Latest Post | Last 10 Posts | Archives
Previous Post: Morning Shorts
Next Post: Kirk faces the boo-birds
Posted in:
* Democratic gubernatorial hopeful Dan Hynes has suspended state payments on some advertising and consulting contracts…
Hynes said he had informed Quinn by letter today that his office was suspending payment on $53 million in advertising and management consulting contracts, including more than $26 million to lottery ad agencies, $16 million for tourism and economic development promotion and $9.7 million for a timekeeping system.
“Surely you must believe, as I do, that ‘business as usual’ should not continue while healthcare providers suspend or curtail services and state financial support to schools is jeopardized by an imbalanced(sic) state budget,” Hynes wrote. “I have directed my staff to suspend payment on these contracts until your office communicates your intentions regarding these transactions.”
It’s not clear what authority Hynes is using to suspend the payments. The state law involving the comptroller’s duties gives him the power to refuse to issue a check if he believes a transaction is “not in accordance with the law,” but that is not what Hynes is alleging. A 36-year-old attorney general’s opinion also notes that the comptroller has “ample authority” to hold up payment if “an expenditure of public funds is contrary to law or unauthorized.”
That’s taking things a bit far.
Or not. From the comptroller’s office…
The Comptroller’s Act authorizes the office to preaudit and review all expenditures prior to payment. We are simply asking the the Governor to reconsider these spending priorities in light of the state’s fiscal crisis.
From the governor’s office…
No one in Illinois—especially the Comptroller—should doubt Governor Quinn’s zeal for making significant budget cuts and belt-tightening. Already, Governor Quinn has committed to cutting over $2.0 billion from the state budget in Fiscal 2010. […]
The Comptroller is also late in suggesting a cutback in outside contracts. On February 20, 2009, the Quinn Administration ordered agency directors, chief financial officers and purchasing officers to limit contracts and defer all major purchases unless absolutely necessary.
While Governor Quinn is being smart about making such cuts, the Comptroller wants to hack away at legitimate revenue generators such as the lottery and tourism. The Illinois Lottery spent $16.4 million on advertising and marketing last fiscal year and got back $648.5 million—money that goes to help pay for our children’s education. Governor Quinn believes that’s a good return on investment.
Remember this is the 200th anniversary of Lincoln’s birth and Governor Quinn wants to encourage people, from all over the world, to come here and celebrate our greatest President’s Illinois roots.
Instead of supporting these engines of economic recovery and growth, the Comptroller is threatening to suspend payment on contracts even though he has no statutory basis to refuse payment on lawfully-entered contracts that have appropriated funding…
Hynes also said he would not ask AFSCME to reopen the union contract. AFSCME has not yet endorsed in the gubernatorial campaign, of course.
* And speaking of AFSCME, Quinn is seeking a venue change in the union’s layoffs lawsuit…
Illinois state agencies being sued by a union hoping to block Gov. Pat Quinn’s plan to lay off about 2,600 state employees want the case shifted to Springfield instead of southern Illinois.
Quinn called AFSCME “my good friends” yesterday when he accepted SEIU’s endorsement. “I like all the leaders and members of AFSCME,” Quinn said. “I want to work with them on solving a tough problem.” Watch it all…
posted by Rich Miller
Tuesday, Sep 15, 09 @ 9:08 am
Sorry, comments are closed at this time.
Previous Post: Morning Shorts
Next Post: Kirk faces the boo-birds
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
At what point is it appropriate to ask if Hynes is acting in the best interest of the people of the state of Illinois or the best interests of his campaign?
Comment by wndycty Tuesday, Sep 15, 09 @ 9:18 am
This move by Hynes seems to be pretty politically transparent. Was he holding up money for contracts in the six months prior to his announcement? Did he threaten Blago’s runaway spending train with these tactics?
I honestly dont know the answers to these questions. My guess is “no”. But i would appreciate if someone knows this stuff.
