AFSCME Local 3549, Jacksonville Correctional Center
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AFSCME issues "fact sheet" on prison
Pontiac Daily Leader on June 12, 2004
AFSCME Council 31, which represents employees of Pontiac Correctional Center, today issued a "Legislative Fact Sheet" on why PCC should be kept open.
The Illinois Senate on May 31 approved a Democratic Party-controlled budget which included funding for Pontiac Correctional Center only through December and then funding for the remainder of the fiscal year for Thomson Correctional Center.
This budget has not been approved by the Illinois House. This budget if approved would mean that PCC would be closed by the end of the year.
"This closure would undermine the safety of prison staff and inmates, and jeopardize important corrections programs. And while some in the Governor's administration claim it would save money, those savings -- which are dubious at best -- would come at too high a cost to DOC and Livingston County," according to AFSCME.
PCC is a maximum-security prison with the primary function of housing DOC's disciplinary segregation population -- inmates whose violent or anti-social behavior requires that they be kept segregated from other prisoners, the union's statement said.
The fact sheet also made the following statements:
In 1996, in an effort to control the increasing violence in the prison system, Pontiac was converted to handle the most aggressive prisoners. Beds, toilets and sinks in segregation cells were embedded in concrete and cell bars were replaced with perforated steel panels. Food hatches were constructed that eliminate the throwing of food or other projectiles. Catwalks were rebuilt to make them fully encased and to provide sight lines to galleries with no blind spots. These changes have decreased assaults by 60 percent, according to AFSCME.
"Thomson was not designated to handle these violent inmates. Upgrading the facility to the Pontiac standard would require significant additional time and expense," states the fact sheet.
AFSCME also addressed the issue of double-celling maximum-security inmates.
"Most states do not double-cell maximum security inmates -- it is a violation of American Correctional Association accreditation standards to do so, Yet at Pontiac, a facility that is supposedly focused on segregation, fully 37 percent of inmates are double- or multi-celled -- most of them inmates in protective custody," according to AFSCME.
Pontiac is one of only three maximum-security facilities remaining in Illinois after the closing of Joliet Correctional Center in 2002. AFSCME said that double-celling is much worse at Illinois' other two maximum-security prisons. At Stateville 87 percent of inmates are double- or multi-celled and 88 percent are double-celled at Menard.
"Double-celling impacts safety. There were inmate deaths in the last nine months in DOC facilities -- as many as in the previous five years. Three were in maximum facilities and were directly liked to double-celling. The solution is not to replace PCC by opening Thomson, but to open Thomson and reduce the double-celling," AFSCME said.
The AFSCME-released information also details budgetary concerns and voices concerns about what would happen to Pontiac's 94-bed mental health unit and if Thomson could be configured in less than six months to take that unit as well as the condemned unit and the orientation unit.

Governor: AFSCME contract will save money
Blagojevich admits junk food tax is under discussion
By DOUG FINKE
STATE CAPITOL BUREAU
12 June 2004
Gov. Rod Blagojevich insisted Friday that the state will save money from a new contract with union employees, even though it awards double-digit raises over four years.
The governor also acknowledged that a so-called junk food tax is back on the budget bargaining table. This time, he did not flatly say he'd veto it.
A day after the state and its largest union - the American Federation of State, County and Municipal Employees Council 31 - reached agreement on a contract, Blagojevich refused to discuss details of the pact, while calling it a good deal for everyone.
"I think you'll find it's an agreement that not only is fair to the men and women who work in state government, but one that is very careful and sensitive with the taxpayers' money," he said. "The state will save money overall over the course of several years."
Legislative sources in contact with union members said the deal includes raises totaling 17 percent over the next four years. However, union employees will have to contribute 4 percent of their salaries to their pensions, reducing the total increase to 13 percent. The state began making the 4 percent pension contribution in lieu of a pay raise in 1991.
Sources said the employees will get a raise of at least 5 percent beginning July 1 but will also start paying 2 percent of their salaries to the pensions. On Jan. 1, the state will take another 2 percent out of checks for pensions, meaning employees will still end up with a net pay raise during a year that the state faces at least a $2.3 billion budget deficit.
The remaining pay raises will be spread out over the final three years of the contract, with the largest increases coming in the later years.
In addition to making pension contributions, employees will have to pay more for health-care and prescription-drug benefits.
Even legislative leaders who met with Blagojevich Friday weren't told how the contract will affect spending in the fiscal year that begins July 1.
"He (Blagojevich) didn't seem to have much detail about it," said Senate Republican Leader Frank Watson of Greenville. "I don't know what the net amount is."
"They were unable to describe what the cost of the AFSCME contract would be," said Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago. "They (the leaders) asked about the cost, but the administration was unable to provide it."
The administration has said that a 4 percent pension contribution from the 37,000 AFSCME members is worth about $60 million. Each 1 percent increase in salary for those workers costs the state about $15 million.
Asked how much the contract will save the state, Blagojevich said, "Ask me next week."
AFSCME members are in the process of ratifying the contract, which could take two weeks.
Blagojevich and the four legislative leaders met for more than two hours Friday and reported progress in negotiating a fiscal 2005 budget but said much work remains.
"There's some real contentious issues out there still," Watson said. "I think we are still a long way from a decision. The whole issue of spending has not even been addressed."
Instead, talks have focused on revenue hikes needed to balance any budget, including a sales tax on junk food and non-carbonated soft drinks. Two weeks ago, Blagojevich said he would veto any bill that extends the sales tax to beverages such as iced tea and fruit drinks. He did not repeat that pledge Friday, but he did not embrace the tax idea, either.
"It's being discussed. I'm unenthusiastic about it," Blagojevich said.
It's estimated the tax could raise $100 million.
Blagojevich said he had no plans to call lawmakers back into special session to deal with the budget. After the General Assembly missed the May 31 constitutional deadline to pass a budget, the leaders sent rank-and-file members home.
"As long as we are making progress in these discussions I don't see a need for (a special session)," the governor said. "If we get a sense that there isn't good faith going on, that this is about running out the clock and playing games and playing politics, then at the appropriate time I will make that adjustment."
Another negotiating session won't be held until Wednesday. That's the day Madigan plans to have the five House appropriations committees start hearings on how much money is needed to keep basic state services in place after July 1.
"We want to make sure there is no disruption of services in the new fiscal year," Brown said.
Madigan, meanwhile, is responding to Blagojevich's attacks that Madigan and the House are not acting responsibly in the budget debate. Blagojevich has said the overtime session is the result of the House not approving a spending plan he endorsed and that an austerity budget promoted by Madigan will shortchange education and health care.
Madigan sent letters to several newspapers, including The State Journal-Register, saying Blagojevich wants to increase spending by $750 million "without offering a realistic plan by which to pay for it."
"To browbeat lawmakers into signing off on his spendthrift proposal, the governor has elected to cast those who believe that state government must live within its means as the enemies of children and the sick," Madigan wrote.
 

AFSCME, state make a deal
Union members will vote on 4-year contract
By DOUG FINKE
STATE CAPITOL BUREAU
11 June 2004
Illinois' largest state-employee union reached tentative agreement with Gov. Rod Blagojevich's administration on a new four-year contract Thursday, heading off the possibility of a crippling strike this summer.
Neither the American Federation of State, County and Municipal Employees Council 31 nor the administration would disclose details of the contract until union members have had a chance to ratify it. However, both sides said the agreement is fair to the 37,000 state workers it covers and is financially responsible for a state facing at least a $2.3 billion budget deficit.
"To the extent the state can afford anything, they can afford this," said AFSCME executive director Henry Bayer. "It would be hard to point at the state contract and say that's where the (budget) problem lies."
"We think the members will be very happy with the contract," Bayer added.
Blagojevich issued a written statement calling the tentative agreement "both fair to state workers and responsible given the state's financial difficulties. We believe the agreement represents progress for union members and the state..."
The tentative contract does not rule out the possibility that layoffs could occur as part of a budget compromise for the fiscal year that begins July 1.
"There are no guarantees against layoffs," Bayer said. "There is still the threat of facilities being closed. We hope the (budget negotiators) will not allow that to happen."
"Layoffs and the contract agreement have nothing to do with each other," said Blagojevich spokeswoman Rebecca Rausch, adding that the administration continues to have no plans to lay off employees.
The often-contentious contract negotiations stretched for months. The administration not only wanted to keep pay raises to a minimum, negotiators wanted state workers to resume contributing 4 percent of their salaries to their pensions. The state assumed those pension payments in 1991 in lieu of a pay raise during another budget crisis.
The current four-year contract, which expires June 30, granted pay raises that compounded are worth 19.3 percent. That includes both cost-of-living and longevity increases.
The tentative agreement was reached about 6 a.m. Thursday after an all-night negotiating session in Peoria.
Bayer said the pace of negotiations picked up about two weeks ago, about the time thousands of state workers held a rally in Springfield to protest their treatment at the hands of the Blagojevich administration. Employees are bitter about layoffs, facility closures and the administration's hard line on contract negotiations.
"It could have been coincidental, but it couldn't have been lost on the administration that our members very much wanted to get the contract settled," Bayer said.
Contract summaries are being prepared and will be distributed to all 85 AFSCME locals. Union representatives will review the contract details with rank-and-file members in the next few days, prior to the membership voting on the pact. Bayer said voting will be completed in a couple of weeks.
The 250-member bargaining committee unanimously recommended the contract, a first for the union, Bayer said. Rank-and-file AFSCME members have never rejected a contract recommended by the bargaining committee.
 

VANDALIA PRISON STILL UNDER DEBATE, BUT DOC PREPARES FOR CLOSURE
BY MATT ADRIAN
FOR THE SOUTHERN
[Thu Jun 10 2004]
SPRINGFIELD -- Vandalia Correctional Center will remain open until the current budget dispute is settled, but the Illinois Department of Corrections is continuing to prepare for the prison's possible closure.
"It is not in the '05 budget and until something definitive happens that's the path we're proceeding down," said Sergio Molina, a DOC spokesman.
Gov. Rod Blagojevich cut the minimum-security prison from his proposed fiscal 2005 budget stating that Illinois needed to make better use of newer facilities. He said the closing Vandalia would save money and help bridge a $2.3 billion deficit. He has since put Pontiac Correctional Center on the chopping block too.
In March, the governor's office sent a letter to city of Vandalia mayor Ricky Gottman stating the administration planned to keep the prison running normally.
"It is the Administration's intent to not begin transferring inmates out of the Vandalia Facility until a final decision has been made regarding the closure," wrote Deputy Chief of Staff Julie Curry. "It is also not our intent to stop the intake of prisoners in the facility."
However, Molina confirmed Thursday that DOC has stopped sending new prisoners to VCC in preparation for a possible closure.
Gottman said the decision is a breach of the agreement made by the governor's office.
"He said there would be no change in day-to-day operations," Gottman said. "No increase in the number of inmates that is a change in day-to-day operations. His office has broken their promise."
 

Illinois workers picket across state for contract
Pressure to cut pay, union says
By Stephen Franklin
Tribune staff reporter
May 18, 2004
To show their displeasure with five-month-old contract talks, hundreds of state employees briefly picketed Monday at state facilities across Illinois.
About 37,000 state workers belong to Council 31 of the American Federation of State, County and Municipal Employees (AFSCME), which has been bargaining for a new contract to replace one that expires June 30.
"We are seeing significant pressure from the current administration to effectively reduce employees' pay," said Anders Lindal, a union spokesman in Chicago.
The state, according to Lindal, is asking for an increase in the workers' share of healthcare coverage costs. It also wants to stop paying the workers' share of pension costs, he said.
Under a contract signed in 1991, the union accepted a wage freeze in the first year of the three-year deal, and in exchange, the state agreed to shoulder the cost of the workers' annual contributions toward pension plans, according to union officials. These payments are 4 to 5.5 percent of workers' annual salaries.
In the last contract signed in 2000, workers received a 15 percent pay increase over the four years of the agreement.
State officials said they would not comment on the talks while negotiations are under way. But Becky Carroll, a spokeswoman for the governor's Office of Management and Budget, said that "the budget is designed to instill fiscal discipline in very tough times."
The union's rank and file among state employees has shrunk by about 15 percent since 1991, and much of the decline is linked to job cutbacks and retirements. The average salary for the union's state employees is $41,800 a year, union officials said.

Budget chief assails Ryan-era retirement plan
By Kevin McDermott 
Wednesday, May. 05 2004
SPRINGFIELD, Ill. - In a showdown between politics past and present, Gov. Rod
Blagojevich's budget director alleged Wednesday that former Gov. George Ryan's
administration had misled legislators into approving an early retirement
program that could cost $310 million more than expected this year.
The budget director, John Filan, called for a special investigation.
A former Ryan administration official denied the allegation and
suggested that Blagojevich was looking for others to blame because his
administration's budget plan was "falling apart."
At a news conference in Springfield, Filan announced that state-hired actuaries
late last week got to the bottom of a nagging discrepancy in the state's
pension system. He said the experts had confirmed that an early retirement
program approved under Ryan would cost $2.5 billion over 10 years, instead of
the $622 million that was estimated when the Legislature approved it in 2002.
For the next fiscal year, that could translate into a $380 million state
payment to the state's pension systems - instead of the $70 million that had
been anticipated.
"We are confident (that) members of the General Assembly were misled, plain and
simple," Filan said. "If ever there was a poster child for fiscal mismanagement
... this is it."
That program - which encouraged 11,000 state employees to retire early in an
attempt to trim the state payroll - quadrupled its original estimated cost
largely because more people signed on than the Ryan administration publicly had
predicted, Filan said. He also blamed changes in the program that were made
after the original plan was put forward and hundreds of millions of dollars in
what he said were errors in putting the plan together.
Filan called on the state comptroller's office and the Illinois Economic and
Fiscal Commission to investigate why it happened and how it can be avoided in
the future.
"Two billion dollars (off on the cost estimate) doesn't 'just happen,'" Filan
said. "... What we're asking is, what happened, and why?"
When asked whether he believed there was criminal wrongdoing involved, Filan
replied: "I have no idea."
Stephen Schnorf, who was state budget director under Ryan, responded that it
was "an insult" to allege there was any intentional misleading involved in the
approval of the early retirement program. "The numbers we came up with were our
very best estimate," Schnorf said. "There was never any attempt to mislead the
General Assembly."
Schnorf suggested Blagojevich's people were trying to avoid blame because "the
budget he's proposed (this year) is falling apart" at the hands of skeptical
legislators. He acknowledged that the early retirement program ended up costing
more than expected, but said the Blagojevich administration's numbers on the
issue are so "shockingly far apart" from the original estimates that the new
numbers may be suspect.
"Could we have been that far off? ... We could have been off maybe 25 percent
... but 300 percent? There's something that doesn't add up," Schnorf said.
Schnorf also noted the state's current budget crisis would be worse if not for
the early retirement program. "Ask John if he'd rather have the 11,000
employees back," Schnorf said.
Ryan, a Republican, was governor between 1999 and 2003. Blagojevich, a
Democrat, took office in January 2003.
In the fiscal year that starts July 1, the state faces a budget shortfall
estimated at $1.7 billion and blamed largely on the stagnant economy.
Blagojevich's plan for dealing with that shortfall has included business taxes
that are unpopular with many legislators.
 


 Health Alliance given reprieve
State workers' insurance will be rebid

By MARY MASSINGALE
STATE CAPITOL BUREAU

3 May 2004

The contracts for state employees' group health insurance will be rebid, after a week of protests of the proposed July 1 dropping of the Health Alliance insurance company.

Michael Rumman, director of the state Department of Central Management Services, refused to say the initial contract-bidding process was flawed, as some critics have contended. However, he said Monday that "a lack of confidence in the process" had persuaded him to start over with the bidding.

"For an issue this important and a contract award this significant, we need the process of selecting vendors to be perceived by all as open, transparent and fair," Rumman said at a Statehouse news conference.

About 300 Health Alliance enrollees rallied in front of the Capitol before Rumman's announcement, urging CMS officials to keep the Urbana-based health insurance provider as a choice for state government workers and retirees.

All current health-care benefits will remain intact while the state rebids the $600 million, five-year contracts, which is expected to take anywhere from 60 days to six months. Beneficiaries will have their annual benefits choice period from late May to mid-June based on current vendors.

When the new contract-bidding process is finished and winners are selected, beneficiaries will have another time period in which to choose their health plan.

However, the state's switch from VSP to Spectera for vision-care needs remains on track for July 1.

Under the original, competitively bid contract awards, Health Alliance - which covers 90,000 state workers and retirees in downstate Illinois - was to be dropped July 1, along with OSF Health Plans and Unicare. UnitedHealthcare and John Deere Health were to be two new managed-care plans that would be offered with existing PersonalCare, HealthLink and HMO Illinois. The state's indemnity plan, Quality Care, also will continue to be offered.

However, Health Alliance, OSF Health Plans and Unicare protested the bidding process that led to the contract awards, saying the state had relied on inaccurate savings projections. The three companies also claim no questions were asked about their provider discounts - a key element in the state's proposed switch from fully insured managed-care plans to self-insured managed care.

Fully insured plans call for the state to pay premiums, and the company pays for any excess claims. Self-insured plans call for the state to pay no premiums but pay for the cost of all claims.

While speaking before the House State Government Administration Committee, Rumman said the state's proposed move toward self-insurance is simply following the private-sector trend, noting that 92 percent of all businesses with at least 20,000 employees use self-insurance because it is more cost-effective.

"We have needed to catch up to the times for a very, very long time," said Rumman.

Any movement to a self-insurance system must be approved by the Illinois Economic and Fiscal Commission, a bipartisan panel of House and Senate members. The same panel also reviews all contracts for state workers' group health insurance, although Rumman disagreed with the argument that its approval is needed.

Jeffrey Ingrum of Health Alliance said most large, private businesses have financial reserves to dig into when claim costs run higher than projected. The state develops a budget each year, Ingrum said, and could run short of cash if claim costs overshoot projections.

"That's my concern - if they run out of money, that will affect payments and claims to providers," said Ingrum, who serves as chief executive officer of Health Alliance. "And they don't have huge financial reserves to dig into."

A Republican lawmaker on Monday also questioned the "political machinations" behind the awarding of the five winning contracts.

McKinsey & Co. has a one-year, $14 million consulting contract to assess all procurements made by the state, and Rep. Bill Black of Danville hinted that David Wilhelm was somehow involved in the contract award to UnitedHealthcare by speculating about "a very prominent member early on of this administration and the Bill Clinton administration."

Wilhelm is a high-profile political strategist and former Democratic National Committee chairman who managed Clinton's 1992 presidential campaign. Wilhelm also is helping Gov. Rod Blagojevich create a new political committee to support legislative candidates.

Rumman later denied any involvement with either Wilhelm or UnitedHealthcare. A spokeswoman for Wilhelm & Conlon Public Strategies - the consulting group that Wilhelm founded but recently left - also denied any connection with UnitedHealthcare or its lobbyist, longtime Springfield Republican Bob Kjellander.

"We don't have a relationship with Kjellander or Springfield Consulting Group," said Heath

State workers' health plans under scrutiny
Dropping three companies sparks criticism

By MARY MASSINGALE
STATE CAPITOL BUREAU

28 April 2004

An Urbana lawmaker has requested a special legislative hearing to scrutinize the process used to award state health insurance contracts that eliminated Health Alliance and two other current insurance plans from the choices offered state workers as of July 1.

The contract changes are in part the fallout of the state's decision to become largely self-insured in terms of health insurance offered to 350,000 state workers, retirees and others. The new system should be more cost-effective, according to Paul Sollitto, a deputy director of Central Management Services.

However, executives from the dropped health insurance plans say the new system seems to be designed to generate savings by stretching out payments to clinics and hospitals.

In addition, they said the state appears to have used inaccurate estimates of health costs in the contract process, further endangering the state's already precarious fiscal condition.

"We want to have this hearing so that we can get all of this out in the open and find out what went wrong to get it overturned," said Rep. Naomi Jakobsson, D-Urbana. Health Alliance is based in her legislative district.

Health Alliance, which currently covers 90,000 state workers, retirees and others in downstate Illinois, is one of three state health insurance plans that will not be offered as of July. The others being dropped on July 1 are OSF Health Plans and Unicare.

The changes are due in part to the state's decision to convert its employee group health insurance from mostly fully insured managed-care to self-insured managed-care. Managed-care plans restrict an enrollee to a designated network of doctors, clinics and hospitals. Those plans currently include Health Alliance, OSF Health Plans,Unicare, PersonalCare, HealthLink and HMO Illinois.

Fully insured managed-care plans call for the state to pay companies a premium for future medical costs of enrollees. The insurance company pays any costs beyond the premiums, so the company assumes the risk of any health cost overruns.

Self-insured managed-care plans call for the state to pay no premiums but to pay for all claims, thereby assuming all of the financial risk. The state also pays the insurance companies an administrative fee to process claims.

Of the six managed-care plans listed above, HealthLink already is self-insured managed care.

"Is that the best approach for a financially struggling state?" asked Jeffrey Ingrum, chief executive officer for Urbana-based Health Alliance.

Yes, according to an official with Central Management Services, the state's personnel agency.

"Insurance is an actuarial game," Sollitto said. "The larger the pool of beneficiaries, the smaller the overall cost. The fact that we have such a large base, the risk is minimal" that the state would overshoot its projected costs.

However, others note that under fully insured managed-care plans, payment to doctors, clinics and other providers is required within a certain time. Payment cycles are more lax under self-insured managed-care plans because the health insurance companies only pay the claims at the state's direction, creating a possible cash-flow advantage for the state.

"That may be a possible motivation," said Mark Kuhn, an assistant administrator at Springfield Clinic.

But Sollitto said the state has a timely payment cycle with its own self-insured indemnity plan, Quality Care.

An indemnity plan differs from a managed-care plan in that it charges higher premiums but allows enrollees to pick any doctor and pay usually 20 percent of costs.

Sollitto acknowledged that payment cycles last year for Quality Care were running about 116 days after claims were filed, but he said they have now been chiseled down to about 28 days.

But Ingrum and others questioned how accurate the state's cost projections are for the new self-insured managed-care plans that will go into effect July 1. Health Alliance, OSF Health Plans and Unicare were not awarded contracts, while UnitedHealthcare and John Deere Health will join the other three existing managed-care insurance companies.

Health Alliance and OSF Health Plans have filed protests with CMS over the contract awards, charging that the contract proposals asked only for a per-enrollee monthly cost estimate. But CMS failed to provide any claims data for the cost estimates, Ingrum said, leaving each bidding company to come up with its own.

Jeff Koch with Peoria-based OSF Health Plans said he questions the accuracy of the cost-estimate comparisons.

"We're really asking for information on how they made the decision," Koch said. "We're just as confused as everyone else."

Union officials and lawmakers also share that confusion. The state's three-year contract with 37,000 members of the American Federation of State, County and Municipal Employees expires June 30, and the loss of Health Alliance may become an issue.

"We are concerned about the potential disruption in health care service to our members," said Anders Lindall, a spokesman for AFSCME Council 31. "It's possible that this change may be subject to negotiations."

House Speaker Michael Madigan, D-Chicago, has assigned the issue to the State Government Administration Committee, which will meet at 2 p.m. Monday.


Mary Massingale can be reached at 782-6882 or mary.massingale@sj-r.com.


 
 

Ex-Shawnee warden is slain in Kosovo
  By H. Gregory Meyer, Tribune staff reporter. The Associated Press contributed to this report
April 21, 2004
The former warden of Shawnee Correctional Center in southern Illinois was among the two American guards killed by a fellow United Nations policeman from Jordan in a shooting Saturday outside a Kosovo prison, officials said.
Kim Bigley, 47, of Paducah, Ky., had run the Downstate men's prison from January until October 2003, when she was fired by Gov. Rod Blagojevich's administration, state corrections officials said.
She and the other American who was killed, Lynn Williams, 48 of Elmont, N.Y., were employees of DynCorp International, a unit of El Segundo, Calif.-based Computer Sciences Corp., which contracts with the State Department to provide police officers in Kosovo, company officials said.
The Jordanian officer opened fire on their group as it left a training session at the prison. He was killed after a 10-minute shootout.
Bigley began her 19-year career with the Illinois Corrections Department as a jail guard in the Jacksonville Correctional Center in 1984, said Dede Short, a department spokeswoman. Bigley became Shawnee's warden in January 2003.
After she was fired last fall, she and several other former Illinois corrections employees filed federal lawsuits against Blagojevich. Bigley alleged she was unfairly yanked for her Republican affiliations and for speaking out on policy issues.
"Since that time, she's been looking for work locally but was unable to find work, so her only option was to accept a position with the private company going to Kosovo," said Scott Schimanski, the Joliet-based attorney who filed the suit on her behalf.
Sergio Molina, a Corrections Department spokesman, said that wardens serve at the pleasure of the governor and his corrections chief and may be relieved of their duties at will.
 

Ryan pal pleads guilty to perjury
The Associated Press
April 21, 2004, 3:32 PM CDT
A former state senator admitted Wednesday that he collected a $60,000 lobbying fee despite doing virtually no work for a year on a job he got through former Gov. George Ryan.
Arthur "Ron'' Swanson, 77, a former Republican state senator from suburban Homer Glen, pleaded guilty to lying to a federal grand jury.
Swanson admitted he falsely claimed that a law firm lobbying for the $800 million expansion of Chicago's McCormick Place convention center told him it was looking for help with the project.
Swanson conceded he also lied when he said an authority official told him the law firm needed his help and again when he testified under oath that he met in Springfield with lawmakers and the firm every two to four weeks.
He was hired to lobby on behalf of the Metropolitan Pier and Exposition Authority, which operates McCormick Place and Navy Pier.
"Contrary to his grand jury testimony, the defendant did not meet with representatives of Firm A but rather had few if any substantive conversations with discussions about MPEA business'' in the first year of his contract, said Swanson's signed, 13-page plea agreement.
It said he "performed virtually no lobbying or consulting work on behalf of MPEA.''
Swanson is a longtime Ryan friend whose son worked in the secretary of state's office under Ryan.
Missing from the document was any agreement to testify as a prosecution witness if Ryan, who is under indictment on racketeering charges along with lobbyist Larry Warner, goes to trial.
Swanson might be able to save himself some time behind bars by cooperating with federal prosecutors. The agreement postpones his sentencing until after any Ryan trial and says that as things stand federal guidelines most likely will call for a sentence of six months to a year.
Prosecutors agreed to drop remaining counts in the indictment, which also charged Swanson with lying about other lobbying, including his contract to help tiny Grayville get a maximum-security prison.
Swanson learned on Feb. 23, 2001, that Ryan had chosen Grayville, the indictment said. It said he then landed a contract on March 2 to lobby for the southern Illinois community. He was paid $50,000 for his services and later lied about the contract before a federal grand jury, the indictment said.
The indictment said Swanson also gave money to a high-ranking official of the governor's office to gamble on a trip to Lake Tahoe, Nev. Prosecutors have not disclosed whether the official was Ryan.

HARD TIME FOR PRISON

RICH MILLER
 07 MARCH 2004

 


During the 2002 campaign, gubernatorial candidate Rod Blagojevich traveled to Vandalia, in southern Illinois, and spoke to a large crowd of union members. Most of those union members worked at the local state prison.

Blagojevich pledged to the prison workers that, if elected governor, "I will never balance the budget on your backs."

Fast-forward to February, 2004. Governor Rod Blagojevich proposes closing the very same Vandalia prison and laying off the hundreds of workers whom he swore to protect during the 2002 campaign. To say that the prison workers feel double-crossed would be putting it mildly.

For years, Department of Corrections employees have been reliable Republican voters. Many of the old-timers obtained their jobs through Republican political connections, and many of the downstate prisons were built in Republican areas.

But a solid year of deep budget cuts and layoffs by Governor George Ryan had soured many prison workers on the Republican Party. When Blagojevich came along, lots of them eagerly volunteered to work on his campaign. Jim Ryan, Blagojevich's Republican opponent, refused to rule out more layoffs in the prison system. The choice was pretty easy.

A couple of weeks ago, hundreds of Vandalia prison workers and their friends and relatives traveled to Springfield to protest the proposed prison closure and object to what has to be the single most spectacular flip-flop by this governor. They repeated the trek last week.

The workers appear to have the facts on their side. It costs the state $23,000 per year to house an inmate at the Vandalia Correctional Center (VCC). The brand-new prison in Lawrence County, where the VCC inmates will be moved, has a per-inmate cost of $25,000. Governor Blagojevich claims he can save $30 million by closing the prison, but prison boosters say it will actually cost the state $32 million to close the prison.

Plus, the prison has a work farm and other industries that generate $2 million a year in profits. The products are used by other state prisons, and the prison workers provide services to local communities. The food and other products produced at VCC won't be replaced when the facility is shuttered.

Only 71 of the 500 or so VCC workers will find jobs at the Lawrence facility. The rest may be out of luck. The local unemployment rate could rise to 13 percent if the prison closes. The workers who will have to move fear they may not be able to sell their homes.

The prison is in Senate Republican Leader Frank Watson's legislative district. The Vandalia Leader Union ran an editorial recently which pointed out that after Sen. Watson refused to cooperate with the governor during last year's spring session, Blagojevich fired the Vandalia warden and had him escorted out of the building under police guard. The warden was a personal friend of Watson's.

The governor claimed not long ago that he had no idea that the Vandalia prison was in Watson's district. Lots of people found that statement a bit hard to swallow, however, including Watson. Plenty of people believe that Blagojevich has proposed closing the prison to either retaliate again for Watson's uncooperative manner, or to force him to the bargaining table and make him put Senate Republican votes on the final budget agreement in exchange for keeping his prison open.

Finding the $30 million to keep Vandalia open won't be easy. The governor's budget proposal woefully underfunds education, and pressure is building to give schools as much as $250 million more. Some of the corporate tax loopholes that he wants to get rid of are proving to be more popular than first assumed, creating another $50 million hole, or thereabouts. If the union which represents state workers refuses, as expected, to give in to his demand that its members pick up their own pension payments, that will blow another $60 million hole in the budget.

Frank Watson is a stubborn man who isn't easily intimidated. Last year, he refused to offer any suggestions during the budget negotiations, and did his best to keep his members from voting for the final product.

But if Watson wants to keep his prison open, he may have no choice but to cooperate this year. The governor's budget is so full of holes that patching just one of them to free up some money for Vandalia won't be enough.

 

Prisons, politics a common mix

Four years ago, then-Gov. George Ryan proudly announced he would build a new prison in poverty-stricken Hopkins Park, just outside his hometown of Kankakee. Today, the construction site is silent, the project abandoned.

Ryan's predecessor, Jim Edgar, used the power of his office to make a similar decision in 1998. He would build a prison in Thomson to create jobs for a region reeling from the closure of a federal Army depot. The prison was built but never opened, a victim of budget cuts.

Now Gov. Rod Blagojevich is the one exercising his power over prisons.

He already reopened one prison shut down by Ryan, and in last week's budget address he called for closing the Vandalia prison - located in the district of one of his most vocal legislative critics - and a juvenile prison in St. Charles.

His announcement launches another round in the highly competitive, and often political, competition for the jobs and tax revenue that accompany state prisons. The communities losing prisons under the governor's proposal are putting together a coalition of local officials, state lawmakers and union leaders in hopes of changing Blagojevich's mind.

Some lawmakers and prison experts are getting fed up.

They argue that decisions about opening and closing prisons - costly decisions that can affect crime rates and inmates' lives for years - should not depend on which town lobbies the hardest or where a governor needs to pick up votes.

"I don't see that this process has any integrity," said Jim Thomas, a criminal justice professor at Northern Illinois University.

One idea floated by Sen. Steve Rauschenberger, R-Elgin, is to set up a commission, much like the federal panel that reviews military bases, to study the state's prison needs and the best ways of meeting them.

The commission would make recommendations on which prisons to close and when to build new ones. Lawmakers could accept or reject the recommendations with some confidence that they were based on solid evidence.

"It takes the politics out of it," said Rauschenberger, who is a candidate for U.S. Senate. "This would raise everybody's level of understanding and assurance."

Blagojevich rejects the idea.

"I'm very much for more accountability, not less, and I don't feel it would be responsible of me to shift my responsibility as governor to avoid making the hard decisions by having a commission," he said.

For years, the state needed new prisons to house the growing number of inmates. Those prisons came to be considered prizes for small towns where factories had shut down and family farms were disappearing. Towns engaged in bidding wars to present the state with the most attractive package of land and infrastructure improvements.

City leaders in Grayville even hired a lobbyist with connections to Ryan. Now federal prosecutors say that lobbyist, Arthur Swanson, knew Ryan had already chosen Grayville when he took the town's $50,000 fee. Swanson is now under indictment.

The huge growth in the prison population - currently 53 percent more than the prisons were designed to hold - began slowing at roughly the same time the state's tax revenues bottomed out about four years ago. The state no longer needed new prisons as badly and couldn't afford its old ones.

Sen. Denny Jacobs, D-East Moline, endorses Rauschenberger's concept of an expert panel to make recommendations on future prisons. Jacobs, whose district includes the vacant Thomson prison, says a series of "fiascoes" proves the current system isn't working.

In recent years:

- Edgar ordered the Thomson prison built, but Ryan and now Blagojevich decided the state could not afford to staff it and let it sit empty.

- Ryan awarded a prison to Hopkins Park, but Blagojevich halted construction.

- Ryan decided to close a prison in Vienna but gave in to an intense lobbying campaign and instead shut down the Sheridan prison. Then Blagojevich, following through on a campaign promise, reopened Sheridan as a center for drug-addicted inmates.

Vandalia, a minimum-security prison that opened in 1921 and houses 1,044 inmates, lies in the district of Senate Minority Leader Frank Watson, R-Greenville.

Blagojevich said he did not realize that when he decided to recommend closing the prison, but it still led to speculation that he was using the prison for leverage in his legislative battles with Watson.

Corrections Department spokesman Sergio Molina said his agency recommended closing Vandalia because the old prison needs costly improvements - $25 million over the next four years. The prison's annual cost of housing each inmate, $23,647, is the second-lowest of the four prisons in Vandalia's security class.

Likewise, the St. Charles facility has been targeted because it will need $13 million in improvements over the next few years, he said. The residents will be scattered to other facilities, he said, and a youth center in Joliet will become the main processing center for new juvenile inmates.

The average cost per inmate at St. Charles is $52,462, second-lowest among the eight youth centers.

James Coldren, president of the prison watchdog John Howard Association, agreed that "political muscle" should be removed from the prison decision process. But he also says Blagojevich has a reasonable argument against giving up control.

"He's the caretaker of the public's money," Coldren said. "If prisons are built and everything goes haywire, who gets the blame?"

More ex-state employees sue governor

By MIKE RAMSEY
COPLEY NEWS SERVICE
21 Feb 2004
CHICAGO - Democratic Gov. Rod Blagojevich reneged on a promise not to fire productive state workers who were part of the previous Republican administration, a new group of federal lawsuits contends.
Seven former employees of the Illinois Department of Corrections contend they had a binding verbal "contract" with Blagojevich because he publicly said he wouldn't purge holdovers from Gov. George Ryan's tenure if the workers did their jobs.
Instead, the new administration dismissed the seven DOC workers in recent months "with no explanation, no hearing, no reason" so Blagojevich could replace them with political allies, Joliet labor attorney Scott Anthony Schimanski said Friday.
"The story may not be as good, even, if it wasn't for (Blagojevich) making speeches about how things have changed," he said. "In his speeches, he says it's not 'business as usual.'"
At least six of the seven employees were "senior public service administrators" earning salaries ranging from $4,456 per month to $9,705 per month, according to Illinois comptroller records. The seven worked at prisons or offices in central and southern Illinois, and all were considered "at-will" employees with unprotected jobs, meaning they served at the whim of the incumbent governor.
"These people served at the pleasure of the previous administration," Blagojevich spokeswoman Abby Ottenhoff said. "The law clearly states that a new governor has the right to hire people who share his agenda and goals. We can't imagine the courts will interpret the law differently."
In August, Blagojevich, facing massive budget problems, said state employees shouldn't necessarily fear for their jobs.
"We're not looking to purge state government of different men and women who are hired during Republican administrations," he said. "I would say to the men and women working in state government that if they're doing a job necessary for the public and doing it well, they have nothing to fear from this administration."
Schimanski argues that kind of statement constituted an offer of employment and that his clients accepted.
The civil-rights lawsuits name Blagojevich, Corrections director Roger Walker and his agency and a variety of other parties allegedly involved in the firings. Each ex-employee seeks millions in compensatory and punitive damages.
Schimanski identified the entire group of plaintiffs as Kim Bigley of Kentucky; Dwayne Clark of Carbondale; Sandra Kiddy-Brown of Springfield, brothers Mark and Norman Pierson of Murphysboro; Samuel Riley of Anna; and Thomas Snyder of Taylorville.
The lawsuits were filed in two waves over the past couple of weeks at Chicago's federal courthouse, rather than downstate, where the plaintiffs lived and worked.
"It's well-known that the governor of Illinois lives in Chicago," Schimanski said. "If the governor's going to live in Chicago, he's certainly going to be sued in Chicago."

Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol. com.
 

Vandalia will fight to keep prison
Residents meet to discuss Blagojevich's plan to close facility
 
By BRENDA PROTZ
CORRESPONDENT
 
20 Feb 2004
 
VANDALIA - When Steve Barker began working for the Illinois Department of Corrections more than 23 years ago, he had one goal: to get a job in Vandalia, where he and his family live.
Gov. Rod Blagojevich's announcement Wednesday that he plans to close the prison and work camp in Vandalia, about 80 miles southeast of Springfield, could end Barker's hopes.
Barker, 45, started his career at Graham Correctional Center in Hillsboro. He then transferred to Taylorville Correctional Center, where he has been for the past 14 years and is now the bureau of identifications supervisor.
He recently learned that the same position was opening up at Vandalia, so he applied for it.
"When you work in your community, it gives you time to be involved, plus being able to be there for your family," he said Thursday. "I am on the road two hours a day, and if something happens, I can't be right there."
Barker was among more than 500 concerned Vandalia-area citizens at an emergency meeting of the Vandalia City Council Wednesday night. They served notice that they aren't going to let the prison go without a fight.
Mayor Ricky Gottman pledged to do whatever possible to retain the more than 500 prison-related jobs.
"We would lose more than $300,000 a year in direct revenue from state taxes in the form of income tax, motor fuel tax and local use tax. We would lose an estimated $350,000 a year due to loss of sales tax revenues due to loss of income and residents," Gottman told the gathering.
He also cited a domino effect of additional job losses through other business failures and loss of revenue to schools.
Beyond the lost jobs and revenue, state Rep. Ron Stephens, R-Mulberry Grove, was upset at the manner in which he learned of Blagojevich's plan.
"I'm angry. ... A friend of mine risked his job in the governor's office to call me. He was embarrassed. He wanted me to know what was being said," Stephens said.
"A man would have called and told me himself, but that's not what the governor did."
Stephens said the impact of closing the prison will be felt throughout the state.
"This is important to everybody. This isn't good public policy," he said, adding that the estimated $34 million in savings is misleading.
"These inmates will still need to be watched and fed, no matter where they go."
The prison's clinical supervisor, Arthur Langston, said he and the other employees are just trying to stay positive.
"Everybody is trying to hang together and keep our morale up," he said. "We are just trying to weather the storm and hope it doesn't happen."
Some at Wednesday night's meeting saw the Democratic governor's actions as a personal vendetta against the local senator, Frank Watson, a Greenville Republican. Watson, the Senate minority leader, has been among Blagojevich's most vocal critics.
Corrections spokesman Sergio Molina said that wasn't the case. He said the department was told by the governor to see where it could cut corners. One of those corners was to close Vandalia.
"We had to take a look at the age of that facility, plus the capital expenditures," Molina said.
He said Corrections will do whatever it can to help displaced Vandalia employees. By moving inmates to Lawrence Correctional Center in Sumner, he said, 71 more jobs will be created. And between now and July 1, 2005, there could be as many as 850 Corrections jobs elsewhere in the state, Molina said.
But that would mean relocation, and Shannon Metzger is all too familiar with such moves.
Metzger, husband Rick and 3-year-old son Andrew moved to Vandalia after Rick's job as a youth supervisor at Valley View Youth Center in St. Charles ended because the center's closing. Now, the family could be looking at another transfer and another new town.
"He (Blagojevich) has no idea of the impact," she said. "He can't do this to a community like this. It's the livelihood of the whole town. Every citizen will suffer."
Brenda Protz can be reached through the metro desk at 788-1519.
 

John Kerry Gets Backing From AFL-CIO   
Thu Feb 19, 5:54 PM ET 
By NEDRA PICKLER, Associated Press Writer
WASHINGTON - Democratic front-runner John Kerry (news - web sites) earned the endorsement of the AFL-CIO Thursday, with the head of organized labor saying "the time has come to unite behind one man, one leader, one candidate."
 

 
 
  
Amid chants of "Kerry! Kerry!," the Massachusetts senator welcomed the support of a formidable ally as he tries to blunt rival John Edwards (news - web sites)' challenges to his position on trade.

"Today we stand united in a common cause and that common cause is not just to defeat George Bush, but it is to put our country back on track, on the road of prosperity, the road of fairness, the road of jobs," Kerry told the crowd.

AFL-CIO President John Sweeney called Kerry a friend of the working man as he urged labor to stand with one candidate. The AFL-CIO, comprised of 64 unions representing more than 13 million U.S. workers, is planning an unprecedented effort to mobilize their members to vote for Kerry.

In another coup for the Democrat, he was poised to pick up the backing of nine-term Georgia Rep. John Lewis, a leader in the civil rights movement whose support will be crucial in the state's March 2 primary. Georgia has 86 delegates at stake, and Southern-bred Edwards has made it a prime target.

The AFL-CIO endorsement comes as Edwards begins a tour of key political states that have lost manufacturing jobs. He continued his criticism of Kerry for voting for the 1993 North American Free Trade Agreement that many workers blame for job losses. Edwards said he opposed NAFTA during his 1998 Senate campaign.

"As Senator Kerry himself has pointed out many times during this campaign, records matter," Edwards said. "I think there is a significant difference between us on this issue."

But Kerry said he and Edwards have the same policy on trade. Both voted for normalized trade relations with China and both want to see labor and environmental standards addressed in trade pacts, he said.

Although Edwards said he would have voted against NAFTA, Kerry said: "He wasn't in the Senate back then. I don't know where he registered his vote, but it wasn't in the Senate."

Kerry will pick up the AFL-CIO's endorsement despite his support for free trade, blamed by the unions for eroding their memberships and sending millions of jobs to other countries. But the unions are eager to show a united front headed into November's election after a bruising primary that used millions of labor dollars and exposed deep cracks in the movement.

In the Democratic primaries this year, those from labor households have made up anywhere from a fourth of the vote to a third of the vote in states such as Delaware, Iowa, Missouri and Wisconsin with a significant labor presence, according to exit polls.

Those voters tended to support Kerry, by narrow margins in Iowa and Wisconsin, and by a substantial margins from 20 to 40 percentage points in Missouri and Delaware.

The labor vote has been a significant part of the Democratic base, with union members voting for Al Gore (news - web sites) over George Bush by about a 2-to-1 margin in 2000, according to exit polls. Those in labor households made up a quarter of the vote, and they went for Gore by almost as big a margin.

Looking ahead to the general election, Teamsters President James P. Hoffa said Kerry has evolved on the issue of trade and has the best chance of beating President Bush (news - web sites).

"He might not be there yet, but I think the more he campaigns, the more he realizes this entire election is going to come down to jobs," Hoffa said in an Associated Press interview Wednesday. "I think he's moving towards that. Everybody evolves."

The Teamsters originally supported Dick Gephardt (news - web sites) for president. But the Missouri congressman dropped out after a poor showing in the Iowa caucuses, leaving the Teamsters and 18 other unions that formed the Alliance for Economic Justice with nowhere else to go.

Hoffa said the Teamsters can waver on the trade issue for a candidate with "a total package" who can win in November.
  
 
Edwards gave Kerry a scare in Wisconsin's primary Tuesday after highlighting his opposition to NAFTA and Kerry's vote for it. Edwards plans to continue the criticism as the two head toward upcoming nominating contests in Ohio, New York and Georgia.
Kerry, while in Wisconsin, often faced questions about his support of free trade and the movement of jobs overseas. The trend continued Wednesday in Ohio, which Kerry said has lost 160,000 manufacturing jobs since Bush took office.
___
 

Job cuts, tax hikes
Governor lays out his budget plan
By DOUG FINKE
STATE CAPITOL BUREAU
19 FEB 2004
Gov. Rod Blagojevich called Wednesday for another round of state job cuts, facility closures and fee and tax increases on business to make up a $1.7 billion deficit in next year's state budget.
Blagojevich's spending plan for the fiscal year that starts July 1 increases expenditures by nearly $1 billion, including a $400 million increase for public elementary and high schools and major hikes to cover health-care services for the poor and state government employees.
But critics contend Blagojevich is also relying on getting more money from Washington, which is far from certain, and is underfunding state pensions.
"This is not a balanced budget. It's more diversion and smoke and mirrors," said Sen. Steve Rauschenberger of Elgin, the Senate Republicans' budget expert.
In a 72-minute speech to a joint session of the General Assembly, Blagojevich said his budget plan was a matter of fairness.
"We are going to have to ask those who for a long time have benefited from the system to give something back, to lead in the shared sacrifice," he said.
Leading that list are Illinois businesses that will pay more in taxes and fees if lawmakers approve Blagojevich's budget. The governor wants to close what he calls tax loopholes to generate $223 million for the state. Among those are depreciation rules that save companies $74 million and foreign tax havens that save $40 million.
As it is, he said 40 large corporations that operate in Illinois pay no state income tax.
"We can't just run around granting tax breaks willy-nilly just because somebody knows the lobbyists for the industries that want them," Blagojevich said.
Business groups and Republican lawmakers said the Democratic governor's plan will cost the state jobs.
"He talked about Management 101, but I don't think he understands Economics 101," said Senate Republican Leader Frank Watson of Greenville. "You have to have a cost of doing business that is competitive or you lose jobs."
"The governor and his allies last year passed $2 billion in new taxes and fees and wage mandates onto Illinois employers," said Kim Clarke Maisch of the National Federation of Independent Business. "For him to come back a few months later and say, 'Wait, it wasn't enough' will set back the Illinois economy further."
Some Democrats countered there is nothing unreasonable about closing the loopholes.
"It's very difficult to vote against the propositions (Blagojevich) has proposed today," said Sen. Vince Demuzio, D-Carlinville.
"If a company is in Illinois and they are making money and they're not paying taxes, if we find a way to tax them, I don't know that they are going to leave the state," said Rep. Gary Hannig of Litchfield, the House Democrats' budget expert.
Blagojevich wants to cut costs by slashing 4,000 more jobs from the state payroll.
About 2,000 of those jobs are vacant and will be wiped off the books, while the other 2,000 would be eliminated by offering an early retirement incentive to a select group of state employees. By cutting the work force below 60,000, Blagojevich hopes to save up to $200 million.
"If a state agency or a state employee can perform two functions for the price of one, then the taxpayers have every right to expect them to do just that," he said. "I believe we can cut down on the state's payroll and still give the people of Illinois the service they expect and the results they deserve."
As contract negotiations continue between the state and its largest employees union, Blagojevich used his speech to warn that "a fair deal for state employees must be weighed against the interests of the people they serve. State government doesn't exist for the benefit of state employees or for the benefit of those of us who are elected to public office."
Sen. Larry Bomke, R-Springfield, called those remarks offensive.
"I think he was impugning state employees when he should not have," Bomke said. "Maybe that makes points with the general public, but I took offense to it."
Blagojevich also wants to close some state facilities, including a mental health operation in Tinley Park and a minimum-security prison in Vandalia. Blagojevich said later that he didn't realize the prison is in the Senate district of Watson, one of the governor's leading critics last year.
"I would hate to think he would jeopardize 500 families who depend on income from the Vandalia Correctional Center to target me," Watson said. "I don't think he's that mean-spirited."
Blagojevich's budget relies on additional federal money to pay medical bills for the poor. However, some of the money is contingent on federal approval of a financing scheme in which hospitals tax themselves to pry loose additional federal dollars. Just last week, federal officials said they were going to restrict those kinds of funding schemes.
Rauschenberger said Blagojevich is underfunding state pensions by $500 million in fiscal 2005, a violation of pension funding laws. Rep. Mike Smith, D-Canton, said he believes the pension shortfall is about $200 million.
Under a 1995 law, pension contributions are automatic and set at a level determined by actuaries working for the five state-funded pension systems. However, Blagojevich's budget director, John Filan, said the state is reviewing the accuracy of those determinations.
Blagojevich touted a $400 million increase in funding for public elementary and high schools. He did not specify how the money should be spent, either on general state aid, or for specific programs like transportation and special education. That will be determined later, he said.
Embattled State School Superintendent Robert Schiller said the $400 million increase is "a good start in a tough time."
"You cannot look at $400 million at a time of a deficit and rank that as insubstantial," Schiller said.
Yet, the money goes only so far. Raising the state's guaranteed spending level per pupil by $250 would cost $390 million by itself, Schiller said. That leaves nothing for other education programs, which is why the state board asked for a $650 million spending increase.
Also Wednesday, Blagojevich called for:

Consolidating the departments of Professional Regulation, Financial Institutions, Banks and Real Estate and Insurance into one large agency.
Cutting back on state tourism grants to free up money for other purposes.
Reducing the amount of money to buy parkland in urban areas.
Adding 400 Illinois State Police troopers, as well as parole agents and arson investigators, to the state payroll.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 
 

Warden aims to make Dwight model prison
By M.K. Guetersloh
DWIGHT -- When the state prison at Dwight opened in 1930, it was the only women's prison in Illinois and a model for helping inmates become better mothers and better citizens.
More than 70 years later, Alyssa Williams said she wants to put Dwight Correctional Center at the top of the national list of model prisons again when it comes to helping inmates reform, overcome mental health problems and become better parents.
Williams has served as warden of the state's primary female prison for about three months, but she has already started looking at programs that will help inmates and their children. Most of the 1,000 women at the prison will finish their sentences and return to their families, she said.
Parenting classes offered at the prison help new mothers cope with the needs of younger children, Williams said. That program needs to be expanded to help the women take care of their children through the troubling teen years, she said.
Camp Celebration
Camp Celebration is one way the prison helps develop that mother-child bond. Every Saturday in the summer, children participating in Camp Celebration get to spend time at the prison with their mothers while enjoying cookouts and other outdoor activities.
"We are seeing if children can interact with their mothers in a positive environment. It will reduce the likelihood that the children will become offenders," Williams said. "And of course, the mom gets to bond with her child."
Williams said her interest in corrections is a little more focused on children because of her education and early work with juvenile offenders through the Peoria County probation department.
"It's just amazing to see how these kids can change and learn from their past mistakes," Williams said.
Williams' background
Before joining the Illinois Department of Corrections in 2001 as a parole officer in East St. Louis, Williams worked with sex offenders at Western State Hospital near Tacoma, Wash. Williams also worked in clinical services at the Illinois prison system's youth center at Warrenville.
Williams said she was a little apprehensive about taking the job as warden of the state's largest female prison. At 29-years-old, Williams is the youngest warden in Illinois' prisons.
Williams said she received a lot of encouragement from Debbie Denning, deputy director of women and family services for the Department of Corrections.
Working with the staff
"And the staff has been very receptive," she said. Already Williams said she has been working with representatives of the union that represents correctional officers to help address the prison's long-standing understaffing problems.
In recent years, the prison has forced correctional officers to take overtime shifts to cover vacant positions. Williams said earlier retirement offered by the state last year thinned the staff even more at the prison.
"The union has been instrumental in helping me push for more staff, and the department is responding," Williams said. In the coming months, 37 cadets will be assigned to Dwight after their graduation, adding to the prison's staff of about 250 correctional officers, Williams said .

Audit: Illinois could've saved millions
Better utilization of state property could save $2.4 million a year
February 5, 2004
 
 

By DAYNA R. BROWN

of the Journal Star

PEORIA - Millions of Illinois taxpayer dollars might have been saved with a little planning and foresight, a recent state audit shows.
Had the state moved agencies that currently lease property throughout Peoria into the former Zeller Mental Health Center, it could have saved $2.4 million annually.
Instead, officials leased the vacant, state-owned facility to Illinois Central College for $1 a year, and it became home to ICC North.
That transaction and other state property deals were highlighted in an audit of the Department of Central Management Services, which is responsible for the state's space utilization program.
The 132-page document, released Tuesday by the state auditor general, also states CMS has an incomplete and inaccurate listing of state properties.
"Our state management of property has been atrocious," said Rep. Frank Mautino, D-Spring Valley, who serves as co-chairman of the legislative audit commission.
The report was generated after questions arose about the leasing of Zeller, which was closed in September 2002 because state officials said it was too expensive to operate. It was leased to ICC two months later.
The auditor recommended that, in the future, CMS conduct a detailed examination of property to determine if it is "excess," which wasn't done for Zeller.
Illinois also should study unoccupied space at state-owned facilities and determine the cost benefit of moving agencies leasing property elsewhere into that available space, the audit states. It also says "the state should receive adequate revenue for the space rented."
Eleven state agencies lease 16 properties in Peoria, totaling 176,498 square feet. The audit shows the Zeller property is more than 200,000 square feet - enough to accommodate all those agencies, though some could not be moved.
The leases range from $8.50 to $17.61 per square foot, while the
cost to operate at Zeller would only be $7 per square foot.
"With the number of vacancies that we have in state properties, we should not be renting other facilities," Mautino said, adding he doesn't know specifics of the Zeller case and couldn't comment on it.
ICC officials still contend the public is getting a good deal.
"It is a great thing for the community and it is a great thing for the college," said Bruce Budde, a vice president at ICC. "We have 2,000 students there. Without our presence (at ICC North), we would be underserving our community."
He also said the $1 amount is misleading because the college pays to operate the facility and has put $3 million into the property.
In addition, not all the state agencies leasing facilities in Peoria - including the Department of Corrections - would be a good fit for the Zeller property, Budde said.
Sen. George Shadid, D-Peoria, who was opposed to ICC moving into Zeller and also serves on the legislative audit commission, would not comment Wednesday.
The audit also talks about inaccurate documentation of state property.
County assessors identified 27,783 parcels of land owned by the state, compared to the 3,091 recorded by CMS. While there were valid reasons for some of the differences, like each piece of right-away may have been counted as a separate parcel, there are still discrepancies, the audit states.
Other properties weren't counted at all. State properties not included on the CMS master list include Jubilee College Historic State Site near Brimfield, the Metamora Courthouse, David Davis Mansion in Bloomington and Bishop Hill in Henry County.
"It's incredible that our state management agency is missing a third of our properties. It has been so lax that the opportunity for waste and abuse is there," Mautino said.
The audit also found property owned by the Illinois Department of Transportation that was purchased many years ago but has not yet been used for roadway. That includes 158 acres IDOT purchased in Peoria County in 1980 for $700,000.
The land was intended as an extension for Illinois Route 6, but remains farmland, said Eric Therkildsen, IDOT program development engineer.
"Fifty acres was for the road and the rest was the remainder of the farm. Why we bought the entire thing, I don't know," said Therkildsen, who wasn't with IDOT at that time.
Mautino said his committee will review the audit in the next couple months.
 

Report cites budget cuts in prison death
 
February 1, 2004
JEFFERSON CITY, MISSOURI -- Staff retirements and budget cuts contributed to reduced security at a state prison, where two inmates allegedly killed a third and then hid from authorities for four days, according to a Corrections Department report.
The incident in October prompted an internal review of security at the Missouri State Penitentiary. As a result, the prison reduced its inmate population, reshuffled staff to keep a closer eye on prisoners, and added 16 surveillance cameras, according to the report.
A convicted murderer, Toby Viles, was found dead in the prison ice plant, and his co-workers--convicted murderers Shannon Phillips and Chris Sims--were reported missing. After a search, they were discovered hiding in a stocked compartment under a stairwell less than 10 yards from where Viles' body had been found.
 

State official stops presses on prison paper
Eric Zorn
January 31, 2004
I was looking forward to going to Stateville Correctional Center in Joliet to run a seminar for the staff of a fledgling prison newspaper.
But even before organizers and I could settle on a date for my speech to a literally captive audience, Illinois Department of Corrections Director Roger Walker stopped the presses.
"Our agency has decided that [a newspaper at Stateville] is not a priority at this time," Department of Corrections spokesman Sergio Molina said this week.
That decision came as a big disappointment to the inmates who were planning to write the quarterly Stateville Speaks, as well as to Bill Ryan, a director of the Illinois Coalition Against the Death Penalty and the outside-the-walls project coordinator.
"An inmate newspaper would be a tiny baby step providing much-needed education and promoting positive inmate attitudes," Ryan said. "It's far healthier to have inmates interested and working on poetry, essays and book reviews and discussing relevant issues in the prison environment than sitting in a cell all day doing nothing."
Having a publication written and edited by prisoners is not a new idea--they flourish elsewhere and have come and gone at Illinois prisons.
They promote literacy and creativity, skills that will serve the inmates well when they are released, as most will be. And because articles are carefully screened by prison staff before publication, they don't tend to foment trouble or promote unrest.
In fact, an editorial already in the can for the first issue of Stateville Speaks should it ever be published is a vehement anti-drug diatribe that calls users and dealers "sick and misguided; [the prisoners'] enemy. An enemy of self-improvement, an enemy of rehabilitation, an enemy of human dignity."
It was written by Renaldo Hudson, 39, a convicted (and admitted) murderer and former Death Row inmate who came up with the newspaper idea after he oversaw an essay contest that drew 41 entries last summer.
Ryan said Hudson and other inmates thought they had the go-ahead from department officials to start publishing soon. Before the ax fell, Ryan, who lives in Westchester, had arranged for CNN to donate used computers and secured pledges to cover printing expenses.
"Whenever we have inmates in any kind of program, it requires staff supervision," said Molina, explaining why Walker decided not to allow the Stateville Speaks project to proceed. "This is a maximum-security facility. We can't just let inmates walk back and forth to a newspaper office.
"It's not an issue of the content [of the publication]," Molina said. "It's that we have limited resources, and we don't feel that this is how we should be allocating them."
James Coldren Jr., head of the John Howard Association, a prison reform organization headquartered in Chicago, said he was disappointed to learn of the department's decision.
"There are very few opportunities these days for inmates to develop writing skills," Coldren said.
Prison newspapers and newsletters "can relieve tension," Coldren said. "The ability to express thoughts, experiences and feelings to others is psychologically healthy. Yet all [the department officials] seem to think about is possible problems, like who's going to maintain the computers."
Bill Ryan is urging supporters to contact lawmakers in hopes that Gov. Rod Blagojevich will ask department officials to reconsider. If he's successful, I'll be glad to go down and talk to the staff about reporting, punctuation and paragraphs. But I'm sure there's nothing I can tell them about sentences that they don't already know.
- Some 62 percent of online voters this week said they agreed with my Tuesday column and disapproved of CBS' decision to sell Super Bowl advertising time to purveyors of erectile-dysfunction medication such as Viagra, Levitra and Cialis.
However, many female readers simply offered the e-mail equivalent of a derisive chortle and welcomed me and other men to the club of those who are frequently surprised and made uneasy by TV commercials promoting products that relate to their intimate functions.
The analogy is inexact, but I see the point. And if mini-pad manufacturers start advertising during family events such as the Super Bowl, I'll march in the front lines of that protest as well.
- Readers have shared many memories of the recently and dearly departed Magikist lips billboard. I've posted a selection via my Web log at chicagotribune.com/notebook.

Prison program targets drug addicts  
By Sara Burnett Daily Herald Staff Writer
Thu Jan 29, 9:11 AM ET   
 
 
As he greets the new inmates at Sheridan Correctional Center, Warden Michael Rothwell walks among them, explaining how life here will be different from other prisons.
  
You'll be treated with respect, he says.

You'll be treated like a man, he adds.

"I see heads nodding as I talk," Rothwell said Thursday. "They tell me later they've never had a warden talk to them like that."

Rothwell and the other people behind a new drug rehabilitation program at Sheridan hope the changes don't stop there. The program is a kind of "test case" for Gov. Rod Blagojevich and a slew of social service, community and business groups.

The goal is to decrease the state's recidivism rate, or the percentage of people released from prison who re-offend, by providing drug treatment, job training, education and counseling, both in prison and after inmates are released.

At 54 percent, the state's recidivism rate is the highest in Illinois history, said Deanne Benos, the assistant director of the Illinois Department of Corrections and a former policy adviser to the governor.

The first group of 50 prisoners arrived at Sheridan, located about 30 miles southwest of Aurora, Jan. 2. Since then, about 150 others have moved in. The prison can hold 1,300 inmates at a time, and the program is expected to serve 1,700 per year.

Participants who have between six and 24 months of their sentence left may volunteer for the program. It does not accept any sex offenders or murderers.

"We want to be tough on crime, but we have to be smart, too," Benos said. "This is both tough and smart."

The department of corrections estimates it will cost about $48 million per year to run the Sheridan project. That's about $15 million to $18 million more than similar size prisons that don't offer the comprehensive services.

But Benos said studies of similar prison programs in states like New York and Texas show that for every $1 spent, states save $7 by turning out productive members of society rather than people likely to commit more crimes or require other social services.

Blagojevich also hopes to double the number of probation officers working statewide by the time his first term ends, in January of 2007.

At the time he took office, the state had about 370 probation officers. That number fell to 330 after the state offered an early retirement program. Those officers now handle more than 100 clients each, Benos said.

If their caseloads were smaller, she added, they'd be better able to monitor clients and make judgment calls on whether petty offenses should land them back in prison or whether they need more support services.

Corrections officials estimate the total cost of bringing the probation staff up to 740 officers will be about $42.3 million, including $11.4 million in one-time costs like cars and radios.

The president of the John Howard Association, a prison reform group, called the Sheridan project a "true innovation" that could serve as a national model.
  
 
State officials estimate 69 percent of the people in prison today either were convicted of drug-related crimes or committed their crimes while on drugs or to get money for drugs.
 

Dean stumps in Springfield

By ADRIANA COLINDRES
STATE CAPITOL BUREAU
11 Jan 2004
Democratic presidential hopeful Howard Dean invoked the words of Abraham Lincoln as he told hundreds of union workers in Springfield on Saturday why he deserves to be the country's next chief executive.
"The biggest lie that people like me tell people like you at election time is: If you vote for me, I'm going to solve all your problems," Dean told members of the American Federation of State, County and Municipal Employees Council 31. "The truth is, the power to change this country is in your hands, not mine.
"Abraham Lincoln said that a government of the people, by the people and for the people shall not perish from this earth," Dean said. "Together, we have the power to take back the White House in 2004. And this is exactly what we're going to do."
Dean, considered the Democratic front-runner, scheduled a brief stop in Springfield so he could speak at AFSCME Council 31's PEOPLE legislative conference at the Hilton Springfield. Union spokesman Anders Lindall estimated more than 700 AFSCME members attended the event.
PEOPLE is the union's acronym for Public Employees Organized to Promote Legislative Equality.
Dean had been campaigning in New Hampshire before flying to Springfield, and he headed to Iowa afterward, said Henry Bayer, executive director of AFSCME Council 31. Those two states are the sites of this year's first presidential contests, with the Iowa caucuses Jan. 19 and the New Hampshire primary election Jan. 27.
Many political observers believe the Democratic presidential nominee already will have been chosen by the time Illinois holds its March 16 primary.
But in introducing the former Vermont governor to the AFSCME crowd Saturday, Bayer said: "We want you to know, Governor Dean, that if you don't have this (nomination) thing wrapped up by March 16, we're going to put the final nail in the coffin and catapult you into the general election here in Illinois."
The American Federation of State, County and Municipal Employees, which represents more than 1.4 million members nationwide, endorsed Dean for president last November.
In a speech that lasted about 20 minutes, Dean criticized incumbent President George W. Bush for the tax cuts he pushed through Congress, for not doing enough to preserve and create jobs and for the war in Iraq.
"You cannot trust Republicans with your money," Dean said as the audience applauded.
Then, acknowledging the presence of Republican state Sen. Larry Bomke on the dais, Dean added: "With, of course, the exception of your state senator here, who I know would never have been allowed to sit on this dais if he wasn't a good labor voter."
Bomke, of Springfield, explained later that he was at the AFSCME event to accept a "legislator of the year" award.
"It was uncomfortable being a Republican and being up on the dais" while Dean spoke, Bomke acknowledged.
"I've been a Republican all my life, a strong supporter of George W. Bush," Bomke added. "But I was impressed with Governor Dean. He's very energetic, a lot of charisma, and I think the president will have his work cut out for him. But I'm confident that (Bush will) win the election."
In his speech, however, Dean said he plans to defeat Bush by "bringing new people" into the political process.
"The only way to beat George Bush is to reach out to the 50 percent of Americans who've quit voting because they can't tell the difference between the Democrats and the Republicans anymore, and give them a reason to vote," Dean said.
Earlier Saturday, AFSCME Council 31 endorsed state Sen. Barack Obama of Chicago in the Democratic primary for U.S. Senate.
"We did that based upon the relationship that we've had with him in the years that he's been in the Illinois General Assembly," AFSCME's Bayer said. "He's not only been someone who's voted with us, but he's been someone who has been a spear-carrier for us, who's been a sponsor of our legislation, who has worked to try to garner support among his colleagues on votes that were important to us."

Adriana Colindres can be reached at 782-6292 or Adriana.colindres@sj-r.com

 

Hynes wins Illinois AFL-CIO endorsement
   
 
By Mike Robinson
The Associated Press

January 8, 2004, 11:57 AM CST

ROSEMONT -- In a show of labor support, state Comptroller Dan Hynes won the Illinois AFL-CIO endorsement Thursday for the Democratic nomination for the U.S. Senate.

``This is by far the most significant endorsement of this campaign,'' Hynes said at a news conference where he was flanked by AFL-CIO president Margaret Blackshere and other labor leaders.

He said the endorsement would boost his campaign because ``the AFL-CIO knows how to win.''

Delegates streaming out of the meeting said Hynes won a crushing victory.

``I think this was completely anticipated,'' said Henry Tamarin, president of Hotel Employees & Restaurant Employees Local 1 in Chicago, which supports a rival candidate to Hynes, State Sen. Barack Obama.

Tamarin and other delegates said the key issue put before the meeting was whether to endorse Hynes and that no other contender was offered to the delegates.

Delegates said there were 18 votes against making any endorsement and more than 100 in Hynes' favor.

While the delegates were taking their vote, a huge blowup of a union card issued in 1962 to another candidate in the race, millionaire commodities trader Blair Hull, sat outside the hall. The card was issued by the Cannery Warehousemen, Food Processors, Drivers, and Helpers, Local 679 in Los Gatos, Calif.

The AFL-CIO endorsement means Hynes is going to get a ready-made network of political workers in counties across the state in his race for the nomination in the March 16 primary. It also will mean a fresh infusion of money into his campaign from union treasuries.

Hynes had been working the unions for months and was expected to get the endorsement.

DuPage County electrical worker Pat McCool, who came to observe the meeting, said he supported Hynes ``because he stood up for labor in not allowing people to cheat on the prevailing wage law.''

The law requires nonunion shops to pay union wages if they have state contracts.

Hull met with reporters after the vote and said he expects to get the votes of many rank-and-file union members because he was once one himself and ``I'm one of them.''

``I wasn't born with a silver spoon in my mouth,'' he said. Hull launched his commodities trading company using $25,000 he won at blackjack.

Hull was asked if as a U.S. senator he would vote to repeal the section of federal law that authorizes states to enact right-to-work laws.

``Oh yes, I'm against right-to-work laws,'' Hull replied.

When Hynes was asked the same question at the news conference, he said there were any number of laws on the books that should be reviewed, ``and I'll take a look at that one.''

Dean expected in city Jan. 10
Candidate to speak at AFSCME meeting
By JOHN REYNOLDS
STAFF WRITER
1 Jan 2004
The race for the White House is expected to cut through Springfield next week when Democratic frontrunner Howard Dean comes to town.
Henry Bayer, executive director of American Federation of State, County and Municipal Employees Council 31, said Wednesday that Dean is expected to speak to the union's legislative conference Jan. 10. The event is not open to the public, but about 500 union members are expected to attend the event at the Hilton Springfield.
"Most of our members haven't seen him in person. This is an opportunity to see him face to face," Bayer said.
Dean, the former governor of Vermont, has been endorsed by AFSCME.
Dean will talk about his candidacy and issues confronting labor, Bayer said.
Many of organized labor's concerns are also shared by the general public, Bayer said. Among issues he cited were improving the economy and helping state and local governments that are feeling the budget crunch.
"In past recessions, the federal government has extended a hand to state and local governments," Bayer said. "This administration has been very stingy about doing that."
Dean is expected to touch on such issues as trade laws, the minimum wage and education.
Bayer said he believes union members will be more active during this campaign than they were four years ago.
An exact time for the Dean event has not yet been finalized.
The legislative conference is an annual event for AFSCME. Union members from around the state will attend the one-day event, where they will lay out the union's legislative agenda for the upcoming year.

John Reynolds can be reached at 788-1524 or john.reynolds@sj-r.com.
 

Boot camp to reopen as work camp
 
 
 
 
MAGGIE BORMAN ,
The Telegraph  12/31/2003
 
 
 
 
WHITE HALL -- A Greene County corrections facility that fell to the budget ax last year is being resurrected this spring -- and will become a work camp to boot.
The former Greene County Impact Incarceration Program facility, commonly called the Greene County Boot Camp, will become an Illinois Department of Corrections Work Camp, less regimentally structured and more focused on public works projects, IDOC spokesman Sergio Molina said.
"It will still house 200 inmates and we anticipate it will be full," he said.
The camp, located between White Hall and Roodhouse in northern Greene County, was victim of the $500 million in budget cuts implemented at the urging of former Gov. George Ryans. The reopening will fulfill a campaign promise made by Ryans successor, Gov. Rod Blagojevich.
"I am just very happy that the facility is going to be reopened. It is definitely good news for us and for the area communities," state Sen. Vince Demuzio, D-Carlinville, said.
Opened in March 1993, the boot camp was a 120-day program that used a highly structured and regimented environment that stressed rehabilitation programs in the prison setting and in the community through public works service. The 200-bed facility housed all male first-time non-violent offenders aged 17-29.
The camp will reopen in March or April. Molina said inmates would be those non-violent offenders who must undergo a state screening process to qualify for serving the last segment of their sentence at the work camp. Should inmates not abide by camp regulations, they would be returned to a prison facility for the remainder of their sentence.
Former boot camp inmates provided much-needed service to the area, from sandbagging during the flood of 1993 to shoveling snow at municipal and educational buildings. It was a much-appreciated asset for financially strapped entities. The economically depressed county benefited from having the facility, which had an annual operating budget of $5 million and 73 staff members.
State Rep. Jim Watson, R-Jacksonville, worked closely with Demuzio to reopen the facility after it was closed in September 2002. He was not available for comment, but White Hall Mayor Harold Brimm said he was thankful for the efforts.
"We are really looking forward to its reopening, as it will mean so much to our local economy as well as for communities in surrounding counties," Brimm said. "I had anticipated it would be reopened -- though I didnt know as what. I didnt think the state would let the facility just sit there empty."
Demuzio said he fully anticipates that Blagojevich will divulge more information regarding the Greene County Work Camp in late January through the economic development meetings he has been having throughout the state. He said he didnt want to usurp the governors announcements.
"I know IDOC is in the process of hiring the 73 staff positions required for the Work Camp, but again those kinds of things need to come from the administration," Demuzio said.

$25M prison hospital proposed for Dixon, Illinois
By Pat Guinane
Tuesday, December 30th, 2003
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SPRINGFIELD The Illinois Department of Corrections is looking for additional bed space in northwestern Illinois, but not at Thomson Correctional Center.
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The dormant maximum-security prison in Carroll County is neither the right shape, nor the right size to accommodate a growing number of inmates who require special medical care because of advancing age or chronic illness.
.
The Department of Corrections, or DOC, would like to build a $25 million hospital at Dixon Correctional Center, about 40 miles southeast of Thomson.
.
A couple of years ago, we came up with the plan to essentially make Dixon Correctional Center the medical facility for the agency and along with that concept was the idea of building a new hospital, DOC spokesman Sergio Molina said.
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The Dixon facility already cares for nearly 2,100 inmates. Of those, about 600 patients require special care because of a physical or mental condition, Molina said. This year the state gave DOC $1.2 million to begin planning a new hospital building that would add nearly 200 beds intended for elderly and infirm inmates now housed at facilities throughout the state.
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Building the new hospital would cost the state about $5 million, with federal grant money accounting for the other $20 million, Molina said.
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Illinois spent more than $140 million to build Thomson Correctional Center, which was completed more than two years ago. But tight budget years have kept lawmakers from finding the money to operate the prison.
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The 1,800-bed facility includes a 200-bed dormitory-style minimum-security wing, but Molina said that section of the prison could not used as a hospital.
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We never envisioned placing inmates that needed chronic care at a place like Thomson, because it doesnt serve that purpose, he said. The guys we would place there are the guys that would be physically able to go out and work in the community.
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The minimum-security wing is essentially barracks-style housing for low-risk inmates to work at the prison or on state road cleanup crews, Molina said.
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The new hospital could take close to two years to build, Molina said. First, the Department of Corrections would have to convince the legislature and the governor to allocate the construction money.
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The head of a Chicago-based prison watchdog group said Tuesday that he supports the expansion, but thinks the state also should consider a compassionate release program to ease the crunch of elderly and chronically ill prisoners.
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Essentially, what we would propose is that at some age maybe 65, maybe 70 you would take a close look at inmates who have served long sentences and are chronically ill or pose no risk to society and you find a way to release them, said James Chip Coldren Jr., president of the John Howard Association.
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Inmates 50 and older still comprise just 3 or 4 percent of the prison population, but their numbers have jumped as the states inmate count grew from about 10,000 to more than 43,000 since the 1970s, according to the Department of Corrections.
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On top of that, a lot of our inmates have not lived very healthy lives, Molina said.
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The proposed facility, which would be built next to the existing hospital, would add dozens of new medical and nursing jobs, Molina said.
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Thomson Correctional Center was expected to create about 750 prison jobs. But first lawmakers have to find at least $50 million a year to run the prison.
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The Department of Correction has entertained outside suitors. Federal officials toured the facility this summer with an eye toward temporary housing for illegal immigrants, but ultimately decided Thomson was too far from Chicago.
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(This story includes reports from The Associated Press.)
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Pat Guinane can be contacted at
.
(217) 789-0865 or
patrick.guinane@lee.net.

Fix allegedly in for prison pick
 
 By KATE CLEMENTS
 THE NEWS-GAZETTE
 December 19, 2003

 
   SPRINGFIELD Shady dealings involving the siting of a maximum-security state prison in Grayville were part of the 91-page federal indictment of former Gov. George Ryan this week.
   It was a prison that Hoopeston officials had fought to have located in their town instead.
   According to the federal indictment, Ryan allegedly notified "Associate 1," who has previously been identified as lobbyist Ron Swanson, that Grayville would be the site for the new prison almost two months before the decision was made public.
   Swanson then obtained a $50,000 contract to lobby for Grayville to be selected as the new prison site, even though he would have known that no lobbying was needed because the city had already been chosen, according to the indictment.
   When Ryan announced the selection of the prison site, he publicly acknowledged the efforts of Swanson's client in promoting Grayville as the best location for the new prison. Federal prosecutors allege that Ryan made the comments at Swanson's request.
   Several towns, including Hoopeston, had competed for the prison in spring 2001 because the $140 million facility was expected to create 350 to 400 construction jobs and employ 750 when it was up and running.
   In his pitch to Department of Corrections officials, then-mayor Bob Ault estimated that 90 percent of Hoopeston residents supported the idea of bringing a prison to the city, which had been hit hard by the closings and downsizing of the canning plants that were its main industry.
   The city suggested the state buy all or part of a 375-acre parcel known as the Stokely farm and build the prison there.
   Hoopeston was named as a finalist in the selection process, and the city felt confident that it was going to get the prison, Ault said in a phone interview Thursday.
   "When I was mayor, I was certainly disappointed in the decision that was made, because Hoopeston met all of the criteria and we made several concessions," Ault said. "But the decision was made by the governor to award it to Grayville, and I guess he had the authority to make that decision."
   The indictment only addresses the period between when the decision was made and when it was announced, but some are now questioning whether the siting was handled fairly from the beginning.
   Department of Corrections spokesman Sergio Molina said only that "the selection process was followed," and declined to comment further.
   When asked if he felt that the fix was in all along for Grayville, Ault said he "really didn't know for sure."
   But it may have all ended up for the best, he added.
   "I certainly wouldn't want to be in the position that Grayville is in now," Ault said.
   Gov. Rod Blagojevich halted construction on the prison in April, citing budget cuts.
   The Illinois Department of Corrections now admits the possibility that it may never be completed and is looking at other uses for the site.
   "We're still looking at options of what we can do with that property, whether we continue with the construction for Department of Corrections purposes, or if there is interest from other outside entities," Molina said.
   Grayville actually purchased the land on which the prison was to be located, something Ault said he was pressured to do in Hoopeston.
   "People had urged us to purchase the land and donate it to the state, but we did not concede to that because we would have put the town in debt to pay for the land," he said. "If they decided not to build the prison, we would still have that indebtedness hanging over our heads."
  
You can reach Kate Clements at (217) 782-2486 or via e-mail at kclements@news-gazette.com.
 

Bettendorf company gets contract at empty prison
By Pat Guinane
QCTimes, Wednesday, December 17th, 2003
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SPRINGFIELD The Illinois Department of Corrections has agreed to pay an Iowa firm nearly $23,000 a year to maintain security and fire alarm systems at Thomson Correctional Center, even though the maximum security prison still awaits its first inmate.
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The three-year, $68,000 contract awarded Tuesday to Simplex Grinnel LP in Bettendorf, represents a fraction of what it costs Illinois to keep the northwest Illinois prison in mothballs.
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The $140 million facility originally was scheduled to open about two-and-a-half years ago. It would have boosted the states prison capacity by 1,800 beds and provided about 750 jobs to Carroll County, where unemployment peaks well above the statewide average.
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But when state finances declined, Gov. George Ryan decided the state couldnt afford to open the Thomson prison and spend at least $50 million a year running it.
.
The community feels that he mismanaged the states finances in his last couple years and that with more prudent spending, the money could have been there, said Merrie Jo Enloe, president of the village of 550 residents.
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Earlier this month, a local businessman who expanded his gas station and convenience store to cater to prison-related traffic had to sell his shop, Enloe said. Frustrated townsfolk jokingly suggest that the state might as well convert the prison into a no-frills bed-and-breakfast inn.
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We wanted the first guest to be George Ryan, Enloe said.
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First-year Gov. Rod Blagojevich has not found the funds to open the prison, and the shuttered prison will cost DOC about $800,000 to maintain this year. The state put up another $362,000 this year to help the community make the payments on a sewage treatment plant built to accommodate the prison, DOC spokesman Sergio Molina said.
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The facility faces an uncertain future. Molina said finding the money to open Thomson in the next fiscal year is not out of the question, but there are competitors for the money.
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Earlier this year, the state halted construction of prisons in Hopkins Park near Kankakee and in Grayville, along the states southeastern border. It could be difficult to convince the governor or the legislature to open one prison over another.
.
Outside suitors remain somewhat of an option. Federal immigration officials looking for bed space toured Thomson this summer.
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The issue with them is they need bed space in closer proximity to the city of Chicago, Molina said. So, right now theyre not looking at Thomson.
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Molina said the DOC has had talks with two private firms in correctional industries, and the states of Wisconsin, Alaska and Hawaii appear to be in the market for more prison capacity.
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Generally speaking, there are a number of states that have been looking for bed space to house inmates from their systems, he said. What were going to do is talk to any interested parties and see if Thomson is a viable option.
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Enloe said she has no problem with other states as suitors. However, she is wary of a private firm guarding maximum-security inmates in the community. A private firm also might not offer employment benefits on par with the state.
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Its frustrating, Enloe said. Hope is draining.
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Pat Guinane can be contacted at
.
(217) 789-0865or patrick.guinane@lee.net.
 
 

Early outs hike state costs
$380 million a year for nine years
By DOUG FINKE
STATE CAPITOL BUREAU
29 Oct 2003
Last year's early retirement program will cost state government an extra $380 million a year for the next nine years, trustees of the State Employees Retirement System were told Tuesday.
The cost of the early retirement program more than doubled the amount of state funding needed for the system to meet its obligations.
"The early retirement incentive cut state employment, but there's a big ticket at the other end," said Robert Knox, executive secretary of the State Retirement Systems. The SRS oversees pension plans for state workers, judges and lawmakers.
Each year the retirement systems must formally notify the governor and General Assembly how much money is needed to meet funding targets.
SERS will need $720 million in state money during the budget year that starts next July 1.
However, most of that is needed to cover the debt added to the system from the early retirement incentive program of late 2002. Had there been no early retirement program, Knox said, the system would need $358 million.
The program was intended to trim the state's payroll of older, higher-paid workers. It allowed eligible workers to purchase five years' worth of pension credits, giving them a boost in their retirement benefits.
The offer proved tremendously popular. Normally, about one-third of eligible employees take advantage of an early retirement program. However, 11,000 of the 22,000 eligible Illinois workers opted for the retirement plan. The huge number of new retirees added about $2.3 billion to the unfunded liability of the State Employee Retirement System, one reason the cost to the state is soaring.
However, the state is saving money on salaries. Those 11,000 employees collectively earned $49 million a month, Knox said. That's $588 million a year in salaries. About 1,000 of those jobs have been refilled, according to Gov. Rod Blagojevich's Office of Management and Budget.
How the numbers stack up could affect chances for another early retirement incentive plan to pass the General Assembly. Rep. Raymond Poe, R-Springfield, will announce details of a proposed additional round of early retirements Thursday and hopes it will pass the General Assembly during the upcoming fall veto session.
In the meantime, though, Poe wants to review SERS' financial data.
"I think we've got to look at (the numbers)," Poe said. "I don't know how it stacks up."
Poe said he thinks another round of early retirements could save the state $150 million to $200 million. It also would avert any additional layoffs, he said.
Poe said he thinks Blagojevich is planning to lay off large numbers of non-union employees, although he acknowledged that is "speculation on my part."
Poe denied that he's pushing another early retirement plan to bail out Republican state workers who remain on the state payroll after 25 years of GOP governors.
"There's a good chance a lot (of eligible retirees) are Republicans, but I'm just trying to help out people," Poe said.
Blagojevich also has raised the possibility of another early retirement plan as a way to trim the payroll. The option remains on the table for now, said Becky Carroll, spokeswoman for Blagojevich budget director John Filan.
"We are evaluating the SERS findings. We will look at the assumptions they make and just take it from there," Carroll said. "We are going to treat this as we would any budget request."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Drug use in state prisons declines

By JOHN O'CONNOR
THE ASSOCIATED PRESS
12 Oct 2003
The percentage of inmates testing positive for illegal drugs in state prisons has dropped from nearly 10 percent six years ago to 1.2 percent, according to Department of Corrections figures.
Positive drug tests among guards, parole agents and other employees also have continually dropped since 1998, to less than 1 percent for the fiscal year that ended June 30.
The plummeting numbers follow a Corrections crackdown that began in the mid-1990s with an inmate drug scandal; a zero-tolerance drug policy for employees; and more intensive searches of inmates, visitors and employees, particularly since the Sept. 11 terrorist attacks.
"It's working," Corrections director Roger Walker said. "It's manpower-intensive but there has to be a message sent and we have to do it and do it now."
Charles Fasano of the John Howard Association, a prison-watchdog group, was impressed by the steady decline and credited Corrections' tougher stance.
"Even in a fairly tight prison, drugs are still a problem that they had to pay special attention to," Fasano said. "They bought more equipment, they're using dogs more, they're more vigilant about searches."
In the 1997 fiscal year, 9.5 percent of the 7,100 inmates who were tested came up positive for illegal drugs.
In the fiscal year that ended June 30, 1.2 percent of 45,930 inmates tested - virtually everyone in more than 60 state prisons, juvenile centers and work-release programs - had drugs in their systems.
The crackdown can trace its roots to the infamous videotapes that surfaced in 1996 showing convicted mass-murderer Richard Speck indulging in sex and what appeared to be drugs seemingly at will. The agency, pushed by the General Assembly, enacted new policies and disciplinary measures to reclaim what many said was a system in which inmates had too many privileges.
 

 Prison system hires first guards in months
By JOHN O'CONNOR Associated Press writer
October 4, 2003
SPRINGFIELD, Ill. - Illinois' prison guards, who say the state budget crisis has only worsened matters for an already understaffed system, will get some relief after the Corrections Department hired its first batch of cadets in nearly two years.
The agency's academy in Springfield is training 110 prison guards who will be assigned to prisons throughout the state in mid-November, along with 28 parole officers, spokesman Sergio Molina said Thursday.
Roughly 250 more cadets and 30 parole officers are scheduled for the next two classes - although the numbers could change slightly - and the department plans to keep training newcomers through May, Molina said.
They can't come soon enough for correctional officers in the state's 36 adult prisons and youth detention centers. Corrections employees worked 661,000 overtime hours last year - the equivalent of 330 more full-time employees working 50 weeks a year.
"They're getting to the point of just being exhausted," said correctional officer Renee Bantista, a union board member at the Dwight prison. "Your alertness isn't there; you're walking around like a zombie."
The department paid $19.3 million in overtime last year, according to agency records. That's down 25 percent from the $25.9 million it paid in the fiscal year that ended in June 2001, but 8 percent more than what was paid in fiscal 2002.
"There's certainly some concern about how many hours our staff put in," Molina said. "That's why the priority has been placed on those front-line positions, to start back-filling some of those vacancies."
Corrections has 13,842 employees, according to the state comptroller. The agency's last cadet class graduated in March 2002, but Molina said there's enough money to have 14,992 by the end of the fiscal year in June.
 

 Large Unions Must Disclose Finances
Fri Oct 3, 6:18 PM ET  
 
By LEIGH STROPE, AP Labor Writer
WASHINGTON - The Bush administration issued new regulations Friday requiring the nation's largest labor unions to disclose details of their finances, including how much they spend on politics and lobbying, gifts, overhead and management.
  
The rules will force national, regional and local unions with income of more than $250,000 to provide much more financial detail in the annual forms they are required to file with the Labor Department (news - web sites). The forms haven't been updated in more than 40 years, administration officials say.

"The current financial disclosure forms that unions file provide little of value to rank-and-file members about their union's finances and operations, and they have failed as an effective deterrent against financial misconduct," said Labor Secretary Elaine Chao in a statement.

The rules take effect next year, though unions will not have to file a report until March 2005.

Organized labor questioned the timing of the announcement on a Friday, several hours after the Labor Department released its largest monthly report, on unemployment.

AFL-CIO President John Sweeney said the rules were a political attempt to disarm unions headed into next year's elections.

Unions are the traditional political allies of Democrats and mobilize huge numbers of voters for them in elections. Unions and the White House have been at odds since President Bush (news - web sites) assumed office.

"The Bush administration's rules are craftily designed to weaken unions, the strongest advocates for American workers, as our nation prepares for the 2004 elections," Sweeney said in a statement. "The rules target unions and go far beyond what is required of corporations or other not-for-profit organizations."

He said the requirements are overly burdensome for 5,000 labor organizations and will give companies the upper hand in unionizing efforts by disclosing financial details.

Under current rules, large unions can lump together much of their transactions. For example, one form filed with the department said a union spent $62 million on "disbursement of grants to joint projects with state and local affiliates." Another reported $4 million spent on "sundry expenses."

Such broad categories make it easy to hide possible embezzlement and mismanagement, Republicans said.

The new regulations "will give rank-and-file union members better tools to hold union leaders accountable for their actions and better, more understandable information for them to judge the financial health and integrity of their unions," said Rep. Charlie Norwood, R-Ga., chairman of the House Workforce Protections Subcommittee.

Labor unions fought against the department's initial plan, released in December 2002, and got 30 Republican House members to sign a letter asking the department to start over.

The Labor Department said it received more than 35,000 public comments on the proposal, which led to the exemption of more than 500 smaller unions from filing the most detailed financial report.

The new rule also requires large unions to file a new report for any trusts in which it has a financial interest, and must disclose transactions of $10,000 or more.

Unions also must estimate the proportion of time each officer and employee spends on activities such as representation and politics and lobbying.
 

Walker brings integrity to DOC

By ADRIANA COLINDRES
STATE CAPITOL BUREAU

28 Sept 2003
Roger Walker Jr., the former sheriff of Macon County, knows a thing or two about criminals.
"I always felt our job was done once we put them in jail, once they've been sentenced by the courts," Walker says of the three decades he spent working in the sheriff's department. "That was our job and it was done, and who cares what happens after that?
"Well, we should care what happens after that."
Walker also knows about working for a government with troublesome finances. In 2001, because of a tight budget in Macon County, he ended the practice of offering bacon, eggs and other hot breakfasts to jail inmates. Instead, inmates ate bagels and coffee.
State government in Illinois is dealing with a money crunch, too.
"I'm walking into a situation basically like I left, only it's a much larger-scale one, where there's a financial crisis," says Walker, 54. "So I don't have the luxury of being able to have the manpower I'd like to see at all of the facilities. I don't have the money to buy all of the equipment that I think all of the workers should have."
A native of Tennessee who grew up in Decatur, Walker began working for the state less than four months ago.
When he won his race for Macon County sheriff in 1998, he became the first African-American man to be elected sheriff in Illinois. He sailed to a second term in 2002.
Earlier this year, Gov. Rod Blagojevich asked Walker to serve as head of the Department of Corrections. Walker asked the governor if he could wait until June to start his new job because he wanted to make sure his wife, Vergie, would recover from a stem cell transplant needed to treat her bone marrow cancer. Walker said the transplant proved successful. The couple, who celebrated their 32nd wedding anniversary in August, have two daughters and three grandchildren. They still live in Decatur.
"We're a pretty religious family, and there's a lot of prayer that went into this whole thing," Walker says.
As head of Corrections, Walker's responsibilities include overseeing the reopening of work camps in Hanna City and Greene County and the reopening of Sheridan Correctional Center in LaSalle County as a drug treatment center. All are expected to happen early next year.
The Department of Corrections also is facing a number of staffing issues triggered at least partly by the state budget situation.
For instance, Blagojevich last spring deleted from the new state budget $17 million that lawmakers had put in to pay for the positions of 230 Corrections captains. The governor said the rank represented an unnecessary layer of bureaucracy.
In August, the department launched an administrative restructuring plan that eliminated more than 200 captains' posts, though most of those people found other jobs within the agency.
On Sept. 16, about 30 employees at Hill Correctional Center in Knox County held a rally, saying the facility has too many inmates and too few guards. That poses a security risk, the Hill employees said.
"I understand their concerns," says Walker, who has proposed changing the existing scheduling system to try to relieve staffing problems.
Under his proposal, employees no longer would have fixed days off, such as every Saturday and Sunday. Rather, employees would work six days, be off two days, work six days again and be off three days. Then the cycle would repeat.
Such a plan worked in Macon County, he says. So far, however, the state's largest employee union isn't going along with the idea.
"Our local leaders tell us that our members just aren't interested in it," says Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees.
"Even if it were a good idea - and I don't think it is a good idea, but even if it were - it certainly shouldn't be a priority," Bayer says. "He should be spending his time making sure that critical positions are being filled. He should be spending his time establishing credibility with the employees."
Walker says he wants a chance to give his proposal a test run.
"I can't prove to them how good the schedule would be because they won't let me try it," he says. "That's one thing I haven't gotten accustomed to yet, is dealing with the union. But I've made some strides with them, and I hope that they understand what I'm doing is to help the department and to address some of the problems they see as problems."
Walker says one of his strengths is his people skills, and others seem to agree.
"He's a personable guy, very pleasant," Bayer says.
Jerry Dawson, a 26-year veteran of the Macon County Sheriff's Department and Walker's successor as sheriff, describes his former boss as "very service-oriented" and someone who establishes good rapport with others.
"He came up through the ranks, so he had the respect of the rank-and-file people," Dawson says. "The thing that he's going to bring to that (Corrections) office is integrity. He's very fair."
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com

 

Death row stays mostly empty
Capital punishment sentences behind average
By JAN DENNIS
THE ASSOCIATED PRESS
28 Sept 2003
Just two men are waiting to die in the tiny cells on Illinois' once-empty death row, locked away in a hollow prison gallery that some predict could remain largely vacant years from now.
Death sentences are running well behind the state's average of 11 per year in the decade before former Gov. George Ryan made news worldwide in January by pardoning four condemned prisoners and sparing the lives of 167 others.
Capital punishment opponents hail the decline as a sign that executions are falling out of favor because of the furor over a flawed system that sent 17 men to death row who later were found to be wrongfully convicted.
Some prosecutors around the state acknowledge that death penalty cases probably have been stifled in the aftermath of Illinois' capital punishment debate, but not by a sense of justice.
Instead, they blame new legal requirements intended to safeguard death penalty cases, along with uncertainty over the legislature's ongoing efforts to overhaul the system.
Defense attorneys, meanwhile, credit a reform already on the books that provided more state money for defendants, leveling the financial playing field in death penalty cases.
"When you think about it, it used to be the United States Treasury against some poor little guy who's been charged with a crime. That was part of the unfairness of the whole system. Even upper income people have trouble paying for
their own defense, the costs are so high," Ryan said.
Death sentences dipped from a decade-high 17 in 1996 to just three in 2001, the year after the defense fund was created, according to Illinois Department of Corrections records.
"It's not because prosecutors are seeking the death penalty less. It's because defendants now have better resources to get themselves off," said Steve Richards, head of the state appellate defender's death penalty trial assistance division.
Champaign County State's Attorney John Piland, president of the Illinois State's Attorneys Association, said his group fears many of the reforms are a thinly veiled effort to abolish executions.
"Prosecutors have in fact done what I think the abolitionists had hoped they would do, which is to say 'Yes, this case is deserving of the death penalty but because it is so much agony, so much trouble, the ends just aren't worth it,'" said Peoria County State's Attorney Kevin Lyons.
Other state's attorneys say they haven't been swayed by the death penalty debate or new Supreme Court rules that require prosecutors to disclose information that may help the defense and allow defense attorneys to interview prosecution witnesses before trial.
"We handle cases the same as we did before the whole clemency issue. We reserve the possibility of pursuing the death penalty for the most heinous cases," said Jerry Lawrence, spokesman for Cook County State's Attorney Dick Devine.
Lawyers who help defend potential death penalty clients say their caseloads have changed little since Ryan emptied death row.
Richards and Jeff Howard, capital case coordinator for the Cook County public defender, said their offices are handling about 300 potential death penalty cases.
Howard said Cook County prosecutors have filed notices that they intend to seek the death penalty in more than 100 cases, which he suspects might be a bargaining chip.
"Though prosecutors are saying they are less apt to seek the death penalty, it appears they are still using it as a tool to hold over a defendant's head to bring about a possible plea agreement," Howard said.
Richards said the vast majority of death penalty cases are now settled before trial. Only five cases have gone to a jury this year, and only two ended with a death sentence, he said.
Anti-death penalty groups said they will continue their push to abolish executions as the legislature debates reforms and the Supreme Court considers a lawsuit by Attorney General Lisa Madigan and 10 state's attorneys that would return 32 inmates spared by Ryan to death row. Madigan, who expects a ruling by early next year, said she supports both the death penalty and the reform package that will go back to lawmakers during this fall's veto session.
"The fact is, our system will never be perfect. It's a basic principle that you don't kill innocent people, and once the public sees we can't guarantee that, it will lead to its abolition," said Jane Bohman, executive director of the Illinois Coalition Against the Death Penalty.
Ryan, who has been asked to help two European groups propose a United Nations resolution outlawing executions worldwide, said he has become more opposed to the death penalty since leaving office.
"I've pretty much decided that I don't see any purpose in the death penalty. For the most part, I think we would be a better place without it," said Ryan, who denied a 1999 appeal by Andrew Kokoraleis, the last person executed in Illinois.
Prosecutors and victims' families disagree, saying the death penalty is needed for both public safety and to reassure people when crimes shock a community.
"I look at it that it's a reality for an imperfect society. There are some individuals who represent such a risk to public safety. Most animals would be safer and more compliant in society than they are," said Tazewell County State's Attorney Stewart Umholtz.
Jacqui White of Bloomington, whose sister's killer was spared by Ryan's mass clemency order, agreed.
"I don't think it's about vindication or revenge. There's nothing that's ever going to bring her back. The main thing for me was preventing him from hurting someone else in the future," White said.
Coles County State's Attorney Steve Ferguson sent the first killer to Illinois' then-empty death row in February, when 27-year-old Anthony Mertz of Charleston was convicted of murdering Eastern Illinois University student Shannon McNamara in 2001.
Ferguson said he sought the death penalty for the first time in his 11 years as state's attorney because of the cold-blooded nature of the murder and evidence that linked Mertz to another killing two years earlier.
"It's not something that I celebrate, if you will, as a notch in the belt. But I guess what I feel good about is that we made the system work," he said.
Mertz was joined on death row in August by 61-year-old Curtis Thompson of Toulon, convicted in a 2002 shooting spree that killed Stark County deputy Adam Streicher and James and Janet Giesenhagen of Toulon.
 

Arbitrator: DOC captains move OK
Agency's action to fill lieutenant vacancies was within its authority
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
20 Sept  2003
The Illinois Department of Corrections acted within its authority when it allowed some department captains, who were slated for layoff, to fill lieutenants' vacancies, an arbitrator has ruled.
Arbitrator Harvey Nathan's decision, issued this week, was in response to a May 23 grievance filed by Council 31 of the American Federation of State, County and Municipal Employees. The grievance was against the state of Illinois and the departments of Corrections and Central Management Services.
The union's grievance contended that by permitting captains to move into lieutenants' vacancies, Corrections was violating its collective bargaining agreement with AFSCME. As a result, AFSCME said, its members were being cheated out of jobs and promotions because the former captains were taking up those slots.
But in his ruling, Nathan found it was "not a violation of the agreement for the employer to decide to open up the long-awaited lieutenant positions so that the displaced captains would have a place to go."
Captains used to be shift supervisors at prisons. But Gov. Rod Blagojevich, saying captains represented an unnecessary layer of bureaucracy, deleted from the new state budget the $17 million that lawmakers had put in to fund 230 captains' positions.
On Aug. 1, after a one-month delay, Corrections implemented a restructuring plan. Part of the plan involved creating a new post, "shift commander," to describe the employees who supervise prison work shifts.
The restructuring eliminated more than 200 captains' posts, but almost all of those workers landed other jobs within the agency. Some accepted promotions to shift commander. Others accepted demotions to lieutenant or correctional officer at an adult facility or youth supervisor at a juvenile facility.
In the grievance, the union said it didn't receive proper notification of Corrections' plan to lay off captains.
AFSCME asked the arbitrator to rule in its favor and to retroactively offer the lieutenant jobs to qualified bargaining unit employees. AFSCME represents Corrections lieutenants, but it didn't represent captains.
"We're very unhappy, obviously, with the arbitrator's decision," said Henry Bayer, executive director of AFSCME Council 31. "In the view of our attorneys, there's not much we can do about it at this point."
Bayer said the union still has two pending Corrections-related grievances, including one concerning the calculation of seniority for former captains who moved into correctional officer jobs.
Corrections spokesman Sergio Molina said the arbitrator's ruling "essentially affirms what we've already done."
"Operationally, it really doesn't change anything," he said.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Exporting U.S. Jobs
An engineered exodus of manufacturing and hi-tech jobs threatens to abolish the American middle class the bulwark of a free society.
 
by William Norman Grigg
September 22, 2003
 

We were middle class," lamented former textile worker Jimmy Bennett in an interview with the Washington Post, before hastily correcting himself: "We still are." Jimmy and his wife Verleen, residents of Kannapolis, North Carolina, were among the nearly 6,500 employees of the Pillowtex towel factory laid off in early August.
Just two years ago, reported the August 9th Washington Post, the Bennetts had bought a modest $100,000 home, "confident their combined wages would continue to support the comfortable lifestyle that had long eluded their parents." Like many of their former colleagues, the Bennetts, who both work part-time at near minimum wage, quickly sold many of their household amenities to get by on roughly half their previous take-home pay.
Thousands of other former Pillowtex workers "are fending off eviction notices, car repossessions and home foreclosures, and making difficult choices about which prescription drugs to skip and which utilities to turn off," reported the Post. "People are turning off cellphones, cutting cable TV, and pleading with creditors," added the August 5th Christian Science Monitor. "Already, 200 have had their water shut off."
The Monitor describes the Pillowtex closing as an event akin to a natural disaster. But it wasnt a destructive caprice of nature that shut down the plant. Rather, as the paper observes, the firm was overwhelmed by "a flood of imports from China." Resulting in the largest one-day layoff in the history of North Carolina, the Pillowtex bankruptcy dramatically exemplifies the devastation being wrought throughout Americas manufacturing economy as our trade deficit with Communist China grows.
As the Monitor reports, "Manufacturing businesses, from electronics to furniture and fishing lures, are closing their doors or moving production to China.... Three members of the presidents cabinet on a cross-country jaunt to promote the Bush economic plan have gotten an earful from angry businesspeople trying to compete with Chinese imports made by workers getting 50 cents an hour."
Charles Bremer of the American Textile Manufacturers Institute points out that as textiles from Communist China and Vietnam flood the American market, "People are moving jobs faster than you can count." In 2008, all import quotas on Chinese textiles will be removed. "At that point," predicts Bremer, "the Chinese will completely dominate the market."
Ironically, at least some of the future textile imports from China will probably be produced on looms from Pillowtexs Kannapolis facility but those looms will be in China, operated by Chinese workers. The August 7th Charlotte Observer reported that "looms and other machinery [from Pillowtex] likely will be removed from plants, packed and shipped to manufacturers in China, Pakistan, and India...."
Manufacturing in Decline
As the erosion of Americas manufacturing base accelerates, communities across the nation are experiencing economic ruin similar to that of Kannapolis.
This summer, 10 plants operated by the Hooker Furniture Corporation were shut down. These factories were shuttered even though the companys profits had grown in recent years "largely by outsourcing to cheaper manufacturers abroad," reported ABC News on August 14th.
"Every time weve asked them to step up, theyve done it," commented Hooker CEO Paul Toms of the employees who lost their jobs. "I feel like weve let these folks down, and I dont know what Id do different.... Its unlike anything Ive seen in my 21 years in the industry. A lot of plants have closed, people have been sent home, and it really has come quicker than anybody expected. I think its hard to say, three, four, five years from now, what will this industry look like domestically."
As with the American textile industry, our furniture industry is being decimated in uneven competition with low-wage nations like Communist China. The Chinese "have millions of people that theyre trying to have employed so its hard to fault them," Toms opines. "But I think that at some point, this country has to think about whats best for us.... You have industries and examples of predatory pricing. Thats the risk we run not just in furniture, but in any industry that were letting leave this country."
Andrew Brod is an economic analyst in Kernersville, North Carolina, where Hooker closed a plant formerly employing hundreds. He told ABC News that many American companies, rather than making capital investments in the U.S., have decided to "funnel investments abroad, many to China itself...." "Some have contracted with Chinese producers, but others have entered into joint ventures to establish new factories [and] to refurbish existing factories," Brod notes.
The closing of the Kernersville Hooker plant is already having a local economic impact. "If I dont work, I cant go out and spend money to shop or buy what I need, so thats going to put somebody else in jeopardy," observed former Hooker employee Mildred Stiles. Rather than being "that trickle-down thing," she continued, "I think its going to be more of a pour-down.... I think its going to hurt everybody concerned." In some economic circles, the phenomenon she describes is called the "race to the bottom" the sudden, rapid decline of an entire population from the middle class to near-subsistence living.
Our nations manufacturing sector has been the gateway to the middle class for untold millions of Americans, resulting in unprecedented national prosperity. What will America look like if manufacturing jobs continue to be outsourced to low-wage foreign competitors? Surveying Kernersvilles grim economic prospects, Brod declares: "In part, the answer to that question is, What sort of America do you see now? Its here already."
Grim portents abound for other manufacturing-dependent communities and for our nation as a whole. An academic study compiled in 2001 for the U.S.-China Security Review Commission and the U.S. Trade Deficit Review Commission reports: "In the months since the enactment of Permanent Normal Trade Relations (PNTR) legislation with China there has been an escalation of production shifts out of the U.S. and into China.... [B]etween October 1, 2000 and April 30, 2001 more than eighty corporations announced their intentions to shift production to China...." Since 1992, "as many as 760,000 U.S. jobs have been lost due to the U.S.-China trade deficit," with a comparable number of jobs disappearing because of outsourcing to Mexico. "The employment effects of these production shifts go well beyond the individual workers whose jobs were lost," continues the report. "Each time another company shuts down operations and moves work to China, Mexico, or any other country, it has a ripple effect on the wages of every other worker in that industry" in other words, accelerating the "race to the bottom."
The August 25th Financial Times reported that Communist China is "rapidly catching up with the U.S. as the worlds most popular location for foreign investment": Last year, China attracted a record $52.7 billion in foreign investment, "more than any other country." "China has been widely blamed in developed countries for flooding the industrialized world with cheap goods," commented Alan Ruskin of the 4Cast economic consulting group. "But Western investment is largely making this rise in productive capacity possible."
Mercury Marine, the manufacturer of small boat engines and the largest employer in Wisconsins Fond du Lac County, has announced that it "will shift some production to China within the next three years," reported the August 8th Appleton, Wisconsin, Post-Crescent. Five days earlier, the Milwaukee Journal Sentinel reported: "A small group of Mercury Marine employees from China are coming to Fond du Lac to tour the plant but not to take work to China, [company communications manager Steve] Fleming said." But at some American companies, such visits by Chinese employees have foreshadowed outsourcing manufacturing jobs there.
The northwest Indiana town of Valparaiso confronts the prospect of losing a local plant operated by Magnequench, an electronics firm acquired in 1995 by a consortium including Chinese industrial interests. If the plant is moved to China, 225 local residents will lose their jobs. Even more shocking is the fact that the Magnequench facility in Valparaiso "makes 80 percent of rare earth magnets used in smart bombs," according to the Chesterton Tribune.
The erosion of the U.S. industrial base "has enormous national security implications," reported the August 2003 issue of National Defense magazine. "It has made the United States so dependent on foreign countries for critical components and systems that it may have lost its ability to control its supply chains. The United States is becoming dependent on countries such as China, India, Russia, France and Germany for critical weapons technology. Its conceivable that one of these governments could tell its local suppliers not to sell critical components to the United States because they do not agree with U.S. foreign policy."
Writing in the June 2002 issue of Harpers magazine, business analyst Barry Lynn points out that many of Americas premier corporations including key defense-related firms now consider themselves "virtual companies" depending on a complex and widely dispersed network of suppliers around the world. Dell Computer, for example, assembles its computers out of 4,500 parts manufactured in various Asian countries, including Communist China. Dell an important defense contractor maintains an inventory sufficient for only four days production. If its supply line were interrupted for more than 96 hours, Dells Texas plants would cease production.
Simply put, "the U.S. industrial base is being taken apart, piece-by-piece, and relocated to other nations," conclude trade analysts Pat Choate and Edward Miller. "In the process, much of Americas industrial and military production base is being sold to foreign interests, and more importantly a significant portion of it is being physically relocated into other nations, including our most likely strategic rival China."
For more than a century and a half, Americas manufacturing economy attracted hardworking people from around the world eager to become Americans. Manufacturing jobs offered these new arrivals entrée into the middle class and helped them assimilate into our nations civic culture. But as former Treasury Department official Paul Craig Roberts points out, "The loss of high productivity jobs takes away the ladders of upward mobility and wipes out our human capital."
As our manufacturing base is being stripped away, Americans may someday find it necessary to emigrate to find manufacturing jobs. Case in point: A machinist employed for several years at a major Wisconsin-based multinational firm the father of a large family described to The New American how he was told by his employer that within several years he may have to "relocate to China" if he wants to keep his job.
A "Political Thing"
John C. McCoy, owner of Omnitech Technical Associates in Bellingham, Washington, commented to The New American that "China is being set up as the center of global manufacturing. They have a huge supply of cheap labor, cheap power, and very modern production facilities. Many, perhaps even most, of the Chinese-made products being unloaded on our docks and reaching our store shelves are assembled in automated plants, and dropped into shipping boxes without ever being touched by human hands." Many of those ultra-modern Chinese plants have been built by Japanese firms, but others have been built in recent years by U.S.-based multinational corporations.
McCoy, an activist with a group called Save our American Manufacturing (SAM), points out that outsourcing to China has exploded because of a chain reaction. "Once tooling capacity is lost, manufacturing simply has to move," he told The New American. "People running companies in this country generally dont want to go offshore. But once the process got started, it snowballed, because the specialized tooling capacity started to shut down and it takes a long time to re-tool, too long to remain competitive in this globalized economy."
Behind the Decline
McCoy describes our declining manufacturing base as "a political thing," rather than the result of market forces or irresponsible corporate greed. "Present American policy has lost touch with knowledge of how goods are produced," he contends. "America without the capacity to renew and invent products will perish. The most important key to our renewal, apart from the entrepreneurial spirit, is the ability to engineer, and make tooling. Under current trade policy these assets are quickly disappearing, being traded away. And once theyre gone, we may never get them back."
The Communist Chinese regime enjoys an unnatural competitive advantage over American manufacturers because it essentially employs slave labor. That advantage is compounded by our own governments perverse insistence on subsidizing, via the Export-Import Bank (Ex-Im), the relocation of U.S. corporations to China. The Ex-Im Bank was created by the FDR administration in 1934 for the purpose of encouraging business investment in the Soviet Union. Through Ex-Im, corporate investments in China are subsidized, and any losses incurred are socialized (that is, picked up by U.S. taxpayers) while the profits remain private and legitimate market competition is undermined.
Government-subsidized corporate relocation to China also accelerates the process described by McCoy, in which Beijings manufacturing sector "tools-up" even as ours "tools-down." As the May 1998 issue of Harvard Business Review reported, American companies seeking to do business in China "face many requirements to transfer technology or to export a certain percentage of their products made in China. Controls on foreign exchange keep them from moving funds freely out of the country."
"Every firm that sets up for production in China has to turn over its technology," Jerry Skoff, owner of Badger Metal Tech in Menominee Falls, Wisconsin, pointed out to The New American. "Intellectual property theft by the Chinese is very common. And any investment banker familiar with the Chinese system will tell people preparing to set up over there that they should pad their expenses by at least 40 percent to allow for the graft, bribes, and other payoffs involved in doing business over there." Given the pandemic corruption of the Chinese system, the federal governments role in socializing risks and losses for U.S.-based firms looms even larger.
Many U.S. companies were lured to China by the prospect of a vast, untapped consumer market. But rather than selling goods in China, American companies are exporting goods from there and completing the circuit by sending jobs and plants back to China. Consequently, observed Richard Bernstein and Ross H. Munro in their 1997 book The Coming Conflict with China, "China has been getting American investment capital and reaping windfall trade surpluses at the same time. As a result, China is one of the leading foreign-exchange-reserve countries in the world a bizarre situation for a poor and developing country."
Beijing benefits greatly from Chinas trade surplus because it can subsidize predatory trade practices such as directing subsidies into various manufacturing fields as a way of underbidding potential American competitors.
In an interview with the Christian Science Monitor, Jay Bender, owner of Falcon Plastics in Brookings, South Dakota, described "how one of his customers, a manufacturer of fishing lures, has decided to move its production from the U.S. to China.... [The fishing lure manufacturer] asked him to bid on molds to make the plastic bait. He bid $25,000 per mold. That was a competitive price, he said." However, the potential customer found a Chinese source charging $3,000 for each mold. "I cant even buy raw materials for that," Bender observes. "There are two possibilities: Either they are subsidized by the government, or they gave away the molds to get the manufacturing business." To remain in business, Bender has had to lay off nearly one-third of his workforce.
"Were killing ourselves," laments Jerry Skoff. "Bombs are falling, but people arent paying attention. Were being reduced from a manufacturing and hi-tech economy into a service economy and if things continue the way they are, the service sector will eventually go the same direction."
Abolishing the Middle Class
At the end of the process Skoff describes is the eradication of the American middle class derisively referred to as the "bourgeoisie" by Karl Marx. "Were basically liquidating our whole middle class, polarizing people on the two extremes, haves and have-nots," warned Roger Chastain, president of the Milliken & Co. textile firm, in an interview with the Durham Herald. "Well be a third world country."
"It makes me wonder if there is some merit to the conspiracy theory the idea that all of this is part of a deliberate scheme to wipe out the middle class," Jerry Skoff mused to The New American. "The middle class is always a pain in the neck where governments concerned. Its where you find most of the people who complain about taxes, regulations, and other policies. If you wipe them out, you just have the ultra-rich and the poor a perfect arrangement for a dictatorship."

Program could keep youths out of state prison

By RYAN KEITH
 ASSOCIATED PRESS
19 Sept 2003

Each year, hundreds of Illinois teenagers wind up in state prisons for serious and more mundane offenses. It costs the state big money and can lead youngsters to a lifetime of crime.
But state officials and youth advocates want to change that pattern. They are working on a program to offer financial incentives for counties that find alternative ways to discipline juvenile offenders.
Counties would agree to send fewer juveniles to state prisons and instead put them through community-based programs, such as substance abuse treatment or counseling.
In exchange, the counties would receive money for the programs from the state, which could save hundreds of millions of dollars in prison expenses.
"The current financial incentive is to send the kid to the state slammer because the state pays," said Rep. Barbara Flynn Currie, D-Chicago. "The idea is to see if different decisions would be made about miscreants."
The "Redeploy Illinois" program was approved by lawmakers this spring as state officials looked for ways to reduce spending in tight budget times. If lawmakers approve a change recommended by Gov. Rod Blagojevich, the program would get under way next summer.
The idea, modeled after an Ohio program, is to encourage counties to deal with problem children themselves.
"People do best in the communities that they know best," said Paula Wolff of Chicago Metropolis 2020, an advocacy group for the Chicago metropolitan region.
Redeploy Illinois isn't law yet. Blagojevich used his amendatory veto power last month to take out language detailing how the state and counties will share savings.
Supporters say this is one of several details that will be worked out in the coming year.
The juvenile population in the Illinois Department of Corrections has been dropping significantly, from nearly 2,200 inmates in 1999 to about 1,500 last year. A 1999 juvenile reform law helped cut back the numbers, prison officials said, and the overall prison population has been falling, too.
But the total cost of housing those minors has stayed about the same. The state will spend $112 million on youth prisoners this year, prison officials said.
Youth advocates and criminal justice experts say counties have a strong financial incentive to send juveniles to prison.
Putting young criminals in the local jail means the county pays, but shipping them to the Department of Corrections is free for the county. Some minors are sent to prison simply for court-ordered evaluations because their home counties lack the proper facilities.
That means youths who commit nonviolent offenses go to prison when what they need is counseling or treatment for addiction or learning disorders. That can have long-term consequences, advocates say.
"It may actually make them more violent sending them there," Wolff said.
In Ohio, nine counties saw a 42 percent decline in youths sent to state prison in 1994, the initial year of the program. The total number of youths sent to state prisons there since the program went statewide in 1995 dropped from 3,410 to 2,453 in 2001.
Ohio officials say there also has been some cost savings but cannot say yet exactly how much has been saved or diverted to local counties. Ann Liotta, spokeswoman for the Ohio Department of Youth Services, said many local programs have been started there and the program has been a "wonderful success" in reducing admissions to prison and improving cooperation among state officials and local judges.
Illinois is using the same basic setup and should see the same results, advocates say.
Counties that agree to cut the number of youths they send to state prisons by at least 25 percent would get a share of the money the state government saves on incarceration.
Counties first must get approval from the state Department of Human Services for their plan to reduce juvenile commitments, detailing which offenders could benefit from alternative disciplines and what services or programs could be provided. Juveniles who commit serious felonies still would be sent to prison.
The Department of Corrections estimates Illinois could save more than $235 million over 10 years if 325 youths are dropped from the system with all counties participating.
Even more important, advocates say, is giving local authorities the resources and authority to rehabilitate misbehaving youths.
"Part of the premise is to give the local jurisdictions more oversight," said Chip Coldren, president of the John Howard Association, a prison watchdog group. "If you get the right people involved at the right level, kids won't slip through."
Not everyone is convinced. Some critics say they applaud the idea but have problems with its execution.
Sen. Peter Roskam, R-Glen Ellyn, says he's concerned some youths will get off too easily for misdemeanors, such as sex offenses or domestic battery, that should bring prison time.
He also says lawmakers, not local officials, should decide how delinquents are disciplined.
"The legislature should be the body that says these are the alternatives to incarceration," Roskam said.
 

Senate spurns overtime plan
White-collar workers protected; White House threatens veto
  
 
By T. Shawn Taylor, Tribune staff reporter. Tribune senior correspondent William Neikirk contributed to this story
September 11, 2003
The Bush administration's effort to overhaul overtime rules suffered a major setback Wednesday after a divided U.S. Senate approved a measure to block rule changes that would deny many workers overtime pay.
The Republican-led chamber, defying a White House veto threat, voted 54-45 to attach an amendment to a $138 billion spending bill that would prevent the Labor Department from changing white-collar overtime exemptions under the Fair Labor Standards Act.
"Senate Democrats, joined by six Republicans, stood with working Americans and took a critical step toward turning back a Bush administration proposal to take overtime pay away from millions of people," said Sen. Tom Daschle (D-S.D.) "During these hard economic times, the last thing we should be doing is cutting Americans' pay."
But Wednesday's victory was only the beginning of a process, Daschle said, adding that the overtime debate is far from over.
The White House has threatened to veto the spending bill if the amendment, sponsored by Sen. Tom Harkin (D-Iowa), is attached to a compromise bill that has to be worked out among House and Senate members.
If the White House does block the spending bill, it could delay funding of U.S. health, labor and education programs, requiring a temporary spending bill and even more debate on the overtime issue.
Still, Wednesday's vote was hailed as a major--and rare--victory for pro-labor forces over the Bush administration. Critics of the Labor Department's proposed changes to white-collar overtime exemptions say it would strip 8 million workers--including nurses, firefighters and police officers--of overtime pay.
Administration officials deny those claims and have estimated 644,000 workers would lose overtime under the proposal but have said another 1.3 million low-wage workers would gain it.
The Harkin amendment keeps intact the part of the proposal that benefits low-income workers by raising the minimum yearly salary to $22,100 a year for workers to qualify for overtime.
In recent weeks, foes of the plan, which would change overtime eligibility rules in three traditional categories of workers--executive, administrative and professional, have campaigned to defeat the portions they don't like. Groups have organized protest rallies and bombarded members of Congress with e-mail messages to persuade lawmakers to block the new rules even before the Labor Department issues its final version.
"America's working men and women have won a tremendous victory," said John Sweeney, president of the AFL-CIO, the nation's largest union federation, which ran television ads in three states--Maine, Ohio and Missouri--in the past week to drum up support for the Harkin amendment.
House approval
Although the Senate vote represents a blow to the Labor Department's effort, it remains to be seen whether it will effectively block attempts to update the act, the Depression-era law that spells out which workers are eligible for overtime pay.
An attempt earlier this summer in the House to attach an identical amendment to the U.S. health, labor and education appropriations bill was narrowly defeated on a vote of 213-210. The Senate action means that a conference of members from both chambers will have to scramble to work out a compromise bill before Congress adjourns in late October.
Traditionally, the appropriations bill is supposed to be wrapped up by Oct. 1, or the start of the fiscal year for those departments.
Meanwhile, Labor Secretary Elaine Chao said the department plans to continue to update the overtime rules, done at the behest of employer groups who have complained for years that the current rules are confusing and antiquated. However, because of the Senate action, it is unlikely that any changes will go into effect by early next year as originally planned.
"The department's proposed reforms are long overdue. Unclear regulations hurt workers because the department's investigators find it difficult to fully enforce the current regulations, employers don't know what their responsibilities are, and workers don't know their rights," said Chao.
`Fuzzy science' alleged
Some employer groups on Wednesday expressed outrage over the Senate vote and urged Congress to allow the department to complete its regulatory process before trying to block it.
"Supporters of the Harkin amendment showed that they were more interested in supporting labor unions than in supporting workers," said Tracy Mullin, president and chief executive of the National Retail Federation.
In recent months, opponents and supporters have wrangled over the number of low-income workers who would benefit.
"The maximum it could be is 737,000. That's all the white-collar workers there are who are making less than $22,100 [a year] who are salaried and working more than 40 hours a week," said Ross Eisenbrey, an economist for the Economic Policy Institute, who accused the Labor Department of including blue-collar workers in its calculations to inflate the number to 1.3 million.
Supporters of the Bush plan say opponents are the ones inflating the numbers. Lawrence Lorber, an attorney for the U.S. Chamber of Commerce, accused the institute of using "fuzzy science" to arrive at its figure of 8 million workers who would lose overtime pay.
"It was unfortunate because I think [the Senate vote] was based on some misunderstanding as to the real impact of these proposed regulations," Lorber said. "The regulatory process should have gone forward."

Corrections settles labor dispute

By JOHN O'CONNOR
THE ASSOCIATED PRESS
10 Sept 2003
While state government wrestles with a budget deficit, the Illinois Department of Corrections must pay $4.5 million to settle a dispute with parole agents who were kept on call around the clock for nearly a year.
The settlement between the state and the agents' union is less than half what an arbitrator said the agents deserved, but more than double what the department offered.
The dispute began in July 2000 when Corrections ordered about 200 parole agents to carry pagers and respond when called - even if they were on vacation - or face discipline.
The agents argued that put them on "standby" status, entitling them under their contract to four hours' pay for each day on standby.
The order stood from July 25, 2000, until June 11, 2001, during the tenure of former Gov. George Ryan. The directive wasn't lifted until six weeks after an arbitrator ruled in May 2001 that Corrections had to pay. Had the department rescinded the order upon the arbitrator's decision, the state could have saved nearly $550,000.
"It was real arrogance," said Mike Newman, associate director of the agents' union, the American Federation of State, County and Municipal Employees. "The contract language was clear, and the Ryan administration should have known better."
The agency must pay $2.25 million by the end of 2003 and the rest between July 1 and Dec. 31 next year.
Corrections spokesman Sergio Molina did not know where the department would get the money, but said it could pay "without jeopardizing the operations of the agency."
In the May 2001 ruling, the arbitrator said the department should pay $9.5 million. Corrections then offered to pay $2 million.
A circuit court later overturned the arbitrator's ruling on appeal, saying an award should consider the state's ability to pay and how much time agents actually worked. The issue returned to the arbitrator, who directed the two sides to negotiate.
Molina could not explain Corrections' decision to settle and didn't know how many parole agents would get money. The state had fewer than 200 when the order took effect and about 340 a year later.
If 300 agents evenly divided the settlement money, each would get $15,000. All affected agents also will get a compensatory day off for each month they were on standby.
 

State's fifth private jail nearly ready
 
 
 
By Kit Miniclier, Denver Post Staff Writer
31 Aug 2003
Colorado's fifth private prison will open in Brush in September with the arrival of 90 female inmates from Wyoming, officials have confirmed.
The concept of running prisons for profit is controversial, but cost-conscious federal, state and local officials are increasingly turning to the private sector to finance, design, build and operate prisons.
Colorado's other private, for- profit prisons - in Burlington, Walsenburg, Las Animas and Olney Springs - are owned and operated by Corrections Corporation of America.
Two more private, for-profit prison facilities, in Colorado Springs and Pueblo, are in the design stage. They are intended to provide therapeutic treatment for adult parole violators to return them to society, said Alison Morgan of the Colorado Department of Corrections.

GRW Corp., named after founder Gil R. Wright, is opening the Brush facility, city officials and Morgan confirmed. The company has four prisons in Kansas, Illinois and Texas.
It is taking over an empty private prison site with a capacity of 250 inmates. GRW vice president Dick Mills says the company may eventually add another 500 beds.
The facility, formerly known as High Plains Youth Center, housed troubled youth. Colorado closed it in April 1998 after a 13-year-old inmate committed suicide and allegations of physical and sexual abuse surfaced. It was run by Denver-based Rebound Corp.

 
Officials remain mum on details of prison attack
By M.K. Guetersloh
Pontiac bureau chief
Saturday, August 23, 2003
PONTIAC -- Prison officials are still investigating how two Pontiac Correctional Center inmates chipped their way through a concrete block wall and attacked the two inmates in the neighboring cell.
One inmate was taken to OSF Saint James-John W. Albrecht Medical Center following the early Thursday morning attack. He remained hospitalized Friday, according to Illinois Department of Corrections spokesman Brian Fairchild.
The inmate has been transferred to another hospital, but Fairchild would not release the name of the inmate or say where he is hospitalized.
The names of the other inmates involved in the incident are also not being released, Fairchild said. He added that the names may become public record if charges are filed against the inmates.
Fairchild would not say when the investigation may conclude.
A tactical unit was called to remove the inmates from their cells Thursday after the incident.
The inmates involved in the incident were in the prison's disciplinary segregation unit, which houses virtually all of Pontiac's inmates. Inmates often are sent to Pontiac's unit because they have violated rules at other state prisons.
At Pontiac, a men's maximum-security prison, the inmates are locked in their cells 23 1/2 hours a day.
When an inmate violates the rules at Pontiac, the prison system still has alternatives for further discipline, including transferring the inmate to the stricter, more remote Tamms Correctional Center, the state's super-maximum prison in Southern Illinois, Fairchild said.
"Inmates can see the loss of good conduct credit, and there is always the possibility of facing administrative review to go to Tamms," Fairchild said.
Fairchild said he would not comment on the size of the hole is the inmates created. He also will not comment on how the hole was made.
"Once our investigation is completed, we will look at any procedures that may not have been followed and if we need to put more procedures in place," Fairchild said.
 

Officers charged
Fri, Aug 22, 2003
CHICAGO (AP) Federal authorities have accused three Illinois correctional officers of providing drugs to inmates at the Stateville Correctional Center in Joliet, and one of the officers is charged with having sex with inmates.
U.S. Attorney Patrick Fitzgerald announced the charges Thursday against former guards Robert Goodner, Tanya Flowers and Steven King.
The announcement followed a joint investigation by the FBI, Illinois State Police and Department of Corrections.
"It violates the security of the facility," Fitzgerald said of the alleged collusion between guards and inmates.
"We want people involved with gangs and drugs to be in jail, but not as employees," he said.
A fourth defendant not working at the prison is accused of supplying drugs to one of the guards. All four are from Chicago.
Goodner, 28, was arrested last December. Prosecutors charged him with smuggling cocaine, heroin and marijuana to nine inmates, six of them imprisoned for murder. He's also charged with fraud for denying his membership in the Gangster Disciples street gang on his job application, and for breaking prison rules by supplying a camera and cellular phone to an inmate, according to prosecutors.
Goodner is jailed without bail at the Metropolitan Correctional Center in Chicago. His attorney did not immediately return a call from The Associated Press.
Flowers, 32, is charged with engaging in sex with inmates on various occasions in 2001 and 2002 while another inmate acted as a lookout. The U.S. attorney's office also charged her with smuggling for allegedly bringing marijuana to one of the inmates and agreeing to handle crack cocaine for Goodner in December 2002, after Goodner was secretly cooperating with authorities.
Flowers is free on her own recognizance and remained for a time on the job at the prison to work as an informant for authorities after her January arrest, according to her attorney, Steven Hunter.
"She went through some difficult emotional times that caused her to make some poor choices," Hunter said Thursday.
 

AARP: Get parolees out of nursing homes
Corrections places medically needy inmates after release

By MARY MASSINGALE
COPLEY NEWS SERVICE

03Aug 2003

As she prepares her agenda for next year's legislative session, Donna Ginther of AARP lists one issue as a top priority: Getting paroled prison inmates out of Illinois nursing homes.
"I can just imagine paying a ton of money to keep Grandma in a nursing home next to a convicted felon," said Ginther, who serves as a lobbyist for the senior advocacy group.

Although little publicized, the Illinois Department of Corrections has been paroling "medically needy" inmates into nursing homes for years. The department, which is required by law to release inmates once they've completed their sentences, places ex-prisoners who are not able to care for themselves and have no family willing to take them in into long-term care facilities. The inmates' care is paid for by Medicaid, the state-federal health insurance program for the poor.

A DOC spokesman said the program averages 20 to 50 parolees on any given day.

"What's the difference with these guys the day before they go off parole and the day they do?" said DOC spokesman Brian Fairchild. "The bottom line is if they are dangerous, we wouldn't recommend that they be placed there."

But an advocate for nursing home residents questioned the medical needs of the parolees and the screening process that places the inmates.

"The guy who's dying of cancer, I don't have a problem with," said Wendy Meltzer, executive director of the Chicago-based Illinois Citizens for Better Care. "It's the 29-year-old psychotic I'm arguing about."

Fairchild said the average age of the 33 parolees currently in nursing homes is in the 60s, although the ages range from 30 to 80. Of the 33, 25 suffer from physical problems as diverse as cancer, paralysis, glaucoma, blindness, Parkinson's disease, hepatitis C and HIV. The remaining eight parolees suffer from mental illnesses primarily caused by lifelong substance abuse, Fairchild said. They have been placed in nursing homes with special wards for mental illness.

The inmates' offenses cover the gamut of the criminal spectrum, according to Fairchild, including minor drug offenses, armed robbery and murder, although no murderers are currently in nursing homes.

The screening process used to determine placement involves officials from the Departments of Corrections, Aging and Human Services. Fairchild said a nursing home is selected for its ability to serve the parolees' needs and its closeness to family members.

Fairchild declined to give specific locations, citing the confidentiality of parolee cases, as well as federal rules on the privacy of health information.

However, of the 33 current parolees, 20 are in 14 nursing homes in the Cook and Will county area. Seven inmates are housed in three homes located in the northern part of the state, extending from Bloomington to Rockford. Five parolees are staying in four homes in the central region of the state, extending from Quincy to Danville and south to Hillsboro. The remaining inmate is in a home near the Metro East area.

Both Ginther and Meltzer say parolees with health problems should be housed in a separate facility, away from the elderly.

"We're putting strong, young parolees known to be violent in with the frail elderly," Ginther said.

Fairchild said he knew of no reported incident in which a parolee in a nursing home had attacked a resident. However, the agency just started compiling statistics on inmates paroled to nursing homes slightly more than a year ago.

A well-publicized 2001 incident in a Cahokia nursing home in which a 44-year-old mentally ill patient sexually assaulted a 78-year-old female resident did not involve a parolee, said Department of Public Health spokeswoman Tammy Leonard.

However, it was during that investigation that Public Health found four unsupervised parolees in the nursing home - the first time the agency learned of the DOC practice, Leonard said. Public Health investigators also discovered some of the inmates had been convicted of sexual assault. Fairchild said sex offenders are no longer eligible for the nursing home parole program.

Public Health surveyors are now given a list of parolees during the nursing home's annual inspection to check that inmates are getting proper care and supervision. If a parolee's actions cause a nursing home to be cited by Public Health, the facility administrator is responsible for correcting the problem - even if that means removing the parolee.

Leonard said a nursing home can turn away any potential resident only if it can prove it cannot serve the resident's needs. With Illinois nursing homes running at about 83 percent occupancy, Meltzer said she doubts any nursing home administrator would turn away a parolee.

"They'll take anybody they can get," Meltzer said.

Public Health regulations do not require nursing home administrators to tell the public about the criminal background of any patient. However, Fairchild said administrators and residents can get rid of a troublemaking parolee simply by calling the Department of Corrections.

If ex-inmates violate their parole in any way - including walking away from the nursing home - they are returned to prison. Although no violations had been reported within the last year, Fairchild said, inmates who had violated parole in the past were removed from the nursing homes and placed in prison infirmaries.

He advised concerned family members to check the names of any suspected residents with the Department of Corrections' Web site (www.idoc.state.il.us).

Meltzer said she finds little comfort in his advice.

"Do you really want to mix parolees in a hallway with your mother?" she said.

Mary Massingale can be reached at 782-6882 or mary.massingale@sj-r.com.

 

Most DOC captains land new posts
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
02Aug 2003
 
The Illinois Department of Corrections eliminated more than 200 captains' jobs Friday, but nearly all of those employees have landed different positions at the agency.
Still, the administrative restructuring "absolutely" will save the state money, Corrections spokesman Brian Fairchild said. He couldn't provide an estimate.
"There will be less bureaucracy in that structure, and that will result in savings," he said.
The reorganization at Corrections was triggered by Gov. Rod Blagojevich's decision to remove from the budget about $17 million that would have paid the captains. Blagojevich said the captains represented an unnecessary layer of bureaucracy.
In the new administrative setup, the former job ranks of unit superintendent, major and captain no longer exist. The department created a new title, shift commander, to describe employees who supervise prison work shifts.
There are 111 shift commanders. Previously, captains served as shift supervisors at prisons.
The restructuring originally was to start July 1, when the state's new fiscal year began, but it was postponed by a month.
Of the 216 captains who were subject to layoffs, all but eight found other Corrections jobs, Fairchild said.
One ex-captain, Austin Randolph, was
promoted to assistant warden at Logan Correctional Center in Lincoln, Fairchild said.
Fifty-four former captains accepted promotions to shift commander, and 153 other former captains accepted demotions to various positions. Of those 153, 83 moved into lieutenant jobs, 65 into correctional officer jobs and five into youth supervisor jobs at the state's juvenile facilities.
Eight other former captains were offered positions within the department, but they opted for layoff, Fairchild said.
Corrections' restructuring has drawn criticism from Local 31 of the American Federation of State, County and Municipal Employees, a union that represents prison workers.
"Our members are very angry at the administration for doing this," said Henry Bayer, executive director of the union local.
Union members believe their contract with the state is being violated, Bayer said. Also, union members are being cheated out of jobs and promotions because the former captains have moved into positions that should have gone to AFSCME members, he said.
AFSCME filed a grievance to protest the movement of Corrections captains into lieutenants' vacancies. The union represents lieutenants, but it didn't represent captains.
The grievance is headed to arbitration Aug. 18, Bayer said.
He also criticized the new Corrections setup for failing to include a sufficient number of shift commanders.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

White stops raises, overtime
Union may take secretary of state to court
By DOUG FINKE
STATE CAPITOL BUREAU
31 July 2003
 
 
Secretary of State Jesse White has frozen salaries for thousands of his workers and eliminated overtime to compensate for budget cuts made by Gov. Rod Blagojevich.
Additional spending reductions are coming and could result in the layoff of as many as 250 people, along with the closing of up to 10 secretary of state facilities, according to union representatives apprised of the plan.
However, White spokesman Dave Druker said Wednesday that no one in the office had yet been laid off nor had any facilities been closed. Though likely, the layoffs and closures probably wont happen until fall, he said.
The cost-cutting measures implemented by White up to now already are bringing threats of a lawsuit from the Service Employees International Union Local 73, which represents about 2,300 of Whites 3,450 employees.
The SEIU members were supposed to receive a 4 percent pay raise July 1 as part of their contract with the secretary of state. White eliminated that raise, as well as raises for workers belonging to the Fraternal Order of Police and the Teamsters and cost-of-living adjustments for non-union employees.
They (Whites office) indicated that it is their belief that due to the nature of the cuts, they were required to implement the pay freeze, said SEIU Local 73 president Christine Boardman. We dont necessarily concur. These are not the most highly compensated people.
Boardman said the union could be in court as early as next week trying to force payment of the raises. The union contends that White cannot unilaterally eliminate a contractual pay hike.
Druker said the office had little choice but to cancel raises in the face of Blagojevichs budget cuts.
At this point, we dont see any other options unless the money is restored, Druker said. My understanding is we have the authority to withhold those pay increases for lack of resources.
Lawmakers could intervene during their veto session in No-
vember if they vote to restore to Whites budget the money Blagojevich cut. If that doesnt happen, Druker said, another 2 percent pay hike for SEIU workers scheduled for Jan. 1 will be canceled.
Overtime pay for all secretary of state employees also was eliminated. Much of the overtime was paid to union workers in drivers license facilities who served customers beyond normal hours.
The previous policy was if a person was in line at closing time, we would take care of them, Boardman said.
Thats not going to happen any longer. Instead, facility managers will give warning to customers that the office is closing at quitting time regardless of who is in line. At one Chicago facility last week, 100 people were forced to come back another day.
Its going to be a huge inconvenience for the public, Boardman said.
Druker said the office knows of only the one instance in which a large number of customers were turned away.
As for further belt-tightening, Boardman said she was told by Whites staff that up to 250 people will be laid off and 10 facilities closed as additional spending reductions are implemented.
White has said all along that layoffs and facility closures will be necessary, Druker noted, adding that both the layoffs and closures are still under review.
My guess is we are still a little ways off on that, he said. At a minimum, we are looking well into the fall.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

State employees no longer monitoring television newscasts
Springfield (AP)
 30 July 2003
Prison workers will no longer be required to videotape and review television newscasts.
  Gov. Rod Blagojevich drew criticism last week for using state employees with the Corrections Department to monitor daily news brodcasts.
Blagojevich spokesman Cheryle Jackson said on Monday that the work has been reassigned to a network of voluteers.
Blagojevich's office said the practice helps him keep track of different issues in different areas of the state. But critics contended that paying state employeesto watch television was a waste of resources at a time when agencies are dealing with budget cuts.
The corrections Department has lost more than 3,000 employees to layoffs and early retirement in roughly a year.
Corrections spokesman Sergio Molina said employees at five sites had been taping and reviewing newscasts. He said they were informed of the change on Friday.

