The Hynes tradition continues for Emanuel
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* From a press release…
Mayor Rahm Emanuel today appointed Michael Rendina to be the City’s new Director of Legislative Counsel and Government Affairs (LCGA), a key office that serves as liaison with elected officials, government agencies and community organizations at the at the local, state and federal levels.
“Mike’s career as a fierce advocate for Chicagoans and his relationships in Springfield and City Council make him the perfect addition to our team,” said Mayor Emanuel. “I have had the pleasure of working with Mike for the past three years, and can’t think of a better person to lead our legislative and labor relations team as we continue our work to promote Chicago priorities.”
Rendina has served as the Chief Officer of Public and External Affairs at Chicago Public Schools for the past three years. Prior to his government service, he served in various roles on candidate and issue campaigns in Illinois and nationally. He was raised in the northwest suburbs of Chicago and earned his bachelor’s degree in International Economics and Politics from George Washington University in Washington D.C., where he also received his M.A. in Political Management. He lives in Lakeview with his wife and two children.
Sean Rapelyea has been promoted to Deputy Director of LCGA, filling the role of Micheal Ruemmler who recently left city government to serve as Campaign Manager for Mayor Emanuel’s reelection campaign. Rapelyea, who has served as a key liaison to the City Council since Mayor Emanuel took office, will now oversee the implementation of the Mayor’s legislative agenda, serve as point of contact for the appointed boards and commissions, and continue to work with City Council members as their liaison to City departments and sister agencies. Rapelyea grew up in the Baltimore, MD area and currently lives in Hyde Park.
Rendina replaces Matt Hynes, Dan Hynes’ brother. Rendina ran Hynes’ 2010 Democratic primary campaign against Pat Quinn. I’ve always had a lot of respect for him.
Hynes and Ruemmler both did good jobs for the mayor, passing huge pieces of legislation in Springfield. Yeah, there were mistakes, but there are always mistakes.
* Hynes, by the way, sat down for a recent interview with the Sun-Times…
Q: What did you learn from your father that helped you do this job?
A: I learned a lot about how to treat people and listen to what they have to say. If you can’t use what they suggest, let them understand why you’re doing something differently. He had a very good style that I’ve always tried to incorporate. To do this job, you don’t always have to be a jerk. You don’t have to be a tyrant. You can be professional and work with people in a way that makes people want to work with you. You get better results that way.
Q: That’s a style that’s a lot different from Rahm Emanuel’s cartoon image anyway.
A: Yeah, but his style is so collaborative. People do not give him credit for how he really is. He’s very accessible, open to other ideas. He always wants to get people to a mutual agreement. That’s why it’s fun to work for him. It makes my job a lot easier.
Um, OK, if you say so.
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Question of the day
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* The Local Government Distributive Fund doles out state income tax money to local governments on a per capita basis. The Daily Herald found, of course, wealthy suburbs whose residents pay a lot of income taxes, don’t get much of that back…
In 2012, each town got $87.85 per person, according to state revenue department records. For residents living in unincorporated areas, the county received those funds, state officials explained.
This state’s income tax redistribution policy means some suburban areas like parts of Aurora got back more than 25 percent of what residents paid in income taxes, while other areas like Oak Brook and Barrington received less than 2 percent of the income taxes workers there paid.
* The Question: Do you support keeping the LGDF based on population or switching to a formula based on a fixed percent of what local residents pay in income taxes, or getting rid of the LGDF? Take the poll and then explain your answer in comments, please.
free polls
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* Illinois Review has the list of recently reserved TV ad buys by the National Republican Congressional Committee…
IL-10: $800,000 (Chicago broadcast and cable) against Brad Schneider
IL-12 $720,000 (St. Louis broadcast) against William Enyart ($720,000)
IL-13: $720,000 (St. Louis broadcast) for Rodney Davis
No ads have yet been reserved for Bobby Schilling or Darlene Senger.
*** UPDATE *** DCCC reservations via RollCall…
Illinois’ 10th District: $800,000 on Chicago broadcast and cable from Oct. 21 to Oct. 27 to defend Democratic Rep. Brad Schneider.
Illinois’ 12th District: $940,000 on St. Louis broadcast from Sept. 12 to Sept. 29, and another $940,000 from Oct. 21 to Nov. 4 on St. Louis broadcast to defend Democratic Rep. Bill Enyart.
Illinois’ 13th District: $940,000 on St. Louis broadcast from Oct. 21 to Nov. 4 and $670,000 on Champaign broadcast and cable from Sept. 30 to Oct. 20 against GOP Rep. Rodney Davis. Davis will face former judge Ann Callis in November.
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* AP…
Illinois lawmakers will decide Monday whether to subpoena a former official in Gov. Pat Quinn’s administration to answer questions about the Democrat’s anti-violence program.
State Sen. Jason Barickman (R-Bloomington) is co-chairman of the Legislative Audit Commission and a member of the subcommittee that will meet Monday. He says the panel will vote on whether to compel Barbara Shaw to answer questions about the Neighborhood Recovery Initiative.
“Why did this thing go from zero to 50 overnight?” said Barickman. “The governor’s office has tried to throw this person under the bus. I think she needs to come forward and explain herself to us.”
* Sun-Times…
“It’s likely if she’s subpoenaed, she would testify,” Shaw’s lawyer, John Theis, told the Chicago Sun-Times’ Early & Often politics portal. […]
Jane Stricklin, executive director of the Legislative Audit Commission, told the Chicago Sun-Times that she contacted Shaw and learned she didn’t feel comfortable voluntarily testifying in front of the commission. The panel held a contentious May 28 hearing on the Neighborhood Recovery Initiative audit performed by Auditor General William Holland.
“What she told me was that she did want to be cooperative,” Stricklin said. “But after seeing and hearing the hearing on May 28 and thinking more about it, she did not think she could voluntarily appear.”
Theis declined to say what insights into the Neighborhood Recovery Initiative his client is prepared to offer the audit panel if she is subpoenaed.
“The best thing to say at this point is she wouldn’t want to comment on the substance of her testimony,” he said. “She has a lot of information about how it was done and what was done, and lots of it will show that the Neighborhood Recovery Initiative, at least at the Violence Prevention Authority, they were making substantial efforts to make sure everything was done the right way.”
