Turn on the Wayback Machine
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Erickson reaches back into the archives to rebut Dan Rutherford’s claims that his cleanliness has never been questioned in more than two decades in office…
In 2002, while he was serving in the Illinois House, Rutherford used his campaign funds to buy a district office in Pontiac and then routinely paid workers in the office out of his state-paid account and his campaign fund.
The practice raised red flags with one watchdog group that said the arrangement could make it hard for voters to determine if there was a conflict of interest in the operation.
Rutherford, who was in the midst of a successful run for a seat in the Illinois Senate at the time, said his employees were not mixing politics with their taxpayer-funded duties. […]
At the time, analysts said the fact that Rutherford had co-mingled his campaign- and taxpayer-paid staff showed the lack of a strong “firewall” designed to ward off potential ethical problems.
Rutherford told The Pantagraph at the time that he had cleared the building arrangement with state election regulators, but a check of how other state lawmakers handled their district offices found few others who organized their offices in the same way.
Out of thousands of campaign funds in Illinois, the Illinois Campaign for Political Reform said only two other politicians were using a similar set-up.
Those other two were Rosemont Mayor Don Stephens and Cicero Town President Betty Loren Maltese.
Oops.
* However, it should be clearly noted here that using campaign funds to pay for state services is totally allowed under the law. State funds can’t pay for campaign activities, but people can use their campaign funds to subsidize public services. It actually saves state money if done properly and above board.
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* Steve Chapman complains about Bruce Rauner’s performance in yesterday’s Tribune editorial board meeting…
After promising big spending cuts through pension reform, he was asked how much his plan would save in the first year or two, and he couldn’t give even a rough number. If he had been in the Senate when Gov. Quinn proposed $1.3 billion in spending cuts, which required closing dozens of state prisons and mental health facilites, would he have voted for them? He refused to give a “yes” or a “no.”
Would he revoke the expansion of Medicaid the state undertook last year, as encouraged by the federal health care reform? “We have a Medicaid disaster,” Rauner replied, while declining to say he’d cancel this enlargement. Repeal same-sex marriage? He’d submit that to a voter referendum, and what he’d prefer is “not important.”
I’d like to think that if he became governor, Rauner would be fearless in tackling the state’s pressing problems. But on some of the toughest issues before us, he’s AWOL.
Except for that goofy minimum wage stumble, this is a guy who has mostly kept his eye on the fall election. Yes, he has to evade some things to avoid angering the GOP base, and he’s made his share of errors, but he is more focused on November than any of his Republican opponents, including…
Oy.
*** UPDATE *** Full quote…
“The number one issue I run into when I travel around to manufacturing plants particularly, when I ask them, ‘How’s it going?’ They say, ‘I can’t hire my people back.’ They say, ‘They’re enjoying — I’ll use — their unemployment insurance. And I can’t get them back to work.’ So we’ve gotta motivate people to get back into the workforce.”
In a phone interview after the debate, Brady would not say which manufacturers have said people enjoy their unemployment benefits and are not motivated to return to work.
Rutherford, in responding to the unemployment question at the debate, related the problem to Chicago’s gun violence. Dillard was cut off for time purposes without answering the question.
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* David Ormsby has a long post on a new proposal to revamp school funding…
“The disparity between school districts that have resources and those that don’t is only getting worse, meaning too many children are being denied an equal opportunity for a quality public education,” Manar stated.
Manar’s plan would combine the state’s current funding sources, which each have their own rules, regulations and paperwork, into one funding formula that would account for school districts’ funding needs. The committee recommended ending Chicago’s individual block grant.
The majority of state school funding is provided through General State Aid, which is distributed based on school districts’ needs. But schools also receive separate funding through grants to programs, including special education and transportation, which are not distributed based on need.
* As does Jamey Dunn at the Illinois Issues blog…
. The goals as stated in the report are:
Make use of a single funding formula.
Provide additional funding to at-risk, special education and English-language learner students through the single formula.
Hold districts and students to higher standards.
Require districts to provide greater clarity on how funds are expended.
Guarantee that all districts receive a fair amount of minimum funding from the state.
Ensure that districts retain the same level of funding as under the current funding system for a period of time once a new funding system is adopted.
Include an accurate reflection of a district’s ability to fund education programs within the district.
Equalize taxing ability between dual districts and unit districts.
Review the financial burden placed on school districts through instructional and non-instructional mandates.
Provide additional transparency regarding the distribution of education funding.
The group plans to emphasize equity with a focus on more sunlight in education budgeting at both the state and local levels and an assessment of costly requirements placed on schools by law. “We had significant discussion about the cost of mandates to local school districts and how we can better address those costs on the legislative level,” said Manar, who is from Bunker Hill.
* From Kurt Erickson’s take…
The group found that the majority of state aid flowing to school districts is not based on whether a district can afford to pay for it out of local property tax dollars.
“The disparity between school districts that have resources and those that don’t is only getting worse, meaning too many children are being denied an equal opportunity for a quality public education,” Manar said.
But revamping the formula could mean some districts will get fewer state dollars, triggering turf battles among lawmakers and potentially dooming the proposal.
For example, state aid for Chicago schools is handled differently than funding for downstate schools. If the state’s largest city is in line to see a drop in state aid, members of the House and Senate could ignore Manar’s call for change.
* Sen. Daniel Biss gets the last word…
Illinois’ education funding system is so broken that the state is now sending school districts nearly random amounts of money. For the last three years, aid to schools has been prorated across the board, which is among the least thoughtful and most regressive ways of dealing with a budget shortfall.
That’s why I’m thankful to the members of the Senate Education Funding Advisory Committee for spending the last six months thinking through some of the most complex questions we face and listening to those who directly experience the effects of haphazard state aid. I’m very encouraged by the committee’s recommendations. Rolling most types of state K-12 funding into a single formula is the best way to give local school districts the resources they need.
Changing the formula that distributes money to school districts will never be painless or easy. But the committee’s recommendations are a firm step in the right direction, and I’m excited about supporting and assisting the committee this spring as we work toward a formula that does what it was intended to do.
Finally, any formula is pointless unless we fully fund it. Once we come up with a formula we believe in, we must devote enough state dollars to make it work. Adequate state funding for education must be a primary consideration as we address the state’s budget and tax structure.
Thoughts?
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From the Department of the Completely Obvious
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Press release…
Illinois is among the eight worst states in the country in long-term budget planning, according to a major new report from the Washington, DC-based Center on Budget and Policy Priorities.
Illinois, a state with chronic budget problems, should adopt a set of proven fiscal planning tools that that could help it weather difficult economic times, build an attractive business climate, and make government more effective and efficient, the report finds.
The report examines whether and how well states use ten key fiscal planning tools that fall into three broad categories:
A map for the future: the budget and accompanying documents should include a detailed roadmap of the budget’s immediate and future impacts on the state’s fiscal health.
Professional and credible estimates: standards and sufficient oversight are needed to guarantee that these analyses of the budget’s impacts are professional, credible, and prepared without political influence.
Ways to stay on course: mechanisms should be in place to trigger any needed changes during the budget year, before too much damage is done.
Fiscal planning tools not used at all in Illinois include independent consensus revenue estimates for the coming fiscal year, current services baseline budgets, five-year revenue and spending projections, and a well-designed rainy day fund.
The study is here.
…Adding… The governor’s office points out that Gov. Quinn will be doing some long-term planning when he rolls out his five-year budget blueprint in March. Good point.