Maintaining gov's vanity
Rich Miller
27 July 2003
In yet another example of how obsessed Governor Rod Blagojevich is about his public image, even during "the worst fiscal crisis in the state's history," the governor is requiring state employees to videotape and review local TV news broadcasts about him seven days a week on state time.
In one instance, a prison psychologist was ordered by his warden to review the tapes "for any news casts concerning Governor Blagojevich."
A source gave me a May 14th memorandum from the warden of the East Moline Correctional Center, Ian Oliver, which spelled out the duties for Dr. Keith Frainey. I published the contents of the memo last week in my newsletter, and several media outlets picked it up. A few papers outright stole it (including the Chicago Sun-Times), not identifying the original publication at all, and many didn't get the whole story, so here it is.
Dr. Frainey was informed in the memo that newscasts were currently being taped for Quad Cities channels 4, 6, 8 and 18. According to the memo, channels 4, 6, and 8 "are taped at 5:00 pm, 6:00 pm, and 10:00 pm." Channel 18 "is taped at 9:00 pm." That would be at least five hours of news broadcasts every day, seven days per week.
"Mr. Frainey has been appointed to review these tapes on a daily basis for any news casts concerning Governor Blagojevich," the warden wrote. "Where there is information on a tape complete the attached form and route the tape to the Warden's Office by 9:15 am."
Two prison counselors, Mike Weaver and Jeff O'Brien, "have been appointed as back ups," according to the memo.
Their union complained about the new duties, and the orders were changed. Management personnel are now taping the broadcasts.
Blagojevich spokesperson Cheryle Jackson defended the videotaping, although she did agree that requiring a psychologist to review at least five hours of TV newscasts every morning was probably not the right move.
Despite the specific wording of the DoC memo about tracking TV stories "concerning Governor Blagojevich," Jackson denied that state employees were being used to monitor broadcasts solely about the governor. The employees are looking for coverage about all state agencies, she insisted.
Jackson also reasoned that using state employees and several VCR's and televisions in each facility to monitor the broadcasts actually saves the state money because video clipping services charge "thousands of dollars a month." The governor, she said, "is trying to do more with less." The other option, of course, would be to not tape the programs at all - something Jackson never mentioned.
Jackson claimed that the Department of Corrections "already monitors their media around the state. So, we thought we would partner with Corrections to monitor the coverage."
A spokesperson for Corrections confirmed the department has checked its own coverage "for years," but, when pressed, admitted it was not a daily, ongoing project. Broadcasts were taped usually when the department knew a story would appear, the spokesperson said. The practice of daily monitoring started since the governor took office.
So, why is the governor's office doing this? Jackson explained that they were just following normal business practices. "Any company does this," she said.
Jackson also claimed the video clips give the governor's office "one means of knowing what state agencies are doing, what's getting covered."
"When the media raises an issue, sometimes it's the first we're learning of it," Jackson said, adding the videos are "sometimes a wealth of information for us."
Jackson also pointed out that the state has collected newspaper clippings on a daily basis "for eons." Those duties are handled by the Illinois Information Service.
Jackson said she didn't think it was unreasonable for someone in an agency's public relations office to monitor the broadcasts. But not every regional state office has a PR person, and the current East Moline monitoring is not being handled by a public relations person, according to the department.
Jackson did not know offhand how many state offices or state employees were monitoring news broadcasts seven days per week, but Illinois has several downstate TV markets besides the Quad Cities and Quincy. Rockford, Peoria, Metro East (via St. Louis), Carbondale, Decatur, Springfield, Bloomington and Champaign all have television stations. And then there's Chicago.
The governor said recently that he was hiring auditors to find waste in government and get rid of excess employees. Their first recommendation should be to stop using state workers to puff up the governor's vanity.
 

Governor defends using prison staff to tape news
 
BY CHRIS FUSCO Staff Reporter
 
 
July 25, 2003
 

Responding to criticism from Republicans over his use of state prison workers to tape television news broadcasts, Gov. Blagojevich on Thursday defended the move as an exercise in good government.
"This is another example of changing the way business is done," Blagojevich said on Chicago's Near West Side after signing legislation that bolsters funding for preschool programs. "This is a way of bringing government outside of the closed rooms in Springfield and understanding what communities are facing."
Republican lawmakers have blasted the initiative in light of the state Corrections Department recently losing nearly 2,500 workers to layoffs and early retirements. The Democratic governor, they say, has no business asking prison employees around the state to tape newscasts and then send the tapes to the governor's office.
The American Federation of State, County and Municipal Employees, which represents prison workers, also lit into the governor.
"I always thought the job of corrections was to watch inmates, not to watch TV," Henry Bayer, executive director of AFSCME Council 31, told the Associated Press.
Blagojevich dismissed the criticism, noting he isn't the first governor to pay attention to television newscasts around the state.
"We've expanded what previous administrations have done without costing the taxpayers any money," he said. "It's part of asking people to multitask so you can do more with less. . . . We're downsizing government; they're doing more than just the traditional job description."
 
 
 

 
 

Governor OKs most of budget
Rushville prison funds in $221 million cut

4 July 2003
By Doug Finke
State Capitol Bureau

Gov. Rod Blagojevich signed most of the state budget into law Thursday, but not before slicing more than $221 million from it, including money to open a prison in Rushville.

Blagojevich slashed more than $48 million from Secretary of State Jesse Whites budget and nearly $2.5 million from Treasurer Judy Baar Topinkas budget. The cuts are deeper than White and Topinka were willing to accept earlier this week when Blagojevich demanded that they make reductions.

The administration had previously announced many of the other cuts Blagojevich made Thursday. They include eliminating money to give judges, lawmakers and top state officials pay raises and eliminating money for Department of Corrections captains positions. Blagojevich also plans to cut, but not eliminate, funding for regional superintendents of education, although he did not act on education funding legislation Thursday.

However, Blagojevich also made a number of new cuts Thursday, including $20 million for state employ-

-ee health insurance, about $22 million in Department of Human Services grants, $6 million in student assistance grants and $5.3 million in grants from the Department of Public Health.

Many difficult decisions had to be made because of the fiscal mess I inherited, Blagojevich said in a press release announcing the budget action.

But some of those decisions were harshly criticized Thursday. White said Blagojevich reneged on a promise made at a Tuesday meeting not to cut his budget by more than 3 percent.

We left the meeting with the understanding it would be a 3 percent decrease, White said. I dont like people bargaining with me in bad faith. This is the first time Ive ever been treated this way.

Blagojevich eliminated a $27 million increase White was supposed to receive and then cut an additional 7.5 percent of what was left. White said he already had talked with House Speaker Michael Madigan, D-Chicago, and Senate President Emil Jones, D-Chicago, and has been assured they will restore the money during the General Assemblys fall veto session.

Topinkas budget also was cut 7.5 percent, even though she told Blagojevich the office could only absorb a 3 percent reduction.

We dug down deep for the 3 percent, said Topinka spokeswoman Carolyn Barry Frost. He accepted that, and then he turned around and changed his mind. Hes not a man of honor and hes not a man of his word.

The deeper cuts could very well mean layoffs and service cuts, Frost said.

Hes going to put hardworking people out of work because of his pork projects, Frost said, referring to member initiative grants the governor awarded last week.

Blagojevich spokesman Tom Schafer said the only grants the governor awarded last week involved bond money that could not be used to pay employee salaries.

Attorney General Lisa Madigans budget was only cut by 3 percent because she successfully argued that her office is involved with public safety issues. Comptroller Dan Hynes previously agreed to a 7.5 percent reduction.

Blagojevich cut $7.3 million that was supposed to pay for opening a Department of Corrections youth center in Rushville and to reopen a work camp in Paris. Money to reopen work camps in Hanna City and Greene County and to turn the Sheridan Correctional Center into a drug treatment facility is still in the budget.

Sen. John Sullivan, D-Rushville, said the money Blagojevich cut would have enabled the youth center to open in April and employ 275 people, a potentially huge impact for the area.

I am not going to give up on it, Sullivan said. We will get it open.

Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees, said the union will push lawmakers to restore funding for the Paris work camp.

I thought we had an agreement (with Blagojevich) to reopen all three, Bayer said.

Schafer said many of the cuts involved money the General Assembly added at the last minute. He said the Department of Central Management Services assured the governor that the $20 million for state employee health insurance wasnt immediately needed to pay bills.

Blagojevich has yet to sign the budget for elementary and secondary education, which contains money for regional superintendents of schools. He is expected to sign it Monday.

Blagojevich originally wanted to eliminate money to pay the salaries of all 45 regional superintendents. However, lawmakers balked at the idea and restored $17 million. Blagojevich plans to cut that to $11 million.

The governor wants the regional superintendents to develop a plan to eliminate half of their jobs. The next election for regional superintendents is in 2006.

P.E. Cross, president of the Illinois Association of Regional Superintendents of Schools, said members of the organization agree with the governors plan, although they understand it comes with a price.

I would say there will be some cutbacks in some services, Cross said. We realize the dilemma of the state on the fiscal side.

Blagojevich also has yet to act on the capital budget, which pays for state building projects. Lawmakers added some of those projects - such as prisons at Grayville and Hopkins Park - even though Blagojevich wasnt in favor of them.

Schafer said it is too early to say whether Blagojevich will veto those projects. Many of the budget cuts Blagojevich made Thursday involved money that lawmakers added above what Blagojevich requested.

The legislature put too much money in the budget, above and beyond what the governor requested, Schafer said.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

 
 
Trading Away Jobs and Liberty
Though billed as a boon to the U.S., the General Agreement on Trade in Services will, in reality, wreak havoc on our economy, sovereignty, and way of life.
by William F. Jasper
June 30, 2003

Outsourcing," "offshoring," "human resource realignment," "training your replacement." These are words that send chills through millions of workers in IT ("information technology") and other hi-tech industries. They also send waves of anger and depression. In the tragic case of Kevin Flanagan, they are being blamed for his suicide. For months, the 41-year-old Silicon Valley software programmer had been anticipating a layoff announcement from his employer, Bank of America.
"He knew that Bank of America was sending jobs overseas," Contra Costa Times reporter Ellen Lee wrote in a May 13th article. "He had seen his friends and coworkers leave until only he and one other person remained on the last project Flanagan worked on." On the April afternoon after he had been told his job was terminated, Kevin Flanagan went outside and shot himself dead in the parking lot of the Bank of Americas Concord Technology Center.
Most of the newly displaced hi-tech American workers will not react in as extreme a manner as Kevin Flanagan, but the devastating economic, social, geo-political, and psychological impacts of this developing trend will prove to be huge.
Hundreds of thousands of American IT workers have lost their jobs in the past several years to foreign replacements through the L-1 visa loophole, or the similar H-1B visa program. American software engineers, computer designers, technicians, electrical engineers, and other hi-tech employees are feeling the downside of globalization. These professionals who invested in education and thought they had secure futures in the tech and service industries have had a rude awakening. They have been getting pink slips and joining the unemployment lines, along with auto workers, steel workers, assembly-line workers, loggers, and other low-tech workers. They are being replaced by low-wage workers on computer terminals working from India, Pakistan, and China.
Starting in the 1970s and accelerating in the 1980s and 90s, millions of American blue-collar manufacturing and resource industry jobs were lost as U.S. companies relocated factories to cheap labor markets like Mexico and Communist China. Now the white collar jobs are on the line. Analysts are predicting that millions of these high-end jobs will vanish from America in the next several years. A study by Forrester Research Inc. predicts that at least 3.3 million white-collar jobs and $136 billion in wages will shift from the U.S. to low-cost countries by 2015. However, if the so-called free trade onslaught of the Clinton and Bush administrations is allowed to continue, the devastating impact could be even greater than that, and could occur much sooner.
The Coming FTAs
Congressman John Mica (R-Fla.) has introduced legislation to rein in the L-1 visa program, which currently allows U.S. companies to transfer foreign employees from overseas branches or subsidiaries to the United States and then contract them out to replace American workers. But Rep. Micas legislative effort and others like it may have negligible impact if the multitude of Free Trade Agreements (FTAs) now being completed by the Bush administration go into effect.
On May 6th, President Bush signed the Singapore Free Trade Agreement, which (if approved by Congress) would allow an unlimited number of "temporary" workers from Singapore to enter the United States. The new Singapore FTA states: "A party shall not: (a) as a condition for temporary entry [of intra-company transferees] require labor certification tests or other procedures of similar effect; or (b) impose or maintain any numerical restriction relating to temporary entry."
"Even before Congress can get around to curbing the abuses of the L-1 visa program, the administration is already looking for ways around any limits that might be set on the number of low-wage high tech workers who can be brought into the country," charged Dan Stein, executive director of the Washington, D.C.-based Federation for American Immigration Reform (FAIR), in a June 2nd news release. "The language of the Singapore FTA, if it is replicated in trade agreements with other countries, will institutionalize the abuses that have been widely reported" in the major media, Mr. Stein cautioned. "Control over employment-based visas will effectively be taken out of the hands of the peoples elected representatives," he noted, and transferred to corporate executives and foreign politicians in Singapore, Bangalore, Lahore, and Beijing.
As the history of the H-1B and L-1 programs has shown, many of these temporary workers overstay their visas and join the already massive pool of illegal aliens competing with U.S. citizens for a dwindling job base. The Singapore FTA would also impact U.S. employment by accelerating the trend of "outsourcing" and "offshoring" jobs currently held by American workers.
On June 6th, U.S. Trade Representative Robert Zoellick signed a similar FTA with Chile, on behalf of the United States. A June 6th news release from Zoellicks office states: "The agreement offers new access [to Chilean markets] for U.S. banks, insurance companies, telecommunications companies, securities firms, express delivery companies, and professionals." But what the release doesnt say is that this wont translate into jobs and prosperity for American workers. The "U.S." corporations that will be doing business in Chile will use an increasingly international labor force working by telephone and computer modem from Asia, Europe, and Latin America.
GATS Targets Everyone
Other bilateral and regional agreements are pending. One of the most far-reaching multilateral trade agreements now under negotiation, the General Agreement on Trade in Services (GATS), threatens to swell the tide of foreign workers to our shores and greatly speed up job outsourcing. Every bit as important as the job and immigration dynamic, however, is the GATS threat to our national sovereignty and our system of constitutional federalism. GATS will subject the U.S. to innumerable charges of trade restriction violations that arbitrators appointed by the World Trade Organization (WTO) will adjudicate. Thousands of federal, state, and local laws and regulations will become "illegal" under the GATS regime.
GATSs potential impact on the states is enormous. Under the U.S. constitutional system, the national government in Washington, D.C., is narrowly restricted to the exercise of specific, delegated powers having to do primarily with national defense, diplomacy, international trade, postal service, patents, etc. The individual states, on the other hand, reserved to themselves the vast majority of governmental powers concerning criminal and civil law, commercial relations, contracts, business regulation, professional standards and licensing, etc. Each of our 50 states enacts its own laws and regulations governing these matters. Since the Civil War, the federal government has been encroaching, unconstitutionally, on more and more of these states rights. Now, the internationalists in the Bush administration are preparing to take this process to the global level, positioning the WTO to encroach on the states authority to an incredible degree.
The General Agreement on Trade in Services will affect virtually all service industries and service jobs, which means virtually all American businesses and jobs. The Office of the U.S. Trade Representative, which takes the lead in negotiating trade agreements, provides this answer to its own question, "What are services?":
Services are what most Americans do for a living. Service industries account for nearly 80 percent of U.S. employment and GDP. U.S. exports of commercial services (i.e., excluding military and government) were $246 billion in 1998, supporting over 4 million services and manufacturing jobs in the United States.
GATS targets all of these service industries, including insurance, banking, legal services, accounting, engineering, teaching, real estate, tourism, consulting, energy distribution, transportation, telecommunications, courier and postal services, and much, much more.
Most state laws governing these industries and professions are certain to come under concerted attack from member nations of the WTO. In fact, secret negotiation documents leaked from the European Union show that the EU is angling to have the Bush administration force the state governments in the U.S. to eliminate those laws that the Europeans consider to be unacceptably "discriminatory."
Concerning accounting, auditing and bookkeeping services, the EUs executive branch, the European Commission (EC), calls for opening U.S. markets by striking down many state laws. For instance, the leaked EC proposals say, in typical bureaucratese: "Obligation of establishing an in-state office in several States. EC Request: Remove this requirement." In identical bureaucratese, the EU/EC politicians call for removal of state residency requirements.
Similar proposals hold for engineering services. The EU objects to: "In-state residency requirement in Idaho, Iowa, Kansas, Maine, Mississippi, Nevada, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and West Virginia." Again, the EC bureaucrats say: "Remove this requirement."
The same goes for insurance services: "All States require in-State residency for surplus lines brokers and agents. EC Request: Eliminate this restriction."
Likewise, the EU insurance proposals call for removal of state laws requiring "U.S. citizenship and residency for members of the board and incorporators."
The EU objects that our incredibly lax immigration standards are too onerous, claiming: "Difficulties are experienced as a result of the length of time to process H1B visas." The EU complains that state governments unfairly restrict foreign acquisition of land, specifically calling for removal of "restrictions on ownership or purchase of land by non-US citizens in South Carolina, Oklahoma, Florida, Wyoming and Mississippi." Likewise it wants to see an end to "restrictions on purchase of public lands by non-US citizens in Hawaii, Idaho, Mississippi, Montana and Oregon."
The European GATS negotiators call for eliminating state laws requiring U.S. citizenship for real estate brokers and take the U.S. to task for not removing state regulations concerning land surveying, aerial surveying, aerial map-making, printing and publishing, translation services, marine dredging, distribution of alcoholic beverages and military equipment, distribution of drinking water, waste water management, solid waste management, and a myriad of other services.
You can be sure that once these sectors are penetrated, GATS will be expanded to cover all other service jobs and professions: doctors, nurses, dentists, medical and dental technicians, anesthesiologists, veterinarians, chiropractors, beauticians, architects, teachers, financial planners, electricians, stock brokers, etc. All state laws concerning regulation and certification of these professions will be up for challenge in the WTO.
GATS is an especially dangerous agreement because it is not a single fixed document; it is an open-ended, ongoing process that commits the U.S. and all other 146 member nations of the WTO to a continuous progression of negotiation and revision. Thousands of invisible WTO/GATS negotiators are ever-busily rewriting state and national laws in secrecy. Although WTO and UN internationalists pretend to favor complete openness in government and are fond of using terms like "transparency" and "accountability," GATS demonstrates the complete hollowness of their claims. Each round of GATS has been conducted in secret negotiation sessions that last for years, and the documents that have emerged are couched in deceptive, ambiguous verbiage.
Federal System Under Attack
The EU has proven itself very aggressive in using the WTO to challenge U.S. laws and policies in the past. That history, together with the leaked EU proposals for GATS, provides plenty of warning that the Europeans will use all of their weight in the WTO to attack state and local laws that impede their penetration of our markets.
Of course, the EU proposals to their U.S. counterparts that the state laws and requirements in question be "removed," "eliminated," or "harmonized" show, at best, an ignorance of the constitutional division of powers between our national and state governments. The White House, even with the agreement of Congress, cannot constitutionally force the states to yield on these matters. To do so would be nothing less than blatant usurpation. The only way legally to effect the EUs proposals under GATS would be through deliberately amending the U.S. Constitution to transfer those state powers to the national government.
However, because the U.S. is already a signatory to earlier GATS agreements and commitments, the avid globalists in the U.S. argue that we are bound to conform to developing international trade standards, even if they conflict with our constitutional law.
They point, for instance, to the WTO "Disciplines on Domestic Regulation in the Accountancy Sector," adopted in December 1998. Paragraph 2 of that agreement holds that WTO member nations "shall ensure" that measures relating to "licensing requirements and procedures, technical standards and qualification requirements and procedures are not prepared, adopted or applied with a view to or with the effect of creating unnecessary barriers to trade." Members also agreed to ensure that "such measures are not more trade-restrictive than necessary to fulfill a legitimate objective." How will the WTO interpret "not more trade-restrictive than necessary" in relation to our state laws? We do not know, but there is a strong likelihood that it would not be favorable to our states. What are "legitimate objectives?" According to the WTO, they are: "The protection of the consumers (which includes all users of accounting services and the public generally), the quality of the service, professional competence, and the integrity of the profession." But, again, the interpretation will be decided by WTO one-worlders.
Some state legislatures and legislators are expressing concern, albeit belatedly, over the looming threat GATS poses to their authority. In a March 24, 2003 letter to Robert Zoellick, President Bushs U.S. Trade Representative, the National Conference of State Legislatures (NCSL) noted that it "supports international trade agreements that generate jobs and economic growth in our communities, provided that the agreements respect the constitutional and traditional authority of state and local governments." The NCSL said it is concerned that negotiations are proceeding under GATS "without a full understanding of the impact of GATS on state and local authority."
The NCSL letter noted that there are problems with conflicting and ambiguous definitions. It said: "GATS covers government-provided services if the services are commercial or if they are procured with a view to commercial resale. The WTO Secretariat has taken the position that merely charging ratepayers for a service is all it takes to make the service commercial, regardless of whether the charge is for a profit." The NCSL letter then asks: "Is there any unambiguous interpretation of which public services are commercial and which are not?"
While announcing again its support for international trade liberalization, the NCSL specified that trade agreements "must first be harmonized with traditional American law and values of Constitutional federalism." "Great care must be exercised," it continued, "to protect state laws and authority from unjustified challenges that will predictably result from the broad language of trade agreements."
Twenty-six Democrat members of the California legislature signed a March 28th letter to Mr. Zoellick expressing many of the same concerns. "This far reaching trade agreement of the WTO could have profound implications for our state and municipal lawmaking authority, specifically on our ability to fulfill our obligations and our authority to govern, legislate and regulate for the benefit of our communities and for the broader public interest," the letter stated. Among those signing the letter were Senate Majority Leader Don Perata, Senate Majority Whip Richard Alarcon, Senate President Pro Tem John Burton, and lesbian activist Senator Sheila Kuehl.
The fact that some of the signers represent the most liberal-left elements of the Democrat Party does not negate the legitimacy of their concerns and objections. Undoubtedly, many of them oppose GATS simply for partisan reasons. However, taking their letter at face value, they are at least expressing the kinds of concerns that Republicans, who claim to be guardians of the Constitution, should be making. "The GATS is of particular concern to us because of its massive scope and the lack of clarity as to the extent to which it will apply to state and local laws," said the Democrat legislators. Their letter continued:
According to the text, the only services exempted would be those services "supplied in the exercise of governmental authority," defined as "any service which is supplied neither on a commercial basis, nor in competition with one or more service providers." These are critical terms that remain undefined and could be interpreted by a dispute panel in a way that renders the exemption meaningless.
In fact, under an enforced regime contemplated by GATS, a great many state powers would be rendered meaningless. GATS is one of many WTO agreements in the process of battering down the remnants of national sovereignty and merging all nations into one global economic and political system that veteran globalists refer to as a "new world order." The ultimate goal of these one-world Insiders is world government under their control. The principal brain center of the world-government advocates is Pratt House, the New York City headquarters of the Council on Foreign Relations (CFR). Nearly 30 years ago, in April 1974, a now-famous essay entitled "The Hard Road to World Order" appeared in the CFR journal Foreign Affairs. It was penned by Columbia University professor and veteran State Department official Richard N. Gardner, who most recently served in the Clinton administration.
Gardner told his fellow one-worlders that "instant world government" is an illusion because Americans would not accept an open assault on their constitutional system. The globalists, he said, must continue to labor for the piecemeal creation of an all-powerful superstate. It must be built gradually, piece by piece, brick by brick, he said:
In short, the "house of world order" will have to be built from the bottom up rather than from the top down. It will look like a great "booming, buzzing confusion," to use William James famous description of reality, but an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old-fashioned frontal assault.
Gardner suggested luring all nations into a variety of technological, economic, and political entanglements which would gradually be strengthened until they formed a genuine world government. The first three institutions Gardner pointed to for this purpose were the International Monetary Fund (IMF), the World Bank, and the General Agreement on Tariffs and Trade (GATT). In 1995, GATT was transformed into the WTO, with greatly expanded status and powers. The Council on Foreign Relations, Foreign Affairs, and well-placed CFR members in business, finance, the media and government have provided the key leadership in advancing the GATT/WTO in this march toward "world order" and continue to lead the push for GATS and the proliferating entangling agreements misleadingly called Free Trade Agreements.
Sowing Confusion
As with the WTO itself, the most visible, vocal opponents of GATS are leaders of the hardcore Marxoid left. Global Trade Watch, led by veteran agitators Ralph Nader and Lori Wallach, is in the vanguard of the controlled opposition. This means that they put on a show of opposing the WTO to keep any real, principled constitutionalists from gaining the fore and exposing the real agenda behind the WTO/GATS agenda. Nader and Wallach are shills for the CFR globalists. Global Trade Watch is funded by the Ford Foundation, Rockefeller Foundation, and other CFR-dominated tax-exempt foundations. They are joined in this ruse by the Sierra Club, Greenpeace, Friends of the Earth, the Institute for Policy Studies, and other far-left bastions of radicalism, who, likewise, are generously funded by the same Establishment sources.
The Marxist rhetoric, radical appearance, and often violent demonstrations of these leftists tend to make the one-world champions of the WTO appear more reasonable, respectable, and centrist by comparison. This image contrast is repeatedly reinforced by a continuous parade of CFR-sponsored economists, forecasters, business leaders, brain trusts, and Republican leaders with impressive-sounding "research" that seems to show that what we need is more hair of the dog that bit us. We must simply enact more and more "Free Trade Agreements," while simultaneously yielding more and more authority to the WTO and sending more and more jobs overseas, claim these "enlightened" voices, when courting the American business community.
This is the essence of the message delivered to U.S. corporate leaders in an influential 2003 report from Deloitte Touche Tohmatsu, a CFR corporate member. Entitled The Cusp of a Revolution: How offshoring will transform the financial services industry, the Deloitte report tells CEOs that they had better get their companies aboard the offshore express before they miss out completely on this "transformational" opportunity and are left in the dust.
"The shifting of activities to lower-cost locations," it claims, "ignites the possibility of transforming the structure of the financial-services industry. Indeed, it offers a once-in-a-generation opportunity to reduce significantly the operating costs of the majority of financial institutions." According to the report, "$356 billion of cost for the global financial-services industry will be relocated offshore within the next five years. We calculate that this will translate into a bottom-line annual cost savings of $138 billion (or $1.4 billion each) for the worlds top 100 financial-services companies by 2008."
Estimating that 13 million people are employed in financial services jobs in "mature industrial economies," the Deloitte analysis predicts a "potential movement of up to two million jobs" offshore. Cusp of a Revolution notes: "In 5 years GE Capital has offshored 11,000 positions to India and is now considering the impact of commercializing their offshore capabilities on their competitive advantage."
"Only a minority of financial institutions yet have offshore operations," says the Deloitte report. It continues: "Momentum has built rapidly within the industry, however, and we estimate that nearly three-of-four major financial institutions will be offshore within two years."
"It is essential to catch the wave of offshoring because the benefits are potentially transformational," says the much-quoted report. "As offshoring gathers momentum, so the types of functions will expand to include all types of business processes." "Those institutions currently offshore," says Deloitte, "particularly investment banks and insurers, will lead the shift to full-service offshoring."
If the CFR cabal dominating the White House, Congress, and the media have their way, GATS and the multiplying FTAs will lead to offshoring virtually all of Americas productive capacity and, with it, our rapidly disappearing prosperity, freedom, and independence.
Besides the recently signed FTAs with Chile and Singapore, the Bush administration is nearing completion on bilateral FTAs with Morocco and Australia. It also plans to complete two regional FTAs by years end: the Central American Free Trade Agreement (CAFTA) with Honduras, Guatemala, Nicaragua, Costa Rica, and El Salvador; and the South African Customs Union with South Africa, Botswana, Namibia, Lesotho, and Swaziland. Then there is the big granddaddy of the regional FTAs, the Free Trade Area of the Americas (FTAA), involving 34 nations of North and South America and the Caribbean, scheduled for completion by 2005. Over the coming weeks and months, President Bush will be sending these agreements to Congress for a "fast track" up-or-down vote. By late 2004 the administration also plans to have completed negotiations on GATS. If we allow these agreements to be adopted and implemented, the United States will be headed on the fast track to self-demolition and oblivion, from world superpower to Third World has-been, a mere cog in the new one-world imperium.
Relatively little organized opposition to these schemes has materialized, except for that led by the left-wing anti-globalization forces. Most Republicans and conservative, patriotic Americans, still enamored of President Bush, have bought into the nonsensical arguments of the administration that these FTAs are the ticket to ever-expanding prosperity.
But that is changing rapidly, as more and more Americans are feeling the harsh reality of the planned "new world order" or are beginning to see the writing on the wall concerning their own jobs, businesses, and professions. By attacking virtually every segment of society simultaneously, the one-worlders may be miscalculating; they risk awakening, angering, and activating an immense resistance involving Americans from all socio-economic backgrounds and every walk of life. These newly awakened Americans can be reached and organized into a formidable force to upset the subversive globalist agenda and preserve our independence. But we have no time to waste.

 


Corrections delays job reorganization
Adriana Collindres
State Journal Register
27 June 2003
The Illinois Department of Corrections is delaying by a month a plan to reorganize its administrative setup at state prisons, in part by Y getting rid of more than 200 cap
tains' jobs, officials said Thursday.
The reorganization plan now will take effect Aug. l, instead of Tuesday as originally scheduled. The state's new fisca[ year begins Tuesday.
'We felt it was a responsible
course of action to delay this process for a month so that we can ensure, in fairness to everyone involved, that this process is done Without any wrinkles," said Corrections spokesman Sergio Molina. "The issue is we want to ensure that
we dot our i's and cross our t's."
Molina cited two reasons for the decision. The department wanted
to be sure it was giving proper notification to the American Federation of State, County and Municipal Employees, a union representing prison workers, he said. In addition,
he said, the department still is in the process of identifying who Will fill 65 "shift commander" positions.  In one component to the restructuring plan, the department intends
to create the new title of "shift commander" to describe employees who supervise prison work shifts. There Will be about 110 shift commanders, and existing job ranks of unit superintendent, major and captain will be abolished, Molina
said earlier this week.
", At present, captains are the shift supervisors of prisons.' But Gov.. Rod Blagojevich has said captains represent an unneeded layer of bureaucracy and that he would trim from the new state budget the $17 million that lawmakers put in for 230 captains' positions.
The department of Corrections has said that some of the captains
could move into shift commander  positions while others could fill 122 vacant lieutenant positions or get laid off.
The Department of Central Man
agement Services, which provides
personnel services to state agencies,on Wednesday notified the affected Corrections workers to stay on the job until they're told otherwise, Molina said.
In a letter to Henry Bayer, executive director of AFSCME Local 31, Corrections Director Roger Walker
Jr. said the agency's reorganization effort has made it "imperative for us to revise the captain layoff plan."
"Consequently, we have asked CMS to rescind the original layoff plan that was to be effective July 1, 2003," added Walker's letter, which was dated Wednesday. "Please accept this  as a formal notice that DOC intends to layoff the captains effective August 1, 2003."
Bayer said Thursday that his
 union continues to believe the department's reorganization plan has
 some deficiencies."
 For instance, he said, it doesn't.
 provide for a sufficient number of
 shift commanders.
 Bayer also said the department is
making a mistake by offering lieu- " tenant positions to captains. The
union has filed a grievance on that
topic. AFSCME represents Corrections lieutenants, but not captains.
Bayer said he thinks the department's change in plans was prompted by procedural error.
 "They're required to give us a notice," he said of department officials.
 "They had never officially notified
  us that they were laying off captains
 and they were going to be putting
 captains in our bargaining unit."
 He said he hopes DOC officials
 use the month-long delay to "re- think their whole plan."
 The governor's office is aware
 that the Department of Corrections
 is postponing the reorganization
 plan, said Blagojevich spokesman
 Tom Schafer. The reorganization process  is
 Not stopping, he said. "It's Just being put off another month to  make sure everything is done correctly."
Molina said the delay would  have a "negligible" financial impact, and Schafer said the state still
would see the same cost savings by
eliminating the  captains jobs.
Adriana Collindres can be reached
at 782-6292 or
adriana.colindres@sj-r.com .

Prison positions changing
Corrections reacts to loss of captains
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
25 June 2003
Spurred by the elimination of more than 200 captains' positions next month, the Illinois Department of Corrections is revamping its administrative setup at state prisons.
"This is restructuring, streamlining," said agency spokesman Sergio Molina, who added that officials still are working on specifics of the plan.
About 110 people will serve as shift supervisors at prison facilities, he said. They likely will be called "shift commanders," and the existing job ranks of unit superintendent, major and captain will be abolished, Molina said. More than 30 department employees are unit superintendents and about 40 are majors, he said.
At present, captains serve as shift supervisors at the prisons.
But Gov. Rod Blagojevich, saying the captains represent an unnecessary layer of bureaucracy, sought to take away the funding for their positions. Lawmakers tried to save the captains' jobs by adding $17 million to the budget for the fiscal year that starts Tuesday, but Blagojevich said this month that he would use his line-item veto power to eliminate money for the 230 positions.
Molina said employees who hold captains' positions could fill about 65 of the shift commander spots, depending on each worker's qualifications. The pay for shift commanders hasn't been determined.
Henry Bayer, who heads the largest state employees union, believes the restructuring plan will "save some money, but the savings won't be as big as it looked on first blush," when the governor announced he was eliminating captains' positions.
Molina said there would be substantial savings, but he couldn't pinpoint how much.
Bayer's union, Local 31 of the American Federation of State, County and Municipal Employees, has filed a grievance to protest the movement of some DOC captains into 122 lieutenants' vacancies. Lieutenants are represented by AFSCME, but captains aren't.
While no captains have moved into lieutenants' positions yet, the Department of Corrections has identified which captains would fill those slots, Molina said. That's subject to change, however, because some of the captains slated to be laid off or moved into lieutenants' positions could qualify for shift commander jobs, he said.
After the new fiscal year starts, Molina said, the department expects to hire at least 1,300 "front-line staff," mostly correctional officers who deal directly with prison inmates.
"This reorganization of the bureaucracy is placing the emphasis right where it needs to be - on front-line staff," he said.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Statehouse INSIDER

BY DOUG FINKE
22 June 2003 
A memo issued by Department of Corrections Director ROGER WALKER JR. has some employees pretty upset. Its just what is needed in a department where employees are already on edge over budget cutbacks.
Dated June 12, the memo states all correspondence or phone calls received from state legislators and staff, congressional offices and staff and constitutional officers and staff should be directed to the Office of Intergovernmental Relations ... If contacted by a legislator directly, you should immediately notify the Intergovernmental Operations Office for direction on handling. NO IDOC EMPLOYEE should be corresponding with the above offices as an employee of IDOC without first notifying the Office of Intergovernmental Relations.
Some employees are taking that as a gag order, particularly captains who are lobbying to keep their jobs. However, Corrections spokesman BRIAN FAIRCHILD said the memo is just reiterating a longstanding DOC policy thats meant to ensure accurate information is passed along to other government officials.
 

Governor gets 30 patronage jobs

By MIKE RAMSEY
COPLEY NEWS SERVICE
20 JUNE 2003
CHICAGO - Gov. Rod Blagojevich's Democratic administration can fill 30 more upper-level state positions - or fire the current job-holders - for purely political reasons.
The Illinois Civil Service Commission voted 5-0 Thursday to classify the jobs as exempt from protections against patronage. Since March, two months after Blagojevich took office, the panel has authorized at least 88 of the so-called "4d(3)" positions - a reference to an exemption in the personnel code - at the request of the governor's agencies.
The latest bundle of patronage jobs is spread across 10 departments and is a mix of existing and newly created positions. Many are vacant.
Among the positions are an Illinois State Fair adviser for the agriculture secretary, an inspector general and assistants for the administration, and two newly hired "special advocates" who will design a prescription drug-buying club for seniors.
Blagojevich campaigned for office by condemning political cronyism and oversized government, but spokeswoman Abby Ottenhoff said the positions coming up for classification have been part of a larger streamlining - not an attempt to stack the payroll.
"Overall, there's still going to be a reduction in state head count," she said. "It would be misleading to (suggest) the governor is throwing all these positions into state government."
Most of the 51,000 employees in state agencies are hired under a_code that bars political considerations and stipulates levels of merit and fitness. The number of exempt employees serving "at the will" of the governor or his Cabinet increased to 475 with Thursday's vote by the Civil Service Commission, according to the Department of Central Management Services.
Cindi Canary, executive director of the Illinois Campaign for Political Reform, said she generally agrees with the concept of patronage - up to a point.
"There is a role for these kinds of jobs in certain positions, ensuring that you do have like-minded people and creating a team you can manage, but it really is a question of how far it goes," Canary said.
Ottenhoff said Blagojevich's administration likely will submit more requests to the Civil Service Commission as the state government restructuring continues. She noted that Blagojevich is the first Democrat to occupy the Executive Mansion since the late 1970s, and his staff is sorting through "three generations of Republican administrations."
The Civil Service Commission currently has a 3-2 Republican edge, but chairman George Richards of Danville said partisan interests aren't a factor in decision-making. The commission will approve re-classifications on the advice of agency officials and staff review, he said.
Five requested job-status changes were withdrawn or tabled Thursday.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.
 

Candidate for the union members
By George F. Will
Published 2:15 a.m. PDT
Thursday, June 12, 2003
WASHINGTON -- Time was, presidential nominations were dispensed by kingmakers in smoke-filled rooms. Today smoking is a scarlet sin and the democratization of the nominating process supposedly has made kingmakers extinct.
Not quite. Meet Gerald McEntee.
The yearnings of Democratic presidential candidates are focused on the leader of the 1.4 million members of the American Federation of State, County and Municipal Employees. McEntee says "it is going to be hard" in 2004 -- it was impossible in 1992 -- for the entire AFL-CIO to get the required two-thirds of its federated unions to agree to endorse a candidate before the first nominating event, the Jan. 19 Iowa caucuses.
But "by late September, early October" AFSCME will, he says, endorse a candidate by itself, as it did in 1992. That year most AFL-CIO leaders lost their liberal hearts to Iowa Sen. Tom Harkin and his prairie populism. McEntee kept his eye on the prize -- electability -- and AFSCME endorsed Bill Clinton early.
Two-thirds support of a particular candidate by AFSCME's leadership is not required, but McEntee says that as a practical matter "damn near" two-thirds will be required. And achieved. That will resonate, beginning in Iowa, where AFSCME represents 28,000 workers, second only to the teachers union. In 2000 just 61,000 voters participated in the Iowa Democratic caucuses hotly contested by Al Gore and Bill Bradley.
First elected in 1981, McEntee is in his sixth four-year term leading the largest of the public employee unions, which are responsible for most of the growth sector of organized labor. In 1955 America's population was about 166 million, the civilian work force was 54.2 million and union membership was 17.9 million, which was 33 percent of the work force. Today the population is about 290 million, the civilian work force is about 122 million and union membership is 16.1 million, which is 13.2 percent of the work force. Last year union membership declined 280,000, largely because of layoffs in such heavily unionized industries as airlines, hotels and steel.
But 37.5 percent of government workers today are union members. In 1956 there were 915,000 unionized government workers. Today there are nearly 7.4 million. Public employee unions are government organized as an interest group. They want more government, and more of government to be susceptible to unionization. So they have a perennial interest in electing Democrats, and an especially intense interest in defeating the current president, whose tax cuts are impediments to government growth. And, as he showed in the organization of the new Department of Homeland Security, he is not bashful about limiting the powers of organized labor.
"No access!" McEntee exclaims, referring to what he says labor experienced from the White House during the 12 years of the Reagan-Bush presidencies, 1981-1993. He says he entered the White House only once -- when Lech Walesa, leader of Poland's Solidarity labor movement, was honored and insisted that American labor leaders be present.
So McEntee is spoiling for a fight. In 1992 union households cast 19 percent of the presidential vote. But lately, thanks to aggressive voter-turnout operations that Republicans successfully emulated in 2002, voting by union households has risen rapidly: In 2000, union households delivered about 26 percent of the turnout.
How does McEntee think Bush can be beaten? "You have to get him partially or altogether out of the bubble he's been in since 9/11." Meaning? "You have to have a campaign that is somewhat aggressive on the issue (of terrorism), that shakes him (Bush) out of his hammock."
McEntee thinks John Kerry has the advantage of a distinguished war record. However, McEntee ruefully remembers that George McGovern was not protected by his fine World War II record: "I was treasurer of McGovern's Pennsylvania campaign, and we raised $400."
Dick Gephardt may have an advantage -- with McEntee, if not with the Democratic nominating electorate's antiwar activists -- because he burnished his national security credentials by helping to write and pass the congressional resolution authorizing the use of force against Iraq. And McEntee notes that Gephardt, who won the 1988 caucuses, "has cooked pancakes in everybody's kitchen" there.
Recently, McEntee says, "I was driving on Pennsylvania Avenue, past the Ronald Reagan Building, and I thought, 'Where are you now that we really need you?' Bad as he (Reagan) was for our people, this crowd is way out there." The blunt-speaking McEntee, more perhaps than any other person, will pick the candidate for expelling "this crowd."
 
 
 

DOC union: Displaced captains shouldn't get 1st shot at jobs
 

BY JOHN O'CONNOR
ASSOCIATED PRESS WRITER
6 June 2003
 SPRINGFIELD(AP) A union contends the state Corrections Department is breaking the rules by offering first crack at openings for prison lieutenants to captains who are about to be laid off.
The American Federation of State, County and Municipal Employees says hundreds of its members have passed the lieutenant's test and are in line for the jobs.
Gov. Rod Blagojevich is cutting $17 million from the proposed budget to eliminate 219 captains' positions.
Corrections Department spokesman Sergio Molina said Thursday the agency got permission within the last month to fill 122 vacant lieutenant's spots union jobs with a rank just below captain and offered them all to captains, who are not part of the union.
"There are over 700 people who have passed the exam and are on the eligibility list" for lieutenant, AFSCME Executive Director Henry Bayer said. "They shouldn't be offering these positions to people outside the bargaining unit, irrespective of their qualifications."
Bayer said some captains have never worked as lieutenants or even passed the exam.
Hundreds of union members were laid off last year when two prisons and several work camps closed to save money. More than 100 have not been called back, Bayer said.
AFSCME filed a grievance with the agency last week.
Corrections is following personnel rules in allowing the latest laid-off workers the opportunity to take a lower rank, Molina said. Conversely, the laid-off guards can't be recalled to a promotion a correctional officer could not return as a lieutenant, he said.
Blagojevich said last week he wanted captains eliminated as an "unnecessary, bloated bureaucracy." The Democrat, who took $376,000 in contributions from AFSCME for last fall's campaign, dismissed the union's complaints as political sour grapes.
"Evidently they're concerned that most of these captains happen to be Republicans and that they shouldn't be hired," Blagojevich said. "They should be able to reapply for other positions in state government and we don't care what political party they come from."
Captains take unmbrage at Blagojevich's characterzation of them as bureaucrats. They say they are necessary to keep prisons safe and that people taking over for them won't have the same experience.

Governor cuts back budget by $22 million
Pay raises, prison captains take first hits from vetoes
By DOUG FINKE and MIKE RAMSEY
STATE CAPITOL BUREAU
CHICAGO - Gov. Rod Blagojevich on Wednesday cut $22 million from the state budget for the fiscal year that begins July 1, including money for judges' and lawmakers' pay raises and to retain Department of Corrections captains.
The spending reduction represents only a tiny amount of the $53 billion state budget approved by lawmakers last week. However, the symbolic value of cutting raises for state officials is enormous.
"Now is not the time for a pay raise," Blagojevich said at a Chicago news conference. "We cannot afford it, and I cannot ask the taxpayers to pay for it."
Lawmakers included nearly $800,000 in the budget to cover 2.8 percent cost-of-living pay raises for themselves, the governor, lieutenant governor, secretary of state, comptroller, treasurer, attorney general and auditor general, along with Cabinet directors and their top aides.
The money was added even though nonunion employees under Blagojevich's control have had their salaries frozen and must begin contributing 4 percent of their wages to their pension plan.
Had the pay raises gone through, Blagojevich would have made $154,910. Base salaries for lawmakers would have risen to $59,232, although most of them earn much more through stipends paid for holding leadership posts or committee chairmanships.
Last month, Senate President Emil Jones, D-Chicago, said lawmakers wanted a pay raise after giving up a 3.8 percent cost-of-living increase last year. At the same time, Jones wasn't surprised the governor killed the raises, according to Jones' spokeswoman, Cindy Davidsmeyer.
Although lawmakers will have a chance to restore the money later this year, "I don't think anyone is proposing that," Davidsmeyer said.
Under the Illinois Constitution, the governor can either reduce or outright eliminate spending sent to him by the General Assembly. He is not allowed to increase spending. Lawmakers can later vote to restore the money cut by the governor, usually in the fall veto session.
Blagojevich also cut $3.7 million to cover a cost-of-living increase for state judges. Earlier this year, the judges threatened to sue because a raise they were scheduled to receive was rejected by lawmakers. Refusing them a pay increase violated the constitutional separation of powers, according to the Illinois Judges Association.
I hope they understand that this is not a year that we can afford to give them a pay raise, Blagojevich said. At a time when we are asking almost everyone to share in the sacrifice of solving the fiscal crisis, I dont see how we can approve a pay raise for judges that totals nearly $4 million.
Judge Ann Jorgensen, president of the Judges Association, did not return phone calls seeking comment about Blagojevichs action.
The governor also eliminated funding to save the jobs of more than 200 Corrections captains. Blagojevich called for getting rid of the captains jobs when he introduced his budget in April. He said the captains represent a needless layer of bureaucracy.
Lawmakers, though, added $17 million to the budget to save the captains jobs.
In good conscience I cannot let that decision stand, Blagojevich said. The public expects us to do more with less. I cannot ask them to cover the cost of middle management we just dont need.
Word of the veto stunned Brian Kane, a captain at the Hill Correctional Center in Galesburg.
This is a big letdown after 18 years of service, Kane said. I thought loyalty counted for something. I dont know what my future is going to hold.
Kane believes the state wont save as much money as it thinks because captains are salaried and work overtime without additional compensation. Without the captains, nonsalaried workers will have to put in longer hours with overtime pay, Kane said.
Rep. Raymond Poe, R-Springfield, agrees.
I think in the long run, its going to cost them a lot more, Poe said. Id be willing to vote for an override, but Im afraid theyll already have their people in place.
Corrections spokesman Sergio Molina said 122 of the departments 219 captains already have been offered positions as lieutenant.
Generally speaking, they will be taking a pay cut to move to lieutenants, Molina said, adding that the remaining captains can apply for other vacant jobs in the department.
Wednesdays spending cuts will not be the last, according to Blagojevich, who said, I fully anticipate and expect there will be more announcements along these lines.
The governor said he hasnt decided if he will veto money included in the budget to complete construction of prisons at Hopkins Park and Grayville. He said he is not persuaded at all by claims the state will have to pay $40 million to pull out of the two construction projects.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com and Mike Ramsey at (312) 857-2323 or cnsramsey@aol.com.

Budget Proposal includes funds for prison projects
 
STATE CAPITOL BUREAU
The proposed state budget that lawmakers sent to Gov.Rod Blagojevich includes money to resume two prison construction projects being overseen by central Illinois firms.
Blagojevich, however, already
has indicated he probably would trim parts of the budget, so it's un certain which items will befunded in the final version of the spending plan that covers the fiscal year beginning July 1.
For now, though, the budget contains $126 millIon to pay for construction costs at a new maximum
security prison in Grayville and $78
million for construction costs at the
new women's prison in Hopkins
Park.
Williams Bros. Construction of Peoria Heights is general contractor for the Grayville prison in southern Illinois, and River City Construction Co. of East Peoria is general contractor for the Hopkins Park facility, near Kankakee.
Because of the state budget crisis, Blagojevich halted the prison construction in mid-April. That disrupted business for Williams Bros.,
River City and dozens of subcontractors, and some employees were laid off.

Governor to veto some pay raises

  
 
By Maura Kelly
Associated Press Writer

June 4, 2003, 3:02 PM CDT

Gov. Rod Blagojevich said Wednesday he will veto pay raises for the state's constitutional officers, agency directors, judges and lawmakers as part of $22 million in cuts to the state budget just approved by the General Assembly.

Blagojevich also said he will cut money, put in the budget over his objection, that would continue to fund more than 200 captains' jobs in the state Department of Corrections.

Blagojevich said he was making the line item vetoes to the $52 billion budget lawmakers passed late Saturday because tough choices are still needed to make sure the state's roughly $5 billion deficit is erased.

"In these difficult times when state agencies are being consolidated, when the number of state personnel is being reduced, in short, when others are being asked to sacrifice, this is not the time to give pay raises to the governor, the lieutenant governor, to the constitutional officers, to the men and women of the General Assembly or to the Supreme Court, the Appellate Court or the Circuit Court judges,'' Blagojevich said.

If lawmakers do not override the governor's cuts, the money will be put in the state's rainy day fund.

The governor said he will continue to review the budget for additional spending cuts.

"I fully anticipate and expect there will be more announcements along these lines,'' Blagojevich said.

The budget included $791,000 for pay raises for the governor, lieutenant governor, attorney general, secretary of state, comptroller, treasurer, auditor general, agency directors, assistant agency directors and all 177 lawmakers.

The raises were to take effect automatically because lawmakers did not pass a bill to reject them.

A 2.8-percent raise, based on the inflation rate, would have boosted the governor's salary to $154,910. State representatives and senators would have been paid a base pay of $59,232.

Lawmakers also would have received increases in the stipends they get for extra duties, ranging from $9,017 for committee chairman to $24,043 for legislative leaders such as the Senate president and the House speaker.

Sen. Patrick Welch (D-Peru), an appropriations committee chairman, said he wasn't surprised by the governor's decision to veto raises.

"With the budget problems that we had it was not a good idea to include them in the bill, but the bill came up so late that we didn't want to redraft that part of the legislation,'' he said. "Many of us encouraged the governor to veto that part of the legislation.''

Last year, lawmakers rejected cost-of-living raises for themselves and some judges, prompting judges to threaten to file a lawsuit. Pay raises for judges were approved this year by lawmakers. Blagojevich said the judicial raises would cost $3.7 million.

DuPage County Circuit Judge Ann Jorgensen, who is president of the Illinois Judges Association, declined to comment until she had more information about the governor's decision to cancel the raises.

Judges have said the state constitution prohibits anyone from reducing a judge's salary while he or she is in office. A cost-of-living increase is considered part of a judge's salary, not a raise, said Cook County Circuit Judge Stuart Nudelman, immediate past president of judges association.

The raises Blagojevich vetoed would have boosted a Supreme Court judge's salary to $168,538; an Appellate Court judge's salary to $158,624; a Circuit Court judge's salary to $145,558; and an associate judge's salary to $135,645.

The governor said the corrections department captains can reapply for lower paying jobs in the department, which are open because of early retirements.

"The public expects us to do more with less. I cannot ask them to cover the cost of middle management we just don't need,'' Blagojevich said.

AN OPEN LETTER TO IDOC DIRECTOR ROGER WALKER
 
3 June 2003
Dear Director Walker,
We are pleased that at long last DOC has new leadership. AFSCME looks forward to working constructively with you to bring stability to a Department which has been in turmoil as a result of actions taken by the previous administration and by your predecessor, Donnie Snyder.
The disruption included an attempt to deny DOC employees the improved pension that the Union had fought so hard to negotiate; an attempt to eliminate all Sergeant, Maintenance Craftsman, and Leisure Activity Specialists; an initiative to privatize dietary and commissary services; and attempts, partly successful, to close DOC prisons, juvenile centers, work camps, and adult transition centers.
The new administration has taken some positive steps to rebuild DOC: the elimination of a number of superfluous deputy director positions; the plan1 to reopen Sheridan; and the recall of many laid off employees.
However, that positive direction has run into a roadblock as the result of DOC's decision to offer lieutenant positions--for which AFSCME members have worked so hard to qualify--to captains.
For many years DOC had complete discretion in selecting candidates for both captain and lieutenant positions. Too often selection for those jobs was made on the basis of politics and favoritism. It took the union a long time to pressure the State into permitting our members to be chosen for lieutenant positions based upon their ability to pass an exam, and on their years of service with DOC.
Now, those who've qualified for the lieutenant positions through that route and have been waiting patiently for promotional opportunities are being forced to stan1d by and watch as those jobs are offered to many of the people who rose to the ranks of management through the very political process that we fought so hard to eliminate.
In addition, the timing of these offerings is very suspicious. For months we have been urging DOC to recall our laid off members and to fill the hundreds of jobs which remain vacant. We were told that there are budget constraints (we do recognize that there are) and that filling positions would take time. In the meantime, more than 100 of our members remain on layoff, and more than 500 are in temporary assignments. Yet as soon as the captains became subject to layoff, scores of lieutenant positions popped open.
Whatever the motivation, bypassing employees who've worked hard and played by the rules is causing immense damage to departmental morale. It is crucial that you act quickly to redress this situation and make sure that all lieutenant positions are filled only by bargaining unit employees who have contractual rights to them. There are correctional officer vacancies that could be made available to captains to avert their layoffs.
Our Union has always worked hard to improve prison safety. We were the first to call attention to the problems with gangs and call for a get-tough policy, and we initiated legislation to ban cell coverings. It was the union that first advocated for limits on inmate property and movement, and for the requirement that inmates wear uniforms.
These measures enhanced institutional security immeasurably, but the improvements that have
been made are now jeopardized both by the extreme shortage of staff and by the friction that has been unnecessarily created by the manner in which the lieutenant positions have been offered, a friction not lost on the inmate population.
DOC faces big challenges, challenges that can only be met if both the Department's leadership and employees work together. For its part the Union is ready to work with you. We urge you to act immediately to fill the hundreds of vacant frontline positions and to restore fairness to DOC's filling of vacancies policy so that we can1move this Department forward, beginning today.
AFSCME COUNCIL 31
 
 


 

GOVERNOR MIGHT STILL CUT PRISON CAPTAINS
BY MATT ADRIAN
FOR THE SOUTHERN
Mon Jun 02 2003
 
SPRINGFIELD -- Gov. Rod Blagojevich said he might use his amendatory veto powers to remove 218 Department of Corrections captain positions that lawmakers included in next year's budget.
Blagojevich had redlined the jobs as a way to pare costs and fill a $5 billion budget hole.
"We were able to find ways to streamline government, consolidate state agencies, reduce the headcount in personnel, make government more accountable ... eliminate unnecessary bureaucracy or hard-to-justify bureaucracy, and these positions could very well fit that description," Blagojevich said. "If that is the case after we review the legislation and the budget then I'll act appropriately."
The captains lobbied heavily to get their jobs replaced in the fiscal 2004 budget. As state employees, the 218 captains are allowed to apply for other positions within state government. As a result, the administration is allowing many of the captains to apply for 114 lieutenant positions open throughout the state prison system.
Allen Arbeiter, a captain at the Du Quoin Work Camp, said he has been offered a lieutenant position, but if he accepts he will lose 22 years of seniority.
"There will be guys with five or six years in with more seniority than me," Arbeiter said. "It's a hard pill to swallow, but it's better than being unemployed."
Arbeiter said he and other captains are concerned that eliminating their positions will remove a level of frontline workers.
"It's going to get someone hurt," Arbeiter said.

 
 
The administration's move has been met with resistance by American Federation of State, County and Municipal Employees Council 31, the union that represents most of the state's prison workers.
AFSCME argues that the lieutenant positions should be filled by union members, especially the more than 100 laid-off prison workers who lost their jobs after cuts in the state's current budget. The union filed a contract grievance against the state last week.
217-789-0865
 

 Governor expects to trim budget
Critics: More cuts still may not help spending plan
2 June 2003
By DOUG FINKE
STATE CAPITOL BUREAU
Barely an hour after the Illinois General Assembly passed the last pieces of next year's state budget, Gov. Rod Blagojevich said he probably will veto parts of the spending plan sent to him by lawmakers.
However, critics said even cuts might not be enough to save a spending plan they believe relies on overly optimistic estimates of how much revenue the state expects to collect next year. If those critics are right, lawmakers could be back in Springfield in a matter of months making even deeper cuts or raising additional taxes.
"They may be able to cobble through and get us into January," said Sen. Steve Rauschenberger, R-Elgin, the Senate Republican budget negotiator. "This budget does not (make it through) a full year."
Lawmakers sent to Blagojevich a $53-billion-plus spending plan balanced with hundreds of fee increases, business tax hikes and one-time revenues such as the sale of the James R. Thompson Center in Chicago and the sale of an unused riverboat casino license.
The spending plan largely mirrors the budget plan proposed by Blagojevich in April. It provides additional money for education but leaves many state jobs vacant, trims money for universities and makes cuts to human services programs.
Lawmakers voted to restore some of the human service cuts and to add about $180 million to public elementary and high schools.
Although balanced on paper, the budget still may be cut before Blagojevich signs it into law.
"We haven't decided on what, if anything, I'll veto, although I do suspect some vetoes are likely," Blagojevich said at a news conference early Sunday. "I think we have an opportunity to even pare down this budget some more."
Blagojevich didn't say what spending he might veto, but the likely targets include money lawmakers added in the last couple of weeks to restore cuts Blagojevich called for in the budget he proposed in April. That could include money to save the jobs of 200 Department of Corrections captains and salaries for regional superintendents of education.
"We eliminated layers of unnecessary bureaucracy or hard-to-justify bureaucracy," Blagojevich said when asked whether he would cut the Corrections' captains. "These positions could very well fit that description. If that's the case after we review the budget, then I'll act appropriately."
During a private meeting last week, Blagojevich told Senate Democrats he likely will veto the money lawmakers reinstated to pay salaries of regional school superintendents.
Blagojevich also vowed to hold the line on lawmakers' pet projects that were included in a $10 billion capital projects bill the General Assembly hurriedly passed just before adjournment. The budget includes $4 billion worth of new projects and $6 billion continued from previous years.
At least $200 million and possibly more than $300 million is included in that budget in lump sums for projects to be identified later. The widely criticized pool of money for lawmaker projects known as member initiatives was also budgeted as a lump sum in the budget passed a year ago, with the actual projects only identified months later.
Although project money is included in the capital budget, it cannot be spent until the governor signs off on it. Blagojevich insisted Sunday that he will only approve about $450 million worth of projects that were carried over from previous state budgets - at least for now.
"I've said consistently we're not going to fund anything beyond the $450 million we allotted," Blagojevich said. "If there is more than that, it will be considered in the second year."
Included in the capital budget is $7 million to remodel part of the closed Lincoln Developmental Center into cottages for residents being moved into community-based care. Blagojevich budget director John Filan said the new state budget also includes up to $5 million to pay salaries for staffers at the remodeled facility. It will not reopen until January at the earliest.
Lawmakers rushed to approve the capital-spending budget before the midnight Saturday adjournment deadline. After then, Republican votes were needed to approve bills, increasing their bargaining power.
In the Senate, Democrats began debating the bill on the Senate floor without first holding the customary committee hearing. When Republicans complained, the majority Democrats cut off debate and rammed the bill through just before the deadline. Republicans stormed off the floor, and the Democrats adjourned for the spring shortly after.
"To have it crammed down our throat in typical Chicago-style politics sets a precedent, I think, for the future sessions that is not going to be good," said Senate Republican Leader Frank Watson, R-Greenville.
Those strained relations between Republicans and Democrats could make it more difficult for the General Assembly to fix the budget if it starts unraveling a few months into the budget year that starts July 1. More than a few lawmakers believe there is a strong possibility that a repair job is going to be needed.
"This is a budget that's very fragile," Watson said. "It's built on revenue sources that are questionable at best. I think there's a real possibility we'll see this come crumbling down like a house of cards."
The budget assumes the state will be able to sell an unused casino license for $350 million, even though Illinois has the highest casino taxes in the nation. It also assumes the state will collect at least $230 million from the sale of the Thompson Center state office building in downtown Chicago, along with the toll highway headquarters in Downers Grove and some Elgin Mental Health Center property.
Many lawmakers don't think the state will collect that money. Moreover, they aren't even convinced that the fee hikes and business taxes will produce as much money as anticipated.
"In a year like this, with the structure of the budget the way it is, there's a real good possibility we'll be back (to fix it) just because all of those things have to happen," said Rep. Frank Mautino, D-Spring Valley. "If two or three of these major components fall apart, we end up $400 million to $500 million short."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 
 
 
 

Captains' fate rests with veto pen

Monday, June 2, 2003

By Kurt Erickson Statehouse bureau chief

SPRINGFIELD -- The jobs of more than 200 prison captains remain in limbo despite the General Assembly's approval of Gov. Rod Blagojevich's $52 billion budget late Saturday. Blagojevich, in comments after the budget was passed, said he may take his veto pen to the massive document in search of ways to pare down spending that was added in the waning days of the spring legislative session.

The $17 million that would fund the captains' salaries could be among the cuts.

"Some vetoes are likely," Blagojevich said.

"These are the hard choices we have to make."

In his efforts to cut government spending, Blagojevich announced earlier this year that he was eliminating the captains as a way to "streamline bureaucracy" in the Illinois Department of Corrections. He also cut deputy director positions in hopes of saving several million more dollars in state spending.

Last month, he sent layoff notices to the 217 non-union workers telling them they would be out of work on June 30.

At Pontiac Correctional Center, nine captains would be cut. At Dwight Correctional Center, 10 positions would be slashed. At the two state prisons in Lincoln, a total of nine workers would lose their jobs.

The captains, dressed in their uniforms, kept a vigil at the Statehouse for much of last week and watched as the House and Senate inserted $17 million into the budget to restore their positions.

Blagojevich, who is expected to sign the budget in the coming weeks, said the captains, if they are vetoed out of the budget, would be welcome to reapply for any openings within the prison system.


 


Budget makes good on promise
BY CHRIS TERRY
JACKSONVILLE JOURNAL-COURIER
June 2, 2003
Roodhouse resident Frank Hopkins attended more than 1,500 graduation ceremonies at the Greene County Boot Camp before it closed late last year.
But With the approval Saturday night of the state's 2004 fiscal year budget, Mr. Hopkins, on behalf of the North Greene Chamber of Commerce, Will get a chance to present even more
plaques to graduates of the boot camp sometime in the near future.
Part of the state's budget included $3 million to reopen work camps in Greene County and Hanna City and an
additional $5million to open the Illinois
Youth Center in Rushville.
"We're elated down here," said Mr.
Hopkins, who helped organize rallies in
support of reopening the facility and testified about the facilities advantages
before the State Government Administration Committee in February. "People are calling me to find out more, but 1 don't know any more right now. I just know that the boot camp is going to
"
reopen.
White Hall Mayor Harold Brimm was first asked about the camp's reopening at church Sunday morning. Though he couldn't provide an answer then, he inquired shortly after return
ing home from church.
"I'm sure glad to hear this because we've lost a lot of revenue," Mayor Brimm said. "1 had a strong feeling that this was going to happen because (Gov. Rod Blagojevich) made that promise to the people of Greene County. I didnt
know for sure, but I just had a good feeling."
State Rep. Jim Watson, R.
Jacksonville, said the facility will be phased into a complete reopening by January.
The Rushville facility is scheduled to open in the last quarter of the 2004 fiscal year, state Sen.
John Sullivan, D-Rushville, Said.
Once it is opened, the Illinois Youth Center will be among the top employers in western Illinois, Sen. Sullivan said, providing
about 275 jobs. Former Gov.,
George H. Ryan awarded the $34 million, 288 bed facility to
Rushville in December 1999, but its opening was delayed because of the state's budget deficit
Rushville Mayor Ronald Shepherd said his only hope is
the juvenille prison hires local residents rather than transfers from other facilities.
"The opening of this is long anticipated," said Mayor Shepherd.. "Hopefully, it's going to have an upswing in the job market of the area, which has lost a lot of big companies recently."
However, state Sen. Vince Demuzio, D-Carlinville, cautioned that until. the governor signs into law the bill enacting the measures, House Bill 2700, anything can happen.
"I would hope that there's room for this project to go forward'" said Sen. Demuzio. "I
think it's a good one, and we will work with the governor anyway we can to facilitate the opening."

 

 

 

AFSCME upset by DOC move
 By Adriana Colindres
 State Capitol Bureau
May 30, 2003
 
Representatives of the largest state employee union are crying foul over the possible movement of some Department of Corrections captains into lieutenants' posts.
That would unfairly take jobs away from
 some current lieutenants, who are mem
bers, of the American Federation of State, County and Municipal Employees, said
Henry Bayer, executive director of AFSCME Council 31.
"We have over 100 members who have been on layoff for 10 months who have no health insurance, and we have been trying to get the governor to post the positions for the people to come back to work," Bayer said. "So far, they've been dragging their feet in doing that, yet last week, they turned
around on a dime and offered positions that
belong to our members to captains who the governor has claimed to layoff."
Bayer has Written a letter to Gov. Rod Blagojevich, expressing the union's opposition to what Bayer described as a Corrections move to grant "an unknown number" of lieutenant positions to captains. The action last week "thwarted the contractual rights of AFSCME members" in the depart
Ment, he said.
 "The union also has filed a grievance with
the Department of Central Management Services, state government's personnel agency, Bayer said..
At present, " the captains aren't members of a union. But they are seeking to become
represented by Laborers' International
Union of North America.
Bayer and roughly 80 AFSCME mem
bers went to the second floor of the state Capitol Thursday morning, hoping to meet with the governor. After being told he wasn't in, Bayer and other AFSCME officials instead spoke with Julie Curry, Blagojevich's deputy chief of staff for economic development and labor.
"We laid out to her our outrage and con
cerns about the actions that have been
taken in the Department of "Corrections," Bayer said.
, He told union members that the gover
nor's office said it would set up a meeting next week between the union and new Corrections Director Roger Walker.
"Our hope is that the new director will have a sense of fairness and that he will reverse these decisions.," Bayer said.
Blagojevich's budget proposal called for cutting the funding .for Corrections captains' jobs. The House Senate restored
that funding in budget bills they passed and sent to the governor last week. Also last week,Walker said he would copsider sug
gestions that the outgoing captains be re
hired at a lesser rank.
Blagojevich said later Thursday that the
union "doesn't appreciate the fact" that the captains' contract says they must be given a chance to reapply for other positions with the state.
"Evidently, they're concerned that most of these captains happen to be Republicans and that they shouldn't be hired," the governor added. "In those cases where we've decided to downsize by reducing bureau
cracy and needless waste, if contracts and
rules provide that those same employees can reapply, they should be able to reapply for other positions in state government, and we don't. care what political party they come from."
While Bayer and the others met Thursday, with AFSCME members waiting outside the governor's office, about 15 uniformed Corrections captains also stood nearby.
The captains are lobbying policymakers
about the importance. of keeping their jobs
in the state budget, said Matthew Bradbury,
a captain at Western Illinois Correctional  Center in Mount Sterling.
"We're the highest-ranking staff  that are
there. 24 hours a day, seven days a week,"
he said. 
"It's unfortunate we can't get on the
same page and work together (with AF
SCME) toward a common goal, "Bradbury said.  " The common goal is everybody
keeps their jobs." '
Doug Finke and Mary Massingale of the State Capitol Bureau contributed to this report. AdrianaColindrescan be reached at 782-6292 or
adriana.colindres@sj-r.com.

May 27, 2003
VIA FACSIMILE
The Honorable Rod Blagojevich
Governor of Illinois
207 State House
Springfield IL  62706 
Dear Governor Blagojevich: 
I am writing to express the union's strong objection to actions taken last week by the Illinois Department of Corrections which granted an unknown number of lieutenant positions to DOC captains and thwarted the contractual rights of AFSCME members in DOC. 
The timing of DOC's action is highly suspect. From the day you were inaugurated, the union has been pressing this administration to fill badly needed front line vacant positions.  Time and again we were told that first DOC had to request that positions be filled before the Governor's office would grant permission for the filling of any vacancy. 
At times the process seemed interminable and although a number of our laid off members were recalled to work, we still have more than 100 members who are in their tenth month on layoff without health insurance. 
While we were counseled by the Department to be patient, DOC turned around on a dime when captain's jobs were in jeopardy to find places for them. If, indeed, these positions are so critical to fill, why did DOC wait until the captains received layoff notices to fill them? 
Many hard-working AFSCME members have been waiting for years for the opportunity to fill the positions which are now being offered to captains.  In order to qualify for a lieutenant position our members have studied for and passed the appropriate tests.  Most of these captains have never taken the lieutenant test.  Indeed, some have even taken it and flunked, only to be made captains because of their political connections.  Now DOC proposes to bring them into lieutenant positions through the back door.
 
May 27, 2003
Page Two
If DOC had followed appropriate procedures, then the lieutenant positions would have been posted and current qualified employees -- mainly sergeants or correctional officers -- would have filled them.  Other correctional officer positions are on tap to be filled in the coming weeks and those could have been made available to the captains once all employees had an opportunity to bid on available positions.
That's how the situation could have been -- and still can be -- handled fairly.  The actions taken by DOC are an insult to every hard-working front line staff person and I urge you to reverse them immediately.
Sincerely,
 
Henry Bayer
Executive Director 
/ls(5766)
cc: Julie Curry
 

higgins35022ab.gif

Jacksonville budget in HB2700 for FY2003

30                  JACKSONVILLE CORRECTIONAL CENTER
31      For Personal Services ........................ $ 21,375,200
32      For Employee Retirement Contributions
33       Paid by Employer ............................    1,160,200
34      For Student, Member and Inmate Compensation ..      410,000
 
                            -85-     SDS093 00032 AWM 00032 a
 1      For State Contributions to State
 2       Employees' Retirement System ................    2,743,700
 3      For State Contributions to
 4       Social Security .............................    1,603,000
 5      For Contractual Services .....................    3,442,400
 6      For Travel ...................................       20,000
 7      For Travel and Allowance for Committed,
 8       Paroled and Discharged Prisoners ............       40,000
 9      For Commodities ..............................    2,716,000
10      For Printing .................................       26,600
11      For Equipment ................................      153,500
12      For Telecommunications Services ..............       72,900
13      For Operation of Auto Equipment ..............      167,100
14      For the Greene County Impact
15       Incarceration Program .......................    2,578,650
16        Total                                         $36,509,250

State Senate approves spending plan
Stage set for House to pass budget, sent it to governor
May 23, 2003
By DOUG FINKE
 
SPRINGFIELD - The Illinois Senate approved major portions of the state budget Thursday, setting the stage for the House to approve them today and send them to Gov. Rod Blagojevich.
But even as the spending plan was being approved, Blagojevich and the four legislative leaders were still struggling to figure out how to pay for it. It now appears the state will dip further into special purpose funds to underwrite the budget, something likely to anger the interest groups who benefit from those funds.
Senators approved budgets for elementary and high schools, universities, human services and a host of other agencies Thursday night. While money for some programs was cut, the budget plan crafted by the Democrats preserved 2.8 percent cost-of-living increases for state lawmakers.
The Senate education budget added $97 million for public elementary and high schools above what Blagojevich called for in his budget plan. State School Superintendent Robert Schiller said the plan puts more money into districts with large numbers of poverty students. The change means only a "handful" of school districts will lose money, unlike the more than 300 districts that lost money under Blagojevich's original budget.
"The losses range from less than $263 to a high of $164,000," Schiller said.
Those losses will be made up with $5.2 million in transition money contained in the budget.
Regional school superintendent salaries are restored in the Senate budget.
The budget the Senate approved includes money to open the youth center in Rushville and work camps at Hanna City and Greene County that were closed this year because of the budget crunch. Money to reopen Sheridan Correctional Center as a drug treatment center is also in the budget, as is money to complete construction of the Hopkins Park correctional center.
However, the budget does not include money to reopen a portion of Lincoln Developmental Center.
The Senate budget bills include $17 million to continue the rank of captain at the Department of Corrections. Blagojevich wants to eliminate the captains' positions, and 30-day layoff notices were sent to the captains this week.
The captains' salaries were included in the same bill that gives lawmakers a 2.8 percent cost-of-living increase, making it difficult for them to vote against the bill even if they didn't want to raise their own salaries.
Several Republicans complained they were being asked to vote for spending bills when it's unclear how the state will pay for all of the spending. Blagojevich has called for a wide range of fee increases, closing so-called "tax loopholes" and tapping into special-purpose funds to balance the budget. So far, lawmakers haven't approved any of those, and some of Blagojevich's ideas are running into stiff opposition.
"This is a house of cards, and it will come tumbling down and we will be back here," said Senate Republican Leader Frank Watson, R-Greenville.
The Senate passed the brunt of the budget Thursday and is expected to deal with the rest today.
Earlier Thursday, Blagojevich and the four legislative leaders met face to face for nearly three hours to talk about the revenue hikes Blagojevich needs to balance the budget.
"We had a good productive day," Blagojevich said after the meeting.
Blagojevich conceded that he and lawmakers could be $300 million to $700 million apart, based on how much lawmakers want to spend and how reluctant they are to raise fees. At least two revenue ideas floated by Blagojevich - eliminating tax breaks on out-of-state natural gas purchases and on equipment used by trucking companies, airlines and railroads in Illinois - are facing stiff opposition from lawmakers.
House Republican Leader Tom Cross, R-Oswego, said special purpose state funds may be asked to shoulder more of the budget-balancing burden. Those funds usually get their money from fees assessed on professions or industries. The funds then pay for programs that benefit those industries or professions.
Blagojevich said those funds should pay a 5 percent fee to cover the cost of the state providing bookkeeping and other administrative services. Now, though, the four leaders are thinking of assessing those funds a 6 percent or 7 percent administrative fee.
House Speaker Michael Madigan, D-Chicago, has indicated the House will begin voting on fee increases next week after the Memorial Day weekend. The Senate will not vote on them until after the House approves them.
Lawmakers are scheduled to adjourn their spring session May 31.
 
 

Blagojevich recognizes Lewis as 2003 Correctional Officer of Year
Proclaims May 4-10, 2003 Correctional Officer Week in Illinois
9 May 2003
SPRINGFIELD, ILL. - Gov. Rod R. Blagojevich today recognized Pontiac Correctional Center officer Ed Lewis as the 2003 Correctional Officer of the Year and thanked all corrections staff for the important work they do in protecting the public from danger. He also declared May 4-10 as Correctional Officer week in Illinois in appreciation for the important public service they provide the citizens of Illinois.
"The uniformed staff who make our Illinois prison system a model for the rest of the nation are dedicated, hard working public servants who deserve our thanks and praise," said Blagojevich. "Without their daily sacrifices, commitment and fair treatment of prison inmates, we would not be able to live our lives in the safety and comfort we all enjoy."
Nominations for this year's award come from officers recognized at each of the Department of Corrections 26 state prisons and eight juvenile centers. The top officer is selected from the facility nominees and presented with a $500 savings bond, membership in the American Correctional Association and given the opportunity to address those present for the award. The nominees are judged on leadership, initiative, professionalism and service to their community and career.
This year's winner has served as an officer at Pontiac since September 1994. Officer Lewis became squad leader of the Pontiac Tactical Unit for emergency response inside the prison in 1995. He has also served as class counselor at the Corrections Training Academy and has represented the agency at career night programs for high school students.
Officer Lewis is working toward a college degree in criminal justice with an emphasis on business administration. He coaches football in the local youth league and displays steady leadership skills in his volunteer work and career at the prison.
Other facility nominees include
Big Muddy River Correctional Center - Monty Clark, Correctional Officer;
Centralia Correctional Center - Rodney L. Schaeffer, Correctional Officer;
Danville Correctional Center - Jamie Hernandez, Correctional Officer;
Decatur Correctional Center - Tony Coleman, Correctional Officer;
Dixon Correctional Center - Brett Melton, Correctional Officer;
Dwight Correctional Center - Brenda Lillard, Correctional Officer;
East Moline Correctional Center - Tim Jackson, Correctional Officer;
Graham Correctional Center - Jesse Busby, Correctional Officer;
Hill Correctional Center - Phillip J. Brooks, Correctional Officer;
Illinois River Correctional Center - Steven Smith, Correctional Officer;
Jacksonville Correctional Center - Patrick Clarey, Correctional Officer;
Lawrence Correctional Center - Rachel Nielsen, Correctional Officer;
Lincoln Correctional Center - Rod Morgan, Correctional Sergeant;
Logan Correctional Center - Kimberly Riggins, Correctional Officer;
Menard Correctional Center - Gary Rednour, Correctional Officer;
Pinckneyville Correctional Center - James N. Scott, Correctional Officer;
Pontiac Correctional Center - Ed Lewis, Correctional Officer;
Robinson Correctional Center - Jon Williams, Correctional Officer;
Shawnee Correctional Center - Kurtis "Todd" Hunter, Correctional Officer;
Stateville Correctional Center - Clifford Brewer, Correctional Officer;
Southwestern Illinois Correctional Center - Marvin Bateman, Correctional Officer;
Tamms Correctional Center - Albert Wehrheim, Correctional Officer;
Taylorville Correctional Center - Bryan Carlock, Correctional Sergeant;
Vandalia Correctional Center - Mark Pyle, Correctional Officer;
Vienna Correctional Center, Dixon Springs IIP - Max Nance, Correctional Officer;
Western Illinois Correctional Center - Tim Megginson, Correctional Officer;
IYC - Chicago; Sandra Binion, Youth Supervisor II; IYC - Harrisburg - Eugenia Newlin, Youth Supervisor II; IYC - Joliet - Charlie Jordan, Youth Supervisor III; IYC - Kewanee - Ted Phillips, Youth Supervisor II; IYC - Murphysboro - Jeff Coleman, Youth Supervisor III; IYC - Pere Marquette - Shawn Wiser, Youth Supervisor II; IYC - St. Charles - Bruce Cavins, Youth Supervisor II; IYC - Warrenville - Orlando Salazar, Youth Supervisor II.
 

Union urges state not to cut corrections budget funds
Department officials say funding, staff are sufficient
by Maggie Borman
Jacksonville Journal-Courier
07 May 2003
SPRINGFIELD - Officials with the Illinois Department of Corrections and the largest union representing state employees said that it is imparitive that the legislators not cut the department's General Revenue Fund allocation of $1.3 billion any further.
"It is critical that legislators understand how dire the situation is in Illinois correctional facilities," Henry Bayer, executive director of the American Federation of State, County, and Municipal Employees, testified at an appropriations hearing in Springfield last week. "Early retirement has decimated the front-line ranks in state prisons, even as the inmate population is on the rise again. There is a crying need for more bed space and more staff. It has become an issue of safety."
Mr. Bayer, who was flanked by more than 100 uniformed correctional officers from facilities throughout the state, said legislators also must come up with a plan to fund shuttered corrections facilities.
 The budget reopens Sheridan Correctional Center, but not the Illinois Youth Center at Valley View, the work/boot camps in Greene County, Paris or Hanna City, or the 'halfway house' adult transitional centers that have been closed," he said. "Reopening these components of the system would go a long way toward easing overcrowded conditions and reducing the pressure on other facilities."
While reopening all the closed facilities had been a promise made by Gov. Rod Blagojevich, the bleak reality of a $5 billion budget deficit makes it unlikely he can keep that promise.
Although Greene County residents and Department of Corrections staff, as well as state Rep. Jim Watson, R-Jacksonville, and Illinois Senate Majority Leader Vince Demuzio, D-Carlinville, had tried to keep the Greene County Impact Incarceration Program open, the boot camp was closed by the state last September. Located between White Hall and Roodhouse, the 200-bed facility, which opened in 1993 and housed non-violent male first-time offenders, has remained shuttered.
 The Department of Corrections said the prison population is down to approximately 43,250 inmates, compared to the all-time high of 46,700, and that Gov. Rod Blagojevich's Department of Corrections' proposed budget addresses many of the department's needs.
  "I don't want to downplay how important it is to have adequate staff in our facilities," Department of Corrections spokesman Brian Fairchild said, "but the 2004 budget takes care of those concerns."The fiscal year 2004 corrections budget proposed by Gov. Rod Blagojevich of nearly $1.3 billion is up from fiscal year 2003's $1.2 billion budget and includes $23.8 million to reopen the Sheridan Facility in January 2004. The corrections budget also allocates $6 million to parole expansion, Mr. Fairchild said, including 60 new parole agents and four additional parole supervisors.  The expansion will help support the governor's newly launched "Operation Spotlight" program that tightens parole supervision. The budget also assumes a $16 million reduction in administrative costs that will be found by not filling vacant administrative positions and targeting reductions of management employees in the department.
  "So, the good news is the streamlining of bureaucracy at DOC while providing front-line staff at the facilities," Mr. Fairchild said. "The budget will allow DOC to add staff at facilities throughout the state by redirecting the savings from early retirement and less management layers. We don't have exact numbers yet, but there will be an increase in front-line staff."
  While some legislators have questioned the logic of attempting to reopen shuttered facilities, given the state's budget crisis, others questioned the sense in allowing the buildings to remain vacant and serving no purpose.
  The Department of Corrections is trying to find alternative uses for the facilities. "While everything is tentative right now, we are in discussions wih Homeland Security on options on how best to use the bed space available," Mr. Fairchild said. "Though I can't say how many of the closed facilities would be used, they did mention they would like to look at facilities closer to Chicago, such as Joliet, a 640-bed site, and having a new reception and classification facility housed in the Stateville facility."
  AFSCME regional director Buddy Maupin, of AFSCME's Marion field office, said the governor's budget reflected some of the union's concerns for maintaining prison security through front-line staffing, cutting bureaucracy and drug abuse treatment programs for inmates. Yet, he said he feels the budget glass remains only half-full:
  "Our testimony on the budget is that it's a mixed bag, and that reopening of closed facilities is a budget area that needs improvement."
Maggie Borman can reached at maggieborman@hotmail.com

Corrections lays off 20; eight in central office
By Bernard Schoenburg
Political Writer
State Journal Register
03 May 2003
 
The Illinois Department of Corrections has cut 20 jobs in a money-saving move, spokesman Sergio Molina said Friday.
Eight of the people worked at the department's central office complex in Springfield and were informed Thursday, Molina said.
One of them is Jack Pecoraro, the chief of administrative services who was paid $112,248 annually. Pecoraro had been head of the Secretary of State Police for a time when George Ryan was secretary of state. Pecoraro moved to Corrections during Ryan's term as governor, Molina said.
Pecoraro was serving a four-year term, but the position was abolished.
"We're streamlining the bureaucracy," Molina said, adding that the layoffs do not affect jobs with direct contact with inmates. "The emphasis and priority is on front-line staff."
The employees will remain on the payroll until the end of May, he said.
"This is the layer of bureaucracy that the governor has been talking about at the Department of Corrections," said Tom Schafer, spokesman for Gov. Rod Blagojevich. "In the budget speech, the governor talked about how there were five layers of bureaucracy and not enough people that are handling the actual work with the inmates. He obviously agrees that we do need to replace some of the correctional guards, so there most likely will be increases in many positions.
 "But as far as the upper-level administration, he felt it was top-heavy."
  Acting director Don Snyder is running the department. Blagojevich on Thursday announced his choice for a new director -- Macon County Sheriff Roger Walker Jr. -- who is expected to take over in June and whose job is subject to Senate confirmation.
  A list issued by Corrections of the departing employees included one retirement. Molina said Edward Green decided to retire from his job as assistant deputy director in a region of southern Illinois.
  Other Springfield-based employees on the layoff list include executive secretaries Linda Kane and Debra Stout; human resource assistants John Garry and Barbara Workman; executive secretary Mary J. Heard; administrative assistant Sharlyn McBride; and Rick Oakley, commander of a special operations team designed to respond to emergencies.
  Corrections will continue to have emergency responders, Molina said.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com

Blagojevich picks prisons chief
     
 
The Associated Press

May 1, 2003, 10:45 AM CDT

Gov. Rod Blagojevich has picked Macon County Sheriff Roger Walker Jr. to run the state prison system, administration sources said Thursday.

Blagojevich scheduled a news conference in Decatur for Thursday afternoon to announce his nominee.

Walker would be the Democratic governor's second appointee as director of the Corrections Department. The first, Ernesto Velasco, stepped aside amid allegations of systematic beatings of prisoners at the Cook County Jail while he was administrator there.

Walker, the first black man elected sheriff in Illinois, did not immediately return calls seeking comment.

Walker, 54, has been in law enforcement for more than 30 years. He joined the Macon County Sheriff's Department in 1971 as a deputy and has twice been elected sheriff, the first time in 1998.

He also served on Blagojevich's transition team, working on the committee handling crime and safety issues.

Velasco resigned seven weeks after Blagojevich named him to the post. The governor initially hailed the Mexican immigrant as an example of the American dream of reaching the top through hard work.

But he put the appointment on hold after the Chicago Tribune reported allegations of prisoners being mistreated. Velasco later stepped aside, saying he did not want the controversy over his appointment to distract from the department's work.

Walker prompted complaints from Macon County inmates in 2001 when he cut back on the number of hot meals served at the jail. Walker, saying a tight budget left him no choice, began serving just one hot meal a day.

Inmates complained that he was starving them, but Walker said the meals met all state nutrition guidelines

State police vehicles outnumber officers
Governor freezing purchases to save $8.5 million
By PAT GUINANE
STATE CAPITOL BUREAU
28 April 2003

From a 1951 Ford Del Rio wagon to a dozen 2003 Chevy Impalas, Illinois State Police have 2,429 vehicles, or enough to draw the attention of a new governor facing a big budget deficit.
The state police do not need more cars than officers, Gov. Rod Blagojevich said in unveiling his fiscal 2004 spending plan two weeks ago.
He listed the size of the agency's fleet among examples of bureaucratic inefficiency that include high-priced real estate for state agency offices, overspending on items ranging from computers to windshield washer fluid and the Department of Corrections' airplane.
"The kind of waste I just described may be hard to find," the governor said. "But it's easy to cut."
Blagojevich's proposed budget includes no money for new police vehicles in the fiscal year that begins July 1, meaning state police will have to continue to use current vehicles while odometers continue to roll forward.
"Public safety is not going to be affected," said Master Sgt. Rick Hector, a state police spokesman. "Like all other state agencies right now, we're all having to tighten our belts and make do with what we have."
Blagojevich expects a freeze on new vehicle purchases and improved management to slash roughly $8.5 million from next year's bottom line.
But for the state police fleet, that could actually mean a significant reduction. For instance, the agency had 2,461 vehicles when the governor's budget was put together. Since then, 32 vehicles have been lost to attrition, Hector said.
Some are totaled in crashes, and others simply reach a point where they are beyond repair, he explained.
Although the governor already has canceled a $2 million state purchase of 124 passenger vehicles, Blagojevich spokesman Tom Schafer said vital transportation needs will be met.
"The governor has not banned the purchase of state vehicles entirely," Schafer said. "If they have a request for a particular vehicle or vehicles, those are things that the governor's office is reviewing. There's no outright ban."
With 361 more vehicles than officers, the state police would appear to be an obvious place to cut. But the numbers alone are misleading, the agency says, as only about 2,000 of its vehicles are on the front line. The rest are mostly backup patrol cars, along with training and utility vehicles.
The average odometer reading of a state police car is 83,555 miles.
The 21 state police districts keep in reserve 263 vehicles, or a little more than 10 percent of the fleet - a tactic Larry Trent, the agency's new director, explained to state senators earlier this month.
"It's not unusual for cars to be in the shop," Trent said. "For instance, in District 11 (the Metro East area), which has over 100 troopers, it's not unusual, on any given week, for six or seven cars to be in the shop. So you're going to necessitate another six or seven cars available, at least, for a district that size."
The state police assign 49 vehicles to administrators, have 156 support vehicles - mostly vans and trucks - and allot 25 cars to its cadet training facility in Pawnee.
For patrol, the state police rely on just a few models.
Until the mid-1990s, the Chevrolet Caprice was the most popular patrol car for the state and a number of other police agencies. But the model was discontinued in 1997, steering police purchases to the Ford Crown Victoria and the Chevy Impala.
At 1,213 and 193 cars, respectively, those two models are the most popular among the state police, followed by the 132 Caprices still in use and 110 Dodge Intrepids the agency deploys.
There are also a small number of Pontiacs, Plymouths and Oldsmobiles among other makes in the mix, and even a Lexus or two. Most of the more exotic models were confiscated in drug busts and are used for undercover work, Hector said.
The fleet has a bit of muscle, too, with troopers in 23 Chevy Camaros and 15 Ford Mustangs patrolling for speeders.
"They have been very successful," Hector said. "Most people, when they see a marked squad, pretty much behave. But when they see a car like a Mustang or a Camaro out there, they just don't even think (of) that being a squad."
At least one state police vehicle is for show only. With just under 80,000 miles logged, the 52-year-old Del Rio is merely a display car for events such as the Illinois State Fair.
Pat Guinane can be reached at 782-6883 or patrick.guinane@sj-r.com.
 

DOC audit: Gun records sloppy
 Ag manager found on Corrections payroll
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
24 April 2003
The Illinois Department of Corrections failed to keep proper track of all its weapons and had on its payroll a manager with a different agency, state auditors said Wednesday.
Responding to the report from Auditor General William Holland, Corrections officials said they were taking steps to eliminate such problems.
Auditors said one weapon on the department's inventory listing couldn't be located. In addition, they said, Corrections did not properly identify where more than a dozen other weapons were.
"Failure to account for all weapons of the department increases the risk that an unauthorized individual could gain access to a firearm and leaves the department and the state exposed to a risk of liability," Holland said in the audit covering a two-year period ending June 30, 2002.
Corrections spokesman Brian Fairchild said the agency has tightened procedures for keeping tabs on its firearms.
"It's very important to be accountable for those weapons," he said.
Lapses usually are the result of an employee forgetting to fill out paperwork that would take a weapon off the department's inventory, Fairchild said.
In a separate finding, auditors identified an employee, Lynnette Jones, who was on the Corrections payroll but working for the Department of Agriculture. Jones had been executive assistant to Corrections Director Donald Snyder, Fairchild said.
Agriculture spokesman Jeff Squibb said Jones had been the agency's personnel director but that she is no longer there.
When Jones moved to Agriculture, Corrections wanted to retain her expertise on drug-testing and other issues, Fairchild said.
Auditors said an intergovernmental agreement specified that while Jones would stay on the Corrections payroll, Agriculture would repay Corrections for her salary and benefits. From March 2001 to June 30, 2002, Corrections paid her $136,562, the audit said, while Agriculture reimbursed Corrections about $130,000.
However, Corrections officials couldn't provide any documentation that she had spent time on agency-related issues, auditors said.
"A state agency should only pay the salary and benefits of employees from whom they received services," the auditor general's report said.
Fairchild said much of Jones' work for Corrections was done over the telephone.
"Could we have documented that better? Yes," he said. "Will we in the future? Yes."
Auditors also criticized Corrections for failing to:

Notify the proper authorities about two juveniles who escaped from the department's custody.
Seek reimbursement from inmates to cover their incarceration costs, as state law allows.
Report the value of state housing benefits as employees' income, which is required by state law and federal regulation.
Update the addresses of all discharged sex offenders in its Offender Tracking System.
Meanwhile, overcrowding remains an issue, according to auditors' findings. On average, Corrections facilities exceed their rated total capacity by about 30 percent.
Designed for a total capacity of 34,987, the facilities housed an average total population of 45,455 at the time of the audits.
Fairchild said the existing prison population is about 43,200, a marked decrease from its high point of 46,500 two years ago.
"Nobody can really explain it," he said of the drop.
The inmate decline puts the department in a better position to deal with budget cuts that include suspending construction on two prisons, Fairchild said.
The auditor general also released almost 40 reports of individual Corrections facilities Wednesday.
At Lincoln Correctional Center, auditors said, more than $2.6 million improperly was used to pay food costs at other correctional facilities, with more than $2.3 million diverted to Logan Correctional Center, also in Lincoln, and $270,000 for the Concordia Training Academy.
Auditors criticized the practice of paying expenditures at other correctional facilities, saying it "distorts operating statistics and circumvents the appropriation control of the legislature."
At Taylorville Correctional Center, auditors said a former timekeeper boosted her pay by more than $1,800 because she inappropriately had access to the records on which her pay was based. The center recovered the money from the employee.
Many of the audits revealed no serious problems at individual facilities. Those include Jacksonville Correctional Center and Graham Correctional Center in Hillsboro.
 

Audit finds Correctional Industries overpaid Pana warehouse owners
 
By DOUG FINKE
STATE CAPITOL BUREAU
24 April 2003
Illinois prison officials paid more than $53,000 to the owners of a Pana warehouse even though the payments weren't part of their lease agreement, an audit shows.
The report released Wednesday by Auditor General William Holland's office also noted that the Department of Corrections' Correctional Industries had spent nearly $1.2 million on a computer system that isn't operational five years after work on it began.
Auditors said Correctional Industries should not have made $53,000 in additional payments for the warehouse it leases near Pana, in southeastern Christian County. The payments included $46,800 for installation of a security system, even though the original lease called for the warehouse owners to install it, and $6,200 for three months' back rent on space not included in the lease. Corrections Industries used the space but did not initially pay rent for it.
Corrections officials defended the security-system purchase, saying it was never supposed to be provided by the warehouse owners. However, the agency said it will try to recover the $6,200 in extra rent payments if it is determined they were improperly made.
"We're working to see if that was done correctly," said Corrections spokesman Brian Fairchild. "There is no argument we used the space."
Auditors again criticized the warehouse lease itself because Corrections has never shown it to be cost-effective. When the state initially rented the former Essex Wire plant in 2000, agreeing to a 10-year, $4 million lease, it was owned by Springfield developers Robert Egizii, Dennis Polk and John Pruitt. The three and businesses they owned contributed more than $66,000 to the campaign fund of Gov. George Ryan.
All three denied that the contributions had played any role in the warehouse lease. However, critics contend the bid specifications for the warehouse space were written so narrowly by Corrections that only the Pana building qualified.
The warehouse deal is an example of Correctional Industries not weighing the costs and benefits of its operations, auditors said, also citing the doll-making operation at the Lincoln Correctional Center.
Correctional Industries - which teaches job skills to inmates - decided to start producing rag-style dolls that could be sold at craft shows and bazaars, auditors said. But while 850 dolls were made, only 296 were sold, at a loss of $5,887. The doll-making operation will be discontinued.
Fairchild said Corrections is "willing in some cases to take some kind of hit" in developing new industries programs.
"They wanted to give more (work) assignments to women at Lincoln," he said. "It looked like this might work."
Auditors also criticized a plan for inmates at the Vienna Correctional Center to train wild horses brought in from the West and turn them over to the federal government. Although Correctional Industries said it had produced a cost/benefit analysis for the idea, auditors said there was no paperwork to prove it.
Fairchild said the department pulled the plug on the program before it began.
Auditors found that the Correctional Industries computer management system was projected to cost $770,000 five years ago. The state has spent more than $1.1 million, and it is only partially working.
Fairchild blamed the delay on lack of funds and staff shortages caused by early retirement.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Union state employees escape cuts - so far
 
By RICH FREDERICK
STATE CAPITOL BUREAU
12 April 2003
SPRINGFIELD - In his proposed budget, Gov. Rod Blagojevich is asking non-union state employees to forgo pay raises and wants managers to start contributing to their pensions. Could union employees be next?
Under Blagojevich's plan, state government will not offer merit pay increases to non-union employees this year, saving an estimated $14.2 million. Managers also would be asked to begin contributing 4 percent of their salaries to their pensions, saving an estimated $28.4 million because state government now pays that contribution.
At a briefing Tuesday, budget director John Filan told reporters that a pension-contribution requirement would be used as a starting point in negotiating the state's next contract with the American Federation of State, County and Municipal Employees.
AFSCME Council 31 Executive Director Henry Bayer said it is too early to start negotiations but indicated the union would not accept members contributing to their own pensions without larger pay increases.
"We negotiate at the bargaining table, not with Mr. Filan," Bayer said. "Mr. Filan hasn't been around state government that long and doesn't know the history of it. I'm sure once he learns the history of how that happened, he will forgo that position."
AFCSME's current contract with the state runs through June 30, 2004. Under that contract, employees are guaranteed a 4 percent raise on July 1 and continue to have their pension contributions picked up by the state. Bayer said negotiations for the next contract are scheduled to begin in December.
Union employees make up about 70 percent of the state work force. Last year, former Gov. George Ryan asked AFSCME employees to forgo a pay raise to help balance the state budget. AFSCME rejected Ryan's request and, in turn, the governor shuttered a number of facilities that employed mainly union members, such as Zeller Mental Health Center in Peoria.
Critics say union employees should have been asked to make a sacrifice to balance the budget, considering that nearly everybody else was.
"Sacrifices do have to be made in this situation, but I don't think it's fair to ask some to sacrifice and not others," said Senate Minority Leader Frank Watson, R-Greenville.
Watson said Blagojevich's failure to ask the unions for help might be his way of paying back "political IOUs." Blagojevich received more than $1.1 million in campaign contributions from unions representing state employees in 2001-02.
Political scientist Kent Redfield said union workers were spared in the budget because Blagojevich might have wanted to avoid the hassle of reopening contracts, preferring instead to deal with organized labor in next year's budget and at the bargaining table.
"It is extremely difficult task to reopen a contract, and we're in a situation where that is not a viable option. He was able to finesse his way through it this year," said Redfield, associate director of the Institute for Legislative Studies at the University of Illinois at Springfield.
Redfield said that Blagojevich's treatment of union employee in the budget does not mean he will be soft in negotiating the next contract.
"He's not going to jeopardize the state budget or his political future by giving extravagant rates to the unions. The real question is if he will restore the cuts for merit employees if we are in a better financial situation next year," he said.
Rich Frederick can be reached at 544-2819 or richard.frederick@sj-r.com.
 

Governor's plan to fix budget may fall short
Savings could be less than forecast
By Rick Pearson and Ray Long, Tribune staff reporters. Tribune staff reporter Diane Rado contributed to this report
April 12, 2003
SPRINGFIELD -- Gov. Rod Blagojevich's controversial plan to sell state buildings and halt construction on a new women's prison could yield far less in savings than he is counting on to help dig his government out of a multibillion-dollar budget hole, state officials acknowledged Friday.
In the budget he delivered to lawmakers earlier in the week, the new Democratic governor estimated he could generate $200 million in a deal that would sell the state's showcase Thompson Center office building in Chicago's Loop, then possibly lease it back.
He also said $30 million could be realized by selling the Illinois State Toll Highway Authority's headquarters in Downers Grove, and forecast $76.3 million in savings by halting construction of the partly built prison in the impoverished Kankakee County community of Hopkins Park.
But supporters of the prison, as well as one of its major contractors, said the state is contractually obligated to reimburse construction firms for materials, potential lost profits and manpower costs if it stops the work. They estimated the price for all that could total more than $40 million, cutting the governor's projected savings by more than half.
Tollway officials, meanwhile, said state law precludes Blagojevich from using proceeds from the sale of their headquarters for anything other than tollway business, meaning he would have to get the law changed to use the money to help defray the budget deficit.
Critics of the Thompson Center sale proposal said the value of such a deal could be undercut because the state may have to continue making payments on bonds used to finance construction of the building in 1985.
In another potential setback to the governor's budget plans, his administration agreed Friday to reinstate $65 million it had planned to cut from a state subsidy to the Chicago teachers pension fund.
The planned subsidy cut took some local officials by surprise and strained relations between the governor's office and the Chicago Public Schools. Restoration of the money came as both sides blamed the cut on a "mutual miscommunication," but the move means Blagojevich will be forced to find money to pay for it from other places in a state budget plan that is extremely tight.
Prison work already started
Former Gov. George Ryan broke ground on the Hopkins Park prison in September, and $13 million has already been spent. The facility, which had been scheduled to open in early 2005, was designed to house 1,800 female inmates.
Blagojevich spokesman Tom Schafer acknowledged Friday that "there are contractual obligations we would have to meet if, indeed, we did close the project down." But Schafer said administration officials were reviewing the contract and it was premature to estimate the ultimate costs of putting the project on ice.
"There may be things we would have to pay such as company overhead, profits, equipment and supplies, and even the potential loss of work since [the contractors] took this job on," Schafer said. "There are a number of costs that would be associated with [a shutdown], but we're not prepared to give a dollar amount on what that might be."
In his budget message, Blagojevich called for a suspension of the project rather than an outright abandonment, and some officials suggested the distinction could lessen the costs to the state.
But Jim Barr, president of River City Construction of East Peoria, one of the prime construction contractors on the project, said various engineering, architectural and construction firms associated with the project have put the tab "in excess of $40 million ... to pay for everything that's been done and close out all of the subs and suppliers.
"It would be a considerable process to terminate all of our subcontractors and actually do the right thing by all the people who are involved," Barr said. "I'm hopeful the state will find this is not a good economic move and go on and built it. I don't blame them for looking for ways to save taxpayers' money. I'm for that. But I don't see how this could make any sense."
State Rep. Phil Novak (D-Bradley), whose district includes the project, said "too much dirt has been turned" on the prison to shut down construction.
"I understand [the Blagojevich administration is] trying to be creative and save money," Novak said. "And I think there are many things in his budget that I support. But stopping a project that's already started ... will probably end up costing the state more than it would save."
Taking aim at `Taj Mahal'
The tollway building that the governor wants to put on the block, built in 1992 for $25.6 million, has been widely attacked as an opulent "Taj Mahal" that symbolizes bureaucratic waste. But critics of any sale contend that proceeds from such a transaction would belong to tollway bondholders and could not now be tapped for general use by the state.
Bruce P. Weisenthal, an attorney with the Chicago firm of Schiff Hardin & Waite and the bond counsel for the tollway, said state law governing the toll highway authority "currently does not contain language that would enable the authority to transfer money ... to the [state's] general revenue fund."
On the other hand, state Sen. Jeffrey Schoenberg (D-Evanston), a frequent tollway critic, said he believes precedent exists for turning over tollway dollars to the state's general checkbook because some properties used for tollway construction were paid from general revenues.
Blagojevich's budget also contemplates an outright sale of the Thompson Center or a deal that would allow the state to lease back the facility over time. But some lawmakers have privately questioned whether the administration would derive the $200 million in profits that it estimates would come from the transaction.
Threat of double payments
The facility cost $172 million to build, but bonds used to finance it were to be retired over 20 to 25 years, legislators said. That could mean the state would have to pay off bonds associated with the structure before it could sell it, reducing the government's take from any sale. Or, in the case of a lease-back arrangement, the state could be making two payments on the building at the same time--one to retire bond debt for its construction and another for rent.
One administration scenario calls for the state to sell the building for at least $200 million and pay a total of $300 million in lease payments over as many as 20 years before regaining title to the structure.
Blagojevich aides said some estimates have placed the structure's value at far greater than $200 million. But the administration of Republican Gov. Jim Edgar took a look at such a sale in 1991 and found it would not be cost effective.
One former Edgar aide said that although the structure contains nearly 1 million square feet of space, only 25 percent of it is usable because of its unique shape and its sizable 16-story atrium. The Edgar aide, who asked not to be identified, said one real estate official at the time estimated its value at only about $40 million.
Blagojevich aides, however, defended the $200 million figure for the Thompson Center as a "conservative" estimate based on a consultant's study that examined the structure's Loop location and the value of downtown rental properties.

 
 

Inmate to go from Death Row to altar

    
 

March 23, 2003

JOLIET -- Word from Stateville Correctional Center has it that recently pardoned Death Row inmate Stanley Howard is planning to wed one of the activists who worked to save his life.

Joan Parkin of the Campaign to End the Death Penalty confirmed that she and Howard will be married May 18. Though they have known each other for four years, Parkin said true love struck "like a thunderbolt" last year and Howard popped the question Oct. 13.

They kept it a secret for fear it would affect his case, but with his pardon signed and sealed for two months and the date fast approaching, word slipped.

Howard, who remains imprisoned on a sexual assault conviction, plans to ask prison officials to let him make the trip to the Will County clerk's office for the wedding.

 

Statehouse INSIDER
Doug Finke
23 Mar 2003

The biggest Illinois political story of the week was nearly buried under wall-to-wall coverage of the war in Iraq. The same day the war began, a federal jury found SCOTT FAWELL guilty of all the corruption charges filed against him. It didn't take long for people to start thinking great thoughts about what this will mean for the state. A defense attorney said the verdict means the days of blurring the line between political and government activities could be over. Others said the conviction might spur new ethics reforms in Illinois.
Would that it were so.
Big predictions of change also were made after the feds got convictions in the Management Services of Illinois scandal. Defense attorney PATRICK TUITE said: "It's going to shut (Springfield) down. The lobbyists are going to be running scared."
Federal prosecutor RICHARD COX said, "We hope it turns business on its head. The verdicts represent the public's unwillingness to tolerate influence-peddling and government-for-sale tactics."
For the record, those statements were made in 1997 - just as Fawell was cooking up his plan to get GEORGE RYAN elected governor. That plan included having the state pay for campaign workers and stealing state equipment for the campaign. Such much for convictions bringing reform.

Run Fawell's name through spell check on some word processing programs (it doesn't work on Microsoft Word), and the options you're given include "farewell," "fallen" and "flawed." Eerie, isn't it?
Ryan was spotted Friday in the state comptroller's office on Adams Street in Springfield. It's the place where state checks are printed and distributed. Turns out Ryan was arranging direct deposit of his state pension check. Shucks, we thought maybe he was there to complain about not getting money he is due - like about a zillion other Illinoisans.
This had to be the worst nightmare for state prison workers. The infamous DONNIE SNYDER is back as director of the Department of Corrections. Most people thought Snyder was gone after Gov. ROD BLAGOJEVICH was elected. Well, he was finished as director, but he stayed in the agency as a budget guy. Then Blagojevich's nominee for Correction's director, ERNESTO VELASCO, withdrew his name after reports surfaced of mass beatings at the Cook County jail while he was director there. Voila, Blagojevich appoints Snyder as acting director. How convenient that Snyder was still available.
Prison workers are livid. If Snyder isn't the most detested director in Illinois history, he is close, because he laid off guards, closed prisons and tried to privatize some prison jobs. Just when prison workers thought they were finally rid of the guy, he's baaaaack.
AFSCME, the union that represents prison guards and other state employees, is angry. It endorsed Blagojevich and gave him a ton of money. It has yet to see any return on its investment -and now it once again has to deal with Snyder.
Blagojevich insists Snyder's reappointment is only temporary. If he wants to keep peace with AFSCME, he'd better be telling the truth.

Blagojevich constantly sings the praises of small businesses and how much he wants to help them. His lieutenant governor, PAT QUINN, recently criticized state incentives given to large companies. So it surprised some people when Blagojevich showed up in Bloomington to take credit for the $22 million in tax incentives given to that cottage industry known as Mitsubishi Motors. Mitsubishi is expanding and will create 300 new jobs. That means the state will spend a little more than $73,000 for each new job.
It pays to be flexible.

The House last week approved Blagojevich's plan for issuing bonds to support state pensions - something he said is crucial to balancing the budget. The governor was so excited he decided to hold a news conference outside his office on the Capitol's second floor. The backdrop for the conference was the glass doors that lead to the office reception area. Before the news conference started, a loyal staffer came out and spritzed glass cleaner on the doors so they would look just right for the TV cameras. You didn't see that attention to PR detail with Ryan, or JIM EDGAR or JIM THOMPSON.
These guys may or may not balance the budget, but they'll look good trying.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

Risky State Business
Rich Miller
23 Mar 2003
You may have heard that Governor Rod Blagojevich wants to "refinance" some state debt, which will supposedly free up $1.9 billion to help close the state's massive $4.8 billion budget deficit.
But the media coverage of this plan has been ill-informed, at best, mainly because the governor has done a good job of obfuscating the issue.
The editor of the respected Pensions & Investments newspaper penned a column last week slamming the bond proposal as "ridiculousness." She also criticized Illinois reporters for not realizing that the governor's use of the term "refinancing" is incorrect.
What's going on here? It's complicated, but stay with me a minute. Blagojevich says he is refinancing debt. The "debt" in question is money the state is required to pay into the pension system in years to come. That's not technically "debt," so it can't actually be refinanced. But Blagojevich insists that future obligations are a form of debt. Anyway, the governor claims that by borrowing $10 billion now at six percent interest and then investing it and praying for an eight percent return, he can repay the bonds, and make a few bucks on the deal.
But, this is where it gets weird. The governor wants to "book" all of the profits right away. This means all of the profit that was supposed to be made off of the $10 billion in investments over the course of the 30-year bonds will be realized immediately. How does he do this? By instantly spending $1.9 billion of that $10 billion before it has earned a nickel in interest. If this sounds to you like some Enron scheme, well, you're not far off the mark.
A few of Enron's ideas worked, however, so this might, too, but there is concern that it could have a negative effect on the state's bond rating, and there's plenty of worry about what could happen if the state invests in the wrong stocks and loses a lot of the cash.
The House passed the bond bill last week. The proposal required a three-fifths vote to pass, so it needed a bipartisan majority and several Republicans supported the Democratic governor.
The big problem may be in the Senate, where the Republicans appear to be balking at supporting the plan. The Senate Repubs are saying publicly that they want to wait and see what the governor's budget looks like first. Privately, they say they may only agree to a drastically scaled-back, $3 billion proposal this year, and maybe another $3 billion next year.
Adding fuel to the fire could be Treasurer Judy Baar Topinka, who told the Legislative Audit Commission last week that she had several concerns about the proposal and indicated that she may not support it. Topinka has talked to several rating agencies and public finance experts who tell her that the proposal is risky. The treasurer would reportedly like to see Blagojevich cut the budget much further before he moves his bond bill. Topinka is a former state Senator, and she still has a lot of influence with Senate Republicans, who could use her for political cover if she ends up opposing the legislation.
But here's the real bottom line, and the main reason why so many House Republicans climbed on board last week. Without this borrowing plan, the state will be forced to make a huge pension payment in a few months and then several more next fiscal year with money that the government simply doesn't have. So, either the state borrows now, or it uses money that would otherwise go to schools, roads, public safety and human services to make those pension payments. Or it raises taxes on business. The state could also change the law to skip a few pension payments, but the governor has said he won't ever do that and it's doubtful that the conservative Senate Republicans would agree to such an idea. And they definitely won't go for a tax hike on their friends in the business lobby.
This should be a fascinating game to watch. Every tax-eating group imaginable is currently ginning up thousands of phone calls and letters to legislators. The media has so far taken a liking to the borrowing idea, so the editorial pages could turn against any obstructionists. And, of course, there's always the gubernatorial threat of losing local projects and jobs if anyone says "No." Let the fun begin.

 

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Snyder resumes Department of Correction position
By Beth Coldwell
March 20, 2003
Over the weekend, Donnie Snyder of Pittsfield stepped back into his former position as Illinois Department of Corrections director. Over the weekend, Donnie Snyder of Pittsfield stepped back into his former position as Illinois Department of Corrections director after the resignation of Ernesto Velasco who was appointed to the position by Gov. Rod Blagojevich less than two months ago.
"Any time the governor asks you to serve, you do it," Snyder said, adding that his tenure in the position will be "indefinite." Snyder directed the department under the administration of former Gov. George Ryan. After Velasco was appointed to the post, Snyder was named deputy director of the department and assisted in the transition. He said he had planned to continue in the deputy director position until last week when Blagojevich asked him to return to the top post.
Velasco sent a three-paragraph letter of resignation to the governor Friday afternoon in response to a flurry of allegations that inmates had suffered brutality at the hands of guards during Velasco's tenure as Cook County jail administrator in 2000.
The letter of resignation reads:
"I am writing today to request that you accept my resignation as Director of the Illinois Department of Corrections. My deep and unyielding respect for the Department of Corrections and its vital mission requires that I resign, so that the public issues surrounding my appointment do not overshadow the department's mandate.
"Keeping Illinois' correctional facilities secure, effective and efficient is an integral component of state government. We cannot allow anything to stand in the way of accomplishing those goals.
"I respectfully request that you accept my letter of resignation. I appreciate your support throughout this trying process."
 

 

Prisons leader resigns; governor takes heat over replacement choice
15 Mar 2003
SPRINGFIELD A labor union ally criticized Gov. Rod Blagojevich for re-appointing Donald Snyder director of the Illinois Department of Corrections to replace Ernesto Velasco, who quit the post Friday.
Velasco announced his resignation in a late-afternoon news release. His nomination ran into trouble after a Chicago newspaper reported that Velasco had failed to investigate allegations of inmate beatings at the Cook County Jail. Velasco headed the jail before Blagojevich made him the acting director of the Corrections Department.

My deep and unyielding respect for the Department of Corrections and its vital mission requires that I resign so that the public issues surrounding my appointment do not overshadow the departments mandate, Velasco said.
Blagojevich touted Velasco as an American success story while announcing his appointment in February. Velasco immigrated to the United States from Mexico at age 13.
But the governor expressed no remorse for Velascos resignation Friday. Today I accepted Mr. Velascos resignation. We are working actively to appoint a new director as quickly as possible, Blagojevich said.
Spokesmen for Blagojevich would not accept telephone calls seeking further comment. The news release did not indicate who would replace Velasco.
Henry Bayer, the executive director of the American Federation of State, County and Municipal Employees, said administration officials spoke to him about Snyders appointment.
They said they appointed Donnie Snyder as a temporary director, but we think that was an error in judgment and a move in the wrong direction, Bayer said.
He noted that Blagojevich campaigned against the policies Snyder pursued under former Gov. George Ryan.
It was on his watch that all of the facilities were closed. It was on his watch that the privatization initiatives were taken, Bayer said. It was under his watch that the number of administrative positions increased and it became top-heavy.
Bayer said the agency needs permanent leadership to replace thousands of guards who have left because of early-retirement incentives and layoffs.
Snyder also was criticized during his tenure for using a state airplane and an official car to attend political and private events.
Velasco is the second high-ranking member of the Blagojevich administration to depart this month. Deputy Gov. Doug Scofield announced his resignation March 3, saying he wanted to spend more time with his family.
Richard Goldstein can be contacted at (217) 782-4043 or richard.goldstein@lee.net.
 

Velasco resigns
By John O'Connor
Associated Press Writer
March 14, 2003, 4:39 PM CST
SPRINGFIELD, Ill. -- Ernesto Velasco, Gov. Rod Blagojevich's nominee to run the state Corrections Department, resigned today amid allegations of brutality during his tenure as director of the Cook County jail.
Velasco's resignation letter said he was stepping down so that the scandal didn't engulf the state prison system and its mission.
"My deep and unyielding respect for the Department of Corrections and its vital mission requires that I resign so that the public issues surrounding my appointment do not overshadow the department's mandate," Velasco wrote in his letter to the governor.
An aide to Blagojevich said the governor did not ask for Velasco's resignation, but that he offered it on his own.
The aide said no one had been named to replace Velasco. Former Corrections Director Donald Snyder, who currently is deputy director overseeing the agency's budget, declined comment.
Blagojevich put Velasco's nomination on hold last month, saying he wanted more information about the brutality allegations.
The Chicago Tribune reported that Cook County Jail guards beat and terrorized inmates in a maximum security unit on a night four years ago and then filed false paperwork to cover up the alleged rampage.
Inmates, sheriff's sources and internal documents said guards, clad in riot gear and accompanied by four guard dogs without muzzles, ransacked inmates' cells.
According to those making the allegations, the guards then ordered about 400 prisoners to strip and had them line up against jail walls. Prisoners were struck with batons for not moving fast enough or for looking away from the wall, and some were ordered to lie down where they say they were stomped and kicked.
Velasco, 50, of Chicago, was named director of the Corrections Department on Feb. 4, less than two weeks after he retired as executive director of the jail. He held the post for seven years.
He denied knowing anything about the alleged violence.
Velasco, who was appointed to the state post at a salary of $127,570, told an Illinois House committee that he later heard about the incident and turned the information over to the jail's investigative unit.
"They initiated the investigation, and I never heard back from them again," Velasco told lawmakers. "I did not check into what was taking place during the investigation because it is not the policy of the director's office to interfere with the investigation."
Another of Blagojevich's appointments, which must be confirmed by the Senate, has been criticized as well. Sal Diaz allegedly was fired from the state Department of Children and Family Services for "job abandonment" in 1992.
Diaz, who Blagojevich appointed to head the DCFS child protection unit, said he thought the department had accepted his resignation in 1992.
Senate Judiciary Committee Chairman John Cullerton, a Chicago Democrat, suggested Friday that people named to state cabinet posts are too closely scrutinized. Cullerton was unaware of Velasco's resignation, but said cabinet appointments largely are public-service minded and do not make such large salaries that justify the media inspection they undergo.

Blagojevich 'dreams big'
Outlines proposals on slim budget
 
By DOUG FINKE
STATE CAPITOL BUREAU
14 mar 2003
Gov. Rod Blagojevich used his first State of the State speech Wednesday to outline what he called an ambitious agenda for Illinois that nonetheless carries a bargain-basement price tag.
Blagojevich said he wants to create a prescription drug program for senior citizens, expand health-care programs for the poor, reopen the closed Sheridan Correctional Center, make preschool available to every child and provide business incentives, all at a cost of $88 million to the state.
The governor also called for an increase in the minimum wage, passage of a pay-equity law in Illinois and for parents to be given more time off from their jobs to attend school activities.
"They (the public) want us to be a state that once again dreams big dreams and tries daring solutions," Blagojevich said at the close of his 45-minute speech. "If we can be as bold as the history that carried us here and as big as the future ahead of us, I believe we will be able to dream big dreams again."
Before addressing the General Assembly, the Chicago Democrat said he would not dwell on the state budget and its $5 billion deficit because he plans to deliver a budget speech April 9. But he acknowledged that the budget crisis limited what he could propose in his State of the State.
"The budget crisis is forcing us to temper our agenda," Blagojevich said. "... It won't be easy to balance the budget. It won't be easy to make progress on these tough issues, but we will."
He also addressed the state's financial situation in another portion of his speech: "In an ideal world, preschool for every child would begin tomorrow," Blagojevich said. "But an ideal world doesn't operate on a $5 billion budget deficit."
Although several ideas Blagojevich outlined Wednesday will cost state government money, he did not indicate how they'll fit into a budget hemorrhaging red ink. That was not lost on lawmakers who eventually will have to vote on a spending plan for the fiscal year that begins July 1.
"If someone was listening at home without worrying about the costs, without worrying about the specifics, they'd say, 'Oh, that sounds good,"' said House Republican Leader Tom Cross of Oswego. "The bottom line is, we need to see specific details of the proposals and the cost."
"I was wanting today to hear some substance," said Senate Republican Leader Frank Watson of Greenville. "I was wanting to see a governor take the lead in a very troubling time in this state, and I don't know that we saw that."
It wasn't just Republicans who found the speech lacking.
"I think he sounded more like he was on the campaign trail," said Sen. Denny Jacobs, D-East Moline. "I think he has to move beyond the campaign speech. Some of the programs he wants to institute, I don't see how we can do them for $88 million."
Some lawmakers have characterized the Blagojevich administration so far as one of confusion, lack of focus and disorganization. Senate President Emil Jones, D-Chicago, said Blagojevich's speech should put those concerns to rest.
"The speech indicates he is well-focused," Jones said. "He focused on the critical issues that need to be addressed, taking into consideration the serious fiscal problems we have."
House Speaker Michael Madigan, D-Chicago, refuses to speak to reporters from large print-news organizations, including The State Journal-Register, Chicago Tribune and Chicago Sun-Times. He continued that practice Wednesday.
"He's got other things to do with his time," Madigan spokesman Steve Brown said.
The costliest initiative Blagojevich outlined Wednesday was the nearly $25 million he wants to spend to begin phasing in a universal preschool program, though the state cannot afford to offer preschool to all students at this time, he said.
Next on the list was $24 million to reopen the Sheridan Correctional Center, which was closed last year for budget reasons. Blagojevich wants the prison converted to a specialized center to treat drug offenders, to open in January 2004.
Expanding enrollment in the KidCare and FamilyCare health programs for the poor will cost another $24 million, according to the governor's office. Blagojevich eventually wants to enroll an additional 20,000 kids and 300,000 adults, but it will take three years to reach those goals.
Blagojevich proposed programs that will assist in the development of small businesses and the creation of jobs, while also calling for Illinois to increase its minimum wage beyond that required by the federal government.
"A person working 40 hours a week, 52 weeks a year should not live in poverty," he said.
However, business groups contend that raising the minimum wage will cost the state jobs in the long run.
"Business owners have only one option if they can't afford higher wages. They have to let people go," said Kim Maisch of the National Federation of Independent Businesses.
Another Blagojevich proposal - requiring that businesses give parents up to three days of unpaid leave to attend school functions - is hard on small businesses, Maisch added.
Blagojevich said the state employees under his control will immediately qualify for unpaid leave to attend school functions.
As expected, Blagojevich also said he will work to lower seniors' prescription drug costs.
"The phrase 'sticker shock' doesn't begin to describe what so many people feel when they go to the pharmacy to get a prescription filled," he said.
Blagojevich created a new administration position to focus on negotiating a better price for drugs purchased by the state. That negotiating power will be used to help seniors obtain their drugs at a lower cost.
Among the other initiatives he mentioned Wednesday, Blagojevich proposed hiring more parole agents and creating $5,000 scholarships for teachers willing to work for five years in areas of the state where there is a shortage of teachers. The scholarships also would be available to teachers willing to specialize in certain subjects where shortages exist.
---
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Blagojevich's proposals
 
The Associated Press
14 mar 2003
A list of some of the promises Gov. Rod Blagojevich made in his first State of the State address, along with details and estimated first-year costs if available:

EDUCATION

Make preschool available to all children, starting with 25,000 "at-risk" children within three years - $24.9 million.
Give $5,000 annual scholarships to college students who agree to spend five years teaching in needy areas - $4.1 million.
Sign a proclamation calling for all schools to adopt national PTA standards for parental involvement.
Create an Internet system for parents to monitor their children's school performance.
BUSINESS

Pass legislation to create a $200 million, privately funded "Illinois Opportunity Fund" to invest in business.
Open six "entrepreneurship centers" around the state, with the first opening in two months - $1 million. They would dole out $1.8 million worth of business planning grants.
Raise the minimum wage to $6.50 an hour, up from $5.15.
CRIME

Double the number of parole agents - from 370 to 740 - over the next four years and tighten the supervision of parolees - $6 million.
Gradually reopen the shuttered Sheridan prison as a drug offender rehabilitation facility - $24 million.
HEALTH

Negotiate better prices for the prescription drugs purchased by various state agencies.
Work with lawmakers to let senior citizens buy prescription drugs through a single "buying club" that should get better prices.
Work with Congress to add 50,000 senior citizens into the "Circuit Breaker" program that provides free drugs to the poor and have the program cover all types of drugs.
Expand the KidCare health program by 20,000 children - $3.8 million.
The Associated Press
 

Prison reopening: Sheridan to treat drug offenders
 
By SCOTT REEDER SNG Springfield Bureau Chief
13 mar 2003
 
SPRINGFIELD Gov. Rod Blagojevich announced today that he will reopen Sheridan Correctional Center in January as a facility designed to treat drug offenders.
What we are trying to do is end the revolving door of people coming and going from prison, said Blagojevichs press secretary Tom Schafer.
The prison will reopen with a budget nearly double its previous level, he said.
Although the prison has a capacity of 974, it will likely treat 1,500 to 2,000 per year because of the relatively short sentences served by drug offenders.
But what will set this drug program apart from other prison treatment programs is that it will be geared toward treating the inmates drug habit from the time he enters the prison system until well after he is released into society.
There will be a wide range of treatment options available to inmates at Sheridan. There are similar programs on a smaller scale at prisons across the state. But this is the first time an entire prison has been set aside just for treating drug offenders, Schafer said.
Most of those treated there will be people convicted of felony drug possession, he said.
Inmates will receive medical treatment in Sheridan and then will undergo an intensive parole in which they must undergo frequent drug tests and will receive more intense supervision than other parolees. They will be identified as candidates for treatment shortly after they enter the prison system.
The prison will have an annual budget of $50 million. The previous annual budget for the prison was about $28 million.
Just how the state would pay for the facility while facing a multi-billion dollar budget shortfall remains to be seen.
Schafer said the governor will give the specifics on that when he delivers his budget address in April.
Blagojevich promised to reopen the prison, closed by former Gov. George Ryan, during the gubernatorial campaign last year. Ryan closed it as part of overall budget cuts.
The prison employed more than 400 people. The new facility is expected to employ about 450.
Schafer said the governor wants to make the prison a national model. He added there arent really any comparable programs in the United States.
Often people commit crimes because they are involved with drugs. Then they end up in prison. Once they are out of prison they are back on drugs and committing crimes. Then they go back to prison. We want to stop that revolving door, he said.

p03072003030703toon.jpg

Abolishing the Middle Class

Your Job May Be Next! - The New American - March 10, 2003
Hello and welcome to Review of the News Online. I'm William Norman Grigg, Senior Editor for The New American magazine -- an affiliated publication of the John Birch Society.
In a moment of stunning candor 24 years ago, then-Federal Reserve Chairman Paul Volcker stated: "The standard of living of the average American has to decline. I don't think you can escape that." It's difficult to find a more average couple than Jimmy and Verleen Bennett of Kannapolis, North Carolina, who -- along with nearly 6,500 employees of the Pillowtex towel factory -- were laid off in early August.
Just two years ago, reported the August 9th Washington Post, the Bennetts had bought a modest $100,000 home, "confident their combined wages would continue to support the comfortable lifestyle that had long eluded their parents." Now the couple, each of whom is working a part-time job at near minimum wage, is conducting a triage of household amenities in order to get by on roughly half their previous take-home pay. "We were middle class," Jimmy Bennett commented to the Post, before hastily correcting himself: "We still are."
Thousands of former Pillowtex workers who had struggled their way into the middle class "are fending off eviction notices, car repossessions and home foreclosures, and making difficult choices about which prescription drugs to skip and which utilities to turn off," reports the Post. "People are turning off cellphones, cutting cable TV, and pleading with creditors," adds the August 5th Christian Science Monitor. "Already, 200 have had their water shut off."
The Monitor describes the Pillowtex closing as an event akin to a natural disaster. But it wasn't a destructive caprice of nature that shut down the plant; rather, as the paper observes, it was overwhelmed by "a flood of imports from China." The Pillowtex bankruptcy, which led to the largest one-day layoff in the history of North Carolina, is a particularly dramatic example of the devastation being wrought throughout America's manufacturing economy as our trade deficit with Communist China grows.
As the Monitor reports, "Manufacturing businesses, from electronics to furniture and fishing lures, are closing their doors or moving production to China. Three members of the president's cabinet on a cross-country jaunt to promote the Bush economic plan have gotten an earful from angry businesspeople trying to compete with Chinese imports made by workers getting 50 cents an hour."
In an interview with the paper, Jay Bender, owner of Falcon Plastics in Brookings, South Dakota, described "how one of his customers, a manufacturer of fishing lures, has decided to move its production from the U.S. to China. [The fishing lure manufacturer] asked him to bid on molds to make the plastic bait. He bid $25,000 per mold. `That was a competitive price,' he said." However, the potential customer found a Chinese source charging $3,000 for each mold. "I can't even buy raw materials for that," Bender observes. "There are two possibilities: Either they are subsidized by the government, or they gave away the molds to get the manufacturing business." In order to remain in business, Bender has had to lay off nearly one-third of his workforce.
As Charles Bremer of the American Textile Manufacturers Institute points out, as textiles from Communist China and Vietnam flood the American market, "People are moving jobs faster than you can count." In 2008, all import quotas will be removed. "At that point," predicts Bremer, "the Chinese will completely dominate the market."
Ironically, at least some of the future textile imports from China will probably be produced on looms from Pillowtex's Kannapolis facility -- but those looms will be in China, operated by Chinese workers. The August 7th Charlotte Observer reported that "looms and other machinery [from Pillowtex] likely will be removed from plants, packed and shipped to manufacturers in China, Pakistan, and India."
As operator of a manufacturing economy based on what must be considered slave labor, the Communist Chinese regime enjoys an unnatural competitive advantage over American manufacturers. That advantage is compounded by our own government's perverse insistence on subsidizing, via the Export-Import Bank, the relocation of U.S. corporations to China. The Ex-Im Bank was created by the FDR regime in 1934 for the purpose of encouraging business investment in the Soviet Union. Through Ex-Im, corporate investments in China are subsidized, and any losses incurred are socialized while the profits remain private and legitimate market competition is undermined.
American corporate migration to China was originally touted as a way to exploit a huge potential market. However, as the May 1998 issue of Harvard Business Review reported, American companies seeking to do business in China "face many requirements to transfer technology or to export a certain percentage of their products made in China. Controls on foreign exchange keep them from moving funds freely out of the country."
Rather than selling goods in China, American companies are exporting goods from there -- and completing the circuit by sending jobs and plants back to China. As a result, observed Richard Bernstein and Ross H. Munro in their 1997 book The Coming Conflict with China, "China has been getting American investment capital and reaping windfall trade surpluses at the same time. As a result, China is one of the leading foreign-exchange-reserve countries in the world a bizarre situation for a poor and developing country."
Beijing's bulging trade surplus is being invested in a military build-up intended to make Communist China the dominant global power by the middle of this century. A perfect
illustration of this process -- exporting jobs, importing Chinese goods, fattening Beijing's trade surplus, and building up the People's Liberation Army -- can be seen in the case of the Magnequench facility in Valparaiso, Indiana. That plant, notes the Chesterton Tribune, produces "80 percent of the rare-earth magnets used in the production of smart bombs" for the U.S. military. Purchased in 1995 by a consortium including Chinese interests, the plant is scheduled to be relocated to China -- at a cost of 225 local jobs and the transfer of sensitive bomb-making technology.
It's not just manufacturing jobs -- including key defense-related jobs -- that are being sent overseas. In the March 10th issue of The New American, Senior Editor William F. Jasper described the incredible scene that transpired just before last Christmas at Dell Computer's Austin corporate campus. Without fanfare, Dell senior vice president Jeff Clarke told the hundreds of assembled employees -- most of whom were engineers and high-level administrative employees -- that Dell "was announcing new personnel `attrition goals' of 10 percent per year, about double the normal attrition rate. These positions would not be filled in the United States, Clarke explained. They would be
filled by new hires in India, China, and other countries where Dell is shifting business."
This dreadful announcement had been foreshadowed in 2000, when the computer giant opened its China Design Centre in the Peoples Republic of China. Shortly thereafter, Dell began to bring Red Chinese personnel to Austin for training, and to send American employees on four-to-six-month visits to China to train personnel there. Some Dell employees, thinking they spoke in jest, referred to that process as "training our replacements."
Indeed, our federal government has been training foreign replacement workers for a long time. Through the H-1B and L-1 visa programs, the feds have brought over a million foreign workers -- most of them in high-tech fields -- to work here. This has helped other countries (particularly China) develop a workforce that can compete with our own in terms of skills, while severely underbidding it in terms of price.
What we are seeing is the deliberate, systematic eradication of the American middle class as our standard of living is "harmonized" with that of other nations in the global economy. The middle class -- derisively referred to as the "bourgeoise" by Karl Marx -- is the foundation of a free society, and the chief impediment to the creation of the Total State. Hence the escalating campaign for the middle class's abolition.
Thank you for listening. Please join us again next time.
This has been Review of the News Online from The John Birch Society. For more information about what you can do to preserve our freedoms, call: 1-800-JBS-USA1.
 

 

Vacation buildup limited
Large payouts to state retirees prompts action
By DOUG FINKE
STATE CAPITOL BUREAU
6 Mar 2003
Gov. Rod Blagojevich on Wednesday moved to limit the amount of unused vacation time some of his employees can accumulate and cash in when they leave their state jobs.
However, Blagojevich acknowledged there is probably no way to reduce the stockpile of unused vacation days already amassed by thousands of state workers who will redeem them for substantial cash payments.
The governor issued an executive order that non-union employees under his control can accumulate no more than five unused vacation days. Any vacation time accrued beyond that will simply be lost. An estimated 3,000 employees are covered by the order.
"The message is simple: Vacation time is intended for vacations," Blagojevich said at a Statehouse news conference. "There will be no stockpiling of unused time."
He took the step because of large cash payouts made to hundreds of state workers who left their jobs last year. Blagojevich produced a list of 140 employees who collected checks of $50,000 or more for unused vacation and sick time, saying they had "gamed" the system.
"I am requesting a full investigation of all personnel who sought and received extraordinarily high payouts," he said. "We will explore what, if any, remedies are available on behalf of the taxpayers."
Blagojevich said that could range from repayment to unspecified disciplinary action. However, he acknowledged that the payments apparently did not violate state law.
"They may not have violated a specific statute, but there could be an intent and spirit that underlies the law," the governor said. "That may be our legal remedy."
Blagojevich also noted that some of the 140 employees on the list returned to government jobs. For example, Kevin Wright, formerly Gov. George Ryan's deputy chief of staff, quit one day, collected his unused sick and vacation money, and returned to work the next day as chairman of the Illinois Commerce Commission.
Of the 140 people on the list, Blagojevich said he knows of 14 who have returned to state jobs. An undetermined number are on 75-day contracts, which allows state agencies to retain key retirees for a short time to ease the transition to a new employee.
One of them is Dave Mizeur, deputy director of finance for the Lottery.
Mizeur retired Dec. 31 but is working at the Lottery until April, said spokeswoman Ann Plohr. Mizeur was the center of controversy in 1991 when he resigned from the Lottery and was rehired for the same job five days later. That enabled him to collect $20,000 in unused sick and vacation time.
A law was then passed that requires repayment of the benefit if a state worker returns to the full-time payroll within 30 days.
The governor's order does not apply to union workers under his control, but he said the state may bargain with them on that point.
The leader of the largest state employee union, Council 31 of the American Federation of State, County and Municipal Employees, said accumulating large amounts of vacation time isn't a problem facing union workers.
"The only problem I'm aware of is my members can't get (vacation time off) when they ask for it because the state operates so short-staffed," AFSCME executive director Henry Bayer said. "Our members want the time off. Never have I heard of our members lining their pockets like that."
State workers are paid for up to two years' worth of unused vacation time and for half the unused sick days earned between 1984 and 1998. They no longer accumulate unused sick days.
Blagojevich complained that some of the people on his list collected for more than two years' worth of vacation time - a practice allowed if a supervisor agrees to it.
Although employees under Blagojevich's control will not be able to amass large amounts of vacation time, those already sitting on substantial unused vacation days will be allowed to keep them.
"I don't know that we have any legal remedy in terms of going back to those who have already accrued their vacation time," Blagojevich said.
Below is a list from Gov. Rod Blagojevich of people who took retirement payouts of $50,000 or more from the state.

Anderson, Gary Board of Education $56,703
Darlington, Larry Board of Investments $90,421
Krehbiel, Dale Central Management Services $57,675
Schwarz, Robert Central Management Services $60,310
Weatherford, Glenn Central Management Services $53,069
Murphy, Michael Central Management Services $59,455
Seiple, Stephen Central Management Services $61,818
Carlson, Richard Comp Health Insurance $55,071
Anitow, Rodney Corrections $64,093
Barnett, Paul Corrections $52,829
Castro, John Corrections $60,655
Cooper, Keith Corrections $57,991
Dobucki, Kenneth Corrections $50,378
Finne, Bruce Corrections $54,280
Hartwig, Jack Corrections $56,833
Hopkins, Dennis Corrections $50,489
Jockisch, Diane Corrections $56,602
McVicar, Richard Corrections $61,189
Oleary, Michael Corrections $62,790
Page, James Corrections $61,879
Schnepel, David Corrections $50,767
Scillia, Anthony Corrections $51,254
Springborn, Jerome Corrections $56,734
Beaver, Frank DCCA $61,685
O'Brien, James DCCA $57,417
Pescitelli, Dennis DCCA $57,451
Rinehart, Eric DCCA $53,879
Smit, Bart DCCA $50,658
Buhrmann, Jeff DCFS $54,616
Conlee, G Virginia DCFS $52,125
Hayes, Douglas DCFS $88,330
Jacob, Norman DCFS $53,847
Bukowski, Judith Human Services $54,864
Choi, Sung Human Services $54,426
Christ, Thomas Human Services $52,224
Chun, Yang Human Services $65,898
Cohanim, Sirous Human Services $62,802
Cole, Ronald Human Services $59,288
Davidson, Doris Human Services $73,920
Deboice, Mary Human Services $50,498
Deeb, Carlos Human Services $76,480
Donkin, James Human Services $69,011
El-Daief, Felix Human Services$65,093
Eldaief, Fouzia Human Services $66,177
Gouttama, Raymond Human Services $50,507
Grzonka, Glenn Human Services $51,495
Jacobs, William Human Services $54,883
Kang, Eugene Human Services $65,827
Kotter, Kenneth Human Services $65,703
Kruckeberg, Karl Human Services $60,469
Langston, Mary Ann Human Services $87,407
Larson, Michael Human Services $52,077
Martin, Charles Human Services $64,832
Maxson, Joel Human Services $56,497
Maxson, Karan Human Services $55,226
Milone, Marjorie Human Services $66,485
Muniz, Kathleen Human Services $50,198
Nelson, James Human Services $66,858
Peterson, David Human Services $68,098
Steiner, Leigh Human Services $68,381
Sugay, Elena Human Services $50,260
Umbrait, D Scott Human Services $51,271
Valenti, Randale Human Services $63,693
Adorjan, Richard IDOT $71,285
Bartelsmeyer, Karl IDOT $61,714
Beard, Dohn IDOT $56,222
Campbell, David IDOT $52,806
Cooper, Stephen IDOT $52,278
Cunningham, Jerry IDOT $54,228
Englund, Dean IDOT $50,741
Gould, Gary IDOT $55,974
Harper, Glenn IDOT $51,869
Hodgson, Robert IDOT $50,508
Jereb, James IDOT $61,686
Kabbes, Ronald IDOT $50,073
McMillan, Kenneth IDOT $50,402
McMurray, Darrell IDOT $54,160
Rippel, Michael IDOT $52,173
Rocke, Roger IDOT $54,478
Rollings, Robert IDOT $50,002
Saranzelli, Ray IDOT $53,123
Schindel, Stephen IDOT $62,424
Shaffer, Thomas IDOT $51,368
Siekmann, Thomas IDOT $50,711
Sunley, William IDOT $54,671
Virtue, Jerry IDOT $54,338
Blaauw, Russell Employment Security $50,347
Dennis, Herbert Employment Security $57,918
Janssen, James EPA $51,984
Kanerva, Roger EPA $55,055
Lawler, Dennis EPA $54,790
Rogers, Kenneth EPA $51,618
Williams, Dan Fire Marshal $55,480
Ford, Diane Governor $70,462
Herndon, Thomas Governor $68,490
Wright, Kevin Governor $57,008
Demarco, Nancy Guard & Ad Commission $60,596
Farrell, David Illinois Commerce Commission $50,367
Myers, Thomas Illinois Commerce Commission $50,334
Rieman, Gary Illinois Student Asst. Commission $70,212
Becker, John Insurance $52,695
Dutcher, Arnold Insurance $71,170
Gorski, Anthony Insurance $64,756
Weistart, James Insurance $58,396
Mory, Michael Judges' Retirement System $68,381
Mizeur, David Lottery $56,802
Allison, Melvin Natural Resources $57,395
Clark, Bruce Natural Resources $50,390
Matsko, Louis Natural Resources $56,872
England, Stephen Nuclear Safety $57,907
Appl, Arthur Jr. Office of Banks & Real Estate $62,017
Barrett, Edward Office of Banks & Real Estate $52,875
Hasselbring, John Professional Regulation $50,877
Aslaksen, Theron Public Aid $57,033
Byrnes, Timothy Public Aid $55,374
Handy, Lynn Public Aid $53,989
Hill, Gordon Public Aid $59,775
Miller, Robert Jr. Public Aid $54,499
Oconnell, James Public Aid $53,463
Fish, Wayne Public Health $52,266
Mudgett, Clinton Public Health $68,394
Andrew, William Revenue $57,757
Conlon, James Revenue $51,801
Donnelly, Thomas Revenue $53,186
Hermsmeyer, David Revenue $53,734
Myers, Delbert Revenue $55,668
Scaduto, Michael Revenue $56,911
Schwab, Mark Revenue $50,378
Tapscott, Robert Revenue $63,720
Bencik, Robert State Police $50,710
Cook, Bobby State Police $50,368
Finley, James State Police $63,982
Frame, Charles State Police $61,418
King, JohnState Police $51,642
Kresl, EdwardState Police $61,694
Meduga, JohnState Police$58,931
Pruett, Gail State Police $59,517
Sandrin, Jack State Police $55,087
Sayset, Dale State Police $55,556
Scott, David State Police $50,752
Sievers, Diana State Police $56,926
Derobertis, Richard Toll Highway $58,475
Jannite, Nicholas Toll Highway $55,147
Stavola, Michael Toll Highway $58,549
Bullerman, Donald Veterans' Affairs $52,406

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

Lawmakers, Blagojevich clashing
Governor criticized for keeping mum
By Associated Press
News wire service
6 Mar 2003
SPRINGFIELD -- After proving his political skills by winning the state's highest office, Gov. Rod Blagojevich is learning the hard way that being chief executive is an entirely different challenge.
The state's budget deficit is larger than he expected. He has struggled to put together his team of advisers and state agency heads.
A key aide has quit, and scandal has engulfed his nominee to run the Corrections Department.
"I think that there is an understandable feeling that it's a ship adrift somewhat," said Rep. John Fritchey, D-Chicago, a Blagojevich supporter. "But I would rather be adrift than maintain a course that's going to land you on the rocks."
Some legislators, including Democrats who now run the Legislature, have also complained that Blagojevich is irritating them by keeping quiet about his plans on everything from appointments to the budget.
Lawmakers and political analysts say it's too early to grade Blagojevich's job performance.
"It's been a little rough, but I think it shouldn't be too much of a surprise because he's got absolutely no executive experience," said Chris Mooney, director of the Legislative Studies Center at the University of Illinois at Springfield. "He's coming in as a legislator and that's it."
The Chicago Democrat announced at his Jan. 13 inauguration that the state budget deficit was approaching $5 billion -- about twice what Blagojevich had expected.
Then he asked lawmakers for a two-month delay in his proposal for a new state budget, and they agreed.
Since then, lawmakers have complained Blagojevich -- himself a former state lawmaker and congressman -- has told them little about how he plans to address the deficit.
"I think that everyone's a little bit antsy because the budget address isn't coming until April 9th," said Sen. Denny Jacobs, D-East Moline.
And lawmakers are starting to get agitated about their lack of input on Blagojevich's decisions, Jacobs said.
"It's a matter of frustration," he said. "I understand where he's coming from and it's a little bit difficult, but yet at the same time we're looking to help him in any way we can and we stand ready to do that."
Republicans have offered him the authority to make large spending cuts in the current budget, but Blagojevich has stayed silent on their idea.
Blagojevich has also been forced to backtrack or clarify his positions on taxes, his plans for this year's deficit and more.
"This is not campaigning. This is not jogging. It's not talking about Elvis," said Sen. Peter Roskam, R-Wheaton. "It's about the governance of an enormous state operation."
Roskam said Republicans are ready to work with Blagojevich to solve the state's problems, but he needs to reach out to them.
"So far it's been government by press release, and now is the time to move beyond that," Roskam said.
Blagojevich has also been slow to appoint his Cabinet of state agency directors. Four months after winning the election, he has named only 15 of 26 positions.
Black Chicago Democrats blasted Blagojevich last month for not adequately considering their suggestions on personnel moves.
Downstate lawmakers complained privately that his appointees are almost entirely from the Chicago area.
Last week, the Senate postponed the approval of Jack Lavin as head of the state commerce agency, a response to Blagojevich freezing money for lawmakers' projects.
This week, a top aide, Deputy Governor Doug Scofield, decided to leave, saying he wants to spend more time with his family.
His replacement is a 29-year-old aide to New York City Mayor Michael Bloomberg, an appointment some legislators questioned.
"I think that somebody who is an outsider, somebody that's 29 years old is going to have hurdles that a person experienced with Illinois government wouldn't have," Fritchey said.
The new governor "needs to make sure that he does not alienate his own party in the Legislature to the extent that he's going to have difficulty getting things done," said Mike Lawrence, an aide to former Republican Gov. Jim Edgar. Lawrence now teaches at Southern Illinois University at Carbondale.
But the new governor said Wednesday he will not follow the lead of his predecessor, Republican George Ryan.
Blagojevich criticized Ryan for saying "Yes" to everything.
Blagojevich also said he will work with the Legislature but expects disagreements.
"If there wasn't struggle, I wouldn't be doing my job right now," he said.

