THE iLLLINOIS OBSERVER has moved to a new Web site: http://www.illinoisobserver.net. After today, there will no longer be posts made to this site.

The new site provides us an opportunity to provide more news and provide it in a more organized format that is easier on the eyes. We’re sure you’ll like what you see.

However, the new site will not provide automatic e-mails of each new post to our current subscribers, though our subscribers will continue to receive by our newsletter “Late Night” via a separate e-mail.

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Sincerely,

David Ormsby

P.S. At the new site, you’ll find stories like these: Poll: Gov. Pat Quinn More Popular than Illinois Legislature or Poll: Rahm Emanuel Approval Rating Dips.

Emanuel is wrong.

Although the Mayor agreed to delay until Tuesday a vote on the plan to corral private investors to build public projects, he is unwilling to both answer all questions posed by aldermen or offer many concessions to those who want adjustments.

The aldermen want to strengthen oversight and transparency over the trust’s governing board.

They also say that the trust ordinance fails to extend the oversight authority of the inspector general’s office to the trust’s operations. Emanuel’s measure is unclear that compliance with city the ethics ordinance on conflicts of interest is required. Additionally, aldermen complain that the state is powerless to impose open meeting or public information law on the new entity.

Moreover, the city council’s project approval write extends only to city projects, but not to the projects of agencies such as the Chicago Public Schools, the Chicago Transportation Authority, the Chicago Park District, etc.

With all these shortcomings and deficiencies, the Mayor’s rush to trample the aldermen’s concerns and win rapid approval of his proposal risks undermining the institution’s integrity and the future projects for which the trust is designed to serve.

If the trust is worth doing, then it is worth doing right.

But the mayor is hell bent on getting his way–getting it fast and getting it without much aldermanic interference. When some project ultimately goes wrong, guess who will get stuck with the bill? Chicago taxpayers.

Rahm may rue this rush one day.

Preckwinkle:

“I am pleased that Governor Quinn has proposed a comprehensive first-step towards stabilizing our public employee pension systems.  This urgent issue affects all of Cook County and Illinois residents, so everyone has to be involved in the process going forward if there is going to be an effective and sustainable legislative solution.  I and other leaders of local and municipal government have already taken steps to address pension funding, so any solution to the current pension crisis must include both state and local pension funds.

“We have a collective obligation to come up with a solution. We must act quickly, collaboratively and decisively to put our pension system back on the right track.  I will continue deliberations with labor leaders and other stakeholders in the coming weeks to refine a proposal that addresses Cook County’s pension fund needs.”

Emanuel:

“I commend Governor Quinn for proposing a framework to address the retirement security crisis facing the State of Illinois. This is a strong beginning and he has outlined many good ideas regarding retirement security, including ideas that we both discussed at the recent Tribune Forum.

“I look forward to continuing to work with Governor Quinn and legislative leaders to ensure that the hardworking public employees who contribute to these funds and their families have a secure future with a reasonable retirement. We owe it taxpayers to fix this problem so they are not left footing the bill.”

“This plan rescues our pension system and allows public employees who have faithfully contributed to the system to continue to receive pension benefits,” said Quinn.

Illinois’ pension system is now under-funded by $83 billion. The fiscal year 2013 payment, $5.2 billion, now makes up 15% of general revenue fund spending compared to 6% a few years ago.

The Governor says his proposal provides for 100% funding for pension systems by 2042 and makes the following changes to the current Illinois pension plan:

• 3% increase in employee contributions

• Reduce COLA (cost of living adjustment) to lesser of 3% or ½ of CPI, simple interest

• Delay COLA to earlier of age 67 or 5 years after retirement

•  Increase retirement age to 67 (to be phased in over several years)

• Establish 30-year closed ARC (actuarially required contribution) funding schedule

• Public sector pensions limited to public sector employment

In consideration for the changes above, employee pay increases will continue to be counted in the calculation of their pension and employees will receive a subsidy for their health care in retirement. Currently 90% of retired state employees pay nothing for their healthcare costs.

States comparable to Illinois in size and demographics provide little to no assistance for retiree healthcare costs, according to Quinn.

The Governor’s plan also calls for phasing-in the responsibility for paying normal costs of pensions to each employer, including school districts, community colleges and public universities.

