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* Treasurer Giannoulias held a press conference yesterday to do what he should’ve done when the Tribune called the other day: answer questions about the Bright Start fund…
Illinois Treasurer Alexi Giannoulias on Monday defended using proceeds from the state’s troubled college savings program to purchase a hybrid SUV, saying it was a cost-saving move that allows staffers to more effectively promote the Bright Start program.
While Giannoulias said the vehicle is primarily used to promote the savings plan, he could not give details on how and when the vehicle was used. He said his office would begin to keep a vehicle log, saying it was “probably an oversight” not to do so from the beginning.
The problem isn’t so much the SUV, but combine that with one of the investment funds in the Bright Start program losing big bucks and creeping journalistic shorthand and the thing is quite toxic…
The college savings plan is supposed to allow parents to put away money and earn interest for their children’s education, but the fund lost more than $85 million last year.
Again, just one of the investment funds in the program lost $85 million, so the Tribune and others are making things look worse than they actually are. However, Crain’s points out that two other funds lost money as well, although less than the $85 mil.
* Meanwhile, Dick Durbin doesn’t so too encouraging in this sound bite…
The state’s senior U.S. Senator Dick Durbin, who traveled overseas with Giannoulias earlier this year, has not decided whom he will support to become his colleague from Illinois. Durbin said in the meantime the treasurer would have to diffuse his own controversies.
“He is going to have to show in this early stage he can answer questions directly and satisfy any concerns people might have. He will come to learn that standing in front of these microphones is part of this business,” said Sen. Dick Durbin, (D) Illinois.
Translation: Sink or swim, kid.
* Giannoulias held the presser to unveil a populist program…
Illinois Treasurer Alexi Giannoulias is threatening banks that fail to invest in their communities. He says financial institutions will have to sign a pledge before they can receive state deposits. Giannoulias says banks must promise to make small business loans, and work to prevent home foreclosures.
GIANNOULIAS: I do think there’s a lot of potential for future legislation to put even more stringent requirements. But this is, what we think is a reasonable first step. We don’t want banks to lose even more money we just want them to pay attention to their communities
That will make a nice TV ad. Money overcomes plenty of negatives, and he has tons of dough. But that’s no excuse for Giannoulias not having a full handle on his office.
* Speaking of statewide contenders, here’s more on GOP Sen. Matt Murphy’s possible gubernatorial bid…
State Sen. Matt Murphy of Palatine is the latest Republican to publicly consider throwing his hat into the 2010 Illinois governor’s race.
Murphy said Monday it’s a “definitive maybe” as to whether he’ll enter the GOP primary. “I’ve got to see what the interest level is and if I can rally enough support to make the run,” Murphy said. He expects to make a decision by the end of May.
His idea to cut school funding by $1.4 billion is gonna look horrible in a general election. And Murphy’s plan to use managed care to slash Medicaid costs by billions of dollars was hotly and flatly disputed by the Illinois Hospital Association…
One of the report’s key recommendations for a Medicaid global waiver is a block grant approach that would lock in the State at its currently poorly funded level while shifting ALL of the risk to the State – without the State having total control of the Medicaid program.
In other words, if Medicaid costs skyrocketed, the state would be left with the bill.
Much of the work and resulting conclusions from the consultant (the Lucas Group) underlying the report’s recommendations appear to be substandard and outdated, and in many cases, based on flawed assumptions.
* Gov. Quinn is ever so slowly clearing the deck…
Steven Guerra, a holdover from the Blagojevich administration as the governor’s deputy chief of staff for social services, was fired Friday. […]
He made news in late 2008 when the Chicago Sun-Times reported that he had served 23 months in prison after being convicted of contempt of court in New York in 1983. He had refused to testify in connection with investigations of a Puerto Rican separatist group that claimed responsibility for more than 100 bombings in the U.S. that killed six and injured dozens from 1974 to 1983.
* And a local reporter didn’t read the fine print of that Jan Schakowky vs. Mark Kirk poll…
Schakowsky’s strong numbers carry through to the general election, according to Lake Research findings. In a poll of 600 likely Senate race voters last month, respondents who were asked to choose between Schakowsky and Kirk in a general election chose Schakowsky by a six-point margin of 36 to 30 percent.
As I already told you, that poll was taken in December and the 36-30 number included a surprisingly large number of leaners. The base numbers were 23-20.
* This e-mail just arrived…
Rep. Jan Schakowsky, D-IL, will host the Ultimate Women’s Power Lunch with special guests Valerie Jarrett and Tina Tchen on May 11, 2009.
* Related…
* Paul Vallas: I Never Heard of Toni Preckwinkle
posted by Rich Miller
Tuesday, May 5, 09 @ 11:06 am
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You have to appreciate th irony of a young man just beggining to enter the political foray being done in by “Bright Start”
Comment by Ghost Tuesday, May 5, 09 @ 11:21 am
I find it curious that even after a number of days, our rising star still “could not give details on how and when the vehicle was used.” But according to the Crain’s story there were non-Bright Start purposes. What does that mean? What did a vehicle do to promote Bright Start?