House bill inspired by ICC/Zeller deal
Legislation would limit state leasing
By ADRIANA COLINDRES
of Copley News Service
March 6, 2003
SPRINGFIELD - A House committee on Wednesday advanced legislation that would make it more difficult for state government to enter into agreements such as the one allowing Illinois Central College to lease the former Zeller Mental Health Center property in Peoria.
House Bill 221, sponsored by Democratic Rep. Ricca Slone of Peoria Heights, cleared the House State Government Administration Committee on a 9-0 vote.
Zeller, 5407 N. University St. in Peoria, was a public psychiatric hospital until the state's budget problems led to its closure last September. The ICC board voted in November to lease the 63-acre Zeller property from the state for $1 a year. The agreement may last as long as 20 years.
Slone and some other Peoria-area lawmakers who want Zeller to reopen have criticized the state's lease arrangement with ICC as overly generous.
If her bill eventually becomes law, it would require an appraisal of property that has an annual fair market rental value of at least $10 per square foot.
It also would reduce the amount of discretion that the state's Central Management Services director has in making lease deals. CMS is the agency that manages state property.
Certain requirements would have to be met before CMS could lease any property for less than 60 percent of its fair market rental value.
In addition, the CMS director would have to explain in writing his or her reasons for leasing any property at a lower rate. Anyone who violates those conditions could be prosecuted for a misdemeanor.
State Rep. Mike Smith, a Canton Democrat who is a member of the House committee, referred to the ICC/Zeller lease as a "questionable agreement that was done at the 11th hour of the previous (Gov. George Ryan) administration." Slone's bill would provide needed safeguards, he said.
While the bill was inspired by the ICC/Zeller deal, it would not alter that agreement.
The proposal now goes to the House floor.
The House passed similar legislation earlier this year as the previous session of the General Assembly was drawing to a close. But that measure never came up in the Senate before the session ended.
To become law, HB221 would have to win approval in the House, Senate and from the governor

Governor pushes for minimum wage hike
By John Chase and Ray Long, Tribune staff reporters. Tribune staff reporter Christi Parsons contributed to this report
March 6, 2003
Moving forward on a long-held campaign pledge, Gov. Rod Blagojevich said Wednesday he supports boosting the minimum wage by $1.35 to $6.50 an hour, despite arguments it will force some businesses out of the state or discourage others from moving in.
Instead, the Democratic governor said he is backing legislation that is pending in Springfield because he thinks it will be good for the business community.
"It will help men and women who work hard, and help those businesses grow. If you've got a happy workforce, a workforce that feels like it's being treated fairly by business, big or small, they'll do better for you," the governor said during a stop in Springfield. "Treat your workers and your employees well, and you'll get more productivity."
But business leaders, many of whom were in Springfield Wednesday lobbying against a pair of bills increasing the minimum wage, said they remain opposed to the measures. They said they fear it will make Illinois less attractive to businesses and may encourage some to move elsewhere.
David Vite, president of the Illinois Retail Merchants Association, which split from the Republican Party last year when it endorsed Blagojevich for governor, said if Blagojevich wants to raise the minimum wage, he should lobby in Washington for a nationwide increase.
"We think it will cost jobs and hurt business at a time when businesses are losing money," Vite said. "This is a federal issue, not a state issue."
In backing a minimum wage increase, the governor said he supports giving restaurants, hotels and other businesses whose employees rely heavily on tips a 40 percent "tip credit" on the minimum wage so those businesses aren't hit too hard by the hike.
Currently, those businesses receive the credit on the $5.15 minimum wage, meaning they are only asked to pay waitresses and waiters $3.09 an hour, allowing the employees to augment their pay through tips. If the minimum wage were increased, restaurant wait and bus staff, hotel bellhops and the other "tipped employees" in Illinois would be eligible for $3.90 an hour, plus tips.
The tip credit has become an issue because a bill pending in the state Senate slashes the credit while increasing the minimum wage, a development that would cause restaurants to pay their wait staffs $6.50 an hour plus tips, more than double the current rate.
"I don't believe anyone in the business community ever believed that the government would require a 100 percent increase in the cost of labor for tipped employees," Vite said. "That will put many restaurants out of business and increase the costs of prepared food served in restaurants for every customer in the state of Illinois."
The governor's support for increasing the minimum wage for employees across Illinois came as he also tweaked the rules for state employees by signing an order limiting vacation pay for 3,000 non-union political appointees and vowed to consider similar changes for another 40,000 state union workers.
Political appointees can now carry over only five unused vacation days from one year to the next, instead of being allowed to carry more than two years' worth of vacation days. When employees quit or retire, they are paid for unused vacation.
The move comes after the governor said 140 state employees under former Gov. George Ryan recently left their jobs and received lump-sum payments between $50,000 and $90,000 in unused vacation pay. The governor said he is exploring ways to recoup those payments.
While his order only covers a fraction of state employees, Blagojevich said he may propose similar limits for all state employees, a move that would require renegotiating the collective bargaining agreement that regulates 40,000 members of the American Federation of State, County and Municipal Employees union, which supported Blagojevich's candidacy.
"Everything's on the table [except] cutting health care, education and public protection," the governor said.
But Henry Bayer, the union's executive director, said there is no evidence any union personnel have abused vacation pay.
"This is not an abuse by our workers," Bayer said.
 

Governor to probe stockpiling of vacation pay
BY SCOTT FORNEK AND TIM NOVAK POLITICAL REPORTERS 
 
March 5, 2003
 
 
 

In what his aides are calling "a clear break from the past," Gov. Blagojevich plans to launch an investigation today into top state bureaucrats who got "astronomical" cash payouts for stockpiled vacation time during the waning days of the Ryan administration.
The governor is also planning to issue a ban on the practice in his own administration, signing an order that would impose sharp limits on all of his estimated 500 political appointees. They will only be able to carry over five unused vacation days from one year to the next.
The change would parallel what many private sector businesses do and essentially end the longstanding practice of state bureaucrats turning huge amount of unused days into cash bonanzas at retirement time.
"Use it or lose it," said a senior administration official who requested anonymity.
The moves, which Blagojevich's aides dubbed a "new tough standard," come in response to a Chicago Sun-Times story on Sunday that revealed that nearly 13,000 state employees collected almost $145 million for their unused vacation and sick days when they quit between last August and January.
"The governor himself felt--I think, like any other reader-- greatly concerned by it and realized that it is further evidence of the kind of change that needs to be brought to state government," the official said. "The old ways of using the state government to one's own advantage, rather than to serve the public, have to come to an end."
It's not clear how much money the moves will save the state, which owes at least $380 million to more than 60,000 state workers for unused sick days amassed between 1984 and 1998 and any unused vacation days.
Each year state employees get 10 to 25 days of vacation, three personal days, a dozen paid holidays and 12 sick days.
Currently, the state allows all 60,000 employees to carry over two years' worth of vacation days, but they can build up more with the bosses' approval. When they quit, they are paid cash for any they did not use.
They used to receive cash for half of their unused sick days, but the state ultimately decided that was too costly. Now when they retire, state workers are paid for half of the sick days they did not use between 1984 and 1998--when the practice was stopped. Any unused sick days after that time are just added to the employee's length of service, boosting their pensions slightly.
Blagojevich's ban only applies to the non-union employees under his control. Any changes in the personnel code for the rest of the state workers would require a change in state law.
"And we might be looking at that,'' the official said.
The aide insisted forbidding the practice among political appointees is not just window dressing.
"It certainly goes beyond symbolism," the official said. "It is a clear break from the past. The lion's share of people who attempted to manipulate the system and exploit it to their advantage come from that class of people. ... The most glaring examples of people abusing the system really came from this pool under the Ryan administration."
Former Gov. George Ryan's deputy chief of staff, Kevin Wright, collected $57,008 last Aug. 31 when he quit the state payroll for a day to cash in 92 unused vacation days and 31 sick days that he accumulated over 22 years.
Wright returned to the state payroll the next day to serve as Ryan's chairman of the Illinois Commerce Commission, earning a salary of $117,136. When Blagojevich took over, he stripped Wright of the top spot on the commission, leaving him as a $99,414 member
Wright defends his action, arguing he was so busy he never was able to take the time off. He was among 153 state employees who each collected at least $50,000 for their unused vacation and sick days. There is no indication any of them broke any laws or violated any rules.
But Blagojevich today will order a probe of the "lion's share" of them.
"We'll ... take a look at who received what we consider extraordinary payouts and determine what types of steps led to these astronomical payouts and determine what recourse we have, perhaps in terms of disciplinary action," the official said. "We want to be able to follow up and check whether the conduct itself is actionable."
Blagojevich has had some trouble with state legislators who gripe he is leaving them out of the loop and taking too long to assemble a Cabinet. But the official argued that the latest measures show the governor is making good on his campaign pledge to clean up state government.
"This is a continuation of work that we have initiated since the opening hours of our administration," the official said.

Rod's rough ride
 
BY DAVE MCKINNEY AND SCOTT FORNEK POLITICAL REPORTERS 
 
 
March 4, 2003
 

One of Gov. Blagojevich's most trusted aides stunned the Illinois political world Monday by announcing he is quitting--a move that fueled concerns from fellow Democrats that the six-week-old administration is adrift.
Deputy Gov. Doug Scofield said he is leaving because the 80-hour weeks left him no time to see his wife and two young children, not because of any internal dissension in the governor's office.
"I'm not going quickly or immediately, but honestly there is nothing else to it than that," Scofield said.
But his departure comes amid criticism that the governor has neglected to reach out to legislators, ignored members of his own party, failed to provide lawmakers a budget blueprint and dragged his feet on assembling a cabinet.
"There are a lot of us wondering what the hell is going on," said one senior Democratic state senator. "What people will pick up from this is disorganization. That's not a good signal at this point."
Scofield, 37, has been with Blagojevich since the final days of last year's Democratic primary. During the campaign, he was communications director, talking to reporters and crafting Blagojevich's successful message. Since the inauguration, he has served as deputy governor, a $129,996-a-year job that focuses more on shaping policy. He was considered the equal of chief of staff Lon Monk.
Scofield said he and the governor had been discussing the move for weeks, but the sudden announcement left political insiders scratching their heads.
"You couldn't have told me anything that would surprise me more," said Matt Ryan, who managed rival gubernatorial nominee Paul Vallas' campaign. "I thought Doug was emerging as a real star."
Blagojevich has been under fire from Democrats for leaving them out since he took office in January. Last month, a group of West Side Democrats complained that not only did the governor fail to seek their input on people he was appointing, but his staff did not even return their telephone calls.
Last Wednesday, Blagojevich unveiled a complicated budget plan to borrow up to $10 billion--but he irked legislators from both parties by failing to answer their questions about it. Then two days later, Senate Democrats put the appointment of Blagojevich's commerce chief, Jack Lavin, on hold after delivering Lavin a tongue-lashing for Blagojevich's move to freeze hundreds of legislators' pet construction projects.
"They are not permitting us by these activities to work with them," said a senior Republican legislative staffer.
Scofield had a hand in a pair of embarrassments two weeks ago involving the governor's efforts to craft a state budget. Scofield said Blagojevich was optimistic the state could count on revenues from the stalled 10th casino license, contradicting what budget director John Filan told lawmakers in private meetings two days earlier.
Scofield also said Blagojevich intended to carry over a significant chunk of the state's $1.2 billion budget deficit this year into the next year's budget--an incorrect assertion that Blagojevich himself had to correct a day later.
Blagojevich and his supporters dismiss the criticisms as the gripes of politicians uncomfortable with the governor's efforts to change business as usual in Springfield. They argue that Scofield is just a man who wants to be with his kids, and they reject the notion the administration is in disarray.
"Oh come on," said Chris Kelly, who was Blagojevich's campaign finance chairman. "That's not the case at all. ... I'm not in the government. I don't work in government, but my take is very direct. I think Doug has a commitment to two young children, and he realized he couldn't do both."
Scofield is planning to build up a public relations firm, created in 1999, with his wife, Melanie. He and Blagojevich said Scofield will continue to serve as an adviser in the governor's "kitchen cabinet."
"It's hard to give up a position like this," Scofield said. "But again, I don't think I'm giving up the ear of the governor. I think I will still have it in a way in which I can still be constructive and hopefully a little more flexible."
Blagojevich said, "I am sorry to see him go, but I will continue to work very closely with him, and I respect his decision to put his family first."
Despite the secrecy surrounding Scofield's exit, Blagojevich has already lined up a replacement who will star t next Monday: a special assistant to New York Mayor Michael Bloomberg.
Bradley Tusk said he was approached about the job a couple of weeks ago by John Wyma, who was Blagojevich's campaign political director. Wyma was chief of staff to U.S. Sen. Charles Schumer (D-N.Y.), when Tusk was Schumer's communications director.
The senior Democratic state senator questioned bringing in a New Yorker to replace Scofield, who is from Downstate Freeport.
"To replace him with a guy from New York?" the senator said. "That's part of the story here, too. I don't understand that."
Tusk dismissed those concerns, saying he is "a fairly quick study" who offers "a new perspective."
A Brooklyn native, Tusk, 29, said his job with Bloomberg is similar to the one he will perform for Blagojevich: turning campaign promises into government policy and dealing with reporters. Tusk graduated from the University of Chicago Law School in 1999.

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Governor vows jail probe
Former director's promotion on hold
 
By Steve Mills and Ray Long, Tribune staff reporters. Tribune staff reporters Mickey Ciokajlo, Kate McCann and Christi Parsons contributed to this report
February 28, 2003
Gov. Rod Blagojevich put a hold Thursday on the appointment of Ernesto "Ernie" Velasco to head the state prison system, saying he was "very troubled" by allegations that guards terrorized scores of inmates at Cook County Jail in 1999 while Velasco was in charge.
"We're getting to the bottom of it," Blagojevich said at a news conference. "We're simply not going to proceed until we feel comfortable we have enough information to move forward or whatever the other alternative might be."
County Commissioners Mike Quigley and Peter Silvestri also took aim at Sheriff Michael Sheahan, calling for an outside monitor to investigate the office and for the sheriff to explain what happened that night at the jail.
Blagojevich said he summoned Velasco to a meeting with his staff Thursday morning after the Tribune reported allegations that the sheriff's elite Special Operations Response Team (SORT) beat inmates in February 1999 and falsified reports to cover up the incident.
Velasco's Friday confirmation hearing was delayed at least a week after the governor's office contacted Senate President Emil Jones (D-Chicago) and members of the Senate Executive Appointments Committee.
Velasco met with Blagojevich's chief of staff, Lon Monk, and Deputy Gov. Doug Scofield, who asked Velasco to "detail what he knew and how he handled the situation," said Tom Schafer, the governor's spokesman.
Schafer said the governor's office intended to do additional investigation of Velasco's role "to make sure we understand what happened."
"He's given his explanation of the circumstances, and now the governor's staff is going to be looking into the case, reviewing the lawsuit and other facts," he said. "The governor has directed his staff to look into the case as well as the facts surrounding the allegations."
Velasco started work Monday pending approval by the Senate. He declined to comment to reporters. He was questioned late Thursday by a House appropriations committee, where he had been scheduled to discuss the Department of Corrections budget.
He said he had been notified of the allegations and assigned investigators to look into them. But he said he never checked to determine the outcome of the investigation, even though the sheriff's Internal Affairs Division probe took more than three years to complete.
"When I have been made aware that those instances have taken place under my watch, I moved aggressively against them to the point that we have suspended them, we have terminated them and we have charged people criminally," Velasco said.
The internal affairs report, obtained by the Tribune, found that about 40 members of SORT invaded the maximum-security Division 9 of the jail for the sole purpose of beating and terrorizing inmates, particularly gang members.
"No report was given to me. I didn't question the fact that no report was given to me because I assumed the investigation was still ongoing," Velasco told the committee.
"I want to make one thing clear. The internal affairs unit did not report to me. My function was to notify them in writing of an allegation . . . on such and such date and we would request an investigation to be conducted on those allegations. . . . That unit reports to the inspector general's office from downtown."
Velasco's explanation brought a strong response.
"Something is wrong here," said Rep. Lovana Jones, (D-Chicago). "You were aware of what the allegations were, and you gave it to someone to investigate. But you never got the result of the investigation?
"I would think you would want to know or try to find out what was the result of it, so if there was some impropriety that you could move quickly to make sure it didn't happen again. . . . I have a big problem with that."
The internal affairs inquiry sustained findings of violations against two superintendents, a lieutenant, two sergeants and one officer for filing false reports, some to cover up the incident. Four canine officers were cited for bringing guard dogs without muzzles into the cells, a violation of jail procedures.
According to the internal affairs report, seven jail paramedics, including a supervisor, refused to give medical care to some inmates, failed to write reports about some inmates who were treated and "impeded" the investigation by refusing to be interviewed--another charge Blagojevich said left him troubled.
"Anytime there's allegations people have been denied medical help, no matter who they are, that's not right," he said.
A spokeswoman for Sheahan said all the officers have denied taking part in any brutality. The office's inspector general, which evaluated the internal affairs report, sustained findings of violations of operating procedures against five current officers and one former officer since the Tribune being making inquiries about the incident about two weeks ago. The inspector general found no evidence of brutality, the spokeswoman said. Jail medical authorities also denied wrongdoing.
Quigley, who has closely monitored the sheriff's office in his five years on the County Board, released a draft report Thursday on alleged misconduct by sheriff's personnel and called for an independent outside monitor to investigate the office.
"In the end, it is a continued practice reflecting a system that condones excessive force, in some cases recommends it, and has absolutely no checks and balances to correct mistakes or avoid them in the first place," he said. "Clearly, internal affairs is whatever the sheriff wants it to be, rather than a semi-independent body that investigates and has some teeth to it."
Sheriff's spokeswoman Sally Daly said oversight already was provided by the John Howard Association, a prison watchdog group that monitors jail conditions and complaints. Daly also said that the consulting firm KPMG completed a report about excessive force in the jail in July and, as a result, a new general order was implemented and new training procedures were put in place.
Silvestri, who chairs the county's litigation subcommittee, said Sheahan should make the 50-page report by the internal affairs division available to commissioners and explain what happened.
 
 
 
 
 

Former guards allege 2nd mass beating
Suit says 5 inmates were shackled first
 
By Maurice Possley and Steve Mills
Tribune staff reporters
 
February 28, 2003
Seventeen months after a team of 40 guards at Cook County Jail allegedly terrorized and beat inmates, another group of guards punched and kicked five other inmates while they were shackled, according to two former jail guards.
The two former guards allege they received death threats from other guards and were harassed into resigning this month after they refused to cover up the July 29, 2000, beatings.
Breaking what he said was a code of silence and testifying under oath as part of a lawsuit brought by the five inmates, former guard Roger Fairley, 37, said the shackled inmates were dragged and shoved into a windowless room where they were beaten after a disturbance in which several guards were injured.
"I saw them hitting them with elbows, stomping on their faces and heads, kicking them in the face," Fairley testified. "I yelled at them to stop because what I saw was too violent. But they didn't."
Jail officials say the disturbance in the special incarceration unit, where the most dangerous inmates are held, was triggered by one of the inmates, former El Rukn gang leader Nathson Fields, who sought to provoke a fight with guards in hope of filing a brutality lawsuit.
The inmates contend that during a shakedown for contraband and weapons, guards began tossing all of their belongings out of their cells, then forced them to run a gantlet of officers who punched them. That touched off a brawl that ended with the handcuffing and shackling of the five inmates and then the alleged beating.
The Cook County sheriff's Internal Affairs Division ruled that the claims of the inmates and the guards were "inconclusive," a middle finding between sustained and exonerated. Other guards who have been deposed so far have denied the beating.
On Thursday, the Tribune disclosed an internal sheriff's report on February 1999 allegations by 49 inmates who said that they were kicked, stomped and beaten and that jail officials sought to cover it up by filing false reports.
Ten jail officers, including a superintendent, a lieutenant and the head of the jail's elite Special Operations Response Team (SORT), violated jail rules, according to the report. Sheriff's officials said the office's inspector general examined the report and sustained violations against five officers and one former officer, but found no evidence of excessive force.
Both alleged beatings occurred when Ernesto Velasco was the jail director. On Thursday, Gov. Rod Blagojevich put on hold Velasco's appointment to head the state Department of Corrections.
Abuse illegal and costly
Charles Fasano, director of the Prisons and Jails Program for the John Howard Association, a prison watchdog group, said that besides being illegal and immoral, excessive force against inmates is "a very dangerous practice. It's bad management."
Fasano said brutality costs the county millions in legal settlements and raises the volatility level in the jail.
"There is a fine line that everybody has to walk," he said. "It doesn't mean you cater to the inmate. But you don't start abusing them.
"Even if the guy has struck an officer, it does not justify hitting him later. You can defend yourself, but once you have restrained him, then you cease using offensive moves against him. And they're trained how to do that.
"If a guy is handcuffed and shackled, staff ought to be able to restrain them. If he's writhing around and not hurting anyone, you get the necessary number of staff and you pin him down."
Fasano said determining the truth behind such allegations is difficult because "these things are very complicated. The inmates say one thing. The staff says another. And the truth might be somewhere in the middle."
The five inmates--Fields, Andre Crawford, Luis Sanchez, James Scott and Edward Mitchell--were all awaiting trial for murder. Prosecutors are seeking the death penalty against Crawford, who has been charged in a series of rapes and slayings in the Englewood neighborhood. Scott is accused of killing Chicago Police Officer John Knight in 1999.
When the disturbance erupted, Fairley said, he was summoned from another tier in the cellblock to help.
"I heard screaming. I heard people hitting each other, flesh upon flesh," he testified. "I saw blood splattered all over the doors, all over the walls, all over the piles of garbage and the floor of the corridor. A lot of blood."
When the fight ended, the five inmates were handcuffed and four were shackled at the ankles and put in an area known as the "pump room." Fairley said he went to the doorway. The four guards, he said, were "jumping in the air, coming down on their heads with their knees. I saw them kicking them in every part of their bodies with all their might."
Fairley testified in the deposition that one guard kicked Mitchell so hard that Mitchell's body "completely lifted off the floor and he flew into the wall." Mitchell was not shackled at the ankles because one leg was in a cast.
The beating was still going on when a nurse arrived, Fairley said.
"She put her hand over her mouth because she couldn't believe what she was seeing, so she starting yelling at the officers to stop . . . but they didn't," he said.
`They stomped us'
In a telephone interview, Fields said the beatings were sparked by a complaint he wrote to the Cook County state's attorney's office and the FBI about the alleged beating of another inmate.
Fields said that after he complained, two jail officers told him, "Anybody who don't like what happened, we'll send you to the hospital."
Fields said the guards "beat us like we were savage animals. They beat us down to the ground. They stomped us, kicked us in the face."
During the alleged beating in the pump room, Fairley recalled, a lieutenant arrived and said, "They want to hurt my officers? . . . They deserve to die."
Richard Gackowski, 37, another guard and a friend of Fairley's, testified in a separate deposition that the lieutenant later told him that before the inmates were cuffed, he had grabbed Mitchell, the inmate who had a cast on his leg.
"He stated to me that he grabbed inmate Mitchell's good leg and did everything he could--twisted it, jumped on it, hit it--did whatever he could to get that leg to snap," Gackowski said. "And it just wouldn't snap and he laughed about it. He thought it was funny."
Fairley said the beating stopped only when a guard in the hallway yelled that a ranking supervisor was en route to the scene. The inmates were then taken to hospitals for treatment and returned to the jail. Several guards also were treated for injuries, Fairley said.
One guard, Adrian Molina, who later was promoted to the SORT unit, testified in a deposition that Fields began fighting with him. "The first two punches I didn't strike him back," Molina testified, "but once he started to punch me, I started to defend myself, so I started swinging back at him."
Guards allegedly pressured
Fairley said that in the months after the beating, he was the target of harassment from co-workers because he had yelled for it to stop. Guards called him "social worker, inmate lover and [that] ever since I got married, I can't fight anymore," Fairley testified. "And [that] I wouldn't be there to watch anybody's back if something happened."
He said he considered reporting the beating but did not "because it's a complicated situation when you work in a jail. If you report other officers doing wrong, you can end up getting hurt by those officers."
Fairley testified that complaints about harassment to Internal Affairs were pointless because "the complaint will come right back to the department for an investigation and then everybody knows you made the complaint."
When guards assigned to the division began to get notices of deposition, Fairley said, other guards began pressuring him to cooperate in the cover-up.
Gackowski said he became the target of harassment because he is a friend of Fairley's. Guards made cooing noises over their hand-held radios "because he was a stool pigeon," Gackowski testified.
The final straw for both men occurred recently when a guard approached Gackowski and said Fairley was "a weak link in the chain" and weak links had to be "buried," Gackowski said.
On Feb. 3 both men requested transfers out of the jail facility to other work for the sheriff's office. When the requests were refused, they resigned the following day. Fairley had been a guard for eight years, Gackowski seven. Both said neither had been cited for any infraction more serious than being a few minutes late for work.
"I wouldn't be part of the boys' club, and neither would Roger," Gackowski said. "We wouldn't go along with the status quo--brutality."
 
 
 

Sheahan's cesspool
February 28, 2003
There's only one thing more outrageous than reports that a select squad of 40 Cook County Jail guards systematically beat, kicked, stomped and terrorized inmates with unmuzzled dogs one night in 1999.
It's that the allegations come as no surprise.
Cook County Sheriff Michael Sheahan's operation is out of control. His undisciplined sheriff's and correctional staff have been caught up in so many incidents of brutality, wrongdoing, falsification of reports and otherwise inappropriate behavior that the only way to count them is by the number of taxpayer dollars that are shelled out in their wake for legal settlements.
Sheahan refuses to learn from past mistakes. He refuses to fix serious, life-threatening problems that are stunningly obvious to everyone but him and his legion of lapdogs.
He has created a culture that places politics above integrity, that rewards animal behavior with ambivalence or, worse, promotion. He operates with virtually no oversight. And largely because he has focused so much attention on amassing a powerful political fiefdom, voters inexplicably tolerate him. It must stop now.
In Thursday's Tribune, reporters Steve Mills and Maurice Possley detailed not only the alleged Feb. 24, 1999, beatings of at least 49 inmates, but also the efforts by Sheahan's staff to delay a subsequent report by the sheriff's own Internal Affairs Division, falsify records and deny the incident ever occurred.
The Tribune article was based on documents from Internal Affairs, along with sheriff sources and prisoner interviews.
Sheahan's spokeswoman offered this response: "I can tell you that the inspector general has found that there is no evidence to sustain or corroborate allegations of excessive force."
The investigation of the officers isn't over, it goes now to the acting executive director of the jail. But all indications are that nothing will come of this but a few slaps on the wrist.
This process has dragged on for four years without resolution. A three-year statute of limitations on criminal charges has expired.
The Tribune reported last year that since 1998, lawyers representing Sheahan's office have been unusually busy. In that time, they recommended settling at least 35 lawsuits that accused deputies of brutality, figuring that based on the evidence it was unlikely the sheriff would win those cases in court.
The Cook County Board has had to shell out millions in civil settlements and attorneys' fees defending county correctional officers and sheriff's police for their on- and off-duty antics. One case: In 2001, the county paid $6.8 million to settle a class action lawsuit on behalf of 2,600 female inmates who were forced to undergo unauthorized and humiliating strip searches in jail.
"Less than half of all the incidents that occur ever have Internal Affairs reports done," said Cook County Board Commissioner Michael Quigley, a longtime critic of Sheahan. "And when they are done they're either delayed or never acted upon. And the people involved are never punished, but very often promoted."
Why? Because the sheriff's office knows it can get away with it. In the past, Cook County Board members have made it a shameful custom to pant approvingly whenever Sheahan appeared before them. Hopefully such repugnant obsequiousness will abate with the more reform-minded board members elected last year.
Sheahan can't fix his own shop. It's time to bring in a special prosecutor or the U.S. attorney to investigate, and time to create an independent commission to recommend reforms at the sheriff's office.
 

 


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State nomination halted due to reports of jail beatings
 
 
The Associated Press
February 27, 2003, 4:49 PM CST
 
Gov. Rod Blagojevich asked Senate President Emil Jones today to halt proceedings on the nomination of Ernesto Velasco to head the Illinois Department Corrections after allegations were reported of brutality by guards while Velasco was director of Cook County Jail.
"We are alarmed and troubled," Blagojevich said of the reports that appeared today in the Chicago Tribune. "Were simply not going to proceed until we feel we have enough information," he said at a press conference.
The governor added that his chief of staff, Lon Monk, met with Velasco today in Springfield to talk about the allegations. Blagojevich said he himself could not be present because he was traveling to Chicago at the time.
Blagojevich said that he did not yet know what was said at the meeting between Velasco and his chief of staff.

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Ryan locked Blagojevich out on 40 appointments
 
Administrators resigned, were rehired to start new four-year terms
 
By JOHN OCONNOR
THE ASSOCIATED PRESS
27 Feb 2003
With time running out on their jobs, 40 top-level state administrators got a gift last fall from their boss, retiring Gov. George Ryan - theyll keep their paychecks well into 2006.
A paperwork shuffle locked the highly paid employees into jobs through most of the new governors term, according to an Associated Press analysis of state records.
That leaves Democratic Gov. Rod Blagojevich with little control over jobs his aides say were limited to four-year terms specifically so a new governor could choose his own people.
Very cynically, these people were trying to protect each other, protect their own jobs, Blagojevich spokesman Billy Weinberg said.
The 40 Ryan employees were in jobs with four-year terms due to expire after the new governor took office in January - half of them within the first six months. Blagojevich could have replaced the employees when their terms expired.
But late last summer, the employees tendered their resignations, although they never actually stopped working. Then Ryan appointed them to brand-new terms - in most cases within five days, according to records compiled by Blagojevich's office.
The average salary of those who restarted the clock on their terms is $80,500, according to state comptroller records. More than half are in the departments of Natural Resources and Agriculture. The rest are from nine other agencies. Twenty-five of the 40 have contributed a total of nearly $40,000 to Republican political campaigns, including $23,300 to Ryan.
Each new term carried a four-month probationary period during which the employees could be fired for any reason. But the new terms all started by Sept. 13 - exactly four months before Blagojevich was sworn in.
Ryan also used other maneuvers to help friends and loyal workers before leaving office. He appointed dozens of staff members and defeated politicians to positions in state agencies or on commissions. He got rules and job descriptions changed to immunize many more employees from Blagojevich pink slips.
Among his first acts as governor, Blagojevich fired more than 60 people he said Ryan had appointed illegally.
But his staff does not know whether Blagojevich can do anything to reverse the 40 term adjustments. Mary Lee Leahy, the Springfield lawyer Blagojevich hired last month to review state jobs for their necessity, is studying the matter.
Leahy said she thought rules had prohibited changing terms before they expire, contrary to what happened with the 40 Ryan staffers.
Most of the employees contacted did not return telephone messages or refused to speak to The Associated Press.
However, Richard Robinson, an $87,500 administrator for the Department of Human Services, said he and others at the agency needed to stay to help with the transition to a new governor and fill a void left by 3,000 DHS employees who took early retirement.
Robinson's transition assistance will be lengthy. His readjusted term runs through Aug. 31, 2006.
Human Services spokesman Tom Green gave a different answer when asked why the adjustment was made. "The answer is, to obtain a new four-year term," Green said.
Agency spokesmen said the orders for the adjusted terms came from the top.
"The governor's office, at the time, instructed us to do this," Department of Corrections spokesman Sergio Molina said.
Diane Hurrelbrink, a $102,700-a-year Corrections Department administrator, said she thought her extension was because of agency reorganization, but added "I wasn't allowed to ask questions." Molina said reorganization didn't play a role.
Agriculture Department spokesman John Herath, who is paid $52,300, said he learned about his new term only after it had been arranged.
"I'm here to do the job, day-in, day-out," Herath said. "If somebody doesn't think I'm doing the job, they can challenge that and show me the door."

 

Man First to Death Row Since Clemency
Thursday, 27-Feb-2003     
Story from JIM PAUL, Associated Press Writer
CHARLESTON, Ill. (AP) -- A man sentenced to death for killing a college student became the first inmate on the state's death row since former Gov. George Ryan emptied it last month by granting clemency to all 167 condemned inmates.
The conviction against Anthony B. Mertz was automatically appealed after he was sentenced Wednesday. Judge Dale A. Cini formally pronounced the sentence Thursday and set an execution date of May 5.
The execution will be delayed, though, because of the appeal and because a moratorium Ryan imposed has not been lifted by Gov. Rod Blagojevich. The governor wants make sure the system is reformed before executions resume, spokesman Tom Schafer said.
Mertz, 26, was convicted for the June 2001 rape and murder of Shannon McNamara, 21, a student at Eastern Illinois University who lived in an off-campus apartment across the street from Mertz.
Mertz's trial began days after Ryan commuted all of Illinois' death sentences to life in prison. Ryan cited problems with how death sentences are carried out in a state where 17 condemned inmates in recent years had been cleared.
Mertz's attorneys said they thought the jury's decision signaled a backlash against Ryan's decision.
"It's like 'We're going to show Gov. Ryan. We're going to fill up that death row again,'" said attorney Paula Phillips.
His attorneys asked jurors to spare Mertz's life because of his bad childhood and an adult life of alcohol and drug abuse that led to his criminal acts.
During the penalty hearing, prosecution witnesses testified Mertz had said he also killed another woman in Charleston in 1999.
Prosecutor Steve Ferguson said he wasn't celebrating the death sentence but felt it was the right decision.
"I feel the system triumphed," he said. "We felt this was a case that was appropriate for the death penalty."
 

Union membership drops to new low
 
February 26, 2003
BY LEIGH STROPE 
 
 
 
 

HOLLYWOOD, Fla.--Union membership dropped last year to the lowest level in almost two decades as manufacturing companies hemorrhaged traditional union jobs faster than organizers could build new membership in other areas.
Some 13.2 percent of America's work force belonged to unions in 2002, down from 13.4 percent in 2001, the Labor Department reported Tuesday.
''Weaker union membership numbers are grim news for the entire nation,'' said AFL-CIO President John Sweeney. He said unions increase productivity, economic stability and workers' economic status.
The rate of union membership has dropped steadily since the data first was recorded in 1983, when 20.1 percent of the work force belonged to a union. In fact, the annual rate has never increased in the 19 years since.
Labor Department economists used new methods in compiling this year's data, and adjusted the 2001 statistics according to the revised system to show the real 0.2 percent drop. Previous years were not reassessed.
Union leaders in Florida this week for the AFL-CIO's winter executive council meeting countered with a new labor-financed poll that found half of respondents saying they would join a union if given the chance.
Andy Stern, president of the Service Employees International Union, the largest AFL-CIO affiliate with 1.5 million workers, suggested that in an era of corporate scandals workers ''see unions as a positive voice against corporate greed.''
Transportation had the highest rate of unionized workers in the private sector, at almost 24 percent. But that industry along with hotels and tourism has been heavily battered since the 2001 terrorist attacks, accounting for some of the union decline, Sweeney said.
The nation's factories have lost 1.9 million jobs in the last two years. The AFL-CIO's industrial unions say the job losses are reaching crisis levels, and have joined forces to increase their political and lobbying power.
The labor movement sees potential for growth in some of the AFL-CIO's largest affiliate unions--SEIU, the American Federation of State, County and Municipal Employees and the Hotel Employees and Restaurant Employees.
SEIU is having success in California by organizing home health care workers, and janitors across the country. AFSCME is organizing government workers at all levels across the country, including Los Angeles County psychiatric social workers. HERE is focusing on immigrant workers.
''The big challenge is whether these labor leaders can think outside the box to figure out a way to pull in people,'' said Thomas Geoghegan, a labor lawyer and author of the book, Which Side are You On? Trying to be for Labor When it's Flat on its Back

Blagojevich directs agencies to cut budgets
 
February 24, 2003
BY MAURA KELLY ASSOCIATED PRESS 
 

Gov. Rod Blagojevich on Monday directed state agencies and departments to cut administrative costs by an average of 10 percent to help control a nearly $5 billion budget deficit.
The governor also wants to review up to $1.7 billion in spending for those agencies and departments. The money would be placed in reserve until the state's Bureau of Budget can look over the expenditures to decide if they are necessary.
"We will determine which services, programs and personnel are essential to serve the needs of the people or are the result of spending that has gone unchecked, unjustified or unquestioned for too long," Blagojevich said during a news conference at the James R. Thompson Center.
Also, Blagojevich said he will cut his own administrative budget by 15 percent, as will Lt. Gov. Pat Quinn and the Bureau of the Budget.
"Addressing this $5 billion budget deficit requires shared sacrifice. No one should be immune," the governor said.
Blagojevich said cutting 10 percent from about 30 agencies under his control could save up to $31 million from the current fiscal year budget. The cuts also could save $125 million in the budget for the next fiscal year.
The governor directed agencies and departments to reserve for review about 8 percent of their operations budget for this fiscal year; 5 percent of the state grants they administer; and 10 percent of capital improvement funds.
Grants that cover education for kindergarten through grade 12, health care and public safety will be exempt from the reserve, Blagojevich said.
 
 
 
 
 

Blagojevich fires prisons official
Furor over aide's parole testimony for mob hit man
 
By Christi Parsons
Tribune staff reporter
Published February 11, 2003
SPRINGFIELD -- The second-ranking official at the
Department of Corrections was dismissed Monday, two
months after he was accused of giving his implicit
approval to a request from an underling to testify at
the parole hearing of a mob hit man.
George DeTella, the department's associate director,
was dismissed after aides to Gov. Rod Blagojevich
determined he "did not have a role to play in this
administration."
"The position is intended to be occupied by someone
who serves at the pleasure and with the confidence of
the governor," Blagojevich spokesman Billy Weinberg
said. "George DeTella did not meet the standard."
The dismissal comes two months after a controversy
erupted over the decision by an agency official to
testify in support of the parole request of a Chicago
mob figure.
Ron Matrisciano, an assistant deputy director of the
department, testified in support of the parole request
of Harry Aleman, who is serving 100 to 300 years for
the 1972 murder of a Teamsters official.
According to department officials, Matrisciano claimed
DeTella had OKd his approval to his decision to appear
before the Prisoner Review Board, which has since
denied Aleman's release.
According to an agency spokesman, Matrisciano asked or
told DeTella he wanted to testify on behalf of Aleman
and DeTella told him he would have to do that on
personal time.
DeTella said Monday that Matrisciano had mentioned the
idea in passing and that he had not stood in the way
because he didn't believe it was his right or duty to
do so.
"I didn't give him permission," DeTella said. "Ron had
told me, and he told several other people, he was
going to speak on behalf of an inmate. I told him I
didn't think it was a good idea--not for this inmate,
but for any inmate."
But DeTella said he didn't know of any department
policy that would preclude such testimony, as long as
Matrisciano didn't do it on state time and made it
clear he was not appearing as a department
representative.
Weinberg acknowledged the governor's office was aware
of the Matrisciano incident but declined to say
whether it had anything to do with the decision to
dismiss DeTella.
DeTella said he was informed that his "services
weren't needed anymore."
DeTella has served as a warden and as an assistant
director during a lengthy career at the agency.

Blagojevich names director of Department of Corrections
 Velasco is first Latino ever selected for the position
Feb 4, 2003
CHICAGOGov. Rod R. Blagojevich announced on Tuesday his selection of the individual who will lead the states Department of Corrections.
Ernesto Velasco, who served as director of the Cook County jail system, was chosen by the governor today to serve as director of the department which has the second-most employees in state government.
Velasco represents the first member of the Latino community ever appointed to the position.
I am proud to have selected for this position someone who will serve as an inspirational leader to all of those employeesand to people across the state, Blagojevich said.
The governor cited Velascos impressive life-story, which he said should serve as an inspiration to people across Illinois. He pointed out that Velasco came to Chicago as a 13 year-old immigrant from Mexico, with his mother and sister.
His is an immigrants story, Blagojevich said.
The governor added that Velascos story reminded him of his fathers own experience coming to the United States.
It is marked by the realization that hard work and dedication are the keys to success, he said.
Velsaco attended St. Romans grammar school and graduated from Harrison High School on Chicagos near southwest side.
Velasco began his career with the Cook County Sheriffs office in 1972 and worked his way up through the ranks.
He began as a correctional officer, and thenthrough hard-work and skill-- rose through the ranks to become a correctional sergeant in1978 and earn higher promotions: a lieutenant in 1980, captain in 1984, chief in 1985 and then superintendent in 1989.
In 1994, he was named assistant executive director for programs and special units.
Finally, in 1996, Velasco was named director of the Cook County Jail. There, he oversaw a staff of 3,000 and an inmate population of more than 11,000.
Velasco was the first Latino to be appointed to that position, and the first-ever employee of the county department of corrections to rise through the ranks to the position of director.
During his tenure at the jail, the facility received exemplary ratings. The American Correctional Association gave the jail a 98 percent score on non-mandatory standardsand perfect 100 percent on mandatory ratings. It is one of the largest county facilities in the country to receive such accreditation.
There, he supported the county jails Life Learning programan innovative approach that offered job-skills, assistance with emotional and personal problems, reading and writing skills to detainees.
While working for the county, Velasco continued to take several courses to enhance his management skills. He attended classes at Northwesterns Kellogg School of Management; through the U.S. Dept. of Justice; and John Marshall Law School.
He and his wife Sandra are the proud parents of two grown daughters.
Sandra and Velascos mother, Maria Elena, were scheduled to join him at the press conference this morning.

 

 
 

Ryan pardons don't stop at Death Row
150 got clemency for other offenses
By Christi Parsons and Steve Mills
Tribune staff reporters
January 26, 2003
SPRINGFIELD -- For 50 years, Rev. Oscar Walden has been trying to convince people that he is innocent of raping a woman in a vacant lot near Altgeld Gardens in 1952.
On Friday, state officials officially notified him that former Gov. George Ryan believed him and, in his final days in office, granted the 71-year-old minister a pardon based on innocence of the crime.
"It's the news I've been waiting for 50 years," Walden said Friday. "I've been waiting for my prayers to be answered, believing all the time that it was going to happen."
The pardon came in a batch of more than 150 grants of clemency for non-capital offenses filed by Ryan in the final two months of his term. They were overshadowed by his decision in his final days in office to empty Death Row by commuting death sentences for 167 inmates because he believed they had been convicted by a flawed capital justice system.
In contrast, Ryan's predecessor, Jim Edgar, issued 19 pardons during his last year in office and commuted the sentence of another convict. Edgar denied another 159 clemency petitions.
Ryan's reasons for granting clemency to people convicted of lesser crimes are less clear. He provided no detailed explanations in papers filed with the state's Prisoner Review Board, the agency that oversees pardon applications. In fact, Ryan filed so many clemencies on his way out the door that the board is only now sorting through the last of the paperwork and notifying some of the recipients.
On the final list are the names of several non-Death Row inmates serving time for murder, for whom Ryan issued either full pardons or reduced sentences. He also pardoned dozens of people convicted of sex offenses, assault and battery, and smaller crimes ranging from drug possession to shoplifting.
As with all of the clemencies, the decision-making process is enigmatic. The state constitution grants the governor sweeping power to grant pardons, doesn't require him to hew to any particular standard, explain decisions or even follow the recommendations of the board. Efforts to reach Ryan and his aides to shed light were unsuccessful.
But board officials assume that in many cases Ryan simply rubber-stamped their recommendations because of the volume of the workload.
"The board looks at the severity of the crime, the criminal history, what they've done with their lives since and the reason they want the pardon," said Ken Tupy, the board's legal counsel. "It's pretty clear that the board and the governor believe a pardon is warranted if the person committed an offense 20 years ago, had a law-abiding life after that and needed a pardon to get a job."
`Act of forgiveness'
A pardon not expressly based on innocence doesn't clear a person's record, but as an "official act of forgiveness" it does make some employers feel better about hiring someone, Tupy said. In one such case, Ryan pardoned Robert Martinez of Chicago who was about to lose his position in the Illinois National Guard because superiors found out he was convicted of burglary in the 1980s.
"He was young and made some bad decisions," Tupy said. "Now he just wants to continue to serve his community."
Karen Flock, 42, sought to erase two old convictions that had hampered her ability to get a job and provide for her three children. The first conviction was about 20 years old and occurred after she bought beer for an underaged friend.
The second conviction stemmed from a burglary about a decade later. Some friends committed a burglary; Flock said she was in a car outside and had no idea what they were doing.
She said she had lost jobs after background checks were done.
"My children need stability, and I needed to better myself," said Flock, who has been working as a school lunchroom attendant. "This was the only way."
Board members say recommendations from potential employers and character witnesses are helpful to a petitioner, but they deny that it makes any difference if a request comes from someone who is politically connected.
Chris Pucinski, who lives in the Edgebrook neighborhood, said he's not aware of anyone making calls on his behalf and was surprised to learn of the grant from a reporter on Friday.
"Far out," said Pucinski, the brother of former Republican Cook County Clerk Aurelia Pucinski, whom Ryan installed in his Cabinet in the waning months of his administration.
Chris Pucinski, 45, was arrested in 1976 after he sold a packet of cocaine to an undercover police officer. He was arrested again in 1988 on a cocaine charge. The pardon applies to both cases.
Pucinski said he applied for the pardon himself after researching the issue on the Internet and telephoning the Prisoner Review Board. He said that as far as he knew he did not receive assistance from relatives, though his last name is well known in political circles.
"If she helped me," he said of his sister, "I don't know about it. But I'm pretty sure this was all me."
Another pardon was granted to Darryl Robinson of Chicago Heights, who was convicted of shooting his mother's abusive husband in 1976 and got 3 years' probation. Robinson, who was 25 at the time, said he shot Walter Mosby after the man beat Robinson's mother to a bloody pulp with a basketball trophy.
Robinson's defense attorney argued that he had acted in self-defense, but the trial court judge ruled the jury couldn't hear evidence of years of violence that family members say Mosby wreaked upon the Robinson children.
Not actual killer
Also notified of his pardon last week was Daniel O'Reilly, convicted in 1991 for his part in a shooting death during a drug dispute. Attorneys argued that O'Reilly got a higher-than-average sentence for someone who was not the actual killer.
Ryan reduced O'Reilly's sentence from 38 years in prison to 24. He is serving his term at the Dixon Correctional Center.
But in the 50-year-old case of Walden, the petitioner has been straight for years. He has been asking for a pardon based on innocence for a decade and isn't sure why it came through now.
As in the other cases, Ryan did not say why he was pardoning Walden, a black man accused of raping a white woman in pre-civil rights era Chicago. He merely filed a memo granting clemency and ordering the cleansing of Walden's criminal record.
Walden confessed to the crime but maintained the confession had been beaten and tortured out of him by police. He also said police forced him to apologize to the victim before he was charged, and she immediately after identified him as the perpetrator. He was paroled in 1965.
This was actually the second pardon received for the same conviction by Walden. The first was granted in 1978 by then-Gov. James Thompson, though it technically did not declare Walden innocent or expunge the conviction from his records.
In the meantime Walden, who went on to work as an AME minister and to teach criminal justice at Chicago State University, has continued to try to clear his name, something that Ryan's pardon formally does.
"When I was doing those 14 years in prison, every time the phone would ring I thought it was somebody saying, `Oscar, get ready to go home,'" he said. "Now that it has happened, it's almost unbelievable."
But some other attorneys who represent newly pardoned clients think they know exactly why their clients were successful. Downstate resident Joy Brown's sentence was reduced from 6 years in prison to 3, and she is now expected to get out of prison in January of next year. Brown had been convicted of throwing hot grease on her ex-husband, something she says she did after he attacked her in her house.
"She thanks Gov. Ryan and the Lord," said Brown's attorney Margaret Byrne, "though not necessarily in that order."
 

Will County Jail hires new warden
Ex-state prisons official gets post
By Karen Mellen
Tribune staff reporter
January 25, 2003
A retired top-ranking official with the Illinois Department of Corrections on Friday was named warden of Will County Jail in Joliet, taking over a facility beset by overcrowding and administrative problems.
Michael O'Leary, 53, will start his job Monday. He will be paid $91,500 a year. In December, he retired from a 29-year career with the Corrections Department, where his last position was deputy bureau chief of field operations.
O'Leary also has served as warden of Stateville Correctional Center, adult division assistant director and acting deputy director responsible for overseeing the administration of 27 adult facilities.
Will County Sheriff Paul Kaupas, who wooed O'Leary out of retirement, acknowledged Friday that he reneged on a campaign promise to promote from within the Sheriff's Office.
"I see this as an opportunity for the sheriff's department and the county, and to save the taxpayers money," Kaupas said.
O'Leary's experience in working on prison expansions will help officials with a proposal to add to the jail in Joliet, Kaupas said.
Will County officials are trying to find money for a jail expansion.
The average daily inmate population at the jail is 445, but the maximum capacity is 332.
O'Leary said he is looking forward to the challenge of learning about county jails.
"The heart of it is safety and security," he said.
Kaupas said many administrative problems at the jail have been corrected, such as an instance in which an inmate was not released on time. But he emphasized that overcrowding is a great concern, and he looks to O'Leary to help with that.
"He's light years ahead of us," Kaupas said.
 

Statehouse INSIDER
 
BY DOUG FINKE
19 Jan 2003
 
Gov. ROD BLAGOJEVICH has been in office for a whole week now, and he's beginning to get a taste what life is like in the capital city. Like how it takes next to nothing for a rumor to get started among state employees and how, once started, virtually nothing will stop it.
The hot one last week was that either 150 or 300 people would be fired on Friday. Blagojevich's people denied it, but a measly denial from the people at the top isn't enough to stop the mighty state-worker rumor mill. That fact seemed to surprise some of the Blagojevich people. Hah, they haven't seen anything yet. The rumor mill is going to get worse before it gets better, what with all of the budget cuts in the offing.
Still, there is a grain of truth to the rumors about people being fired. Blagojevich himself said more people were going to go, people that the new administration would describe as cronies of former Gov. GEORGE RYAN. In addition, agency directors from the Ryan years and their top aides obviously will be losing their jobs.
So at some point the rumor that more workers are losing their jobs will come true - just like the rumor about early retirement came true last spring after four years in the mill.

Here's how crazy the rumor situation around state government has gotten.
Last week, an employee at a state agency was spotted leaving work carrying a couple of cardboard boxes. Within minutes, the rumor was all over the agency that the employee had been fired as part of the Democrats' big purge.
In fact, the employee had permission to take the empty boxes for use at home.

Here's another one, folks. The deadline for early retirement has not been secretly extended until the end of June. The deadline was December. It was set in law and would require an act of the General Assembly to change. The General Assembly hasn't been in town, ergo the deadline hasn't changed.
Geez, we thought all those early retirements were slashing the work force so much that state workers wouldn't have time to gossip. Guess we were wrong.

Blagojevich could help limit those rumors and the apparently rampant paranoia if he is so inclined. He could try being a little more specific about what he has in mind for the budget and state workers. So far, though, we have his budget director, JOHN FILAN, saying everything is being considered for cuts except education, public safety and health care. That leaves room to scare the daylights out of a lot of people.
Ryan, the former governor, commuted the sentences of all death row inmates last week. He wants people to believe he did it as a matter of principle. Wouldn't it be easier for people (especially the victims' families) to believe that if Ryan had shown similar principle in other parts of his public life?
By the way, Ryan was given credit for showing up at Monday's inauguration and for even applauding during portions of Blagojevich's speech. Allow us to set the record straight here. Yes, Ryan did applaud a couple of times. But that was at near the beginning of the speech. As Blagojevich continued and started railing about a "system of corruption," the clapping pretty much ended.

 

p01162003011603toon.jpg

How fast will death row fill again?
May not take long to put at least one inmate in
 
By CHRIS DETTRO
STAFF WRITER
16 Jan 2003
For Christopher Parker of Chicago and William Buck of Rockford, the timing could have been better.
Parker, 29, is scheduled to be sentenced Feb. 4 after being convicted last summer of the murder on Dec. 31, 1997, of his girlfriend's 2-year-old son from a previous relationship. Cook County prosecutors are seeking the death penalty.
Buck, 20, is watching as a jury is selected in Lake County for his trial for first-degree murder in the August 2001 shooting death of Kevin Rice, a Rockford police detective and investigator with the city's gang unit. Winnebago County prosecutors also are seeking death for Buck.
If either or both receives the death penalty, one will have the dubious distinction of being the first person sentenced to death in Illinois since George Ryan's commutation of the sentences of all 167 pprisoners then on death row.
Parker and Buck could have the new death row all to themselves, although probably not for long.
"Death row is emptying out this week, but it will probably fill up again," Illinois Prisoner Review Board chairman Craig Findley of Jacksonville said after Ryan's announcement Saturday.
But at what pace?
Cook County has 50 capital cases "in the pipeline" at some stage, and another 10 to 15 cases are believed to be pending in the remainder of the state's 102 counties.
Four men were sentenced to death in Illinois in 2002 - two in Cook County and two downstate - according to the state appellate defender's office. Among them were Dale Lash, 40, who was sentenced Nov. 13 to die for the 1999 murder of Lori Hayes, 25, of Auburn; and Daniel Raines, 31, of Carlinville, who was sentenced to die by a Macon County jury Nov. 14 after being convicted of killing Vermilion County deputy sheriff Sgt. Myron Deckard in 2001.
Raines and Lash were the final two defendants added to death row before Ryan's commutation.
According to statistics from the U.S. Bureau of Justice Statistics, only one person was sentenced to death in Illinois in 2001.
In the years prior to 2001, however, the number of death sentences ranged from nine in 1981-82 to 20 in 1995-96.
Illinois has sentenced 289 people to die since the death penalty was reinstated in the state in 1977. Of those, however, only 12 were executed.
Ryan imposed a moratorium on executions in early 2000 while appointing a special commission to recommend reforms in the state's capital punishment system. The panel came up with 85 recommendations, some of which have been included in new Supreme Court rules governing capital cases.
The next death penalty case to be heard in Sangamon County likely will be a change-of-venue case from Peoria County. Jarvis Neely, 19, is accused of shooting Peoria police officer Donan "Jim" Faulkner in September 2001. Neely's trial is scheduled for June 30.
The next Sangamon County capital case won't be tried until late this year, at the earliest.
In that case, authorities are seeking death for Dennis "DJ" Scott, 20, of the 300 block of South Walnut Street, who is charged with killing three people and wounding a fourth in anger over a DVD player he believed had been stolen from him.
Authorities say Scott and another man forced their way into an upstairs apartment at 5241/2 S. State St. on Oct. 21, 2001, and shot Margaret "Sue" Maledy, 43; Sabrina Cole, 22; and Maledy's sons, Eric Widner, 22, and Adam Widner, 20. Eric Widner, who was shot in the face, survived and was able to drive to a nearby convenience store to seek help.
Ollie V. Davis, 19, of White City Boulevard also is charged with first-degree murder in the case, but prosecutors are seeking the death penalty only against Scott.
Chris Dettro can be reached at 788-1510 or chris.dettro@sj-r.com.
 

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Inmate's time off Death Row may be short
60 capital cases still in pipeline
 
 
By Jeff Coen, Tribune staff reporter. Tribune staff reporter John Keilman contributed to this report
January 14, 2003
Serial-killing suspect Andrew Urdiales was one of the condemned prisoners spared by last weekend's mass commutation of death sentences, but a Downstate prosecutor said Monday he is committed to putting him back on Death Row.
Police and prosecutors in two states have accused Urdiales of killing eight women and dumping their bodies in lakes, rivers or California deserts. Urdiales, 37, was convicted last year in Cook County of killing two women whose bodies were found in Wolf Lake and was sentenced to die in September.
In April, Urdiales is scheduled to stand trial in Pontiac, Ill., in the slaying of Cassandra Corum, 21, of Hammond, whose body was found in the Vermilion River more than six years ago. Livingston County State's Atty. Thomas Brown said he will seek the death penalty.
"It was not a hard decision," Brown said Monday. "This man is a serial killer."
Cook County prosecutors who tried Urdiales for the 1996 stabbing and shooting deaths of Lynn Huber, 22, of Chicago and Lori Uylaki, 25, of Hammond routinely used the case during last fall's clemency hearings as a prime example of why capital punishment is needed in Illinois.
They even brought a former juror to his hearing to express the horror she felt at hearing the details of how Urdiales picked up his victims and drove them to secluded areas to rape and kill them. The jury also heard testimony on how Urdiales mocked one of the women, saying her cries for mercy were straight out of a slasher movie.
"Andrew Urdiales isn't out of the woods yet," said Cook County Assistant State's Atty. Michael Hood.
Two Cook County cases may provide the first new Death Row inmate.
Christopher Parker, 29, was convicted in July of the 1998 fatal beating of his 2-year-old son, Joshua Sandifer. Parker, of Chicago, could be sentenced Feb. 4.
Michael Key, 24, was convicted of the 1999 murder of a transgendered female named Beretta Williams, prosecutors said. Key was found eligible for death by a judge last week and could be sentenced as soon as Feb. 28.
Meanwhile, state prison officials said Monday no Death Row prisoners have been moved to new cells. Department of Corrections spokesman Sergio Molina said plans are being finalized to move inmates in the Pontiac and Menard prisons to maximum-security areas at Menard and Stateville Correctional Center, but it could be a week before that begins.
The four women on Death Row at Dwight Correctional Center may not change cells at all, officials said.
Statewide, there are more than 60 capital cases in the pipeline for which prosecutors have declared their intention to seek the death penalty. About 50 of the cases are in Cook County.
In Will County, prosecutors are seeking death for Brian Nelson, who is accused of killing his former girlfriend and three other people in Custer Park last year. State's Atty. Jeff Tomczak said Nelson's trial probably will start in the fall.
In Kane County, there are three pending capital cases.
Avery Binion and Willie Buckhana have been convicted but not sentenced for their roles in a 1999 triple homicide in Elgin. State's Atty. Meg Gorecki also is seeking death for Cayce Williams of Elgin, who is accused of killing his girlfriend's 20-month-old daughter in 1997. He has yet to be tried.
Van Richards, an Elgin lawyer representing Binion, said his client is scheduled to be sentenced April 1. Richards said last week he hadn't thought out a legal strategy to pursue in the case of a blanket commutation, but said he believed it would be unfair for Binion to receive the death penalty after a mass clemency had been granted.
"Obviously, the law would be treating very differently people convicted after the commutation," he said.
Challenges to commutation
There could be some legal wrangling left on a handful of the 164 death sentences commuted by former Gov. George Ryan. After the announcement Saturday, Cook County State's Atty. Richard Devine promised to pursue any legal avenue to challenge the commutation of the death sentences to life in prison without parole.
Public defenders said they expect challenges in 12 cases where Ryan commuted death sentences vacated by higher courts in Illinois, meaning those inmates now face a maximum sentence of life in prison when they are resentenced. Prosecutors may argue that the governor did not have the ability to commute the sentence of an inmate who technically wasn't under a sentence.
Rob Warden of Northwestern University's Center on Wrongful Convictions has said that challenge is expected.
"They certainly will say, how do you commute a sentence when there is no sentence," he said.
"That's the one sliver we may have," said Bernie Murray, chief of criminal prosecutions in the Cook County state's attorney's office.
Urdiales, 38, is on Death Row at Menard Correctional Center near Chester.
The break in the Urdiales case came when a prostitute told Chicago police a man had tried to blindfold her and drive her to Wolf Lake. Urdiales had been arrested and charged with possessing a handgun after quarreling with a prostitute, and the gun was linked to the slayings of Uylaki, Huber and Corum by ballistics testing.
Urdiales allegedly confessed to the slayings and raised an insanity defense, his defense lawyers arguing he believed the CIA was ordering him to kill through a transmitter in his head.
He also is charged with five slayings in California.
During his trial, a woman who said she narrowly missed becoming a ninth victim told jurors she escaped from the trunk of his car in Riverside, Calif. A defense psychiatrist, trying to convince jurors of Urdiales' insanity, told them he once had complained that his victim's cries were from "a `Friday the 13th' movie."
Reforms in Urdiales case
Assistant State's Atty. Jim McKay, who led the prosecution, said Urdiales was given the benefit of new reforms ordered by the Illinois Supreme Court, including the right to depose the state's witnesses. Five experienced defense lawyers worked on his case and used the capital litigation fund to hire experts to testify for him.
"Gov. Ryan said that the system is broken, but it's just ignorant to say that in the Andrew Urdiales case," McKay said.
Prosecutors were critical of the defense's handling of Urdiales' post-conviction motions, too, as his lawyers sought clemency before filing for a new trial.
McKay has taken issue with defense lawyers' "ignoring" Urdiales' automatic appeals to argue for clemency for him.
"And now we know why," he said Monday.
Phil Mullane, supervisor of the homicide task force for the public defender's office, said Monday the goal was to save Urdiales' life.
"We were right, and they were wrong," he said, adding that his office is providing documents and background to the defense attorney handling Urdiales' Livingston County case, who could not be reached for comment Monday.
 

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Prisons gird for shift of inmates off Death Row
 
By John Keilman
Tribune staff reporter
January 12, 2003
Illinois' Death Row will be empty within a week, its former tenants beginning new and changed lives in maximum-security cells.
Department of Corrections spokesman Sergio Molina said that in a few days, male inmates whose sentences were commuted from death will leave their cells in Pontiac and Menard prisons for maximum-security wings in Stateville and Menard.
The state's four condemned women in Dwight Correctional Center also will be put into maximum security, but because there are so few, it is not clear whether they'll change cells, Molina said.
The switch from Death Row to the general population will bring changes to the inmates' lives, not all of them pleasant. They no longer will have a cell to themselves. They also will have to give up one of the two document boxes they were allowed to keep in their Death Row cells.
However, maximum-security inmates can leave their cells to have lunch and dinner in a dining hall. They can attend classes and get jobs that will earn them money for the prison commissary.
Molina added that through good behavior, some prisoners might win transfers to less harsh facilities, though lifers usually are confined to maximum-security prisons.
Some prison staffers worry about what will happen when Death Row inmates return to the general population. At October clemency hearings for Roosevelt Lucas and Ike Easley--who were maximum-security inmates when they killed a top Pontiac prison official in 1987--corrections officers argued that letting the men off Death Row would guarantee future violence.
"I can't see taking a chance of letting [Lucas] back in a general population," said Capt. David Knight. "I'm very confident that if this man were let anywhere near people, he would not hesitate to take another life."
Molina downplayed that concern.
"That potential [for violence] exists every day of the week, whether or not you have Death Row people assimilated into general population," he said.
Molina said it isn't clear what will happen to the cells on Death Row once they're empty. Capital punishment still is legal in Illinois and dozens of cases in the state may yet end in a death sentence.
But with 156 prisoners vacating Death Row within days, Molina said, "We'll have to decide what we would have for a setup."
 

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Ryan delivers slap in the face
SJ-R Opinion
12 Jan 2003
 
Gov. George Ryan proved at least one thing on Saturday afternoon with his anti-death-penalty speech and the commutation of all current Illinois death sentences. Ryan did not want to be governor of Illinois; he wanted to be king.
Were George Ryan king, he could have outlawed the death penalty in Illinois. But the fact is that Ryan is merely governor, for another day anyway. So what he was able to do was commute the sentences of the 167 people who now sit on death row. Most will now serve life in prison without the chance for parole.
But lets not be confused by all the applause from death-penalty abolitionists - Ryan did not outlaw the death penalty. In fact, the way he went about the commutation will likely make it even more difficult to pass the reforms so badly needed in Illinois capital punishment system.
The anti-death-penalty advocates who made up the audience at Northwestern University on Saturday loudly cheered Ryans courage. But Ryan didnt really display any courage. What does he have to lose? His political life is over; in fact, he may soon be indicted by federal prosecutors for the massive corruption in the secretary of states office while he headed it.
What Ryan displayed on Saturday was bad judgment.
Our capital system is haunted by the demon of error - error in determining guilt and error in determining who among the guilty deserves to die, said Ryan in defending his decision.
Ryan deemed the states death penalty system arbitrary and capricious - and therefore immoral. Yet, he also defended his decision by saying, I am not prepared to take the risk that we may execute an innocent person
Which is it, governor - the immorality of the death penalty or concerns that innocent people sit on death row?
The first question is certainly open for debate. We would not be at all opposed to a referendum on whether Illinois should continue to be a death penalty state. There are strong arguments on both sides of the capital punishment issue.
We are strongly opposed, however, to one man - even if he is governor - attempting to decide such an important matter, especially when he does not have the moral or legal authority to do so.
The concern over innocence is a sham on Ryans part. The vast majority of those who petitioned for clemency did not contest their guilt. Likewise, a moratorium on using the death sentence is in place, and incoming Gov. Rod Blagojevich has unequivocally said he would keep that moratorium in place while individual cases are studied and reforms are worked on.
The governor deserves the praise he has received for working to reform the death-penalty system in Illinois. The blue-ribbon commission he organized developed a lengthy and worthy list of recommended reforms. We understand his frustration at not getting these reforms implemented by the end of his term.
However, that is not justification for blanket clemency. There can be no justification to commute sentences for monsters, such as Dale Lash or the Chicago-area man and woman who killed a pregnant woman, her 10-year-old daughter and 7-year-old son because they wanted the womans baby, which they cut from her womb.
Rather than continue to work for reforms, Ryan took the easy way out. He made no attempt to discern between some of the most evil people imaginable and the small number who may have legitimate reasons to challenge their sentences. Cook County States Attorney Dick Devine may have said it best: Yes, the system is broken and the governor broke it today. Ryans actions are a slap in the face to not only the victims families but to all those involved in the judicial system.

Prisons gird for shift of inmates off Death Row
 
By John Keilman
Tribune staff reporter
January 12, 2003
Illinois' Death Row will be empty within a week, its former tenants beginning new and changed lives in maximum-security cells.
Department of Corrections spokesman Sergio Molina said that in a few days, male inmates whose sentences were commuted from death will leave their cells in Pontiac and Menard prisons for maximum-security wings in Stateville and Menard.
The state's four condemned women in Dwight Correctional Center also will be put into maximum security, but because there are so few, it is not clear whether they'll change cells, Molina said.
The switch from Death Row to the general population will bring changes to the inmates' lives, not all of them pleasant. They no longer will have a cell to themselves. They also will have to give up one of the two document boxes they were allowed to keep in their Death Row cells.
However, maximum-security inmates can leave their cells to have lunch and dinner in a dining hall. They can attend classes and get jobs that will earn them money for the prison commissary.
Molina added that through good behavior, some prisoners might win transfers to less harsh facilities, though lifers usually are confined to maximum-security prisons.
Some prison staffers worry about what will happen when Death Row inmates return to the general population. At October clemency hearings for Roosevelt Lucas and Ike Easley--who were maximum-security inmates when they killed a top Pontiac prison official in 1987--corrections officers argued that letting the men off Death Row would guarantee future violence.
"I can't see taking a chance of letting [Lucas] back in a general population," said Capt. David Knight. "I'm very confident that if this man were let anywhere near people, he would not hesitate to take another life."
Molina downplayed that concern.
"That potential [for violence] exists every day of the week, whether or not you have Death Row people assimilated into general population," he said.
Molina said it isn't clear what will happen to the cells on Death Row once they're empty. Capital punishment still is legal in Illinois and dozens of cases in the state may yet end in a death sentence.
But with 156 prisoners vacating Death Row within days, Molina said, "We'll have to decide what we would have for a setup."

Clemency for all
Ryan commutes 164 death sentences to life in prison without parole. `There is no honorable way to kill,' he says.
 
 
By Maurice Possley and Steve Mills
Tribune staff reporters
January 12, 2003
Declaring the state's capital punishment system "haunted by the demon of error" and citing the state legislature's failure to reform it, Gov. George Ryan on Saturday commuted the sentences of every inmate on Illinois' Death Row.
With two days left as governor, Ryan issued a blanket commutation that converted every death sentence to life in prison without parole--164 inmates, including four women.
"Because the Illinois death penalty system is arbitrary and capricious--and therefore immoral--I no longer shall tinker with the machinery of death," Ryan said, borrowing the words of the late U.S. Supreme Court Justice Harry Blackmun. "I won't stand for it. ... I had to act."
Ryan placed a moratorium on the death penalty in 2000 after 13 Death Row inmates were exonerated and following the Tribune series "The Failure of the Death Penalty in Illinois," which exposed serious flaws. Ryan said his three-year examination of the state's death penalty system had only raised new alarms over errors in determining guilt and errors in determining "who among the guilty deserves to die."
He called the number of exonerated inmates--a total that grew to 17 when he pardoned four men from Death Row on Friday on the basis of actual innocence--"an absolute embarrassment" and "a catastrophic failure."
"The facts I have seen in reviewing each and every one of these cases raised questions not only about the innocence of people on Death Row, but about the fairness of the death penalty system as a whole," Ryan told a cheering audience at Northwestern University's School of Law that included six exonerated former Death Row inmates.
"The Illinois capital punishment system is broken. It has taken innocent men to a hair's breadth escape from their unjust execution."
Ryan, whose power to commute and pardon is immune from challenge, responded to critics--whose ranks include Gov.-elect Rod Blagojevich, who called it a mistake, and Cook County State's Atty. Richard Devine.
"Prosecutors in Illinois have the ultimate commutation power, a power that is exercised every day," he said. "They decide who will be subject to the death penalty, who will get a plea deal or even who may get a complete pass on prosecution. By what objective standards do they make these decisions? We do not know, they are not public."
The death penalty was handed out differently, Ryan said, depending on where people lived in Illinois, who their prosecutor was, who their defense lawyer was, how poor they were and what race they were.
"Prosecutors across our state continue to deny that our death penalty system is broken--or they say if there is a problem it is really a small one and we can fix it somehow, someday," Ryan said.
He said he found it difficult to believe the system could be repaired when "not a single one" of the reforms urged by his Capital Punishment Commission has been adopted by the legislature.
"These reforms would not have created a perfect system, but they would have dramatically reduced the chance for error," he said. "I don't know how many more systemic flaws we need to uncover before [the legislature] would be spurred to action."
Ryan acknowledged his decision to commute the sentences of all Death Row prisoners "will draw ridicule, scorn and anger from many ... Even if the exercise of my power becomes my burden, I will bear it. ... I sought this office, and even in my final days of holding it, I can't shrink from the obligations to justice and fairness that it demands. ... I'm going to sleep well tonight knowing I made the right decision."
In all, Ryan commuted 164 death sentences to life without parole. On Friday he pardoned four Death Row inmates, resulting in the release of three. Another three Death Row inmates had their sentences shortened to 40-year terms.
After his speech, during interviews with reporters, Ryan said he hoped his action would spark increased examination of the death penalty in other states.
"If it's this bad in Illinois, it's probably just as bad across the country," he said.
Ryan commuted the terms of three Death Row inmates--Mario Flores, Montell Johnson and William Franklin--to 40-year prison terms.
Ryan's blanket commutation caps a remarkable ideological journey for a beleaguered governor. The Republican entered the governor's office a staunch supporter of capital punishment. As a state legislator in 1977, he voted in favor of reinstating the death penalty. When he departs the office Monday, still hounded by an unrelated corruption scandal, Ryan will leave behind a vacant Death Row.
Though other governors have taken sweeping clemency actions before him, experts said Ryan's decision compares in scale only with the U.S. Supreme Court's 1972 overturning of the death penalty, which reduced hundreds of death sentences to life.
What effect his decision may have on the debate over capital punishment nationally remains to be seen, but Ryan sealed his place as a hero of the anti-death penalty movement, drawing support from leaders such as Nelson Mandela and Rev. Jesse Jackson.
But the extraordinary move also prompted outrage and anguish from prosecutors and some murder victims' families, who received letters from Ryan on Saturday morning telling them what he was about to do.
"I am not prepared to take the risk that we may execute an innocent person," Ryan wrote in the letters sent by overnight mail.
Devine called the decision "stunningly disrespectful to the hundreds of families who lost their loved ones to these Death Row murderers." With his choice, Devine said, Ryan had "once again ripped open the emotional scabs of these grieving families."
Peoria County State's Atty. Kevin Lyons said Ryan is "in hate with" justice.
"It was so offensive for him to compare himself to Lincoln and say, `I am a friend to these men on Death Row,'" Lyons said. "My reply is, yes, your excellency, you certainly are. Now go home before you make any more friends who are murdering the good people of Illinois."
Some family members and friends of murder victims said they believed Ryan was merely trying to shift attention away from the corruption scandal that has plagued his administration and led to criminal charges against top aides.
"I just think it's political tactics," said Helen Sophie Rajca of Bolingbrook, whose two brothers were shot and stabbed to death in 1979.
In his speech, Ryan acknowledged the anger of the victims' families. Ryan had listened to their gripping stories and pleas in recent months and had at one point told family members he was leaning away from a blanket commutation. During the more than hourlong speech, he struggled to retain his composure when he told the story of family friend Stephen Small from Kankakee, whose killer also got his sentence commuted.
Death Row may be empty, but there are more than 60 capital cases in the pipeline in Illinois where prosecutors have formally declared their intention to seek the death penalty, the vast majority in the Chicago area.
In dozens of other cases, defendants are technically eligible for the death penalty, but prosecutors have yet to signal their intentions.
In Cook County, there are an estimated 50 pending capital cases. There are three capital cases in Kane and one in Will County. In DuPage, prosecutors are considering the death penalty in six cases.
In Coles County, a death penalty trial will begin next month for Anthony Mertz. He is accused of strangling Shannon McNamara, an Eastern Illinois University student.
Incoming Att. Gen. Lisa Madigan said she still believed capital punishment was appropriate for heinous crimes, and said she hoped the governor's decision would not delay or derail the reform process.
She said she planned to review the lawsuit her predecessor, Jim Ryan, has filed in an effort to scuttle commutations received by those who did not sign clemency petitions, or whose death sentences have been tossed out by the courts.
"I will meet with the lawyers in the attorney general's office and reach out to State's Atty. Devine very soon to decide our next step in that case," she said through a spokeswoman.
At the Mexican Consulate, relatives of Flores, Juan Caballero and Gabriel Solache--the three Mexican nationals on Death Row--gathered to express their appreciation.
"This has been a very difficult week for us. We heard [Mario] was going to be pardoned, then we heard the opposite. But it is great just to know he is not going to be executed. We are really grateful," said Ana Flores, Mario's sister.
Carlos Sada, Mexico's general consul in Chicago, hailed the announcement as a victory for Mexico, which has 54 nationals in Death Row in the U.S., making Mexico the country with the largest number of foreign nationals among condemned prisoners in this country.
Asked if he considered that he had saved many lives, Ryan told a reporter, "I never thought about that. ... My goal was to improve a broken system in Illinois."
After the commission made recommendations that were not implemented, "the next logical step is if you can't fix it ... repair or repeal. You can't repeal it. Politically, it's impossible to do. So we had to do the next best thing we could, and that's what we did today. We commuted the sentences, there's a clean slate for the new governor to come in. ... And he's got a new General Assembly coming in."
Former Illinois Chief Justice Moses Harrison II, who dissented in every death penalty case during the end of his term on the court, called Ryan's action a courageous step. "He indicated a long time ago that he was aware the system was broken," said Harrison. "Once he did that, why, then there was only one thing he could do."
 

Man, wife found dead at Hillsboro prison
Both correctional officers at facility
 
By NANCY SLEPICKA and JOHN REYNOLDS
29 Dec 2002
 
HILLSBORO - A Graham Correctional Center officer apparently killed his estranged wife, also a security officer, and then turned the gun on himself early Saturday morning at the prison.
The bodies of Joseph L. Koches, 35, of Hillsboro and Helen M. Koches, 39, of Springfield were found by another correctional officer about 6 a.m. inside the gatehouse, just outside the main entrance to the prison, according to Corrections officials.
Both died of gunshot wounds to the head, said Montgomery County Coroner Rick Broaddus.
Department of Corrections officials confirmed the identities of the slain guards and said the deaths were being treated as a murder-suicide but provided few other details about what happened.
Joe Koches was assigned to the prison armory, according to sources familiar with the prison, and called a superior officer and asked to be relieved about 5:15 a.m. He then allegedly went to the gatehouse where Helen worked but didn't return.
The first sign of a problem apparently came about 45 minutes later when dietary workers arriving for work couldn't get into the facility, sources said. The employees reportedly could see Helen Koches slumped over her check station and assumed she was asleep. A tower guard was said to have been notified, and he called the shift commander, who sent a sergeant to investigate.
The sergeant reportedly found the Kocheses, who were pronounced dead at the scene, according to Broaddus.
Sergio Molina, spokesman for the Department of Corrections, said neither would have carried a weapon as part of their normal duties. He declined to speculate on where the weapon came from.
After the incident, the prison was immediately put on lockdown, and it is expected to remain that way throughout the weekend.
Molina said the lockdown status was implemented to make it easier for correctional employees to do their jobs in the wake of the shooting.
"Obviously, this is a tragic incident to take place anywhere," Molina said. "We want our staff to be able to concentrate. ... (The lockdown) slows things down until we can get back to some normalcy."
Molina added that counselors are available for employees.
"We have a counseling staff on site. They will continue to be available to talk to staff if they so desire," Molina said.
Joe Koches had worked at the prison since September 1992, and Helen since May 1996, according to Corrections officials.
The Department of Corrections, Illinois State Police and the Montgomery County Coroner's Office are investigating the shooting.
An autopsy will be performed Monday in Springfield, and an inquest will be held.
Nancy Slepicka can be reached through the metro desk at 788-1519 and John Reynolds at 788-1524 or john.reynolds@sj-r.com.
 
 

Statehouse INSIDER
 
BY DOUG FINKE
08 Dec 2002
It didn't get a whole lot of attention, but that $200 million spending bill pushed by the American Federation of State, County and Municipal Employees went exactly nowhere in the legislature's fall veto session.
If you recall, AFSCME made a big deal out of trying to restore cuts imposed by lawmakers last spring, including closure of the Lincoln Developmental Center in Lincoln, Zeller Mental Health Center in Peoria and Sheridan Correctional Center near Ottawa.
AFSCME held news conferences and rallies and did all sorts of things to drum up publicity for spending more money on state employees. There's just one problem. The state is just about broke, and everyone seems to know that except for AFSCME.
Gov.-elect ROD BLAGOJEVICH knows it, and he asked House Speaker MICHAEL MADIGAN to sit on the bill, even though it contains mostly Blagojevich campaign promises. This is part of the new Blagojevich who - now that he's safely elected - is talking more about shared pain than restoring cuts.
It will be fun watching this saga unfold next spring - Blagojevich the new fiscal conservative vs. a pro-spending union that claims to have helped put him in power.

It's just not going to be the same around the Capitol without Senate President JAMES "PATE" PHILIP, R-Wood Dale.
Retiring after 34 years in the General Assembly, Philip is the politician who boldly spoke where few people spoke before. Some of those comments were viewed as sexist, racist and a few other "ists."
The thing about Philip is that he never changed. His notorious comment about minorities lacking a strong work ethic was made in 1994. It generated a firestorm of criticism. And how has that affected the December 2002 version of Philip? You be the judge.
"When you criticize minorities, whether you are right or wrong, their reaction is it is a racist remark," Philip said last week. "You ever think I might be right about what I was suggesting? It's not a racist remark. I just disagree with them."

Then there's Philip on the idea of a state-backed loan for nearly bankrupt United Airlines. Gov. GEORGE RYAN cooked up the idea even though the state isn't in much better financial shape than the airline, and even though the airline didn't ask the state for help.
Now, the usual position of Republican lawmakers and business interests is that the government should butt out of business unless it has contracts, tax cuts, bailouts or other lucrative goodies to offer, in which case government is more than welcome. Philip travels to a slightly different drummer.
"I don't think government ought to bail out any business. It's against my philosophy," Philip said. "If you can't make it in the real world, do something else."
Ryan's argument is that 18,000 jobs are at stake, which justifies the state's involvement. Tough, said Philip.
"I'm sorry about those people," he said. "It's a terrible thing, but that's life."

There's a resolution floating around the General Assembly that would rename the Waterways Building in Springfield for retired state Supreme Court Justice BEN MILLER. The old Waterways Building was remodeled to become offices of the Fourth District Appellate Court, which covers central Illinois. The resolution also would name a building in Chicago for the late former Justice MICHAEL BILANDIC.
The resolution was all set for a vote in the Senate, the final act necessary to name the buildings. And then, no vote.
It turns out Philip wants to add one more item to the list. He wants to name Pyramid State Park near DuQuoin after Gov. Ryan. The argument is that Ryan's open lands trust program enabled the park to nearly double in size, making it the largest state park in existence.
Here's where it gets fun. Some Democrats insist the reason the Senate didn't act on the resolution last week was because of expected complaints about naming anything after George Ryan. Instead, the resolution will be zipped through in early January, when lawmakers return for a couple of days before the newly elected people takeover.
Philip's office said the delay was because the House left town earlier than expected last week. Since the House must also approve the resolution, the decision was made to just wait until everyone comes back to town Jan. 6.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

1,000 state layoffs delayed
Judge acts at request of Blagojevich
 
By DOUG FINKE
STATE CAPITOL BUREAU
07 DEC 2002

A St. Clair County judge has indefinitely postponed the layoff of nearly 1,000 state workers after Gov.-elect Rod Blagojevich wrote a letter asking that they be delayed.
Had the ruling not been issued, most of those employees would have been out of a job by mid-January, according to the Department of Central Management Services, state government's personnel agency.
In a letter that was read to Judge Alexis Otis-Lewis in a Belleville courtroom, Blagojevich asked that an injunction currently preventing the layoffs be extended until after he takes office. Otis-Lewis agreed to a 90-day extension. Blagojevich takes office Jan. 14.
The ruling will keep hundreds of Department of Corrections sergeants, maintenance workers and leisure-time specialists on the job for at least a while longer. Also affected are workers at mental health facilities in Elgin and Rockford as well as some Department of Children and Family Services employees in Cook County.
The ruling was issued Thursday in a lawsuit filed by the American Federation of State, County and Municipal Employees Council 31 to stop layoffs that were part of last spring's budget cuts.
In his letter, Blagojevich said an injunction preventing the layoffs should be extended "because circumstances have changed greatly since the layoff plan was adopted last spring." The Chicago Democrat said there are now more than 1,500 vacancies in Corrections and that further staff reductions would pose a threat to public safety.
Also, Blagojevich said many more state workers are expected to take early retirement than had been estimated.
"As a result, most, if not all, of the anticipated reduction in work-force levels could be achieved through attrition rather than through mandated layoffs," Blagojevich said.
Blagojevich spokesman Billy Weinberg said Friday the ruling buys more time for employees about to lose their jobs and for the incoming administration to assess the state's financial problems.
"I don't think it necessarily points to any specific action (by Blagojevich)," Weinberg said. "It allows us more time to assess how much personnel levels will change as a result of early retirement."
CMS spokeswoman Judy Pardonnet said the state did not object to the extension.
"The state was prepared to agree because the governor-elect requested the continuation," Pardonnet said, noting that the current administration doesn't want to make any decisions that would hamstring the new governor's ability to deal with budget problems.
AFSCME spokesman Mark Samuels acknowledged that the issues raised by Blagojevich in his letter are identical to those made by the union when fighting the budget cuts. However, he said the letter was written by Blagojevich, not AFSCME.
The state was ready to deliver layoff materials to all 1,000 workers before the ruling was handed down Thursday.
During the General Assembly's just-concluded fall veto session, AFSCME pushed a $200 million supplemental spending bill that would have restored many of the budget cuts made last spring, particularly those affecting state employees.
However, at Blagojevich's request, House Speaker Michael Madigan, D-Chicago, prevented the bill from coming to a vote and possibly passing, which would have added to the state's budget deficit.
Weinberg said Blagojevich's decision to write the letter was not an attempt to mollify the union.
"The two have no connection," he said.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Watson to lead Senate GOP

 
By DOUG FINKE
STATE CAPITOL BUREAU
6 Dec 2002
Senate Republicans selected a downstater as their new leader Thursday, ending a decades-long lock by the Chicago suburbs on the top GOP posts in the General Assembly.
The selection of Sen. Frank Watson of Greenville also means not one official from Republican powerhouse DuPage County holds a top spot in state government.
In a secret ballot the Senate GOP cast behind closed doors, Watson defeated Sen. Kirk Dillard of Hinsdale. A third candidate, Sen. Steve Rauschenberger of Elgin, withdrew his name before the meeting when he realized he could not muster the votes to win.
Dillard said he views the vote as something of a backlash against DuPage County, which has dominated state Republican politics for years.
"There was clearly a message by some that they wanted a change from DuPage County," Dillard said. "It was not a plus to be from DuPage County."
Watson, 57, said there was no backlash.
"I don't believe so at all," he said. "I don't think this was a parochial vote. The support I had came from throughout all the members of this caucus. It wasn't a united effort by downstaters to take over control of the caucus."
The last year has been terrible for DuPage County's role in state politics. Attorney General Jim Ryan, the county's former state's attorney, lost the race for governor. Current DuPage County State's Attorney Joseph Birkett lost the race for attorney general.
House Republican Leader Lee Daniels of Elmhurst gave up chairmanship of the state Republican Party in the wake of a federal investigation into allegations that House GOP staff performed campaign work on state time. The state party chairman now is Treasurer Judy Baar Topinka, who lives in suburban Cook County.
With his support dwindling, Daniels then opted to retire as House Republican leader after 20 years. Rep. Tom Cross from Oswego, in Kendall County, replaced him.
On Wednesday, Senate President James "Pate" Philip, R-Wood Dale, announced he is retiring early next year. Philip served as leader of the Senate GOP for 21 years, longer than anyone else.
"I don't look at myself as downstate," said Watson, whose home is about 50 miles east of St. Louis. "I think the membership of this caucus feels comfortable with what I have done as a leader."
Watson is an assistant majority leader to Philip now.
Sen. Larry Bomke, R-Springfield, praised Watson's selection.
"It is not bad having a downstater as a leader for a change," Bomke said. "Perceptually, at least in my area, DuPage County has been running the state. I don't believe that is the case, but people believe that."
Watson called himself a "social and fiscal conservative" and pledged Senate Republicans will work with Democratic Gov.-elect Rod Blagojevich up to a point.
"I think as a caucus we will reach out to the new governor," Watson said. "We will be with him when we can. We will tell him when he's wrong."
Senate Republicans will do that as the minority party. When the new General Assembly is sworn in next month, Republicans will have 26 seats in the Senate compared with 32 now. Democrats will have 32 seats, and there is one independent.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Grundy County judge says state
can't privatize prison dietary
 
December 5, 2002
The American Federation of State, County and Municipal Employees Council 31 (AFSCME) was responsible for filing the suit. In brief, the union charged that DOC's proposed action violated the state's Private Correctional Facility Moratorium Act, which bans privatization of security functions in Illinois prisons.
DOC had argued that dietary was not a security function, but Judge Peterson agreed with AFSCME that dietary is at the nexus of a security interest.
Peterson did say DOC could seek outside vendors to fulfill its commissary functions, which was also at issue in the lawsuit.
The state has not published a request for proposals (RFP) to privatize the commissary jobs, however, and DOC has said its commissary plan will not involve the use of non-state workers inside the prisons.
"This was an important victory," said AFSCME Executive Director Henry Bayer. "We felt strongly that privatizing dietary services in prison kitchens where inmates have access to knives and other potential weapons would have posed a great risk to prison security and to our members. We're very pleased the judge has ruled this way."
 

Supplemental appropriation bill stalled
as Speaker refuses to call it for a vote
 
 
December 5, 2002
Madigan held up the bill throughout the first week of the veto session when legislators and the press all expected it to be called, putting the word out that he was holding it in the hope of making Gov.-elect Rod Blagojevich take a position on the measure.
Then when the two met this week Madigan maneuvered Blagojevich, with whom he has been feuding since the onset of the campaign season, into taking a stand on the supplemental. Unfortunately, Blagojevich played right into the speaker's hands and stated publicly that he was requesting that the bill not be called for a vote at this time. The governor-elect went on to state that he is still committed to restoring the jobs and service cuts that have been made, but that he wants the opportunity to do so in the context of developing his own fiscal program for state government.
The union intends to hold him to that commitment when he assumes office.
We also know, of course, that the state is facing a drastic budget crisiswith a shortfall as high as $4 billion. But the supplemental only costs a fraction of that$155 millionand could be funded by temporary borrowing until a full budget solution is crafted.
When the General Assembly returns in January, Council 31 will be there, too pressing again for passage of the supplementalso that jobs can be immediately restored. Without such action, AFSCME members will have to wait for adoption of a new budgetwhich won't go into effect until July 1. Even if that budget does include the restorations, many members will by then have been on layoff for as much as a yearwith unemployment benefits expired and families in dire straights. That's why we continue to believe that jobs and services need to be restoredand they need to be restored soon!
 

Philip ending 35-year legislative career
 

 

BY DAVE MCKINNEY SUN-TIMES SPRINGFIELD BUREAU
 5 Dec 2002
 
 
 

SPRINGFIELD--Illinois Senate President James "Pate" Philip announced late Wednesday that he will retire after serving nearly 22 years as the Senate's top Republican.
Philip said he made his decision over the Thanksgiving holiday and informed his fellow Senate Republicans during a meeting at a Springfield hotel Wednesday evening.
"I've been here long enough,'' he said afterward. "I'm 72. It's time to go.''
Philip, of Wood Dale, said the fact Republicans lost the offices of governor and attorney general in November factored in his decision to step down.
Democrats also took control of the Senate, ending 10 years of Republican rule. Democratic leader Emil Jones of Chicago is poised to take over as Senate president.
Philip first took office in 1967 as a state representative and was appointed to the Senate to fill a vacant seat in 1981. He has led the Senate as its president since 1993 and will remain through the veto session.
After being elected to a two-year term Nov. 5, Philip was to have been sworn in Jan. 8. He said he is searching for a successor from DuPage County.
Philip's imminent departure creates a leadership void. At least three of his subordinates have expressed a desire to take his place: Sen. Kirk Dillard (R-Hinsdale), Sen. Steve Rauschenberger (R-Elgin) and Sen. Frank Watson (R-Greenville). A leadership vote is set for sometime next week.
Steve Brown, spokesman for House Speaker Michael Madigan (D-Chicago), lamented Philip's decision to move on.
"That will be the end of a significant era,'' Brown said. "Pate has been a very dominant force in Illinois politics in the Legislature for quite a number of years."
Jones' spokeswoman Cindy Davidsmeyer said Jones "was shocked by the decision. He thought Pate would stay around and certainly wishes him well.''
 
 

 
 
 
 
 
 

 

Ryan seeks state help for UAL
 
 
December 4, 2002
BY DAVE MCKINNEY AND TAMMY WILLIAMSON Staff Reporters 
 
 
 
 

SPRINGFIELD--Gov. Ryan urged top state lawmakers Tuesday to loan $200 million to financially strapped United Airlines, but the Senate's top Republican ridiculed the idea at a time when the state's treasury is bleeding red ink of its own.
Ryan wants the state to back the loan, which would be contingent on the airline getting a $1.8 billion federal loan guarantee. But he stopped short of putting taxpayers directly on the hook if United defaulted on repayment. That risk would fall on investors.
The governor said it is important for the state to lend its moral and financial help to assist United win the federal loan guarantee, particularly since the jobs of 18,000 Illinois-based United employees could be at risk if the airline collapses.
"They're a major Illinois corporation. We do everything we can to bring corporations here. We should do everything we can to save companies when they come here and to help them while they're here," Ryan said. "That's what we're trying to do."
The guarantee would help United borrow $2 billion to avert bankruptcy. A decision about the guarantee is expected any day from a special federal panel, but first the airline's mechanics must approve wage cuts in a critical union vote Thursday.
Ryan's lending scheme would involve going to the Legislature this week to authorize loans from the Illinois Development Finance Authority, a little-known state entity that issues business loans. Ryan concocted the idea, a move the airline praised.
"We're grateful the governor has reached out to us, and we'll work with him in any way that makes sense in order to come to some kind of loan assistance that makes sense for United and for the state," United spokesman Rich Nelson said.
But American Airlines, United's chief rival at O'Hare Airport, began a feverish lobbying pitch against the plan and picked up a powerful ally in Senate President James "Pate" Philip (R-Wood Dale). He questioned the wisdom of using state resources during a budget crunch to bail out a company that he believes has been poorly run.
"There are a lot of serious financial problems with schools, with the budget, probably $2, $3, $5 billion short for 2003. Where's the money coming from? In the real world, the banking community wouldn't touch them with a 10-foot pole. I just think it's a bad idea," Philip said.
"If you can't make it, get out of business. I'm sorry about those people," Philip continued, referring to the carrier's employees. "It's a terrible thing. But that's life. And believe me, someone will pick up that airline and run it right. I mean, they've had five CEOs in the last five years. They had $850 million (in federal funds) after 9/11. Where did that go?"
Philip's arguments were bolstered Tuesday by the disclosure that a top bond-rating agency, Moody's Investors Services, had revised its outlook downward on the state's financial health during the next six months. The move was based on declining sales tax revenues and the prospect of the legislature restoring $200 million in Ryan budget cuts without identifying a way to pay for them, Ryan's administration said.
Ryan's United proposal won backing from Gov.-elect Rod Blagojevich.
"Rod does believe the state should look at every possible thing for helping United," spokesman Doug Scofield said. "This package is one good option, so I think Rod is pleased to see some action on this issue and, as governor, will make keeping United a major employer in our state a top priority."
There would be no strings attached to the money, so United could use it to pay for day-to-day operating expenses or cover payments on other outstanding debts, legislative leaders briefed on the plan said. Ryan has proposed putting the state's "moral obligation" behind the bonds that would be issued on United's behalf. That is different from putting the state's full faith and credit behind the borrowing because the state would not be forced to repay the loans should United default.
A Moody's analyst said Ryan's approach appeared unusual but doubted a default by United on any state-backed loans would worsen the state's credit rating.
Moody's analyst Timothy Blake said he wasn't aware of Ryan's proposal to issue bonds on behalf of United, though he said the idea "sounds a little different" than what states usually issue moral obligation bonds for.
"States use the moral obligation technique for economic development frequently, normally to spur the growth of small business or attract new business," Blake said.
The state's overall debt figures into what rating credit agencies give to Illinois--the higher the rating, the lower the state's borrowing costs for public works projects. But the $200 million amount is just a fraction of the state's overall $13 billion of debt, and in the worst-case scenario of a default, "I don't think that would change our rating," Blake said.
Moody's put the state's Build Illinois bonds, backed by state sales taxes, on what it calls "negative outlook," which means it could lower the bond's credit rating of Aa2 in the next 18 months if the state's sales tax collections continue to slow.
"Negative outlook indicates that they are under an unusual amount of stress for their rating category," Blake explained.
Legislators are scheduled to go home for the year on Thursday, leaving little time to win support in the General Assembly for the borrowing plan. Since Philip controls the Senate, he could singlehandedly block the idea from surfacing in his legislative chamber.

United to lay off 352 more pilots
 
 
 

United Airlines announced plans Tuesday to lay off another 352 pilots over the next two months as part of its plan to decrease its flying schedule next year.
The company said it will cut 220 pilots' jobs on Jan. 6 and another 132 on Feb. 7, reducing its current total of 8,600 pilots by an additional 4 percent.
The actions will increase the number of pilots laid off to 1,196 from cost-saving measures the carrier announced last month, and 9,000 employees in all. United currently has about 83,000 employees.
Meanwhile, CEO Glenn Tilton Tuesday announced plans to eliminate eight top executives, and give the 36 remaining executives, including Tilton, an 11-percent pay cut. United also plans to forgo the remaining executives' scheduled 2002 merit pay increases and incentive payments. The move saves a combined $60 million.
Pilots' union spokesman Herb Hunter said the layoffs had been anticipated since the latest schedule reduction.
 

Pork spending picks up speed
1 DEC 2002
SPRINGFIELD (AP) Amid a growing budget crisis, state lawmakers tried in the months before the fall election to push through at least $215 million worth of their own favorite projects, asking for money for everything from a dog pound to golf course pathways.
Between July and mid-November, House and Senate members asked for $17 million more in taxpayer-funded pork barrel grants money set aside for lawmakers' pet projects than they did in the previous 12 months, according to state records.
Lawmakers defend the member initiatives as a way to fund deserving programs in their districts. But their efforts to have come as fiscal experts project a $3 billion budget shortfall by next summer.
And because Gov.-elect Rod Blagojevich has made it clear he is a lot less sympathetic to such spending than outgoing Gov. George Ryan, lawmakers are scrambling to beat the clock.
Cindi Canary of the Illinois Campaign for Political Reform is among the critics of the member initiatives.
"There's a large number of requests, at the same time there is an election," she said. "It's less about the merits of any particular project than it is about, 'Where's the engine that's driving our priorities?"'
Within the Legislature, there is concern about the initiatives as well.
"What's missing is the General Assembly right now is the bipartisan leadership resolve to take the responsibility to freeze member initiatives," said Senate Appropriations Committee chairman Steve Rauschenberger, R-Elgin. "Individual members are under this perverse pressure. 'If I've got $300,000 left and I don't spend it, how do I explain that"' to constituents?
Lawmakers from both parties have been warned if they don't use their pork allotments, they could lose them. That message apparently has been received.
Rep. Tim Osmond, R-Antioch, for example, has asked for $25,000 to build all-weather pathways at a Zion golf course. Sen. Adeline Geo-Karis, R-Zion, wants $35,000 to build a dog pound in Zion.
Rep. Gary Hannig, D-Litchfield, has in recent months asked for grants of $100,000 each to build or repair running tracks at four high schools in his district in central Illinois.
 

Blagojevich targets state panels
 
By MIKE RAMSEY
COPLEY NEWS SERVICE
27 Nov 2002
 
CHICAGO - State commissions and boards with paid political appointees are the targets of a cost-cutting initiative launched Tuesday by Gov.-elect Rod Blagojevich.
Blagojevich said he has formed a task force to study the possible abolition or restructuring of more than 350 state panels to which the governor appoints at least one person.
Of particular interest are the 20 panels that collectively pay 150 appointees $6.7 million each year, Blagojevich said.
"I expect to learn that some of the commissions and boards can be eliminated. I expect to learn that some can be consolidated," Blagojevich said at a news conference in Chicago. "I'm sure that some can get by with fewer members, and I believe almost all of them can function with smaller salaries. We will decide on a case-by-case basis."
The Democrat's announcement comes as he prepares to inherit a daunting state budget crisis and as retiring Republican Gov. George Ryan asks the GOP-controlled Senate next week to lock in several political allies to paid posts, some for several years.
Ryan on Tuesday refused Blagojevich's request to withdraw the list, which includes state Sen. Laura Kent Donahue, R-Quincy. Donahue will make nearly $80,000 in annual pay as a member of the Illinois Educational Labor Relations Board.
Ryan also wished Blagojevich good luck in trying to downsize boards and commissions. In the early days of his own administration, Ryan said he could only get lawmakers to agree to cut or reorganize roughly 60 of 100 panels his experts focused on.
"We tried to cut more, and he can have an opportunity to do that when he gets to be governor," Ryan told reporters during an appearance at the James R. Thompson Center. "We'll be glad to share our study with him that we did when we went in."
Among the paid appointees serv-ing on state boards or commissions is former Peoria mayor Jim Maloof, who said he is open-minded about Blagojevich's proposal to streamline the panels.
Maloof, a successful real-estate broker, has served for six years on the Illinois Human Rights Commission and makes $38,000 annually. His workload includes researching discrimination cases and attending up to 24 hearings a year in Springfield and Chicago, he said.
"Since the state is in such budget constraints, maybe they ought to evaluate how much the commission members are being paid, including ours," Maloof said. "I would willingly take a cut in my pay to help the state."
Unlike Maloof's part-time job on behalf of the state, some appointments carry full-time responsibilities with considerably more stress and work. Members on the Prisoner Review Board include former Tazewell County sheriff James Donahue and Craig Findley of Jacksonville; each makes $72,950 in base annual salary.
Neither could be reached for comment Tuesday, but the board's Springfield-based attorney, Ken Tupy, said duties for the panelists include traveling to state prisons to research inmate histories, holding quarterly clemency hearings and setting conditions for the release of offenders. The Prisoner Review Board's clemency caseload spiked this year with the recent, highly publicized series of hearings for death row inmates.
"The clemency (hearings) are a small portion of what we actually do," Tupy said. "Because of the seriousness of the death penalty cases, we got a lot of attention recently."
Blagojevich suggested that some appointees who are independently wealthy may be willing to waive salaries altogether in the interest of public service.
Case in point: former state Sen. Bill Marovitz, a Chicago Democrat on the Pollution Control Board who pulls in $90,000 annually from that appointment.
Blagojevich noted that Marovitz is an attorney and developer and "has the whole Playboy thing going" - a reference to Marovitz's marriage to Playboy Enterprises CEO Christie Hefner.
Marovitz said he doesn't currently practice law and denied he is as well-off as the governor-elect seems to think. But he agreed to "abide by whatever" Blagojevich's task force recommends.
"If the task force comes back and says, 'We don't think that any boards or commissions should be compensated,' I still want to serve my state and I still want to serve the people," said Marovitz, who also has an unpaid seat on the Illinois Health Facilities Planning Board. "If that's what they feel is best for the state of Illinois, so be it."
Chairing Blagojevich's volunteer task force are former U.S. Sen. Paul Simon; John Rogers Jr., founder of the Chicago-based Ariel Capital Management Corp.; and Paula Wolff, who worked for the administrations of former Govs. Jim Thompson and Jim Edgar.
"As a barnacle in state government, I can attest to the fact that these boards and commissions grow and shrink," said Wolff, currently executive director of Chicago Metropolis 2020. "The salaries rise and fall over time, and they absolutely need to be scrutinized carefully."
The group is expected to submit a report to Blagojevich before the end of December.
The governor-elect said he hopes the task force can recommend ways to reduce board and commission costs by at least one-third but acknowledged that such savings would hardly dent a potential state budget deficit of $2 billion or more.
Blagojevich, a congressman from Chicago's northwest side, takes office Jan. 13.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.
 

Ex-inmates sent to live with elderly
Nursing homes take in parolees
 
By David Heinzmann
Tribune staff reporter
November 24, 2002
 
In dozens of nursing homes across the state, elderly people are living side by side with recently paroled inmates--among them 10 convicted murderers and eight sex offenders--who were placed into the mostly geriatric homes by the Illinois Department of Corrections.
State officials and nursing home operators say the practice is legitimate, and that ex-cons cannot be denied nursing care just because they have violent criminal records.
But advocates for patients say the state is repeating past sins of dumping inappropriate people--especially mentally ill patients--in nursing homes in order to get the federal government to help pay for their care.
Nursing home administrators say they are aware which residents are parolees, but they typically place no special restrictions on them. Nor do they advise other patients, their families or visitors that convicted murderers, rapists and armed robbers may be living down the hall.
"These are people that nobody in their right mind would want in a nursing home," said Wendy Meltzer, staff attorney for Illinois Citizens for Better Care. "You certainly wouldn't want them living next to your mother. ... How can anybody say the screening is being done appropriately?"
At least a dozen of the approximately 150 inmates who have been paroled into nursing homes since 1999 have been sent back to prison for parole violations committed while in nursing homes, state records show.
Corrections officials said except for one parolee who sexually assaulted a woman at a southern Illinois nursing home, none of the violations was for harming other nursing home residents.
State officials from the Department of Public Health to Gov. George Ryan say that the only way to judge whether individual parolees pose a threat to nursing home neighbors is to watch them once they've moved in.
Of particular concern to advocates are the 17 parolees for whom mental illness is the primary reason for nursing care. Only four of the 17 are in nursing homes classified by the state as "institutions for mental diseases," according to state records.
In recent years, federal health care authorities have repeatedly sanctioned Illinois officials and the nursing home industry here for inappropriately mixing younger, mentally ill people with elderly nursing home patients.
Accompanying a trend of more diverse long-term care options for seniors--including assisted-living and in-home health care--nursing home operators across the state found themselves with numerous empty beds. Many responded by throwing open their doors to younger, mostly mentally ill people who qualify for public aid.
Legislative action
In 1999, Illinois passed legislation intended to stop state agencies from warehousing mentally ill people in nursing homes that were not equipped to handle them.
The following December, a 78-year-old resident at a southern Illinois nursing home was sexually assaulted by a mentally ill parolee who was also a patient there.
Department of Public Health spokeswoman Jena Welliever said there has not been an incident of a parolee attacking an elderly patient since the December 2000 assault in Cahokia. That incident prompted state officials to pay closer attention to parolees entering nursing homes, to try to screen out the ones whose recent histories in prison suggested they might act out violently.
"There has been a little bit more involvement with the agencies working together to ensure that all the individuals who enter nursing homes are getting the best possible care," Welliever said.
But advocates for the elderly worry that crimes may be going unreported.
"It poses an incredible threat, especially for seniors suffering from dementia," said Donna Ginther, a Springfield lobbyist for AARP. "They're the least able to defend themselves. And they are the least able to report incidents when they occur."
Meltzer and Ginther say Illinois officials' unwillingness to create a more appropriate place for parolees who need long-term care unfairly jeopardizes the elderly nursing home population.
Under state law, the Corrections Department is required to help all parolees find a place to live after their release from prison. That extends to placement in a nursing home, if the parolee is in need of nursing care, corrections spokesman Brian Fairchild said.
The Department of Public Health is then responsible for screening the parolees to ensure they need long-term nursing care.
Admissions policies
But it is up the nursing homes to determine whether a parolee is suitable for admission, Fairchild said. Corrections officials assume that parolees would not be accepted by a nursing home that was not prepared to handle them, he said.
"The facility administrators are the people who are responsible under the statute," he said. "Department of Corrections doesn't have anything to do with that."
Corrections officials always inform nursing home administrators about parolees' pasts, Fairchild said.
"We do provide detailed information so that decisions can be informed decisions," Fairchild said. "I'm not saying we don't worry there's a problem. But I can say we're aware of it, and we're doing the best we can to stay on top of it."
Illinois is not alone in placing parolees in nursing homes. Texas prison officials said they routinely do so. The state contracts with the University of Texas Medical Branch to handle the nursing home placements, said Larry Todd, spokesman for the Texas Department of Criminal Justice.
But other states say they would place parolees in a nursing home only as a last resort. Wisconsin officials said they do so rarely. And in Ohio, there are seven parolees whom the state has placed in a single nursing home, state corrections officials said.
"We do it on a very, very rare occasion," said Ohio corrections spokeswoman Andrea Dean. "It has to be verified by a physician that they need to be in a nursing home, and it has to be a last resort, meaning no family member can take them."
Parolees with mental health or medical needs are guided into community social services, rather than nursing homes, she said.
Administrative decisions
In a written statement, Gov. Ryan said the state must trust the nursing homes' administrators to decide whether parolees are appropriate for their facilities.
"We rely on the nursing homes to make honest assessments as to whether or not they are able to handle the individual's needs without compromising the care of others in the facility," Ryan said. "We have watched the situation closely, and there are instances where the facilities have either overestimated their ability to meet the needs of care or have not taken full advantage of the state's screening procedures. It has never been our policy to force any facility to take a patient for whom they cannot give proper care."
Once parolees are admitted, however, it can be difficult for administrators to expel them.
Boulevard Care Center, 3405 S. Michigan Ave., was overruled by the Illinois Department of Public Health in its attempt to remove two convicted sex offenders in their 40s from the nursing home in June 2001. Boulevard officials said they did not know the men had criminal pasts when they were admitted to the home, attorney Meyer Magence said.
Boulevard officials argued that "their criminal records should have been sufficient evidence that they posed a risk to others" at the nursing home, according to the Public Health Department's ruling in the case. But a department hearing officer ruled that the men could stay because they had not done any harm at the home, according to the written decision.
Despite the failed attempt to expel those parolees, Boulevard has welcomed more ex-cons than any other nursing home. Since 1999, the South Side home has taken in 15 parolees, nine of whom were sex offenders. Until recently, Boulevard had the most parolees of any nursing home in Illinois. State records showed six paroled men living at Boulevard, including five convicted of sexual offenses. One of the five was convicted of murder and rape, according to corrections records.
Corrections officials confirmed Friday that within the last two weeks, four parolees were removed from Boulevard at the home's request. Fairchild declined to discuss the reasons for the moves, saying it would violate the confidentiality of the parolees' medical records. But in at least one of the cases, the parolee was moved because Boulevard was deemed an inappropriate placement for the type of care needed, he said.
Geriatric focus
Boulevard administrator Kevin Meals did not return calls Friday. But he said in an earlier interview that the home was geared toward geriatric residents, and that he would not accept people who were not appropriate for such a setting. However, when questioned about parolees listed as Boulevard residents, Meals said he was not aware of them all. He also said the nursing home's policy was not to admit anyone under 50, although state records showed two parolees living there--including one sex offender--in their 40s.
"Actually, I am in the process of removing some people who don't fit the criteria," he said. "I don't have personal knowledge of every person admitted to the facility."
State records show Boulevard is co-owned by Sherman Ray and Eric Rothner. Both have interests in several of the nursing homes that accept parolees. Inmates have been paroled to five of the 12 nursing homes in which Ray has a significant ownership interest. Rothner is partial owner of 17 nursing homes, 10 of which have accepted inmates.
Problem with patients
Ray and Rothner also own Hillcrest Healthcare Center, a Joliet nursing home that housed two mentally ill patients who checked themselves out on a day pass in February 2001 and murdered a man they met in a bar.
Hillcrest was nearly shut down by federal Medicaid administrators, who criticized the home for accepting dangerous mentally ill patients without having plans in place to care for them.
"There is in fact a real problem in Illinois because there is insufficient housing for people of all ages with mental illness," said Ginther. "But the solution is not to put them in with a vulnerable population.
"Are they notifying families who are bringing their children to visit? Or families whose 16-year-old daughter applies for a part-time job at the nursing home?"
Meals and other nursing home administrators said no, they aren't. And the administrator of one Northwest Side nursing home said he saw no reason to treat parolees differently from his elderly residents.
"I don't even keep track. We don't make any distinctions," said Henry Mermelstein, the administrator of Central Nursing Home. But Mermelstein also said he would not hesitate to alert authorities to a violation of parole, as he had to do last month with a parolee who was sent back to the Dixon Correctional Center for reasons Mermelstein would not disclose.
"If we have any problems--even a little bit--out he goes," Mermelstein said of a schizophrenic convicted murderer in his early 40s currently living at the home.
The presence of middle-age or younger sex offenders in nursing homes is especially troubling to Meltzer, who often advises people searching for nursing home care.
"Now, on top of everything else, I have to think about telling people that they might want to take a look at the state's registered sex offender list to see who's living at their nursing home," she said.


Dead On Arrival
 
RICH MILLER
NOVEMBER 22, 2002
 
Every legislative session has its own feel, and its own rhythm. This fall's veto session feels like death - in more ways than one.
One should never predict anything about what could happen in a veto session, but nothing big seems to be moving or percolating this fall.
No secret tax hikes or gaming expansions have been floated yet. No last minute stadium deals are being planned. It's pretty dead out there.
"We don't have enough lame ducks to do anything big," complained one smooth operator last week about the lack of activity. Hugely controversial bills often require the support of legislators who will be out of a job in a few weeks and might be tempted to trade their votes for some financial security. But, evidently, too many incumbents are coming back next year to do anything major this fall.
A friend of mine was able to book a room at the favorite hotel of every connected Statehouse insider, the Renaissance, Tuesday night at 7:30. When the usually booked-solid Ren has rooms on a veto session night, that's a pretty sure sign of legislative inactivity.
Plus, the Republicans are rightly reticent to help Governor-elect Rod Blagojevich out of his no new taxes pledge. Why should they stick their necks out for stuff they usually oppose anyway, like higher taxes and more gambling, for the first Democratic governor in 26 years, who also made a whole bunch of completely unrealistic campaign promises?
Then there's the almost funereal atmosphere of legislative Republicans and those whose livelihoods have depended upon GOP control of the governor's mansion all these years. When veto session ends, so does all significant Republican influence for at least two years, although Governor-elect Blagojevich sent a strong message with his appointment of former Republican governor-turned-mega-lobbyist Jim Thompson to his transition team that bigtime GOP insiders are still welcome at the feeding trough - as long as they bring their checkbooks.
The end of veto session will also mean the end of House Republican Leader Lee Daniels' career as a bigshot. This could also very well be Senate President Pate Philip's last veto session. And, of course, one of the most prolific Republican wheeler-dealers in Illinois history, Governor George Ryan, is taking his final bow this fall.
The newly proposed death penalty reforms round out our little trifecta of doom. This bill will most likely pass, but it has to do with death, so it fits our theme. The proposal, which is backed by key Senate Republicans, would ban the execution of the mentally retarded and allow appellate courts to toss convictions for reasons of "fundamental justice." Governor Ryan seems to be focusing on this legislation to secure his legacy, rather than increasing revenues to keep his pet state programs in place. Going out with something virtuous like death penalty reform is much more likely to get him in the history books than ending his career with one final and gigantic broken campaign promise.
There are a few fun things brewing in Springfield, but you have to look pretty close to see them.
For instance, in what could be the first shot in a four-year battle between House Speaker Michael Madigan and Governor-elect Blagojevich, the House is expected to pass a huge supplemental appropriations bill next week.
The bill essentially restores all the cuts made to the budget last spring. It is strongly backed by AFSCME and several human service groups.
Senate President Pate Philip has told the other legislative leaders and the governor that he is not committed to either killing or passing the bill. And the governor reportedly said in a private budget meeting that he might not veto the bill if it landed on his desk.
If Pate wants to play a bit of hardball, he could pass the bill next month, just before the new General Assembly and the new governor are sworn in. If Governor Ryan takes no action, the bill would still be alive for 30 days. Governor Rod would then have the choice of either signing or vetoing a bill that's literally chock-full of solemn campaign promises to reopen state facilities. If he signs the bill, he can't possibly find the money to pay for it. If he vetoes the bill, he will break a major campaign pledge within a month of taking office.
Sources say G-Rod could probably stop Madigan from running the bill if he picks up the phone and asks. The Speaker decided to hold off on passing the bill last week to give Blago some time to think. But if Blagojevich doesn't call, the Speaker will likely run the thing.
 

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Defeated candidates get state jobs
Gov. Ryan appoints positions to fellow GOPs
 
By DOUG FINKE
STATE CAPITOL BUREAU
23 Nov 2002
State Sen. Laura Kent Donohue and state Rep. Ann Zickus lost their re-election bids this month, but both will get new jobs at higher salaries thanks to a fellow Republican, Gov. George Ryan.
Donahue, of Quincy, was appointed to a post on the Illinois Educational Labor Relations Board. The job pays $79,799, an increase from the $75,158 in salary and stipends she receives as a legislator.
If approved by the Illinois Senate, Donahue will serve a term that starts Jan. 9 and runs to July 1, 2004. Donahue's term as a senator officially ends Jan. 8. She will fill a position on the board that was held by Janis Cellini, sister of Republican power broker Bill Cellini of Springfield.
Zickus, of Palos Hills, was named to a $93,308 a year job as deputy commissioner in the Office of Banks and Real Estate. Zickus currently makes $66,390 as a representative. The term of her new job runs from Jan. 1, 2003, to Jan. 31, 2004.
Zickus and Donahue join a lengthy list of Republican lawmakers who have obtained other state jobs after leaving the General Assembly through retirement or defeat at the polls. Among the others are Rep. Andrea Moore of Libertyville, Rep. Tom Ryder of Jerseyville, Sen. Robert Madigan of Lincoln and Sen. Thomas Walsh of LaGrange Park.
Ryan on Friday also appointed Joseph Hannon of Chicago to a term on the Educational Labor Relations Board at a salary of $79,799. He currently earns $108,912 as interim director of the Department of Commerce and Community Affairs. He will replace Mary Ann Louderback on the board.
Hannon took over DCCA after the former director, Pam McDonough, was named to an $88,641-a-year job on the Illinois Labor Relations Board, Local Panel.
In addition, the governor named Mark Warnsing of Divernon to a $72,950 post on the Prisoner Review Board. Warnsing is Ryan's deputy chief legal counsel at a salary of $89,000 a year. Ryan previously appointed his chief legal counsel, Diane Ford, to a $101,790 job on the Illinois Industrial Commission. She earns $121,680 as chief legal counsel.
While McDonough, Hannon, Ford and Warnsing all will earn less in their new posts, the appointments guarantee them jobs after Ryan leaves office Jan. 13.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Budget deficit now $585 million
New proposals call for more state spending
 
By DOUG FINKE
STATE CAPITOL BUREAU
21 Nov 2001

The current state budget now faces a $585 million deficit, which may force additional cuts, lawmakers were warned Wednesday.
Nevertheless, the Statehouse again was filled Wednesday with proposals to add even more spending, including discussion of an improved pension plan for top state officials.
The General Assembly's Economic and Fiscal Commission told legislators that tax collections continue to lag far behind what was expected when the fiscal 2003 state budget was put together last spring. The commission - which makes financial forecasts for the General Assembly - says it now thinks the state will collect only $415 million more in tax revenue this year, down from the $800 million it estimated last spring.
The problem for legislators is that they put together a budget that assumed $1 billion more in taxes would be collected this fiscal year, which ends June 30, 2003.
"We're going to have to look for additional places to cut," said Sen. Patrick Welch, D-Peru, who co-chairs the commission.
Welch also said Gov.-elect Rod Blagojevich should execute a plan to borrow against Illinois' billions of dollars in future tobacco settlement funds, which would give the state enough cash to minimize additional cuts.
The commission's other co-chair, Rep. Terry Parke, R-Hoffman Estates, said additional budget cuts will have to be examined.
"I think that's realistic, and I think we're going to have to do that," Parke said.
Gov. George Ryan has ordered state agencies to identify $250 million in cuts that can be implemented, if needed, before he leaves office in January.
The commission report also said that the state could face a potential $2 billion budget shortfall for the fiscal year that starts July 1, 2003.
It is forecasting continued anemic tax collections and sharply rising costs for such expenses as state employee health insurance and health care for the poor. Since the state must have a budget that's balanced on paper, lawmakers are faced with raising taxes or making even more extensive spending reductions.
Blagojevich has vowed not to raise taxes to balance the budget. Welch, though, said more revenue could be collected by repealing tax breaks passed previously.
"There's a lot of questions about some of the tax breaks that were given out, (such as) tuition tax credits for rich individuals sending their kids to private schools," Welch said.
The doom-and-gloom budget forecasts haven't diminished talk of ways state government can spend more money.
When Ryan and the four legislative leaders met Tuesday, they discussed a possible pension-improvement plan for state officials. Sources said one of the proposals revived an old idea of moving legislative staffers from the State Employees Retirement System into the much more lucrative General Assembly Retirement System.
Senate President James "Pate" Philip, R-Wood Dale, said Wednesday that the pension bill under discussion "would encompass about everything you can think of."
"It was floated by the administration," said Philip, adding that he didn't think it was a good idea to improve pensions while in the middle of a budget crunch.
Asked if there was agreement to act on a pension bill during the fall veto session, Philip said, "None that I can remember."
Ryan spokesman Ray Serati said pension proposals always come up.
"It came up at the (Tuesday) meeting. There were some things kicked around," Serati said. "There's no bill that we are aware of."
Also Wednesday, home care workers rallied at the Capitol to demand restoration of a 2 percent cost-of-living increase they were promised. The COLA was eliminated as part of the budget cuts implemented last spring.
AARP, a lobbying group representing older citizens, also rallied to restore cuts made in Medicaid funding.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

AFSCME activists rock' the rotunda
in huge show of support for budget bill
 
SNov 19, 2002
AFSCME's "Rock the Rotunda" Rally followed an earlier press conference that detailed prison overcrowding and understaffing, skyrocketing medical assistance and Food Stamp caseloads in the Department of Human Services, and serious problems with the state's ability to care for the severely mentally ill and developmentally disabled.
AFSCME members were in town lobbying for a supplemental appropriation bill that would reopen correctional facilities, mental health centers and residential facilities for the developmentally disabled, while restoring direct care workers' cost-of-living pay increases. The measure would fund a reversal of all layoffs to date and scheduled layoffs in DOC, DHS, DCFS, DOR and other agencies.
Facilities affected so far by Ryan's budget cuts have included IYC Valley View, Sheridan, Zeller Mental Health Center, Lincoln Developmental Center, eight DHS Community Operations offices, the Paris, Greene, and Hanna City Work Camps, four ATCs, and the Alton MHC Civil Unit. The state's remaining correctional facilities are operating at short-staffing levels, too, threatening the safety of employees and inmates alike.
AFSCME's support for House Bill 6306 and Senate Bill 2429 comes even as Gov. Ryan is asking state agencies under his direct control to find another 2 percent to trim from their budgets.
"The worst possible course of action to follow is more layoffs, which only contribute to the economy's downward spiral, and cause more damage to essential state services," Bayer told the cheering crowd. "An estimated 70,000 of your friends and neighbors lost their jobs in the year ending June 30 alone. And with a July-September unemployment rate of 6.4 percent, compared to a national rate of 5.7 percent, things haven't improved: The Illinois jobless rate now ranks fourth in the nation.
"More layoffs are not the answer. Government investment is the time-tested and proven answer and a supplemental appropriation stands as a good, small, government investment," he said.
Joining Bayer and AFSCME Deputy Director Roberta Lynch as speakers at the rally were Harriet Baker from United Cerebral Palsy of Will County, Rick Depratt from Danville Correctional Center, Sheridan Correctional Center's Rob Fanti, and Marion Murphy, a Chicago caseworker with the Department of Human Services.
Elected officials included state Sen.-elect James Meeks of Chicago, Downstate state Sen. Larry Woolard, and state Rep. Frank Mautino.
Bayer testified Monday before a House appropriations committee in support of the bill.
The committee approved the measure by a 16-1 margin, with only state Rep. Carole Pankau, R-Roselle, voting against it. It now goes to a vote of the full House.

General Assembly revisits issues
Budget, death penalty reform on veto session agenda
 
By DOUG FINKE
STATE CAPITOL BUREAU
18 Nov 2002
If state lawmakers returning to Springfield this week for the start of the veto session have a sense of deja vu, they can be forgiven.
When lawmakers were last in Springfield in June, the state was in the middle of a budget crisis, and a plan to reform the death penalty system in Illinois faced an uncertain future in the legislature.
Five months later, the state is in the middle of a budget crisis, and a plan to reform the death penalty system faces an uncertain future in the legislature. Both issues will top the agenda as the six-day veto session gets under way Tuesday.
Lawmakers also will have a chance to override Gov. George Ryan on bills he vetoed or altered, including legislation creating a medical district in Springfield.
Despite the state's continuing financial problems, efforts will be made to restore many of the budget cuts enacted by the General Assembly last spring.
The House Appropriations-Public Safety Committee will hold a hearing today on a bill to restore $153 million of the cuts.
House Bill 6306 would restore money to the Lincoln Developmental Center, the Greene County work camp and three other institutions. The legislation is being pushed by the American Federation of State, County and Municipal Employees Council 31, which represented employees at all of those facilities.
"The union asked me to introduce the bill in an effort to try to keep the issue alive," said Rep. Gary Hannig, D-Mount Olive, the bill's sponsor. "I hope people recognize that closing the facilities and laying off employees was a difficult decision to make."
At the same time, Hannig, the House Democrats' chief budget negotiator, acknowledged it will be difficult to restore the money during the veto session, when bills such as that need a super-majority to pass.
"Some question where we will go after the committee," Hannig said. "All we are trying to do is revisit the issue. I hope it wouldn't be (giving people) a false hope."
AFSCME plans a rally in Springfield on Tuesday to promote passage of the bill. However, the rally will be held against a backdrop of ever-worsening financial news.
Ryan has asked state agencies to identify an additional $250 million worth of potential cuts that can be made to the already austere budget. Ryan said the action was necessary because state revenues are falling below the amounts the state expected to collect when the budget was pieced together last spring.
Moreover, the General Assembly's own financial forecasters are expected to revise their revenue estimates downward when they meet Wednesday. That would indicate the state's budget is in even worse shape than when Ryan ordered agencies to study additional cuts.
Even if the spending bill gets out of the House, it would probably be killed in the Senate. The Republican-controlled Senate took the lead in enacting the budget cuts last spring, making it unlikely senators will vote to reverse the cuts after an election. Republicans will control the chamber until newly elected lawmakers are sworn in Jan. 8. Democrats won a majority in the Senate in the November elections.
Lawmakers also will have a chance to vote on death penalty reforms sought by Ryan. A special committee Ryan formed to evaluate the death penalty system recommended more than 80 changes it believes could reduce the chances an innocent person could be put to death in Illinois. Ryan imposed a moratorium on executions after 13 death row inmates were exonerated of the crimes for which they faced the death penalty.
The report was delivered to lawmakers late in the spring session, giving them an excuse not to act on the recommendations before a crucial election. Over the summer, though, Ryan used his amendatory veto powers to add many of the reforms to House Bill 2085, an anti-terrorism bill. If lawmakers want the anti-terrorism bill to become law, they will have to vote on the death penalty reforms Ryan added.
Sen. Kirk Dillard, R-Hinsdale, introduced Ryan's reform measures in the Senate last spring. He thinks Ryan personally will lobby legislators to adopt the reforms during the veto session.
"I think he will convey to the members that this is very personal to him, that it's time to move and it's the right thing to do," Dillard said. "He still has a lot of friends in the General Assembly who will accede to the personal request of the governor. I don't think there's anybody who questions the governor is correct that the system is broken and needs to be fixed."
Passing the death penalty reforms will be a priority of Ryan's during the veto session, said spokesman Dennis Culloton.
"He certainly would like to see the legislature tackle this issue," Culloton said. "The system is in the same broken state that it was when the commission made its recommendations."
Ryan vetoed or rewrote about two dozen of the bills sent to him last spring. During the veto session, legislators will have a chance to override Ryan's actions.
Sen. Larry Bomke, R-Springfield, said he will try to override Ryan's rewrite of a bill creating a medical district in Springfield. Originally, Senate Bill 2117 created a 16-member board to oversee the district. Ryan, though, said a board that large is unwieldy and changed the bill to make it a seven-member board. The change also meant that some of the interest groups guaranteed a seat on the 16-member board were no longer guaranteed representation.
Bomke said he met with Springfield Mayor Karen Hasara and neighborhood groups affected by the district and has decided to try to restore the 16-member board.
"From the beginning, both Karen and I made a commitment to the neighborhood groups that we would not move a bill unless the neighborhood groups agreed to it," Bomke said. The interested parties all along had been for the larger board."
The tactic carries some risk. If the General Assembly fails to override Ryan, the bill will die, leaving supporters of the district to try again next spring.
Although the veto session is supposed to focus on bills vetoed by the governor, new legislation also can be considered. Observers think it is likely the General Assembly could pass legislation sweetening pensions - particularly for lawmakers who will be leaving office in January. The gambling industry is expected to lobby lawmakers to repeal a gambling tax hike passed last spring as well.
Doug Finke can be reached at _788-1527 or doug.finke@sj-r.com.
 

State unemployment fund being depleted
Illinois may have to borrow money to cover benefits
 
By TIM LANDIS
BUSINESS EDITOR
17 Nov 2002
A projected $1.3 billion deficit in Illinois' unemployment insurance trust fund this year - the largest in more than a decade - will deplete the fund by next spring and force state borrowing to cover benefits for laid-off workers.
While there are no immediate plans to raise payroll taxes or to limit jobless benefits, a report issued late last month to an advisory panel of the Illinois Department of Employment Security warned that deficits could continue through at least 2006.
The borrowed money also would have to be paid back with interest to the federal government at a time when the state already faces a budget shortfall that, by some estimates, could hit $2 billion by next summer.
"Trust fund insolvency does not threaten benefits. But we would actually exhaust our reserves (next year) and be in a situation where we'll need to borrow," Jon Gingrich, budget director for the Department of Employment Security in Chicago, said last week.
Only one other state, Texas, is faced with the prospect of borrowing to pay unemployment benefits, according to the National Conference of State Legislatures.
Recession and rising unemployment began to drain the fund's surplus early last year with benefits paid to workers exceeding revenues from employer taxes by $860 million in 2001.
As a result, what was a record $2 billion surplus in 2000 is expected to drop to $500 million at the end of this year and to fall $214 million into the red next spring. Projections are that the fund will finish 2003 with a deficit of at least $349 million.
The deficit is projected to peak at more than $500 million in 2004 before gradually improving in 2005.
"It's good to save up when the times are good, so it's there to be draw down when times are bad. The system is set up to build up a balance," Gingrich said. "The unemployment rate goes up, and the trust fund goes down. To some extent, we're seeing a repeat of a historical pattern."
The latest economic downtown put unusual pressure on the system through a combination of unemployment rates that have remained above 5 percent since February 2001 and steadily rising unemployment checks.
IDES reported last week that state unemployment jumped to 6.7 percent in October from 6.3 percent in September.
Average weekly benefits, expected to top $250 this year, also are adjusted based on weekly wages, while unemployment insurance taxes paid by employers are not. Higher unemployment also means employers are collecting taxes on fewer workers, while paying out increasing benefits.
"Over a one- or two-year period, it's not a big deal, but over the long haul, you cannot make up the difference. Whatever your tax level and whatever your benefit levels, they need to be in balance, and they are not," Gingrich said.
Employers pay into the state fund - which is administered by the federal government - based on a complex tax-rate formula that is computed from their layoff history. The more frequent the job cuts, the higher the rate.
The tax applies only to the first $9,000 of an employee's wages. The Illinois rate also is capped at 6.8 percent for 2002, but is expected to rise to 7.2 percent in 2003.
Companies also pay into a separate fund under the Federal Unemployment Tax Act - money that can then be borrowed by states if the regular trust fund is depleted. But that money must be paid back with interest.
Neither can interest payments be made from trust-fund receipts, meaning the payments would have to come from general revenue or some other state source.
"I appreciate the fact that we have people on unemployment, and they are having a difficult time making it. But it's incumbent on business and labor to sit down with open minds to see how in the short term we can stabilize revenues and potentially limit benefits," said Greg Baise, president and CEO of the Illinois Manufacturers' Association, and a member of the state unemployment-insurance advisory board.
"We want to avoid having all taxpayers paying for the shortfall, which would be the case if the interest payments come out of general revenue funds," he said.
The Department of Employment Security estimates interest payments would total $3.6 million next year, but would rise to $28 million in 2004 and would peak at $34 million in 2005, barring changes to the system or unexpected improvement in the economy.
"Because of the precipitous nature of this drop in the trust fund, I expect the legislature and the new administration will require business and labor to begin discussions of this as soon as possible," Baise said.
It was as a result of a similar situation following the recession of the early 1980s - the last time Illinois was forced to borrow - that then-Gov. James R. Thompson, a Republican, and leaders in the Democratic-controlled General Assembly set up an "agreed bill" process to handle changes in unemployment insurance.
Essentially, the two sides agreed to negotiate changes to the system before submitting legislation to the General Assembly.
Baise said business would fight any effort to raise overall payroll taxes, though he acknowledged the political dynamics changed after Democrats won control of the governor's office and the General Assembly in this month's elections.
"We are fearful in the business community that, potentially, the labor community could force their will through the General Assembly," he said.
But the field director for the Illinois AFL-CIO pointed out it was then-Gov. Jim Edgar, a Republican, and a Republican-controlled legislature in 1995 that cut maximum unemployment insurance tax rates levied on employers.
Erica Hade also said it has been roughly two decades since the $9,000 limit on taxable wages has been revised.
"From our perspective, it was the tax cut (in 1995) that put us in this position. Workers got nothing, and business got a tax break," Hade said. "They took out the money in good times anyway, which we believe made this bankruptcy come quicker."
Hade said the labor group has not yet decided whether to seek meetings through the agreed bill process. But, regardless of which party controls the governor's office and the legislature, she said it is clear new revenue is needed.
"We're concerned about the system. We don't want to penalize business for what happened in the past, we just want a fair process. But from our point of view, they (business) have more responsibility here," she said.
Justin Marks of the National Conference of State Legislatures said an infusion of federal dollars early this year helped most states bring unemployment insurance funds back into balance, at least temporarily. But he said slow economic recovery could force other states to borrow.
"A lot of them were at that point, but they've been able to put it off a little longer," Marks said.
There are "speed bumps" written into the Illinois law that would require a one-year increase in employer taxes and a one-year cut in unemployment benefits in 2004 if the current fund balance does not improve.
But Gingrich said, based on current forecasts, the deficits would only be reduced, not eliminated if the safeguards are triggered.
Gingrich pointed out that trust-fund projections are only as good as the economic forecasts used to estimate tax revenue, unemployment levels and benefit payments. But barring an unexpectedly strong rebound in the Illinois economy, he said, the trust fund will become insolvent early next year.
The agency outlined several possibilities if the fund continues to run deficits - an employer tax surcharge, benefit limits, federal tax penalties and interest payments - but did not offer specific remedies.
"Suffice it to say, we've advised the folks who do make the policy decisions of the situation. It's an extremely high on our priority list to get attention on the system," Gingrich said.
Tim Landis can be reached at 788-1536 or tim.landis@sj-r.com.
 

More cuts
Governor instructs agencies to slash $250 million more
 
By DOUG FINKE
STATE CAPITOL BUREAU
14 Nov 2002
As state government continues to drown in a sea of red ink, Gov. George Ryan is asking agencies to identify another $250 million to slash on top of budget cuts last spring.
In a memo to state agencies and boards and commissions under the governor's control, Ryan's budget staff asked each office to plan to cut 2 percent of their general revenue spending. General revenues come primarily from income and sales taxes.
Education budgets are not affected, because they are outside the governor's control.
The budget-cutting options are supposed to be submitted to the Bureau of the Budget by Monday, a day before the General Assembly returns to Springfield for the fall veto session. Budget office spokeswoman Julie Dutton said that does not necessarily mean some or all of the cuts will be imposed.
"This is information gathering," Dutton said Wednesday. "We want to get our information in, assess it and make a determination."
Ryan, who will be replaced as governor by Rod Blagojevich in January, decided to ask for the proposed cuts because state revenues continue to lag behind projections. In the first three months of the state's budget year, revenues were $81 million lower than expected. Because of that, the Bureau of the Budget changed its estimates for the year and now believes the state will collect $200 million less than originally thought.
The problem is that the budget passed last spring was based on projections at the time.
If Ryan decides to implement the cuts, he can do it without legislative approval, Dutton said. It is similar to the approach Ryan took last year when he ordered agencies to put 2 percent of their budgets in reserve after the Sept. 11 terrorist attack. The state subsequently was forced to make even larger cuts to balance the budget.
Some agencies such as the departments of Human Services and Corrections sustained heavy cuts last spring that resulted in facility closures and hundreds of layoffs. Spokesmen for those agencies were vague about how additional spending reductions could be made.
"Right now, we are looking at what our options would be," said DHS spokesman Reginald Marsh. "It could be across-the-board (cuts), it could be facilities (closing). We can't say at this point."
"We have our best people taking a look at it," said Corrections spokesman Sergio Molina, adding that the agency is not considering an inmate early-release option "at this point."
Two prisons, along with several work camps and boot camps, were closed this year, costing more than 600 jobs. Corrections wants to cut an additional 900 positions, but the layoffs are on hold pending the outcome of two lawsuits filed by the American Federation of State, County and Municipal Employees Council 31.
Council 31 executive director Henry Bayer said Ryan could avoid any further cuts by having the state borrow against future tobacco settlement proceeds. The General Assembly last spring granted the governor authority to borrow the money, but Ryan has expressed doubts about the wisdom of borrowing to pay day-to-day expenses.
"Clearly, he should use the authority he has because they've already made more cuts than the state can endure," Bayer said.
Even if the governor doesn't want to borrow money, he shouldn't make further cuts, Bayer added.
"He's only going to be here for 60 more days," Bayer said. "If he's not going to fix the problem, he shouldn't make it worse."
Ryan has said he will not push for any additional tax hikes during the fall session. Lawmakers increased tobacco and gambling taxes last spring.
At the same time, he has said he doesn't see how to avoid tax hikes in the future if lawmakers don't want to make steep spending cuts. Blagojevich has pledged not to raise income or sales taxes to balance the budget.
Doug Finke can be reached at 788-1527 or doug.finke@j-r.com.
 