Comment by A Moderate's Moderate Tuesday, Sep 15, 09 @ 9:18 am
All things considered, I support Quinn over Hynes. However, I have a lot of respect for Hynes and think he has done a good job. That goes out the window with this announcement. Hynes has no authority whatsoever to hold this up. He’s basically abusing his office in order to try to score political points. Gee, where have we seen this before? Are the lottery and tourism ad agencies not donating enough to his campaign?
And what comes next? If he decides that the solution to our budget crisis is salary givebacks by state employees will he direct his staff to cut payroll checks by 10% while asking the Gov what his intentions are?
In the wake of the Blago scandals, and in particular the Children’s Memorial fiasco, it’s astonishing to me that Hynes would take this kind of action.
Comment by Don't Worry, Be Happy Tuesday, Sep 15, 09 @ 9:22 am
Whoever advised Hynes to pull this stunt made a major mistake. Hynes should known better than to go along with it. The more this campiagn goes on the more I think Hynes is becoming like the old Quinn with frequent press releases and political stunts like this one.
Comment by Niles Township Tuesday, Sep 15, 09 @ 9:23 am
Clearly, I’m not a fan of either of these guys – so I feel I can speak as an impartial observer here: this is an over-reach by Hynes that borders on abusing his official authority for political gain. Is there any reason to not assume that the Governor’s “intentions regarding these transactions” is to fulfill the state’s contractual obligations for payment?? Any reasons that wouldn’t equally apply to every other outstanding contract the state has with outside vendors??
If Hynes wants to make spending priorities an issue, more power to him – I think it’s a worthy issue of debate for the campaign, and I’d probably come down on his side, presuming he is sincere in his concern. But unilaterally suspending payment - and possibly opening the state up to breach of contract lawsuits – just to put Quinn in the political trick-box of defending existing contracts that pre-date his ascendance to power is wrong. Period. Pay the contracts, Dan. Or, if it weighs to heavy on your conscience to auto-pen your name to the checks, resign now and just run for Governor full-time.
Comment by grand old partisan Tuesday, Sep 15, 09 @ 9:26 am
Cheap, transparent stunt by Hynes. I’m not sure what he thinks he’ll get from it.
How many Blago outside contracts did he refuse payment on?
By the way, study after study show that the tourism advertising dollars generate net revenue to the state.
Hotel occupancy and room rates in Chicago are down a bunch due to the economy. The room tax there provides a lot of the revenue for tourism efforts all over the state, and is a big component of the revenues on the McPier bonds. If they’re short, the GRF makes up for it.
Not a time to cut the advertising.
Comment by wordslinger Tuesday, Sep 15, 09 @ 9:27 am
WOW!
What a blunder!
Not only is Hynes over-reaching, this is nothing less than a political move that disrupts the State. If Hynes intended to demonstrate a mature and honest image as a straight shooter, he blew it with this stunt.
He stood up to Blagojevich during the Budget deadlines, and folded when Rod pooh-poohed him as a nobody. His record here isn’t encouraging. He is the freakin’ comptroller, not a deal maker. What does he think he can do besides bookkeeping and check issuing? OH - and have limited authority over some cemeteries. You know how that is working out for him.
Everyone knows Illinois is screwed up fiscally. No one will appreciate Hynes political move to remind us about that.
Stupid move.
Comment by VanillaMan Tuesday, Sep 15, 09 @ 9:33 am
This just ads to the mental image I have of Hynes as a kind of robotic one track mind kind of guy. I think the governors office statement is pretty good and Hynes is going to regret this decision.
Comment by Small Town Liberal Tuesday, Sep 15, 09 @ 9:36 am
Hynes is not only breaching contracts, but with the employees, he may very well be violating a number of state and federal wage laws.
Comment by Niles Township Tuesday, Sep 15, 09 @ 9:44 am
Hynes looks more and more desperate by the day. I’m assuming they have the same poll numbers the Governor put out and realize that 1) his money advantage is going to shrink considerably, 2) whatever the advantage may end up being it can’t make up for the bully pulpit and the power of incumbency.
