Department of Revenue practice about the exempt status of hospitals, suggested school districts could sue the county on instant assessment and gave instructions to township assessors that may not be in accordance with the law.
“He was accused of harassment last year, but the board voted that he had not committed that offense – while admonishing Deedrich to improve relations with staff. At one point in his tenure, he was locked out of his office, but his attorney, Glenn Stanko of Champaign, had that decision reversed.” (“Board Accepts Deedrich Resignation, Approves $100,000 Settlement,” The Champaign News-Gazette, 6/5/07)
Frerichs Patronage 2.0: Program Didn’t End With Deedrich
Frerichs Pushes Fabri For County Auditor Post:
“[Tony] Fabri had the backing of two former auditors at the meeting, Frerichs and Urbana Mayor Laurel Prussing.”(“Champaign County Democrats Nominate Fabri For Auditor,” The Champaign News-Gazette, 1/4/07)
Fabri Decides He Doesn’t Need To Show Up For Work:
“County government telephone records indicate that Champaign County Auditor Tony Fabri has been missing from his office for well over half the workdays in the last year, including two different periods when he apparently was gone for more than a month.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
But Fabri Does Find Time To Make Political Calls To Senator Frerichs:
“While Fabri said he is careful not to make potentially political phone calls from his desk phone, the records show he made calls from his desk phone to county board member Claudia Gross, state Sen. Mike Frerichs and Urbana Mayor Laurel Prussing, all Democrats.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
And Frerichs Gives Fabri Advice On How To Avoid Ghost-Payroll Criticism:
Fabri Said Frerichs, Who Preceded Him As County Auditor, Warned There Might Be Sniping About His Attendance At Work. “He said that when you start hearing complaints to just walk around Brookens and say ‘Hi’ to everyone and make sure that they see you,’ Fabri recounted.” (“Phone Records Show County Auditor Frequently Absent,” The Champaign News-Gazette, 3/15/09)
Frerichs Admits Fabri Doesn’t Show Up For Work & Doesn’t Do A Good Job, But Urges Voters To Support Him Anyway:
Frerichs, A Longtime Ally Of Fabri’s, Urged Voters To Look Beyond The Charges Of Absenteeism Against Fabri. “I’m not saying that the current auditor shows up every day and does the best job.” (“Voters To Decide Whether To Keep Elected Auditor,” The Champaign News-Gazette, 3/29/11)
Fabri “Steal[ing] A Living,” But Frerichs To Blame:
“As an elected official, Fabri sets his own hours. If he chooses to steal a living from the taxpayers, they can only blame themselves for electing him. Sadly, it’s not just Fabri who is responsible for this outrage. He never would have been in the position to take advantage of the public if he hadn’t had an influential political patron (former auditor and current state Sen. Michael Frerichs) and supportive friends among the Democrats on the county board.” (“Tony’s Excellent Adventure,” The Champaign News-Gazette, 3/18/09)
“As Auditor and a State Senator, Mike Frerichs fueled a patronage driven program that put unqualified people in offices of significant public trust. Mike Frerichs’ patronage program cost taxpayers over $100,000 while clearly putting people in positions they had no business serving in. The simple fact is that at every opportunity Mike Frerichs has used his position to advance patronage at the expense of better-qualified people and honest service to the public,” said Pat Brady, former federal prosecutor. “It’s simply appalling that Mike Frerichs is giving one of his patronage employees tips on how to avoid being criticized as a ghost-payroller. Mike Frerichs represents the politics of the past, the failed politics that has sent Governors to jail and led to our culture of corruption. Mike Frerichs is unprepared, reckless and not ready to lead.”
Whew.
Get all that?
* The AP has the Frerichs response…
Frerichs, of Champaign, issued a written statement to The Associated Press confirming basic facts behind the allegations but denying wrongdoing. Instead, he decried the Cross attack as “revisionist history.”
“Tom Cross’ media tour highlights exactly what is wrong with his run for treasurer: loose with the facts and worried more about running against his opponent than running with a vision for the office,” Zach Koutsky, Frerichs’ campaign manager said.
Frerichs blamed the retirement program losses on market forces and decisions made by county leaders. Tuesday, Koutsky noted the county board changed its management of the program as part of, “a greater restructuring plan by the board, not a criticism of Frerichs’ work as auditor.”
In response to the allegations of patronage, Frerichs also says he never employed the Democrats in his post as auditor.
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Rauner buys champion, Repubs go on attack
Wednesday, Aug 13, 2014 - Posted by Rich Miller
* Rauner paid over $56K for the steer and is donating it to the U of I’s ag college…
The Republican candidate for Illinois governor placed a winning bid on a champion steer at the Illinois State Fair.
Bruce Rauner is a Winnetka businessman. His campaign says he and wife Diana, as well as the Friends of Pike County 4-H bought the Land of Lincoln Grand Champion Steer at the Governor’s Sale of Champions at the fairgrounds Tuesday. His spokesman says Rauner is vacationing in Montana, so the bid on the steer was made by others on his behalf.
The auction was hosted by Rauner’s Nov. 4 election rival, Democratic Gov. Pat Quinn.
No irony there.
Heh.
* Meanwhile, this is from a press release…
Today is Governor’s Day at the Illinois State Fair. But for the second year in a row, Pat Quinn and Illinois Democrats won’t hold their traditional all-out rally. Why? With a laundry list of broken promises, record job losses and multiple criminal investigations, Pat Quinn and his allies have little cause to rally.
If Pat Quinn won’t share his record on Governor’s Day, the Illinois Republican Party will do it for him throughout the day. The ILGOP begins this morning by launching PatQuinnocchio.com, a website dedicated to exposing Pat Quinn’s broken promises – from raising taxes and cutting education to record job losses and Blagojevich-style corruption.
“As a career politician, Pat Quinn has broken almost every major promise he’s made,” Illinois GOP Chairman Tim Schneider said. “After saying he wouldn’t raise taxes on middle-class families, he increased taxes on everyone by 67% and now wants to make his tax hike permanent. Pat Quinn promised he’d invest in education, but cut it by $500 million instead. And he said job creation was a top priority, but Illinois leads the Midwest in job losses. Illinois has had enough of Pat Quinnocchio’s lies, and we’re going to hold him accountable in November.”
The ILGOP will advise of further Governor’s Day activities later this morning.
The photo you see at the website…
Oof.
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Here we go again?
Wednesday, Aug 13, 2014 - Posted by Rich Miller
* Tribune…
Republican legislative leaders on Tuesday accused Democratic Gov. Pat Quinn of tapping into a $20 million pot of cash to dangle in front of groups whose support he wants in the fall election, saying the effort “looks and smells” like a new version of the 2010 anti-violence program now under state and federal scrutiny.
The money Republicans highlighted represents a new allocation to the Illinois Department of Labor for social programs similar to those in Quinn’s much-criticized Neighborhood Recovery Initiative. Quinn aides, however, maintained the money is going into job-training programs established even before the 2010 anti-violence initiative began.
Senate Republican leader Christine Radogno contended Quinn “squirreled away” the new funds and already has directed $11.5 million to the Department of Commerce and Economic Opportunity and the Department of Human Services. She wondered whether the money would be misspent, saying it “looks and smells just like” the 2010 program and questioning whether the Quinn administration had learned from previous mistakes. […]
House Republican leader Jim Durkin of Western Springs recounted how GOP lawmakers were stonewalled when they sought explanations from Democratic lawmakers about the purpose of the money when it was inserted into the budget during the end of the spring session. Durkin warned the new dollars come with the same “fingerprints” as Quinn’s flawed 2010 initiative.
The charge carries little weight. This is a legit jobs program being run mainly by DCEO, which has run summer jobs programs for years.
* Greg Hinz…
The money is going to a job-training program with “rigorous” standards that involves both DCEO and DHS, the spokesman said. “DCEO has for many years — long before the defunct NRI program began — run several job training programs for youth and young adults that continue today.”
A source with knowledge of the matter said Mr. Quinn did not ask for the money and that it was inserted in the budget at the last minute at the behest of House Speaker Michael Madigan.
Mr. Madigan’s spokesman did not return a call seeking comment.
Appropriating money for one department that ends up being spent by another is not unheard-of in government. But given the NRI experience, the subject is particularly sensitive now, with federal prosecutors confirming they are probing the MRI expenditures.
Greg is absolutely right at the end. Quinn’s botched (or worse) 2010 anti-violence program taints any and all attempts to address the issue this summer and fall.
* From the governor’s office…
The General Assembly allocated $20 million to the Dept. of Labor for “grants to state and local agencies and community providers for at-risk community support programs, after school programs, and youth employment opportunities.”
This program is employing more than 5,000 youth and young adults and we are carrying it with rigorous controls and strict oversight.
The Department of Commerce and Economic Opportunity (DCEO) has for many years - long before the defunct NRI program began - run several job training programs for youth and young adults that continue today. These programs are competitively-bid. Inter-governmental agreements allow DCEO and the Department of Human Services to administer these grant programs under strict oversight.
The link to the grant program is here.
