House Speaker Michael Madigan is governing by letter, again. This time, he’s lobbying against a proposal to phase in electricity rate increases scheduled to start in January. It’s not just any proposal. It’s one supported by Senate President Emil Jones Jr. and House Minority Leader Tom Cross, as well as Commonwealth Edison, the company serving most northern Illinois customers.
In a letter starting, “Dear Reporter,” Madigan says he intends to continue trying to pass legislation that “protects consumers and allows the electric monopolies serving Illinois to earn fair profits.” His emphasis on “fair” is consistent with his veto session comments that he takes the utilities’ warnings of financial ruin “with a grain of salt.”
Madigan then attached a memo (1 and 2) to all House and Senate members with some details that can be summarized by this argument: If signed into law, the phase-in proposal approved by the Senate would actually be a better deal for utilities and worse deal for consumers than if the General Assembly took no action and let the Illinois Commerce Commission decide how the new rates would be carried out. “The bill has been presented as a compromise measure and a better deal for consumers,” he wrote. “It is neither.”
Something’s not adding up here. While ComEd supported the phase-in approved by the Senate, Ameren Illinois CEO Scott Cissel opposed it and said the company prefers the proposals filed with the Illinois Commerce Commission.
The company still opposes House Bill 2197, according to spokesman Leigh Morris. He didn’t know of Madigan’s memo and letters Wednesday night but said the company didn’t believe the Senate version of a phase-in would be a good deal for Ameren customers. In fact, he said the company filed a new proposal with the ICC that would 1) allow the company to charge a “carrying fee” associated with the phase in; 2) allow customers to opt into a phase-in plan, which would carry a 3.25 percent interest rate; 3) allow schools, municipalities and small businesses to opt in; 4) allow the utilities to opt out of the plan if the credit rating slipped to junk bond status; and 5) designate $15 million of non-consumer costs to energy assistance and renewable energy programs.
Ameren asked the commission to review the newest proposal before the end of the year. Lawmakers are scheduled to reconvene in Springfield a week later, when they’ll rehash the debate, again.
To me, the biggest question in this complicated, easily skewed debate remains: What power should the ICC have in regulating electricity rates?
Thursday, December 14, 2006
Friday, December 08, 2006
Universal health care?
A plan to mandate health insurance for all Illinois residents, and, yes, that means a mandate on businesses to offer health benefits to employees, is sure to catch attention in the upcoming legislative session. Today’s stories (here and here) talk about a plan the state’s Adequate Health Care Task Force came up with to address a growing problem — the cost of caring for the uninsured.
You can read more details (scroll to the bottom on the page) in documents prepared for the task force’s December 7 meeting, but to gain even more context, check Illinois Issues’ June feature, “Alternative medicine.” Massachusetts enacted a similar law this summer, but that plan might not be very easy to translate to Illinois’ political and business climate. The 95th General Assembly would have to find a balance between businesses, hospitals, insurance industries and private citizens, not to mention public aid dollars.
Watch Illinois Issues for more anlysis in the next few months.
You can read more details (scroll to the bottom on the page) in documents prepared for the task force’s December 7 meeting, but to gain even more context, check Illinois Issues’ June feature, “Alternative medicine.” Massachusetts enacted a similar law this summer, but that plan might not be very easy to translate to Illinois’ political and business climate. The 95th General Assembly would have to find a balance between businesses, hospitals, insurance industries and private citizens, not to mention public aid dollars.
Watch Illinois Issues for more anlysis in the next few months.
Wednesday, November 15, 2006
Waiting games
Gov. Rod Blagojevich got one step closer to enacting a recent campaign promise, but his administration still hasn't fulfilled two promises he made a year ago. Services for college students and veterans are waiting to be paid, as a result.
The Senate approved a $1 minimum wage increase 33 to 21 with 3 voting present. The measure would increase the minimum wage to $7.50, 25 cents more than a federal increase being debated in Congress. If approved by the Illinois House, the state minimum wage also would be to inflation from then on.
House approval is not a guarantee. House Speaker Michael Madigan said Tuesday afternoon that he hadn’t seen the bill, yet. “I’ve always supported increases in minimum wage. I’ve got a 35-year record of supporting those increases. I’m simply saying that we’re not certain what the proposal is.”
One sticky point in the Senate debate focused on whether businesses would still have the ability to pay part-time workers younger than 18 less than the minimum wage (50 cents less). Under Sen. Kimberly Lightford’s measure, all workers of all ages would be guaranteed $7.50.
While a minimum wage came closer to an increase, the governor’s first-term promises of giving college tuition grants and veterans health-care services are under scrutiny.
College tuition credits
Earlier Wednesday, a joint House committee heard from Michael Luke of the Illinois attorney general’s office about the sale of the state’s student loan portfolio. While the attorney general’s office was studying whether the Illinois Student Assistance Commission needed legislative approval to sell all of the nearly $4 billion asset, Luke said the commission’s staff and the governor’s legal staff were uncooperative in providing information.
That caused the attorney general’s office to issue an opinion based on limited information.
That drew criticism from some Republican committee members and raised questions about the governor’s new MAP Plus program. Last spring, the General Assembly designated $34.4 million to offer $250 a semester to students from middle-income families, but the commission does not yet have the money to pay for the new program and other initiatives contingent on the sale of the student loan portfolio. Commission chairman Donald McNeil said the process of selling, refinancing or partnering with private companies is two months behind, but the commission is confident the money will be there when it comes time to reimburse the 40 institutions that already credited the $250 credits to eligible students.
Veterans’ Cash
At the same time across the street, the Department of Veterans’ Affairs director received an earful about the delay of distributing $3 million made from a scratch-off lottery game. Programs for veterans, including $125,000 needed to open a shelter for homeless veterans, have been waiting. (I had to listen to a recording of the committee hearing because this was all happening simultaneously.)
The governor’s program to provide health care to some Illinois veterans is underused, so far. Rep. Linda Chapa LaVia, an Aurora Democrat and military veteran, said only 14 veterans were enrolled in the governor’s Veterans’ Care program. She also said the department has not yet defined how it would split up the $3 million generated by Lt. Gov. Pat Quinn’s scratch-off lottery game, Veterans’ Cash. It’s supposed to help the state provide services for post-traumatic stress disorder, homelessness, long-term medical care and short-term medical care.
The Midwest Shelter for Homeless Veterans in Lombard, for example, is $90,000 short of the amount needed to open its doors, said Bob Adams, co-chair of the shelter’s board of directors. His co-chair, Dirk Enger, said, “The biggest problem is a lack of communication. Somewhere the ball has been dropped.”
Department of Veterans’ Affairs Director Roy Dolgos said his staff has been working closely with the legislative Joint Committee on Administrative Rules since August to draft rules for the governor's program and for distributing the money, but it’s taken so long because the process is new to the department and that they didn't want to mess it up.
More to come
The 94th General Assembly’s veto session has spread between downtown Springfield and the state Capitol a few blocks away because of renovations being done in the House and Senate chambers. Action will continue Thursday and then break for Thanksgiving before reconvening November 28. Still hanging out there are 1) a three-year freeze on electricity rates and 2) a pay raise for Illinois senators.
The Senate approved a $1 minimum wage increase 33 to 21 with 3 voting present. The measure would increase the minimum wage to $7.50, 25 cents more than a federal increase being debated in Congress. If approved by the Illinois House, the state minimum wage also would be to inflation from then on.
House approval is not a guarantee. House Speaker Michael Madigan said Tuesday afternoon that he hadn’t seen the bill, yet. “I’ve always supported increases in minimum wage. I’ve got a 35-year record of supporting those increases. I’m simply saying that we’re not certain what the proposal is.”
One sticky point in the Senate debate focused on whether businesses would still have the ability to pay part-time workers younger than 18 less than the minimum wage (50 cents less). Under Sen. Kimberly Lightford’s measure, all workers of all ages would be guaranteed $7.50.