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Ex-governor to help Blagojevich transition
 
By John McCormick
Tribune staff reporter
November 11, 2002, 3:17 PM CST
Rod Blagojevich today announced his gubernatorial transition team headed by senior campaign advisor David Wilhelm, with former Republican Gov. James R. Thompson in a key advisory role.
Blagojevich's choice of Thompson as co-chairman, with Illinois Federation of Labor President Margaret Blackshere, of a 26-member transition advisory board provides a measure of bipartisanship as the governor-elect prepares to take office in January.
The board will advise Blagojevich's 14-member transition team led by Wilhelm, former head of the Democratic National Committee, it was announced at an afternoon news conference in downtown Chicago.
Asked why he had agreed to work with the incoming Democratic governor, Thompson said, "When the governor of your state asks you to help, the answer is yes, without regard to partisanship or politics."
Thompson's election in 1976 marked the beginning of the GOP's 26-year control of the governor's office {ndash} a string finally broken by Blagojevich's victory last week. The former governor noted the budget situation Blagojevich faces "probably is the toughest budget problem any Illinois governor has ever to faced."
Blagojevich agreed, saying, "As we all know, we're approaching a very difficult period in state government." As a gesture toward helping the state in its time of fiscal austerity, he said he would not accept $250,000 in state transition funds previously budgeted and would pay the cost out of his campaign funds.
Wilhelm will serve as director of the transition team. His deputy director will be state Sen. Carol Ronen (D-Chicago).
The advisory board's vice chairs will be former Illinois attorney general and gubernatorial candidate Roland Burris, U.S. Rep. Luis Gutierrez (D-Ill.), state Rep. Jay Hoffman (D-Collinsville) and Mary Lee Leahy, a Springfield attorney.

Budget woes face Blagojevich
 
November 11, 2002
BY DAVID ROEDER BUSINESS REPORTER 
 
 
 
 

Congratulations, Mr. Blagojevich. After you've counted your bodyguards and admired the artwork in the governor's mansion, you'll want to concentrate on a rip-roaring budgetary crisis.
It got scant attention during the campaign, but the state's fiscal health is dire. How dire invites partisan conjecture backed by convenient assumptions, but this much is known:
Gov. Ryan's budget office has warned of a gap of more than $2 billion for fiscal 2004, which starts in July, and a $250 million shortfall for the current one, which already has seen mid-year trimming and tax increases.
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And a non-partisan, high-level group has given the governor-elect a report saying the gap is $2.6 billion for fiscal '04 and $750 million for the present year.
"It is a big mess, and it is much more serious than people think right now,'' said Dave Schulz, director of the Infrastructure Technology Institute at Northwestern University, a former Chicago budget chief and a member of the panel that submitted its report to Blagojevich. The group worked with Chicago Metropolis 2020, a coalition of civic and business leaders.
What's the problem? It's as if the state were a laborer whose hours were cut just as his health-insurance premiums skyrocketed.
Medicaid and health-care costs are rising at double-digit annual percentages. Sharon Gist Gilliam, another ex-budget chief for the city who served on the panel, said the trend hurt the state in two ways: Outlays for Medicaid reimbursements soared just as the state confronted higher costs for its own workers' health coverage.
On the revenue side, state coffers have been drained by a lengthy quasi-recession. Describe the economy as you will, but in the last fiscal year, it reduced revenues by $700 million, the first year-to-year period in which revenues declined since 1955.
Income and sales taxes are the biggest revenue sources for ongoing state operations, and both are susceptible to slowdowns in the economy.
As a case in point, the Illinois Economic and Fiscal Commission, a legislative agency, said October's revenue was off by $71 million, or 5 percent, from the same month last year. The commission warned that just to reach budgetary targets, key revenue sources will have to show a year-to-year increase of from 6 percent to more than 10 percent between now and July.
Schulz argued that the situation only gets worse. The state has offered employees an early-retirement incentive, and the budget office estimates 7,300 will take it by yearend. Other experts said the total could escalate to 10,000, some 12 percent of the state's work force, causing disruptions in critical services.
"I'm a transportation-oriented guy, and I know that some offices Downstate will lose all their senior road project managers,'' Schulz said.
Some argue that the state's problems are overstated in the context of a $52.5 billion budget. Gilliam contended Illinois is still faring better than other states, especially California.
But the Illinois shortfall is concentrated on the state's $22.3 billion general fund, which contains the expenses for day-to-day services. Other funds have specialized purposes, such as bond payments or road projects.
"So the problem is really more like a 10 percent hole in the budget,'' Schulz said.
Candidate Blagojevich ruled out increases in the personal income or sales taxes. To cobble together his seven-percentage-point victory margin over Republican Jim Ryan last Tuesday, Blagojevich promised about $800 million in new spending.
But post-campaign reality offers a distasteful menu of program cuts, perhaps seasoned with higher taxes on businesses. Springfield insiders already are speculating on the chances of higher "sin'' taxes on cigarettes and liquor, a stopgap that legislators used last spring.
Douglas Whitley, president of the Illinois Chamber of Commerce, said Blagojevich will be faced with a "brain drain'' in state government amid the retirements and the partisan changeover. "The Democrats face an exceptionally steep learning curve,'' he said.
They'll have to be quick studies. Blagojevich will be inaugurated in mid-January and will have to propose his first budget to the General Assembly about a month later.

It's transition time and big changes could be in the air
 
By DANA HEUPEL
STATEHOUSE EDITOR
11 Nov 2002
Welcome to the state capital, Chicago Democrats.
Of course, I mean Gov.-elect Rod Blagojevich, Lt. Gov.-elect Pat Quinn, Attorney General-elect Lisa Madigan, re-elected Secretary of State Jesse White, re-elected Comptroller Dan Hynes, House Speaker Michael Madigan and presumed soon-to-be-elected Senate President Emil Jones.
And Mayor Richie Daley and First Father-In-Law Ald. Dick Mell and a whole roster of players to be named later.
I know most of you have been in Springfield before in various capacities, but things have changed over the last several days.
First off, you can't buy a donkey lapel pin anywhere in town. Elephant ones, though, are readily available and marked down. Democratic yard signs have sprouted all over, except in front of those homes that sport newly erected for-sale placards.
And around the Capitol and nearby state office buildings, longtime state employees - especially the well-dressed ones - can be heard softly practicing the mantra: "Da Mare is over dere in Chi-caw-go."
Ah, yes, it's transition time, and paranoia is in the air.
Can't-sleep-for-worrying Scenario No. 1: You're going to move state government up to the city by the lake - if not physically, then symbolically.
All the good jobs here are going to disappear. Youse elected guys are never going to be around. You'll be absentee landlords to vacant limestone ruins.
No computer contracts. No consultant work. Nobody home except a secretary here and there to answer the phones when those few downstate Democrats call.
The legislature, when it does meet here, will deal mostly with toll highways and O'Hare expansion and Rosemont casinos and more funding for Chicago public schools.
No Christmas parties or trick-or-treating at the Executive Mansion. Nobody for reporters to talk to except for disconnected voices on phones at the Thompson Center.
Nobody to gossip about. Nobody important to bump into at the Jewel-Osco.
Gov.-elect Blagojevich promises this nightmare won't happen. Then again, he promises a lot of things. That doesn't necessarily calm the transition turmoil.
Can't-sleep Scenario No. 2: You're going to bring all your cronies down here and take all the good jobs.
Springfield becomes Chi-caw-go Sout'. Every Statehouse office holds some big-city ward heeler's brother-in-law in a Blackhawks jacket.
Three-flats sprout up everywhere. Chicago-style hot dogs and pop become the lunch of choice. You can't find a horseshoe and a sody anywhere.
Nor can you buy a baseball glove in the sporting goods stores - 16-inch-softball leagues take over the diamonds at the city parks.
Terrible miscommunications occur when state Rep. Gary Forby of Benton questions a transplanted assistant agency director at a legislative committee hearing. Each thinks the other is speaking a different language.
There could be an upside to this second scenario, though. A Taste of Chicago - even if by-invitation-only - might return downtown, and the House of Blues tent could reappear at the Illinois State Fair.
Why ya so worried, you ask? We know what you think about us down here in the capital city. We've heard the Springpatch references.
And over the past couple of months, we've endured your endless TV ads promising, promising to "clean up Springfield."
Well, you nearly swept the statewide elections, and now you're going to be in charge. Of the House and the Senate. Of every statewide elected office except one. (And even re-elected Republican state Treasurer Judy Baar Topinka comes from da burbs over dere in Riverside, and her flamboyant public persona seems more like that of a free-spirited Democrat.)
You inherit a state budget in shambles. Corruption investigations continue. Voters' faith in the integrity of state officials is lower than the dust on a downstate coal miner's boots.
And, quite frankly, your party's history of ethical hygiene in the Windy City doesn't inspire much hope.
So here's your broom, you newly elected Chicago Democrats. Have at it.
And good luck. For the next four years, the heat's on you.
Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.

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AFSCME members help propel Blagojevich
to victory and Pate' Phillip to defeat
 
November 6, 2002
In statewide races, AFSCME endorsees captured five of the six constitutional offices. Council 31 also played a pivotal role in victorious state Senate races that will end Republican James "Pate" Philip's rule as Senate president in January. AFSCME members participated heavily in the campaign of Susan Garrett, who toppled District 29 incumbent and Philip confidant state Sen. Kathleen Parker. And in District 47, AFSCME was credited with playing a key role in John Sullivan's upset victory over incumbent state Sen. Laura Kent Donahue, another strong Philip ally.
AFSCME members were also the key to victory for the Rev. James Meeks, who unseated long-time District 15 state Sen. Bill Shaw. In his role as mayor of Dolton, Shaw had tried to run roughshod over the rights of AFSCME members who work for the village.
By virtue of the new Democratic majority when the General Assembly organizes in January, current Minority Leader Emil Jones of Chicago is expected to become president of the Senate.
Union members were also active in state House races all across Illinois that helped expand the Democratic majority in the lower chamber.
AFSCME-backed U.S. Sen. Dick Durbin soared to victory, as did all but one of the union's endorsed congressional candidates. In a hard-fought contest between two incumbents in the new 19th Congressional District, David Phelps lost to John Shimkus.
"We face a long, hard road after four years of George Ryan," said AFSCME Executive Director Henry Bayer. "Restoring state services and the jobs they represent is not going to be easy in this economic climate. But we intend to work closely with the new administration to find solutions to Illinois' revenue problems, and expect to participate fully in the decision-making process as budget priorities are realigned."
 

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Blagojevich wins
First Democrat elected Illinois governor in 30 years
 
BY MIKE RAMSEY
COPLEY NEWS SERVICE
6 Nov 2002

CHICAGO - Democrat Rod Blagojevich sailed to victory in the race for Illinois governor Tuesday.
With 65 percent of the precincts counted from across the state, Blagojevich, a Chicago congressman, had 57 percent of the ballots cast. Republican Jim Ryan, a two-term attorney general, trailed with 40 percent of the votes.
The 45-year-old Blagojevich, a virtual unknown a year ago, had been solidly ahead in most public-opinion polls conducted since he and Ryan cleared competitive primaries in March. During the primary and general elections, Blagojevich raised an estimated $24.5 million in campaign cash - well ahead of his Republican opponent's estimated take of $13.3 million.
Blagojevich becomes the first Democrat in 30 years to capture the governor's mansion.
"It really shows the power of a good organization, a lot of money and a really smart campaign," Kent Redfield, a political scientist at University of Illinois-Springfield, said as early returns showed Blagojevich well ahead. "They stuck to their themes and went out and did all of the necessary things - the air war and the ground war."
Ryan, 56, of Elmhurst, was hampered by scandals surrounding his party, including the federal licenses-for-bribes case that hounded Republican Gov. George Ryan, no relation, and owner of Grab-a-Java drive-through coffee shop in the capital city, who described himself as an independent who is "a bit cynical," chose Blagojevich because he is "not Mr. Ryan."
Jim Ryan, Lazare said, "had a golden opportunity for many years to clean out the secretary of state mess, and he just sat there and did nothing, and I'm just sick and tired of this corruption. This is the most corrupt state north of the Mason/Dixon line."
That sounds a lot like the argument Blagojevich made when he said, over and over and over again, that Jim Ryan "didn't lift a finger" to fight the corruption that grew in the secretary of state's office under George Ryan (who, of course, has been charged with no wrongdoing).
So what if Jim Ryan repeatedly said the feds were investigating, and he didn't want to step on their toes? And so what if he got others in law enforcement to back up his view.
So what, as Ryan argued, if the Democratic state ticket was all from Chicago? It's time for a change, and change there will be.
Blagojevich was little known outside his Chicago congressional district two years ago. But he made all the right moves. He got going early, got union support, paid attention to the whole state in the primary, and started collecting lots of money last year, said Chris Mooney, director of the Institute for Legislative Studies at the University of Illinois at Springfield.
He also got lucky, Mooney said, when former Commerce Secretary Bill Daley and U.S. Sen. Dick Durbin, D-Ill., both decided not to run for governor. And his two Democratic primary opponents, Roland Burris and Paul Vallas, took parts of the Chicago-area vote and let Blagojevich win with a big push downstate.
And, said Mooney, Jim Ryan started out with two strikes against him - the biggest being the George Ryan scandals.
"Jim Ryan had a harmonic convergence of problems before he ever filed the papers to run," Mooney said. The fact that his last name is the same as that of the governor, Mooney said, was "really icing on the cake."
The mere number of years Republicans have been in control made the "time-for-a-change argument" more potent, Mooney added.
Durbin also said Blagojevich's aggressive primary "really was extraordinary in that it focused on downstate. Who would have guessed that a Chicagoan from that background would win the race downstate?"
Blagojevich's father-in-law is a Chicago alderman and ward boss. But Jim Ryan, the results showed, couldn't parlay that into a winning issue.
Durbin added that the grueling primary race that Jim Ryan had to win took its toll. Millions of dollars were spent as Lt. Gov. Corinne Wood and state Sen. Patrick O'Malley bashed Jim Ryan on some of the same themes later used by Blagojevich, including the botched prosecution of Rolando Cruz.
"We took a poll right after the primary where he won, and found his negatives to be higher than his positives," Durbin said of Jim Ryan. "They had taken a toll on him."
Ryan had joked about that trend on Monday, as he started a state fly-around and really thought he had a chance to make it a fight on Tuesday.
He joked that Edgar has higher popularity numbers than Jim Ryan and Blagojevich put together.
"I used to be popular like that," Ryan said. "See what happens when you spend $23 million?"
And something else happened this time, as Blagojevich raised at least a million more than that amount. He got elected governor.
Republicans argued during the campaign that Blagojevich seemed to be prematurely measuring the Executive Mansion windows for new curtains.
Well, it's time for him to get the tape measure - and for Springfield to welcome back a former state representative and current congressman as the state's new leader.
As he makes his way to Springfield, Blagojevich, along with Attorney General-elect Lisa Madigan, could begin a change in the local political landscape.
Sangamon County Democratic chairman Tim Timoney said 750 get-out-the-vote volunteers Tuesday helped Springfield send the message that "we are sick and tired of 26 years of Republican rule." Yet Republicans won most contested Sangamon County races Tuesday and gave an easy majority to Jim Ryan in the governor's race.
Timoney said the GOP has had more than two decades to solidify its Springfield base.
"Well, that base is about ready to evaporate for the Republican Party. The tide's turning to the Democratic Party."
Now, that would be change.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Democrat Sullivan unseats Sen. Donahue

By JAYETTE BOLINSKI and KRISTY HESSMAN
STAFF WRITERS
6 Nov 2002

Democrat John Sullivan of Rushville unseated 20-year state Sen. Laura Kent Donahue, R-Quincy, in west-central Illinois' 47th District Tuesday.

Tuesday was the first time in 10 years that Donahue had faced an opponent.

Sullivan, a livestock auctioneer, said he thought Donahue wasn't working as hard in the Senate as he would have liked.

Totals from all counties except Brown early today showed Sullivan leading Donahue by 1,922 votes, 32,316 to 30,394.

The district includes all or parts of Adams, Brown, Cass, Fulton, Hancock, Henderson, Mason McDonough, Schuyler, Scott and Warren counties.

Sullivan said his campaign was a grass-roots effort in which he literally knocked on thousands of doors to get his name out to voters.

His past experience includes working for Meals on Wheels, Humanitarian Effort for Local People and a parent-teacher organization.

During Donahue's tenure in the Senate, she helped pass laws that provide a toll-free number for seniors to reach information about public and private discount programs in their area.

Sullivan said cheaper prescription drugs for seniors and education funding are key issues in his district.

"I want to be hard-working, honest and treat people with respect," he said before the election.

97th House District

State Rep. Jim Watson, R-Jacksonville, defeated Steve Pohlman of Jerseyville in nearly complete election returns from the 97th House District.

With 92 percent of the precincts counted, Watson had 61 percent of the vote to Pohlman's 39 percent.

"We're happy. I realize that it was a team effort. I had a lot of good people in all the counties that helped," said Watson, who has served in the House since December, when he was appointed to replace Tom Ryder, R-Jerseyville.

Ryder resigned to take a position with the Illinois Community College Board.

Watson, 37, has said his priorities in the House would be the state budget and education.

"Everything stems from the budget. It is the starting point for everything, so that is the key. If we want to get the Greene County boot camp open, we have to figure out a way to work it into this budget," he said.

Pohlman, 40, was making his first run at state office. Watson commended Pohlman for running "a good, clean race."

"This is one of the few races that did not get ugly. I think that's a good sign for this entire district," Watson said. "I certainly want to extend a hand and hope that, should these numbers hold, that I would like to work with him as much as possible."

The 97th District includes all or parts of Jersey, Calhoun, Greene, Morgan, Pike, Macoupin and Madison counties.

94th House District

Incumbent state Rep. Rich Myers, R-Colchester, defeated Democratic candidate Jon Mummert in the new 94th House District.

This is the second time the two candidates have run against each other and the second time Myers came out ahead. In the 2000 election, Mummert lost by 6,000 votes.

This time, the farmer and carpenter from Browning was able to cut the margin in half, trailing by a little more than 3,000 votes. Final, unofficial tallies showed Myers winning by 20,252 votes to Mummert's 17,004.

Mummert said he decided to run again because he believed Myers wasn't addressing issues like education and workers' rights.

Myers, also a former farmer, has been in the House for eight years.

He said his biggest accomplishment during that time was securing $4 million in planning money for a performing arts center for Western Illinois University, Myers' alma mater.

Myers also has supported expansion of the state's circuit-breaker program, which gives property tax breaks and price breaks on certain prescription drugs to low-income seniors and others.

Both candidates said they see shrinking education funding as one of the biggest concerns in their district.

44th Senate District

Bill Brady, the incumbent Republican state senator who proposes phasing out the State Board of Education, was winning his bid for the 44th District seat, according to early election results.

With 69 percent of the precincts counted, Brady had 62 percent of the votes.

Brady, 41, was finishing the term of retiring Sen. John Maitland. A member of the Illinois House from 1993 to 2000, Brady defeated former Democratic state Rep. Gerald Bradley, 75. Both are from Bloomington.

Brady said his campaign was based on grass-roots efforts and traditional values.

"The track record I ran on -- traditional Illinois values - I think resonates well with the voters," he said. "I will continue to fight for what they believe in."

Brady proposes phasing out the State Board of Education and replacing it with a Cabinet-level director of education who would be appointed by and report to the governor. He said Attorney General Jim Ryan, who lost his bid for governor Tuesday night, had indicated he would support such a plan.

"I haven't discussed it with Rod Blagojevich. It is going to take Democratic support. I still think it's the right thing to do," Brady said.

He also has said that if elected he will propose a resolution requiring a super-majority vote for any project needing state money over a "reasonable amount."

The 44th Senate District includes eastern Sangamon County, all of DeWitt County and parts of Tazewell, McLean, Logan, Macon and Christian counties.

Jayette Bolinski and Kristy Hessman can be reached at 788-1530 or jayette.bolinski@sj-r.com and kristy.hessman@sj-r.com.

 

Madigan beats Birkett
Topinka the only Republican to win election to statewide office
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
6 NOV 2002

The bitter battle for Illinois attorney general finally drew to a close Tuesday night, with unofficial election results showing that state Sen. Lisa Madigan will become the first woman to serve as the state's chief legal officer.
Republican challenger Joe Birkett delivered his televised concession speech about 10:50 p.m., saying he had called Madigan and told her, "You're a prosecutor now."
In her victory speech, Madigan, D-Chicago, said her election means "change is on the way" for retirees, senior citizens and Illinois families. She said her office will fight against discrimination, corrupt corporations and dishonest public officials.
Madigan also congratulated Birkett on "a hard-fought campaign," telling his supporters: "You can count on me to serve all the people of Illinois."
With votes counted in 97 percent of Illinois' precincts, Madigan was leading Birkett 50 percent to 47 percent. Libertarian candidate Gary Shilts of Montgomery had 3 percent.
In other lower-ballot races for statewide office, the Democratic incumbents for secretary of state and comptroller breezed to victory, while the GOP incumbent for treasurer managed to hang on despite a tough challenge. Treasurer Judy Baar Topinka was the only statewide Republican candidate to win Tuesday night.
That position will offer opportunities, as well as challenges, said Topinka. Republicans will have to get together soon to figure out their next move, she said.
"It maybe gets a little new blood into the system," Topinka added. "In every lemon, there is lemonade."
The high-profile, contentious race for attorney general drew attention largely because of someone whose name wasn't even on the statewide ballot: House Speaker Michael Madigan, Lisa Madigan's adoptive father.
For months, Birkett and Madigan spent much of their time on the campaign trail tossing barbs at one another.
Birkett targeted Madigan's lack of experience as a prosecutor and accused her powerful father of strong-arm tactics aimed at getting his daughter elected. Lisa Madigan claimed Birkett bore some responsibility for the prosecution of Rolando Cruz, a former death row inmate who eventually was cleared of the 1983 murder of 10-year-old Jeanine Nicarico.
And each candidate responded that the other side's criticism was unfair.
Madigan said most of the attorney general's duties concern civil law, rather than criminal law, and that she is independent of her father.
Birkett said he had spent less than a year as lead prosecutor on Cruz's third trial in 1995, and he said he is the person who ordered DNA tests that helped lead to Cruz's exoneration.
When not attacking one another, Madigan and Birkett focused on their widely dissimilar visions of how they would run the attorney general's office.
Birkett said he would expand the criminal-law duties, and Madigan said she would focus on social and consumer issues, such as protecting the elderly from scams.
They also differed on the issue of abortion. Madigan supports a woman's access to abortion. Birkett opposes abortion except in the cases of rape, incest and to save the life of the mother, but he said he would uphold existing laws allowing abortion.
Both candidates supported the death penalty, but they disagreed on whether Illinois should end the existing moratorium on executions. Birkett said Illinois should resume executions because the Illinois Supreme Court already has enacted some reforms to the state's capital punishment system.
Madigan and Birkett generally agreed on some issues. For example, both offered plans to combat domestic violence and deal with corruption in government.
The 36-year-old Madigan was elected state senator in 1998. She was a civil attorney for Sachnoff & Weaver, a Chicago firm, from 1994 to 1998. A graduate of Georgetown University, Madigan earned a law degree from Loyola University.
Birkett, 47, of Wheaton, has been DuPage County state's attorney since 1996 and has been a prosecutor for 21 years.
The attorney general oversees a staff of almost 800 and a yearly budget of $70 million.
In another statewide race, incumbent Secretary of State Jesse White, a Chicago Democrat, declared victory over GOP challenger Kris O'Rourke Cohn of Rockford. He was leading, 69-29 percent with 91 percent of precincts counted. Libertarian candidate Matt Beauchamp had 2 percent.
White's win makes him the fourth consecutive Illinois secretary of state to be elected to two terms. The others were Democrat Alan Dixon, who later became a U.S. senator, and Republicans Jim Edgar and George Ryan - both of whom used the secretary of state's office as a springboard to the governor's office. White has said he will not seek that office.
The secretary of state's office deals with a variety of responsibilities, including driver's licenses, license plates and the state library.
Incumbent Comptroller Dan Hynes, 34, of Chicago declared victory over Republican challenger Thomas Jefferson Ramsdell, a 35-year-old Wilmette resident. With 91 percent of precincts counted, Hynes led Ramsdell 64-32 percent. Libertarian candidate Julie Fox had 4 percent.
Hynes attributed his win to his four-year record of accomplishment in office. Ramsdell said he called Hynes to concede and to "wish him the best."
The comptroller is the state's chief fiscal officer.
In the race for state treasurer, Topinka fended off Democrat Tom Dart. With 91 percent of precincts counted, Topinka had collected 54 percent to 44 percent for Dart. Libertarian candidate Rhys Read had 2 percent.
Topinka, 58, of Riverside, was the first woman to be elected state treasurer in Illinois when she won in 1994. The former state legislator was elected to a second term in 1998 and is the first Illinoisan to be elected to three. Dart, 40, of Chicago, is a state representative and a former Cook County assistant state's attorney.
The treasurer is the state's chief investment officer.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Democrats win Senate and lock on legislature
 
By Ray Long and Christi Parsons
Tribune staff reporters
November 6, 2002
In a major power shift, Democrats on Tuesday claimed control of the Illinois Senate--and with it the entire General Assembly--for the first time in 10 years.
"We look forward to grand times," said Senate Democratic Leader Emil Jones of Chicago. "We look forward to doing great things for the people of the state of Illinois."
Senate Democrats racked up a series of critical victories Tuesday, ending the reign of Senate President James "Pate" Philip, the DuPage County stalwart who won the chamber's top job a decade ago.
"With a Democratic sweep at the top of the ticket, it's tough," said Patty Schuh, Philip's spokeswoman.
Senate Democrats capitalized on a big year for their party's entire ticket, as they won the governorship and both houses for the first time since a Watergate-era election booted Republicans out of office en masse.
They also benefited from new district boundaries tilted to favor Democrats and a public weary of Republican scandals.
Jones' aides maintained his Democratic caucus had captured at least 32 of the 59 seats necessary to control the Senate and hoped to build on that total as votes rolled in throughout the state. A series of races were being tallied late Tuesday, but Philip aides predicted they would end up with 25 or 26 seats. They currently hold a 32-27 edge.
In one of the more intriguing contests, incumbent Democratic Sen. William Shaw, the Dolton mayor, lost to Rev. James Meeks, a Chicago Democrat running as an independent. Thornton Police Chief Phillip Arnold Jr., a Republican, also ran.
Meeks pledged to support Jones for president of the Senate. Despite being a lifetime Democrat, Meeks said he plans to function as an independent and vote issue by issue "with the group whose interests match those of my constituents."
In the House, Speaker Michael Madigan's Democratic majority was never threatened since his party won the right last year to redraw the legislative districts. Democrats already hold a 62-56 majority in the House, and Republicans figured they had lost three or four more seats in this election.
"Now you're going to have two chambers interested in solving problems," said Steve Brown, Madigan's spokesman. "Too often we've seen Republicans in the Senate put a brick on everything from the House, just because it was from the House."
A Democratic takeover portends a major shift in politics and policies of state government. The changes are likely to come at the hands of trial lawyers, organized labor and other traditional Democratic interests that have labored to bring the new leadership to power.
New day for some initiatives
The election could usher in a new day for all sorts of initiatives that have faltered in the Republican-led Senate in recent years, such as an increase in the minimum wage and a rewrite of state law to make it easier for injured workers to collect damages from their employers. A Democratic Senate likely will push for annual increases in the minimum level of spending per student in public schools.
Previously guaranteed a quiet death in the upper chamber, measures as diverse as gay rights and tax breaks for the poor stand a much better chance of advancing. The Chicago Teachers Union, which lost bargaining rights over a variety of issues when Republicans enacted a sweeping school reform package in the mid-1990s, will have a chance to recover.
And Mayor Richard Daley's suggestion of pushing for a special casino for Chicago may come into play although both candidates for governor went into Election Day wary of the idea.
"It'll be a new kind of Senate," said Sen. Steve Rauschenberger, the Elgin Republican who fought off a challenger but will lose his chairmanship of the Appropriations Committee. "We'll have a new group who has to learn the ropes. They come in at a time of great financial difficulty. So I hope they'll take a collaborative approach [with Republicans]."
The toughest problem for Springfield politicians will be how to plug a yawning budget gap that could grow to $2.5 billion in the fiscal year that begins July 1. A deficit that size in a $50 billion-plus budget will bring legions of people into the Statehouse to pressure lawmakers to raise taxes rather than cut services and jobs.
Yet legislative issues that come with a big price tag will be difficult because both candidates for governor pledged the budget crisis could be resolved without a rise in sales or income taxes.
Even going into the election, prominent Democrats confident of winning one-party control were talking about a moderate agenda rather than costly far-reaching changes or anything that could give GOP a rallying point in 2004.
With the Supreme Court already firmly Democratic, the party would be in position to pass its bills, get them signed and, if its laws are challenged, have them heard by jurists more inclined to lend a sympathetic ear.
Republicans won the right to tilt the districts in their favor 10 years earlier, a move that paved the way for Philip to take charge of the Senate. But House Republicans were able to win the House for only one two-year term, in 1994, when a nationwide GOP tide swept Newt Gingrich and Lee Daniels into the speakerships, respectively, of the U.S. Congress and Illinois House.
In the marquee Senate race, Rep. Susan Garrett (D-Lake Forest) beat incumbent Sen. Kathy Parker (R-Northbrook).
"It was a big Democrat year," Parker said. "We were running in more difficult districts because they were new. We did everything we could. We cannot control the top" of the ticket.
Cicero race
In a Cicero area face-off for an open seat, Democrat Martin Sandoval of Chicago beat Republican Roberto Garcia of Cicero.
Among the tighter Senate races outside the Chicago area, Republican Dale Risinger, a former transportation official from Peoria, beat Democratic Knox County State's Atty. Paul Mangieri of Galesburg.
The closest race still hanging late Tuesday featured two Champaign residents, Republican Rep. Rick Winkel and Democrat and former Mayor Dan McCollum.
Going against the trend, Democratic Sen. Bill O'Daniel of Mt. Vernon lost to Republican Rep. John Jones, also of Mt. Vernon.
Incumbent GOP Sen. Laura Donahue of Quincy lost to Democrat John M. Sullivan of Rushville.
In the House, Rep. Bob Bugielski, a Chicago Democrat, lost to Rep. Michael McAuliffe, the only House Republican from Chicago, in a contentious Northwest Side battle.
Rep. Elizabeth Coulson (R-Glenview) beat Democrat Pat Hughes of Wilmette. Rep. Anne Zickus (R-Palos Hills) lost to Chicago Democrat Kevin Joyce, the son of former Chicago lawmaker and Daley confidant Jeremiah Joyce of Chicago.
In North Shore races, Democrat Elaine Nekritz of Northbrook beat Republican Mary Childers of Des Plaines, and Democratic Rep. Karen May of Highland Park beat Republican Marc Brown of Deerfield.
 

Blagojevich elected Illinois governor
Associated Press
November 5, 2002, 8:47 PM CST
Democratic U.S. Rep. Rod Blagojevich ended Republicans quarter-century hold on the Illinois governors mansion Tuesday, beating an opponent who spent the campaign in the shadow of the scandal-ridden GOP incumbent
Blagojevich beat Republican Jim Ryan, a two-term state attorney general and former DuPage County states attorney.
With 45 percent of precincts reporting unofficial results, Blagojevich had 62 percent and Ryan had 36 percent.
David Wilhelm, Blagojevichs campaign manager, did not claim victory early in the evening but said he was comfortable with the lead.
``Its telling us that we have every reason to be confident as we enter the vote counting stage, Wilhelm said.
Ryans campaign was not ready to concede the race based on early returns, which were dominated by Chicago and the Cook County suburbs.
``Its not over yet by any stretch, said Ryan adviser Steve Culliton.
Democrats scored an early victory as U.S. Sen. Dick Durbin cruised to re-election, swamping underfunded Republican state Rep. Jim Durkin.

Union flier has wrong Ryan
 
October 30, 2002
BY DAVE MCKINNEY AND SCOTT FORNEK STAFF REPORTERS  
 

 

 

 


Jim Ryan ought to be thankful his last name isn't Nixon.

In what is either a classic political dirty trick or an honest "technical error," the state AFL-CIO sent out thousands of fliers this week touting Democrat Rod Blagojevich's record over that of Ryan, his Republican rival.

But instead of Attorney General Jim Ryan's name and photograph, the pamphlet featured Gov. George Ryan's face and name. That's right--the unpopular, scandal-scarred Republican incumbent that the GOP wishes would hide in the basement until Nov. 6.

"I don't think anyone seriously believes this is an honest mistake," fumed Dan Curry, a spokesman for the attorney general. "This has been the entire campaign by the Democrats and Rod Blagojevich--to cynically confuse the public about Jim Ryan and George Ryan. Now they've been caught."

The state AFL-CIO insists it was a "technical error" made by the California firm that produced the piece.

"It is a mistake, an error by a vendor, and it's nothing more than that," said Margaret Blackshere, president of the labor organization. "I can assure you it was not purposeful. That's not the kind of tricks the AFL-CIO tries to play. If we were trying to be sneaky, one would assume we'd have done it on a much broader scale."

The pamphlet went to at least 10,000 union households in the southern half of the state. It posed the question, "Who will stand up for us as governor?" Blagojevich's picture, name and positions are outlined beneath that headline on one side, while a picture of the lame-duck governor, his name and Jim Ryan's position on labor issues are laid on the other side.

Blackshere said a union member informed her of the error Tuesday, and she immediately recorded a telephone message meant to correct the mistake for the union households targeted by the mailer. She said the piece was paid for and sent out by the national AFL-CIO, which intends to seek reimbursement for the misstep from the production company.

Kevin Mack, vice president of Winning Directions, the San Francisco firm that produced the mailer, said an artist typed "Ryan" and "Illinois" in their computerized library of photographs, and George Ryan's picture came up. He said during proofreading the gaffe "just fell through the cracks."

"If we really wanted to inflict damage, we could have used Jim Ryan's picture with the governor's record," Mack said.

Blagojevich spokesman Doug Scofield rejected Ryan's charge of a deliberate disinformation campaign.

"He doesn't give voters enough credit," Scofield said. "People don't confuse Jim Ryan and George Ryan. They connect Jim Ryan and George Ryan. And they see years of failed leadership and stagnation and status quo."
 


 

Easy to read governor's lips
 
Ryan believes state can't go on without tax hike
 
By Christi Parsons and Dan Mihalopoulos, Tribune staff reporters. Tribune staff reporters David Mendell, John Chase and Ray Long contributed to this report
October 29, 2002
SPRINGFIELD -- Rejecting no-new-taxes pledges by the candidates vying to succeed him, outgoing Gov. George Ryan said Monday that Illinois can't solve its budget mess without raising one tax or another.
"I would guess that if the State of Illinois is going to function at any level of service, there's going to have to be some new revenue some place," the governor said.
The governor said he won't push for a tax hike in the veto session and said he couldn't imagine any members of the General Assembly would be keen on the idea. But, he said, "I'm always available to talk to them if they are."
George Ryan had previously scoffed at promises made by Republican candidate for governor Jim Ryan and Democratic contender Rod Blagojevich to veto any attempt to increase taxes to ease the fiscal crisis.
Meanwhile, Jim Ryan, who has been battling with the incumbent GOP governor, sought to associate himself more closely with a Republican who has his popularity intact. Jim Ryan said if he is elected governor, he would name former Gov. Jim Edgar to head his transition team.
"I'm trying to send a message to voters, and there is nobody better to show the kind of people I want around me than Jim Edgar," Jim Ryan said in a seven-city flyaround that included stops in Rockford, Springfield, Peoria and Carbondale.
For his part, Blagojevich traveled through Downstate to assure voters he would not raise the cost of a Firearm Owner's Identification Card, although he had supported such a move while in the General Assembly.
"The opposition has been very good at distorting my record, suggesting that I would raise the price of a FOID card," Blagojevich told a group of 150 supporters outside the Pike County Courthouse in Pittsfield. "That is just not the case. I will not raise the price of a FOID card--not one dime, not one nickel."
In the race for attorney general, Democrat Lisa Madigan vowed to oppose attempts to privatize the commissary and dietary units in state prisons. On a Downstate campaign swing with leaders of a public employees union, Madigan also said she would fight a new contract that uses a private firm to pick up out-of-state parole violators.
Those positions placed Madigan squarely on the side of the union, the American Federation of State, County and Municipal Employees, and her announcement came just weeks after AFSCME donated $45,000 to her campaign.
Madigan's Republican rival, Joe Birkett, also opposes privatization efforts in the prison system, a spokesman said, even though his campaign has received $1,300 in contributions from Aramark, a private company vying to provide commissary services at state prisons.

Madigan: Privatizing prison jobs is illegal
 
By BERNARD SCHOENBURG
POLITICAL WRITER
28 Oct 2002

Democratic attorney general candidate Lisa Madigan says she thinks it is illegal for the state to have a private company transport prisoners.
Madigan, a state senator from Chicago, also said she would co-sponsor a supplemental appropriation in the General Assembly to restore recent cuts in services and jobs that will result in prison closures and the loss of 1,000 union positions. She said she didn't know how large that appropriation would be.
"While revenues are down in the state, we can't risk the safety or our prison employees or our communities," she said.
Madigan made the statements at the Springfield headquarters of Council 31 of the American Federation of State, County and Municipal Employees. The union, which represents tens of thousands of workers statewide, endorsed her in September and made the announcement Monday.
Madigan is running against Republican DuPage County State's Attorney Joe Birkett in the Nov. 5 election. Accompanied by state workers including a food service supervisor at Jacksonville Correctional Center and a parole officer from Springfield, Madigan said she thinks state law prohibits privatization of prison jobs because of the security risk.
Buddy Maupin of Marion, regional AFSCME director for correctional employees statewide, said the endorsement of Madigan is based on her views and record, and is "absolutely not" related to the position held by her father, House Speaker Michael Madigan.
Maupin said he expects legal action soon against a state five-year contract for $1.75 million with a Nashville company, TransCor America, for interstate transport of Illinois prisoners.
Meanwhile, Birkett on Monday called on Madigan to return more than $175,000 in contributions received from city of Chicago and Cook County workers over the past three years. His campaign pointed to $50,000 that came to Madigan since July 1 from government workers who live within Mike Madigan's 13th Ward in Chicago.
"The Madigans will stop at nothing," Birkett said in a news release. "Muscling cops and working men and women is standard politics to them."
"It's ridiculous," responded Mike Noonan, campaign manager for Lisa Madigan. "Every single person has given this money of their own free will because Lisa grew up there and they support her."
 

Steve Schnorf to head Department of Central Management Services
 
By DEAN OLSEN
STATE CAPITOL BUREAU
20 Sept 2002
 
Gov. George Ryan's budget director, Steve Schnorf, will return to the state Department of Central Management Services as its leader Oct. 1, replacing Michael Schwartz, who is retiring, Ryan announced Thursday.
As director of Ryan's Bureau of the Budget, Schnorf, 57, had the high-profile task of unveiling and explaining to legislators and the news media the many cuts the governor needed to make in state spending this past year as state revenues plummeted during the recession.
Schwartz, 50, of Springfield, plans to retire at the end of September for health reasons.
Schnorf, also a Springfield resident, has served as director of the Bureau of the Budget since 1997, after being appointed by then-Gov. Jim Edgar. From 1991 to 1994, Schnorf was Edgar's director of CMS, the state agency that handles labor union contracts and provides many personnel services to state workers.
"It's important to have someone over there," Ryan spokesman Ray Serati said.
The change will be a lateral move for Schnorf, Serati said. Schnorf currently earns slightly more than $120,000. His salary at CMS will be comparable, Serati said. Schnorf was Edgar's senior assistant and director of policy from December 1994 to November 1997.
Mike Colsch, who now is deputy budget director, will serve as interim director of the Bureau of the Budget. The Springfield resident has been deputy director since 1994.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.

Poll finds only one statewide race is close
Birkett, Madigan in statistical tie for attorney general
 
By DOUG FINKE
STATE CAPITOL BUREAU
20 Sept 2002
DuPage County State's Attorney Joe Birkett, a Republican, holds a slim lead over Democratic state Sen. Lisa Madigan in the race for Illinois attorney general, a new Copley News Service poll shows.
The poll also found that incumbents in races for treasurer, secretary of state and comptroller hold substantial leads over their challengers - a result aided by the fact that at least two-thirds of those polled say they've never heard of the challengers.
The power of incumbency also carried over to the U.S. Senate race, where Democrat Sen. Dick Durbin of Springfield leads state Rep. James Durkin, R-Westchester, by more a than 2-1 margin.
Conducted by Mason-Dixon Polling & Research Inc. of Washington, the poll questioned 621 people who said they regularly vote in state elections. The poll was conducted Saturday through Tuesday and has a margin of error of plus or minus 4 percentage points.
In the race for attorney general, 45 percent that featured Durbin and Durkin. The poll shows that they are not. Durbin held 57 to 28 percent lead, with 15 percent undecided. Durbin was ahead of Durkin in every area of the state, including the GOP-heavy collar counties.
"We learned in the primary not to put too much faith in the polls," said Durkin campaign manager Brock Willeford. Durkin trailed most polls before winning the March primary.
Durbin spokeswoman Stacey Zolt said the poll will have no affect on Durbin.
"He wakes up every morning as if he's 10 points behind," Zolt said. "He does not take his support for granted."
The Libertarian Party is also fielding candidates for U.S. Senate, secretary of state, treasurer and comptroller. They were not included in the poll.
Steven Burgauer is the Libertarian candidate for U.S. Senate. Other Libertarian candidates include Rhys Read for treasurer, Gary Shilts for attorney general and Julie Fox for comptroller.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
 

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Poll: Blagojevich far ahead
But Jim Ryan gains when name confusion is cleared up
 
By BERNARD SCHOENBURG
POLITICAL WRITER
19 Sept 2002

What's in a name? Perhaps 6 percentage points, a poll done for Copley Illinois newspapers suggests.
The poll of 621 registered voters who said they regularly cast ballots in state elections showed that Democrat Rod Blagojevich had an 11-point lead over Republican Jim Ryan in the race for governor.
But a follow-up question, clarifying that Jim Ryan is the state's attorney general and is not related to Gov. George Ryan, resulted in Blagojevich's lead dropping to five points.
"Name confusion between the GOP nominee and incumbent Republican Gov. George Ryan is clearly having an impact," said Brad Coker, managing director of Mason-Dixon Polling & Research Inc. of Washington, which conducted the poll Saturday through Tuesday.
The Democrats came out ahead 49-38, with 13 percent undecided, when respondents were asked: "If the 2002 election for governor and lieutenant governor were held today, would you vote for the Democratic ticket of Rod Blagojevich and Pat Quinn or the Republican ticket of Jim Ryan and Carl Hawkinson?"
But the statewide numbers closed to 47 percent for Blagojevich, 42 percent for Ryan and 11 percent undecided after the follow-up question: "Jim Ryan, the Republican candidate for governor this year, has been the Illinois attorney general for the past eight years. He is not related to incumbent Republican Governor George Ryan. Knowing that information, I would like to ask you again ... would you vote for Jim Ryan, the Republican, or Rod Blagojevich, the Democrat?"
The poll, which was done by telephone, has a margin of error of plus or minus 4 percentage points when the full sample is counted. Those interviewed included 305 men and 316 women. Four out of five respondents were white, 14 percent were black and 6 percent fit in other categories.
There will be four candidates for governor on the Nov. 5 ballot. The Mason-Dixon poll did not include names of Cal Skinner, a Libertarian from McHenry County, or Marisellis Brown, an independent from Danville.
In the original head-to-head question, Blagojevich led Jim Ryan in three of five areas of the state. He had a 63-26 advantage in the Chicago/Cook County region, a 45-36 lead in northwest Illinois, and a 46-36 lead in the 36 counties in the southern part of the state.
In 42 central Illinois counties, including Sangamon, Peoria, Logan and Knox, Ryan led 48-38. In eight counties surrounding Cook County, including DuPage, McHenry, Lake, Will, Kankakee, Kane, Grundy and Kendall, Ryan led 52-38.
Men favored Blagojevich by a 46-42 margin, while women backed the Democrat 53-34. Whites were evenly split, with 43 percent for each candidate, while African-Americans polled favored Blagojevich over Ryan 85-7 .
"This continues a string of successes we've seen throughout this campaign," said Blagojevich spokesman Billy Weinberg. He also said the campaign would have no problem if confusion ends over which Ryan is the challenger.
"Whether or not people identify the Republican candidate in 2002 as Jim Ryan or George Ryan, we have substantial information on that candidate demonstrating why he is unfit to lead the state of Illinois," Weinberg said. "We in fact welcome the chance to shed greater light on Jim Ryan's failures as attorney general, DuPage County prosecutor and his inability to address issues that affect people."
Dan Curry, spokesman for Jim Ryan, said Republicans have said all along that people would focus on the contest after the anniversary of the Sept. 11 attacks and that the poll numbers would tighten.
The poll showed Ryan "significantly closer" to Blagojevich than other recent polls, he said, indicating that people are "sorting out the records and the rhetoric."
With four debates and more high-profile campaigning on the way, Curry said, voters will "prefer a career prosecutor who's put both Republicans and Democrats in prison over the inexperienced (son-in-law) of a Chicago ward boss." Blagojevich, a former state representative and member of Congress, is married to the daughter of a Chicago alderman.
In a separate poll question, less than a third of respondents said that the governor's problems would steer them away from voting for Republicans on Nov. 5.

Hearing on privatization ends;
judge wants arguments briefed

September 17, 2002

Peterson began hearing AFSCME's legal argument against Ryan's plan to privatize prison dietary and commissary functions last week.

A temporary restraining order (TRO) barring the Illinois Department of Corrections from entering into a contract with a private vendor remains in effect.

Government attorneys had earlier argued unsuccessfully that the TRO should be lifted because of an emergency situation. They had maintained that the FY03 budget enacted by the General Assembly was based on the assumption that these services would be privatized, and that significantly less money had been appropriated than is required to have them provided by DOC employees.

Peterson rejected that argument.

 


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Blagojevich news event takes twist
Says he used marijuana twice when younger
 
By ADRIANA COLINDRES
State Capitol Bureau
17 SEPT 2002
 
U.S. Rep. Rod Blagojevich, the Democratic nominee for governor, called a Monday news conference to tout a business group's endorsement, but the event took an unexpected twist when he admitted to having used marijuana twice.
He said he had smoked marijuana on two occasions when he was "college-age" but never experimented with other illicit drugs. He said he wasn't sure whether he had inhaled when he smoked marijuana.
"I just don't know," said Blagojevich, who added that he doesn't smoke and that he jogs regularly. "I did it twice, and I was so inept at it that I don't know if I did or didn't" inhale.
"I never liked the smell of it, but it was a smell that we all - of our generation - are very familiar with," said the 45-year-old Blagojevich.
Dan Curry, a spokesman for Attorney General Jim Ryan, Blagojevich's Republican opponent, said the 56-year-old Ryan "has not smoked any pot or used any illegal drugs of any type."
Blagojevich was asked about illegal drugs during the question-and-answer portion of a Statehouse news conference meant to focus on his endorsement from the Illinois Retail Merchants Association, which has backed Republicans in the past two gubernatorial campaigns.
He called the business group's endorsement "a big step forward" and suggested it was a sign of the kind of governor he would be if elected Nov. 5.
"The idea that if labor is for you, business should be against you, and if business is for you, labor should be against you, I think is tired and old and fails to realize that we're all in this together," Blagojevich said. "My goal as governor is to bring people together so we can grow our economy and create jobs."
Jim Ryan has collected endorsements from other business-related groups in the state, including the National Federation of Independent Business and the Illinois Manufacturers' Association.
Ryan's campaign said the Republican was being snubbed by the retailers because of his crusade against violent "M-rated" video games and for cracking down on gasoline stations that increased fuel prices immediately after the terrorist attacks of Sept. 11, 2001.
"Jim Ryan hasn't been afraid to ruffle feathers ... if he's in pursuit of doing what he feels is right," Curry said. "That's the way he'll operate as governor."
During a Chicago news conference about Blagojevich's IRMA endorsement, a disagreement unfolded between the Democrat and the retail group's president, David Vite.
Vite said his group chose to endorse Blagojevich over Ryan partly because the Democrat would "work with us on issues like M-rated videos." Jim Ryan, as attorney general, waged a campaign two years ago to pressure stores to stop selling the often-violent video games or to ask young people for identification to make sure they're at least 17 before selling.
"We disagreed with the philosophy of (Ryan), and we don't get the impression from Congressman Blagojevich that he would use the powers of his office to put more regulatory structure around retailers' ability to serve their customers," Vite said.
"This is the first I've heard of this issue," Blagojevich said when asked about his stance on M-rated video games. "It seems to me that this would be an appropriate place where there should be some regulation."
Blagojevich said he likes the idea of checking the age of minors seeking to buy the video games and advocates putting public pressure on retailers who deal in ultraviolent material.
He noted that he and the retailers association have other policy disagreements, such as his support for raising the minimum wage.
On another subject, Blagojevich said Monday at the Springfield news conference that the issue of reopening Lincoln Developmental Center needs a lot of study.
There are different challenges there, specifically, than at some of the other facilities that have closed recently. Gov. George Ryans decision to shut the facility down was not done in a thoughtful way, he said.
Later, Blagojevich said he isnt backpedaling on his previous comments that he would reopen LDC if elected governor.
Im not hedging. I want to reopen it. But theres issues of care and treatment, he said. I want to reopen it, but the question is how do you do it and how do you provide the right kind of services.
Copley News Service reporter Mike Ramsey also contributed to this story. Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com. Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.

Death row inmate objects to petition
 
By Steve Silverman
Pantagraph staff
13 SEPT 2002
 
PONTIAC -- Convicted killer Anthony Hall has spent the past 19 years fighting for his life, but now he's objecting to a request that Gov. George Ryan commute his death sentence for the 1983 slaying of a prison food service supervisor.
Last week, Hall filed court papers seeking to nullify a clemency petition filed on his behalf by the University of Chicago MacArthur Justice Center. He said he didn't consent to the petition, and contends appeals and constitutional challenges to his murder conviction and death sentence "could viably be argued moot" if Ryan commutes his sentence to life in prison.
"I humbly request that no application for Executive Clemency be considered by the Illinois (Prisoner) Review Board nor by the Governor of Illinois in reference to Mr. Anthony Hall," Hall wrote.
Hall, 43, cites state law requiring clemency applications have "written consent of the defendant, unless the defendant, because of mental or physical condition, is incapable of asserting his or her own claim."
In 1985, Hall was convicted and sentenced to die for the fatal stabbing of Pontiac Correctional Center food service supervisor Frieda King.
A federal appeals court upheld Hall's conviction in 1997, but ordered a new sentencing hearing because his attorneys failed to investigate two potential witnesses or advise him that one juror's objections could have saved him from the death penalty.
A McLean County jury re-sentenced Hall to death in 1998.
Hall states that he didn't give authorization or implied consent for anyone to seek clemency on his behalf.
MacArthur Justice Center Director Locke Bowman could not be reached for comment.
About 160 clemency petitions are pending with the state Prisoner Review Board. Gov. George Ryan, who halted executions in 2000 after 13 death row inmates were found to have been wrongly convicted, has said he wants the board's input before deciding whether to commute death sentences to life in prison.
Last week, Ryan said he expects to commute death sentences "for everybody or for nobody" before leaving office in January.
Hall's former attorney, Charles Schiedel of the State Appellate Defender's office, said some death row inmates had reservations about seeking clemency because they feared commutations would nullify their pending appeals. He said he doesn't believe appeals that allege wrongful convictions would be affected by commutation.
"I personally believe that's an unwarranted concern," he said.
However, Schiedel said appeals that specifically challenge the validity of the death penalty could be rendered moot by the governor granting relief from execution.
Schiedel wouldn't comment specifically on the case because he longer represents Hall. Hall's current attorney, Jon Stromsta of Chicago, could not be reached for comment.

Gun rights group won't back Ryan
 
By Rick Pearson and Ray Long, Tribune staff reporters. Tribune staff reporters Susan Kuczka and Christi Parsons contributed to this report
September 13, 2002
 
The Illinois State Rifle Association said Thursday it would not endorse a candidate for governor in the Nov. 5 election, a move that is a blow to Republican Jim Ryan's campaign against Democratic gun-control supporter Rod Blagojevich.
In a statement, the gun-owners rights group said it was "unfortunate that the major political parties could not field a candidate worthy of support."
Sources in Ryan's campaign said the group wanted him to support legislation that would allow gun owners to carry a concealed firearm and measures that would repeal the right of larger municipalities to outlaw the possession of guns. Ryan has long opposed those measures.
Still, Ryan had hoped to secure the endorsement of the group, a state affiliate of the National Rifle Association, given Blagojevich's background in the Illinois House and Congress where he has sponsored several gun-control measures.
The group did make some endorsements in the general election, favoring Republican DuPage County State's Atty. Joe Birkett over his Democratic rival for attorney general, state Sen. Lisa Madigan. It also backed incumbent Republican treasurer Judy Baar Topinka.
Talk is cheap: Incumbent Democratic U.S. Sen. Dick Durbin said he will participate in three broadcast debates with Republican challenger state Rep. Jim Durkin, including two on one day.
Durkin, Durbin's vastly underfunded opponent, said he would participate in the three head-to-head meetings scheduled for Oct. 8 in Chicago and Oct. 13 in Chicago and Champaign. But Durkin also said he believed the state "deserves more than three debates because of its size."
Durbin's campaign, however, said it took part in three debates in the Democrat's initial Senate campaign six years ago. "I'm hopeful that the forums we've chosen will reach voters across the state," Durbin said in a statement.
Complaint Department: The Illinois Republican Party filed a complaint with the state's Judicial Inquiry Board, asking it to review $50,000 in contributions made to Democratic attorney general candidate Lisa Madigan by the sons of Cook County Judge Sheldon Harris. The judge received help for his election campaign from Madigan's father, state Democratic chairman and Illinois House Speaker Michael Madigan.
Lisa Madigan, who on Thursday received the backing of the environmentalist Sierra Club of Illinois, said "absolutely not" when asked if she believed any illegality had occurred in relation to the contribution.
Her spokeswoman, Melissa Merz, also said an attempt this week by the FBI to speak to the judge was "in no way related to Lisa Madigan or her campaign." FBI agents visited the judge in his chambers Monday, one of his attorneys has said. But the judge said he has not talked to federal authorities. Federal officials would not discuss the matter.
Meanwhile, the Illinois Board of Elections voted unanimously to dismiss a complaint filed by Democratic operative Joe Novak against the Tribune and Birkett, citing no justifiable grounds.
Novak, a top strategist for Democrat Glenn Poshard's failed 1998 campaign for governor who also has ties to U.S. Rep. William Lipinski and former Chicago Ald. Edward Vrdolyak, alleged that Tribune articles about Lisa Madigan were the result of collusion between the newspaper and Birkett and should be disclosed as campaign contributions.
Steve Sandvoss, the hearing examiner as well as counsel over campaign disclosure issues for the state elections panel, said Novak was "mixing apples and oranges" by trying to treat legitimate news articles as campaign donations.
 

2 protesting Pontiac inmates resume eating
 
By Aamer Madhani
Tribune staff reporter
September 13, 2002
Two Pontiac Correctional Center inmates who had said they wanted to starve themselves to death to protest prison conditions may do so, a Downstate judge said this week, lifting a temporary order that had allowed prison officials to force-feed the inmates.
But the ruling is moot because the inmates have started eating again, an Illinois Department of Corrections spokesman said Thursday.
Livingston County Circuit Judge Harold Frobish refused a request by the Illinois attorney general's office Wednesday to continue his temporary order. Last week, Frobish ruled that John Barrell, 39, and Leon Snipes, 41, who reside in the prison's segregation units and spend 23 1/2 hours a day in solitary confinement, could "choose to die in these circumstances rather than live this way."
The judge stayed that order until Wednesday and said the state could force-feed the men in the meantime while the attorney general's office decided whether to appeal.
But on Thursday, Barrell and Snipes had eaten the meals served to them and had not indicated imminent plans of beginning a hunger strike, said corrections spokesman Brian Fairchild.
"No one is trying to starve themselves to death," he said. "If it becomes an issue, we would contact our legal counsel and go from there."
Scott Mulford, a spokesman for the attorney general's office, said that if the men decided to begin their hunger strike, Department of Correction officials would be prohibited from force-feeding them to keep them alive.
Barrell, convicted of armed violence in Franklin County in 1991, and Snipes, convicted of criminal sexual assault in Kankakee County, have gone on sporadic hunger strikes in the past, Fairchild said.
Both men are facing prison sentences of at least 30 years and have said they would rather die than endure their current state.
Mulford said the state has not decided whether to appeal Frobish's decision.
Robert Ellington-Snipes, the half-brother of Snipes, said he is trying to arrange a meeting with his brother so he can ask him not to starve himself to death. Ellington-Snipes said the confinement his brother is facing is inhumane.
 

Poll shows Blagojevich could win
 
By Kurt Erickson
Statehouse bureau chief
13 SEPT 2002
SPRINGFIELD -- A new poll shows that Illinois may be headed toward electing its first Democratic governor in three decades.
With less than two months to go before the Nov. 5 election, a sampling of 599 likely voters taken on Sept. 8-10 shows that 52 percent would vote for Democratic U.S. Rep. Rod Blagojevich.
Republican Attorney General Jim Ryan, who is struggling to overcome voter confusion about his last name, would receive 36 percent of the vote in the poll. It was conducted for The Pantagraph and WEEK TV of Peoria by Research 2000 of Rockville, Md.
The poll, which has a margin of error of plus or minus 4 percentage points, also showed that:
Democratic U.S. Sen. Dick Durbin continues to hold a commanding lead over his little-known challenger, state Rep. Jim Durkin, R-Westchester.
The race for attorney general is in a statistical dead heat.
And, education continues to be the top issue on the minds of voters.
Blagojevich's lead mirrors surveys taken in recent weeks that show Jim Ryan struggling to differentiate himself from scandal-plagued Gov. George Ryan. The two are not related.
Recently, Jim Ryan's campaign issued a statement urging newspapers and broadcasters to make sure voters do not confuse the two-term attorney general with the governor, who is leaving office in January after one term.
A spokesman for Jim Ryan's campaign said the poll may have showed a tighter race had pollsters attempted to make sure respondents were not confused by the name issue.
"If you eliminate the name confusion, the margin will be a lot closer," said Jim Ryan spokesman Dan Curry. "I think, as we get closer to the election, this confusion will lessen."
Asked their opinion of Jim Ryan, just 38 percent of the respondents had a favorable feeling toward the attorney general, compared to 46 percent for Blagojevich.
The poll also showed the Chicago congressman is topping Jim Ryan in almost every geographical area of the state. In Republican-rich Central Illinois, the Research 2000 results give Blagojevich a 52-33 advantage. In Cook County, Blagojevich's home turf, respondents favored the congressman by a 60-29 margin.
Only in the collar counties of Chicago, where Jim Ryan -- an Elmhurst resident -- once served as a county prosecutor, did he surpass Blagojevich, registering a 50-43 lead.
The Blagojevich campaign said the polls are another indication that voters are ready for a change in Springfield. If Blagojevich is elected, he would become the first Democrat to reside in the governor's mansion since Dan Walker served a single term in the 1970s.
"Certainly, Congressman Blagojevich is not taking his lead for granted," said campaign spokesman Doug Scofield. "What the polls show is an enthusiastic response to the congressman's message."
In the race for control of the U.S. Senate, meanwhile, Illinois appears to a safe lock for the Democrats, who are hanging on to a one-seat majority.
The poll shows that the well-funded Durbin is favored over Durkin by a 56-35 advantage. Durkin, a former assistant county prosecutor and member of the Illinois General Assembly since 1995, also is battling to get his message out: The poll showed 14 percent of the respondents don't know who he is.
In the race for attorney general, state Sen. Lisa Madigan, D-Chicago, held a 41-40 lead over DuPage County State's Attorney Joseph Birkett. With nearly 20 percent of the respondents saying they were undecided and the results within the margin of error, the race may hinge on who has the bigger advertising budget.
Madigan, the daughter of House Speaker Michael Madigan, who is the chairman of the Illinois Democratic Party, has a large lead in fund raising. But, both have been criticized for accepting questionable campaign dollars.
Though ethics has become a dominant theme in this year's election, poll respondents continued to list education as their top issue. Second in priority is the economy, followed by taxes and state spending.
The honesty and integrity of a candidate was the fourth most important issue, the poll said

First pension checks late for state's early retirees

By DOUG FINKE
STATE CAPITOL BUREAU
11 SEPT 2002


State workers taking advantage of early retirement are waiting longer than usual for their first pension checks to arrive, a pension official acknowledged Tuesday.

And the delays could be even longer for people who retire at the end of December, when the vast majority of early retirees are expected to leave their jobs.

"At this point, knowing what we know, they'd better plan on (waiting) two months," said Michael Mory, executive secretary of the State Employees Retirement System. "It would be prudent for people to plan ahead."

In other words, Mory said, people planning to take early retirement should make sure they have access to sufficient funds to cover their expenses until the initial pension checks arrive.

Even if they're not part of the incentive program, retiring state workers can expect to wait four to six weeks for their first pension checks. For early retirees, the wait is now eight to 10 weeks.

The added time is mostly due to delays by state agencies in processing unused sick and vacation days. Under the early retirement program passed this year in an effort to ease the state's budget crunch, the cash value of those unused days is first applied to the cost of buying early retirement pension credits. If anything is left over, it is given to the worker as a lump sum.

Until SERS gets those records from state agencies, it can't finish the work needed to get a retiring employee's initial pension check in the mail. Mory said SERS still hasn't received information about unused sick and vacation time for some people who retired Aug. 1 - the earliest date to use early retirement.

"We have to wait for the agencies to forward information about the lump sums," Mory said. "I don't know what we do about it."

If the past is any indication, there'll be even longer delays. Mory estimates that 70 percent of state workers planning to retire early will leave their jobs Dec. 31, the last day they can. When an early retirement plan was offered to state workers in 1991, 70 percent left on the last day.

That means, Mory said, that state agencies and SERS are facing a huge paperwork increase later this year, even beyond what they are coping with now.

About 20,000 state workers are eligible for early retirement, and Mory said he still anticipates about 7,500 will take it.

"We're not really upping the estimates," Mory said, despite some reports that indicated otherwise.

About 1,100 people retired Aug. 1, and another estimated 1,000 left Sept. 1. About 600 people have filed so far to retire in December.

In all, some 3,600 applications to retire have been filed, although people can still change their minds after filing.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.


 

Next governor stuck with leftovers
Job probation reduced from six months to 30 days
 
By MIKE RAMSEY and DOUG FINKE
STATE CAPITOL BUREAU
11 SEPT 2002
CHICAGO - Republican Gov. George Ryan on Tuesday won the ability to lock in several political appointments for the next four years, even though a new administration will take over in January.
Ryan's proposal to cut the probationary period for "term appointments" from six months to 30 days effectively passed the Joint Committee on Administrative Rules, or JCAR, with the help of four Republican panel members. A Democratic attempt to forbid the new policy failed 5-4 on a partisan vote; it needed seven votes to succeed.
Critics of the rule change say it will allow the lame-duck Ryan to award lucrative state jobs to cronies and protect them from being ousted by the next governor. Ryan has argued that the shorter probation period will encourage experienced state workers to fill vacancies created by senior officials who are taking advantage of early retirement incentives.
Ryan spokesman Dennis Culloton predicted the governor will fill only about 20 vacancies within roughly 650 potential slots. The openings include an engineer in the Illinois Department of Transportation and a "key manager" who would oversee the disbursement of social services funds, he said.
"We're just trying to make sure government continues to function over the next several months," Culloton said.
Democrats, who stand to win the Executive Mansion in the Nov. 5 election for the first time in three decades, countered that state agencies currently have the flexibility to fill positions on an interim basis. They see patronage motives at the heart of Ryan's plan.
"I think that it's just a crass move ... and that it's contrary to the public interest," said state Sen. Lisa Madigan, D-Chicago, a JCAR member who's running for Illinois attorney general.
Both gubernatorial candidates also criticized the rule change.
"This is a blatant attempt by the current administration to protect highly paid, highly political government officials from being replaced by the next governor," Blagojevich said in a written statement.
Jim Ryan spokesman Dan Curry said Ryan will reverse Tuesday's action if he's elected. If the outgoing governor uses the new policy, he should limit new appointments "to only those appointments that are absolutely necessary," Curry added.
All members of the JCAR panel, Republicans included, approved an objection to the rule change before the stronger opposition measure was introduced. The objection, however, is non-binding to the state Department of Central Management Services, the agency that will draft the new policy.
"We would respond to the objection, but I think that the intent of the rule changes would remain intact," CMS spokeswoman Judy Pardonnet said.
The rule change also will remove requirements that the political appointees come from an existing list of qualified candidates. The list currently offers preference to veterans.
Appointees must have two years of experience in state government.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com and Doug Finke at 788-1527 or doug.finke@sj-r.com.
 

Statehouse INSIDER
 
BY DOUG FINKE
STAFF WRITER
08 Sept 2002
Attorney General JIM RYAN, the Republican candidate for governor, is in a bit of a pickle.
Polls show that some people out there in voter land still confuse him with GEORGE RYAN, the scandal-plagued governor who is not running for re-election. More sympathetic we could not be.
Because of this confusion, Jim Ryan has to publicly draw attention to the fact that he is a separate person, as he did last week when he asked newspapers to take greater steps to emphasize that Jim and George are two different Ryans.
But when Jim Ryan does this, it elicits a surly response from George Ryan, who's developed gossamer skin lately. After Jim Ryan's letter to newspapers was published, George Ryan said: "Jim Ryan's been a lousy candidate. Jim Ryan has been attorney general for eight years. If he hasn't distinguished himself now, he probably never will."
Yes, these tirades help to underscore that there are two completely different Ryans in Illinois politics. But it can't help to have a Republican governor (even this one) calling the Republican candidate for governor a "lousy candidate," can it? Truly a pickle.

You know what's really scary about all of this?
After all of news coverage devoted to the official activities of the Ryans during the eight years they've held statewide office at the same time, after all of the news coverage of the scandals surrounding George Ryan, after all of the news coverage of the governor's race in which it should be clear to anyone over the age of 6 that that George Ryan and Jim Ryan are not the same person, after all of that, there are still uninformed dolts who think the Ryans are the same person. Worse, these uninformed dolts will be allowed to vote.
Do us all a favor. If you can't be bothered to learn even that little bit about public officials who can wield great power over your lives, just stay home on Election Day.

A press release arrived Friday from U.S. Rep. ROD BLAGOJEVICH, D-Chicago, the Democratic candidate for governor.
"Blagojevich to attend commemorative joint session of Congress in New York City on Friday," the release was headlined.
Guess it counts as news nowadays when Blagojevich attends a session of Congress.

Democratic political operative JOE NOVAK is upset with some news coverage of this year's campaigns. What sets him apart from the million or so other people who feel the same way is that he's taking his complaint to the state Board of Elections.
Novak feels that the Chicago Tribune is biased in favor of Republican attorney general candidate JOE BIRKETT and against Democrat LISA MADIGAN. Novak contends that the Tribune is doing this in collusion with the Birkett campaign. If we follow this correctly, Novak believes the Tribune is publishing negative stories about Madigan that Birkett can then use in TV and radio ads and in campaign brochures.
Since the Birkett campaign benefits from these stories, they should be reported as in-kind contributions on campaign disclosure reports, Novak says. Finally, Novak says the Tribune should register as a political action committee because of its active support and opposition of political candidates.
Novak, incidentally, was GLENN POSHARD's campaign manager in 1998. He's long felt the Tribune was soft on the burgeoning licenses-for-bribes scandal back then and that it cost Poshard dearly.
Altogether, this whole thing is a novel publicity gimmick. We'd guess this complaint has as much chance of success as George Ryan has of winning another election. However, if Novak wins this, does it mean that Blagojevich will have to report George Ryan's comments about Jim Ryan as in-kind contributions?

Republican secretary of state candidate KRISTINE O'ROURKE COHN is on something called her "Lose the Wait" tour in which she will visit all secretary of state facilities in Illinois. It's part of her campaign pledge to eliminate long waits at drivers' license facilities.
Last week, Cohn scheduled a visit to a facility in Bradley. She showed up late. Cohn didn't show up just a little late, she was a full 90 minutes late, according to the Kankakee newspaper reporter kept waiting to cover the "Lose the Wait" tour.
Care to guess what part of Cohn's visit the newspaper focused on?
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com

Corrections Employee Accidentally Shoots Self

 

5 Sept 2002

SPRINGFIELD An Illinois Department of Corrections employee was injured Wednesday when a handgun discharged in a Corrections office.

Department spokesman Sergio Molina said the employee, whom he would not name, was shot about 10 a.m. in an office at the department's main campus on Springfield's east side.

Corrections employees, speaking on condition of anonymity, told THE ASSOCIATED PRESS the injured man was Capt. Cecil Polley, a member of the agency's elite Special Operations Response Team.

Hospital officials said Polley was taken into surgery for a gunshot wound Wednesday afternoon. He was still in surgery at 9 p.m.

Corrections spokesman Brian Fairchild would not describe the injury, other than to say it was a superficial "flesh wound." A call to Polley's home was unanswered.

Molina said he didn't know how the incident occurred but that agency officials would investigate it. He said he did not know how long the investigation would last.

"It's going to take as long as the investigator takes to ask questions of and discuss it with the people he needs to discuss it with," Molina said.

The incident occurred on the second floor of Conkle Hall, which houses offices for the special operations team, the planning and research division and the grants division, among others.

Conkle Hall's first floor contains classrooms for the agency's training academy, which readies cadets to be prison guards.


 


Governor signs off on strict gift ban

Bribe scandal, `election fear' tied to passage

By RAY LONG

Tribune staff reporter

August 29, 2002

SPRINGFIELD -- Gov. George Ryan approved a bill Wednesday to ban state and local government employees from soliciting campaign contributions from people or businesses they regulate, a measure proponents maintained would have discouraged the types of crimes committed in the licenses-for-bribes scandal.

The law also set a $100 limit on the value of gifts that public officials can receive.

It was the last bill Ryan signed out of a batch of 348 sent to him during the General Assembly's spring session.

Sen. Kirk Dillard (R-Hinsdale) called the solicitation ban a "common sense" approach that will apply to state inspectors and other employees whose duties include everything from oversight of barbershops to commercial driver's licenses.

"If this law were in place, it is likely that the secretary of state's licenses-for-bribes scandal could have been averted or there would have been many fewer individuals headed toward jail," said Dillard, a sponsor in the upper chamber.

Federal prosecutors have charged 57 people and convicted 46 in the Operation Safe Road scandal, which unfolded at the secretary of state's office when Ryan ran it and raised at least $170,000 in bribes that wound up in his campaign fund.

The solicitation ban was first championed by Democrat Patrick Quinn, who lost to Ryan in the 1994 race for secretary of state.

Now Quinn is running for lieutenant governor, a job Ryan once held.

Rep. John Fritchey (D-Chicago), who pushed the bill through the House several times only to see it die in the Senate, said a powerful force that helped win passage in both chambers this year was "election fear."

"A lot of legislators did not want to go back to their districts without doing something to address the scandals that have been dominating the headlines," Fritchey said. "It's a bright day for reform, but it's unfortunate that it took a complete loss of faith in state government for us to get this passed."

Ryan and other statewide officials have issued executive orders that put in place similar bans on the solicitation of campaign contributions, but lawmakers pushed to ensure such bans now will have the force of law. A violation is punishable by up to a year in jail.

The new law also will apply to local government workers, Dillard said.

"In a city, an elevator inspector cannot solicit contributions from the owner of a big downtown high rise," Dillard said.

The gift limit of $100 is a response to confusion in the state's gift ban act, which had prohibited accepting gifts of anything beyond "nominal" value.

It is aimed partly at lobbyists, who are well-known gift givers, but it has a broader reach that puts the limits on most people seeking official actions from public officials.

The new law sets the limit for state officials and provides guidelines for local governments, Dillard said.

Boy upset by bids for clemency
 
August 29, 2002
BY DAVE MCKINNEY SUN-TIMES SPRINGFIELD BUREAU
 
 

There is probably no 8-year-old boy in Illinois more upset right now with Gov. Ryan than Jordan Evans.
Just before turning 2, Jordan was present when his pregnant mother, Debra Evans, and her 10-year-old daughter, Samantha, were murdered in the family's Addison apartment in 1995. His mother's nearly full-term fetus was cut from her body and kidnapped along with his 8-year-old brother, Joshua, whose body was recovered later in a Maywood alley.
Jordan was found unharmed in the apartment, and his infant brother, Elijah, was later rescued by police. Now Jordan knows that two of the people convicted and sentenced to death for the gruesome crimes against his family--Jacqueline Annette Williams and Fedell Caffey--want the governor to spare them from execution.
"He's very upset about it," said Jordan's grandfather and guardian, Sam Evans. "He said, 'What can we do? I'll talk to the president. Let me talk to somebody.' I let him know in this case, it wouldn't be the president; it would be the governor. He said, 'I'll talk to him, too. I'll tell him they wouldn't let my mom live, so why should he let them live?' "
In clemency petitions newly filed with the Prisoner Review Board, Williams and Caffey argued they should not be executed by the state because they were convicted and sentenced under a criminal justice system that Ryan has described as deeply flawed.
Since spring, the governor has openly hinted that he might be willing to reduce the death sentences of all 160 Death Row inmates to life in prison because of his concerns that there may be other innocent people beyond the 13 former Death Row inmates who have been exonerated.
Ryan's logic, however, confounds Sam Evans, who lives with Jordan and Elijah near the southeastern Illinois town of Lawrenceville, 230 miles south of Chicago.
"Why do we have the jury system? Why do we have the system we have if you're going to have a man who happens to be governor, and he can, with a twist of his pen, change the whole thing? I totally disagree with that," said Evans, who said he believes the governor's interest in the issue is partly designed to divert attention from the licenses-for-bribes scandal.
"He couldn't have come up with a better thing to change the focus, to get them off his back," Evans said.
Evans has sought a face-to-face meeting with the governor but so far has gotten no response. If the governor would meet with him, Evans said an Eagles club in his town has offered to sponsor his trip to Springfield.
"He has just kind of blown all of us off," Evans said. "I was going to go up to DuPage County and get some of the more gruesome pictures of my daughter and my grandkids to show them to the governor and ask him, if they were his daughter and grandkids, would he still feel the same way?" Evans said.
"If they'd been given the death penalty, would he want them to be free of that? In his heart, I just can't believe he would."
Ryan spokesman Dennis Culloton said the governor has empathy for the Evans family but has no record of any request for a meeting. Regardless, Culloton said Ryan would prefer that families express their concerns directly to the Prisoner Review Board.
"In terms of meeting with the families of victims, the governor is not planning on doing that at this point," he said. "Mr. Evans has been through an absolute parent's nightmare and a grandparent's nightmare and is entitled to express his opinion whenever and wherever he wishes. The governor respects that."
Culloton said it is a "cheap shot" to assert that the governor's interest in capital punishment is merely a diversion from his other problems. "His whole tackling of the capital punishment system has not been because of his concern for heinous criminals. It's been because of his concerns that the system has made so many errors almost to create greater tragedies 13 times," Ryan's aide said.
In justifying why they should have their death sentences set aside, Williams and Caffey said they were convicted and sentenced without benefit of several criminal justice reforms proposed by a Ryan-appointed commission on the death penalty.
Williams, who is black, contended she was represented by an inexperienced attorney, judged by an all-white jury not polled about their views on racial issues, was not videotaped during her encounters with police and received a harsher sentence than another participant in the crimes.
Caffey argued that his jury was not given proper instructions on how to weigh eyewitness testimony, the death sentence and statements Joshua Evans made implicating him before the boy was killed, among other things.
DuPage County State's Attorney Joe Birkett, whose office prosecuted the pair, said he will fight to keep Williams and Caffey on Death Row and added that Ryan would be abusing his pardon power if he commutes their sentences. "This is one of the most heinous displays of violence I've seen in my lifetime," said Birkett, the GOP nominee for attorney general.
As the debate swirls out of his reach, Jordan Evans doesn't remember as much about the killings as he once did, his grandfather said.
"Jordan asked me, 'Grandpa, do you think my mom would be mad because I don't remember all the stuff when she was killed?' I just let him know that his mom would be glad he don't need to carry that around with him."

Privatization arguments postponed
until Wed., Sept. 11, in Grundy County
August 26, 2002
THE GOVERNOR'S ATTORNEYS unsuccessfully argued that the TRO should be lifted because of an emergency situation. They had maintained that the FY03 budget enacted by the General Assembly was based on the assumption that these services would be privatized, and that significantly less money had been appropriated than is required to have them provided by DOC employees.
Full arguments on Gov. Ryan's privatization plan begin in Judge Peterson's courtroom Wed., Sept. 11. 
 
 
 

Governor vetoes higher costs for prison goodies
 
24 Aug 2002
 
Springfield(AP) - Gov. George Ryan says prison inmates should not be charged more for their cigarettes and snacks.
   Ryan vetoed a bill Friday that would have raised prices on items sold at prison commisaries. It allowed an extra 35 percent charge on tobacco products and 25 percent on all other products. Most of the profits would have been used to pay wages and benefits for commisary and cafeteria employees.  
     But Ryan plans to hire private companies to handle those duties. He says the extra money won't be needed to pay them.
  The state's main government- employee union is challenging Ryan's plan to privatize prison jobs.
   Lawmakers could override Ryan's veto.

Ryan gives another legislator high-paying job
 
By Kurt Erickson
Statehouse bureau chief
23 August 2002
 
SPRINGFIELD -- Gov. George Ryan has quietly appointed yet another soon-to-retire Republican lawmaker to a lucrative position in state government. Just a month after handing a more than $100,000 per year post to one GOP senator who was poised to leave office, the governor nominated state Sen. Walter Dudycz, R-Chicago, to become executive director of the Illinois Racing Board. The move, like at least one other Ryan appointment, could provide a significant boost to Dudycz's taxpayer-paid pension. Dudycz, a 52-year-old former police detective, was set to leave office in January after 17 years because his legislative district was redrawn to favor the election of a Democrat. With the appointment, which takes effect Sept. 1, Dudycz's salary at the horse racing regulatory board will exceed $103,000 -- a more than $25,000 raise from his salary as an assistant majority leader in the Senate. The appointment is just the latest in a string of behind-the-scenes maneuvering by Ryan in the waning days of his scandal-plagued administration. In July he appointed former state Sen. Thomas Walsh, R-Westchester, to a seat on the Illinois Labor Relations Board. State Sen. Robert Madigan, R-Lincoln, received a significant pension boost by serving for one year on the Illinois Industrial Commission -- a position he vacated July 5. His replacement on that board will be Ryan's top lawyer, Diane Ford. Another top Ryan staffer, legislative affairs director Michael P. Madigan, will move to the Labor Relations Board when Ryan leaves office in January. Like the Ford appointment, the lack of a formal announcement of Dudycz's hiring stands in contrast to the last time Ryan appointed a racing board director. Just three years ago, Ryan issued a glowing press release announcing the appointment of Jack L. Kubik to head the board. "Jack Kubik is an experienced legislator and businessman," Ryan said at the time. "I look forward to working with him and using his vast experience to help make Illinois racing strong and vibrant." This time, however, the governor issued no formal statement. Even some Senate Republican staff members were unaware of Dudycz's departure when contacted Thursday morning. The governor, through spokesman Ray Serati, had this to say about Dudycz: "He brings a broad wealth of experience to this position. He was in the legislature, so that should help. He has expertise in detective work, so that should help." The racing board signed off on Dudycz's hiring in a special meeting in Chicago on Wednesday, said interim executive director Mark Laino. Dudycz did not return telephone messages left at his Chicago legislative office.
 

Ex-Ryan aide tapping friends for cash
 
August 23, 2002
BY TIM NOVAK AND STEVE WARMBIR STAFF REPORTERS  
 
Gov. Ryan's former top aide, Scott Fawell, has mailed letters to state workers, lobbyists and friends asking them to help pay his legal bills so he can fight charges that he illegally used state resources to elect Ryan governor.
Fawell is trying to raise money for his defense fund at the same time the governor's friends are trying to amass a defense fund to help Ryan pay legal bills from the on-going federal investigation that has snared Fawell and other Ryan cronies. Ryan has not been charged, but his campaign fund, Citizens for Ryan, is charged with racketeering.
"I'll give George money, but I won't give Fawell any,'' said one lobbyist who got Fawell's letter asking for a $1,000 donation. Others got letters asking for $250.
In Fawell's letter, a copy of which was obtained by the Chicago Sun-Times, he says he cannot afford his growing legal bills. Fawell was indicted in April, and his wife filed for divorce a few days later.
Since his indictment, Fawell has been on a paid leave of absence from his $195,000-a-year job as the CEO of the agency that runs McCormick Place and Navy Pier.
"As you know, in America you are presumed innocent of a crime until proven guilty,'' Fawell wrote in the letter. "I have found myself facing the greatest challenge of my life proving those words. In order to prove my innocence I need the best legal representation I can afford. The government has an unlimited budget--our tax dollars--but I don't.
"I have already expended over $150,000 of my own money, but this will not begin to pay my expenses. I unfortunately do not have the means to continue to fight this battle without the help of my friends. It is only with your assistance and generosity that I will be able to pursue this battle. I am asking for your contribution of $1,000 to pursue this goal. Friends of mine will be hosting an evening of cocktails and hors d'oeuvres at Tavern on Rush, 1031 Rush St. on Tuesday, Sept. 17 from 5 p.m. to 7:30 p.m.
"I hope I can count on your participation. It is only with the support, friendship and understanding of those around you that make tough times like these just a little more bearable.''
Fawell's attorney Edward Genson declined to comment on the letter.
Fawell is charged with using state employees and equipment for Ryan's campaign for governor four years ago. Fawell and the governor's campaign fund are set to go on trial in November.

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Birkett calls for debate with Madigan
Republican challenges opponent for attorney general on issue of public corruption
 
By MIKE RAMSEY
COPLEY NEWS SERVICE
22 Aug 2002
 
CHICAGO - Joe Birkett, the Republican nominee for Illinois attorney general, on Wednesday demanded a debate with his Democratic opponent, Lisa Madigan, on a single subject: public corruption.
Meanwhile, Jim Ryan, the GOP candidate for governor, continued crying foul over the Fraternal Order of Police's endorsement of Democrat Rod Blagojevich.
The organization, representing 34,000 officers, this week also snubbed Birkett, the state's attorney of DuPage County, in favor of Madigan, a state senator from Chicago.
"My opponent doesn't have any experience investigating or prosecuting public corruption cases - zero experience," Birkett said in issuing the debate challenge. "It's important that the public understands who is the experienced prosecutor in this race."
Birkett's toss of the gauntlet comes as Madigan faces questions about how she would respond to corruption allegations against her powerful father, Illinois House Speaker Michael Madigan of Chicago, if she became the state's top legal officer. The elder Madigan faces federal inquiries into how he has directed some public funds and used his influence.
Lisa Madigan's campaign last week suggested a broader series of debates with Birkett. Melissa Merz, a spokeswoman for Madigan, stopped short of endorsing Birkett's single-issue format and noted the Republican isn't immune from the type of scandals that have hit the GOP harder this election cycle.
The biggest albatross for Republicans is the continuing federal investigation of graft that occurred within the secretary of state's office under Gov. George Ryan in the 1990s. Birkett previously hired political consultant Roger Stanley, who is among people indicted in the case, Merz said in a written statement.
"Senator Madigan is planning to discuss ethics and public corruption in every debate and public appearance she does with Joe Birkett," she said.
Both Birkett and Madigan have suggested similar anti-corruption plans for the attorney general's office, including creation of a special division to fight wrongdoing by officials and a program to educate state workers about ethics.
Like Madigan, Birkett wants to debate multiple times before the Nov. 5 election.
Also Wednesday, Jim Ryan received a standing ovation for a speech to the Illinois Association of Chiefs of Police semiannual meeting in suburban Rosemont. That was a better reception than the one he got a day earlier from the FOP.
Ryan again dismissed the latter group's endorsement of Blagojevich, calling it a "transparent" deal between the Democratic congressman from Chicago and union bosses.
"I've had so many calls from police officers apologizing," said Ryan, a former DuPage County prosecutor who is finishing his second term as attorney general. "I tell them, 'You don't have to apologize.' This is politics as usual in Illinois. This is what you expect."
FOP officials deny Ryan's charge, as did Blagojevich spokesman Billy Weinberg, who said the attorney general's remarks insulted police officers.
"I think it shows a tremendous lack of judgment and really a lapse in responsibility from the state's chief law enforcement officer," Weinberg said.
Also speaking before the police chiefs were Birkett and the GOP candidates for U.S. Senate and Illinois secretary of state, Jim Durkin and Kristine O'Rourke Cohn, respectively. Democratic candidates were invited, too, but only Lisa Madigan appeared before the group, according to George Koertge, executive administrator of the IACP.
The IACP, which has 810 active members, doesn't endorse political candidates, he said.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.
 

Blagojevich wants some control of Democratic effort
 
Bernard Schoenburg
22 Aug 2002
 
The Democratic Party of Illinois, under the leadership of chairman MICHAEL MADIGAN, is trying to set up a coordinated campaign operation to work on voter registration and get-out-the-vote efforts. The party's candidate for governor says he backs the idea in principle.
But, added U.S. Rep. ROD BLAGOJEVICH, he wants to make sure his campaign has some control over the effort before it donates funds.
"The money isn't the biggest issue by any means," Blagojevich said in Springfield this week. "In fact, it's probably the least important issue. It's the role that our campaign will have in the coordinated campaign to have some input on the substance, the message of the campaign, and the operation of the campaign."
The effort "has to have input from all the different campaigns, and it cannot be an abdication of our campaign to some other campaign. ... Wish us luck. I'm cautiously optimistic."
Could this be another example of a less-than-warm-and-fuzzy relationship between Blagojevich and Madigan, who clearly wants his daughter, state Sen. LISA MADIGAN, to be the next attorney general?
You be the judge.
At the Illinois State Fair last week, Madigan and Blagojevich traded barbs about Madigan's role in funneling $300,000 to a Springfield livestock show - which Madigan said was good economic development, and Blagojevich labeled pork. But Blagojevich also praised the statewide effort to be put together by Madigan.
Blagojevich also said the party would stand behind its leader - unlike state Republicans recently.
"We're going to have the best darn coordinated campaign in the history of Illinois," Blagojevich said.
Madigan spokesman STEVE BROWN said the coordinated effort will be paid for by the campaigns of statewide candidates, though he would not say how much is being asked of each.
"The message will be, 'Vote for Democrats,'" Brown said. "Why should there be any problem?"
"As with any campaign," Brown also said, "People are trying to do it with the least contribution possible."
Campaign sources say that the party wants $200,000 from the Blagojevich camp and the deal was close to getting done.
Meanwhile, there are various offices in the state where Democratic candidates are working out of the same buildings. U.S. Sen. DICK DURBIN and statewide candidates Blagojevich, Secretary of State JESSE WHITE, and treasurer candidate TOM DART all have space in an old house in the 2900 block of South Koke Mill Road in Springfield. Durbin also has space in a downtown Chicago building where Dart and Lisa Madigan have campaign space, and Durbin helped DuPage County Democrats open a converted beauty salon in Lombard as a headquarters for local and statewide candidates this week.
Oblinger praises Bomke
CARL OBLINGER, the longtime Republican who switched to the Democratic Party to run for the Illinois House in the 100th District, has put some of his bipartisanship in writing.
In a news release issued last week, after Gov. GEORGE RYAN had named three new members to the Health Facilities Planning Board, which ultimately voted to close the Lincoln Developmental Center, Oblinger objected to the governor's "stacking the deck" against the facility.
But he also had some praise for Republican state Sen. LARRY BOMKE, R-Springfield, in the process.
"The key to the long-term survival of the center should be determined by a new governor and legislature, not by a lame-duck governor and his friends," Oblinger said. "I will be a voice for the patients of the Lincoln Developmental Center and their families in that new legislature."
The next line of the news release is: "'This should not be a partisan issue,' said Oblinger, as he praised Republican Sen. Larry Bomke's ongoing efforts to save the center."
"I was surprised at it," DON TRACY, the Democratic Springfield lawyer running against Bomke in the new 50th Senate District, said of Oblinger's praise of the Republican. "I mean, we're emphasizing party unity. But LDC is a difficult issue, and there are unusual alliances all around."
Oblinger says he's for Tracy, who he said can provide "good, professional representation." But on LDC, he said, Bomke has shown "a lot of courage."
"When credit is due, it's due," Oblinger said.
Bomke has been a plaintiff in a lawsuit seeking to keep LDC open. Tracy said he called for mediation instead as a better way to achieve a resolution.
"The governor decided to downsize it, and Larry sued, and now it's closed," Tracy said, referring to the decision by the health facilities board to close LDC. "It sure seems like there's all-out war between a Republican senator and a Republican governor
"Senators are there to work solutions out," Tracy said. He thinks Bomke was ill-prepared to defend the center when its funding was debated on the Senate floor.
Bomke said all other efforts were exhausted before the suit went to court.
"It would have been closed months ago had we not filed the lawsuit," Bomke said.
Tracy also noted the center is not in Bomke's current district. But Bomke has said parents of LDC residents are in his district.
RICH BRAUER of Petersburg, Oblinger's opponent in the new 100th House District, said he has met with Bomke to discuss LDC and didn't agree with the governor's placing three new people on the health planning board. But he said the closure is a dead issue.
"Now, what are we going to do to replace it?" Brauer asked, noting the millions of dollars the facility has meant to the Lincoln economy.
Condolences
It's been a very sad week in The State Journal-Register newsroom, where we feel as if we've lost a family member.
JOHN FARGO, 55, died Saturday in a lawn mowing accident. His wife, CHARLYN, the energetic agribusiness editor of the newspaper, was still working hard covering the Illinois State Fair at the time.
They have a great 12-year-old daughter, KATIE, who could be seen last week tooling around the fair with her mom. This is all so unbelievable.
John Fargo was memorialized at the funeral service Wednesday as a loving husband and father and a strongly religious man who willingly and quietly took on burdens to help others. Our hearts go out to the Fargo family.
Memorial contributions can be made to an educational fund for Katie, in care of Calvary Temple, 1730 W. Jefferson St., Springfield 62702; or to the church.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or Bernard.Schoenburg@sj-r.com.

Jim Ryan scorns FOP's backing of Blagojevich
 
August 21, 2002
BY DAVE MCKINNEY AND SCOTT FORNEK SUN-TIMES STAFF REPORTERS  
 
SPRINGFIELD--The state's largest police organization is run by a Republican, and the majority of its members surveyed favored Republican Jim Ryan for governor.
Yet, the Illinois Fraternal Order of Police embraced rival Democrat Rod Blagojevich Tuesday.
That show of support from the 34,000-member group prompted ridicule from the Ryan campaign and represented a discouraging setback for him, given his career in law enforcement spans more than two decades.
The state FOP hasn't endorsed a Democrat for governor since 1990, but did so this year its leaders said because the Chicago congressman had a "vision" and "fire in the belly" that Ryan lacked.
"Rod Blagojevich spoke clearly and as a man with a vision,'' said Ted Street, president of the state FOP and a Republican.
The leadership committee that chose Blagojevich also was swayed by polls showing Blagojevich well ahead of Ryan and concerns that Ryan had "not given close attention" to the licenses-for-bribes scandal that blew up in the secretary of state's office when led by Gov. George Ryan, Street said.
If elected governor, Blagojevich promised the group he would hire 1,000 police officers statewide, outfit more police departments with life-safety equipment like bulletproof vests and enhance pension benefits. Blagojevich said his program could cost as much as $35 million and be paid for by "reprioritizing spending" in state government.
Jim Ryan had been banking on the state FOP's support to underscore his law-and-order credentials and to interrupt the procession of big-name endorsements that have gone Blagojevich's way all summer long.
"This is a charade," Ryan spokesman Dan Curry said. "This is a hollow endorsement engineered by the leaders of the union."
In response, Blagojevich accused Ryan of showing "disrespect" to police officers and noted a different tune from the attorney general, who was backed by the state FOP in last spring's Republican primaries.
"This is just another typical one-note response by Jim Ryan, another sour note. He will evidently continue to sing the blues when these endorsements don't go his way," Blagojevich said.
Street confirmed that the state FOP, which he stressed is a professional organization and not a union, polled its 17 districts across the state, and six of the nine that responded supported Ryan. While Street said that isn't enough to say with certainty all rank-and-file cops support Ryan, the Republican contended he and not Blagojevich is their favorite.
Ryan was not the only career prosecutor with ambitions for higher office to get snubbed Tuesday. The organization also endorsed Democrat Lisa Madigan for attorney general over DuPage County State's Attorney Joe Birkett. Street praised Birkett's credentials but said one of several considerations in endorsing Madigan was a concern that pro-police legislation might get sidetracked in the Illinois House under her father, Speaker Michael Madigan.
"That was a consideration," Street said, adding that neither he nor the organization felt threatened in any way by the speaker or his staff.

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High hopes as Democrats rally
But some worry a little about overconfidence
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
21 Aug 2002
 
A day after Illinois Republicans assembled in Springfield and exposed lingering intraparty divisions, the state's Democrats sought to overcome their own differences and convey the image of a cohesive party that, they say, is destined for a November sweep.
At "Democrat Day" events at the Crowne Plaza Hotel and the Illinois State Fair, an energized corps of party loyalists rooted for the statewide ticket, led by U.S. Sen. Dick Durbin and gubernatorial candidate Rod Blagojevich. Illinois hasn't elected a Democratic governor since 1972.
"Get one of these out of your closet and get ready for a clean sweep!" said state Democratic Party chairman and House Speaker Michael Madigan as he waved a broom during a rally on the fairgrounds.
"It's going to be a clean sweep, top to bottom," said Comptroller Dan Hynes, who is seeking re-election.
Others warned that while Republican scandals are giving Democrats their best chance in years, they shouldn't take a Nov. 5 victory for granted.
"It's easy for us to become complacent and say we have it made," said Secretary of State Jesse White, who is running for re-election. "We don't want to fall short of the mark when it comes to this election."
Pat Quinn, Blagojevich's running mate for lieutenant governor, said complacency isn't likely to be a problem for Illinois Democrats this year.
"I think when you've lost seven straight elections and you haven't elected a governor in 30 years, it's hard to be complacent," Quinn said. "It's important, I think, to have an agenda of issues that you really believe in and you're committed to and you're going to execute if you're elected."
Blagojevich's main opponent in the governor's race is Republican Jim Ryan, the state attorney general. Both are looking to succeed GOP Gov. George Ryan, whose four years have been stained by scandals that took place in the secretary of state's office when he was in charge there.
George Ryan and Jim Ryan aren't related.
At the Democratic rally, Blagojevich mocked Jim Ryan for "trying to suggest that he is the agent for change."
"Well, it ain't change if you replace one Ryan with another Ryan," said Blagojevich, a Chicago congressman. "You want to know what change is? Elect a guy with a name like Blagojevich. That's change."
When contacted later, Jim Ryan spokesman Dan Curry said, "What the people of Illinois are craving for is a new style of leadership. It's not a new political party. It's a change in the character of our leadership."
Curry said the question is whether Ryan or Blagojevich, whom he called "the inexperienced son-in-law of a Chicago ward boss," can do the better job. Blagojevich's father-in-law is Chicago Ald. Dick Mell.
Blagojevich peppered his remarks Thursday with references to singer Elvis Presley and his hits. Presley died 25 years ago today.
"It's been 30 years since we've elected a governor of our party. Thirty years," he said. "Thirty years ago, Elvis was alive and he was doing Vegas. For 30 years, we've been singing 'Heartbreak Hotel,' but when we win in November, the Republicans will be singing 'All Shook Up.'"
"We are going to shake up a system that serves itself instead of the people," Blagojevich added.
Democrats throughout Illinois are single-minded in their efforts to regain the Executive Mansion and other posts, Blagojevich said.
"There will be differences from time to time. It's family squabbles," he said. "But the priorities, the big-picture stuff is what matters, and that's what unites all of us."
On issues such as education and the economy, "there is no disagreement," he added. "Our party speaks as one."
U.S. Sen. John Edwards, a North Carolina Democrat who is considered a possible presidential candidate in 2004, was among the speakers at Thursday's Democratic rally. He criticized President Bush and praised fellow senator Durbin.
Durbin told fairgoers that the warm, sunny weather on Democrat Day at the fair was more favorable than Wednesday's dreary weather on Republican Day.
"What a difference a day makes," Durbin said, singing the opening line of a 1950s tune.
Wednesday was dark, gray and dismal, he said, comparing the Republican event to a funeral. In contrast, he said, Thursday was "a political birthday" for Democrats.
"God knew the difference between Republicans and Democrats," Durbin said. "Let's go get 'em."
Curry, the Ryan spokesman, had a different view of Wednesday's weather at Republican Day.
"By the end of the day it was sunny, and that's exactly what's going to happen in this election," he said.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Union defends Blagojevich endorsement
 
By BERNARD SCHOENBURG
POLITICAL WRITER
21 Aug 2002
 
Fraternal Order of Police leaders said Tuesday their group's endorsement of Democrat Rod Blagojevich for governor wasn't unanimous, but they bristled at accusations from the camp of Republican candidate Jim Ryan that they are "union bosses" who sold out their members.
"That's disrespectful, and it's wrong," Blagojevich said at a Statehouse news conference to announce the backing of the law enforcement group, which has more than 34,000 members. "People who put their lives on the line every day to protect us and protect our families and protect our communities deserve better than insults from Jim Ryan."
Some member organizations of the state FOP are union groups, state president Ted Street said, but other statewide members are not in any union. He called the statewide FOP lodge a professional organization, not a union.
Ryan spokesman Dan Curry said the endorsement indicates that "all that is good about law enforcement succumbed to all that is bad about union bosses."
The FOP endorsed the Democratic statewide ticket, including U.S. Sen. Dick Durbin of Springfield and all six candidates for state constitutional office - including state Sen. Lisa Madigan of Chicago over Republican Joseph Birkett, the DuPage County state's attorney, for attorney general.
Asked whether the group was concerned that it might not get legislation through the Illinois House, where Madigan's father, Michael, is speaker, if she were not endorsed, Street said her father's post "was a consideration."
"That factor was one of several factors, but not the predominant factor, in my decision-making," Street said, adding that no promises or threats were made about legislation.
Melissa Merz, spokeswoman for Lisa Madigan, said that while Birkett has worked with police, "today's endorsement ... shows that the people who know Joe Birkett the best have chosen to support Senator Madigan as Illinois' next attorney general."
Curry said both Lisa Madigan and Blagojevich have little law enforcement experience. Both, he said, "are the products of a Chicago machine that is manipulating organized labor leadership to produce illogical endorsements."
Street acknowledged that Ryan does have some support among the FOP's rank-and-file.
Unscientific polls were taken of members in nine of the FOP's 17 statewide regions of the group, Street said, and in six of those regions, majorities backed Ryan. Two of the three groups where polling showed support for Blagojevich were the Chicago FOP and Illinois State Police, he said.
"Polling is only one element of the endorsement procedure," Street said.
While he said either Blagojevich or Ryan would probably make a good governor, he also said Blagojevich presented more detailed plans.
Some FOP officials thought Ryan's message "was unclear and not definitive," and some were concerned that Ryan had not been aggressive in investigating allegations of corruption in state government, Street said.
The fact that Blagojevich is leading in most polls was "only one of maybe two dozen criteria that we considered," Street added.
Blagojevich's plans include establishing a grant program to let local police departments hire 1,000 new officers. He also wants to improve access to life-saving equipment such as bulletproof vests and ensure adequate pensions. He estimated the cost of those improvements at $20 million to $35 million annually and said he could cut wasteful spending to pay for them.
Blagojevich said he favors keeping the moratorium on the death penalty for the time being. Street said his group opposes the moratorium, but that is not one of the organization's top priorities.
In the new 19th Congressional District, the FOP endorsed U.S. Rep. John Shimkus, R-Collinsville, over U.S. Rep. David Phelps, D-Eldorado.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

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Grundy judge upholds TRO
barring privatization bids
August 19, 2002
THE GOVERNOR'S ATTORNEYS unsuccessfully argued that the TRO should be lifted because of an emergency situation. They had maintained that the FY03 budget enacted by the General Assembly was based on the assumption that these services would be privatized, and that significantly less money had been appropriated than is required to have them provided by DOC employees.
Full arguments on Gov. Ryan's privatization plan begin in Judge Peterson's courtroom Tuesday, Aug. 27.

World of difference between GOP, Democrats at fair
 
BY BERNARD SCHOENBURG
POLITICAL COLOMNIST
17 Aug 2002

Despite the clear swipe that Illinois Democratic Party Chairman MICHAEL MADIGAN took at gubernatorial candidate ROD BLAGOJEVICH last week when talking to reporters, it was clear that, from the perspective of the rank-and-file, Democrat Day was a whole lot more fun than Republican Day at this year's Illinois State Fair.
The crowd for the Democrats at the director's lawn was huge, the talk of a sweep in November seemed to build on itself, and the candidates spoke with confidence.
"I've been coming out here for 25 years," said GARY BUDD, Springfield Township supervisor. "I've never seen it this big."
So when state Sen. VINCE DEMUZIO, D-Carlinville, acting as emcee, introduced appellate Justice SUE MYERSCOUGH as the next member of the U.S. Supreme Court, well, it fit in with the enthusiasm.
Actually, she's in the hunt for a seat on the Illinois high court, taking on incumbent Republican Justice RITA GARMAN.
And when U.S. Sen. DICK DURBIN likened Republican Day to a political funeral, and Democrat Day to a "political birthday," with good weather for the latter resulting because "God knows the difference between Republicans and Democrats," it was a stretch people seemed to like to hear.
Madigan's swipe at Blagojevich, saying he could talk about Blagojevich's "indiscretions" but won't, raised eyebrows but yielded no specifics. Madigan was getting back at Blagojevich for badmouthing Madigan. The message? Don't mess with the speaker.
Republicans were in a much more somber mood, and what better way to get there than to have embattled Gov. GEORGE RYAN tell everyone within earshot what a great record he has. Among other things, the licenses-for-bribes scandal allegedly perpetrated by his buddies and top aides, the governor said, is stuff nobody should care about. After all, it involves the secretary of state's office, Ryan said, not the governor's office.
Good try.
But Republican candidates - other than Comptroller candidate THOMAS RAMSDELLL, who had to work at his law practice in Chicago - made a valiant effort to try to look forward, not back. And JIM RYAN showed some of the spirit of his days as a champion amateur boxer, trying to hold the troops together.
"What happens in the early rounds of a fight doesn't matter much," he said. "That's when there's all the calculation, and people kind of dancing and feeling each other out. I'll tell you when it matters. It matters in the later rounds. That's when people take off the gloves. That's when you come out of the corners, plant your feet and fight back."
Crunch time is coming.
Questionable language
It's understandable that MARGARET BLACKSHERE, president of the Illinois AFL-CIO, is enthusiastic about the Democratic ticket. And I try not to be a prude. But at the Democrat Day rally at the state fair, with perhaps 1,000 people, including a bunch of young kids, in attendance, she probably didn't need bad language to get her point across.
"Don't believe the bulls---," she said from the platform in her speech. "This is a dream ticket."
"I think it fires up the troops," said AFL-CIO spokesman BILL LOOBY. "She's a forceful speaker, and she wanted to use forceful words."
But Blackshere is also a former kindergarten teacher. She might consider finding a use for one of those little bars of soap that Republican secretary of state candidate KRIS COHN has been handing out.
Lucky for some in the crowd at the Democratic event, the sound system didn't seem to generate enough volume to reach all in attendance.
Help for Blagojevich
The Illinois Trial Lawyers Association held a fund-raiser for Blagojevich last week at the group's Springfield headquarters, drawing a good crowd.
ITLA executive director JIM COLLINS estimated that 200 to 250 people attended. Ticket prices ranged from $100 to $1,000.
The group, Collins said, "has never had an opportunity, at least in recent history, to have a rapport with the governor." The incumbent and two previous Republican officeholders, he said, "pretty much had a closed-door policy" in connection with the group.
"We feel that Rod will have an open ear to our issues. His record in Washington and Springfield has been supportive of us. He is a lawyer, which is important also.
"Obviously, (Jim) Ryan is, too, but we're just excited to have an opportunity to have a relationship with a governor of the state of Illinois who will listen to us on the issues that concern us."
One of those issues is the re-enactment of the Structural Work Act, or scaffolding act, which Blagojevich is for and Ryan is against. While the business lobby says the act would hurt the business climate, Collins said that climate is affected by many things.
"I find it hard to believe that the Structural Work Act would be at the top of the list (of things) affecting the business climate," he said. "They ought to look at corporate responsibility and things like that before they even start thinking about the Structural Work Act in Illinois."
The act provides avenues of compensation for injuries outside regular worker's compensation. Labor folks say it's not duplicative, but business types say it can lead to costly and frivolous lawsuits.
Who'll do the job?
Food for thought comes from part of a CBS 2 poll aired last week on WBBM-TV in Chicago. It asked which of the candidates for Illinois governor is best suited to clean up corruption in Illinois state government.
The results: Jim Ryan, 29 percent; Rod Blagojevich, 39 percent; CAL SKINNER (the Libertarian candidate), 4 percent; someone else, 24 percent; and not sure, 5 percent.
The poll of 1,250 adult respondents (at least the people answering the automated calls were supposed to be adults) was done by Survey USA. The margin of error was 3.1 percentage points.
Evans raises funds
U.S. Rep. LANE EVANS, D-Rock Island, grossed about $45,000 last weekend at a fund-raiser billed as the second annual Democratic Unity Dinner.
Statewide candidates at the Crowne Plaza Hotel for the event included U.S. Sen. DICK DURBIN, attorney general candidate LISA MADIGAN, Comptroller DAN HYNES and treasurer candidate TOM DART, said JEREMIAH POSEDEL, Evans' campaign manager.
BLAIR HULL of Chicago, who intends to run for U.S. Senate in 2004, also had a good turnout at his hospitality suite before the main event, Posedel said.
Included in the entertainment was a six- or seven-minute videotape that contained a section on the ethical troubles of the GOP. It referred to news articles from across the state and reportedly contained a frowning picture of Gov. Ryan and pictures of members of the statewide GOP slate with computer-generated frowns in place of their real mouths, Posedel said.
"Everyone I talked to said it was in good humor," Posedel said.
"Obviously, I wasn't there," responded BRAD GOODRICH, executive director of the Illinois Republican Party. "But it sounds like curious humor to me."
Meanwhile, Posedel said a poll taken for the Evans campaign found some high-level Democrats in good shape in the new 17th Congressional District.
The poll, done by Cooper and Secrest June 24-25, showed Blagojevich with a 51-31 percent advantage over Jim Ryan, with 18 percent undecided, in the race for governor. In the U.S. Senate race, incumbent Durbin held a 55-25 lead over Republican JIM DURKIN.
However, Durkin said the 17th is a Democratic area. So with Durbin in the 50s, he said, "we're holding our own. ... It's going to be a very fluid election. October is when it's going to count."
Live callers interviewed 504 likely voters. Posedel did not give numbers in Evans' race against Republican PETE CALDERONE of Galesburg. Calderone and Durkin were among Republicans at the GOP state fair rally.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

 

Blagojevich, Madigan clash on expo money

 

By BERNARD SCHOENBURG
POLITICAL WRITER
16 Aug 2002
 
An unfettered show of unity that Democrats might have exhibited during their designated day at the Illinois State Fair was marred a bit Thursday as state party chairman Michael Madigan and gubernatorial candidate Rod Blagojevich clashed on funding for a Springfield livestock show.
Madigan also spoke of unidentified "indiscretions" on the part of Blagojevich.
Blagojevich, a congressman from Chicago, said that $300,000 Madigan included in the state budget for the International Livestock Exposition was a "misplaced priority" and a "product of arrogance."
Madigan portrayed the livestock show as an economic development tool that Springfield Mayor Karen Hasara had sought, and on Thursday, he distributed to reporters copies of the pro-show letter he received from Hasara on May 8.
"I'm not an arrogant person," said Madigan, who is House speaker as well as party leader. "Clearly, I occupy a position where I could be arrogant if I wanted to be, but I strive not to be."
He called the differing views of the livestock show a "legitimate difference of opinion between Blagojevich and I."
"Now," Madigan added, "I don't plan to get into any criticism of Blagojevich. I could do that. I could talk about his indiscretions. But I'm not going to do that because I believe in solidarity within the political party."
Madigan would not elaborate on what he meant by "indiscretions."
Blagojevich and his wife made their way to the Democratic County Chairman's Association breakfast at the Crowne Plaza Hotel as reporters were talking to Madigan.
"I have no idea," Blagojevich said when asked what Madigan might mean. "I don't know what he's talking about. I'm the first one to admit that I'm not perfect, and . . . I'm sure somebody could make a case about that, but the bigger issue here is that we're a party that's united, and there are differences even between leaders of our political party, but they're not deep rooted or deep seated."
"I didn't think he was arrogant," Blagojevich added. "What I said was that that misplaced priority (the money for the livestock show) was a product of arrogance. There's a difference."
He said the $300,000 was a misplaced priority at a time "when we're cutting spending for schools, we're cutting spending for health care, we're cutting spending on public-protection issues."
"If I were governor, I'd veto that," Blagojevich said of the money for the show. He said at another point that he would veto it "if we're in a budget crisis."
The $300,000 is to be used for prizes at the series of horse shows and other events, which is promoted by Springfield lawyer John Narmont, who went to Notre Dame with Madigan. Narmont said next year's International Livestock Exposition will last five weeks at the state fairgrounds, going from late March through all of April.
In her letter to Madigan, Hasara quoted a figure of $2.7 million in economic impact on Springfield's local economy, not counting surrounding areas.
"In addition to the economic impact, the Expo provides an incredible variety of events, most of which could only be held at the Illinois State Fairgrounds," the letter states. "For this reason, it is an excellent way to showcase the versatility of one of the best fairgrounds in the country."
Narmont donated $200 to Hasara's campaign in January, but he and the mayor's chief of staff, Brian McFadden, said the donation had nothing to do with the letter.
Narmont called himself merely the "catalyst" for the show, adding, "I don't make any money off of it." His wife is part owner of a food stand on the fairgrounds, which he said donates food and drinks to judges and volunteers. While the stand makes some money during the show, it's about a break-even business year-around, he said.
Madigan and Narmont both said they know each other from college but do not socialize. And Madigan stressed that the livestock show got state funding for about 10 years before he ever became involved about a decade ago.
Last spring, the $300,000 was taken out of the Department of Agriculture budget, but Madigan used member initiative money to restore the amount through funding that goes to the Springfield Convention & Visitor's Bureau.
Madigan compared the appropriation with $2 million for Arlington Racecourse, which he said was directed there by Republicans.
Brian Reardon of the Department of Commerce and Community Affairs said that $2 million was announced in December because of the Oct. 26 running of the Breeder's Cup at the suburban Chicago facility. Of the amount, $1 million was for the Woodfield tourism bureau, and $500,000 a year for two years goes to the track for improvements. The money comes from a fund administered by the agency and backed by hotel-motel taxes, he said.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

 

Board votes to close LDC
Center's backers plan appeal
 
By MIKE RAMSEY
COPLEY NEWS SERVICE
16 Aug 2002
CHICAGO - The closing of Lincoln Developmental Center drew nearer Thursday with a state panel's endorsement of the plan.
Nonetheless, an attorney for opponents was expected to file a legal challenge in hopes of stopping the transfer of about 150 remaining LDC clients to other facilities.
The Illinois Health Facilities Planning Board unanimously approved a proposal by the state Department of Human Services to shutter the troubled center for developmentally disabled adults, as directed by Gov. George Ryan.
Melissa Wright, assistant director of Human Service's office of developmental disabilities, told board members that LDC has been in danger of losing its Medicaid certification 10 times since 1998 and has a history of neglecting severely retarded residents who need constant supervision.
"No other (state) facility comes anywhere near those kinds of statistics. Client protection has been the biggest problem," said Wright, who cited a string of accidental deaths at LDC.
Ryan has cut state funds to LDC after Aug. 31, a factor that also may have influenced the board. The legislature could restore funding to the Lincoln facility but it won't meet until November's veto session.
"Given the level of funding currently available at Lincoln, it is not an option to keep Lincoln open pending that action," John Stevens, legal counsel to the Bureau of the Budget, told the board during a nearly hourlong exchange.
Such financial arguments have no place in the panel's deliberations, according to the union representing LDC workers. Anne Irving, public policy director for Council 31 of the American Federation of State, County and Municipal Employees, said the Health Facility Planning Board's primary mission is to "figure out whether (services are) needed or not," not whether there's adequate funding for them.
An attorney for the union is expected to file an appeal in Logan County Circuit Court today and request that LDC be ordered to remain open pending a decision in the legal challenge, she said.
"It will be a matter of getting into court as quickly as we can," Irving said.
More than 40 supporters of LDC - many of them relatives of residents - attended the 9 a.m. board meeting after traveling to Chicago in a chartered bus from central Illinois. They contend the facility has provided good care and are worried that shifting patients to other locations will traumatize them.
Wright outlined the procedures DHS uses with input from guardians.
"It was cut and dried before we got here," complained 65-year-old Ron Gregory of Bloomington, whose son, Brian, lived at LDC for 10 years until recently. "(We came) in the hope that maybe these people or the board have been able to stand up to the governor and independently say, 'We have to do the right thing and keep LDC open.'
"But they couldn't stand on their own feet and act independently. They're puppets of the governor."
Ryan appointed three new members to the board this week amid speculation he was stacking the panel to do his bidding. The trio of newcomers, Phil Bradley of Springfield, Linda Root of Champaign and Clarence Nagelvoort of Chicago, voted "yes" with all of the other members.
The regulators were limited Thursday to asking questions of the petitioners - in this case DHS representatives - but received an official packet before the meeting that included opposition aired at public hearings. Some family members of LDC residents sought to skirt the tight restrictions by sending letters to board members, although such "ex parte" communications are illegal.
William Marovitz, a former state senator from Chicago who sits on the board, said he had read the letters out of respect for the families. He dismissed one official's warning that the letter-writing campaign would be investigated.
"I'm sure (the families) didn't have legal counsel," Marovitz said later. "I don't fault them one bit."
Board members did not disclose the reasons for their votes at the public meeting. For his part, Marovitz said he had relied on the official packet material and Wright's "thorough" description of how DHS will handle transfers of LDC residents.
Also Thursday, the board approved plans to close a 60-bed unit at Singer Developmental Center in Rockford and the George A. Zeller Mental Health Center in Peoria. Zeller became one of the casualties of the state's cash-strapped budget.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.
 

J. Ryan stuck in the middle
Our Opinion
State Journal Register
16 Aug 2002
 
THE ILLINOIS State Fair has long been known as a terrific source of fun, thrills and excitement.
But it's usually the Grandstand and the carnival midway, not the Republican tent, that provide the entertainment.
THE BEST sideshow this year came on Wednesday - Governor's Day at the fair - as past and would-be governors discussed how best to keep a Republican in the Executive Mansion without making too big a deal of the fact that there is one there now.
Gov. George Ryan, whose official title at this point might as well include the phrase "who has not been charged with any wrongdoing," told a meeting of the Republican State Central Committee on Wednesday that Republican candidates in this year's election, most notably gubernatorial candidate Jim Ryan, should stand on their record of "30 years of solid Republican leadership" and the economic gains it fostered.
Unfortunately, it also fostered more than 40 indictments in the federal investigation dubbed Operation Safe Road, the focus of which is corruption in the secretary of state's office under George Ryan.
FORMER GOVERNORS Jim Thompson and Jim Edgar, meanwhile, used Governor's Day to urge GOP candidates to look to the future and run based on what they will do if elected, not what has happened in the past. This from governors whose terms filled 22 of the 26 consecutive years of Republican governors in Illinois. Were it not for George Ryan's current troubles, they likely could have counseled Jim Ryan to rely heavily on the Republican legacy they helped build.
Jim Ryan is caught in the middle of all this, and never was that more clearly illustrated than on Wednesday, a day the Republicans had given the unintentionally ironic label of "unity rally."
"People want a change in leadership. They're angry, and you can't blame them. They're tired of the misconduct and all of the corruption," Jim Ryan told supporters.
RYAN'S OPPONENT, Rod Blagojevich, has been saying largely the same thing, except that he and Democrats statewide believe the best way to end the corruption is to oust the party that was in charge when it occurred.
Jim Ryan has done his best to distance himself from the governor's administration. He has called for Gov. Ryan's resignation or, barring that, an explanation from the governor of his role in the activities described in the Operation Safe Road documents.
He has been very vocal in his criticism of Gov. Ryan, accusing the governor last month of leaving the Republican Party through his decision-making as governor. The Jim Ryan camp even invoked the hallowed names of Ronald Reagan, Abraham Lincoln and George W. Bush to emphasize its belief that George Ryan has strayed far from his Republican heritage.
BUT WEDNESDAY in Springfield - at the state fair and at the Republican State Central Committee meeting at the Hilton - was proof that as long as George Ryan remains in office, and continues to implicitly speak in his own defense whenever microphones are present, Jim Ryan and the Republicans are going to have to answer for him.
Jim Ryan already failed to get a resignation from the governor. Perhaps a muzzle would be just as effective.
 

Prison's closing greeted with tears
 
By JONATHAN BILYK Staff Writer
15 Aug 2002
 
SHERIDAN As the line of men in nondescript yellow jump suits disappeared slowly into the waiting bus, Department of Corrections Maj. Al Renkosik chuckled.
Its amazing, he said. We run transfers three or four times a week, and weve never had staff turn out to watch it before.
But this is history.
Shortly after 8:30 a.m. today, the last two busloads of inmates left the Sheridan Correctional Center for the final time, transporting the jails remaining inmates to new cells at Logan Correctional Center in Lincoln.
Renkosik said 88 prisoners transferred today, accounting for the last of the nearly 1,600 inmates that were once imprisoned there.
Many staffers turned out to view the procession. Tears were clearly visible in the eyes of several who watched the last bus drive away.
Its a sad, sad day, said Joseph Fox, a vocational instructor at Sheridan for 18 years.
Tomorrow at 7 a.m., when security officers lock the front gate for perhaps the last time, nearly all of the prisons 436 employees will lose their jobs, victims of state budget cuts.
As the prisoners and their escort left the grounds, several officers busily loaded boxes into trucks.
Others walked the hallways lined with stacks of boxes outside barren offices, saying goodbye to both friends and buildings they knew so well.
Its strange walking the halls right now, said Renkosik. Theyre so quiet.
Several nurses in the medical office chose to commit their goodbyes to ink and paper, stuffing the sheets into a time capsule.
This is a very emotional day for all of us, said nurse Marge Clauson, who grew up in Newark and has worked at the facility for 13 months. This has been here my whole life. When you think of Sheridan, you think of the prison.
But with the sadness, others, like Sandy Stephenitch, an office assistant at Sheridan for two and a half years and five-year DOC veteran, voiced hope for the facilitys future.
All of this is so unnecessary, she said.
When this gets reversed, Ill be back.
 

Jim Ryan rallies the GOP crowd on Republican Day at the state fair
 
By BERNARD SCHOENBURG
15 Aug 2002
 
He's not known as a fiery speaker, but Republican gubernatorial candidate JIM RYAN gave a hint Wednesday that he might be learning to better package his message.
At a speech on the Director's Lawn at the Illinois State Fair, where he hosted a lunch on Republican Day, Ryan talked about character, what he's done in office, and then launched a well-written attack on Democratic candidate ROD BLAGOJEVICH.
"Rod Blagojevich, unfortunately, tells people what they want to hear," Ryan said. He then went into a series of issues in which he alleged that Blagojevich has changed positions or not performed as promised. And after each such vignette, he said, "Different day, different audience, different Rod."
This prompted some - but not tremendous - cheers, as the party faithful still seemed, as a group, a bit shell-shocked by problems that have eaten up the summer. But it did give those seeking some tough rhetoric a bit of what they wanted.
Ryan included Blagojevich's changed views on gun laws, which are significantly more toward gun-owners' rights than they have been at times in his political past, and Blagojevich's missed votes in Congress during this campaign season. He also said Blagojevich talks about campaign finance reform but "ignores the existing laws," an apparent reference to not listing on his recent campaign finance report covering the first six months of the year occupations and employers of many large donors.
And while Ryan noted that he made a choice during the primary and picked state Sen. CARL HAWKINSON of Galesburg, Blagojevich didn't choose among primary candidates for lieutenant governor.
"My opponent ducked and dodged and failed to lead, and he ended up with PAT QUINN," Ryan said.
Quinn, a former state treasurer, won a three-way primary.
And in addition to noting the Chicago homes of all statewide Democratic candidates for state offices, Ryan warned of ominous results if Democrats take over all main branches of Illinois government - harkening back to problems he said resulted from a similar circumstance when DAN WALKER was governor in the 1970s.
"We developed a reputation ... as anti-business. We lost jobs. We lost opportunities," he said.
BILLY WEINBERG, spokesman for Blagojevich, said the campaign has made a good-faith effort to comply with disclosure laws, filing about six amended reports. He said Jim Ryan is "sounding like a broken record" and "grasping at straws in a desperate attempt to diminish Rod Blagojevich's record," while obscuring his own failure to investigate scandals.
Blagojevich will get his chance to shine today - Democrat Day - at the fair.
Gov. Ryan touts record
While he wasn't a part of the official Republican rally at the GOP's tent Wednesday, Gov. GEORGE RYAN hasn't been shy during this state fair about promoting himself.
That legacy thing just won't go away.
He appeared Wednesday morning before the Republican State Central Committee at the Hilton Springfield, leaving each member with a booklet, more than 50 pages long, spelling out his accomplishments in office.
"I told them they ought to be talking about the Republican record, the 30 years of government in Illinois, why this state's in the great shape that it is, because we do have a great record," he said afterward.
A day earlier, on Agriculture Day at the fair, Ryan used a rally to list his accomplishments and to be lauded by farm groups happy with things including an agreement hammered out on regulation of big hog operations and his efforts to open markets in Cuba.
Super-voiced ORIEN SAMUELSON, the WGN radio farm broadcasting guru, joined in the high praise, suggesting that after he's out of office, Ryan would make a good ambassador to Cuba. The governor basked in the good talk, though he pooh-poohed the ambassador thing.
Samuelson had spent the night before as a guest of the governor at the Executive Mansion. "It's an honor to be invited," he said.
At Tuesday's rally, printed signs saying "Thank You, Gov. Ryan!" were displayed by some of those gathered. DAVE URBANEK, the governor's communications director, said he and other friends of the governor personally paid for the signs.
Ryan also remains feisty as ever in dealing with reporters. At the Hilton Wednesday, he noted that there's been a lot in the media about "pork" from the government - while he lauds all the good that Illinois FIRST has done, pumping billions into the economy.
So he turned the argument on reporters, some of whom work at the Statehouse pressroom, which is space the state provides.
"You guys are so critical about everything else that's spent, and then you stand there with your both hands out taking it all," he said. He said for-profit groups using the space should pay, "or we ought to put a not-for-profit operation in those spaces."
One reporter said that back in the 1970s, there was talk of rent payments, and then-Gov. JIM THOMPSON wouldn't hear of it.
"Yeah, well he was running for re-election," Ryan said. "I'm not."
He said he might seek to move legislation on the idea, but "I don't know if I can find anybody with the political courage to take you guys on."
Ryan missed the Republican rally Wednesday to travel to the Chicago area to mark the death of a friend. He asked MARY JO ARNDT, a member of the Republican National Committee from Lombard, to speak on his behalf, and she went over many of his accomplishments as well.
The message isn't getting to everybody. A CBS 2 Chicago poll that aired on WBBM-TV Wednesday night showed that 33 percent of respondents think the governor should serve out his term, 61 percent said he should resign, and 6 percent weren't sure. The poll of 1,250 people was done with the wonders of automation, as a recorded voice asked respondents to hit touch-tones to answer questions. The polling firm used was Survey USA.
Madigan on Madigan
The governor also was critical of state Sen. LISA MADIGAN, the Democratic candidate for attorney general, for her comments this week, saying that if needed, she would investigate people including her father, House Speaker MICHAEL MADIGAN, if there were allegations of corruption.
"As a father, it probably hurt," Ryan said of her comments. "She could have said, you know, 'My father, I love him to death. He's a great guy. I can't believe he'd do anything wrong. But if he did, I'd step aside and bring in a private investigator or a special prosecutor. I wouldn't have anything to do with it. But he's my dad.' I just think that she kind of got caught off guard."
"It goes without saying that she loves her father very much," MELISSA MERZ, spokeswoman for Lisa Madigan, said later. "This has nothing to do with their relationship. Any allegation of misuse of state funds is a serious one and should be investigated." Options for such an investigation would include giving the case to career prosecutors in the office or a special prosecutor, Merz said.
"This is not about family and it's not about loyalty," Merz said. "She was very clear when she stated he should be treated the same as everyone else."
Bernard Schoenburg can be reached at 788-1540 or Bernard.Schoenburg@sj-r.

Discord at unity rally
Governor urges GOP to run on its record
 
By DOUG FINKE
STATE CAPITOL BUREAU
15 aUG 2002
Gov. George Ryan said Wednesday Republican candidates should quit scandal mongering and start talking about the good things he and others in the party have done the past 30 years.
Republican Attorney General Jim Ryan, who is running to succeed George Ryan as governor, said people want a change from the way government has operated because they are sick of broken promises and scandals.
And two former Republican governors, James Thompson and Jim Edgar, said the party's candidates are going nowhere this fall if the focus continues to be on George rather than Jim Ryan.
By the way, Republicans called their day at the Illinois State Fair Wednesday a "unity rally."
GOP faithful from around the state braved the rain and gathered in Springfield, attempting to encourage the troops and smooth over some of the tensions created in the past few weeks.
During that time, Jim Ryan has said the governor should explain his role in the licenses-for-bribes scandal or resign, and House Republican Leader Lee Daniels of Elmhurst was forced to step aside as state party chairman after allegations surfaced that House staffers performed political work on state time.
It didn't take long Wednesday to see just how divided the party continues to be.
During a private meeting Wednesday morning of the Republican State Central Committee at the Hilton Springfield, Gov. Ryan said they were wrong to oust Daniels and that they should be talking about the good things he and other Republicans have done.
"I told them they ought to be talking about 30 years of solid Republican leadership in the state that's put us in the kind of shape that we're in," the governor said. "It's created jobs, economic development and kept our economy fairly stable."
Asked by reporters if Jim Ryan and other Republican candidates are scandal mongering by pledging to clean up government, George Ryan said, "Yes, absolutely. And I said that here today."
"The governor is entitled to his opinion," Jim Ryan responded after he addressed the committee about 15 minutes later. "People want a change in leadership. They're angry, and you can't blame them. They're tired of the misconduct and all of the corruption."
Unfortunately for the Republicans, that's the same theme being used by the Democrats, who are telling voters the best way to ensure change is to avoid electing anymore Ryans or Republicans. That leaves Jim Ryan the ticklish job of campaigning on the character issue without reminding people why it's important this year.
"I think the Republican candidates would best serve themselves if they would quit all of this infighting and criticizing and carping and talk about what they will do if they are elected," Thompson said.
Edgar said the GOP has to move the campaign's focus away from Gov. Ryan.
"I think there is still too much focus on the past," Edgar said. "I don't think Gov. Ryan is the issue here. I said that's a message they have to get out. George Ryan is not a candidate."
Thompson said that's particularly true of Jim Ryan.
"He's got to get across the message that he's Jim Ryan the attorney general running for governor, he's not George Ryan the governor," Thompson said. "But it should stop there. The best thing for you to do is tell the people of Illinois who you are and what you will do for them. That's what they'll vote for. They won't vote for this other stuff."
Thompson made the comment standing outside the Republican tent at the state fairgrounds. The tent featured large photos of Illinois Republican candidates as well as President Bush and Vice President Dick Cheney.
Missing were pictures of George Ryan.
"I don't understand that," Thompson said of the omission. "I think we should stop and acknowledge every once in a while that he's been a damn fine governor."
However, in a speech to a sparse gathering in front of the Republican tent, Jim Ryan again maintained that people have lost faith in state government - a government that's been led by a Republican governor for the past 26 years.
"People are angry. Many of them are angry, frankly, because there have been a lot of broken promises," Ryan said. "Too many people have lost trust in government."
Ryan also touched on a new campaign theme - fear of Chicago Democrats controlling all of state government.
"The state is at risk because the entire state Democratic ticket comes from only one place, Chicago," he said, adding, "As governor, I will not pit one part of our state against another."
Still, Ryan said Democrats have a majority on the Illinois Supreme Court and likely will control both chambers in the General Assembly after the Nov. 5 election.
"The Supreme Court, the legislature and now Chicago Democrats want the executive branch of government," Ryan said. "There's more to this state than the city of Chicago. There are 101 counties."
Billy Weinberg, spokesman for Democrat gubernatorial candidate Rod Blagojevich, said Ryan is pitting areas of the state against one another.
"Jim Ryan is someone who very carefully gives out contradictory messages depending on where he is in Illinois," Weinberg said. "Rod is committed to represent all of the people of Illinois. We do not follow the Jim Ryan lead of the state being comprised of distinct regions."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Jim Ryan gets digs in at governor, rival
 
BY DAVE MCKINNEY SUN-TIMES SPRINGFIELD BUREAU 
 August 15, 2002
 
 

SPRINGFIELD--Braving ankle-deep mud, GOP gubernatorial hopeful Jim Ryan and other loyalists crowded Republican Day at the Illinois State Fair on Wednesday but couldn't avoid the political ruts caused by Gov. Ryan's worsening legal problems.

Intended as a pep rally for the fall campaigns, the day's events were carefully scripted to distance the party's ticket from the corruption scandal surrounding the lame-duck governor--which meant keeping Gov. Ryan out of the picture.
To that end, Jim Ryan made sure the governor was not on a list of invitees to his own political gathering, which featured warm testimonials from former GOP Governors Jim Edgar and Jim Thompson. Snubbed, Thompson's and Edgar's successor spent the bulk of the day at a wake in DuPage County for a longtime political donor.
But try as the party might to make Gov. Ryan a non-issue, the attorney general spent nearly as much time stressing that all Republicans shouldn't be tarred by the incumbent's problems as he did taking shots at his Democratic opponent, Rod Blagojevich, who hits town for Democrat Day today.
"If you listen to my opponent, you would think what the people of Illinois want is a change in our party. That's not what people want. People want a change in the character of our leadership,'' Jim Ryan said.
In another not-so-subtle dig at Gov. Ryan and his preoccupation with the Operation Safe Road investigation that has breached his inner political circle and campaign fund, the attorney general said, "We cannot have a governor that's focused on anything other than serving the people and doing his job, period."
Overshadowed were Jim Ryan's shots at Blagojevich for voting against Chicago school reform while a state legislator, missing many votes in Congress while campaigning for governor and allegedly engaging in double-talk on gun-control. In contrast to earlier speeches, the attorney general appeared energized and--according to one GOP insider who hasn't always supported him--''acted like he cared.''
But the Blagojevich camp ridiculed Jim Ryan's performance as a lame ploy to distract voters from the GOP scandal.
"Jim Ryan's feeble attempt late in the game to promote himself as some sort of harbinger of change simply will not wash,'' Blagojevich spokesman Billy Weinberg said.
Before leaving Springfield, Gov. Ryan also went on the defense, stressing that the corruption scandal he faces is media-driven and involves only his tenure as secretary of state, not as governor. He also belittled Republican candidates who have made him and the scandal issues in their campaigns.
"They ought to talk about 30 years of solid Republican leadership in this state that has put us in the shape we're in," the governor said. "It's created jobs, economic development [and] kept our economy fairly stable."
The governor also chided Democratic attorney general nominee Lisa Madigan for embracing an investigation into allegations that her powerful father, House Speaker Michael Madigan (D-Chicago), allowed state funds and resources to be misused for political purposes.
''I see Lisa Madigan [went] after her father. I'm a little disappointed that she did that," the governor told reporters. "I think she kind of got caught off guard and said probably what you guys wanted her to say.''
Similar allegations of misusing state funds for political purposes were leveled earlier against House Minority Leader Lee Daniels (R-Elmhurst) and prompted Jim Ryan to dump Daniels as chairman of the Illinois Republican Party. Like the governor, Daniels was not present for Wednesday's GOP events in Springfield.
 
 
 
 
 
Federal investigators have interviewed about 10 Republican staffers and subpoenaed records from House Minority Leader Lee Daniels in their probe of possible campaigning on state time by legislative employees, Republicans acknowledged Wednesday.
Staffers were asked what their jobs are when the Legislature is in session and what they do when lawmakers adjourn at campaign time, said a Republican source familiar with the case who spoke on condition of anonymity. The staffers also were asked about filling out travel vouchers.
Most of those questioned work in the office of Daniels (R-Elmhurst), the source said. The source said other staffers questioned work for the House Republican Campaign Committee, which is controlled by Daniels.
Daniels resigned as state Republican Party chairman July 8 after published reports said GOP staffers might have done campaign work on state time.
The source said Daniels had not been in for an interview.
 

Madigan gets 2nd slap from his party
Blagojevich chides Democratic leader
 
By Ray Long and John McCormick,
Tribune staff reporters.
August 14, 2002
 
Moving to publicly distance himself from his party's leader, Democratic candidate for governor Rod Blagojevich on Tuesday accused House Speaker Michael Madigan of "arrogance" for funneling state money to a friend's privately run livestock show during tight fiscal times.
Blagojevich also said prosecutors should investigate a taxpayer-funded office lease that provided political benefits to Madigan, who also chairs the state Democratic Party. His remarks came a day after Madigan's own daughter, Democratic candidate for attorney general Lisa Madigan, also backed such an investigation.
"I think that $300,000 is an example of arrogance," Blagojevich said, referring to a pork-barrel grant pushed by the speaker to underwrite a Springfield livestock show run by a classmate of Madigan at the University of Notre Dame. Blagojevich questioned how Madigan "can make a priority like that at a time when we are cutting funding to schools."
But Blagojevich stopped short of saying Madigan should resign his party leadership post. Republicans have repeatedly called for Madigan to give up his party post, saying House Minority Leader Lee Daniels was forced out as state Republican chairman this summer as allegations of scandal first surfaced on his watch.
Blagojevich's criticism of Madigan portended the first major schism in a Democratic Party that has shown unparalleled unity heading into a fall election campaign. By contrast, Republicans have been in disarray over scandals that have swirled around Gov. George Ryan and Daniels.
The political risk in lambasting Madigan may not be as great for Blagojevich as for previous Democratic candidates for governor whose campaigns relied more on the speaker's formidable political muscle. Madigan, a veteran Southwest Side lawmaker, has devoted an outsized share of his time and resources this campaign year to the election of his daughter and to increasing the size of the Democratic majority in the House.
Both Blagojevich and his Republican rival for governor, Atty. Gen. Jim Ryan, cited the Madigan grant as a reason to end legislative pork-barrel projects.
"I'm not going to approve a budget that has these ridiculous member initiatives with millions and millions of dollars in pork," Jim Ryan said in Springfield as he stood in the Illinois State Fair's pork pavilion on Agriculture Day.
Madigan's grant for the International Livestock Exposition, run by John S. Narmont, came from a special fund set up for legislators to distribute pork-barrel projects. The fund was created by the governor and the legislative leadership, including Madigan, using more than $500 million diverted from money earmarked for day-to-day expenses of government.
In the spring, as the governor and lawmakers wrestled with how to close a huge state budget shortfall, Madigan and other lawmakers refused to give up their remaining $100 million in unspent pork money to make the job easier.
Blagojevich, a Northwest Side congressman, called Madigan's funding of the livestock show "wrong" and "disappointing." He said it symbolized "a way of doing business that has been permeating state government for far too long" and vowed to veto such spending if elected governor.
"He cannot possibly justify $300,000 to a livestock show in Springfield," Blagojevich said of Madigan. "That is a misplaced priority."
Blagojevich, a former Illinois House member under Madigan, maintained he could reform state spending because he is "from the outside," despite having a political career buoyed by the help of his father-in-law, Ald. Richard Mell (33rd). "I'm not part of that system," he said.
Jim Ryan maintained the entire legislative pork-barrel process "is wrong." Madigan's assistance to Narmont, a Springfield lawyer once censured by the state Supreme Court for unethical behavior, was not spelled out explicitly in the state budget but rather identified only as a grant to the Springfield Convention and Visitors Bureau.
"It's not a good way to budget, and it's not a good way to spend our tax dollars," said Jim Ryan. He criticized lawmakers for clinging to pork while prison workers lost their jobs, spending was cut for hospitals that serve the poor and centers that served disabled people were closed.
"When I'm governor, I'm not going to be governor to reward my friends," Jim Ryan said.
The current governor, however, defended Madigan's grant to Narmont, even though his own Department of Agriculture had recommended no funding for the event because of the tight budget.
"Everybody's got friends," said George Ryan, adding that the exposition will produce revenue for Springfield. "The mayor (of Springfield) was for it. Evidently Speaker Madigan was for it. I'm not going to second-guess that," the governor said. "We made some cuts in the budget. We did what we thought we had to do. But some things had to go back in, I guess."
Madigan spokesman Steve Brown said his boss was "absolutely not" arrogant and contended Blagojevich's remarks were based on "misinformation" about the exposition.
Blagojevich also said allegations that Madigan used taxpayer dollars to rent an office to further the re-election efforts of Democratic lawmakers warrant further examination and could prove to be illegal.
"The allegations have risen to a level serious enough to warrant an investigation," he said. "We need to learn more about the specifics."
The taxpayer-funded lease involved an Evergreen Park satellite office that House Democrats set up shortly after Madigan regained the speaker's post from Daniels after the 1996 elections. The lease, for $350 a month, was initially paid for with taxpayer dollars, then was switched over to political funds several months before the 1998 election, then switched back to taxpayer funds after the election.
On Monday, Jim Ryan said federal prosecutors told his office that the lease issue would be added to other matters involving Madigan that are under review.
Brown, Madigan's spokesman, said the speaker did not use the office to advance the campaigns of House Democrats when taxpayers were picking up the tab. He said Madigan switched the responsibility for renting the office from the state to the campaign fund to avoid any questions of improprieties.