Also, the governor’s office clarified something last night via text and I didn’t see it until just a few minutes ago. The budget address has been delayed 8 times since Gov. Jim Edgar’s administration, not 13 as claimed yesterday.
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Question of the day
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Perhaps the biggest news from this morning’s IMA candidates debate…
Republican governor candidates Bruce Rauner and Kirk Dillard opened the door today to consideration of broadening the state sales tax to include services as part of a comprehensive overhaul of Illinois’ tax structure.
“I think it should be in the mix. I’m not prepared to say that’s the answer,” said Rauner, who added that it should be “on the table” in “looking at our entire tax code.”
Dillard, a state senator from Downers Grove, also said he was open to consideration of a broadening of the sales tax. “Maybe,” he said, adding that it would be part of a review of state taxation similar to what Rauner was proposing.
State Treasurer Dan Rutherford and state Sen. Bill Brady of Bloomington were against the idea.
* The Question: Should Illinois tax services? Take the poll and then explain your answer in comments, please.
survey tool
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* Sun-Times…
A new spot that’s hitting TV and radio this week attacks three out of the four gubernatorial primary candidates, sparing only Winnetka venture capitalist Bruce Rauner.
A source with knowledge of the buy said the group — Mid-America Fund — spent roughly $180,000 on broadcast, cable, and radio for this week.
I checked with the State Board of Elections this morning and was told that state law requires disclosure within 10 business days of the formation of the PAC.
As we’ve already discussed, the PAC’s ads began running last Friday. So, it could be next week before we see any state paperwork.
But since this is a 501c4 group, it’s doubtful we’ll ever know who is actually funding the ads.
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Ives: “I’m extremely influential”
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* The Daily Herald interviewed the two candidates for the 42nd House Republican primary, Freshman Rep. Jeanne Ives and Adam Johnson…
“In her time down in Springfield she has not successfully sponsored a single bill that has become law,” Johnson said, while GOP representatives from five neighboring districts have introduced and passed multiple bills in the past year.
Ives confirmed that none of her bills has become law, but argued she filed important, “tough bills” and made comments at committee level that affected legislation that was passed.
“I didn’t go down there to pass Bring Your Parent to School Day. I filed only landmark legislation that will actually do things in Illinois,” she said, while other freshman representatives filed “fluff legislation” that passed.
Ives pointed to a pension bill she filed that would have prohibited members of select state boards or commissions that rarely meet to accumulate pension credits. She said it passed out of the House, but was grabbed by a Democratic senator who refused to pass it off on third reading.
Still, Johnson said Ives has been described as “perhaps the least influential member of the Illinois House,” a quote he took from a comment Rich Miller, a blogger for the website capitolfax.com, made on one of his posts last August.
Ives said Johnson was being “disingenuous, or essentially lying” about someone calling her the least influential because it was from an anonymous comment on a left wing blog website.
In December, Miller wrote a post titled “Careful what you say,” in which he said he did make the comment and notes Johnson’s use of the quote in a news release announcing his candidacy.
Regardless, Ives said she believes she is serving her constituents well.
“The truth is, I’m extremely influential down there, which is why they want to make me sit down and be quiet,” she said. “I went down there to represent the taxpayers of District 42 and I’m doing a great job doing it. The truth is the Democrats don’t want me to have success.”
A left wing blog site? Kinda shows where Ives is on the spectrum.
And “extremely influential”?
Oy.
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Rauner’s charter schools
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* This revelation probably isn’t as bad as it first looks…
Bruce Rauner’s family charity has contributed $800,000 to the scandal-tarred United Neighborhood Organization in recent years, including $750,000 to help expand the Hispanic community group’s network of 16 charter schools in Chicago, UNO records show.
When Gov. Pat Quinn temporarily cut off state funding to the charter operator last year, UNO put $285,000 of the Rauner Family Foundation’s money toward paying bills the state would have covered.
The state and local government gave UNO a whole lot more than Rauner. And that second sentence needs to be fleshed out a bit more…
Rauner says he wasn’t aware UNO used some of his money to make up for the suspended state funding. He also says he didn’t specify how the contributions were to be spent. When Quinn later resumed the grant, UNO replenished the account it had created with the donations from Rauner, UNO records show.
The donations from the Rauner Family Foundation included $250,000 in December 2011, $500,000 in December 2012 and $50,000 in 2010. According to the foundation’s tax returns, the $50,000 contribution was to “improve Hispanic neighborhoods/community.”
If it can be found that Rauner donated to UNO after the allegations became public or even after the governor temporarily shut off the spigot, then that’s something.
Otherwise, he gave UNO some money. UNO put the money into a special fund. UNO suddenly needed cash, so it tapped that fund.
* Another story…
Sarah Howard thought Bruce Rauner was an angel who would rescue her financially troubled, academically struggling charter school in East Garfield Park.
Instead, the would-be Republican candidate for Illinois governor took control of the Academy of Communications and Technology Charter School that Howard started, dumped her as executive director, suspended operations for two years, then turned it over to a national charter school operator.
“Bruce was coming to us, saying he was going to help us strengthen and improve our campus,” says Howard, who now works for the University of Chicago’s Network for College Success. “And instead what happened is he approached it like it was a turnaround that needed to be wiped out, sort of like a venture capital deal — come in, put in new leadership and change everything around. […]
“With the exception of high school test scores, we were outperforming our neighborhood school on every other metric and, in some cases, beating the CPS average,” Howard says. “I’m not saying we were knocking it out of the park, but we were serving the neighborhood well and were improving.”
* But…
Howard and a business partner started ACT in 1997 at a former Catholic elementary school at 4319 W. Washington, offering classes to seventh- through 12th-graders. But ACT’s test scores lagged behind those of many public schools. That led the Chicago Board of Education to deny ACT’s application to renew its charter for five years. The board gave ACT a two-year extension, then two more extensions, through June 2011.
Charter schools are supposed to be innovative and are supposed to go away if they don’t perform up to standards. I don’t think it’s the case that this was a great school by any means, so I’m not sure I can say that this was a bad move by Rauner. But it sure is an insight into how he’d likely govern if elected.
* Another…
On TV, Bruce Rauner has barraged voters with a commercial in which he boasts that he “helped start charter schools” to fight failing educational programs.
Other than giving millions of dollars, though, the Republican candidate for governor doesn’t have much to do with running the Noble Network of Charter Schools, which includes a school that bears his name, according to the head of Noble.
Rauner has “very little” involvement in running Noble’s 14 high schools, which include Rauner College Prep on the near West Side and one middle school, says Michael Milkie, the former Chicago Public Schools math teacher who founded Noble and is now its superintendent and chief executive officer.
Rauner, a venture capitalist and member of Noble’s 20-member board, says: “I’ve never had a role in day-to-day operations at Noble or, frankly, in almost anything I get involved with. My role is generally as a board member or kind of an adviser providing overall strategic advice or feedback. . . . I go to the campus that they named after our family once a year, maybe twice a year, to talk to students and the principal, things like that.”
Discuss.
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Twisting in the wind
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* I take no position yet on the current allegations against Treasurer Dan Rutherford. However, the fact that he’s unable to publicly fight back because the employee won’t officially resign until Feb. 10th bothers me. And the fact that the alleged victim here is remaining anonymous, while understandable on one level, is bothersome on a political level.
So, we get stories like this one…
The employee told the Sun-Times in an interview on Monday that his complaint entailed harassment claims and pressure to do political work. The employee said he found it “unconscionable” that Rutherford characterized his complaint as being tied to political chicanery, rather than taking it seriously. […]
“If the individual decides to speak about his status or reveal his identity, that’s up to the individual,” she said. “The treasurer’s office has done all it can to protect the privacy of the individual even after the individual’s lawyer requested $300,000.”