While a minimum wage came closer to an increase, the governor’s first-term promises of giving college tuition grants and veterans health-care services are under scrutiny.
College tuition credits
Earlier Wednesday, a joint House committee heard from Michael Luke of the Illinois attorney general’s office about the sale of the state’s student loan portfolio. While the attorney general’s office was studying whether the Illinois Student Assistance Commission needed legislative approval to sell all of the nearly $4 billion asset, Luke said the commission’s staff and the governor’s legal staff were uncooperative in providing information.
That caused the attorney general’s office to issue an opinion based on limited information.
That drew criticism from some Republican committee members and raised questions about the governor’s new MAP Plus program. Last spring, the General Assembly designated $34.4 million to offer $250 a semester to students from middle-income families, but the commission does not yet have the money to pay for the new program and other initiatives contingent on the sale of the student loan portfolio. Commission chairman Donald McNeil said the process of selling, refinancing or partnering with private companies is two months behind, but the commission is confident the money will be there when it comes time to reimburse the 40 institutions that already credited the $250 credits to eligible students.
Veterans’ Cash
At the same time across the street, the Department of Veterans’ Affairs director received an earful about the delay of distributing $3 million made from a scratch-off lottery game. Programs for veterans, including $125,000 needed to open a shelter for homeless veterans, have been waiting. (I had to listen to a recording of the committee hearing because this was all happening simultaneously.)
The governor’s program to provide health care to some Illinois veterans is underused, so far. Rep. Linda Chapa LaVia, an Aurora Democrat and military veteran, said only 14 veterans were enrolled in the governor’s Veterans’ Care program. She also said the department has not yet defined how it would split up the $3 million generated by Lt. Gov. Pat Quinn’s scratch-off lottery game, Veterans’ Cash. It’s supposed to help the state provide services for post-traumatic stress disorder, homelessness, long-term medical care and short-term medical care.
The Midwest Shelter for Homeless Veterans in Lombard, for example, is $90,000 short of the amount needed to open its doors, said Bob Adams, co-chair of the shelter’s board of directors. His co-chair, Dirk Enger, said, “The biggest problem is a lack of communication. Somewhere the ball has been dropped.”
Department of Veterans’ Affairs Director Roy Dolgos said his staff has been working closely with the legislative Joint Committee on Administrative Rules since August to draft rules for the governor's program and for distributing the money, but it’s taken so long because the process is new to the department and that they didn't want to mess it up.
More to come
The 94th General Assembly’s veto session has spread between downtown Springfield and the state Capitol a few blocks away because of renovations being done in the House and Senate chambers. Action will continue Thursday and then break for Thanksgiving before reconvening November 28. Still hanging out there are 1) a three-year freeze on electricity rates and 2) a pay raise for Illinois senators.
Wednesday, November 08, 2006
What this means
A lot of analysis will be kicked around as we try to understand what the November 7 election results mean for the future of this state, but here’s a starting point:
• Democrats swept the constitutional offices and will maintain majorities in the Illinois House and Senate, but Senate Majority Leader Emil Jones Jr. might have taken the cake. His 31 Democrats and one Independent-turned-Democrat could have gained enough seats to secure a “super majority” of 36, the number of votes needed to override the governor’s vetoes and to approve some major items, such as the long-awaited school and road construction plans. But that doesn’t mean those major items will fly through the House, which is unlikely to gain enough seats to secure a three-fifths majority.
• Update: Key state legislative races that we covered in September proved to be tight. In the northwest suburbs of Chicago, Democrat Fred Crespo has a lead over incumbent Terry Parke, a Hoffman Estates Republican who has served the area for more than two decades. Not all precincts had reported the last I checked. Downstate around Clinton, Marion and Jefferson counties, Democratic incumbent Kurt Granberg of Carlyle could edge out his repeat Republican opponent, John Cavaletto of Salem. But the race has yet to be called, with the latest results showing Granberg with 50 percent to Cavaletto’s 49 percent. That’s a difference of about 100 votes.
• A county-by-county map of unofficial AP results of the Illinois governors' race shows Republican Judy Baar Topinka won counties spanning the middle third of the state, while Blagojevich won many counties in deep southern and some western Illinois. He swept Lake, Cook and Will counties lining Lake Michigan. Green Party candidate Rich Whitney secured 10 percent of the vote statewide, ranging from 4 percent in counties surrounding St. Louis (he received 5 percent in many western Illinois counties) to 25 percent in Jackson County, where he lives in Carbondale. He received double digits in many central Illinois counties, but not as many in deep southern Illinois.
• Democrats swept the constitutional offices and will maintain majorities in the Illinois House and Senate, but Senate Majority Leader Emil Jones Jr. might have taken the cake. His 31 Democrats and one Independent-turned-Democrat could have gained enough seats to secure a “super majority” of 36, the number of votes needed to override the governor’s vetoes and to approve some major items, such as the long-awaited school and road construction plans. But that doesn’t mean those major items will fly through the House, which is unlikely to gain enough seats to secure a three-fifths majority.
• Update: Key state legislative races that we covered in September proved to be tight. In the northwest suburbs of Chicago, Democrat Fred Crespo has a lead over incumbent Terry Parke, a Hoffman Estates Republican who has served the area for more than two decades. Not all precincts had reported the last I checked. Downstate around Clinton, Marion and Jefferson counties, Democratic incumbent Kurt Granberg of Carlyle could edge out his repeat Republican opponent, John Cavaletto of Salem. But the race has yet to be called, with the latest results showing Granberg with 50 percent to Cavaletto’s 49 percent. That’s a difference of about 100 votes.
• A county-by-county map of unofficial AP results of the Illinois governors' race shows Republican Judy Baar Topinka won counties spanning the middle third of the state, while Blagojevich won many counties in deep southern and some western Illinois. He swept Lake, Cook and Will counties lining Lake Michigan. Green Party candidate Rich Whitney secured 10 percent of the vote statewide, ranging from 4 percent in counties surrounding St. Louis (he received 5 percent in many western Illinois counties) to 25 percent in Jackson County, where he lives in Carbondale. He received double digits in many central Illinois counties, but not as many in deep southern Illinois.
Tuesday, November 07, 2006
New term, same quotes
Gov. Rod Blagojevich’s speech, as seen live on the Web, sounded like many other speeches I’ve heard him give. He recited his favorite anecdotes, right down to being the son of an immigrant steelworker. He said the guiding principle of his administration is getting things done for people and trying to make sure things are better for the next generation.
He even repeated the same quote from his Monday campaign stop at Springfield’s airport. He cited the Rudyard Kipling poem, “If,” in the closing stanza. “If you can talk with crowds and keep your virtue, or walk with kings, nor lose the common touch, if neither foes nor loving friends can hurt you, if all men count with you, but none too much. If you can fill the unforgiving minute with 60 seconds’ worth of distance run, yours is the earth and everything that’s in it, and which is more you’ll be a man, my son.”
The only difference is that Monday, he asked his supporters to give him one more minute so he could continue to build on progress. Now he’s got four more years. We’ll be watching for that progress every minute he's in office.
He even repeated the same quote from his Monday campaign stop at Springfield’s airport. He cited the Rudyard Kipling poem, “If,” in the closing stanza. “If you can talk with crowds and keep your virtue, or walk with kings, nor lose the common touch, if neither foes nor loving friends can hurt you, if all men count with you, but none too much. If you can fill the unforgiving minute with 60 seconds’ worth of distance run, yours is the earth and everything that’s in it, and which is more you’ll be a man, my son.”
The only difference is that Monday, he asked his supporters to give him one more minute so he could continue to build on progress. Now he’s got four more years. We’ll be watching for that progress every minute he's in office.
Blame it on the money
Former Gov. Jim Edgar, who can speak as a Republican Party member as well as a political analyst, said Gov. Rod Blagojevich won by having the advantage of more campaign money.
