Showing posts with label Alexi Giannoulias. Show all posts
Showing posts with label Alexi Giannoulias. Show all posts

Monday, November 01, 2010

Election day: Close races, big spenders and unhappy voters

By Jamey Dunn

As the candidates at the top of the ticket fly throughout the state trying to energize voters the day before the election, polls show Republicans have a slight edge in two close races.

A poll of likely Illinois voters released today by Public Policy Polling has U.S. Rep. Mark Kirk leading the race for U.S. Senate with 46 points to Democratic State Treasurer Alexi Giannoulias’ 42 points. The same poll shows Gov. Pat Quinn, with 40 points, trailing Republican Sen. Bill Brady, who has 45 points. The margin of error for the survey is plus or minus 3.4 percent.

Meanwhile, legislative leaders are pouring money into General Assembly races. The Illinois Campaign for Political reform released a list today of 14 legislative races — seven from each chamber — where both candidates combined reported more than $1 million in campaign funds.

Kent Redfield, an emeritus professor at the University of Illinois Springfield and director of the Sunshine Project, a nonprofit campaign contribution database connected to the Illinois Campaign for Political Reform, said the total number of races with more than $1 million in funds will likely be closer to 16 when all is said and done. “Republicans are seeing opportunity. Democrats are playing defense,” Redfield said.

He added that in recent years, Republicans have had to spend more to fight for suburban districts. But with Democrats — who have a demographic advantage in Illinois — facing high levels of voter frustration and apathy, Republicans have more money to target downstate districts.

As for the possibility of a Republican-controlled Illinois House, Redfield said: “I would be surprised, but I wouldn’t be shocked. … If the Democrats stay home, and the Republicans go to the polls, you could get something like 1994 [when Republicans took control of the House.]”

Redfield said almost half of Brady’s campaign cash has come from national Republican groups. He says close races for Senate and the governor’s office in a state that is typically Democratic might have compelled national Republican organizations to spend more this time around. “Nationally, Republicans have not spent a lot of money in Illinois [in the past] because there really wasn’t much point.”

There has been heightened involvement from national parties in governor’s races across the country, due in part to the fact that states will soon be redrawing legislative districts. “If you get a Republican governor, then that’s a stopper in terms of redistricting in Illinois,” Redfield said. Even if the General Assembly stays in Democrats’ hands, a Republican governor could refuse to sign off on any map they create.

A race thousands of miles away may also affect Illinois. U.S. Senate Majority Leader Harry Reid is battling in a close contest for his seat. If he loses and the Democrats hang on to the Senate, there is a good chance that U.S. Sen. Richard Durbin would take over as leader for his party. Durbin said he has no plans to challenge Reid if he wins reelection.

“I have no idea what anyone else is doing, but I told Harry Reid, gave him my word, I would do nothing in any way whatsoever to angle for his position,” Durbin said. He’s the majority leader. He’s going to be reelected as the majority leader.”

Redfield said that even though it seems Democratic voters in Illinois are disaffected, Illinois Democrats would still be power players in Washington, D.C. “We [would] have the Senate majority leader and the president from Illinois. That would be interesting.”

The economic downturn and a campaign season of negative ads and divisive rhetoric highlighting the state’s and the country’s ills will do little to inspire voters, according to Redfield. “If people were depressed before about the economy after this election cycle, they are even more depressed. … Where are you going to cast a positive vote tomorrow night?”

That outlook is reflected in the Public Policy poll, which says that no matter who voters choose as their next U.S. senator and governor, they will likely not be satisfied. More respondents had an unfavorable opinion than a favorable one of Kirk, Giannoulias and Brady. More than half of respondents did not approve of Quinn’s performance as governor.

Besides picking candidates, voters will also have to decide if they want to add recall power to the Illinois Constitution. If more than 60 percent of people who cast their ballots approve the amendment, voters — with the backing of 30 legislators from both chambers and both parties — would have the power to recall a sitting governor.

Wednesday, October 20, 2010

Kirk and Giannoulias spar in debate

By Jamey Dunn

During last night’s debate, U.S. Rep. Mark Kirk and state Treasurer Alexi Giannoulias spoke about events from their pasts that have become fodder for the negative campaign ads that are characterizing their race for the U.S. Senate. They also weighed in on some national issues.