Pardonnet repeated Rutherford’s assertion, made last week, that an internal review “found no basis in fact for the allegations” against the treasurer.
To that, the employee said: “the extent of the investigation was Dan saying ‘it’s not true.’”
We don’t even know what the specific allegations are. All we’re getting is incredibly vague stuff like this, and while I don’t want to defend inappropriate or unethical behavior, Rutherford is at a major disadvantage here because it’s very difficult to respond to a personnel matter.
* Then again, even if we knew the exact allegations, it could be just a “he said, he said” situation and how does Rutherford disprove that? Word on the grapevine is that others may talk, but that’s just the grapevine. If anything is substantiated by someone else, however, Rutherford is gonna be in major trouble here. Maybe even fatal.
* On the other hand, I am growing more uncomfortable with this “independent” investigator hired by Rutherford. From an e-mail sent to employees yesterday…
Please be advised that employees of the Illinois State Treasurer’s Office may be contacted by Mr. Ron Braver, an independent investigator. If any employee is contacted, any time away from the office necessary to meet with Mr. Braver will be excused.
Rutherford’s people say the investigator will be asking people who have said they’re witnesses or corroborators. But what protections do these folks have? If they refuse to answer to avoid self-incrimination, what will happen to them? Rutherford’s people seem surprised at this question. Of course, they say, nobody’s gonna get fired or punished over what they say or refuse to say.
Under what authority is this investigator operating? Rutherford’s people say the treasurer has the authority to order up such an investigation. But what are the limits of this guy’s powers? No real answer.
Rutherford may be serious about getting to the bottom of this. But this probe could also be used to smoke out his interior enemies.
Here again, Rutherford appears to be at a disadvantage. I’m not sure how to resolve this in the time available before the primary. On the one hand, I feel quite bad for the guy. On the other, we do have to take this stuff seriously and he will eventually have to answer questions. But how? And when?
* And the Tribune has a valid point today…
Which brings us to Dan Rutherford, who is mishandling a crisis he initiated Friday when he called a news conference to deny allegations that hadn’t been voiced elsewhere — and that he wouldn’t discuss. Rutherford accuses Rauner of fomenting this unspecified situation as an attack on him — “I believe in my heart Mr. Rauner is responsible.” Yet Rutherford offers no proof. Rutherford has a strong record and, as the only player in this foursome who has won statewide office, is a strong contender. But his quest to make the front-runner in this campaign the villain will boomerang if he can’t produce evidence: During the most challenging moment of his government career, Rutherford needs to assure voters that he’s not challenging the ethics of an opponent as part of a desperate political distraction play.
Discuss.
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* Tribune…
Former Mayor Richard Daley, his family and members of his administration did not try to influence the investigation into the 2004 death of David Koschman, a special prosecutor concluded in a report released today.
The special prosecutor, Dan Webb, interviewed Daley, eight of his relatives and numerous others as part of a grand jury investigation into whether a Daley nephew, Richard “R.J.” Vanecko, received preferential treatment from Chicago police or Cook County prosecutors handling Koschman’s death. Read the report here.
Vanecko, 39, pleaded guilty Friday to involuntary manslaughter and was sentenced to 60 days in jail, followed by 60 days of home confinement and then 2 ½ years of probation. The guilty plea stemmed from his April 2004 confrontation with David Koschman in the Rush Street night light district, a verbal altercation that turned violent when the much larger Vanecko punched Koschman in the face, leaving him with injuries he died from 12 days later.
At issue in the report was how authorities handled the investigation into the incident, both at the time and when the case was reopened in 2011 after an investigation by the Chicago Sun-Times raised questions about whether police had intentionally concealed evidence because of Vanecko’s clout.
* Sun-Times…
Former Chicago Mayor Richard M. Daley, one of his top aides and others in Daley’s Chicago Police Department knew “shortly after the incident” that the mayor’s nephew was involved in the drunken confrontation that led to David Koschman’s death — even though police reports say detectives didn’t learn of the nephew’s involvement until 18 days later.
“According to Matthew Crowl [former mayoral deputy chief of staff for public safety], he was informed by someone at CPD of Mayor Daley’s nephew’s involvement in the incident on Division Street and immediately informed Mayor Daley in person of what he had heard,” according to a 162-page special prosecutor’s report released Tuesday about how police and prosecutors handled the case of Richard J. “R.J.” Vanecko, Daley’s nephew.
“While Crowl was uncertain of the exact date, he believed he became aware of the Koschman matter shortly after the incident,” the report continues. “It was not clear whether Mayor Daley was already aware of the incident when Crowl made the disclosure to him.”
In his interview with investigators for special prosecutor Dan K. Webb, Daley himself “did not recall Crowl advising him of the incident,” the report says.
Daley “stated that he learned about the Koschman incident ‘sometime’ after it occurred, although he was unable to say exactly when. Mayor Daley also stated that he had made it clear to his staff and the public that because he was Vanceko’s uncle, he had recused himself from any involvement in the Koschman matter.”
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Today’s numbers
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* From COGFA’s newly released study of business tax incentives…
According to the latest information from the Comptroller’s Tax Expenditure Report, businesses in Illinois benefited from over $1.15 billion business related tax expenditures.
* The largest tax expenditures reported in the FY 2012 issue were:
1. Sales Tax Expenditures:
* Manufacturing and Assembling Machinery and Equipment Exemption ($183 M)
* Retailer’s Discount ($121 M)
* Rolling Stock Exemption ($74 M)
2. Corporate Income Tax Expenditures:
* Illinois Net Operating Loss Deduction ($219 M)
3. Other Tax Expenditures:
* Sales for Use Other than in Motor Vehicles Exemption ($116 M)
According to a Department of Revenue report, in 2012, Enterprise Zone, High Impact Business, and River Edge Redevelopment Zone tax incentives resulted in the State foregoing approximately $115 million in tax revenue.
In the aggregate, businesses receiving tax incentives reported creating 4,671 jobs and investing approximately $3.7 billion in 2012
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* Sun-Times…
The Illinois State Treasurer employee behind allegations against State Treasurer Dan Rutherford resigned from his position Monday, the employee told the Sun-Times.
The man, who asked that his name not yet be used, said he submitted his resignation letter Monday following what he called an “intimidating” news conference held by Rutherford on Friday, with a former FBI agent at his side. […]
The employee told the Sun-Times in an interview Monday that his complaint entailed harassment claims and pressure to do political work.
Apparently, the employee took compensatory time, so his resignation doesn’t become official until Feb. 10, meaning the treasurer’s office can’t yet comment.
*** UPDATE *** WUIS…
A man who says he was a victim of sexual harassment by Treasurer Dan Rutherford has submitted a letter of resignation. […]
The alleged victim describes unwanted advances by Treasurer Rutherford, and accuses him of trying to force state employees to work on behalf of his campaign for governor.
Oy.
We are all really in for it now.
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* Not unexpected…
Proposing a budget that lays out major cuts is something nobody wants to do before a primary, even when one’s primary opponent has no money.
But this is kinda wimpy, if you ask me. Let’s get it out there.
…Adding… Quinn’s office says the governor is also expected to outline a five-year spending blueprint. Says budget address has been postponed 13 of past 20 years.
*** UPDATE *** Hmmm…
Chicago Teachers Union spokeswoman Stephanie Gadlin said it was no secret the CTU was planning a “mass rally around pensions” on the day of the budget address.