Quinn says his plan reflects the discussions of the working group.  Members of the pension working group include Sen. Mike Noland, Sen. Bill Brady, Rep. Elaine Nekritz, and Rep. Darlene Senger.

Cook County Commissioner Larry Suffredin

(Chicago) – April 19, 2012. Special Report: Cook County Commissioner Larry Suffredin (D-Evanston) on Tuesday won approval by a county board panel for a plan to create the Cook County Office of Tax Administration to coordinate the multi-layered county tax system.

According to Suffredin, the plan, which he sponsored as a county board resolution, calls on the various elected county officials whose offices manage some aspect of property tax processing to draft an “interoffice agreement” within 60 days on how to implement the new tax administration office and present their plan to the board.

The interoffice agreement would be among the County Treasurer, Clerk, Recorder of Deeds, Assessor, and now the State’s Attorney and would to streamline property tax services and provide a single point of entry for taxpayers.

The Cook County Intergovernmental Relations Committee approved the proposal on a 13-0 voice vote.

Suffredin said the launch of the county’s property tax Web site portal provide an impetus to the plan.

“I got the idea after the new county property tax Web site was created,” said Suffredin.

The commissioner added the idea also follows on an earlier legislative effort with then-commissioner Mike Quigley (D-Chicago) and State Senator John Cullerton (D-Chicago) in 2004-05 to seek a Cook County property tax streamlining solution in the Illinois General Assembly, but that initiative stalled.

Suffredin had pledged to introduce the tax administrator plan after a $1 million cost-savings initiative, pushed by fellow County Commissioner John Fritchey (D-Chicago), to merge the offices of Recorder of Deeds and Clerk failed by one vote, 9-8, in March 2012.

Suffredin voted against that measure. He argued that the December 5, 2016 implementation date made the plan “virtually irrelevant.”

County Assessor Joseph Berrios had a measured response to the Suffredin proposal.

“At this point, this is a resolution to bring the offices together to sit down and discuss the issue,” said Berrios. “This is a conversation that we will obviously be taking part in. Where it goes, though, remains to be seen.”

If the officials fail to draft an agreement, Suffredin said, “We would need to evaluate our next steps.” The commissioner noted that the board retains power over office-holder budgets.

In addition to Suffredin, commissioners John Daley, Bridget Gainer, Gregg Goslin, Tim Schneider, and Peter Silvestri also sponsored the resolution.

The full board is expected to adopt the measure at its May 1, 2012 meeting.

“We must act quickly to save the entire Medicaid system from collapse, and protect providers and the millions of Illinois residents that depend upon Medicaid for their healthcare,” Quinn said.

The Governor convened a working group – comprised of members from each of the four legislative caucuses – to explore all options to wring $2.7 billion out of the Medicaid system, but the group has yet to reach a full consensus.

Without waiting for the legislative consensus, the proposal that Quinn is pushing reduces Illinois’ Medicaid liability by $2.7 billion, with three-quarters of the plan comprised of cuts, reductions and efficiencies, one-eighth in state revenue, and one-eighth in federal matching funds.

The key elements of Quinn’s plan include:

• Cuts, reductions and efficiencies to 58 separate items totaling $1.35 billion (50 percent)

• Rate reduction to providers totaling $675 million – (25 percent)

• Additional revenue through a $1 per pack increase in the cigarette tax totaling $337.5 million (12.5 percent)

• 100 percent federal match funding from the increased cigarette tax totaling $337.5 million (12.5 percent)

By including a tobacco revenue increase, the state will be eligible for an additional 100 percent in federal matching funds, totaling $337.5 million per year, Quinn claims.

“The status quo is not an option, and I want to thank the members of the working group, who have worked diligently with us to find real solutions to this problem,” said Julie Hamos, Department of Healthcare and Family Services director.

Medicaid provides healthcare to 2.7 million people in Illinois and coverage for half of all births.

At the end of the current fiscal year (FY 2013), Illinois will have $1.9 billion in unpaid Medicaid bills. The Civic Federation projects $21 billion in unpaid Medicaid bills by 2017 if Illinois’ Medicaid system is not fundamentally restructured.

The Chicago City Council Finance Committee on Monday night ok'd Mayor Rahm Emanuel’s proposed infrastructure bank to fund city capital projects.