Ryan, Blagojevich critical of money in state budget for local livestock show
 
By BERNARD SCHOENBURG
POLITICAL WRITER
14 Aug 2002
 
Both major-party candidates for governor were critical Tuesday of the $300,000 in the state budget for a Springfield livestock show run by John Narmont, a college classmate of House Speaker Michael Madigan, D-Chicago.
The money was in the budget for the fiscal year beginning July 1 and is intended to be spent on the International Livestock Exposition, a monthlong series of events at the Illinois State Fairgrounds.
While the money was cut from the Department of Agriculture appropriation, it was instead directed to the city of Springfield's Convention & Visitor's Bureau. Madigan spokesman Steve Brown has said that was to help give a local agency some oversight of the spending.
Republican Jim Ryan, Illinois' attorney general, said at the state fair that he opposes the way the money was provided
"I'm not going to approve a budget that has these ridiculous member initiatives, millions and millions of dollars in pork," said Ryan. "We can spend money on local projects and districts that will benefit people, but it has to be part of a rational process where you look at what the real priorities are in this state, where is the greatest need."
"Without going into the merits," he added, "the process is flawed, and I don't support it for that reason. We're throwing people out of their jobs in prisons in Illinois, we have reimbursement levels for hospitals that are too low and unfair ... (and) we've got $100 million in pork, including this pork, and it doesn't make sense to me. It's wrong."
In Chicago, Democratic gubernatorial candidate Rod Blagojevich was "deeply concerned" about the expenditure and thinks the $300,000 is "an example of misplaced priorities," said Blagojevich spokesman Billy Weinberg.
"Had he been in the governor's office, he would veto it," Weinberg said, "and he would use the power of the governor's office to ensure that monies were better spent. ... He does not support Speaker Madigan's decision to see $300,000 spent in this way."
"Mr. Blagojevich is entitled to his own opinion," Brown said, though adding that it "could be in part based on misinformation that's been published" characterizing the event as a private show.
The show is open to the public, has no admission fee, and the state money goes toward purses, Brown said.
As for Ryan's comments, Brown said the two chambers of the legislature voted on the budget that included the money for the show, and the governor signed it.
"Does Jim Ryan know so little about the budget process that he finds this to be questionable?" Brown said.
Ryan did say earlier he's not aware of any legal improprieties with the $300,000 appropriation, given that it did go through the budget process.
"I object to the way this grant was made," he said. "It was taken out and it was put back in, and I don't think many people knew it."
Springfield officials have said the most recent livestock show was worth nearly $2.7 million to the local economy.
Meanwhile, Ryan and Blagojevich each presented campaign proposals concerning agriculture Tuesday - Ryan during a rally at the state fair, and Blagojevich at the Hyatt Regency Chicago hotel.
A light drizzle punctuated part of Ryan's morning rally, which featured several politicians on a platform who were watched by about 75 people.
"When Jim Ryan's elected governor, it'll rain an inch a week all summer long," joked state Sen. Duane Noland, R-Blue Mound, who was among speakers on Ryan's behalf.
A member of the administration of President Bush, deputy U.S. agriculture secretary Jim Moseley, was among speakers, saying that new "fast-track" trading authority for the president will help farmers sell their products overseas.
Blagojevich voted against "fast-track" authority in Congress. Among the reasons for that vote, Weinberg said, was "to ensure there are greater environmental protections in the nation's international trade policy." The AFL-CIO opposed fast-track, and the Illinois AFL-CIO endorses Blagojevich.
U.S. Reps. John Shimkus, R-Collinsville, and Ray LaHood, R-Peoria, as well as state Rep. Raymond Poe, R-Springfield, were among those appearing with Ryan. Former U.S. Rep. Tom Ewing, R-Pontiac, was also there as head of "farmers for Ryan."
Ryan said he wants to put more state dollars into research programs and would double the $1.5 million in the current state budget going for the AgriFirst program to provide funding for projects to add value to agriculture products. Ryan said he has used the office of attorney general to help farmers, in actions including fighting higher gasoline prices and supporting ethanol.
He also said he thinks Gov. George Ryan was right to travel to Cuba, and he would be open to travel to that country.
"I do think the governor's right about that," Jim Ryan said. "I think once the embargo's lifted, Illinois will probably have an advantage because we've been there."
Gov. Ryan, meanwhile, said he's been invited back to Cuba this November or December, but he's not yet sure if he will go.
Blagojevich said he would direct $25 million of the proposed "Illinois Opportunity Fund" venture capital fund to "fuel the expansion of value-added agricultural cooperatives in the state."
The opportunity fund is Blagojevich's plan to raise $200 million in private money, then have a state board provide it to existing venture capital funds. Asked how Blagojevich could ensure that those funds would invest their money as the agriculture plan specifies, Weinberg said, "There will certainly be direction from the governor's office."
Blagojevich said he would seek construction of new ethanol plants with state funds and farmer investments; create a new position of "Ag-Bassador" who would be "a special appointee of the governor who will work with Illinois farmers, associations and agribusiness; restore full funding to the Council on Food and Agricultural Research; and seek incentives for renewable energy, including wind power and biomass fuels.
"Wind power, for example, can produce tremendous energy savings while also translating into rental fees of as much as $6,000 per turbine per year for farmers - who can still plant crops," the Blagojevich plan says.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Governor defends probation plan
Legislative leaders claim no agreement was reached with G. Ryan for proposal
 
By BERNARD SCHOENBURG
POLITICAL WRITER
14 AUG 2002
 
Gov. George Ryan on Tuesday defended his plan to cut the probation period for certain high-level, four-year appointments from six months to 30 days and said he made the change after consultation with legislative leaders.
But spokespeople for two of the four leaders said they knew of no such discussions before the proposal was made.
Ryan also said he thinks "at most 10 or 12 people" will be affected by the change.
Under the governor's proposal, which could be considered by the Joint Committee on Administrative Rules next month, four-year "term appointments" of certain senior-level management positions could be permanently filled more quickly.
Democratic gubernatorial candidate Rod Blagojevich and his Republican counterpart, Jim Ryan, both came out against the rule change last week.
Blagojevich said it would allow George Ryan to lock in workers to important jobs, blocking discretion of the next governor to name top managers of his choosing.
Gov. Ryan told reporters Tuesday at the Illinois State Fair that with the loss of top managers coming at the end of the year because of an early retirement incentive, a shorter probation period is needed to encourage experienced state employees to fill gaps.
"If we say that it takes a six-month trial period coming in as a new person, then who's going to give up (what they have)?" the governor asked. "Are you going to leave your Department of Transportation job, come to work for DCCA (the Department of Commerce and Community Affairs), if we need you with your experience? ... Are you going to say, 'OK, I'll take the chance, and when the next governor comes, I'll be only there four months and he can fire me?
"So by mutual agreement, the General Assembly, the Democrats and the Republicans, we said, 'Let's make the requirement one month, so at least the guy is protected when he comes over.'"
Asked if he negotiated with the four legislative leaders on the idea, Ryan said, "Yeah, everybody agreed to it."
But spokespeople for Senate Democratic Leader Emil Jones Jr. and House Speaker Michael Madigan, D-Chicago, both said they were unaware of any such agreement.
Spokesmen for the GOP House and Senate leaders couldn't immediately reach their bosses.
"None of our guys recall that," said Cindy Davidsmeyer, spokeswoman for Jones.
"I'm not aware the issue was ever discussed," said Madigan spokesman Steve Brown. He said Madigan staff people "brought it up to me as a totally absurd idea. I doubt it would have been described to me in those terms if the speaker had agreed to it."
The governor earlier said he had rejected a proposed early retirement plan about the time he was elected because of the view that it "wipes middle management right out of government." At the time, he said, he didn't want to come into office "and not be able to operate this government ... and not be able to fill these spots."
He said a similar concern now prompted the rule change proposal.
"We figure there may be at the most 10 or 12 people that we may have to do that with," he said of term appointments. "Maybe not that many, I don't know. But we wanted to be prepared so we could continue to serve the people and to do the job that had to be done. (It) wasn't anything about a power grab."
About 500 state positions are filled through term appointments, according to the Department of Central Management Services. A governor can fill those jobs with political allies, but after the probation period, they cannot be fired without cause for the duration of the four-year period. At each four-year interval, they lose civil-service-like protection and can be fired for any reason.
As for the criticism of his proposed change from both major-party candidates for governor, George Ryan said he doesn't think either understood his plan.
"I think they both just jumped on it as some sort of a political opportunity," Ryan said. "But if you step back and look at it, it makes a lot of sense. If we're going to make a power grab, patronage jobs, that's not the way to do it."
The proposal also would remove a requirement that the appointees come from an existing list of qualified candidates. However, the appointees would have to meet qualifications as determined by CMS, a spokeswoman there has said.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

Ryan makes surprise health board appointments
 
The Associated Press
August 13, 2002
 
SPRINGFIELD -- Gov. George Ryan said Tuesday he hopes appointing three new members to a state board just before it votes this week on the future of three state social service facilities will affect the vote.
Ryan's office said the replacement appointments to the Illinois Health Facilities Board were made to accommodate people who were interested in state service.
But asked Tuesday whether the changes would have any effect on the vote over Lincoln Developmental Center, Ryan said, "Well, I certainly hope so. ... It would be a terrible mistake to keep that place open."
Ryan said he had not spoken to the new board members about closing the state facilities.
The board on Thursday will decide whether to permit Ryan to close Lincoln Developmental Center, Zeller Mental Health Center in Peoria and Singer Developmental Center in Rockford.
The governor wants to close the Lincoln center for the developmentally disabled after inspectors repeatedly found problems that threatened residents' lives. Zeller and Singer are targeted for budgetary reasons.
The planning board is expected to consider the issue Thursday. The new appointments have some people concerned about the upcoming vote.
Elected officials, family members of patients at the centers and the American Federation of State, County and Municipal Employees, which represents employees at the facilities, called Tuesday for the health board to show its independence and vote against the closures.
"To replace these members with no credible reason given is another instance of why the public doesn't have trust in the process and in government generally," said Rep. Jonathan Wright (R-Hartsburg) at a state Capitol news conference. "This board needs to show it's an independent body."
Anne Irving, director of public policy for Council 31 of AFSCME, questioned whether the replaced board members' terms had expired and said the new panelists shouldn't be able to participate in the vote because they haven't been confirmed by the Senate.
The three members replaced in the past week were Richard Wright of Peoria, Eric Myers of Wheaton and Robert Clarke of Springfield.
Their replacements are former Department of Public Aid Director Philip Bradley of Springfield; Carle Surgicenter administrator Julie Root of Champaign, and Clarence Nagelvoort of Chicago, a community health administrator.
"I've been on the board for 10 years," Wright, a retired Caterpillar executive, said Monday. "Someone from the governors office called (last Tuesday) and basically said I was replaced on the board. No explanation. No thanks for 10 years of hard work. No nothing."
Ryan said if Wright wanted to continue serving, he should have contacted the governor's office and asked to stay.
Myers, an administrator for the Suburban Surgery Center of DuPage, said he found out Friday.
"They didn't talk to me, they talked to my office manager," he said.
Myers' term expired in June 2001, but he said he had told the governor's office he would like to continue serving. He said he has no idea why he wasn't reappointed and had not decided how to vote on the Lincoln center.
Wright, who said he was prepared to support Ryan on closing the center, said he doesn't know why he wasnt reappointed either.
There are others among the 15 board members serving expired terms.
Ryan spokesman Ray Serati said the governor was just trying to accommodate new people.
"There are a lot of people interested in serving on a variety of boards and commissions," Serati said. "These three, their names came up, and the governor appointed them."
Bradley, president and CEO of the Family Health Network Inc., said administration officials came to him a couple of weeks ago and "asked if I wanted to serve."
"I was told they had a vacancy and they wanted to fill it," said Bradley, who is taking Wright's place.

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Candidates say they would keep Greene boot camp open
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
9 Aug 2002
Democratic gubernatorial candidate Rod Blagojevich says if he is elected governor, he'll keep open the state Department of Corrections boot camp in Greene County, which is slated for closure because of the state's budget problems.
Jim Ryan, the Republican nominee for governor, says he, too, favors keeping the boot camp open.
The facility, officially known as the Greene County Impact Incarceration Program, is just south of Roodhouse in northern Greene County.
Inmates are subjected to a rigorous, military-style regimen, and they get drug-abuse treatment if needed. While many of the boot camp inmates serve reduced sentences, they are less likely to commit another crime after their release, corrections officials have said in the past.
During appearances Wednesday in Carrollton and Quincy, Blagojevich spoke of his intention to keep the Greene County facility open, said Blagojevich spokesman Billy Weinberg. A large number of people in those communities either work at the boot camp or have a family member working there, he said.
If Blagojevich, a Chicago congressman, wins the November election and the boot camp already has been shut down, he would work to reopen it, Weinberg said.
When asked how Blagojevich would pay to keep the boot camp open, Weinberg said his candidate has been "vocal in making the point that his election to the governor's office would result in a number of changes." For instance, he would look at state finances "in a more thoughtful manner," Weinberg said.
"It's a matter of looking at the budget from a really holistic standpoint," he added.
Blagojevich also has talked about keeping open other facilities slated for closure, including Sheridan Correctional Center in LaSalle County, Lincoln Developmental Center and Zeller Mental Health Center in Peoria, Weinberg said.
Jim Ryan, the current state attorney general, also supports reopening the Greene County boot camp and other facilities that are to close because of budget constraints, said Ryan spokesman Dan Anders.
"He would make it a priority in the budget to fund these," Anders said. "This is a matter of public safety and the safety of not only the prison guards, but the citizens who believe these people are going to be in prisons" or work camps.
"There's plenty of fat in the budget," Anders said, adding that cutting it would provide funds for keeping open the boot camp and other facilities.
Department of Corrections spokesman Brian Fairchild said the Greene County boot camp continues to operate, and a closure date hasn't been set.
 

Governor skips parade
 
8 Aug 2002
 
SPRINGFIELD(AP) He's
no longer apolitician seeking re
election Gov. George Ryan
says his parade days are OVer.
Ryan skipped the parade
opening the 15Oth Illinois State
Fair in Springfleld on Thursday evening.
Ryan said he's never enjoyed parades and saw no reason to participate now that he's not running for office.
"I've never figured out why people like to sit along a curb all day", Ryan said.
The governor's spokesman said Ryan also avoided taking part in the parade because he had heardthere might be protests by the union workers angry over the decision to close the medium-security prison in Sheridan.

 

Ryan would prefer spotlight on GOP ticket for 'Republican Day'
 
By BERNARD SCHOENBURG
POLICTICAL COLUMNIST
08 Aug 2002
 
No, the governor's office says, it's not Governor's Day. It's Republican Day.
That's the word from DENNIS CULLOTON, spokesman for Gov. GEORGE RYAN, on how the state's chief executive views next Wednesday at the State Fair.
Advance literature for the fair calls Wednesday "Governor's Day" and next Thursday "Democrat Day," which follows the tradition over the years of giving each party a day, but assigning the governor's party a day named after his office.
But, Culloton notes, Ryan is not seeking re-election, so he would prefer to highlight the entire GOP ticket in the fall.
It's also a tradition for the governor to participate in the Twilight Parade, which will kick off the fair tonight. As of mid-afternoon Wednesday, however, Ryan had not decided whether he would march this evening.
"We're hearing that there's going to be protests, especially by Sheridan Correctional (Center) employees," Culloton said. "He's concerned about that."
Culloton said the governor doesn't want anything to detract from the parade's theme, which this year is designed to honor veterans.
In fact, many members of American Federation of State, County and Municipal Employees Local 472 at Sheridan do plan to be in Springfield, said ROB FANTI, a correctional counselor at the soon-to-be-closed prison and president of the local. He intends to march in the parade, wearing one of his local's trademark yellow shirts. He believes AFSCME members statewide also are planning to attend.
"It's been word of mouth throughout the Department of Corrections that we're coming down there," Fanti said. "We're tired of what this governor has done to the Illinois Department of Corrections."
Sheridan is among facilities being closed as part of budget cuts made by Ryan.
JOHN HERATH, spokesman for the fair, said there is no entry in the parade for AFSCME or prison workers from Sheridan.
Culloton said the governor will have a late-afternoon barbecue at the director's lawn at the fair on "Republican Day." The event is by invitation only and generally will be open to state and local officials and "Republican Party types." There also may be some bill signings at the fair during its run.
Asked if there was apprehension that the governor might be booed if he takes to the parade route, Culloton said Ryan has "ventured into all sorts of places that have public meetings and events to do his job. ... By and large, the governor gets the respect that is owed to him and to the office. Every once in a while, there's a crank."
Egad! Bad ad!
A recent radio spot advertising a "great chilli cookoff" between Sangamon County Regional Superintendent of Schools HELEN TOLAN, Sheriff NEIL WILLIAMSON and Circuit Clerk TONY LIBRI was certainly the kind that could motivate you - to change stations.
The ad was for a fund-raiser for the Sangamon County Board Republican Election Committee. That group had $24,772 on hand as of June 30.
"Who makes the best chili in these parts?" a voice similar to WALTER BRENNAN asks. "You decide. For 10 bucks, you get all the food, beer, soda and, of course, the best-darn-tasting chili around."
"You decide. Will that pistol-totin' sheriff ride to victory in his white hat? Or will that harmless stable boy Tony Libri survive the showdown? But wait, just maybe that sweet-looking, Polly Purebred type, Helen Tolan, is gonna whip 'em both."
The voice, it turns out, was that of Libri, who isn't up for election this year. He said he produced the ad to help out the party.
The background music was from "The Good, the Bad and The Ugly." "Sweet Polly Purebred" was the canine television reporter who was the love interest of cartoon hero Underdog.
Sorry, y'all, but the chili event happened Wednesday night. As for that ad, it's one of those that makes me happy that I changed my major in college from advertising to journalism.
As for calling himself a "harmless stable boy," Libri said, "the words just came out."
Madigan spokeswoman
MELISSA MERZ, 34, former director of communications for U.S. Sen. DICK DURBIN, D-Ill., is the new top spokeswoman for the attorney general campaign of state Sen. LISA MADIGAN, D-Chicago.
Merz, who worked from January through May on the ongoing U.S. Senate bid of New Hampshire Gov. JEANNE SHAHEEN, joined the Madigan team this week.
She said she's glad to be working again with Illinois folks, and is excited to be part of "all the momentum for change in the government in Illinois."
She takes the place of DAVID SCHAPER, 36, who had been Madigan's spokesman during the campaign. Schaper remains on leave from WBEZ-FM, the public radio station in Chicago, but said he sought to leave the campaign because of the stress the job's hours were placing on his family.
Kudos at Statehouse
Congratulations are in order for a handful of Illinois Statehouse reporters who came away with awards from the Association of Capital Reporters and Editors. The nationwide group had its third annual conference in Washington, D.C., Aug. 2-4.
KATE CLEMENTS, who is the Statehouse bureau chief of The News-Gazette of Champaign, won first place for beat reporting for newspapers with circulation under 75,000.
TOM WEBER, who spent six months as an intern, through the Public Affairs Reporting program at the University of Illinois at Springfield, with public station WUIS-FM, got first place for radio beat reporting. He is now morning anchor and reporter with KWMU, the NPR affiliate in St. Louis.
In a tie for second place in radio beat reporting were WUIS bureau chief BILL WHEELHOUSE and reporter SEAN CRAWFORD.
"I look at it as, we all won," Weber said of coming out ahead of his former mentors.
"It's exciting to see a student of ours do well," Wheelhouse said.
VICTORIA LANGLEY got a first place for television beat reporting in her new job with Capitol News Service in Tallahassee, Fla. She's formerly of WICS-TV in Springfield.
BARB HIPSMAN, a former Statehouse bureau chief for the Belleville News-Democrat and now on faculty at Kent State University, was one of the broadcast judges.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

blagocarrollton.jpg

Blagojevich criticizes move to change hiring rules
 
BY CHRISTOPHER WILLS ASSOCIATED PRESS
August 7, 2002
 
SPRINGFIELD -- Democratic gubernatorial candidate Rod Blagojevich accused the current governor Wednesday of trying to change state rules so he can give long-term jobs to political "cronies" before leaving office.
"This change will allow our state's Republican leadership to lock in countless high-ranking, often highly paid employees before the next governor, whoever he might be, takes office," Blagojevich said at a Statehouse news conference.
The proposal by Gov. George Ryan's administration would cover about 1,500 employees who don't enjoy the same civil service protections as rank-and-file workers, Blagojevich said. The employees are appointed to jobs for four-year terms.
Under Ryan's proposal, the probationary period for these employees would last one month instead of the usual six. After that time, their appointments would become official.
Ryan also would be able to give these four-year appointments to people who are not on the state's official list of qualified applicants, so long as they have already spent at least two years working for the state.
The proposed change is being considered by the Legislature's Joint Committee on Administrative Rules.
The Republican governor, who is not running for re-election, said Wednesday he was not familiar with the proposal. "I'm not trying to stack the deck against anyone," he added.
Ryan spokesman Dennis Culloton dismissed Blagojevich's criticism as "a lot of political hot air." He said the rule change would make it easier for Ryan and for the next governor to fill key jobs that will open up as employees take advantage of an early retirement program.
But Blagojevich, a three-term congressman from Chicago, said the rule would make it easier for Ryan to hand out jobs as he leaves office.
"Instead of placing cronies in these jobs, should I become governor I would move to eliminate as many of these taxpayer-funded positions as possible," Blagojevich said.
His Republican opponent, Attorney General Jim Ryan, agrees that the rule change would be a bad idea. Spokesman Dan Curry said, "There's no reason to shorten that buffer period. It's not good government."
The jobs affected are not top-level positions such as an agency director, but they can be significant. For example, regional directors for the Department of Children and Family Services would be covered, said Mary Lee Leahy, an expert on state employment law appearing with Blagojevich.
 

GOP chief says Blagojevich broke law
 
BY SCOTT FORNEK POLITICAL REPORTER
August 6, 2002
 
 

State Republican Chairman Gary E. MacDougal on Monday accused Democratic gubernatorial nominee Rod Blagojevich of illegally failing to identify the jobs and employers of hundreds of his largest campaign contributors, dubbing the Democrat either a candidate with something to hide or an "incompetent."
"This is an egregious violation of the law," MacDougal said. "He's either hiding something, or he's running a very careless, sloppy, incompetent campaign. Either way, he is not fit to be governor."
MacDougal filed a complaint with the state Board of Elections, accusing Blagojevich of breaking state law by failing to identify the employment information of 266 of the 483 contributors he listed as each donating more than $500 in a campaign disclosure report filed last week.
Blagojevich's campaign officials argued the Northwest Side Democrat broke no laws, called the complaint "irrelevant and frivolous" and accused MacDougal of trying to shift attention from GOP nominee Jim Ryan's own lackluster fund-raising and loss of key endorsements.
"Jim Ryan's constant focus on the irrelevant is part of the reason people aren't responding to his campaign," said Doug Scofield, a Blagojevich spokesman.
But MacDougal accused Blagojevich of a mix of incompetence and subterfuge. He said Blagojevich could easily have supplied the information on some of the contributors, such as former U.S. Sen. Alan J. Dixon, who now works as a lobbyist. MacDougal cited the failure as a sign that Blagojevich is not ready to be governor and oversee 65,000 state workers.
"I ran a business," said MacDougal, former CEO of Mark Controls Corp. "One thing I learned is there is nothing more dangerous than hiring an articulate incompetent. . . . And I think that's what we may be seeing here, and this is evidence of it."
But MacDougal said Blagojevich probably intentionally omitted information on other donors, people who "might be embarrassing when you find out who they are."
MacDougal said Ryan identified the employment information on 99 percent of his 504 contributors who donated more than $500 to his campaign.
Blagojevich's spokesman insisted the law only requires them to make a good faith effort to find out such information. Scofield said they have already filed two amended reports with more contributor background since last week and will continue to file amendments as they receive more information--a step he argues goes beyond what the law requires.
"This is one of the most absurd complaints I have ever seen," Scofield said.
A copy of the election law that MacDougal distributed at his news conference said candidates must supply the employment information for donors who give more than $500, or if it is unknown, include a "statement that the committee has made a good faith effort to ascertain this information."
Blagojevich's disclosure report listed no such statements.
A board official declined to weigh in before the case is heard.
"Obviously, both sides have a different interpretation of the intent of the statute, and that is something that should be heard," said Tony Morgando, the board's deputy director of disclosure.

State needs to reform its ethics laws
 
Our Opinion
State Journal Register
03 Aug 2002
 
THE U.S. SENATE ETHICS COMMITTEE's discipline of New Jersey Sen. Robert Torricelli is one more reminder of how behind the times Illinois is in dealing seriously with the trading of gifts and campaign donations for influence.
Torricelli was "severely admonished" for taking a series of lavish gifts from David Chang, who went to prison for giving the senator illegal campaign contributions. The loot from Chang allegedly included 12 Italian suits, diamond earrings, a cashmere coat, a 42-inch TV, a stereo, $9,200 Rolex watch and $4,000 to buy a grandfather clock at an antique store.
Not to mention more than a dozen home deliveries of campaign cash that helped land Chang an 18-month prison sentence.
WHILE THE SENATE DISCIPLINE - a stern letter from the Ethics Committee - was a slap on the wrist compared to the prison time Chang got, it is probably quite a bit more than would happen if the exchange had taken place in Illinois
Illinois' modest attempts at reform - the 1998 Gift Ban Act - is riddled with loopholes and has been under a legal cloud since fall 2000, when a Will County judge ruled it unconstitutionally vague. The Illinois Supreme Court reinstated the law in May, ruling the elected officials who challenged it had no standing to do so. But the question of constitutionality was sidestepped and could be raised again.
SPURRED BY EMBARRASSING revelations emerging last spring in the ever-widening licenses-for-bribes scandal, the legislature made a brief show of debating ethical reforms, including a package pushed by House GOP Leader Lee Daniels. That package called for stricter gift bans, prohibiting the soliciting of public employees at either the state or local level for political activities and creating a powerful ethical oversight board.
The House, in fact, passed some of the reforms, which stalled in the Senate.
The only reform that passed both Houses was a more modest amendment to the Gift Ban Act. Overshadowed by the louder end-of-session debate over the state budget, the bill would place a new limit of $100 in gifts in a calendar year from any single source. Of more potential consequence is a ban on soliciting campaign contributions by employees of certain state and local offices from individuals or entities they regulate.
THAT COMMON-SENSE PROVISION is in direct response to the bribes that federal investigators have proven were routinely solicited by scores of former secretary of state employees from people seeking drivers' licenses, low-number license plates and other favors from the agency under then-Secretary of State George Ryan.
That measure is awaiting now-Governor Ryan's signature.
While it is only one small step toward cleaning up the besmirched ethical reputation of the state, it's one we hope Ryan will take.
 

Ryan pardons man convicted of killing warden
 
By Kurt Erickson
Statehouse bureau chief
03 Aug 2002
 
SPRINGFIELD -- A man sentenced to death for killing a Pontiac prison warden has been pardoned by Gov. George Ryan.
The move means Steven Smith, 54, is now free to seek compensation for his wrongful imprisonment of nearly 13 years.
Smith was sentenced to death in 1986 after his conviction in the 1985 shooting of Virdeen Willis Jr., an assistant warden at the Pontiac Correctional Center.
The shooting occurred outside a Chicago tavern. At the trial, prosecutors alleged that Smith killed Willis as an act of revenge for time Smith served time in Stateville's Special Prison Unit, which was under Willis' command.
Smith was imprisoned in Stateville from June 1969 to June 1976 on a second-degree murder conviction stemming from a gang-related shotgun killing.
Smith was freed in 1999 after the Illinois Supreme Court twice threw out his conviction for killing Willis. The court said he was put on Death Row on faulty evidence and conflicting testimony.
The move rankled many Pontiac workers, who said they were convinced Smith was Willis' killer.
In addition to pardoning Smith, Ryan granted a pardon Wednesday to Carl Lawson. Both are among 13 men freed from Death Row by the high court since the state reinstated the death penalty in 1977.
 

Blagojevich rakes in funds
Had banked five times as much as Ryan by June 30
 
 
By BERNARD SCHOENBURG
POLITICAL WRITER
01 Aug 2002
 
With just over three months before the Nov. 5 election, the gubernatorial race to raise funds is no contest - the Democrat, Rod Blagojevich, is swamping Republican Jim Ryan, campaign finance reports filed Wednesday show.
Blagojevich's campaign said he had $5.25 million on hand as of Wednesday, after raising about $1.5 million in July. On June 30 - the last day of the six-month period covered by the new reports - Blagojevich had more than $3.8 million in his fund.
Ryan's campaign did not disclose fund-raising numbers beyond the six months ending June 30, and on that date, the Ryan campaign had $689,809 on hand. That's less than a fifth of what Blagojevich had at that time.
"We've raised a significant among in July, but we're not releasing any figures," said Ryan spokesman Dan Curry.
Blagojevich, a Chicago congressman, had earlier revealed that he raised more than $7.5 million in the first six months of 2002. Specifics of that fund raising were reported Wednesday, the deadline for the report for that six-month period.
Ryan's report showed he started the year with about $2.66 million, raised neary $4.9 million and spent more than $6.8 million during the six months. Both candidates faced primary opposition.
Blagojevich spent more than $7.4 million during the six-month period. He started the year with nearly $3.7 million in the bank.
One of Ryan's top contributors was Stuart Levine, an investor who gave him $50,000 in March and $100,000 in June. Levine is a Chicago attorney and former member of the Illinois Gaming Board. He was a law school classmate of Ryan, who also received $50,000 from the Illinois State Medical Society's political action fund.
Among $25,000 donations to Ryan were ones from the Illinois Manufacturers' Association, Zurich American Insurance Co. and John Krehbiel Jr., co-chairman of Lisle-based Molex Corp. He got $22,000 from James Hausman, owner of The Gold Center in Springfield.
Ryan's report also showed that his campaign paid more than $300,000 to Unistat, a Lombard business that had been owned by former state Rep. Roger Stanley, a Republican who was recently indicted in the Operation Safe Road federal corruption probe. Stanley was accused of paying bribes to get contracts with the Metra commuter rail agency.
Blagojevich spokesman Doug Scofield said that shows Jim Ryan's inability to separate himself from the "corrupt practices" of Republican insiders. Eric Robinson, another Jim Ryan spokesman, said Unistat was used for campaign services in the primary, before Stanley was indicted. Since the indictment, he said, "Obviously, we won't use them."
Blagojevich's largest contributor was the Service Employees International Union, which gave $500,000 during the six-month period. During his primary campaign, Blagojevich was questioned by rivals about part of that money coming near the time Blagojevich voted in Congress against federalizing airport screener jobs represented by the union.
Scofield said Blagojevich "voted to make airline safety better and stronger" on that issue. "He voted his conscience."
Blagojevich also received $320,000 from the Illinois Federation of Teachers, which counts the Chicago Teachers Union as its biggest local. He got $125,000 from the Chicago law firm of Power, Rogers and Smith, where a partner, Joe Power, represented the Willis family that lost six children in an accident linked to the bribes-for-licenses scandal in the secretary of state administration of George Ryan.
The Democratic Governors' Association kicked in $120,000. CKG Consulting of Frankfort, which Scofield said is the company of businessman Chris Kelly, gave $39,500, in addition to $250,000 in loans just before the primary. Blair Hull, a financial investor considering a run for U.S. Senate in 2004, lent Blagojevich $100,00 and gave him $15,000. The American Federation of State, County and Municipal Employees, Council 31, which covers Illinois, gave him $100,000. And another $37,500 came from Altheimer & Gray, a Chicago law firm recently barred from continuing to represent Gov. Ryan's campaign committee in federal court.
Jim Ryan, at a Chicago news conference on another issue, downplayed his campaign cash deficit.
"We're doing the best we can," he said. "There's more to a race than raising money. ... All you have to do is raise enough money to get your message out, and we will."
But his campaign also complained that Blagojevich, who missed more than 130 votes in Congress since the primary, was shirking his job to raise money.
 

Early outs under way in state government
 
By DOUG FINKE
STATE CAPITOL BUREAU
01 Aug 2002
 
Dick Goodrum admitted to a bit of anxiety Wednesday.
A section chief with the Illinois Department of Transportation, Goodrum said goodbye to co-workers and left his workplace of 32 years, among the first of what's expected to be thousands of state workers taking early retirement.
"I'm saying bye to a lot of people," Goodrum said. "I'm getting cards. There's a little bit of anxiety here. I've worked all my career here."
Goodrum's wife, Betty, also an IDOT employee, left the agency as well Wednesday, after buying into the state's early retirement incentive program. They are among an estimated 1,000 state workers who retired as of today, the first day people could retire under the plan.
The State Employees Retirement system doesn't have precise figures for the initial number of early retirees. SERS executive secretary Michael Mory said he's estimating 1,000 people could be off the job today.
"It seemed like there were a lot of people ready to go, and they are taking it quickly," Mory said. "It's been talked about so long, ever since (Gov. George) Ryan was elected."
Since Ryan signed the early retirement incentive bill in June, SERS has mailed roughly 6,000 information packets to people contemplating early retirement, Mory said. Based on past experience, most of the people who ask for the packets will end up retiring. Already, between 1,200 and 1,500 people have filed the paperwork to do so.
"The number of (packets) is kind of high," Mory said. "That's roughly one-third of the eligibles."
Approximately 21,000 state workers are eligible. But despite the high number of employees already requesting application forms, Mory isn't ready to change his earlier estimate that 7,400 to 7,500 workers will take early retirement.
Under the program, eligible workers can buy up to five years of additional age and service credits to enhance their pensions and retire at an earlier age. Workers can retire between Aug. 1 and Dec. 31.
Goodrum and his wife are among those who opted to leave sooner rather than later.
"Originally, we thought we would take it now and enjoy August, September and October," Goodrum said. "We are cyclists and campers. We looked at it as a long vacation."
Those plans are temporarily on hold because of his daughter's difficult pregnancy, Goodrum said, adding that he might consider taking another job if he finds himself growing bored with a retiree's life.
"We don't need to work for money," he said. "I would work for fun. I would work in a bike shop or a health club."
One option Goodrum won't have is full-time employment at another state job. This version of the early retirement option forbids employees from returning to a state job, except for 75 days per year as temporary workers. Temporary workers are used mostly in such agencies as the Department of Revenue that have a heavy seasonal workload.
Though there will 1,000 or so fewer state employees today, that pace is not expected to continue. In fact, state officials estimate 70 percent to 80 percent of those choosing to take early retirement will wait until the end of the year.
One reason is to cut down the amount of time a retiree must wait until he or she receives a first cost-of-living adjustment. People who retire this fall won't get their first 3 percent adjustment until January 2004, whether they retire in August or December.
Even as the initial state workers take advantage of the incentive, the state retirement system is getting a steady stream of people wanting more details. About 90 to 120 people visit the office each day, Mory said. Many more phone the agency. The volume of phone calls is so great, it can take four days to return them, he said.
To expedite return calls, Mory said, callers should leave a number where they can be reached during the day.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Prison a 'nasty' place to be

By DAN CHURNEY Staff Writer
30 July 2002

SHERIDAN Richard Rigsby knows a thing or two about prisons hes done time in seven institutions and from his vantage point as a convict at Sheridan Correctional Center, he has had a jailbirds eye view as the clock winds down at the facility.

The officers are frustrated. Some of them take it out by enforcing petty rules or standing at your door and yelling at you, Rigsby claimed during a recent Daily Times interview at the prison.

Rigsby, 24, who lived in Ottawa for a year before going to prison, observed that some of his fellow inmates are also agitated by the approaching shutdown.

Many inmates who were taking educational courses are unhappy about moving to another prison that might not offer schooling they need.

Rigsby also said inmates with good jobs at Sheridan are not likely to land such posts at a new prison, where they will have to start over from the bottom of the heap.

Inmates are further vexed because they expect fewer visits after they are transferred from Sheridan usually to prisons farther from friends and family who mostly live in Chicago.

Your family forgets about you the farther you get from them, Rigsby noted.

As for Rigsby himself, he said such matters do not bother him because he only has three months left to serve before he is released.

In fact, he believes theres a positive side to the prison closing.

The people of La Salle County should be happy this place is closing. It brings criminals into the area like me, Rigsby said.

Rigsby, originally of Chicago, explained that his adopted brother was imprisoned a few years ago at Sheridan. During visits to Sheridan, he became familiar with Ottawa and decided to move to the city.

Before I visited the prison, I had never heard of Ottawa or Serena or all the other towns around here. This happens all the time friends and relatives of inmates move near the prison, he said.

Rigsby readily admits that during the year he lived in Ottawa, he made little contribution to the communitys civic well-being. Rather, he was convicted in 1998 in La Salle County Circuit Court of felony damage to property and vehicular invasion and was sent to prison for a six-year term. Rigsby also has a 1998 conviction in DuPage County for theft over $300.

He noted there is a steady stream of dope pushers from Chicago who visit the prison. They also become familiar with the area and soon learn they can earn more cash selling their illicit product in the Ottawa area, because drugs fetch a higher price in La Salle County compared to the Windy City.

The introduction of out-of-town criminals is given a further twist when romance develops between inmate and keeper. Rigsby said some convicts develop relationships with female prison officers or counselors, and these inmates set up house with these workers near the prison after they are released.

The physical condition of Sheridan prison also leaves much to be desired, according to Rigsby.

A window almost fell on me a few days ago, a hole in the ceiling over my bed is always leaking and the whole place is filthy. These things might not be big to anyone else, but they are when you have to live here.

Ill be happy to get as far away from Sheridan as possible. Ive never lived in as nasty a place as here.


Statehouse INSIDER
 
sBy DOUG FINKE
STAFF WRITER
26 July 2002
 
Dozens of Sheridan Correctional Center workers jammed into the Capitol last week to protest the scheduled closing of the prison. They wanted to make the point that closing the prison is going to wreak havoc on themselves, their families and their town.
After meeting with the news media, the crowd made its way to Gov. GEORGE RYAN's office on the Capitol's second floor to present petitions containing 40,000 signatures protesting the closure. Needless to say, Ryan wasn't in his office, the Capitol, or even in Springfield. It fell to Ryan spokesman RAY SERATI to face the crowd, a few of whom had their anger level well-stoked.
Then one of those serendipitous moments occurred. Spotted walking through the large reception area in Ryan's office was STEVE SCHNORF, Ryan's budget director and pretty much evil incarnate for unionized state workers.
"Hey, it's Schnorf," a union member yelled out, beckoning the budget director to come outside the office and chat. Schnorf huddled with Serati for a moment before coming to the door.
"(The union) was offered an opportunity to take a one-year wage freeze in return for no closings and didn't agree to do that," Schnorf said, not exactly calming the waters. "I think the decision's already been made."
The decision was not only made by Ryan, Schnorf noted, but it was also upheld by the General Assembly. Still, Schnorf took the petitions and said he would give them to Ryan.
It's always possible Ryan will again do the unexpected and reverse the decision to close Sheridan. It's also possible Statehouse Insider will win the next $100 million Big Game drawing. The odds are about the same.

The Illinois State Board of Education just seems to be daring state lawmakers to get rid of it. How else to describe the board's shenanigans?
More than a few state lawmakers wanted the board to postpone selection of a new state school superintendent until next year. The state's going to have a new governor come January, no matter what else happens. The idea was to wait until a new governor is seated, get his thoughts about schools and what a school superintendent should embody and then hire someone who will work well with whomever is elected. This might be reasonable to most people, but this is the Illinois State Board of Education we're talking about. They ignored the suggestion.
If this process sounds familiar, it's with good reason. Four years ago, the state board hired a new superintendent 14 days before Ryan took office. A board populated by appointees of former Gov. JIM EDGAR hired GLENN "MAX" MCGEE. By late last year, most of those appointees were gone and so was McGee.
Once again, the board seems to be going out of its way to anger lawmakers, the very people who control the board's budget. Even if the board is supposed to be quasi-independent, it's not very smart to thumb your nose at the people who pay the bills.

Attorney General JIM RYAN has already made it clear he wants to dump the State Board of Education. He's outlined a plan to replace the current structure with a Cabinet-level department headed by a person directly appointed by the governor. The idea is to enhance accountability all down the line.
It was sort of curious then when Ryan made a big deal about McGee endorsing the plan. The Ryan campaign put out a press release touting that an actual former state school superintendent endorsed the Ryan education plan.
McGee became a former superintendent because the board supposedly was upset with the slow pace of school reform during his tenure. McGee then turned around and got a $125,000 contract from the Board of Education to work on school reforms. The contract basically covered the time between McGee leaving as state superintendent and starting a job as superintendent of a suburban Chicago district.
Guess he knows a good accountability plan when he sees one.

Retired coal miner VIC ROBERTS will announce Monday that he is a candidate for U.S. Senate - in 2004. This may set some kind of record for an early announcement.
Visit Roberts' Web site (www.vicroberts.net) to see his views on issues such as abortion, education, "corporate prisons" and (our favorite) "my coal miner's hat."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Labor Issue May Stall Security Bill
 
By STEVEN GREENHOUSE
July 26,2002
 

WASHINGTON,  President Bush's hopes to set up a Homeland Security Department before the anniversary of the Sept. 11 attacks could be jeopardized by an issue that was a mere footnote to the ambitious reorganization of the government: what employment rights the new department's 170,000 government workers should have.
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The House, which passed the bill tonight, and the Senate, which is to debate it next week, are badly divided over the issue. President Bush is threatening to veto the legislation, which otherwise has broad support, because Democrats in the Senate do not want to give him the unusual flexibility he wants in hiring, firing and paying workers in the new department.
The House has voted to give Mr. Bush what he sought, but a committee in the Democratic-controlled Senate has defied him and voted to keep traditional civil service and union protections for workers in the new agency.
Complaining that such rules make it harder to run the government, White House officials have suggested making the Homeland Security Department a laboratory for new ways to manage the federal bureaucracy and its more than two million workers. The last thing the new department needs, these officials say, is a web of traditional rules that make it hard to fire incompetent workers and to hire and promote good ones.
But Democrats in Congress and their allies in organized labor say they fear that the administration is seeking to revamp the whole federal bureaucracy and strip federal workers of their civil service and union protections.
"We're on a slippery slope here," said Beth Moten, legislative director of the American Federation of Government Employees, which represents 30,000 of the workers who would be in the new department. "I think they are trying to restructure the federal work force in such a way that they never have to deal with a union."
The nation's labor unions are closely watching this effort because it amounts to the largest government reorganization in more than 50 years and would bring together elements from 22 agencies, including the Coast Guard and the Immigration and Naturalization Service.
Several dozen moderate Republicans, mainly from the Northeast and Midwest, are especially worried about the dispute. They see themselves as caught between backing the president on national security matters and backing their friends in organized labor, who often play a crucial role in re-electing Republicans in swing districts.
"Moderate Republicans are torn between supporting the president and our citizens as it relates to homeland security, and weakening any of the important labor protections that workers have gained," said Representative Jack Quinn, a Republican from Buffalo.
Several administration officials have suggested that union representation could tie the administration's hands and thus undermine national security. But union leaders have called such suggestions a slap in the face, given the heroic roles of unionized fire fighters, police officers and construction workers after the Sept. 11 attacks.
In a White House speech on Friday, President Bush repeated his call for flexibility in managing the new department, but he insisted that he did not plan to eliminate collective bargaining for its workers.
"The notion of flexibility will in no way undermine the basic rights of federal workers," he said. "Workers will retain whistle-blower protection, collective bargaining rights and protection against unlawful discrimination."
Mr. Bush said the secretary of homeland security must have the freedom to get the right people and to hold them accountable. He added, "I'm not going to accept legislation that limits or weakens the president's well-established authorities authorities to exempt parts of government from federal labor-management relations statutes when it serves our national interest."
Many union officials give less than full faith to Mr. Bush's talk of preserving union protections. They remember that last January the president, invoking national security concerns, barred union representation to 500 Justice Department employees who had belonged to unions. Labor leaders are also unhappy that the administration has not given collective bargaining rights to the employees in the new Transportation Security Administration.
Irked by those moves, union leaders question why the administration is insisting that the homeland security bill allow the president to revoke, on national security grounds, union and many civil service protections from federal workers who are already barred from striking.
"When I look at all the signals that have been sent, I have every reason to believe that left to their own devices, the administration would strip these employees of the right to belong to a union and to bargain collectively," said Colleen Kelley, president of the National Treasury Employees Union, which represents 12,000 of the workers who would be in the Homeland Security Department.
Bret Caldwell, the spokesman for the International Brotherhood of Teamsters, said the administration's stance could undercut Mr. Bush's efforts to court labor support. "It certainly raises concerns about the administration's approach to organized labor," he said.
At a recent luncheon for House Republicans, Representative Ray LaHood of Illinois told Andrew H. Card Jr., the White House chief of staff, that the administration had put moderate Republicans in a tight spot. "This could hurt some Republicans," Mr. LaHood said in an interview. "People have relationships with folks in the labor movement."
The Republican-controlled House voted, 295 to 132, to set up the department, rejecting an amendment by Constance A. Morella, a Maryland Republican with many federal employees in her district, that would have let workers belong to a union unless they were assigned new duties relating specifically to the war on terrorism.
On Thursday, a Senate committee voted to keep current civil service rules. "I can't believe, frankly, that the president would veto the bill over this," said Senator Joseph I. Lieberman, the Connecticut Democrat who is the principal architect of the Senate bill.
Over the last week, administration officials have gone on the offensive against many civil service and union rules. Kay James, director of the Office of Personnel Management, criticized the union contract at the Immigration and Naturalization Service because it lets employees refuse to accept temporary assignments that last more than 30 days. She said this provision hurt the agency's ability to meet its mandate to move 300 Border Patrol agents to the Canadian border.
 
 

Governor Ryan Announces State to Receive $2 Million in Federal Funds for Department of Corrections

llinois Going Home Program to support prisoner reentry initiatives

23 July 2002

SPRINGFIELD -- Governor George H. Ryan today announced that Illinois will receive $2 million in federal funds to support prisoner reentry initiatives.

In a recent Department of Justice news release, Attorney General John Ashcroft stated that the Illinois award was among 68 grants totaling $100 million to support efforts to ensure public safety and reduce victimization by helping returning offenders become productive members of their communities. Illinois was among 49 states receiving the funds.

"These federal funds will help us continue our progress in administering programs designed to rehabilitate individuals and to reduce crimes committed by prior felons," Governor Ryan said. " If we can give offenders an opportunity to finish their education and achieve employment, it is more likely they will not return to the activities that can lead to their return to corrections facilities."

The grants awarded by the Justice Department's Office of Justice Programs are part of the Serious and Violent Offender Reentry Initiative, an unprecedented collaboration among the departments of Agriculture, Commerce, Education, Health and Human Services, Housing and Urban Development, Justice, Labor and Veteran Affairs.

"By educating and treating offenders, we are not only helping them improve their lives, we are reducing the chance they will return to crime and drug abuse," Ashcroft stated in the release. "My hope is that the reentry programs will improve public safety and reduce the burden on law enforcement and corrections."

IDOC's request for the $2 million grant will be used to implement the Illinois Going Home Program. This program will build on existing services provided by IDOC and other government agencies in partnership with the North Lawndale Employment Network, a network of community and faith-based providers who have been serving returning offenders for three years.

"This integrated system will provide various levels of reentry services to 200 offenders returning to the North Lawndale community in Chicago as well as to offenders returning to the neighboring communities of West Garfield, Austin and West Humboldt Park," Snyder said. "Program participants will include youth and young adults with violent tendencies or a high risk of recidivism. Initial steps will be taken to replicate this model in other Chicago communities with high concentrations of ex-offenders."

Snyder said the key to the program's success will be the use of newly formed transition teams, which will include IDOC parole officers, Treatment Alternatives for Safe Communities (TASC) case managers and North Lawndale Employment Network staff. The transition teams will have contact with participants before they are released as well as access to all relevant information about each participants incarceration, assessments, and terms of release. The program participants will have access to an established network of services, including assessment, case management, cognitive restructuring, a voucher pool for treatment, transitional housing, employment training and placement assistance, and specialized youth services.

The Illinois Criminal Justice Information Authority, the state criminal justice planning agency, will coordinate a quasi-experimental evaluation which will track recidivism rates in three groups: a) high intensity group those who will be receiving comprehensive formal services; b) moderate intensity group-those who will be receiving informal community support; and c) the normal transition group monitored by parole officers.

This program will promote the systematic build-up of state/community reentry systems through ongoing strategic planning and fund development. This will be accomplished by leveraging at least $948,000 in in-kind contributions from IDOC, Illinois Workforce Advantage, the Illinois Criminal Justice Information Authority, the Illinois Department of Employment Security, TASC, and the North Lawndale Employment Network.

"The Illinois Going Home Program grant application reflects Governor George Ryans commitment to public safety," Snyder said. "This commitment has allowed Illinois to become a leader in reintegrating ex-offenders into the community."

Under his administration, Ryan has doubled the number of parole agents from 183 to 366, and helped modernize the way they work to enable them to spend more time on the streets where they are most effective. Futures for Kids, the Governors childrens policy agenda, has identified juvenile justice as a major policy initiative, increasing substance abuse treatment services for youth in IDOC and the community court system, and increasing mental health screening and services for youth being released from the juvenile justice system.

Also, in an effort to revitalize the highest need communities, the governor created the Illinois Workforce Advantage. This place-based initiative targets the Chicago community areas of North Lawndale, Humboldt Park, Englewood and Little Village for targeted infusions of state and local resources to improve the overall community.
 

 

Prison fight in court, on the road
 
By DAN CHURNEY
Staff Writer
The Daily Times
22 July 2002
 
Prison union officials failed Friday in St. Clair County Circuit Court to have the state held in contempt for announcing layoffs at Sheridan prison.
The American Federation of State, County and Municipal Employees, which represents workers at Sheridan prison, filed the contempt motion, because the union claimed the state was going to ignore a temporary restraining order which bars the state from discharging employees at the Sheridan facility, said Rob Fanti of Ottawa, president of AFSCME Local 472.
According to the restraining order, layoffs are prohibited until the layoff issue is arbitrated between the union and the state.
The Department of Corrections declared last week that Sheridan prison will close at the end of the business day on Thursday, Aug. 15, and all employees will be laid off.
About 450 people work at the institution.
The St. Clair County judge denied the unions contempt motion, but the judge did say her order against layoffs is still in effect for layoffs which occurred during the 2002 fiscal year.
However, this statement has created confusion among Sheridan workers, Fanti said, because the 2002 fiscal year ended July 1 and it is now unknown whether the restraining order will prevent layoffs when the prison shuts down in August.
Fanti added that he is awaiting clarification on this matter from his unions legal experts.
On another front, the union is planning a caravan Thursday from Ottawa to Springfield.
The motorcade will assemble at the Value City parking lot at 8 a.m. The public is invited to participate. The convoy is scheduled to arrive in Springfield at 11 a.m.
After the procession arrives at the state capitol, a press conference will be held and petitions containing 40,000 signatures will be presented to Gov. George Ryan urging Ryan to keep the prison open.
Union officials and other observers believe Ryan decided to close the Sheridan facility because the union filed a lawsuit against Ryan this year over privatization of food service workers at the prison.

Overcrowding is already a big problem for prisons
 
Letter to the Editor
Pontiac Daily Leader
Friday, July 19, 2002  

Overcrowding is already a big problem for prisons
In the course of events that surround the closing of Sheridan Correctional Center, while this governor plays his political games, an Officer was stabbed in the back in Graham Correctional Center. Like all the institutions in the state, they have received inmates from Sheridan, as well as the counties, filling them to the max. More inmates and less eyes to watch someones back.
What provoked this Officer to be shanked? The inmate could have had a falling out with his gang and the only way to get reinstated might have been to short shank the next Officer on the hall, or the next nurse, or the next counselor. It will get worse, the more they are packed into institutions, the bigger the powder keg. With Godspeed, this Officer will survive, but what about the next time?
They close a prison down and herd the inmates into other institutions because there isnt any money. But they build, not one new prison, but now two. Grayville will be groundbreaking for a new maximum-security facility before summers end.
Out of 28 institutions in this state, nine stayed in their budget. Sheridan was one of them. The new prison in Kankakee is more than $80 million, without over-runs, Grayville is set at $140 million, Sheridan was at $28 million. Did the Governors budget just apply to LaSalle County?
Grayville costs $140 million, without over-runs, while Thompson, another maximum-security facility, sits empty except for captains running around doing fire-watch. Again, I say, you wont find a Correctional Officer who will say we dont need more room. But I suppose holding off on construction of Grayville until next years budget makes too much logic.
Gov. Ryan couldnt find money to keep Sheridan open, but he found money to not only build a new prison in his backyard, but he also found $6 million of taxpayers money to build a Water World, complete with a waterfall that refresh 1,500 bathers from his hometown-Kankakee.
Meanwhile, the mentally handicapped are told to find somewhere else to live because Zeller Zone in Peoria is being shut down. Bet everybody would like to meet the rocket scientist who figured this budget out. More importantly, the Republican Senate sided with a governor, who 7 out of 10 people want removed from office, and let the budget veto go through because they wanted to go home too.
As a Correctional Officer, Im mad. As a taxpayer, Im furious. God watches over the Correctional Officers because this administration wont. A fast recovery Officer Whitford, our thoughts and prayers are with you.
 
Robin Forsyth
Ottawa, IL
 

Delayed state prison cuts could increase layoffs
 
By RICHARD GOLDSTEIN
H&R Springfield Bureau Writer
19 July 2002
 
SPRINGFIELD -- Deeper job cuts in Illinois prisons than previously envisioned could result from the state's inability to close facilities or layoff employees, an Illinois Department of Corrections spokesman said Thursday.

The new fiscal year began July 1, but as of Thursday, nine facilities slated for closure by the Corrections Department continued to operate. And no full-time state employee in the department had lost a job from budget cuts, spokesman Brian Fairchild said.

There is money for winding up operations at some of the facilities. Others, such as the four work-release centers scheduled for elimination, would have had to cease operating on July 1 to reap all the savings projected in the budget.

"The longer these deductions are delayed, the greater the likelihood that they will be deeper across the board," Fairchild said. "We only have so much money to work with."

Fairchild called the projected 1,600-employee net reduction in the Corrections Department a "moving target." That total would be a 9.8 percent decrease from the work force in the previous fiscal year. Fairchild said the agency's budget has $46 million less, a 3.6 percent decrease.

Fairchild said the Corrections Department has responded to the delay by freezing hiring and transfers until it figures out how much money it will spend on operations that are not provided for in the budget.

Buddy Maupin, the Marion-based regional director for AFSCME and the union's point man on prison issues, argued downsizing the agency is dangerous.

"They can't do these closures without doing serious harm to security in the prison system or to public safety," Maupin said. "You either have to let people go in the prison system or cram them in where you don't have room for them."

Fairchild said that despite the deep cuts, security would remain "adequate."

The delays are legal and bureaucratic.

The agency has yet to complete meetings with the Illinois branch of the American Federation of State, County and Municipal Employees. Union contracts require that the union be briefed about how the closures will proceed and who will be affected. Fairchild said the meetings should conclude by the end of the month.

A lawsuit brought by the union has also placed closure of many of the facilities on hold.

Richard Goldstein can be reached at 782-4043.
 
 

Judge Refuses to Block All State Layoffs
 
July 19, 2002

The Ryan administration argued that the injunction only pertains to those layoffs that were scheduled in Fiscal Year '02 (which ended on June 30), but not those that are part of the FY '03 budget. The Union took the position that the injunction was intended to bar all layoffs as long as there is an unresolved dispute regarding the procedures by which the layoffs would be conducted.
While the Judge left her injunction in place, she unfortunately did not agree with the Union's positionand refused to find "contemptuous behavior " on the State's part. Moreover, because only the Judge can clarify the meaning of her order, there is no basis on which to appeal her decision.
AFSCME attorneys are exploring the possibility of other legal action. But for now hundreds of AFSCME members for whom layoff notice has been received are in danger of losing their jobs.
In the meantime there have already been five days of hearings held in the layoff arbitrationwith the next hearing set for July 23 in Springfield. The arbitration is challenging the layoff procedures, e.g. whether temporary employees, including those hired through temp agencies, need to be let go before state employees are laid off; how much time employees who have an opportunity to fill more than one vacancy are allowed to make their decision; and which vacancies in which order must be offered to those employees facing layoff.
The vigorous pursuit of our contractual rights has resulted in delaying the layoffs thus farand we intend to continue to do everything possible to protect our members' rights. Ultimately, undoing the havoc wrought by Gov. Ryan and his minions will take action on two fronts. We must begin now to pressure legislators to raise additional revenues and restore funds that were cutwhether in a special session or in the veto session. And we must work to elect a new governor exercising bold leadership to repair the damage

Jim Ryan defends manager
Hendren linked with MSI scandal
 
By MIKE RAMSEY
COPLEY NEWS SERVICE
19 July 2002
 
CHICAGO - Republican candidate for governor Jim Ryan on Thursday pledged to "change the culture of sleaze" in Illinois government - then faced questions about his new campaign manager's connection to the MSI scandal in the 1990s.
Longtime GOP strategist Carter Hendren, who served as campaign chief for Gov. Jim Edgar, testified in the 1997 federal prosecution of Management Services of Illinois. The Springfield company, which was cozy with the Edgar administration and Senate Republicans, bilked the state out of millions through no-bid contracts with the Department of Public Aid.
Hendren, chief of staff for Senate President James "Pate" Philip, R-Wood Dale, received a computer from MSI in 1994 and initially provided false information to authorities about how he paid for it. A Hendren aide later was identified as an unindicted co-conspirator in the case. Hendren himself was not charged - a point Ryan stressed Thursday.
"Carter Hendren was never accused of criminal wrongdoing. He was never one of the defendants," the attorney general said after addressing the Chicago Crime Commission.
During a speech to the group, Ryan outlined a wide-ranging anti-crime plan for Illinois that included his intent to recruit officials of integrity.
"We have to change the culture of sleaze by bringing the best people into government who want to serve," Ryan told about 50 people. "The only reason they're in government is to help people. The only reason they're in government is not to enrich themselves and their friends. The reason they're in government is to serve."
Ryan called Hendren "a good man," while a spokesman for Chicago congressman Rod Blagojevich, Ryan's Democratic opponent in the Nov. 5 election, blasted the new campaign manager.
"Given the public's thirst for reform and for reassurances about establishing or restoring ethics in state government, this personnel decision is certainly one that is surprising," spokesman Billy Weinberg said. "It certainly begs the question: Is there anyone in the Illinois Republican Party who is free of the taint of corruption?"
The theme of scandal didn't end with MSI. Ryan answered other questions from reporters about how he, as the state's chief legal officer, has reacted to other recent issues.
Ryan confirmed that his staff will review the legality of a trust fund set up to help lame-duck Gov. George Ryan pay mounting legal bills. Ryan's dwindling campaign fund has been indicted in the federal corruption probe into his 1990s tenure as secretary of state.
"There isn't anything wrong with it," the governor told a reporter in Springfield. "The Gift Ban Act says that defense funds are exempt and friendship gifts are exempt.
"This was put together by people who came to me and said, 'What can we do to help? We want to do something to help you.' They came up with the idea of putting this together. They put it together. It's going to be fine."
Meanwhile, Jim Ryan explained his office's legal defense four years ago of then-Comptroller Loleta Didrickson after some of her employees made calls on state phones to further her bid for U.S. Senate.
Ryan lately has considered suing to recover taxpayer funds in response to allegations that House Republicans directed on-the-clock staff to work on GOP campaigns in 2000. A federal investigation reportedly has begun.
"That's comparing apples and oranges," Ryan said when asked about the two cases. "The case involving Loleta was dismissed by the court as meritless, and the amount of money was de minimis and it was paid back. We're talking about allegations of wrongdoing that involve a substantial amount of money ... and potentially clear violations of the law. There's a big difference."
Asked about similar allegations regarding the state Democratic Party under Illinois House Speaker Michael Madigan of Chicago, Ryan said, "We're talking to the United States attorney's office, and we haven't made a final decision on who will handle it."
Ryan also suggested he is looking into the legality of large bonuses Madigan offered to staff members who did political work.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.
 

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Corrections freezes hiring
Officials site budget in making move
 
By DOUG FINKE
STATE CAPITOL BUREAU
18 July 2002
 
The Illinois Department of Corrections this week stopped filling job vacancies or allowing employees to transfer within the prison system because of budget problems.
Corrections officials said Wednesday the move is temporary, until the department can fully assess the impact of budget cuts imposed last month.
However, the union representing prison guards said the department's action will lead to understaffed and unsafe prisons and is retaliation for the union's fight against job cuts demanded by Gov. George Ryan.
"The governor's office is venting its spleen against the employees at the Department of Corrections," said Henry Bayer, executive director of the American Federation of State, County and Municipal Employees Council 31.
Union representatives were told Monday that Corrections was not filling vacancies or allowing workers to transfer from one facility to another. Monday also was the day layoff notices were given to the 424 employees of the Sheridan Correctional Center in LaSalle County that is being closed because of the state's budget problems. The layoffs are effective Aug. 15.
The department is closing four other facilities and wants to cut hundreds of additional jobs as part of the new state budget that went into effect July 1.
"Until all of the layoffs are set and budgets established; no vacancies will be filled or transfers processed for a short period of time," Corrections spokesman Brian Fairchild said.
Just how short a time depends partly on a series of meetings the department must have with union representatives over layoffs.
Fairchild said those meetings should be concluded "within the next couple of weeks."
In the short term, the prohibition on transfers means workers facing layoffs at one facility cannot fill a vacant position elsewhere. Bayer said there are 65 vacancies at the Stateville Correctional Center in Joliet that could be filled by Sheridan workers about to be laid off. Sheridan is less than 40 miles from Joliet.
"Presumably, 65 officers could have gone to Stateville," Bayer said.
Fairchild said he doubts that is the case. "We don't have many, if any, vacancies at Stateville," he said.
In fact, Corrections doesn't even want to call unfilled jobs "vacancies" since it isn't sure it can afford to fill them. Fairchild said the department is trying to "get a clear idea of a final payroll that our budget will support at each facility."
"We're not going to make (job) promises our budget can't keep," he said. "We don't want to get into a situation where we have to do (more) layoffs."
Bayer said that if prison jobs are allowed to go unfilled, it will result in dangerous understaffing.
"If these people are not being replaced, these facilities are going to be even more dramatically short-staffed," he said. "It is a very volatile situation."
"We will make sure payroll levels maintain security," Fairchild responded.
In addition to Sheridan, the Valley View Youth Center in St. Charles is being closed. The 171 employees there will be out of work July 31.
Prison work camps at Hanna City, Greene County and Paris also will be eliminated, costing 233 workers their jobs. Layoff notices, which provide a 30-day warning, have not yet been sent to those employees.
To save money, Corrections also wants to cut 47 maintenance jobs, 650 food service jobs, 124 recreation jobs and 490 sergeants. Court challenges have so far prevented the agency from proceeding with those layoffs.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Fast-track issue puts focus on Shimkus-Phelps race
 
By BERNARD SHOENBURG
POLITICAL COLUMNIST
18 July 2002
 
The national AFL-CIO is running television advertisements critical of U.S. Rep. JOHN SHIMKUS' support of fast-track trade legislation.
This could be yet another indication of the focus that will come to the new 19th Congressional District, where Shimkus is being challenged by another congressional incumbent, Rep. DAVID PHELPS, D-Eldorado. Phelps has already been endorsed by the Illinois AFL-CIO.
Illinois is one of seven states where such advertising is being targeted, according to an AFL-CIO statement. In Illinois markets including Champaign, Springfield, Paducah, Ky., and greater St. Louis, the ad will urge people to contact Shimkus to protest his votes for the legislation in December and May.
The fast-track legislation allows Congress only to vote up or down - without amendments - trade agreements negotiated by the administration. The labor organization says that means Congress can't review the deals in areas such as environmental and worker safeguards. It claims jobs will move to other countries as a result.
"Fast track lets giant corporations and their backers end-run around important checks and balances in our government," AFL-CIO President JOHN SWEENEY said in the statement. "Now is the wrong time to put our trust in big corporations when it comes to our nation's economy."
Members of the House and Senate are working to reconcile two forms of the legislation, which could produce a final version and another vote.
Phelps said his region of southern Illinois has been hit with plant closings because of trade legislation like the North American Free Trade Agreement and permanent normal trading relations with China. If Congress can't improve agreements, not just vote them up or down, he said, "What's the legislative process about?"
CRYSTAL LITZ, campaign manager for Phelps, said Shimkus has twice been the deciding vote to pass fast-track legislation.
STEVE TOMASZEWSKI, spokesman for Shimkus, said fast track allows members of Congress to vote against agreements if there are elements they don't like. Shimkus wasn't in Congress when NAFTA was passed with bipartisan support, including that of U.S. Sen. DICK DURBIN, D-Ill., Tomaszewski noted.
"Congressman Shimkus supports free and fair trade," Tomaszewski said. He said Shimkus supported tariffs on steel imports to avoid dumping of foreign steel into the U.S. market. Phelps said he also favored the tariffs on steel.
Tomaszewski also said that anyone voting for fast track in close House votes could have been called the deciding vote.
The TV ads will last a week, said LANE WINDHAM of the AFL-CIO in Washington, D.C. She did not say how much is being spent.
Another indication that the Phelps-Shimkus race is considered a good one is that Phelps gave the Democratic radio response last weekend to President GEORGE BUSH's weekly address. Phelps called for tough action against corporate wrongdoing.
"It was a great honor," Phelps said. "It was a historic highlight in my political career."
And Shimkus' vote for a prescription-drug plan for seniors has been hailed in television ads paid for by the United Seniors Association, which gets at least some of its money from the pharmaceutical industry.
Poll on FOID cost
A statewide poll done for a Chicago TV station indicates that most Illinois residents favor an increase in the cost of a firearm owner's identification card.
The 1,250-person poll done Tuesday by SurveyUSA for CBS2 Chicago, also known as WBBM-TV, showed 57 percent for a fee increase, 12 percent for a decrease, and 28 percent saying it should stay the same.
A FOID card costs $5 for five years.
In Cook County, 67 percent were for the increase, while in the 96 counties outside the Chicago area, 42 percent were for the increase, another 42 percent wanted it to stay the same, and 13 percent were for a decrease, according to MIKE FLANNERY, the station's political editor.
The poll also found that 73 percent of respondents statewide said the waiting period to buy a gun in Illinois should go from three days to seven days, he said.
Gun ownership, according to the poll, is 25 percent statewide and in the collar counties surrounding Chicago, but only 13 percent in Cook County. About 31 percent of people own guns in the Peoria area, where Flannery and crew went to the Heart of Illinois fair for a Wednesday night live newscast on their Chicago station.
The poll, in which questions were asked by a recorded voice and responses were made by touch-tone telephone, has a margin of error of 3.1 percent, Flannery said.
The station also reported that both candidates for governor are OK with the three-day waiting period and oppose raising the FOID card fee. Republican JIM RYAN has tried to make hay out of Democrat ROD BLAGOJEVICH's introduction of a bill years ago to dramatically raise the fee. Ryan says Blagojevich can't run from his record. Blagojevich said the reaction to his legislation made him change his mind.
Dunlap joins Dart
Democratic state treasurer candidate TOM DART has a new campaign manager.
CATHY DUNLAP, 46, said she took a pay cut when she left her city of Chicago job, where she was paid about $75,000 to work on anti-violence issues. She's known Dart for years, she said, and thinks he would be a great treasurer.
Dunlap, a Chicago native and resident, is a former staffer for the League of Women Voters of Chicago and has a political science degree from Northwestern University. She has worked on many campaigns, but the first she managed was that of IRIS MARTINEZ, who won a Democratic primary against Chicago Ald. MICHAEL WOJCIK of the 30th Ward.
Dunlap replaced MIKE GRADY, 32, of Springfield as campaign manager. Dunlap and Grady both say that it was Grady's desire to get back to Springfield - and not any problem with the campaign - that caused the change.
"After five months living in Chicago, family considerations got to the point where I really need to be spending more time at home," said Grady, a father of two children under the age of 5.
Grady, former House liaison for Secretary of State JESSE WHITE, remains with the Dart campaign and will be focusing on downstate field organizing and working with the media. Dart is running against GOP Treasurer JUDY BAAR TOPINKA.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

Prisons owe $500,000 in overtime
Corrections department cadets trained without pay
 
By John O'Conner
Associated Press Writer
17 July 2002
 
SPRINGFIELD - The state's prison system must hand over nearly $500,000 in overtime pay to guards who were yanked out of bed for midnight exercises while they were in training. The federal Department of Labor has ordered Corrections to pay 2,071 former cadets $236.60 apiece for off-hours physical training - often in the middle of the night.
"If your employer rolls you out of bed, makes you stand at attention, makes you do push-ups and yells at you while you're off the clock and asleep,the employer has a responsibility to pay you," said
Buddy Maupin, regional director of the American Federation of State, County and Municipal Employees, the guards'union. The Labor Department, acting on complaints, investigated the Springfield-based training academy for a two-year period beginning in November 1999. That's about the time Corrections adopted a paramilitary approach to its academy, including physical training at all hours of the night.
Corrections spokesman Sergio Molina said training was not always conducted during sleeping
hours, but before or after the day's eight-hour instruction period. Molina said physical training is
necessary to get ready for demanding jobs in the state's prisons and juvenile detention centers.
"A lot of these cadets are working the midnight shift, very early hours," Molina said. "It gets the unit to work together, whether it's two o'clock in the morning or six clock in the morning."
Both sides agreed to the Labor Department's award - $489,998.60 - which pays each officer half the average
cadet salary for 40 hours overtime worked during the training classes.
The award comes a year after an arbitrator ruled that Corrections must pay $9.5 million in overtime because parole agents were ordered to be on call around the
clock for nearly a year.
 

George Ryan at it again

artwilson.jpg

Art Wilson
17 July 2002
 
As we can all still see, George Ryan is still bombing the lives of Illinois citizens and state workers. The Greene County boot camp got targeted and is scheduled to close in the very near future. This closing was like dropping a giant boulder in a very small lake - the splash is felt by more than just officers and staff who work there.
The community itself will suffer from such a major impact, and the ripples, like shock waves, will travel outward, away from the splash, and can be seen from the shoreline of every institution
and town in the area.
 This ripple effect won't
just capsize the employees of the boot camp. It will sink the positions of other junior officers at other facilities associated with the boot camp.
But does Mr. Ryan care? We pretty well know that he doesn't and not too many of our elected officials seem to care. Makes you wonder just how many hands have been in the cookie jar.
What could Mr. Ryan have on so many members of the legislature that they would vote one way at first, and then change their minds when their votes really counted? What is surprising to me is how we can close down successful facilities to eliminate jobs and still create new jobs that pay more than the ones being eliminated.
This whole budget situation is one big mess, this is true. But, it looks like individuals in our state government have lost their minds.
Illinoisans and state workers see a lot of crazy things going on that makes no sense, and many wish the federal government would step in a little farther and start organizing things so
we, the citizens, could get a
better view of just what the hell Gov. Ryan IS trying to accomplish.
Is he trying to balance the budget or topple over as many lives, businesses and futures as he can? I feel that Mr. Ryan's day of reckoning is coming, and he knows it. That's why he is acting like a bull in a china shop.
People, don't you think it's time that we grab the bull by the horns? This coming election, we need to perform a few castrations in the political ring.
If we do that, maybe in the future, the rest of the herd will be a little less aggressive towards us.
 

Pink slips have union seeing red

 

By DAN CHURNEY 
Staff Writer
16 July 2002

SHERIDAN Employees at Sheridan prison started receiving notices today informing them their institution will close next month and they will be laid off from their jobs.

It looks like Gov. Ryan is trying to inflict as much pain as possible on the employees of Sheridan prison, said Rob Fanti, president of American Federation of State, County and Municipal Employees Local 472, which represents Sheridan prison workers.

The notices state the facility will close at the end of the business day on Monday, Aug. 15 and all workers will lose their jobs without the possibility of transferring to other prisons in the state. Insurance benefits will continue for a few months after their discharge.

Fanti, who is a counselor at the prison, said he and his colleagues are baffled.

Workers had been led to believe they would be offered transfers to other prisons as recently as two weeks ago, when Department of Corrections officials told them at least 221 jobs would be available for displaced Sheridan workers at prisons near Joliet and Sumner, Fanti said.

However, DOC officials now tell Fanti the funding for these posts has vanished.

Fanti is also wondering who will maintain and oversee the prison once it is closed, if the entire present workforce is laid off.

Itll need a firewatch and maintenance people. This is a huge place which needs a lot of people just to maintain it, Fanti noted.

Fanti added that before the notice he hadnt expected any action on layoffs or transfers until September at the earliest because of ongoing arbitration and a restraining order which is in place against layoffs.

DOC spokesman Sergio Molina said according to the union contract, employees only have transfer rights to another prison in the same county and because no other prisons are located in La Salle County, Sheridan workers cant bump lower seniority employees at other prisons.

Regarding the need for a skeleton crew to maintain the institution, Molina said some workers will remain at the property to provide upkeep.

Were not just going to walk away from this facility, Molina said.

With the staff now facing joblessness, the inmate population continues to drain away to other institutions.

Molina said the DOC plans to move about 500 inmates within the next week. The population stood at 950 convicts today.

One year ago, the inmate level was 1,627.

Fanti said he has plans for what he will do after the prison shuts down next month and he loses his job.

Itll let me work full time on reopening the prison.

 


Democratic staff work under review
 
By DOUG FINKE
STATE CAPITOL BUREAU
16 July 2002
Attorney General Jim Ryan will open a preliminary review into whether House Democratic staffers performed campaign work on state time.
 
Crain's Chicago Business magazine reported Monday that state records show that in 1999 and 2000, House Democratic staffers repeatedly visited legislative districts in which there were contested elections. The staffers billed the state for travel expenses for those visits.
Ryan spokeswoman Lori Bolas said the office will meet with Chicago attorney Richard Means, who obtained the travel records cited in the Crain's story.
"We are going to be talking with Mr. Means and requesting the nformation that he reportedly had," Bolas said. "We are exploring whether we need to take further action."
Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said the staffers were helping legislators with constituent services, not performing campaign work.
"If (Jim Ryan) wants to look into it, we'll cooperate," Brown said. "It's all public record."
Madigan is also chairman of the state Democratic Party.
According to Crain's, the House Democratic staffers made the trips from November 1999 to June 2000. After June, many of those employees were shifted to campaign payrolls and assigned to work in the legislative districts where they'd made the earlier trips.
All of the staffers were working for incumbent state lawmakers who, as incumbents, were entitled to additional staff assistance, Brown said.
In addition, he emphasized that during the height of the 2000 campaign season, those staffers were paid with campaign money, not state tax dollars.
The U.S. attorney's office is investigating House Republican Leader Lee Daniels, R-Elmhurst, and his campaign operation for allegedly having House GOP staffers perform campaign work on state time. Ryan, the Republican candidate for governor, launched a preliminary investigation into the Daniels operation after another Crain's article.
He eventually turned over the information to the U.S. attorney's office. Bolas said the office is using the same procedure with Madigan.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Incumbent matchups may determine control of House
Shimkus-Phelps race one of several across country
 
By DORI MEINERT
COPLEY NEWS SERVICE
15 July 2002
WASHINGTON - Almost every Thursday morning when Congress is in session, Democrat David Phelps and Republican John Shimkus join other House members for an hour of prayer and religious inspiration.
 
The two Illinois lawmakers then step outside and duke it out - figuratively speaking, of course.
Both incumbents want voters to re-elect them this fall.
But because the boundaries of their districts have been redrawn by reapportionment that occurs every 10 years, they're playing the political equivalent of "musical chairs."
There's only one House seat available between them. When the campaign stops, one of them will be out of a job.
"Obviously, it's a little awkward and a little bizarre," Shimkus said of having to run against a fellow House member.
There can be some tense moments.
"When two members run, every time the elevator opens ... you could encounter the fellow who is trying to take your job away," said a congressional aide involved in a campaign between two incumbents a decade ago.
Shimkus suspects that other members have been discussing his race when they suddenly go silent as he approaches.
It's uncomfortable, too, for others attending the Thursday morning prayer breakfast "because you want to wish them the best and you know somebody is going to get injured in this," an aide said.
It's small comfort that these face-offs happen to only a handful of House members, and then only once a decade when congressional district lines are redrawn. Illinois will lose one of its 20 House seats next year.
This year, the political parties are paying close attention to incumbent match-ups as Democrats need only to win six additional seats to gain a majority of the House.
"Control of the House is at stake," said Carl Forti, spokesman for the National Republican Congressional Committee, adding that most of the newly drawn districts favor Republicans.
Democratic Congressional Campaign Committee officials consider the incumbent-vs.-incumbent races the most competitive in the country.
"They are major priorities for both parties," said DCCC spokeswoman Kim Rubey. "With the margin so close, every race is important. But these races are crucial for us."
This fall, there will be four pairs of opposing-party incumbents facing off. Another four pairs of incumbents of the same party are competing in primaries. In both types of races, the individuals have worked with each other for years. Such knowledge can be turned on each other in a tough campaign.
"In almost all cases, you know you're going to have two proven candidates who can raise money, who have interest groups, constituency groups, available to them," said political analyst Stuart Rothenberg. "It just means there's more money, more interest and more intensity."
Most of their Illinois colleagues describe Phelps and Shimkus as "nice guys" and few can imagine the campaign between the two former school teachers (Phelps also is a gospel singer) turning nasty.
But other incumbent-vs.-incumbent races already have.
The race between Rep. Nancy Johnson, R-Conn., and Rep. Jim Maloney, D-Conn., has spilled onto the House floor. House Ways and Means Committee Chair Bill Thomas, R-Calif., accused Democrats of "Maloney baloney" in response to their complaints that Thomas refused to let Maloney testify at a recent hearing on Maloney's bill. Thomas was reprimanded for violating House decorum and was prohibited from speaking on the floor the remainder of the day.
"It's like first grade. They're out there calling names," Maloney's press secretary Betsy Arnold complained.
Rep. Ronnie Shows, D-Miss., has filed a complaint with the House ethics committee against his opponent, Rep. Chip Pickering, R-Miss. Shows has accused Pickering of improperly using taxpayers' dollars to hold a meeting on the farm bill in Shows' district.
By most accounts, primary races, where a sitting House member is forced to run against a member of his or her own party, are the most bitter.
Other House members noticed the tension within the Pennsylvania delegation after the remap there pitted two Democratic House members against each other. Rep. John Murtha, a 30-year House member and member of the Appropriations Committee, bested four-term Rep. Frank Mascara in May.
"It got pretty personal," said Rep. Jerry Costello, D-Ill. (Belleville). "It puts members in a pretty awkward position when they're discussing issues on the House floor."
Even the most senior House member is not immune. In Michigan, Rep. John Dingell, who is seeking his 24th two-year term, is facing four-term Rep. Lynn Rivers for the Democratic nomination.
"Primaries are just unnatural races because you're trying to campaign against a fellow party member," said former Rep. Glenn Poshard, recalling his race against fellow Democratic House member Terry Bruce in 1992 after the previous redistricting. "It tore my insides out a lot of times."
"We had some very classic debates and people were forced to choose sides," Poshard said. "Neither of us wanted to give up our seats."
Although he and Bruce were able to keep it professional, the people around them took the fight more personally, he said.
"It was more bitter because of my friends and Terry's friends. They take the race very, very seriously. I think feelings run very high in primaries," Poshard said.
Most incumbent match-ups offer clearly defined Democratic and Republican agendas. In recent weeks, Phelps accused Shimkus of "an offensive display of special interest peddling" for supporting the GOP prescription drug plan favored by the pharmaceutical industry even as that industry was busy raising money for the Republican Party.
Phelps, who sided with labor unions in opposing normalizing trade relations with China, says, "Shimkus is not a voice for working families in Illinois."
But Shimkus and Phelps share many of the same conservative positions on social issues. Both are anti-abortion and opposed to gun control.
Shimkus has an advantage in the race because he currently represents about 63 percent of the new congressional district. It also doesn't hurt to have his party in the White House. Vice President Cheney appeared at his April fund-raiser. Shimkus says his seat on the House Energy and Commerce Committee makes him the "go-to" guy on energy issues for Illinois.
Both Shimkus and Phelps have promised not let the campaign disintegrate into personal vindictiveness.
"At least we probably both have an appreciation for how hard each other is working," Shimkus said.
Phelps agreed.
"We don't know each other well enough to call each other close friends. But we're certainly not enemies," Phelps said.

Lee Daniels in danger

Rich Miller
15 July 2002

House Republican Leader Lee Daniels summoned his top lieutenants to Springfield last week for what was billed as an election strategy session. Instead, the meeting immediately morphed into a war council, as Daniels and his leadership team talked about how to fend off a surprisingly strong coup attempt.

Sources say about 30 House Republicans have signed a letter that asks Daniels to step down as House GOP Leader. If that's true, the renegades are now a majority of all House Republicans. Governor George Ryan has become involved with trying to put down the revolt, calling some coup plotters to state his firm support for Daniels and trying to calm some very panicky nerves. A few people close to Daniels have also been attempting to stop the stampede by confiding that Daniels just wants to serve out his current term as Leader and will step down in January.

Daniels' House operation is under federal investigation for allegedly subsidizing campaigns with taxpayer dollars - sometimes by falsifying documents. The probe has already resulted in Daniels resigning his long-sought chairmanship of the Illinois Republican Party, and now it threatens to destroy the rest of his career.

How much immediate danger this situation actually poses to Daniels is questionable, though. For one thing, some key Republican legislators with lots of fundraising and campaign experience are, for various reasons, either taking a pass on the coup or are trying to stop it. These legislators also happen to be among the most ambitious in the bunch, and all of them will likely stop anyone else from obtaining the top spot by putting pressure on Republican-leaning interest groups to withhold crucial campaign funds from the coup plotters. After all, no matter how much the interest groups want Daniels out - and many do - they also want him replaced with someone competent. And since all the qualified successors are refusing to overtly shove the knife in Daniels' back, then there's no reason for the lobbyists to stick out their necks.

The only formal mechanism for removing Daniels and replacing him before the elections is a special legislative session, but Governor Ryan has told some of the coup plotters that he will not call any special session. So, the best the plotters could hope for would be a Daniels resignation, but that action would probably require an enormous amount of public pressure, which means somebody would have to drop a bigtime dime on the guy - huge enough that Daniels would have no choice but to run away in shame. I doubt the plotters have enough brass for that sort of nasty game.

Plus, such a bombshell disclosure would make an already bad publicity situation much worse. Remember, this is still only July. Nobody pays attention to politics in July. The longer this fight runs, the greater the chance that it pops up on everybody's radar screen. Not to mention that the House Republicans would have no one running the operation if Daniels resigned. The brightest Repubs could spend the next few months jockeying over who will replace Daniels, rather than focusing on the election.

Without his resignation, though, the plotters believe they won't be able to accept money or staff from Daniels this fall without being tainted by his scandal. They're probably right. But if Daniels doesn't resign (and there is little in his history to suggest he will step down), it's still possible to devise a way around this problem by forming a new campaign committee without Daniels' overt fingerprints, or directing contributions to individual candidates rather than to Daniels' House Republican Campaign Committee.

Ideally, the mortally wounded Daniels would quietly step down and his members would amicably choose a temporary replacement until they could formally vote on the matter after the election.

But this situation is far from ideal. Daniels has the rules on his side and is far too stubborn to resign without some sort of nuclear explosion. And even if he did quit, replacing him would be a bloody mess.

My heart is with the coup plotters. They have plenty of courage and Daniels is definitely an embarrassment. But my head tells me the plotters have no idea what they'll do - or possess the talent to follow through - after they storm the palace. Daniels is often criticized for never having an end game in mind when he makes a big move. He devises tactics on the fly, almost always with less than stellar results. Unfortunately, his enemies are now guilty of the same thing.

 

Blagojevich would focus on India instead of Cuba
 
Bernard Schoenburg
14 July 2002

Cuba? No. India? Yes.
That was part of the message from Democratic gubernatorial candidate ROD BLAGOJEVICH in Springfield last week.
Talking with reporters about a variety of issues after receiving the election endorsement of the state AFL-CIO, Blagojevich said Gov. GEORGE RYAN's trips to Cuba were "a waste of time."
"The reality is," the congressman from Chicago said, "President Bush is not going to lift the sanctions against Cuba. His brother is the governor of Florida. There's the Cuban-American population in south Florida. It's just not going to happen. So why waste time on that?
"Why not have a governor who goes to India, with a huge market, a common reverence for democracy, mutual geo-political interests, American, or should I say Illinois, products in great demand, whether they be corn or soy products, or whether they be machinery, computer equipment, these sorts of things. Why not have a governor who goes out at least half of the year when we're not in session and works as hard trying to bring business to Illinois as we do traditionally as candidates to try to raise the resources to get elected?"
He said he'd try to go to India, if elected.
"I think there's possibilities in Israel," he added. "I think there's great possibilities in sub-Saharan Africa. They sure could use Illinois corn and Illinois soybeans. Yeah, I'll go anywhere we can export Illinois products."
So, does that mean more foreign travel?
"I wouldn't do foreign travel to do sightseeing. The only purpose would be whether or not you honestly can open up markets to export Illinois products."
His thoughts on Cuba seemed to differ a little from what he said back in January during a visit to Springfield. He said then he didn't envision any trips to Cuba in the short run, and he would "look for places that have better records on human rights. ... But I wouldn't rule out Cuba, because their record on human rights could continue to get better."
Blagojevich also said he'd like to bring NASCAR racing to DuQuoin.
"I really like the idea of that," he said. "That's a pet peeve of mine. If I'm governor, I want to bring NASCAR to DuQuoin. Imagine all the people coming from Missouri or Kentucky or Tennessee or Indiana, and probably further south."
Blagojevich tends to do these stream-of-consciousness things when near reporters and microphones, and he provided examples in two visits to Springfield last week - the AFL-CIO event and a Statehouse news conference announcing his endorsement by the Illinois Education Association.
He talked about his mother borrowing money to buy encyclopedias.
"I used to love reading those World Book encyclopedias, sitting on the living room floor, when my mother would watch 'Perry Mason,' because she had a choice of what channel to watch, and I was voiceless, basically, back then. And reading that World Book encyclopedia, reading about history and geography. Reading about birds. Incidentally, my favorite bird was the cardinal, even back then. ..."
You get the idea.
The bird reference may have referred to his post-primary southern Illinois pronouncement that he is a St. Louis Cardinals fan, given the outpouring of votes he got from the Metro East.
On both days, Blagojevich made a point to share a Bush-like statement about school performance.
"That 'D' I got in algebra when I was in high school was a classic example of grade inflation," he said at the AFL-CIO event. "But I was able to survive a bad grade because I knew how to read."
Sometimes, it's hard to figure out why candidates say what they say. Do all bad algebra students want to vote for one of their own? Maybe that's the theory.
Blagojevich is running against GOP Attorney General JIM RYAN.
AFL-CIO endorsements
While the endorsements given out by the Illinois AFL-CIO last week were overwhelmingly Democratic, that didn't carry over into Springfield-area legislative races.
Sen. LARRY BOMKE, R-Springfield, who has a 45 percent lifetime voting record with the labor group, got the nod, insiders say, because of his strong support for issues important to state employees. He couldn't stop the budget cuts intended to close the Lincoln Developmental Center, but he tried. He backed an early retirement plan. He's been for union-backed pension legislation.
Meanwhile, Springfield lawyer DON TRACY, Bomke's Democratic opponent, filled out an AFL-CIO questionnaire in which he answered the union's way just over half the time. The union group went with Bomke as an incumbent who, particularly in this harsh budget year, stood with them.
"Obviously, I'm disappointed," Tracy said. "He's voted their way a lot for a Republican."
Tracy is also a conservative Democrat whose family owns Dot Foods, a non-union business.
In the 99th House District, incumbent Rep. RAYMOND POE, R-Springfield, has a 31 percent lifetime voting record with the AFL-CIO, while Democratic challenger DON CRAVEN, a Springfield lawyer who represents some unions, might seem a likely candidate for endorsement. But Craven has been criticized by the Service Employees International Union Local 880 because a legal case he handled ended a system in which state-paid personal assistants for disabled people were required to pay "fair share" dues to the union.
No endorsement was made in the 100th District, with the matter referred to the union group's executive board. The candidates are RICH BRAUER, a conservative Republican from Petersburg, and CARL OBLINGER, a former Sangamon County circuit clerk who recently switched from being a lifelong Republican to run as a Democrat.
Democrats were endorsed in some other contested races in central Illinois. STEVE POHLMAN of Jerseyville got the nod over Rep. JIM WATSON, R-Jacksonville in the 97th House District; and JON MUMMERTT of Browning was chosen over incumbent Rep. RICH MYERS, R-Colchester.
Meanwhile, the staff of the state AFL-CIO has undergone some changes.
BILL LOOBY, 36, of Springfield, who has been the organization's communications director, has been promoted to political director. JEREMY SMITH, 28, who left a $26,000 job on the Senate Democratic staff, is the new legislative director.
The former AFL-CIO legislative director, SEAN STOTT, 32, of Springfield, now is director of governmental affairs for the Laborers International Union Midwest Region, which includes Illinois, Indiana, Missouri, Iowa, South Dakota, Nebraska and Kansas. Stott took the place of JACK REID, Democrat DAWN CLARK NETSCH's campaign manager in the 1994 gubernatorial race. Reid has been promoted to assistant regional manager of the laborers' group.
Anders to campaign staff
DAN ANDERS, 26, of the Chicago suburb of Worth has taken a leave from his $38,000 job as spokesman for Attorney General Jim Ryan to be a spokesman for Ryan's gubernatorial campaign.
Anders is pursuing a law degree at Chicago-Kent College of Law, the same school that Ryan attended. Anders also worked on the 1998 campaign, and in 1997-98, when he was getting his political science degree from Loyola University in Chicago, he was state chairman of college Republicans.
The main spokesman for the Ryan campaign is DAN CURRY, who is also on leave from the state office.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Madigan aide defends staffers' trips
 
BY CHRIS FUSCO STAFF REPORTER
July 14, 2002
 
 
 
A spokesman for state House Speaker Michael J. Madigan denied Saturday that the powerful Chicago Democrat had some of his workers do political work on taxpayers' dimes.
He was responding to a Crain's Chicago Business report that said Madigan legislative staffers "made numerous visits at public expense to contested House districts before the November 2000 election."
The visits came shortly before the same staffers were switched to political payrolls for the campaign season, according to public records obtained by Crain's.
Madigan spokesman Steve Brown insisted that the trips were made on behalf of incumbents who needed help tackling legislative issues. The trips had nothing to do with Madigan's role as state Democratic Party chairman.
"They didn't do campaign work. They were doing legislative work," such as setting up meetings and responding to constituent questions, Brown said. "To allege this is some subsidy of a campaign is a complete misstatement."
Any expenses paid to the staffers were for in-district travel only, Brown said. The trips, he added, are much different than those alleged to have been made by staffers for House Minority Leader Lee Daniels (R-Elmhurst). Daniels resigned his job as state GOP chairman after Attorney General Jim Ryan referred allegations that he was using taxpayer dollars for political gain to the U.S. attorney's office for investigation.
Brown noted that Daniels' staffers are alleged to have traveled to districts where there were no Republican incumbents, thereby increasing the possibility they were there solely to help with campaigns.

Campaigns skirt law, critics charge
Consulting firms elude disclosure
 
By Ray Long and Rick Pearson
Tribune staff reporters
July 14, 2002
In the spring of every election year, when lawmakers adjourn the General Assembly, their legislative staffs quickly shift focus from helping their bosses pass laws and craft budgets to the gritty political work of getting them re-elected.
Under Illinois' almost-anything-goes system of campaign rules, there is nothing illegal about state workers doing political work, either paid or volunteer, as long as they don't do it on state time. Policy staff members are often shifted off government payrolls and onto campaign payrolls to build a wall between what's permissible and what is not.
Whether that happened in 2000 is now the subject of a federal inquiry into the legislative staff of House Republican Leader Lee Daniels. Those allegations echo federal charges earlier this year that secretary of state workers under George Ryan also did Daniels' campaign bidding on the taxpayers' dime in 1996.
Daniels, a veteran lawmaker from Elmhurst, has denied any knowledge of wrongdoing in either election. But the allegations forced Daniels' ouster as state Republican chairman after only seven months, and his 19-year stint in House leadership may be in jeopardy.
"I'm very careful in what I do," Daniels said earlier this year. "And I tell my staff to be very careful."
That's what some top secretary of state and House GOP operatives said they were doing in 1996 when they set up three consulting companies that would be paid for their campaign work--duties they say were performed on their own time, not the taxpayers'.
But several also acknowledge that they took elaborate measures to keep their names off disclosure reports that publicly detail campaign expenditures. The intent, they say, was to prevent Democratic opponents from accusing them of doing political work on government time.
The practice now has some critics calling for reforms, saying the maneuvers subvert campaign disclosure laws.
In 1996, Michael A. Stokke, then the $79,872-a-year chief of staff to Daniels, set up a consulting firm called MAS Communications that was paid $12,333 from GOP campaign funds for his work on House Republican contests.
GOP paid employees
Another $11,756 in Republican money was funneled to Illinois Management Consulting Group Inc., a firm Jack Dorgan set up shortly after he went to work as Daniels' $78,000-a-year deputy chief of staff in December 1995.
And three high-level workers in the office of then-Secretary of State George Ryan--Brad Roseberry, Dan Karnatz and David Sullivan--established Triumph Consulting to coincide with the 1996 election. The three split about $20,000 to coordinate several House Republican campaigns.
The money they received came either directly from the House Republican Campaign Committee, which Daniels oversees, or through businesses controlled by controversial Republican insider Roger Stanley, who was recently indicted on federal charges of paying bribes to win contracts at Metra. Stanley has pleaded not guilty.
Stokke, who is now deputy chief of staff to U.S. House Speaker Dennis Hastert of Yorkville, and Dorgan, who is now a lobbyist and a Republican State Central Committee member, had no comment to questions about their consulting firms.
House Republican Campaign Committee disclosure reports for 1996 do not reflect any payments to Triumph. That, sources say, is because the firm was paid by a company owned by Stanley. Triumph was retained as a subcontractor by Stanley to monitor a handful of northern Illinois House contests. One source said its role was to act primarily as a "baby-sitter" because "Lee generally had a young, pretty inexperienced staff."
"You know how many balls they have to juggle on House races," the source said. "They couldn't watch them all."
Sullivan left Triumph when he was appointed a state senator from Park Ridge in December 1998. Roseberry is now state Department of Transportation point man for efforts to build a new airport at Peotone, and Karnatz is now deputy commissioner of the state Office of Banks and Real Estate.
The three were among several Ryan secretary of state workers who were dispatched to coordinate House campaigns in 1996.
Side businesses in spotlight
The issue of state workers setting up side businesses took on new significance in April when federal authorities indicted Scott R. Fawell, Ryan's former campaign manager and chief of staff at the secretary of state's office. Fawell established SRF Consulting in mid-1995.
Federal prosecutors allege Fawell's firm got payments from a Stanley-related company for work on the 1996 presidential primary campaign of U.S. Sen. Phil Gramm (R-Texas).
They also allege Stanley provided Fawell with trips and Costa Rican prostitutes as part of a scheme that included using secretary of state employees to do campaign work for House Republican candidates on state time. Some top workers received extra payments through firms connected to Stanley.
The lack of complete disclosure is troubling to election officials and campaign watchdogs.
Ron Michaelson, executive director of the State Board of Elections, said there are no rules that require political fundraising committees to list subcontractors or the principals behind nebulous, unidentifiable companies, but he believes they should be disclosed.
"It appears to be a gap in the law," Michaelson said.
Michaelson said he will review the issue with his staff to determine whether disclosure of subcontractors can be instituted simply by changing the board's rules or whether a state law will be needed. He also said he would explore how to require more reporting to identify who is ultimately behind the companies that receive campaign expenditures.
"Disclosure is the lynchpin of our law," Michaelson said. "Since the legislators made a conscious decision not to incorporate any limits (on donations or expenditures), they rely primarily on the benefits of full and open disclosure. If that's the way we're going to proceed in Illinois, then I think that disclosure should be full and open."
Cindi Canary, director of the Illinois Campaign for Political Reform, said shortfalls in the campaign finance disclosure system have become more evident as a result of Operation Safe Road, the federal probe of corruption in George Ryan's secretary of state office.
"The intent of disclosure is very clear. It's to get information to the public that's meaningful to them: who's who, who's got the contracts, who's doing the work, who's getting the money," Canary said.
"So when you don't get the names of the key players or the chief executives or when it's kind of shadowed in initials or it's simply not reported, then the public doesn't get the information that they need to know that everything's on the up and up," she said.
 

ITS PRISON BATTLE WON, VIENNA RETURNING TO NORMAL
 
BY JEFF SMYTH
THE SOUTHERN
Jul 13 2002
 
VIENNA -- Life seems to be back to normal in Vienna. The town square is calm, with people filtering in and out of the Johnson County Courthouse to do their business. Some stop on the courthouse steps to engage in friendly chatter. The two restaurants on the square fill at noon. Patrons discuss recent fishing outings or their children's ball games. It could be a small town anywhere these days.
That wasn't the case just a few months ago. Fear and uncertainty hovered over the community, which faced losing its major employer -- Vienna Correctional Center -- to state budget cuts. The town also is home to the Shawnee Correctional Center.
People agreed closure would be devastating to an area so dependent on prison jobs.
They were scared and they were angry.
They felt betrayed.
For four months, Vienna residents were run through an emotional wringer as they fought to keep the prison open. They banded together as a community, a county and a region to fight Gov. George Ryan's decision.
They gathered en masse one sunny February Saturday -- more than 1,000 strong -- to show their solidarity, and filled the now quiet square with rancor and concern. Their emotions were stoked by politicians who vowed to fight with them.
In the end, they won. Ryan in June signed a budget that included funding for the facility.
The emotions aren't running as high today in Vienna, but the battle residents fought has had a lasting effect. Some people are bitter; some feel that they were sold out; others viewed the ordeal as a wakeup call.
"Save Vienna Prison" posters are still propped in storefront windows and staked on lawns.
"I think it's a combination of things as to why people are reluctant to take down the signs," Dennis Waller said, while eating lunch with his son, Jonathan, under a shade tree. "It's an emotional issue that is still on the minds of many.
"I think everyone is breathing a sigh of relief, but I don't think it happened immediately because it was such a traumatic experience. It took a while for them to react," Waller said.
Alan McIntyre is a Johnson County assistant state's attorney. As he sits on the courthouse steps he reflects on the past four months.
"I think, if nothing else, it let a lot of people know that some people in Springfield view the working men and women as nothing more than political pawns," he said. "They use people who work for a living for retribution and to get budgets passed. There is a little bit of resentment in this town because of that."
Rodney Gholson owns an insurance and investment business on the square. His assessment of the town's attitude is a little more optimistic.
"As far as I know, people are little more upbeat these days. They are a little more relaxed," he said.
Gholson said the community is also a little closer together. He points to the annual Relay for Life fund-raiser held last month in Vienna. Always a big town event, this year a record-breaking $90,000 was raised to fight cancer.
"The community always comes together for this, but it seemed to come together a little more this time," said Gholson, whose father is a chaplain at the prison.
Mitchell Garrett sees this, too. He is Johnson County's largest private employer and active with the chamber of commerce and economic development organization. He said lessons were learned in the fight to save the prison.
"We know we need to diversify. We have zero industry," Garrett said. "We have to have something besides those two prisons."
Garrett points to a new 30-acre industrial park in Vienna. It is a collaborative effort of local government and other entities. It will include improved sites for four buildings. A 25,000-square-foot spec building is included in the plans.
"Each group had its own agenda, and we kind of were dragging our feet on this before the prison thing," Garrett said. "Now the city and county are working in cooperation. We all are pretty well focused."
jeff.smyth@thesouthern.com / 618-529-5454 x15073
 

Many with state retiring early
By DOUG FINKE
STATE CAPITOL BUREAU
13 july 2002
 
More than 600 state government employees already have filed applications to take early retirement, even though the earliest possible retirement date is more than two weeks away.
Many more are expected to seek to retire early after receiving a detailed financial statement from the State Employees Retirement System explaining the costs and benefits. The statements were placed in the mail Friday for the estimated 20,000 state workers who meet the requirements for early retirement.
SERS executive secretary Michael Mory said that even before the financial statements were prepared, 1,500 early-retirement application forms were sent to employees who requested them. About half already have been returned, Mory said, even though no one can take advantage of the retirement incentive until Aug. 1.
The high number of applications filed already is a change from 1991, when the state last offered an early-retirement program in an effort to trim better-paid personnel and save money.
"It looks like more will (retire) right on the front end compared to last time," Mory said Friday. "I guess they're saying, 'Why not retire in the summer when it's nice?'"
Under the early-retirement program, state workers can buy an extra five years of age and service credit to enhance their pensions. For many older workers, the extra credits will boost their pensions enough that they can afford to retire at an earlier age.
Making sure the numbers work can be a tricky proposition for employees. For the past few weeks, SERS has been preparing financial statements for each of the 20,000 workers who meet the eligibility requirements. Those statements explain how much a worker must pay to participate and how much his or her pension will be.
Mory said most workers should get the statements in the next few days. Anyone who thinks they should receive a statement but doesn't should wait until Friday before calling SERS, he advised. More details about the early-retirement plan are available by going to the SERS Web site at www.state.il.us/srs. The Internet site includes details to help workers compute how much they will have to pay to retire early.
Based on past experience, SERS believes about 7,300 of the 20,000 eligible workers will take advantage of the early-retirement incentive. The state expects about half of those jobs will have to be refilled, although possibly by workers earning a lower salary. The state hopes to save about $64.5 million as a result.
The last time an early-retirement program was approved because of a state budget crisis, in 1991, workers also could buy five years of service and age credit as an incentive to retire early. At that time, however, participants only had to pay half the employee share of the extra pension credits. This time, workers must pay the full employee share.
Also in 1991, many workers ended up back on the state payroll, reducing the amount of money saved. This time, the retiring employees cannot come back to work for the state, either on the regular payroll or on contract.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

Letter to The Editor--Pontiac Daily Leader
 
July 12, 2002
The first paragraph from this article stated that AFSCME refused to re-negotiatate it's contract to help save the state's budget. There are two key words in that paragraph-state's budget. Who is responsible for the state's budget? Is it AFSCME? If AFSCME is responsible for the state's budget, it wouldn't be building new prisons while closing others. AFSCME wouldn't beef up the Director's and Assistant Director's from 9 in 1998 to over 20 in 2002, whose salaries range from $80,000 on up. AFSCME wouldn't have bought a mobile command center for over $250,000, 15 new transport busses at $235,000 each, a humvee that cost several thousand or a fleet of Crown Vics? AFSCME wouldn't send its tactical team members to Chicago to pick up parole violators off the streets, spending thousands of dollars in overtime for correctional officers to be bodyguards for Director (what are they afraid of)?! We are the ones who work around the criminals! AFSCME wouldn't spend thousands of dollars to repaint Pontiac Correctional Center because they didn't like the color. And we wouldn't have spent thousands of dollars to wax cement floors in cell houses that become slick as ice when inmates flood the galleries.
The governor talks about the money the state can save by privatization of food and commissary services. I have a few questions to ask about that subject. Who is going to pay for the background checks on the private vendors' employees? Who is going to pay for the training they will need to be in compliance with the state standards for accredidation purposes? They will need to be trained in toxic control procedures, key control procedures, count procedures, report writing, first-aid, CPR, shakedown procedures, and how to identify and handle contraband at a crime scene. They will also have to learn how to understand radio traffic so that inmates can be moved throughout the institution without incident.
There is one more question I have. Is it legal for private vendors to use inmate labor for profit? If it is legal, I wonder if the Governor expects untrained people to work around details of inmates who would be using large knives and ladles to prepare food.
As taxpayers, we have an obligation to keep criminals behind bars and to have the prisons in this state run in a safe and secure manner. So why do you think the states budget is in such a whole? Is it because of government spending, or is it because AFSCME won't open it's contract?
George Walker Vice-President Local 494 (Pontiac)
 

Governor hands out two more positions
Legal counsel's new job will start Jan. 1
 
By DOUG FINKE
STATE CAPITOL BUREAU
12 July 2002
 
Gov. George Ryan has reserved for his chief legal counsel a $101,000-a-year state job that she won't take until two weeks before Ryan leaves office.
In addition, the governor has appointed former Cook County Circuit Clerk Aurelia Pucinski director of the Department of Professional Regulation, effective Aug. 1. Pucinski, who left the Democratic Party and ran unsuccessfully as a Republican for Cook County board president, is on the ballot in the Nov. 5 election for appellate court justice in Cook County.
Ryan's legal counsel, Diane Ford, 49, will join the Illinois Industrial Commission Jan. 1. Until then, she will continue in her $121,680-a-year job with the administration.
"She was asked if she wanted to start sooner," Ryan spokeswoman Wanda Taylor said Thursday. "She decided she has several projects she wants to complete first."
Ford will fill a position held by former state Sen. Robert Madigan, R-Lincoln. Madigan resigned from the Industrial Commission July 5, just over a year after he left the Senate to take the job.
Madigan could not be reached for comment.
Until Ford is ready to take the Industrial Commission job, it will be filled by Paul Rink, an associate counsel at the commission for the past 11 years.
Ford's name surfaced in April in published reports about allegations of corruption while Ryan was secretary of state. She was legal counsel to Ryan at that time.
The Chicago Tribune reported that a former state police commander had charged that Ford tried to pressure him into dropping an investigation into allegations that secretary of state employees were doing political work on state time. According to Earl Hernandez, the newspaper reported, Ford said, "The secretary isn't very happy about the way you're pursuing this."
Hernandez told the Tribune he took that to mean Ford was invoking Ryan's name to get him to change his mind.
Ford declined to comment to the newspaper.
If approved by the Senate, she will start the new job Jan. 1. It is for a four-year term. A new governor will be sworn in Jan. 13.
Pucinski served as Cook County circuit clerk from 1988 to 2000. She will earn $105,366 as director of DPR, replacing Leonard Sherman, who has served as the agency's director since Ryan became governor in 1999.
Taylor said Sherman wanted to spend more time with his family, but Ryan persuaded him to stay on the job until the spring legislative session was over. Sherman will retire Aug. 1.
Doug Finke can be reached at _788-1527 or doug.finke@sj-r.com.
 

Pension plans to be protected under state-federal measures promoted by Democratic nominee
Major state pension funds lose a staggering $84 million due to WorldCom collapse
11 July 2002
 
CHICAGO -- U.S. Rep. Rod Blagojevich (D-Ill.) put forward a package of aggressive reforms Thursday designed to protect taxpayers and beneficiaries of pension plans from unscrupulous accounting practices and other forms of corporate abuse.
The Democratic nominee for governor outlined steps that he would take at the state level to eliminate potential conflicts of interest by money management firms doing business in Illinois-- in particular, those firms whose practices impact the viability of Illinoisans pension funds.
He also unveiled measures that would give Illinois workers greater power to determine the composition of their 401(k) plans and other investment funds.
Blagojevich said the need for such reforms was evident in the enormous losses to three of the states major retirement funds resulting from the collapse of telecom giant WorldCom. Blagojevich said he had found that such losses total a staggering $84 million to date.
It is unacceptable that Illinois workers who have spent entire careers helping to build our state and grow our economy are seeing their retirement savings erased-- not through any fault of their own, but because of the unscrupulous behavior by a handful of corporate criminals, he said.
Blagojevich, also said that he would call for stronger protections for corporate whistle blowers who report misconduct by firms, and would require companies doing business in Illinois to demonstrate good corporate citizenship.
He added that he would continue to push for passage of legislation he has supported in Congress designed to strengthen accounting practices of public companies.
My campaign for governor is based on restoring confidence in our shared institutions, Blagojevich said.
That means giving Illinois voters the confidence that their state government works for them, that their schools are providing a quality education to their children, that our police have the tools and support to keep us safe from crime, he said.
It also means giving the people of Illinois the utmost confidence in the companies where we work, in which we invest and where our retirement funds are held.
Blagojevich outlined four major steps that he would take as governor to increase protections from corporate abuse:
First, Blagojevich will eliminate potential conflicts of interest among those firms whose decisions impact the health of pension funds. He would: require money management firms to fully disclose their client relationships; call for full disclosures of how firms portfolio managers and research analysts are compensated; and create safeguards to ensure that these and other corporate relationships do not unduly influence investment decisions made on behalf of the pension funds.
Blagojevich pointed out that several states-- including New York, North Carolina and California-- had carried out a joint effort to institute such protections. He cited the leadership of New Yorks activist Attorney General, Elliot Spitzer, in forming the multi-sate alliance.
In addition, he will direct that state pension dollars be invested only corporations that have independent auditors, rather then allowing auditors to also serve as consultants to the companies they audit-- a key factor cited in Arthur Andersens role in the collapses of Enron and WorldCom.
He will also direct his appointees to the state pension board to pull state investments away from companies who raid their employees pensions.
Second, Blagojevich will, to the extent possible through state action, empower workers to have control over the composition of their 401(k) plans and investment funds. Blagojevich will explore mechanisms designed to give all Illinois employees the opportunity to diversity their holdings and 401 K plans, to have full access to their accounts, and no longer be subject to lock downs which block their ability to sell stock prior to a companys collapse.
Third, Blagojevich will call for new protections for employees who report illegal accounting practices, fraud or other forms of corporate misconduct to law enforcement officials or applicable regulatory bodies.
He will urge Attorney General to launch investigations of legitimate allegations of such illegal practices when they occur in Illinois or impact state residents, thereby continuing to follow the pattern set by the current Attorney General of conducting probes into certain well-publicized corporate scandals (such as the Enron collapse) even when a parallel federal investigation was already underway.
Fourth, Blagojevich will call for new Good Corporate Citizen laws to hold corporate officials responsible for their actions, including their treatment of their employees. He will promote aggressive corporate accountability laws to ensure that companies receiving hundreds of millions of dollars in state tax incentives and grants provide their workers with good wages and good benefits, including health care and pension plans.
In addition, Blagojevich will continue to promote the passage of legislation in the U.S. House to increase federal oversight over the auditing and accounting industries. Congressman Blagojevich has pushed for legislation calling for the establishment of a Public Accounting Regulator Board which would have the authority to set high standards for auditing firms; to launch investigations of firms suspected of unscrupulous behavior; and to impose disciplinary action against firms found to have engaged in such practices.
He is a co-sponsor of HR 3818, sponsored by Rep. John LaFalce, D-N.Y., which calls for the adoption of such measures. This bill is companion to Sen. Paul Sarbanes bill, S 2673 under consideration in the Senate.
Blagojevich said that he will urge House-Senate conferees to agree to the stricter provisions contained in Sarbanes bill-- rather than a weaker version favored by House Republicans-- if members of the two chambers go to conference to reconcile differences between the competing versions of legislation.
Blagojevich said that such proposals reflect a theme of personal and shared responsibility that have guided his approach to other major issues in the campaign, including his emphasis on new ethics guidelines for state government leaders.
For the good of the state, everyone in Illinois-- public officials as well as leaders of the private sector-- must exhibit greater responsibility for their actions, and must be held accountable for their decisions, Blagojevich said.
Blagojevich announced that he had gathered information on state pension funds lost as a result of the WorldCom scandal.
He found that the State Employee Retirement System has lost $ 15.3 million; the State University Retirement System has lost $ 35.2 million; and the Teachers Retirement System has lost $ 33.5 million to date.

The total loss by these state-operated funds is $ 84 million.
 

Contact: Doug Scofield Billy Weinberg Megan Glenn (773) 478-2223
 

County reaches deal with one of two unions
 
July 11, 2002
BY GARY WISBY AND CARLOS SADOVI STAFF REPORTERS
 
 
Cook County officials have reached a tentative agreement with one of two unions that planned a one-day strike Thursday.
The tentative agreement with two locals of the Service Employees International Union was reached early Thursday morning and includes 8 1/2 percent wage increases, according to a statement from Cook County Board President John Stroger.
The two SEIU locals represent about 4,000 of the 8,000 Cook County court and other employees who threatened a one-day walkout today.
Stroger said SEIU has notified the county that the employees will report to work Thursday.
The SEIU members work for offices such as the county clerk, treasurer and recorder of deeds. They also work in various departments in the sheriff's department and health services bureau.
Negotiations are ongoing with the American Federation of State, County and Municipal Employees union, according to Stroger's statement.

With some predicting "total chaos," the walkout was the chief topic of water cooler conversation Wednesday.
"I hear only three judges are going to cross the line in domestic relations," one City Hall court clerk told her co-workers.
"We aren't going out for the duration right now," said Linc Cohen, a spokesman for Council 31 of the American Federation of State, County and Municipal Employees. "Hopefully this is all that will be needed."
More than 8,000 county workers represented by AFSCME and Service Employees International Union could be on the picket lines. About 3,800 workers represented by AFSCME, including 465 assistant public defenders, 1,800 workers in the clerk's office, 500 adult probation officers and 400 juvenile probation officers are expected to walk out today. An additional 400 clerks who work for the chief judge and other offices also could walk the picket lines, Cohen said.
Technical and clerical workers in the Bureau of Health also could miss work, as might 100 investigators from the public defender's and medical examiner's offices, Cohen said. He said about 100 workers from the Cook County public guardian's office also would walk.

The key issues are wages and health care coverage, Cohen said.
He said AFSCME negotiations ended late Monday without an agreement. There were no talks Wednesday.
The county argues that employee health care costs are increasing about 13 percent annually. Some employees pay $4 a week for HMO coverage, a county statement said. Union officials were not available to respond.
In a statement, Stroger vowed that the county would be "fully functional." He said a contingency plan has been prepared and that people should report for jury duty as scheduled.
"We're going to shut it down," said Georgia Foster, a clerk and union representative at Criminal Courts. "We don't want that piddly money they are offering us."
A deputy court clerk in Divorce Court, Dennis Fleming, said, "I don't see how nine or 10 supervising people can cover 31 courts."
Fleming, a union steward and 23-year employee, said the County Board offered 9 percent raises over three years and then voted themselves 38 percent raises. "Then they said we're broke," he said. "Why don't they freeze their salaries?"
"It's going to be total chaos," said Jeanette Tate, a Civil Court clerk. "There will be paperwork nobody knows how to do but us, and maybe a few substitute clerks who don't know what they're doing."
One judge, who asked not to be identified, said, "Nobody has done this before; it's not like there's a school for it."
He said judges were told that public defenders will go to court on pending cases, but only to seek continuances. But Judge Michael James Murphy of the County Division said, "We're pretty well set. One day for our division won't make much difference."
 

Edgar credits J. Ryan for taking active role in party
 
By BERNARD SCHOENBURG
POLITICAL COLUMNIST
11 July 2002
So was JIM RYAN nuts to name former Gov. JIM EDGAR as his first choice to take over the reins of the state GOP before it was a done deal?
The fact that Edgar ultimately didnt take the job certainly hasnt helped the GOP dispose of its organizational problems. But Jim Ryan wasnt just taking a stab in the dark when he made Edgars name public.
"When we talked, I told him Id give it serious consideration," Edgar said this week he was calling via cell phone in Colorado, where he was getting his exercise walking on a mountain. "The reason that I didnt do it wasnt because, as some have speculated, that the campaigns in disarray. It was because of some personal reasons that were beyond my control."
Edgar wont discuss those reasons publicly, but sources say the administration at the University of Illinois, where he now works, had problems with him taking the party post.
Edgar, a strong supporter of Jim Ryan, thinks the GOP candidate has "got a shot" at winning this November, despite the party reorganization.
"Nothing ventured, nothing gained," Edgar said of Jim Ryans active role in party changes that have included the resignation of LEE DANIELS as party chairman and the search for a permanent replacement.
"Sometimes, he (Ryan) gets accused of being too cautious. In this whole state central committee thing, hes taken the offensive, which I think is good," Edgar said.
The Management Services of Illinois scandal tarnished Edgar a bit, but he was very popular when he left office in 1999 and remains so today.
The GOP saga of recent days has likely provided Democratic gubernatorial candidate ROD BLAGOJEVICH with a warm fuzzy feeling inside.
Not only did the GOP fail to name a permanent replacement for Daniels as chairman at a meeting Monday in Oak Brook, but the groups executive committee met Tuesday to immediately end the tenure of ALLEN FORE as party executive director. Fore, of Belvidere, whom Daniels brought in in December, had expected to stay until a new permanent chairman is named, so he declined to turn in his resignation along with other staffers, allowing their positions to be re-evaluated by interim Chairman Dallas Ingemunson of Yorkville.
Brad Goodrich of Springfield, the former executive director and now a consultant, took over the staff temporarily.
Goodrich said there shouldnt be too much read into the fact that locks were changed late Monday on the state GOP offices in Chicago and Springfield. The offices continued to be open and operating, and it was his suggestion as a "standard business practice" at a time of unexpected staff change to avoid any problems by having new locks.
Goodrich said Ingemunson, a former Kendall County states attorney, agreed with the move.
Recommendations were not yet complete on who should stay with the GOPs staff as of Wednesday.
Meanwhile, Ryan has had a campaign director, former Circuit Judge STEVE CULLITON, since last year, but his primary campaign manager, JERRY CLARKE, a former Daniels staffer, is back at work for U.S. Rep. TIM JOHNSON, R-Urbana, and isnt expected to return.
Ryan spokesman ERIC ROBINSON said that the Ryan campaign continued to have discussions with CARTER HENDREN, the chief of staff to Senate Republicans, about joining the campaign. Hendren ran Edgars successful 1990 campaign against Democrat NEIL HARTIGAN.
Conservative Web site
An interesting sidelight to the GOP infighting is a new Web site thats been providing lots of commentary and breaking some of the news.
Illinoisleader.com is, says one of its three founders, DAN PROFT, a forum for conservative thought and a vehicle to help conservatives build coalitions
Proft, 30, of Rosemont, doesnt object to being called a true believer in conservative principles.
"Its not about the candidates, its about the issues," he said.
A native of Wheaton and graduate of Northwestern University in political science and business institutions, Proft has a company called Starfish Consulting and says the Illinoisleader site is intended to make money. He was campaign manager for a losing GOP House candidate in 1994 and worked for Daniels from January 1996 to April 1997.
In a column Proft posted on the site on July 5, praising Chicago-based U.S. Attorney PATRICK FITZGERALD for working to clean up the state GOP a move Proft thinks will give it a chance to rise again he didnt have nice things to say about Daniels.
Writing that Daniels was quoted as saying any former staffers who may have done wrong would have to pay the consequences, Proft stated: "Former staffers, myself included, know that Lee Daniels and his aforementioned cronies are the type of guys who would have dressed up like women to get on one of the Titanics lifeboats. Now, as the state GOP heads for the proverbial iceberg, Daniels is using his staffers as human shields."
GREGG DURHAM, spokesman for Daniels, said later that Daniels has also praised his staff for its hard work, doesnt know of wrongdoing and was the one to call for an investigation of allegations that staff may have worked in campaigns on state time.
Proft got his name in papers across the state during the GOP primary, when he signed on as spokesman for state Sen. Patrick OMalleys campaign for governor. The conservative OMalley was strongly critical of Jim Ryan during that primary. Proft, who no longer works for OMalley, said the Web site will be endorsing candidates across the state. In the governors race, he would only say that Blagojevich will not be the choice.
Other principals in Illinoisleader.com are FRAN EATON, 49, of Oak Forest, state director of Eagle Forum; and BRIAN TIMPONE, 29, of Chicago, a onetime spokesman for Daniels who ran OMalleys campaign Web site.
Proft says the site features Illinois-focused original news and commentary, with new material daily.
GOP family picnic
Watch for GOP candidates including Supreme Court Justice Rita Garman, state Sen. Larry Bomke, state Rep. Raymond Poe and would-be Rep. Rich Brauer to be serving up the food at the Sangamon County GOPs family picnic from 4-7 p.m. Saturday at the Ethnic Village area of the Illinois State State Fairgrounds. The Giant Slide should be operating as well. The fund-raiser is $25 per person and $35 per family.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Illinois AFL-CIO backs Blagojevich
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
10 July 2002
Gubernatorial candidate Rod Blagojevich and the other Democratic candidates for statewide office on Tuesday won the endorsement of the Illinois AFL-CIO.
The formal show of support is significant because the union can deploy its almost 1 million members for the benefit of its favored political candidates.
Blagojevich, whose main opponent for governor is Republican Jim Ryan, said he was pleased to win the union's endorsement. The AFL-CIO's support was crucial to his primary election victory last spring, he said.
When asked about Jim Ryan's recent remarks that Gov. George Ryan should consider resigning from office because of the licenses-for-bribes scandal, Blagojevich was noncommittal, calling it "a decision the governor has to make."
The AFL-CIO and its 1,500 affiliates will make financial contributions to the candidates worth a minimum of "hundreds of thousands of dollars," according to union president Margaret Blackshere.
Blackshere said the endorsements were based on candidates' records in office, their responses to questionnaires and interviews.
Most Republicans seeking statewide office rebuffed the union's efforts to get them to return questionnaires or meet with the AFL-CIO's executive board, Blackshere said. Incumbent Treasurer Judy Baar Topinka, a Republican, agreed to an interview, but it was "not satisfactory," Blackshere said.
"It's a simple thing. People stay with those who are their friends and who, indeed, give them attention," she said. "We got no attention from the Republican Party at the statewide level in Illinois."
The AFL-CIO made endorsements in all statewide races, most races for the U.S. House and the Illinois General Assembly, and some judicial races.
Of the more than 160 endorsements, 11 went to Republicans and one - in a Chicago-area state Senate race - went to a member of the Honesty and Integrity Party. The other endorsements went to Democrats.
Besides making financial contributions to candidates' campaigns, the AFL-CIO plans to encourage more of its members to register to vote, Blackshere said. Later, mailings on behalf of the candidates will be sent to union members.
The union also plans to supply people to help with political campaigns, especially during the last days before the general election, she said.
She urged "everybody in the labor movement (to) spend the last five days before November 5 working for candidates. We will not be doing our regular jobs Friday, Saturday, Sunday, Monday and Tuesday. We will be getting out that vote that we've educated our members about and that we've registered to vote."
The union endorsed Blagojevich and his running mate, Pat Quinn, over the GOP ticket of Jim Ryan and Carl Hawkinson and the Libertarian ticket of Cal Skinner and James Tobin. It also endorsed incumbent Secretary of State Jesse White over GOP challenger Kris O'Rourke Cohn and Libertarian candidate Matt Beauchamp; Lisa Madigan for attorney general over GOP candidate Joe Birkett and Libertarian candidate Gary Shilts; incumbent Comptroller Daniel Hynes over GOP candidate Thomas Jefferson Ramsdell and Libertarian candidate Julie Fox; and Tom Dart for treasurer over Topinka and Libertarian candidate Rhys Read.
Other AFL-CIO endorsements included Democrat Dick Durbin, the incumbent, for U.S. Senate over Republican Jim Durkin, Libertarian candidate Steven Burgauer and Green Party candidate Richard Anders Vikstrom; Democratic U.S. Rep. David Phelps of Eldorado for the new 19th Congressional District over Republican U.S. Rep. John Shimkus of Collinsville; and Republican Larry Bomke of Springfield, the incumbent, for the 50th State Senate District over Democrat Don Tracy of Springfield.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Ryan tries to woo campaign manager
 
July 10, 2002
BY SCOTT FORNEK POLITICAL REPORTER
 
 
 

Even as he scrambles to find a new chief of the Illinois Republican Party, GOP gubernatorial nominee Jim Ryan is waging another behind-the-scenes effort to tap one of the state's top political strategists to serve as his campaign manager.
And so far, Carter Hendren is proving as elusive as a new party chairman--much to the chagrin of some Republicans.
"Everyone believes that they need to get something done real soon and get someone to start steering the ship," said one party operative. "They are very concerned about getting someone like a Carter Hendren on board."
Another GOP insider said: "You get the feeling nobody is in charge. This ship just drifts from reef to rocks."
But Ryan's campaign officials insist there is no parallel between the so-far unsuccessful search to find a new state GOP chairman to replace House Minority Leader Lee Daniels and the effort in the last couple of weeks to recruit Hendren, who is chief of staff to state Senate President James "Pate" Philip, to take over the day-to-day operations of the campaign.
"We have never had a void in leadership here," said Ryan spokesman Dan Curry. "We have talked about adding a person or two, and Carter is as good as it gets out there. We'd love to have him, but there is no crisis of leadership."
No matter how you slice it, the turmoil continued Tuesday in Republican circles.
Interim state GOP chairman Dallas Ingemunson asked for the resignations of all 12 of the party's paid staffers and changed the locks on the party's offices in Springfield and downtown Chicago shortly after he took the reins Monday.
"It is so petty that they changed the locks," grumbled one Republican. "To have this with all the turmoil we are having, we just didn't need it."
Ingemunson downplayed the move. "It is just a customary practice," he said. "There was no specific allegation that anyone had done anything wrong or we thought somebody was going to do something wrong."
Adding more fireworks, Allen Fore, the party's executive director, insisted the party's executive committee meet in a special session to oust him, saying Ingemunson could not do it by himself. They did, and he was.
Fore insists he is not bitter. "It's been a pleasure and a privilege to work for the state party, and I'm going to continue to do all I can to help our Republican candidates in November."
Ingemunson shrugged the "skirmish" off, saying "it's no big deal. . . . It's kind of silly."
As for the Ryan campaign, it remained up in the air whether Hendren would climb on board. Hendren did not return a reporter's telephone calls.
One GOP source who spoke to Hendren on Tuesday and considers him "probably the best in the business" said Hendren was still considering the job but was "reluctant--very reluctant."
Asked why, the source laughed and said, "You can probably figure that one out."
But one top party official said he heard Hendren will come on board within the next day or two.
"The last I heard, which was about an hour ago, it looked very positive," the official said.
Hendren ran Republican Jim Edgar's 1990 gubernatorial campaign and has been the chief architect of Philip's control of the state Senate throughout the 1990s.
Ryan's campaign has not had a manager since after the primary, when Jerry Clarke left to return to his job as chief of staff to U.S. Rep. Timothy Johnson (R-Ill.).
But Curry argues campaign director Steve Culliton is really the top guy. Ryan's closest political ally and a close friend, Culliton is a former DuPage County judge and was chief of staff during Ryan's first term as attorney general.
"Steve Culliton is the CEO of this campaign, and he's serving as the head of the campaign and has since the very beginning," Curry said. "So we have someone at the helm."
But one GOP strategist said the campaign needs someone with experience in gubernatorial campaigns to help Ryan chart out the crucial final four months.
"It's a further sign that the ball is not moving forward," the strategist said. "Every day is another day wasted. Every day that you don't move the ball forward is another day that [Democratic gubernatorial nominee] Rod Blagojevich wins."
 

 

State GOP replaces executive director
By BERNARD SCHOENBURG
POLITICAL WRITER
10 July 2002
The executive director of the Illinois Republican Party was replaced Tuesday, one day after an interim chairman of the party was named.
Allen Fore, 36, a Springfield native and Petersburg Porta High School graduate, was released from his role as the head of the party's statewide staff by a vote of the executive committee of the Republican State Central Committee.
Brad Goodrich, 37, of Springfield, the party's former executive director and now a political and governmental consultant, was named acting executive director.
On Monday, the state central committee chose Dallas Ingemunson of Yorkville to be chairman until a permanent chairman can be named July 26. Party leaders were unable by Monday's meeting to find a permanent replacement for Lee Daniels, whose resignation took effect Monday.
Daniels, of Elmhurst, is the Illinois House Republican leader, and the U.S. attorney's office in Chicago is reviewing allegations that members of his House staff did political work on state time in 2000.
"It's been a privilege and an honor to work for the state party over this past year, and I will continue to do all I can to help elect Republican candidates in November," Fore said.
Goodrich said it was Ingemunson's opinion that "the permanent chairman have the ability to bring in his or her team.
"Allen Fore has carried a great deal of water for the elephant in various campaigns and party activities, and everyone joins in wishing him well."
MaryAlice Erickson of Peoria, a member of the party's central committee and its executive committee, said that the executive panel met by telephone conference call Tuesday because Fore did not submit a resignation, as is customary, to Ingemunson.
Fore said he had expected to remain executive director until the permanent chairman is named.
"That's what I thought was going to happen," he said. "Dallas wanted to make a more quick change."
Goodrich said he is assessing the party's operations and evaluating its staff and will make a set of recommendations to Ingemunson and the executive committee. Goodrich said he will work full time for the party these two weeks, but he does not plan to seek the permanent job.
GOP gubernatorial candidate Jim Ryan, the state's attorney general, has sought a new party chairman to recommend to the central committee. But former Gov. Jim Edgar, former Quaker Oats CEO William Smithburg and U.S. Rep. Ray LaHood of Peoria all turned down the job.
Fore, of Belvidere, left a $70,000 job as assistant attorney general and director of the Rockford-based northern Illinois office of Attorney General Ryan in December to take the party post. In 1996, he worked in winning campaigns of state Rep. Ron Wait, R-Belvidere, and Sen. Dave Syverson, R-Rockford. Fore also worked for former Lt. Gov. Bob Kustra as general counsel.
Erickson said Tuesday's change in staff "doesn't mean a thing" to rank-and-file Republicans.
"The main thing is that the chairman (to be named soon) needs to have the opportunity to select who's going to be running the office."
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

GOP needs to regroup

OUR OPINION
The State Journal-Register
10 July 2002

What do the Illinois Republican Party and the All-Star Game Home Run Derby pitcher have in common? Both were lobbing pitches directly over the plate to be blasted out of the stadium this week.

In the case of the Home Run Derby, All-Stars such as Sammy Sosa and Jason Giambi were taking advantage of the cream-puff pitches. In the case of the Illinois Republican Party it was gubernatorial candidate Rod Blagojevich who was whacking the easy ones out of the park.

The pall of the licenses-for-bribes scandal still hangs in the air. The state Republican Party chairman, Lee Daniels, has been forced to step down over allegations he allowed the use of public employees for private campaign purposes. Now this week, some Republican State Central Committee members have started murmuring about the need for Republican Gov. George Ryan to resign and Republican gubernatorial candidate Jim Ryan adds fuel to the fire by openly saying a G. Ryan resignation would be a good idea.

Add to that the fact that the Republicans can't seem to find anyone of any note to step into the party's chairmanship role now that Daniels has stepped down - so far the position has been turned down by former Gov. Jim Edgar, U.S. Rep. Ray LaHood, R-Peoria, and Quaker Oats chairman William Smithburg.

The Republicans might as well have put the ball on a tee for Blagojevich. Nonetheless, the Democratic gubernatorial contender does deserve credit for a solid hit when asked to assess the seeming Republican Party fiasco.

"I don't think it's appropriate for me to kind of get involved in Republican Party politics, except to say that they're focusing on trying to figure their party out ... we're focusing on the issues that matter to the people in Illinois," said Blagojevich, figuratively watching the words sail over the centerfield fence.

For our own selfish interests as journalists, and for the good of the people of the state of Illinois, we certainly hope the Republican Party can soon regroup its team. Nothing is more boring than a game that's over well before the bottom of the ninth.

 

What to think ?

They're called the Outlaws. They ride menacing-looking motorcycles, their emblem is a skull and crossed motorcycle pistons and police say the club has been tied, on the national level, to drug dealing, arson, motorcycle theft and other crimes.

People like to say that 99 percent of motorcycle riders are law-abiding citizens. Meanwhile, the Outlaws like wearing "1-percenter" patches, apparently proud to be separate from the majority who follow the law.

So imagine our surprise then when one of the Outlaws contacted reporter Jayette Bolin-ski to let us know that everyone has it all wrong. It turns out that the Outlaws, who recently opened clubs in Springfield, Peoria and Decatur, are really good guys. They're just the victims of bad publicity. What a relief!

Unfortunately, the explanation was a little less believable in that it came from a guy who goes only by the name of "Vulture." See, it turns out that Outlaws never use their last names, only their Outlaw names. They probably got tired of receiving all those thank-you notes for the good deeds they do.

We appreciate Vulture taking the time to set the record straight. But it won't bother us if the Springfield police continue to keep their eyes on these guys.

 

 

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Jim Ryan to governor: Explain your role in corruption, or resign
 
July 9, 2002
BY SCOTT FORNEK POLITICAL REPORTER
 
 
 

Declaring "I've had it" with the scandals that have dragged down his party, Republican gubernatorial nominee Jim Ryan said Monday that Gov. George Ryan should resign unless he can explain "how you could have so much corruption in your office" as secretary of state.
"He ought to explain his role in all this or step down," Attorney General Jim Ryan said. "I don't know how he explains that he presided over, frankly, one of the most corrupt administrations in the history of our state."
The GOP gubernatorial hopeful's comments were his strongest critique to date of the Republican he hopes to succeed. They came as he announced another humbling chapter in his efforts to install a new state party chairman.
Jim Ryan said U.S. Rep. Ray LaHood of Peoria was the latest Republican to turn down his request to replace House Minority Leader Lee Daniels, who stepped down as Illinois GOP chairman, as federal investigators probe allegations his staffers did political work on state time.
"The congressman thought about it briefly and said, 'You know, I'm just not comfortable in that role,' " Jim Ryan told reporters. "And it does, I think, take a unique person to be state party chairman. It's not an easy task, an easy job. It's a thankless job in many respects--although very important."
So far, the toughest task seems to be finding anyone to take the job. LaHood joined former Gov. Jim Edgar and former Quaker Oats Chairman William D. Smithburg on the "thanks, but no thanks" list.
Meeting Monday at the Oak Brook Hills Hotel and Resort in the west suburb, the Republican State Central Committee voted to appoint vice chairman Dallas Ingemunson as interim chairman until Jim Ryan can find a permanent replacement for the job. Committee members hope to do that by July 26.
The job is a mix of public and behind-the-scenes duties: promoting candidates, providing support to the party's ticket, raising the millions of dollars needed to identify GOP voters and get them to the polls and serving as a symbol of the party.
The attorney general's difficulty in finding a new party chief has taken on a symbolism of its own, underscoring the disarray in the GOP and the difficulty in leading when a party is under siege. He spent 90 minutes in a closed-door meeting with members of the state central committee. He and others in the meeting said they discussed the license-for-bribes scandal, but no one suggested passing a resolution asking the governor to resign.
"We focused on electing a chairman now, not worrying about passing resolutions that really have no meaning," said Robert Kjellander, a Republican national committeeman.
Jim Ryan voiced his own feelings on the question after the meeting, saying the latest indictments of close friends of the governor convinced him Gov. Ryan has some explaining to do.
"The voters of this state deserve a better explanation, a more complete explanation, of how you could have so much corruption in your office," Jim Ryan said.
The governor, who hasn't been charged with wrongdoing, issued a statement in which he said: "I will not resign. I have no reason to resign. Jim Ryan should be more focused on the issues of the upcoming election and the state's Republican ticket."
Jim Ryan shrugged off any suggestion his party was in chaos. "I'm telling you our party is not in disarray," he said. "We simply had three people who, for very different reasons, decided they couldn't do it."
Ingemunson, though, said contributions to the party are already down "somewhat," and added, "No one is going to deny that we are in a mess. And we're trying to get ourselves out of it."