“The governor and the legislators can run but they cannot hide from their constituents who are trying to fend off a municipal pension heist by Rahm Emanuel,” Gadlin said. “Be it Feb. 19 or sometime in March—the CTU will be there.”
*** UPDATE 2 *** SGOPs…
Senate Republican Leader Christine Radogno on Governor Quinn’s requested delay in budget presentation:
“We have been accommodating when it made sense. For example, Governor Quinn’s first year in office. But to push back the presentation of the state’s budget by five weeks for purely political purposes is a disservice to the taxpayers. It’s an abuse of the legislative process and I resent it.”
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Question of the day
Monday, Feb 3, 2014 - Posted by Rich Miller
* My favorite headline so far about the 2014 race is about Treasurer Dan Rutherford’s highly unusual Friday press conference. The headline comes to us from the Chicago Tribune…
GOP governor candidate denies unknown allegations
That about sums it up.
* The Question: What would be your own headline for the 2014 campaign to date?
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SOTS fact checking
Monday, Feb 3, 2014 - Posted by Rich Miller
* The AP fact checks some of Gov. Pat Quinn’s claims about the Illinois economy during his State of the State address…
Quinn said Illinois has added 280,000 private-sector jobs since recovery began — officially that was in January 2010 for Illinois — and that statewide unemployment is at its lowest level in almost five years.
“In fact, since last May, Illinois has led the Midwest in new jobs created,” the governor said.
The first two points are accurate, but if you compare it with other states, Illinois doesn’t always stack up well.
According to the federal Bureau of Labor Statistics, a net 276,800 private-sector jobs have been added in Illinois since January 2010. That’s a 5.6 percent increase.
In that time, many Midwestern states have done better. Wisconsin’s private-sector job base has grown by 5.7 percent, Indiana’s by 8.8 percent, Michigan’s by 9.2 percent and North Dakota’s — driven by the state’s petroleum boom — leads the way at 30.2 percent.
Unemployment, which reached a recession-high of 11.3 percent in January 2010, was at 8.6 percent in December, the most recent month available from the Illinois Department of Employment Security. That’s its lowest point since the 8.5 percent rate in February 2009.
But the current unemployment rate is the third highest among the 50 states, lower only than in Nevada and Rhode Island.
Interesting stuff. Go read it.
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Lawyer: Focus is on political work
Monday, Feb 3, 2014 - Posted by Rich Miller
* Speaking from years of experience watching these things play out, make sure to take all of this with a very big grain of salt…
A lawyer for a worker in the office of Illinois State Treasurer and Republican Gubernatorial candidate Dan Rutherford, says her client might not be the only Rutherford employee making allegations against him.
Christine Svenson was on WLS Monday morning with Bruce Wolf and Dan Proft. She says other Rutherford employees may come forth as well with their own accusations: “There may be others. Absolutely.”
Svenson says her client accuses Rutherford of forcing him to do political work on state time, and she says her client may make other allegations in the future. She would not comment on whether some of those allegations could pertain to sexual harassment:
“I can’t comment on that right now. Right now we’re focused on the first amendment claim. We may, you know, I don’t want to box myself in, we may be adding other claims. Don’t speculate, I’m not saying that it’s what you just mentioned, it could be a couple of other different things, we’re just not ready to go there yet”
* Again, take a deep breath here. Lawyers can often bluff a whole lot before they do something. Sometimes they have the goods (George Ryan’s troubles started with a civil lawsuit), sometimes they don’t.
But, whatever the case, this campaign seems likely to veer into uncharted territory during the next week or two.
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We’ll take whatever we can get
Monday, Feb 3, 2014 - Posted by Rich Miller
* A tad bit of good news…
Illinois’s borrowing costs have fallen to the lowest level in six months as investors join Governor Pat Quinn in wagering that a law bolstering the worst-funded state pension system has “stopped the bleeding.”
The extra yield demanded on 10-year Illinois debt relative to AAA munis reached 1.43 percentage points on Jan. 30, the least since July 18, as the state prepares a $1 billion general-obligation bond sale this week, according to data compiled by Bloomberg. The fifth most-populous state already spared taxpayers more than $20 million on an offering in December, less than two weeks after legislators passed a pension bill that saves $145 billion over 30 years. […]
Illinois “is perceived as being on the right trajectory,” said Konstantine “Dino” Mallas, who helps oversee $20 billion of munis at T. Rowe Price Group Inc. in Baltimore. “I wouldn’t say they’re out of the woods, but maybe they’ve stopped digging themselves into a deeper hole.”
* And we’re not even in the top ten?…
According to a new report at Business Insider, Illinois is the 16th most corrupt state in the U.S. The ranking system looked at number of people convicted of public corruption, per population.
By this metric, Louisiana is the nation’s most corrupt state, with over nine public convictions per 100,000 residents. The states with the fewest conviction rates were South Carolina, Oregon, Washington, New Hampshire, Minnesota and Utah. Each of these had 1.3 convictions or fewer per 100,000.
…Adding… I think Greg Hinz is really on to something, at least as far as the corporate recruiting world is concerned…
The good folks at the Indiana Economic Development Corp. have had lots of fun at Illinois’ expense in the past couple of years, running a ton of ads here and other places about how Indiana is a far better place to locate a business than Illinois.
But now, the boys and girls from the Land of Lincoln think the Hoosiers have given them something to fight back with.
In the Indiana Senate, after clearing the state House earlier in the week, is a bill that would insert a ban on same-sex marriage in the Indiana Constitution. While the measure, at least as now written, would leave the door open to civil unions and would have to be approved by voters, it’s exactly the opposite direction that many states are headed in now, including Illinois, where gay marriage becomes legal on June 1.
Passage of the bill would be “a negative sign to business,” said Doug Whitley, CEO of the Illinois Chamber of Commerce. “That’s a mistake for the Indiana Legislature to take that path.”
Allowing same-sex couples to wed and related matters “are a determinant of where you want to live and work,” he added.
The same point comes from Adam Pollet, director of the Illinois Department of Commerce and Economic Opportunity: “Illinois is open for business. We want all the business here, and all of the people in those businesses,” he told me.
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Mo’ money
Monday, Feb 3, 2014 - Posted by Rich Miller
* Ken Griffin, the richest man in Illinois, has written his second $250,000 check to Bruce Rauner’s campaign.
* Rauner has expanded his cable TV buy. From Comcast…
Bruce Rauner, Republican candidate for IL Governor
Agency: Access Media, LA
Flight Dates: 2/4 – 3/17/14
Chicago I+ Total: $239,238
Central IL Total: $19,344
Networks: AEN, CSNC, ESPN, HIST, TVL, USA
All dayparts purchased in all zones
Syscodes / Zones / $ by zone
5170 / Chicago Interconnect / $184,410
9804 / DirecTV Chicago / $32,436
9810 / DISH Chicago / $22,392
7800 / Champaign IC $4,404
6872 / Galesburg / $1,560
7827 / Peoria Interconnect / $8.706
7829 / Rockford / $2,496
6805 / Sterling Rock Falls / $2,178
Total All zones: $258,582
* And so far, I think, I’m the only one to write about that new IE ad which blasts Rauner’s three opponents. The group has launched its cable buy…
Mid America Fund
Targeting IL GOP Gubernatorial Primary
Agency: newday Media Services, Atlanta,GA
Total Chicago Order: $82,000
Total Central IL Order: $10,001
Flight dates: 1/31 – 2/16/14
Networks: FXNC, HIST, TWC
Dayparts: 9A-4P, 7P-midnight
Syscodes / zones / $ by zone
5170 / Chicago Interconnect / $82,000
7800 / Champaign Interconnect / $3,571
7827 / Peoria Interconnect / $3,820
7829 / Rockford Interconnect / $2,610
Total All Markets – $92,001
Keep in mind that both Rauner and Mid America Fund are also on network TV and radio.