So, apparently, she won’t be taking the 5th. Away we go…
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Mo’ money
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* After that $2.5 million contribution by Ken Griffin to Bruce Rauner, this one almost looks small…
Illinois Freedom PAC is the union-funded group which tried to keep Rauner from winning the GOP primary.
* By the way, the Tribune employees who created the above Twitter feed have a great little techie blog that the nerds definitely should be reading.
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Poll: Topinka over Simon 48-37
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* Yet another We Ask America result…
“Republican Judy Baar Topinka leads by 11 points, but the underlying numbers in the crosstabs show significant strength for her re-election. Her lead among Independents is not surprising, but 21 percent of the poll respondents who said they considered themselves to be Democrats also support Topinka,” says We Ask America COO Gregg Durham. “Her 26.71 percent in the city of Chicago is especially strong. Still, the 11-point spread puts Democrat Sheila Simon smack dab in the middle of the hunt. But if Topinka continues to make headway in those key demographics, Simon will run out of real estate to use in catching up.”
JBT leads among indies 50-30. She leads among women 46-36. Simone has an ever so slight one-point advantage in Democratic suburban Cook, and JBT leads Downstate 56-31.
…Adding… The only real difference between this poll and other recent polls I’ve seen or been told about is in the suburban Cook result. My April WAA poll had JBT ahead 48-34 in suburban Cook. Other recent polling apparently shows similar results.
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Poll: Cross leads Frerichs 42-35
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* Another We Ask America poll…
The poll, which has a margin of error of 3.07 percentage points, [surveyed] 1,021 likely voters […]
“Both the Comptroller’s and Treasurer’s offices don’t garner much earned media, and neither of the candidates for treasurer are that well known by the electorate, although Cross certainly has held a position that gives him wider state coverage,” says We Ask America Chief Operating Officer Gregg Durham. “That helps to explain his stronger-than-expected support among Democrats. Bottom line: We think it will be Labor Day or later until a clear picture will emerge in this race.” […]
Cross had support from 23 percent of Democrats while only 13 percent of Republicans crossed party lines for Frerichs.
Despite being from downstate Champaign, Frerichs trailed far west-suburban Cross among downstate respondents 46-32. But, should the pattern of this poll continue, Frerichs could offset any downstate losses with his strong showing in Chicago, where he led Cross 50-24.
Cross spent some bucks to win his contested GOP primary, so that’s playing into this as well as the likely Republican-friendly cycle itself. Cross leads among independents 42-24.
Cross also leads among women 39-35.
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14 months of revenue for a 12-month budget
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* I missed this Phil Rogers story from the other day. Wow…
Ten months after the biggest realignment in CPS history, the stage is set for a cataclysmic budget debacle, which could top $1 billion.
“It’s completely nuts,” says Chicago Teachers Union vice president Jesse Sharkey. “And unless we do something about it, we’re going to be facing a billion dollar budget crisis.”
At issue is a board plan to take 14 months of revenue for the coming 12 month school fiscal year, essentially borrowing money from the 2015-2016 school budget. School board president David Vitale did not dispute the number.
“It does allow us to avoid laying off thousands of teachers,” Vitale said. “It will lead to a serious problem a year from now, but the alternative is not very pretty, and it’s our judgment that we should do everything we can to maintain the quality we can for our kids.”
The CTU says it sees a more sinister motive for the budget sleight of hand.
“They don’t want to do it during a mayoral election,” said Sharkey. “So they’re kicking it to the following year.”
Man, oh, man.
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Derrick Smith and MJM
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* I talk to a lot of folks at the Statehouse on a daily basis and I have never once heard anyone say this…
Well, another state legislator is heading to prison. You won’t hear much outrage in Springfield. Or dismay for that matter.
In the grand scheme of things, the conviction of state Rep. Derrick Smith, D-Chicago, on bribery charges is picayune. You’ll hear it whispered around the statehouse: “He ‘only’ took $7,000.”
Come to think of it, I have heard it said, but in sardonic derision, as in “If you’re going to take a bribe, why only $7,000?” In other words, it’s the usual dark humor of if you’re on the take, make sure to get enough cash to pay your legal bills.
* Back to the column at hand…
A few years back, some Springfield wag printed up bumper stickers that said, “My Governor is a Bigger Crook than Your Governor.” This kind of cynicism has metastases through the electorate leaving political tumors of apathy, inevitability and suspicion.
There is no greater exploiter of this political cynicism than House Speaker Mike Madigan. Despite Smith’s indictment, Madigan threw his support behind his reelection this year. Madigan’s spokesman told the Chicago Tribune, the speaker supports Democratic incumbents and believes in “innocent until proven guilty.”
Well, some of the time.
I watched Madigan vote to impeach Blagojevich before he was ever brought to trial on corruption charges. When we hope for statesmanship in Springfield, we all too often end up with raw politics.
Good point.
And the “raw politics” aspect has played out pretty well for Madigan at the Statehouse. Black Caucus members, particularly in the Senate (where MJM is not loved at all), approvingly noted the Speaker’s defense of Smith in the March Democratic primary. Madigan stuck his neck way out for an embattled African-American and they were impressed.
Even so, supporting Smith in the 2014 Democratic primary will rightly dog MJM for a very long time to come.
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Banjo-free caption contest!
Wednesday, Jun 18, 2014 - Posted by Rich Miller
* Revered commenter OneMan sent along this Tweet and suggested I add a difficulty factor: No Banjo references.
Have at it…
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* Republican lieutenant governor nominee Evelyn Sanguinetti on her role in office should she be elected this November…
“It depends on the governor. It’s up to the governor to give us a role. And so with Bruce Rauner we’re going to work as a team. I will be his partner. And wherever he’s not, I will be able to make decisions in his stead. And it’s a great deal for the taxpayer because we’ll both be working hand in hand with one another.”
Emphasis added for obvious reasons. If she’s gonna have gubernatorial powers, perhaps the Rauner campaign ought to explain what those would be.
* Video…
*** UPDATE *** This isn’t the first time she’s said something like that. From a “helpful” Democrat, we have another quote from Sanguinetti at the June 7th Palatine Republican Township meeting…
“So, the governor must have chosen somebody who is likeminded to run alongside him so, should your governor be unable to serve, your lieutenant governor must be, without skipping a beat, able to lead on day one so Bruce and I are going to have a partnership. I’m not going to stand back and wait until something happens or anything like that. It’s going to be a partnership. Wherever he is not, I will be there in his stead making the hard decisions.”
