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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It wasn’t cleaned up after all
Thursday, Aug 7, 2014 - Posted by Rich Miller
* From an April 25, 2014 AP report…
The Illinois Department of Transportation increased the number of jobs that can be filled based on politics or loyalty by 57 percent in the last decade, documents released Friday show. […]
They deal with the hiring of people for “staff assistant” positions - generally paying about $40,000 a year - that the administration deemed were exempt from rules set forth by the U.S. Supreme Court’s 1990 ruling on an Illinois case known as Rutan. The Better Government Association reported last summer that IDOT skirted Rutan prohibitions on hiring based on politics or loyalty by putting people into the staff assistant positions. […]
IDOT said the audit Quinn ordered was of 61 positions - those still classified as staff assistants - and that the state’s personnel agency, the Department of Central Management Services, found that Rutan applied to 50 of them. IDOT said Rutan restrictions would be followed when filling those positions going forward but did not indicate that anyone would lose his job.
Anderson on Friday reported an updated number, saying that 48 of 60 posts were found to be misclassified and should be covered by Rutan rules.
* In May, the Associated press asked IDOT and CMS which specific jobs had been reclassified. The AP’s FOIA request was denied. Why? Read on…
But the administration denied the requests, citing an exemption under the law for documents deemed preliminary, “in which opinions are expressed, or policies or actions formulated.”
Um, wait. Preliminary? I thought the administration said the classifications had changed. What’s going on?
* It appears that the administration hadn’t actually changed the classifications even though it claimed to have done so…
The FOIA denial contradicts the administration’s assertion that it fixed the problem in the spring. […]
Quinn’s office referred questions to the state personnel agency, which handles such reviews. Department of Central Management Services spokeswoman Alka Nayyar acknowledged in an emailed statement that the process had not been completed. […]
Neither Nayyar nor Quinn’s spokesman Grant Klinzman responded to questions about the contradiction in the administration’s statements.
* More…
The administration also is refusing to disclose the guidelines the government has used for two decades to decide which jobs must be open to any applicant and which can be given to someone because of his or her political connections.
Sheesh.
Answer the questions, for crying out loud.
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Schilling says he lives “paycheck to paycheck”
Thursday, Aug 7, 2014 - Posted by Rich Miller
* Former Republican Congressman Bobby Schilling, who’s trying to win back his former seat, was interviewed on WROK Radio the other day. He was asked about increased health insurance costs. Check the 6:10 mark for his response…
* The DCCC “helpfully” reproduced Schiling’s full comment…
“These increases, these are on our working poor, our middle class, hardworking taxpayers here across the United States of America. And now these folks are going to have to decide am I going to pay this premium or am I going to go buy some milk and groceries for the house. It’s really getting tough for everyone. Everyone that I talk to, I don’t hear them saying ‘hey, I’m doing great’. And the folks that are living paycheck-to-paycheck, which is most Americans, including myself, is that, you know, this is not something that you want to be putting out when you’ve got a kid that wants to play sports or you want to take a trip for vacation. Instead, you’ve got to funnel your money over to Obamacare, which is something you might never have to use.” [Emphasis added for obvious reasons.]
* Schilling reported income of $100,000 last year. Schilling also listed assets of between $254,007 and $660,000.
He’s not rich by any stretch, and he does have a big family to support. But Schilling makes more than twice his district’s median household income of $42,521.
* His job, by the way, is at CMB Regional Centers. Some DCCC-provided background on the company from a local story about Schilling…
He works for CMB Regional Centers of Rock Island. The company pools money from foreign investors who want permanent residency and investment opportunities in the United States. It utilizes the federal EB-5 visa program, which extends visas to foreign investors willing to put at least $500,000 into projects that create or preserve at least 10 jobs in the U.S.
That same visa program was featured prominently in a recent Fortune magazine story about a major scam in Illinois involving mostly Chinese visas that we we discussed here not long ago.
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* The same Tribune writers who penned that goofy piece about alleged legislative “interference” with the teacher licensing process (which uncovered no evidence of any unqualified teachers) are at it again…
Illinois school districts have employed hundreds of educators to teach everything from science to special education even though they lacked proper credentials in those subjects, a Tribune investigation has found.
Their primary evidence…
As part of an overhaul of teacher licensing in Illinois, the state has begun to close loopholes that allow educators to teach in areas in which they’re not credentialed.
Eliminated last year, one long-standing loophole let districts hire someone without the appropriate credentials in a particular subject and let them work for up to three years. Districts had to show that they tried but couldn’t find a candidate who met the state standards. And the teacher had to pursue getting fully credentialed in the subject, though records show some never did.
Educators approved under the loophole may still teach until 2016. About 200 requests for this provision have been submitted in recent years, according to the state. Several districts asserted they couldn’t find an applicant even in teaching fields with a large surplus such as language arts, the Tribune found.
Notice, they report that 200 requests have been submitted “in recent years.” They don’t say how long that time period is. Ten years? Five years?
Also notice that the “loophole” in question is being closed.
* And when they asked an expert about the dangers of teachers instructing classes that they aren’t credentialed to teach, the expert said, in part…
“What if it were your kid?”
* Part of the problem here is the Illinois State Board of Education’s cumbersome credentialing process. It takes forever just to read the agency’s 21-page explanation of the process. So, while districts wait on the ISBE, they occasionally ask for exemptions.
* But is this really an issue at all? Check out the Illinois Federation of Teachers’ response to the Tribune article…
In Chicago, only 75% of teachers at a charter school must be licensed, and the school has three years to hit that bar. Where is the Tribune’s outrage?
The word “charter” is nowhere in the Trib’s story.
And neither is any mention of this point made by the IFT…
The Tribune has yet to write a takedown of the “Teach for America” program that has been around since 1990 and places recent college grads in some of the neediest schools to teach for two years without a license.
And…
The Tribune has been silent on the disconnect between state and national requirements that mean teachers who are “highly qualified” under the federal No Child Left Behind may not have their Illinois licenses. Perhaps following a few teachers through the red tape could show the public how dysfunctional the system that teachers must navigate to serve their students is
* The Illinois Education Association also jumped into the fray…
It’s unfortunate that the Chicago Tribune, which employs many first rate reporters covering news and politics, has an editorial board that is committed to advancing the agenda of those who wish to privatize public education. There is supposed to be a wall between editorial and news but, at the Tribune, there are holes in that wall.
The paper’s editorial philosophy is regularly promoted in overblown front page stories that unfairly and inaccurately attack public education and education employees. Here’s the latest example.