By the way, the State Board of Elections is still not showing any paperwork filed by Mid America Fund.
* And while the Rauner campaign has filed amended disclosure reports to list employee names, Jon Zahm points to a complaint filed by Steve Shearer with the State Board of Elections that brings up another topic…
Shearer and Stern have identified another serious problem that has so far eluded the mainstream media. It is the fact that Rauner had staff and campaign activity well before he began reporting to the State. Once he reached $5,000 (until recent years it was $3,000) in loans or spending by the campaign he was required to file and disclose. It is highly questionable if this was done in a timely fashion. Consider:
Shearer is also hoping this ISBE investigation will allow a look into Rauner paying campaign staff and other campaign expenses BEFORE he established his campaign with the ISBE in March 2013. Illinois has a $3,000 threshold for raising or spending money in a campaign effort after which it is mandatory to file a D-1 Statement of Organization establishing a campaign and begin filing quarterly reports disclosing all contributions and expenditures. If this investigation does not investigate those separate potential violations, Shearer is prepared to launch further legal complaints.
The full complaint is here.
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Love is not political
Monday, Feb 3, 2014 - Posted by Rich Miller
* State Rep. Jil Tracy…
“How can it help rebuild our Republican Party to elect a governor who has voted in the 2006 Democratic primary, and … when asked about his donations to Democrats rebuts it and says his liberal Democrat wife is the one that made those,” Tracy said of Rauner at a Sangamon County Republican Network lunch at the Sangamo Club. Also speaking was Tracy’s running mate, state Sen. Kirk Dillard, R-Hinsdale.
“I don’t want a first lady in the mansion that’s a liberal Democrat,” Tracy added.
You gotta be kidding me.
* Sen. Dillard’s response…
Dillard said Tracy “has her own opinions,” but he thinks there are “plenty of issues” he can use against Rauner “without involving his wife.”
Exactly, and Rep. Tracy ought to do the same. I mean, c’mon.
I’m pretty sure that I’ve told you this before, but it’s worth saying again.
* When I was growing up, my father was a Goldwater/Nixon Republican and my mother was a Gene McCarthy Democrat. As you might imagine, I was witness to more than a few political, um, discussions.
And it continued after my dad left the Republican Party in disgust and backed Barack Obama for president. My mom enthusiastically supported Hillary Clinton and was heartbroken when she lost to Obama.
But those heated disputes never stopped Mom and Dad from loving each other. They celebrated their 52nd wedding anniversary last fall. The heart is a weird thing sometimes. And nobody else has a right to judge that.
* So, in context, this response was appropriate…
Mike Schrimp, spokesman for Rauner, said via email, “While Rep. Tracy may have forgotten that the governor’s mansion belongs to all the citizens of Illinois, I am confused why she wants someone who made a TV ad for Barack Obama and teamed with Rod Blagojevich to increase the state’s debt to live there.”
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* The Sun-Times has a story today that other reporters were tipped to by the Bruce Rauner campaign. The lede…
In his three years as Illinois treasurer, Dan Rutherford has demonstrated a penchant for globe-trotting unlike any of his predecessors over the past quarter century.
* But there’s a hidden agenda behind the desire to get Rutherford’s travel schedule under a microscope. Take a deep breath first and remember that it’s high campaign season.
OK? Are you ready?
I’m really not, and I do this with great trepidation and anxiety, but here we go…
During each trip, Rutherford received his taxpayer-funded salary, as did his executive assistant, Josh Lanning. Lanning often travels with the treasurer, including on a personal excursion to Australia in 2011, which Rutherford has described as a “few weeks” in length in June of that year.
Fewer than two months later, Rutherford was in flight again, traveling to China, where he and his executive assistant spent 15 days. […]
“Most constitutional officers that are invited by another country, they have staffing that goes with them. Josh travels with the treasurer a lot, day in, day out,” Bragiel said. “He just works alongside the treasurer. He is an executive assistant to the treasurer and helps out with the day-to-day responsibilities with Treasurer Rutherford. I don’t think it’s unusual; most constitutional officers have staff with them.”
Photos on Rutherford’s Facebook page show the treasurer diving in the Red Sea, posing with Lanning next to the Wailing Wall in Israel as well as trekking through remote regions of the nation. […]
Lanning was not on work time but on “benefit time,” during the Australia trip, Olson said. Olson explained that as time given to newly hired employees who were allowed to transfer in previously earned vacation, sick or comp time on state time. […]
The office said two taxpayer-funded trips — on March 25-27, 2011, to Washington, D.C., and Sept. 15, 2011 to New York — are examples of Rutherford being so cognizant of travel expenses he shared hotel rooms with Lanning.
“As you know, anytime you go to New York or D.C., hotel rooms are outrageous,” said Kyle Ham, Rutherford’s chief of staff. “So decisions were deliberately made for Dan and his executive assistant, Josh, to double occupy.”
Ugly. Just freaking ugly.
Ugh.
* I’ve been thinking about this topic all weekend, and I’ve come to the conclusion that the best way to deal with it is head-on. The Rauner campaign was clearly trying to back-door some salacious allegations about Rutherford with that travel story. While I remain unconvinced that Rauner was behind the Cristine Svenson matter, I do believe he was at least partly behind the revelations in that Sun-Times story.
The thing is, knowing him as I do, I’m not sure that Rutherford really thought much of this stuff.
Constitutional officers really do travel with staff. And Rutherford is, indeed, quite cheap. And, for just about any other male candidate, bunking in the same room with another guy is absolutely no big deal.
* Plus, from all I know (and I’ve known about this “hotel story” for months), the travel aide is most definitely not having any sort of inappropriate or unprofessional relationship with Rutherford. Period. End of story. To even suggest otherwise is just way over the line. There is no there there.
Rutherford is an unmarried man, so that gives certain people license to spread lies about him. And in this case, at least, these are most definitely lies.
Move along.
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Poll shows collateral damage
Monday, Feb 3, 2014 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Without a doubt, the most overlooked aspect of Bruce Rauner’s multi million-dollar TV ad buy has been his advertising campaign’s repeated attacks on Gov. Pat Quinn.
“Career politicians are running our state into the ground, and Pat Quinn, he’s at the top of the heap,” Rauner says in one of his ads that have permeated the airwaves since last November. “Pat Quinn, a career politician who failed to deliver term limits,” a Rauner TV announcer declares in another spot.
The millions of dollars worth of ads are supposedly aimed at Republican primary voters, but, obviously, everybody else in the state is seeing them as well. And Quinn, who doesn’t have a well-funded primary opponent, hasn’t bothered to rebut any of Rauner’s multiple attacks. That could’ve been a huge mistake, particularly considering Illinois’ persistently high unemployment rates, the hostile national climate, the never-ending negative stories about the state’s finances and Quinn’s four-year history of low job performance scores.
If a new Capitol Fax/We Ask America poll is accurate, then Rauner’s months-long unrebutted attacks have helped knock Quinn into a shockingly deep hole.
According to the poll of 1,354 likely general election voters, all four of Quinn’s potential Republican primary opponents have pulled ahead of the long-unpopular Democratic governor.