Both candidates acknowledged that the race has gotten personal. “This has been a tough and at times very negative campaign,” Giannoulias said at the Chicago debate. Kirk agreed that the focus has often been on the two candidates’ backgrounds but added that voters will be more concerned with the economy when they cast their votes.

Kirk — who has taken flack for exaggerating his military record as well as some personal stories about his life — said he has taken responsibility for his mistakes. Kurt has apologized for making false claims about his military service. “I misstated a part of my military record. It’s a painful process. I learned a big lesson from that. … It’s made me a better congressman.”

When asked about accusations that he was involved in loans his family bank made to alleged mobsters and criminals, Giannoulias said he should have done a better job of explaining the loan approval process when he ran for state treasurer.

“It’s easy to cherry-pick a few individuals out of thousand — out of thousands — and make a nasty political ad. But any business owner will tell you that running a business is not a straight line. Of course, mistakes are made. And inevitably, unfortunately, there are people you wish you would have never done business with.”

Kirk said he could have supported a different version of the federal stimulus program if it were “a much smaller bill with a much larger amount of money for infrastructure.” He said too much money was spent on social programs, and the package was ultimately a failure because it did not keep unemployment below President Barack Obama’s goal of 8 percent.

He also railed against deficit spending, saying the “legacy” of Obama’s recovery bill will be the debt “leveled on the financial future of our kids.” He added, “Our country used to number our debts in billions; now it’s in trillions.”

Giannoulias accused Kirk of recently becoming a deficit hawk after backing former President George W. Bush’s budgets, which put the country trillions of dollars into the red. He said the stimulus bill wasn’t perfect, but it kept the country out of another “Great Depression.”

Kirk said the bill excluded valid stimulus opportunities, such as an overhaul of O’Hare International Airport, because it excluded projects that were not “shovel-ready.”

Giannoulias said he supports the repeal of the Pentagon’s “Don’t Ask Don’t Tell” policy, which prevents gays and lesbians from openly serving in the U.S. military. A federal judge recently deemed the policy unconstitutional, and military recruiters have been ordered to begin accepting gay and lesbian recruits.

Kirk said he voted to keep the policy in place and thinks mixed messages coming from Obama’s administration, which sought to block the judge’s order, are bad for the military. Obama has said he supports the repeal of “Don’t Ask. Don’t Tell.”

“I think we ought to listen to the men and women who run the U.S. military. It is one of the most complicated organizations on Earth,” Kirk said.

Giannoulias also supports the “Dream Act,” which would create a path to citizenship for immigrants who go to college in America or serve in the military. Kirk said he doesn’t think the time is right for the bill. He said it should not be debated until officials “restore the trust of the American people in the ability to administer our own border.”

Kirk said he supports civil unions for same-sex couples. However, he added: “I also don’t think we should have a federal takeover of all marriage law in the United States. I think the federal government is already trying to take over too much.”

Giannoulias said he supports same-sex marriage rights. “We’re going to look back in 20 or 30 years and be embarrassed that we didn’t move sooner on this." (For more on the race for U.S. Senate see the current (October) Illinois Issues, Page 24.)

Tuesday, October 12, 2010

Poll shows Brady gaining in governor's race

By Jamey Dunn

A poll released today by the Paul Simon Public Policy Institute shows Republican candidate for governor, Sen. Bill Brady, with a greater lead than other recent polls.

Today’s poll of more than 700 likely Illinois voters — conducted between September 30 and October 10 — shows Brady with 38.4 percent of the vote and Gov. Pat Quinn with 29.8 percent. Independent candidate Scott Lee Cohen got 5.9 percent, and Green Party candidate Rich Whitney had 2.2 percent. Libertarian candidate Lex Green had 1.5 percent, and 22.1 percent of respondents were undecided or said they preferred another candidate. The survey had a margin of error of plus or minus 3.5 percentage points.

Two polls released at the end of September showed a much closer race for the governor’s seat. A Chicago Tribune poll had Quinn in the lead at 39 to Brady’s 38, with a margin of error of plus or minus 4 percent.

A CNN/Time poll had Brady with 40 percent of the vote and Quinn 38 percent. The margin of error was plus or minus 3.5 percent. All three polls show the race for U.S. Senate as a toss up. The Public Policy Institute Poll had Republican candidate U.S. Rep. Mark Kirk with 37.3 and Democratic Treasurer Alexi Giannoulias with 36.8 percent. Green Party candidate LeAlan Jones had 3.3 percent. Libertarian Mike Labno had 1.8 percent, and 20.7 percent were undecided or preferred another candidate.