(Chicago, IL) – April 16, 2012. Usually candidates­–even victors–in tough primary fights end a campaign with an empty treasury. But not indicted State Rep. Derrick Smith (D-Chicago). Smith apparently made a profit.

On Monday, Smith reported that his successful primary campaign brought in $162,885 in cash and in-kind contributions between January 1 and March 31, but that he spent none of the contributed money.

Smith began the reporting period with $10,047 in the bank and received $94,021.05 in cash contributions and $68,864.49 in-kind contributions from mostly the House Democrats. Meanwhile he reported no expenditures, leaving $104,068.64 in the bank.

Smith was indicted by the U.S. Attorney Patrick Fitzgerald on March 13 for accepting a $7,000 bribe in a sting operation, one week before the election in which he won 77% of the vote.

In the days leading up to his arrest, Smith snagged on March 10 a $2,500 check from Elzie Higginbottom and Smith reported on March 13 a $1,500 contribution from Peoria Packing of the 1300 block of West Lake Street in Chicago. What timing.

At least Smith will have a few laughs on his contributors and perhaps some dough to pay his attorney.

He’ll need it–both the laughs and the attorney.

Walsh Winning Campaign Cash Contest – In the Illinois 8^th Congressional District general election contest, U.S. Rep. Joe Walsh (R-IL) starts with a fund-raising edge over Democratic rival Tammy Duckworth.

In the last quarter, Walsh raised $266,213 and has $607,150 cash on hand. Duckworth raised $670,145, but after her primary contest, she has only $259,974 cash on hand and nearly $100,000 in reported debt.

For the cycle Walsh has raised almost $1,250,000 and Duckworth hauled in $1,600,000, of which 90.6% of individuals gave $100 or less to the ex-Iraqi war veteran.

The vulnerable Tea Party favorite represents a high-priority target seat for the Democrats, and Duckworth will have no problem raising plenty of cash. This may be the last cash lead of which Walsh can boast.

Mayor Richard Daley may no longer be in City Hall, but his legacy continues to bloom outside the building.

Sticky Buns for $100 – Thankfully, avoiding the typical Springfield Monday cash and dash round of fundraisers, State Senator Terry Link (D-Vernon Hills) had a civilized fund-raising breakfast in Chicago on early Monday morning at the Ann Sather’s restaurant, which is famous for its sticky, over-warmed, drooling-good cinnamon buns.

Hosting the event were Senate President John Cullerton (D-Chicago), 44^th Ward Alderman Tom Tunney, State Senator Heather Steans (D-Chicago) ex-State Senator Carol Ronen (D-Chicago), Illinois Human Rights Department Director Rocco Clapps, and human rights activist Michael Bauer.

Tax Day Follies – The Chicago area’s three Democratic Congressional Candidates who are challenging GOP incumbents, Tammy Duckworth, Brad Schneider, and Bill Foster, held a news conference at the Fort Dearborn Post Office on Tax Day to call for the “Buffett Rule” tax plan. Polling reveals that 60% of Americans support the idea, a proposal that rejiggers the tax system so middle class families don’t pay a higher tax rate than millionaires and gazillionaires, like its namesake, Warren Buffett.

Duckworth, Schneider, and Foster also held a joint press conference shortly after their March 20 primary victories. Expect to see more of them together. Not a bad media shtick as long as they don’t overdo it.

Smile Commissioners, You’re Live –Through an initiative of the Cook County Board President Toni Preckwinkle, the Cook County Board meeting on Tuesday, April 17, 2012 @ 10:00 a.m. will be the first streamed live on the County’s website. Going forward, all County board proceedings will be streamed live and maintained in a media archive.

Had this existed during the turbulent Todd Stroger years, this would have been must watch TV.

Next Redistricting Fight: Cook County Board – Cook County Commissioner Larry Suffredin is hosting a hearing of the Cook County Board of Commissioners’ Census Redistricting Committee at Oakton Community College on Tuesday, April 24, 2012, beginning at 6:00 p.m.