The poll, taken January 30th, found that Sen. Bill Brady leads Gov. Quinn 48-39. Sen. Kirk Dillard and Treasurer Dan Rutherford are ahead of Quinn 46-37. And Rauner leads the governor 47-39.
The self-described party affiliation in the poll was 22 percent Republican and 38 percent Democratic, while 40 percent said they were independents. Nineteen percent of the polling universe was cell phone users.
“Pat Quinn has made a career out of overcoming the odds and the electorate clearly know more about him than the others,” said pollster Gregg Durham. “When that balances out, we may see a dramatically different picture.”
Yes, we may. But right now, voters know Pat Quinn and they really don’t like him.
According to the poll, which had a margin of error of +/-2.7 percent, a whopping 59 percent of likely voters disapprove of Gov. Quinn’s job performance. A mere 29 percent approve of his job performance and 12 percent were undecided.
The poll has Quinn leading his opponents in Chicago, but nowhere else. He’s ahead of Brady 63-25 in the city, and his lead there is similar against the other three as well.
But the Republicans average a surprising six-point lead over Quinn in the Cook County suburbs, which have been trending Democratic for years.
The margin was much higher in the collar counties, where the Republican field led Quinn by an average of 12 points each.
Downstate, though, Quinn is getting absolutely crushed. The GOP candidates’ average lead is a gigantic 30 percentage points each.
Take a look at the regional job approval breakdowns and you’ll see what’s behind this. According to the poll, a whopping 73 percent of Downstaters disapprove of Quinn’s job performance, while a mere 19 percent approve. Another 62 percent of collar county voters disapprove and just 32 percent approve. Suburban Cook voters disapprove of Quinn’s job performance by a 56-25 margin. Only in Chicago is Quinn above water, and even there, just 49 percent approve of his job performance, while 32 percent disapprove.
Among women, Quinn is doing just barely OK. He’s ahead of Brady and Rauner by a point, in front of Dillard by two points and trails Rutherford by a point.
Men, however, are going overwhelming for his Republican opponents. Brady leads Quinn by 24 points among men, Dillard leads him by 25 points and Rauner and Rutherford lead by 21 among males.
According to the poll, a mind-blowing 62 percent of men disapprove of Quinn’s job performance, while 57 percent of women disapprove. His approval ratings are abysmal. Just 24 percent of men approve, while 31 percent of women think he’s doing a good job.
The Republican candidates are also whomping the governor among independents, where they’re averaging a 56-24 lead.
The bottom line here is that the mostly union-financed TV advertising attacks on Bruce Rauner, which will supposedly kick off this week, had better do their magic and disqualify the newcomer or the kabillionaire candidate will just stay on the air until the fall, keeping his advertising foot on the governor’s already hobbled political neck for the rest of the year. It won’t be pretty.
Subscribers, of course, have complete crosstabs and all questions.
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Oh, this is not good at all
Monday, Feb 3, 2014 - Posted by Rich Miller
* State Rep. Darlene Senger (R-Naperville) was supposed to be a gold standard challenger to Democratic Congressman Bill Foster. But, check out her quarterly fundraising report…
Total Contributions (other than loans) $49,474.00
Are you kidding me?
* To give you an idea how horrible that is, Senger raised less than the hapless Erika Harold did in the 4th quarter…
Total Contributions (other than loans) $64,379.78
* Senger raised about $210,000 all last year. Her main GOP primary opponent, Bert Miller, recently got into the race and he reported raising $261K in the 4th quarter alone. He also loaned himself $50K, leaving him with a quarter-ending cash on hand balance of $247K. Senger had $64K left over at the end of December.
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Swing and a miss?
Friday, Jan 31, 2014 - Posted by Rich Miller
* OK, so more than a few of us in and out of the media know the identity of Treasurer Dan Rutherford’s accuser. I’m not naming him because of the sorts of allegations that are being made and the fact that neither side is talking yet.
And I’m not gonna make any judgement on the validity of the allegations leveled against the treasurer. I haven’t seen the documents. I don’t know nearly enough about the details to say one way or the other.
* But it’s the other aspect of this strange day that has really made me curious. Is Bruce Rauner somehow behind this? Did Rauner or his henchmen gin it up? The Rauner campaign’s brief use of the accuser’s attorney was trumpeted by Treasurer Rutherford as proof that Rauner concocted this. If true, that’s an atomic bomb.
Except, here’s the thing. The accuser has been involved in city and state Democratic politics for a long time. He went to work for the treasurer’s office because he was apparently friends with Rutherford, who even attended the guy’s wedding.
The accuser is refusing to talk at the moment, but I gotta say that as of right now I really just don’t see a plausible “blame Rauner” connection to these allegations.
This will have to play itself out quite a bit more. Be patient.
…Adding… It’s gonna get really ugly, campers…
Sources with knowledge of the allegations say that the male employee is lodging both EEOC harassment allegations and a First Amendment complaint against Rutherford.
…Adding more… This isn’t really a major item or anything, but Christine Svenson, the alleged “Rauner lawyer” who’s been working for the Rutherford accuser has a photo of herself with Rutherford’s running mate on her Facebook page…
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* The Sun-Times has a statement from the attorney for a Dan Rutherford employee who has made allegations against the gubernatorial candidate. Rutherford has blamed Bruce Rauner for being behind the case. But the lawyer flatly denies it…
“My client came to me a couple of weeks ago with serious and real allegations concerning Mr. Rutherford.” […]
“This morning, Mr. Rutherford chose to make this matter about politics — probably because the facts are so troubling. I have nothing against Dan Rutherford, and have no horse in the governor’s primary race.” […]
“My client had initiated a claim with the Inspector General of the Treasurer’s Office before coming to me,” Svenson said in her statement. “After investigating the evidence, we elected to contact Mr. Rutherford’s office directly. Mr. Rutherford’s general counsel and in-house counsel both expressed a strong interest in keeping the matter private, and also expressed an appreciation for our willingness to do so. We were exchanging information and negotiating on a good-faith basis for days until as recently as yesterday. These types of negotiations are, in my experience, common with regard to the Treasurer’s office and have nothing to do with politics or the gubernatorial primary.”
I’ve also been working this story and have serious doubts that the Rauner campaign had anything to do with the attorney in question or the case itself. From what I know at the moment, the person who referred the accuser to that attorney had no relationship with the Rauner campaign.
So, if the “blame Rauner” aspect blows up, then what happens if the actual allegations surface?
Oof.
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Reader comments closed for the weekend
Friday, Jan 31, 2014 - Posted by Rich Miller
* My buddy Kevin Artl lost his dad a few days ago, so Kevin got to choose this week’s song. And, man, it’s a good one…
Walk with me to the fountain
And hold onto my arm
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Still going strong
Friday, Jan 31, 2014 - Posted by Rich Miller
* Jim Nowlan has a great column about longtime lobster Dick Lockhart…
Full of spit and vinegar at 90, Richard Lockhart has for 55 years been the gold standard in lobbying Illinois government — that is, in getting the right information in the right format to the right people at the right time.
Lockhart has some suggestions for small organizations and individuals with interests in legislation.
A combat infantryman in World War II, Lockhart’s anti-tank company was overrun by the Germans during the Battle of the Bulge. As a prisoner of war, he suffered frost-bitten feet, which bother him to this day.
In 1954, Dick Lockhart worked on the successful effort to redistrict the Illinois legislature, which hadn’t been done since 1901.