“To put on a successful campaign, we’re going to have to have adequate resources, not just a good candidate. I thought Judy Baar Topinka was a good candidate, but she didn’t have the financial help she needed.”
He said he was disappointed with the fund-raising from national and past Topinka supporters, which contributed to her delayed response to negative ads aired by the governor’s camp.
By Edgar’s count, Blagojevich outspent Topinka 5-to-1 and ran negative commercials, and unfortunately, many people rely on them for candidate information. “You can look at the numbers, and, I know people don’t like negative commercials, but when [Blagojevich] went negative on Judy, that changed the outlook of this election.”
In short, he said by defining Topinka as “George Ryan’s treasurer” — even though she’s a three-term, independently elected constitutional officer — Blagojevich inoculated himself from the potentially damaging news stories about an ongoing federal investigation into his administration’s hiring and contracting practices.
“To put on a successful campaign, we’re going to have to have adequate resources, not just a good candidate. I thought Judy Baar Topinka was a good candidate, but she didn’t have the financial help she needed.”
He said he was disappointed with the fund-raising from national and past Topinka supporters, which contributed to her delayed response to negative ads aired by the governor’s camp.
By Edgar’s count, Blagojevich outspent Topinka 5-to-1 and ran negative commercials, and unfortunately, many people rely on them for candidate information. “You can look at the numbers, and, I know people don’t like negative commercials, but when [Blagojevich] went negative on Judy, that changed the outlook of this election.”
In short, he said by defining Topinka as “George Ryan’s treasurer” — even though she’s a three-term, independently elected constitutional officer — Blagojevich inoculated himself from the potentially damaging news stories about an ongoing federal investigation into his administration’s hiring and contracting practices.
"That's the way it goes"
Topinka, characteristic coffee cup in hand, addressed her supporters with a hoarse voice as she congratulated incumbent Gov. Rod Blagojevich for his win. “That’s the way it goes. God bless him.”
Flanked by her son Joe, she said she ran her campaign the right way. “How many people can say they’ve been in politics for 26 years and have nothing but wonderful things to show for it? I mean, it’s just great.”
In true Judy Baar Topinka style, she continued to joke about everything from her coffee cup to her two dogs. But then she got a little sentimental. “You know I’ve loved every minute of it, even the tough times. I’ve really tried to serve honorably. I think there’s something to be said for honor, and integrity and sticking up for what you believe in. And whatever you can say about campaigns, we did it the right way. And it was honorable.”
She left the stage and the room, and security guards escorted her out of sight. Comments from Gov. Jim Edgar to come.
Flanked by her son Joe, she said she ran her campaign the right way. “How many people can say they’ve been in politics for 26 years and have nothing but wonderful things to show for it? I mean, it’s just great.”
In true Judy Baar Topinka style, she continued to joke about everything from her coffee cup to her two dogs. But then she got a little sentimental. “You know I’ve loved every minute of it, even the tough times. I’ve really tried to serve honorably. I think there’s something to be said for honor, and integrity and sticking up for what you believe in. And whatever you can say about campaigns, we did it the right way. And it was honorable.”
She left the stage and the room, and security guards escorted her out of sight. Comments from Gov. Jim Edgar to come.
Topinka's coming
Just as I was going to post my last entry, I heard that Topinka's on her way down. I'll report back as soon as she speaks.
What I was going to say:
While more precincts are reporting vote returns, not many more people have shown up at Topinka’s election-night party. One that stuck out was Ron Gidwitz, Topinka’s opponent in the March primary. He now supports Topinka.
A more developing story comes from Carbondale, where there’s likely a happy Green Party candidate for governor, Rich Whitney. One of his campers, Jessica Bradshaw, has been blogging and expressing her excitement as Whitney’s percentages reach double digits in some counties. Unofficial results, such as those reported by CBS 2, show Whitney with 10 percent with 4,514 of 11,692 precincts reporting. That’s more than the required percentage to relax the requirements for future Green Party candidates to get on the ballet.
Gov. Rod Blagojevich’s election-night headquarters has been covered by University of Illinois at Springfield’s WUIS, which reports the governor could appear within the hour.
What I was going to say:
While more precincts are reporting vote returns, not many more people have shown up at Topinka’s election-night party. One that stuck out was Ron Gidwitz, Topinka’s opponent in the March primary. He now supports Topinka.
A more developing story comes from Carbondale, where there’s likely a happy Green Party candidate for governor, Rich Whitney. One of his campers, Jessica Bradshaw, has been blogging and expressing her excitement as Whitney’s percentages reach double digits in some counties. Unofficial results, such as those reported by CBS 2, show Whitney with 10 percent with 4,514 of 11,692 precincts reporting. That’s more than the required percentage to relax the requirements for future Green Party candidates to get on the ballet.
Gov. Rod Blagojevich’s election-night headquarters has been covered by University of Illinois at Springfield’s WUIS, which reports the governor could appear within the hour.
Birkett's response
People are starting to trickle into the ballroom, and Topinka’s campaign staffers have been buzzing back and forth between the basement and upstairs.Topinka hasn’t yet been sighted.
Joe Birkett, Topinka’s running mate and candidate for lieutenant governor, came in for a brief statement. Surrounded by reporters, he said it’s way too early and irresponsible to call the race based on exit polls before some polls — Kane County — haven’t even closed. He said it could discourage people who haven’t voted from driving to cast their ballots.
His statements echoed a press release received through e-mail. In it, campaign spokesman John McGovern said, “Recent history has shown that exit polls are not always accurate. An early call of any election depresses voter turnout and disenfranchises voters. That is unfortunate for the democratic process.”
Joe Birkett, Topinka’s running mate and candidate for lieutenant governor, came in for a brief statement. Surrounded by reporters, he said it’s way too early and irresponsible to call the race based on exit polls before some polls — Kane County — haven’t even closed. He said it could discourage people who haven’t voted from driving to cast their ballots.
His statements echoed a press release received through e-mail. In it, campaign spokesman John McGovern said, “Recent history has shown that exit polls are not always accurate. An early call of any election depresses voter turnout and disenfranchises voters. That is unfortunate for the democratic process.”
Topinka's first response
As expected, reporters crowded Judy Baar Topinka’s campaign spokesman, John McGovern, shortly after 7:30 p.m. And as expected, he said the campaign had no official comment, yet. But he did say the campaign feels Topinka finished very strongly, despite the “unprecedented” amount of money spent on negative advertising that “dumbed down the discourse of this election.”
At that point, the crowd of reporters had grown and consumed the back hallway as they tried to hear McGovern’s statement. All he said was that the campaign was working to get a more comprehensive response.
At that point, the crowd of reporters had grown and consumed the back hallway as they tried to hear McGovern’s statement. All he said was that the campaign was working to get a more comprehensive response.
Winner already?
Here I am, ready to cover exciting election results from Judy Baar Topinka’s camp at the Swissotel-Chicago, and what happens as soon as I prepare to write my first blog? ABC 7 and CBS 2 in Chicago report Gov. Rod Blagojevich wins reelection over Topinka.
Most polls closed only minutes before at 7 p.m., save Kane County polls that the Daily Herald reported opened more than an hour late.
Topinka’s campaigners and staffers are on their cell phones. There’s still a lot of ballot counting and confirming that has to be done. And it will still be interesting to find out how vote returns panned out across the state. Stay tuned.
Most polls closed only minutes before at 7 p.m., save Kane County polls that the Daily Herald reported opened more than an hour late.
Topinka’s campaigners and staffers are on their cell phones. There’s still a lot of ballot counting and confirming that has to be done. And it will still be interesting to find out how vote returns panned out across the state. Stay tuned.
Monday, November 06, 2006
Election night
I will be live blogging from Republican Judy Baar Topinka’s Election Night Party in Chicago Tuesday. You’re welcome to join me as I observe the colorful scenes of Topinka’s campaign and follow online vote returns of races throughout the state.
Here’s to the last day of 2006 General Election campaign ads!