Audio…
So, she’s not going to wait for Rauner to become incapacitated before she steps in and does something? Considering that she’s such a hardcore social conservative, the Quinnsters could have a field day with this goofiness.
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* Yesterday was supposed to be a statewide “day of action” for anti-fracking activists. Not so much…
A statewide “day of action” in support of renewable energy and against fracking throughout the state brought a group of about 20 protestors to Marion Monday morning.
The protestors, who call themselves “fracktivists,” gathered in front of Rep. John Bradley’s office at 11 a.m. to begin a one-hour protest.
* Photo…
* More…
The anti-fracking gathering in Marion Monday was one of three events of its type across the state.
Similar events were held in Springfield and in Chicago as well.
If there were other events, I haven’t seen any coverage online. The Springfield organizer touted the event on his Facebook page, but hasn’t yet posted any pics. Same goes for the planned Chicago event.
* And a group of counter-protesters matched the anti-fracker turnout in Marion…
They were met by another group of about 20, composed mostly of people who work in the building trades, who turned out to show their support for the controversial oil and gas extraction method and Bradley’s efforts to jumpstart the use of it in the state.
“We’re here in support of John Bradley and what he’s trying to do to get fracking started in the state,” Southern and Central Illinois Laborers District Council business manager Clint Taylor said. “The (Hydraulic Fracturing Regulatory Act) bill has been passed with the toughest regulations in the country and it’s time to put people to work.”
Taylor said his counterparts in North Dakota, Pennsylvania and Ohio frequently talk about the positive effects a fracking boom has had on their regions.
“They are building schools and roads, their communities are being lifted up,” he said. “These are good jobs, the kind of jobs Southern Illinois needs.”
I’ve asked the anti-fracker organizers for photos of their events. I’ll post the pics if I ever get them.
*** UPDATE 1 *** Chicago pics…

*** UPDATE 2 *** From Will Reynolds, the Springfield anti-fracker…
I see you already have pics of the Marion action.
Back in December you wrote about the fracking rig in Quinn’s front yard: “I’d love to see those elves head down ‘yonder and put up a rig in Gary Forby’s front yard. Heh.”
Well, it’s not Forby’s front yard, but the Marion protest is in Forby’s district and since I know most of the people in the photo I can tell you that many are voters in his district.
Did you ever get a chance to link to a pic of the 500+ people who showed up to hear Josh Fox speak about fracking in Carbondale? I know it doesn’t fit the “radical fringe” narrative you and Denzler have been pushing for over a year now, but here’s one in case you’d like to use it sometime. Heck, NRDC and ELPC probably couldn’t get 20 people in a room in southern Illinois, unless those people were there to protest those organization’s support for the fracking law. Also, did you ever watch video of the Ina, IL fracking hearing? If you did, you’d see how many Sierra Club members and board members specified that they’re involved with the Shawnee Group of the Sierra Club but not the state chapter due to the state chapter’s support for fracking. It’s pretty unusual for elected leadership to publicly criticize their own organization over an issue. Sorry to burst your bubble, Rich, but the “radical fringe” includes leaders of the organization Sierra Club lobbyists claim to represent and they’ve said so publicly, many times.
He didn’t send a pic of yesterday’s rally.
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* The State Board of Elections formally ruled that Bruce Rauner’s term limits constitutional amendment has enough signatures to qualify for the ballot. In other news…
Another group that wants to alter political mapmaking was given more time to validate signatures. “Yes for Independent Maps” asked the panel to let it submit about 4,000 signatures for evidence. That was after local election authorities were asked for the names but didn’t receive them before a deadline. Some election officials were reluctant to approve more time because the group hasn’t met deadlines.
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Question of the day
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* A new We Ask America poll has Secretary of State Jesse White thumping his Republican opponent 63-29…
Webster led White in only one category: Among likely Republican voters. But even among Republican respondents, White picked up 33 percent.
Even in Republican-heavy downstate, White registered a remarkable 58 percent to Webster’s 33 points in this survey.
* But the same poll found that Attorney General Lisa Madigan was leading her GOP rival 51-35…
Madigan was the overwhelming favorite among female respondents, who preferred her by a 55-30 margin. By contrast, the candidates split the male vote almost evenly.
The only region of the state where Madigan did not have a lead was downstate, where Schimpf held a 42-40 lead. Madigan garnered 74 percent of the Chicago vote to Schimpf’s 11 percent and nearly doubled up on Schimpf in suburban Cook County. […]
“Lisa Madigan’s numbers are incredibly strong in Chicago and substantial in suburban Cook. Her numbers among women voters remain high, but she splits the Independent vote in a year that some national prognosticators feel will be good for Republicans,” said We Ask America Chief Operating Officer Gregg Durham. “While GOP challenger Mike Webster does compete in the Collar Counties and downstate, Madigan’s funding advantage and skilled campaign team will make it hard for him to close the gap. Still, this race deserves to stay on our radar.”
SoS White won reelection in the huge GOP year of 2010 by a 70-27 margin. AG Madigan won 65-32 in that big GOP year. The new poll shows Madigan splitting the independent vote evenly with her GOP opponent 40-39, while White is winning it 57-29. The poll shows White winning every region by large margins, but Madigan is trailing Downstate and is essentially tied in the collar counties.
One quick takeaway: Lisa Madigan’s last name is truly hurting her relative to her previous popularity.
* The Question: Your thoughts on AG Lisa Madigan’s future?
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Today’s quotable
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* Illinois Republican Party Chairman Tim Schneider…
He didn’t provide any details, but said the party would be targeting specific precincts through the election to keep an eye out for voter fraud. “You’re going to see a ballot integrity program this year that is going to blow your mind. It’s going to be something you’ve never seen,” Schneider said.
Discuss.
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A better Quinn video
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* Frankly, I didn’t much care for the “cupcake girl” video put out by the Quinn campaign. It’s too long, too cute and the issue is somewhat dated and unimportant.