A Chicagoan, Dick set up his own lobbying shop in 1958 and has carved out a niche of representing small statewide organizations that lack the big money to contribute heavily to candidates and officials.
His first client was the Mental Health Association of Illinois, and Dick is still their lobbyist.
In 1969-70 Dick served as a special consultant to the state Constitutional Convention. He convinced Con-Con president Sam Witwer to put the convention product to the voters in a special election, when only those with an interest one way or the other would vote for it, rather than in a general election, when the question would be weighed down by voters who knew nothing about it.
As a result, the 1970 Constitution was enacted.
* Unfortunately, Politico Influence misinterpreted the column as an obit. Its headline: ILLINOIS LOBBYING ‘GOLD STANDARD’ DIES.
Um, Dick ain’t dead.
Far from it.
In fact, he’s having a 90th birthday party at the Sangamo Club on February 5th from 5-7.
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Question of the day
Friday, Jan 31, 2014 - Posted by Rich Miller
* Cartoonist Scott Stantis sent out this narrative along with his latest cartoon last night…
Illinois House Speaker Michael Madigan has proposed a coporate income tax cut. This, in an attempt to beautify a business environment he and his fellow Democrats have polluted for decades,
It may be a good first step for slowing the free fall the state is in towards the bottom of the list of states to do business in. We have one of the highest unemployment rates in the country. (It hasn’t budged in over a year). Businesses leaving in droves and virtually zero new business start-ups.
Something tells me it is going to take a lot more than a maybe tax cut to stop the hemorrhaging.
* The cartoon…
* I don’t disagree with much of what Stantis said, and I kinda like the cartoon. And I really don’t want to make the comments about Stantis here.
But, “virtually zero new business start-ups”? C’mon. Just hang out in Chicago for a while and you can’t miss the growth. There are things happening there, and elsewhere in this state.
Coincidentally, check out this Wednesday story from EconomicModeling.com…
As we documented in a new analysis with CareerBuilder, Texas created 22% of the nation’s net private-sector business establishments from 2009 to 2012 (more than 29,000). New York created 16% of all net establishments (nearly 21,000) and Illinois created 14% (18,000-plus). That’s more than half of all net establishments since the end of the recession in three states. [Emphasis added.]
Wait.
14 percent of the net private-sector business establishments created in the country were right here in Illinois?
And if you look at their chart, Illinois was 7th in the nation in per capita new business establishments.
Who woulda thunk that?
* The Question: What slogan should Illinois use to combat the pervasive negative stereotyping about it?
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* Oh, this is not good at all. Check out state Rep. Mike Bost’s 4th Quarter fundraising report for his congressional bid…
Total Contributions (other than loans) $63,000.92
Net Operating Expenditures $62,019.30
Cash on Hand at Close of Reporting Period $43,549.47
Yikes. 63 grand raised in a quarter? I know state legislative candidates who’ve raised more than that.
Bost’s Democratic opponent Bill Enyart has not yet filed.
…Adding… From an Enyart press release…
Enyart for Congress will report the campaign raised $180,352 in the 4th Quarter of 2013 and ended the year with $407,619 cash on hand.
* From a column earlier this week in the Sauk Valley newspaper…
Bobby Schilling, R-Colona, said he makes about 10 to 20 fundraising calls a day.
That’s it? Not much. And if he’s telling a reporter that, you wonder how many calls he’s really making, particularly considering his latest quarterly fundraising report…
Total Contributions (other than loans) $122,046.95
* From The Hill…
Rep. Cheri Bustos (D-Ill.) hauled in $330,000 in the last three months of 2013 and has more than $800,000 in the bank, her campaign announced Monday morning.
Bustos raised more than $1 million in 2013 for her rematch against former Rep. Bobby Schilling (R-Ill.), a strong figure for the freshman congresswoman.
Better start making more phone calls, there, Bobby.
Just sayin…
* In other news…
Vulnerable Rep. Rodney Davis, R-Ill., raised $280,000 in the fourth quarter, according to figures provided first to CQ Roll Call. Davis starts the election year with $1.05 million in the bank for this top-target race.
His fourth-quarter haul marks his lowest of the year. Last quarter, Davis raised $300,000, and he posted $455,000 between April 1 and June 30.
Operatives anticipate House Republicans will post relatively low fundraising in the fourth quarter, thanks in part to the government shutdown in October. The three-week-long federal government closure prevented many incumbents from dialing for dollars. […]
On the Democratic side, former Judge Ann Callis and physics professor George Gollin are seeking the Democratic nod. Callis raised $255,000 in the fourth quarter and has more than $500,000 cash on hand going into the March primary, her campaign announced on Tuesday.
Neither George Gollin nor Republican Erika Harold have yet filed.
* Freshman Democratic Congressman Brad Schneider raised $340K. Former Republican Congressman Bob Dold raised $304K.
* On the other hand, the RGA is going gangbusters…
The Republican Governors Association significantly outpaced its Democratic counterpart in 2013 fundraising.
According to totals released Thursday, the Democratic Governors Association announced that it raised about $28 million in 2013 across its three committees. The RGA announced earlier this week that it raised $50.3 million in 2013 through its 527 committee.
The RGA — which normally does not release additional fundraising numbers — told POLITICO Thursday that it raised another $2.2 million through an affiliated nonprofit. That brings its total cash haul to $52.5 million in 2013 — close to double what the Democrats raised.
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*** UPDATE 1 *** Here’s the video version…
Click to view
*** UPDATE 2 *** Script…
More pay for them, higher taxes for you.
That’s what career politicians do.
Career politicians like Bill Brady, Dan Rutherford and Kirk Dillard.
Together, they’ve spent over 60 years in Springfield.
They’ve voted to increase their own pay, and supported millions in porkbarrel spending.
And to pay for it all, they stuck Illinois families with higher taxes
Call career politicians Brady, Rutherford and Dillard. Tell them we can’t afford higher taxes and wasteful spending.
*** UPDATE 3 *** My mom says the TV ad is playing in the Quad Cities.
[ *** End Of Updates *** ]
* A reader sent this in earlier today…
Sorry for short hand. In a rush today.
Just heard radio ad on WTAX at 754 this morn. Repeated other 3 candidates names several time calling the career politicians, pork barrel, raising taxes to pay for their excess - all the red meat empty rhetoric dog whistle. Encouraged listener to call all 3 & gives numbers.
Does not mention rauner, & says paid for by Mid America Fund. Another Ohio situation?
Also - does not mention governor race at all. Just those three calling them tax raising pork barrel etc etc etc & encourages you to call each one of the 3 and gives numbers.
* I haven’t been able to find a copy of the ad yet. Kinda got distracted by the Rutherford stuff. But I’m looking around. The committee is not yet registered with the Illinois State Board of Elections as far as I can tell.
In the meantime, ironically enough, it turns out that the not-for-profit Mid America Fund appears to have been created on January 13th by an Ohio-based registered agent…
Roberta J. Mertz
44904 Kacsmar Estates Dr
St. Clairsville, OH 43950
In case you’re wondering, the SuperPac that went after Aaron Schock last year was based in Ohio. Schock claimed that Bruce Rauner was behind that attack. Rauner has denied it.
* I’m also told the buy was done by NewDay Media Services out of Atlanta, GA.
I’ll keep searching for the audio.
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* Sun-Times…
llinois Treasurer Dan Rutherford who is running for governor, is calling a news conference Friday to address allegations made against him, according to a source.
There is nothing involving him dropping out of the race, according to a campaign spokeswoman.