Just as those polls caused a stir earlier this month — many polls earlier in the race showed Brady leading by about 10 points — today’s Public Policy Institute poll has people taking notice. However, Charles Leonard, a visiting professor with the institute who oversaw the poll, said many factors come into play when looking at such public opinion surveys.

One is the margin of error. Leonard pointed out that the margin of error in his organization’s poll and the Tribune’s poll is very close to the difference in numbers. “When we do a survey, it’s not like sticking a thermometer in the water.”

Leonard added that all the polls paint a picture of a two tight races and — with the high level of undecided respondents — a group of candidates that voters are not very enthusiastic about. “It is a volatile, fluid race. It doesn’t look like people are very firmly committed,” he said.

He said some pollsters will push undecided voters to say which candidates they may be leaning toward, but that was not the case in the Public Policy Institute’s poll. “It’s a weird year, and other surveys don’t have as many undecideds as we do. … We didn’t poke the undecideds.”

Participants were also asked about their approval of President Barack Obama. Half of respondents approve of the president’s performance; a recent Gallup found 46 percent of voters approved nationwide.

However, well over half, 62 percent, of the respondents in the Public Policy Institute survey thought the country is headed in the wrong direction, and 81 percent thought the state was going down the wrong path.

While more respondents — 41 percent — said they agree with the ideals of the so-called Tea Party movement than those who disagreed — 36 percent. More — 45 percent — said they would be less likely to vote for a candidate affiliated with the Tea Party than the 33 percent who said they would be more likely to support a candidate tied to the movement.

Leonard said it is still fairly early for observers to latch onto poll numbers. “They should take every poll with a grain of salt until we get into the last couple days. … People either overstate what polls can do, or they ignore them and say they are all bogus. The truth is obviously somewhere in between.”

The institute plans to release more results from the poll tomorrow. Check back for more details.UPDATE: Additional poll results on ethics issues will not be released until tomorrow.

Tuesday, July 27, 2010

Special election moving forward

By Jamey Dunn

When Illinois voters head to the polls in November, they may cast two votes to fill President Barack Obama’s former U.S. Senate seat.

An appeals court ruled that voters must choose a candidate to finish out the last of Obama’s term, from November until the January inauguration of new senators.

“[The court's] interpretation of the U.S. Constitution does not allow states to fill a [U.S.] Senate vacancy by appointment,” said Ron Michaelson, executive director of the Illinois State Board of Elections from 1976 to 2003.

From the 17th Amendment of the U.S. Constitution:

When vacancies happen in the representation of any state in the Senate, the executive authority of such state shall issue writs of election to fill such vacancies: Provided, that the legislature of any state may empower the executive thereof to make temporary appointments until the people fill the vacancies by election as the legislature may direct.

Roland Burris currently holds the seat after a controversial appointment by former Gov. Rod Blagojevich. The defense is wrapping up its closing argument today in Blagojevich’s corruption trial. The charges against the former governor include trying to sell the U.S. Senate seat for campaign contributions or personal gain.

Judge John Grady of 7th Circuit U.S. Court of Appeals is working with officials to help ensure the state meets its constitutional requirements. Michaelson said Illinois election law is basically silent on this scenario because it has never been anticipated.

The special election would occur on November 2 along with the general election. With little time to hold a primary, it seems likely that parties would be allowed to slate their own candidates, so that lineup would likely be the same: Republican Mark Kirk vs. Democrat Alexi Giannoulias as the major party candidates. Burris did tell Chicago reporters, however, that he intends to make a bid for the ballot. Any independent candidates who met the signature requirements for the general election would also be allowed on the ballot for the special election.

As for the speculation that candidates would be able to hit up donors who have already surpassed federal contribution limits because they would now be fundraising for the special election, Michaelson said that is up in the air, too.

“It does raise a fairly unique question, that’s for sure. … [The Federal Elections Commission] will have to say something on that,” he said. “It would be obviously quite unusual.”

So the choice presented by this special election would probably be in name only. Voters would get to choose Obama’s two-month replacement without a primary, specifically for the special election. But, at this point, any alternative would be costly and difficult to pull off.