I like this next one more. The video features person on the street interviews. Here’s the campaign’s setup…
Regular Janes and Joes on the street reacted in shock and disbelief when told that the richest man in Illinois had bestowed a $2.5 million campaign contribution on billionaire Bruce Rauner. The contribution by billionaire hedge-funder and Koch Brothers ally Ken Griffin is the largest of its kind in any state in the modern era and is part of Rauner’s effort to buy the Governor’s seat.
Griffin, who has given Rauner a total of $3.6 million and lets him use his $50 million jet to scoot around the state, has told the Chicago Tribune that the super-rich have “insufficient influence” on the political process, but people polled at random for a Quinn for Illinois video released today did not share that view:
The setup doesn’t do it justice because the reactions by these folks are real, visceral and raw. Watch the whole thing…
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Reform and renewal
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* A recent news roundup from the Bruce Rauner campaign…
Over the weekend, two stories broke about possible pay-to-play in the Quinn administration. First, Lee’s Springfield Bureau offers a “behind-the-scenes look at the jockeying underway to grab a piece of the newly legalized medical pot business” by politically connected Quinn insiders. Second, the Associated Press reported that a political firm with ties to Governor Quinn was contracted to work directly under the governor on health care implementation in Illinois and has billed the taxpayers at a rate exceeding similar contracts in other states.
On Sunday, the Chicago Tribune reported that Illinois Gov. Pat Quinn’s administration “handed out $800,000 in anti-violence money to a politically influential South Side community group even after the nonprofit filed documents with the state acknowledging it suffered from years of financial missteps.” A review of state records “also raise questions about when top Quinn administration officials learned of problems in the program and how swiftly they responded.” Meanwhile, the group’s leader continues to give money to Illinois Democrats as the Quinn administration holds off on collecting money owed to the state.
And after months of Pat Quinn and his administration denying any wrongdoing in a lawsuit alleging illegal patronage hiring practices at the Illinois Department of Transpiration, the Chicago Sun-Times yesterday reported that the Illinois Transportation Secretary’s own stepdaughter may have a gotten her job at IDOT through patronage hiring.
* The medical marijuana thing probably ain’t pay to play. It’s just a bunch of insiders going for the brass ring. If there weren’t so many harsh regulations on med-mar, the money guys wouldn’t need lobbyists to give them a hand. But it is an impressive roster of insiders. Go check out the story.
We discussed the second point yesterday.
The Tribune story was about The Woodlawn Organization, which used to be a highly respected South Side group. But years of mismanagement questions have combined to put it on the outs with the state. After putting TWO in charge of some programs, the governor’s office kicked it out of the anti-violence initiative. Still, you can clearly make the case that the governor’s office should’ve known that it was taking a big risk with TWO.
* And that brings us to the IDOT story. I really find this explanation hard to swallow…
[Schneider’s stepdaughter Ashley Carpenter] said she was at her IDOT job when, one day, generic personnel paperwork arrived on her desk, which she filled out and turned in. Shortly after, Carpenter said, she learned she had been promoted to a staff assistant. She said she never applied or interviewed for the job or discussed it with Schneider.
“Honestly, I have no idea how I became full-time,” Carpenter said. “I have no idea who put that stack of papers on my desk.”
Carpenter was hired as a staff assistant using the “Rutan-exempt” process, in which politics and other subjective factors are allowed to be used as a basis for hiring, according to IDOT spokesman Guy Tridgell and documents obtained under the Illinois Freedom of Information Act.
An IDOT spokesman said Schneider did not help Carpenter get either job. Schneider would not agree to an interview request.
So, you’re telling me that the stepdaughter of IDOT’s then-director of finance and administration was promoted out of the blue and without her even knowing it and the director wasn’t at all involved?
Right.
As the old saying goes, I was born at night, but not last night.
* Chicago was just released from nearly fifty years of judicial oversight on patronage hiring. While Mayor Emanuel was cleaning up the hiring process, Quinn was apparently going the opposite direction. Yes, Quinn stopped the questionable hiring practices after he was called out on it, but IDOT obviously is long overdue for a top to bottom house cleaning. That place has been a patronage dumping ground forever.
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Today’s number: 0.1 percent
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* Adam Pollet, director of the Illinois Department of Commerce and Economic Opportunity…
“You can go back 10 years; the net change in employment due to relocation is less than one-10th of a percentage point,” he said Thursday. “We can get caught up in a lot of ‘How do we compete with other states?’ for a zero-sum gain.’’ […]
According to an Illinois Innovation Index report issued last year, the state had a net gain in employment in 2012 through relocation but lost slightly more companies than it attracted. Companies that relocated to Illinois were larger on average than those that left, resulting in a net increase of more than 1,400 jobs in Illinois — relatively small compared with the state’s employment base of nearly six million, the report said.
A total 275 businesses with a combined 7,957 employees moved to Illinois in 2012, while 283 companies with a total of 6,542 employees left the state.
That same year, entrepreneurs created 22,351 new businesses in metropolitan Chicago; but the share of new enterprises, 0.048 percent of the 470,096 businesses overall, was slightly below other metro areas, the report said.
(The Houston area had 22,521 business starts out of 352,764 businesses – 0.064 percent; the Dallas area had 19,521 business starts out of 316,981 businesses – 0.062; the New York area had 29,125 starts out of 526,104 businesses – 0.055; and the Los Angeles area had 35,984 starts out of 578,008 businesses – 0.062.)
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Oopsie
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* Speaker Madigan’s non-binding referendum on whether income over a million dollars a year should be hit with an income tax surcharge has a grammar problem…
(D)espite a series of debates on the idea, no one apparently caught the improper use of the word “their” in the text of the proposed ballot question.
The measure asks, “Should the Illinois Constitution be amended to require that each school district receive additional revenue, based on their number of students, from an additional 3% tax on income greater than one million dollars?”
Proper grammar calls for the word “its” instead of “their” because “each school district” is singular.
A spokesman for House Speaker Michael Madigan, D-Chicago, who sponsored the proposal, said he was unaware of any effort underway to fix the flaw before it goes on the ballot.
Heh.
My problem with the question, though, is that it doesn’t specify what sort of income should be taxed. Gross? Adjusted gross? Net? Personal? Corporate?
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Caption contest!
