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Rauner claps back at Madigan

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Illinois

* Speaker Madigan yesterday…

On Jan. 14, 2015, I stood before you and pledged to work cooperatively and professionally w/ Gov. Rauner. That was four long years ago.

Four long years of character assassination, personal vilification and strident negotiation positions which hurt our state government and led to inaction for the people of Illinois.

* Gov. Rauner on WJPF today…

I’ve heard, I’ve been told that Madigan’s been criticizing me again. You know what? I take pride in that. Mitch Daniels, the terrific governor of Indiana, who turned Indiana around, he once said to me about 8 years ago, he said ‘Bruce, you know we’re defined by our enemies. You’ve picked good enemies.’ I have. I’m proud of it. I don’t mind being Madigan’s enemy, that guy has has done more damage to our people than anybody. And I will always stand firm against that and I will always try to win for a better future for our kids and our grandkids.

One good turn deserves another, but Daniels told him that eight years ago about his enemies?

* From about eight and a half years ago…

Mayor Richard M. Daley today appointed Bruce V. Rauner, chairman of a Chicago-based venture capital and private equity firm, as chairman of the Chicago Convention and Tourism Bureau, the sales and marketing organization responsible for promoting Chicago as a meeting and tourist destination. […]

In March, Daley appointed Rauner as a member of the interim board of the Metropolitan Pier and Exposition Authority, which had been re-organized by legislation passed by the Illinois General Assembly.

Speaker Madigan pushed that McPier reorg through the General Assembly on Daley’s behalf and for Rauner’s benefit.

* From the same time period in 2010…

[Stand for Children’s national director Jonah Edelman] told the Aspen Institute’s conference participants that wealthy investor Bruce Rauner had approached him about expanding his group’s school reform efforts to Illinois. Rauner has long been a major supporter of Republican candidates, and many believed early on that his involvement with Edelman meant that Stand for Children would lean heavily toward the House Republicans and against Democratic House Speaker Michael Madigan.

But Edelman said he noticed a political opening that Rauner didn’t. The teachers unions were so upset by the passage of a pension reform bill that they were refusing to contribute to House Democrats [in the 2010 campaign cycle] who had voted for the reform, even though the legislators had long supported the unions.

Edelman said he then looked at the landscape and determined that no matter what happened in individual races, “Madigan would still be Speaker.” So, he said, the “raw politics” dictated that “we should tilt toward him.”

“The press never picked up on it,” Edelman said about how his group had endorsed twice as many Democratic candidates as Republicans. Those endorsements were a strong indication to Madigan, however, that they were clearly favoring him.

“Luckily, it never got covered that way,” Edelman explained. “That wouldn’t work well in Illinois. Madigan’s not particularly well liked.”

posted by Rich Miller
Thursday, Jan 10, 19 @ 1:36 pm

Comments

One of them was unceremoniously kicked out of office by voters, while the other sets another national record every day for Speaker longevity. It’s pretty clear who won.

Comment by anon2 Thursday, Jan 10, 19 @ 1:43 pm
As an epic failure who did nothing as Vets died, social agencies were denied funding and citizens throughout the state were harmed by his inability to lead, Rauner must have more enemies than Madigan. Wonder if that makes him happy?

Comment by Trapped in the 'burbs Thursday, Jan 10, 19 @ 1:58 pm
Bye Felicia

Comment by Anonymous Thursday, Jan 10, 19 @ 2:00 pm
This guy cannot go soon enough.

Comment by Demoralized Thursday, Jan 10, 19 @ 2:01 pm
=‘Bruce, you know we’re defined by our enemies. You’ve picked good enemies.’ I have. I’m proud of it.=

Might want to check the scorecard. It seems that the voters were your enemies as well.

Comment by Pundent Thursday, Jan 10, 19 @ 2:04 pm
==It seems that the voters were your enemies as well.==
The working people of Illinois certainly were Rauner’s e enemies.

Comment by Anonymous Thursday, Jan 10, 19 @ 2:06 pm
Speaker Madigan pushed that McPier reorg through the General Assembly on Daley’s behalf and for Rauner’s benefit.

Rich, how did rauner personally benefit from Madigan’s legislation on McPier? Never heard this story before.

Comment by jim Thursday, Jan 10, 19 @ 2:13 pm
Bow out gracefully Rauner. We don’t care what you have to say anymore.

Comment by Brendan Thursday, Jan 10, 19 @ 2:13 pm
Who?