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Quinn wants State Museum named after Dixon
Wednesday, Aug 13, 2014 - Posted by Rich Miller
* Your thoughts?…
Gov. Pat Quinn is calling for the Illinois State Museum Building in Springfield to be named after the late former U.S. Sen. Alan Dixon. Quinn’s office says the governor will announce it on Wednesday. He’s working with the Illinois General Assembly to make the designation official. Dixon died July 6 at age 86. The Democrat’s political career spanned more than 40 years. He was in the U.S. Senate from 1981 to 1993 and chaired a subcommittee of the Armed Services Committee.
Read More at: http://www.foxillinois.com/template/inews_wire/wires.regional.il/38faae9e-www.foxillinois.com.shtml#.U-t6u0hH1Nk
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Question of the day
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Unions representing both city and state police officers want a rethink…
Police union leaders on Monday urged Mayor Rahm Emanuel to modify his plan to assign 40 state troopers on 30-day loan to Chicago to serve fugitive warrants to get known criminals off the street.
Dean Angelo, president of Fraternal Order of Police Lodge 7 representing Chicago Police Officers, and Mike Powell, president of the FOP’s Illinois Trooper Lodge No. 41, said it makes more sense to assign state troopers to traffic duty to free Chicago Police officers for the “real police work” chasing fugitives.
“You’re taking troopers from rural areas out of their element and thrusting them into the big city. There should always be concern about that. That’s just a matter of geography,” Powell said.
* The response…
Chicago Police spokesman Martin Maloney responded to the FOP’s concerns in a statement that makes it clear there will be no changes in the mayor’s plan. City and state police offiicals are “working closely together to ensure this expanded partnership is a success for all involved,” Maloney wrote.
“This expansion of our existing partnership will now have State Police officers working side-by-side with CPD officers, ensuring the safety of all officers and putting more resources behind our efforts to arrest wanted fugitives. The officers will be working in integrated teams and they will all have access to CPD’s real-time intelligence, ensuring that knowledge of the geography or crime conditions are not an issue,” Maloney wrote.
* The Question: Do you agree with the police unions or with city and state police officials? Take the poll and then explain your answer in comments, please.
web polls
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Words to live by
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Rep. Greg Harris…
Lots of us who struggle with depression and addiction all our lives often look and act the same as everyone else.
Just because we look successful, or smart or caring or ‘together’ on the outside doesn’t mean there isn’t an army of assorted demons flying around on the inside looking for some small crevice to jump out. Even famous people have demons who win sometimes.
So to everyone else who is getting up this morning to fight another day….Well Done
Rest in peace, Robin Williams.
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The best and worst counties to live in
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Reboot…
The New York Times recently published an interactive map citing the hardest places to live in the U.S.
The article ranks all 3,135 U.S. counties on ease of life based on the following factors: median household income, education, unemployment rate, disability rate, life expectancy and obesity rate.
* The 25 “best” Illinois counties…
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* The 25 “worst” Illinois counties…
Discuss.
And if Illinois county geography isn’t your strong point, click here for the respective lists.
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Today’s quotable
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Bruce Rauner…
“Behavior inside large organizations unfortunately is not always perfect,” he said. “And nobody can control every element and every behavior.”
That’s mostly correct. But I wonder if he believes the same applies to state government?
Perhaps after the election…
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Signed and vetoed
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Signed…
Motorists who are pulled over in Illinois no longer need to hand over their driver’s license in exchange for a citation under a bill signed into law on Saturday.
Senate Bill 2583, sponsored by Sen. Michael Noland, D-Elgin, and State Rep. John D’Amico, D-Chicago, eliminates the requirement that drivers post their license as bail for certain traffic offenses. The new law allows the motorist’s signature on the citation to suffice as a guarantee that they will either appear in court or pay the required fines.
The law goes into effect immediately. As under the old law, the Secretary of State can suspend the driving privileges of motorists who fail to comply with the citation.
Excellent bill. Way past due.
* Vetoed…
Gov. Pat Quinn [yesterday] vetoed a bill that would have let big trucks go faster on interstate highways in the Chicago area, citing recent semitrailer truck crashes that have led to deaths.
The measure would have raised the interstate speed limit from 55 to 60 mph in Cook, DuPage, Kane, Lake, McHenry and Will counties under legislation pushed by Sen. Jim Oberweis, a Sugar Grove Republican running for U.S. Senate against Democratic Sen. Dick Durbin.
That isn’t much of a speed increase. From his veto message…
Research has shown a correlation between increased speed limits and increased highway deaths. Higher travel speeds lengthen stopping distances, making it more difficult to react to an emergency in time. Speed also exacerbates the size and weight differences between large trucks and passenger vehicles, leading to more severe crashes.
Um, if increasing speed limits leads to increased highway deaths, why did he sign a bill to raise the limit to 70 mph?
But it is true that higher speeds lengthen stopping distances. I bought a camper this year and I have to always be careful about leaving enough room in front of me when I’m pulling it behind my truck. Pulling that thing can be downright scary sometimes.
Your thoughts?
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Frerichs pays property taxes
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Why he didn’t do this before he announced his statewide bid is simply beyond me. Greg Hinz…
The Democratic nominee for state treasurer has decided to pay his property taxes after all.
With political foes circling, state Sen. Michael Frerichs has reversed his prior decision not to pay just over $1,800 due for taxes on his legislative office in Champaign and has written a check from his campaign account covering levies due for six years, back to 2008.
Mr. Frerichs still believes that he was exempt, since he uses the office strictly for public purposes and rents the space from the Champaign-Urbana Mass Transit District, a public agency. But he’ll let Senate President John Culllerton appeal the underlying question of law, said Frerich Campaign Manager Zach Koutsky.
After Crain’s broke the story about the tax debt last week, “we got together and said ‘This is ridiculous,’” Mr. Koutsky said. “We’ll continue to appeal it, but in the mean time, let’s just pay it.”
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* From a press release…
Bruce Rauner today called thousands of homeowners across Illinois and began a significant digital ad campaign to officially launch FreezeMyTaxes.com, a statewide petition to let voters add their voices in support of Rauner’s initiative to freeze property taxes.
“Property taxes are out of control and Pat Quinn’s done nothing about it,” Rauner said in his call to homeowners. “We need a property tax freeze in Illinois – no more property tax hikes without taxpayer approval.”
Joan Zaleski, a homeowner in St. Charles, also called homeowners urging them to sign the FreezeMyTaxes.com petition.
“I’m a a homeowner just like you,” Zaleski began in her call. “Let’s put an end to these career politicians raising our property taxes without our approval. We need Bruce Rauner’s property tax freeze – sign the petition right now at FreezeMyTaxes.com.”
Under Pat Quinn’s failed leadership, as both Lieutenant Governor and Governor, Illinois property taxes increased from 7th highest in the nation in 2005 to 2nd highest today. Property tax rates have increased in each region of the state every year that Quinn has been governor.
* The Rauner robocall…
Full script…
“Hello, this is Bruce Rauner. I’m calling with an important message about your property taxes. Property taxes are out of control and Pat Quinn’s done nothing about it. That’s just plain wrong. We need a property tax freeze in Illinois – no more property tax hikes without taxpayer approval. That’s why I’m launching a petition at www.FreezeMyTaxes.com. If you agree that we need a property tax freeze, go online right now and sign the petition at FreezeMyTaxes.com. Help me stop career politicians from raising your property taxes without your approval. Paid for by Citizens for Rauner, Inc. 312-583-0704.”
* The Zaleski robocall…
Script…
“Hi, this is Joan from St. Charles. I’m a homeowner just like you. Property taxes are out of control and Pat Quinn’s done nothing about it. That’s why I support Bruce Rauner’s call for a property tax freeze. And now you can too. Go online right now to www.FreezeMyTaxes.com and sign a petition to freeze our property taxes. Let’s put an end to these career politicians raising our property taxes without our approval. We need Bruce Rauner’s property tax freeze – sign the petition right now at FreezeMyTaxes.com. Paid for by Citizens for Rauner, Inc. 312-583-0704.”
Discuss.
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Leave the butter cow aloooooone!
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Scott Reeder…
My daughter tugged on my hand and said, “Come on Dad let’s see the Butter Cow.”
So we walked over to the Dairy Building at the Illinois State Fair and gawked at 500 pounds of butter sculpted into the shape of a life-size cow.
The bovine is encased in glass and refrigerated to preserve it during sweltering August days.
I couldn’t help but think what a perfect illustration this is of Illinois State Government.
Where else but Springfield would a shrine be generated out of fat?
* I love Scott. I really do. I enjoy his company and I enjoy reading his columns. But he sure does love to pick on the State Fair. Another recent missive…
Sorry, fairs are nice but not something in which government should be involved. They have known that for quite some time in the Lone Star State.
The State Fair of Texas is operated by a nonprofit corporation that manages to take in about $8 million more than it spends each year. That money gets spent on improving the Dallas city park where the fair takes place.
So state fairs can break even. They can even turn a profit.
* Yeah, if Springfield’s metro area was as large as the Dallas metro region, the Fair would have a much larger nearby population to draw from and it would undoubtedly rake in lots more money.
So, who’s for moving the State Fair to Chicago? Anybody? Hello? Bueller?
The Texas State Fair is also the venue for the annual Red River Showdown, a college football game pitting the University of Oklahoma against arch rivals at The University of Texas. Maybe we could put the new Chicago State Fairgrounds by Wrigley Field and have the Cubs play the Cardinals all week.