Here’s to the last day of 2006 General Election campaign ads!
Friday, October 27, 2006
Breathe
Many journalists held their breaths today as they waited to hear how close a federal investigation of state contracting schemes would come to Gov. Rod Blagojevich. In a Chicago federal court building this afternoon, one of the governor’s appointees, Stuart Levine, pleaded guilty to mail fraud and money laundering.
Levine, a significant GOP fund-raiser, was appointed by former Gov. George Ryan to sit on two regulatory boards, the Teachers Retirement System, which pays the pensions of teachers outside of Chicago, and the Health Facilities Planning Board, which oversees construction projects of hospitals and other medical buildings. He was originally appointed to the planning board during Gov. Jim Edgar’s Administration and was reappointed by Ryan, then Blagojevich.
Levine’s plea agreement lays out details of an intricate scheme described in the indictment of Levine and Antoin “Tony” Rezko, Blagojevich's political advisor (see more on our news page). Levine worked with at least five others in schemes between 2001 and 2004.
The details are many, but, alas, reporters see only a slew of unnamed individuals — A through L and investment firms 1 through 9. By using code names, prosecutors haven’t yet tipped their hands on how close the schemes come to the governor’s inner circle.
Levine has been cooperating with the feds for months, which could reduce his sentence, and he won’t be sentenced until the ongoing investigation concludes.
There are a lot of people involved, and a lot more details will rain down before it’s all over. In short, reporters aren’t the only ones holding their breaths this fall.
Levine, a significant GOP fund-raiser, was appointed by former Gov. George Ryan to sit on two regulatory boards, the Teachers Retirement System, which pays the pensions of teachers outside of Chicago, and the Health Facilities Planning Board, which oversees construction projects of hospitals and other medical buildings. He was originally appointed to the planning board during Gov. Jim Edgar’s Administration and was reappointed by Ryan, then Blagojevich.
Levine’s plea agreement lays out details of an intricate scheme described in the indictment of Levine and Antoin “Tony” Rezko, Blagojevich's political advisor (see more on our news page). Levine worked with at least five others in schemes between 2001 and 2004.
The details are many, but, alas, reporters see only a slew of unnamed individuals — A through L and investment firms 1 through 9. By using code names, prosecutors haven’t yet tipped their hands on how close the schemes come to the governor’s inner circle.
Levine has been cooperating with the feds for months, which could reduce his sentence, and he won’t be sentenced until the ongoing investigation concludes.
There are a lot of people involved, and a lot more details will rain down before it’s all over. In short, reporters aren’t the only ones holding their breaths this fall.
Thursday, October 26, 2006
For better or for worse
Technology has changed elections. Anyone with a high-speed Internet connection has access to a lot of information about political candidates. While broadband hasn’t been equally available in rural and urban areas, campaign organizers realize they can reach a new and younger crowd by using Web sites viewed by the Internet savvy.
For instance, Congressman John Shimkus posted his profile on Facebook, a “social directory” where friends share information with each other. But you would have to create a Facebook account to view his full profile that includes his contact information, educational and work information, interests and favorite music, upcoming events and a list of other people he accepts as “friends” in his network.
Barack Obama has a blog that links to his Facebook profile and to his video appearances, such as his CNN interview on “The Situation Room” posted on YouTube, another Web site that enables people to post and watch their own videos.
And there are many more political ads on YouTube, whether they were posted by the official campaign or by someone else. A search for Judy Baar Topinka or Rod Blagojevich each produce about three dozen links to TV ads and other related videos, some of which could be Joe Schmo’s personal commentary. And, like any Internet search, you may also get some other stuff not directly related to your inquiry and not exactly in good taste.
And buyer beware, politicians’ ads tend to spin the facts in their favor. Case in point, Blagojevich’s recent ad accuses Topinka, three-term state treasurer, of being connected to the last administration’s corruption because she was “George Ryan’s treasurer.” As recently said by Charlie Wheeler, director of the Public Affairs Reporting program at the University of Illinois at Springfield, the treasurer has no more to do with the legislative process than a Statehouse janitor does. And isn’t Topinka also Blagojevich’s treasurer?
But if a voter still wants to see what is being produced across the state, a person in northern Illinois can look up political ads being aired in the relatively hot state senate race in east central Illinois to replace Republican Sen. Rick Winkle. A commercial for Republican Judy Myers is posted targeting Democrat Michael Frerichs. He also posted his own TV ad on his Web site.
For those who are interested in how Illinois races compare to races in other states, there’s a new national resource online in the form of a daily blog. Most of Illinois’ political insiders know of Rich Miller’s Capitol Fax Blog, but it now has been added to The Hotline Political Network. While the site has room to grow, it’s designed to feature bloggers who are the unofficial sources for insider news and analysis from their respective states.
For instance, Congressman John Shimkus posted his profile on Facebook, a “social directory” where friends share information with each other. But you would have to create a Facebook account to view his full profile that includes his contact information, educational and work information, interests and favorite music, upcoming events and a list of other people he accepts as “friends” in his network.
Barack Obama has a blog that links to his Facebook profile and to his video appearances, such as his CNN interview on “The Situation Room” posted on YouTube, another Web site that enables people to post and watch their own videos.
And there are many more political ads on YouTube, whether they were posted by the official campaign or by someone else. A search for Judy Baar Topinka or Rod Blagojevich each produce about three dozen links to TV ads and other related videos, some of which could be Joe Schmo’s personal commentary. And, like any Internet search, you may also get some other stuff not directly related to your inquiry and not exactly in good taste.
And buyer beware, politicians’ ads tend to spin the facts in their favor. Case in point, Blagojevich’s recent ad accuses Topinka, three-term state treasurer, of being connected to the last administration’s corruption because she was “George Ryan’s treasurer.” As recently said by Charlie Wheeler, director of the Public Affairs Reporting program at the University of Illinois at Springfield, the treasurer has no more to do with the legislative process than a Statehouse janitor does. And isn’t Topinka also Blagojevich’s treasurer?
But if a voter still wants to see what is being produced across the state, a person in northern Illinois can look up political ads being aired in the relatively hot state senate race in east central Illinois to replace Republican Sen. Rick Winkle. A commercial for Republican Judy Myers is posted targeting Democrat Michael Frerichs. He also posted his own TV ad on his Web site.
For those who are interested in how Illinois races compare to races in other states, there’s a new national resource online in the form of a daily blog. Most of Illinois’ political insiders know of Rich Miller’s Capitol Fax Blog, but it now has been added to The Hotline Political Network. While the site has room to grow, it’s designed to feature bloggers who are the unofficial sources for insider news and analysis from their respective states.
Thursday, October 19, 2006
Obama mania
You couldn’t miss seeing Barack Obama’s face if you tried this week. He’s promoting his new book, The Audacity of Hope, landing him on the covers of Time, Men’s Vogue and Sojourners Christian magazine. And he was interviewed on the “Oprah Winfrey Show,” NBC’s “Today” show, and will appear tonight on CNN’s “Larry King Live.”
His media blitz crosses state lines. Two newspaper reporters for Lee Enterprises — Kurt Erickson in Springfield and our former Statehouse bureau chief, Patrick Guinane, who now works in Indianapolis — co-wrote an article about Obama Monday. While Obama campaigned in Indianapolis, his colleague, U.S. Sen. Dick Durbin, another Illinois Democrat, encouraged the junior senator to run for president in 2008. Durbin had stopped in Springfield to campaign for state treasurer candidate Alexi Giannoulias, but his thoughts on Obama dominated a few minutes of questioning.
This is all on the heels of numerous reporters following Obama’s every move in Africa and his campaign stops in Iowa last month. (A politician’s trip to Iowa typically breeds a presidential nomination). It’s all quite unbelievable. But out of all the media coverage, one quote sticks out.