Quinn’s assension reminds me of when Frank O’Bannon passed away in Indiana towards the end of his term. His LG was a nice guy named Joe Kernen who wasn’t planning on running for Governor. When O’Bannon died all the Dems who were planning on running for Gov deferred to Kernen (including former DNC Chair and super lawyer Joe Andrews) because they realized the power of incumbency. When Lisa decided to stay put, Hynes decided it was up or out. He’s becoming more and more desperate by the day.
(And before anyone points out that Kernan lost to Mitch Daniels in the general I’d like to point out that none of the Republicans candidates will be able to raise the money Daniels did and this aint Indiana)
Comment by Johnnyc Tuesday, Sep 15, 09 @ 9:47 am
Hynes said, “I believe in honoring the union contract. That’s what I believe. I believe in honoring a union contract. When I sign a contract, I live by it.”
However, when he can get away without honoring other contracts such as those the state signed with ad agencies, and score political points in the process, he’ll do it without blinking an eye.
I can’t believe that all of this was packaged in one interview - he believes in honoring contracts but is announcing that he is refusing to honor contracts?
Sorry folks, I’m a bit worked about this one, as you can tell.
Comment by Don't Worry, Be Happy Tuesday, Sep 15, 09 @ 9:51 am
I believe in honoring a union contract. When I sign a contract, I live by it.
Let me finish that statement:
I believe in honoring a union contract. When I sign a contract, I live by it. So in order to save the money needed, I will instead lay off thousands of state employees.
Comment by dave Tuesday, Sep 15, 09 @ 10:01 am
A Moderate’s Moderate makes a good point.
By claiming he has the authority to hold up payments for low-priority projects, Hynes is opening himself up to attack for every misspent penny over the last 10 years he’s been in office.
First, it seems like a desperate move.
Secondly, tourism being the #2 industry in the state, it seems likely to backfire.
Third, I think editorial boards are gonna have a field day with this one.
Comment by Yellow Dog Tuesday, Sep 15, 09 @ 10:07 am
On the heels of the Party, Teamsters’ and SEIU endorsements, Hynes was likely looking for a game changer. He got one alright. Just not the change he needs for his struggling candidacy. Dumb move by the Comptroller. The momentum continues to move to Quinn, and this stunt will keep it going in that direction.
Comment by phocion Tuesday, Sep 15, 09 @ 10:10 am
Knowing of at least part of these contracts they are indeed questionable. I won’t go into detail. He didnt choose these three things at random. It is also why he said ” ‘business as usual’ should not continue “
Comment by Reality is Tuesday, Sep 15, 09 @ 10:17 am
You know, copying a trick from Tricky Dick (shall we say he is “impounding” those funds?) seems not the best idea, politically or from a “doing my job properly” point of view.
Comment by Pat collins Tuesday, Sep 15, 09 @ 10:18 am
If the advertising and management consulting contracts are actual contracts how are they any different than any other contract the state has agreed to honor? It is nice to prioritize healthcare, but these other contracts can have equal effects on bringing in business and helping employment. Those contracts must include some level of salary to the provider. As others have said, what regulatory grounds does Hynes have to decide who gets paid particularly for contracts outside of his direct control?
Comment by zatoichi Tuesday, Sep 15, 09 @ 10:20 am
Is it too late for Dan to jump into the Cook County Board President’s race because his hope to become governor is fading fast. What will he do when November 2010 comes and he is jobless? Maybe his goal is t o get out of politics and this is his way of doing it.
I dont know — I cant explain how any rational person would believe this to be a good move.
Comment by Anon Tuesday, Sep 15, 09 @ 10:21 am
Hynes’ Comptroller office staff has been trolling for these types of expenses for at least the past two years. It’s important to remember that for many expenses, all they “see” is the info that appears on the front of a voucher, as the actual “vouchers” (payment requests) are sent on a tape or CD to the Comptroller. For contracts, they have the paper on file.
Payments that were “reviewed by the front office” included outside legal counsel, IS consultants, and top officials’ travel vouchers.