Comment by Dirty Red Thursday, Jan 10, 19 @ 2:16 pm
===how did rauner personally benefit from Madigan’s legislation===

HDems crafted it in a way that allowed Daley to appoint him quickly.

Comment by Rich Miller Thursday, Jan 10, 19 @ 2:24 pm
I guess “claps back” is officially a thing

Comment by LakeCo Thursday, Jan 10, 19 @ 2:24 pm
For crying out loud, how can we begin to miss you if you won’t go away, already.

Comment by wordslinger Thursday, Jan 10, 19 @ 2:34 pm
MJM, the only politician in Illinois with lower ratings than Bruce.

Comment by Anonymous Thursday, Jan 10, 19 @ 2:37 pm
Blessed silence from him for weeks, then suddenly this week, he got all loquacious again. Monday can’t come soon enough.

Comment by Nick Name Thursday, Jan 10, 19 @ 2:40 pm
Some truth in the words he said, but the way he engaged his adversary led to his not being reelected. Madigan’s popularity not rebounding despite his victory lap.

Comment by Southwest Sider Thursday, Jan 10, 19 @ 2:43 pm
“Four long years of character assassination, personal vilification and strident negotiation positions which hurt our state government and led to inaction for the people of Illinois.”

Right. Exactly right.

Comment by Grandson of Man Thursday, Jan 10, 19 @ 2:45 pm
I’m going to dispute that little ramble being defined as a ‘clapback.’ Not my blog, but a clapback should make you go “whew,” not “mmm…I guess.”

Comment by lakeside Thursday, Jan 10, 19 @ 2:51 pm
“Speaker Madigan pushed that McPier reorg through the General Assembly on Daley’s behalf and for Rauner’s benefit.”

I would have to disagree with that. Rauner may have benefited a little bit but it appears to me that Madigan pushed it through to help out his old Appropriations Chief, Veronica Lynch and her husband Jim Reilly.

Lynch and Reilly owned a failing B&B in Union Pier, Michigan that they put up for sale on July 16, 2008 for $4,295,000, (just prior to the staged McCormick Place melt down) and ultimately sold short for $500,000 to their realtor Elizabeth Press on January 26, 2012.

Reilly needed a real job, the $30,000 a year Metra gig wasn’t enough to cover the Sandpiper’s losses.

It was Reilly’s business plan for the MPEA that Bruce Rauner and the MPEA Interim Board ordered at their first meeting from C.H. Johnson Consultants and the MPEA received their 145 page plan just 15 days later and which the MPEA Interim Board completely adopted at their second meeting.
FOIA requests to the MPEA shows no notes, no minutes, no email communications and no other paper correspondence of the MPEA Interim Board as they considered and vetted these multi-million dollar recommendations.

The data C.H. Johnson provided in the MPEA Interim Board report also had many factual errors and flawed conclusions, but what do you expect from a 145 page report that was generated in 15 days’ time?

So how has that MPEA plan worked out?
McCormick Place has lost 14 trade shows since the legislative reforms.
In FY 2010, in the Great Recession, the MPEA had $68,215,000 in Operating Revenue from the Use of Convention Facilities.
In FY 2018 the MPEA reported $48,097,000 in Operating Revenue from the Use of Convention Facilities a loss of $20,118,000, a 29.5% drop.

As of FY 2018 the MPEA’s long term debt principal is now $4.1 billion and unamortized accretion on capital appreciation bonds of $5.7 billion.

For comparison the FY 2011 statement shows the MPEA’s long term debt principal was $2.8 billion and unamortized accretion on capital appreciation bonds of $3.7 billion.
Since FY 2010 the MPEA’s debt long term has increased $3.3 billion.
In FY 2010 the MPEA’s debt expired in FY 2042.
In FY 2018 the MPEA’s debt expires in FY 2057, fifteen years later.
The FY 2018 now shows a ($6,623,090,000) total debt repayment shortage, even with the extension of Authority taxes.
This annual shortage will cause an increasing yearly State sales tax draw up to $193,027,250.

There are no surplus tax revenues for the MPEA annual operating fund.
In FY 2018 the MPEA operations lost $127,328,000 which gave the MPEA and end of year net position of -$1,830,690,000.
For comparison in FY 2010 the MPEA operations lost $140,144,000 and had an end of year net position of -$696,497,000.