* I have loved the State Fair since I was a 4-H kid growing up on a farm in Iroquois County. The State Fair was the ultimate goal of every active 4-H member. Only the best animals, projects, etc. made it to the “big show.” It was like the Oscars for 4-H kids.
The Fair rewards excellence and builds strong character traits, and that should be praised, not penny-pinched into oblivion.
I mean, do you know how many early mornings I trudged through the snow to feed my steer and scoop the poop out of his pen before breakfast so I might have a chance at the bigtime? Now, I wake up every morning and do basically the same thing, only figuratively, and I don’t usually have to trudge through snowbanks because I work out of my house when we’re not in session.
We need more of this in Illinois, not less.
All the other stuff - the carnival rides, the corn dogs, the grandstand - are just money-making sideshows to help fund the “real” Fair that someone without an ag background probably wouldn’t understand unless he or she opened his or her mind.
* But I digress. Back to the butter cow as an “only in Illinois” illustration of why this state has problems. According to the AP, Iowa, New York, Utah and Kansas all have butter cows. Iowa’s is the oldest and the first, started over 100 years ago.
Also…
Wisconsin and Indiana state fairs feature mammoth cheese carvings.
But Minnesota may come the closest to Iowa in celebration of its dairy sculptures. The state’s dairy queen — Princess Kay of the Milky Way — and her court are immortalized in butter busts.
Other state sculptures have included Darth Vader
* Wikipedia…
The history of carving food into sculptured objects is ancient. Archaeologists have found bread and pudding molds of animal and human shapes at sites from Babylon to Roman Britain. Butter sculpture is an ancient Tibetan Buddhist tradition; yak butter and dye are still used to create temporary symbols for the Tibetan New Year and other religious celebrations. […]
The earliest butter sculpture in the modern sense (as public art and not a banquet centerpiece) can be traced to the 1876 Centennial Exhibition where Caroline Shawk Brooks, a farm woman from Helena, Arkansas, displayed her Dreaming Iolanthe, a basrelief bust of a woman modeled in butter. It was kept cold with a system of layered bowls and frequent ice changes
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Behind the attack
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Department of Agriculture Director Bob Flider has been under fire recently by Bruce Rauner because he is not a farmer…
While some farmers admit they like Flider, they question his level of agriculture experience.
“I like the young man who’s ag director, but he has no farm background. If you’re going to have an ag director, have one that knows the difference between a cow and pig. Does that make sense?” said Tom Donnell, a farmer from Coles County.
Rauner recently addressed a group of farmers and state agriculture industry leaders in Logan County
“The Department of Agriculture is not run right,” Rauner said.
He suggested the problem lies with the man in charge.
“How about we have farmers and farm families in charge of the Department of Agriculture. How about if we do that? Put competent people in charge of the government who are there for the right reasons,” Rauner said.
First of all, quoting a farmer at a Rauner event isn’t exactly dipping into a pool of average farmers, although considering that most are Republicans, it might actually be accurate.
* But should being a farmer be a necessary requirement to run Ag? Flider defends himself…
“As a legislator, I worked very closely in agriculture and one of the things I’m most proud of is that when I was appointed to this position, I had all the major ag groups support my confirmation,” Flider said. […]
“I know how to build partnerships and that’s what we’ve done. I think that’s what folks in agriculture would tell you. When times were tough during the drought, we worked with FDA to save hundreds of millions of dollars worth of corn that otherwise would have gone wasted,” Flider said.
* And former Republlican state Rep. Jim Sacia leapt to Flider’s defense in a recent op-ed…
Throughout Bob’s tenure, we served together on the Conservation & Agriculture Committee, as well as many others. I served as minority spokesman on Conservation & Agriculture, and regularly discussed issues affecting the ag community with Bob.
Bob is a thoughtful, dedicated, very hard-working public servant. His observations were always clear, concise and thought-through. I respected him then; I respect him now. The allegations that he was appointed by Governor Pat Quinn and is serving with no direct experience are totally without merit.
To insinuate that being a farmer would make one a better ag director ignores the importance of his strong rural roots, his prior leadership roles including Mayor of Mount Zion and his dedicated work as a state representative. Bob serves as the director of agriculture with dedication and exceptional competence. He listens to the issues, observes the lay of the land — pun intended — and acts decisively.
Though I retired from the House in October 2013, my involvement in agriculture and observation of the political process remain.
* The Champaign News-Gazette, however, piled on…
It is, of course, relatively common for ambitious politicos who find themselves between stints in elective office to take high-profile administrative jobs in government for which they have no real qualifications. For equivalent positions in the private sector, most of them wouldn’t make it past the first job interview.
Some defend this approach on the grounds that it’s impossible to separate politics from politics. But it ought not be impossible to separate the administration of government from politics. Illinois is virtually a failed state, and one reason for that is the extent to which our elected and appointed officials have made short-term, politically expedient decisions that have had disastrous long-term consequences.
That has to stop. One way to do so is by upgrading the administrative quality of state government and getting the biggest bang for the buck. That Rauner plans to do so speaks well of his vision for changing the current business-as-usual approach.
I think there’s a case to be made for appointing the “best and brightest” to state agency directorships. However, those policy wonks often don’t make great managers, and they often find out the hard way that navigating Illinois’ political waters can be treacherous. Flider was a lobster before he was a legislator, so he really knows the ropes. That’s a plus on his side.
* And if you actually read Rauner’s ag policy brief, he heaps lots of praise on the state’s all-important economic sector. He has one quibble…
When drafting rules and regulations, our agencies should utilize science-based decision-making, and not knee-jerk politics, both for crop farms and for livestock
Yet, he never explains what those damaging “knee-jerk politics” actually are. It’s empty rhetoric.
* One more item from his ag policy report…
Especially for small family farms, innovation and entrepreneurship can make the difference between getting by and having to give up the farm. Activities like making and selling apple butter from their own trees or baking pies from their own pumpkins are precisely the sorts of activities the state should be celebrating. Creative agri-tourism provides the opportunity for farmers to share their hard work with the rest of the world.
Isn’t that a bit like Mike Dukakis going to Iowa and preaching about growing cranberries to a bunch of corn farmers?
* But back to the topic at hand. Farmers, like pretty much all special interest constituencies, love to be pandered to. And telling farmers that only a farmer can run Ag is basically just that, a pander.
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The tabula rasa effect
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* Mark Brown is amazed at recent poll results which showed 21 percent of voters think Gov. Pat Quinn is the real reformer in the race, while 46.5 percent believed Bruce Rauner was the real deal…
There’s really no denying the bloom is off the Quinn rose, some of the last petals dropping away with revelations about his administration’s mishandling of an anti-violence program that rushed out millions of dollars in grant commitments before the 2010 elections. A federal grand jury is investigating. We’ll see what happens.
Maybe we didn’t know Quinn as well as we thought we did. Maybe I didn’t know Quinn as well as I thought I did.
However, what I find more startling from the poll results is that voters now believe Rauner is some big reformer.
The Early & Often Poll found that 46.5 percent of Illinois voters consider the wealthy businessman to be a reformer.
Based on what, exactly?
Because he said so in a television commercial? Please tell me people aren’t that gullible.
Most people get most of their information on governor’s races from TV ads, particularly this early in the campaign. It’s pretty much that simple. “Earned media” doesn’t really move the needle unless it’s used in a competent paid media message.
Also, Quinn’s negatives have been awful for years, and Rauner is mainly a blank slate right now - although he did get just a plurality, so most are either not buying his act, think both of them are reformers or don’t know.
I think about the same plurality would choose Rauner over Quinn when asked to compare the two on almost any specific positive attributes right now. Quinn is deeply unpopular. Rauner is not Quinn.
The governor’s job is to make voters believe that Rauner is even worse than Quinn is. And that’s not gonna be easy, considering the governor’s numbers and particularly if his campaign spits out more goofy ads like they did yesterday.
…Adding… From a commenter…
I wonder if [Rauner] is the beneficiary of the “Peter Fitzgerald” effect? Having so much wealth and acting as a self financed candidate makes Rauner appear to be incorruptible. How do you bribe a billionaire politician?
I think that has something to do with it as well.
* Related…
* Are all Illinois governor’s race polls created equal? Chicago Tonight panel offers analysis
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A watchdog and a partner
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* The AP looks at the two running mates, Paul Vallas and Evelyn Sanguinetti…
In the past few weeks, Vallas — a former top school official in Pennsylvania, Louisiana and Connecticut — has held several solo news conferences to pick apart Rauner’s ideas, including budget proposals. The sessions, with sharp extemporaneous speeches, prompted Rauner’s campaign to deem him Quinn’s “attack dog.” […]
“I call myself a watchdog. There’s a difference,” [Vallas] told the AP. “An attack dog attacks for a no reason. A watchdog guards the house. I’m going to bark until the neighbors hear … and do something about it.”
Sanguinetti hasn’t appeared publicly on her own in Chicago, prompting claims from Quinn campaign staffers that she’s not trusted to address reporters in Illinois’ largest media market. Sanguinetti dismissed the notion as “laughable,” explaining that she’s spoken often to crowds elsewhere, such as county party dinners and to Latino organizations and women’s groups.
“My role with Bruce is to be his partner and, as I meet with agencies, to relay all of Bruce’s vision when he’s unable to be there,” Sanguinetti, the daughter of immigrants from Cuba and Ecuador, told the AP.