Democrats called for a special election soon after Burris’ appointment but later backtracked, saying it would be too costly. However, Gov. Pat Quinn emphasized the importance of following the letter of the law in November. “That’s the great thing about our country and our state: We have a rule of law. … When the judges speak, we pay attention and follow the rule of law. I think that’s the great thing about America and about Illinois, that we believe in the law. That’s something as a lawyer --- I happen to be a lawyer -- I take to heart everyday.”

Michaelson says that the special election’s addition to the ballot will likely not mean much to voters. “Most people are not going to understand it well, but they are going to vote for the same candidate [for whom they vote in the general election].”

Wednesday, January 13, 2010

State of the state

By Jamey Dunn with Rachel Wells contributing

Governor Pat Quinn gave his State of the State address in front of the General Assembly today. While the speech lasted over an hour and was laced with emotional moments, Quinn did not offer any new ideas or specific policy plans.

Quinn delivered his speech while referring to notes on yellow legal paper, and chose to focus primarily on the positive. He outlined some of what he counted as successes since he became governor, such as the reopening of state historic sites and parks. He also highlighted the passage of a capital construction plan, campaign finance reform, a ban on texting while driving and a recall amendment. Quinn said he would like to see an amendment next to recall on the ballot in November that would allow citizens to petition for ethics reforms through a referendum system. Quinn said that passing the two amendments this year would “complete the job” of ethics reform that was started last session.

Quinn addressed some of the recent controversies that his administrating has faced. He touted the planned sale of Thomson prison to the federal government to house Guantanamo Bay detainees as a patriotic move that would benefit both the state and the feds.

The governor also brought up the “Meritorious Good Time Push” prisoner early release program that landed him in hot water recently. He maintained that he did not know that violent offenders were being included in the plan and that Department of Corrections director Michael Randle made the decisions on whom to let go early. However, Quinn did say that as chief executive officer, the ultimate responsibility was his. He added that the state still needs to consider whether it is cost effective to imprison “low-level nonviolent offenders.”

“The No. 1 issue in Illinois today is getting our economy back on track," Quinn said. However, it was not really the focus of his speech. Quinn did emphasize the need to create jobs, especially in the “green” sector. He once again pledged to build a new veterans home in Chicago, an airport in Peotone and threw his support behind high-speed rail. He also called for a “fair” tax increase that would use exemptions and tax credits to “cut taxes on people who need help the most.”

Quinn ended his speech with a tearful call to action to elected officials, encouraging bipartisan efforts to fix the state’s woes. Quinn said that his late father had told him “to work hard, to treat other people with dignity, don’t call people names, be honest be trustworthy.” He added, “That, to me, is what Illinois is all about. ...We can accomplish great things if we work together.”

The governor’s critics said the speech lacked substance and ignored the state’s dire financial situation. Comptroller Dan Hynes, Quinn’s Democratic opponent for governor, said he thought Quinn’s speech was “heartfelt” but “ a disappointment in a lot of ways because it failed to address the most important issues facing our state — the growing budget crisis, job losses, mounting debt and the fact that our communities are less safe.”

Calling this year’s State of the State address a “feel good … campaign speech,” House Republican Leader Tom Cross said Quinn lacked the specifics on budget cuts and did nothing to assure him that Quinn could actually accomplish his goals.

Cross questioned Quinn’s sincerity when it comes to bipartisanship. He expressed frustration that Quinn failed to meet with the Republican caucus — whose votes are not needed to pass most measures in the House – before his State of the State speech. He likened Quinn to Blagojevich in failing to include the minority party in most discussions.

“(Quinn) is wholly entrenched in the system. The gadfly political outsider has become the ultimate insider working with the speaker of the House and president of the Senate to preserve his power, to preserve his office,” Cross said.

Todd Maisch of the Illinois Chamber of Commerce said the governor needed to be more direct about his plans to help rebuild the state’s economy. “There were no specifics…there was no sense of urgency … what he talked about today sounds fine … but frankly it’s nibbling around the edges of a huge problem,” He said. “When it comes to the central issues that are facing Illinoisans — job losses and a state government that’s bankrupt — there was no take away today.”

State Treasurer Alexi Giannoulias, who is also a Democratic candidate for U.S. Senate, said Quinn is facing some big challenges. “It’s not dissimilar to the situation that President Obama faced when he took office,” said Giannoulias. “I think the one point that (Quinn) did hit on was that the next couple years will be some of the hardest years for state government that we’ve ever seen.”