Tuesday, Jun 17, 2014 - Posted by Rich Miller
* A subscriber was at Sen. Hastings’ golf outing and spotted a sponsorship sign and asked me “Are you working undercover?”…
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* Ty Fahner is behind this new group, but Fahner hasn’t proved to be much of a fundraiser. Ron Gidwitz knows how to raise money and he’s the group’s treasurer. IMA honcho Greg Baise is also involved…
Top Illinois business officials have formed an “independent expenditure” group that intends to spend millions of dollars this fall backing General Assembly candidates who favor pension and budget reform and more charter schools. […]
The spending cannot legally be coordinated with campaign decisions made by legislative leaders and individual candidates. But such groups have few limits on how much money they can raise or spend and have been extremely effective nationally as well as in Illinois, where such spending helped state Sen. Kirk Dillard almost unseat Bruce Rauner in the March GOP gubernatorial primary. […]
Mr. Fahner would say only that the group will raise “a reasonably large amount” for the fall campaigns — well above the several hundred thousands of dollars that has been raised by another political action committee, We Mean Business, which directly donates to political campaigns.
Other sources said the group hopes to hit the $5 million figure — enough, if reached, to offset much of the spending from labor unions on the other side of key issues.
Bruce Rauner is supposedly not involved.
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Question of the day
Monday, Jun 16, 2014 - Posted by Rich Miller
* Old news from mid-May, but we didn’t really take full advantage of it here…
Governor Pat Quinn today officially started the planning for Illinois’ 200th birthday in 2018, a year-long celebration that will engage residents and communities throughout the state and leave a lasting legacy for future generations. The Governor signed an Executive Order to create the 2018 Illinois Bicentennial Commission, a grass-roots organization that will plan a celebration that is meaningful to every resident and spur history-based tourism.
“Ever since becoming a state on December 3, 1818, Illinois has been a crossroads, a microcosm and a breadbasket for our nation,” Governor Quinn said. “We have cultivated such leaders as Presidents Lincoln, Grant, Reagan and Obama. The Bicentennial is an opportunity to remind everyone of our rich heritage and pave the way to a bright future.”
“This is a once-in-a-lifetime opportunity to celebrate Illinois’ rich heritage,” Illinois Historic Preservation Agency (IHPA) Board Chair Sunny Fischer said. “The Illinois Historic Preservation Agency will do everything it can to help the Bicentennial Commission get people talking, learning, traveling and exploring 200 years of Illinois history.”
* The Question: Illinois bicentennial slogans?
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Today’s number: 28 percent
Monday, Jun 16, 2014 - Posted by Rich Miller
* From the Center for Tax and Budget Accountability…
In real terms, Illinois has been significantly cutting its investment in services over the last 15 years.
In fact, in FY2015, spending on the core services of education, healthcare, human services, and public safety - which collectively account for $9 out of every $10 in General Fund service spending - will be 28 percent less than in FY2000 after adjusting for inflation. [Emphasis added.]
Why? Mainly because the state has been paying its pension obligations and the Edgar payment ramp has kicked into high gear.
Also, notice that “healthcare” is included on Martire’s list. Total healthcare costs are growing a net 0.8 percent this coming fiscal year. A bit less griping about Medicaid by the screamers would be appreciated.
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Today’s most excellent rant
Monday, Jun 16, 2014 - Posted by Rich Miller
* Mike Flannery went off on the General Assembly recently for its “grotesque irresponsibility” when passing a new state budget. Some of what he said…
“I can’t recall seeing as irresponsible budget as was just approved… You’d think that the whole General Assembly was on medical marijuana when they were passing this thing. It’s grotesquely out of balance… They emptied their whole dirty bag of tricks to make it look balanced.”
Yep, yep and yep.
* Watch the video clip…
We’ve given Bruce Rauner a very hard time over the past few days for his stupid chicken stunt, but what the GA did was all too real, not some campaign gimmick.
The full interview is here.
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Oh, for crying out loud
Monday, Jun 16, 2014 - Posted by Rich Miller
* Kurt Erickson says the Executive Mansion’s basement flooded…
Just a week after we reported the roof on the Governor’s Mansion was leaking into the third-floor bedrooms, we confirmed the basement was flooded.
Despite the mansion being an 1855-era historical treasure, Quinn has made no clear indication he wants to properly maintain the place.
Here’s one theory on why he won’t spend the money: After complaining last year about the $50 million spent to restore one wing of the Capitol, Quinn has painted himself into a corner when it comes to fixing the house he lives in during his occasional forays outside of Chicago.
But it’s not like the administration is against repairing roofs in general.
In May, state officials opened bids to repair the Howlett office building, located in between the Capitol and the Mansion. Taxpayers will pay about $400,000 for workers to repair the ornate ceiling.
Taxpayers also are on the hook for about $115,000 to replace roofs on buildings at Illinois Beach State Park.
And, bidding is underway for roofing work at Wayne Fitzgerell State Park in Southern Illinois. The work is expected to cost under $150,000.
Either raise the money from private sources or find some state money to fix the darned thing. Sheesh.
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We’re Number One! - Oh, wait…
Monday, Jun 16, 2014 - Posted by Rich Miller
* From July 12, 2013…
Fleishman-Hillard, a unit of New York-based Omnicom Group Inc., apparently beat out a dozen other bidders to market the online exchange where Illinois consumers and small businesses will shop for health insurance this fall.
The Illinois Department of Insurance filed a notice of intent today to award the $35 million federally funded contract to Fleishman-Hillard, according to a state procurement website.
* October 08, 2013…
The Quinn administration could have alleviated confusion by launching a simple education campaign at least six months ago to give consumers a heads up the exchange would be coming.
“This is a really complicated topic,” said Sue Fogel, chairwoman of the marketing department at DePaul University. “It does the program no good at all to be launched in the middle of chaos.”
But an extensive PR blitz didn’t begin until a few days before the Oct. 1 debut of the online marketplace, dubbed Get Covered Illinois. That same day, the exchange previewed its first television ad, saying that radio spots and online digital ads would come later.
* Fast-forward to Friday…
President Barack Obama’s home state agreed to spend $33 million in federal money promoting his health care law, hiring a high-priced public relations firm for work that initially was mocked and spending far more per enrollee on television ads than any other large state.
After getting a late start and facing intense pressure to avoid more embarrassment for the much-maligned law, Illinois officials last summer inked the most lavish contract in the history of FleishmanHillard’s Chicago office. The goal was getting uninsured residents to sign up for coverage.