The strategy is simple: run as many front page stories as possible talking down public schools, implying classrooms are typically staffed by under qualified and overcompensated teachers. It’s a lie, of course, but the theory is that, if public support of our public schools can be reduced, the goals of the privateers can be achieved.
* The IEA is also asking its members to sign an IFT MoveOn.org petition.
*** UPDATE *** Thanks to commenter “Soccermom” for finding this summary of state requirements to teach in private and parochial schools…
* Teacher certification is not required for teachers at recognized nonpublic schools unless the school governance chooses to require it as a condition of employment.
* The Illinois State Board of Education (ISBE) encourages all teachers at nonpublic schools to have at least a baccalaureate degree in the subject they are teaching. If the nonpublic teacher does not have his or her baccalaureate degree, then ISBE encourages the teacher to develop a timeline on how he or she plans to finish his or her education. If an individual with less than a baccalaureate degree is teaching, ISBE will note it in a report. This policy does not vary depending on the school‘s recognition status.
In other words, there basically are no requirements. Alert the Tribune!!!
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For subscribers, blog readers and phone users
Thursday, Aug 7, 2014 - Posted by Rich Miller
* Some folks who subscribe by G-Mail are reporting that they’re not receiving their subscriptions. The problem is that G-Mail is sending the Capitol Fax into spam. So, please, check your spam folder.
* CapitolFax.com was slammed this morning by four IP addresses attempting to exploit an obscure security flaw. The attack made the site almost unreachable. We’ve blocked the addresses and are working on the problem.
* I went ahead and got the Samsung Galaxy S5 last night. Then I somehow messed up my alarm settings for this morning and woke up really late. It’s been one of those days, campers.
I really like the phone, but it’ll be awhile before I can figure out the intricacies of the operating system. I’ve been an IOS user ever since the first iPhone was released.
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Yet another Caymans video
Thursday, Aug 7, 2014 - Posted by Rich Miller
* This time, it’s from American Bridge 21st Century. From Illinois Review…
American Bridge, a liberal PAC involved in five gubernatorial races, released a YouTube ad Thursday tying GOP gubernatorial candidate Bruce Rauner to former presidential candidate Mitt Romney.
The ad referring to “Mitt Rauner,” drums up Illinois news stories about Rauner’s investments in Cayman Islands and ties them to Mitt Romney’s investments.
“Romney’s tricks certainly didn’t fool Illinois in 2012, and Rauner’s re-creation of them won’t fare any better,” a press release says. “Rauner has joked that he’s not even in the 1 percent, but rather the 0.1 percent, and his net worth is reportedly almost $1 billion, but he still apparently feels that paying his American taxes would be an unfair burden. So being the everyman he is, he just hides it in his Cayman Island tax shelter, as anyone would.”
* Rate it…
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Quinn’s second try is better
Thursday, Aug 7, 2014 - Posted by Rich Miller
* From a press release…
With Republican billionaire Bruce Rauner set to emerge today from a luxurious vacation spent at his Montana ranch, Quinn for Illinois released a new Web video raising a few of the many questions voters have for Rauner about his secret accounts in the Cayman Islands. A report from the Chicago Sun-Times recently revealed Rauner was personally stashing millions of dollars in the Cayman Islands, an elite and secretive tax haven used by individuals and corporations to avoid paying Illinois and United States taxes.
With the Cayman Islands national anthem playing in the background, the new video includes a clip of a U.S. Senate Finance Committee hearing in which Republican U.S. Senator Chuck Grassley from Iowa points out how the only reason someone would personally invest in the Cayman Islands is to avoid paying taxes:
“The only real difference that I hear between investing in the Cayman Islands and investing in the United States, or the only way the Cayman invetsments are superior, is the possibility of avoiding U.S. tax.”
* It’s a much shorter video than yesterday’s effort and boils the issue down very quickly. Watch it…
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* From a press release…
Governor Pat Quinn today directed the Illinois State Police to deploy 40 state troopers to join Chicago Police officers in patrolling four city neighborhoods. The action follows the city’s request for assistance and is part of Governor Quinn’s agenda to ensure the safety of all people in every community across Illinois.
“The state of Illinois will do whatever is necessary to protect public safety – in Chicago and every community across Illinois,” Governor Quinn said. “Earlier this year I told Mayor Emanuel we would help in any way we could to combat violence in the city. When he requested assistance, I immediately agreed to help.”
At the Governor’s direction, the State Police will deploy troopers to areas coordinated with the Chicago Police Department (CPD). The State Police and CPD will set up 20 to 25 “surge” teams with five Chicago Police officers and two State Troopers on each team. The teams will focus on apprehending those with known violent criminal histories who are wanted by law enforcement. The troopers will come from State Police districts across the state. The assistance will be accommodated with current State Police resources.
State Police Colonel Michael Zerbonia will coordinate the effort. Zerbonia is chief of operations for the State Police and has more than 30 years of military service. He joined the Illinois National Guard in 1991 after three years as an air defense artillery officer, served in Iraq from June 2005 to June 2006 and was deputy brigade commander for the Polish 12th Mechanized Brigade in Afghanistan as part of Operation Enduring Freedom. He was promoted to Brigadier General within the Illinois National Guard in February 2014 and currently serves as Illinois Army National Guard Land Forces Component Commander.
Forty isn’t a lot, but it’s better than nothing. At least the mayor has swallowed his pride on this one, but he has now opened the door to questions about the sufficiency of Chicago police staffing levels.
*** UPDATE *** The ISP’s top guy recently bemoaned current staffing levels…
The Illinois State Police graduated 37 state troopers today Friday, the last class the academy will graduate for a while. State police officials say they can’t train more due to the state’s budget. […]
State Police Director Hiram Grau says the state funding the agency was counting on didn’t come through.
“This class graduates today and I wish I had another class coming in after them, but … we’re going to have to operate with the manpower that we have,” he said. “We really do need some more bodies.”
For a while now, the state police has compensated short staffing by making overtime part of the regular schedule.
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Unclear on the concept
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* GOP Lt. Governor nominee Evelyn Sanguinetti…
“I’m very thankful for Bruce, that he thought outside the box and he didn’t pick a political Springfield insider. He picked a full-time PTA mom and working mom that served on the Wheaton City Council. So I come to the table with having executive experience.”
Um, OK?
From the DGA…
You recently said that your service in a legislative body, the Wheaton City Council, gave you executive experience. What did you mean by this first-ever interpretation of the separation of powers?