Friday, July 10, 2009

Burris: No longer in the running

By Bethany Jaeger
No Lisa Madigan. No Roland Burris. The race to be the next U.S. senator from Illinois just narrowed to a more classic competition. The seat has gained national attention for its previous occupant, President Barack Obama.

Madigan, the Illinois attorney general, announced yesterday and Burris announced today that they opted not run in 2010.

“It’s an open seat, and the focus is more going to be more on national issues than would have been the case if Burris were running or if Lisa Madigan essentially would have cleared the field,” said Kent Redfield, political scientist at the University of Illinois at Springfield.

If Madigan would have run, Redfield said she would have been the Democrats’ strongest candidate. “Her not running is a minus for the Democrats, but Burris not running is certainly a plus. There’s no question about that.”

Burris never shed the cloud that hovered over his appointment by former Gov. Rod Blagojevich. The then-governor had just been arrested on federal corruption charges, accused of trying to personally profit from his powers to appoint the state’s next senator. Early polling of 644 likely voters showed that just 5.3 percent of respondents supported Burris as a candidate for a full term. Numerous Illinois officials, including U.S. Sen. Dick Durbin and then-Lt. Gov. Pat Quinn, urged Burris step down. Burris wouldn’t budge. His ambitious style came through in, "Always in the running," our profile of him in Illinois Issues magazine.

Burris said today during a Chicago news conference that fundraising had a lot to do with his decision not to run in 2010. Here’s an excerpt of his announcement:

Life is about choices. Make no mistake, I love serving in the United States Senate. I love serving the people of Illinois, make no mistake.

I’m the only African-American serving in the Senate, and I believe that diversity and representation of all segments of our society is essential to who we are as a nation.

The reality of being a U.S. senator today [is that it] requires not only a significant time commitment to performing the job, but an almost equal commitment to raising funds to run competitively for the office.

Political races have become far too expensive in this country.

I was called to choose between spending my time raising funds or spending my time raising issues for my state. The people … should always come first.

The chronicles of Burris’ statements about whether he spoke to Blagojevich, Blagojevich’s brother or Blagojevich’s inner circle was the never-ending story. First he testified to an Illinois House committee that was investigating cause for the governor's impeachment. He said he only spoke with Lon Monk, Blagojevich’s former chief of staff. Then Burris revealed in a follow-up affidavit that he also spoke with the governor’s brother, as well as three insiders: Doug Scofield, John Wyma and former Deputy Gov. John Harris, who just pleaded guilty to wire fraud in the ongoing Blagojevich corruption case.

Burris most recently avoided perjury charges in Sangamon County, where State’s Attorney John Schmidt said Burris’s statements might have been vague, but there’s no proof that he intentionally mislead the Illinois House committee. Burris still faces a probe by the U.S. Senate.

His bow out of the 2010 election eliminated an easy target for the GOP, Redfield said. “It kind of takes Burris and Blagojevich out of the Senate race.”

Now, likely candidates are taking shape. On the Democratic side, they include state Treasurer Alexi Giannoulias. Redfield says he has the advantage of being the only candidate so far who has run a statewide race before. He also has a significant campaign kitty, with reportedly more than $1 million raised for his potential Senate bid. Two candidates with less name recognition include Cheryle Jackson, chief executive officer of the Chicago Urban League, and Chris Kennedy, head of Chicago’s Merchandise Mart and son of the late U.S. Sen. Robert F. Kennedy. Redfield said Jackson also could have a slight disadvantage by being tied to Blagojevich. She was his communications director during his first term.

On the Republican side, U.S. Rep. Mark Kirk of Hinsdale has been reported as set to run for the Senate seat. Redfield said he brings his national experience to the table, but as a moderate Republican, he would have to work to gain the moderate and independent vote. Andy McKenna, chairman of the Illinois Republican Party and businessman, also has reportedly discussed the idea. He lost his 2006 bid.

Wednesday, July 08, 2009

Word of the day: Neither

By Bethany Jaeger
Political hopefuls and Statehouse insiders waited for the day when Illinois Attorney General Lisa Madigan would decide whether she would run for governor or for the state’s second U.S. Senate seat in 2010. Today she surprised most of them by saying, “Neither.”

Citing her family and her feeling that there is still “plenty to do” in her current position, she said she decided to seek a third term as attorney general, setting off a chain reaction of political decisions leading up to the election season.