Sounds pretty weak to me.
What is more concerning is his oversight of the Oppenheimer funds in question. I get my statements of my mutual funds on a regular basis and have a decent idea of where the fund is placing its money. If I have questions, there is the new thing called the internet which can allow you to get this new fangled thing called information…..It would seem that the full time staffers should be doing a bit less marketing and a bit more time overseeing the public’s investments.
Comment by Plutocrat03 Tuesday, May 5, 09 @ 11:29 am
And where has Vallas been for the last 7 years? Oh yeah, he lost an election and left the state. But don’t worry Paul, you’ll know her soon enough.
Comment by SweetLou Tuesday, May 5, 09 @ 11:40 am
Let’s see, Guerra was hired in 2003, 6 years ago, salary now in the $100k range, might have started a little lower, so this Blagojevich hire earned about $600,000 for being, no doubt, a supporter to our Blago. And does anyone think a “deputy for social services” at DHS does actual work? These taxpayer funded government jobs are beyond good deals, especially in these times. And we generous taxpayer are paying for ‘em.
Comment by Anonymous Tuesday, May 5, 09 @ 12:12 pm
The treasurer’s folks have to learn to get out in front of the story. By letting it linger, you get repetition of the message, and that’s what selling — good or bad — is all about.
Comment by wordslinger Tuesday, May 5, 09 @ 12:20 pm
The most disappointing thing to me in Illinois politics today isn’t how awful the Democrats are, but how much the GOP has failed to innovate and find new ideas and leaders. McKenna has spent zero effort trying to find new ways to win and Murphy sounds like he’s in 1994 mode in a 2010 world.
Also from watching Alexi yesterday on wttw, you’d think the guy could learn not to say uhhh, every other word.
Comment by Shore Tuesday, May 5, 09 @ 12:27 pm
As a parent who has my children’s college funds invested in Bright Start, my concern is not that a fund or two out of the several options lost money. If we look around us, we can see it happened everywhere and that is what equity investments in the markets will do…up and down but you invest for the long-haul. In our case, because one was in college and the other a HS senior, we placed our assets in the second-most CONSERVATIVE fund; the one that is not supposed to be as susceptible to the whims of the markets. If I’m not mistaken, the benchmark for this particular fund made 5% while the Bright Start fund fell 38%. That doesn’t happen overnight and what it tells me is no one in the Treasurer’s office even looked at the benchmarks until it was too late. I understand there are no guarantees in investing money but this is ridiculous. You are supposed to make the more conservative investments as it gets closer to the time you will need the money and that is what we and a lot of other people did…and got nailed for playing it safe because someone in the Treasurer’s office was asleep at the wheel.
Comment by asleep at the wheel Tuesday, May 5, 09 @ 1:11 pm
“Illinois Treasurer Alexi Giannoulias is threatening banks that fail to invest in their communities. He says financial institutions will have to sign a pledge before they can receive state deposits. Giannoulias says banks must promise to make small business loans, and work to prevent home foreclosures.”
Isn’t that erily reminiscent of the fannie/freddie mac debacle ? Sounds like pressure to loan to folks that otherwise wouldn’t qualify.
Comment by shermans ghost Tuesday, May 5, 09 @ 1:32 pm
A little correction to Anonymous. Guerra was the Deputy at the GOVERNOR’S OFFICE, not at DHS. He was only being paid by DHS - a good way for the former gov to surround himself with staff, but making it appear that he was only “governing” with bare bones personnel
Comment by Former State Employee Tuesday, May 5, 09 @ 2:05 pm
About the Giannoulias vehicle–one thing the medi has not dug into yet is the number of office vehicles using the “State Treasurer 6″ license plate. It’s a “get out of jail free” license plate with which the driver cannot be ticketed. Any citations go back to the Secretary of State.
Usually this is reserved for the Treasurer himself, but they admit to having 4 vehicles with that tag. It would be interesting to see who has the vehicles with those tags.
Comment by Just Another Lawyer Tuesday, May 5, 09 @ 2:45 pm
SweetLou,
Where was Vallas supposed to go? Stay in Illinois and be unemployed? Daley made sure that Vallas had no chance in electoral politics. Vallas had to make a living. What impressed me about Vallas is that he had chances to come back to Illinois previously and take advantage of a political situation but declined to do so since he was in the middle of a contract in another state. His 7 year absence is more about his commitments to his clients than his being afraid. Do your homework, remember the past.
Vallas may not be a viable candidate due to the length of his absence but that doesn’t make him a coward or a fool. Maybe you want to decide on a candidate nearby - I’m sure Stroger is running.
I wish he were running for statewide office - I’d vote for him again if given a chance.
Comment by dupage dan Tuesday, May 5, 09 @ 2:47 pm
every person who is working in a senior level or/as an appointment in Illinois government that has had their job since before Feb 1, 2009 is a “holdover”. Its not like there are a few stragglers and Quinn “cleaned house” he woud have to fire everyone of the agency directors for him to really “clean house” and then fire himself.