Teachers union endorses Blagojevich
 
By BERNARD SCHOENBURG
POLITICAL WRITER
09 July 2002
The Illinois Education Association, which has endorsed Republicans in five of the past six gubernatorial elections, announced Monday it is backing Democrat Rod Blagojevich for governor.
Blagojevich has the "boundless energy and the courage to meet the needs of Illinois schoolchildren," said Anne Davis, president of the 115,000-member statewide group.
She also said Blagojevich has a 100 percent voting record in Congress on issues important to the group, which represents teachers and other school personnel.
The group backed Republican George Ryan in 1998 and donated more than $270,000 to his campaign.
Davis, of Harvey, said she was not sure how much the organization would give to Blagojevich but added, "It would certainly equal what we did contribute to Governor Ryan's campaign."
Blagojevich and Davis both spoke at a Statehouse news conference. The candidate said he was "very, very grateful and very, very humbled."
"If I'm governor," he added, "I'd like to see us have more teachers, better-trained teachers, better-supported teachers, smaller class sizes, a focus on reading."
He did not specify how he would pay for the improvements but said he would "look at new approaches." He did mention possibly redirecting money from legislative "pork barrel" projects and cutting unneeded middle managers. He said an initiative to fight a teacher shortage would cost $45 million, and he thinks per-pupil spending on students and the state's share of education costs are both inadequate.
He said the state budget has grown to $54 billion in recent years, with $200 million in added "mid-level management positions" in the past five years.
"It will be a priority of mine and a lot easier for me to be able to take that $54 billion budget, as an outsider, turn it upside down and go line item by line item and find all of the waste and inefficiency in it and reprioritize our spending and do it in a way so the whole state can see where their tax dollars are going," Blagojevich said.
Now a member of Congress from Chicago, Blagojevich said that as a former state legislator, he knows the budget is "chock full of items ... that are called some things that are really something else."
He said he knows some people have high-paying jobs on commissions that "are more about political payoff than ... promoting the public interest. ... I'm not going to name names, but I know certain people who are beneficiaries of that, and it's a bipartisan problem."
Blagojevich also said he would encourage businesses to give parents time off to visit schools for things such as teacher conferences. He said if the suggestion doesn't work, then it might take legislation to get parents two half-days off a year for school visits.
Attorney General Jim Ryan, the GOP candidate for governor, said there will be many endorsements, and he knows each candidate will get some.
"I know I have the support of teachers throughout the state," Jim Ryan said in a statement, noting that he supported Chicago school reform legislation that passed the legislature in 1995 - with Blagojevich voting against it.
"Even when the Chicago school system was called the worst in the nation, he was against its reform," Ryan said of Blagojevich.
Blagojevich said he voted against the reform because he didn't think there was enough money being provided to implement the changes.
"A lot of it was good," he said. "The problem was it was almost like an unfunded mandate, and there was no money to go along with the reform."
Since passage of that legislation, Blagojevich said, "I think strides have been made in the Chicago public schools, and I think a lot of it had to do with improved management," including "my former rival in the primary."
One of Blagojevich's primary opponents was Paul Vallas, former CEO of Chicago Public Schools.
Blagojevich also said because the state cigarette tax was raised by the legislature, he will no longer seek to use an increase in that tax to fund a prescription drug program he promoted during the primary.
"We're back to the drawing board" on the plan, Blagojevich said.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Hopes to re-establish boot camp funds
 
08 July 2002
Jacksonville Journal Courier
To the editor.
  As everyone has been aware, the lllinois state budget recently has been the main issue in most of our newspapers. Once again, our governor and the lllinois State Legislature has dropped the
ball on a very critical issue for the 97th district.
Whether it is a lack of leadership or election year inactivity, our legislators allowed Gov. George Ryan to make disastrous cuts to the budget. These
cuts have directly hurt us here in the 97th district through the closing of the Greene County boot camp.
The work these prisoners have done in our area is not only beneficial, but also costsaving to our local governments.For example, we all remember the additionial manpower they provided us as we fought the great flood of'93. We also witness the camp's cost savings to local governments in
activities like picking up trash
or painting curbs.
It is also important to note that this 'Closing not only affects the Department of Corrections
employees who must look else
where for work, but also many
others connected to the daily activities of the camp as well. Through my own personal
experience, I have spoken  to several contractual organizations that worked at the boot
camp, providing services ranging from drug and alcohol treatment to GED classes.
Losing this camp affects all of them and translates into added unemployment and loss of community services for our district As citiZens and taxpayers of the great State of Illinois, we should not stand for this lack of leadership and election year inactivity by our elected officials.
 That is why I vow to work to
restore funding for the Greene County boot camp if elected as
 your next State Representative
from the 97th district.
 Steve Pohlman 
 Democratic candidate for
the 97th District  
 Jerseyville

State GOP picks interim chairman
 
The Associated Press
July 8, 2002, 12:32 PM CDT
Illinois Republicans met today in west suburban Oak Brook to elect a new leader in a make-or-break election year but were unable to find a permanent replacement.
Dallas Ingemunson, the party's vice chairman, agreed to be interim chairman until the party's central committee meets again July 26.
Outgoing Chairman Lee Daniels officially stepped down today. He was forced out because of allegations that his legislative staff did political work on the taxpayers' dime during the 2000 elections.
"I did that because I thought it was the right thing to do," Daniels said today. "You cannot allow the momentum of the party to be interfered with by an individual."
Former Gov. Jim Edgar has declined to take the state party's reins. Edgar was the first choice of Attorney General Jim Ryan, the GOP nominee for governor. Former Quaker Oats Chairman William Smithburg also refused the post.
The party's stock has been sinking for the past few years amid the escalating bribes-for-licenses scandal surrounding Gov. George Ryan.
Daniels, the Illinois House GOP leader, promised to help lift the cloud that scandal placed on the party when he was elected Illinois Republican Party chairman in November.
But his legislative staff has been accused of making hundreds of visits on state time to districts with competitive races in the 2000 election.
Federal investigators are looking into those allegations. Daniels, who said he did not know of any wrongdoing by his staff, announced he would give up the chairmanship to avoid "unwarranted distractions" this election year.
Jim Ryan praised Daniels' decision. He has made cleaning up state government a central tenet of his campaign in an attempt to distance himself from the party's problems.
His opponent, Democratic U.S. Rep. Rod Blagojevich, has seized on the scandal, claiming Jim Ryan did little to stop it as the state's chief law enforcement officer.
The attorney general says it would have been improper to interfere with a federal investigation. He produced an April letter from the U.S. attorney's office asking him not to file suit against some of the figures charged the licenses scandal.

Report: State party may ask Ryan to quit
 
The Associated Press
July 8, 2002, 7:18 AM CDT
 
There is discussion among top leaders of the Illinois Republican Party about possibly urging Gov. George Ryan to resign, according to a published report.
The St. Louis Post-Dispatch reports that the party leaders are fearful that the ongoing bribes-for-licenses scandal is threatening the party's entire election slate in November. As a result, the newspaper says, the GOP leaders are quietly discussing whether they should publicly ask for Ryan's resignation.
In interviews with the Post-Dispatch last week, several members of the 19-member Republican State Central Committee confirmed they are talking among themselves about issuing a resolution urging Ryan's resignation.
The committee was to meet Monday in suburban Chicago to pick a new state party chairman. It was possible the issue of a call for resignation, or other ethics-related topics, might come up at that meeting, at least informally.
"There's been some discussion of that," said committee member Dennis P. Wiggins of Aurora. "It would be better for the party if he did (resign)."
Committee member Ronald Smith of Lombard said that most of the leaders "knew George Ryan pretty well. It would come with a lot of reservations, asking him to resign. But we've got to make a decision. It's something that has to be dealt with."
Such a resolution would have no legal force over Ryan.
But a statement aimed against Ryan from the committee would represent a blow to his political credibility from the heart of his own party.
Ryan spokeswoman Karen Fincutter said Friday that Ryan's office hasn't had any indication that the committee is planning to issue a statement regarding him.
"The governor has no intention of resigning. He has no reason to resign," she said.
Four governors in Illinois history have resigned while in office, all to accept other posts -- three in Congress, one as a federal judge.
In each case, the state's lieutenant governor has taken over, which would be the case if Ryan were to resign. Ryan's lieutenant governor is Corinne Wood, who was an unsuccessful primary candidate for governor.

From GOP insider to federal witness
Guilty plea ends ex-Metra official's 34 years in party
 
By Jeff Long and Bruce Japsen, Tribune staff reporters. Tribune staff reporter Ray Gibson contributed to this report
July 8, 2002
From his start as one of Gov. Richard Ogilvie's "whiz kids" to his membership on the Metra board and lucrative posts with the Illinois State Medical Society, Donald Udstuen has been a behind-the-scenes force in state Republican politics for more than three decades.
In coming months he is expected to wield power of a different kind, as a witness in the federal prosecution of Republican insiders and politicians who authorities say used their influence to profit illegally over the last 15 years.
With his guilty plea June 26 to a tax conspiracy charge as part of the Operation Safe Road probe, Udstuen signaled his willingness to testify against others who allegedly corrupted the secretary of state's office during the eight years it was headed by Udstuen's longtime friend, Gov. George Ryan.
Although surprised by Udstuen's involvement in the schemes, friends say his change-of-heart and cooperation with authorities makes sense.
"It would be like Don to admit he made a mistake and just stand up and take the medicine," said Jack Schaffer, a former Republican state senator and, like Udstuen, a resident of McHenry County.
"He was always above board and put his thoughts on the table," added Paul Laudick, the recently retired head of Centegra Health System, which Udstuen was instrumental in creating in 1991 with the merger of two McHenry County hospitals.
Udstuen, 59, of Crystal Lake faces 10 to 16 months in prison under the plea agreement reached with prosecutors. Udstuen (pronounced Ud-sten) admits taking bribes from former state legislator Roger Stanley so that Stanley's firms could win millions of dollars worth of contracts with Metra.
In April, Udstuen resigned from the Metra board where he served since 1984, shortly after its creation.
Officials at the commuter rail service said they were shocked by the allegations and insist no contracts were improperly influenced despite the allegations against Stanley.
Udstuen also resigned from the state medical society in April. He began there as a lobbyist in 1975 and most recently served as associate executive vice president, earning nearly $50,000 in salary and benefits in 2000, according to federal documents.
He also gave up his job as chief operating officer of the society's affiliated malpractice-insurance company, a position he had held since 1991. The post paid $429,345 in salary, benefits and other compensation, according to federal documents filed in 1998.
Except for a brief apology after his plea, Udstuen, known for the unlit cigar usually planted between his teeth, has declined to speak publicly about his role in the schemes.
"I'm very sorry for my personal conduct in this matter," Udstuen told reporters after his court appearance.
He also declined to name the high-ranking secretary of state official who, according to information Udstuen provided prosecutors, he was told had also shared in some of the payoffs.
Udstuen developed his taste for politics in the mid-1960s when he was a student at Northern Illinois University, a focal point at the time for the state's Young Republican organization.
Raised in Lake County by middle-class parents, Udstuen became state chairman of the College Republicans during the years when campus activism was mostly identified with those at the opposite end of the political spectrum--civil rights and anti-war demonstrators.
"We seldom burned anything or blew anything up, or chained ourselves to doors," recalled Schaffer, who roomed with Udstuen in college.
By 1968 Udstuen had joined the gubernatorial campaign of Richard Ogilvie, the Cook County Board president and former sheriff.
Doled out patronage
When Illinois voters elected Ogilvie to the state's highest office, Udstuen followed him to Springfield and became his patronage chief--a powerful position for someone in his mid-20s. But many recall that wasn't unusual in the Ogilvie administration.
"He was one of Ogilvie's whiz kids," said Schaffer.
James Nowlan, Ogilvie's running mate in the unsuccessful 1972 re-election campaign, described Udstuen as loyal, aggressive and self-confident.
"His job was to parry all the many requests for jobs from Republican county chairmen from around the state," said Nowlan, who now works at a University of Illinois think tank.
"He was good in that job because he has a brash and tough-talking demeanor," added Nowlan. "It would be unusual for a guy that young to take on crusty old county chairmen. But he enjoyed jousting. And I think the crusty old county chairmen enjoyed jousting with him."
Schaffer said Udstuen's deft handling of local party leaders during the Ogilvie years probably helped him land on his feet when the governor lost his bid for a second term. Udstuen became a member of Republican House Speaker W. Robert Blair's staff, said Schaffer.
The Illinois State Medical Society, aware of Udstuen's political skills, hired him as a lobbyist in 1975 after Blair was voted out of office in 1974. With Democrats controlling the governor's office and both houses of the legislature, the state's doctors were becoming increasingly concerned about trial lawyers dictating the direction medical malpractice legislation would take.
Udstuen's effectiveness on behalf of the society earned him the nickname "Doctor Don" in Springfield.
And the society became a political force. Since 1994, according to state records, the medical society has contributed at least $4.4 million to campaigns--mostly Republican candidates running for office at all levels of local and state government, although Democrats are also represented.
More than 1,600 contributions are listed in the state records, the largest coming in $100,000 chunks to the Republican state Senate and House campaign committees.
In 1990, when Ryan ran against Democrat Jerome Cosentino in his first bid for secretary of state, Udstuen became a key campaign adviser.
"Udstuen had a pretty good reputation as a back-alley brawler," said a longtime Republican strategist, who asked not to be named.
"He helped prep George for the debates. He anticipated where Cosentino might attack George."
On Ryan transition team
After Ryan's victory, said the source, Udstuen helped interview candidates for top jobs in the secretary of state's office. Ryan had named him as one of four people to head his transition team--one of the few public roles in state politics that Udstuen has taken over the years.
But the source said that Udstuen maintained close contact with the office after it had been established, falling into his more familiar role as behind-the-scenes adviser.
Udstuen was also a force in Ryan's 1998 gubernatorial campaign. He advised Ryan to name Corinne Wood as his running mate, balancing her social moderation against Ryan's conservative image.
"Don has a reputation for being frank, outspoken, brash, crude, rude--whatever words you want to use," said Schaffer. "But people respected him."
 

Another 'no' to state GOP post
 
BY STEVE WARMBIR STAFF REPORTER
July 8, 2002
 
Former Quaker Oaks Chairman William Smithburg, the leading candidate to head the scandal-battered state Republican Party, has dropped out of the running, sources said Sunday.
Smithburg is the second candidate in short order to turn down the job, and his decision further roils the state GOP. State party leaders had hoped to elect a new leader as early as today.
Last week, former Gov. Jim Edgar, a favorite choice among many of the party faithful, declined the job after he failed to get approval to take the post from the University of Illinois, where he is a faculty member.
Smithburg initially expressed interest in the job but told GOP gubernatorial nominee Jim Ryan over the weekend that he didn't have enough time, sources said.
Smithburg was seen as a good candidate because he is active in the state party, isn't a politician and has a solid reputation for integrity.
Other names that have been floated for the job included Robert Kjellander, the state's Republican national committeeman and a Springfield political consultant; Greg Baise, a campaign manager for former Gov. James Thompson, and construction bigwig James Kenny, who has said he doesn't want the job.
The Ryan campaign had no comment Sunday on the latest development.
The state GOP needs a new leader after House Minority Leader Lee Daniels (R-Elmhurst) resigned from the job last month amid allegations that some of his employees did political work on state time.
Those allegations were just the latest to batter the GOP. In recent months, friend after friend of Gov. George Ryan has been indicted, including his former campaign manager, Scott Fawell.
Even Gov. Ryan's campaign fund, in an unprecedented move, has been charged criminally.
The federal investigation into corruption under Ryan while he was secretary of state shows no signs of slowing down. Ryan himself has not been charged with any crimes.
With the state GOP in disarray, some members of the Illinois Republican State Central Committee, meeting today in Oak Brook, have talked informally about calling for Ryan to resign.
"It wouldn't bother me a bit if he resigned; I'd be happy," said GOP central committee member Steven Meyer of Oak Park.
But top party leaders expressed doubt that the central committee would make any demand for a Ryan resignation, for now. The committee appears more likely to issue a statement soon on the party's ethical principals, in an attempt to buff up the state GOP's tarnished image.
The focus on the scandals and the continuing attempt to find someone palatable to lead the party is shifting attention away from the party's slate of candidates, GOP leaders griped Sunday.
"Let's stop overshadowing our candidates," said Maureen Murphy, a central committee member and chairman of the Cook County GOP.

It pays to have friends
 
Rich Miller
Capitol Fax
08 July 2002
Governor George Ryan has withstood endless calls for his resignation and/or impeachment from the news media and the citizenry mainly because he is beloved at the Statehouse.
Through thick and thin, Ryan's staff has stuck with him, out of loyalty and respect. His friends, up until lately perhaps, have also stayed mum. Even his political opponents stayed mostly quiet, partly because they like the guy.
But House Republican Leader Lee Daniels has few true friends in Illinois politics and has never treated his staff very well.
So, when allegations started to fly that Daniels may have paid his legislative staff with state funds to do lots of campaign work, several former staffers (as many as eight, according to the Chicago CBS TV affiliate) immediately beat a path to the US Attorney's door.
Within days, Daniels was forced to resign his chairmanship of the Illinois Republican Party, claiming he didn't want the federal investigation to distract from gubernatorial candidate Jim Ryan and the rest of the Republican ticket.
Daniels is suave and dignified in public, but he is often paranoid, vindictive, extremely thin-skinned and has a mean temper. His mid-level staff is paid a pittance and not treated with respect. Political insiders often complain that Daniels too often changes positions on issues with no notice. Even several of his assistant House Republican leaders mock Daniels behind his back - always off the record, of course - while they piously pledge their allegiance in public.
Daniels just doesn't naturally engender loyalty. Many people, like his members and other Republicans in the state, do his bidding simply because he has power, and because he has proved on many occasions he will use his power against anyone who crosses him.
That is a big reason why Daniels had to become state party chairman in the first place. With the new legislative map in Democratic hands and almost zero chance of his ever regaining the House majority in the next ten years, he had to have an even higher post to avoid total irrelevance. He needed to make sure he could still pry loose campaign dollars from lobbyists and political favors from the Republican establishment. In the new environment, Lee Daniels, House Minority Leader, could be brushed aside. Lee Daniels, state GOP party chairman, would have to be taken seriously.
Daniels fought hard to win the state chairmanship. Senate President Pate Philip bitterly opposed the idea, believing Daniels just wasn't up to the job. Pate stopped Daniels dead in his tracks a year ago, but then finally relented earlier this year when Governor Ryan - Daniels' Number One ally - insisted.
And now the chairmanship is gone, reluctantly given up amidst a flurry of accusations and a dangerous federal investigation. His own party's gubernatorial candidate, Jim Ryan, bragged through his staff after the resignation that he had forced Daniels out.
Daniels has never been in a worse spot than he finds himself at present. Never.
Now that Daniels has given up the state party chairmanship, his ability to hold onto his House leadership job is in serious doubt. Like I said earlier, he fought for the chairmanship to avoid being marginalized. Imagine how marginalized he is at the moment, after giving up that crucial post during a federal corruption investigation.
After the disastrous 1990 election, when the House Democrats stomped Republican candidates into the dust and won a veto-proof majority, a group of House Republicans tried to oust Daniels as their leader. He outmaneuvered them at every turn and then he ran most of them out of the House forever.
But the crucial turn of events back then came when the major Republican campaign donors decided to stick with Daniels in his fight against the insurgents. Without lots of campaign money, you're a nobody in Springfield.
So if any of those same all-important groups even subtly turn against Daniels this time around, perhaps by contributing heavily to whoever they want to replace him, they might embolden some of Daniels' members.
Barring an actual indictment against him or maybe his campaign fund, any Daniels resignation or ouster as House Republican Leader will not come as quickly or as easily as his resignation from the state party job. Daniels has a lucrative partnership in a major Chicago law firm because of his House post. Without the House job, his firm wouldn't have much use for him. He'll fight tooth and nail to stay.
Stay tuned.
 

A lot of questions out there in search of answers
 
By DANA HEUPEL
STATEHOUSE EDITOR
8 JULY 2002
Is reporting about state government a great job, or what? You get to make powerful people mad at you. You're allowed to listen to hours upon hours of scintillating debate by state legislators. You get to sift through mountains of news releases and sit through endless political press conferences.
Best of all, you get paid to ask impertinent questions. You even get answers to some of them. Many, though, you don't - or at least not in the way you hope for. Here are some of the things I really want to know:
The economy shows no signs of a rebound - or even an occasional crowd-pleasing slam-dunk. Were the increases in cigarette and gambling taxes simply a Band-Aid to keep the state's budget wounds covered until lawmakers can come back after the fall elections and raise sales or income taxes?
Our elected lawmakers apparently believe we're so stupid or vindictive that we'd automatically throw them out of office if they do increase taxes to make sure the state can provide essential services. Ever wonder if they've just been paying too much attention to those folks who call talk-radio shows?
State government has decided to borrow $1 billion so it can pay its bills on time. Did anyone look to see if maybe we could get a better interest rate with one of those credit consolidation companies that advertise on late-night television?
If you visit the Capitol, you are required to sign your name and show a picture ID. Teens are able to get around that kind of security system just to buy beer. Does anyone believe it will stop someone who really wants to do some harm?
There's some talk about razing or dramatically renovating the Stratton Building next to the Capitol. It's doubtful, though, that anything will happen until the economy improves. 'Til then, has anyone thought about solving two problems at once by turning it into a prison? Wouldn't that be a perfect use for its gulag design?
The U.S. Supreme Court has decided that vouchers are OK - where the state pays you to send your kids to private schools because you believe state-supported schools are terrible. Could that set a precedent so we could get state vouchers for private roads? Private recreational areas? Maybe even our own privately hired legislators?
Attorney General Jim Ryan, the Republican candidate for governor, turned over to the feds an investigation into whether House Republicans used state staff for political work. That has drawn fire from his opponent, U.S. Rep. Rod Blagojevich, and other Democrats, who say Ryan should appoint a special counsel to conduct a state investigation. Do you suppose they'll be as vocal about in-house probes if state Sen. Lisa Madigan is elected attorney general and questions are raised about her father's House Democrats?
Then again, if Ryan is so concerned about conflicts of interest, what's up with him acting as attorney for the state in its decision to close Lincoln Developmental Center, and then making campaign promises that he'll do his best to reopen it if he's elected?
House Republican Leader Lee Daniels and GOP Gov. George Ryan are up to their neckties in alleged corruption scandals. The state's two most powerful Democrats, Chicago Mayor Richard Daley and House Speaker and party chairman Mike Madigan, aren't. Are you sure we're really in Illinois?
Gov. Ryan is being praised around the world as a visionary in the movement to ensure that the death penalty is applied fairly and correctly. He is reviled in his home state because of the licenses-for-bribes scandal. What do you think the history books will report about him 50 years from now?
Jim Ryan is frantically trying to avoid voter confusion over his having the same last name as the scandal-ridden governor. U.S. Sen. Dick Durbin has to be a little worried about the name of his Republican opponent, state Rep. Jim Durkin. With all the high-paid political consultants involved in this year's election, is anyone but me surprised that no one's found a Phil Blagojevich to run as an independent for governor?
Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.
 

Statehouse Insider

By DOUG FINKE
STAFF WRITER
7 July 2002

Democrat ROD BLAGOJEVICH is right proud of all the money hes raised in his campaign for governor.

Hes so proud of it, in fact, that his campaign put out a press release about it. "Blagojevich sets record for Democratic fund raising in general election" said the headline on the press release.

The release goes on for 21/2 pages explaining how Blagojevich raised $7.5 million from January to June, with more than $5 million of that coming in since the March primary election. Get the picture? The cash is pouring in.

Blagojevich campaign officials explained they wanted to get out the information to show that Blagojevich is a strong candidate, especially in comparison to other Democrat candidates the past few years. Thats certainly one way of looking at it.

The cynical view is that there are a ton of special interests giving a ton of money to Blagojevich. These interests tend to expect something in exchange for their support. So Blagojevich raises a bunch of cash, but hes also beholden to a bunch of interests. He hasnt filed his disclosure reports yet, so no one knows who is giving all of this money. It will be another month before that happens.

By the way, dont be naïve and assume Republican JIM RYAN will somehow avoid raising his own ton of cash from his own ton of interests. But at least Ryan hasnt been gauche enough to brag about it in a press release.


A Springfield man was arrested last week and charged with burglarizing two state buildings. He is suspected in several other burglaries in which $200,000 worth of computer equipment was taken.

The man was nabbed after security officers spotted him entering secure areas and private offices inside the Department of Revenues Willard Ice Building. He was found about 8 a.m.

This raises the question: How in the heck did an unauthorized person get that far inside the states tax collection headquarters before anyone noticed him? Arent all state buildings are supposed to be on a higher state of alert ever since the Sept. 11 terrorist attacks? And Revenue was supposed to be a higher-security building even before the attacks because of the nature of the work done there.

Revenue spokesman MIKE KLEMENS said the department is still investigating how the guy got into the building when he clearly had no business being there.

"We dont know how he got in here," Klemens said. "Clearly, it shouldnt have happened."


A colleague cleaning his desk came across a press release dated Oct. 25, 2000, from the Illinois Republican Party. The release talks about a complaint the GOP filed with the Federal Election Commission charging that House Speaker MICHAEL MADIGANs chief of staff was doing campaign work on state time, a charge denied by Madigans operation. Madigan is also chairman of the state Democratic Party.

Does the year 2000 ring a bell? Thats the same election where a bunch of House Republican staffers allegedly worked on campaigns on state time. Federal prosecutors are looking into that one. The allegations forced House Republican Leader LEE DANIELS to step down as state Republican Party chairman after only seven months.

Guess you can file this under what goes around comes around.


The breathless news reports said the state ended the fiscal year with only nine cents in the bank, further proof that the state is nearly bankrupt. Geez, even people who live paycheck to paycheck usually have more than nine cents in their checking accounts at any one time.

The story was partly accurate. Theres this thing called the general revenue fund that pays most of the states bills. It was indeed down to nine cents on June 30. Thats not good news at all, but state budget officials believe it dropped to zero at times in the early 1990s.

Theres also the general funds (plural) balance, which is the number usually cited when the pols talk about money in the bank at the end of the year. It includes the general revenue fund (singular) and three other funds. That one stood at $256 million on June 30. Its still nothing to brag about, but its better than nine cents.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

GOP may tap ex-Quaker chief
 
BY SCOTT FORNEK POLITICAL REPORTER
July 6, 2002
 
Former Gov. Jim Edgar has pretty much slammed the door on taking over the Illinois Republican Party, and GOP insiders say former Quaker Oats chairman William D. Smithburg is the leading contender for Plan B.
GOP gubernatorial nominee Jim Ryan has been unable to get a yes from Edgar during a week of conference calls, discussion and speculation since he identified the popular former governor as his top choice to take over from embattled party chief Lee Daniels.
"I would say that's not going to happen," said a top party official. "Plans B and C are being worked on. There is no person yet that's definite. . . . Smithburg is definitely in the mix."
Other names being tossed around include Frank Considine, retired head of American National Can Co.; James Kenny, a construction magnate and GOP fund-raiser who has already said he does not want the job, and Robert Kjellander, the state's Republican National Committeeman and a Springfield political consultant with strong ties to the White House.
Ryan's campaign refused to comment on the selection process, but sources said Smithburg, a native Chicagoan who stepped down from Quaker Oats in 1997, is now No.1 in his sights.
"He's someone who has been very active in Republican politics, but is not an office-holder and has complete integrity," said a top GOP strategist. "He's also very well known in the business and civic community, and he will help raise the money necessary to administer Republican get-out-the-vote programs."
Edgar was interested in taking over as party chairman but could not get the OK from the University of Illinois, sources said. He is a distinguished fellow at the school's Institute of Government and Public Affairs.
"He has said he does not think he can do it because of U. of I.," one source said. "They think it's too deeply into politics, being head of a political party."
Other insiders said Edgar knew it would be a thankless task to take control with the ethical cloud hanging over the party. Daniels, who also is state House minority leader, resigned amid allegations his staffers did political work on state time.
Ryan has shifted his focus to Smithburg, speaking with the retired businessman by telephone Friday. Smithburg, who turns 64 Tuesday, could not be reached for comment.
Smithburg was at Quaker Oats for 31 years, 16 of them as chief executive officer. He built the firm into a global food and beverage company and counts acquiring Gatorade as one of his successes. He retired on a somewhat sour note, taking much of the blame for buying the money- losing Snapple brand and then having to sell it for a stunning $1.4 billion loss.
A major contributor to Republican candidates, Smithburg is close friends with Edgar and former GOP vice presidential nominee Jack Kemp. While traveling with Kemp to a private ski resort in Montana in March, he took a detour and brought Kemp to Chicago to campaign for Ryan during the primary.
If Smithburg is chosen, he must still be approved by members of the Republican State Central Committee, who are scheduled to meet in Oak Brook on Monday. Some questioned whether Smithburg would be a figurehead or get involved in the day-to-day operations of the party.
"He brings a lot of fund-raising ability to the party," said Dallas Ingemunson, vice chairman of the state GOP. "He has never had a lot of participation in the nuts and bolts of a campaign or party organization, that kind of thing. If he has the right people around him, I suppose he would function OK.''
"I just think this is a time when we could use someone with a profile like Jim Edgar," Ingemunson said. "But there aren't a lot of people with that profile."
And Ingemunson said he does not blame Edgar.
"If I were Jim Edgar, why would he want to get into this mess?" Ingemunson said. "It is probably not the kind of thing he needs. It would have been a great thing for us. I have no problem with Smithburg at all. He just doesn't bring us the persona that Jim Edgar has."
Some Republicans refused to predict who would wind up running the party.
"I'd rather bet on the Cubs," said one GOP strategist. "Every hour it's a different front runner."

Reversal of fortune
 
BY STEVE NEAL SUN-TIMES COLUMNIST

July 5, 2002
 
 

Follow the money. With just four months until the 2002 general
election,
Illinois Democrats are better funded than the GOP in five of the six
contests for statewide office.
Among the reasons Republicans have dominated the governor's office for
26
years is their party has always raised and spent more political dollars
than
the Democrats. From Jim Thompson in 1976 through George Ryan in 1998,
this
financial advantage has helped the GOP win the last seven gubernatorial
races.
This election is different. In anticipation of a new Democratic era,
political donors are voting with their pocketbooks.
Rod Blagojevich has raised more than $7.6 million since the first of
the
year--more than $5.1 million since the March 19 primary--and has about
$4
million in the bank.
Jim Ryan, who spent about $5million to win the GOP gubernatorial
primary,
got a boost in May when President Bush came to town and helped him rake
in
another $2 million. But after a Downstate television blitz, Ryan has
less
cash on hand at this stage of the campaign than any GOP nominee of the
last
decade.
Campaign finance reports aren't due until the end of the month and
Ryan's
camp hasn't made public his financial plight. But Republican insiders
said
Blagojevich now enjoys a financial advantage of more than 4 to 1.
This is a stunning reversal of fortune. At this stage of the 1998
gubernatorial race, GOP nominee George Ryan had a 9-1 advantage over
Democrat Glenn Poshard. In contrast with Blagojevich, Poshard declined
to
accept money from political action committees or corporations and he
imposed
a $2,000 limit on contributions from individuals. If Poshard had
removed
these restrictions, the playing field would have been more level and he
might well have won.
Among the reasons Jim Ryan is in this financial plight is he had to
endure
an expensive and bitterly fought primary. In contrast with the
Democrats,
who enjoy primary fights, the Republicans have traditionally avoided
divisive intraparty battles. Lt. Gov. Corinne Wood and state Sen.
Patrick
O'Malley (R-Palos Park), neither of whom had any realistic chance of
winning
their party's nomination, spent a combined $12 million on their
respective
ego trips and forced Ryan to give up the GOP's financial advantage in
the
general election. Jim Ryan will close the fund-raising gap but he will
never
get back the millions that were squandered in the primary.
Blagojevich isn't the only Democrat to hold a significant fund-raising
advantage. Sen. Richard J. Durbin (D-Ill.), who spent $4.9 million in
his
1996 campaign, has collected more than $4million toward his
re-election.
State Rep. James Durkin (R-Westchester), Durbin's highly regarded
challenger, has less than a fourth of Durbin's cash. Six years ago, GOP
senatorial nominee Al Salvi spent $4.6 million. If Durkin had Salvi's
money,
he could have given Durbin a scare. But given Durbin's huge financial
advantage, he is expected to win a second term.
Secretary of State Jesse C. White, who has raised more than $3.5
million,
will have significantly more cash than Republican challenger Kristine
O'Rourke Cohn. White is looking to have $4 million in his war chest by
Labor
Day. Cohn, the Winnebago County board chairman, must overcome the
perception
that she can't win to raise enough money to compete with White. An
incumbent
secretary of state hasn't been defeated since 1952. It's the longest
winning
streak among constitutional offices.
In the race for attorney general, Democrat Lisa Madigan is expected to
have
the fund-raising edge over Republican Joseph E. Birkett. Madigan raised
and
spent more than $3 million to win the March primary, which is about
three
times what Birkett spent in the GOP primary. Madigan is expected to
have at
least twice as much cash as Birkett in the general election.
State Comptroller Dan Hynes, who is expected to lead the Democratic
ticket
this fall, enjoys a huge financial advantage over GOP challenger Thomas
Jefferson Ramsdell.
The only Republican with a fund-raising advantage is State Treasurer
Judy
Baar Topinka, who is bracing for a powerful challenge from state Rep.
Tom
Dart (D-Chicago). Topinka is expected to have about $1.5 million for
the
general election. Dart will have more money than Topinka's two previous
rivals. But Topinka, who is the only Republican currently leading in
statewide polls, should benefit from her incumbency and financial edge.
But led by Blagojevich, Illinois Democrats have taken away the GOP's
historic fund-raising advantage. It's a whole new ballgame.

 

Senator who lost seat gets higher-paying state post
 
BY DAVE MCKINNEY SUN-TIMES SPRINGFIELD BUREAU
July 5, 2002
 
 
SPRINGFIELD--In Illinois politics, sometimes it pays to lose.
Thomas J. Walsh represented the western suburbs in the state Senate for almost a decade. But this year, the La Grange Park Republican got drawn out of his legislative district by Democrats and lost a spring face-off against Sen. Dan Cronin (R-Elmhurst).
Walsh's Senate term was to have expired next January. But now he has stepped down from that position and was appointed by Gov. Ryan to an opening on the Illinois Labor Relations Board.
The new appointment means a pay hike of almost $13,000.
"I had planned to serve out my term, but an opportunity came my way that I simply could not turn down," Walsh said in a written statement Wednesday that announced his resignation.
Walsh made $65,329 a year as a state senator. In his new post, he'll be paid $78,292--an increase of nearly 20 percent.
Ray Serati, an aide to Ryan, said, "The governor feels Sen. Walsh is well-qualified because of his experience in the Senate, so he appointed him to the board."
Walsh's appointment requires Senate approval.
A successor in the Senate has not yet been named.

Donations from Good Government Council seemingly a little odd

 

By BERNARD SCHOENBURG
POLITICAL COLUMNIST
4 July 2002

So is the world upside down or what?

A new campaign disclosure form for the Good Government Council shows the group gave $1,000 to Democratic gubernatorial candidate ROD BLAGOJEVICH, and there is nothing for Republican candidate JIM RYAN.

Nothing too odd there, until one considers the good government group is the political action committee of the Illinois Asphalt Pavement Association, whose executive director is BILL CELLINI of Springfield.

Cellini is a noted Republican fund-raiser and treasurer of the Sangamon County Republican Party.

What gives here?

Well, Cellini was out of town, but the government affairs director of the asphalt group, CONNIE HUMPHREY, said the board considers all invitations to fund-raisers. The Blagojevich campaign sent one, and the organization made the donation. No invitations had come from the Ryan campaign, she said.

That explanation just might put a stop to speculation that maybe Cellini was looking positively at the Blagojevich candidacy. The speculation could have been fed June 14, when Blagojevich told the Consulting Engineers Council of Illinois in Springfield that hes for expanding the $12 billion Illinois FIRST infrastructure program. Asphalt pavers tend to like infrastructure work.

"I believe in a very aggressive and expansive building program," Blagojevich said at the time. He said hed like to find the money for such a program, but he didnt suggest where it would come from.

Gov. George Ryan delivered a similar message back in March 2001, when he told the asphalt group that Illinois FIRST was still leaving many needs unmet. At the time, GEORGE RYAN called Cellini the "guy that steps up and gets things done," and Cellini said Ryan was a leader with "bold proposals."

People who love speculation also could note Cellini appeared to suffer a major disappointment when Jim Ryan, as attorney general, blocked a deal in 1995 that would have written off a state loan to help build the Renaissance Springfield Hotel, owned in part by Cellini. The hotel would have paid only $3.7 million on $19.8 million in debt including interest that it owed to the state then. Ryan backed by a University of Illinois study that pegged the hotels value at $10 million to $12 million said $3.7 million wasnt enough.

Blagojevich has never met with Cellini, said Doug Scofield, a spokesman for the Democratic candidate.

"Rod said hes not sure he would know what Bill looked like," Scofield said.

Scofield also said hed be shocked if the asphalt group doesnt get around to donating to the Jim Ryan campaign as well.

The Good Government Councils report shows other a bipartisan spirit elsewhere. The campaign of state Rep. STEVE DAVIS, D-East Alton, got $1,000. Davis thinks the asphalt groups contribution happened because his best friend, former House Majority Leader Jim McPIKE of Alton, lobbies for the group.

A fund set up by state Sen. JAMES DeLEO, D-Chicago, to support his role as a member of the Democratic State Central Committee got $2,500. Friends of MICHAEL J. MADIGAN got $5,500. The Illinois Senate Democratic Fund got $5,000, and a group named for the Senate Democrats leader, the EMIL JONES JR. Youth Foundation, got $1,000, as did the campaign fund of Democratic Comptroller DAN HYNES.

But let us not fail to see that Republicans are well represented. The campaign fund of Sen. STEVE RAUSCHENBERGER, R-Elgin, who chairs the appropriation committee, got $4,000. Attorney general candidate JOE BIRKETT got $1,000. Rep. ANGELO "SKIP" SAVIANO, R-Elmwood Park, who also is on the Republican State Central Committee, got $3,000. And Friends of LEE DANIELS, the House GOP leader who is leaving his post as chairman of the state central committee, got $3,500.

In all, the asphalt paving group took in $107,000 in the first six months of the year, with paving companies from across the state contributing. More than $55,000 was distributed to other political committees.

Cellini was out of the country and couldnt immediately be reached.

DAN CURRY, spokesman for Jim Ryan, said he didnt know what position Cellini is taking in the race or why Jim Ryan did or did not get a contribution. But while saying he wasnt singling out the group, he also used the issue to raise questions about Blagojevichs fund-raising.

He noted Blagojevich switched "hard money" in his congressional campaign fund for "soft money" from the Democratic Congressional Campaign Committee, yielding a profit of more than $250,000. Curry also said the Blagojevich campaign should think about returning money the candidate has received in recent years from embattled WorldCom and MCI.

Jim Ryan, Curry said, takes no money from telecom companies or utilities and turned back money from Enron.

Scofield responded that Blagojevich takes no money from casinos or tobacco companies and has already decided that any WorldCom money he received should be given to a fund to help that companys employees.

"Well happily match our standards against Mr. Ryans anytime," Scofield said.

He said Ryan still has money from Daniels, whose House staff is being investigated after published reports suggesting campaign work was done on state time in 2000.

As for money from Daniels, Curry said, "typically we havent returned money unless somebody has been charged."

IEA for Blagojevich?

Blagojevich, meanwhile, appears to have landed a big endorsement. There will be an official announcement next week that the Illinois Education Association has gone his way. That group has generally backed winners in recent years, going with Republicans JIM THOMPSON, JIM EDGAR and GEORGE RYAN in winning races. When it endorsed DAWN CLARK NETSCH in 1994, it was the first time it had gone with a Democrat in 18 years.

The 115,000-member IEA brings lots of manpower, as well as money, to its preferred candidates.

In other IEA news, the Illinois groups former president, Reg Weaver, has been elected president of the National Education Association.

Weaver, a former science teacher from Harvey, became the IEAs first African-American president in 1981. Collective bargaining legislation for teachers was passed in Illinois during his tenure. Hes been NEA vice president since 1996.

"Reg Weaver is precisely the person public education needs to articulate the concerns and the vision of the true education experts the men and women who work in the classrooms," said Anne Davis, the current IEA president who taught with Weaver in Harvey.

Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

 


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State GOP flounders in flood of scandals
 
By Rick Pearson and Ray Long
Tribune staff reporters
June 30, 2002
 
In the blustery month of January 1995, Republicans reveled in a sweep of statewide offices that helped them solidify a Senate majority and take control of a House that had been dominated by Democrats for a dozen years.
"I like this view," Republican Lee Daniels of Elmhurst said as he walked up the short staircase to assume his seat at the speaker's desk for the first time. "I'm going to stay for a while."
Seven years later, Daniels, whose stay as speaker lasted only two years before he reverted to being minority leader, was forced Friday to resign the chairmanship of a Republican Party that is in turmoil over a series of scandals. With critical elections ahead in November, the Republican talk is not of a sweep, but the fear of being swept.
Voter confidence in Republicans has been shaken by four years of criminal investigations and indictments arising from the federal Operation Safe Road investigation into corruption in the secretary of state's office.
Republicans in the legislature are at the mercy of a Democrat-drawn redistricting designed to keep the House GOP in the minority for the next 10 years while ending a decade of Republican control of the Senate.
But when Daniels decided to step down as state Republican chairman on Friday amid allegations that his legislative staff did political work on state time, it capped one of the most tumultuous weeks by an Illinois political organization.
In federal court, GOP insider and lobbyist Donald Udstuen pleaded guilty to tax fraud for taking kickbacks on state contracts, while former Republican lawmaker Roger Stanley pleaded not guilty to charges he bribed Udstuen.
Meanwhile, prosecutors said a memo to Gov. George Ryan during his tenure as secretary of state by his chief of staff, Scott Fawell, directed a housecleaning of internal inspectors who were looking at questionable campaign fundraising tactics. Prosecutors also said a witness saw Fawell, in an effort to appropriate state resources, use a screwdriver to pry state identification tags off equipment to use in the campaign.
On Wednesday, Daniels' gala $1,000-a-person state Republican fundraiser was boycotted by a Bush Cabinet secretary as well as GOP gubernatorial candidate Jim Ryan because of concerns over the legislative staffing allegations. After Jim Ryan, who is the state's attorney general, referred the allegations to federal prosecutors, Daniels relinquished the chairmanship he had sought for so long.
"I have never, ever seen anything like this before," said one leading Republican official. "Never."
New leadership sought
In a bid to rescue the slumping party and restore faith among rank-and-file Republicans, Jim Ryan made an appeal to former Gov. Jim Edgar on Friday to take the reins of the Republican Party. The attorney general said Edgar's integrity would help send a message that the Republicans, who have held the Executive Mansion for 26 years, were ready to institute self-reforms.
Edgar, he said, was "seriously considering" the offer over the weekend, although some close to the former governor said they would advise against it.
"No one wants to be the substitute captain on an already listing Titanic," said one longtime Republican consultant.
Daniels strategy ill-received
Daniels' downfall as Republican chairman began June 21, when he met with members of the Republican State Central Committee in private to defend himself and his House GOP leadership.
Sources who attended the meeting said Daniels was preparing to make a legal defense that state law refers to "partisan" legislative staffs. The statutory acknowledgment, Daniels' legal counsel said, would mean that using legislative staff for political purposes "is permissible and legal," sources recalled.
Although such a maneuver might make an interesting argument in court, it could have been a devastating public-relations move to tell taxpayers that Republicans thought it was OK to use public funds for campaigns.
"That was his real downfall," one meeting participant said of Daniels. "No one took him seriously."
Now, with Daniels ousted from his top party post, some Republicans said his position as House GOP leader also may be in jeopardy. They contend that Daniels' problems will affect the way Republicans run for House seats.
"We're going into a very difficult campaign cycle and now, if you're a [House Republican] candidate ... you don't want to receive help from the House Republican Campaign Committee, either staff or money, because you don't know if it can be used against you," one lawmaker said.
Some members of Daniels' leadership team dismiss any talk of replacing him and say the problems at the end of June aren't a concern to those who will vote on Nov. 5.
"People are a hell of a lot more worried about whether they're going to have a job than who the next governor is right now, in my opinion," said Rep. David Leitch of Peoria.
But Rep. Art Tenhouse of Liberty, the No. 2-ranking House Republican lawmaker, acknowledged that an already obstacle-strewn field for Republican candidates has been made even tougher.
"It's just not going to be easy," Tenhouse said. "It really isn't. It's not going to be easy for Jim Ryan. It's not going to be easy for whoever is chosen as party chairman."

Copyright © 2002, Chicago Tribune
 

GOP disarray may spell doom in fall vote
 
BY STEVE NEAL SUN-TIMES COLUMNIST
30June2002
 

The fall of state GOP Chairman Lee A. Daniels (R-Elmhurst) has left his party in disarray and could doom its statewide ticket in the Nov. 5 election.
Attorney General Jim Ryan, the Republican nominee for governor, sought to cut his party's losses by dumping Daniels as state chairman.
Daniels resigned Friday after learning that federal prosecutors were investigating allegations that GOP legislative staffers had done campaign work on state time.
Jim Ryan's camp welcomed Daniels' exit. But the Daniels resignation is only part of the GOP's troubles.
According to polls, Democrat Rod Blagojevich is leading Jim Ryan in the governor's race and Democrats are ahead in all statewide contests with the exception of state treasurer, in which Republican incumbent Judy Baar Topinka is leading state Rep. Thomas J. Dart (D-Chicago).
The Democrats are favored to win control of the state Senate for the first time in a decade and to retain control of the House as the result of winning the lottery to draw the legislative map after the 2000 census.
"The status of the party right now is a shambles," said a former staffer and political operative of Daniels. "This party has no leadership at the helm. There's no captain, and this is going to be a problem, not just for Jim [Ryan], but for every constitutional candidate running."
Corruption is a major issue for the Democrats. Gov. George Ryan is the target of a federal probe that dates back to his tenure as secretary of state. There have been 45 convictions and no acquittals in the investigation.
Even though Jim Ryan and George Ryan aren't political allies, the fact that they share the same last name is a clear liability for Jim Ryan and is expected to cost him thousands of votes.
Both Ryans showed questionable judgment last fall when they supported Daniels to replace Richard S. Williamson as Republican state chairman. Daniels is a weak legislative leader who has lost eight out of nine battles for the Illinois House to his Democratic counterpart, Michael J. Madigan.
Former Kendall County State's Attorney Dallas C. Ingemunson, a close associate of U.S. House Speaker J. Dennis Hastert, challenged Daniels for the state chairmanship with the encouragement of state Senate President James "Pate" Philip (R-Wood Dale).
It is ironic that Jim Ryan supported Daniels for the chairmanship because the two DuPage Republicans have never been close. Eight years ago, Daniels supported Metra Chairman Jeff Ladd over Ryan in the GOP primary for attorney general.
Daniels became frustrated with Jim Ryan last fall when Ryan spurned efforts by Daniels to reach agreement on a unity ticket with Lt. Gov. Corinne Wood for renomination to her current office, Topinka for secretary of state, and state Sen. Patrick O'Malley (R-Palos Park) for treasurer.
Jim Ryan and Daniels blamed each other for their party's divisive primary, in which Wood and O'Malley spent more than $12 million on attack ads and held Ryan below 50 percent of the GOP vote.
Daniels, who was first elected to the Illinois House in 1974, is the grandson and namesake of a former DuPage County state's attorney and GOP candidate for attorney general. Since 1983, he has served a record tenure as leader of House Republicans. It has long been his ambition to run for statewide constitutional office or for the U.S. Senate.
But though Daniels explored possible runs for attorney general in 1982 and secretary of state in 1998, he would never give up his safe legislative seat for the uncertainty of a statewide political race. As Daniels moved into the House GOP leadership, his law practice became so profitable that he couldn't afford to give it up.
Even before the allegations surfaced that Daniels used legislative staffers for political work on state time, Jim Ryan's camp questioned his effectiveness as state chairman. When Daniels' ethics became a public issue, Ryan concluded that the House GOP leader had to be removed as state chairman.
In Jim Edgar's successful 1990 campaign for the governorship, he took similar action when he engineered the ouster of James Dvorak as Cook County Republican chairman. Dvorak, like Daniels, was under the cloud of a federal corruption probe. Edgar went on to win the governorship.
But Ryan may have a more difficult time.
"The average Joe on the street will turn around and say, 'After 26 years, they can't do any worse--the Democrats. Let's let them try it a while,' " the former Daniels staffer said.
Nonetheless, Allen Fore, executive director of the state GOP, insists the Republicans can pull out a victory in November.
"When I go out and speak to all the groups, I say--with all sincerity--this is a good time to be a Republican," Fore told a reporter.
When the reporter laughed, Fore added: "And they don't do that."
Contributing: Scott Fornek

Edgar said to be considering taking state party's helm

June 30, 2002
BY DAVE NEWBART STAFF REPORTER
 
Republican Party sources and those close to Jim Edgar said Saturday the former governor is "seriously considering'' taking over as state GOP chairman, though some still consider the move a long shot.
Top GOP leaders had been in touch with Edgar on Saturday urging him to take the helm of a party in crisis, after the resignation of House Republican leader Lee Daniels on Friday.
To their surprise, Edgar--who has never been an enthusiastic political fund-raiser and would have little to gain by taking the chairmanship--has not dismissed the idea. Raising money for candidates is a major part of the party chairman's job.
"He's seriously thinking about it,'' said one Republican Party official, who asked not to be identified. "It shocks the hell out of me.''
Edgar is visiting relatives in Colorado and was scheduled to stay there through July 4. He could not be reached for comment.
But GOP officials are hoping to fill the chairmanship at a July 8 meeting of the state Republican Central Committee. With November elections looming, officials do not want the post to remain vacant for long.
Edgar realizes he needs to make a decision soon, and sources said he plans to do so no later than midweek. "He understands there isn't any time to pussyfoot around,'' the Republican source said.
Illinois Attorney General Jim Ryan, the GOP gubernatorial nominee, said Friday he had spoken with Edgar twice about taking over the party since Ryan announced that federal investigators were looking into allegations that about two dozen of Daniels' Chicago House staffers were deployed to work on hot House contests in 2000 while on state time.
Daniels headed the party for only seven months, leaving more than three years to go in his term.
Dan Curry, a spokesman for Ryan, said the GOP is eager to see the remainder of the term filled by Edgar because he would bring a "strong message of integrity.''
"Moderates and liberals and conservatives have respect for his integrity and the way he led the state,'' Curry said. "He ran a clean governor's office and put the state's financial health back in order.''
Edgar chose not to run for re-election in 1998 after two terms in office in which he held high approval ratings. He is a lecturer at the University of Illinois and doing some consulting work.
"I don't think it's something former governors do,'' a source close to Edgar said. "On the other hand, I do know he believes very strongly in the Republican Party, so he's listening.''
One Republican source said Edgar was considering the position out of a sense of "duty, honor, country.'' Plus, the source said, "He likes Jim Ryan a whole lot and feels very strongly that he should be the next governor.''
While Ryan worked behind the scenes to oust Daniels, he wasn't taking a position on whether Daniels should step down as House minority leader, Curry said. But some believe Daniels won't last in that position beyond the fall.
But Daniels has no intention of resigning his minority leader position, spokesman Gregg Durham said Saturday.
"No one has called on us to do that,'' Durham said.
 

Blagojevich sending out some mixed messages
 
By BERNARD SCHOENBURG
POLITICAL COLUMNIST
30 June 2002
Its good to know whom youre talking to, especially in politics.
Democratic gubernatorial candidate ROD BLAGOJEVICH, or somebody on his campaign, might have been a bit mixed up before a recent appearance by the candidate in Springfield.
Blagojevich spoke June 14 before a gathering of the Consulting Engineers Council of Illinois, a statewide association of 220 consulting engineering and land surveying firms in the private practice of engineering. These are private company folks.
But a letter sent before the gathering to participants, complete with a signed "Rod R. Blagojevich," makes it appear that he thought he was going to be talking to a union.
"My belief that unions are a part of the foundation on which Illinois and America rests has been reinforced as I have traveled throughout this great state," the June 7 letter states. "Protecting the rights of hard working men and women is a cornerstone of my campaign. That is why the Consulting Engineer (sic) Council of Illinois and I share common goals for the future."
"I look forward to talking to you about such topics as highway funding, school construction, and tollways on June 14th."
So, was this a mistake?
Not according to Blagojevich spokes-man BILLY WEINBERG.
"Rod Blagojevich is a candidate who does not try to have two tracks of messages," Weinberg said. "We dont necessarily see business and working peoples organizations as necessarily being competing interests."
Weinberg went on to say that its Republican candidate JIM RYAN, in his paid media, who has "a targeted, under-the-radar-screen approach." He noted that Ryan has run TV ads downstate criticizing Blagojevich on abortion and gun control, while not running those ads in Chicago.
Ryans running mate, state Sen. CARL HAWKINSON, mentioned the cost of the Chicago market when asked recently ago why the ads didnt run in Chicago. But he also said Ryan wont say different things in different parts of the state.
It also appears that Blagojevich opened himself to the question of sending a mixed message when talking about the so-called "scaffolding act" in front of the consulting engineers.
Officially called the Structural Work Act, the law that set safety criteria for construction sites and gave injured workers special rights to sue, was repealed in 1995. Blagojevich voted against the repeal.
Business groups generally considered the law damaging to the business climate and an invitation to frivolous lawsuits or duplicative benefits. When it was repealed in Illinois in 1995, New York was the only other state with such a law still on the books. The engineers group opposes reinstatement of the law.
According to two sources at the Springfield meeting, Blagojevich told the group early in his speech that he had voted against the repeal. But he also said, according to the sources, that if the issue comes up to him as governor, hell work with them.
"If this becomes an issue, the only promise I will make to you is that I will work with you on it," one source recalled him saying.
"If this should come up again, wed have to see what other states have done ... Id want to work with you on it," the other source recalled. Neither source took notes.
Compare those statements to the Blagojevich statement on his Web site, www.rodforus.com: "In 1995, the Republican-controlled General Assembly, at the behest of the insurance companies, repealed in one fell swoop this established and important law," he states.
"I would make it a priority to bring back the Scaffolding Act into Illinois law," he says. "The Republicans repealed it with one line of legislation; I will bring it back with one stroke of a pen."
Weinberg said he would take issue with the idea that the statements are contradictory.
He said Blagojevich, in areas of cultural, economic and party lines, thinks the "old concept" of competing interests "really no longer should exist. He intends to bring people together."
Its good to have laudable goals.
Meanwhile, just last week, the Blagojevich campaign changed some wording on his Web site after the Ryan campaign complained. Blagojevich had exaggerated his resume, Ryan forces said, because Blagojevichs campaign biography on the site stated that he "authored Illinois truth in sentencing law." Blagojevichs Web biography now reads that he "led the fight" for the law. The version that actually passed was not one sponsored by Blagojevich, but he had pushed a similar concept.
While the biography was changed on the Web site by midweek, as of Friday afternoon, the section specifically about crime still stated: "As a member of the Illinois State House of Representatives, Rod Blagojevich authored the states first "Truth in Sentencing" law. ..."
Blagojevichs staff
Weinberg, 33, is on leave from his $67,000 job as Washington-based press secretary for U.S. Rep. LUIS GUTIERREZ, D-Chicago, to work as press secretary for the Blagojevich campaign.
A native of Glencoe, he has worked for The Strategy Group, the consulting firm co-founded by DAVID WILHELM, who has been chairman of the Democratic National Committee. Wilhelm is a senior adviser to the Blagojevich campaign, having given up the title of campaign chairman to Chicago Mayor RICHARD DALEY.
Another Gutierrez staffer working for Blagojevich as deputy campaign manager in areas of policy and communication is DOUG SCOFIELD, who is on leave from being Gutierrezs chief of staff.

Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
30 June 2002
 
Attorney General JIM RYAN (as opposed to Republican candidate for governor Jim Ryan) held a news conference last week to declare that if anyone dared to challenge Illinois Pledge of Allegiance recitation laws, he would fight them. Whoopee. The attorney general is supposed to defend state laws.
After this bit of feel-good pandering was over, things took an ugly turn into allegations that House Republican staffers did campaign work on state time. Ryan announced that the U.S. attorneys office in Chicago had decided to "open a file" on those allegations.
Thats a big deal, not only for the House Republicans, but also for Ryan. Hes been battered for not aggressively investigating the licenses-for-bribes scandal in its early stages. The suggestion is he went easy on fellow Republican GEORGE RYAN. With a new batch of allegations surfacing about Republican officials, what would Jim Ryan do? If he wasnt aggressive this time, the Democrats would really have a field day, and Ryan could kiss the Executive Mansion goodbye.
With the U.S. attorney handling things, Ryan is off the hook. Ryan was only too happy to let reporters know that the case is now out of his hands. But what exactly did Ryan mean by "open a file"? You might assume that means an official criminal investigation is under way by the U.S. attorney, but maybe not. Reporters asked Ryan to clarify.
Suddenly, Ryan said he couldnt comment about investigations and files and what have you, even though he was the one who said "open a file" in the first place. It grew heated as reporters asked again and again for Ryan to explain, and he refused.
"You can ask the question 100 times, thats my answer," Ryan said.
"Let me ask it (again)," a reporter shot back. "Ive got 95 left."
Several hours later a Ryan aide called reporters to give the answer Ryan could have given earlier opening a file is indeed tantamount to launching an investigation. Why the big fuss by Ryan? Who knows? Maybe they should try rehearsing this stuff next time.
Gov. Ryan last week signed the Senior Pharmaceutical Assistance Act, which sounds good on paper, but does virtually nothing.
A news release touting the signing noted that "during the special session declared by Governor Ryan, the General Assembly approved $2 million" to be spent on senior help lines. Sounds great, doesnt it? But just to be clear here, that $2 million was money that Ryan had cut from the budget lawmakers sent to him in May. The General Assembly just restored the money during the special session.
Illinois government now officially has an early retirement program, and its going to reduce the number of layoffs needed to pare the state work force, according to its boosters. Yeah, well see how many.
Look at the numbers. More than 20,000 people are thought to be eligible, but most of them wont retire early. For many, the financial numbers simply wont add up. Even with extra retirement credits, they wouldnt have enough pension income to make ends meet. And unlike the early retirement plan of a decade ago, this one doesnt allow retirees to latch onto another state job for extra income.
Given that, the best guess of the pension experts is that about 7,300 people will take early retirement. For the state to save any real money from early retirement, half of those jobs will have to remain vacant. Filling all of them with lower-paid workers doesnt save enough cash.
Now youre down to about 3,600 jobs available to reduce layoffs. However, those jobs are in all parts of state government where people are part of the State Employees Retirement System. It isnt limited to agencies under Gov. Ryans control, where the layoffs will take place. So cut the pool of available jobs further.
Then you have questions of qualifications and location. If a midlevel agency manager retires, a laid-off prison guard probably wont be able to step in and replace him or her. For that matter, a laid-off state worker in Peoria or LaSalle-Peru may not be in a position to fill a vacancy in Springfield. Cut the pool further.
The point is, early retirement may keep some people from losing their jobs. Were thinking it wont be that many, though.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Ryan signs key pieces of budget
Riverboat gambling tax increased, borrowing agreement reached
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
Gov. George Ryan on Friday signed into law key pieces of the state budget for the fiscal year that begins Monday.
Ryan signed legislation that increases the states riverboat gambling taxes, implements various provisions of the state budget and repeals a tax break for Illinois businesses that resulted from passage of the federal economic stimulus package. He also signed a bill that allows the state to borrow against future proceeds from the national tobacco settlement.
In addition, Ryan announced that he, Treasurer Judy Baar Topinka and Comptroller Dan Hynes have agreed on a $1 billion short-term borrowing program meant to help the state pay overdue bills. The state has about $1.2 billion in overdue bills mainly from health-care providers, including pharmacies and nursing homes with Medicaid patients.
The borrowing agreement calls for the state to issue $1 billion of short-term certificates in July. Throughout the new fiscal year, the state will set aside enough money to pay off the debt by June 30, 2003.
The bills the governor signed include:
House Bill 2381, which enacts a higher tax structure for riverboat casinos and raises the casinos admission tax from $2 to $3 a person. Combined, those changes are expected to generate an extra $130 million for the state during the new fiscal year.
House Bill 4580, which includes budget implementation provisions for such programs as Medicaid and the KidCare health insurance program.
Senate Bill 1543, which cancels the state tax break that Illinois businesses would have received because of the federal stimulus package. Known as "decoupling," the new law will save the state an estimated $240 million while saving local governments an additional $150 million.
Ryan also signed House Bill 2828, which is known as the tobacco securitization bill and allows the state to borrow up to $750 million against future funds from the national legal settlement with tobacco companies. But he warned in a written statement that he would use securitization money only as a limited tool to "maintain a healthy rainy day fund and end-of-year balance."
"I want to make it very clear that no one with a stake in a balanced state budget should view this source of money as a way to maintain programs, services and facilities in the budget," Ryan said in a message accompanying the bill-signing notice. "Nor should anyone view this money as a way to restore programs, services and facilities that had to be cut in order to balance the (new) budget."
In addition, Ryan signed Senate Bill 2313, which will enact a one-year freeze on cost-of-living pay raises for many state officials. The legislation covers officials whose pay is controlled by the Compensation Review Board. It doesnt cover, for example, middle managers and support staff.
Without the new law, 3.8 percent increases would have been given to the governor and other executive officers, the General Assembly, states attorneys, judges and senior officials, such as agency heads. When lawmakers passed the legislation, they said it was an appropriate step, considering the states financial crisis.
The governor agreed. But in a written statement, he sent a pointed message to the states largest employee union, the American Federation of State, County and Municipal Employees.
He said that raises will be given to about 12,000 state workers who are classified as "merit compensation" employees non-union, mid-level managers, supervisors and support staff in state agencies. At the governors request, those workers took an unpaid furlough day during the current fiscal year, Ryan said.
"Unfortunately, their 40,000 co-workers represented by (AFSCME) also will get raises ... as required by their contract," Ryan wrote. "Despite a tough budget year, the leadership of AFSCME refused to discuss any reduction in raises, even if that meant the loss of thousands of state jobs."
Ryan said he has the power to block pay raises for the merit comp employees, but he wont use it.
"It would not be right to reward AFSCME employees with a raise when they refused to sacrifice for the greater good while punishing merit compensation workers who did do the right thing," the governor said.
Henry Bayer, executive director of AFSCME Council 31, said he is "outraged that the governor is trying to blame somebody else for his own actions."
Ryan made budget cuts that will cause people to lose their jobs, Bayer said.
"Every employee whos laid off by the state of Illinois is Gov. Ryans responsibility," Bayer said. "It seems he doesnt want to take responsibility."
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com

Daniels quits as GOP chief
 
June 28, 2002
FROM STAFF AND WIRE REPORTS

SPRINGFIELD-- Lee Daniels announced Friday that he will resign as chairman of the Illinois Republican Party, saying he does not want questions about misconduct by his staff to be a distraction.
"The party deserves to serve its purpose without unwarranted distractions. For that reason, it is best that I refocus my energy and encourage others to refocus theirs," he said in a statement.
 

On Thursday, Attorney General Jim Ryan disclosed a federal probe into Daniels' staff and worked behind the scenes to oust Daniels as state party chairman.
With his leadership of the party already under fire, Daniels has become mired in allegations that virtually his entire Chicago staff was deployed to hotly contested legislative campaigns in 2000 while on state time. Following hundreds of campaign visits, Daniels' staff allegedly billed taxpayers for more than $16,000 in mileage and other reimbursements.
Ryan, the party's nominee for governor, and other GOP leaders feared Daniels' problems could worsen the party's chances in November to keep the governor's mansion and the state Senate.
Two high-level Republican sources familiar with the effort to replace Daniels confirmed that former Gov. Jim Edgar and GOP fund-raiser and construction magnate Jim Kenny head a wish list of potential replacements for the embattled DuPage County politician, who became party chairman in 2000.
With the effort to ease Daniels out described as at a "delicate" juncture, neither Edgar nor Kenny had been contacted as of Thursday, and they could not be reached by the Chicago Sun-Times. Daniels, who has not been charged with wrongdoing, contends he personally was unaware of any criminal activity in his office.
Meeting with reporters in Springfield, Ryan said Thursday that U.S. Attorney Patrick Fitzgerald's office informed him that it intends to investigate Daniels' staff. Ryan turned over evidence to Fitzgerald that was obtained last week from Chicago elections lawyer Richard Means. A Fitzgerald spokesman refused to confirm or deny the existence of a probe into Daniels or his staff.
The Daniels allegations come as party candidates are trying to find shelter from the fallout of Gov. Ryan's corruption scandal. The governor's campaign fund faces racketeering charges for misusing state resources for political gain.
"To get Daniels the hell out shows that we really have moved beyond all this stuff, that we are going to run a campaign and ticket that won't tolerate this," said a source linked to one of Illinois' highest-ranking Republican officeholders. "If you leave him there, it's like a festering sore."
 
In a footnote to Thursday's developments, Ryan declined to say whether Lt. Gov. Corinne Wood also might be drawn into the federal probe. In addition to providing time sheets and vouchers involving Daniels' staff, Means gave Ryan a long memo written by a top Wood aide outlining how members of her staff worked exhaustively on various Republican legislative races in 2000.
Jim Ryan dodged when asked whether Wood's conduct was under review by either his office or by Fitzgerald. "I'm not going to get into all the nuances our offices are doing or other law enforcement agencies are doing," Ryan said. "It's not appropriate."
 

Feds spell out case against Fawell
 
June 28, 2002
BY TIM NOVAK AND STEVE WARMBIR STAFF REPORTERS
 
 

Gov. Ryan's campaign manager, Scott Fawell, used a screwdriver to pry off state identification tags from office equipment such as a refrigerator and a TV/VCR before they were taken to Ryan's campaign offices four years ago, federal prosecutors alleged in a document filed Thursday.
The document also gives new insight on how Ryan's campaign staff unsuccessfully tried to destroy computer disks containing memos written by Fawell, including one urging the dismantling of the inspector general's office to thwart "free-lance'' investigations of state employees doing political work for Ryan on state time.
The document shows how Ryan's campaign fund ripped off taxpayers by at least $1 million, said Assistant U.S. Attorney Patrick Collins. He's trying to persuade U.S. District Judge Rebecca Pallmeyer to freeze $1 million in Ryan's dwindling campaign fund, Citizens for Ryan, to ensure there is money to repay the state if the fund is found guilty of racketeering charges. Pallmeyer will hold a hearing July 16.
Ryan's campaign fund has hired attorney Thomas Breen to fight the government's efforts to freeze its funds. Pallmeyer booted the fund's original attorneys, Altheimer & Gray, because they once represented Fawell and potential witnesses. Altheimer & Gray told Pallmeyer it will appeal her ruling.
Fawell, who is charged in the racketeering scheme, is the focus of the new details. He was Ryan's chief of staff in the secretary of state's office and Ryan's campaign manager.
An unidentified co-worker warned Fawell he could be charged with ghost-payrolling for assigning state workers to work on Ryan's campaign on state time, the document says. Fawell allegedly responded that Ryan's campaign fund couldn't afford to pay the salaries of those workers.
Fawell also rewarded some campaign workers with state jobs and raises, the document says. After Ryan was elected governor, several unidentified campaign workers were rewarded with "hastily created'' jobs under Ryan in his final days as secretary of state. Most of those jobs were eliminated when Jesse White became secretary of state.
Fawell's attorney Edward Genson said, "He denies what they're saying.''
A memo Fawell wrote to Ryan in 1994 or 1995 suggested the inspector general's office needed "someone in there who won't screw our friends, won't ask about FR [fund-raising] tickets, and will run a no-nonsense shop.'' Another memo urged abolishing the office, which happened a few months later.
"It's unclear if this memo was ever sent,'' Ryan spokesman Dennis Culloton said. "The governor doesn't recollect seeing such a memo.''
Fawell, according to the document, rejected efforts to crack down on political activity because he feared secretary of state workers would have "another weapon to say no to [fund-raising] tickets.''
The document details the pressure that was applied to state workers to raise money for Ryan's campaign by selling fund-raising tickets, a system that led some employees to give unqualified driver's licenses to people who bought fund-raising tickets.
"In several years, after a successful employee-driven fund-raiser ... the largest ticket sellers were feted at a reception sponsored by Citizens for Ryan, with the ticket sellers taking home an autographed photo of then Secretary of State Ryan,'' the document says.
In another case, a low-level employee, John Spahn, who ran an election phone bank for Ryan in 1994, was later rewarded with a promotion and a 10 percent raise after his friend Larry Hall appealed to Fawell. Hall and Fawell were childhood friends. While he was working for the secretary of state, Spahn helped put drunken drivers back on the road. He was sentenced to prison for 10 months in March after he pleaded guilty to taking bribes from chronic drunken drivers.
Also Wednesday, federal officials dropped efforts to jail former state legislator Roger "The Hog'' Stanley until his trial on charges he paid kickbacks to get Metra contracts. Prosecutors feared that Stanley, a friend of Fawell, would flee to Costa Rica, but he agreed to surrender his title to a Bridgeview office building.

Ryan told to oust probers, U.S. says
Prosecutors cite aide's 1994 memo
 
By Andrew Zajac and Ray Gibson, Tribune staff reporters. Tribune staff reporters Diane Rado, Laurie Cohen, Todd Lighty, Ray Long and Rick Pearson contributed to this report
June 28, 2002
Gov. George Ryan's chief of staff prodded him "to clean house" and weed out internal investigators asking questions about his campaign's shady fundraising practices when he was secretary of state, federal prosecutors alleged Thursday.
In a court filing that provided fresh detail on the scope and the cost to taxpayers of alleged corruption during Ryan's tenure as secretary of state, prosecutors cited a December 1994 memo to Ryan from his chief of staff, Scott Fawell, that called for firing aggressive agents in the secretary of state's inspector general's office.
Fawell urged Ryan, who was considering a run for higher office, to get "someone in there who won't screw our friends, won't ask about [fundraising] tickets," the filing said.
"Someone tough has to go in there and get the investigators to no longer freelance as they see fit. Need to clean house in my opinion," Fawell wrote, according to prosecutors.
Weeks later, in a follow-up note to Ryan, Fawell wrote that a decision had been reached to fire a top agent and transfer two others who had been investigating the selling of fundraising tickets at driver's license facilities in Naperville, Libertyville and McCook, prosecutors said. Shortly afterward, the office was disbanded.
Ryan has adamantly insisted he did not learn of corruption brewing in his office until 1998, when federal prosecutors launched Operation Safe Road, the ongoing inquiry centered on his eight years as secretary of state.
"The governor doesn't recollect receiving the memo" or having any conversation about it, Ryan spokesman Dennis Culloton said Thursday.
Culloton noted government investigators have reported finding a computer disc during their inquiry, and he suggested the memo may have been retrieved from it. "We don't know this memo was sent," he said.
Federal authorities have filed their evidence under seal from public disclosure and would not comment on whether the memo was electronically stored.
Ryan has not been charged with wrongdoing. But recent indictments stemming from the federal investigation have reached into the governor's inner circle. The Citizens for Ryan campaign fund, Fawell, Ryan confidant Larry Warner, political consultant Roger Stanley and others are charged with a variety of corruption-related offenses. The charges range from using state workers to campaign on state time to accepting kickbacks in exchange for state contracts and selling low-digit license plates for campaign cash.
Ryan's handpicked inspector general, Dean Bauer, whose job was to root out corruption in the secretary of state's office, has been convicted of obstruction of justice for covering up evidence of wrongdoing.
ID tags allegedly removed
The latest filing by the federal government contends Fawell used state workers and state equipment to secure Ryan's 1994 re-election as secretary of state and his 1998 election as governor, and to assist Republican candidates for the Illinois House in the 1996 elections.
To show the alleged extent of the state property that was diverted to the campaign and the effort to cover it up, prosecutors said an eyewitness told them Fawell used a screwdriver to remove secretary of state identification tags from equipment being taken to the offices of Citizens for Ryan.
The memos were contained in a broader filing aimed at supporting the government's contention that $1 million in the Citizens for Ryan fund should remain frozen so that it can make restitution if the prosecution wins its case.
Prosecutors allege Fawell and other Citizens for Ryan operatives masterminded a series of schemes to hide political work on state time that cost taxpayers more than $1 million. The government said its tally was "conservative."
Attorneys for Fawell and Citizens for Ryan declined to comment.
The court filing marked the first time authorities have tried to put a price on the alleged wrongdoing, although they said the figure is likely to increase as the investigation continues.
Federal prosecutors tallied a cost to taxpayers of at least $311,000 in salaries for secretary of state employees allegedly working on campaigns on state time between 1994 and 1998.
According to federal authorities, 17 secretary of state employees were deployed to work on House Republican campaigns on state time. The employees were paid their regular state salaries and also shared an additional $100,000 in cash from Citizens for Ryan that was allegedly laundered through a company controlled by Stanley, a GOP insider, authorities said.
An additional $455,000 went for job promotions and pay raises to state employees as a reward for campaign work, most of that after Ryan was elected governor, authorities said. Diligent campaign workers received outsized raises, such as one staffer who coordinated a phone bank and got a 10 percent pay boost, nearly three times the expected increase for his state job classification, prosecutors said.
In addition, secretary of state supervisors used their public office to improperly solicit more than $250,000 in campaign contributions for Citizens for Ryan through a variety of methods, investigators said, including trading low-digit license plates for cash and a massive high-pressure program to sell fundraising tickets.
The campaign operation also helped itself to free use of state cell phones, computer equipment and technicians, parking spaces, paper, vehicles, toll passes, a TV-VCR, a refrigerator, an industrial shredder and other taxpayer resources worth more than $13,000, the filing said.
The court papers allege a driven, detail-obsessed campaign apparatus that created false time sheets and arranged for desktop computers to be turned on and off so it appeared employees on political errands had been at work.
To further the image that campaigning state workers were on the job, prosecutors said employees were instructed by Fawell to leave "their [SOS office] spaces `lived in.'" Their co-workers were instructed that "when any calls come in they should take a message--say the person is out at a meeting," authorities said.
Funds saved for ads, U.S. says
Fawell is portrayed by prosecutors as ruthless in his use of people and goods as campaign commodities and fixated on diverting state resources so that Ryan campaign money could be saved for expensive television ads closer to election time.
Fawell explicitly discouraged tracking of appropriated state goods and "repeatedly justified the diversions based on the need to save as much money as possible for paid media down the [1998] campaign stretch," the filing alleged.
When a secretary of state employee challenged Fawell that he might be subject to ghost-payrolling prosecution, Fawell responded that state employees diverted to Citizens for Ryan "had taken the risk and that, in any event, the campaign could not afford" to pay them full time, according to the filing.
Also on Thursday, the Chicago law firm Altheimer & Gray said it will appeal a judge's ruling earlier this month that disqualified it from representing Citizens for Ryan because of possible conflicts of interest. The firm has defended the campaign fund since it was indicted.
Chicago defense attorney Thomas Breen is representing Citizens for Ryan while the appeal is pending.
U.S. District Judge Rebecca Pallmeyer had ruled Altheimer & Gray could not defend Citizens for Ryan against federal racketeering charges because the firm also had once represented Fawell.

U.S. attorney to probe allegations against House Republican staffers
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
28 June 2002
Attorney General Jim Ryan said Thursday that the U.S. attorneys office not his own will "handle" accusations that some Illinois House Republican staffers improperly performed campaign work on state time two years ago.
The allegations surfaced in an article in the June 17 issue of Crains Chicago Business. While getting paid for their state jobs, members of House Republican Leader Lee Daniels Chicago staff made hundreds of trips to areas where tough House campaigns were being waged in 2000, the article said. It cited internal House Republican records.
During a Statehouse news conference Thursday, Ryan said officials from his office and the office of Patrick Fitzgerald, U.S. attorney for the Northern District of Illinois, met recently to talk about the issue.
"After discussing this, they have decided to open a file involving the House Republican matter and to handle the matter," said Ryan. "Our office will not be handling it."
Ryan, the GOP candidate for governor, repeatedly snubbed questions about whether that means the U.S. attorney has begun a criminal investigation into the allegations.
"Im not going to speak for the United States attorneys office," Ryan said.
Fitzgerald spokesman Randall Samborn said later that the U.S. attorneys office would have no comment on Ryans remarks.
"We neither confirm nor deny the existence of any investigation," Samborn said.
Ryan spokesman Dan Curry said later that "opening a file translates into opening an investigation."
Ryans Democratic opponent for governor, Rod Blagojevich, said the attorney general should appoint an independent prosecutor to look into the allegations involving House Republican staffers.
In a news release, Blagojevich said Ryan "cannot be entrusted with a probe of Lee Daniels political operation" because the mens political ties are too strong.
Blagojevich spokesman Doug Scofield accused Ryan of failing to act.
"Once again, were in limbo where the states chief law enforcement officer has passed the buck and again not taken any responsibility on his own to investigate alleged state corruption," Scofield said.
Ryan said when officials from his and Fitzgeralds offices met, they discussed the possibility of a conflict of interest if the attorney general were to investigate the allegations of wrongdoing by House Republican staffers.
Ryan said the concerns about possible conflict of interest center on two areas: One of the staffers named in the Crains article, Jerry Clarke, worked on Ryans primary campaign this year. In addition, Daniels serves as chairman of the state Republican Party, and Ryan is the partys candidate for governor.
Ryan deflected a question about whether he thinks Daniels should step down as leader of the state party, saying only that he might have more to say on that subject later.
A spokesman for Daniels couldnt be reached Thursday. But Daniels previously has said he knew of no wrongdoing.
Ryan called the Thursday news conference to discuss a federal appeals courts ruling that the Pledge of Allegiance is unconstitutional because of the words "under God."
The 9th U.S. Circuit Court of Appeals, which is based in California and covers nine Western states, issued that decision Wednesday.
But the decision wont stop the practice of requiring Illinois schoolchildren to recite the pledge every day.
Illinois law is guided by a 1992 decision from the 7th U.S. Circuit Court of Appeals, which ruled that the Pledge of Allegiance is constitutional, Ryan said. Still, the Wednesday court ruling could inspire legal challenges in Illinois, he said.
If that happens, Ryan said he would "vigorously defend" state law requiring the pledge to be recited in elementary schools. Pending legislation would require high school students to recite the pledge, too.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 


Feds 'open a file' on Daniels' staff

BY CHRISTOPHER WILLS
ASSOCIATED PRESS
June 27, 2002


Attorney General Jim Ryan said Thursday that federal prosecutors, rather than his office, will handle allegations that employees for the top Illinois House Republican did campaign work on state time.

Ryan said the U.S. attorney's office in Chicago had decided to "open a file" on the actions of House Minority Leader Lee Daniels' staff. He refused to say whether that means federal prosecutors have started an official investigation.

Ryan spokesman Jerry Owens later said: "It's akin to opening an investigation. That's what it is."

Randall Samborn, spokesman for U.S. Attorney Patrick Fitzgerald, said he could not comment.

Ryan is the Republican nominee for governor, and Daniels is the state Republican chairman. Some campaign aides have worked for both men over the years.

Ryan said the appearance of a conflict of interest between his role as a candidate and his job as attorney general was one factor in the decision to have the U.S. attorney handle the matter.

Daniels, R-Elmhurst, has denied any wrongdoing. He asked Ryan to investigate his office and the possibility that his staff might have been doing political work and falsifying documents.

Spokesman Gregg Durham said Daniels has no objection to the U.S. attorney handling the matter. "If the U.S. attorney's office does eventually decide to investigate, we will cooperate with them fully," Durham said.

He said Daniels has not been contacted in any way by federal prosecutors looking into this issue.

Fitzgerald already is investigating whether Republican George Ryan, now the governor, used state employees and resources for political purposes when he was secretary of state.

Jim Ryan would not comment on whether Daniels should step down as chairman of the Illinois Republican Party. He said he may have more to say about that later.

The allegations involve the state employees Daniels controls as House minority leader.

These employees usually work in Springfield and Chicago and are supposed to do legislative work, not political. But they made hundreds of visits to politically vital legislative districts during the spring and summer of 2000.

State expense reports might show them in one district, while internal House documents showed them in a nearby area where a Republican challenger faced a tough race.

Billy Weinberg, a spokesman for Democratic gubernatorial candidate Rod Blagojevich, criticized Jim Ryan for simply forwarding the allegations to federal investigators. He said Ryan should appoint an independent prosecutor rather than making "the attorney general's office nothing more than a glorified mail room."


 

Memo urged Ryan to fire investigators
 
BY MIKE ROBINSON
ASSOCIATED PRESS
June 27, 2002

Federal prosecutors said in court papers filed Thursday that Gov. George Ryan's former chief of staff wrote a memo in 1995 urging Ryan to fire investigators who asked questions about campaign fund-raising in the secretary of state's office.
Nothing in the court papers indicated that Ryan, who was then secretary of state, had received the memo or a follow-up memo from Scott Fawell. Federal prosecutors have charged that Fawell, who also served as Ryan's campaign manager, secretly used state employees and money to help elect Ryan and other Republicans.
"There's been an investigation that has been ongoing for the last four and a half years, and everything is involved in the courts," Ryan told The Associated Press.
"Whatever answers you want to those questions you'll have to get from the people who put out the release. I have no comment about any of it."
Ryan spokesman Dennis Culloton said it was unclear whether the memos were actually sent.
Ryan "would not have agreed with the tenor of that memo," Culloton said. "He never recollects seeing such a memo or having such a discussion with Scott or anyone else."
The governor has repeatedly denied any knowledge of corruption in the secretary of state's office and has not been charged with any wrongdoing.
Asked if Ryan had seen the memos, Randall Samborn, a spokesman for the U.S. attorney's office, said: "I can't say anything beyond what it says right there in front of you."
According to the court papers, the memos focused on "a future run for higher political office" by Ryan, who was elected governor in 1998. The first memo came in December 1994 and an "update" addressed to Ryan followed a month later.
In one memo, Fawell wrote that it was necessary to shake up the internal inspector general's office and get "someone in there who won't screw our friends, won't ask about FR (fund-raising)."
Within a month after the second memo was written, the coordinator of the internal investigation into possible fund-raising improprieties at the Libertyville drivers license center was fired, the papers said. The papers also said that three months later, the inspector general's office was dismantled, leaving an inspector general but no agents.
The memos were among several allegedly written by Fawell that prosecutors said they probably will put in evidence if Fawell goes to trial on federal racketeering charges.
A 1998 memo told state employees to give a "lived-in" look to the workplaces of co-workers doing campaign jobs for Ryan on taxpayers' time. Computers at their workplaces were then turned on and off during the day to camouflage the fact that no one was there, the court papers said.
Fawell and Citizens for Ryan, the governor's campaign committee, are charged with racketeering for secretly using state employees and money for political work and other political corruption when Ryan was secretary of state from 1991 to 1999. The
The charges were an outgrowth of the federal government's four-year Operation Safe Road investigation, which began with disclosures that bribes were paid in exchange for Illinois drivers licenses. Recently, it has focused on other corruption when Ryan was secretary of state. More than 40 people have been convicted so far.
The court papers were filed in a battle with Citizens for Ryan attorneys over how much money from the remaining $1.5 million in the campaign fund should be set aside for restitution if the campaign committee is convicted.
Prosecutors say nothing less than $1 million will suffice. Citizens for Ryan attorneys say $200,000 would be an ample amount.

Foes point fingers over Sheridan closing
 
By SCOTT REEDER
Springfield Bureau Chief
27 Jun 2002
 
SPRINGFIELD The lights are going out at Sheridan Correctional Center and the finger pointing has begun.
The sprawling facility, which employs 500 and incarcerates 1,600, is slated to close this year as part of overall budget cuts across the state.
Perhaps not surprisingly, candidates challenging Rep. Frank Mautino and Sen. Patrick Welch say the two Democratic incumbents didnt do enough to protect the prison.
The pair of veteran lawmakers are quick to blame Gov. George Ryan and the Republican-controlled Senate, which declined to override the governors vetoes, for closing the facility.
The finger pointing is an all-but-inevitable outcome of state budget cuts, said Kent Redfield, a political science professor at the University of Illinois at Springfield.
On some things like abortion or gun control it is simply sufficient for a legislator to have positions. But on other things, like protecting facilities in the district, voters really expect legislators to bring home the bacon. They expect them to protect jobs in the district, he said.
And theres the rub.
Redfield said it is far more likely that the Sheridan closure is the result of a feud between Ryan and the American Federation of State, County and Municipal Employees, the largest state-employee union, than a reflection of the perceived lack of clout of the areas legislative delegation.
That said, Redfield added it is all but inevitable that the prison closings will be used against incumbents.
Is it fair? Well, fair is an interesting word in politics. I think you can expect it will be a campaign issue, he said.
Spencer McDonald, the Republican challenger to Mautino, already has raised the issue.
Frank is quick to talk about the clout and the influence that he has. ... And yet, all of the power and clout that he claims to have was ineffective and useless when it came to keeping Sheridan open, McDonald said.

Advisor to Ill. Gov. Pleads Guilty
 
By MIKE ROBINSON .
27 Jun 2002
 The Associated Press
CHICAGO (AP) - A political adviser to Gov. George Ryan pleaded guilty Wednesday to laundering money and taking kickbacks in a tax-fraud conspiracy.
Donald A. Udstuen, 58, a seasoned lobbyist, admitted using a friend's company to launder thousands of dollars in kickbacks paid to another lobbyist to fix contracts when Ryan was secretary of state.
Udstuen also admitted taking thousands of dollars in payoffs to fix contracts at Metra, the Chicago-area commuter rail service where he was a board member. Udstuen, who is cooperating in the federal investigation, is not charged with the Metra kickbacks.
In his plea agreement, which calls for a sentence of up to 16 months, Udstuen said lobbyist Larry Warner told him that he was paying some kickback money to a public official. Both Udstuen and federal prosecutors have refused to disclose the official's name.
Udstuen, a former lobbyist for the Illinois State Medical Society, said he was sorry for his conduct and walked away without answering reporters' questions. His lawyer, David Stetler, said his client is cooperating with the government's investigation of corruption under Ryan.
The governor has not been charged with any wrongdoing in the four-year investigation into an alleged licenses-for-bribes scheme. His campaign committee is charged with racketeering, and prosecutors say $170,000 in bribes was in his campaign fund.

Sheridan workers ponder life after prison's closing
 
 
By MYKE FEINMAN
 Marseilles Bureau Chief
June 26, 2002
 
SPRING VALLEY When the Sheridan Correctional Center closes, Fernando Fernandez, a correctional officer, could lose more than just his job.
In a financial crisis due to a sluggish economy, the state estimates an annual savings of $28.5 million by closing the prison. However, it would also displace the 500 employees at the prison and create an economic hardship on the village of Sheridan.
Fernandez wife, Katrina, 28, has been diagnosed with liver cancer. His job at the prison also supports their three children.
Fernandez said the cancer is not the only health problem his wife is battling.
She has diabetes, chronic asthma, and now depression because of the cancer, allergies and what-not, Fernandez said.
Its just hard to think Im going to lose this job over the closure. Not about the job, its about the (health) insurance I would be losing.
Fernandez son, Victor, 10, has mental and physical disabilities.
As far as Fernandez knows, the state is not offering any alternative positions for the workers at Sheridan.
There might be an option of jobs at other prisons, Fernandez speculated. For me living in Spring Valley, I have a 45-minute drive to Sheridan. A job at another institution, like Pontiac, would be a further drive. Joliet is even further.
The Fernandez family rents, but moving means changing doctors for his wife and son.
It would be possible to move, but we cant just up and leave because of my wifes illnesses, Fernandez said. And my sons doctor in Ottawa we just found a great doctor and I dont want to lose him.
In some families, Sheridans closing will cost both breadwinners their income.
Joe and Sheila Kennedy of Serena both work at Sheridan: Joe as a correctional officer and Sheila as a counselor.
Their daughter, Heather, lives at home. Two of Joes sons, Nick and Adam, live with Joes first wife in Mendota.
We would have no income if we both get laid off, Kennedy said. My oldest son is in college. My daughter is going to college in the fall. I pay $500 in child support, so it would affect the boys too.
He said closings like this hurt the people, not the state.
 

Jim Ryan to pass up Daniels' gala
 
By Greg Hinz
June 26, 2002
 
Saying it would be "inappropriate" to attend, the GOP candidate for governor is stiffing the partys $1,000-a-plate fundraiser in Chicago Wednesday night. In a statement released through an aide, Attorney General Jim Ryan said he would not be able to go to tonights victory gala being thrown by Republican party Chairman Lee Daniels because he is probing possible misconduct in Mr. Daniels office.
Because a review is pending, the statement said, Jim Ryan believes that, in his capacity as attorney general, it would create an inappropriate appearance if he attended tonights function.
Mr. Ryan began the review after Crains reported that state staffers for Mr. Daniels, who also is the Illinois House Republican leader, spent much of the summer of 2000 in and near House districts with hotly contested election races (Crain's, June 17).
Mr. Ryan specifically is reviewing whether workers were assigned political chores on taxpayer time, and whether they were improperly reimbursed for travel expenses to political jobs.
The matter also is being reviewed by U.S. Attorney Patrick Fitzgeralds office, with a decision expected soon as to whether a full investigation should be opened and, if so, which office should conduct it.
The fundraiser is set for 5:30 to 8:30 p.m. at the Lyric Opera building at 20 N. Wacker Drive. The events keynote speaker was to have been Bush Cabinet member Anthony Principi, secretary of the Department of Veterans Affairs. Citing a scheduling conflict, he cancelled earlier in the week, but WBBM-TV/ Channel 2 reported that the White House is worried about tarnish from the growing cloud around Mr. Daniels.
Mr. Daniels spokesman was not available for comment.
 

GOVERNOR SIGNS LAW FOR EARLY RETIREMENT
 
BY RICHARD GOLDSTEIN
SPRINGFIELD BUREAU
Tue Jun 25 2002
SPRINGFIELD -- Gov. George Ryan signed early retirement incentive legislation into law Tuesday, calling it a key element in a balanced budget.
The new law allows state workers to buy up to five years of age and five years of service to retire with fatter pensions than they otherwise could. More than 7,000 state employees are expected to retire and about half of those positions will be left unfilled as part of the state's budget cutting exercise.
"Creating this opportunity for early retirement was just one of the components that helped us put together a balanced budget for fiscal year 2003," Ryan said in a written statement. "We estimate that in the next fiscal year alone this provision could save . . . approxi mately $64.5 million."
Ryan signed the measure in Chicago.
But even the measure's sponsor, state Rep. Raymond Poe, R- Springfield, has acknowledged that the cost to the state retirement system is estimated at $543 million in the long run.
The window for retirement extends from Aug. 1 to Dec. 31. If employees are considered especially important they could be asked to stay several months longer before retiring.
The measure was an effort to balance the state budget and reduce the number of layoffs necessary as state tax revenues have fallen compared with the year before.
"This new law is an excellent opportunity for state employees and it could reduce the number of potential layoffs," State Sen. David S. Luechtefeld, R- Okawville, said in a written statement issued Tuesday.
The new law prohibits state employees from being hired back on a contractual basis by the state. Lawmakers said during debate on the measure that the ban on rehiring prevents people from taking advantage of the incentives and being rehired as consultants. During 1991 many people took advantage of an early retirement plan to draw pensions and simultaneously returned to work for the state.
The law has no effect on university employees.
 

Office politics a fraud
 
Rich Miller
Capitol Fax
24 June 2002
 
Crain's Chicago Business has reported that during the summer of 2000, just about everyone at House Republican Leader Lee Daniels' Chicago office was allegedly paid with state money to work on political campaigns. The magazine also documented that several staffers were apparently reimbursed by taxpayers for campaign travel expenses.
This would be illegal, of course. So, I picked up the phone and started calling people who once worked for Daniels. I convinced six to talk.
Their stories were almost identical, and the picture they all painted was ugly. If they are to be believed, and I believe them, then somebody needs to go to jail.
Every one of my sources fears retaliation, even though they no longer work for Daniels. "They put the fear of God in you if you said anything," said one former House GOP staffer. Another likened the job to working for the Mafia.
And most said they were told staff would be blamed if things ever got rough. Sure enough, a few days ago Daniels said he didn't know anything about the allegations and would cooperate with an investigation of staff wrongdoing.
* The Chicago Office - A November, 2001, memo from one of Daniels' top political people pretty much sums up the problems at Daniels' Chicago office - a completely state funded operation.
The memo was sent to then-state Republican Party Chairman Rich Williamson and referred to efforts to fill a vacant GOP state central committee slot. Williamson is advised to call the staffer at Daniels' state office in Chicago.
"The point of the (Chicago) office was to run political campaigns," said one source. "They'd have political meetings there. They used the state computers to print out (precinct) walk sheets."
Another former staffer said election programs were installed on the office's computers.
"They said, 'Here's the campaign you're gonna be working on,' and they send you out and they pay you the way they want to." said one source.
Another source claimed he was "under orders to run a campaign on state time."
* Comp Time - A couple of months ago, I told you that the House Republican state payroll actually increased during the last two months of the 2000 election, while all the other legislative staff payrolls shrank. Part of their excuse was that the staffers were reimbursed for "comp time" - days off in lieu of overtime pay - while they worked campaigns.
Yet all but one of the former staffers (and he left years ago) said comp time at the Chicago office is a fraud.
"I was on staff just two weeks and they gave me ten days' comp time," claimed one former staffer, who said he worked no overtime in those two weeks.
Every source who worked in the Chicago office said, as far as they could tell, overtime was never even tracked. The chief of staff would send them a memo telling them how much comp time they had.
"Comp time would just appear and you'd use it," said another source.
"They'd say, 'We need you to do campaign work for seven days, so we'll give you the comp days to pay for it," explained one.
"There's no overtime at that (Chicago) office," said a different source.
* Vouchers - "I was in a situation where (the campaign) screwed me out of money, so they told me to file vouchers," claims one former staff member.
The staffer had run up several bills that the Daniels campaign fund refused to pay. But the low-paid worker needed the cash, so he was advised to "just say you were gone a little bit longer," on some travel and let the state pick up the tab through travel reimbursements.
"Because they paid you so (poorly), you needed that travel money," said another source, who said they were regularly paid with state money for campaign travel.
"I was asked repeatedly to voucher," for campaign expenses, claimed another source, who said he "put up a fight about it" on a "regular basis."
"Their counter was, 'Calm down, don't worry about it, this is the way things are done, but there's no way you're going to get paid (from the campaign account),'" the source said.
Another former staff member said he also didn't voucher and was under no pressure, but claimed his superiors "would sign anything."
Every former staffer I talked to understood that what they did was against the law. I asked one if that bothered him. "It was my job," he said. "I wanted to run campaigns. I just thought that's the way it was. It's the state of Illinois. It's Chicago."
 
Rich Miller also publishes Capitol Fax, a daily political newsletter. He can be reached at www.capitolfax.com

Ryan: State to borrow $1 billion to pay bills
 
June 24, 2002
BY ASSOCIATED PRESS
ARLINGTON HEIGHTS -- Illinois will borrow $1 billion to help pay its bills, some of which are two to three months past due, Gov. George Ryan said Monday.
Ryan said he expects a program to be in place by the end of this week. He met Friday with Comptroller Dan Hynes and Treasurer Judy Baar Topinka to discuss the program.
The short-term borrowing will not need legislative approval.
"We're doing our best," Ryan said after accepting an award from the Maryville Academy. "We're going to borrow the money and get the bills paid as quickly as we can."
Ryan says $15 million was included in the new state budget to pay interest on the borrowing. Once a program is in place, it will take three weeks to a month to get the loans, he said.
Ryan said the borrowing probably will not help government and social service agencies whose funding in the next state budget has been drastically cut.
"We just didn't have the money and we had to make the cuts where we made them," the governor said. "I think they were pretty evenly spread across the board.
"If the revenues pick up and the state becomes a little more prosperous than it's been in the last few months, we can restore some of these things. But now, we just can't do it," Ryan said.
 

Voters are 'victims' of a lot of heat and very little light
 
By DANA HEUPEL
STATEHOUSE EDITOR
24 June 2002

This is the tale of a non-story. It barely bears telling, except that it serves to illustrate the disappointing level of discourse in Illinois political campaigns.
It begins on Friday, June 14, at the Crowne Plaza hotel. U.S. Rep. Rod Blagojevich, the Democratic candidate for governor, is speaking to a group of consulting engineers. Several news organizations, including this one, send reporters.
Talking without prepared remarks, Blagojevich hops from subject to subject with few bridges between. Much of it is his standard campaign speech, so reporters aren't taping it, but they are casually taking notes.
At one point, he says something that does perk up their ears.
Dean Olsen, a reporter for The State Journal-Register and other Copley newspapers, writes in his notebook that Blagojevich says Gov. George Ryan "is a victim of the way business is done in Springfield."
A little background here: The Blagojevich campaign has plastered the airwaves with television ads trying to link Attorney General Jim Ryan, the Republican candidate for governor, to lame-duck Republican Gov. Ryan - no relation - who is embroiled in the licenses-for-bribes scandal. One of Blagojevich's ads shows the two Ryans on a split screen, side by side. Naturally, Jim Ryan's camp isn't happy about this.
Blagojevich finishes his speech, and Olsen learns that reporters will have to wait more than an hour to talk at length to the candidate. Olsen has another story to write, so he consults with his editor - me - about whether he should wait. He says Blagojevich did mention that he hopes to expand Gov. Ryan's $12 billion Illinois FIRST construction program. We decide he should come back to the office and write that.
When he gets back, Olsen reviews his notes. The context of the "victim" quote is unclear. Blagojevich sandwiched it between comments about ethics in government and problems with the state budget. It takes on entirely different meanings, depending on the reference. Olsen decides not to use it.
Out of fairness, Olsen calls the Jim Ryan campaign for response to Blagojevich's Illinois FIRST comments. In going over his notes with a Ryan aide, Olsen mentions the "victim" quote in passing. Because the quote could make Blagojevich look soft on Gov. Ryan, despite the negative TV ads, the aide urges Olsen to use it. Olsen and I discuss it and decide not to because of the unclear context.
Soon after, another Ryan aide calls, also urging Olsen to use the quote. Olsen tells him he probably won't. He writes the story focusing on Blagojevich's Illinois FIRST comments.
Before long, several other reporters show up in our Capitol office. The Ryan people are shopping the story to news organizations that didn't cover the speech. It turns out that another reporter at the speech had waited an hour and a half afterward for Blagojevich and had asked him about the "victim" comment.
Blagojevich's response: "Governor Ryan is part of a system that has been in place and has grown over the last 25 years. The governors come and go, but the same people are a part of a bureaucracy that becomes a force in itself. And some of the budget difficulties the governor has found himself in ... (are) a result of this sort of growing bureaucracy."
Not much help there. Nobody reports the "victim" quote in that day's stories.
Flip the calendar forward four days, to Tuesday. Blagojevich is holding a news conference in Chicago to challenge Jim Ryan to debates. Reporters, apparently after calls from Ryan's staff, ask him about the "victim" comment.
Blagojevich responds: "No, I didn't say he was victim. I think that was a misquote. I can't remember what I said, but I can't imagine saying 'victim.'"
In a news conference soon after, Jim Ryan says he's happy to debate Blagojevich. But he also blasts the Democrat for linking him to the scandal-plagued governor in ads, then calling George Ryan a "victim," and then being evasive about it.
The Chicago Tribune writes a story focusing on the "victim" exchange. Copley Chicago reporter Mike Ramsey and I decide he will key his story on the debates and only mention the exchange at the end. The Chicago Sun-Times also takes that tack.
The next day, in Springfield, Jim Ryan's running mate, state Sen. Carl Hawkinson, calls a news conference to again rehash the "victim" remark. Several news organizations show up, but no print reporters bite on running another story.
It's taken awhile to get here, but here's the point:
The two campaigns spent the better part of a week fighting over what was, at best, a slip of the tongue by Blagojevich. To counter Blagojevich's questionable ads, which not only try to tie Jim Ryan to George but also blame the attorney general for the state's sour economy, Jim Ryan's people knocked on nearly every media door in Springfield and Chicago to try to get the "victim" quote published. Then Blagojevich denied saying it, even though it's clear that he did. He then backed off some, saying he doesn't recall using the v-word, and it's certainly not what he meant.
Well, duh. Nobody truly believes that Blagojevich thinks George Ryan is a victim. And if he does, who really cares? What does that have to do with anything important?
The political operatives will smile that sly smile and tell you, "Negative works." that's the way the campaign's heading, and it's only June.
It looks as if we're in for a long political summer. With a lot of heat. And, as they say, very little light.
Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.
 

Ryan may bail on probe
 
June 22, 2002
BY DAVE MCKINNEY SUN-TIMES SPRINGFIELD BUREAU
 
SPRINGFIELD--A day after promising to review possible wrongdoing by state GOP Chairman Lee Daniels' staff, Attorney General Jim Ryan indicated Friday a possible conflict of interest may block him from investigating whether Daniels' office misused more than $16,000 in state funds for political campaigning.
Ryan, the Republican nominee for governor, said he has not decided whether to investigate the case or turn it over to federal prosecutors or someone else.
The politically charged case against Daniels, the Illinois House minority leader, revolves around whether almost all of the state workers in his Chicago office devoted much of their time, while on the clock, working on the 2000 campaigns of several House Republicans facing challengers.
State vouchers and time sheets for those employees, which purport to show more than $16,000 in improper state reimbursements to Daniels' staffers, are in the hands of the Republican attorney general.
The possible conflicts facing Ryan center on the attorney general's close political ties to Daniels. They share the same campaign treasurer. Daniels was an early endorser of Ryan's gubernatorial ambitions. And perhaps most significantly, some of the vouchers in question were signed by Jerry Clarke, formerly a top Daniels aide who managed Ryan's springtime gubernatorial campaign. Clarke now is on leave from Ryan's camp.
"The issue of conflict is something we're talking about," Ryan spokesman Dan Curry said. "If we determine there is some conflict, we'll take what steps are necessary to deal with it."
Meanwhile Friday, in a potentially explosive charge, Daniels told a closed-door meeting of top Republicans in Springfield that some of the documents in Ryan's hands may have been stolen or altered.
The material Ryan is reviewing came from Chicago elections attorney Richard Means. He obtained expense vouchers from Daniels' office through a Freedom of Information Act request in 2000. Means said he later obtained time sheets for many of Daniels' staffers through a whistleblower familiar with Daniels' campaign operation. Daniels refused to release time sheets to Means earlier.
"We're not ruling out the possibility that someone stole them. Absolutely," Daniels' spokesman Gregg Durham said late Friday.
Also during the closed-door session with members of the state Republican Central Committee, Daniels had DuPage County lawyer Terry Ekl offer a legal opinion that the alleged actions of his partisan staff might not have broken any state laws. Ekl, a top adviser to Republican attorney general candidate Joe Birkett, is one of Daniels' top legal minds.
"That suggests to me all the stuff is true, and they're trying to figure out a way to say it's OK," said one committee member who did not want to be named.
Speaking later to reporters, Daniels pledged his full cooperation with Ryan, said he did not think any crimes had been committed and vowed to take responsibility for the actions of his staff. "I want to make it clear, at no time will we tolerate any improper behavior. That's been my mark during the 20 years I've been leader," said Daniels, who has been the House Republican leader since 1983.
Clarke, who is a member of the state party's central committee, denied wrongdoing while talking to reporters after the party meeting broke up at a Springfield social club.
"This all comes out by an anonymous source, and then they show it to you guys. I haven't seen any of this. I don't know what they're talking about," Clarke said as he strode out of Springfield's Sangamo Club.
The intertwined political threads between Daniels and Ryan prompted Democratic gubernatorial nominee Rod Blagojevich and even some of Ryan's own followers to call on the attorney general to turn the matter over to someone else to investigate.
"If I was in his shoes, I'd probably appoint a special counsel . . . to insulate himself from any appearance of personal relationships," said Rep. Angelo "Skip" Saviano (R-Elmwood Park), a state central committeeman.
Blagojevich's spokesman Doug Scofield said, "Under no circumstances is Jim Ryan the person at this point who can be trusted to investigate this thoroughly."
Ryan, when asked whether he felt like he was in a "hotbox," denied that he feels any political pressure from the case.
"I don't know what you mean by that. My job as attorney general is to, among other things, investigate crime, and we often confer with other law enforcement agencies before we make a judgment about exactly how we're going to proceed. And that's what we're doing in this case like we do in every case," Ryan said.

AFSCME suit advances; judge will hear anti-privatization arguments
 
June 21, 2002
Peterson's action leaves in effect the Preliminary Injunction he previously issued, which prohibits the state from entering into a contract for dietary services.
The court has set August 27 and 28 for hearing AFSCME's request for a Permanent Injunction against privatization based upon the union's contention that the Illinois Private Correctional Facilities Moratorium Act prohibits such sub-contracting.

Daniels staffers are targeted in probe GOP chairman vows cooperation
 
By Rick Pearson
Tribune political reporter
June 21, 2002
 
Illinois Atty. Gen. Jim Ryan has launched a review into allegations that staff members for House Republican leader Lee Daniels conducted campaign activity on state time during the 2000 legislative race. Aides said Thursday that Ryan is conferring with U.S. Atty. Patrick Fitzgerald.
The review creates the unusual situation in which Ryan, a Republican candidate for governor, is looking into campaign activities conducted on behalf of Daniels, an Elmhurst lawmaker who is state Republican chairman.
Daniels said he spoke to Ryan on Wednesday about the allegations and urged him "to investigate the matter as he sees fit." Daniels said he pledged his "absolute cooperation" and instructed his own attorney to conduct an inquiry.
"I have no knowledge that anyone whatsoever from any staff conducted business improperly," Daniels said. "But I need to make sure these allegations are dealt with and, if there were any improper actions, people need to face up to them."
Under review are documents first disclosed by Crain's Chicago Business that suggest some Daniels' legislative staffers may have received state compensation for their time, travel and expenses while assisting the campaigns of House Republican candidates in the 2000 legislative elections.
Aides to the attorney general said they have been reviewing the information since it was published. Dan Curry, a spokesman for Ryan, called the actions a preliminary review and said Ryan has been in contact with the U.S. attorney's office about the allegations.
The review is another potential setback for a Republican Party that has been reeling from the fallout of the federal Operation Safe Road investigation that originally targeted licenses exchanged for bribes during Gov. George Ryan's tenure as secretary of state.
Top Republican officials, fearful of a Democratic sweep in November, will meet Friday in Springfield to vent their concerns that the GOP lacks an effective strategy for federal and state campaigns, which have been overshadowed by a scandal-tarnished governor.
"Anybody who is paying attention right now knows that if we keep doing what we're doing, it's going to be a slaughter on Election Day," said Steve Meyer of Oak Park, one of five members of the Republican State Central Committee who called for the unusual summer meeting.
"We're just looking at our party--our family--and saying, `Are we doing what we need to do to win Nov. 5?'" Meyer said Thursday.
Meyer said he used a sharply worded memo to members of the committee to spur conversation about the party's leadership and staff, its communication with members and revitalization of the Cook County GOP.
"There is no sense of urgency from the [state] chairman or executive director," he wrote. "From my observation, the operation is being run like a bridge club. This needs to be addressed immediately."
 

LEGISLATORS NEED TO FIND COURAGE AGAINST BUDGET
 
Decatur Herald & Review
 Jun 19 2002
 
In the end, Illinois legislators surrendered their prerogatives to shape the financial future of the state to their leaders and Gov. George H. Ryan. Confronted with a massive deficit of more than $1 billion, legislators took the easy way out, allowing the governor to reshape the budget as he sees fit.
Legislators showed few "profiles in courage" as they voted for a budget calling for spending more than a half billion dollars than the state expects to take in. Other than a tax on cigarettes and casino gambling, they were unwilling to raise revenue from general taxes to fund their reckless spending. They'll blame the governor for doing his duty.
Ryan called their bluff by vetoing more than $500 million in spending, of which roughly $50 million was restored to the schools. Whether Illinois now has a balanced budget is another of those mysteries of definition, sort of like Bill Clinton's problem with the word "is."
"It was a balanced budget last week," said House Minority Leader Lee Daniels, R-Elmhurst. "It was a balanced budget when we came here. It's a balanced budget today. It's all a matter of definition."
The defining notion is the authorization for the state to issue $750 million in revenue bonds with the backing of money the state will receive over the next quarter of a century from the tobacco settlement. In interest payments this will cost the state more than $1 billion to repay the bonds, which amounts to some very expensive rent. More pain is expected in the event Ryan finds the deficit worse.
Legislators ducked the tough questions this session because of elections looming in November, a biennial exercise in political cowardice. Our hope for next year is that a new administration will come to office brimming with ideas to change state government. We are near the same point as in the late 1960s when the administration of the late Richard B. Ogilvie confronted a nearly bankrupt government.
Rather than worry over political favor, Ogilvie turned government on its head, wringing the income tax from reluctant legislators and restructured and modernized state government to meet the demands of modern times. True, voters turned him out of office after one term in 1972. Now his administration is regarded as the most important of the 20th century in Illinois.
Reform is especially needed to get rank-and-file legislators more involved in crafting the state budget. Putting major decisions off to near the end of the session and leaving them largely to the legislature's leaders and governor led us into our current mess. Reform will happen only if legislators assert themselves and the public asserts itself at the polls.
This next year will be critical because the following year there is another election -- which, like it or not, paves the way for more ready-made excuses. It should be clearer than ever that Illinois legislators can't afford to follow the same path they have continued to travel over the past few years.

Ryan attorneys offer $1 mil.
 
June 19, 2002
BY STEVE WARMBIR
FEDERAL COURTS REPORTER

Attorneys for Gov. Ryan volunteered Tuesday to deposit $1 million from his campaign fund with the courts, as federal prosecutors demanded the money be frozen so the state can eventually be paid back for alleged fraud.
The move by Ryan's campaign fund came during an often rancorous 90-minute court hearing.
Assistant U.S. Attorney Patrick Collins argued that $1 million needed to be effectively frozen to compensate the state for the alleged corruption under Ryan before the fund is drained through legal bills.
The governor's campaign fund and his former top campaign aide, Scott Fawell, have been charged in a wide-ranging indictment alleging that state employees did political work for Ryan and his allies while being paid public money.
Another Ryan campaign aide, Richard Juliano, has pleaded guilty to his role in the scheme. Ryan himself has not been charged with any crime.
The issue of preserving $1 million in the campaign fund is a key one. If convicted, the fund--an entity and not a person--can't be sent to prison.
So the recourse prosecutors have against the fund is to seize its money.
Altheimer & Gray attorney Mark Flessner, representing the governor, initially balked at the request to set aside $1 million.
The fund has already set aside $200,000 for compensation, which is more than double the amount of fraud that defense attorneys believe prosecutors could prove, at best.
The defense attorneys also argue that there's not enough money to continue to defend the campaign fund at trial if the $1 million is out of reach.
For now, the fund has about $1.5 million but Altheimer & Gray expects bills to come due soon for $130,000.
U.S. District Judge Rebecca Pallmeyer expressed skepticism that an attorney couldn't be hired to represent it well with the remaining money in the fund.
Altheimer & Gray won't be representing the fund at trial because of possible serious conflicts, the judge has decided, a decision that was a blow to Ryan. Altheimer & Gray has represented the campaign fund for several years and has an intimate knowledge of the government's corruption case.
It's not clear that the $1 million will be permanently out of the campaign coffers.
Pallmeyer expects to let attorneys present their cases in front of her next week on whether the government has the right to seize the money permanently before trial.
The move by the governor's lawyers to voluntarily deposit the money until the court appearance next week preempted the judge from entering a temporary restraining order against the fund.
 
 

Comptroller releases $6.7 million for pet projects
Money is in fund to finance 'member initiatives' around state
 
June 18, 2002
By DOUG FINKE of Copley News Service

SPRINGFIELD - Money for lawmakers' pet projects is flowing once again, two months after state Comptroller Dan Hynes froze it because of the state's budget crisis.
Hynes has released $6.7 million that will pay for 170 projects scattered throughout the state. Hynes' action will eliminate the project backlog created when he froze those payments in April.
"It is with deep regret that we release the money," said Hynes spokeswoman Karen Craven. "When Comptroller Hynes froze (the money) in April, he did it to provide lawmakers another option in plugging the budget hole. Based on the budget that passed, that money won't be used to plug the budget hole."
All of the money Hynes released is in the Fund For Illinois' Future, which was created to finance "member initiatives," projects lawmakers could shower on their districts. The money was set aside before the current budget crisis hit the state.
However, not all of the money was spent when Hynes decided to freeze payments in April to give lawmakers another option to deal with the state's budget crisis. Hynes' office said about $117 million was left in the fund that hadn't been spent. He argued the money could be redirected to other state spending, such as education or human services, if lawmakers chose. But when legislators finished crafting the budget, they opted to raise taxes and cut other state spending rather than dip into the pet project fund.
"He views restoration of member initiatives as one of the more disappointing aspects of the budget and it was really a missed opportunity to plug the budget hole," Craven said.
Hynes' action will free up money for a number of central Illinois projects.
Those include $14,000 to improve First Street in LaSalle; $30,000 for the Kewanee Fire Protection District to buy a building or equipment; $14,000 to renovate the Lewiston Township fire station; $25,000 for computer equipment for Zion Lutheran School in Lincoln; $35,000 for the Mt. Pulaski Township Historical Society to promote tourism; $5,000 to restore the Minonk band shell; $10,000 for new sidewalks in Flanagan; $60,000 for a rescue vehicle for Geneseo; $250,000 for software and equipment for a 9-1-1 system in Macomb; $50,000 for a dump truck and plow for Spring Valley; $22,000 for improvements at Plummer Boulevard intersections with Gordon Drive and Peachtree Drive in Chatham; and $10,000 for gym equipment at Franklin Middle School in Springfield.
The Fund for Illinois' Future still has over $116 million in it, even after the release of the frozen money.
 
 

Wants to save a valuable program
 
Letter to the editor
JACKSONVILLE JOURNAL COURIER
17 JUNE 2002
 
One hundred thousand dollars in " member initiatives." Can you say, "slush fund?" Greene County has a prison boot camp( Impact Incarceration facility) with A budget of less than $5 million per year.
Besides the wonderful job does helping young, first-time offenders, it has been a great contributor to the economy of this financially distressed county since it opened, both in terms of its payroll and purchases and its free services supplied to local groups and agencies.
Apparently we are not politically important enough to keep this facility. Finance has little to do with it.
Local people are impressed by the things purchased with the "member initiative"  money, which is the reason this fund exists. They are so impressed with the pork their local legislators bring home that they tend to overwhelmingly re-elect them.
   This is even more critical in a redistricting year. Now, what's more important, some silly prison boot camp, which affects the lives and safety of so many Illinois residents, or pork-barrel spending for reelection campaigns?
  Easy answer: Look who got the money.
  Perhaps some "members" will agree to give up their" initiative" in order to save this valuable program. And perhaps frogs will sprout wings to avoid bumping their butts on the ground.
  
Eric Ivers, chairman
   GREENE COUNTY BOARD
   CARROLTON

Prison food costs less, but at a price
Hiring Aramark to feed prisoners has saved the state millions, but the company faces fines and fears over guard safety.
 
By THOMAS C. TOBIN 
St. Petersburg Times 
June 17, 2002

Take any cross-section of Floridians and poll them about prisons. Few would care that, one day last February, lunch at the Madison Correctional Institution featured a particularly soupy batch of sloppy joes.
But corrections Capt. Hugh Poppell took notice right away. He saw the prison's new civilian food service staff dilute the entree even more, adding ketchup and tomato paste to make it stretch among the 700-plus inmates still lined up to be fed.
Poppell reported what he saw to warden Joe Thompson, who quickly investigated and found the workers had shorted the recipe by 70 pounds of ground beef and turkey. The warden also noted: "The other ingredients such as onions, celery and green peppers in the entree were not observed."
Far from a show of concern over the inmate palate, the officers were heeding an age-old canon of prison administration: A hungry, discontented inmate is often a problem inmate -- and a potential threat.
The culprit in the sloppy joe episode and scores of other recent food foibles across Florida was Aramark Corp., the cost-conscious Philadelphia company hired last year to feed inmates in 126 of Florida's 133 corrections facilities.
The contract is part of Gov. Jeb Bush's push to reduce payroll by privatizing many state operations. But a rocky first year has prompted the state to assess $110,000 in fines against Aramark.
Though the company has saved money for Florida, its stewardship over the state's prison kitchens has created a new set of concerns for frontline corrections officials, including: dirty kitchens that in one county produced maggots, frequent cooking delays that throw off prison schedules, food quality that often falls beneath expectations and a chronic inability to follow a state rule that requires every inmate to receive the same meal.
In a world where eating is perhaps the day's only pleasure, the rule is a security measure to prevent petty jealousies over food from exploding into fights. When the first 600 inmates in line get a whipped dessert and the rest get an apple or some lesser treat, as often happens under Aramark, bad things can happen, officials say.
The Department of Corrections acknowledges the problems but contends the contract is working and that Aramark is improving.
"It was a bumpy start," said corrections spokesman Sterling Ivey, who blamed the problems on the fast startup last summer.
"We asked Aramark to come into Florida and open 126 kitchens around the state in 90 days," Ivey said. "As we're going through the contract, we're learning how to be better partners with Aramark. . . . We feel like we're moving in the right direction."
The five-year deal is projected to cut the state's prison food costs from $80.2-million in 2000-2001 to $72.2-million in the fiscal year that ends July 1. Aramark will earn an estimated $58-million in the first year, providing meals at a cost of $2.32 per inmate each day.
Meanwhile, corrections officers have been frustrated by hundreds of food episodes, according to their daily logs from February to May, which the St. Petersburg Times reviewed this month.
Some scenes from the prison system's privatized kitchens:
In Marion County, inmate kitchen workers, on orders from an Aramark supervisor, soaked spoiled chicken in vinegar and water to take away the smell before cooking. Corrections officers found out and ordered 500 pieces of chicken thrown out.
In Brevard County, inspections in March and May found maggots on serving trays and kitchen floors. Inspection reports in other institutions described Aramark kitchens as "filthy" and in one case, "horrendous."
In Indian River County, inmate workers struggled one morning to cook pancakes while an Aramark supervisor was found sleeping at his computer terminal. Other institutions across the state reported problems with Aramark employees who were late to work or didn't show, leaving corrections officers to start preparing meals.
In Putnam County, corrections officers discovered pans of refrigerated food with altered dates, a serious infraction that sparked a major investigation. Officials suspected Aramark was subverting the prison system's strict rules on using leftovers -- rules intended to prevent mass inmate sickness.
In Hernando County, officers discovered that Aramark prepared a spaghetti dinner using chili con carne from the previous week and creamed chipped beef from the day before. The cream sauce was washed off and the beef reused.
At an Avon Park work camp, inmates complained when the pork roast servings were the size of Saltines. It was one of many reports logged by corrections officers across Florida who thought Aramark's portions were too small.
So vigilant is Aramark's cost-cutting that a supervisor ordered workers to scoop food from pans in a way that wouldn't jam too much into the ladle, said Norma Schamens, 33, an Aramark employee for three months in Gulf County before she was fired in May.
"There were some decent meals," she said. "But they were few and far between."
Also, the logs contain evidence of food-related unease among inmates.
Hardee County inmates staged a one-day food strike in February.
In Jackson County -- where inmates recently had received watered-down pork roast, cold spaghetti, undercooked meat and heated jelly in place of pancake syrup -- there was "tension in the dining hall" when Aramark served crumbled cake that had to be served by spoon, a corrections officer wrote.
At a medical prison near Starke, officers recently reported that "inmate complaints are on the rise."
And when Aramark served up undercooked potatoes and grits to Walton County inmates, one officer wrote that they "began to yell. Rattle cell doors and became disorderly."
"Any corrections officer will tell you that when inmates don't get fed right, that's where the riots start," said Al Shopp, a former corrections officer who monitors working conditions in prisons for the Florida Police Benevolent Association.
"It's an officer safety issue . . . It's just a situation that I'm afraid will eventually go awry."
Before Aramark, Florida corrections officers cooked meals.
"It was like a military operation. You got them in, you got them fed and you got them out," Shopp said. "There were bumps in the road, but nothing like it is today."
State officials have a different view.
Though inmates have complained, "there have been no security incidents whatsoever," said Elizabeth Hirst, a spokeswoman for Gov. Bush. "There have not been any riots or lives in jeopardy. The inmates are not always pleased with the food, but that's going to happen from time to time. . . . No one's going hungry."
Hirst said the state's contract with Aramark is designed to work out the glitches.
"With a savings of $8-million in the first year," she added, "this is operating in the manner that the governor and the corrections secretary (Michael W. Moore) had hoped. We are off to a good start with the program."
Shortly before signing with Aramark, Florida prison officials were made aware of similar problems at an Aramark-run prison food service in Ohio.
There, an inspection team in 1999 found "inexcusable" sanitation problems and "observed a near riot during breakfast as a result of (Aramark's) strict compliance with portion size(s)." The team suggested Aramark "should be liable for damages as a result of the lack of training, cleaning and maintenance."
Ohio's contract with Aramark was not renewed.
Last summer, Moore said in a letter to the Tampa Tribune that Florida's contract was "quite different" from Ohio's, with better controls to force compliance. He said it was wrong to think the same problems would occur in Florida.
On its Web site, Aramark promises to reduce the costs of its corrections customers without "shortcuts" or a drop in quality. It boasts of a computerized recipe and menu system that reduces waste and prevents the ordering of excess meals.
In Florida, however, the problems have been caused by not enough meals.
On many days throughout the state, according to the logs, Aramark ran out of food, sometimes with a handful of inmates left in line, but often with as many as 200 or 300 to be fed.
The shortages sent Aramark workers scurrying to cook more food while inmates waited 10, 20 or 30 minutes and sometimes an hour or more. Often, the hastily prepared food had no relationship to the day's scheduled menu, a violation of the rule that mandates consistency for security's sake.
Ivey, the corrections spokesman, explained how the feeding should work, saying: "What the first inmate eats, the last inmate eats."
Meanwhile, the longer delays have thrown off prison schedules, sometimes preventing inmates from getting to their job assignments.
In a statement Friday, Aramark said last-minute substitutions are bound to occur when feeding 63,000 inmates three meals a day.
Addressing the meal shortages, the company said: "Making too many meals means waste for the taxpayers." Aramark also blamed the problem on the fact that varying numbers of inmates come to eat each day.
But Shopp said Aramark too often gambles on a lower number of inmates. Too often, he added, corrections officers are forced to intervene when quality is low or the portions too small. In effect, he said, they "prop up" Aramark.
"For each of our clients," the company's statement responded, "we continually strive to improve the quality of service while managing such services in a cost-efficient manner."
 

Was the union at fault?

 

Rich Miller
Capitol Fax
17 June 2002

It's been a long time since a union has taken a hit in Springfield like the American Federation of State, County and Municipal Employees took last week.

The Senate Republicans held lockstep for over eight hours last Tuesday night, approving all but a handful of Governor Ryan's 234 budgetary vetoes one by one. In the process, they closed eight state facilities and canceled the opening of another. All totaled, the Senate agreed with about $450 million in cuts that the governor had made to the budget that both chambers had passed just a week before.

As the votes wore on, the Senate Democrats all but gave up and most were voting with their Republican colleagues to slash thousands of state jobs with barely any debate.

Most Statehouse types were aghast at AFSCME's rapid fall. Just a few short weeks ago, the Senate Republicans made a point of siding with the union by overwhelmingly approving a bill to prevent the governor from privatizing food services at state prisons. The move was seen as a blatant sop to the powerful union.

Last week, though, the Republicans decided to uphold the governor's veto of that legislation, dealing AFSCME yet another blow.

Senate President Pate Philip even ventured into deep southern Illinois last month to declare that a state prison in tiny Vienna would remain open no matter how much the governor wanted it shut down.

But then last week Pate personally lobbied his members to uphold Governor Ryan's vetoes to close eight state facilities, although the Vienna prison will stay open.

Even House Speaker Michael Madigan, usually a strong union ally whose daughter's attorney general campaign would love to tap into AFSCME's deep political pockets this fall, praised the Senate Republicans last week for slashing the budget and killing off all those state jobs. Madigan said he had repeatedly asked the union's president to reopen the negotiations, but was rebuffed. In the end, the Speaker said, the state simply didn't have the money to save the jobs.

Could the closings have been prevented? AFSCME claims an additional nickel tacked onto the new 40-cent cigarette tax hike would have saved the eight facilities. But the governor's proposal, which AFSCME rejected, that the union reopen its contract and agree to an unpaid furlough and wage freeze plan would have saved about as much money.

So, was AFSCME right or wrong? Every union has a duty to its members to demand that its contract be respected. And AFSCME officials have said over and over that if they gave in to the governor now, it would be easier for the next governor to tap them again when the state faces its next fiscal crisis.

But Governor Ryan always responds badly to personal attacks, and the union at times seemed to go out of its way to aggravate the big guy. Plus, Ryan has never really gotten over the way union honchos publicly bad-mouthed him and behaved during their often rancorous contract negotiations.

And instead of looking for a compromise that might have saved jobs and perhaps even won some non-cash concessions from the guv, the union dug in, hurled invectives and counted on its political muscle to hold the line. It didn't work.

It's also easy to forget that there are plenty of union politics involved with accepting broad-based givebacks. Internal union politics are not much different from legislative politics in this regard. The General Assembly and the governor chose some very targeted tax hikes to patch the gaping budget hole - cigarettes and gaming - rather than spreading the pain around to everybody because relatively few people (and, therefore, voters) have to pay.

Agreeing to a wage freeze and unpaid furloughs means every AFSCME member (and, therefore, union election voters) would take a hit. It's pretty obvious that, for AFSCME's leaders, layoffs target the political pain, as long as their union activists continue to blame the governor and the Senate Republicans for their woes. And blaming somebody else is what we humans usually do.

It's never right to blame the victim, though. Tactically, it's possible to fault AFSCME, but if the governor ruined the lives of thousands of state workers because he has thin skin, or just out of spite, rather than sound reasoning that those facilities actually should have been closed, then he truly is to blame.

 


More injuries, fewer officers at crowded Cook County Jail
 
BY FRANK MAIN
CRIME REPORTER
June 17, 2002
 
The number of correctional officers at the Cook County Jail has fallen, while injuries to security staff have risen, the court-appointed monitor of the jail says in a new report.
The John Howard Association for prison reform opposes Sheriff Michael Sheahan's plan to move inmates into tents to relieve crowding, and it urges him to hire more jail correctional officers. Those are among the findings in the group's annual report to the U.S. District Court in Chicago. The group was appointed as the monitor of the jail in 1982 under a federal civil rights lawsuit on behalf of inmates.
An executive summary released last week linked a rising number of staff injuries to a shortage of correctional officers in the jail.
The average daily population of the jail rose by more than 1,350 between August 1999 to April 30, 2002, while the number of security staff positions dropped by 22, the report said.
The average number of staff injuries, meanwhile, rose over that period from 10 per month to 29 per month. Inmate injuries remained about the same.
"The increase in the frequency of injuries should be a cause for concern," the report said.
Bill Cunningham, spokesman for the Cook County sheriff, acknowledged a staff shortage.
"There is unquestionably a need for more correctional officers, but because of budget constraints, we are not asking [the Cook County Board] for more positions," he said.
Over the last year, the average jail population was about 10,800 inmates--11 percent higher than the facility's capacity of 9,750.
As a result, an average of almost 1,400 inmates slept on floors because there were not enough beds.
Sheahan, who runs the jail, has proposed putting tents in the courtyard of Division 1, which is surrounded by a 20-foot-high concrete wall, if the population soars above 12,000 this summer. So far this month, the population has been hovering around 11,000, Cunningham said.
But "the tents are ready and the plans are in place in case it goes past 12,000 this summer," he said.
The John Howard Association is "adamantly opposed" to such a measure, which the report said would likely jeopardize the health and safety of inmates and staff.
Instead, the report called on the sheriff to look at expanding other programs that allow for the supervised release of low-risk inmates--such as electronic monitoring.
Cunningham said the sheriff recently moved several hundred inmates into electronic monitoring for a total of about 1,600. But he cautioned that increasing that number would require the sheriff's office to change the standards for what inmates qualify as a "low risk."
"The wider net you throw for electronic monitoring or other release mechanisms, the bigger the chance you have for creating public safety risks," he said.
Cunningham stressed that the sheriff is working with the Cook County state's attorney and the head of the Criminal Courts to ship convicted inmates to state prison while they await their appeals, instead of filling up the jail with them. The officials also are studying ways to speed up the time it takes for cases to go to trial, he said.
The jail was intended for pretrial inmates, Cunningham said. The average stay for inmates at the jail has stretched to six months from four in the last three years.
 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
16 June 2002
 
Oh, the great mysteries of life. What is the origin of the universe? What caused the extinction of the dinosaurs? Was there a budget agreement two weeks ago that Gov. GEORGE RYAN later tore up?
Its entirely possible the first two questions will be answered before the last one is. The news media arent allowed into the meetings between Ryan and the four legislative leaders where the budget takes shape. No official record is kept of whats said at those meetings. Its one mans word against anothers.
What we had was Senate Minority Leader EMIL JONES, D-Chicago, saying there was a deal. He said there was agreement on a balanced budget and there was no reason for Ryan to make that last $500 million worth of cuts, many of which will cost AFSCME members their jobs.
OK, but what kind of agreement was there? Did Ryan promise not to make cuts? The governor has the right to make cuts to any budget, unbalanced or not. A budget doesnt become inviolable because someone pronounces it balanced.
If Ryan privately promised not to make cuts and then did, he deserves scorn. Based only on his public comments, though, Ryan didnt mislead anyone. He said over and over that he made no promises to anyone about cutting or sparing any part of the budget. And anyone who thought Ryan in the end would spare the American Federation of State, County and Municipal Employees because the budget was "balanced" is probably too naive for their own good.
The biggest fear for lawmakers is that state tax revenues will continue to drop, making even this latest round of cuts look like a spending binge.
That could give Ryan an excuse to call yet another special session to deal with the latest crisis, a session that would be held in August or September. Thats right when the campaign season should hit full stride. Its also close to the election itself. That means if more cuts are inflicted, they will still be fresh in voters minds when Election Day rolls around.
Nope, that wouldnt be a good thing at all.
The two candidates for governor Republican JIM RYAN and Democrat ROD BLAGOJEVICH are both promising to reopen the Lincoln Developmental Center if elected. Thats nice, but why stop there? Gov. Ryan wants to close a lot of facilities, guys. Why not go pandering at those places, too?
But as you promise to reverse the governors cuts, you might want to keep a couple of things in mind. The next budget supposedly is balanced, but its anyones guess how well. By the time one of you takes office, the state could be in just as big a mess as it is now. And even if the economy improves, state revenues arent going to rebound that quickly, the experts agree. Its not like the state is going to be flush with cash a year from now.
Promise what you will. Just remember that the public seems to have a real low tolerance right now for governors who dont keep campaign promises.
In fairness to Jim Ryan, he didnt flatly say he would reopen the Lincoln Developmental Center. He said he would reopen it "if possible."
So it looks as if he didnt really promise anything at all.
House Republican spokesman GREGG DURHAM was going about his job last week when a friend asked about an e-mail Durham sent.
"He said, Why did you send me that?" Durham recounted.
"That" was some adult-oriented material that Durham definitely did not send to anyone. Durham looked at the message and quickly spotted what was going on. It was sent by someone with an e-mail address virtually identical to Durhams. The first part of the address was exactly the same. Only the provider (the part after the (at)) was different. Anyone quickly scanning e-mail messages would assume it came from Durham.
"It looked like it was purposefully similar," Durham said.
Purposefully similar, as in someone is playing a dirty trick and trying to embarrass Durham and/or the Republicans by sending out this kind of material.
The trick didnt last very long. Durham is changing his e-mail address.
Doug Finke can be reached at (217) 788-1527 or doug.finke@sj-r.com

Splitting the union

Aaron Chambers,
Illinois Issues
14 June 2002
 
The states largest government employees union only hurt itself. When AFSCME Council 31 refused to renegotiate its contract to help save the state budget, it hacked more jobs for its members than already were on the chopping block.
At the very least, the unions refusal to take either a one-year pay freeze or mandatory furlough for its members two options advanced by Gov. George Ryans administration forced budget negotiators to cut $100 million from programs and other expenditures such as personnel.
But worse, the unions obstinacy simply made Ryan mad. And the union is paying punitive damages.
Eight state facilities and 1,800 union jobs were zapped by the time the budget was finalized in an overtime session and subsequent special session in early June.
The Sheridan Correctional Center and the Valley View juvenile prison will close. The Lincoln Developmental Center, the Zeller Mental Health Center, a state Department of Children and Family Services facility on Chicagos West Side and three prison work camps will close. Opening day is postponed for a prison in Thomson and a juvenile prison in Rushville.
Another 1,300 union jobs were earmarked for elimination under spending cuts previously announced.
The union couldnt have saved all those jobs had it been more flexible. Personnel inevitably get cut when a government, or a business, has to fill a major budget hole.
But in its refusal to budge, AFSCME sealed its fate as this years big budget loser. It balked at the furlough and pay-freeze proposals measures that Ryans office estimated would have saved $100 million. It marched and rallied against job cuts. It caused the short-tempered governor to blow.
I think there was certainly an element of vindictiveness to this, said Henry Bayer, Council 31 executive director. Theres no question about it. And I think most observers feel that way.
Many observers do feel that Ryan, who has been vocal about his displeasure with AFSCME, punished the union by quashing so many state facilities and jobs. But with budgeters scrambling to fill a $2 billion gap in the states spending plan, others dependent on state dollars, such as agencies and special interests, recognized a dire situation and braced for a hit.
There were only a couple of options here and the governor said he was not looking to lay people off if he could avoid it, said Dennis Culloton, the governors press secretary. It never made sense to us why they took the tough position that they took.
Bayer said the notion his union was inflexible was a myth perpetrated by the Ryan administration. He said the union did more than anyone to try to come up with alternatives to making cuts.
AFSCME offered to ask its members to take volunteer furlough days. It also urged tax increases on casinos and cigarettes measures passed by the legislature and complained about pork-barrel projects in the budget. Its just not true that the union was inflexible, Bayer said. We were very flexible.
But the unions members are left counting 3,100 fewer jobs. And the governor had his say.
Aaron Chambers is the Statehouse bureau chief for Illinois Issues magazine.

Inmate caught after escaping twice in two hours
 
By STEPHANIE POTTER 
14 Jun 2002 
H&R Staff Writer
 
DECATUR -- Decatur police found an escaped convict under a train Thursday, about 12 hours after he walked away from a work release facility for the second time that day. Mark J. Leabo, 43, had been held at the Decatur Adult Transitional Center at Pershing Road and 22nd Street for about two months, Illinois Department of Corrections spokesman Brian Fairchild said. Leabo is serving a four-year sentence for a Piatt County conviction for possession of a stolen vehicle and a Tazewell County conviction for burglary. Fairchild said he had a good disciplinary history and was due to be paroled in March. But about 12:45 a.m., Leabo set off a fire alarm and fled the center, Decatur police Sgt. Larry Butler said. Decatur police found him in the 1200 block of East Eldorado Street about 15 minutes later and returned him to the center. Fairchild said Leabo was going to be transferred to Logan Correctional Center in Lincoln after the first escape. He had been handcuffed and shackled and was being held in an office when he walked out of the center again at 2:35 a.m., Fairchild said. Decatur police Lt. Jim Chervinko said Leabo was still wearing the restraints around 2:30 p.m., when an employee of Canadian National-Illinois Central Railroad spotted him along the tracks in the 800 block of East Garfield Avenue. Police quickly converged on the area, and Leabo was arrested within minutes. Fairchild said an investigation of how Leabo escaped is under way. "I'm not going to confirm any of the circumstances until we can determine exactly what happened," he said. "I'm not in any position to say what happened, but we will find out." Leabo was being held in Macon County Jail on Thursday night. Fairchild said he would likely be taken to Logan Correctional Center, but did not know when. He said Leabo could face several more years in prison if he is charged with escape. The work release center is one of the facilities that could be closed in the coming year due to state budget cuts. It employs 21 people and oversees 108 inmates.

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Ryan's staff to get pay raises
 
By Kurt Erickson
Statehouse bureau chief
June 13, 2002
 
SPRINGFIELD -- The new state budget contains enough money for Gov. George Ryan to reward merit pay hikes to many of his employees. But low-paid social service workers who care for some of the state's most vulnerable residents will not receive cost-of-living increases when the new budget goes into effect July 1. Earlier this week, the governor cut $28 million from the budget that he'd previously earmarked for pay hikes for workers who care for developmentally disabled and mentally ill residents. On Tuesday, the Senate failed to restore those cuts, meaning those workers will not receive a 2 percent wage hike for the second time in as many years. "Certainly it's a disappointment to not be receiving that money," said Tony Paulauski, director of the ARC of Illinois, which serves developmentally disabled residents. Workers affected by the move earn an average wage of about $8.50 an hour. In Bloomington-Normal, they are employed by organizations such as Marc Center and the Occupational Development Center. Money for the raises originally was to be paid to the workers April 1. But the state's budget problems forced Ryan to postpone distribution of the money. The cash was then inserted into the new spending plan that takes effect July 1. But, again, budget woes took their toll. A week ago, lawmakers and Ryan hammered out a budget compromise and left town. But Ryan last week rejected a plan to borrow $750 million as a way to keep the budget balanced and called the General Assembly back to town, saying lawmakers budgeted more money than the state could afford. Ryan vetoed $502 million, and the Senate agreed with about 90 percent of the cuts. While senators didn't restore two lines to the budget that would have given social service workers their raises, money to pay for raises to other state workers wasn't touched. Ryan's budget director, Stephen Schnorf, said there is money in the budget for raises -- not only for state executives, but for union workers, too. Schnorf said Ryan is likely to reward merit raises to his staff before he leaves office in January. "I don't know that he has ever contemplated freezing merit comp wages in order to save someone else's job," Schnorf said. Paulauski said social service providers are disappointed about the lack of funds, but they also acknowledge that their programs could have taken a worse hit in the budget. "It's a tough year," he said.
 

Budget wrangle bruises governor
Image in Capitol suffers new blow
 
SBy Rick Pearson
Tribune political reporter
June 13, 2002
SPRINGFIELD -- Gov. George Ryan shaved nearly a half-billion dollars from the state's budget, but he also may have shredded his credibility in one of the last places he has any left--inside the chambers of the House and Senate.
Though public opinion polls have shown Ryan with record-low levels of popularity among voters, he has enjoyed a close dealmaking relationship with the legislature, where he once served as House speaker.
But as a 12-day budget fiasco played out, the seeds of mistrust were deeply planted. Lawmakers left Springfield on June 2 thinking they had passed a workable state budget with Ryan's acquiescence--only to be called back to work and reprimanded by the governor this week for spending too much money and raising too little.
"I would say his credibility has gone down with both" the public and the legislature, said Senate President James "Pate" Philip (R-Wood Dale).
Although Ryan is a lame duck, his powers as chief executive are far from constrained. Ryan and his administration still control the release of money for tens of millions of dollars in legislative pork-barrel projects, not to mention myriad road and construction projects contained in the budget.
Yet as much as lawmakers need Ryan, he also needs them. Ryan acknowledged as much when he said he spared most of the legislators' pork from his budget-cutting vetoes because "I need the support of those people."
If state revenues continue to fall below projections, as they have for the last several months, Ryan will be forced to call lawmakers back into session to repair the damage.
Ryan also is rapidly looking for places in state government to plant members of his outgoing administration. Some of those jobs, which would last far beyond the end of the governor's term, require the support of the Senate. And the governor may want to take care of administration loyalists through pension sweeteners that lawmakers would have to approve.
Lawmakers left Springfield late Tuesday after sustaining most of Ryan's budget vetoes. Still, at the heart of legislators' complaints was the belief that the budget they had passed on June 2, which Ryan and his administration embraced, was largely in balance. That budget restored funding to keep open several prisons and facilities for the disabled, which Ryan had originally proposed to close.
When that budget passed, Ryan issued a statement congratulating lawmakers for "taking up the challenge" of fashioning a budget to cope with a severe decline in state revenues and for the realization that "tough choices" had to be made.
Ryan's statement even trumpeted one feature of the budget package, the ability to borrow $750 million through the sale of bonds that would be repaid through future income from the state's share of a nationwide tobacco settlement.
But Ryan and his administration adamantly maintain they didn't have a deal with lawmakers when they passed the budget in early June. Administration aides also said that when the budget was passed, they didn't know how much May revenues had fallen--even though word of a $224 million shortfall had circulated widely throughout the Statehouse for days before the vote.
Ryan also said that even though the General Assembly was voting to approve the spending package, he had already decided he didn't like the borrowing idea.
House Republican leader Lee Daniels of Elmhurst said his members thought the Ryan administration made it clear that the budget would be balanced if they supported it.
"Based upon that representation, we voted and passed the bills," said Daniels, a longtime Ryan loyalist. "So there's some anger and frustration."
Sen. Robert Molaro (D-Chicago) said the entire budget exercise was "disingenuous."
"The pressure must have gotten to him. It was very out of character," Molaro said. "He just jumped up and probably said to himself, `I know there was a deal, but too bad.'"
If there is one remaining reservoir of goodwill between Ryan and lawmakers, it is between him and the Senate Republicans. Though Philip and Ryan have often butted heads, the two were closer than ever during the eight hours of floor debate Tuesday when majority Senate Republicans accepted the politically risky job of upholding the governor's cuts.
Afterward, the governor walked into a closed-door meeting of Senate Republicans to thank them. He was greeted with a standing ovation.
 