More than 90 people, including executives from the firm and its subcontractors, billed at least $270 an hour for salary and overhead during the first 4 months.
The hourly amount far exceeded the contracts other states signed for similar work. Colorado paid its ad agency $120 per hour, for example. In Connecticut, a similar contract had rates topping out at $175 an hour.
* And…
A key subcontractor working on the campaign to promote President Barack Obama’s health care law in his home state is a Chicago political strategy consulting firm owned by three former aides to powerful Illinois Democrats. The three political strategists — Mike Noonan, Victor Reyes and Maze Jackson — are among the individuals whose billing rate of $282 an hour is raising questions about whether Illinois did enough to rein in taxpayer costs within a $33 million contract funded by a federal grant. The hourly rates were first reported this week by The Associated Press.
Their firm, Compass Public Affairs, could take assignments directly from Democratic Gov. Pat Quinn’s administration under a special provision of its subcontract. Compass was part of a team assembled by the main contractor, the Chicago office of public relations agency FleishmanHillard.
The contract was pretty small in comparison to the overall program, about $250,000. But that billing rate is quite high.
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A look at Madigan’s law firm
Monday, Jun 16, 2014 - Posted by Rich Miller
* The Sun-Times takes a look at House Speaker Michael Madigan’s law firm’s property tax work for an offshoot of Mesirow Financial Services, which put up a skyscraper, then sold it…
After appealing to Houlihan and the Cook County Board of Review, Madigan got the building’s market value pegged at $31.3 million. That saved Stein’s company $1.7 million in property taxes for 2010.
On Dec. 15, 2010, Stein’s company sold the building to Tishman Speyer for $385.4 million — a deal that Madigan’s firm says wiped out the equity that Mesirow and Jenner had in the skyscraper.
For each of the past four years, Madigan has filed challenges of the building’s estimated market value with Berrios, who succeeded Houlihan as county assessor in 2010.
Every year, Berrios has said the building is worth at least $330 million. And every year Madigan’s firm has gotten Berrios to slash that estimate, resulting in tax breaks that have averaged $5 million a year, county records show. Tishman Speyer passes along the tax bills to its tenants, so any cut benefits them.
The skyscraper “had essentially no rental income in 2009 and reduced rental income in subsequent years,” says Madigan’s partner, attorney Bud Getzendanner, who successfully argued for the cuts. […]
Getzendanner won’t say how much the firm has been paid for winning the cuts in property assessment that lowered the building’s taxes. Madigan told the Chicago Tribune four years ago that his firm charges clients an annual fee rather than take a percentage of the tax cuts.
Earlier this year, Getzendanner argued the building was worth no more than $260 million, though its net income hit $36.7 million last year, the highest since tenants first moved in. He noted that 10 percent of the building remained vacant.
Once again, Madigan’s firm got Berrios to cut the building’s estimated value, this time by 20 percent, then persuaded the Board of Review to lower it by another 2 percent.
At first blush, it looks like a fetcher game. The Assessor repeatedly over-estimates and then MJM swoops in to save the day.
But that probably can’t be because Madigan doesn’t take a cut of the tax reduction. He charges by the year.
* There have been tons of stories done on Madigan’s property tax business. I’m told the feds went through his books several years ago. They came up empty. Former GOP Rep. Maureen Murphy, an avowed Madigan enemy in the House, ran for the Board of Review back in the day with the specific goal of going after Madigan. Nothing ever materialized.
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Worst. Rollout. Ever.
Monday, Jun 16, 2014 - Posted by Rich Miller
* My weekly syndicated newspaper column…
“Today, I laid out more than $1 billion in structural reforms,” Republican gubernatorial candidate Bruce Rauner boasted to his supporters via a blast e-mail last week.
Baloney.
Rauner’s press conference to announce a billion dollars in alleged budget savings was an almost total farce.
Fully half of what Rauner said he could save – $500 million at the Department of Central Management Services – came with absolutely no details. Rauner did provide some annual totals for emergency and sole-source contracts, but he’d have to get rid of almost all of those, with all those government services they involve, to hit his goal. It’s a total sleight of hand with no actual basis in reality, but it gets him half way to his magic billion dollars, so it was included.
Another $250 million would come from implementing “Medicaid verification reform,” but those reforms are ongoing, although not to Rauner’s liking. The private company hired to root out ineligible Medicaid recipients started with the lowest of low hanging fruit. And even then, lots of people were restored to the Medicaid rolls after filling out the proper forms. So projecting a $250 million savings based on the initial work by that private contractor, before its actions were reversed, is a complete fantasy.
In other words, three-quarters of Rauner’s billion dollars is either magic money or already in the pipeline.
Part of what Rauner did last week was what every candidate does. He highlighted some press clippings about Quinn administration screwups, which he claims totaled $140 million.
But almost half that amount – $60 million – was overtime costs for prison workers. Rauner wants to hire more guards, but that would actually add state costs for things like training, more full-time salaries and benefits. Should there be more prison guards? Sure. But don’t pretend that it’ll save money.
Yet another $40 million in “wasteful spending” cited by Rauner was actually an upgrade of the state’s probation system, which has been badly neglected for years. Another $12 million was what Rauner called “Medicaid payments to deceased individuals.” Rauner’s former investment firm owned a bunch of nursing homes and hospitals, so he ought to know that Medicaid doesn’t make direct payments to patients, alive or dead. And while this was most definitely a Quinn administration screwup, the government has recovered most of the money that was sent to managed care providers, mainly hospitals.
So, out of $140 million in “waste” touted by Rauner, at least $112 million isn’t actually waste or has been or will be recovered.
Add the $500 million magic money savings from CMS, plus the highly doubtful $250 million savings in Medicaid plus the $112 million in “waste” that isn’t actually waste and he had $862 million in savings that aren’t really there – out of the billion dollars he said he had identified.
Oh, but there’s more.
I’ll even be charitable and give Rauner all of his savings on questionable capital projects. But these aren’t annual cash savings. The state takes out long-term loans for construction projects and Rauner pointed to some projects totaling about $11.5 million. Yes, many of those projects are goofy. No argument there. Spending an eye-popping $10 million to rehab a decrepit private theater in Chicago is a justifiable target for critics. But cutting out that project won’t save $10 million a year. It’ll save maybe a tenth of that.