Heh.
* The DGA also had some other questions for Rauner’s running mate…
With billionaire Republican Bruce Rauner on the lam in Montana, here are five important questions for Eveyln Sanguinetti, the magical co-governor candidate who has vowed to rule in his stead.
1. You said you would make decisions for your ticket when Bruce Rauner isn’t around. What decisions have you made in his absence? Will you finally take questions from the media?
2. Have you abandoned your quest to criminalize abortion and why won’t you discuss this on the stump?
3. You make much of your immigrant roots. Do you believe the so-called “border kids” should be deported back to their homes in Mexico and Central America? Do you support other Illinois House Republicans who voted recently to hasten the deportation of these children?
4. Why won’t you release your full tax information as Paul Vallas has done?
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Prison mental health costs rising
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* We can expect more of this as long as our mental health care delivery system is so inadequate in this state…
The cost of treating mentally ill prison inmates in Illinois is on the rise.
According to state purchasing documents and Illinois Department of Corrections projections, taxpayers will be billed more than $17.8 million in the coming year to convert existing prison space into facilities for examining, treating and housing seriously mentally ill prisoners.
That amount likely will rise with the anticipated hiring of what could be scores of additional workers to assist in the treatment of the inmates.
The increasing costs are an outgrowth of lawsuits filed against the department alleging inmates are not being properly treated for mental health issues, and against the backdrop of an under-manned agency that is housing 48,700 inmates in space built for 32,100.
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Today’s quotable
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* From a press release…
Oberweis: Durbin deserves scorn, not praise for Walgreen’s
Jim Oberweis, candidate for U.S. Senate, issued the following statement today re: Walgreen’s
“The Walgreen’s saga symbolizes Dick Durbin’s 32-year career in Washington. His bullying of Walgreen’s was a political stunt designed to help only one person: Dick Durbin. It didn’t create any jobs. It didn’t reform our job-killing tax code. Like in the IRS scandal, Dick Durbin was using government power to achieve partisan political gain. Instead of praise, Dick Durbin deserves our scorn.”
…Adding… For context, here’s Sen. Durbin’s statement…
“Earlier this morning, I spoke with the CEO of Walgreen’s, and am thrilled to say that the corner of happy and healthy is still right here in Illinois. As Walgreens themselves noted, Illinois has been their home for more than 110 years, and locating their global business here in the U.S. was the right decision for their customers, employees and shareholders. I’d add to that that it’s the right decision for every taxpayer in Illinois and across America.”
Late last month, Durbin sent a letter to Walgreens CEO Greg Wasson, expressing his strong opposition to the speculation that the company would buy Alliance Boots and use a strategy called “inversion,” to move the company’s headquarters overseas, but only on paper, in order to avoid paying U.S. taxes. Durbin has been the leading voice in Congress against these schemes, raising the issue in the face of a growing trend in U.S. corporate tax avoidance.
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* From a Bruce Rauner campaign press release…
In his desperate attempt to distract voters from his 67% income tax hike, record job losses, skyrocketing property taxes and multiple criminal investigations, Pat Quinn has painted himself into a corner.
The governor’s own pension fund — just like the state pension fund for teachers and all state workers — is heavily invested overseas, including in the Cayman Islands.
Pat Quinn either needs to apologize to Bruce Rauner for lying about the facts or apologize to Illinois teachers and state workers for calling them unpatriotic. If Pat Quinn refuses to apologize and tell the truth, he should immediately move to divest all state investments from companies and funds domiciled overseas, including in the Cayman Islands.
Individual teachers and state workers didn’t make those particular investment decisions, so that’s a stretch.
I do agree, however, that Quinn calling Rauner “unpatriotic” yesterday was a new low in this campaign. Questioning your opponent’s patriotism is a despicable act. And nothing good ever comes of it.
* Anyway, some examples…
Pat Quinn Is A Member Of The General Assembly Retirement System, Which Is Managed By The Illinois State Board Of Investment. “The Illinois State Board of Investment (ISBI or Board) has fiduciary responsibility for managing the pension assets of the General Assembly Retirement System, the Judges’ Retirement System of Illinois and the State Employees’ Retirement System of Illinois.”(http://www2.illinois.gov/isbi/Pages/default.aspx)
The Illinois State Board Of Investment Had $2.3 Billion Invested In Overseas Companies As Of March 31, 2014. (“Statements of Net Assets,” Illinois State Board Of Investment, 3/31/14)
The Illinois State Board Of Investment Invests With Advent International GPE VI-A, Which Is Domiciled In The Caymans. (“Consultants, Investment Advisers, and Other Contractors,” Illinois State Board of Investments, Accessed 8/5/14)
* And…
The Illinois Teachers Retirement System Invests $8.3 Billion In Companies Based Overseas. (Comprehensive Annual Financial Report – FY2013, Teachers Retirement System, p.38)
The Illinois Teachers Retirement System Has $433.5 Million Invested In Private Equity Funds That Are Domiciled In The Caymans.
…Adding… From the Rauner campaign…
Quinn appoints 6 members of the TRS Board and 5 members of the ISBI.
Click here for all the documenting links and more.
…Adding More… 47th Ward makes a valid point…
Pension funds aren’t subject to income taxes. Individuals and corporations are. No comparison. Apples and bowling balls, etc.
Unfortunately I think Rauner will be able to muddy this enough so that the truth remains obscured. It’s another false equivalence, which is the same as lying. But it’s a neat trick if you can get away with it.
…Adding still more… Rauner campaign regarding the above comment…
Pension funds can be subject to taxes, which is one reason why they may be in some place like the Caymans. Caymans can help pension funds on tax issues but they don’t provide individuals with tax advantages.
*** UPDATE *** The Quinn campaign response…
“This is a total canard by a Republican billionaire who has chosen the Cayman Islands as a place to stash his money and is hiding his tax records from voters.
“The Governor’s future pension is fixed and the payout won’t be impacted by the performance of any individual investments. State pension boards are also completely independent.
“By contrast, Mr. Rauner has personally funneled millions of dollars to funds in the Cayman Islands to avoid taxes.
“We’d love to reply with specific numbers but unfortunately we can’t because Mr. Rauner has not released his income tax records, including schedules. We have no idea what his sources of income are, what investments he has, and what loopholes he’s used to drastically lower his tax burden by more than half.
“Governor Quinn’s bank accounts are all located in Illinois, United States of America.”