 

Prosecutors urge court to stop flow of cash out of Ryan's fund
 
By Mike Robinson
Associated Press Writer
June 13, 2002, 12:30 PM CDT
Federal prosecutors moved to stop a drain of cash out of Gov. George Ryan's campaign fund today, saying the fund could end up too broke to pay restitution if it is convicted of racketeering charges.
Ryan's lawyers have been charging hundreds of thousands of dollars in fees and could leave the fund with less than the $1 million in restitution the government figures the state of Illinois has coming.
"The amount is getting dangerously close, if it has not already, to falling below $1 million," Assistant U.S. Attorney Patrick M. Collins said in offering an emergency motion to shut off the drain of funds.
U.S. District Judge Rebecca R. Pallmeyer gave Ryan's law firm, Altheimer & Gray, until Monday to come up with some guarantee that $1 million would be available if the campaign is convicted. Otherwise, she said, she might order the firm to get a bond to guarantee the money.
Citizens for Ryan and former campaign manager Scott Fawell are charged with secretly using state money and employees for political work in the 1998 governor's race and other elections going back to 1994.
The charges are an outgrowth of the federal government's four-year Operation Safe Road investigation, which began with disclosures that bribes were paid in exchange for Illinois drivers licenses. Recently, it has focused on other corruption when Ryan was secretary of state.
Ryan has been accused of no wrongdoing, although $170,000 in bribe money has been traced to his campaign fund, and his attorneys have said in court papers that he continues to be the beneficiary of the fund.
Altheimer & Gray says that it has set aside $200,000 to pay any restitution that might be required. But prosecutors say that only $1 million would be enough to ensure that the state gets its fair share.
Prosecutors said that on April 1 the total in the three campaign accounts they know of was $1,275,000. Since then, $330,000 in legal fees has been drawn out, they said.
Earlier, the campaign had reported to the State Board of Elections that as of Dec. 31 it had $2,361,349.24.
Prosecutors have refused to negotiate with Altheimer & Gray lately because it has been disqualified from representing Citizens for Ryan.
Pallmeyer disqualified Altheimer & Gray on Monday, saying the firm, which has represented the campaign for four years, had failed to overcome conflicts of interest. She cited its role early in the investigation as attorney for co-defendant Fawell. He now has retained another lawyer.
Altheimer & Gray also formerly represented the secretary of state's office, which is described in the indictment as the victim.
Altheimer & Gray attorney Mark Flessner said the firm still may attempt to remain in the case by taking the disqualification order to the U.S. 7th Circuit Court of Appeals. He also told Pallmeyer that because the firm's "institutional memory" of the case is so extensive it would be needed to help any new law firm understand the issues involved.
Altheimer & Gray remains Ryan's personal law firm, attorneys said. And the firm appeared today in court to represent Citizens for Ryan. Pallmeyer set a hearing for June 27 on making the transition to another law firm for the campaign.

Corrections cleared to privatize food service in facilities
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
12 June 2002
 
Legislation that would have thwarted Gov. George Ryans plan to privatize prison food services wont become state law, after all.
An Illinois Senate vote on Tuesday keeps intact Ryans veto of House Bill 3714. That means the Illinois Department of Corrections will not be barred from entering into a contract with a private vendor to supply food or commissary services at DOC facilities.
But the states largest employee union, the American Federation of State, County and Municipal Employees, is fighting the privatization issue in court. At present, unionized Corrections workers operate prison commissaries and cafeterias.
Henry Bayer, executive director of AFSCME Council 31, said some Republican senators caved under pressure from Ryan. Ten Republican senators voted for the bill last spring but voted against it Tuesday.
"Obviously, a number of senators dont have much backbone," Bayer said. "Who knows what promises the governor might be making to senators to get their votes? I can only presume they wanted to stand with George Ryan against their constituents."
The bill, which would have prevented Corrections from making such a change, won overwhelming support in the House and Senate earlier this year. But the governor rejected it.
The House voted Monday to override Ryans veto. If 36 senators also had voted to override the veto, the bill still would have become law.
Tuesdays Senate vote was 33-19, or three votes short of the necessary number.
"Its not easy to override a governors veto," Sen. David Luechtefeld, R-Okawville, said afterward.
Nevertheless, Luechtefeld and Sen. Carl Hawkinson, R-Galesburg, were among those seeking to do precisely that.
Hawkinson, the bills main Senate sponsor, said privatization could jeopardize prison safety because lower-paid and less-trained personnel would be working in prison cafeterias rather than trained Corrections employees.
"Safety ought to be our paramount concern here," he said.
The governor has said privatization would save the state millions of dollars, but some lawmakers wonder whether thats true.
"I really dispute the amount saved, or at least the amount claimed to be saved by doing this," Luechtefeld said, adding that estimates of the potential savings have changed over time, reaching a high of $30 million.
Sen. Dan Cronin, an Elmhurst Republican who voted for HB3714 last month, on Tuesday urged senators to uphold the governors veto.
"I ask you to look at the larger issue here, please," Cronin said, referring to the states budget troubles. "For those who cant support this, you better be prepared to vote for tax increases."
When the bill came up for a vote in May, it sailed through the Senate, 47-7.
"Apparently, a number of people changed their mind based on the hoped-for budget savings," Hawkinson said after Tuesdays vote.
Central Illinois senators voting for the override included Hawkinson; Larry Bomke, R-Springfield; Vince Demuzio, D-Carlinville; Laura Kent Donahue, R-Quincy; and Frank Watson, R-Greenville. Claude "Bud" Stone, R-Morton, voted "present."
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Ryans cuts remain
School funding partially spared
 
By DOUG FINKE
STATE CAPITOL BUREAU
12 June 2002
State senators agreed to support most of the more than $500 million in budget cuts recommended by Gov. George Ryan as lawmakers concluded their special session late Tuesday.
The Senate votes sealed the fate of the Lincoln Developmental Center, the Sheridan Correctional Center and a Department of Corrections work camp in Greene County.
The votes also mean thousands of state jobs will be cut and a host of services scaled back as state government continues to grapple with a massive drop in tax receipts.
However, senators did restore nearly half the school funding cuts Ryan recommended Monday, including all of the money he wanted eliminated from general state aid and some university funding.
The House on Tuesday concurred in restoring money to those areas and then adjourned.
Ryan called lawmakers into special session to act on his proposed budget cuts. He had threatened another special session to raise taxes if legislators did not go along with what he recommended. But after surveying what the Republican-controlled Senate did Tuesday, Ryan said he sees no need for further action on the budget at this time.
"Look, if the (revenue) projections are OK, then we should be OK with the budget that we got set up here tonight," Ryan said.
However, forecasters have been off in their revenue projections for more than a year, which has contributed to the current budget fiasco. Even in May, state tax receipts were down $224 million from what forecasters predicted. That drop wasnt built into the revised budget approved by lawmakers Tuesday. Administration officials have warned that the General Assembly could be called back into session this fall if the states economy continues to sink.
In a marathon floor session Tuesday, the Senate debated and voted on all 234 individual budget cuts sought by the governor. When the day finally ended, the Senate restored money to 22 of those cuts. Only about $53 million was added back out of the $564 million in cuts sought by Ryan.
The House approved all of the restorations later Tuesday night.
"It appears we have done very, very well," said Senate President James "Pate" Philip, R-Wood Dale. "I think (the governor) will be happily surprised with what weve done."
That view certainly wasnt shared by the American Federation of State, County and Municipal Employees, whose members represent a significant number of the cuts approved by the Senate Tuesday.
"The actions of the Illinois Senate today, we think, are reprehensible," said AFSCME Council 31 executive director Henry Bayer. "We never imagined they would have acted with such callous indifference and side with the governor against thousands of working families in the state."
Bayer estimated 1,800 jobs will be lost at the state facilities that will close as a result of the Senates votes. He said another 1,500 jobs are being eliminated by budget cuts previously announced by Ryan.
"Legislators have to be held accountable," Bayer said. "Were going to re-examine our relationship with every legislator and the party as well."
Philip said he doesnt think the series of votes Tuesday will come back to haunt his members, even though the Senate Republicans primarily supported Ryans budget cuts.
"The voters know we had a crisis. 9-11 happened, and were short of money," Philip said.
Although lawmakers sent a $54 billion fiscal 2003 budget to Ryan just over a week ago, the governor said it was out of balance and he had to use his veto powers to slash more than $500 million in spending. Senate Democrats continued to complain Tuesday that Ryan reneged on a budget deal and that there was no reason to approve the cuts he made.
"Im shocked and many of you are shocked to find we have to come back in special session to cut $500 million," said Senate Minority Leader Emil Jones, D-Chicago. "These are severe cuts to many programs throughout the state."
However, Philip told Jones the Democrats voted against higher cigarette taxes, gambling taxes and auctioning an unused riverboat license, which would have helped the state avoid the cuts discussed Tuesday.
"You had your chance and you blew it," Philip said.
In addition to outright spending cuts, Ryan vetoed a bill that would prevent him from privatizing food service at state prisons something he wants to do because he believes it will save $30 million. The Senate voted to sustain the veto, with several GOP senators siding with Ryan even though they originally voted for the bill several weeks ago.
"I guess there were some senators who just caved in," Bayer said. "I know they were getting a lot of pressure from the governors office."
For several hours Tuesday, the Senate sided with Ryan on every spending cut he requested. Among them was the Greene County boot camp.
"They were performing yeomans work," said Sen. Vince Demuzio, D-Carlinville, of the Greene County facility.
"We shouldnt close work camps where people are working instead of laying on a cot watching TV in a cell every day," said Sen. George Shadid, D-Peoria.
A new youth center in Rushville was supposed to open in May, but that will be delayed. The Sheridan Correctional Center will close, and a $25 million lump sum to the Department of Corrections was eliminated. The lump sum could have been used by Corrections any way it saw fit.
The Senate also killed a 2 percent cost-of-living increase for community service providers who help the mentally ill and developmentally disabled. The money is funneled through agencies that hire people to provide the services. Shadid said he wasnt convinced the entire amount would be passed on to workers.
Senators voted to cut funds for academic early warning programs, and $30 million of funding that was targeted for nursing homes. Grants for fifth-year college students also were eliminated.
Among the few cuts lawmakers rejected was about $47 million restored to elementary and secondary education, including more than $31 million in state aid. More than $8 million in funds to reimburse schools for required programs such as transportation and special education also were restored.
In addition, lawmakers restored $2 million to pay for a senior hot line that provides information on prescription drug programs.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
 

Senate upholds Governor's cuts; AFSCME charges reckless indifference' to human needs
 
June 11, 2002
CHICAGO, ILLINOIS SPRINGFIELDSenate Republicans today dealt a strong blow to social services, prisons and education after refusing to use previously approved borrowing authority to avoid deep cuts in state services.
"The Senate Republican caucus has joined with Governor Ryan to inflict devastating service cuts that show a reckless indifference to prison safety and human needs," said Henry Bayer, executive director of AFSCME Council 31. "The cuts in corrections will worsen working conditions and endanger employees and inmates alike. The cuts in services to the mentally ill and the developmentally disabled will seriously compromise the care of some of the most vulnerable citizens in our state.
"From the outset Ryan has been bent on using the budgetary process to settle scores without regard for the damage he will inflict on the people of this state," said Bayer. "His final budget slashes funding for dozens of important services and programs and eliminates jobs that sustain thousands of Illinois families. This budget strikes directly at working families and at our most vulnerable citizensthe elderly, the disabled, and our children."
The following cuts are those that directly affect AFSCME members:
Closure of Sheridan Correctional Center, a medium-security facility located in Lasalle, Ill. (422 employees). Medium security prisons in the state are currently operating at 161 percent of capacity, even with Sheridan open.
Closure of Illinois Youth Correctional at Valley View (180 employees).
Closure of the following work camps: Hanna City (80 employees), Paris (85 employees), Green County (75 employees).
Closure of Lincoln Developmental Center (550 employees).
Closure of Zeller Mental Health Center (243 employees).
Closure of the West Chicago office of Children and Family services (180 employees).
Delays in opening Rushville IYC and Thomson Correctional Center, which will compound problems of overcrowding.
"Governor Ryan has already made it clear that at the end of his political career he feels no sense of responsibility for the fate of the state," said Bayer. "But Senate Republicans can and should be held responsible for the damage that they've colluded with him to inflict. They chose to do this even though the money was there to avoid it.
"Fifty six million dollars would have stopped any correctional facility closuresthat's about another nickel on cigarettes," Bayer continued. "If they had used the borrowing authority that they had enacted just a week before, Lincoln Developmental Center and Zeller Mental Health could still provide crucial services to the developmentally disabled and mentally ill.
It's a sad lesson in state politics that legislators' pork projects remained untouched, Bayer said. "After doling out $1.5 billion in legislative pork Governor Ryan suddenly decided to pose as a fiscal conservative. And who suffers? Those who need services and those who provide them."
"There were a few men and women of principle who stood with us throughout these long months to support increased revenues and oppose cuts in vital services," Bayer said. "But too many members of the General Assembly turned their backs on the working people of this state. Our members won't forget that."
 

Ryan makes more cuts
Special session plan slashes $500 million from budget
 
By DOUG FINKE
STATE CAPITOL BUREAU
11 JUNE 2002
Gov. George Ryan slashed more than $500 million from the $53 billion state budget lawmakers approved just one week ago and left it up to them whether they want to restore the money.
Gone for now from the budget for the fiscal year that begins July 1 is the Department of Corrections work camp in Greene County and a youth center in Rushville, additional financial aid to college students and $95 million in human services funding.
Even elementary and secondary education - a sacred cow among lawmakers - is taking a $100 million hit, including in general state aid to local school districts.
Ryan publicly revealed the cuts Monday, the first day of a special legislative session he called to deal with a fiscal 2003 budget he said spends too much. In all, the governor cut more than 200 items, either partially or entirely. Ryan pegged the cuts at $502 million, although House Democrats said the total was more like $557 million.
"We've tried to spread the pain around as fairly as possible," said Ryan spokesman Dennis Culloton.
The magnitude of Ryan's reductions left some lawmakers in shock, especially since many of the items he cut had been added to the budget by lawmakers who thought the state would have enough money to pay for it all.
"I think we got a little credibility problem going on right now," said Rep. Frank Mautino, D-Spring Valley. "How did we leave here (last Sunday) and then find out we're $724 million off?"
"There's a whole lot of indignation," said Sen. Donne Trotter of Chicago, the lead Senate Democrat budget negotiator. "A lot of people feel they've been betrayed."
House Republican Leader Lee Daniels of Elmhurst was among them.
"At the time we passed this, we were told it was balanced," he said.
However, the governor's budget director, Steve Schnorf, said no one should feel betrayed, since Ryan never said there was a budget "deal."
"He (Ryan) made it perfectly clear _there was no budget deal," Schnorf said. "I don't think you can say that we told anyone ... that the governor would sign the budget that they were proposing passing."
Instead, Schnorf said, lawmakers took Ryan's Memorial Day budget plan, added spending to it and failed to approve all of the tax hikes the governor said he needed. The result was a huge budget hole by the time it reached Ryan's desk, Schnorf said.
The threat of closing prisons brought a large number of Department of Corrections workers to the Capitol Monday to press lawmakers to keep them open. Senate President James "Pate" Philip, R-Wood Dale, said the prison closures will be the toughest issue for Senate Republicans to tackle.
"I suppose (because) there's more employees, there's more controversy," Philip said. "It's hard to cut stuff. It's hard to shut something down."
Senate Republicans met privately for several hours Monday afternoon to discuss the budget cuts and talk about possibly restoring some of the money. Philip said another caucus will be held today before voting begins on the cuts.
The Senate will play the key role in restoring any spending. Under the General Assembly's rules, the Senate gets first crack at voting to reinstate funding the governor just cut. If the Senate goes along with Ryan's cuts, the Democratically controlled House will never have a chance to vote on them.
But that also puts enormous political pressure on the Senate and means senators might be casting votes that could be used against them in the November election.
Sen. Steve Rauschenberger of Elgin, the lead Senate Republican budget negotiator, said the chamber will get a chance to vote on restoring all 200 separate cuts made by Ryan. Each will be considered separately in a process that could easily take two days.
"The way the governor distributed the cuts is reasonable," Rauschenberger said. "I hope (the Senate) will sustain most of his (cuts)."
Senate Minority Leader Emil Jones of Chicago said Senate Democrats may go along with some of the cuts "if there is some fat he is cutting out." However, the Democrats will oppose cuts to education and human services, Jones said.
Asked how the administration decided what to cut, Schnorf said he looked at the 250 items in the budget that cost the most out of state government's general checkbook account. Most were cut 1 percent across-the-board, he said.
If lawmakers restore money the governor cut, Culloton said, Ryan may call another special session to deal with tax hikes to pay for the extra spending.
"If the General Assembly restores spending, it is possible we will all be back here again to address raising taxes to pay for it all," Culloton said. "I don't think anyone wants to see that."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

House defies Ryan, overrides veto of prison food service legislation
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
11 JUNE 2002
 
Defying the wishes of Gov. George Ryan, the Illinois House on Monday overrode his veto of legislation that would prohibit the state from privatizing food service operations at prisons.
The vote on House Bill 3714 was 90-21. Overriding a veto requires approval from three-fifths of the House and Senate, which translates to 71 votes in the House and 36 in the Senate.
Ryan has said the state can save millions of dollars by allowing the Illinois Department of Corrections to hire private companies to operate prison commissaries and cafeterias. Unionized Department of Corrections workers now handle those duties.
Most lawmakers, many of whom have Corrections facilities in their districts, have opposed the idea. They have questioned whether the move really would save money, and they've suggested it could make prisons more dangerous. Some downstate legislators also have said the changeover could hurt businesses that now provide commodities to prisons.
"What is the best public policy for running our prisons?" said Rep. Gary Hannig, D-Litchfield, who urged House colleagues to override the veto.
Highly trained prison personnel are needed to minimize problems, he said.
Rep. Tom Johnson, R-West Chicago, urged lawmakers to support the governor and keep the veto in place. Johnson voted "present" earlier this year when the bill zipped through the House, 110-3.
"Privatization is not in and of itself a bad thing," he said Monday. "I think it's incumbent on us to turn around and take a second look at this. In light of where we are with this budget, I think the governor is making the right choice here."
The bill now heads to the Senate. If enough senators agree to override the veto, the bill would become law in spite of the governor's opposition to it. When the measure came up in the Senate last month, it won bipartisan support and cleared the chamber on a 47-7 vote.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

 

Budget is in a mess

Rich Miller

09 June 2002

Unfinished business" doesn't even come close to describing the end of the Illinois General Assembly's spring session last week.

"Utter failure" might be a better description.

When legislators left town at the end of May, they pronounced their budget "balanced" and patted themselves on the back for passing new ethics legislation.

But, the budget wasn't balanced, and the ethics bill was "microscopic," as one good government lobbyist put it.

Let's start with the budget.

Republicans and Democrats battled for weeks over what to cut and what taxes to raise in order to patch a $1.3 billion budget deficit. After some progress, they started going backwards, with the House Republicans, of all people, demanding that over $350 million in cuts be restored to social programs.

The rancor eventually got so bad that Governor George Ryan called everyone in on Memorial Day to outline a new budget. But then one major tax hike was almost immediately deep-sixed and lots more spending was added.

The governor wanted to triple what's called the real estate transfer tax - which is what homeowners pay when they sell their houses. But a few years ago, Cook County Board President John Stroger floated a similar idea and the voters howled loud enough that even the hacks on the county board listened, so no Statehouse politician was willing to risk his or her neck on a tried-and-failed plan.

The governor cut some downstate facilities in his second budget proposal, so the Senate Republicans retaliated by cutting funding for some Chicago projects. Eventually, both sides got their stuff in the final spending plan, plus a whole lot more.

When all the changes were added up, the budget was at least $700 million short of what was needed to pay all the state's bills.

Oops.

But, hey, no big deal. Instead of cutting into the bloated upper ranks of the state bureaucracy, or increasing taxes, they took out a 15-year, $750 million loan.

You may not believe this, but Illinois has never taken on long-term debt to pay for day-to-day operations.

Even when the state almost went bankrupt in the mid-1800's, the crushing debt was from an overreaching infrastructure improvement plan. The goofy legislators who came up with that bright idea, including Abraham Lincoln, didn't even go so far as to borrow for operating expenses.

Thankfully, Governor Ryan had second thoughts about borrowing. As of this writing, he intends to make hundreds of millions of dollars in budget cuts and maybe ask the legislature to pass yet another tax hike or some other "revenue enhancements" in order to avoid borrowing the full amount.

The budget the legislature passed was, therefore, a fiction. The four legislative leaders had a pretty good idea that Ryan wouldn't take out the full $750 million loan, so they understood that many of the budgetary "add-backs" that they used to lure their members into voting for the spending plan would end up on the chopping block. Many of the members knew this as well. They didn't want to compromise, so they cooked the books and split town.

But before they fled, they passed a new ethics bill. The proposal would prevent top state and local officials from soliciting campaign contributions from people and companies they regulate.

This is a good idea, but, again, it's incomplete.

The Independent Voters of Illinois/Independent Precinct Operations worked for weeks with the House Republicans to craft a broad ethics plan. Then, out of the blue, a rival group announced that it had cut a deal with the Senate Republicans to pass the contribution ban.

The IVI/IPO was not amused. We're still in the midst of what may be the greatest scandal to ever hit Illinois. The Senate Republicans, being Republicans, are worried about the impact of that Republican scandal on their candidates this fall. The Senate Repubs don't much care for ethics bills, but they couldn't just pass a do-nothing proposal. They needed "political cover" from a third party who would legitimize their effort.

Instead of holding out for some real reforms, like a prohibition against state workers using "comp time" to subsidize their campaign work, the group immediately agreed to the Senate's paltry bill. The measure quickly passed both chambers and everyone was happy, except the IVI/IPO and the rest of us who think the General Assembly should have been strong-armed into doing a whole lot more.

In the end, the ethics bill was typical of the rest of the session. Incomplete.

Early retirement choices complex
State workers face critical decision
 
By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
09 June 2002
 
The decision to take early retirement "will be a no-brainer" for some state government employees those who have already saved enough and planned in hope of just such an offer says a local financial planner.
"That group has probably been waiting for this a long time," said Brian Barstead, a certified financial planner for American Express Financial Advisors in Springfield. For them, he said, "not only is this the icing on the cake, its probably the sprinkles on the icing."
But the decision will be far from easy for many other eligible state workers, he said. And the plan the state is offering over the next few months provided Gov. George Ryan signs the legislation, which he has said he will has its complexities, so Barstead and other experts advise interested state employees to consider their complete economic situations before jumping into anything.
The new program is the first time in a decade that Illinois state workers have had the option of taking early retirement packages. For many on the state payroll, the choice will be one of the critical financial decisions of their lifetime.
This is even more true because the new early retirement program is designed to allow state government to pare its payroll and relieve its ailing budget. That also was the motivation behind the last early retirement offer, made in 1991. Without more fiscal troubles, it could be a decade or more before state workers get another such chance.
The "five-and-five" pattern of the 1991 program remains intact in this years model. That means employees can purchase as much as five years worth of work credit, which, for purposes of calculating retirement benefits, will augment both their age and length of service in one stroke.
The state retirement system has both a standard schedule of benefits and an alternative schedule. State Retirement Systems pension administrator Brenda Fleigle said the alternative schedule is for certain employees with less office-oriented positions, including Illinois State Police, Secretary of State Police, Department of Corrections officers and investigators for various departments.
The alternative schedule costs a higher proportion of an employees salary upon departure but allows employees to start receiving benefits sooner.
There is also a relatively higher initial cost for employees who do not have Social Security tax withheld from their paychecks, but Fleigle said those longtime workers have dwindled to only a few.
While some people will find it easy to take early retirement, Barstead said the decision falls into a gray area for others who have not thought about retirement as thoroughly.
Typically, he said, a few people will unwisely take early retirement despite lingering fixed expenses, such as big mortgages or consumer debt, that eventually overshadow their savings.
"People who are using 50 percent of their income or more on fixed expenses those are people I would want to be careful" about retiring too early, he said.
It is important to remember, Barstead said, that even with early retirement packages, the most that retirees can reasonably hope for is about 75 percent of their final average salary although that average typically is based on a handful of their most highly paid years.
Springfield CFP Agatha Saunders said some retirees will find that their expenses decline in the absence of a longstanding career. However, Barstead noted that other retirees significantly increase their leisure spending on activities they had waited until retirement to pursue.
A significant difference between this years early retirement offer and that of 1991, SRS executive secretary Michael Mory said, is that some employees will have the option to buy service credit and retire even though they will not immediately be eligible to receive benefits.
No matter how much credit is purchased, employees must turn 50 to begin collecting retirement checks. This year, however, people younger than 50 may purchase credit and quit months, or even years, before their investment begins to pay off.
Barstead was careful to say that generalities about employees debt, savings or investments are not enough for any individual to make a prudent decision.
A variety of factors, such as a persons health, insurance portfolio, cash reserves and plans for potential side income during retirement, can weigh heavily on ones course of action, he said.
"I hate rules of thumb, because theyre terrible (by themselves)," he said.
Jeff Druchniak can be reached at 782-6882 or jeff.druchniak@sj-r.com.
 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
09 June 2002
 
As the spring session stumbled through the last few days, some lawmakers privately complained that the state is being run by the American Federation of State, County and Municipal Employees, not the General Assembly or Gov. GEORGE RYAN.
In their view, everyone is sharing the budget pain this year except members of the powerful state employees union. Ryan tried to furlough workers, close prisons and mental facilities and whack jobs to save money. AFSCME blocked nearly all of them in court at least temporarily.
After an intense lobbying campaign by the union, so many elected officials ran to the Vienna Correctional Center to pledge their undying support, its a wonder southern Illinois roads could handle the traffic. Ryan scrapped plans to close Vienna.
AFSCME has members all over the state, and the union made it clear it will make life miserable for lawmakers who vote for a budget that harms union workers. Not surprisingly, the budget sent to Ryan last weekend contains money to save facilities staffed by AFSCME members.
Well, theres a good chance well find out soon if those complaining lawmakers are right about who runs the state. Ryan said he needs to make significant cuts in the budget lawmakers sent him. Its a fair bet some of those cuts will target the same things Ryan had in his sights before prisons, mental health facilities and jobs.
Under one scenario floating around the Capitol, AFSCME will go to court to block the cuts from taking place using the argument that the cuts arent final until lawmakers get a chance to restore them. Normally, that would happen in the fall veto session. However, Ryan cant or wont wait that long to make cuts and will call lawmakers back to Springfield in June to endorse his actions.
The question will be: Do lawmakers think their constituents support higher taxes or deeper cuts to other parts of the state budget in order to placate the union and its members? Well see.
By the time the budget is finally settled, gambling interests might yet get something they want. But one of the surprises about the end-of-session jockeying was that the gamers got nothing.
This is a group that throws around campaign cash and hires high-powered lobbyists. Usually, an interest group that does those things is guaranteed to get something from the Statehouse. Not this time.
When it became obvious higher gambling taxes were on the way, the gamers got busy. First, they wanted unused gaming slots re-allocated to Chicago-area riverboats. The idea was rejected in both the House and Senate.
Next, they tried to put an expiration date on the taxes. The House passed that ideas, but the Senate didnt. Finally, the gamers tried to get the state to auction off the 10th gambling license, now unused because of a legal dispute. That one didnt even make it out of the Senate where it originated.
When it was over, all the gamers managed to do was delay the sessions conclusion by several hours while lawmakers kept voting on gaming bills to keep the industry happy.
ANITA BEDELL is executive director of Illinois Church Action on Alcohol and Addiction Problems. She is very much opposed to gambling in all forms. She also does not spend her Sundays hanging around the Capitol.
Last Sunday, though, Bedell found herself at the Statehouse lobbying against one of those last-minute gambling bills. She made her feelings known to the Senate Executive Committee.
"Passing a gambling bill on a Sunday goes against my grain," Bedell said.
The bill made it out of committee, but no further.
Conventional wisdom is that lawmakers spent all their time working on the budget and passed very few other bills this year. Not quite.
Lawmakers sent 348 bills to Ryan this spring. Thats about 100 more than were sent to the governor in 2000 and just about the same number as 1998, when there was no budget crisis to divert everyones attention.
No doubt a lot of those bills deal with the budget and the various tax hikes and borrowing schemes that were cobbled together to pay for it. Even so, that still leaves a fairly significant amount of legislation that passed that has nothing to do with spending.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Lawmakers coming back
Governor calls special session to balance budget
 
By ADRIANA COLINDRES and DEAN OLSEN
STATE CAPITOL BUREAU
08 June 2002
 
Members of the Illinois General Assembly, who ended their spring legislative session Sunday, will return next week at the behest of Gov. George Ryan, who says lawmakers sent him a budget with a revenue shortfall of at least $500 million.
Ryan on Friday issued a proclamation that orders legislators back to Springfield to convene in special session at 2 p.m. Monday. They are to take up two matters: the governors proposed changes to Senate Bill 2393, which is the budget bill, and his veto of House Bill 3714, which would bar the state from privatizing food service operations at prisons.
As of late Friday, Ryan hadnt issued details about what revisions he wants to make to the budget bill. A spokesman said that information probably wouldnt be available until Monday.
However, its possible the governor will seek to reinstate a variety of cuts that lawmakers restored after Ryan proposed them in his Memorial Day budget speech.
For instance, the governor called for closing Sheridan Correctional Center in LaSalle County, Zeller Mental Health Center in Peoria and Department of Corrections work camps in Hanna City and Greene County. He also made plans to further reduce the size of the Lincoln Developmental Center.
Even so, all of those facilities received full funding in the budget bill that lawmakers sent to Ryan.
Budget negotiations for the fiscal year that starts July 1 had stalled for weeks until lawmakers finally approved a spending plan 16 days after their scheduled adjournment date of May 17.
In a news release Friday, Ryan said he was pleased "the General Assembly passed a budget, but I am troubled by the over-reliance on borrowing and the continued revenue shortfalls."
Ryan said lawmakers had added more than $277 million in new state spending to his Memorial Day proposal. At the same time, he said, lawmakers didnt approve $220 million worth of his proposed tax increases and revenue enhancements. For example, the legislature approved a 40-cent cigarette tax increase 10 cents lower than what Ryan had wanted.
Combined, the differences make for a total shortfall of $500 million, Ryan said.
In addition, the Economic and Fiscal Commission the legislatures fiscal forecasting arm said earlier this week that May tax receipts were down $224 million. According to Ryans office, June revenues could drop by as much as $125 million compared with June 2001.
As Ryan left his Capitol office Friday, he said he expects layoffs will be needed to balance the budget.
A memo from Senate President James "Pate" Philip, R-Wood Dale, to fellow senators said the special session would last at least two days, Monday and Tuesday. House Speaker Michael Madigan, D-Chicago, told his members to prepare for at least three days.
Ryan can change the budget legislation by using his "line-item veto" power to eliminate specific appropriations in the bill and his "reduction veto" power to trim the size of specific appropriations.
Lawmakers then have the option of accepting the governors changes or trying to override them.
"Ive heard that there are going to be more than 40 motions 40 separate actions," said Sen. Steve Rauschenberger, R-Elgin, a key budget negotiator. "This is not a simple set of changes."
Rauschenberger said he expects Ryan to seek approval for budget cuts totaling about $270 million. The governor likely will look at reducing spending in human services and education, the senator said.
Ryan spokesman Dennis Culloton said that a plan for the state to borrow against future proceeds from the national tobacco settlement remains "a tool at (the governors) disposal. But in terms of having revenues in balance with expenditures, he does not want to over-rely on borrowing."
Under the state Constitution, lawmakers can override a line-item veto with a three-fifths vote in the House and Senate. It would take a majority vote in each chamber to override a reduction veto and restore a specific appropriation to its original amount.
The Senate will be the first chamber to take up the revised budget bill. The House plans to meet Monday afternoon as a "committee of the whole" to hear from agency heads, who will discuss the governors proposed cuts. Senators also will consider the proposals in committee at that time, Rauschenberger said.
Meanwhile, the House will be first to consider Ryans veto of the legislation that would prohibit the Department of Corrections from contracting with private vendors for food or commissary services.
Ryan says privatization could save the state up to $30 million. But lawmakers who supported House Bill 3714 have said privatization would threaten safety at prisons and hurt businesses that now provide commodities to prisons.
Rumors had been swirling that Ryan would call a special session, so the official announcement generally wasnt a surprise to lawmakers and others who watch state government closely.
"I dont know what to expect. I honestly do not," said Sen. Larry Bomke, R-Springfield.
Sen. Donne Trotter, D-Chicago, said he believes most lawmakers realized their work on the budget had been "of a tenuous nature."
"Its a little confusing," said Henry Bayer, president of Council 31 of the American Federation of State, County and Municipal Employees. "It was only last Sunday that we were being told the budget was balanced."
"I dont know if the whole exercise last week was a charade," he added.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com and Dean Olsen at 782-6883 or dean.olsen@sj-r.com.

Zeller,LDC backers hope Ryan won't cut facilities from budget
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
4 June 2002

Supporters of the Lincoln Developmental Center and other state facilities are crossing their fingers, hoping Gov. George Ryan won't slash their funding when he reviews the state budget lawmakers sent to him.
"I'm kind of in limbo," said Earnest Jones of Springfield, whose 38-year-old son lives at LDC.
Jones wants his son to continue living at LDC, but that might not happen if Ryan follows through with his original plan to trim funding for the Logan County residential facility for people with developmental disabilities.
Jane Zakibe-Richards heads the union local that represents many workers at Zeller Mental Health Center, a public psychiatric hospital in Peoria. She said Monday the local is encouraging Zeller's supporters to call the governor's office and ask him to retain funding for Zeller.
A spending plan lawmakers approved Friday includes enough funding to prevent Zeller from closing and to prevent LDC from downsizing to 100 residents. At present, about 250 people live at LDC. About 370 people lived there last fall.
The state's bleak fiscal condition had prompted Ryan to propose a variety of budget cuts, including closing Zeller. He also announced plans earlier this year to reduce the size of LDC because of questions about the quality of care being provided there.
Even though lawmakers restored those proposed cuts, Ryan has the authority to use his veto pen to trim the size of the budget. That means he still could decide to reduce or eliminate funding to LDC, Zeller and other state facilities and programs.
"It's very frustrating for a lot of people," said Zakibe-Richards, president of Local 51 of the American Federation of State, County and Municipal Employees. "One minute you feel like you're in the budget, the next minute you feel like you're out."
Morale among employees, patients and their families has been "sort of up and down, depending on the latest thing we've heard," she said, adding that workers are continuing to provide good care to patients.
The governor hasn't said when he will decide what cuts - if any - to make to the budget. The state's new fiscal year starts July 1.
"I'm hoping he doesn't make us wait that long. I want to know," said Linda Brown, co-president of the Lincoln Parents Association, which opposes the reduction of LDC.
"We're just hoping we get the funding, and it gets to stay the way it is," Brown said. "I'm going to stay very hopeful. I'm ready to just hear the good word, and we'll go from there. We need this place."
Executive director Henry Bayer of AFSCME Council 31, the union representing state workers throughout Illinois, said he doesn't believe any further budget-cutting is necessary. The budget proposal includes enough revenues, in the form of higher taxes and increased borrowing authority, to avert more cuts, he said. "I would hope we wouldn't inflict any unnecessary pain on folks," Bayer said.
In a revised budget proposal released a week ago, the governor also had called for closing Sheridan Correctional Center in L a Salle County, a Department of Corrections work camp in Hanna City and a Corrections boot camp in Greene County. Funding for continued operations at all three facilities is included in the spending plan, but their eventual fate remains uncertain.
Other facilities that Ryan suggested closing still are slated for closure. They include Department of Human Services offices in Pekin, Winchester and Granville.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Pate pays up with campaign funds
 
BY TIM NOVAK AND DAVE MCKINNEY
STAFF REPORTERS

June 4, 2002
 
Illinois Senate President James "Pate'' Philip opened his campaign fund and wrote a check for $15,161 to Navy Pier for a high school reunion party thrown on his behalf nearly three years ago.
Philip wrote the check last Thursday, two days after the Chicago Sun-Times disclosed Navy Pier never billed Philip for the party that was organized on just five days notice.
The pier also got a check for $14,092 from James Bolin, a member of the board that runs Navy Pier, to pay for five parties he hosted during the past four years, including a barbecue on the roof during the lakefront fireworks show last July 3, said Navy Pier spokeswoman Marilyn Gardner.
Philip (R-Wood Dale) decided to pay the bill with his campaign fund, rather than his personal checkbook. While state law now prohibits politicians from spending campaign funds on personal uses, such as cars or tuition, Philip's spokeswoman, Patty Schuh, argued the reunion bill isn't a personal expense.
"Some of these [classmates] still live in the area and they're Sen. Philip's constituents,'' Schuh said. "A number of them were out-of-towners, Downstaters or out-of-staters, and obviously he talks about politics wherever he goes.''
Philip's bill included $4,000 for rental of the room where the reunion was held Sept. 11, 1999. The bill also included $2,851 for food, $2,378 for gifts, $1,750 for a band, $1,297 for flowers, $900 for drinks, and a $675 tip.
The final bill is about $500 larger than the Sun-Times reported last week because Navy Pier officials charged Philip for rent, but the bar tab ended up being smaller than pier officials estimated, Gardner said.
Philip maintained last week that he never asked Navy Pier officials to throw a lavish cocktail party on behalf of the Class of 1949 from Elmhurst's York High School. He said he only wanted a tour for himself and his 84 classmates, including his younger brother, Arthur, the chairman of the Illinois State Toll Highway Authority.
Five days before Philip and his classmates were to board a touring boat at Navy Pier, Philip called Scott Fawell, chief executive officer of the Metropolitan Pier and Exposition Authority, the agency that runs Navy Pier.
Fawell ordered the staff to put together the lavish cocktail party that included gourmet hors d'oeuvres, a big band, flowers and gift bags with cards saying, "Compliments of Senator Pate Philip.''
Fawell never sent Philip a bill, and Philip never asked for a bill--until last Tuesday, when the Sun-Times disclosed the free party held at government expense.
Authority board members had been unaware that Fawell hosted a free party for Philip, saying the only free events should be those that promote the Navy Pier facility.
Both Philip and Bolin, the authority board member who also submitted a check, maintained that their parties could meet that standard because they were promoting Navy Pier to their friends.
 
 

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Lawmakers pass budget

Cigarette tax hike, borrowing plan approved

By DOUG FINKE
STATE CAPITOL BUREAU
3 June 2002

After running two days into overtime, Illinois lawmakers concluded their spring legislative session Sunday, finally agreeing on the tax hikes needed to finance a $53 billion state budget.

Lawmakers approved a 40-cents-per-pack increase in the price of cigarettes and higher taxes on riverboat casinos.

They also blocked a windfall business tax break.

Before leaving Springfield for the summer, lawmakers also approved a $1.6 billion capital spending budget that includes $500 million for school construction. A plan for the state to borrow against future proceeds from the National tobacco settlement also was approved.

On their final day in Springfield, lawmakers rejected a proposal to auction off an unused riverboat casino license that proponents said would generate hundreds of millions of dollars for the cash-strapped state.

The series of votes brought to an end a contentious session in which budget issues dominated the debate. For the first time in 50 years, state revenues dropped from the previous year, leaving legislators to grapple with a yawning $1.35 billion budget hole.

By the time they were done, legislators were forced to do two things they hate to do in an election year - raise taxes and cut spending, even for education.

"If we raise taxes, let's face it, we're going to upset some people," said Rep. Art Tenhouse, R-Liberty. "If you cut services, you're going to upset some people. Whether you have an opponent or not .. . you're going to make a lot of people unhappy."

Even with higher taxes and a more frugal budget, there is no guarantee Gov. George Ryan won't use his line-item veto to cut even more. Just a day after the General Assembly approved the spending part of the budget, Ryan warned that state revenues continue to drop even below previous dismal estimates. He said it is likely he will have to make "pretty dramatic cuts" to the budget.

Ultimately, that could mean that prisons and mental health facilities could still close, even after lawmakers voted to restore money to keep them open.

It also could mean the loss of thousands of state jobs, despite creation of an early retirement plan designed to entice older state workers to leave their jobs.

"There will probably be some (layoffs)," Ryan said. "I gave nobody any assurances about anything."

House Speaker Michael Madigan, D-Chicago, said he endorses the idea of the governor cutting the budget if it means the state can avoid borrowing money.

"I think you're going to see reductions in spending all across the board," Madigan said.

The American Federation of State, County and Municipal Employees has fought hard to save state jobs and keep prisons and mental health facilities from closing.

Asked how the union will feel about the impending cuts, Madigan said, "They will not be happy."

"There are no assurances what he will cut and there are no assurances of what he will not cut," said House Republican Leader Lee Daniels, R-Elmhurst, who also believes the governor will have to cut the budget plan.

Senate President James "Pate" Philip, R-Wood Dale, said the important thing is the budget was balanced without increasing broad-based taxes such as the income or sales tax.

"We've increased taxes on the fat cats and the riverboats, so I think we're in pretty good shape," Philip said.

Despite the state's serious financial problems, the Senate voted 21-30 to reject a plan to open a 10th riverboat casino. Proponents said the plan would provide the state with money both from auctioning the license and from the boat's proceeds.

"It will bring in an incredible amount of money. We have an incredible amount of needs," said Sen. John Cullerton, D-Chicago.

However, critics said the bill appeared mainly to be a way for the MGM Grand to get an Illinois gaming license.

Both chambers approved a plan for the state to borrow against future proceeds from the national tobacco settlement.

Although Senate Republicans opposed the idea for weeks, they endorsed a compromise that makes the borrowing, called "securitization," optional for the governor. It also stipulates that the $750 million the state will collect from the plan will be deposited equally into the state's rainy day fund and into a year-end checkbook reserve.

Bonds would be issued to collect the money.

"This is the first time since 1818 that we've borrowed long term for short-term cash flow," said Sen. Steve Rauschenberger, R-Elgin, chairman of the Senate's Appropriations Committee.

The securitization bill - House Bill 2828 - was approved 36-18 in the Senate and 100-17 in the House.

The House voted 82-33 to raise cigarette taxes by 40 cents per pack, bringing $230 million to the state. The Senate approved the plan earlier.

The Senate voted 45-10 to block the business tax breaks that would have resulted from the federal economic stimulus package, saving the state about $250 million and local governments $150 million.

The House also voted 84-33 to approve higher taxes on the existing riverboat casinos to raise about $135 million. The Senate earlier approved the bill by a 30-7 vote.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

 

Ryan may be forced to block attempts to save projects
 
By ADRIANA COLINDRES and DEAN OLSEN
STATE CAPITOL BUREAU
3 June 2002
Central Illinois lawmakers said Sunday they hope their effort to prevent prison layoffs and preserve the future of Zeller Mental Health Center and Lincoln Developmental Center will survive threats by Gov. George Ryan to whack more state spending.
"You can't control what the governor might do," said Sen. Larry Bomke, R-Springfield.
Rep. Ricca Slone, D-Peoria Heights, predicted Zeller will be shut down despite the General Assembly's decision Friday to fully fund the public psychiatric hospital in Peoria.
Lawmakers passed a spending plan that would restore some cuts proposed by Ryan, and they approved increases in cigarette and riverboat gambling taxes, as well as other measures, to help pay for the plan.
But the governor, faced with a state revenue picture that continues to worsen, has said he still might make additional cuts.
"The bottom line is, when all of this is over, the governor still is going to close Zeller," Slone said, adding that it was "a cruel hoax" for the legislature to pass a spending plan that included Zeller.
State Rep. Raymond Poe, R-Springfield, and Bomke, R-Springfield, said they hope the full funding for Lincoln Developmental Center that's included in the latest state budget will persuade Ryan not to push for more downsizing at the facility.
Ryan spokesman Dennis Culloton said full funding won't affect Ryan's future decisions about LDC. More downsizing of the facility for the developmentally disabled has been blocked, for now, by a court order.
Central Illinois lawmakers, like others in the Illinois General Assembly, struggled through a spring legislative session in which the main issue was money - or rather, a lack of money.
Ryan also had called for the closing of Sheridan Correctional Center and Department of Corrections work camps in Hanna City and Winchester. All three facilities received funding in the spending plan that lawmakers adopted Friday night.
While debating various budget-related measures on Sunday, lawmakers pointed out that the Illinois Economic and Fiscal Commission today is expected to release revenue figures showing that the state's fiscal picture continues to look bleak. It is unknown whether the state will have enough revenues to pay for everything in the spending plan.
Ryan could say the state's deteriorating economy leaves him no choice but to continue with privatizing food service in the state's prisons and work camps, as well as closing some state facilities that lawmakers want to remain open. The closing and privatization could lead to hundreds of layoffs of state employees.
If Ryan continues to cut, lawmakers said the situation would be difficult for them to explain to their constituents, especially if those legislators face opponents in the upcoming Nov. 5 election. "We've tried not to create false hope," said Rep. Gary Hannig, D-Litchfield.
House Speaker Michael Madigan, D-Chicago, said he expects that the future of facilities such as Zeller and the Sheridan prison will become clear "very shortly."
Poe said the possibility of cuts by Ryan "bothers me. We're passing on some trusts and commitments."
The tight budgetary times are new for Poe, who became a legislator in the mid-1990s. "It's a lot easier when you've got funds than when you have to look into areas you have to cut," he said. However, he said he hopes that the new budget's restoration of some cuts in Medicaid reimbursements implemented early in the current fiscal year will survive.
Those restorations include $7 million to $8 million for Springfield's St. John's Hospital, Memorial Medical Center and the Southern Illinois University School of Medicine.
Another bright spot in the budget, he said, is a $930 million expansion of the state's popular school construction grant program over the next two years. The expansion would help more than 100 school districts waiting for themoney. The districts include those in Rochester and Athens.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com. Dean Olsen can be reached at 782-6883.
 

Millions of dollars added for pet projects
 
By DOUG FINKE
STATE CAPITOL BUREAU
3 June 2002
 
Even as Illinois was sliding deeper into a financial abyss, state lawmakers added millions of dollars for their own pet projects to a capital spending plan approved by the General Assembly late Sunday night.
More than $127 million worth of projects were added to the already extensive spending list for construction and renovation that Gov. George Ryan outlined in his February budget speech.
Even with the add-ons, the state's total capital budget for the fiscal year that begins July 1 is $491 million less than the current budget, Ryan spokesman Dennis Culloton said.
"It's one of the smaller capital budgets we've seen in recent years," Culloton said.
In some cases, lump-sum amounts were added without identifying the individual projects to be funded.
"It's a huge addition of pork," said Sen. Christine Radogno, R-LaGrange. "This is the very thing the public is railing about right now, and rightly so."
Sen. Steve Rauschenberger, R-Elgin, said the projects added since February will cost the state an additional $8.5 million a year in bond payments.
Adding to the money was part of an agreement made during budget negotiations this spring. Each of the four legislative caucuses - House and Senate Republicans and House and Senate Democrats - was given $20 million for projects. Ryan also was allowed to pick up $20 million worth. Most of the projects are itemized in the capital budget, such as $2 million for Blackburn College in Carlinville.
However, House Republicans didn't itemize $17 million worth of their projects. Instead, they simply listed $7.3 million for "grants for units of local government" and $9.8 million for grants to "units of government, educational facilities."
Rep. Art Tenhouse, R-Liberty, said House Republicans wanted the lump-sum amounts because they objected to efforts by Senate Republicans to intervene in the process.
Senate Republicans did not itemize their projects, either, although their entire $20 million would be used for matching grants for health-care facilities outside Chicago. Some of the grants would be used to prepare hospitals for responding to mass casualties and disasters.
Sen. Vince Demuzio, D-Carlinville, said the money for Blackburn will pay for an athletic facility.
"Some time back, I made that request to my leader. I know it was negotiated with the budgeteers," Demuzio said. "If I didn't get it, it would go Chicago someplace."
Among projects added since Ryan's February budget speech were $2 million for a multipurpose arena at Lincoln College and $2 million to build a tower and other facilities to allow West Central Illinois Telecommunications, which operates public television in the Springfield, Macomb and Quincy areas, to do digital broadcasting.
The budget also includes:
$55 million to acquire property around the Capitol Complex in Springfield. The acquisitions could include the Lottery Building and Lincoln Towers.
The second half of a $30 million plan to build a new classroom building on the University of Illinois at Springfield campus.
$11.6 million for preliminary stages of a project to replace the Stratton Building.
$4.44 million to upgrade the Capitol Building's heating and cooling systems.
Nearly $4 million in renovations to the Willard Ice Building, the Springfield headquarters for the Department of Revenue.
$1.5 million for a new roof and electrical and technological upgrades at the Springfield Computer Facility.
About $1 million to finish repairs to the Emmerson Building at the Illinois State Fairgrounds.
$5.5 million toward renovations, plus installing a visual alarm system, at the Illinois School for the Deaf in Jacksonville.
Other projects at the power plant at Jacksonville Developmental Center, the automated security system at Graham Correctional Center in Hillsboro, a dormitory at Jacksonville's Illinois School for the Visually Impaired, the kitchen at the Litchfield Armory, elevators at the Old State Capitol, the roof on the Illinois Supreme Court Building, and the campgrounds at Lincoln's New Salem Historic Site.
Several central Illinois projects were originally recommended by Ryan but failed to make the latest cut. For instance, budget officials reduced a $20 million grant to begin work on a downtown Springfield "vista" project connected with the Lincoln Presidential Library and Museum to $1 million.
Also not included were $6 million to renovate the Stratton Building (proposed before the costlier plan for a replacement building emerged), funds for barn replacements at the state fairgrounds, remodeling and asbestos abatement at the Capitol, updated Illinois State Police firing ranges and other work at the Ice Building and Supreme Court Building and the Springfield Mine Rescue Station.
Jeff Druchniak and Dean Olsen contributed to this report.
 

State workers early retirement plan approved
 
By DEAN OLSEN
STATE CAPITOL BUREAU
2 June 2002
 
An early retirement plan, viewed by Illinois lawmakers and unions as a way to save money during a fiscal crisis and avoid thousands of state employee layoffs, passed the Illinois House on Saturday.
Approved with only one dissenting vote, the incentive plan heads to Gov. George Ryan, who can sign it into law. Ryan spokesman Matt Vanover said the governor supports the legislation.
Between 7,300 and 7,800 workers probably would take advantage of early retirement under House Bill 2671, said Rep. Raymond Poe, R-Springfield, a House sponsor of the legislation.
"This is one way we can minimize those people having to lose their jobs," Poe said. "It's the thing we have to do to shrink state government."
Although the plan has some front-end costs, Poe said it would result in a net savings to the state of $64.5 million the first year and $184 million each year after that.
In the Senate, where the bill was sponsored by Sen. Larry Bomke, R-Springfield, only one lawmaker voted against it on May 23.
Bomke has said that only about half of the positions vacated by retirements would be filled, and those would go to younger, lower-paid workers.
But it's unclear how many state employees would still be laid off under the state budget outline the House and Senate approved on Friday. It's also unclear how many layoffs would be averted by early retirement.
To deal with anticipated revenue shortfalls, the Republican governor on Memorial Day proposed a total reduction in 6,500 state jobs through layoffs, attrition and early retirement.
The budget the legislature passed is designed to reduce layoffs by restoring funding for several prisons and other state facilities - such as Peoria's Zeller Mental Health Center, Lincoln Developmental Center and a Greene County work camp - that Ryan planned to either close or downsize.
But the General Assembly hasn't yet come up with an agreement on how to pay for the restorations. The House and Senate adjourned Saturday evening without agreements on cigarette and gambling taxes, as well as other budget-balancing measures.
Rep. Frank Mautino, D-Spring Valley, said he voted against the early retirement bill because he objected to the piecemeal fashion in which the House was considering filling the state's $1.3 billion budget gap. Mautino said lawmakers should know more details of the entire budget deal before voting on its various parts.
The proposal would allow state workers to buy up to five years of age and service credits to enhance their pensions.
The plan allows workers to buy into the plan and retire between Aug. 1 and Dec. 31. Employees would be required to pay their full share of the retirement contribution if they wish to use the incentive.
Workers could not collect retirement benefits unless their purchase of additional age and service credits made them eligible to collect under regular state retirement rules.
Those rules include the "Rule of 85" (age and years of service total 85), being 55 years old with 25 years of service, being 60 years old with eight years of service or having 35 years on the job.
The bill prevents the state from rehiring workers who buy into the program, even on contract. Poe said that provision would avoid a situation that occurred in the early 1990s. That's when the state offered early retirement and then later found itself short-handed.
The state hired back many of the newly retired workers on contract, reducing the potential savings from early retirement.
Full details of House Bill 2671 are available on the Internet at www.legis.state.il.us.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
2 June 2002
 
Being the friendly guy that he is, Gov. GEORGE RYAN invited lawmakers and staff members over to the Executive Mansion after he delivered his budget speech Monday night. Maybe Ryan felt bad about causing everyone to cut short their Memorial Day weekend to return to the Capitol and sit in silence while he scolded them for not passing a budget yet.
Normally, when theres a bash like that at the mansion, free food and drinks are provided to the guests. Someone has to pay for the stuff, though, and reporters wanted to know who. Was Ryans campaign fund footing the bill? Part of it maybe, Ryan said, but not all of it.
Well then, is some lobbyist paying for it? Some lobbyist maybe looking to get some goodies out of the end of session negotiations? No, Ryan said, no lobbyists are paying for it.
That must mean taxpayers are paying for it, even though the state is out of money and taxpayers are being asked to pony up extra bucks to keep the ship of state afloat. Nope, Ryan said, wrong again.
We know it wasnt BYOB, so the food and drink has to come from somewhere. If we can figure out who paid for it, well let you know.
Postscript: A couple of reporters showed up at the mansion with the miniature tape recorders that most scribes carry nowadays. Security guards barred them from entering unless they got rid of the recorders. Makes you wonder what people were saying inside that they wanted to be able to deny later.
Todays mystery is tobacco securitization, in which the state sells its claim against some future tobacco settlement proceeds in exchange for upfront cash. For weeks, just about everyone claimed it wouldnt work and then, voila, it suddenly became part of the states budget plan. A reporter asked Ryan how that could happen, since Ryans own budget director, STEVE SCHNORF, had objected to securitization.
Ryan: "I dont think (Schnorf) ever really objected to it."
Reporter: "He said it wouldnt work."
Ryan: "That doesnt mean he objected to it."
And you wonder why the states budget process is a mess?
House Republican Leader LEE DANIELS, R-Elmhurst, explaining the intricacies of bringing a spring legislative session to a conclusion.
"Frequently, the end-of-session negotiations come at the end of session," Daniels said.
This was supposed to be the year rank-and-file lawmakers regained control of crafting the budget. In keeping with that spirit, House Speaker MICHAEL MADIGAN, D-Chicago, scheduled a committee-of-the-whole meeting Tuesday, during which the entire House could ask budget questions of agency directors in light of Ryans Memorial Day budget speech. From morning until late at night Tuesday, the meeting kept going.
The next day, a tired House Democrat summed up the experience. "Which is worse, not being asked for your opinion, or being asked for it and knowing it wont be taken into account?"
Rep. BOB BIGGINS placed a phone call to the Statehouse pressroom last week.
It seems the Elmhurst Republican decided to grab some breakfast in the Stratton Office Building cafeteria. So did a lot of other people, though, leaving Biggins stuck in a slow-moving line.
Biggins was not happy. He called the pressroom on a cell phone to inform the news media that they ought to do a story about state workers buying breakfast on state time. Biggins called sometime between 8:30 a.m. and 9 a.m., when the workers should have been, well, working. Biggins argued that private-sector employees are expected to tend to their food needs before arriving at work, and state workers should do the same.
Biggins must have been caught in a really slow-moving line, because he called back a while later to again demand a media investigation into this issue.
Of course, Biggins assumed that everyone in the line was a state worker using valuable state time to eat, which may or may not be true. People other than state workers have been known to eat in the cafeteria.
Biggins also assumed that the workers were buying food for themselves instead of, say, buying it for a boss or lawmaker who was too lazy to get his own. Thats been known to happen, too.
Anyway, Bob, heres your expose.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Legislators stay on
Spending plan OK'd; paying for it an issue

By DOUG FINKE
STATE CAPITOL BUREAU
1 June 2002
 
State lawmakers sent the spring session into overtime Friday when they couldn't agree on the tax hikes needed to balance a budget for the fiscal year that begins July 1.
It will now take a three-fifths vote to pass bills, making it more difficult to line up support for legislation and threatening a very long budget impasse.
Earlier Friday, both the House and Senate easily passed a $53 billion spending bill that restored many of the cuts Gov. George Ryan had recommended just five days earlier. The General Assembly's budget includes money to keep open prisons and mental health facilities once slated to close and to reduce the number of state workers who will be laid off.
When it came time to pay for the spending, however, there was far less agreement. As it became obvious that the House would not meet the midnight deadline for passing bills without the extra votes, Speaker Michael Madigan, D-Chicago, abruptly sent lawmakers home to try again today.
"We thought we had a blueprint (Thursday) night to end the session. That didn't work out," he said. "Given a little time, we will resolve the remaining issues."
Madigan would not place blame for the budget breakdown.
"I am not going to get into who said what, who did what, what fell off the table," he said. "It doesn't serve any useful purpose to me."
Throughout the night, Senate Minority Leader Emil Jones, D-Chicago, claimed Senate Republicans reneged on a deal to use "securitization" as a way to balance the budget. The plan - which Jones has championed for weeks - has the state selling part of its future stake in the national tobacco settlement in return for immediate cash.
"If you don't have your word, you don't have anything," Jones scolded Philip while the Senate debated tax bills.
"I will assure you of one thing, there was no agreement whatsoever," Philip shot back. "The experts say they're not sure (securitization) really works."
House Republican Leader Lee Daniels of Elmhurst sided with Jones on the tobacco issue. Both Jones and Daniels pick up extra clout when the session goes into overtime and more votes are needed to pass bills because neither of the majority parties controls three-fifths of the vote.
"If we thought the Senate was not going to entertain Senator Jones' securitization program, we would not have passed the budget the way it was passed," Daniels said. "We're in an economic crisis. Why not use those funds to get us through."
Philip said Daniels made it clear he would stall a vote on tax hikes until after the midnight deadline.
"He said he'll call a caucus and won't come back until after 12," Philip said. "It's part of the game, isn't it?"
Senate Republicans were promoting a series of tax hikes to balance the budget, including a 40-cent-per-pack increase in the price of cigarettes, increased gambling taxes and blocking a windfall business tax break resulting from the federal economic stimulus package.
For a while, it appeared the tobacco securitization issue might derail the budget agreement. Sen. Emil Jones, D-Chicago, the leading proponent of securitization, insisted his plan was part of a budget deal reached Thursday and that Senate President James "Pate" Philip, R-Wood Dale, was backing out of the agreement.
"If you don't have your word, you don't have anything," Jones scolded Philip.
"I will assure you of one thing, there was no agreement whatsoever," Philip said. "The experts say we're not sure it really works."
Rauschenberger said that with the revenue adjustments, the budget sent to the governor Friday is balanced. However, that does not preclude Ryan from cutting things if he chooses.
Ryan wanted a budget plan with $850 million in the bank at the end of the fiscal year in 2003. He said that much is needed to ensure that the state can pay all of its late arriving bills. However, the budget passed Friday only projects the state will have $650 million on hand June 30, 2003.
"I don't think you punish taxpayers more to get a larger balance," Rauschenberger said.
Rep. Jonathan Wright, R-Hartsburg, was the only Springfield-area lawmakers to vote against the budget, even though it contains money to keep the Lincoln Developmental Center open in his district.
"I wasn't voting against funding for LDC," Wright said. "I was voting against funding for LDC with a tax increase. 'I really believe we could balance this budget without any tax increases."
Lawmakers were facing a $1.35 billion budget hole as they crafted the budget for the fiscal year that starts July 1. Most other lawmakers, however, said it was impossible to try to close that entire hole with spending cuts.
The budget bill is Senate Bill 2392. The cigarette tax is House Bill 539. The gambling tax bill is House Bill 2381.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

Plan would fully fund LDC ,Greene County
 
By DEAN OLSEN
STATE CAPITOL BUREAU
1 June 2002
 
Full funding for Lincoln Developmental Center in Lincoln would be restored, and the closing of the Greene County work camp would be averted in a new state spending plan adopted late Friday by the General Assembly.
But the fate of LDC and other projects in the budget is uncertain. Lawmakers haven't yet authorized tax increases needed to help pay for the spending, and Gov. George Ryan has said he wants to downsize the center for developmentally disabled adults.
The budget for the fiscal year that begins July 1 would reinstate funding for LDC to the current annual level of $35.3 million. Ryan originally proposed spending $11 million.
The governor still could veto the LDC dollars and other projects in the spending plan adopted by the House and Senate. Ryan has said he wants to change the center's operations for the good of its residents, not to save the state money as it struggles to make ends meet.
But to continue the changes, he would have to be successful in fighting a court order that has restricted him from transferring any more residents out of the center. About 30 of LDC's workers have been laid off, but about 600 staff members and 250 LDC residents remain.
The budget passed the House without the support of Rep. Jonathan Wright, R-Hartsburg, whose district includes LDC. Wright was appointed to his post when former Rep. John Turner, R-Atlanta, became an appellate court judge.
Wright was one of 22 House members, most of them Republicans, who voted "no" on a bill containing the budget. He is not seeking election in November.
He said he voted against the spending plan because he opposes tax increases and didn't think the cigarette and riverboat gambling tax hikes being considered by legislature late Friday were justified.
The Senate approved the higher taxes Friday, but the House adjourned for the night before voting on them. House members plan to return to the Capitol this morning to continue work on the budget.
Wright said he didn't support any of the proposed tax increases, even if the hikes would benefit LDC residents and workers. Other changes in the budget could have provided enough money for LDC, he said.
"I'm not opposed to the funding of LDC - never have been. I've fought for it," Wright said. "But I think we need to do it in a right way, and we didn't do it the right way."
The newest state spending plan also reinstates $4.8 million for the continuing operation of the Greene County work camp. It is operated by the Illinois Department of Corrections and employs about 70 people.
The budget still includes the planned closing of a Department of Human Services office in the Scott County community of Winchester.
The spending plan sent to the governor also includes:
$1.8 million to operate the Springfield cancer research center that will be run by Southern Illinois University.
$11.5 million to renovate or help replace the Stratton Office Building, which is part of the Capitol complex in Springfield.
$300,000 for a grant to the Springfield Convention and Visitors Center.
Grants of $100,000 apiece to Virden, Girard, Gillespie and Staunton high schools for the repair or construction of running tracks.
$67,000 to the Litchfield Park District for park improvements.
$50,000 to Morrisonville for sidewalk upgrades.
$25,000 to Harvel for building repairs.
$75,000 to Montgomery County for courthouse improvements.
$50,000 to Christian County for courthouse renovations.
$814,444 to WMEC-WQEC-WSEC in the Macomb, Quincy, Jacksonville and Springfield areas for digitalization infrastructure.
$500,000 to Quincy for renovation of a performing arts center.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

State senators draw for re-election period
 
By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
1 June 2002
Illinois state senators learned through a random drawing Friday when their seats will come up for re-election over the next decade.
In a 10-year period, every senator serves two terms of four years and one of two years. The terms are staggered, and the order of the terms was determined by Secretary of State Jesse White's drawing.
The process is repeated with each new U.S. census and reconfiguration of Illinois' legislative boundaries.
White's drawing determined Friday that 20 of the 59 senators will face re-election two years after this fall's election.
Several area senators were among the group whose potential shortened term will come sooner. They include Sen. Larry Bomke, R-Springfield, who faces Democrat Don Tracy in the fall; and Sen. Laura Kent Donahue, R-Quincy, who faces John Sullivan for the new 47th District seat.
Rep. Dan Rutherford, R-Chenoa, also will serve a two-year term in the Senate before facing re-election. He is unopposed for the 53rd District and will replace retiring Sen. Claude "Bud" Stone of Morton.
Another central Illinois incumbent, Sen. Vince Demuzio, D-Carlinville, drew two four-year terms followed by the two-year stint. Demuzio will be opposed Nov. 5 by Eric Ivers.
Nineteen state senators will serve a four-year term, followed by a two-year term, followed by another four years.
White left the room while Senate President James "Pate" Philip, Minority Leader Emil Jones and Majority Leader Stanley Weaver sealed envelopes, each of which designated a different timetable for a batch of senators. White said he hoped no senators would have hard feelings about the outcome, but for some it was clearly serious business.
Sen. Brad Burzynski, R-Sycamore, left the packed conference room in apparent disgust when it became clear his group would receive the shortest term first. Demuzio was less demonstrative about his more favorable draw.
"Guess I know where I'll be for the next four years," he deadpanned.

Jeff Druchniak can be reached at 544-2819 or jeff.druchniak@sj-r.com.
 

Jim Ryan ad strikes at Blagojevich policy
 
By BERNARD SCHOENBURG
POLITICAL WRITER
1June 2002
 
Republican gubernatorial candidate Jim Ryan's campaign began airing a television ad Friday comparing Ryan's policy positions with those of Democratic candidate Rod Blagojevich.
The ad prompted the Blagojevich campaign to accuse Ryan of "deceit" and "desperation."
But Ryan spokesman Eric Robinson said the ad merely spells out the facts.
"Anybody who sees it is going to say this is as straightforward an ad as we've seen in an Illinois gubernatorial campaign," Robinson said.
Called "On the Issues" and produced by the consulting firm Stevens Reed Curcio & Co. of Arlington, Va., the ad began running in several Illinois areas outside Chicago, including Springfield. Robinson said more than $300,000 is being spent to run the ad.
The ad says Ryan supports a requirement that a 14-year-old must notify her parents before having an abortion: "Jim Ryan supports parental notification. Rod Blagojevich opposes it."
Similarly, the ad says Blagojevich supports "legal recognition of same-sex partners" and Ryan does not.
"And on firearm owners' ID cards, Blagojevich authored a bill that would raise the fee for such a card from $5 to $500," the ad says. "Jim Ryan would veto such a bill."
The Ryan campaign said Blagojevich voted three times against bills that would require notice to a parent or guardian before an abortion could be performed on a minor; indicated support for "legal recognition of domestic partnerships" on a 2002 gubernatorial questionnaire; and introduced the FOID card legislation in the Illinois House in 1993.
Doug Scofield, spokesman for Blagojevich, said Blagojevich is pro-choice. He has opposed parental notification, Scofield said, because of the fear that a girl might be forced to tell a potentially abusive parent.
That position leaves Blagojevich "far closer to the mainstream" than Ryan on abortion, Scofield said, because Ryan personally opposes abortion even in cases of rape and incest.
On gay rights, Scofield said the ad seems to imply that Blagojevich supports gay marriage, which he does not. Robinson said same-sex marriage and legal recognition of same-sex partners are distinct issues, with four states - Hawaii, New York, Massachusetts and California - allowing such legal recognition, including inheritance rights.
On the FOID fee, Scofield said, the ad is "accurate, but it's hardly the entire story." Even back in 1993, Scofield said, Blagojevich amended the bill - which ultimately failed to pass - to make the fee $25 per year.
"For nine years, he has said he has no interest in moving forward any legislation like this," Scofield said.
The Blagojevich campaign said Ryan's ad represents the earliest example of a candidate for governor dipping into a war chest to launch an attack ad on a general election opponent.
Robinson said Blagojevich was the first to go negative, using his primary election night speech to call Ryan out of the mainstream.
Blagojevich has been leading by double digits in some polls, though a Chicago Tribune poll published in early May showed the race to be a virtual dead heat.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

House approves spending plan
Final deal still in doubt
 
By Christopher Wills
Associated Press Writer
May 31, 2002, 2:04 PM CDT
 
SPRINGFIELD -- The Illinois House approved a state spending plan today that would add about $275 million to the Spartan budget proposed by Gov. George Ryan.
But legislative leaders still appeared to be far apart on how to come up with the money.
The budget bill would provide money to keep operating several state facilities that Gov. George Ryan proposed closing: a Peoria mental health center, a Lincoln home for the developmentally disabled, a St. Charles juvenile prison and the Sheridan prison.
It also would reverse some of the service cuts Ryan suggested. House Minority Leader Lee Daniels, R-Elmhurst, put the total restoration at about $275 million.
The spending measure passed 92-22 and now moves to the Republican-controlled Senate.
Senate President James ``Pate Philip, R-Wood Dale, said it was possible an agreement on a complete budget package could be approved today.
Midnight today was a key deadline. After that, passing a budget would require a three-fifths vote rather than a simple majority. Finding that much support could take a long time and require added spending to placate lawmakers.
But the budget options Philip described were significantly different from those outlined by other leaders.
Ryan and legislative leaders have spent weeks negotiating over how to close the states $1.35 billion deficit and produce a balanced $53 billion budget for the fiscal year starting July 1.
Ryan has proposed deep spending reductions, including cutting 6,500 state jobs and scrimping on social services, along with several tax increases. Finding a balance acceptable to a majority of lawmakers in an election year has proven nearly impossible.
Everyone now seems to agree it will require raising taxes on cigarettes and riverboat casinos, as well as blocking a tax break for businesses.
Ryans idea of tripling the tax on real estate transfers, which would yield $120 million, has failed to win any support.
Philip said cigarette taxes probably would climb around 40 cents a pack, to a total of 98 cents. That would generate about $230 million a year for the state.
He said casinos could see higher taxes both on their revenues and their admissions. As of Thursday night, officials were discussing a total increase of $130 million from casino taxes.
Philip said the idea of bringing in more money by letting casino gambling expand was still being considered, although House Republicans firmly reject that.
He also rejected something the House Republicans support: taking an immediate cash payment in exchange for giving up some future revenue from a tobacco lawsuit settlement.
Senate Democrats also back the idea, and a spokesman said House Speaker Michael Madigan, D-Chicago, is willing to go along.
``I dont think thats going to be in it. It just doesnt work, Philip said.
If lawmakers end up approving more spending without providing the necessary money, Ryan may be forced to use his veto powers to trim the budget.
He could go back to his earlier proposal to close prisons and mental facilities. Lawmakers up for election this fall would be in a position to argue that they opposed the closures but could not prevent the governors actions.
Another way to make up the difference would be to spend some of the $851 million the governor needed to pay end-of-year bills. That would push some of fiscal 2003s financial problems into the next budget year.

Leaders try to balance budget
No firm plans as time runs low
 
By DOUG FINKE
STATE CAPITOL BUREAU
31 May 2002
Just when it appeared that Illinois lawmakers were willing to drop the state's budget mess into Gov. George Ryan's lap, legislative leaders came up with yet another plan for balancing the budget on their own.
But with only one day remaining in the spring session before lawmakers will need a three-fifths' majority to pass a budget for the fiscal year that begins July 1, the General Assembly will be racing against time to get any spending plan approved before midnight tonight.
Rounding up the extra votes needed to pass the budget after that will make an already difficult job that much worse.
Like earlier plans, the latest proposal depends on higher cigarette and gambling taxes. It gives more money to education and Medicaid than a budget Ryan floated Monday, though it was unclear how many of the 6,500 jobs he has targeted for elimination might be saved by the new plan.
The proposal also would borrow against a portion of the state's proceeds from the national tobacco settlement - an idea that until Thursday was rejected by most everyone except Senate Minority Leader Emil Jones, D-Chicago.
Even an early retirement incentive plan is back in the mix a day after House Speaker Michael Madigan, D-Chicago, said he didn't expect one to pass this spring.
Still unclear is how firm any of this is.
"There is an agreement in concept based on what we know at this moment," House Republican Leader Lee Daniels said Thursday night after emerging from a two-hour meeting with Ryan and the other legislative leaders.
"We are still in negotiations," Ryan said a few minutes later.
Asked whether there is agreement on anything, the governor added, "There's an agreement to talk (today)."
The plan under discussion by the legislative leaders raises cigarette taxes 38 cents per pack. In his speech Monday night, Ryan sought a 50-cents-per-pack increase.
Lawmakers also want an additional $135 million in gambling taxes, less than the $200 million sought by Ryan. Daniels said there is no House Republican support for a bill to reallocate unused gaming positions among four Chicago-area riverboats. A plan to raise the riverboat admissions tax is dead, as is a possible increase in the real estate transfer tax, Daniels said.
Vienna Correctional Center will remain open under the latest plan, but it was unclear Thursday night which other state facilities will be saved. Ryan wanted to close the Sheridan Correctional Center along with three Department of Corrections work camps, regional Department of Human Services offices and the Zeller Mental Health Center in Peoria.
About $260 million in spending would be added to the austerity budget Ryan proposed Monday. More money will be pumped into Medicaid programs, Daniels said, although they will not be returned to 100 percent funding. Ryan called for restoring 50 percent of his previously announced cuts to Medicaid.
Also under the latest budget proposal, school programs such as special education and transportation will be returned to full funding, and fifth-year college students will still be able to obtain aid through the monetary assistance program.
Details of the early retirement incentive are sketchy. There was no firm agreement among the leaders Thursday to adopt such a plan.
However, Daniels and Ryan both said the issue that appeared dead Wednesday is back under discussion. Madigan had opposed early retirement because he doesn't believe it will save the state as much money as its proponents believe.
On Wednesday, the four legislative leaders had agreed to send an unbalanced budget to Ryan and let him use his veto powers to cut spending and bring the budget in line with revenues. The maneuver would have allowed lawmakers to distance themselves from unpopular budget cuts and let the lame-duck Ryan take the heat.
Daniels said rank-and-file members of the House GOP rejected that idea Thursday.
"Most of my members have never voted on a budget that wasn't balanced, and they weren't going to start that now," he said.
Rep. Gwenn Klingler, R-Springfield, insisted it wasn't a matter that House Republicans didn't trust the politically damaged Ryan to make appropriate cuts.
"It's not that I don't trust the governor, I just don't think it's fair to him," Klingler said. "I don't think it's fair for us to vote on a budget that is not balanced and then expect him to take all the political heat."
Rep. Donald Moffitt, R-Gilson, said passing an unbalanced budget could backfire on lawmakers.
"Let's not lead folks to believe (something's) going to stay and then have it taken away," Moffitt said. "It would be better to say it just didn't make it."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

BALANCED BUDGET CLOSER TO REALITY: RYAN, LEGISLATIVE LEADERS WORKING OUT DETAILS

 

BY ANTHONY MAN
SPRINGFIELD BUREAU
[Thu May 30 2002]

SPRINGFIELD -- After hours of budget negotiations that followed the collapse of an earlier spending plan, Gov. George Ryan and the four legislative leaders said Thursday night they have a framework for a state budget.

Many details remained to be worked out overnight, but tentative provisions include:

Increases of $230 million in the tobacco tax and $130 million in the tax on riverboat casino operators. The cigarette tax would require an increase of about 38 cents a pack in the current 58-cent tax. "We can't do without tax increases," Ryan said. The governor said his earlier proposal to triple the real estate tax when property is sold is "dying pretty fast."

Increased funding for the Corrections Department, although Ryan could still close some prisons to save money. House Minority Leader Lee A. Daniels, R-Elmhurst, said there is a commitment to keep open the Vienna Correctional Center, which Ryan had proposed closing earlier this year but since relented on.

An early retirement program to encourage state employees to leave the payroll. This would reduce the number of employees that would have to be laid off. Daniels said he did not know how many people would be laid off.

Selling off some of the rights to money that Illinois is due under the national settlement of a lawsuit against the tobacco companies. In return for giving up $600 million over 25 years, the state might be able to get $400 million for the coming year's budget.

"We are still in negotiations. I am still confident we'll be out of here by (Friday) night," Ryan said. "There are some very tough decisions that had to be made and it takes a lot of discussion. That's where we are, we are still discussing."

Daniels said the agreement provides for a "balanced budget," unlike the Wednesday plan that called for passing an inflated budget and letting the governor use his amendatory veto powers to bring total spending down to a level the state can afford. He also said he and House Speaker Michael J. Madigan, D-Chicago, were prepared to add $250 million to $260 million in spending to the budget and the governor might have to use his veto power to reduce the total.

Most of the details came from Daniels, who said "we made substantial progress today." After several false starts in the budget process this year, Ryan was less committal. He said the four leaders needed to take the proposals back to their rank-and-file members, although he said he still thinks it is possible for the Legislature to finish its business today.

Timing is a key. After midnight tonight, it takes 71 votes in the House and 36 votes in the Senate to pass a budget and any tax increases. Until then, it requires only 60 House votes and 30 Senate votes. Ryan and the legislative leaders want action at a time when fewer legislators have to cast potentially unpopular votes.

Madigan and Senate Minority Leader Emil Jones Jr., D-Chicago, said progress was made and the Legislature might be able to wrap up its work soon. "It is something that we possibly can work on to get the hell out of here (Friday.)," Jones said.

Senate President James "Pate" Philip, R-Wood Dale, left the meeting through a back door so he could avoid reporters.

Earlier Thursday, a different budget plan collapsed. It involved passing an unbalanced budget and leaving Ryan with the job of making unpopular cuts.

The plan was announced Wednesday evening, but several rank-and-file legislators said Thursday morning they would vote against it.

State Rep. Bill Mitchell, R-Forsyth, called the idea a "scam."

"We can't abdicate our responsibility to the executive," Mitchell said. He said people would not be fooled if spending were added to the budget that could then be eliminated again by Ryan.

State Rep. Mike Bost, R-Murphysboro, agreed. "It's our responsibility to pass a balanced budget, and not just to pass a bunch of spending out there without a revenue stream or anything like that."

-- Katherine Schott, Richard Goldstein and Nancy Chesley contributed to this story.

anthony.man@lee.net / 217-782-4043


Leaving it to George
Legislators to OK deficit, make Ryan cut budget
By DOUG FINKE and ADRIANA COLINDRES
STATE CAPITOL BUREAU
30 May 2002
Illinois lawmakers have decided to let George do it.
The General Assembly will send an unbalanced budget to Gov. George Ryan and let him use his veto to bring spending in line with revenue.
The strategy should allow lawmakers to conclude the session by Friday's deadline and deflect criticism of some of the budget cuts from them to the lame-duck governor.
The budget for the fiscal year that begins July 1 will spend more money than Ryan called for in a budget speech Monday. It will also raise fewer taxes than he outlined. Ryan called for a 50-cent-per-pack increase in the state cigarette tax, but Senate President James "Pate" Philip, R-Wood Dale, said it won't be that much.
"My guess is it will be closer to 35 cents," Philip said.
Ryan's plan to triple the real estate transfer tax is "down and wounded and may even be dead," Philip added.
The only tax hike that appears to be alive in its original form woul collect roughly $200 million from the riverboat casino industry. However, a corresponding plan to add gaming positions to four lucrative riverboats in the Chicago area is in limbo.
House Speaker Michael Madigan, D-Chicago, said the budget bill the House will pass today "will increase spending above the governor's level. I'm not sure of the exact amount."
"It's about $500 million. Just a little blip," Philip said sarcastically.
Between adding more to Ryan's spending plan and raising fewer taxes to support it, the budget that gets sent to the governor will be out of balance. Ryan can then use his veto to reduce an item of spending or wipe it out entirely. He cannot add revenue to the budget on his own, though.
"I made the statement, 'Send me a balanced budget, and if you don't, I'll use my veto pen," Ryan said. "I'm going to do what I think is best for the people of Illinois. If they send me a budget that has more spending in it than it's got revenue, I'll veto it."
Lawmakers can vote to restore cuts the governor makes, but that probably won't happen until the fall veto session, which will not take place until after the Nov. 5 election.
The General Assembly's plan provides political cover for legislators who can say they voted to fund certain programs and that it was the governor - who is not running for re-election - who eliminated them.
For example, Rep. Frank Mautino, D-Spring Valley, said the new budget will include money to keep open a number of state facilities, including the Zeller Mental Health Center in Peoria, Sheridan Correctional Center in LaSalle County and a Department of Corrections boot camp in Greene County. However, Ryan has already said he wants to close those facilities, and he can use his veto power to eliminate them from the budget.
Ryan wanted lawmakers to raise $590 million in new taxes to help balance the budget plan he presented Monday. But Senate Republicans are indicating they may only support tax hikes of $325 million. Philip said the difference can be taken out of the $850 million year-end balance Ryan built into his budget.
Philip also said there is an outside possibility some other tax could be increased besides cigarettes or gaming.
"If somebody has some other ideas that are not controversial and we can get away with, yes, but I haven't heard one yet," Philip said. "We've looked at everything there is to look at."
As part of his latest budget proposal, Ryan also called on lawmakers to pass an early retirement plan to ease the number of layoffs necessary to meet his goal of eliminating 6,500 jobs in the next budget year. Jobs that couldn't be eliminated through attrition or early retirement would be subject to layoff.
However, Madigan closed the door Wednesday on an early retirement incentive. With just two days left in the spring session, he said he doesn't expect the House will vote on such a plan.
The State Employee Retirement System estimated as many as 7,300 workers would take advantage of early retirement, although nearly half of those positions would have to be refilled. Still, backers of early retirement said the plan would save the state money and reduce the payroll.
During the administration of Gov. James Thompson, it was common for lawmakers to pass an unbalanced budget and let Thompson make cuts legislators could not bring themselves to make. The practice largely stopped under Gov. Jim Edgar, who wanted an agreement between himself and the four legislative leaders before a budget was adopted.
That stand helped push Edgar's first budget session a record 19 days into overtime. The impasse resulted in some state workers missing paychecks because there was no budget authorizing their payment.
There are fears a similar situation will develop if a new state budget isn't passed by Friday's deadline. After that, it takes a three-fifths majority to pass bills, making it much more difficult to round up sufficient votes to pass a budget.
Jeff Druchniak of the State Capitol Bureau contributed to this report. Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com and Adriana Colindres at 782-6292 or adriana.colindres@sj-r.com.
 

Teamsters official accepts Ryan appointment, loses job
 
By BERNARD SCHOENBURG
POLICTICAL COLUMNIST
30 May 2002
BENNETT KRAUSE, 44, of Sherman has been fired as the legislative liaison and business agent for Springfield-based Teamsters Local 916 because he accepted an appointment to a state panel that pays $15,000 annually.
Krause said he didn't seek the appointment, but was honored when Gov. GEORGE RYAN asked him to fill a labor position on the Department of Employment Security Review Board.
Someone else from Local 916 had been seeking the post, he said.
While he didn't reveal who the other person was, Krause said he had been asked to have legislators write letters on that person's behalf, and he did so.
But because he accepted the appointment to the review board, he said, Local 916 president TONY BARR gave him the option of resigning or being fired. Because he believes he did nothing wrong, Krause said, he would not resign.
Barr would not comment.
Krause was involved as a lobbyist in a big legislative victory for Local 916 last year. In August, the governor signed a bill allowing highway maintainers to retire after 20 years because of the dangerous nature of their jobs. Local 916 has about 4,000 members statewide. Krause is a former highway maintainer.
Krause said he's exploring his options, but has already lined up a client or two as a lobbyist.
A Republican, Krause is also a member of the Sherman Village Board.
Krause said his first meeting with the review board is Friday. SHARI KERTEZ, spokeswoman for the Illinois Department of Employment Security, said the panel meets about once a month and hears appeals of unemployment insurance claim decisions.
Krause's appointment expires Jan. 20.
Marovitz named
Other appointments recently made by the governor include former state Sen. BILL MAROVITZ, D-Chicago, to the Pollution Control Board, a seven-member panel that establishes environmental rules and acts as a court to rule on environmental cases.
Board members other than the chairwoman are paid $99,414 annually. Spokeswoman CONNIE NEWMAN said board positions are considered full time. The board has four meetings - two public sessions and two private sessions - each month.
Marovitz, 57, will start his three-year term July 1.
Marovitz has been on the Illinois Health Facilities Planning Board, which determines whether hospitals can be built or expanded. But that board, whose members are paid $150 per meeting day and expenses, with a $7,500 annual cap, is scheduled to go out of existence as of June 30, 2003.
Ryan first appointed Marovitz to the Prisoner Review Board, but Marovitz said he found out that "You'd have to be on the road hundreds of miles every day" for that job.
"I just said to the governor I wasn't prepared to do that."
He was then named to a Democratic seat on the Pollution Control Board, and the appointment was approved by the Senate.
Marovitz said he's known the governor since the mid-1970s, when both were in the House.
Despite the scandal involving Ryan's terms as secretary of state, Marovitz said, "I have a great respect for George," and they have agreed on a number of issues over the years, including an assault weapons ban.
During the election season of 1998, Marovitz, who then as now was vice chairman of the Democratic Party of Illinois, appeared on "Chicago Tonight" on WTTW-TV in Chicago and said he believed Ryan was properly handling allegations surfacing in his office.
Marovitz said this week that, back then, he was merely saying that Ryan and former Chicago City Treasurer MIRIAM SANTOS, who was running for attorney general but was engulfed in a criminal investigation, should be given "the benefit of the doubt." People, he said, should "let the judicial process play out."
Democrat Santos later pleaded guilty to mail fraud. Ryan has not been charged with any wrongdoing.
Marovitz is married to CHRISTIE HEFNER, chief executive officer of Playboy Enterprises Inc.
Other Ryan appointees already on the Pollution Control Board include THOMAS E. JOHNSON, brother of U.S. Rep. TIM JOHNSON, R-Urbana; and MICHAEL TRISTANO, former chief of staff to House GOP Leader LEE DANIELS, R-Elmhurst.
More Ryan appointments
Elsewhere on the list of recent appointments, ALMON A. MANSON JR., 52, of Springfield, a partner with the law firm of Brown, Hay & Stephens, was named to a nonsalaried job as a Republican member of the Illinois Housing Development Authority. His term is from June 1 through Jan. 13. The agency provides programs to make affordable housing available.
Of some interest is that the sponsor for Manson, as his local senator, is listed by the governor's office as Sen. LARRY BOMKE, R-Springfield. One of Manson's law partners is DON TRACY, the Democrat running against Bomke this November. Other partners include BILL TRAPP, Democratic candidate for appellate court, and TOM LAMONT, a Democratic member of the University of Illinois Board of Trustees. Lamont's wife, BRIDGET, is director of policy and development for the governor; the Senate has already approved her three-year appointment to the Educational Labor Relations Board, a paid job that begins Jan. 1.
The governor also reappointed Springfield's A.D. VAN METER JR. as non-salaried chairman of the housing development authority. Van Meter, the father of Sangamon County Board Chairman< B> ANDY VAN METER, will serve through June 10, 2005.
PAMELA DANIELS, wife of Lee Daniels, the leader of the state GOP and House Republicans, and JULIE CELLINI, wife of Sangamon County GOP treasurer BILL CELLINI, were reappointed to the non-salaried board of the Illinois Historic Preservation Agency. Julie Cellini chairs the board.
Also appointed to that board as new members were LONNIE BUNCH, president and director of the Chicago Historical Society, and ROGER TAYLOR, president of Knox College in Galesburg.
Watching the ads
Secretary of State JESSE WHITE's organ donor advertisements and Treasurer JUDY BAAR TOPINKA's similar paid ads for the Bright Start college savings program should be monitored or banned, a couple of state senators say.
Sens. KIRK DILLARD, R-Hinsdale, and TOM WALSH, R-LaGrange Park, for a couple of years have introduced bills intended to ban the use of taxpayer money for paid radio or TV advertising featuring constitutional officers.
"Taxpayer funding of advertisements which feature the politician as a predominant player would in some cases lend itself to excessive waste in the amount of ads that are run and give a politician a campaign advantage using taxpayer money," Dillard said.
He said public service announcements, for which air time is donated instead of purchased, would not be covered by his proposals.
Come election season, a politician involved in such advertising might decide that, "instead of buying 25 spots a week, let's buy 50."
Topinka's ads are paid for by a brokerage house, not the state, and Dillard said they fall into a gray area. He also was careful not to attack the goals of the current ads and he added that he doesn't believe White or Topinka have abused the ads.
"If you look at most states, they prohibit this activity, and in the future it could be problematic if you don't have two individuals who are as classy as Judy Topinka or Jesse White," Dillard said. "I mean, their ads are magnificent."
Walsh also said the programs White and Topinka are promoting are good, but he wonders if they might not pay more attention to some other office programs if they couldn't appear in the ads. He said they also might even consider different means of marketing the programs.
Not surprisingly, none of the legislation has made it to the Senate floor.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Ryan adviser pleads not guilty to kickbacks
 
By Ray Gibson
Tribune staff reporter
May 30, 2002
A member of Gov. George Ryan's inner circle of political advisers pleaded not guilty today to federal charges of contract fixing, kickbacks and extortion in the secretary of state's office.
Lawrence E. Warner entered his plea during an arraignment hearing in the Chicago courtroom of U.S. District Judge Rebecca R. Pallmeyer. Warner, 64, was indicted May 21 on charges he pocketed nearly $3 million in kickbacks and illicit profits while his friend, Ryan, was secretary of state. He is free on bond pending his next court appearance on June 14.
Also today in court, Warner's lawyer, Ed Genson, agreed to an order extending a freeze on $640,000 in his client's assets. Pallmeyer last week froze four of Warner's bank accounts at the government's request. Prosecutors have said if Warner is convicted, they intend to seek forfeiture of $2.8 million in allegedly ill-gotten proceeds from the nine-year scheme.
Outside court, Genson vigorously defended his client.
"When you go through the facts in this case, you'll find he didn't violate the law," the attorney said. "He did nothing wrong here."
The indictment alleged Warner used his high-level connections to get the secretary of state's office to lease buildings he secretly owned. The defendant also was charged with steering lucrative contracts for license plate stickers and digital licenses to vendors he shook down for payoffs, sharing the proceeds with a high-level secretary of state official that prosecutors declined to identify.
Also charged last week were Donald Udstuen, 58, an influential player in Republican state politics who was accused of sharing in the kickbacks, and Alan A. Drazek, 61, who is alleged to have used his direct mail company to disguise the illegal payments.
Drazek, a Ryan appointee to the CTA board, pleaded not guilty Tuesday to a tax fraud charge. Udstuen is cooperating with authorities and is expected to plead guilty.
The Operation Safe Road federal investigation into corruption in the secretary of state's office so far has yielded 51 indictments and 43 convictions. Gov. Ryan has not been implicated in any wrongdoing.

RYAN GIVEN FINAL APPROVAL: UNBALANCED BUDGET TO PASS; FOOD SERVICE STAYS IN STATE CONTROL
 
BY ANTHONY MAN
SPRINGFIELD BUREAU
Wed May 29 2002
 
SPRINGFIELD -- Legislative leaders have decided to throw in the towel on passing a balanced state budget.
The scenario outlined Wednesday calls for passing a spending plan that adds back many of the cuts Gov. George Ryan said were needed to balance the budget, adjourning for the summer, and allowing Ryan to use his executive powers to decide what to spend and what to cut.
Speaker Michael J. Madigan, D-Chicago, said a vote on that approach would take place today in the House. He predicted it would pass there and in the Senate. The plan could be $500 million higher than the $22.45 billion general-fund budget Ryan said the state could afford.
Still unresolved, Madigan said, is what tax increases would be implemented to pay for the budget that Ryan fashions. A cigarette tax increase, though not as large as the 50 cents a pack requested by the governor; a tax increase on riverboat gambling operators, and ending an automatic business tax reduction probably would be enacted.
He said there was too much opposition to Ryan's proposal to triple the real estate transfer tax that people pay when buying property, so he does not expect that as part of the tax package.
Madigan said the budget plan would not allow for privatization of food and commissary services at state prisons. He said some of the prison boot camps and work camps that Ryan wants to close would be kept open and some would close, but he offered no specifics.
He said there would be no provision for early retirement for state employees. He said any layoffs would depend on how Ryan finally shapes the budget.
The scenario outlined by Madigan and House Minority Leader Lee A. Daniels, R-Elmhurst, is similar to the way state budgets were created under former Gov. James R. Thompson. During the Thompson years, the Legislature regularly passed inflated budgets. Thompson would then pick and choose among the appropriation lines, deciding which ones to reduce and which to eliminate entirely.
The Illinois Constitution gives that authority to the governor. His decisions go into effect when the fiscal year starts July 1 and stand unless the House and Senate vote to restore the money.
This approach, and the decision of both political parties to work together, will allow the Legislature to pass a budget that restores some politically painful cuts even though everyone knows the governor will implement them later. For example, Madigan said the budget would include funding to keep open the Sheridan Correctional Center, which Ryan said Monday should be closed to save money. Legislators representing Sheridan can claim victory, and Ryan can cut the money later.
"The governor has told me and he has told others that he's going to act responsibly in terms of how he exercises his authority, but that he will balance the budget," Madigan said. "When it's all finished, when the whole process is finished you ask, Is the budget balanced? And the answer will be yes."
Madigan and Daniels were both legislative leaders during part of the Thompson administration, and Ryan was lieutenant governor for eight of Thompson's 14 years, so all three have intimate knowledge of how the system worked.
Daniels said it would be better if the Legislature continued the approach started under Thompson's successor, former Gov. Jim Edgar, and continued during the first three years of the Ryan administration. That involved negotiating the budget so legislators knew what would be included when they left Springfield.
He said he is going along with this process because Ryan asked him to work it out with Madigan.
Under the Thompson approach, it could be weeks before Ryan makes a decision and legislators would not have a chance to vote on restoring any reductions until the post-election fall legislative session. Past gubernatorial reductions and eliminations were rarely restored by the Legislature, although it happened occasionally.
Ryan, Madigan and Senate President James "Pate" Philip, R-Wood Dale, are anxious for quick action. Until midnight Friday, budget or tax increases require 60 votes in the House and 30 votes in the Senate. After that deadline, the constitution requires 71 votes in the House and 36 in the Senate, making it more difficult to win passage of politically painful legislation.
The decision to pass an unbalanced budget makes an on-time adjournment more likely. "We're on a path where we can adjourn Friday," Madigan said.
anthony.man@lee.net / 217-782-4043


 
s

SENATE APPROVES BUDGET PROPOSAL
 
BY NANCY CHESLEY and ANTHONY MAN
SPRINGFIELD BUREAU
Wed May 29 2002
 
SPRINGFIELD -- The Illinois Senate voted 30-26 Tuesday night to approve a slightly modified version of Gov. George Ryan's new state budget proposal. After more than an hour of debate, most Republicans voted for the plan and most Democrats voted against it.
"This is a tough budget, but it's time for us to quit with the rhetoric and do the tough stuff," said state Sen. Steve Rauschenberger, R-Elgin, chairman of the Appropriations Committee.
He dismissed a Democratic alternative as something that had "no visible means of support" and called it the Playtex Living Bra of budget amendments."
Most of the $22.45 billion plan duplicates what Ryan asked the Legislature to approve in an unusual Memorial Day speech to the House and Senate. However, the Republican majority in the Senate made 27 changes, many of which may not survive in the Democratic controlled House.
Rauschenberger told colleagues the changes removed most of the new programs and expansions proposed by the governor. While the new programs were worthy, he said the state couldn't afford them this year.
"We're paying our mortgage payment before we go to the movies," Rauschenberger said.
The biggest reduction was $65 million from the Chicago teachers pension fund, although the plan contributed $40 million to the retirees' health insurance.
One of the biggest increases was $25 million for the Department of Corrections. That money was not earmarked for a specific cause, but sponsors said it would give the agency "management flexibility to maintain facilities (and) review privatization."
Legislators of both political parties have opposed Ryan's plan to have private companies run food and commissary services in state prisons.
Ryan also has tried to save money by closing prisons. In February, he said he wanted to close Vienna Correctional Center. In Monday's speech, Ryan credited the strength of Southern Illinois lobbying with keeping Vienna open.
The plan advanced by the Senate was a Republican product that added $136 million to some parts of the governor's proposal and cut $136 million elsewhere. Democrats on the Senate Appropriations Committee protested the quick action Tuesday and their lack of input.
nancy.chesley@lee.net / 217-782-4043
anthony.man@lee.net / 217-782-4043

 

House members grill officials about agencies' budgets

By ADRIANA COLINDRES
STATE CAPITOL BUREAU
29 May 2002

Illinois House members spent more than 12 hours Tuesday interrogating top state officials about their agencies' proposed budgets, a process that sounds tedious to the layperson, but generally earned praise from the lawmakers.

That's because in recent years, rank-and-file legislators haven't had much opportunity for an in-depth examination of the proposed state budget.

Typically, the governor and the top four legislative leaders negotiate the spending plan. Rank-and-file members of the General Assembly are briefed on the budget document, which can be inches thick, just hours before voting on it.

But it wasn't always that way. During the administrations of Govs. Jim Thompson and Dan Walker, lawmakers considered separate budget bills for virtually every state agency, said Charlie Wheeler, a former Chicago Sun-Times reporter who has studied state budgets for about 30 years.

Half of the budget bills originated in the House and half in the Senate. Lawmakers offered floor amendments to alter the bills, which could be debated one at a time.

Because of the state's present budget crisis, the House met Tuesday as a "committee of the whole" and engaged in a question-and-answer session with top officials in Gov. George Ryan's administration. They included the director of the Department of Corrections, the secretary of the Department of Human Services and the interim state school superintendent.

"It does serve a good purpose," said Rep. Joe Lyons, D-Chicago. "You can pick up some good information here."

"The members can't complain they didn't get their opportunities," he added. "(But) they may complain about the timing of it."

Rep. Keith Sommer, R-Mackinaw, said starting an in-depth budget examination in February or March would provide lawmakers with a better understanding of the budget and help them make wiser decisions.

"I've learned a lot sitting and listening (Tuesday)," he said. "I think it's a great process."

Rep. Raymond Poe, R-Springfield, said he likes the process as long as "it's fair to both parties." He said he hopes the close-up look at the budget doesn't turn out to be merely an exercise in political posturing.

While lawmakers gave good reviews to the Tuesday session, they did cite one hang-up. The House was still quizzing agency directors late Tuesday night.

"It just makes for a very long day," said Rep. Gwenn Klingler, R-Springfield.

Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.

 

Group hopes to save several downstate institutions
 
By ADRIANA COLINDRES
STATE CAPITOL BUREAU
29 May 2002
A group of downstate lawmakers is expected today to unveil a plan designed to prevent the closure of Zeller Mental Health Center in Peoria, Sheridan Correctional Center in La Salle County and a Greene County boot camp.
State Rep. Frank Mautino, D-Spring Valley, said Tuesday that he and several other legislators also will propose legislation to restore Lincoln Developmental Center at its current size and perhaps put a Hanna City work camp back in the state budget.
The legislation also will call for reversing planned budget cuts affecting Singer Mental Health and Developmental Center in Rockford and the Illinois Youth Center at Valley View, which is a Department of Corrections facility for juvenile offenders.
Gov. George Ryan's new budget blueprint calls for various cuts in state spending, including closing some facilities and downsizing others. The new budget year starts in July.
Mautino said his legislation to reinstate some facilities would cost about $50 million. To finance those budget restorations, the lawmakers will push a plan to change the way the state pays private nursing homes that care for people with mental disabilities.
The restructuring will free up almost $40 million in state general revenue funds, and that money can be used to attract about $20 million in federal matching dollars, Mautino said. In all, the state will have $60 million to cover the costs of saving the facilities from the budget chopping block.
"It takes care of a good portion of central and downstate Illinois," Mautino said. "That's what our members were interested in."
However, he acknowledged, it's uncertain whether such a proposal can pass and be enacted as part of the final budget agreement.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

Philip says he'll pay for Navy Pier party
 
BY DAVE MCKINNEY, FRAN SPIELMAN
AND TIM NOVAK STAFF REPORTERS
May 29, 2002
 
 

SPRINGFIELD--More than two years have passed since Senate President James "Pate" Philip and 83 of his high school classmates were regaled, at no charge, at a Navy Pier party that cost more than $14,000.
But it took only one day after Philip's freebie became public before the powerful Wood Dale Republican offered to repay the agency that runs Navy Pier for hosting the 1949 York High School 50th reunion.
The Chicago Sun-Times reported Monday that Philip asked Navy Pier to arrange a cocktail party for him, his brother and their classmates that wound up being much bigger than that--entirely at government expense.
Speaking publicly about the event for the first time, Philip on Tuesday downplayed the party and described it as an opportunity to showcase Navy Pier to out-of-town classmates who might not otherwise have sampled the city's tourism draws.
Asked if he intended to pay for the party, Philip said, "If they send me a bill, I absolutely will pay for it." When pressed whether he planned to ask for a bill, he said, "I haven't asked for it, but I will."
The event featured a big-band orchestra, a capella singers, corsages, table linens in York's green and white school colors and a dinner menu that included crab-stuffed mushrooms, jumbo shrimp cocktail, golden coconut chicken fingers and other gourmet items.
"I'm not sure I'd classify it as feeding at the trough. I think it's a big to-do about nothing. They do it for every . . . not everybody, but they do it for a lot of people . . . other than myself," Philip said. "I didn't request all of that. All I wanted was a tour of Navy Pier."
While Navy Pier does occasionally arrange tours for out-of-town dignitaries, Philip acknowledged he was "happily surprised" at how McPier CEO Scott Fawell arranged much more than that after Philip sought his help in September 1999.
Despite Philip's pledge to seek an invoice and repay the Metropolitan Pier and Exposition Authority for the party, he faced a wave of criticism from Democrats that included Mayor Daley and from his Senate Republican caucus.
"People are alarmed at it. You can't have private parties. Public money can't be spent for private parties," the mayor said.
When asked if he thought McPier's freebie for Philip was inappropriate, Daley responded, "I think it is. I mean, every politician would be asking to have a birthday party. There would be a lot of money. I love my birthday, but give me a break. I wouldn't ask for something like that. It's inappropriate. It really is inappropriate. You have to treat everyone as a citizen."
In Springfield, where the state's budget woes are the main focus, Senate Democrats seized on Philip's two-year delay in offering to repay McPier.
"I don't think you should use taxpayers' money for class reunions. That's kind of absurd," said Sen. Patrick Welch (D-Peru), an assistant Senate minority leader.
"If I had a party, I would have paid for it myself," said Sen. Debbie Halvorson (D-Crete). "I wouldn't have waited for after the fact. I would have made sure all of that was covered beforehand."
On the Republican side, some of Philip's allies who in the past have criticized financial abuses at McPier were not willing to stick their necks out publicly about the latest disclosure. But one Republican senator, who asked that his name not be used, said of Philip, "This is crazy. He ought to pay it in a minute."
Philip said he had not decided whether he would pay for the party out of personal funds or his campaign fund. He said he would make that decision when he gets a bill.
Philip acknowledged that "an average Joe" probably would not have had the clout to call up Fawell and, in the end, get a $14,000 party free of charge. "That's probably true. But it was a class reunion. There were 84 people, a lot of people from out of state, a lot of people from Downstate who have moved. I asked for a tour of the pier. I got a little more than a tour, quite frankly. I was happily surprised when I got down there," he said.

Get budget deal done by Friday

OUR OPINION
State Journal Register
29 May 2002

 

WE ARE NOT 100 percent sure why Gov. George Ryan decided to bring the General Assembly back to town on Memorial Day evening. But if it was to dramatically drive home the message that he is serious about getting a budget deal and getting the legislators out of Springfield by the end of the week, then we say, "Bravo!"

Future governors should start much earlier in the legislative session. They should consider calling the legislators to their seats on New Year's Day, Martin Luther King's birthday, Presidents Day, Easter and every other Sunday just to remind them that they have a job to do and that they need to start doing it in a deliberative and timely fashion.


WE WON'T hold our breath for that utopian vision to come true. We will, however, urge the General Assembly to complete its work this week. If a budget deal is not completed by midnight Friday, there is a good chance a budget won't be completed for a long time.

That's because after Friday, May 31, it will take an extraordinary majority to pass the budget. That means relatively small blocks of legislators with narrow interests can wield excessive power - or at least become major stumbling blocks - as their votes are sought for a three-fifths majority.

If we believed that going beyond the normal session deadline would allow for the crafting of a better, more compassionate and equitable budget, we'd be happy for the General Assembly to go ahead and take as much extra time as it needs to get its work done.


UNFORTUNATELY, a better budget would not be the result of blowing the Friday deadline. Instead, it would mean even more petty, political bickering, more wasted time and, in the end, a budget that most likely would not vary much from what Gov. Ryan outlined on Monday night.

We believe Ryan was correct in saying that there is no support for raising $2 billion in taxes nor any support for making $2 billion in cuts.

Many lawmakers have bemoaned laying off a large number of state workers and making serious cuts to important programs and services. Yet no serious attempt has been made to increase the only two taxes with the potential to avoid deep cuts - namely the state sales tax and income tax.

Raising either the sales or income tax is a political nonstarter, especially in this, an election year. More importantly, we could not support a permanent general tax increase to solve a temporary problem. As serious as the budget problems are, the fact is that they will be largely self-correcting as the economy rebounds.


BUT UNTIL that natural healing takes place, measures must be taken to get the state through these troubled times. Ryan has laid out his vision of how to do that, including big tax increases on cigarettes and casino profits as well as thousands of state worker layoffs. He also wants to borrow $1 billion to pay overdue bills to private companies. Approval for this borrowing is needed from the treasurer and comptroller. We urge them to do so. The last thing Illinois needs now is for small businesses to be forced under because the state would not pay them for services rendered.

Legislators must remember as they cobble together the budget that it is the private sector, not the public sector, that is the economic engine for Illinois. And that engine needs to keep running to get us all out of this economic mess.

Ryan has urged legislators to make improvements on his budget document but to do so with honesty and not "smoke and mirrors." We'd be interested in improvements too, but we see no painless way out. And that pain would only be exacerbated by going beyond Friday's deadline.

 


IN VIENNA, CAUTION IS MIXED WITH JOY OVER BUDGET PLAN
 
BY JEFF SMYTH
THE SOUTHERN
Wed May 29 2002
VIENNA -- An emotional roller coaster ride that began with Gov. George Ryan's February call to close Vienna Correctional Center ended on a high note when he unveiled a new budget plan Monday evening that included funding for the facility.
   The change of course saved 350 jobs in a region where opportunities are few. Despite the news, people in Vienna were reserved in their reaction Tuesday. Some had not even heard it.
"I'm ecstatic about the news but I'm sorry for what people here had to go through," Johnson County Circuit Clerk Neal Watkins said. "There has been much unneeded pressure put on families. It has been a roller coaster ride."
Ryan eliminated the $30.3 million operating line item from the budget he delivered to the General Assembly last winter. The move galvanized the region as prison employees, citizens and politicians joined forces to fight to keep it open.
Rallies were held in Vienna and Springfield as demonstrations of unity, a lawsuit was filed to block early closure of the prison and legislators were pressured to get Ryan to change his mind.
The voices were clearly heard as support for keeping the prison open grew. Both gubernatorial candidates, Republican Jim Ryan and Democrat Rod Blagojevich, vowed to reopen it if elected, the House overwhelmingly passed a resolution supporting the prison and Senate President James "Pate" Philip, R-Wood Dale, visited Vienna and said no budget would clear his desk that didn't include its funding.
"I think (the politicians) thought this was just one little community in Johnson County and who cares if it closes," said Dean Harper, who worked at the prison for 21 years before retiring. "But this was about seven counties and we fought together as a region."
Jim Price was getting his hair cut at George Wells' barbershop on the Vienna town square Tuesday afternoon when he was told the prison will remain open.
"This is a close-knit area and everyone worked together on this," Price said.
Robert Ames has been a guard at Vienna for 17 years. He said the mood among employees was positive but restrained, as some still face layoffs under the new budget plan.
"Everyone is upbeat now but they are on a roller coaster high," Ames said. "Many people are still skeptical. They don't trust Ryan."
Debbie Lippincott, a staff representative for the American Federation of State, County and Municipal Employees, shared Ames' bittersweet emotion.
"It's relief coupled with frustration," she said. "We did not intend to save these jobs so we could devastate another community. It has taken months for Vienna to accomplish this and they (LaSalle County residents) have only days to save their jobs.
Jim Hodges, owner of Hodges Furniture, welcomed the news but isn't ready to take down the red "Save Vienna Prison" placard that hangs in his storefront window.
"Let's see the money first," Hodges said.
 

Pate Philip's free class reunion
BY TIM NOVAK
STAFF REPORTER
May 28, 2002
 
Illinois Senate President James "Pate'' Philip had a simple request: Could Navy Pier throw something together--on five days notice--to help him, his brother and their high school classmates celebrate their 50th reunion? Philip (R-Wood Dale) called Scott Fawell, chief executive of the government agency that runs Navy Pier, who ordered the staff to whip up a cocktail party for 85 people on Sept. 11, 1999. And the staff delivered: * Seven kinds of gourmet hors d'oeuvres. * A capella singers. * A big-band orchestra. * Corsages, boutonnieres and floral centerpieces. * An electronic sign welcoming the York High School Class of 1949. * Table linens in green and white--the school colors. * Gift bags with coffee mugs, Frango mints and printed cards that said: "Compliments of Senator Pate Philip.'' All of it at government expense. Fawell decided that the bill for Philip's reunion would be covered by the Metropolitan Pier and Exposition Authority, the agency nicknamed McPier because it runs Navy Pier and McCormick Place. If Philip had paid for the party, the bill would have been at least $14,670, not including rent for the room at Navy Pier. The only free parties at Navy Pier are supposed to be those that promote the pier, according to McPier spokeswoman Marilyn Gardner. But people with clout have hosted free or discounted parties at Navy Pier and McCormick Place. McPier Board member James Bolin, for example, has hosted five free parties for his family and friends in the last four years. McPier Board Chairman Kelly Welsh said he was unaware that Philip got a free party from Fawell until a reporter called. "Obviously, this raises serious questions about potential violations of our policy and will be addressed by the board at our next meeting,'' said Welsh, who was appointed by Mayor Daley. It will be up to the 13-member board to decide whether to bill Philip for the party, Welsh said. It's not clear why Fawell didn't send Philip a bill. Fawell didn't respond to requests for comment. He is on a paid leave of absence from his $195,000-a-year job after being indicted last month on racketeering charges, accused of using state resources to help elect Gov. Ryan in 1998. Following that election, Ryan appointed Fawell to run McPier. "Pate never asked for a freebie,'' said his spokeswoman, Patty Schuh. "They never gave him a bill. Certainly if they sent him a bill, he would pay for it.'' But it's Philip's understanding that the pier routinely covers the costs of parties thrown by business and community leaders "to showcase the facility and the city,'' Schuh said. "A lot of his classmates are from out of town. Many of them are suburbanites who don't come downtown. Maybe they will after the reunion." Philip and his classmates, including his brother Art, the chairman of the Illinois Toll Highway Authority, had scheduled a boat tour at Navy Pier as part of their three-day, 50th-reunion celebration. Since they were going to be at the pier, Schuh said Philip called Fawell and asked, "What's the pier got?'' Like Philip, Bolin, the McPier board member, said he thought the five cocktail parties he hosted for his family and friends were a way to promote the pier, giving McPier officials a reason to pick up the tab. Bolin has been on the McPier board for 12 years. A vice president of Merrill Lynch, he is House Republican Leader Lee Daniels' stockbroker. "It was always my opinion that we were doing a promotional thing, trying to get people to use the pier,'' Bolin said. "What I thought was: I would throw a couple of cocktail parties. I had people there that I thought could bring us business. I've known these people for 30 years. They were people of significant wealth who I thought could bring in business. I never thought this wasn't appropriate.'' Bolin hosted Christmas parties at Navy Pier each of the last four years and a summer barbecue on the pier's roof last July during the lakefront fireworks display. Bolin had 30 guests at his barbecue, including family members. Asked by a reporter to identify the guests who have attended his parties, Bolin declined. A few minutes later, he called back, saying he decided to pay for the parties, which McPier officials said cost at least $3,864. At McCormick Place, McPier officials say they have provided free rent to state Rep. Lou Jones and Sen. Margaret Smith, both Chicago Democrats, for parties they hosted. Jones also got a 50 percent discount on the food.
 

Commends the
governor on timing
 
28 May 2002
 
To the editor:
It is altogether appropriate
that Gov. George Ryan chose Memorial Day to call the Illinois General Assembly into an unprecedented special session for discussion of our state's budget crisis.
Mer all, on a day Americans everywhere pause to'honor the veterans who put our nation's interest first, legislators were being asked to put personal and partisan interests aside in pursuit of the public good.
..We commend the governor's direct approach and appeal to what President I1ncoln called "the better angels of our nature." And while we accept the challenge to face this budget crisis headon, we reserve the right to disagree when any plan causes unnecessary injury to our constituents.
As legislators from different chambers and different political parties, we do not always agree on directions in state
spending and income. On much, we do agree.
It is not responsible to slash spending inessential health care and educational programs while at the same time new and costly programs are proposed. It is not responsible to contemplate tax and fee increases at a time when the state's "rainy day fund" and projected yearend balance are adequate to meet a large part of the budget shortfall. It is not responsible to raise ~es and fees when further budget reductions can be achieved.
And finally, and of vital importance to our constituents, we must oppose and reject any effort to close prison boot camps and privatize food service in our state's correctional institutions.
Boot camps, such as our own Greene County Impact Incarceration Program, have proven success in the rehabilitation of first-time offenders. . Moreover, this camp is an important employer in a region that has known more than its share of economic downturns.
Privatization of our state's
prison food service is a concept that the General Assembly has already rejected for one simple
reason: It does not work.
Studies show no significant savings to prison budgets. And in our opinion, the employment of unskilled workers in ourprisons will place all Department of Corrections staff at greater'risk of injury or death.
Now is the time to act responsibly during the final moments of this General Assembly session. We may vote differently on th e final budget resolution. But we will stand together in working to ensure that our constituents are treated fairly;
This budget crisis came about as the result of a cowardly terrorist attack that damaged our nation's economy. But the downturn is temporary, and it is incumbent upon this legisla
ture to adopt a budget that will adequately prepare us for an economic recovery that is just around the corner.
Sen. Vince Demuzio D - Carlinville
Rep. Jim Watson R-Jacksonville

Governor revises budget proposal
Plan includes additional state job cuts, higher taxes
 
By DOUG FINKE
STATE CAPITOL BUREAU
28 May 2002
 
Gov. George Ryan made his pitch Monday for ending a state budget stalemate through a combination of higher taxes on cigarettes and gambling and cutting even more from the austerity budget he proposed in February.
Included in the governor's plan would be the elimination of an additional 2,700 state jobs through a combination of layoffs, attrition and early retirements. That brings to 6,500 the total number of state positions Ryan wants to eliminate.
Ryan's last-ditch budget relies on lawmakers raising the cigarette tax by 50 cents per pack, tripling the real estate transfer tax and taking more from riverboat casino revenues.
He also called for borrowing $1 billion to speed up payment of state bills. That plan would need approval from Comptroller Dan Hynes and Treasurer Judy Baar Topinka.
Ryan laid out his plan in a 36-minute speech to lawmakers in an extraordinary joint session of the General Assembly held on a national holiday.
"This budget is a tough proposition for you to accept," Ryan told lawmakers, who sat in silence throughout the speech. "But the alternatives before you - stalemate, deadlock and inaction - are worse for the people of this state. Now is the time to remember why you entered public service. Now is the time to decide."
However, the plan drew mixed reviews even from the legislative leaders, who have been part of budget negotiations throughout the spring. Senate President James "Pate" Philip, R-Wood Dale, said he thinks both the cigarette and real estate transfer tax proposals are too high.
"I would say some of them are excessive," Philip said.
Even so, Philip said he hopes the Senate will vote on Ryan's plan as early as noon today.
House Speaker Michael Madigan, D-Chicago, called Ryan's plan "a very sound blueprint."
"All of the ideas (Ryan) suggested are good, solid ideas," Madigan said.
All, that is, except an early retirement proposal for state workers. Ryan said an early retirement plan would reduce the number of layoffs necessary to reach his target of eliminating 6,500 jobs. Such a plan passed the Senate last week, but Madigan said that's as far as it will go.
"I don't expect it's going to be considered by the House," Madigan said. "It's going to cost the pension systems in the neighborhood of $300 million to $500 million. It's not going to be free."
The American Federation of State, County and Municipal Employees blasted Ryan's proposal because it calls for laying off more than 400 Department of Corrections sergeants, privatizing prison food service and closing the Sheridan Correctional Center as an alternative to closing the Vienna Correctional Center. AFSCME Council 31 Executive Director Henry Bayer said Ryan "picked Sheridan out of a hat."
"We shouldn't be talking about closing any facilities," Bayer said. "For state employees, it is more of the same. He is talking about laying off front-line workers."
Ryan singled out AFSCME and the Fraternal Order of Police for particular criticism in his speech.
"Everyone else in state government has cooperated and helped to solve our mutual problem, everyone but the leaders of AFSCME and the FOP," Ryan said. "They would rather have some of their members laid off than make concessions to keep all of their members working."
At the same time, Ryan said lawmakers have engated in "classic election-year pandering" over proposed budget cuts.
"You've all made it abundantly clear what you oppose - cutting programs, closing facilities, laying off employees," Ryan said. "But while running to the courthouse or a press conference to stymie our abilities to solve the state's budget crisis, you often fail to offer your own alternatives."
Ryan said he was forced to make a second budget speech because traditional negotiations between himself and the four legislative leaders were going nowhere.
"The clock is running here," Ryan said. "If you think it's difficult to do this job now with a simple majority, try to do it with a (supermajority)," Ryan said.
If a budget isn't approved by midnight Friday, it will take a three-fifths vote of the General Assembly to pass a new budget.
"Overtime sessions have the potential for getting out of hand," said Ryan's budget director, Steve Schnorf. "The more you need people's votes, the more they hope to get for their districts."
Ryan used his speech to defend his administration against charges of overspending or mismanagement. He blamed the Sept. 11 terrorist attacks for sending the state and national economy into a tumble that resulted in the state collecting less tax revenue this year than last. That hasn't happened in 50 years.
Most experts agree the terrorist attacks made the economic situation worse, but say the recession that robbed the state of tax revenues was well under way before Sept. 11.
Doug Finke can be reached at 788-1527 or doug.finke(at)sj-r.com.
 

Proposal would cut 6,500 jobs
Area lawmakers express mixed reactions to plan
 
By DEAN OLSEN
STATE CAPITOL BUREAU
28 May 2002
Gov. George Ryan's budget proposal would eliminate 6,500 state jobs, including reducing services at agency headquarters in Chicago and Springfield.
Some of those proposed cuts, however, would be accomplished through attrition and a proposed early retirement program for state employees. Others would come through elimination of 400 sergeants in the Department of Corrections and privatizing prison food services.
Ryan's new budget outline would close 11 local offices run by the Illinois Department of Human Services, including one in Winchester. It also would close the Greene County prison work camp.
The governor's plan also would cut $18.3 million by reducing Human Services central offices in Chicago and Springfield. Ryan aides said most of those cuts would come in job reductions, but details were not available.
Savings of $40 million would be achieved through reductions in "central operational costs" in Chicago, Springfield and regional offices connected with the state departments of Public Aid, Transportation, Commerce and Community Affairs, Natural Resources and State Police.
Three Springfield-area legislators had mixed reactions Monday to Ryan's budget plan, but they all said they could accept at least something he proposed.
"I think it's a bold effort on his part," Sen. Larry Bomke, R-Springfield. "But whether we can live with the budget cuts .. . it's hard to say."
Ryan criticized some lawmakers for backing efforts by state government's largest union to block budget cuts. He didn't identify any legislators by name, but Bomke presumably was among them - he joined the American Federation of State, County and Municipal Employees earlier this year in suing Ryan to block the downsizing of Lincoln Developmental Center.
"The governor has every right to be critical," Bomke said. "There have been a few critical of him over the last several months."
Bomke and Rep. Gwenn Klingler, R-Springfield, said they were encouraged by Ryan's proposed continuation of the state's school construction grant program. About $1 billion in requests for money are pending from school districts statewide, including from schools in Rochester and Athens.
The $1 billion in proposed borrowing for the program would be funded through part of Ryan's proposed 50-cent-a-pack increase in the cigarette tax. But Bomke said he was unsure he could support the tax increase.
"Cigarette smokers have been beat pretty hard," he said. "That may be a little hard to swallow."
Bomke said he was disappointed that Ryan still backs a plan to lay off many unionized food-service workers in Illinois prisons and replace them with private firms.
Bomke, Klingler and Sen. Vince Demuzio, D-Carlinville, said they could back Ryan's proposed increase in taxes on riverboat casinos. In fact, Demuzio said he doesn't suspect much opposition to Ryan's proposed tax increases in the Senate.
The budget still includes $1.5 million to operate the Abraham Lincoln Presidential Library and Museum in Springfield from its scheduled opening on Nov. 18, 2003, through June 30, 2003.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

 


Ryan address met with cold response

 

By BERNARD SCHOENBURG
POLITICAL WRITER
28 May 2002

What if you gave a speech and nobody clapped?

For the first time in at least a very long time Monday night, a governor of Illinois speaking to a joint session of the General Assembly got a chance to find out.

While Gov. George Ryan got the obligatory standing ovations on the way in and out of the House chamber, Ryan's extraordinary second budget address was otherwise delivered to a stone-faced bunch of lawmakers. For about a half hour, there wasn't a sound except from the governor.

Among the notable critics was Ryan's lieutenant governor, who said she considered elements of the budget political retribution.

As if it wasn't bad enough for legislators to be called in on a holiday weekend, they had to listen to strong language from the embattled governor.

Ryan accused "even a few of my Republican colleagues" of "classic election-year pandering" in joining with unions that have "run to the courthouse" to block budget cuts.

"They've decided election-year politics is more important," Ryan said.

"Governing is about doing what's right," the governor said.

One observer called it "kind of surreal" to be reminded of the nobility of public service from a governor engulfed in scandal. Just last week, some of Ryan's longtime friends were accused by federal prosecutors of extorting millions of dollars from state contractors.

But Ryan has not been charged with any wrongdoing, and he's still got the power of the governor's office. That means, until he leaves office in January, he controls the state budget.

That power has generally kept members of the legislature among his public supporters. In past appearances, he has been met by enthusiastic response, even as other parts of the Operation Safe Road federal scandal became public. In turn, Ryan, a legislative veteran himself, has praised lawmakers as one of their own.

But the strain of the budget process this year was evident in his tough words Monday.

"It was not an attempt to lecture them," Ryan said after the speech, "but more of an attempt to make them understand how serious this situation is, and I think it worked."

Ryan also invited lawmakers and others to the Executive Mansion later Monday to, as he told reporters, "have a buttermilk." The real stuff being served - probably with a bigger kick than dairy products - may have helped soothe any hurt egos.

Rep. Ron Wait, R-Belvidere, said he didn't mind the tone of the governor's speech.

"We've got thick skin," Wait said. "We've heard worse from our opponents."

Sen. Frank Watson, R-Greenville, said response to the speech in the chamber reflected "the difficult time. ... With the cuts, I mean, no one's happy about what we're having to do."

And Watson said that after the governor finished defending what he's done about the budget, his proposals made for a "great speech."

Lt. Gov. Corinne Wood didn't have the same reaction.

Wood said that it wasn't until a briefing for constitutional officers an hour before the governor's speech that she got details of Ryan's new budget proposal.

Although she was still trying to confirm some elements late Monday, she understood that $1 million - just about all of the current year's budget - is being cut from the Main Street program for redevelopment of downtowns. She heads the council that runs the program for more than 55 communities, including Springfield.

She said the $250,000 general fund contribution to a breast and cervical cancer research program named for former Sen. Penny Severns, D-Decatur, who died of cancer, was also cut. Wood herself is a cancer survivor. The governor earlier cut funds for an Illinois River watershed improvement program championed by Wood.

"Unfortunately, we have political retribution on our minds more than what the priorities of our state should be," Wood said.

The cuts couldn't be independently confirmed late Monday.

Lest we forget, Wood was a candidate for governor this year, and the tone of that campaign caused the governor to say at one point that none of the GOP candidates would be great for the office.

We've come a long way since 1998. And this week will tell if Ryan's bold move to call in lawmakers on a holiday for a scolding will have accomplished his purpose: getting a budget passed.

That power has generally kept members of the legislature among his public supporters. In past appearances, he has been met by enthusiastic response, even as other parts of the Operation Safe Road federal scandal became public. In turn, Ryan, a legislative veteran himself, has praised lawmakers as one of their own.

But the strain of the budget process this year was evident in his tough words Monday.

"It was not an attempt to lecture them," Ryan said after the speech, "but more of an attempt to make them understand how serious this situation is, and I think it worked."

Ryan also invited lawmakers and others to the Executive Mansion later Monday to, as he told reporters, "have a buttermilk." The real stuff being served - probably with a bigger kick than dairy products - may have helped soothe any hurt egos.

Rep. Ron Wait, R-Belvidere, said he didn't mind the tone of the governor's speech.

"We've got thick skin," Wait said. "We've heard worse from our opponents."

Sen. Frank Watson, R-Greenville, said response to the speech in the chamber reflected "the difficult time. ... With the cuts, I mean, no one's happy about what we're having to do."

And Watson said that after the governor finished defending what he's done about the budget, his proposals made for a "great speech."

Lt. Gov. Corinne Wood didn't have the same reaction.

Wood said that it wasn't until a briefing for constitutional officers an hour before the governor's speech that she got details of Ryan's new budget proposal.

Although she was still trying to confirm some elements late Monday, she understood that $1 million - just about all of the current year's budget - is being cut from the Main Street program for redevelopment of downtowns. She heads the council that runs the program for more than 55 communities, including Springfield.

She said the $250,000 general fund contribution to a breast and cervical cancer research program named for former Sen. Penny Severns, D-Decatur, who died of cancer, was also cut. Wood herself is a cancer survivor. The governor earlier cut funds for an Illinois River watershed improvement program championed by Wood.

"Unfortunately, we have political retribution on our minds more than what the priorities of our state should be," Wood said.

The cuts couldn't be independently confirmed late Monday.

Lest we forget, Wood was a candidate for governor this year, and the tone of that campaign caused the governor to say at one point that none of the GOP candidates would be great for the office.

We've come a long way since 1998. And this week will tell if Ryan's bold move to call in lawmakers on a holiday for a scolding will have accomplished his purpose: getting a budget passed.

Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

Budget proposal highlights
 
STATE CAPITOL BUREAU

Highlights of Gov. George Ryan's latest budget plan.
Additional revenues
Cigarette tax increase of 50 cents per pack to $1.08 per pack; to raise $285 million.
Riverboat casino revenue tax increase; $185 million.
Real estate transfer tax to triple to $1.50 per $500 of market value; $120 million.
State tax law decoupled from federal economic stimulus package; $240 million.
State to keep funds from photo processing tax now given to local governments; $25 million.
Surplus in restricted state funds to be transferred to state "checkbook"; $150 million.
Early retirement program for state workers; $64 million savings the first year, $184 million each year afterward.
Additional cuts
All 500 sergeants in Department of Corrections to be laid off.
Net 2,700 additional state jobs to be eliminated through layoffs, attrition and early retirement. Brings total to 6,500 positions.
Sheridan Correctional Center, boot camps in Hanna City, Greene County and Paris to close; prison food service to be privatized.
Department of Human Services offices to close in Pekin, Granville and Winchester.
State employee group health insurance to be cut $40 million (including $15 million in savings through opt-out program for workers covered by other insurance).
Monetary award program eliminated for fifth-year college students.
Proposed increase in basic welfare payments to families cut in half.
Restored cuts
Half of previously announced Medicaid cuts to hospitals, nursing homes and pharmacies, worth $330 million in state and federal money.
Vienna Correctional Center stays open.
Part of Thomson Correctional Center near Quad Cities to open.
Funds restored for home care services for the elderly.
All cuts restored to programs for the developmentally disabled.
Eliminates proposed increase in co-payments for subsidized child care for the poor.

VIENNA PRISON WILL STAY OPEN
 
BY RICHARD GOLDSTEIN
SPRINGFIELD BUREAU
[Mon May 27 2002]
 
SPRINGFIELD -- The Vienna Correctional Center would stay open under the new budget laid out Monday by Gov. George Ryan.
Ryan said he bowed to the wishes of lawmakers from both parties.
"Thanks to both sides of the aisle in both chambers, the Vienna Correctional Center will stay open," Ryan told a joint session of the Legislature.
Instead, Ryan is now proposing closing the Sheridan Correctional Center, which is a medium-security prison in LaSalle County. In addition, work camps and one boot camp would close.
Vienna is a minimum-security prison, which has been whittled down to a total of 600 prisoners as the Illinois Department of Corrections prepared to close it as called for under Ryan's original budget presented in February. At full strength, officials have said it provides 357 jobs and houses 1,100 prisoners. It costs the state $30.3 million a year to operate the prison.
Ryan had little choice but to include the prison in the budget after Senate President James "Pate" Philip, R-Wood Dale, earlier this month announced he would block any budget that did not include money to operate the facility.
House Speaker Michael J. Madigan, D-Chicago, said politics saved Vienna. "There's a lot of political clout evidently in that area to keep it open."
State Sen. Larry D. Woolard, D-Carterville, whose district includes the prison, said he was happy about the decision.
"I'm very glad that Vienna is back on the table and certainly hope that any of the discussions that take place within the next few days does nothing to damage that which many of us have worked long and hard to accomplish," he said.
Woolard said the Vienna Correctional Center is in a unique position as the economic engine in its community.
Members of the Illinois branch of the American Federation of State, County and Municipal Employees from Southern Illinois lobbied lawmakers and the governor relentlessly to keep the prison open.
Bureau of the Budget Director Steve Schnorf said closing Sheridan would save the state $27 million. He said he considered proposing closure of the Menard Correctional Center in Chester because it is an old prison.
But Schnorf noted that Menard is maximum-security and the system needs more maximum-security beds.

 

Ryan's budget: Raise taxes, cut spending
 
Christopher Wills
The Associated Press,
May 27, 2002
 
 SPRINGFIELD -- Hoping to break a stalemate over the state's budget crisis, Gov. George Ryan took the extraordinary step of calling lawmakers into special session Monday night and asking them to raise taxes by $590 million. He proposes raising cigarette taxes 50 cents a pack, or $285 million, casino taxes $185 million and a tax on real estate transfers $120 million. Ryan's plan also would cancel a tax break for businesses, saving the state about $240 million. Ryan wants to cut about $260 million from the already-Spartan budget he proposed in February, his aides said. That would include cutting about 6,500 state jobs, closing a prison in Sheridan, reducing college scholarship money by $20 million and more. "This budget is a tough proposition to accept, but the alternatives before you -- stalemate, deadlock and inaction -- are worse for the people of this state," Ryan said to lawmakers in a prepared statement. "It is time for us to show real leadership." The Republican governor reversed some of the proposals from his first budget speech, such as closing a state prison in Vienna -- he would close the Sheridan prison instead -- and ending numerous education grants so the money could be used for general school needs. Plummeting revenues quickly made Ryan's February budget proposal irrelevant. Officials realized state government actually would take in less money this year than the year before, the first time that has happened in more than half a century. That left the state with a $1.3 billion deficit for the coming budget year, with deep divisions over how to solve the problem. Ryan's proposal combines pieces of budget plans offered by different legislative caucuses, which may help attract support. And by leading the call for higher taxes, Ryan offers some political cover for lawmakers who are skittish about raising taxes in an election year. But it is far from certain that Ryan's gambit will work. Key lawmakers immediately began questioning parts of Ryan's proposal. Senate President James "Pate" Philip, R-Wood Dale, praised the proposal in general but called the cigarette and real estate taxes "excessive." He said those taxes could be lowered, with the lost revenue translating into a year-end balance smaller than Ryan's $851 million proposal. The minority parties in each chamber - Democrats in the Senate, Republicans in the House - have opposed budget plans similar to the one Ryan is offering. They may refuse to go along now, and the majority parties probably would not want to open themselves to political attacks by providing all the votes needed to approve the budget. If a budget is not approved by Friday, new legislative rules kick in that require a three-fifths vote for the budget to pass. That would give the minority parties even more leverage.

Lawmakers get another chance to put public before politics
 
By DANA HEUPEL
STATEHOSE EDITOR
27 May 2002
 
Welcome back to Springfield, state legislators.
You're coming to town on a holiday evening with less than five days before your constitutional deadline to deal with the largest state budget crisis in history.
There is a $1.3 billion hole in the budget for next year, and you have to find a way to fill it. The reasons for the shortfall are many. Of course, the economy is far worse than anyone could have estimated. The Sept. 11 tragedy only added to that. But some of the blame also rests on you.
When times were better, you flung money around like a used-car salesman on a first date. Why, you even wrote us tax rebate checks so we'd remember your names in the last elections. You peppered your districts with political projects - some necessary, some not. When revenues were higher than you expected, you spent the windfall rather than saving it.
Now, you're going to sit and listen to Gov. George Ryan introduce a new budget proposal of his own because you've been squabbling among yourselves since he introduced his first one in February. You haven't even come close to coming up with your own budget agreement. And all the while, the problem has been getting worse.
You've ceded your budget-making authority to the governor because you've worried more about saving your political hides than compromising on reasonable solutions. Now, you get to do a whole legislative session's worth of work in the coming few days.
Maybe that's all right with you. It's an important election year, and many of you are running for re-election in newly configured districts. Control of the House and Senate is at stake. And giving a lame-duck governor such power over the budget certainly provides you with some political cover. Oh, you're going to have to vote for some tax increases and program cuts, but they certainly weren't your ideas, were they? You can tell voters that Ryan proposed all the pain, and you had to go along to keep government running after July 1.
And what about those taxes and cuts? There'll probably be an attempt to remove the state and local tax breaks for businesses that Congress and the president built into the federal economic stimulus package. Don't want to help businesses too much in economic down times, do we?
We also can expect increases in taxes on cigarettes and casinos. On smokers and gamblers. You call them "sin" taxes, so why don't we just say "sinners"? Or maybe a better term would be the "poor and undereducated" because that's who many of them really are.
The program cuts? Gotta look mostly at laying off state workers and slashing budgets in the Departments of Human Services and Corrections, because those are the biggest areas where the state spends our money. Uh-oh. There's that "poor and undereducated" term again.
We almost certainly won't see an attempt at what might be a more fair approach: increasing income or sales taxes to spread out the pain among everybody. Let's call them, oh, "voters."
You've become so blinded by politics that you can't see past your own caucuses. You don't see yourselves as elected lawmakers, you're House Democrats or Senate Republicans. (And because you guys control the reins to the two legislative chambers, it looks like you'll ride roughshod during this last-minute rush.) Or House Republicans or Senate Democrats. (It looks as if you guys are the ones getting trampled, along with those "poor and undereducated" non-voters.)
Granted, your caucuses have come up with some solutions individually, and Ryan will surely incorporate many of those ideas into his budget proposal. But it was your job - not his - to work out a compromise and put together a unified budget.
And now, it's nearly too late. The governor, with the consent of the controlling leaders in each chamber, is going to hand you another budget that would fill nearly 1,000 pages of small type with line items, and you get less than five days to figure out what's in it. It'll be a little like reading the advertising logos on the side of a speeding Indy car as it whizzes by.
But because this race to pass the budget will bypass many of the usual legislative pit stops, you'll also get a final chance to at least voice your ideas and concerns during the floor debates.
When that happens, you can continue to toss out more political roadblocks and bog down the process. Or you can focus on what's best for all Illinoisans.
Your track record so far hasn't been very impressive. Maybe you can improve on it in this final sprint.
Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.
 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
26 May 2002
 
Why would anyone be cynical enough to think the fix is in on the state budget?
Gov. GEORGE RYAN will present his latest ideas for balancing the state budget at 6 p.m. Monday. The Senate will hold a committee hearing on the budget after the speech. The Senate will pass the budget Tuesday.
The House will hold a hearing on the budget Tuesday, vote on changes to it Wednesday and pass the whole enchilada Thursday. The deadline for passing the budget without a super-majority of lawmakers is Friday.
What makes all of this interesting is that this scenario was laid out by House Speaker MICHAEL MADIGAN, D-Chicago, and Senate President JAMES "PATE" PHILIP, R-Wood Dale, last Thursday at a time when Ryan said he was still working on the budget plan he will present Monday. So, at a time when no one supposedly had seen the final budget plan, the two majority leaders were able to lay out the game plan for passing it.
Nah, theres nothing greased here.
For several months, weve heard rank-and-file lawmakers bleat about wanting more input into the budget process. They want to go over the budget line by line. They want to approve the budget agency by agency, rather than cram everything into one bill and get one chance to vote yes or no on it. Theyre tired of having a budget deal rammed down their throats.
Now its down to crunch time. Theres a real good chance that with this latest budget plan, everything will be crammed into one bill, and lawmakers will get one chance to vote on it. But if lawmakers balk at this and the budget isnt approved by Friday, theres also a real good chance they will be stuck in Springfield until mid-July, seriously cutting into their campaign efforts.
When the vote finally comes, it will be a nice test of their sincerity about being active players in the budget process.
Rep. BILL BLACK, R-Danville, the verbal gunslinger of the House Republicans, said the budget scenario reminds him of an old western movie where the townspeople are about to deal with a desperado.
"They say, Lets have a fair trial, and then well take him out and hang him," Black said. "It doesnt seem to be the jury is out on the budget. It seems like somebody has already rendered the verdict."
Once upon a time, the state had an ethics law that prohibited fund-raisers in Springfield on days the General Assembly was in session.
In September 2000, a Will County judge declared the law unconstitutionally vague in response to a lawsuit brought by Sen. DENNY JACOBS, D-East Moline, and a former New Lenox village trustee. Despite the ruling, legislative leaders urged their members to continue acting as if the law was in effect until the state Supreme Court offered a final opinion.
However, Jacobs thumbed his nose at that. He held a $250-per-person fund-raiser in Springfield on May 8, 2001, a day the General Assembly was in session. "How are you flouting the law whenever there isnt a law that says you cant do it?" Jacobs said at the time.
Last week, the state Supreme Court got around to ruling on the ethics law. It said Jacobs lacked the legal standing to bring his lawsuit in the first place, so the ethics law is back on the books.
So were curious. Does Jacobs now have to return the money he collected at that Springfield fund-raiser last year?
Another group of Ryan associates was indicted on corruption charges last week. One of them, LARRY WARNER, allegedly called some shots in Ryans secretary of state administration, even though Warner wasnt on the state payroll.
In his defense, Ryan again said he knew nothing about what was going on in the office. Are we sure Ryan ever was secretary of state?
U.S. Attorney PATRICK FITZGERALD announced the latest round of indictments against Ryans pals. A reporter asked him, "Is there an area of the secretary of states office you havent found corrupted?"
As the roomful of reporters erupted in laughter, Fitzgerald bit back a smile.
In the House/Senate softball game, the House edged the Senate 23-10. The Senate just couldnt seem to overcome the 17-run lead they spotted the House in the first inning.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

STATE BUDGET'S BIG PROBLEM: NOBODY'S BUDGING

 

BY KATHERINE SCHOTT
SPRINGFIELD BUREAU
Sat May 25 2002

SPRINGFIELD -- The five men sit around the table, poker faces on and each holding his cards close to his chest, loath to show his hand.

Everything is riding on this game.

The cards represent "what they have to have to pass the budget," said Sen. N. Duane Noland, R-Blue Mound. That's how he likens the budget impasse that has been playing out in the Statehouse.

The analogy illustrates the frustration many rank-and-file lawmakers have felt during the past few months. Gov. George H. Ryan and the four legislative leaders -- representing Senate Republicans, Senate Democrats, House Republicans and House Democrats -- have been unable to reach a consensus.