Joe Kline’s Time article draws particular attention because it hints that Obama no longer rules out a run for president in 2008. Here’s an excerpt from when Kline asks whether Obama would consider a presidential bid after November 7: “‘When the election is over and my book tour is done, I will think about how I can be most useful to the country and how I can reconcile that with being a good dad and a good husband,’ he says carefully, and then adds, ‘I haven’t completely decided or unraveled that puzzle yet.’”
Kline picked up on Obama’s journey in piecing together that puzzle. He counts about 50 times Obama uses “on the other hand” in his new book. Voters may appreciate how on-the-other-hands show thought and consideration of opposing viewpoints, but Kline suggests voters might want to consider whether they would feel comfortable voting for a presidential candidate who teetered with on-the-other-hands before and after the election.
Obama is 45 years old. He has spent less than two years representing Illinois in the U.S. Senate. Yet, vocal supporters say his inexperience matters less than his ability to engage and unite a diverse electorate that’s yearning for a genuine leader.
In the Capitol press room Monday, Durbin said the time is now. “Those people who are arguing, ‘Well, wait four more years,’ do you think 2,000 more votes cast in the United States Senate are going to make you a better candidate for president? I’m not sure they will.”
Asked why he thinks Obama is the right person for the job, Durbin said, “I have found him to be approachable and very intelligent and trying to find ways to solve problems in practical terms. And I think people like that. They want to move beyond the mendacity of our current political scene and try to find someone who is going to reach out to the other side of the aisle and unite our country and unite the political scene to solve some problems. He has a way about him, and you know it if you’ve covered him and seen him. You just know that his style is a very engaging and comfortable style.”
He added that other senators were “dazzled” by Obama, who had already been launched into stardom by his keynote address at the 2004 Democratic National Convention before he was even elected. Yet, Obama didn’t fall into the “small boat full of titanic egos” that makes up the U.S. Senate, Durbin said, and the momentum behind Obama 2008 has continued to grow before it’s even started.
His media blitz crosses state lines. Two newspaper reporters for Lee Enterprises — Kurt Erickson in Springfield and our former Statehouse bureau chief, Patrick Guinane, who now works in Indianapolis — co-wrote an article about Obama Monday. While Obama campaigned in Indianapolis, his colleague, U.S. Sen. Dick Durbin, another Illinois Democrat, encouraged the junior senator to run for president in 2008. Durbin had stopped in Springfield to campaign for state treasurer candidate Alexi Giannoulias, but his thoughts on Obama dominated a few minutes of questioning.
This is all on the heels of numerous reporters following Obama’s every move in Africa and his campaign stops in Iowa last month. (A politician’s trip to Iowa typically breeds a presidential nomination). It’s all quite unbelievable. But out of all the media coverage, one quote sticks out.
Joe Kline’s Time article draws particular attention because it hints that Obama no longer rules out a run for president in 2008. Here’s an excerpt from when Kline asks whether Obama would consider a presidential bid after November 7: “‘When the election is over and my book tour is done, I will think about how I can be most useful to the country and how I can reconcile that with being a good dad and a good husband,’ he says carefully, and then adds, ‘I haven’t completely decided or unraveled that puzzle yet.’”
Kline picked up on Obama’s journey in piecing together that puzzle. He counts about 50 times Obama uses “on the other hand” in his new book. Voters may appreciate how on-the-other-hands show thought and consideration of opposing viewpoints, but Kline suggests voters might want to consider whether they would feel comfortable voting for a presidential candidate who teetered with on-the-other-hands before and after the election.
Obama is 45 years old. He has spent less than two years representing Illinois in the U.S. Senate. Yet, vocal supporters say his inexperience matters less than his ability to engage and unite a diverse electorate that’s yearning for a genuine leader.
In the Capitol press room Monday, Durbin said the time is now. “Those people who are arguing, ‘Well, wait four more years,’ do you think 2,000 more votes cast in the United States Senate are going to make you a better candidate for president? I’m not sure they will.”
Asked why he thinks Obama is the right person for the job, Durbin said, “I have found him to be approachable and very intelligent and trying to find ways to solve problems in practical terms. And I think people like that. They want to move beyond the mendacity of our current political scene and try to find someone who is going to reach out to the other side of the aisle and unite our country and unite the political scene to solve some problems. He has a way about him, and you know it if you’ve covered him and seen him. You just know that his style is a very engaging and comfortable style.”
He added that other senators were “dazzled” by Obama, who had already been launched into stardom by his keynote address at the 2004 Democratic National Convention before he was even elected. Yet, Obama didn’t fall into the “small boat full of titanic egos” that makes up the U.S. Senate, Durbin said, and the momentum behind Obama 2008 has continued to grow before it’s even started.
Friday, October 13, 2006
Rezko repercussions
In the aftermath of a long-rumored federal indictment of Antoin “Tony” Rezko this week (see our Illinois Issues news item), Gov. Rod Blagojevich is being asked to answer questions about his chief fundraiser, advisor and friend.
Federal prosecutors announced Rezko’s two indictments (see 1 and 2) Wednesday afternoon, detailing pay-to-pay schemes with at least five others who allegedly used their positions on public boards to pressure investment firms into paying illegal fees and making political contributions.
The governor responded in a press conference Wednesday night, streamed live on the Internet. Blagojevich said, “On a personal level, what is so disappointing to me and so surprising to me is that he would engage in a criminal conspiracy to personally enrich himself, and do that behind our backs and then repeatedly deceive us, deceive me, lie to us and reassure us that the rumors about him weren’t true.” He also said he would donate about $60,000 to $70,000 of Rezko’s direct campaign contributions to charity.
Meanwhile, candidates for Illinois' legislative seats and statewide offices are jumping at the chance to claim their righteousness this election season.
The Republican gubernatorial candidate, three-term state Treasurer Judy Baar Topinka, stopped by the Capitol Thursday with her running mate, DuPage County state’s attorney Joe Birkett, to say the governor should answer questions about the gifts he received from Rezko. She also touted her ethics plan.
“Things do not have to be this way,” Topinka said. “We can have good, honest government in Illinois. There’s no reason why Illinois has to be different from other states on that front. I just want to be a governor who will do a good job and do the right thing.”
Federal prosecutors announced Rezko’s two indictments (see 1 and 2) Wednesday afternoon, detailing pay-to-pay schemes with at least five others who allegedly used their positions on public boards to pressure investment firms into paying illegal fees and making political contributions.
The governor responded in a press conference Wednesday night, streamed live on the Internet. Blagojevich said, “On a personal level, what is so disappointing to me and so surprising to me is that he would engage in a criminal conspiracy to personally enrich himself, and do that behind our backs and then repeatedly deceive us, deceive me, lie to us and reassure us that the rumors about him weren’t true.” He also said he would donate about $60,000 to $70,000 of Rezko’s direct campaign contributions to charity.
Meanwhile, candidates for Illinois' legislative seats and statewide offices are jumping at the chance to claim their righteousness this election season.
The Republican gubernatorial candidate, three-term state Treasurer Judy Baar Topinka, stopped by the Capitol Thursday with her running mate, DuPage County state’s attorney Joe Birkett, to say the governor should answer questions about the gifts he received from Rezko. She also touted her ethics plan.
“Things do not have to be this way,” Topinka said. “We can have good, honest government in Illinois. There’s no reason why Illinois has to be different from other states on that front. I just want to be a governor who will do a good job and do the right thing.”
Tuesday, October 10, 2006
Power play
Storyline The same day Gov. Rod Blagojevich walked in Chicago’s Columbus Day parade, a state House committee met for nearly six hours in Springfield and approved a measure to freeze electricity rates in Illinois for three years despite warnings that the state’s two largest utilities could face bankruptcy.