And, heck, grant him his idea to move legislators to a 401(k) plan, which is probably unconstitutional, but he claims it will save $60 million – over 30 years. Annualize that out and it’s a $2 million annual savings.
I won’t even point out that Rauner counted some savings twice. OK, I did point it out, but I won’t put it in the final tally. He wants a 10 percent cut in constitutional offices and General Assembly spending, which he says will save $40 million. But he also wants to merge the offices of the comptroller and treasurer, which he says will save $12 million.
The bottom line is that out of a $36 billion or so state budget, Rauner successfully and accurately identified maybe $70 million in overspending per year – or less than 0.2 percent of the budget.
Hey, I’m not knocking $70 million. Every little bit helps. But when you advertise a billion dollars in savings and your provable savings add up to only about 7 percent of that, pardon me if I’m not exactly inspired.
“We need to stop the false choice of dangerous cuts to government services or higher taxes,” Rauner claimed last week.
What we need, Bruce, is a serious conversation.
* Lots of folks jumped on Rauner’s case…
* Paul Merrion: Rauner offers few specifics to challenge Quinn on Illinois budget: “He says he has a plan, and this isn’t a plan. It’s not even an introduction to a plan,” says former GOP state Rep. Jim Nowlan, a retired professor of political science at the University of Illinois at Urbana-Champaign’s Institute of Government and Public Affairs. “It’s a mistake because it’s going to be ridiculed.”
* Doug Finke: Rauner budget is definitely, um, something - Well, people demanded budget information from Bruce Rauner, and last week he finally came out with something. Just what it was depends on your perspective.
* Kurt Erickson: One of his ideas is to sell off most of the state’s fleet of airplanes. He says we shouldn’t be paying thousands of dollars to fly people when they can drive between Springfield and Chicago for $65 one way. That figure seemed odd. According to our calculations, the state employee mileage reimbursement for driving between the Capitol and the main state office building in Chicago is about $114 one way. Rauner spokesman Mike Schrimpf said the figure was based on a lower mileage reimbursement rate used by members of the General Assembly. That’s fine, but that doesn’t account for the various attorneys, legislative liaisons, agency directors and others who must trek between the two cities to do the state’s business.
* Mark Brown: Rauner should be red-faced over meager reform ‘Blueprint’: I found it fairly dumbfounding on Thursday when Rauner, with three caged chickens at his side, completely laid an egg with his first attempt to show there’s some substance behind the slick campaign that won the Republican primary.
* Carol Marin: Bruce Rauner’s game of chicken: You don’t found and grow a private equity enterprise like GTCR. — the “R” stood for Rauner — without a granular understanding of how to make money in the most sophisticated ways possible. And so it is amazing — if not disheartening — to read the mere pamphlet that the Rauner campaign took more than a year to produce. It’s a brochure, not a plan. And specifics? It’s just the same old campaign trope.
* Matt Dietrich: Rauner’s budget plan is mighty thin gruel: But for a candidate who has promised innovation that will “shake up Springfield,” this was beyond disappointing.
* SJ-R editorial: Rauner’s blueprint falls a few billion short: In the end, what Rauner presented is 11 pages of populist talking points. Quinn has taken heat for floating plenty of populist ideas of his own through the years, but he also has had to deal with very real, very difficult issues during his time as governor. Fiscally conservative Rauner should take no pride in putting forth such superficial ideas.
* WSIL: Bruce Rauner Unveils Unspecific Reform Plans: “It’s pretty clear that he’s got to say more. If he’s not going to raise taxes, then I think he owes the people of Illinois some specifics about what he wants to cut. It’s not going to be pleasant, nobody’s going to like it, but it’s time people be told the truth,” says David Yepsen with the Paul Simon Public Policy Institute.
* WICS: Democrats and Republicans React to Rauner Budget Plan: “How does he plan to make up for the loss of $7 billion of revenue when the income tax expires at the end of the year?” [former Republican State Senator Larry Bomke] said.
* NBC5: Most amusingly, a Twitter parody account — dubbed The Rauner Chicken — has surfaced to mock Rauner’s poultry gimmick and all squawking thereof.
* Chuck Sweeny: Bruce Rauner’s 10-point plan: One thing Illinois has in abundance is fairy dust, enough to supply all the Disney theme parks.
No surprise, the Chicago Tribune editorial board was silent.
…Adding… More from that Paul Merrion piece…
A spokesman for Mr. Rauner declines to discuss how the plan was developed. Some observers question whether the campaign, which didn’t have an in-house policy team until after the March primary, has the staff in place to produce more detailed proposals.
Lobbyists and interest groups recently have been talking to two new staffers: Aaron Winters, a former top aide to Illinois Sen. Mark Kirk, and David Wu, former Indiana Gov. Mitch Daniels’ policy director. Neither has any Illinois budget experience. The campaign also is relying on state legislators and their staffs.
Enphasis added for obvious reasons.
…Adding More… Oops. I forgot to post my own take from my Crain’s column…
The poorly thought-out list of budget cuts that Mr. Rauner presented June 12 won’t stop him from being slammed for not proposing detailed tax and spending plans. But he can’t actually propose a “real” budget that doesn’t include tax hike revenues because he’d have to make gigantic cuts. And those cuts would alienate large swaths of Latinos, African-Americans and suburban women. So, he’ll probably propose a fake budget.
* Related…
* Closer Look: Prairie chickens an election issue
* Will Bruce Rauner Convince Illinois to Give Up on the Prairie Chicken?: The population has continued to struggle, most recently because of the 2012 drought. Even after the controversial prairie chicken translocation of 2014, the population is vanishingly small, though the importing of 200 more is planned through 2016.
* Laura Washington: Rauner’s rainbow pitch off target: Bruce Rauner wants to govern Illinois. He aspires to assemble a leadership team to run and represent a racially and ethnically diverse state. Yet, this hugely successful businessman could not find diversity in his own back yard.
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Stop it, please
Monday, Jun 16, 2014 - Posted by Rich Miller
* From a Quinn campaign press release…
Lowering the Illinois minimum wage has been Rauner’s main policy platform thus far in the campaign.
Oh, come on. Rauner said one time that he wanted to lower the minimum wage and then totally retracted it, calling for an increase in the minimum wage under certain preconditions.