Additional Background:
As those familiar with state government know, the Governor of Illinois makes no policy decisions related to any pension boards nor the firms selected to manage investments. These boards are independent by law and the Governor of Illinois has no involvement whatsoever in their investment decisions, as required by law.
Furthermore, Governor Quinn signed a pension board reform law to clean up corruption after swindler Stuart Levine - who Mr. Rauner had on his payroll - corrupted the system.
Unlike Governor Quinn, Bruce Rauner personally makes his own investment decisions. Rauner’s investments are NOT managed by a blind trustee, which even Mitt Romney had.
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Today’s number: $237.3 million
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* The Sunlight Foundation downloaded a new Election Money database and came up with some fun numbers…
Of the $237.3 million raised in Illinois state and local races since Jan. 1, 2013, about 83 percent of that money was raised by donors with addresses in Illinois. […]
On this note, it’s interesting to see that seven percent of all the money raised so far in Illinois came from Washington D.C. The top two donors from that city—unsurprisingly—were the Republican Governors Association, (giving $4 million) and the Democratic Governors Association, (giving about $1.5 million). Another PAC, the “Democratic Governors Association-IL,” gave about $741,000. […]
Looking down at the city level, Chicago and Springfield were the biggest donors to campaigns—giving over $71 million and $24 million respectively. Winnetka, Ill., an affluent Chicago suburb of about 12,000 people, came in fourth place, just behind Washington D.C. Of the $11.1 million that came from Winnetka, $8.95 million came from just one donor—Bruce Rauner, the Republican candidate for governor.
17 donors have contributed at least a million dollars so far.
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* Bad news…
Illinois is back in the doghouse among investors in the $3.7 trillion municipal-bond market.
The extra yield investors demand to own 10-year Illinois bonds rather than AAA munis has surged 0.55 percentage point since May to 1.64 percentage points, data compiled by Bloomberg show. The gap grew after lawmakers on May 31 passed a budget with a $2 billion hole. Then last month, the state Supreme Court ruled that government retirees’ health-insurance premiums were shielded from cuts, and Standard & Poor’s changed its outlook on Illinois to negative.
But it has no impact on state sales for now…
The penalty may have little immediate consequence. Illinois has no plans to borrow for the rest of 2014, Abdon Pallasch, the state’s assistant budget director, said in an e-mail.
And, obviously, some traders are just too ideological to be smart about investing…
Not all investors are shunning the state. With muni yields close to generational lows, investors are shifting into riskier securities such as those from charter schools and senior-living communities. Those bonds are among the most likely to default, according to data from Municipal Market Advisors.
Illinois offers “a better risk-reward trade-off than other parts of the market,” said Lyle Fitterer, who helps oversee $34 billion of munis at Wells Capital Management in Menomonee Falls, Wisconsin. “You’d rather own a charter school than the state of Illinois? You have to take a step back and ask if that makes sense.”
Exactly.
* The Rauner campaign’s response…
“Illinois’ credit rating has been downgraded 13 times under Pat Quinn and now, because of his failed leadership, our state’s economy and finances are still broken. Pat Quinn put special interest politics ahead of Illinois workers. We need to change direction before it’s too late.” – Rauner campaign spokesperson Mike Schrimpf […]
There are real opportunities to address the state’s structural deficit. To do that, we need to shake up Springfield and bring back Illinois – and voters will get that opportunity in November when they elect Bruce Rauner to be their next governor.
You gotta love how they think repeating “shake up Springfield and bring back Illinois” will solve all our problems.
You can’t fix the structural deficit with magic fairy dust words.
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Bill Brady’s advice to Bruce Rauner
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* From WJBC…
“I think he can build on the fact that we won 98 counties against Pat Quinn last time, hopefully he can build on that and do even better. Pat Quinn is certainly more vulnerable, ” said [GOP state Sen. Bill Brady].
Brady says Rauner is running a good, well-funded effort that will need to contrast Quinn’s populist campaign.
“What Bruce has gotta try to do is not get in the weeds on a lot of issues that Pat Quinn will try to turn this election on Bruce Rauner as opposed to what really needs to be focused on is the failures of the entire Democratic party that has been in control since Rod Blagojevich,” said Brady.
Your thoughts on this advice?
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Why did Walgreens stay put?
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* You’ve probably heard already that Walgreens has decided not to pursue an inversion strategy to avoid paying US taxes. Crain’s looks at why…
First, the U.S. Treasury said it is reviewing administrative actions it can take to limit American companies’ ability to engage in so-called tax inversions — corporate shorthand for moving a headquarters overseas to reduce their U.S. tax burden. This development significantly increases the possibility that an inversion could create more trouble than it’s worth down the road for tax-sidestepping multinationals.
“If you thought the only way to kill an inversion was for Congress to change the tax code, no one was worried because Congress can’t get anything accomplished,” said an equity analyst who follows Walgreen but declined to be identified because of company restrictions about speaking to the press. “But if you believe that the Treasury can act without Congress, then you have an issue. Inversions are complicated and require a tremendous amount of work, especially if it might then be completely destroyed by changes in regulation.”
The second, larger issue is that Walgreen lost control of the tax-dodge narrative and got hammered by politicians ranging from U.S. Sen. Dick Durbin of Illinois to President Barack Obama himself.
“Walgreen seems to have been completely unprepared for the public reaction to inversion and wound up embroiled in a national debate,” says pharmaceutical consultant Adam Fein, president of Pembroke Consulting Inc. in Philadelphia.
Mr. Fein points out that several political points used against Walgreen don’t make a lot of sense — but the company has done nothing to publicly refute them.
* More…
“In line with our fiduciary duty to the company and our shareholders, we undertook an extensive and rigorous analysis with a team of leading experts to determine the most optimal — and sustainable — course of action. We took into account all factors, including that we could not arrive at a structure that provided the company and our board with the requisite level of confidence that a transaction of this significance would need to withstand extensive IRS review and scrutiny. As a result the company concluded it was not in the best long-term interest of our shareholders to attempt to redomicile outside the U.S.”
The company also said:
“As part of this process, the company considered a wide range of issues, including the potential financial benefits (and their sustainability) and the technical viability of a restructured inversion transaction under current U.S. law. The company also was mindful of the ongoing public reaction to a potential inversion and Walgreen’s unique role as an iconic American consumer retail company with a major portion of its revenues derived from government-funded reimbursement programs.”