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*** UPDATED x1 - “Celebrity” race CANCELED ***
Tuesday, Aug 12, 2014 - Posted by Rich Miller
*** UPDATE *** Today’s “celebrity” harness race has been canceled. Apparently, all the other cancellations have created a crowded card today and they can’t get to us. So, maybe tomorrow or Thursday. I’ll let you know.
[ *** End Of Update *** ]
* SJ-R…
Horsemen worked in their barns and watched the sky instead of racing at the Illinois State Fair Monday afternoon as all racing for the day was once again canceled due to unfavorable track conditions.
Heavy rain Thursday, a morning shower Monday and bits of rain in between forced officials to cancel races on Friday, Saturday and Monday because the 1-mile track was too muddy. But officials hope rescheduled races set for today, Wednesday and Thursday will go off without any trouble.
“I’ve been doing this for 20 years, and there has never been three cancellations of horse racing,” state fair race manager Jim Hannon said Monday.
“So far we’re keeping our fingers crossed. I’m looking at the track right now. We’ll be ready to race tomorrow if there’s no rain,” he said, adding that there isn’t much workers can do aside from watch the dirt dry and hope it doesn’t get wet again.
I’ll be competing once again in the “celebrity” harness race today at 1 o’clock, barring yet another rain cancellation. The forecast looks pretty good, so keep your fingers crossed. So take a late lunch break at the fairgrounds today and bring a corn dog to the Grandstand.
* By the way, because of this race and a big birthday party for members of my family, blogging could be pretty light this afternoon. I’ll have my laptop with me, though.
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Yeesh
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* This is a problem with most really old basements, but yuck, man. Kurt Erickson…
Reporters in the Capitol are typically used to dealing with shifty and unsavory characters.
Recently, however, even the most grizzled veterans were somewhat frazzled by the appearance of an unwanted visitor in the bathroom nearest to the basement press room.
And no, it wasn’t one of our elected officials.
According to the janitorial crew who keep the place tidy, there was a rat in the newly refurbished west wing water closet.
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Today’s number: 4.8 percent
Tuesday, Aug 12, 2014 - Posted by Rich Miller
* The New Republic…
“The realignment of the parties in the South following the Civil Rights movement of the 1960s has created a reality in which today most African American voters are Democrats and most white conservative voters are Republicans.”
That means that, as Democrats have lost ground in statehouses in Alabama and elsewhere across the South, so have African Americans.
According to research by David Bositis, in 1994, 99.5 percent of black state legislators in the South served in the majority. By 2010, the percentage had fallen to 50.5. Today, it’s a mere 4.8 percent.
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Question of the day
Monday, Aug 11, 2014 - Posted by Rich Miller
* From a press release…
The Quinn campaign today released a new television ad focusing on Bruce Rauner’s record of laying off workers, outsourcing jobs overseas, jumping through elite tax loopholes, and stashing cash in the Cayman Islands- a notorious tax haven.
Time and time again, Bruce Rauner has shown his willingness to game the system in order to get rich at the expense of everyday people in ways that run counter to his professed love for Illinois. The 30-second TV ad, which includes cited facts about Rauner’s record, will begin running statewide on Tuesday.
* The ad…
* The Question: What do you think of Gov. Quinn’s new TV ad? Explain, please.
…Adding… Ah, heck, let’s do a poll, too…
survey tool
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* Tribune…
It may not feel like it to Chicago-area drivers, but Illinois is the third least expensive state to operate a vehicle, according to a study released Monday by personal finance site Bankrate.com.
Illinois’ drivers spend on average $343 a year in repairs, $698 in insurance and $947 in gasoline, for a grand total of $1,999 in yearly costs, which puts Illinois just below Ohio and Iowa, named the cheapest state at $1,942. (Iowa has the cheapest insurance rates in the country, Bankrate said, and car repairs are also relatively inexpensive.)
Of course, Chicagoland motorists tend to spend much more than drivers across the state on average. Using the average price of gas last year in Chicago versus the Illinois average with Bankrate’s calulation for average gallons used, Chicagoans paid $980 for gas last year compared with $947 statewide.
The most expensive state in which to operate a vehicle was Wyoming, according to Bankrate, with yearly average costs of $2,705.
Chicagoans apparently don’t drive as much as Downstaters, so that would explain why their costs aren’t that much higher.
* But back to reality…
A new report by Realtytrac shows Illinois among the top 10 states in the number of home foreclosures.
The numbers come at a time when homeownership rates in the nation have fallen to a 19-year low.
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Mike Smith
Monday, Aug 11, 2014 - Posted by Rich Miller
* Arrangements for former state Rep. Mike Smith…
A visitation will be held on Wednesday, August 13, 2014 from 3-7, at the Oaks-Hines Funeral Home in Canton. A funeral services will be on Thursday, August 14, 2014 at 10 am, at the funeral home.
* Journal Star…
Longtime friends and political colleagues from both sides of the aisle spent Saturday recalling “a good soul” — hardworking, even-tempered, kind lawmaker who died too soon.
Former state Rep. Mike Smith, D-Canton, died overnight Friday at age 48 of a heart attack.
The longtime state lawmaker, who left the Legislature in 2011 after a 16-year career and then served on the Illinois Educational Labor Relations Board, will be “remembered as one of the truly nice guys in the Legislature,” onetime colleague Sen. Dave Koehler, D-Peoria, said Saturday afternoon.
“Everybody was his friend,” he said. “He just had that kind of personality and that kind of charm.”
I lost count of the number of texts, e-mails and phone calls I received over the weekend pointing me to this and other stories.
* The man who defeated Smith in 2010 had a very classy statement…
Statement from Rep. Mike Unes on the passing of his predecessor, Rep. Mike Smith, overnight.
“I was very saddened to hear of the passing of Rep. Mike Smith. My sincere prayers and the prayers of our region are with his family and friends. I always found Mike to be a kind, caring man who cared deeply about public service. His service to our region will not be forgotten. He will be missed by all who had the privilege of knowing him.”
* More…
Illinois Gov. Pat Quinn says that Smith set an example for what service to the people of his district and the people of Illinois should be. “Our thoughts are with his family and numbers friends who may be comforted by his legacy of service,” says Quinn of Smith’s passing.
Illinois House Speaker Michael Madigan praised his dedication to both his district and to education. “No one worked more tirelessly on behalf of our school children than Mike Smith. Mike Smith always had a very keen interest in looking after the well-being of Canton and central Illinois.”
Mike was the youngest member of the House when he was first elected. He had health issues for years that he was never able to personally overcome. I’m really sorry to see him go.
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Polling average: Rauner 7-8 points ahead
Monday, Aug 11, 2014 - Posted by Rich Miller
* Another day, another poll…
According to a survey by Gravis Marketing for Human Events magazine, Mr. Rauner leads Mr. Quinn by 8 points among likely election voters, with 48 percent for the Republican challenger and 40 percent for the Democratic incumbent. A considerable 12 percent of voters are reported as undecided, many of them Democrats.
Both men improved their standing slightly from the last Gravis survey in April, when the numbers were 43 percent to 35 percent.
The survey, which has an error margin of plus or minus 4 percent, includes only a portion of Mr. Quinn’s recent Cayman Islands/Rauner’s rich assault. But if Mr. Quinn is drawing only 31 percent of the independent vote, he’s going to have a problem in the Nov. 4 election.
From the pollster…
The political poll was completed using Gravis Marketing Internet Panels combined with traditional telephone responses. The results of this poll were weighted 20% via Gravis Internet Panels & 80% through an automated telephone survey.
Hmm.
* Huffpo included the survey in its polling chart…
Real Clear Politics has not yet plugged in this new survey. RCP’s average is a seven-point led for Rauner, which is only a point away from HuffPo’s.
* Meanwhile…
Back to Gravis, which showed Mr. Durbin with a rather narrow 48 percent to 38 percent lead over Mr. Oberweis, with 14 percent undecided. If true, it’s not a very impressive lead.
Mr.Durbin’s campaign had no immediate response to the poll. But he has been furiously campaigning of late, a sign that he’s a smart politician, or that he’s a tad concerned, or perhaps a bit of both.
For those Democrats who think Winter Springs, Fla.-based Gravis might have stacked the deck, the poll found President Barack Obama with an only slightly negative job performance rating, 48 percent negative to 45 percent positive, which is far better than his national figure and a sign that the president from Chicago retains considerable home-state loyalty.
The HuffPo average in this race is Durbin +11.75.
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Quinn demanding debates
Monday, Aug 11, 2014 - Posted by Rich Miller
* Usually, when a candidate is complaining that his or her opponent is dodging debates, that means the candidate is trailing badly. From a press release…
Below is the statement of Quinn for Illinois Deputy Press Secretary Izabela Miltko following news that Republican billionaire Bruce Rauner fled the state once more to one of his out-of-state luxury properties, a 6,000 square foot, $2.2 million ranch in an exclusive area of Montana on the edge of Yellowstone National Park. Rauner has so far refused participation in any debates for the 2014 general election campaign for governor.
“Harry Truman said if you can’t stand the heat, get out of the kitchen. But with Bruce Rauner, the question becomes, “Which kitchen?” since he owns so many.