On Lowering the MPEA’s Costs:

In FY 2018 the MPEA Audited Financial Statement shows Operating Expenses of $334,598,000.
In FY 2010 the MPEA Audited Financial Statement shows Operating Expenses of $289,291,000.
Since FY 2010 the MPEA’s Operating Expenses have increased $45,307,000.

So revenues are down and costs are up.

But hey, it wasn’t all bad. Reilly and Lynch avoided personal bankruptcy,Horizon Bank ate $2,060,000 on the Sandpiper and the Illinois taxpayers are now in a $12 billion hole since Reilly gave away all the profitable in-house MPEA business units to private contractors, who just happened to be Reilly’s “consulting business” clients.

Comment by Chicago 20 Thursday, Jan 10, 19 @ 3:39 pm
“You know what?”

What? Are you going to lie again?

Comment by Huh? Thursday, Jan 10, 19 @ 3:48 pm
Chicago20. We seriously need a Mueller type investigation into this. Shouldnt the states AG take the lead?

Comment by Blue Dog Dem Thursday, Jan 10, 19 @ 3:53 pm
chicago20 yes lot of issues the that the taxpayers are on the hook for - it will get worse

need way more than Mueller

Comment by cannon649 Thursday, Jan 10, 19 @ 4:16 pm
All of this was sold to the public as a way to make McCormick Place more competitive and to save exhibitors money at these trade shows.

Making McCormick Place more competitive:

The Orange County Convention Center in Orlando still has their own in-house electrical services just like McCormick Place had before the reforms.
In 2010 a 120v 20amp service with 4 hours of aerial labor cost an exhibitor $1,617.40 plus materials at the Orange County Convention Center at the 2010 NADA Show, compared to $1,431.80 including materials at the 2010 ASCO Show at McCormick Place.
In 2010 McCormick Place was more than competitive with the OCCC. An analysis of the 2009 SPI-NPE Plastic Show cost comparison showed McCormick Place had a price advantage in virtually every case when correctly calculated, including the price of a Pepsi.
In 2018 that same 120v 20amp on-site ordered service with 4 hours of aerial labor costs an exhibitor $1,675.61 plus materials at the Orange County Convention Center at the 2018 PGA Show, compared to $2,985.36 plus materials at the 2018 ASCO Show at McCormick Place.

Unlike the same show to show exhibitor pricing at the OCCC in Orlando, exhibitor prices at McCormick Place now vary widely from show to show.
Materials that were included with the service at McCormick Place before the reforms are now adding substantial extra costs to exhibitor’s budgets.
Dismantle times also now widely vary at McCormick Place. Depending on the show, exhibitors are now mandatorily charged anywhere between 30% and 50% of the installation charge.
Exhibitors are charged for this labor by private contractors at McCormick Place even when it is not staffed. In one show alone, exhibitors were charged over $740,000 for this ghost labor.

Eight years later, after the legislative reforms to cut costs at McCormick Place, an exhibitor at McCormick Place at the 2018 ASCO Show is charged over 78% more than an exhibitor at the 2018 PGA Show in Orlando.

McCormick Place is no longer competitive with the Orange County Convention center.

This stark reality is not lost on trade shows and exhibitors.
14 trade shows have left McCormick Place.

Comment by Chicago 20 Thursday, Jan 10, 19 @ 4:42 pm
===One good turn deserves another, but Daniels told him that eight years ago about his enemies?===

Shortly after his grandparents moved from Sweden.

Comment by Anon Thursday, Jan 10, 19 @ 5:31 pm
Fair point about Daniels in Indiana. He also had a GOP majority in both houses of IN Legislature.

We are known by our enemies.
We are also known by who our friends are and who can rely on us.

Comment by low level Thursday, Jan 10, 19 @ 6:08 pm
–Chicago20. We seriously need a Mueller type investigation into this. Shouldnt the states AG take the lead?–

Of what, exactly?

Don’t just refer to Chicago 20s Q-style ramblings, what exactly do you think here requires, seriously, a “Mueller type investigation?”

You are such a lazy troll, desperate for any attention at all.

But you need to back up calls for investigations, like a big kid.

Comment by wordslinger Thursday, Jan 10, 19 @ 6:36 pm
–You know what? I take pride in that. Mitch Daniels, the terrific governor of Indiana, who turned Indiana around, he once said to me about 8 years ago, he said ‘Bruce, you know we’re defined by our enemies.–

And in the link below, you’ll find a video from about eight years ago of Bruce Rauner heaping praise on Madigan, Cullerton, Quinn and Daley for their work at McCormick Place.