The new holding company is to be named Walgreens Boots Alliance Inc. and is to be based “in the Chicago area,” Walgreen said in a statement. Walgreen’s operations will remain based in north suburban Deerfield, with Boots operations based in its current location in the U.K., the statement said.
* The company’s stock price is taking a severe beating because of this. The five day trend…
* From Gov. Pat Quinn…
“I commend the Walgreens Corporation for their decision to stay and continue growing in the United States of America, right here in Illinois
“As part of our Illinois family for over a century, Walgreens’ decision respects their thousands of workers, managers and customers who also call our state home.
“Walgreens’ decision is the right one for the company, our state and our nation.“
* From Mayor Rahm Emanuel…
“I applaud and commend Greg Wasson and Walgreens for reaffirming their commitment to the United States, Illinois, and Chicago. Walgreens’ presence across Chicago’s neighborhoods make them an important member of the Chicagoland family and a critical player in our city’s history and our future. Their decision today speaks volumes about their determination to be a strong business, good corporate citizen, and vital community neighbors.”
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Time’s up - I gotta get a new phone
Wednesday, Aug 6, 2014 - Posted by Rich Miller
* I dropped my iPhone again. The screen has gone haywire and I can’t see anything…
That was yesterday. It’s much, much worse today. Texting is definitely an adventure.
So, it’s settled. I can’t wait for the new iPhone to be issued, even if I wanted to. A new mobile phone is now an immediate necessity.
* After I wrote about the serious shortcomings of the Amazon Fire, a representative from Motorola asked if she could send me a Moto X tester. After some initial hesitation, I said go ahead and send it.
Not long afterward, an AT&T rep offered to send me a Samsung Galaxy S5 on a trial basis. I agreed, then thought that maybe I should start reviewing sports cars and yachts. But I digress.
* The Moto X arrived first. It’s a little larger than my iPhone, but felt much better in my hand - the curved back helps. It’s blazingly fast, was really easy to use and it’s assembled in America (at least until the end of the year). The “always-on” Google Now voice control was pretty darned cool, and worked way better for me and did lots more than iPhone’s Siri. I also liked the way the Moto X pushed info to the screen when the phone was idle, and only when I actually needed it.
* The S5 arrived next. The screen is much larger than either the iPhone or Moto X, but it fit easily into my pocket and didn’t feel too big for my hand. The S5 is widely considered one of the very best phones on the market and it didn’t disappoint. The phone also has the Google Now voice control, but you have to be on a certain page to activate it, so it isn’t always on. Plus-one for Moto X.
Motorola is also a subscriber. Another plus-one in my book.
The S5 has tons of developer fans out there in Android Land, and my web searches showed that transitioning from IOS to Android might be less painful with that phone. Then again, I’m sure Moto would be glad to help me make that transition.
But the S5’s much bigger screen was a major advantage for me. Sitting in front of a computer screen for hours on end every day has trashed my eyeballs. It was so much easier to use the S5 than the Moto X, and I think that’ll make blogging from my phone - and monitoring the blog on my phone - easier as well.
So, I’m now leaning toward the S5.
Any last minute warnings about this pending decision?
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* From a press release…
A new animated video released by the Quinn for Illinois campaign explains exactly why strategies used by people like Republican billionaire Bruce Rauner to shelter their money in the Cayman Islands have a direct impact on taxes, services and economic growth right here in Illinois.
Produced by Austin-based animator Kristen Maxwell and Michael Brandl, an economist at the Ohio State University’s Fisher College of Business, the 4:30-minute video dives into questions surrounding private equity, and the ways the super-wealthy manipulate their advantages to the detriment of Illinois.
The video shows the three main effects Cayman Islands schemes have on everyday Illinoisans:
1. It raises their tax burden because labor, unlike capital, can’t easily go to the Caymans.
2. It leads to cuts because of tax revenue lost to the Caymans.
3. It takes investment dollars out of the Illinois economy - leading to a loss in potential growth here.
* Have a look…
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Illinois Freedom PAC launches TV ad
Wednesday, Aug 6, 2014 - Posted by Rich Miller
…Adding… The Rauner campaign says this ad started running July 31st, which explains why Rauner’s new TV ad addresses the Social Security issue.
* Rate it…
* Script…
Narrator: In 2012 Billionaire Bruce Rauner made $53 million dollars but paid a lower tax rate than many of us.
Ellen: Ya know…When I read that Bruce Rauner paid a lower tax rate…I was appalled.
Narrator: Rauner used loopholes to avoid paying into Social Security and Medicare for 2 straight years.
Ellen: The working families of Illinois cannot trust Bruce Rauner…
Narrator: And Rauner said he’d be open to taxing our Social Security and retirement income…making it harder for Illinois families to get by.
Ellen: We can not afford Bruce Rauner to be our Governor. No way.
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“A parent’s worst nightmare”
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* Rat droppings and roaches found in an opponent’s daycare center? No background checks for staff? Open electrical outlets? Wet and soiled bedding for infants and toddlers?
Oof.
It’s not the most professionally made, but it is surely the hardest-hitting YouTube campaign video I’ve seen since the primary. And it’s from the Madison County Treasurer’s race. Watch it…
If they can improve the production and get that on cable, it’ll be a killer spot.
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Question of the day
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* Gov. Quinn, speaking about Bruce Rauner, et al…
* The Question: Is the governor becoming desperate by attacking his opponent’s patriotism or should he continue with this line of assault? Take the poll and then explain your answer in comments, please.
survey solutions
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Feeling a bit peevish today
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* Umm…
The time stamp on Sirota’s story is August 4th at 3:11 pm The time stamp on my own story about the video is August 4th at 11:30 am.
“Scoop” means you have something “first.” I wasn’t first because it was the IFT’s video that the union was promoting, but I was surely ahead of that guy.
* Let’s move along. Here was Rauner’s quote as a refresher…
“I apologize. We may have to go through rough times. We may have to do what Ronald Reagan did with the air traffic controllers. Sort of have to do a do-over and shut things down for a little while. That’s what we’re gonna do.”
* Now, on to the CNN story…
Critics are pouncing on remarks Bruce Rauner, the Republican nominee for governor in Illinois, made to supporters earlier this year that a government shutdown was an option to help the state deal with its financial troubles. […]
In response to the outcry, Rauner’s campaign said their candidate “has put forth a detailed plan for reviving Illinois, and shutting down state government is not among those plans.”
“But if the choice is between that and four more years of failed leadership, higher taxes, and high unemployment from Quinn and Madigan, a whole lot of Illinoisans might think less government is a pretty good idea,” spokesman Mike Schrimpf told CNN.