“Faced with questions about his troubling business record, his stashing cash in the Cayman Islands, and his refusal to release his full tax records; Bruce Rauner has again retreated to his Montana ranch that helped him avoid paying his fair share of taxes.
“But Bruce Rauner is not just dodging tough questions: he’s also dodging debates.
“Mr. Rauner may have nine luxury properties to flee to when the going gets tough, but he can’t hide forever from a debate on the issues that the people of Illinois deserve.”
Below is a full list of the debates for which Governor Quinn has accepted the invitation to participate. Bruce Rauner to date has refused participation.
Sept 17th: Daily Herald
Oct. 7th: University of Illinois in Champaign
Oct. 9th: League of Women Voters/ PBS Peoria
Oct. 14th: Urban League and Business Leadership DuSable Museum
Oct 16th: League of Women Voters / ABC7 Chicago
Oct. 19th: Elmhurst College
Oct. 23 - NBC5/U of C Institute of Politics
Oct. 30th: WTTW/ Chicago Tonight
* Other stuff…
* Rauner splashes cash around to help fellow Republicans: Since the start of 2013, the Rauners have made 119 political contributions — giving a total of more than $265,000 — to 75 Republican organizations across Illinois.
* Gov race spending soars, but ‘you ain’t seen nothing yet’
* Hate to bug you, Gov. Quinn or Mr. Rauner, but try this…
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New AARP poll shows serious anxiety
Monday, Aug 11, 2014 - Posted by Rich Miller
* AARP has a new poll of Illinoisans aged 50 and over. Click here to read it all. Let’s start with the politics. Bruce Rauner leads Gov. Pat Quinn 48-39…
Again, the governor has base problems.
* President Obama’s job approval rating is upside down among the 50+ crowd…
* But the real story here is the deep anxiety levels among the aging and aged. For instance, 61 percent of non-retirees say they have or will delay their retirement for financial reasons. And 76 percent of all of those polled say the Illinois economy is bad, with 46 percent saying it’s “very bad”…
* Almost two-thirds say their income is falling behind their cost of living…
* “Looking ahead to the next five years or so, do you feel more hopeful and confident, or more worried and concerned about being able to achieve your economic and financial goals?” More worried and concerned are in red…
* “Voters are assigned 20 points for each of five economic concerns about which they say they worry very or somewhat often. A minimum score of 0 reflects no economic anxiety, while a maximum score of 100 indicates a great deal of economic anxiety”…
It isn’t difficult to see why Bruce Rauner keeps bringing up the tax issue every chance he gets.
* On to other concerns. 64 percent said it was important to them “that the next governor preserve access to reliable, affordable landline service in Illinois,” with half saying it was “very important”…
* “How important is this issue in helping you make your voting decisions this year? - Helping older people and the disabled live independently.” 79 percent said it was important, with 65 percent saying “very important”…
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Today’s number: 32 percent
Monday, Aug 11, 2014 - Posted by Rich Miller
* From last week…
Gov. Pat Quinn’s campaign says the 2013 hiring of an $80,000 per year policy analyst at the state’s transportation agency had nothing to do with politics.
But, records show Edward M. Healy, 29, served as chairman of a campaign fund that had close connections to the Chicago Democrat’s campaign until June of that year.
Healy, who serves as a public transportation policy analyst for the Illinois Department of Transportation, chaired the Stronger Illinois Committee, which raised money from labor unions and funneled it to Democratic candidates running in the 2012 election for the General Assembly
The executive director of the Stronger Illinois committee was Cheryl Byers, a longtime Quinn friend and supporter who is now back on the governor’s campaign payroll as political director after helping him win the race for governor in 2010.
Byers is considerably more than just “a longtime Quinn friend.”
* And most of the money raised by the committee didn’t get funneled into legislative campaigns. Take a look at this breakdown of the Stronger Illinois Committee’s finances…
* Total money raised: 22 receipts totaling $227,800
* Transfers out to campaigns: 142 Expenditures totaling $74,010
* Total expenditures excluding transfers out: 136 Expenditures totaling $150,935.66
* Cheryl Byers, payroll and reimbursements: 36 Expenditures totaling $77,409.08
* Taxes: 32 Expenditures totaling $43,149.24
* Rent: 24 Expenditures totaling $6,000
Transfers out to campaigns totaled a mere 32 percent of total funds raised. Expenditures were twice that of transfers out, and Byers’ pay and reimbursements also exceeded transfers out.
Sheesh.
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* Last October, Bernie Schoenburg tried to get some answers from Bruce Rauner about the candidate’s land holdings outside Illinois. After multiple attempts, he didn’t succeed…
I asked why he was reluctant to provide specifics.
“There’s no hiding here,” Rauner said. “We’ve got to focus like a laser. … You know what? At the right time, we’ll be talking in detail about all my investments and all my tax returns and all that stuff. Today, it’s focused on jobs, schools, taxes and term limits.”
* After the Tribune reported on Rauner’s Montana/Wyoming property in more detail, Bernie followed up with the campaign…
Interestingly, the campaign’s on-the-record response the next day came via email from Steven Yaffe, who happens to be my 19-year-old nephew from New Jersey who has completed his freshman year at the University of Chicago. He said he recently joined Rauner’s communications team as press assistant, and I was the subject of his first on-the-record response.
“Press assistant”? Hardly. Read on…
Last month, Yaffe became part of a story about the gubernatorial campaign when he was ousted from the site of a Quinn event by an Illinois State Police trooper assigned to Quinn’s security detail. Yaffe was working as a “tracker,” which is a campaign operative assigned to record actions of the opponent. As seen on a WLS-TV story on July 22, Yaffe’s video shows the trooper telling him to “stay out” and Yaffe’s protestations that it was a public event.
So, Rauner’s campaign apparently promoted a 19-year-old tracker to “press assistant” and then they tell him that his first assignment is responding to his uncle’s inquiry?
What a bunch of jerks.
Not to mention that the kid chose politics over blood. But he’s just a kid. The Rauner campaign, on the other hand, apparently has no shame.
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“Evelyn loves the Springfield area”
Monday, Aug 11, 2014 - Posted by Rich Miller
* Evelyn Sanguinetti contacted a former law school classmate who is a staff attorney at the Illinois Department of Human Rights about getting a state job before she was tapped to be Bruce Rauner’s running mate…
“Hello Honey — With the New Year, I am seeking other employment opportunities. Is anything available in ur hood?” she wrote in an email to the attorney [on the afternoon of Jan. 1, 2013].
The worker responded a day later, saying nothing was open and that state government was in the midst of a budget-related round of layoffs. But he suggested she file her resume with the state’s main hiring agency in order to get the process moving. […]
And, the Wheaton resident added, “Isn’t cow tipping a work requirement in Springfield (LOL)?”
Schrimpf suggested the comment wasn’t meant as a dig about downstate Illinois.
“The cow tipping reference was a jovial exchange … Evelyn loves the Springfield area, and unlike Pat Quinn, who spends the bulk of his time in Chicago, she looks forward to working in the capital region next year,” Schrimpf said.
Have at it, campers.
* Meanwhile, let’s go back to that new Sun-Times poll…
When asked who was “better prepared to serve as governor if the need arises,” 45 percent of respondents gave the nod to the former Chicago Public Schools CEO, Vallas, who ran for governor in 2002. Wheaton City Councilwoman Sanguinetti drew support from 35 percent of those polled.
That ain’t much of a help to Quinn.
* Crosstabs…
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A near miss at Bud Billiken parade
Monday, Aug 11, 2014 - Posted by Rich Miller
* DNAInfo…
Two people were shot during the annual Bud Billiken Parade Saturday, police said.
The victims, an 18-year-old man and a 17-year-old boy were shot about 12:30 in the 4200 block of South King Drive. The man said he was standing on King Drive when a group of people he did not know approached him, said Officer Veejay Zala, a police spokesman.
An argument ensued, and one person in the group pulled out a gun and shot the victim, Zala said. The group then fled northbound on King Drive. The man, who was shot in the left arm, was taken to Northwestern Memorial Hospital in “stable” condition. The boy was shot in the right hand and suffered a graze wound to his buttocks. He was taken to Stroger Hospital in “stable” condition.
The boy’s wounds appear to have been self-inflicted.
* CBS2…
The shooting occurred as Republican candidate for governor Bruce Rauner was shaking the hands of potential voters along the parade route in that general area, campaign spokesman Mike Schrimpf confirms.
Schrimpf says he and others at the scene noticed spectators ducking and fleeing and police activity. He said he did not hear any gunfire with all of the parade-related noise.
Schrimpf says he doesn’t think Rauner was aware the shooting had happened, as he and his supporters and campaign bus passed by.
More…
“We were walking along the parade route and then suddenly, for whatever reason — we now know it was a shooting,” Rauner spokesman Mike Schrimpf said. “There was a bunch of spectators suddenly running south and away from what was going on. We at the time had no idea what was going on. We just saw a bunch of people running away.”
* Lt. Gov. Sheila Simon claims to have heard the shots…
Near 42nd Street, a group of people suddenly ran toward the barricades that lined the street. A woman shouted something I couldn’t understand and then she ran north, with a crowd running behind her.
That’s when I heard three, maybe four, loud bangs right in a row.
It sounded like firecrackers. Sure, I’ve shot guns before but I guess I’m fortunate to have grown up in a part of the state where my first thought went to firecrackers.