Comment by tulum Tuesday, May 5, 09 @ 3:25 pm
Gov Quinn is clearing the deck so slowly that it’s disheartening. While I support his move, it is shameful that a long overdue housecleaning is going on at a snail’s pace. If Gov Quinn doesn’t speed things up soon, I will seriously doubt his ability to enact meaningful change.
Comment by Blah, blah, blah Tuesday, May 5, 09 @ 4:05 pm
That Dick Durbin!
What a guy!
Run From Your Man - Wynette, enhanced by VanillaMan
Sometimes its hard to be a politician
Endorsing your support to just one man
You’ll have bad times
And he’ll have good times
Doing things that you don’t understand
But if you endorse him you might too lose
Even though you survive an election stand
But if you endorse him
He might take you down,
‘Cause after all he’s just a man
SO…
Run from your man!
But give him hope to cling to
And some funding to see through
When he looks like a big vote loser
Run from your man!
But tell the world you liked him
Keep running as fast as you can
Run from your man!
Run from your man!
Hold a fund raiser, but don’t endorse him,
Just keep on runnin’ as fast as you can
Run from your man!
Comment by VanillaMan Tuesday, May 5, 09 @ 4:54 pm
Frankly, I wouldn’t care less what Paul Vallas says or thinks cause he doesn’t even live here anymore (plus his record at the CPS is… questionable at best, but i digress) but he got me when he called out Toni Preckwinkle. She’s been fighting for the people of Chicago for 20 years and has a stellar record on the city council. And like I said, he’ll know who she is soon enough.
Comment by SweetLou Tuesday, May 5, 09 @ 5:47 pm
asleep at the wheel,
You nailed this one. This was advertised to people as an ultra-low risk fund that was being invested in treasuries and similar safe investments. Instead, 50% of the funds assets were being invested in mortgage backed securities. They were asleep at the switch and now they all (Alexi, Robin Kelly and Raja) want promotions. Doesn’t sound like the model of public service to me.
Comment by They failed but all want promotions Tuesday, May 5, 09 @ 6:48 pm
Rich,
I just checked with Paul Vallas and Rick Pearson the host of the radio show. They both deny that Paul made any reference to not knowing Preckwinkle. Paul said it is not his style to say anything negative about candidates.
Comment by Vallas supporter Tuesday, May 5, 09 @ 7:51 pm
word, as a pro, you know how to manage the message.
AA thinks the message problem here, besides the goofy SUV and 4 sets of Official 6 plates that keep giving this thing legs, may be that there is no good message to deliver.
From looking into this mess in some detail, it appears that the fund manager dropped the ball in other states as far as providing timely information on performance, holdings, etc. in these several funds. It’s hard to oversee what isn’t being reported-however, that doesn’t stop a truly diligent staff, or Treasurer, from picking up the phone (or driving over in the SUV) and demanding answers, daily if they feel like it.
The lasting impressions are either 1) incompetent or 2) gambler. Neither bodes well for one with ambition bigger than the losses in that bond fund.
Comment by Arthur Andersen Tuesday, May 5, 09 @ 8:35 pm
AA, I suspect you’re right.
While it’s true that seemingly the whole world was once again seduced by the siren song of easy money now and forever, that office for that program needed to be sober and at the top of its game.
The SUV gave the MSM a hook to catch up and repeat the fund loss story that had gotten relatively little coverage (it’ll be a better hook for TV spots). It’s going to hurt.
Comment by wordslinger Tuesday, May 5, 09 @ 9:05 pm
At the rate quinn is going, he should have the house clean by the time lisa gets the keys to the mansion. I amn’t one to suggest getting rid of all hold overs just because they are holdovers but boy are there plenty who don’t engender much trust/respect etc and we could certainly do with a dose of competence in his administration. Is there a single agency director with any oversight over healthcare worth keeping? - IDFPR is the only one that comes to mind. the GA hostility to HFS and DHS seems well deserved and IDPH is certainly not better run these days.
Comment by disgusted Tuesday, May 5, 09 @ 9:27 pm
Tulum has it right. How can people applaud getting rid of Guerra just because he worked under Blago, when these agency heads remaian who are TERRIBLE and driving us into chaos and debt? One that comes to mind is Roger Walker. What is the delay on replacing that guy? Besides being a complete incompetent, he has not even been at the job for the past year. Hello? Anyone home at the IDOC?
Comment by agency heads Wednesday, May 6, 09 @ 12:18 am
Quinn won’t get rid of any of the “money” people from the previous admin- he needs them for his own fund raising, aka, “want to keep your job, don’t forget to help out when we call on you” Roger Walker must mean $$$, so does Carol Adams,Sledge, Ribley, etc. He needs Blago’s fundraisers. Have you seen his campaign funds lately??
Comment by tulum Wednesday, May 6, 09 @ 7:57 am