“I know that for now, the best way for me to continue serving the people of Illinois is to continue doing the job that I love,” Madigan said in her announcement. She cited her work targeting predatory lending practices, lifetime supervision of sex offenders, utility rates, hospital bills for uninsured patients and public access to information.

Her decision to seek another term ripples throughout state and national politics, particularly because it comes shortly after a trip to Washington, D.C. She met with President Barack Obama and reportedly discussed a potential bid for his former U.S. Senate seat. Madigan was seen as a strong candidate to ensure that it remained in Democratic hands, given that U.S. Sen. Roland Burris’ abbreviated term has been clouded by his controversial appointment by embattled former Gov. Rod Blagojevich.

Attorney general
As an incumbent candidate for statewide office, Madigan faces a repeat opponent, DuPage County State’s Attorney Joe Birkett. He lost to Madigan in 2002. He ran for governor in 2006 but soon became Judy Baar Topinka’s running mate as lieutenant governor on the GOP ticket. They lost to Blagojevich and then-Lt. Gov. Pat Quinn. On his campaign Web site, Birkett said, “I want to remain a prosecutor.” He said he would bring to the forefront ideas to partner with state’s attorneys in every county, work with the General Assembly to reform laws, root out public corruption and protect communities against gang violence.

His fundraising, as reported to the Illinois State Board of Elections, however, has been outpaced by Madigan. She most recently reported having nearly $3.5 million available at the end of 2008, compared with Birkett’s $44,676 for the same period.

State Rep. Julie Hamos, an Evanston Democrat, was considering a bid for attorney general. Her campaign released a statement today saying she would revisit with community leaders and supporters. “I look forward to hearing their ideas and input as I discuss my next steps with my family."

U.S. Senate
Now that Madigan is out of the race for the Hill, chips are starting to fall for likely Democratic and Republican candidates to challenge Burris, if he indeed runs. Republican U.S. Rep. Mark Kirk has not officially announced but has reportedly reached out to supporters today. Statehouse insiders also have mentioned Kirk as a possible GOP candidate for governor.

On the Democratic side, state Treasurer Alexi Giannoulias of Chicago has formed an exploratory committee for the Senate. CORRECTION: Raja Krishnamoorthi, former deputy treasurer, is exploring a run for state comptroller, not treasurer. If Giannoulias vacates his position as treasurer, his chief of staff, Robin Kelly, wants it. Another Democrat exploring the U.S. Senate race is Chris Kennedy, who heads Chicago’s Merchandise Mart and is the son of the late Sen. Robert F. Kennedy. Democratic U.S. Rep. Jan Schakowsky decided June 8 against a Senate bid and instead will run for reelection in her House seat.

Governor
Madigan’s decision to seek reelection also causes a ripple effect at the state level. Not seeking the governor’s office avoids the politically awkward situation of serving while her father, House Speaker Michael Madigan, controlled one of the legislative chambers. It also avoids a primary run against sitting Democratic Gov. Pat Quinn.

Considering she was also widely seen as one of the strongest candidates for the chief executive’s job, several potential opponents waited for her decision. Comptroller Dan Hynes is considering; however, he has not officially announced which office he might seek. His campaign issued a statement that said he would discuss his options with his family and “make a decision within the next few weeks.” Krishnamoorthi is considering a bid for comptroller if Hynes decides to move on. My apologies for an error published in the original post.

The GOP primary race for governor, meanwhile, is increasingly crowded, particularly with suburban Chicagoans. State Sen. Kirk Dillard of Hinsdale, who served in the administrations of former Govs. Jim Edgar and Jim Thompson, officially announced his bid with a statewide tour today. “I’ve always said I didn’t care whether Lisa Madigan was my opponent. I intended to run otherwise. But, obviously, she and her father would have been very difficult opponents.”

He was quoted this morning as saying he looks forward to Lisa Madigan being attorney general when he’s governor. Dillard said this afternoon, however, that he was not endorsing her. “Joe Birkett and [GOP Rep.] Jim Durkin are close friends and would be great attorney generals. And it would be worth the price of admission to see a rematch between Joe Birkett and Ms. Madigan, especially since State’s Attorney Birkett came so close last time to beating her.”