Background Rates have been frozen for a decade due to the 1997 state law that was intended to make the electric industry more competitive in buying electricity and distributing the energy to consumers at a fair price. Competition didn’t quite develop as expected, so the Illinois Commerce Commission and the utilities came up with a type of auction in which more than 20 companies bid to supply energy. The September auction resulted in a projected 22 percent rate increase, or about $13 more per month, for Commonwealth Edison’s residential customers in northern Illinois. Ameren’s residential customers south of Interstate-80 could expect a 45 percent to 55 percent rate increase, costing them about $25 to $35 more per month. Commercial and industrial customers could pay even more. House Speaker Michael Madigan urged the governor to call a special legislative session to approve a rate freeze.
SCENE 1 A last-minute rally of Commonwealth Edison employees formed Monday morning in the Capitol rotunda, kicking off a long day of seemingly staged events. The employees wore white T-shirts that said, “be emPOWERed” and held signs that read, “Keep the lights on with reliable power.”
SCENE 2 Two consecutive press conferences polarized the issue. First, a group called CORE, for Consumers Organized for Reliable Electricity, represented the utility industry and business interests. The group warned that ComEd customers, particularly those in low-income communities, would be negatively affected by a three-year rate freeze because utility companies would have to buy electricity at a lower price than they could pass on to customers, which utilities say would result in bankruptcy and an unstable electricity supply.
Then a group called CUB, the Citizens Utility Board, joined AARP and Lt. Gov. Pat Quinn to argue on behalf of residential customers. “The consumers of Illinois are not going to be fooled by powerful utility companies with scores of lobbyists and corporate executives who are paid more than King Midas and will get even more money if this so-called rate increase is allowed to proceed,” Quinn said. “This is really an epic battle in democracy in the Land of Lincoln.”
SCENE 3 The ComEd employees chanted “reliable power” as soon as the House Electric Utility Oversight Committee convened in the Capitol. Here’s a summary of nearly six hours of debate.
- The Illinois Attorney General’s Office said the utility companies would still make a profit if rates remained frozen, and the energy auction did not achieve the intent of the 1997 law to spur competition.
- Republican Rep. Ron Stephens of Greenville alleged the committee hearing was only called for the political benefit of two vulnerable Democrats up for reelection, Rep. Bob Flider of Mount Zion and Rep. Mike Smith of Canton, both substitutes on the committee Monday. Stephens voted present when the rate freeze proposal was called to a vote.
- ComEd Chief Executive Officer Frank Clark said the company’s $7.8 million in costs would not be recovered by $6.4 million in revenue if the rate freeze took effect. He said a rate freeze also would shatter the stability of the supply of electricity in Illinois.
- Ameren Illinois utilities president Scott Cisel said a rate freeze could cost his company $1 billion more per year than it would receive in revenue. The trickling down effect would start with an immediate layoff of 700 employees and all contractors, as well as delayed connections and customer service.
- Martin Cohen, Blagojevich’s director of consumer affairs, said the governor opposed the auction from the beginning because the 1997 law is ambiguous about how the Illinois Commerce Commission can restructure the way utilities buy and distribute electricity. Cohen said the word “auction” never appears in hundreds of pages of the 1997 law. (Cohen also is the former executive director of the Citizens Utility Board and Blagojevich’s first pick for chair of the Illinois Commerce Commission, which was denied by the Senate.)
SCENE 4 By a vote of 9 yes, 4 no and 1 present, the committee approved the measure to freeze electricity rates for at least three more years. It would need approval by both the House and Senate before January 1 to stop projected rate hikes from taking effect.
Finale After the long day, Speaker Madigan granted a rare five minutes to answer about a dozen questions from the press. “There’s solid evidence coming out of the committee that there’s bipartisan support for this, where both Democrats and Republicans in the committee voting for the extension of the rate freeze,” Madigan said. “And so I think the governor ought to take note of what happened in the committee today. He ought to call the special session.”
One potential hang up could be Senate President Emil Jones Jr.
Madigan: “I’ve talked to Sen. Jones, but I don’t have any commitments from Sen. Jones.”
Background Rates have been frozen for a decade due to the 1997 state law that was intended to make the electric industry more competitive in buying electricity and distributing the energy to consumers at a fair price. Competition didn’t quite develop as expected, so the Illinois Commerce Commission and the utilities came up with a type of auction in which more than 20 companies bid to supply energy. The September auction resulted in a projected 22 percent rate increase, or about $13 more per month, for Commonwealth Edison’s residential customers in northern Illinois. Ameren’s residential customers south of Interstate-80 could expect a 45 percent to 55 percent rate increase, costing them about $25 to $35 more per month. Commercial and industrial customers could pay even more. House Speaker Michael Madigan urged the governor to call a special legislative session to approve a rate freeze.
SCENE 1 A last-minute rally of Commonwealth Edison employees formed Monday morning in the Capitol rotunda, kicking off a long day of seemingly staged events. The employees wore white T-shirts that said, “be emPOWERed” and held signs that read, “Keep the lights on with reliable power.”
SCENE 2 Two consecutive press conferences polarized the issue. First, a group called CORE, for Consumers Organized for Reliable Electricity, represented the utility industry and business interests. The group warned that ComEd customers, particularly those in low-income communities, would be negatively affected by a three-year rate freeze because utility companies would have to buy electricity at a lower price than they could pass on to customers, which utilities say would result in bankruptcy and an unstable electricity supply.
Then a group called CUB, the Citizens Utility Board, joined AARP and Lt. Gov. Pat Quinn to argue on behalf of residential customers. “The consumers of Illinois are not going to be fooled by powerful utility companies with scores of lobbyists and corporate executives who are paid more than King Midas and will get even more money if this so-called rate increase is allowed to proceed,” Quinn said. “This is really an epic battle in democracy in the Land of Lincoln.”
SCENE 3 The ComEd employees chanted “reliable power” as soon as the House Electric Utility Oversight Committee convened in the Capitol. Here’s a summary of nearly six hours of debate.
- The Illinois Attorney General’s Office said the utility companies would still make a profit if rates remained frozen, and the energy auction did not achieve the intent of the 1997 law to spur competition.
- Republican Rep. Ron Stephens of Greenville alleged the committee hearing was only called for the political benefit of two vulnerable Democrats up for reelection, Rep. Bob Flider of Mount Zion and Rep. Mike Smith of Canton, both substitutes on the committee Monday. Stephens voted present when the rate freeze proposal was called to a vote.
- ComEd Chief Executive Officer Frank Clark said the company’s $7.8 million in costs would not be recovered by $6.4 million in revenue if the rate freeze took effect. He said a rate freeze also would shatter the stability of the supply of electricity in Illinois.
- Ameren Illinois utilities president Scott Cisel said a rate freeze could cost his company $1 billion more per year than it would receive in revenue. The trickling down effect would start with an immediate layoff of 700 employees and all contractors, as well as delayed connections and customer service.
- Martin Cohen, Blagojevich’s director of consumer affairs, said the governor opposed the auction from the beginning because the 1997 law is ambiguous about how the Illinois Commerce Commission can restructure the way utilities buy and distribute electricity. Cohen said the word “auction” never appears in hundreds of pages of the 1997 law. (Cohen also is the former executive director of the Citizens Utility Board and Blagojevich’s first pick for chair of the Illinois Commerce Commission, which was denied by the Senate.)
SCENE 4 By a vote of 9 yes, 4 no and 1 present, the committee approved the measure to freeze electricity rates for at least three more years. It would need approval by both the House and Senate before January 1 to stop projected rate hikes from taking effect.
Finale After the long day, Speaker Madigan granted a rare five minutes to answer about a dozen questions from the press. “There’s solid evidence coming out of the committee that there’s bipartisan support for this, where both Democrats and Republicans in the committee voting for the extension of the rate freeze,” Madigan said. “And so I think the governor ought to take note of what happened in the committee today. He ought to call the special session.”
One potential hang up could be Senate President Emil Jones Jr.
Madigan: “I’ve talked to Sen. Jones, but I don’t have any commitments from Sen. Jones.”