Next Victory Looming? – Chicagoan Lauren Peters has steered the candidacy of Chicago Alderman James Cappleman (D-46^th) and State Rep. Kelly Cassidy (D-Chicago) to victory in the past 18 months. Now she is headed to Wisconsin to become Deputy Field Director of Congresswoman Tammy Baldwin‘s U.S. Senate campaign. Peters, who held a farewell party at the Andersonville restaurant Hamburger Mary’s last week said she’d be back in 7 months… Hat tip, Patrick Boylan, Editor, Welles Park Bulldog.

Don’t Quote Me – Rumor and gossip that’s not quite fit to print, but, what the heck, we’re including it anyway as a public service because we’re sure you’ll find it as titillating as we do… Two Down – On the heels of the abrupt resignation of Illinois Department of Human Services Assistant Secretary Grace Hou in January, the department’s general counsel, Mary Sullivan, has reportedly handed in her resignation, punching another hole in the department’s leadership… Tenaska Tied Down? – The Omaha, Neb.-based firm is pushing Illinois House lawmakers hard to follow the Illinois Senate’s lead to require Illinois utilities to purchase its electricity for the next 30 years, but the measure might find itself bogged down by the convoluted politics of the Illinois budget drama. What isn’t tied up by the budget?

Incoming Advocate Fire – Propelled by Chicago’s largest mental health service provider, Thresholds, last Wednesday, April 11, more than 700 people rallied at the James R. Thompson Center in Chicago to protest Governor Pat Quinn’s proposed $54 million budget cut in mental health services. Threshold’s new C.E.O., Mark Ishaug, is also ginning up supporters to bombard lawmakers with budget-relief pleas in the coming days. Down to the bunkers.

Say What? – Chicago City Clerk Susana Mendoza will have some things to say to the folks at the Chicago Area Public Affairs Group luncheon at the Union League Club on Friday, April 20, starting at 11:30 a.m. Mendoza is a pistol. It’ll be worth the $30.

What Were They Thinking? – Mitt Romney is getting 47% of national registered voters and Illinois’ Favorite Son Barack Obama, 45%, in the inaugural Gallup Daily tracking results from April 11-15. Both Obama and Romney are supported by 90% of their respective partisans.

Media Watch – According to Crain’s Greg Hinz, by an 11-7 margin, the City Council Finance Committee Monday evening approved Mayor Rahm Emanuel’s proposed infrastructure bank to fund city capital projects. The full council will likely approve the plan on Wednesday… The Chicago Tribune’s Bob Goldsborough reports that David Axelrod, President Barack Obama‘s 2012 campaign strategist, last month purchased a 4-bedroom, 4 ½ bath, 3,200 square foot condo for $1.7 million at a high-rise Michigan Avenue building.

Tomorrow’s News? – Chicago Magazine’s David Bernstein is working on a story targeting Jay Doherty & Associates… The Chicago Tribune’s Hal Dardick is aiming at  former Chicago Alderman, including Bobby Rush, Miguel Santiago, Patrick Huels and others… Andy Shaw’s Better Government Association is looking at the tenure of ex-Chicago Business & Consumer Affairs Commissioner Norma Reyes.

What’s a Work Day? – Take That, Fella – On Tuesday, in an effort to steal some thunder from Wisconsin Governor Scott Walker’s speech in Springfield, Governor Quinn will announce a major international corporation is moving its U.S. headquarters to Illinois instead of the cheese head state. Quinn will be at the Embassy Suites, Salon E, in Rosemont at 11:15 a.m… Biz Newz Part II – Mayor Emanuel will make a small business announcement at the Logan Square Kitchen, 2333 N. Milwaukee Avenue, at 11:00 a.m… Biz Newz Part III – As part of the county’s Earth Week events, County Board President Preckwinkle will recognize several local businesses at a County Building press conference, 5^th floor, at 9:30 a.m…

Cook County Commissioner John Fritchey

(Chicago) – April 14, 2012. Special Report: The fate of a plan by Democratic Cook County Commissioner Larry Suffredin of Evanston to streamline the county property tax system may be in doubt as another key Democratic commissioner is for now withholding support.

Commissioner John Fritchey (D-Chicago), who saw his own $1 million cost-savings plan to merge the offices of Recorder of Deeds and Clerk fall at the county board by one vote in March, acknowledges that county government needs more “efficiency” but is refusing to commit to Suffredin’s approach–for now.