The spokeswoman said the press conference in response to “bad behavior” related to another candidates in the primary race.
The presser begins at 10:30 this morning.
I’ll let you know what’s happening.
* Let’s do a ScribbleLive feed…
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Behind the MJM tax cut proposal
Friday, Jan 31, 2014 - Posted by Rich Miller
* Greg Hinz looks at House Speaker Madigan’s surprise proposal to cut the corporate income tax rate in half…
Now, few people ever decipher exactly what the speaker is up to. And the plan comes at a time when both the sad shape of the state’s economy and its weak finances are drawing tons of attention in the Legislature and on the gubernatorial campaign trail.
So, I’d view the Madigan proposal as a bit of a conversation-starter. But as Illinois Chamber of Commerce President and CEO Doug Whitley puts it, “When Mr. Madigan is the person pushing it, I take it seriously.”
Mr. Whitley’s suspicion is that the speaker may want to lower the tax rate while widening the tax base by eliminating exemptions and “loopholes,” something that could get a lot of support. And there appears to be no question that while some Illinois taxes are relatively low, the corporate income tax puts this state at a competitive disadvantage relative to neighboring states.
So, maybe that’s it. Or maybe the speaker fully knows his proposal faces an uphill battle to get past Senate President John Cullerton and Gov. Pat Quinn, and therefore is just snagging a bit of easy pro-biz protection for his caucus.
I think Whitley and Hinz are both probably right.
* House Republican Leader Jim Durkin was more suspicious of Madigan’s motives…
“Is this a bait and switch to move to a graduated tax, which House Republicans oppose?”
I don’t think MJM is all-in on the graduated tax proposal, but props to Durkin for getting that “which House Republicans oppose” phrase into the story.
* But I really doubt these revenue claims can be achieved on their own…
Madigan’s office doesn’t believe it would leave a massive hole in the budget.
“I think if you look at what happens in other states, and what is likely to happen here, that the moneys that might be lost in terms of tax rate and the existing number of employers will be offset by growth in terms of employers and employee wages,” Brown said.
Brown says the idea is a more fair, across-the-board way of attracting and retaining businesses, versus giveaways for select big companies.
Without any corresponding loophole closures, you’d have to grow the economy in a very big way to make up for that annual $1.5 billion budget hole.
* Tribune editorial…
And now, with the gubernatorial candidates of both parties failing to make much of an impression on what Illinois should do about income taxes, Michael Madigan positions himself as the leader to watch.
We hope he’ll think broadly about this state’s high spending and the overall tax scheme that enables it. Example: Should the scheduled rollback in income tax rates be linked to a reduction in state sales tax rates and application of that tax not only to goods, but to services?
In other words, can Madigan exploit the opening he has created to give Illinois a broader tax base — with lower rates for every individual and business?
For now, Madigan has telegraphed that the pension reforms he helped pass are far from enough to rejuvenate this state’s languishing economy. He has outflanked the leaders of both parties (and their candidates for governor) to start the overdue debate on tax rates.
* But…
And for those who want to see the hike expire?
“Well hopefully they’ll come forward with their idea for what programs they want to cut, and what taxes they want to force on local governments or schools or what have you,” Brown said. “That’s sort of two separate issues in our view.”
* And then there’s this…
With an S corporation classification, businesses pay the personal income tax rate of 5 percent. Noonan’s Hardware, in Springfield, is among them. Owner, Matt Noonan III, says a corporate tax cut would give his competitors an advantage, strengthening their bottom lines and, at times, allowing them to offer lower prices.
That’s true, up to a point. The biz tax rate right now is 7 percent, plus a 2.5 percent Personal Property Replacement Rax. Cutting just the tax rate in half would leave it at 3.5 percent, plus the 2.5 percent PPRT, for 6 percent.
…Adding… From Irma…
Hi, Rich. I noted your response to Matt Noonan. The PPRT applies at the rate of 1.5% to partnerships, trusts, and S-corps. So to Mr. Noonan’s point, he would be paying 6.5% compared to his competitors 6%. Just thought you would want to know that the PPRT doesn’t apply just to C-corps. - Rob
Rob Karr, President & CEO
Illinois Retail Merchants Association
* Kadner gets the last word…
Whether Madigan is serious or not, his announcement is going to make it very hard for any Democrat to call for an extension of the temporary personal income tax hike that’s set to expire at the end of the year.
How can you give corporations in Illinois a $500 million to $750 million tax cut this year ($1.5 billion over two years) and then tell individual taxpayers they have to pick up the tab? […]
I don’t really care what his motivation or intent is at this point.
Madigan, who’s also the state Democratic Party chairman, has said corporations deserve a tax break. No matter how that plays out, I don’t want to hear him say anything about extending the personal income tax hike for the good of the state.
As for Democratic legislators, who repeatedly have supported Madigan for speaker of the House, they better understand what this means to voters in November. No switching the debate to a graduated income tax now.
I’ve tried to be a voice of reason, but unlike our elected officials, I can’t tell working stiffs to give more to the state when corporations and lawmakers play them for suckers.
Give us all a tax break now.
As for the financial consequences, hey, that’s never been a concern to political leaders in Illinois.
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* Tribune reporters took a look at Bruce Rauner’s alleged ties to convicted influence peddler Stu Levine. They came up with pretty much nothing. Some highlights…
But a closer look at the available details suggests any such connection is tenuous at best, starting with this fact: Records show Rauner’s firm, GTCR Golder Rauner, took its ownership stake in CompDent in 1999 — three years after CompDent’s arrangement with Levine was inked. […]
But Rauner said he had no idea at the time that Levine had any connection to CompDent, which by then had changed its name to CompBenefits.
“The emphatic answer is absolutely not — I did not,” Rauner told the Tribune, adding that he knew nothing about Levine until two years later when criminal allegations against him surfaced in news reports.
Rauner said he made no attempt to understand who the TRS board members were because they served largely as rubber stamps for recommendations made by staffers at the pension agency. “They’re sitting behind these big desks half asleep,” Rauner said. […]
Rauner said he has been asked how he could not know about Levine given the lucrative contract he held with a GTCR subsidiary. He said GTCR at the time financed about 400 companies and had an ownership interest in 60 or 70 of them. He sat on the board of eight or nine, and he was not on the CompBenefits board. He said among all the companies there were probably 350 executives at Levine’s pay level.
“I would probably know 10 percent of those, maybe,” he said.
* I, too, have checked into this a bit and came up with no hard evidence as of yet. There’s smoke, but no hard evidence of a raging fire.
So, on the one hand, it’s good to see the Tribune not jumping to wild conclusions about a politician, as they’ve so often done with others. They almost never take a candidate’s word for anything.
Maybe that’s a new trend.
* On the other hand, it’s been clear for a long time that Stu Levine was no “rubber stamp” for TRS board staff on at least some issues where he had an, um, interest. And nobody at Rauner’s tightly managed company knew they just happened to have a TRS board member on the payroll somewhere at a time when that same guy was giving them trouble over a TRS investment pitch?
So, let’s just hope, for the Tribune’s sake, that this doesn’t turn into another 1998. In the weeks leading up to that November election, stories were raging in other news outlets about George Ryan’s license for bribes scandal. The Tribune ran a front page story about how difficult it was for truckers to get a commercial drivers license.
* But, again, I haven’t found any fire, either, and I’m still not convinced this is truly a major scandal. So far, it’s all political speculation. I’ve tried to reach out to Levine’s attorney for a while now with no success. I doubt the convict will talk, however. Why open up a whole new can of worms for himself?
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