Thursday, September 28, 2006
Ag wish list
The recent E.coli outbreak in spinach and last year’s string of hurricanes indicates our vulnerability to disease and disaster. Now states want the federal government to better address food safety standards and preparedness. Illinois and other farm states also want the feds to help farmers grow more fruits and vegetables, fund research and development of renewable fuels and create a standard disaster response program. Illinois’ Department of Agriculture Director Chuck Hartke this week provided a taste of Illinois’ wish list for agriculture, including the alternative crops we discuss in-depth in our October issue (due out the first week of October). Hartke recently attended a weeklong meeting of the National Association of State Departments of Agriculture in Norfolk, Va. Here are a few talking points:
Ethanol “Ethanol is just exploding in the Midwest, especially those states that produce corn and soybeans,” Hartke said. Illinois has six ethanol plants online, one more coming soon. There also are another 50 or so plants in various stages of development, from studying the feasibility to filing their permits to build. While Hartke said not all of the “wannabes” will work out, he gave an optimistic outlook: “Within two years, we’ll be producing 2.8 billion gallons of ethanol and utilizing 1 billion bushels of Illinois corn, which is half of what we have.”
At the same time, Illinois has dipped from No. 1 to No. 3 in the gallons of ethanol produced a year. But there’s a reason for that. Hartke said Iowa, Nebraska, North Dakota and South Dakota saw the light a year-and-a-half ago and went gung ho to develop ethanol plants while the market was hot and the corn was cheap. They’re also big cattle states, meaning they can feed a lot of animals with their corn. Illinois, on the other hand, has more corn and fewer cattle. That means farmers have to spend more money and energy to dry the grain before they can send it down the Mississippi River to other states or countries. “I don’t think we’re behind the eight ball,” Hartke said. “We have a lot more corn, and at some point in time, we will be able to produce more corn than those plants are willing to buy and pay for.”
Biomass While corn ethanol benefits Illinois’ economy and environment, it’s not the magic bullet. “We know that if you took all the corn and we planted every acre of corn in the United States, we would not have enough to be energy independent,” Hartke said. “And so we’re going to have to look at other sources that would produce more ethanol per acre and still conserve our soil and our land as we now know it.” That includes experimenting with more switchgrass, miscanthus and other plants that form biomass, which can turn into clean-burning, renewable fuel. “We know it’s a possibility. We can do it in the labs, but the technology and the enzymes for mass production of that is just not there yet.” That’s where the federal government’s research and development would come in. Read more in our October issue.
Farm Bill Congress is considering an extension of the Farm Bill beyond 2007. Hartke said he supported an extension in Illinois, at least. A wish list could include more assistance for conservation programs, standard disaster insurance coverage for all crops and support for young farmers to get into the agriculture business.
Ethanol “Ethanol is just exploding in the Midwest, especially those states that produce corn and soybeans,” Hartke said. Illinois has six ethanol plants online, one more coming soon. There also are another 50 or so plants in various stages of development, from studying the feasibility to filing their permits to build. While Hartke said not all of the “wannabes” will work out, he gave an optimistic outlook: “Within two years, we’ll be producing 2.8 billion gallons of ethanol and utilizing 1 billion bushels of Illinois corn, which is half of what we have.”
At the same time, Illinois has dipped from No. 1 to No. 3 in the gallons of ethanol produced a year. But there’s a reason for that. Hartke said Iowa, Nebraska, North Dakota and South Dakota saw the light a year-and-a-half ago and went gung ho to develop ethanol plants while the market was hot and the corn was cheap. They’re also big cattle states, meaning they can feed a lot of animals with their corn. Illinois, on the other hand, has more corn and fewer cattle. That means farmers have to spend more money and energy to dry the grain before they can send it down the Mississippi River to other states or countries. “I don’t think we’re behind the eight ball,” Hartke said. “We have a lot more corn, and at some point in time, we will be able to produce more corn than those plants are willing to buy and pay for.”
Biomass While corn ethanol benefits Illinois’ economy and environment, it’s not the magic bullet. “We know that if you took all the corn and we planted every acre of corn in the United States, we would not have enough to be energy independent,” Hartke said. “And so we’re going to have to look at other sources that would produce more ethanol per acre and still conserve our soil and our land as we now know it.” That includes experimenting with more switchgrass, miscanthus and other plants that form biomass, which can turn into clean-burning, renewable fuel. “We know it’s a possibility. We can do it in the labs, but the technology and the enzymes for mass production of that is just not there yet.” That’s where the federal government’s research and development would come in. Read more in our October issue.
Farm Bill Congress is considering an extension of the Farm Bill beyond 2007. Hartke said he supported an extension in Illinois, at least. A wish list could include more assistance for conservation programs, standard disaster insurance coverage for all crops and support for young farmers to get into the agriculture business.
Wednesday, August 30, 2006
Pension promises
In a rare move, members of a congressional subcommittee came to the Illinois Capitol Wednesday to learn about the security of the state’s public employee pensions.
The backdrop to the hearing was President George Bush’s decision to sign the Pension Protection Act of 2006, an attempt to halt the nationwide problem of unfulfilled pension promises in the private sector. U.S. Republican Reps. Judy Biggert of Hinsdale and John Kline of Minnesota conducted a hearing for the U.S. House Subcommittee on Employer-Employee Relations. They listened to Illinois officials paint a pretty rosy picture of chronically underfunded pension systems.
Biggert said the hearing was conducted because the public sector is just as troubled as the private sector. In her written testimony, she said four out of five public pension systems in the nation are underfunded collectively by hundreds of billions of dollars. Worst of all is Illinois.
“I’m troubled to say that my home state of Illinois manages a plan for its workers and retirees that is underfunded by $38 billion, making it the worst-funded state pension plan in the nation,” she said.
Interestingly, Biggert served in the Illinois House in 1995 when the legislature passed a law to put Illinois on a gradual track to fully fund the five pension systems by 2045.
Things changed under Gov. Rod Blagojevich’s Administration when the General Assembly allowed the governor to float $10 billion in pension obligation bonds and pay the required amount in 2003 and 2004. Then they yanked $2.3 billion in state contributions in fiscal years ’06 and ’07. (See more details in the August 2006 report of the legislative Commission on Government Forecasting and Accountability.)
John Filan, Blagojevich’s budget director, called the 1995 law a “conscious plan to underfund the pensions for 40 years.”
“What everyone is ignoring is we’re ahead of their funding schedule,” Filan said after the hearing. “If we followed the 1995 funding schedule to a penny, we’d be far worse off. We are 60 percent funded. They wanted 52 percent funded. It’s simple arithmetic.”
Simple arithmetic? Hardly. But he was right when he said the state has had the same problem for 30 years, which is why he thought the timing of this congressional hearing was particularly interesting.
“I think it is more than coincidental, all the sudden, out of the blue, after many years, there’s this hearing in the middle of an election, right here in Springfield. It is what it is. It’s an obvious question that you’re asking. I think the timing is interesting.”
Biggert said there were no political motivations with this hearing. She also said Wednesday’s testimony showed some people don’t think there’s a problem in Illinois and that it is her committee’s job to sort that out and look at other states. While she said the last resort would be the federal government stepping in to regulate the states’ pension systems, it is time to consider whether the new federal standards for the private sector could also apply to the public sector. (See a breakdown of the new federal law on this fact sheet.)
The backdrop to the hearing was President George Bush’s decision to sign the Pension Protection Act of 2006, an attempt to halt the nationwide problem of unfulfilled pension promises in the private sector. U.S. Republican Reps. Judy Biggert of Hinsdale and John Kline of Minnesota conducted a hearing for the U.S. House Subcommittee on Employer-Employee Relations. They listened to Illinois officials paint a pretty rosy picture of chronically underfunded pension systems.
Biggert said the hearing was conducted because the public sector is just as troubled as the private sector. In her written testimony, she said four out of five public pension systems in the nation are underfunded collectively by hundreds of billions of dollars. Worst of all is Illinois.
“I’m troubled to say that my home state of Illinois manages a plan for its workers and retirees that is underfunded by $38 billion, making it the worst-funded state pension plan in the nation,” she said.