So, it’s not actually in the written plans that the campaign has already released, but they could still do it. And “less government” is equated with actually shutting down government? He basically said nothing, which I assume means the idea is still viable.
* Back to Sirota…
Follow the link and you get this…
Another video has surfaced today showing Rauner making a similar comment in a March 2013 speech to Illinois Republicans. In that video, Rauner says: “I may have to take a strike and shut down the government for a few weeks and kinda redo everybody’s contract. That’s a possibility…I will do it proudly.”
The video didn’t “surface” yesterday. I posted it to YouTube on March 19th last year.
If you’re gonna write about Illinois, dude, learn a little about Illinois first.
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Today’s best comment
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* VanillaMan…
I’m tired of reading comments from bloggers who believe if voters don’t agree with them, it means they are low information, ignorant people.
If you want people to agree with you, if you are tired of the partisan bickering and really want government to work for all - you have to respect people.
You cannot support democracy and badmouth voters. You cannot have democracy without them.
If you can only explain your candidate’s losses by claiming voters are not smart enough to understand the issues, where the candidates stand, or that they can be fooled, bought off, they are lazy or corrupted - then you suck as a political observer. Candidates lose because they didn’t convince enough citizens to support them on an election day.
If you don’t believe in voters and election day, then you should move to a place where other people like you don’t believe in voters and election day - there are plenty of hell on Earths that will welcome your opinion with open arms and agree with you.
We’re getting more and more of this sort of crud in comments as the election nears (on both sides, actually) and it’s really been bothering me. VMan captured my feelings exactly.
I would only add that too often this loaded “low information voters” phrase is used as racial code - against poor blacks or, to a lesser extent, poor whites. Enough, already.
Deletions will commence immediately. Banishments will be next.
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Rothenberg tips race slightly to Rauner
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* From Stu Rothenberger’s outfit…
Democrats’ best strategy appears to be to turn GOP nominee Bruce Rauner, a wealthy businessman, into “Mitt Romney on steroids.” It could work, but to call this race a tossup right now would be understating Quinn’s standing in the race.
We’re changing the Rothenberg Political Report/Roll Call rating of the race from pure Tossup to Tossup/Tilts Republican, giving the GOP a narrow advantage to capture the state in November.
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Nybo back in the GA
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* No surprise…
Republican Chris Nybo was appointed Monday to fill a state Senate seat he unsuccessfully sought two years ago.
Nybo will replace Sen. Kirk Dillard, who resigned Sunday in order to accept his appointment as chairman of the RTA. […]
Nybo had challenged Dillard two years ago for the seat, but Dillard easily defeated him. Dillard did not seek re-election this year, choosing instead to run for governor, where he lost to Bruce Rauner in the primary. Nybo defeated state Rep. Chris Reboletti in the March primary.
“It is an honor to be succeeding Sen. Dillard. Though no one can fill his shoes, he leaves a legislative legacy to be admired and emulated,” Nybo said in a statement. “I will do my best to make the transition from this respected senator as seamless as possible.”
Shall we welcome Nybo back to the General Assembly with a caption contest?…
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Swings and misses?
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* From the union-backed Illinois Freedom PAC…
Less than 2 in 10 senior level positions at Rauner’s firm are held by women. Someone who can’t see talent among women and minorities is a poor choice to the run a state as well as a business
GTCR Is 70% Male: There Are Only 25 Female Employees At GTCR Out Of The 82 Total Employees. [gtcr.com]
Almost 90% Of GTRC Male Employees Are Mid-Level Or Senior Level But Only 36% Of Female Employees At GTCR Are Mid-Level Or Senior Level. [gtcr.com]
Only 14% Of Senior Level Positions At GTCR Are Held By Women. [gtcr.com]
Only 15% Of The Combined Senior And Mid-Level Positions At GTCR Are Held By Women. [gtcr.com]
Women Hold 73% Of The Entry-Level/Administrative Positions At GTCR. [gtcr.com]
Ah, the ole war on women thing. There is a problem, though. From a March, 2014 report by Preqin…
The average proportion of senior positions held by women in North America- and Europe-based private equity firms is 11.0% and 9.7% respectively. North America saw a rise from 2013 when women held 10.3% of senior roles
So, Rauner’s firm employs women in senior level capacities at a higher than average rate.
* The campaign dispatched running mate Evelyn Sanguinetti…
“Unfortunately, females have long been underrepresented in private equity and Bruce certainly would have liked to see GTCR hire more females, but GTCR does exceed national averages for the industry.”
* Meanwhile, from the Windy City Times…
Equality Illinois and other LGBT organizations announced Aug. 4 that during Market Days they would be continuing their effort to call attention to what they call GOP gubernatorial candidate Bruce Rauner’s anti-gay activities and social conservative agenda.
Among the efforts planned for the two-day festival, which takes place on Halsted Street Aug. 9-10, are flyers, voter registration booths and a new social media campaign, according to a statement.
Equality organizations and activists say that Rauner, who has claimed not to be running on a socially conservative agenda, has contributed to anti-gay candidates, as his wife, Diana. The Market Days flyers, made up to look like voided marriage certificates, point to $95,400 in contributions the Rauners gave to anti-LGBT candidates. Among those candidates the organizations named are John D. Anthony, Sheri Jesiel, Liz Doody Gorman, Jim Durkin, Christine Radogno, Joe Sosnowski, Mark Batinick, Keith Wheeler, Heidi Holan, Neil Anderson and Margo McDermed.
Street teams will also be calling attention to Rauner’s running mate Evelyn Sanguenitti and his association with the DeVos family, who have been major funders of anti-marriage equality activities and donated $13,000 to his campaign, the statement said.
* The voided marriage certificate…
The rest of the flier…
Everyone who truly thinks that Bruce Rauner will actually void gay marriage licenses, please raise you hand.
But, hey, it’s politics and Rauner won’t come out and actually say he’d protect gay marriage rights, so he probably deserves the hit.
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* This is pretty big news. From a press release…
The Illinois Education Association’s political action committee, IPACE, the Illinois Political Action Committee for Education, and the National Education Association’s political action committee, the NEA Fund for Children and Public Education, today endorsed the reelection of United States Representative Rodney Davis.