In the race for governor, Dillard joins GOP candidates Sen. Bill Brady of Bloomington, a repeat gubernatorial hopeful; Sen. Matt Murphy of Palatine, who announced last month and has become his chamber’s budget point person; DuPage County Board Chairman Bob Schillerstrom; Dan Proft, political commentator for WLS-AM 890 Chicago radio, a political consultant and a writer for conservative publications; and Adam Andrzejewski, a self-made businessman and self-funded candidate based in the Chicago suburb of Oak Brook.

We’ll have more about the suburban Chicago hotspot for political aspirations in the future.

Monday, December 01, 2008

Consolidation concerns

On one hand, good government groups and business executives are backing the state treasurer’s plan to narrow control of pension investments made on behalf of public employees. On the other hand, pension managers oppose the idea because of its potential cost and market losses.

Treasurer Alexi Giannoulias said the intent is to save money and to address ethical violations exposed during the federal probe surrounding Tony Rezko (see Operation Board Games background). The proposal would need approval from the General Assembly, which has been cool to various “consolidation” proposals after Gov. Rod Blagojevich merged many state agency functions in his first term. But Giannoulias said now is the time, considering the state’s need to free up some cash and to regain the public’s trust.

In a Chicago news conference Monday morning, Giannoulias pitched his “complete overhaul” of the state’s five pension systems for teachers, lawmakers, judges, state workers and university employees. He wants to merge three boards that oversee investments of those five pension systems and replace them with a single new fund, the Illinois Public Employees’ Retirement System. He shortened it to ILPERS.

Giannoulias said the consolidation could cost about $25 million upfront, but it also would save up to $80 million each year. According to his numbers, that includes $12 million saved from reduced administrative functions and up to $70 million saved from fewer fees paid to private investment firms.

Concerns
The Teachers Retirement System disagrees and pegs the cost of moving assets much higher at “hundreds of millions of dollars.” In a statement, TRS also said a consolidated investment board could make the systems less accountable to members and more vulnerable to influence of elected officials and “investment experts.”

Sen. Bill Brady, a Bloomington Republican who serves as minority spokesman of the Senate Pensions and Investments Committee, doesn’t buy the estimated savings without seeing more details. He added that the state could save money by improving coordination between the five pension systems without consolidating them. However, he said he would have to give Giannoulias’ proposal a fair shake. “We cannot afford not to look at every possible efficiency and savings,” he said.

Sen. Jeff Schoenberg, an Evanston Democrat who has sponsored similar pension reforms last year, questioned whether a single board would erase a system of checks and balances. He explained in his new blog: “I’m skeptical that bigger always means better when it comes to governing public finance. … Folding all the state retirement systems into one board doesn’t necessarily mean more accountability.”

He also questioned whether the creation of a mega-fund would translate into fewer opportunities for investment firms owned by women and minorities. Giannoulias’ spokesman said those concerns would be addressed in the upcoming legislation (it could be filed this month, according to spokesman Scott Burnham).

Schoenberg said he would welcome the chance to continue working on legislation that stalled last year. It would include similar ethics reforms, including prohibiting board members and their family members from working for firms that do business with the state. In other words, he supports most but not all of the plan.

“I would put consolidation in the icebox because it is likely to face difficult sledding in the legislature,” he said on his cell phone Monday.

Support
Laurence Msall, president of the Civic Federation of Chicago, described Giannoulias’ legislation as “loaded with common-sense, realistic change that needs to happen,” including ongoing training and work experience requirements for the 13 new board members. As someone who has led reform efforts to curb Illinois pension debt, Msall spoke to the fears of existing state employees and retirees. During the news conference, he said: “No pensioneer, no retiree, not even existing state employees who are not yet retired, their benefits are not going to be changed as a result of this. That is a part of a challenge going forward for the state of Illinois, but it’s not addressed in this legislation.”

Cindi Canary, director of the Campaign for Political Reform and a force behind the state’s upcoming pay-to-play ban on state contractors, lauded the proposal’s demand for higher ethical standards and stricter disclosure requirements for board members. “This is a critically important first step and a model [of] how we try to do government differently and how we try to do government for the people,” she said during the news conference.

Other supporters include Jay Stewart of the Better Government Association and Ralph Martire of the Center for Tax and Budget Accountability, both based in Chicago. And Blagojevich issued a statement saying the administration supports increasing efficiency and transparency of state government pension systems, "provided that all efforts are made to ensure the diversity among investment managers and protect the interest of annuitants."