Interestingly, Biggert served in the Illinois House in 1995 when the legislature passed a law to put Illinois on a gradual track to fully fund the five pension systems by 2045.
Things changed under Gov. Rod Blagojevich’s Administration when the General Assembly allowed the governor to float $10 billion in pension obligation bonds and pay the required amount in 2003 and 2004. Then they yanked $2.3 billion in state contributions in fiscal years ’06 and ’07. (See more details in the August 2006 report of the legislative Commission on Government Forecasting and Accountability.)
John Filan, Blagojevich’s budget director, called the 1995 law a “conscious plan to underfund the pensions for 40 years.”
“What everyone is ignoring is we’re ahead of their funding schedule,” Filan said after the hearing. “If we followed the 1995 funding schedule to a penny, we’d be far worse off. We are 60 percent funded. They wanted 52 percent funded. It’s simple arithmetic.”
Simple arithmetic? Hardly. But he was right when he said the state has had the same problem for 30 years, which is why he thought the timing of this congressional hearing was particularly interesting.
“I think it is more than coincidental, all the sudden, out of the blue, after many years, there’s this hearing in the middle of an election, right here in Springfield. It is what it is. It’s an obvious question that you’re asking. I think the timing is interesting.”
Biggert said there were no political motivations with this hearing. She also said Wednesday’s testimony showed some people don’t think there’s a problem in Illinois and that it is her committee’s job to sort that out and look at other states. While she said the last resort would be the federal government stepping in to regulate the states’ pension systems, it is time to consider whether the new federal standards for the private sector could also apply to the public sector. (See a breakdown of the new federal law on this fact sheet.)
Tuesday, August 29, 2006
Valuable toll roads
What’s the difference between $1 billion and $24 billion? A lot, considering Gov. Rod Blagojevich wants to put that cash into public education and other services if he wins re-election.
The governor proposed to raise that cash by leasing part or all of the Illinois Tollway system to private investors. The estimated value of such a lease was presented at a public hearing Tuesday.
The state’s bipartisan legislative Commission on Government Forecasting and Accountability paid Credit Suisse investment banking firm $30,000 to analyze the value of the state tollway system and how the state could maximize that value.
Sen. Jeff Schoenberg, an Evanston Democrat and co-chairman of the commission, said last week that the decision to lease the tollway “should not be decided by a handful of investment bankers in Armani suits.”
That’s partially why Credit Suisse’s analysis, presented to the commission in Glen Ellyn, was broadcast live on the Internet Tuesday (I hope to create a link if the commission posts it on its Web site soon).
“Don’t think of it as Geraldo Rivera,” Schoenberg joked in the Capitol last week (at one of seven Senate committee hearings on public-private partnerships). “We have decided to weigh in on the side of greater transparency.”
The Credit Suisse estimate counts Illinois’ four toll highways — 274 miles’ worth — as well as the fiber optic network beneath it and the buildings on it.
But the estimate depends on many factors, some the state can control and some it cannot. One of the most volatile is the interest rate on borrowing by potential investors. “Time begins to matter here,” said Steve Doll, director of Credit Suisse. “If interest rates continue to rise, the value of the system could deteriorate with time.”
Other factors were not detailed in the estimate. Among them were possible labor agreements between the state and a private investor that could impact the investor’s confidence in the deal.
Interested companies might also come up with different numbers based on their own assumptions, such as how much traffic will increase over the next 75 years. Credit Suisse calculated that if traffic grows 1.5 percent annually, “the range of difference goes from a system value of $8.3 billion to $15.4 billion,” Doll said.
The potential value could also drastically change depending on the length of the agreement. Twenty-five years is too short for investors to realize a profit, while 75-year leases are more appealing to investors, Doll said.
In short, the tiniest change in any lease agreement could mean billions for the state.
Rep. Terry Parke, a Hoffman Estates Republican and co-chairman of the commission, said the numbers presented Tuesday sounded great, but they start to dwindle when the state considers requests from special interest groups.
Schoenberg got an earful a week ago from AFSCME Illinois Council 31, Business Leaders for Transportation in the Chicago area, the Mid-West Truckers Association, the Transportation for Illinois Coalition, and the Laborers International Union of North America Midwest Region. Each offered wish lists for safeguarding wages, benefits, retirement and training of current tollway employees. They also urged caution in deciding how the extra state revenue would be spent.
Schoenberg voiced his own wish list for any extra revenue. He said it should be set aside as a cushion for taxpayers if toll rates increase, with the rest spent on transportation and paying down the state’s unfunded pension liabilities for public employees.
But the governor and the General Assembly first have to decide whether leasing the tollway system would be good public policy for the people who drive on it. We could see as soon as this fall’s legislative session whether they’ll crack under pressure to get that big influx of cash before interest rates rise.
NOTE I’m officially back! We’ve taken a month-long blogging break. Summer has been busy, but fruitful.
The governor proposed to raise that cash by leasing part or all of the Illinois Tollway system to private investors. The estimated value of such a lease was presented at a public hearing Tuesday.
The state’s bipartisan legislative Commission on Government Forecasting and Accountability paid Credit Suisse investment banking firm $30,000 to analyze the value of the state tollway system and how the state could maximize that value.
Sen. Jeff Schoenberg, an Evanston Democrat and co-chairman of the commission, said last week that the decision to lease the tollway “should not be decided by a handful of investment bankers in Armani suits.”
That’s partially why Credit Suisse’s analysis, presented to the commission in Glen Ellyn, was broadcast live on the Internet Tuesday (I hope to create a link if the commission posts it on its Web site soon).
“Don’t think of it as Geraldo Rivera,” Schoenberg joked in the Capitol last week (at one of seven Senate committee hearings on public-private partnerships). “We have decided to weigh in on the side of greater transparency.”
The Credit Suisse estimate counts Illinois’ four toll highways — 274 miles’ worth — as well as the fiber optic network beneath it and the buildings on it.
But the estimate depends on many factors, some the state can control and some it cannot. One of the most volatile is the interest rate on borrowing by potential investors. “Time begins to matter here,” said Steve Doll, director of Credit Suisse. “If interest rates continue to rise, the value of the system could deteriorate with time.”
Other factors were not detailed in the estimate. Among them were possible labor agreements between the state and a private investor that could impact the investor’s confidence in the deal.
Interested companies might also come up with different numbers based on their own assumptions, such as how much traffic will increase over the next 75 years. Credit Suisse calculated that if traffic grows 1.5 percent annually, “the range of difference goes from a system value of $8.3 billion to $15.4 billion,” Doll said.
The potential value could also drastically change depending on the length of the agreement. Twenty-five years is too short for investors to realize a profit, while 75-year leases are more appealing to investors, Doll said.
In short, the tiniest change in any lease agreement could mean billions for the state.
Rep. Terry Parke, a Hoffman Estates Republican and co-chairman of the commission, said the numbers presented Tuesday sounded great, but they start to dwindle when the state considers requests from special interest groups.
Schoenberg got an earful a week ago from AFSCME Illinois Council 31, Business Leaders for Transportation in the Chicago area, the Mid-West Truckers Association, the Transportation for Illinois Coalition, and the Laborers International Union of North America Midwest Region. Each offered wish lists for safeguarding wages, benefits, retirement and training of current tollway employees. They also urged caution in deciding how the extra state revenue would be spent.
Schoenberg voiced his own wish list for any extra revenue. He said it should be set aside as a cushion for taxpayers if toll rates increase, with the rest spent on transportation and paying down the state’s unfunded pension liabilities for public employees.
But the governor and the General Assembly first have to decide whether leasing the tollway system would be good public policy for the people who drive on it. We could see as soon as this fall’s legislative session whether they’ll crack under pressure to get that big influx of cash before interest rates rise.
NOTE I’m officially back! We’ve taken a month-long blogging break. Summer has been busy, but fruitful.
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