“Congressman Rodney Davis has the right values and vision to continue to speak up in Congress for educators and students,” said Cinda Klickna, president of the Illinois Education Association. “As a lawmaker who puts Illinoisans first, he understands the pressing issues facing our schools. He knows the important role education plays in preparing students for the jobs of tomorrow so that America can compete in the global marketplace. We look forward to continuing to work with Rep. Davis in Washington.”
“Representative Rodney Davis shares our values and the values of the working families of Illinois’ 13th Congressional District,” said NEA President Dennis Van Roekel. “A proud product of Illinois’ public schools, he is a relentless advocate for students and educators and understands that the road to economic prosperity and security starts in our nation’s public schools. He’s a champion of working families, and if reelected, he will continue to work hard to make our economy work for all of us. That’s why we are proud to endorse Rep. Davis’ reelection to Congress.”
That’s a big blow to Democrat Ann Callis’ campaign. Big.
…Adding… Callis was previous endorsed by the IFT.
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Connecting some ranch dots
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* A November 26, 2013 Tribune report on Bruce Rauner’s ranch on the Wyoming-Montana border…
Some of the Western sites are working farms, his campaign has said, where Rauner grows barley for a beer producer along with other crops. Rauner has dismissed some of the Western properties as little more than double-wides and old cabins.
“They’re falling down,” he told the Tribune. “It’s a good place to burn a steak and have a beer.”
* From today’s Tribune…
Sitting between two snowcapped mountain ranges, with the Yellowstone River running through wide expanses of ranchland, Bruce Rauner’s spread in Montana lies in the middle of one of the most awe-inspiring spots in the American West.
While the Republican nominee for governor owns opulent properties in several locations across the country — from the Florida Keys to Manhattan — it is the tens of thousands of acres he owns in southern Montana and northern Wyoming that most sharply define his persona as a savvy investor who knows his way around bird guns and fly tackle.
Land records show that Rauner owns land in five Montana counties and in northern Wyoming, totaling about 23,000 acres. But friends and acquaintances say he spends most of his time on the property he has assembled south of Livingston, in an area called Paradise Valley at the northern entrance to Yellowstone National Park.
His 6,000-square-foot home on the banks of the Yellowstone River, widely regarded as one of the greatest trout-fishing rivers in the world, is a showpiece property where he has entertained Mayor Rahm Emanuel and other friends from Chicago.
Yep, burn a steak and have a beer amidst falling down rubble. The very definition of roughing it, in a gorgeous, 6,000 square foot ranch mansion.
* From a November 25, 2013 Tribune story…
[Rauner’s house] has five bedrooms and four baths and is currently valued by the Park County, Mont., assessor at $2.2 million.
The front gate to the shack…
* Ah, but there’s much more to this ranch topic. From a July 02, 2014 Tribune story…
Rauner’s tax returns report a payment of $15,777 of self-employment tax in 2012 but no payments in 2010 or 2011. He said he and his wife didn’t owe the tax in those two years because it is applied to only certain types of income — in his case the category that showed multimillion-dollar losses in regular business income. […]
Asked to explain those losses, Rauner said he couldn’t recall details but speculated that a portion was likely connected with large ranching operations he owns in Montana and Wyoming. “Some of it’s farm and ranch income or losses,” he said. “That goes up and down year to year. Some of it’s operating losses from other investments that I have made.”
That shack pays some real dividends. Burn a steak, drink a beer, cut your tax payments.
* From today’s Sun-Times…
Republican gubernatorial candidate Bruce Rauner has headed to his opulent, 6,000-square-foot, $2.2 million ranch in Montana, where he will spend time away from the stump in Illinois.
The news comes after Rauner has faced questions about investments he holds in the Cayman Islands, following a Sunday Sun-Times story revealing the investments. That disclosure reignited calls for the multi-millionaire to release his 2013 tax records. Rauner has filed for an extension and his campaign said he would release them by October 15.
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* “It’s Time”…
Script…
The 2nd highest property taxes in America. And Pat Quinn wants to make his 67% income tax increase permanent. Pat Quinn he just doesn’t get it. Bruce Rauner has a plan to grow jobs not taxes. Repeal all the Quinn-Madigan tax increase. Stop corporate welfare giveaways. Freeze runaway property taxes and require voter approval to raise them. It’s time to turn Illinois around. Bruce Rauner, shake up Springfield bring back Illinois.
* “Ever”…
Script…
BRUCE RAUNER: Pat Quinn raised taxes on everyone. Took about one full week’s pay from each middle class family every year. Now he wants to make it permeant. My plan will repeal the Quinn-Madigan tax, and get rid of corporate welfare, and no taxes on social security ever.
AD: Bruce Rauner
BRUCE RAUNER: I’ll freeze runaway property taxes. No more property tax increases without voter approval period.
AD: Shake up Springfield bring back Illinois
*** UPDATE *** From the Quinn campaign…
MISLEADING AD CLAIM: Bruce Rauner says he wants to let the income tax increase expire in January.
FACT: Here is a real headline from the Chicago Tribune: “Rauner opens door to higher income tax rate.” Rauner expressed openness to raising the income tax rate this year.
MISLEADING AD CLAIM: Rauner is suddenly opposed to taxing Social Security.
FACT: Bruce Rauner has said he is open to taxing retirement income earlier this year and to this day has not ruled it out. During a GOP primary debate on WTTW, Rauner said he wouldn’t rule out taxing retirement income, according to the Chicago Tribune. Rauner said he would consider every tax before making a judgement. Other GOP candidates immediately ruled out the tax. But not Rauner. [VIDEO - at 00:32:20]
(This is not to mention the fact that he himself used exotic accounting methods to avoid paying Social Security and Medicare tax.)
MISLEADING AD CLAIM: Bruce Rauner SAYS he wants to freeze property taxes.
FACT: First, the Governor does not have the power to freeze or raise local property taxes. Second, Rauner has proposed blowing an $8 billion hole in the budget that would decimate funding for public schools, which would leave local governments with NO CHOICE but to raise property taxes to protect funding for schools. The best way to reduce property taxes is by properly funding education. That’s why Governor Quinn has proposed viable property tax relief for homeowners in addition to properly funding schools to reform the system and reduce the burden on property taxpayers.
MISLEADING AD CLAIM: Bruce Rauner is now opposed to corporate welfare.
FACT: Rauner has benefited to the tune of hundreds of millions of dollars over the years from corporate welfare. A mere few examples include, PrivateBancorp, which received $244 million in federal bailout money and Zenta Inc., which received $8.5 million in corporate welfare from the State of North Carolina. Governor Quinn by contrast has proposed closing corporate tax loopholes that Rauner has been jumping through to give himself hundreds of thousands of dollars for his own financial benefit.