Many of the people around me, who evidently didn’t think of firecrackers at all, dropped to the ground. Other paradegoers ran, many carrying babies and small children, in any direction they could that wasn’t near the sound of possible gunfire. I looked to the area where the sounds came from figuring if anyone was shot he or she would need help. Not that I could do a darned thing on my own, but I knew people who could. I don’t have a security detail, but there were two state police officers close by.
As I searched for them, Chicago police started running past me.
People who had dropped down for safety were starting to stand up again. I noticed members of the Thornton Township High School marching band, in their beautiful purple and white uniforms, had dropped to the pavement for safety, right in their rank-and-file position.
* Sun-Times…
“Why can’t we just have one day of peace?” paradegoer Sherri Grover shouted to the crowd as police attended to the victims.
“I just ask that the gangbangers stop the violence, please,” Grover said. “This is the one day for our children.”
Witnesses said several babies and a woman in a wheelchair were nearby when the two were shot.
* The Quinn campaign’s video of the parade makes no mention of the shooting…
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Quinn’s base problem
Monday, Aug 11, 2014 - Posted by Rich Miller
* A new poll of 1,085 likely voters conducted by We Ask America for the Chicago Sun-Times finds Bruce Rauner leading Gov. Pat Quinn 51-38. The most explicable difference between this poll and one leaked to Michael Sneed by the Quinn campaign (and which I also obtained and gave to subscribers) is that this WAA poll is of likely voters. The Quinn numbers, which had him down by one point, were registered voters - which is almost always a more Democratic universe in off-year elections.
* But check this out: “Which gubernatorial candidate do you consider to be a reformer?…
Oof. So much for “You know who I am.”
And check out some of the crosstabs on this question…
Look at how few Democrats and Chicagoans consider Quinn to be a reformer.
* Which candidate for governor do you think understands your every day concerns?…
No success yet in painting Rauner as an out of touch billionaire. From the xtabs…
Quinn really has problems with his base, not to mention with independents. Ouch.
* Which candidate for governor is more likely to solve Illinois’ budget problems?…
Despite the fact that Rauner’s plan would blow a gigantic hole in the state budget, even Democrats aren’t thrilled with Quinn’s plan…
* Back to the Sun-Times story…
A deeper dive into the head-to-head data in the poll between Rauner and Quinn shows that the Republican is outscoring the incumbent among both men and women. Rauner also appears to be doing surprisingly well among those who identified themselves as Democrats, spelling potential trouble for the governor.
Nearly 17 percent of Democrats chose Rauner as their preferred option for governor, the poll showed. By contrast, Quinn got the nod from self-identified Republican voters 7 percent of the time.
The survey also has Rauner with a steep advantage among independents. The poll found that nearly 54 percent of those swing voters chose the Republican candidate, compared to nearly 32 percent for Quinn.
Most of those Democrats will “come home.” And if you look at the xtabs, 12 percent of Democrats were undecided. So the race will obviously tighten up down the stretch.
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* My weekly syndicated newspaper column…
As you probably know by now, the US Attorney’s office in Chicago has agreed to drop all felony charges against Illinois state Rep. LaShawn Ford (D-Chicago) and has charged him instead with a simple misdemeanor.
The original 17 federal counts of bank fraud and submitting false information to a bank each carried potential sentence of 30 years in prison and a $1 million fine - meaning Ford was essentially looking at spending the rest of his natural life behind bars for allegedly falsely obtaining a higher credit line that he wasn’t eligible for and using part of the proceeds for things unrelated to the loan’s stated purpose.
The new charge of delivering a false tax return to the IRS is calculated in the plea agreement to be a term of zero to six months.
What the heck happened here?
The Assistant US Attorney who was in charge of Ford’s case also handled state Rep. Derrick Smith’s investigation. Smith was recently convicted of accepting a cash bribe, but one of the jurors in the trial told the Chicago Tribune after the verdict that some of his colleagues struggled with what they considered to be “sleazy” federal tactics.
Ford’s legal team included famed criminal defense attorney Tom Durkin. The team filed a motion in June which attracted some press coverage over an explosive claim that Ford was being targeted because he was a black legislator. But the motion to dismiss the indictment also revealed for the first time how the case began, which Ford’s attorneys said “belie the notion that this is an even-handed, simple bank fraud case.”
At the time of Ford’s indictment, the US Attorney’s office claimed the investigation fell “under the umbrella of the Financial Fraud Enforcement Task Force,” which the feds claimed was investigating “significant financial crimes.”
But an FBI report from May of 2011 shows that a mortgage broker under indictment was asked by the FBI about a loan officer who worked out of an office owned by Ford. The broker was asked if he’d ever spoken with Ford, if he knew whether Ford had other offices and if he knew whether Ford managed his campaign office out of his realty office. The case title on the FBI form was “CSLPO,” which means “Corruption of State and Local Public Officials.” Ford’s lawyers wrote that the federal probe was “undeniably a politically motivated investigation.”
The defense also pointed to a recent FDIC civil suit brought against ShoreBank, where Ford did business. One of the defendants was alleged to be negligent for violating policy on 20 loans. The defendant was also Ford’s managing loan officer. The allegations included misconduct by other ShoreBank loan customers (several of whom are white) which appeared to far exceed Ford’s. And a 2008 internal FDIC report uncovered by Ford’s attorneys described the legislator as being “extremely cooperative” with the bank, and pointed to what Ford’s lawyers say was the his real problem - the downward spiral of the real estate market.
“Unable to find any political corruption grounds to prosecute Defendant, the prosecutors selected this misguided and improper bank fraud case,” Ford’s attorneys wrote. Ford’s attorneys also demanded information from prosecutors about any other federal investigations of ShoreBank customers and any directives from above on how to handle the Ford investigation.
The Assistant US Attorney who handled Ford’s case has since left for private practice and a new US Attorney is now in place. Those two career moves appeared to have put some fresh eyes on this Ford matter, particularly after that motion to dismiss was filed.
Whatever happened, US Attorney Zachary Fardon deserves plaudits for reexamining this prosecution. From the very start, the case appeared to be heavy-handed and overly charged and nowhere near in line with the financial task force’s goal of prosecuting “significant” crimes. It’s not often that a top federal prosecutor will back down, but Fardon obviously did and that’s to his great credit.
The new charges agreed to by Ford state he overvalued a property’s rehab costs by about $23,000 when calculating his capital gains on the property’s sale, which wound up costing the IRS $3,782 in lost taxes.
“I regret this mistake,” Ford wrote to his colleagues last week, and concluded by saying he hoped the ordeal “will make me a better person and a more effective Member of the Illinois General Assembly.”
Ford obviously has his flaws, but I hope he can now move forward with his life.
* Related…
* Fardon explains LaShawn Ford plea deal: “It’s not our job to win or lose,” Fardon said. “It’s our job to do the right thing. My office is full of altruistic public servants who work hard every day to make hard judgments about what is the right thing given the particular facts and circumstances in front of them. That’s what we do. And so, in that case as in all, we did what we thought was right.”
* LaShawn Ford honored at West Side church
* Rep. LaShawn Ford Says He Still Has Supporters, Hasn’t Lost ‘Respect’
* Editorial: Ford’s sweet victory: The Journal has been stout in its defense of LaShawn Ford, not because we had any insights into his tax returns but because we have come to know him in our reporting of his efforts as Austin and Oak Park’s state rep over the past eight years and as a real estate developer before that. We could ask harsh questions of the U.S. Attorney’s Office because these charges have always seemed a gigantic overreach to us.
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Turn on the Wayback Machine
Friday, Aug 8, 2014 - Posted by Rich Miller
* Three years ago today, I posted a Sun-Times story about Bruce Rauner testing the waters…
Bruce Rauner, the venture capitalist who helped make Mayor Rahm Emanuel a millionaire, is edging toward a run for governor of Illinois as a Republican, prominent Illinois Republicans tell the Sun-Times.
Rauner, 55, is senior principal and chairman of Chicago-based GTCR Golder Rauner LLC, a Chicago-based private equity firm.
He recently garnered attention as a prime mover of the education reform legislation that passed Springfield, smashing teachers’ right to strike and paving the way for longer school days in Chicago.
Rauner has been testing the waters and telling other Republicans he is gearing up to run, senior elected Republicans and Republican campaign veterans told the Sun-Times. Rauner did not return a call seeking comment.
* On a lark, I scrolled through the comments. Some were quite prescient. Here’s “just sayin’”…
Rauner is head and shoulders above Brady, Dillard, and Rutherford. It’s not even close in terms of competence, accomplishment, smarts, and effectiveness.
It’s Major League Baseball vs. t-ball.
If Brady, Dillard, and Rutherford were honest they would say “yeah we pretty much suck compared to this guy.”
“Ghost“…
Dillard needs to start campaining and raising money now
* Some weren’t quite so forward-thinking…
Can anyone name a single big-money, well financed candidate with no political experience that has ever won anything in this state?
I can’t. He might be a great guy, but without any knowledge of how to run or any experience at running, he’s just setting himself up to be milked by campaign consultants.
* Near the bottom is a comment from “Bill.” It was a little weird seeing his comment - almost like bumping into a ghost.
In case you’re a newbie to the site, Bill Naegele commented here for years and gloried in stirring the pot. He passed away in March.