Archives are such a …..

https://capitolfax.com/wp-mobile.php?p=22216&more=1

Comment by wordslinger Thursday, Jan 10, 19 @ 7:06 pm
“Q style ramblings”
?

Comment by Chicago 20 Thursday, Jan 10, 19 @ 7:20 pm
–“Q style ramblings”–

Indeed, i.e., your fevered “connections” between Reilly’s alleged personal financial problems and the loss (or rotation) of some shows at McCormick Place.

Very Q in its incoherence.

Or maybe you can dumb it down for those of us who haven’t taken the red pill or whatever goofy thing they’re supposed to do.

Or maybe the “Mueller type investigation” BDD is calling for will clear it up.

Investigation of what, again?

Comment by wordslinger Thursday, Jan 10, 19 @ 7:40 pm
I’m sorry that I confused you.
What specifically are you looking for more explanation or clarification on?

Comment by Chicago 20 Thursday, Jan 10, 19 @ 8:11 pm
Partisan hack trolls are really tiresome.

Comment by Blue Dog Dem Thursday, Jan 10, 19 @ 9:16 pm
–What specifically are you looking for more explanation or clarification on?–

LOL, any of it. Specifically, Reilly’s alleged financial problems leads to rotation of McCormick Place shows.

You understand, I hope, that your Shanghai phone book listings do none of that?

I worked for years as a private outside advertising and marketing whiz kid for IBOT, CCTB, Chicago Office of Special Events, MPEA, and I don’t have a clue as to what you’re trying to say. It’s gibberish.

Read it all yourself and then try to summarize it four or five sentences.

Comment by wordslinger Thursday, Jan 10, 19 @ 9:17 pm
Word. Well golly gee whiz. That explains bunches. But i need to ask a serious question. In two weeks i get to visit my daughter in Old Town and the wife and i are cashing in on a free night in Bollingbrook, aside from the cracker barrel, any dining recommendations?

Comment by Blue Dog Dem Thursday, Jan 10, 19 @ 9:23 pm
–Partisan hack trolls are really tiresome.–

“Partisan” for whom, in what way?

What here requires a “Mueller type investigation,” again?

Every day, you post how you “know better” about so many things. Don’t hide your light under a bushel here. Tell us what you’re talking about.

Comment by wordslinger Thursday, Jan 10, 19 @ 9:23 pm
–Word. Well golly gee whiz. That explains bunches. But i need to ask a serious question. –

No, you don’t.

You’re just lazy and weak, making a sad attempt to change the subject.

The question is: what is the “Mueller type investigation” you’re calling for, based on Chicago 20s ramblings?

Comment by wordslinger Thursday, Jan 10, 19 @ 10:11 pm
Whiz kid? Trump school of modesty.?

Comment by Blue Dog dem Friday, Jan 11, 19 @ 3:22 am
=but it appears to me that Madigan pushed it through to help out his old Appropriations Chief, Veronica Lynch and her husband Jim Reilly.=

So, if I understand you correctly your post to the “Rauner Claps Back” thread is that MJM pushed through MPEA to get a job for a former employees husband?

And Rauner et al went along with out questioning or challenging him?

Seems like MJM really did own Rauner all along.

Well what do ya know (exclamation point)

Comment by JS Mill Friday, Jan 11, 19 @ 8:56 am
WordsIinger-

I never said anything about show rotations, only trade shows that left McCormick Place.

Here is the short version, and I have plenty of sources to back it up.

Reilly is going broke. Reilly has contacts in the convention business and learns of an upcoming announcement of a trade show leaving McCormick Place.

Reilly devises a plan to weaponize this information to regain his former job at the MPEA.

Reilly develops a business plan to overhaul the MPEA and the CCTB.

This plan rewards Reilly’s co-conspirators with former MPEA revenue, punishes Reilly’s enemies and buries the MPEA in debt.

This new business plan has the tail wagging the dog.
Exhibitors are now paying private contractors 300% more than what was previously charged by former MPEA in-house vendors.
Exhibitors then downsize and ultimately drop out of McCormick Place shows.
Then the show leaves McCormick Place for other venues.

Revenue replacements for the in-house (now privatized) fall way short, expenses increase, debt service increases, MPEA tax revenue drops.

Illinois taxpayers are on the hook.
The MPEA business plan isn’t viable.
The MPEA can’t change their business plan because of legislation.

Any questions?

Comment by Chicago 20 Friday, Jan 11, 19 @ 10:29 am