“I think it’s axiomatic that we need to seek out efficiencies wherever we can find them, inter- or intraoffice,” said Fritchey. “I’m unsure as to how I’m going to vote for it…”

Suffredin is pushing a measure to create an Office of Tax Administration to corral and coordinate all of the county’s property tax services under one roof. Currently, the County Treasurer, Clerk, Recorder of Deeds, and Assessor each have independent chunks of responsibility.

The Suffredin plan, which will be heard in the county’s Intergovernmental Affairs Committee on Tuesday, would order the various elected officials to sit down and to attempt to draft an interoffice agreement within 60 days on the outlines of a new tax system coordination body.

The first term commissioner’s reluctance to commit to Suffredin’s plan is likely linked to Suffredin’s deciding vote against Fritchey’s own initiative in March.

“The failure of the clerk/recorder merger was a clear victory of patronage protection over policy,” said Fritchey.

Ouch.

“Unless Suffredin can persuade Fritchey to get on board, his tax office idea may be doomed,” said a Cook County political observer. “Fritchey is a master of the media, if he trashes the Suffredin plan publicly that could be enough to sink it.”

Nevertheless, Fritchey is currently keeping his gun powder dry and his door open on Suffredin’s proposal.

“I’m still looking at some aspects of it and want to hear the debate,” said Fritchey.

Property tax administration reform in Cook County has exposed a political fissure within the progressive, Democratic ranks on the county board, a fissure that could derail other policy initiatives to overhaul Cook County’s creaky government structure if left to fester.

The county’s most powerful progressive, Board President Toni Preckwinkle, would be well advised to address an apparent rift on the board among her natural allies–and soon.

(Chicago) – A former Illinois Republican congressional candidate on Monday filed a lawsuit in federal district court claiming the Chicago Board of Trade has locked fire exit doors. (Photo: April 12, 2012)

(Chicago, IL) – April 13, 2012. Special Report: On Friday the 13^th a federal judge decapitated a lawsuit filed by a former Illinois GOP congressional candidate against the CME Group seeking the court to order the Chicago Fire Department to be stationed at every Chicago Board of Trade emergency exit due to the alleged existence of “locked doors” where fire exit signs are posted.

Lake Forest resident Paul Hamann, who had unsuccessfully sought the Republican nomination for the Illinois 10^th congressional district in 2010, filed an emergency motion in federal district court in Chicago on Monday, April 9, asking for both fire department officials to be assigned 24-hours per day, 7-days per week at the Board of Trade and for himself to have similar privileged access to the building for same purpose.

In an interview on Wednesday evening, Hamann, 52, who lives with his mother, alleged that the Board of Trade has had “illuminated fire exit” signs posted above locked doors for past 15 years. He said that he once held a seat a on the Mid-America Exchange 15 years ago and that is when he says he noticed the alleged problem.

Hamann regularly continues to access the building to visit his brokerage house, and he insists the “locked fire exit door” problem persists, he says.

A spokesperson for the CME Group, Laurie Bischel, dismissed Hamann’s claim.

“CME Group does not comment on litigation, but I can tell you that we comply with the fire code in all of our offices,” Bischel said.

When asked why brought the suit, Hamann, who is retired, said neither the CME Group administration nor the Chicago Fire Department have been responsive to his petitions.

“More than three-years ago the Chicago Fire Department indicated that they were no longer interested in the pursuing the issue,” said Hamann.

This complaint is not Hamann’s only recent legal scrape with the CME Group. Hamann has also filed three suits relating to the CME Group in New York federal district court over Ex-New Jersey Governor John Corzine’s MF Global collapse.

Hamman, who was gathering petition signatures for a second run for the 10^th congressional seat, claims that he lost $500,000 in the financial giant’s meltdown, and he portions out blame to CME for their role in the case.

The New York federal judge has thrown out each of Hamann’s motions, according to the ex-candidate, who has acted as his own attorney in his legal maneuverings, though he acknowledges that he is not an attorney and has relied on his own legal opinion in these cases.

Nevertheless, Hamann, who won 1,078 votes or 1% of the total and raised $9 for the 2010 campaign, remains undaunted. He intends to run for the 10^th C.D. seat again in 2014.

Why?

“I’m retired. I have all the time in the world,” Hamann said.

Send comments to David Ormsby at davidormsby@davidormsby.com.