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Today’s number: 51 percent
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* Sun-Times…
How much worse could things get for Congress? Not only do Americans say the best way to fix Congress is to fire everyone (but it rarely happens), a new poll reveals just how fed up voters are with Congress. Specifically, they’re pointing the finger directly at their own member like never before.
The Washington Post-ABC poll shows that 51 percent of voters disapprove of their own member of Congress. In the quarter-century that the Post-ABC has been asking the question, this is the first time it’s ever eclipsed the 50-percent mark. Only 41 percent approve of their own member.
That poll is here.
* But…
A recent Pew poll, for instance, showed 69 percent of people wanted to unseat most members of Congress, but just 36 percent said the same of their own member.
Even so, that 36 percent is significantly higher than the 29 percent who said the same about their own members in 1994 and two points above the rate in 2010.
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* Carol Marin writes about Rep. LaShawn Ford…
In the Great Recession, the Obama Justice Department has sent no Big Bankers to jail for the billions they plundered, but it went after a lone black state representative for 17 counts of felony bank fraud? The charge: improperly using a $1.5 million line of credit from ShoreBank in his struggling real estate business, with some of the money going to pay personal debts.
Amazingly, not a single soul from ShoreBank responsible for lending Ford the money, nor a single other customer — many white — was charged with making bad loans or defaulting on loans.
Only La Shawn Ford was bagged by the government. What set him apart? He was an elected official, though the charges had nothing to do with his performance in office.
* I’m excerpting too much for Fair Use, but whatever. More…
First elected in 2006, Ford went up against the regular Democrats who endorsed the incumbent hack, Calvin Giles. It took Ford three tries, but he finally won.
The Machine was stunned.
Life has always been against the odds for La Shawn Ford. The son of a drug-addicted mother, he was raised by his grandmother and sent to Catholic schools. And then to the seminary.
Ultimately, his path took him to teaching and business. And politics.
At his 2012 arraignment in federal court, the lobby of the Dirksen Federal Building filled with people from his neighborhood. Unlike when fellow state Rep. Derrick Smith was indicted on bribery charges, there was an outpouring on behalf of Ford that is seldom seen in the granite courthouse.
* Sun-Times…
The surprise plea deal on Monday comes less than two months after Durkin in June accused prosecutors of unfairly targeting Ford because he is a black elected official — a charge they angrily rejected.
But evidence from a separate civil case showed that white defendants who engaged in identical behavior to Ford’s at ShoreBank were not criminally charged, Durkin argued in court papers at the time.
“There is no doubt that Defendant’s status as an African-American elected state public official drives this case,” Durkin wrote. “As counsel have argued in detail, but for his status as an African-American elected state public official, Defendant would not have been indicted.”
Though Pallmeyer refused to throw out the case on those grounds, it’s an argument that could have caused a political problem for prosecutors at trial.
Subscribers know more about that motion.
* Tribune…
Under federal sentencing guidelines, Ford could be sentenced to up to 6 months in prison, but probation is the most likely outcome in part because he is first-time offender.
In pleading guilty to the misdemeanor, Ford admitted that in his 2007 tax return he over-reported what he spent to rehab a single-family house in Chicago’s Austin neighborhood, reducing his capital gain from the sale of the home. The deception cost the Internal Revenue Service a tax loss of $3,782, according to the plea deal.
Keep in mind that those original 17 felony counts carried a maximum total penalty of 510 years in prison and $17 million in fines. But he probably won’t do any time now and just pay four grand or so to the government.
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Today’s quotable
Tuesday, Aug 5, 2014 - Posted by Rich Miller
* David Ormsby…
On Friday, Governor Pat Quinn reappointed most members of the Budgeting for Results Commission for one-year terms ending on July 31, 2015, including Lt. Gov. Sheila Simon whose relationship with Quinn has cooled on its slow descent into Hell.
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*** UPDATE *** From Rauner campaign spokesman Mike Schrimpf…
When Bruce spoke with the Tribune, he said he wasn’t aware of GTCR Funds in the Caymans - that’s because all of their main funds are indeed based in the U.S. Nonetheless, the campaign followed up twice with the Tribune making that same point and offering to help determine what the discrepancy was. They never followed up on it, despite repeated inquiries.
So, apparently, the Trib reporters were asking about Cayman Islands investments and yet didn’t circle back to hear the Rauner explanation for any discrepancies between the original comment and what the Tribune supposedly found.
If true, then this could very well be a “gotcha” story.
[ *** End Of Update *** ]
* Oops…
During a June interview, the Tribune asked Rauner about the SEC documents that listed GTCR’s Cayman investments. “I don’t think that’s true,” Rauner said at the time. “No GTCR fund that I’m aware of has its base in the Cayman Islands.”
On Sunday, however, Rauner offered a different answer when asked about the firm’s Cayman investments: “GTCR has its own structure for just a couple of investments. When they invest in overseas companies, they set up that particular structure.”
* From the Quinn campaign…
This is not the first time that Rauner has changed his story after being confronted with evidence to the contrary. Earlier this year, Rauner denied using clout and making a call to the then-head of Chicago Public Schools to get special treatment at the exclusive Walter Payton Prep High School. After Rauner changed his story several times, the outgoing Inspector General of CPS confirmed last month that special treatment is exactly what Rauner got.
In addition, Rauner is running television attack ads that feature false headlines that his campaign either made up or doctored.
* But let’s get back to the Tribune article…
The GTCR Cayman investments appear to be in financial instruments typically referred to as blocker funds or alternative investment vehicles that are legally walled off for tax purposes from related investments based in the United States. The arrangement helps non-profit institutional investors avoid taxes.
But experts say it typically provides no tax advantage for individual American investors like Rauner, who are required by U.S. law to pay taxes on all income earned worldwide.
“It’s a common structure that in my view is not abusive in the way that people might think when they see the name Cayman Islands,” explained Victor Fleischer, a professor who teaches tax law at the University of San Diego and has written extensively about tax avoidance strategies.
Even so, the New York Times reported in 2012 that Romney, who publicly released two years worth of complete tax returns during his presidential run, may have used offshore investments to avoid some special taxes in a different way. The newspaper said it involved debt financing that could have been levied against Romney’s normally tax exempt Individual Retirement Account.
We’d know a lot more if Rauner would do as Romney did and release all of his tax forms - which is probably exactly why he’s refusing to do so.
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