On one hand, one could say they are just doing their job and being extra diligent. On the other, when they can’t get the State’s annual financial report out on time (six months late again and you can’t blame it on Filan) and the results of the “diligence” end up as campaign propaganda, one sees fair arguments for both merging the two offices as well as saying once again, Dan Hynes-
not ready for prime time.
Comment by Arthur Andersen Tuesday, Sep 15, 09 @ 10:22 am
If Quinn wants to work with us (AFSCME) in solving “a tough problem,” meaning the budget deficit and job termination, then he should work with us and cut costs in a manner that does the least harm to those who are the most vulnerable: state employees at the bottom of the pay scale.
Comment by Stoned Prophet Tuesday, Sep 15, 09 @ 10:26 am
I’ve kinda wondered why the Gov hasn’t already cut some of those contracts (maybe he has), even though its just symbolic
Comment by steve schnorf Tuesday, Sep 15, 09 @ 10:31 am
I know that historically comptrollers have, indeed, withheld payment under due diligence but this is such an obvious political ploy that it is embarrassing. Pathetic and stupid. It will backfire on Hynes.
Comment by dupage dan Tuesday, Sep 15, 09 @ 10:49 am
Stoned Prophet,
You may not get much sympathy here regarding the “most vulnerable state employees”. Any time the economy tanks those most recent hires are frequently the first to go - “last hired, first fired”. I have worked for private industry, non-profits and for the state. Although seniority doesn’t always hold in a non-union situation, it still holds true in many respects. If you are waiting for Quinn to solve the problem you will wait in vain, I fear. Unless the GA votes for a large tax increase of some sort (governors do not raise taxes, they just sign the bills enacting them) layoffs are a foregone conclusion and Quinn may not be able to stop it. I know the state agency I work in, trimmed to the minimum as it already is, will be devestated by any additional cuts.
People who write in this blog are understandably ticked off by the way the taxpayers $ has been handled in recent years. While some appear to want to dump it all on the backs of us slovenly state employees most are aware that the $ problems won’t be solved by laying off large numbers of us. Quinn may also be sensitive to that as well but, increasingly, it appears for more political reasons than anything else.
Comment by dupage dan Tuesday, Sep 15, 09 @ 11:03 am
Hynes is naive about how business is run. Yes, the State is a huge business. Advertising contracts are just that - contracts. Hynes is holding the State liable for all of those payments that are legally contracted. Very fiscally irresponsible for a “Comproller”
Comment by Euripedis Pantsoff Tuesday, Sep 15, 09 @ 11:11 am
How does cancelling a timekeeping implementation which would accurately collect time for 56,000 state employees save taxpayers money? What do you think the time abuse and error tabulation problems are currently costing taxpayers when processing a $4 billion state payroll? If the error rate is even 1 %, that translates to $40 million annually.
Comment by Raymond Moley Tuesday, Sep 15, 09 @ 11:12 am
Even if there was a 1% error rate that doesnt mean there would be less with a different timkeeping implementation or that it would translate to 1% of payroll expenditures.
Comment by Reality is Tuesday, Sep 15, 09 @ 11:17 am
Reminds me of when Neil Hartigan refused to back an anti-abortion law he personally didn’t like in court. I’m not the biggest Obama fan (give him a “B-”) but I’m soooo glad I voted for him over this child of nepotism.
Comment by lake county democrat Tuesday, Sep 15, 09 @ 11:26 am
Alrighty then. The union gets its pay increase, doesn’t have to take furlough days, and now doesn’t want the layoffs. And by the way did I mention that the temporary employees that have been around since 2004 are still in force and have been in place for years that help the union employee ease their workload.
Let’s see I have worked 32 years with an anniversary in August so I don’t get a raise, have no temp help, have to take a 5% paycut in the form of furlough days and the minority of us that are not in the union make a hole in this deficit by how much?
The temporary employees should all have been gone on June 30th. They are not. then the layoffs should take care of the rest. Let the union have their raises and lack of furlough days but at least take care of the other issues that no one addresses.
Comment by lifer Tuesday, Sep 15, 09 @ 12:34 pm
Whether or not Hynes has the authority or not, and whether this is a political stunt or not, I think he raises a legitimate question. Are not the promise to provide insurance to employees and the promise to pay providers also contracts? How can those be not honored?
