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More controversy for fund sweeps

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Another lawsuit has been filed over the governor’s fund sweeps.

A national insurers association has sued Gov. Rod Blagojevich and other state officials for diverting more than $7 million from a trust fund designed to finance auto theft-prevention programs to the general revenue fund that’s used to pay most state bills.

Money has been taken from Illinois’ Motor Vehicle Theft Prevention Fund since fiscal 2003, according to the Property Casualty Insurers Association of America, which filed the suit Monday in Sangamon County Circuit Court. For fiscal 2007, which begins July 1, $2 million will be diverted to the general fund, said Joseph Annotti, the association’s senior vice president of public affairs.

“We were hopeful that it was kind of a one-time deal and that the funds would be replenished or reimbursed, but clearly this is becoming a pattern,” Annotti said. “We think this is a dangerous pattern because since these funds have been siphoned off, the types of proven, effective programs that have cut auto thefts have been eliminated or severely cut. And that to us means that there’s going to be an increase in auto theft. It’s not a matter of if, but when.”

Annotti said the prevention fund supports educational programs on stopping auto theft, law enforcement initiatives for tracking stolen vehicles, and a task force in high-theft cities, especially those in Cook County. […]

Annotti believes the association, headquartered in Des Plaines, has “solid legal ground” in moving forward with its complaint.

“On principle alone, if a law exists that said funds are to be dedicated to a specific program, the governor or any other state officials should not be allowed to divert them for other purposes,” he said.

posted by Rich Miller
Wednesday, May 24, 06 @ 8:53 am

Comments

  1. “On principle alone, if a law exists that said funds are to be dedicated to a specific program, the governor or any other state officials should not be allowed to divert them for other purposes,” he said.

    Since when has this governor respected principles?

    Comment by VanillaMan Wednesday, May 24, 06 @ 9:59 am

  2. If any group ever wonders why they should retain a lobbyist to watch out for their interests, take a good read of Becky Carroll’s quote. In a nutshell, “interest groups should be ashamed of themselves for safegurading their own money!” That, my friends, captures the entire problem with this Administration-they view everything as their money rather than viewing themslves as stewards for the betterment of this State!

    Comment by sine die Wednesday, May 24, 06 @ 11:07 am

  3. Sine Die:

    I wonder if the administration has the same attitude about individuals who pay income and sales taxes in the state? Should we be ashamed of ourselves for wanting to safeguard our money?

    Comment by Silent Budgeteer Wednesday, May 24, 06 @ 11:36 am

  4. As fund dry up in Illinois, there will only be two ways to preserve funding:

    1. Quid pro quo (campaign contributions, doing favors etc, for elected officials)

    2. Lawsuits claiming cutting funding was illegal.

    Can’t wait to see all the craziness this causes.

    Comment by Leroy Wednesday, May 24, 06 @ 12:36 pm

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