* And this isn’t a one-off thing, either. From a June 12th Quinn campaign press release…
After waiting 465 days to release any concrete budget or policy proposals, other than lowering the Illinois minimum wage, Bruce Rauner today unveiled a “blueprint”
* June 4th…
Today marks the 457th day since he entered the race that the vulture capitalist has failed to provide Illinois with a detailed budget blueprint. So far, Rauner’s only policy proposal has been to cut the Illinois minimum wage, which would hurt working families.
The examples are endless, but I don’t want to spend all day searching my e-mail in-box. Just trust me on this one.
* And it’s not only Quinn, either. From an Illinois Freedom PAC press release…
Rauner has voiced support for cutting the minimum wage
Look, I get that using somebody’s quote is perfectly legit. But saying he’s definitely for something when the overall record shows he’s not just isn’t cricket.
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*** UPDATED x1 *** A post-Watergate record
Monday, Jun 16, 2014 - Posted by Rich Miller
* AP…
A Chicago hedge fund CEO’s $2.5 million donation to the campaign of Republican candidate Bruce Rauner has been termed the largest single donation in an Illinois governor’s race in the post-Watergate era.
Campaign disclosure records show 45-year-old Citadel chief executive Ken Griffin has now given Rauner a total of $3.57 million, including $71,000 worth of in-kind contributions for the use of Griffin’s private jet. Griffin in the past has made campaign contributions to Chicago Mayor Rahm Emanuel, a Democrat, and Republican state Sen. Bill Brady.
“We need a leader with experience, passion, and the will to turn this state around,” Griffin said in a statement to Crain’s Chicago Business. “I support Bruce Rauner because he can get the job done.”
Kent Redfield, professor emeritus of political science at University of Illinois at Springfield, said the Griffin donation is the biggest in an Illinois governor’s race since the mid-1970s campaign finance reforms that followed the Watergate scandal.
* HuffPo says it’s the largest in any state…
The $2.5 million contribution to Rauner’s campaign is the largest The Huffington Post could identify to a political campaign in recent history. A number of states have no campaign contribution limits, but none have seen a single contribution this large in two decades, according to state records. (Individuals and corporations have likely given larger contributions, when adjusted for inflation, in the past.)
*** UPDATE *** WJBC…
“He does no business with the state whatsoever,” Rauner says. “He’s a completely financially independent guy. he just deeply cares about good government and good government reform. He needs no favors, no special deals. That’s why I love working with guys like Ken.” […]
“He’s a great education reformer and a great business policy reformer and that’s one of the reasons I have a lot of respect for him.”
When asked if Rauner would consider Griffin for a job in his administration. Rauner joked that someone making 400 million dollars a year doesn’t need a job.
Also, wise words from Yellow Dog Democrat in comments…
Yes, this can should and will be a campaign issue.
But Griffin has a net worth of $2 or $3 BILLION.
He just wrote Harvard a check for $150 million…their biggest gift ever.
The dude gave the Art Institute $19 million because it happened to be where he and his wife had their first date.
You wanna know why he wrote such a big check instead of making installments?
$2.5 million IS an installment payment for Ken. We will likely see another $2.5 million from Ken in September and maybe a few more in late October.
Agreed.
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How many niche voters make a majority?
Monday, Jun 16, 2014 - Posted by Rich Miller
* If you Google “GTCR” and “Niche” you get about 136,000 results. That was the inspiration for my Crain’s Chicago Business column…
Republican gubernatorial candidate Bruce Rauner leads Gov. Pat Quinn in every poll. Prognosticator Nate Silver recently gave Mr. Rauner a 75 percent chance of victory.
But since Illinois is such a traditionally Democratic state, Mr. Rauner appears to be using a lesson he learned at his former private-equity firm as a road map to victory.
Under his leadership, Chicago-based GTCR LLC specialized in buying successful “niche” companies and then using their profits and expertise to expand in their respective industries.
Mr. Rauner followed this niche approach to win the GOP nomination. He started with his big-business pals, who in the past have been divided over candidates. But this time they were all with him, including those who previously had supported his opponents.
Because he’s pro-choice, Mr. Rauner had some trouble gaining traction with tea party groups, which still have some power, at least nationwide, as U.S. Rep. Eric Cantor learned to his dismay on June 10. But a new tea party chapter popped up in January in the southwest suburbs. Mr. Rauner has used that group’s kindness, along with his backing for term limits to push state legislators out of office, to eventually make some inroads.
All of that and much more combined to help him win a narrow victory in the March 20 primary.
Mr. Rauner is using the same strategy for Nov. 4.
Click here to read the rest.
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Jack Roeser’s arrangements
Sunday, Jun 15, 2014 - Posted by Rich Miller
* Via Illinois Review…
Family and friends will gather for a Funeral Mass and Military Honors on Tuesday at 10:00 A.M. at the St. Catherine of Siena Church, West Dundee. Private family burial will follow in the St. Joseph Catholic Cemetery, River Grove.
Visitation will be on Monday at OTTO Engineering 100 S. Lincoln Ave Carpentersville form 3:00 PM – 8:00 PM and again on Tuesday morning at St. Catherine of Siena Church, West Dundee from 9:00 A.M. until the time of the Mass.
Please omit flowers, memorials are encouraged to either the Boys & Girls Club of Dundee Township P.O.Box 173 Carpentersville, IL 60110 or the St. Elizabeth Parochial Catholic School 4052 S. Wabash Chicago, IL 60653.
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Bill Luking’s arrangements
Sunday, Jun 15, 2014 - Posted by Rich Miller
* From Bill’s office…
William H. Luking will be waked on TUESDAY, JUNE 17, 2014 from 3 pm to 9 pm at Michalik Funeral Home, 1056 W. Chicago, Chicago, Illinois.
Mr. Luking’s funeral service will be on WEDNESDAY, JUNE 18, 2014 at Old St. Patrick’s Church, 700 W. Adams, Chicago, Illinois. The visitation will begin at 9:00 am with the Funeral Mass beginning at 10:00 am.
Parking for Mr. Luking’s wake on Tuesday will be a challenge. Given Bill’s love of the Chicago Transit Authority, it is appropriate that there is a Blue Line stop immediately adjacent to the Michalik Funeral Home.
In lieu of flowers, gifts may be made to Heifer International or the Windy City Harvest Youth Farm, Chicago Botanic Garden.
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