And as far as costing the state money, failure to pay vendors timely results in increased costs as these vendors begin to build into their price the cost of carrying the state while they wait for their payments. Also, vendors who are willing to do business with the state are reducing in numbers which further drives up costs by limiting the field of potential bidders. This practice leaves the little guy who can’t afford to wait for his money completely out in the cold which hurts small businesses in the state.
In this time when those in Springfield are playing up the anniversary of Abe Lincoln; I think if Old Abe were around now and saw the conduct of our leaders in Springfield, he would work hard to remind everyone he was born in Kentucky.
Comment by Irish Tuesday, Sep 15, 09 @ 12:49 pm
dupage dan,
I think we state workers should stick together and support AFSCME and each other. If you are in AFSCME, then you know that the union was doing the right thing by proposing cost-saving alternatives to layoffs in negotiations earlier this month. You clearly seem to understand our plight with our mutual, already-severe understaffing.
I’m not happy that Gov. Quinn announced layoffs before other cost-saving measures. I wish he would have said and done something like, “I may have to implement layoffs and ask for furlough days and an end to cost-of-living raises, but before I do that I will work with all involved to find less-harmful ways to save money.” He didn’t do that; he instead threatened us first. Now he’s calling us his good friends?! Dahling, don’t make me laaaauugh!
Comment by Stoned Prophet Tuesday, Sep 15, 09 @ 12:58 pm
I don’t think this move by Hynes was very well thought out, but Quinn DOES need to look at some other ways of saving money besides furlough days for union workers. Illinois EPA just spent hundreds of thousands of dollars to move employees around in a building for no apparent reason other than because they could. That started before the date that the Governor’s office stated. Make some of these agencies more accountable.
Comment by Always A Cynic Tuesday, Sep 15, 09 @ 1:02 pm
Re: Hynes & Quinn
LMAO
Comment by Okay Then... Tuesday, Sep 15, 09 @ 2:37 pm
But the State CAN guarantee $250 million to the Olympics.
Comment by Anonymous Tuesday, Sep 15, 09 @ 3:03 pm
Anon..the Olympics may need to write down the value of our paper
Comment by steve schnorf Tuesday, Sep 15, 09 @ 4:27 pm
I too believe contracts should be honored. The AFSCME contract with the Department of Corrections was negotiated and signed while we were in a fiscal mess. I believe Quinn is actually the person who signed the contract and now wants to behave as though he is surprised that it is going to be so costly. Rather than renegotiating contracts the Gov. and the DOC’s new Director need to get a handle on the runaway spending some incompotent Wardens are involved in. One institution in particular (Pinckneyville) has two Union officials who ramrod ridiculous MOU’s and grievance resolutions through weak Warden’s which cost the state money that could be better spent.
Comment by Anonymous Tuesday, Sep 15, 09 @ 7:58 pm
I thought better of Dan Hynes. What a stupid political maneuver. He looks petty and desperate. I’ll predict a Quinn blowout in the primary. Something about the guy you just trust.
Comment by anon Tuesday, Sep 15, 09 @ 9:42 pm
Hynes should hang it up and stop embarassing himself and his family. I agree with the previous posters. He continues to look petty and desperate.
Comment by anon Wednesday, Sep 16, 09 @ 4:11 am
psst to 7:58 pm, study up a bit now. No, Quinn did not sign contract which was last year while he was still Lt Gov . Second, supplementals are sit downs with both sides and any grievances have an outlined process which follows the articles/sections of the contract/supplemental.
Comment by Cindy Lou Wednesday, Sep 16, 09 @ 6:22 am
The timekeeping system will save the state tens of millinons of dollars annually. This is not a replacement of an existing automated system. It is a new automated system replacing an error prone manual process.
Comment by Save Our State Wednesday, Sep 16, 09 @ 10:17 am
Quinn = not my friend. I am a member of AFSCME.
Comment by state employee Thursday, Sep 17, 09 @ 11:42 pm