Here is Bill’s observation…
If this Rauner guy is so smart how come he wants to be governor?…and spend his own money, no less~!
I think a lot of us are still pondering that question.
Man, I really miss that guy.
* Speaking of good guys who are now gone, I’ll be leaving soon for the party being thrown in the late Gene Callahan’s honor over at Norb Andy’s. I wouldn’t expect any more posts today.
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Another Frerichs bumble
Friday, Aug 8, 2014 - Posted by Rich Miller
* I completely understand why somebody would stand on principle and refuse to pay a tax that wasn’t owed throughout numerous appeals. I don’t understand why a guy running statewide wouldn’t have just written the stupid little check months ago to get this off the books and then and only then continue with his appeal.
Greg Hinz…
At issue are taxes on two suites of offices [Democratic state treasurer nominee Sen. Michael Frerichs] rents in Champaign from the Champaign-Urbana Mass Transit District. One suite, 600 square feet of offices, has been used since 2007 for Mr. Frerichs’ Senate staff. The other, next door, has housed his political operation since 2010.
Since the transit district is a public agency, it does not owe taxes on property it uses. But a leasehold tax that effectively is the same as a property tax is owed by those who rent space from the district, at least some of them.
Ergo, the Champaign County Treasurer has sent bills to Mr. Frerichs.
And he hasn’t paid those bills, which total a mere $1,814.17 going all the way back to 2008. The Senate President’s office agrees with Frerichs, but the Department of Revenue has ruled against him, just as they earlier ruled against Rep. Monique Davis, who was in an almost identical situation.
* And then there’s this…
Mr. Frerichs also had owed $170.78 for his political office. But that amount was paid earlier this week after a local blogger and Mr. Cross’ campaign began making inquiries.
According to Frerichs Campaign Manager Zach Koutsky, the campaign office bills weren’t paid because they were “incorrectly” mailed to the legislative office, where they perhaps were inadvertently lumped into the larger dispute over whether legislative office is or is not exempt.
Look, I like Mike Frerichs. I think he’d make a good treasurer (as would Tom Cross). But if you’re gonna run for office you gotta clean up this little stuff first.
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Adventures in tracking
Friday, Aug 8, 2014 - Posted by Rich Miller
* Bruce Rauner’s tracker took video today of Gov. Pat Quinn being questioned by Statehouse reporter Hannah Meisel about how his security detail kicked a tracker out of a public event a couple of weeks ago…
An additional irony is that the booted tracker is related to a different reporter who was at today’s scrum. Probably not a great move by the Quinnsters, although the reporter is about as top notch as one can get.
* Meanwhile, remember how the Quinn campaign has been complaining about a tracker who allegedly hides in bathrooms at events to avoid being detected by Quinn security? The Quinnsters say the tracker also changed clothes after being turned away from one event.
Well, the tracker in question is featured prominently in a Rauner door-hanger, which is entitled “Put politics aside, support Bruce and Evelyn” and features endorsements from a couple of Democrats an independent and the GOP tracker…
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Attention iPhone users
Friday, Aug 8, 2014 - Posted by Rich Miller
* Some iPhone owners are telling me they’re having trouble sending me text messages. The texts, they say, are displaying an error message.
As I told you yesterday, I dumped my iPhone for a Samsung Galaxy S5, so I’ve left IOS for Android.
* I shut off iMessages on my iPhone and used a trick I found online to get out of the iMessage system. I had do that because iMessage texts from iPhones weren’t being sent to my Android phone. The fix worked on my end because I’m now receiving texts from some iPhone users. But your iPhone may still think I’m an IOS guy and that’s why you’re getting a failure message.
I think the solution is to click on the failed text and then hit “resend as text message.”
As I’m finding out, IOS does not make it easy to leave.
Any other suggestions in comments would be appreciated.
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Today’s number: 0.00002 percent
Friday, Aug 8, 2014 - Posted by Rich Miller
* Justin Levitt, a professor at the Loyola University Law School writing in the Washington Post…
(R)equirements to show ID at the polls are designed for pretty much one thing: people showing up at the polls pretending to be somebody else in order to each cast one incremental fake ballot. This is a slow, clunky way to steal an election. Which is why it rarely happens.
I’ve been tracking allegations of fraud for years now, including the fraud ID laws are designed to stop. In 2008, when the Supreme Court weighed in on voter ID, I looked at every single allegation put before the Court. And since then, I’ve been following reports wherever they crop up.
To be clear, I’m not just talking about prosecutions. I track any specific, credible allegation that someone may have pretended to be someone else at the polls, in any way that an ID law could fix.
So far, I’ve found about 31 different incidents (some of which involve multiple ballots) since 2000, anywhere in the country. If you want to check my work, you can read a comprehensive list of the incidents below.
To put this in perspective, the 31 incidents below come in the context of general, primary, special, and municipal elections from 2000 through 2014. In general and primary elections alone, more than 1 billion ballots were cast in that period.
Go read the whole thing.
* Kevin Drum did the calculation used in our headline…
So far, he’s found 31 cases representing around 200 individuals. If every one of them turns out be a genuine case of fraud, that’s a fraud rate of: 0.00002%.
And, of course, many of those are only allegations not yet proved.
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Today’s quotable
Friday, Aug 8, 2014 - Posted by Rich Miller
* The Democratic Governors Association is trying to gin up the animosity toward Rauner…
As Chairman of GTCR, Bruce Rauner was a central figure in the formation of ConvergEx. As news breaks that ConvergEx’s CEO will be added to the list of Rauner’s indicted business associates - Rauner is again trying to distance himself from the CEO and the company he formed.
The truth is the that GTCR’s investment model includes picking company managers and management strategies. But Bruce Rauner is banking on the fact that you won’t understand how he made this money through private equity.
Rauner actually said, “Your average voter will never understand what private equity is and I’m not going to try to explain it too much. They’re not going to know.”
OK, first of all, the head of ConvergEx wasn’t indicted. The head of ConvergEx Global Markets Limited was indicted. It’s a subsidiary.
The video of the quote is here. Go to the 44:45 mark.
* Rauner also said this right after that above DGA-supplied quote (which I corrected after watching the video)…
“I help companies grow. I provide capital to help companies grow and that’s about the level of detail that I’m going to get into.”
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And another one…
Friday, Aug 8, 2014 - Posted by Rich Miller
* We have a Rauner manure caption contest already up and running, so let’s do one for the governor as well…
And I know Abe’s ax appears to hover above his head like the Sword of Damocles, but violent imagery in comments is absolutely prohibited here, so keep it light. Thanks!
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* Illinois Public Radio…
Bruce Rauner says there’s “nothing sinister” about venture capital firms using the Cayman Islands as a tax shelter, but says he has never used the investment vehicle for his personal benefit. […]
Until he stepped down to run for governor, Rauner was head of a capital investment firm, GTCR, which has several investment pools there.
At an appearance at the Illinois State Fair last night, Rauner — wearing a plaid shirt, jeans and brown boots — insisted it’s a “widespread, common practice.”
“What my firm did is what many, many financial firms do and I think the majority of venture capital firms and private equity firms do, and that is - when they invest in a foreign company, a non-U.S. company, they’ll set up an investment vehicle, often in the Caymans, so that their limited partners are treated, for tax purposes, the same way as, as if it was a U.S. company.”
He ran GTCR, so if his firm made money off Caymans investments, then he personally profited.
* But the focus is shifting today to another island nation, Bermuda…
The onetime head of a company tied to Bruce Rauner and an associate — men the GOP candidate for governor Thursday called “rogue employees” — have been indicted in federal court in New Jersey on charges they stole millions of dollars in a sophisticated trading fraud.
Anthony Blumberg, 49, of New Jersey, and Craig Marshall, 47, of Bermuda worked for ConvergEx Global Markets Limited, a Bermuda-based broker and subsidiary to a firm Rauner’s former private equity company helped found.
Blumberg and Marshall were indicted late Wednesday on criminal charges of securities fraud, wire fraud and conspiracy to commit securities and wire fraud.
The indictment is here.
* More…
“These were rogue employees at a subsidiary of a company GTCR had invested in,” Rauner campaign spokesman Mike Schrimpf said. “The employees were fired, and ConvergEx cooperated with the investigation. What they are alleged to have done is unacceptable, and they are rightfully being prosecuted.” […]
Rauner joined GTCR in 1981 and was its chairman until stepping down in October 2012 but “had no say in hiring either of the two people,” Schrimpf said.
* Background info from the Quinn campaign…
GTCRauner formed ConvergEx in October 2006 and installed Blumberg as CEO that very month until 2011: http://www.convergex.com/about-us/history
GTCR was the largest shareholder and controlled the board (they had more seats than any other partner)
GTCR features ConvergEx on its website as an example of a successful company: http://www.gtcr.com/our-focus/financial-services-technology/portfolio/convergex-group
Rauner told Chicago Magazine in 2011 that GTCR’s - his- whole business strategy was handpicking executives. Here’s the profile. http://www.chicagomag.com/Chicago-Magazine/June-2011/GTCRs-Bruce-Rauner-Talks-Investments/ Here’s Rauner’s q&a in the article:
Q: Most private equity firms buy mature companies and unwanted divisions of large corporations, managements intact. But you seem to go out and find management and then, together with them, go buy the companies.
Rauner: We’re in two businesses: industry research and executive recruiting. We study industries, and we network like crazy to find the superstars. Today, we’re partners with two dozen CEOs. Some we’re backing for the second, third time. It can take from six months to nine years from the time we meet someone until we actually become partners with each other.
Q: But sizing up the executive is nearly everything?
Rauner: A lot of reference checking. Are they winners? How did they handle failure in their careers? We go to all the trade shows. We call it the leader strategy. Deal flow comes to them. Talented executives come to them.
Key Point: Now GTCR Chairman Rauner wants to pretend he has nothing to do with the guy who was put in place by GTCRauner to be the CEO of ConvergEx from Day One when GTCR was in charge every step of the way? How stupid does he think we are?
* Background info from the Rauner campaign…
BNY and GTCR were equal investors in Convergex. Convergex though was staffed with BNY executives. As shown below, Blumberg was already with BNY and had been since 2002. He came with the deal.
Anthony Blumberg Came Into Convergex From Bank Of New York-Mellon. “BNY ConvergEx management includes Velli, Kerry Pack, John Meserve, Anthony Blumberg, George Costafos and Charlie Raphold from BNY. The trading grossed $297 million last year. Tom Gavin, David Quinlan and Jeff Shoreman make up the Eze contingent. The vendor grossed $43 million last year. Much of that is recurring or commission-like coming from routing orders to brokers. Goldman Sachs, previously a large owner of Eze Castle, does not have a stake in BNY ConvergEx. Operations will be split between New York and Boston, Eze’s current headquarters. The deal is expected to close this year.” (Peter Chapman, “BNY ConvergEx Eyes Hedge Funds with Eze Merger,” Traders Magazine, 8/1/06)
Anthony Blumberg Originally Worked For Credit Lyonnais, And Then Bank Of New York-Mellon, Before Joining Convergex. “Prior to the formation of ConvergEx Group, Mr. Blumberg served as a Managing Director at Credit Lyonnais Securities where he established G-Trade Services, one of the world’s largest global portfolio trading groups, which was later acquired by The Bank of New York and became a part of BNY Securities Group in 2002.” (“Our Leadership Team,” Archived Convergex Webpage, 2/10/11)
…Adding… More from the Rauner campaign…
(T)he Quinn fact sheet you just put up on ConvergEx is false and intentionally misleading. It’s not a typo, the Quinn campaign has repeatedly tried to mislead the public over the last 16 hours by claiming Mr. Blumberg was the CEO of the entire CovergeEx company to give the false impression that he was hired by or otherwise directly connected to Bruce Rauner.
That’s simply false. He was the CEO of a subsidiary to ConvergEx who was hired by Bank of New York Mellon in 2002, four years before GTCR invested. Additionally, GTCR was not the “largest shareholder” of Convergex. It was an equal investor with BNY Mellon, which is why the firm’s and its subsidiary’s leadership, including Blumberg, came over from BNY Mellon.
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* Reid Wilson at the Washington Post…
With no big national wave benefiting either party this year, some Democrats and Republicans are finding themselves unexpectedly competitive in territory that’s usually anything but — and at least half a dozen governors in so-called safe states, who tend to expect few bumps on this stretch of the road to re-election, are finding their campaign fortunes oddly uncertain.
Hawaii Gov. Neil Abercrombie (D) faces voters this Saturday in a Democratic primary in which he has outspent his opponent, state Sen. David Ige (D), by a 10-to-1 margin. Kansas Gov. Sam Brownback (R) won with more than 63 percent of the vote in 2010 in his heavily Republican state. But polls show both incumbents trailing.
Connecticut Gov. Dannel Malloy (D) faces a fierce challenge from businessman Tom Foley (R), who is expected to win his primary election next week. Illinois Gov. Pat Quinn (D) trails his opponent, venture capitalist Bruce Rauner (R), in an ordinarily blue state. South Carolina Gov. Nikki Haley (R) faces a close rematch against state Sen. Vincent Sheheen (D) that has drawn national attention. And Georgia Gov. Nathan Deal (R) is running neck and neck with state Sen. Jason Carter (D), in a state where no Democrat has won the governorship since 1998. […]
Quinn, who won office with just 47 percent of the vote in 2010, signed what he said was a temporary income tax hike, then proposed making the increase permanent.
“Quinn has to significantly improve on his own 2010 performance, after raising income taxes, after falling way short on improving the economy and in the midst of a federal investigation into a 2010 anti-violence program and a lawsuit over patronage hiring practices at the Department of Transportation,” said Rich Miller, editor of Capitol Fax, an Illinois political publication.
Subscribers know the rest of my comment, which also included a warning that Quinn can’t ever be counted out.
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Caption contest!
Friday, Aug 8, 2014 - Posted by Rich Miller
* This pic was sent to me by the Quinn campaign. It features a man holding a Bruce Rauner sign standing in front of a pile of Illinois State Fair manure. I don’t know whether this was staged or not, but they claim it’s a Rauner supporter..
Heh.
Try very, very hard to keep your comments clean. I know it won’t be easy, but try. Thanks.
…Adding… This is obviously no Rauner supporter. I didn’t look at the sign closely enough, but it has an anti-Rauner message, which certainly gives the caption a different potential twist.
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* Drip, drip, drip…
Gov. Pat Quinn’s campaign says the 2013 hiring of an $80,000 per year policy analyst at the state’s transportation agency had nothing to do with politics.
But, records show Edward M. Healy, 29, served as chairman of a campaign fund that had close connections to the Chicago Democrat’s campaign until June of that year.
Healy, who serves as a public transportation policy analyst for the Illinois Department of Transportation, chaired the Stronger Illinois Committee, which raised money from labor unions and funneled it to Democratic candidates running in the 2012 election for the General Assembly
The executive director of the Stronger Illinois committee was Cheryl Byers, a longtime Quinn friend and supporter who is now back on the governor’s campaign payroll as political director after helping him win the race for governor in 2010. […]
Quinn campaign spokeswoman Brooke Anderson dismissed questions that Healy’s hiring at the DOT was political and said Quinn did not create the Stronger Illinois PAC — even though Byers told the state board of elections the address was in the same suite of offices as the Quinn campaign.
* Rauner campaign react…
“Pat Quinn got his start as convicted Governor Dan Walker’s patronage chief so it’s no surprise that Pat Quinn’s administration is now embroiled in its own patronage scandal. It looks like it still pays to know Pat Quinn.” – Rauner spokesperson Mike Schrimpf
*** UPDATE 1 *** The Quinn campaign wants you to know that Healy has a Master’s degree in Urban Planning from Harvard.
And here’s more from the Rauner campaign…
Stronger Illinois Paid Just $250 A Month In Rent For A River North Office
Stronger Illinois Paid Just $250 A Month In Rent For A River North Office. (Illinois Board Of Elections, Accessed 8/7/14)
In 2013, The Average Cost Per Sq. Foot For Chicago Office Space Was $32.24 Per Month. (Chicago Office Market Overview,Colliers International, Q3 2013)
If Stronger Illinois Was Paying Average Rates For An Office Separate From Taxpayers For Quinn, Then The Office Was Just 15.5 Sq. Feet.
Edward Healy’s Brother, Brian, Works For Quinn’s Reelection Campaign
Brian Healy, Edward Healy’s Brother, Is On Taxpayers For Quinn’s Payroll And Has Been Paid $7,582.31 Since January 29, 2014. (Illinois Board Of Elections, Accessed 8/7/14)
Edward Healy’s Sister, Margaret, Was A Quinn Surrogate
Margaret Healy, Edward Healy’s Sister, Appeared At A Quinn Press Conference To Attack Bruce Rauner.“Margaret Healy, a sixth-grade Chicago history teacher at Chicago City Day School, held up her pay stub and talked of living in a basement apartment and sometimes borrowing her parents’ car to make ends meet.” (Natasha Korecki and Sydney Lawson, “Quinn: Rauner Uses Loopholes To Dodge Taxes,” Chicago Sun-Times, 7/9/14)
*** UPDATE 2 *** Quinn was asked about this issue today…
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* From a press release…
The Jim Oberweis for US Senate campaign released the following statewide radio ad to coincide with the 40th anniversary of the resignation of Richard Nixon:
VO: Did you know Article 2, Section 1 of the impeachment against Dick Nixon was for using the IRS against his political enemies?
VO: Did you know Dick Durbin asked the IRS to investigate a political opponent about the same time the IRS began illegally targeting American families?
VO: Did you know Dick Durbin refuses to reveal any other correspondence he may have had with the IRS during the midst of the scandal?
VO: Did you know Dick Durbin took thousands of dollars in campaign contributions from the IRS union and refuses to return the money?
VO: Did you know Dick Durbin refuses to answer whether he supports a Special Prosecutor to get to the bottom of the IRS mess even though most Americans want one?
VO: Paid for by Oberweis for Senate
JO: I’m Jim Oberweis and I approve this message and if you elect me to the U.S. Senate, I’ll make sure we get those answers…. and that the IRS will never again be used as a weapon against American families.
JO: It was wrong when Dick Nixon did it, and it’s wrong when Dick Durbin does it.
JO: To help me stop this type of abuse, please visit my website, jimoberweis.com
To listen to the ad, click here.
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