"What typically happens is some leader will finally give an inch and that will trigger a chain reaction," Noland said.

This year, that has not happened. Ryan is calling a rare joint session of the House and Senate for Memorial Day evening, where he will propose another version of the budget.

"All along, I have said that we would not go pass the 31st," said Sen. David S. Luechtefeld, R-Okawville. "Sometimes deadlines have a way of forcing things to come to a close."

Lawmakers said they worry about funding for three main areas: education, human services and prisons.

"Government is there to do one thing: to provide services for those that cannot afford to do it," said Sen. Denny Jacobs, D-East Moline. "These are all things we want to make sure are funded properly."

Because of the revenue shortfall, now placed at $1.35 billion to $2 billion, the state has not been able to pay its bills on time. As of Friday, a spokesman for the comptroller's office said the state was $1.077 billion behind on payments.

Lawmakers said they would prefer to see education funding increased but would settle for maintaining the current level. They would also like to see as few layoffs as possible. Ryan's original proposal called for cutting more than 3,000 state employees.

Included in that number was the staff at the Vienna Correctional Center. Luechtefeld said the closing has "been foremost on my mind."

Sen. Larry D. Woolard, D-Carterville, said shutting the facility would decimate an area already hurting economically. "We don't have jobs on every corner."

Woolard said most of the legislative leaders have said any proposal that doesn't include keeping Vienna open would not be approved. The prison is in his district.

Ryan said in a letter sent Friday to Illinois newspapers that his new proposal would combine tax increases with cuts. State employees will remain on the chopping block. Ryan also said to expect increases in gambling and tobacco taxes.

Lawmakers said late last week they expected these types of revenue increases. Some expressed disappointment that other proposals have not been as well-accepted.

Woolard proposed a temporary income tax increase. He doesn't expect it to be a part of any final budget plan because it is considered political suicide.

Woolard said the final budget may not be popular, but would make lawmakers work together to ensure "that we eliminate any and all areas of waste in government. For us to believe that there is not places we can cut government is foolish."

katherine.schott@lee.net / 217-782-4043


 


What a friend

Rich Miller
25 May 2002

I think we might have missed the trees for the forest last week. Many major media outlets just barely skimmed the charges last week when federal prosecutors indicted three of Governor George Ryan's friends. So, we're going to take a closer look at the details today because we should all know how the governor's pals robbed us of $2.8 million. "Enough" did not exist in these kleptomaniacs' vocabulary. According to the feds, starting in 1991, when Ryan became secretary of state, and running through 1998, when Ryan ran for governor, Larry Warner, Bob Udstuen and Alan Drazek skimmed the $2.8 million from dirty deals. They basically used Ryan's office as their own personal piggy bank. Ryan has known all three men for at least 30 years. None of these people actually worked for the secretary of state, but their ancient friendship with Ryan allowed them to wield enormous influence over office workings. * Back in 1991, not long after Ryan was elected, Warner allegedly demanded $2000 per month from a company that manufactured stickers for license plates with special metallic security marks. In exchange, Warner pledged to keep the security mark requirement in the state specs. Warner then allegedly gave the company inside info, rigged the bids and ordered a senior SoS official to do business with the company. The sticker company was in for a lot of misery. For two years, Warner repeatedly threatened to cut the company off if they didn't pay him on time, the feds say. At one point, Warner allegedly claimed (falsely) that another company had offered to beat the 2 grand payment. So they agreed to up Warner's gratuity to 3 grand a month. In 1994, the sticker company was bought by another company, and Warner allegedly demanded, and received, $5,000 per month from the new owners. The company was sold again in 1998, and this time Warner demanded $25,000 in unpaid monthly installments and $8,000 per month. The company offered $5,000 per month, but Warner "terminated his communications and relationship," the feds say, just in time for the gubernatorial elections. Warner allegedly made $332,000 off the sticker scam. Udstuen got a third of that dough, allegedly by washing it through one of Alan Drazek's companies, American Management Resources, which was accused in the last set of indictments of secretly paying top Ryan aides out of money received from Phil Gramm's 1996 presidential campaign. * In 1993, Warner started lobbying for IBM, which allegedly agreed to pay him a percentage of all SoS contracts he got for the company. Lobbying for a cut of the profits is illegal. A year later, IBM told Warner that he needed to register with the state as a lobbyist, but Warner refused. He finally complied in 1995, but only after IBM allegedly agreed to pay him a monthly fee on top of his percentage. What a pig. From 1993 to 1999, IBM allegedly paid Warner $991,000, with a third of that going to Udstuen, washed, again, through Drazek's outfit, with Drazek getting a piece. * Warner learned in 1996 that the SoS planned to switch over to a digital licensing system. So, he allegedly scoped out the list of potential vendors and chose his pigeon - for 5 percent of the gross. This little scheme allegedly enriched Warner by $677,000 from 1998 right up to this very day. * According to prosecutors, in 1991 Warner approached the property manager of a Chicago building and said he was a "broker" for the secretary of state. For a six percent commission, he said, he'd land the guy a state lease. Warner greased the deal at the SoS, then omitted his name from the commission contract. He allegedly made $233,550 off the lease. The next year, Warner allegedly told a top SoS guy in the Physical Services Department that he had found a potential office building in Bellwood. He then secretly bought a share of the building and leased it to the SoS. Warner's alleged profit: $171,000. Then, in 1994, Warner allegedly scammed an even bigger lease deal, this time in Joliet. An unnamed top SoS official ordered an underling to contact Warner about finding a building. Warner showed the guy a run-down place in Joliet. Before the lease was signed, however, Warner secretly bought up a "substantial ownership interest" in the property, the feds claim. The four-year lease netted him about $387,500. He made enough to pay off the building's original mortgage in a single year. So now you know. Hideous, isn't it? -30- Rich Miller also publishes Capitol Fax, a daily political newsletter. He can be reached at www.capitolfax.com.

 

JIM RYAN'S ETHICS PLAN EFFORT TO DISTANCE HIMSELF FROM GEORGE
 
MARK DURAN SAMUELS
Fri May 24 2002
With overwhelming public corruption attached to the name Ryan -- GEORGE RYAN, that is -- Republican gubernatorial candidate JIM RYAN is doing everything he can to put as much distance as he can between himself and the embattled governor.
So, last week the attorney general issued an ethics plan he says will "clean up state government and restore the public trust."
Jim "I'm no relation to George" Ryan's plan would:
Push state legislation that would mirror and in some cases exceed the federal Hatch Act depoliticizing state and local government employment.
The legislation would prohibit state and local employees from soliciting or accepting political contributions for any state or local political campaign. It would also prohibit those same employees from making political contributions to the elected official who heads their agency or office.
In addition, it would prohibit state and local employees from engaging in political activity during regular working hours. Under the legislation, violators would face stiff penalties and employees would face loss of their state job upon conviction.
Set up a newly constituted State Police Public Corruption Strike Force that would focus on public corruption. The head of the unit would be confirmed by the Senate. Cases developed by the unit would be referred to either a state's attorney or the attorney general, depending on circumstances. The unit would issue annual reports on its activity to the General Assembly.
Install inspectors general in all major state agencies that do not currently have inspectors general. Have the inspectors general report potential illegality to the State Police Corruption Strike Force.
Set up a statewide anonymous tip line to allow whistleblowers to report government corruption to the State Police Corruption Task Force.
Set up a Public Integrity Commission to ensure the independence of the inspector general process. The commission would consist of five members: three appointed by the governor and one each by the attorney general and auditor general. The commission would nominate qualified individuals as inspectors general and those nominations would be subject to state Senate approval.
I found the first proposal -- the one about engaging in political activity on state time -- intriguing, and not without irony. Why? Because Ryan, in an attempt to curry favor with the voters and grab some free media exposure, immediately held three press conferences around the state on government time to announce this piece of campaign fodder.
So I sent an email to DAN CURRY, Jim Boy's mouthpiece.
"Does Jim Ryan consider himself to be a state employee? Does the law consider him so?" I asked. "If so, how does holding three campaign press conferences during regular business hours square with his own ethics plan? Did the attorney general take a day off without pay?"
I'll give Dan credit. He fired back an answer almost immediately.
"First of all, the proposal is for legislation to be introduced if he is elected governor. It does not apply now," Curry responded. "Second, you pose a good question about the difference between state employees and elected officials. Once the legislation is drafted, Jim Ryan would favor making as many of the provisions apply across the board. There may have to be some adjustments because a governor, for example, typically maintains a schedule that includes both governmental and political appearances throughout any given day.
"If that governor or another public official is prohibited from any campaign appearances during the work day then you would effectively prohibit that official from running for re-election," Curry added. "Then there is the question of logistics. Does an elected official have to change vehicles every time he or she travels from a governmental to political event?"
"There is a difference between an elected official and an employee. Both serve the public, but the elected official is acknowledged by the law to have a political side by the method of his or her employment -- an election. The ethics plan, when it is drafted, probably would need to include some narrow exemption that would capture the spirit of the initiative but also recognize the differences between an elected official and a non-elected official.
"I don't think the issue of hours worked is a big concern," Curry finished. "Most high-ranking public officials I've witnessed work well beyond the number of hours most employees put in and are essentially on call 24-7."
Allow me to put that answer in perspective for you. It means Jim Ryan's plan wouldn't apply to the class of people in this state who have shown the greatest need for better ethics: our elected officials.
Frankly, I don't understand why we need a new public corruption strike force, either. I say that's the attorney general's job, if he'll just do it. My publisher, Linda Lindus (whom I refer to as "The She-Devil" behind her back) disagrees, but then we rarely agree on anything anyway. She says an Untouchable-like unit of crime busters is just what the doctor ordered.
I still have to ask -- while we're on the topic of public corruption and prosecutions (or lack of them) -- where has Attorney General Jim Ryan been for the past eight years, while George's cronies were shaking down state employees, selling driver's licenses, manipulating state contracts and stealing the taxpayers blind?
You can bet "Hot Rod" is going to ask that question -- over, and over and over again.
This is going to be one ugly race, folks.
MARK DURAN SAMUELS is opinion editor of The Southern. The views expressed in his column do not necessarily represent those of the newspaper. Mark welcomes your comments via the e-mail address mark.samuels@thesouthern.com.
 
 

State Senate passes early retirement plan
 
 
By DOUG FINKE
STATE CAPITOL BUREAU
24 May 2002
 
The Illinois Senate Thursday overwhelmingly passed an early retirement plan that proponents believe could help the state's current financial crisis.
By a 55-1 vote, the Senate approved House Bill 2671 and sent it to the House, where its fate is uncertain. House Speaker Michael Madigan, D-Chicago, has been opposed to early retirement legislation because he doesn't think it will save as much money as promised.
Sen. Larry Bomke, R-Springfield, said the plan to trim the state payroll could save the cash-strapped general fund $64 million the first year and $184 million each year after that.
The proposal would allow state workers to buy up to five years of age and service credits to enhance their pensions.
An estimated 7,300 employees could retire if the plan were put into place. Bomke said only about half of those positions would be filled, and those that are would go to younger, lower-paid workers.
Sen. Patrick O'Malley, R-Palos Park, voted "no," saying there is no guarantee that the vacancies will not be filled.
The plan allows workers to buy into the plan and retire between Aug. 1 and Dec. 31. Employees would be required to pay their full share of the retirement contribution if they wish to use the incentive.
Workers could not collect retirement benefits unless their purchase of additional age and service credits made them eligible to collect under regular state retirement rules. Those include the Rule of 85 (age and years of service total 85), being 55 years old with 25 years of service, being 60 years old with eight years of service or having 35 years on the job.
The bill prohibits the state from rehiring workers who buy into the program, even on contract.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
 

New budget address set
Lawmakers to hear Ryan on Memorial Day
 
By DOUG FINKE
STATE CAPITOL BUREAU
24 May 2002
 
Gov. George Ryan is calling a rare joint session of the General Assembly for Memorial Day evening to outline his latest plan to close a $1.3 billion hole in the state's budget.
As explained by legislative leaders, the Senate will vote on the budget Tuesday, and the House on Thursday, the next-to-last day that bills can pass without needing a three-fifths majority.
The proposed budget for fiscal 2003, which begins July 1, is still being pieced together, and the work will likely continue through the weekend, Ryan spokesman Dennis Culloton said Thursday.
"We are trying to find the right mix, the fair mix, of budget cuts and new revenue," Culloton said. "I would not be surprised to see some so-called sin taxes."
Lawmakers have talked about raising the state tax on cigarettes by up to 75 cents per pack. Some also want to levy higher taxes on riverboat gambling proceeds.
House Speaker Michael Madigan, D-Chicago, said he expects Ryan to call for a 32-cent-per-pack increase in the cigarette tax. That would bring the state tax to 90 cents per pack, raising about $200 million.
Madigan also said he expects the governor to propose raising gaming taxes to generate about $210 million for the state. Both Madigan and Senate President James "Pate" Philip, R-Wood Dale, said they doubted that the number of gaming slots will be expanded to mollify gambling interests.
Ryan's new budget plan is also likely to call for the repeal of a tax break for Illinois businesses that resulted from passage of the federal economic stimulus package. Called "decoupling," the action will save the state $225 million and local governments an additional $175 million.
Culloton said the governor's revised budget will blend a number of ideas offered this spring by the four legislative leaders, although he declined to be specific. Senate Minority Leader Emil Jones, D-Chicago, has pushed the idea of the state selling its future stake in tobacco settlement proceeds in exchange for immediate cash. The idea has not gotten much support.
House Republican Leader Lee Daniels of Elmhurst has insisted that the budget can be balanced without tax hikes. His plan combines deeper, though unspecified, budget cuts with a number of one-time budget techniques such as borrowing surplus money from specialized state funds. Still, Daniels did not say he would order House Republicans to vote against Ryan's budget if it includes higher taxes.
"We'll review what happens (next week)," Daniels said.
Some of the cuts Ryan announced in his February budget address apparently will be reversed, such as closing the Vienna Correctional Center. Democrats and Republicans are championing the prison, saying keeping it open is good election-year politics.
But while some cuts may be restored in the plan Ryan outlines Monday, "you may see a different mix of cuts," Culloton said.
Ryan plans to give his speech at 6 p.m. Calling lawmakers into session on a holiday is an unusual move forced on the administration by the May 31 deadline to act on the budget. If the session drags into June, more votes are needed for passage, giving the minority party in each chamber more power. Both Madigan and Philip said Thursday that Jones and Daniels were creating roadblocks to a budget agreement.
"They haven't helped much, I'll say that," Philip said. "The speaker was pretty flexible. At least he's reasonable." "The problem was, Rep. Daniels was going in the opposite direction," Madigan said. ".. . Mr. Jones wasn't helping us either because all he wanted to do was borrow."
As things stand now, a Senate committee will conduct a hearing on Ryan's budget plan Monday night, after the governor finishes his speech. The Senate will vote on the budget the following day. The House is supposed to vote on the plan by Thursday.
The schedule led some lawmakers to conclude the fix is already in.
"You can predict right now that the Senate will pass a budget that nobody has any idea what it says yet?" said Rep. Tom Johnson, R-West Chicago.
Rep. Bill Black, R-Danville, noted that a circuit court recently tossed out an increase in the state liquor tax because the public wasn't given an adequate chance to comment on it.
"You tell me the budget is going to be introduced late Monday night on a state holiday and passed on Thursday? Is that adequate public input and participation?" he asked.
Dean Olsen and Jeff Druchniak of the State Capitol Bureau contributed to this report. Doug Finke can be reached at 788-1527

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The governor in denial
 
Our Opinion
State Journal Register
24 May 2002

 

Police Capt. Louis Renault: "I'm shocked - shocked - to find gambling is going on in here!"

Croupier: "Your winnings, sir."

Renault: "Oh, thank you very much. Everybody out at once!"

Of course, Ryan didn't speak with a French accent and his surpise at the charges was worded differently. But it has become almost as difficult to believe the governor's "outrage" at the corruption surrounding his secretary of state years as it is that Capt. Renault was really shocked at the gambling in the back room of Rick's Cafe Americain.

The federal prosecutors could not make the noose much tighter. They have convicted not only dozens of lower level employees and operatives in the licenses-for-bribes scandal; they have convicted his former inspector general, Dean Bauer, and indicted his former chief of staff, Scott Fawell. Now this week three Ryan associates, including his close friend and adviser Lawrence Warner, have also been indicted.

Warner is alleged to have used his ties to Ryan's secretary of state's office to shake down private vendors for nearly $3 million, sharing the money with former lobbyist Donald Udstuen and a senior state official, who the feds so far refer to only as "Official A."

It should come as no surprise to Ryan or anyone else that people are wondering if Official A is actually the governor himself. That specific question was posed to Ryan during his press conference this week. His response: "I don't believe I am. I sure as hell don't think I am. And I would have no reason to think I am. OK?," said Ryan.

Reporters don't give up that easily. One took another route, asking Ryan if he had taken any kickbacks. "No, have you?" Ryan shot back.

It's classic George Ryan. Don't ruminate on the right and wrong of a situation. Instead attack your attackers. The brutish, good-ol'-boy, backroom-deal-cutting Ryan made it to the top of Illinois politics. During that long career we were asked to give credit to Ryan for everything from increasing organ donations to rebuilding the state's infrastructure.

Fine. But if he truly was the guy in charge, if he legitimately built this lengthy record of accomplishments that launched him into the Executive Mansion, then how can he now expect us to believe that he did not have even a hint of knowledge about the corruption that existed in the Illinois secretary of state's office during his tenure?

On Tuesday when U.S. Attorney Patrick Fitzgerald announced the indictments of Warner, Udstuen and Alan Drazek, a Ryan appointee to the Chicago Transit Authority board, the governor stayed in seclusion. His spokesman, Dennis Culloton - who arguably has one of the toughest jobs around these days - fielded questions in Ryan's absence.

Asked to describe Ryan's take on the new indictments, Culloton responded: "He has a clear conscience." If that is an accurate depiction, then the governor really does have a serious denial problem. Even if he was not directly involved in the corruption, he does not deserve to have a "clear conscience." Fifty-one indictments and more than 40 convictions ought to make that impossible


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Indictments
 
By BERNARD SCHOENBURG
POLITICAL COLUMNIST
23 May 2002
 
Its getting hard to believe just how rotten some of the inner workings of the secretary of states office were under GEORGE RYAN.
At least thats the case if the latest round of federal indictments prove to be true.
The governor, who said he has known two of the three people charged LARRY WARNER and DONALD UDSTUEN for 35 years, says he didnt know of anything wrong they were doing.
But, as those pesky documents coming out of the U.S. attorneys office in Chicago show, Warner is alleged to have used influence in the secretary of states office (even though he didnt work there) to earn an illegal $2.8 million during Ryans years. He demanded payoffs from suppliers and snuck into ownership of buildings the secretary of state would lease, sharing part of his ill-gotten gain with Udstuen, a long-time executive of the Illinois State Medical Society. Warner also shared profits with an unidentified secretary of state official. And the third person indicted, ALAN A. DRAZEK also is alleged to have received money, keeping some and laundering some through a company he owns, American Management Resources.
This isnt merely resorting to the sordid business of taking bribes to issue licenses so you could pay into your boss campaign fund and maybe get a promotion. That may be horrible stuff, but the mind can comprehend how it could happen. This, if true, is pure and simple thievery.
Ryan tells us he is outraged even to find out that it is alleged someone used his name to buy themselves influence. And hes saddened.
This is similar to when his former inspector general, DEAN BAUER, was convicted of blocking the investigation, and hes now serving time in prison. Ryans former chief of staff, SCOTT FAWELL, with whom he spent vacations in the Caribbean, has been indicted and faces trial. Ryans whole campaign fund has been indicted as an alleged criminal enterprise.
Its just not pretty.
Not to be too presumptuous or to cast aspersions on all his closer acquaintances, but wouldnt one think its time for the governor to re-evaluate how he chooses his friends?
Anyway, the people indicted this week have been around for a while. Warner is an appointed member of the Metropolitan Pier and Exposition Authority, the agency that oversees McCormick Place and Navy Pier in Chicago. Fawell is on leave from his job of running that agency.
Udstuen and Drazek were both officials in the administration of late Gov. RICHARD OGILVIE, who served from 1969-73.
Udstuen was assistant to the governor and was known as patronage chief of the administration. Drazek was director of the old Department of Personnel.
The states Blue Book for 1969-70 notes that Udstuen was born in Chicago, raised in Lake County, and graduated from Libertyville High School and Northern Illinois University. He was personnel officer for Ogilvie when Ogilvie had been president of the Cook County Board. He also was president of the Illinois Young Republican College Federation in 1963-64.
"He was a bright, energetic young guy who was not afraid to take on the existing bureaucracy," said JERRY OWENS, political columnist for the old Illinois State Register newspaper. "He had a lot of brass."
In a March 10, 1969, column, Owens criticized the Ogilvie "patronage machine," which included Udstuen.
"(M)any civil service employees have been summarily and ruthlessly fired by the administration, which has resulted in a sharp decline in morale among career public servants," the column stated.
In another column, Owens noted that Udstuen was only 25 when he became assistant patronage chief.
"He was a little cocky and abrasive at first; perhaps he was insecure at being placed in such an important position at such a young age, surrounded by grizzled political pros. But he has since mellowed, improved his personality and become a key cog in the governors political machine."
Udstuen was among non-delegates who attended the Republican National Convention in Philadelphia in 2000.
"Im a friend of many of the people in the delegation," Udstuen said at the time, "and the governor, whos chairman of the delegation, said, Why dont you come out with me? And I said, Yeah, thatd be fun."
Drazek, Owens said this week, "was not flamboyant. He just seemed quiet and efficient."
When Drazek was named assistant director of personnel for Ogilvie in 1969, the Springfield newspaper story noted that he was a Loyola University graduate, and had been active in 38th Ward politics in Cook County. He also was on Ogilvies transition task force.
Owens said that Ogilvie involved many bright young people in his administration, and they "helped Ogilvie reshape state government."
JOHN DAILEY was another of those Ogilvie young administrators. He ran for state treasurer in 1982, but in 1998 pleaded guilty to bank fraud stemming from his presidency of a Peoria bank.
Its clear that at least some of the young corps working for Ogilvie didnt learn that there are certain lines that shouldnt be crossed.
Skilbeck remembered
Some sad news hit Springfield Wednesday. JIM SKILBECK has died. He was pronounced dead at his home at 4:28 p.m. Tuesday, Sangamon County Coroner SUSAN BOONE said. Details were sketchy, but he had medical problems. He was 53.
Skilbeck was an advance man and spokesman for Gov. JIM THOMPSON. He worked for a time after Thompson left office for Treasurer JUDY BAAR TOPINKA, but they parted ways. He did have medical problems, and even had a run-in with police last August in a domestic disturbance situation at his apartment.
But those of us who knew Skilbeck will always remember him as the friendly, nervous, enthusiastic, playful and just plain fun advocate for his boss.
"He was an amazing man, the greatest advance man that Ive ever seen for any statewide official in Illinois," said Sen. KIRK DILLARD, R-Hinsdale, who was legislative director for Thompson. "He was the P.T. Barnum of advance men. He made the job of being governor for Jim Thompson fun."
Skilbeck could turn a campaign event into "a magical spectacle" for Thompson, Dillard said, also recalling all the parades in which Skilbeck was perspiring, wearing an "Im with Jim" T-shirt, and announcing the governor and his family through a bullhorn.
I remember riding the state fairgrounds on a golf cart with Skilbeck in the middle of the night. His boss loved the state fair, and this made a good story. Well all miss Jim.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

 

Ethics package in the works House GOP
Legislation could ban political activity by public employees

 

By DOUG FINKE
STATE CAPITOL BUREAU
23 May 2002

 

Illinois House Republicans are working on new ethics rules that could ban political activity by public employees, including those working for local governments.

House GOP Leader Lee Daniels of Elmhurst said Wednesday he hopes to have the ethics package completed in time for a vote before the spring legislative session adjourns.

"Its a work in progress," Daniels said.

David Starrett, a lobbyist for the Independent Voters of Illinois, is helping to craft the proposed new rules. He said the time is right to pass an ethics bill.

"Usually you need a scandal, and by God we have one," Starrett said. "Anyone who tries to claim we need to study this for a while has his head screwed on wrong."

The new proposals are surfacing at a time when a federal licenses-for-bribes investigation continues to result in indictments of Gov. George Ryans associates.

Also, the Illinois Supreme Court today is expected to rule on the constitutionality of ethics legislation previously passed by the General Assembly. A lower court declared the law unconstitutionally vague.

One idea the House Republicans are considering is banning any government workers from engaging in political activity. That would include state employees and city workers. The proposal could be modified to ban only those employees who handle money for governments, Daniels said.

Most gifts to public officials would be banned regardless of cost, although there would be some exceptions, such as gifts from family members. Lawmakers could still get free meals as long as they didnt cost more than $75.

The bill would create a single board of ethics to handle questions about the law.

It would ban fund-raisers held on days the legislature is in session, ban personal use of campaign funds and prohibit state-paid newsletters from being mailed after Sept. 1 in election years.

Lobbyists would be required to disclose their compensation from clients, and the information would be available on the Internet.

The legislation also calls for creation of a "Public Integrity Commission" that would appoint inspectors general for large state agencies.

"Theres a very strong argument for doing something this year," Starrett said.

Daniels acknowledged the ethics bill could be tied into passage of a state budget. He said House Republicans may decide to withhold their votes from a budget unless the ethics bill is also approved. However, that strategy has not yet been discussed by the caucus, Daniels said.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 


 

Budget may hold lawmakers here
 
By DOUG FINKE
STATE CAPITOL BUREAU
23 May 2002
 
Legislation to create an early retirement incentive that could be part of a final state budget deal surfaced Wednesday in the Illinois Senate.
Meanwhile, Gov. George Ryan said that if a tentative budget agreement isn't reached today, the impasse will likely stretch into June. Ryan met throughout the day with the four legislative leaders, but as of Wednesday night, they still had not agreed on a spending plan for the fiscal year that begins July 1.
One component of a budget deal could be an early retirement incentive designed to lure older, higher-paid state workers into retiring earlier than they might have planned. The Senate Insurance and Pensions Committee approved a bill that would allow employees to purchase five years of age and five years of service to give them a higher pension benefit at an earlier age.
"We feel this is an important part of the budget process," said Sen. Larry Bomke, R-Springfield, sponsor of the retirement plan in House Bill 2671. "It will significantly reduce the number of employees without laying anyone off."
The State Employee Retirement System estimates that as many as 7,400 workers could choose to buy the extra credits and retire. State officials estimate that if all of those workers retired, the state's cash-strapped general fund could save $64 million in the next budget.
It would cost state employees more to participate in this early retirement plan than in one passed in the early 1990s. Under the new version, workers must make the full contribution to the pension plan to participate. For SERS members, that is 4 percent per month purchased times the monthly salary. Under the former legislation, workers only had to pay for half of their contribution.
The window to participate would be Aug. 1 to Dec. 31. Those who take early retirement could not go back to work for the state, even on contract.
Bomke said he wants the full Senate to approve the bill, so House members would at least have the option of voting on it. House Speaker Michael Madigan, D-Chicago, has opposed talk of early retirement because he doesn't think it saves as much money as claimed. Madigan spokesman Steve Brown said Wednesday the speaker's position has not changed.
If the legislation is passed by the Senate and the House, it must be signed by Ryan, who said he continues to support an early retirement plan.
Ryan on Wednesday also warned that if lawmakers don't reach at least a tentative budget deal today, the spring legislative session could go into overtime. The state Constitution sets May 31 as the last day to pass bills in the spring without a three-fifths majority vote in the House and Senate.
"If we don't have a program agreed to (Thursday), we will be here past June 1," Ryan said. "If we don't have it by (Thursday), we are out of time."
Ryan met individually with the legislative leaders at the Executive Mansion throughout the day. House Republican Leader Lee Daniels of Elmhurst said it appeared the governor was trying to cut a budget deal with Madigan and Senate President James "Pate" Philip, R-Wood Dale.
"We haven't got very far," Philip grumbled. "If people would be a little more flexible, it would be easier."
Senate Republicans want to close a $1.3 billion budget hole by making $650 million in cuts to the spending plan Ryan presented in February and raising taxes by $650 million. They want to increase taxes on cigarettes and gambling and end a $250 million windfall for Illinois businesses caused by the federal economic stimulus package.
Daniels believes the gap can be filled with $700 million in cuts and some one-time budget techniques to avoid any tax hikes.
"These are times of crisis," Daniels said. "We think it is not the time to increase taxes."
House Republicans contend that $38 million more can be cut from the Department of Public Aid, $28 million from Commerce and Community Affairs and $91 million from Corrections. However, Daniels said he will not identify those cuts until he first discusses them with the governor.
Senate Minority Leader Emil Jones, D-Chicago, wants the state to borrow against future proceeds from the national tobacco settlement. He says that would eliminate the need for cuts to human services while also avoiding higher taxes.
The Illinois Legislative Black Caucus Wednesday said it opposes any budget cuts that hurt low-income and minority communities.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

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Governor very saddened
Absolutely outraged if charges against friends are proved
 
By BERNARD SCHOENBURG
POLITICAL WRITER
23 May 2002

Gov. George Ryan said Wednesday he would be "absolutely outraged" if some of his longtime friends illegally made millions of dollars while he was secretary of state.

"Im very saddened about the indictments that came down yesterday," the governor said in a news conference outside his Statehouse office. "If in fact those charges are true, I am absolutely outraged to think that anybody would try and profit with my name and my office."

Ryan confirmed that two of the three men charged Tuesday Lawrence E. Warner, 64, of Chicago and Donald Udstuen, 58, of Crystal Lake have been his friends for more than three decades.

He said he had had dinner with Warner Saturday night.

He also said he had called Udstuen "only to wish him well" on the day Udstuen resigned from the Illinois State Medical Society, where he had been associate executive vice president, and from the board of the Metra transit agency. He left those jobs April 30.

"I had no idea what his problem was," the governor said. "He told me it was for family reasons, and I called to wish him well."

"I am stunned, and Im upset if its true," Ryan said of the allegations. "Im damn mad, as a matter of fact."

But he said those charged deserve their day in court, and as governor, hes going to concentrate on finding a solution to the states budget problems.

"I have not thought about resigning, not at all," he said in response to a question. "Im thinking about getting this budget done."

And asked by a reporter if he had taken any kickbacks, he said, "No, have you?"

Federal prosecutors on Tuesday charged Warner, a businessman, with extortion, mail fraud and money laundering. Although Warner was not officially part of the secretary of states office under Ryan, prosecutors say he used his influence to control certain contracts and leases. He extorted money from contractors and bought into buildings being leased by the secretary of state, the government says.

Warner allegedly received about $2.8 million in profits from his dealings with the secretary of state. Udstuen was given a cut of that money, prosecutors say, with the concurrence of an unnamed high-ranking secretary of state official who also was being paid off by Warner.

Asked Wednesday if he is the unnamed official, Ryan replied, "I sure as hell dont think I am and would have no reason to think I am."

Udstuen is cooperating with federal investigators.

The third indicted person, Alan Drazek, 61, of Morton Grove, allegedly helped disguise the illegal payments from Warner to Udstuen, keeping a portion for himself.

"None of these three fellows worked for me at any time," Ryan said. "They were never on my payroll.

"They were friends and they were involved in helping us when I ran for (election). They helped us with policy. . . . They were people that have been involved in the political system for some time."

Udstuen was one of four co-chairs of Ryans transition team after he won election as secretary of state in 1990.

The indictments of Warner, Udstuen and Drazek brought to 51 the number of defendants charged in Operation Safe Road. Still facing trial is Scott Fawell, Ryans former chief of staff and campaign manager, who is alleged in part to have used state resources for Ryans 1998 campaign for governor.

Ryan, who has not been charged, defended his public and private business life when addressing reporters.

"I was in the pharmacy business for 40 years in Illinois, 43 years as a matter of fact, and built a good reputation, served the public well, and did my public duty. And the only reward that Ive ever had from public service is the fact that weve been able to provide, I think, and make a difference for the people of Illinois."

Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.

 

 


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RYAN FRIEND, 2 OTHERS INDICTED
 
 BY KEN SEEBER
THE SOUTHERN
Wed May 22 2002
 
CHICAGO -- A close friend of Gov. George Ryan was indicted Tuesday on charges of shaking down state vendors for $2.8 million when Ryan was secretary of state and sharing the cash with a powerful lobbyist and a senior state official whose identity was not disclosed.
"For the better part of a decade, when it came to contracts and leases with the secretary of state's office, the fix was in," U.S. Attorney Patrick Fitzgerald said in announcing the indictment.
He said the "fixer" was Lawrence E. Warner, 62, a longtime friend of the governor who all but had the run of the secretary of state's office under Ryan, virtually deciding who got certain contracts and leases, and going to the unnamed official when he needed more authority.
Donald Udstuen, 58, former lobbyist for the Illinois State Medical Society, was also charged in the indictment along with businessman Alan Drazek, 61, a Ryan appointee to the Chicago Transit Authority board.
The indictments saddened legislators from both sides of the political fence in Springfield.
"As a politician, Democrat or Republican, you hate to see things like this happen," said Rep. Joel Brunsvold, D-Milan.
Sen. Frank Watson, R-Greenville, echoed the statement.
"This is another sad day in state government," he said. "It sends a poor message to the people about their attitude or their support for state government."
Republicans said they hoped the indictments would not hurt them politically in November.
"Voters will judge me on my own record," said Rep. Dale A. Righter, R-Mattoon.
Rep. Mike Bost, R-Murphysboro, said he also thinks he will be judged on his own record, not the governor's.
"I have always worked very hard to follow the law and every aspect of the law," he said.
The charges were the latest in a four-year federal investigation of corruption in the secretary of state's office under Ryan, who was elected governor in 1998. Ryan has not been charged with wrongdoing, but his campaign and former campaign manager are under indictment on charges of secretly using state funds and public employees for political work.
The fresh charges brought to 51 the number of former state employees, campaign workers and others charged in the investigation, which began with reports of bribes paid in return for driver's licenses.
A Ryan spokesman, Dennis Culloton, said Tuesday that the governor doesn't think he's a target of the investigation and has no reason to fear it.
"In 30 years in state government, Governor Ryan has never personally profited from his service," Culloton said.
Asked Ryan's view of the matter, Culloton said: "He has a clear conscience."
Drazek's attorney, Dennis Berkson, wouldn't comment on the charges. Attorneys for Warner and Udstuen didn't return calls.
Warner shook down both landlords and vendors, the indictment said. It said he shared the money with the unnamed official, then passed a portion along to Drazek, who kept part, laundered the rest through his company, American Management Resources, and gave it to Udstuen.
Fitzgerald wouldn't identify or give details concerning the unidentified "Official A" named in the indictment who shared in the money.
Fitzgerald said Udstuen was cooperating in the investigation and had agreed to plead guilty to a tax charge. He and Drazek were each named in just one count of the 11-count indictment.
Lawmakers said they weren't surprised by the latest developments.
"I don't think that they're done with their investigation. Obviously we have a new U.S. attorney who has renewed interest in this case and is making every effort to clean up the corruption in Illinois government," said Rep. Julie A. Curry, D-Mount Zion.
Udstuen was patronage chief in the administration of the late Gov. Richard B. Ogilvie when Drazek was personnel director. Since then, Udstuen has become one of the most powerful lobbyists in Springfield.
The medical society has donated at least $247,000 to Ryan's campaigns since 1994, according to an Associated Press analysis of state campaign finance records.
Udstuen's medical society post gave him access to a political fund that has doled out almost $5 million to candidates since 1994.
He recently resigned from his medical society position as well as from a seat on the Metra board, which oversees Chicago-area commuter trains. Warner is an unpaid Ryan appointee to the Chicago Metropolitan Pier and Exposition Authority.
The indictment charges that Warner received $332,000 starting in 1991 from a contractor who provided vehicle validation stickers required to be attached to Illinois license plates.
When secretary of state officials proposed to do away with a "metallic security mark" that was proprietary to the vendor -- and thus open the contract to other companies -- Warner went to the unnamed Official A and got him to kill the idea, the indictment said.
It charged Warner also got $233,500 in payoffs from a lease on a secretary of state's office in Chicago's Loop, $171,000 from a lease in Bellwood and $387,500 from a lease in Joliet.
Warner acknowledged earlier he held a share in the company that owns the Joliet building. Fitzgerald said the contract was awarded after he received his share.

 

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
19 May 2002
 
Shame on you. Shame on us. Shame on anyone who didnt see that when Gov. GEORGE RYAN filled a two-year-old vacancy with one of his cronies, he was just trying to save the state money. Ryan himself said so in one of his famous letters-to-the-editor written by one of his staff ghost writers.
ROBERT HEALEY earned $105,836 as director of the state Department of Labor. He quit and took an $86,000 job with the state Labor Relations Board, a job that had gone unfilled since the position was created two years ago. Healeys former job was filled by WILLIAM ROLANDO, who used to earn $96,000 as assistant director of the department. Rolandos old job will not be filled. Add it all up, Ryan says, and the state saves $10,000.
Isnt it a pity that Mr. Healey and Gov. Frugal didnt take this money-saving step last fall when the financial crisis was unfolding and quick action was needed to minimize the looming catastrophe.
Ryan could have gone to Healey and said, "Bob, the states in serious financial trouble. I need you to save us $10,000 by quitting your old job and filling this two-year-old vacancy." Instead, Healey kept his higher-paying job until the end of April, when he finally decided it was time to save the state money.
Let us not be critical, however. Gov. Frugal has performed a valuable service by identifying the assistant directors job at Labor as a nonessential position that need not be filled. Taxpayers may wish the job had been eliminated years ago, but now that we know its not necessary, budget negotiators can safely whack it.
OK, so the spin is that it helps the state budget to fill long-vacant jobs.
Does anybody else think that for all the tax dollars spent on Ryans communications staff, we, as taxpayers, deserve a more sophisticated line of malarkey?
If you believe the conventional wisdom, Monday will be a critical day in budget negotiations even though the General Assembly wont be in session. Its supposed to be the day that spineless lawmakers get a dose of political courage.
It works like this. All 177 seats in the House and Senate are up for election this year. However, in something like 108 of those districts, theres only one candidate on the November ballot. In other words, most lawmakers dont face any opposition this fall.
Youd think this would make them bold and decisive when dealing with the budget problem. It hasnt worked so far, but maybe after Monday. Thats the deadline for political parties to put candidates on the November ballot, even if they did not go through the primary. After Monday, no more names get put on the ballot.
Conventional wisdom says even those lawmakers without opponents were afraid to do anything controversial until after the ballot deadline. Once they know for sure that they wont have an opponent, they are free to develop a backbone and vote for budget cuts or tax hikes that would have been unthinkable before.
You should know that this idea has been trashed by some of the legislative leaders and others who say it is simply silly. You should also know that a lot of lawmakers believe in the old saying that there are two ways to run for office scared and unopposed. Budget talks resume Tuesday. Well start to get a good idea then if this theory has any merit.
At some point, Senate President JAMES "PATE" PHILIP, R-Wood Dale, is going to retire, and what he will do then is anybodys guess. How about lottery director?
"I dont play the lottery," Philip said last week while discussing whether the state should expand gambling to solve its budget problems. "I think its a stupid thing to do myself. You dont have any chance of winning."
OK, lottery director isnt a good fit.
House Speaker MICHAEL MADIGAN, D-Chicago, tapped into decades of Illinois political experience to offer this assessment of budget negotiations.
"At the beginning, I think everybody agreed that everythings on the table, and thats the way it is today," Madigan said. "And as we go forward, I think everything will remain on the table."
Worthwhile insight from Madigan priceless. Chance of actually getting it zero.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

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 JUDGE BLOCKS RYAN'S LAYOFFS
 
BY TRAVIS DENEAL
THE SOUTHERN
Fri May 17 2002
 
FRANKLIN COUNTY -- Prison workers and other state employees living in Franklin County may breathe a little easier now that a judge has blocked Gov. George Ryan's plan to lay off 1,800 employees.
In April, a host of state facilities in the region were slated for layoffs by the state. Prison workers, human services employees and state park workers were among the many targeted for pink slips.
But on Friday, St. Clair County Circuit Court judge Alexis Otis-Lewis issued a preliminary injunction that delays the governor's plans.
The ruling is in response to a lawsuit filed by the state workers' union, the American Federation of State, County and Municipal Employees Council 31. The suit asked that the governor be made to submit disagreements concerning the layoffs to an independent arbitrator.
Buddy Maupin, regional director for AFSCME 31, said the union and its workers are pleased with the latest in a string of victories involving the governor proposed layoffs, personnel cuts and facility closures.
"It's a great day for working families who are facing a very harsh proposal from the governor," Maupin said.
The first victory for AFSCME came March 8, when Otis-Lewis issued a temporary restraining order that blocked the Ryan administration's plan to mandate one-day furloughs for state employees. The judge also let the union amend its complaint about three weeks ago to cover permanent layoffs.
In addition, Johnson County Circuit Court judge James Williamson issued a temporary restraining order blocking the closure of Vienna Correctional Center in April. When the state appealed, the 5th District Appellate Court in Mount Vernon upheld Williamson's order. S shortly after, the state dropped its fight.
State offices were closed and could not be reached for comment late Friday afternoon, but the governor's office in a faxed statement Friday evening said it would appeal the decision.
"We strongly disagree with the judge's ruling," the statement said. "The effect of the injunction and the AFSCME union's continued obstructionist litigation strategy could mean more tax increases for the people of Illinois and more layoffs in 2003 budget.
Maupin, meanwhile, said AFSCME will continue to fight for state workers. Despite Otis-Lewis' preliminary injunction, no new state budget currently exists. The current fiscal year ends June 30.
"We're fighting hard to keep people working," Maupin said. "Nothing is more fundamental to the mission of the union that to keep people working. We'll fight to continue to do this."
travis.deneal@thesouthern.com / 618-997-3356 x15816

 
 

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Lawmakers consider spending cuts
 
By DOUG FINKE
STATE CAPITOL BUREAU
16 May 2002
 
With a laundry list of tax-hike ideas now on the table, talk Wednesday turned to spending cuts.
As other lawmakers went home, Illinois' four legislative leaders ordered their top budget negotiators to stay in Springfield through the weekend to identify millions more in cuts needed to balance the budget for the fiscal year that begins July 1. Those cuts apparently will be in addition to ones Gov. George Ryan already recommended in his budget plan and Senate Republicans proposed in their own budget outline.
"They're going to go over what cuts (lawmakers) would like to make," said Ryan spokesman Dennis Culloton. "They're going to try to get closer to a starting point."
After weeks of talks, the four groups of lawmakers - House and Senate Republicans and House and Senate Democrats - are no closer to agreeing on what, if anything, should be cut to balance the budget and what, if any, taxes should be raised.
"I would hope we can come away with agreeing on how much we are going to cut," said Senate President James "Pate" Philip, R-Wood Dale. "If we can do that, we can start the ball rolling."
Senate Republicans have suggested the billion-dollar-plus budget hole be filled by making half cuts and half tax increases. However, House Republican Leader Lee Daniels of Elmhurst adamantly opposes any talk of higher taxes until more cuts are made.
"We refuse to talk about new taxes until we are satisfied we've done everything we can do to cut unnecessary spending," Daniels said. "We know that we can find additional cuts in the Corrections Department of $50 million to $60 million."
House Republicans will meet with representatives of several state agencies starting today to review cuts the GOP thinks can be made to those agencies' budgets.
If the list of cuts the budget negotiators produce over the weekend proves politically unpalatable, it could provide the impetus to raise taxes. Ryan this week presented the leaders with a list of 18 ideas for raising revenues, ranging from increasing cigarette and gambling taxes to repealing some business tax breaks to imposing a tax on cable television service. Discussions also are under way to allow slot machines at horse race tracks.
Senate Minority Leader Emil Jones, D-Chicago, continued to press his plan to have the state borrow against future proceeds from the national tobacco settlement.
"We don't need to raise unnecessary, regressive taxes on the people of Illinois," Jones said.
However, his idea has received no support from the other leaders. Sen. Steve Rauschenberger, R-Elgin, lead budget negotiator for the Senate Republicans, said Jones' plan won't solve the state's basic budget problem.
"Spending is $1 billion larger than revenues," Rauschenberger said. "How do you pay for it next year? You are postponing the problem. I'm cold, so I'm going to light my house on fire to stay warm."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

VOICE OF THE SOUTHERN: RYAN DIDN'T EXPECT TO BE ABANDONED ON ALL SIDES
 
Tue May 14 2002
 
sFor those of you without a scorecard, Judge James Williamson issued a restraining order barring Gov. George Ryan and the Illinois Department of Corrections from closing Vienna Correctional Center prior to June 30.
Both the Republican and Democratic candidates for governor say they'll reopen VCC if Ryan is successful in his quest to shutter it.
The leadership of both parties in both the Illinois House and Senate are on record as saying funding for VCC will be in the state's next budget.
The next budget must be voted upon by the General Assembly by Friday, May 31. Otherwise, a three-fifths majority is required. And, if they go beyond that deadline, legislators don't receive per diem expense money.
Yet, with every other politician in the state opposed to him and a budget with VCC funding just around the corner, George Ryan continues in his attempt to close the facility.
VCC employees have now received their official layoff notices. The kindest thing we can say is that we are simply dumbfounded by the governor's insensitivity to the thousands of lives he is needlessly disrupting.
Only one explanation is possible for Ryan's continued crusade.
He did not expect to be abandoned on the issue by his party's legislative leadership.
He did not expect to be abandoned by rank-and-file Republican legislators such as Mike Bost and Dave Luechtefeld.
He did not expect organized labor, the business community and Southern Illinoisans from all walks of life to present a united front in fighting VCC's closure tooth and toenail.
We understand DOC must issue layoff notices now under the correctional officers' own union contract, if there is the slightest doubt in the governor's mind VCC won't be funded in the new budget. We don't like it, but that's the contract.
On the other hand, when VCC is funded, we expect to see the layoff notices rescinded, for there will be no justification then under heaven or earth for George Ryan to continue down this path.
 

Ryan appointment adds to legacy
 
OUR OPINION
State Journal Register
13 May 2002
 
IF NOTHING ELSE, at least Gov. George Ryan is consistent. He consistently makes us roll our eyes and say, "You've got to be kidding!" as he assists people in landing cushy, if questionable, government jobs.
Late last year, Ryan provided former Rep. Andrea Moore, R-Libertyville, with a $96,000 job as an assistant director of the Department of Natural Resources. It would have been less controversial if the department hadn't been getting along just fine without filling the position for the past seven years.
Just last week, the governor was at it again. This time Robert Healey, 72 of Chicago, who recently resigned as the director of the Department of Labor - where he made $105,000 - picked up a nice little $86,000 gig on the Illinois State Labor Relations Board. He will serve as the chairman of the two-member local panel of the Labor Relations Board, overseeing disputes that involve the city of Chicago and Cook County government.
In this case, the position, which was created two years ago, had never been filled.
"There is no reason for this position," said Sen. Larry Bomke. "This comes at a time when we are laying off state employees, talking about having to give an early release to prisoners, cutting Medicaid to hospitals and nursing homes, cutting services to the developmentally disabled, cutting school funding. Is this the right timing? Absolutely not."
DOES IT MATTER to Gov. Ryan if it's the right timing or even the right thing to do? Absolutely not. Unfortunately, as a lame duck, Ryan has little to lose, at least politically.
It would be nice if Ryan would just be honest about these kind of political shenanigans rather than forcing his public relations staff to sound foolish trying to justify the unjustifiable. "The board is stretched thin because this position wasn't filled," explained a Ryan aide last week.
That would have been a much more credible explanation if only Manny Hoffman, the chairman of the Labor Relations Board, actually felt like he needed help.
"I've been doing both (local panel and Labor Relations Board) for 11 years. The meetings are held the same day and everything," Hoffman explained.
Bomke plans to protest the governor's action on Healey's appointment, but he has little hope of actually blocking it. He cast the only no vote in committee on Moore's $96,000 DNR appointment.
"THE GOVERNOR holds the hammer on these things. I'm sensitive to what is going through the minds of other legislators. They have legislation they are concerned about that the governor can either sign or veto," Bomke said.
Some places, that's called blackmail. In Illinois, it's politics.
But there are at least two to blame here. Ryan is making this possible, but nothing says Healey has to accept this phony baloney job. In fact, it's a bit surprising the former head of the Chicago Federation of Labor would be interested in lining his pockets this way when so many lower-paid state workers with real jobs - prison guards, health-care workers and the like, are faced with losing their positions.
It's the kind of thing Healey used to condemn. In fact, back in 1990 in remarks to striking Greyhound bus drivers in Chicago, Healey said:
"It's not the American way that a bus driver can't afford to raise his family because of the greed of upper management. We have to say 'no' to greed .. ."
That makes us wonder; which has changed, the American way or Healey?
 

When AFSCME speaks, pols in Springfield listen
 
By Rich Miller
 May 12, 2002
There may be no more politically powerful union in Illinois than the American Federation of State, County and Municipal Employees. Want proof? Well, AFSCME brought thousands of its members to Springfield last week for its annual "lobby day," and both state legislative chambers used the opportunity to suck up a whole lot more than they ever would for any other labor organization. The Republican-controlled Senate didn't miss its chance to look good. The Senate Repubs are trying to deal with a Democrat-drawn legislative district map, so they must at the very least appear to be helping organizations that represent Democrat-leaning constituents. A powerful and active group like AFSCME can mean life or death for some of their members in closely divided or Democratic-leaning Senate districts. The chamber overwhelmingly approved legislation on AFSCME's lobby day that stops Gov. George Ryan from privatizing food services at state prisons. The governor claims privatization could save $16 million next fiscal year. You might think the party that represents the sort of voters who believe the government is the problem would eagerly embrace privatization. Wrong. AFSCME, you see, represents government workers. And government workers don't take kindly to privatization, to say the least. Plus, a bitter fight over unpaid leave and state worker layoffs has radicalized AFSCME's membership like almost never before. The governor has tried to split the union by going around its leadership to offer unpaid days off instead of layoffs. But the membership has held tight, and 4,000 showed up in Springfield to show their "solidarity." Many of those people undoubtedly signed up to work precincts while they were in town. Killing the anti-privatization bill would have meant certain opposition from the state employee union this fall. It's no mystery, then, why the Senate Republicans decided to throw a public kiss to the union. They had nothing to lose, and plenty to gain. And who was the bill's Senate sponsor? Why, Sen. Carl Hawkinson, of course Republican gubernatorial candidate Jim Ryan's running mate. Hawkinson said the privatization proposal wouldn't save any money, giving himself some conservative cover while simultaneously pleasing the union that contributed a fortune to Democrat Rod Blagojevich's primary race. The Democratic-controlled House used the AFSCME lobby day to do some sucking up of its own. Representatives unanimously approved AFSCME-backed legislation that allows state employees to opt out of their health insurance plans. The union claims the idea could save up to $32 million per year money that can be used to preserve tons of state jobs. A few days later, the Senate Republicans bowed deeply to the union again. The Senate Repubs have been getting hammered by the southern Illinois media because their recent budget proposal goes along with Gov. Ryan's plan to close the Vienna state prison. And AFSCME, which represents the prison workers, has made it abundantly clear that a vote to close Vienna could result in big problems this November. Senate President Pate Philip finally got the message and made a rare political trip to southern Illinois, flying down with the entire region's Republican legislative delegation to hold a press conference announcing that he has changed his mind. Pate pledged that the Senate would not pass any bill which included a Vienna closure, and, in a moment of pure chutzpah, warned the House not to pass a budget that closed the prison even though Pate was the only legislative leader to support shuttering the facility. The southern Illinois media has been full of reports about the human impact of shutting down the Vienna prison. And most area newspaper editorial boards have weighed in strongly against the idea. Ratcheting up the heat even further, Democratic gubernatorial candidate Rod Blagojevich promised a few weeks ago that his first act as governor would be to re-open the Vienna facility. There just aren't many good-paying jobs for average people down 'yonder, so unemployed prison workers would be in danger of losing everything. Besides, these ain't child-care centers. Communities which agreed to host state prisons took a big risk that the facilities would destroy their quality of life. At least, that's how they feel, and the anger and shock over the Vienna closure runs surprisingly wide and deep throughout the region, not just in the prison's immediate vicinity. By supporting the closure of one small prison in one tiny town, the Senate Repubs were endangering their political chances in several southern Illinois races, including Mt. Vernon GOP Rep. John O. Jones' hugely important campaign against Democratic Sen. Bill O'Daniel. Rep. Jones was at the press conference with Philip. Rich Miller also publishes Capitol Fax, a daily political newsletter. He can be reached at www.capitolfax.com
 

Impact's labor impact is great
 
Boot camp gives more to area towns than just jobs
 
By Chris Terry
11 May 2002
 
The proposed closing of the Greene County boot camp will have a more profound impact on the area than the loss of jobs in Greene County.
Many municipalities throughout West Central Illinois have called upon inmates at the Greene County Impact Incarceration Program, commonly called the boot camp, to assist in various public service projects.
Ashland had a crew of inmates workers three times in the past year, twice to clean up areas around the village's lakes and the third time to clean the downtown area in preparation for the Ashland Summer Days.
'1 know the guys have to be in prison, but it does a great deal for the community, and I hope it teaches those people something," said Ashland Village President Dave Handy. "I know Ashland would hate to see anything happen to the boot camp." One of the proposals to help ease the state money problems is to shut the Greene County facility.
A rally in opposition to that plan will be held noon today at White Hall Lion's Park.
Beginning at 3 p.m., anyone who has an opinion on the proposed plan to shut the camp can speak at the rally. The Greene

 

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The Ryan relationship
 
Art Wilson
11 May 2002
 
It seems that Mr. Ryan is still trying his best to slice and dice his way through the state budget by trimming off state workers wherever he can- wherever it does not affect him or other portions of the fat at the top, anyway.
I guess what's hard to understand is how can the state can be attempting to eliminate so many jobs, positions and facilities in a effort to create some cash, and then turn around and spend the money to purchase recreation land? The Department of Natural Resources recently bought about 750 acres of hunting land in Schuyler County for $1.1 million.
I think the people of rninois would rather have jobs than some place in which to go romping around.
But, then again, maybe there is some personal gain in it for someone, if certain purchases are made.
Makes me just a little suspicious when I see employees possibly losing their jobs because the state needs moola, and but it's out buying pastures of ground.
You know what else makes me a little leery? The relationship between Jim Ryan
and the governor. In the beginning, Jim Ryan was SUp" porting thec governor on the budget cuts and the license scandal.
Can someone tell me how everyone can be in the same house in the same bed and all of them see smoke and flames all around them, and yet, say, "What fire?" That's what the governor was saying about the license scandal - even though everyone in the bed knew it was on fire but him. And Jim Ryaff showed support for him through all of that.
So, why the sudden change of heart by Jim Ryan, when he recently suggested that the governor should resign? Could it be that they both realize that, as long as Jim supports George, the chance of Jim's winning the governor's office is about none?
So, the governor might say, 'Stand against me until you get elected, and then

we'll get back to business as usual.' I don't know about you, but it doesn't take the presence of rain for me to smell a wet rat.
Changing into sheep's clothing in plain view was not a good idea. Some of us out here are looking at the entire
picture, not just the frame-byframe action.
The fight to keep state workers on the payroll is not going to end anytime soon, and the governor knows this.
So, he is creating as much havoc as he can throughout the state and stressing out as many employees as he can at the same time.
We can at least look forward to the fact that Gov. Ryan will probably never be president - well, at least not of the United States.
Hopefully, the people will express their dislike for the way his people conducted business and show their frustration by voting against Jim Ryan. By doing this, at least we can get our punches in, even if it's at the end of the fight.
In the November election, support those who have Supported you.
Jacksonville resident Art Wilson's views appear each Wednesday.

Jim Ryan wants ban on employee contributions
 
By BERNARD SCHOENBURG
POLITICAL WRITER
10 May 2002
 
It should be illegal for employees of state and local governments to raise money for or contribute to their bosses, Republican gubernatorial candidate Jim Ryan said Thursday.
The ban on contributions from employees is part of an ethics plan that Ryan proposed in announcements in Chicago, Springfield and Peoria.
"I think its a new day, and its time to usher in a new standard of ethical behavior in our state," Ryan said. "If this bill passes, this will be the strongest piece of ethics legislation in this country."
Ryan said his plan is modeled after the federal Hatch Act, designed to keep distance between government service and politics.
"If you look at the federal government, they truly havent had the problems weve had in state government," he said.
Ryan, the states attorney general, is running for governor against U.S. Rep. Rod Blagojevich, D-Chicago.
The current governor, Republican George Ryan, who is not related to Jim Ryan, has had his tenure marred by a continuing federal investigation into corruption during his two terms as secretary of state.
Jim Ryan said his plan would make sure that government workers know their status at work doesnt depend on performing political tasks.
"They should know ... that as long as they do a good job, as long as theyre qualified, they dont have to sell tickets, they dont have to buy tickets, they dont have to do things politically to please the elected official in their office, any office," Ryan said. "All they have to do is come to work, work hard, be honest and do a good job."
He said the workers could volunteer for campaigns in their off-hours and could contribute to races for other offices, but they would be banned from fund raising for any state or local office.
The attorney general said corruption isnt related to party affiliation, so a change of parties controlling the governors office isnt the answer.
"Have Democrats held office too long in Chicago? Do you want me to rattle off the list of people who have been convicted?" Jim Ryan asked, mentioning Chicago aldermen and judges caught in the Operation Greylord probe of judicial corruption.
"It has nothing to do with party labels. Corruption has to do with greed and abuse of authority, abuse of power, abuse of office."
Ryans plan also would install inspectors general covering every agency under the governor and have those inspectors some of whom would oversee more than one agency report to a new Public Integrity Commission, helping ensure independence. The commission would have three members appointed by the governor, one by the attorney general and one by the auditor general.
He would ban for two years any state employee taking a job with an outside agency or firm if that employee had worked closely with that firm. A similar ban would cover local government employees.
And Ryan said he would reinstate the State Board of Ethics, as well as ban registered lobbyists from serving in any state agency or being named to any board or commission.
The states Gift Ban Act remains in limbo while being challenged in court, but Ryan said new legislation should be passed to ban government employees from getting gifts of other than nominal value. He said hed favor a limit of $25, except in special circumstances, such as when an employee has a longtime friend giving a gift not related to government service.
Blagojevich spokesman Doug Scofield noted that the Democrat had issued his own ethics plan in January. It also creates a board of ethics and would ban state employees from "doing any fund raising while on the job for any state official or political organization," and "protect them from being required to solicit donations."
They couldnt take donations from any entity that they regulate, either.
Gov. Ryan issued a statement Thursday renewing a call for passage of his own ethics legislation pending in the General Assembly.
"We do support that bill," Jim Ryan said. "We have encouraged the Senate to move on that bill."
Jim Ryan said he thinks hell be able to get his package passed next year because he will be governor, and "Im going to make it a priority."
He said that under his plan, contract employees also will not be able to contribute to their government bosses. He said he has taken contributions from lawyers who act as appointed special attorneys general, but he would not under the law he proposes.
"Im not going to unilaterally disarm in the middle of a campaign," Ryan said, adding he did do that to some extent by refusing contributions from his full-time employees.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 
 
 

Two-year-old vacancy filled

Despite budget crisis, governor gives job to ex-aide

By DOUG FINKE
STATE CAPITOL BUREAU
10 May 2002

As lawmakers debate whether to slash thousands of workers from the state government payroll, Gov. George Ryan is appointing a former Cabinet official to an $86,000-a-year post that has been vacant since it was created two years ago.

Robert Healey, 72, of Chicago resigned April 30 as director of the Department of Labor. He has been named chairman of the local panel of the Illinois State Labor Relations Board. The job was created in 2000 but never filled until now.

"It was important to have a full board," said Ryan spokesman Ray Serati.

But filling the post isn't sitting well with Sen. Larry Bomke, R-Springfield, who will see some of his constituents lose their jobs because of the state's financial problems.

"I don't like that at all," Bomke said. "Obviously, it's not important if it's been vacant for two years. This is just terrible timing."

The State Labor Relations Board resolves labor disputes among local governments, their employees and unions. From 1983 until 2000, it consisted of a chairman and two board members.

In late 1999, Ryan called for expanding two dozen boards and commissions, including the Labor Relations Board, which he wanted to consist of five members and include the two-member "local panel" that handles disputes involving only the city of Chicago and Cook County government.

As a result, Ryan could make all new appointments to the combined board.

And though the Labor Relations Board chairman had previously served in the same capacity with the local panel, the law that expanded the board created an eighth labor-relations position, chairman of the local panel.

"The board is stretched thin because this position wasn't filled," Serati said.

Manny Hoffman, chairman of the Labor Relations Board, said he doesn't feel overworked.

"I've been doing both for 11 years," Hoffman said. "The meetings are held the same day and everything."

Hoffman called back later to make it clear he thinks Healey's appointment is a positive development.

"Certainly he has the expertise to run that board because of his involvement in labor issues the past 40 years," Hoffman said.

Healey had been state labor director since Ryan took office in 1999. Prior to that, Healey served as president of the Chicago Teachers Union, the Chicago Federation of Labor and the Illinois Federation of Teachers.

Healey cited personal reasons for submitting his resigning as director of the Department of Labor. He earned $105,000 a year in that job.

His appointment to the labor board must be approved by the Senate. If it is, Healey's term will run until 2005. Ryan's term as governor ends in January. He is not running for re-election.

This is at least the second state official Ryan has placed in a long-vacant job since a state government hiring freeze was imposed in September. Late last year, former Rep. Andrea Moore, R-Libertyville, was installed in a $96,000-a-year position as an assistant director at the Department of Natural Resources. The job had been vacant seven years before Moore filled it.

Replacing Healey at Labor will be Bill Rolando, who is now the assistant director of the department. Rolando is also head of the Republican Association of County Chairmen in Illinois.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

 


SENATE PRESIDENT ANNOUNCES BUDGET WILL FUND PRISON
 
BY JEFF SMYTH
THE SOUTHERN
May 09 2002
 
VIENNA -- A collective, albeit guarded, sigh of relief was heard through the halls of Vienna Correctional Center Thursday after Illinois Senate President James "Pate" Philip, R-Wood Dale, announced he'll scuttle any budget bill that does not include funding for the prison.
"I will tell you that if the budget that we get from the House of Representatives does not include funds to keep this facility open, it will not pass the Illinois Senate. It will be dead on arrival," Philip said. "The Republican Caucus, all 32 of them, agree with that."
Philip was joined by area Republican legislators Sen. Dave Luechtefeld, R-Okawville, Rep. Mike Bost, R-Murphysboro, Sen. Frank Watson, R-Greenville and Rep. John O. Jones, R-Mount Vernon on a tour of the 37-year-old facility.
He addressed employees during a 3 p.m. shift change behind closed doors to announce the position of Senate Republicans. The news was met with several rounds of applause.
"There are people here who are smiling who haven't smiled in months," Jeff Jackson, union local president, said.
Philip admitted to a change of heart from a plan he and other Republican Senators endorsed in late April which outlined a budget that did not include funding for VCC.
He said public pressure, including from a rally staged earlier this week in Springfield by 5,000 members of the American Federation of State, County and Municipal Employees, had an impact.
"We had pressures from people from the district; from members of the General Assembly and, of course, we had the union come down and demonstrate," Philip said. "They made some very good points and we happen to think they are right."
Gov. George Ryan announced in February he'd close VCC and a youth camp in Valley View as means of addressing a budget shortfall, which he now puts at $2 billion.
Philip said he talked with Ryan about the announcement before departing the capital for Vienna.
"He doesn't like it too much, but we'll talk about it," Philip said.
"As I have said since last fall, my first choice is not to close prison facilities or to lay off state employees. I, too, would like to keep Vienna prison open and operating," Ryan said in a statement. "Since the rapid decline in revenues following the terrorist attacks of Sept. 11, I have sought the assistance of the General Assembly in balancing the budget. To date, no legislation to cut spending or raise revenues has been sent to my desk."
Philip, which put the shortfall at $1.2 billion, said the Senate is discussing a plan that would raise $650 million through "sin taxes" while paring another $650 million from the budget to offset the deficit. He said details of the plan are still being worked out.
But some layoffs are likely unless creative ways to save the state money can be developed. He suggested that state employees reduce the number of hours worked per week as a cost-saving measure.
"I would suggest that, instead of laying people off, cut the hours down to 35 hours a week, 32 or 37 hours a week," he said. "Everyone takes a little hit."
Union officials were pleased with the announcement, but cautious. AFSCME regional director Buddy Maupin said the Illinois Department of Corrections is still under orders to close the facility June 30, the end of the state's fiscal year.
"I don't know where this leaves the Department of Corrections. They are implementing a closure plan on June 30. They'll need to address these changing circumstances," Maupin said.
IDOC spokesman Sergio Molina said, indeed, the plan is to close the prison unless a budget with money for VCC is passed before the deadline.
"At this point, we still have our direction to proceed with closing," Molina said. "Obviously, we are excited that the president has decided to work with the legislature and hopefully with the governor's office and Bureau of the Budget in crafting a budget that will keep the facility open."
Some rank-and-file members whose jobs would be saved by Philip's promise also were reserved.
"I don't think we are going to stop the fight," Larry Flynn, a 17-year veteran of the prison, said. "We have to keep the pressure on just in case the legislators are still there after June 30 and the budget is not adopted."
"I'm waiting for the other shoe to flop," Lt. Paul Huntsaker said. "Do we lay off thousands of employees? Is there another institution that is going to close?
"I have brothers and sisters out there who I don't want to feel the anguish I've felt the last three months," he added.
jeff.smyth@thesouthern.com / 618-529-5454 x15073

 

VIENNA PRISON WINS MAY 15 FIGHT: BATTLE NOW MOVES TO JUNE 30 DATE

BY TRAVIS DENEAL
THE SOUTHERN
Wed May 08 2002

 

VIENNA -- Union workers at Vienna Correctional Center won another battle in the war to keep their prison open when the state backed down Wednesday from moving the closure date up to May 15, a union official said.

But, Buddy Maupin, American Federation of State, County and Municipal Employees regional director, said the real fight looms on the horizon.

"This is a short term victory," Maupin said. "It bides us time until we ... are able to fight the next fight."

That next fight is June 30, the end of the fiscal year. When he ordered the Vienna prison's closure, Gov. George Ryan originally planned for the prison to close at that time.

Then, citing the state's dire economic situation, Ryan ordered that the prison be closed on May 15. AFSCME, who represents the prison's union workers, filed suit in Johnson County to block moving the closure date forward.

First Circuit Judge James Williamson issued a temporary restraining order blocking transfer of inmates from the prison and closing procedures; both had begun.

The 5th District Appellate Court in Mount Vernon upheld the restraining order. On Monday, Williamson denied the state's motion to dismiss the lawsuit.

A similar lawsuit filed in northern Illinois was dismissed.

Now, Maupin said, it's up to all Southern Illinois residents to fight to keep Viena open by contacting state lawmakers.

"We all need to call, write or e-mail our legislators and demand they adopt a budget that will provide funding for Vienna Correctional Center for the coming fiscal year," Maupin said.

He said momentum from Wednesday's news meant increased enthusiasm for those involved. In addition, local prison workers will begin traveling in teams of four daily to Springfield to lobby to keep the prison open, he said.

It's critical to the prison that such efforts to fight the closing are made, he said.

"We have to win this," Maupin said.

travis.deneal@thesouthern.com / 618-997-3356 x 15816


 

 

BUDGET SHORTFALL GROWING

 

ANTHONY MAN
SPRINGFIELD BUREAU
Wed May 08 2002

sSPRINGFIELD -- The slow climb out of recession is failing to produce much new tax money to help fill the state's budget hole. Wednesday's rundown from economists: Personal income taxes -- down. Corporate taxes and fees -- down. Sales taxes -- down. Interest on state investments -- down. Inheritance taxes -- down.

"Even the weather worked against us, as a relatively mild winter curtailed the growth in public utility taxes. So for the most part, everything that could go wrong did go wrong," economist Jim Muschinske told the bipartisan Illinois Economic and Fiscal Commission.

About the only bright spot for the state budget is the lottery. Thanks mainly to the ticket-buying binge spurred by last month's large jackpots in the Big Game, the estimated take from the lottery is going up.

And that amounts to only a glimmer of good news. The state's estimated take from the lottery this year was revised up $40 million by Muschinske and his colleagues to a total of $570 million. But that pales in comparison to the numbers for the much bigger taxes that are expected to bring in $625 million less this fiscal year than the commission's February estimate.

The bottom line is state government now has a budget hole estimated at $1.35 billion. Dan Long, executive director of the Economic and Fiscal Commission, said the current state budget assumed $894 million more in revenue than the previous year. Muschinske and Long now expect to get $456 million less than in the last fiscal year, the first time since 1955 that the state has taken in less money than the year before.

The pace of the economic recovery indicates things are not going to improve quickly, said Edward H. Boss Jr., the commission's chief economist. Muschinske estimated general fund income would increase $380 million in the next fiscal year.

That means the state will have less money in fiscal year 2003 than it had in fiscal 2001.

"We expect the economic expansion to continue," Boss said. "That's the good news: The economic recovery continues on a sustained basis. The bad news is, this hasn't been translated into revenues to the same degree."

The Economic and Fiscal Commission is the bipartisan economic arm of the House and Senate. Its membership is divided equally between Democrats and Republicans and employs a professional staff whose forecasts are usually less optimistic and prove more accurate than estimates from the governor's budget office.

Michael Colsch, deputy director of the governor's budget office, said after the commission hearing that there are no significant differences between his office's latest estimate and the commission economists' latest estimate. "Overall we're pretty much in agreement."

Even though the economy is still struggling and unemployment is higher than it used to be, the lottery is doing well. "Lottery has had a good year almost the entire fiscal year," Muschinske said.

A central factor is the huge jackpots from the multi-state Big Game. In late August, the Big Game jackpot was more than $110 million. This year, the jackpots started rolling over in February, culminating in a $331 million jackpot for the April 16 drawing.

When those jackpots start growing, lottery sales take off. Sales just before the $331 million drawing were $1.2 million per hour. Sales for a $5 million jackpot run at about $60,000 per hour, said Anne Plohr Rayhill, spokeswoman for the Lottery Department.

Rayhill said the agency has also seen growth because of a game-by-game revamp of operations and marketing. "That has finally started to pay off."

State Rep. Rosemary Mulligan, R-Des Plaines, offered an alternative explanation at the Economic and Fiscal Commission hearing. She said the evidence seems to show that people gamble more when the economy is lousy.

Rayhill said she did not have information that could confirm or refute Mulligan's assertion.

Anthony Man can be reached at anthony.man@lee.net or (217) 782-4043.


higgins05092002.gif

State income, sales tax hikes ruled out
 
By DOUG FINKE
STATE CAPITOL BUREAU
09 May 2002
 
Income and sales tax hikes have been ruled out, as has borrowing against the state's share of proceeds from the national tobacco lawsuit settlement, to help solve Illinois' budget crisis.
Everything else is on the table, according to budget negotiators, even long-shot options such as a tax amnesty program and early retirement incentives for state employees.
After a series of one-on-one meetings with the four legislative leaders, Gov. George Ryan brought them all together again Wednesday to hash out a budget plan for the fiscal year that begins July 1. As expected, there is no support for raising either income or sales taxes, Ryan said.
Moreover, he said, there is virtually no support for Senate Minority Leader Emil Jones' plan to sell the state's future tobacco settlement collections for 55 to 80 cents on the dollar.
"It's a one-time fix and doesn't do anything in the (future)," the governor said.
"There were no takers," House Speaker Michael Madigan said of his fellow Chicago Democrat's plan. "I don't like borrowing."
Madigan added that the possibility of an early retirement incentive program is "kind of limping along."
"There doesn't seem to be a lot of support for it," he said. "It's a costly item for the state pension system. You may gain some savings now, but there's a long-term payment for it."
Early retirement has been cited as a way to reduce the need for so many layoffs. Such a plan gives older, more highly paid workers a financial incentive to retire earlier than normal. Madigan is skeptical, though, both because the incentives add debt to the pension systems and because the last one in the early 1990s didn't save as much money as promised.
Madigan also said he opposes a tax amnesty suggested by Ryan in his February budget speech.
"It rewards tax cheats, and it only saves the state about $7 million," the House speaker said.
One point of the meeting Wednesday, Ryan said, was to remind the four leaders of just how deep a budget problem exists.
The Economic and Fiscal Commission, which makes financial forecasts for the General Assembly, now says state government will probably end the 2002 fiscal year with $456 million less in tax collections than the year before. Since revenue was expected to be up by $895 million when the budget was passed last May, there's a $1.35 billion revenue hole in the current budget.
However, Ryan already has cut about $700 million from the fiscal 2002 budget. If lawmakers insist on restoring those cuts, the hole is actually $2 billion, he said.
"It's going to be a tough situation," Ryan said.
Jones said his caucus "is vehemently opposed to cutting education, cutting programs to the needy, and we don't want to have any more regressive taxes," such as hiking the cigarette tax.
House Republican Leader Lee Daniels said the House GOP will absolutely insist on restoration of all money cut from programs to aid the developmentally disabled. Daniels, of Elmhurst, also said it is too early to talk about tax hikes.
Madigan, meanwhile, asked House Democrats to fill out a multi-page survey of programs they want fully funded, add up the cost and then be prepared to support either tax hikes or other budget cuts as needed.
Madigan spokesman Steve Brown said the survey is intended to give Madigan more detailed information about the programs his members want saved and those they are willing to see cut.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

State workers march on Capitol
AFSCME members protest cutbacks
 
By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
8 MAY 2002
 
State employees gathered Tuesday for a march on the Capitol to protest layoffs and facility closures.
The march featured an estimated 4,000 members of the American Federation of State, County and Municipal Employees, government workers largest union. Springfield police, who helped direct traffic away from intersections clogged with marchers, supplied the crowd estimate.
After rallying at the Prairie Capital Convention Center, marchers converged on the Capitol to urge lawmakers to seek alternative solutions for the states estimated $1.3 billion budget shortfall.
Union officials said they have been notified of 1,800 impending job cuts, including those resulting from facilities that face closure. AFSCME spokesman Marrianne McMullen said the union is braced for word of more layoffs.
The job toll so far parallels the nearly 1,800 job cuts Gov. George Ryan included in his February budget proposal, when the revenue shortfall was projected to be $500 million or less.
AFSCME president Henry Bayer presented a list of revenue-saving measures he said could balance the budget instead of layoffs. Several of the ideas were part of a recent Senate Republican-proposed budget package, including cigarette and riverboat gambling tax hikes and a refusal to apply recent federal corporate tax breaks to state taxes.
Bayers list also included waiting for better times to pay back $226 million to the Illinois Rainy Day Fund and an income tax amnesty program that was part of the governors budget proposal.

news2050802.jpg

AFSCME members fill the streets Tuesday during a march to the State House that followed a rally at the Prairie Capital Convention Center

Ryan has said he would not reconsider the layoffs that already have been announced without contract concessions from AFSCME, such as a mandatory furlough or wage freeze.
Bayer said the governor is trying to pin the blame for the states fiscal woes on the union. He said AFSCME members would share in the sacrifices needed statewide for other budget-preserving steps.
"Our members smoke and pay the same taxes on cigarettes as other residents," Bayer said. "If you work for the government, you dont get a discount on your taxes."
Bayer said state government operations were not severely affected by the presence of thousands of state employees at a rally on a workday. He said many of those who intended to march typically work Saturday and Sunday and have some weekdays off, work second or third shifts, or marched on their lunch hour.
Several marchers, however, said they explicitly had put in to get Tuesday off and traveled from various parts of the state for the gathering.
Department of Corrections spokesman Sergio Molina said DOC facilities were well-equipped to handle the absences.
"The union has been pretty up front with telling us about their plans (to march)," he said. "Im not aware of us altering our operations to accommodate the day off."
Workers from several facilities clustered together in the crowd. They were easily spotted because they waved matching signs and wore matching-colored T-shirts with slogans criticizing the budget cuts.

State Senate votes to bar privatizing food service
 
By Kurt Erickson
Statehouse bureau chief
08 May 2002
 
SPRINGFIELD -- Not only are his budget-cutting efforts being blocked in courtrooms across Illinois, but one of Gov. George Ryan's plans to save the state money was stymied by lawmakers Tuesday.
The Illinois Senate, on a 47-7 vote, sent the governor legislation that would bar him from moving forward with a proposal to allow private companies to cook and serve food at prisons and other state facilities.
The move to privatize was among several budget-saving plans Ryan announced earlier this year aimed at attempting to close a growing gap in the budget. It was estimated that the measure would have saved the state at least $16 million.
In addition to meeting resistance from lawmakers, the plan was successfully opposed in court by unionized workers who could lose their jobs under the proposal.
Ryan also has been stopped in court from closing one state prison and downsizing a home for developmentally disabled people in Lincoln.
In voting against the privatization bill, state Sen. Donne Trotter, D-Chicago, said, "There is no guarantee of savings," he said. "We also may be compromising security."
AFSCME rallies
The Senate's vote came as more than 3,000 members of the American Federation of State County and Municipal Employees union held a rally at the Statehouse to lobby lawmakers and Ryan against further cuts.
Prison guard Ron Brown, who is president of AFSCME Local 1133 at the all-female Dwight Correctional Center, was among those visiting local lawmakers to argue his point.
"Gov. Ryan has put a bull's eye on the state employees," Brown said. "We are not to blame for the budget problems. They have overspent and they have to rectify it."
T.J. Swartz, a guard at Logan Correction Center, said the state should look elsewhere for money.
"There are other ways around this than cutting jobs and closing prisons," he said.
House approves cost-cutting plan
In a separate budget move Tuesday, the House OK'd legislation that could generate some much-needed revenue for the state.
The proposal, which now heads to Ryan for final approval, could generate more than $16 million by allowing state workers to opt out of the state's health insurance program, which by law covers all state workers.
The governor's office sounded an optimistic note about the plan.
"If there is budget savings to be had there and it would work, I think we would be interested," said Ryan spokesman Dennis Culloton.
Lawmakers are scheduled to meet through May 17, but getting a quick agreement on a spending plan for the fiscal year beginning July 1 appears in jeopardy. Senate President James "Pate" Philip, R-Wood Dale, is open to almost all suggestions except increasing state income tax or sales tax rates.
"That's off the table completely as far as I'm concerned," said Philip.
Philip said Tuesday that he could support an expansion of gambling as a way to generate additional state income, as well as a hike in the tax on casino operators.
One anti-gambling group, the Illinois Church Action on Alcohol and Addiction Problems, expressed concern that Philip and others were paving the way for an 11th-hour gambling deal that could result in more money for the state at the expense of expanding gaming in the state.
"Gambling taxes are not a stable source of revenue," said Anita Bedell, the group's executive director. "To maintain or increase revenue, gambling must continually expand, addicting more people in its wake."
Senate Democratic Leader Emil Jones and House Speaker Michael Madigan, meanwhile, met separately with Gov. Ryan Tuesday to hash out various budget proposals.
Culloton said the "one-on-one brainstorming sessions" are a way for the governor to try and build consensus for a budget compromise.
Jones said the governor was non-committal to his idea of using proceeds from the tobacco settlement to bail the state out of its budget hole.

Governor goes one-on-one in budget talks
 
By DOUG FINKE
STATE CAPITOL BUREAU
8 MAY 2002
 
Meeting as a group hasn't done much to help resolve the state's budget problem, so Gov. George Ryan is meeting one-on-one with the General Assembly's leaders.
Ryan began summoning the four legislative leaders to his office Tuesday to see whether any of them has new ideas for closing a $1.2 billion to $1.4 billion budget hole. The individual sessions come after a series of meetings with Ryan and the four leaders together failed to produce much progress on a budget agreement.
"The governor is trying to see whether the leaders have any ideas they want to speak about more frankly outside the context of a full meeting," said Ryan spokesman Dennis Culloton. "Having one-on-one brainstorming sessions seems like as good an idea as any. We just want to trade some ideas, see if they have a new twist on old ideas and bounce ideas off of each other."
House Speaker Michael Madigan, D-Chicago, spent about 30 minutes Tuesday meeting privately with Ryan. Madigan spokesman Steve Brown said, "No new proposals were made."
Senate Minority Leader Emil Jones, D-Chicago, said he spent his meeting with Ryan pushing his plan to sell the state's future proceeds from the national tobacco settlement. Jones believes the state can collect 75 to 80 cents on the dollar, which would provide up-front cash to balance the budget.
"I'm not for cutting employees or closing facilities," Jones said. "I'm not for cutting education or taking money from child-care programs."
Senate Republicans offered the first potential remedy by cutting about $600 million in spending and raising $600 million in taxes. Their plan calls for increasing taxes on cigarettes and gambling and canceling a windfall state tax break for business that is part of a federal economic stimulus package.
Senate President James "Pate" Philip, R-Wood Dale, had yet to meet individually with Ryan but said the one-on-one sessions may have merit.
"Sometimes people don't want to talk very straight when they've got other people sitting there," Philip said.
While Ryan tried to kick-start the budget talks, the General Assembly Tuesday was sending mixed messages on the issue. The Senate voted 47-7 on House Bill 3714, which would prohibit the state from privatizing food service operations at state prisons. Ryan wanted to have private companies serve food in prisons, saying it would save $16 million a year.
Backers of the bill said privatization would jeopardize prison safety. Some downstate legislators also said the changeover could hurt businesses that now provide commodities to prisons.
"The projected cost savings probably would not occur," said Sen. Carl Hawkinson of Galesburg, the Republican candidate for lieutenant governor and Senate sponsor of the bill.
The House, meanwhile, voted 115-0 on Senate Bill 1859, which would allow some state workers to opt out of the state health insurance plan. Depending on the number of employees who do, the state could save $8 million to $32 million a year, supporters said.
Employees would need to show proof they had other insurance coverage before they could opt out, thereby pocketing the employee share of the health insurance costs.
Rep. Bill Black, R-Danville, voted for the bill but urged employees to be cautious before opting out of the health plan. He noted that employees who opt out lose all of their insurance benefits, including vision and dental care. Employees who opt out and later decide to rejoin the plan will be subject to restrictions for pre-existing conditions.
Both the privatization and insurance bills go to Ryan for his signature.
State lawmakers will be told today that their worst fears are confirmed and the state actually will lose money this budget year for the first time in half a century.
The Economic and Fiscal Commission, which makes financial forecasts for the General Assembly, will report that tax collections for fiscal 2002 will be down $456 million. Because state lawmakers assumed tax collections would go up by nearly $900 million this year, the budget deficit is $1.35 billion.
The commission will tell lawmakers that tax collections should increase by a paltry $300 million during the budget year that starts July 1. The state could collect an additional $160 million if the General Assembly passes the Senate Republican proposal canceling the state's portion of the business tax break passed by Congress.
 

Pike work camp escapee apprehended
 
Police in right place at right time
 
BY DARRIN BURNETT
5 May 2002

 Austin Bishop was in maybe the worst place possible when police realized he was missing from a Pittsfield Work Camp work detail Saturday morning.
He was in a police car.
Mr. Bishop, 20, allegedly escaped from the work detail at Winchester High School, said a Winchester Police press reJeast'.
Officer Dave King was sent out Saturday after residents on Main Street reported that someone was knocking on the doors of their homes, asking to use
the telephone. At the time, Officer King didn't realize there was a missing prisoner."They had'nt reported him missing yet,"said Officer King.  Mr. Bishop was te1ling people he had been in a car accident and needed to call his mother. According to Officer King, Mr. Bishop had turned his pants inside inside-out to hide the telltale prison stripe and had stripped down to a T-shirt. No one let Mr. Bishop, who who according to the Illinois Department of Corrections website, was originally sentenced to the work camp on a charge of residential burglary, into their home."He went to an elderly woman's house and she said 'If you've been in an accident, I'll call the police' and when she came back, he was gone" Officer King said. Officer King got Mr. Bishop in his squad car, and was about to have Mr. Bishop direct him to the accident scene, when a bulletin came over his police radio that someone matching Mr. Bishop's description had escaped. "I had just gottenready to pull out," he said."I turned the radio down low so he couldn't hear."  Mr. Bishop was taken into the custody without incident and turned back over to the Department of Corrections. Eric Tuey, another Winchester officer, said his understanding was that Mr. Bishop was already being taken to the Pontiac Correctional Facility Saturday afternoon.
It is believed that Mr. Bishop was missing from the work detail for less than 10 minutes before being captured and he apparently escaped after going on a restroom break, Officer King said.
Officer Tuey praised the people who did not let Mr.
Bishop into their homes.
"They did what they were supposed to do," he said. "I don't know what might have happened if they had let him
in. "

 

Revenues blamed for budget woes
 
Overspending also cited as culprit
 
By DOUG FINKE
STATE CAPITOL BUREAU
5 May 2002
 
In spring 2000, the state had so much cash on hand that lawmakers argued over how best to hand out election-year tax breaks.
When they were done, they had helped homeowners, gasoline buyers, older prescription-drug users and even the working poor. Even then, many legislators complained that they didn't provide enough tax relief.
Two years later, lawmakers are debating how to get some of that money back through higher taxes on tobacco, gambling and possibly income. And even if they do increase taxes, it likely won't raise enough money to balance next year's state budget without additional spending cuts.
The cuts would be deeper than those already announced, which will result in thousands of state worker layoffs, closings of prisons and mental health facilities and reduced payments to doctors, hospitals and pharmacies that serve the poor.
Lawmakers will try over the next two weeks or more to create a balanced budget for the next fiscal year, which begins July 1. The General Assembly is scheduled to adjourn May 17, but legislators may extend the session past then because of the budget headaches.
The meltdown of state finances has left people angrily trying to blame the mess on someone. Gov. George Ryan and the General Assembly are blamed for overspending the state into the poor house. The Ryan administration and some other state officials blame the problem mainly on a precipitous drop in state tax revenues, the severity of which caught everyone off guard.
As one might expect, there is some truth in both.
The state's budget problem boils down to this:
When the current budget was put together in spring 2001, it was based on the idea that the state would collect $894 million more in taxes this fiscal year - which started July 1, 2001 - than it did the year before. That didn't happen. Instead, tax collections fell -- for the first time in 50 years -- leaving a $1.2 billion to $1.4 billion hole in the budget.
Put another way, think of a breadwinner who is told he or she will get a pay raise this year. The family puts together a household budget for the year based on that raise. The new year starts, but the employer delays the pay raise. Later, he cancels it. Finally, he announces all his workers must take a pay cut. For most families, that would cause financial problems.
"Clearly, (this year) we spent more than we are taking in," said Steve Schnorf, Ryan's budget director. "But the reason isn't that our spending is above the level we anticipated. The reason is revenue is far below what we anticipated."
However, J. Fred Giertz, an economist at the University of Illinois who has advised the state on financial issues, believes the state could have done more to brace itself for a downturn.
"The budget-making process last year at this time was much too optimistic," Giertz said. "The feeling was full speed ahead, and if the recession comes, we will make (cuts)."
At the same time, Giertz said, no one - including himself - foresaw how badly state revenues were going to drop this year.
"We had probably the mildest recession in the history of the United States, but we had a catastrophic downturn in revenues," he said.
Financial experts are still trying to figure out exactly why. Increasingly, they are focusing on the stock market. As stock prices soared during the 1990s, more and more people bought into the market. The money they made was subject to income taxes, both federal and state. As the stock market climbed, so did the amount of money that poured into Illinois' coffers. State officials saw income tax proceeds soaring, but didn't know exactly why.
"We couldn't explain all the personal income tax we were collecting based on what we knew about growth of jobs and wages," Schnorf said. "We (now) believe it was probably capital gains and profits in the stock market."
Unfortunately for Illinois (and for most of the other 49 states), the stock market started sinking like a rock, taking all that extra income tax with it.
"When the market tanked, it had a much bigger impact than any of us expected," Giertz said.
A key factor in creating a new state budget each year is "revenue growth." Even if lawmakers don't increase taxes, the state generally collects more in taxes than in the previous year. People buy more things or pay more for the things they buy, which produces more sales tax revenue. Companies that sell more pay more corporate income tax. More people get jobs, and those already working get raises, which generate more income tax collections.
At some point, budget negotiators settle on a number for expected revenue growth and then decide how to spend the cash. Both Ryan's budget office and the Economic and Fiscal Commission, a group employed by the General Assembly to make financial forecasts, estimate the revenue growth. Both the budget office and the commission hire outside economists to help them make forecasts.
"Forty-five states, plus us, plus (the commission) missed what was going to happen -- and missed it really big time," Schnorf said.
To have predicted things correctly, the forecasters would have said the state would lose money this fiscal year, even though that hasn't happened since 1955. Even during the financial crisis of the early 1990s, state revenues kept going up - they just didn't go up fast enough to cover all the state's expenses.
"If we had predicted zero growth, no one would have believed us," said Dan Long, executive director of the Economic and Fiscal Commission.
Using the advice of their outside experts, both the budget office and the commission predicted the state would collect more money this year. That's what the budget negotiators looked at when they put together the budget a year ago. Had lawmakers used the more conservative estimate from the commission, the state would be about $170 million better off than it is.
"We'd only be $1 billion off instead of $1.1 billion or $1.2 billion," Schnorf said.
Not everyone believes the problem can be traced solely to a drop in tax receipts. Sen. Steve Rauschenberger, R-Elgin, a proponent of smaller state government, said lawmakers got used to the boom times of the late 1990s.
"Everything went up. (State employee) head count rose by 10 percent over three years," Rauschenberger said. "School funding increased by $1.6 billion in three years. We had two big bumps in nursing home rates. There was almost too much revenue. Nobody had to say no to anybody."
When spring 2001 rolled around, budget negotiators knew that the good times were slowing down and that some programs wouldn't get as much money as they wanted. Critics contend that one budget trick that's been used in the past is to underestimate the cost of some programs. That makes money available to spend on something else, although inevitably, the bill comes due.
One area where costs were underestimated was health care, both for state employees' health insurance and for the poor through the state Medicaid program. Barely two months after the budget was approved last May, state officials knew there wasn't enough money in it to cover health costs.
Schnorf said those expenses were not deliberately underestimated to help balance the budget. Rauschenberger thinks the costs were underestimated, but said that is only a small part of the state's problem.
"I was nervous about $200 million to $250 million," Rauschenberger said. "I thought if everything goes bad against us, we would have a little bit of a problem. Nobody was wrong, but everybody was wrong. When we passed a budget, we passed a budget we thought was reasonably (balanced)."
Since the state's budget problems began, politicians have called for reforms in the way the state does business. They want the state to change how it predicts revenue growth to make the estimates more accurate. They want the state to deliberately spend less than it takes in and build up cash reserves that can be used in an emergency.
However, to handle the current financial problem - both to cover the lost revenue and have money to pay late arriving bills - the state would have needed more than $2 billion in reserve. When lawmakers clamored for tax relief in 2000, many said the $1.5 billion the state had in the bank at that time was too much.
"They're never going to be able to build up a $2 billion surplus," Giertz said. "It's not possible politically. They will either have to spend it or cut taxes. It's the fundamental difference between the way you and I operate and the way government operates."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
sss

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
05 May 2002
 
The ever-cautious Attorney General JIM RYAN apparently wasnt cautious enough last week to think through all the angles before suggesting that Gov. GEORGE RYAN resign.
Oh, excuse us. Ryan didnt call on Ryan to resign. Ryan said Ryan should "seriously think about" resigning. You dont want to get too direct or forceful here.
The source of all this folderol was a newspaper poll that asked people if they thought Ryan the Governor should resign. Its one of those simplistic poll questions that evokes a simplistic response. Why not ask people if they want to get rid of all taxes without explaining what that will mean to government services? But, hey, it makes for good headlines.
Anyway, the poll showed 67 percent of voters think Ryan the Governor should resign. The newspaper asked Ryan the Wannabe Governor if he, too, thought Ryan the Governor should resign. Thats when Ryan the Wannabe came up with that "think about" it line.
Thats also when the criticism began. Some said Jim Ryan was wishy-washy. Either call on the governor to resign or shut up. Others said he was out of line to suggest the governor of his own party even think about resigning. Then there was the faction that said Jim Ryan was being self-serving, using the poll to distance himself from the troubled governor.
Some complained that Jim Ryan put House Republican Leader LEE DANIELS on the spot. Daniels has to sit in a room and negotiate a budget with the governor. As state Republican Party chairman, he had to watch while the partys candidate for governor said the current guy maybe should quit.
We heard all of that other stuff. We dont recall hearing anyone say Jim Ryan said the right thing.
Our favorite response to Jim Ryans comments came from DENNIS CULLOTON, the governors press secretary.
"Jim Ryans worried about polls these days. Hes a candidate. His own poll numbers arent that great," Culloton said.
One of these days weve got to check ROD BLAGOJEVICHs campaign disclosure reports and see if Cullotons comments show up as an in-kind contribution.
OK, so lets say Ryan the Governor decides to resign. Quick, kids, do you know who takes over then? Thats right. Lt. Gov. CORINNE WOOD.
When last heard from (outside of her annual Abercrombie & Fitch boycott message), Wood was running for governor. She collected 27 percent of the vote. Thats roughly equal to Ryan the Governors approval ratings and people are demanding that he quit.
Earlier this year, the Chicago Tribune did a lengthy story about lawmaker pork in light of the current budget crisis. According to the story, Gov. Ryan suggested a freeze on some lawmaker pork during a closed-door meeting. Quoting unidentified witnesses, the newspaper said House Speaker MICHAEL MADIGAN, D-Chicago, angrily told Ryan: "Thats my money. You cant touch it."
The quote has assumed somewhat legendary proportions around the Statehouse. It keeps getting repeated, especially by people intent on showing that Madigan cares more about preserving lawmaker pork than saving programs for kids and the poor.
There have also been persistent stories that Madigan privately seethed over the quote because he didnt say it. Some have blamed Madigans chillier-than-usual relationship with the news media of late on his anger over the quote.
That it still bugs him is patently obvious. The idea of freezing capital projects came up again at a private meeting between Madigan and the leaders a couple of weeks ago. Madigan refused to comment.
"The last time I spoke in closed, private meetings, I was quoted liberally," Madigan said.
All of this is a prelude to last week when Madigan was asked flatly, did he say, "Thats my money" or not?
"No, I did not say that," Madigan said. "I know what I said, and I did not say that. Im not going any further."
Madigan walked off without answering any other questions.
Heres an idea that we hope catches on. The Pharmaceutical Research and Manufacturers Association (drug companies) scrapped its regular legislative reception this year.
In its place, the association and its members staged a charity bowling tournament. It raised more than $9,000 for the National Childrens Cancer Society. Plus, organizers said staging the tournament cost far less than putting out food and drinks for lawmakers. Sounds like an unbeatable combination.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
 

SEVEN PROJECTS APPROVED
 
SPRINGFIELD BUREAU
Sat May 04 2002
 
SPRINGFIELD -- Here are the adult men, women and juvenile prison projects that have been approved for construction. The projects cost $543 million and they will add 7,740 beds to the Illinois prison system.
The projects, the number of beds, their cost and their progress are:
Thomson Correctional Center, a $143 million, 1,800-bed maximum-security prison that is built and empty. It will not house prisoners during the fiscal year that starts June 30 because the state hasn't got enough money to operate it.
A $140 million maximum-security prison in Grayville with 1,800 beds. Bids will be opened this month. Construction is expected to take two and a half years.
A $94 million, 1,600-bed prison at Stateville. The prison will be completed within three months.
An $80 million medium-security women's prison in Hopkins Park with 1,800 beds. It will be bid in July and construction is expected to take more than two years.
A $34 million 300-bed prison at the Illinois Youth Center in St. Charles. The project is under design and bids could be let in 6 months.
Addition of 60 beds to the Illinois Youth Center in Kewanee for $4 million. The project must be bid again.
Addition of 380 beds to the Illinois Youth Center at Rushville for $48 million. The two-year project is about halfway to completion and is expected to be completed in a year.
Sources: The Capital Development Board and the Illinois Department of Corrections.

 

MARK DURAN SAMUELS: DELVING INTO THE MAILBAG, WE CHECK THE PUBLIC PULSE
 
5 MAY 2002
 
Let's go to the mailbag today and see what's uppermost in the minds of our readers ...
LAWRENCE W. CRALLEY of Murphysboro says, "Consider this scenario: Remove the not-for-profit status from all political parties. Establish a flat 15 percent tax on their income, and require annual reports to the Internal Revenue Service like any honest business."
Lawrence says we should limit those able to make contributions to "individual American citizens."
"No club, no association, no union, no business, no country, no anythings -- just individual American citizens," Lawrence urges, with no limit on the amount that may be donated.
That's all well and good, Lawrence, but how are you and I going to compete with billionaires like Bill Gates? If money buys access, you and I will be in the upper-deck seats -- if we get in the ballpark at all.
I do like the idea of taxing the political parties, though.
BRIAN NELSON -- also known as "N31449" to his fellow inmates at Tamms Correctional Center -- takes issue with the possibility that nonviolent drug offenders may be released from custody early, as a result of the state's budget crunch.
Corrections officials are considering, too, whether they'll even accept drug offenders into the state system if they have less than a year's time to do.
" ... I feel it would be more justified if he (Gov. Ryan) were to call for the release of those prisoners whom the Department of Corrections is holding beyond their original release date," Brian urges. "DOC needs to reinstate all day-for-day credit."
I can see why Brian might feel that way. He's been stacking time since 1982 for escape, armed robbery, aggravated battery with great bodily harm, and murder with intent to kill or injure.
Brian's projected parole date isn't until August 2015.
MARK DURAN SAMUELS is opinion editor of The Southern. He welcomes your comments via the e-mail address mark.samuels@thesouthern.com.

TO BUILD OR TO CLOSE: THE STATE'S OWN PRISON DILEMMA
 
BY RICHARD GOLDSTEIN
SPRINGFIELD BUREAU
Sat May 04 2002
 
SPRINGFIELD -- The state is spending hundreds of millions of dollars on construction projects to add thousands of beds to the prison system even as it proposes closing institutions, including the Vienna Correctional Center.
For the past 17 years, the Illinois Department of Corrections has built about one prison a year, said agency spokesmen. Now, Gov. George H. Ryan and the Illinois Department of Corrections say the dire budget situation makes it necessary to close Vienna and the Valley View Youth Center in St. Charles.
Sergio Molina, communications chief for the department, said the agency's policy is to reduce the overcrowding in maximum security where many prisoners are two-to-a-cell.
"It makes sense to us to eventually single-cell maximum security," Molina said. "Those are your most volatile, dangerous non-rule following inmates."
He also argued that closing Vienna and Valley View could be because of declining prison population.
Declining population
Agency statistics show that after at least a decade of steady increases, the adult prison population fell 7 percent in the past 10 months. As of April 28, there were 42,492 inmates in state prisons.
The Capital Development Board, the state construction agency, reports that there are eight projects valued at $543 million that have just been completed, are in progress, or are being readied for construction. The projects would add 7,740 beds for men, women and juveniles.
Prison analysts questioned whether the Corrections Department has thought out its policy.
Tom Castellano, head of the administration of justice program at Southern Illinois University at Carbondale, said the agency has chosen the wrong target for closure. He said the Corrections Department routinely classifies inmates at a higher security level than necessary. As a result, the department needs more expensive high-security prisons than it does low-security ones like Vienna.
Building boom
The agency is building high-security men's as well as women's and juvenile prisons. For example, the $143 million Thomson Prison in northwestern Illinois is finished, but will be mothballed for the fiscal year that starts June 30 because the state doesn't have enough money to operate it.
Meanwhile, Mia Jazo-Harris, administrator for the office of public affairs for the Capital Development Board, said bids would be opened this week on the $140 million, 1,800-bed maximum-security prison planned in Grayville.
Charles A. Fasano, director of monitoring for the John Howard Association, a prisons watchdog group based in Chicago, scratched his head over the building boom. "We're closing some and opening others, which doesn't make a hell of a lot of sense," he said.
But Fasano agreed that taking beds out of circulation is prudent. "If they have to, closing these beds might not be a high-risk maneuver."
Vienna had averaged about 1,100 inmates in its population, but was down to 470 last week, Molina said. Last month, a circuit court judge in Johnson County ordered a halt to transfers out of prisoners out of Vienna.
Castellano said the numbers suggest that closing prisons would not endanger lives, as claimed by the union that represents most prison workers.
"It does indicate that the prison system probably can reduce capacity and should reduce capacity," Castellano said. If Vienna were closed "things aren't as disastrous for the prison officers and the inmates as many might expect."
Over capacity
Despite agency statistics that show a decline in the prison population, the American Federation of State, County and Municipal Employees says state prisons still have 42 percent more inmates than they are rated to hold.
Buddy Maupin, the Marion-based regional director for AFSCME who specializes in prison issues, said Ryan's suggestion last month that he might release 4,500 low-level offenders early is tacit admission that the system is overcrowded.
"They've gone from 170 percent of capacity to 140 percent. So since they're only at 140 percent of rated capacity, their solution is to close prisons. This is nuts," Maupin said. "They're still 40 percent above their rated capacity, and they recognize that because of the building spree they're on."
Molina, the agency spokesman, said it would not be dangerous.
"Everything we've done so far has put us in a position to be able to absorb these guys in a safe manner," he said.
He added that tighter discipline instituted by the agency in high-security prisons makes them safer, even with additional prisoners.
Molina said high-security prisons are more crowded than low-security ones, and deploying 1,400 beds now unoccupied at the new Lawrence Correctional Center would lessen the impact of closing Vienna.
Forced move
Molina said budget pressures have forced the Corrections Department to make plans to reduce operating costs, even while construction continues. He noted that the state can issue bonds that generate money for construction projects, but it cannot use the money for day-to-day operations.
Molina said the agency would not close a prison if operating cash were not in short supply. The latest projections are that the state must come up with about $1.2 billion from tax increases, spending cuts, or both to balance the budget for the fiscal year that starts July 1.
"We wouldn't be closing facilities if we weren't in the situation we were in," he said.
richard.goldstein@lee.net / 217-782-4043.

 

Remap challenge dismissed
 
GOP leaders tried to nullify plan
 
By MIKE RAMSEY
COPLEY NEWS SERVICE
04 May 2002
 
CHICAGO The Illinois Republican Party failed to prove that last years Democrat-controlled redistricting process will disenfranchise black voters in state House and Senate elections, a panel of federal judges has ruled.
The unanimous decision, filed Friday in U.S. District Court in Chicago, dismisses a GOP-sponsored lawsuit against the Legislative Redistricting Commission and the Illinois State Board of Elections. The suit was considered a last-ditch maneuver by Republicans who fear losing ground to Democrats in the legislature under the new boundaries.
Attorneys for both sides in January debated whether the 2001 map for General Assembly districts would reasonably assure blacks, who comprise 15 percent of the states population, a proportional share of seats in the legislature at least 17 House seats and at least 8 Senate seats. Most of the districts that came under scrutiny are in Chicago.
Nearly four months after listening to expert witnesses and considering election data, Circuit Judges Michael S. Kanne and Terence T. Evans and District Judge Philip G. Reinhard said Republican "plaintiffs bear the burden of showing the commission plan's invalidity" but "failed to meet that burden."
"Accordingly, we find that the commission plan provides African-Americans effective opportunities to elect candidates of their choice," the ruling said.
Republican leaders had sought to nullify the map, which will remain in effect for 10 years, or at least have portions redrawn. It wasn't clear if Friday's ruling would end their efforts, which have included previous lawsuits and a failed bid to sway the Illinois Supreme Court.
"I don't know if this is over or we'll continue to appeal," said Gregg Durham, spokesman for House Republican Leader Lee Daniels, R-Elmhurst, who also is the state GOP chairman. "We feel we have a strong case, we feel we have a just case. It doesn't always work out."
Asked what legal options Republicans have left, Durham suggested that the plaintiffs may end up petitioning the U.S. Supreme Court. Attorneys were conferring, he said.
"That is a very steep hill to climb," Durham said. "In the meantime, as we have from the beginning, (we'll) continue to do our job and run our races in the new districts as if there wasn't going to be any change."
Democrats held a 5-4 majority on the bipartisan redistricting commission after a lottery to appoint a ninth member last summer. Republicans in 1991 controlled the process, which must be done every decade to reflect the latest U.S. Census.
"Today's ruling supports the argument that we have made throughout the process," Senate Minority Leader Emil Jones, D-Chicago, said in written statement Friday. "This is a fair map. It complies with the Voting Rights Act."
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com
 

Hynes freezes pork payments
 
Comptroller urges lawmakers to aid budget with funds
 
By Ray Long and Rick Pearson, Tribune staff reporters. Tribune reporters Andrew Zajac, Douglas Holt and Michael Dorning contributed to this report
May 3, 2002
 
SPRINGFIELD -- Illinois Comptroller Dan Hynes said Thursday that he has frozen payments for legislative pork-barrel projects and called on lawmakers to consider using the more than $100 million left in a special fund for so-called member initiatives to help plug the state's budget gap instead.
"This money should be on the table along with all other state resources as the governor and General Assembly grapple with the problem of putting together a balanced budget," Hynes said. "In my view, very few of these projects will meet the test of critical need and urgency that we should apply to all expenditures during this massive budget crisis."
Although some lawmakers questioned whether Hynes has the authority to halt the payments, Hynes said he believed state law grants him discretion as the state's chief fiscal officer. He acknowledged he will have to eventually issue the checks if the legislature does not agree to redirect pork funds to help fill a $1.3 billion budget gap.
He said delaying payments would preserve as much money as possible in case lawmakers decided to tap into the fund.
Hynes initiated the freeze on April 23 after a Tribune article highlighted a $25,000 pork grant sent to Waukegan to help pay for a statue of native son Jack Benny.
Since that day, he has held up nearly $1 million in checks to underwrite lawmakers' pet projects, including up to $50,000 sponsored by Sen. John Cullerton (D-Chicago) to compensate Friends of Lincoln Park for a recently completed rehab of a lily pool next to the Lincoln Park Zoo.
The pool, built during the Great Depression and recently renamed the Alfred Caldwell Lily Pool after its designer, was granted preliminary landmark status Thursday by the Chicago Commission on Landmarks.
"What made me do it is I felt we were being inconsistent and we were confusing taxpayers," Hynes said. "What kind of message are we sending to taxpayers when one day they hear about proposed cuts in education, health care and social services and the next day they read in the local paper that the state has just spent $50,000 on a Lincoln Park lily pool?"
Cullerton said he is not offended by Hynes' move--as long as it is legal--because it is a higher priority, for example, to reimburse hospitals for Medicaid expenses than to pay for the lily pool.
"Hopefully we can do both after this session," Cullerton said.
Gov. George Ryan called Hynes' maneuver a "good move," but also said it "doesn't mean anything" because the money cannot be spent unless lawmakers appropriate it differently.
Hynes said about $116 million in unspent money is available in the fund, including a small portion for the governor to distribute. Though a part of that money is committed to projects, Hynes and the governor's office disagree on how big that total is. The governor's office has maintained the only portion that is not earmarked is worth about $50 million. Hynes has said the figure is about twice that.
Hynes' move drew opposition from Senate Minority Leader Emil Jones, a Chicago Democrat who sponsored a $400,000 technology grant for Jobs for Youth/Chicago that is now on hold. Cindy Huebner, Jones' spokeswoman, said he doesn't believe Hynes has the authority to halt the payments, and the Democratic legislative leader "would strongly suggest" that Hynes release the funds where the money has already been committed.
She said Jones would consider using uncommitted funds in the special legislative account to help solve the budget crisis. But she said the $400,000 grant is a worthwhile program that would help low-income youths kids learn computer skills.
"We are going to have a $400,000 hole in a $2 million budget if this money doesn't come through," said Therese McMahon, an official with the group who maintained Hynes' freeze unfairly lumped worthy projects with those of lesser merit.
Steve Brown, spokesman for House Speaker Michael Madigan (D-Chicago), said the speaker did not "venture an opinion" on Hynes' freeze. In April, Madigan said he would consider dipping into the unspent member-initiative money as part of an overall budget solution.
In January, Ryan suggested freezing the legislative pork-barrel money during a closed-door budget summit with legislative leaders and aides.
Several witnesses inside the meeting said a furious Madigan snapped, "That's my money. You can't touch it."
On Thursday, Madigan flatly denied he made the comment. It was the first time since the Tribune reported the statement three months ago that Madigan publicly stated he hadn't said it.
Meanwhile, Democratic governor nominee Rod Blagojevich and the state Republican chairman, House GOP leader Lee Daniels of Elmhurst, reached some common ground Thursday by voicing opposition to tax hikes to bail out the state budget.
"I do not believe we should raise taxes now," Blagojevich, a Northwest Side congressman, said in Washington. "I think before you ask taxpayers again to make a sacrifice, you've got to get their confidence back. When the state legislature refuses to get rid of member initiatives, refuses to do something serious about [ending] subsidizing the horse-racing industry, it's unfair to ask taxpayers to bail out the failed policies of the past."
But Madigan appeared to dismiss Blagojevich's comments, saying, "We're interested in the views of all Illinoisans. Mr. Blagojevich is an Illinoisan and, therefore, we're interested in his views."
Still, Madigan said, "as far as I'm concerned, everything's on the table" to balance the budget, including tax increases.
 

Ryan: Maybe the governor should quit
 
Candidate pushes to distance self from incumbent
 
By Rick Pearson and Gary Washburn, Tribune staff reporters. Tribune staff reporters Adam Kovac and Douglas Holt contributed to this report
May 1, 2002
 
Republican candidate for governor Jim Ryan on Tuesday called on Gov. George Ryan to consider resigning, saying his troubled tenure has created a crisis in voter confidence that jeopardizes his ability to govern.
Fellow Republicans agreed the GOP nominee urgently needed to distance himself from an unpopular governor to rescue the fall general election ticket. Democrats are trying to capture the governor's mansion for the first time in 25 years and take control of both houses of the General Assembly.
"Frankly, and this is not something that just happened yesterday, there's been a slow erosion in trust that people have in the governor's office and his leadership," Jim Ryan said. "And while it's painful to say that, it's just the reality. A person can't lead if people will not follow, and that's frankly what we have now."
The governor, however, said he plans to finish his term, and his aides said Jim Ryan's suggestion was motivated by public opinion polls that show the Republican trailing Democratic nominee Rod Blagojevich.
"I have no intention of resigning," the governor said in Springfield. "[The] biggest problem we've got in the state right now ... is not Jim Ryan or me. The biggest problem is the budget, and we're trying to get that resolved."
Jim Ryan maintained the issue came up only because a reporter asked him to respond to a poll conducted for the St. Louis Post-Dispatch and St. Louis television station KMOV, which showed two-thirds of Illinois voters believe the governor should not finish his term.
But the attorney general said the investigation of the licenses-for-bribes scandal that occurred during George Ryan's tenure as secretary of state, along with decisions on taxes and spending made while governor, has led people to lose confidence in the current administration.
"I think politics in Illinois needs a bath," Jim Ryan said. "And if I get elected, it's going to get one."
The two Ryans, who are not related, have often been at political odds. Jim Ryan at one time said he would not oppose George Ryan for governor, but later told the governor he would declare his candidacy regardless of what the incumbent decided. The governor also became angry at the attorney general for attacks he waged on the administration during the March primary campaign.
Daley, Blagojevich team up
The attorney general's announcement overshadowed a news conference held by his Democratic opponent, in which Chicago Mayor Richard Daley vowed to play an active role in the Blagojevich campaign.
Blagojevich said the decision to resign is "the governor's to make," and he repeated his criticism that Jim Ryan, the state's top law-enforcement agent, "was asleep at the switch" while corruption festered in the secretary of state's office.
Daley suggested Jim Ryan's announcement may have been a diversionary tactic.
"This has nothing to do with the election," said Daley, who has enjoyed a highly successful working relationship with the governor. "These are side issues that maybe divert our press conference."
Some Republicans suggested privately that the St. Louis poll results provided Jim Ryan with an opportunity to try to dissociate himself from George Ryan in the minds of general election voters. Those Republicans said internal campaign surveys show that many voters make no distinction between the two Ryans and that Jim Ryan's integrity is suffering as a result.
"Clearly this issue has reached critical mass," said one Republican strategist. "George Ryan's gone back on every campaign promise he made, his top people have been indicted, the federal government has charged that his campaign was a massive conspiracy and in Springfield they're talking about raising taxes, cutting services and funding pork."
Timing is questioned
Some Republicans said Jim Ryan should have acted sooner to distance himself from George Ryan. But others in the Republican establishment questioned the candidate's timing, particularly in the midst of an intense budget fight in Springfield.
House Republican leader Lee Daniels of Elmhurst, who also is state GOP chairman and a longtime George Ryan ally, said that he subscribed to "the theory that you really shouldn't speak ill of fellow Republicans" and that George Ryan is "doing a good job" as governor.
"Now, I think that we ought to just leave it at that until, you know, we see the people speak in November," Daniels said.
And Republican Treasurer Judy Baar Topinka, who is seeking re-election, said the governor "really has no reason to resign" because he has not been charged with wrongdoing.
"We're almost at the time of elections, which will change everything anyway," Topinka said. "The end of the world is not upon us."
Though the Jim Ryan campaign held long deliberations before deciding that a resignation comment would help the campaign, the move opened the door to new issues, including political hypocrisy.
If George Ryan left office, Lt. Gov. Corinne Wood, who finished last in the GOP gubernatorial primary, would replace him.
During that campaign, Jim Ryan used television ads to try to link Wood to the scandal-tainted governor. Those ads likened Wood and George Ryan as politicians who "say whatever it takes to win an election" and asked voters, "Isn't it time we had a governor we can trust?"
But on Tuesday, just days after she announced support for his candidacy, Jim Ryan said, "I don't think voters have lost trust in Corinne Wood. They have lost trust, unfortunately, in the governor."
 

They could use a little courage over at the Statehouse
 
By DANA HEUPEL
STATEHOUSE EDITOR
29 April 2002
 
Over the past seven months, the word "courage" has come to signify the American spirit.
It is widely used to describe the firefighters, police officers and rescue workers in New York City after the Sept. 11 terrorist tragedies.
With about three weeks left before the Illinois General Assembly's May 17 scheduled adjournment date, courage also is desperately needed in the halls of the Capitol.
The primary job that lawmakers face in the final days of their spring session is to pass a state budget for Fiscal Year 2003, which begins July 1. With the sour economy, projected state revenues are anywhere from $1.2 billion to $1.4 billion short of being able to pay for the $52.8 billion budget that Gov. George Ryan proposed in February, according to the state Bureau of the Budget.
And that's after the service cuts and employee layoffs that Ryan already has instituted to reduce spending this year.
Legislators, of course, have known about these problems since they began their session in January. But after meeting for almost four months, they are still far from a solution.
It's an election year, of course - for them, the most important in the last decade. New legislative districts drawn after the 2000 census come into play this November. Lawmakers not only are trying to secure their own re-elections, but they also are intent on winning control of the House and Senate for the next 10 years for their respective parties.
That strategy is even magnified this time around because the chairmen of the state Democratic and Republican parties also happen to be the two leaders in the Illinois House of Representatives, Speaker Michael Madigan, D-Chicago, and House Republican Leader Lee Daniels of Elmhurst.
The important election highlights the political considerations that are always woven into every piece of legislation.
Therein lies the problem. With such a dire budget forecast, lawmakers need to make tough choices about further cuts in state services - including layoffs - and ways to increase state revenues - including possible tax increases. But with such a crucial election at hand, few are willing to do anything that might offend large segments of voters.
That's where courage comes in.
It's unlikely that lawmakers and the governor can pass a balanced budget without some combination of tough decisions, including:
Cuts in services, which will harm needy residents.
Layoffs and shutdowns that will affect state employees, especially union members.
Tax increases that will anger voters, whether they are only smokers and gamblers, who would pay higher "sin taxes," or everyone, who could - in an unlikely extreme - face higher income taxes.
Keeping the same level of state taxes on businesses that would otherwise receive breaks under the Bush administration's economic stimulus program, a move that would upset corporate interests.
Short-term borrowing to weather the storm until economic forecasts brighten, which could draw the ire of fiscal conservatives.
Borrowing against projected revenues from a court settlement with tobacco companies, which would provoke those who believe the money should be used for smoking prevention or health costs.
All those measures have been proposed in one form or another, but lawmakers are nowhere near creating a palatable budget recipe that contains those ingredients and others.
In general, Republicans, who are naturally averse to tax increases, are squabbling among themselves over which taxes, if any, should be raised. Democrats, who naturally want to preserve state services, can't decide what cuts, if any, should be imposed. And, of course, neither party agrees with the other on much of anything.
It will take courage for Republicans and Democrats to compromise on a reasonable solution that spreads the pain evenly among all their constituencies: those who need government services, state workers and individual and corporate taxpayers.
It will take courage for those constituencies, which in an unbroken stream of rallies and news conferences, have pleaded with lawmakers "not to balance the budget on our backs," to accept that they must help bear a portion of the economic burden.
And it will take courage for voters not to lash out at elected officials who are brave enough to make tough choices, regardless of the political ramifications.
It may seem impossible for elected officials, special interest groups and voters to come together to put public policy ahead of politics.
But it is, after all, a year when courage defines us.
 
 

Prison security under fire
 
By Henry Bayer
April 26, 2002
 
CHICAGO, ILLINOIS Security has been on the minds of many Illinoisans these days. So it's shocking that instead of trying to make the public feel safer, Governor Ryan is undertaking a wide array of measures--in the name of cost-cutting--that will significantly undermine the security of our state prison system.
It started with the Governor's plan to shutter three correctional facilities, two for adult offenders (Joliet and Vienna Correctional Centers) and one for juveniles (IYC - Valley View).
The hurried Joliet closure has created unnecessary turmoil for months now. Some maximum security prisoners have had their classifications arbitrarily downgraded so they can be moved to medium security prisons that are ill-equipped to handle them. Others have been moved to Stateville where double-celling had to be expanded even to the segregation units as a result.
Then on April 9, the Governor announced plans to speed up the closures of Vienna and Valley View, lessening the opportunity for legislative scrutiny. The next day, his budget director ordered a halt to all repair and maintenance projects at four more facilities, as well as a number of work camps and transition centers, suggesting that they could be downsized or shut down completely in upcoming months.
Most recently, Ryan cavalierly tossed out the prospect of releasing 4,500 prison inmates before their sentences are completed.
But Governor Ryan hasn't stopped there. He's also planning to dismiss more than a thousand front-line correctional staff and other employees at dozens of prisons, privatizing prison food services, and slashing recreational and education programs.
These are truly dangerous plans. The Illinois prison system is seriously overcrowded, currently running at 141 percent of inmate capacity. Correctional employees logged 334,925 overtime hours just between July 1 and December 15 of last year, costing the state close to $9.5 million. In recent weeks, incidents of violence were reported in several correctional facilities, and two prisons have been placed on 24-hour lockdown.
Now the shortened timetable for closing Vienna and Valley View will require rapidly transferring nearly 1,000 inmates to other prisons in a system bursting at the seams. How can these other facilities deal with an influx of additional prisoners while they are having increasing difficulty keeping their own inmate populations under control?
Correctional officers are not the only security employees facing cutbacks. Maintenance workers, for example, supervise inmate work crews and make sure cell door locks function properly. Educational and activity specialists contain tensions by rewarding positive behavior and by providing positive outlets for inmate energies.
Privatizing food service operations would further jeopardize internal security by putting poorly paid and trained contractual workers in charge of inmates who work in the kitchen and have access to kitchen knives and other dangerous implements.
The security implications extend beyond prison walls. Under the cuts proposed by the Governor, it is estimated 1,000 more inmates would return to their communities without jobs, drug treatment, or GED diplomas and consequently would be more likely to repeat as offenders. And if the Governor follows through on his threat to release thousands of prisoners before their sentences are complete, the risk of criminal behavior on our streets will rise dramatically.
Especially troubling is the impact on youthful inmates of closing Valley View, the top-rated juvenile facility in the state. The vast majority of these young teens are not hardened criminals. Many have benefited from regular contact with their families in the Chicago area and from the high-quality educational and treatment programs for substance abuse that the facility offers.
The bottom line is that making such extensive cuts in the Illinois prison system will end up costing the state in the long run.
That's why the Illinois House of Representatives voted overwhelmingly on April 5 to restore $74 million to the FY 2003 corrections budget and to keep Vienna and Valley View open at least another year. Legislators are sending a clear signal to the Ryan administration that there are more sensible ways to balance the budget without jeopardizing order and security in the prison system. Tax increases on cigarettes and the highly profitable riverboat casino industry are just two options that would erase much of the shortfall.
With Governor Ryan holding the security of the Illinois penal system hostage to his misguided cost-cutting plan, it's up to legislators of both parties to step forward and negotiate a budget compromise that leaves the Illinois prison system intact and able to fulfill its mission.
Henry Bayer is executive director of AFSCME Council 31.
 
 

Senate candidate: State should borrow to pay bills
 
By BERNARD SCHOENBURG
POLITICAL WRITER
26 April 2002
 
The state should borrow money to get through its financial difficulties, according to Don Tracy, Democratic candidate for state Senate in the new 50th District.
"Although it would be ideal to reach a long-term solution to the state budget impasse before borrowing, there is no time for that," Tracy said in a statement. "The state needs to borrow now either from surplus internal funds or outside lenders and pay its overdue bills before its own fiscal mismanagement causes irreversible business failures that will only make the states long-term budgetary problems worse."
Tracy, a Springfield lawyer, is running against Sen. Larry Bomke, R-Springfield, in the Nov. 5 election.
"I have indicated that I could support short-term borrowing," Bomke said in response, adding that most economists indicate a coming upturn in the economy. "I believe in just a few months the revenue is going to start rolling in."
Bomke said the state can borrow short term at 2 percent interest. Hes also open to increasing the tax on casinos.
"I am certainly open to that as well," Tracy said this week.
Tracy called the failure of the governor and legislature to provide for timely payment of the states bills "irresponsible, unconscionable and bad economic policy.
"Because the state is past due on over $1 billion in legally owed bills the states fiscal crisis is metastasizing beyond state agencies to hospitals, nursing homes, other providers of the essential government services and on up the supply chain. If not stopped soon, this financial meltdown will exacerbate and prolong the states current economic crisis."
Tracy said state bills should be paid "within 60 days at the outside." By delaying payments of bills to vendors, he said, the state is, in effect, "borrowing from people who do not want to be lenders."
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Tobacco money may fix budget
 
Part of settlement would be sold in Democrats plan
 
By JEFF DRUCHNIAK and ADRIANA COLINDRES
STATE CAPITOL BUREAU
26 April 2002
 
 
Illinois Senate Democrats on Thursday pushed a package of proposals they claim could patch the states $1.3 billion budget shortfall without raising taxes.
They would sell a chunk of the tobacco settlement money Illinois stands to collect. Securities firms would then allow the public to invest in "settlement bonds" for a stake in the payout.
Senate Minority Leader Emil Jones, D-Chicago, said selling $2.6 billion of the $8 billion outstanding settlement, at a discount of 80 cents on the dollar, would harvest more than $2 billion up front.
Jones said less money up front, in exchange for passing some risk to investors, is a sound move. He said that, so far, declining tobacco sales have depreciated the states take from tobacco lawsuits by 8 percent.
"We dont know in the out years whether the dollars will be there or not," Jones said. "And the bonding houses will jump on this like a hog will on some slop."
"I havent seen their projections, but 80 cents on the dollar sounds highly optimistic to me," said Pete Fisher, a lobbyist with the Center for Tobacco Free-Kids in Washington, D.C.
Cindy Huebner, spokeswoman for Jones, said it would be reasonable for the state to demand an 80 percent payback from companies negotiating to buy the settlement.
Jones said as many as 16 other states have "securitized" their tobacco settlements. Several of those states officials, however, said they projected returns of 55 cents on the dollar or less, including those that supported such a move. In the Missouri, Washington and Wisconsin statehouses, those opposed to the idea brandished estimates as low as 25 to 35 cents.
"The talk that I'm hearing seems to indicate that 30 to 40 cents on the dollar is about what we're shooting for," said Jim Gardner, spokesman for Missouri House Speaker Jim Kreider.
Sen. Steve Rauschenberger, R-Elgin, said the Democrats' numbers don't make sense because they don't specify the length of time for investors to wait on their return. A 20-year securitization, he said, would be too long a window to reap anywhere near 80 percent. Huebner said the number of years should remain negotiable.
Jones strongly criticized a tobacco tax increase in the Senate Republican budget plan. He called it regressive and said it would take a higher toll on "people you aren't reporting (on) today."
Jim Nowlan of the Center for Tax and Budget Accountability agreed, saying, "It is regressive in the sense that poorer people tend to smoke more and would suffer a proportionately higher toll."
Huebner said the state would have to pay taxes on the $2 billion to use it on anything other than debt refinancing and capital construction. She could not say how much the tax liability would be.
The state currently budgets an annual $300 million from settling a nationwide suit to recover health-care costs from tobacco companies. The money goes in large part to pay for the "circuit breaker" prescription drug subsidy and the Earned Income Tax Credit, which target poorer citizens.
Also Thursday, 10 House Republicans held a Statehouse news conference to declare their opposition to a possible income tax increase, a notion that has been raised in recent days by some Democrats, including House Majority Leader Barbara Flynn Currie.
"Our job at this point is to make sure that there are no harmful new taxes which will suppress the Illinois economy, which will hurt working families and which will promote, to a certain extent, waste in government," said Rep. William O'Connor of Riverside.
Rather than talk about raising income taxes to help solve the state's budget troubles, lawmakers should focus on trimming waste and duplicative services in government, the House Republicans said.
Rep. Eileen Lyons of Western Springs said further state employee layoffs might be necessary as part of the budget solution.
"The business world does it all the time, and it's about time state government does it. I don't know why everyone's afraid to say it," she said. "You have to reduce the head count in state government if you're going to save the state money and streamline government."
Also on Thursday, the full House voted for legislation that would rescind a 3.8 percent cost-of-living adjustment scheduled to take effect July 1. The COLA increase, included in the most recent pay recommendations from the state Compensation Review Board, would apply to the governor, statewide elected officials, lawmakers, agency directors, judges and state's attorneys.
The House voted 109-5 for the bill, which already cleared the Senate and goes to the governor. If enacted into law, the measure would result in a savings of about $5 million for the new fiscal year, said Rep. Bill Black, R-Danville, the bill's House sponsor.
House members also voted 115-0 for Senate Joint Resolution 63, which rejects the Compensation Review Board's recommendations for the state to give a 1.9 percent raise for associate judges and chip in on their retirement funds.
The Senate already adopted that resolution, and the House's action means the judges' raises will be rejected. It is expected to result in a $7 million savings for the new fiscal year.
Jeff Druchniak can be reached at 544-2819 or jeff.druchniak@sj-r.com and Adriana Colindres at 782-6292 or adriana.colindres@sj-r.com.
 
 

Why was Setzekorn free to kill again?

Plea deal kept son off the stand; good behavior cut time in prison

By SARAH ANTONACCI and LISA KERNEK
STAFF WRITERS
26April 2002

sHow did a man who murdered his estranged wife in front of her 11-year-old son and allegedly set fire to two homes get out of prison after only eight years - just to do it again?

It's a question Verna Stapleton Setzekorn's relatives have been asking themselves for the past two days.

Verna Setzekorn was murdered by her estranged husband, George R. Setzekorn, in front of her brother's Athens home in 1978. Tuesday night, he killed again, this time shooting his 14-year-old daughter, his ex-sister-in-law and himself in Carlinville.

"We never thought it was long enough," said Nancy Jarrett of Setzekorn's time in prison for the '78 killing of Verna Setzekorn.

In a plea agreement George Setzekorn, then 29, was sentenced to 20 years in prison for that murder. He was expected to serve at least 10 years but was released after eight.

Verna Setzekorn was killed in Jarrett's front yard. George Setzekorn waited on the side of the house for his estranged wife to leave for work. When she did, he fired one round from a 12-guage shotgun into her back, killing her.

As it turns out, a combination of factors led to Setzekorn's relatively short sentence and early release ultimately giving him the ability to kill again.

Nolan Lipsky, a Petersburg attorney, was the prosecutor in the 1978 murder case. He remembers portions of it vividly. Other parts have faded with time.

"I remember that day emphatically because Verna was supposed to come to my office to get an order of protection against (George)," Lipsky said.

The plea agreement was reached to spare Verna Setzekorn's 11-year-old son, Billy, from further trauma, according to Lipsky.

"The only witness to the event was her son, and I sat down and discussed with her brother and sister-in-law whether they wanted the child to testify," he said. "They opted he not testify."

Lipsky said that decision complicated matters, because the gun used in the murder was never recovered.

"There was no evidence," he said.

Bill to block prison privatization OKd
By COPLEY NEWS SERVICE
25 April 2002
 
SPRINGFIELD A Senate committee Wednesday approved a measure that would block Gov. George Ryans budget-cutting proposal to hire private companies to operate prison cafeterias and commissaries, a job now handled by unionized Department of Corrections workers.
The Senate Executive Committee voted 8-5 for House Bill 3714, which now goes to the full Senate for consideration. The bill already has cleared the House, and it still needs approval from the Senate and the governor to become law.
Sponsored in the Senate by Sens. Carl Hawkinson, R-Galesburg, and Larry Woolard, D-Carterville, the legislation would prevent the Department of Corrections from entering into a private contract with a vendor to provide dietary services.
The governor has proposed privatizing food-service operations at 54 correctional facilities in the state, including 27 adult prisons, claiming it would save the state money.
But opponents of the idea have made several arguments. They say the move would cause some DOC workers to lose their jobs and would jeopardize security in state prisons.
Hynes Plan
A Senate committee on Wednesday rejected Comptroller Daniel Hynes budget reform proposal, and Hynes later said the panels action was "an outrage."
House Bill 5921, which earlier was approved in the House, wouldnt solve the states existing budget problems, but it would help prevent a future recurrence, Hynes, a Democrat, told the Republican-controlled Senate Executive Committee.
Provisions of the bill would control the growth of state spending, automatically set aside some money in a rainy day fund and set up a fund for retiring state debt. Another part of the bill would create a new panel to come up with consensus revenue estimates. The panel would consist of representatives from the Economic and Fiscal Commission, the Bureau of the Budget and the comptrollers office.
Sen. Doris Karpiel, R-Carol Stream and a committee member, voted against the bill, saying she thought it would take away some discretion from lawmakers.
"Reforms come, they go," said Senate President James "Pate" Philip, R-Wood Dale and a committee member. "This doesnt help the budget at all."
It was rejected on a mostly partisan vote. Seven Republicans voted no, and five Democrats voted yes. Sen. Kirk Dillard, R-Hinsdale, who is the bills sponsor, also voted for it.
 

Candidate Blagojevich suggests budget solutions in speech to union
 
By BERNARD SCHOENBURG
POLITICAL WRITER
25 April 2002
 
Democratic gubernatorial candidate Rod Blagojevich told an AFL-CIO rally Wednesday that "We will never balance the budget on the backs of working men and women, and we will not do it at the expense of public safety."
The specific budget remedies he suggested when talking to reporters later added up to less than the states backlog of bills. He said he opposed some ideas, such as short-term borrowing or an income-tax increase. He also suggested using remaining "Rainy Day Fund" money to close the budget gap, but a spokeswoman for the comptroller said the $226 million that had been in that fund was transferred to the states general fund back in mid-November and has been spent.
Blagojevich said that he continues to oppose the planned closing of the Vienna Correctional Center, where 600 people work. If it is closed, he said, he will reopen it if he is elected.
"So I would say to the working men and women and to the people of the community around Vienna: just sit tight and hold tight, help is on the way," he told reporters.
As he has before, Blagojevich said a $38 million subsidy to the horseracing industry should end. He said "administrative waste" could be cut in places including the Department of Commerce and Community Affairs, and there should be a tax amnesty, allowing people who owe back taxes to pay up without normal penalties. An amnesty period also occurred under former Gov. Jim Thompson in the 1980s. Blagojevich said more than $90 million in unused money for "pork-barrel projects for politicians" could be used instead to ease the budget crisis.
The states backlog of unpaid bills has topped $1 billion in recent days, though Karen Craven, spokeswoman for Comptroller Dan Hynes, said that by the end of the day Wednesday, the amount was expected to be down to $841 million. State revenues picked up with the April 15 tax deadline, she said.
In his speech, Blagojevich referred to the more than 25 years that Republicans governors have been in power.
"For 25 years, those in the governors office have sold us short and sold us out," he said to cheers from thousands of union members outside the Statehouse.
"Weve had 25 years of the same people not making it a priority to educate our kids in the proper way, and when they cant do it, what do they do?" he asked. "They scapegoat teachers. They blame teachers. ... If Im the governor, we will elevate the teaching profession. We will pay them better and train them better and support them better. We will reduce class sizes."
Asked by reporters about short-term borrowing, which some at the Statehouse have advocated, Blagojevich said, "I think the first thing the governor should do is open up the state budget, sink his teeth into the state budget, let the public see where the moneys going, get the confidence back of the public before we talk about things like that."
Pressed for an answer, he said, "I dont think theyve done enough to find ways to be able to balance the budget and get the confidence back on the public, so I dont think borrowing is the answer."
Blagojevich said he could consider higher taxes on casinos or cigarettes, noting that during the primary race, he proposed a 43-cent-per-pack increase in the cigarette tax to fund a plan to help provide prescription drugs for seniors.
But asked if it would derail his drug plan if the legislature increases the cigarette tax for other purposes, he said, "Im not going to think too far ahead. ... Ill deal with that when the time comes if it should come."
Blagojevich, a 45-year-old member of Congress from Chicago, said in his speech that some ask him if hes old enough to be governor. He noted that Comptroller Dan Hynes, 33, is "a lot younger than me," and Gov. George Ryan, 68, is "a lot older than me.
"But that older man should have listened to the younger man when he was advising him to save for a rainy day."
Blagojevich later told reporters that while more money should have been put into the Rainy Day Fund, it was "another place where you can find some money. Why dont they use that rainy day money, whats left there, try to apply that to the budget?"
Craven said that not only did the $226 million get transferred out of the fund in November, but unless state law is changed, that fund is supposed to be reimbursed by June 30 and thats not counted among the states unpaid bills. Hynes supports the fund being repaid, she said, as "the fiscally sound thing to do."
Despite criticism of Gov. Ryan from Blagojevich and others at the rally, Margaret Blackshere, president of the state AFL-CIO, said after the gathering that Ryan, who proposed the Illinois FIRST program, which includes a big construction component, "has been supportive of the issues for our working families." As for criticism of the governor, she said: "I dont think youll hear building trades say that. Of course, the state employees are going to, and the public employee unions."
The AFL-CIO endorsed Blagojevich in the primary.
Bernard Schoenburg can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
 

Solidarity forever AFL-CIO asserts political power at Capitol rally
 
AFL-CIO asserts political power at Capitol rally
 
By SARAH LARIMER
STAFF WRITER
24 April 2002
 
Outside the state Capitol, 7-year-old Toi Bowers was sprawled over the third step leading to the statue of Abraham Lincoln.
She had reason to be tired. She and her mother, whose name also is Toi, rose at 4 a.m. and traveled from Chicago to attend a Wednesday rally sponsored by the AFL-CIO.
The rally, dubbed "Solidarity Day," was designed to show the Illinois General Assembly the political power of Illinois union workers. It was the largest Statehouse rally of the session to date, drawing a crowd estimated anywhere from 3,000, by secretary of state police, to 10,000, according to rally organizers.
They sang, chanted, listened to speakers and spilled onto Second Street and Capitol Avenue, clogging traffic around the Statehouse for several hours over lunchtime.
Speakers included U.S. Rep. Rod Blagojevich of Chicago, who is the Democratic candidate for governor; Illinois House Speaker Michael Madigan of Chicago, who also is state Democratic Party chairman; Margaret Blackshere, president of the Illinois AFL-CIO; and Illinois Senate Minority Leader Emil Jones, D- Chicago, among other politicians and union leaders.

aflcio.jpg

Chicago iron worker Robert Aiken, left, and Chicago Teachers Union members LaVerne Gordon and Victor Martin participate in the Illinois AFL-CIO Union Members Solidarity Day rally Wednesday at the Illinois State Capitol.

Solidarity Day also kicked off the AFL-CIOs voter membership campaign. The labor unions also were rallying behind legislation dealing with worker safety, medical benefits and other issues.
Young Toi knew little about the legislative issues. She was just along for the ride, she explained.
"I just wanted to see how it looks," she said.
Tois mother has spent 11 years in the transit business and nine years as part of Local 308 of the Amalgamated Transit Workers. She is the union locals assistant treasurer.
Toi, who wore a Girl Scout uniform and her hair in pigtails, was impressed with Springfield and the rally.
"I like the color of the flags: red, white and blue. I like the signs that they hold up.
"Local 308!" she shouted out, over the cries of "A million strong, together as one," and "Were union, we vote," that echoed from the crowd behind her.
Madigan had just finished speaking when Roberta Manning, 78, and her husband, Elmer, 83, decided to take a break from the rally and have a seat on the Second Street sidewalk.
"He (Elmer) cant stand that long," said Roberta, who, unlike the thousands of workers showing their support by sporting union T-shirts and ball caps, wore a pale pink shirt.
Roberta and Elmer had traveled from Peoria to support the International Brotherhood of Electrical Workers, of which Elmer was a member, and the Democratic Party.
"Were here for the Democratic rally," Roberta said. "I care about what happens to my grandkids (she has seven grandchildren and one great grandchild). Weve got it made. Weve got to worry about them."
Claudio Sacramento and Frank Mentoya, IBEW members from Chicago, were half of the four-person squad of flag bearers that pushed their way to the podium. They stood, with flags at attention, through the entire rally.
"I gave up a days pay to show solidarity for unions," Mentoya said. "Sometimes you have to worry about whats more important."
"It was a big honor," said Sacramento, a Vietnam veteran who wore his American Legion Post 769 cap. "It was a great honor to be standing up here with all of those great politicians."
To close the rally, the crowd joined voices and some hands for the song "Solidarity Forever" to the tune of the spiritual "Glory, Glory, Hallelujah."
Even 7-year-old Toi grasped tightly to the hand of her mother and sang along.
Sarah Larimer can be reached at 788-1516 or at sarah.larimer@sj-r.com
 

BUDGET PLAN CLOSES VIENNA PRISON: SENATE REPUBLICANS BLUEPRINT DESIGNED TO CLOSE DEFICIT
 
BY ANTHONY MAN
SPRINGFIELD BUREAU
Wed Apr 24 2002
 
SPRINGFIELD -- The Vienna Correctional Center would close under a budget blueprint offered Wednesday by Senate Republicans. Public elementary and high schools would be spared from additional cuts, but college financial aid would be reduced. The plan would spread cuts throughout state government, eliminate a scheduled reduction in corporate income taxes, and raise taxes on cigarettes and riverboat casinos.
It is designed to close a budget gap estimated at $1.2 billion.
Untouched is money in the current budget earmarked for projects known alternatively as "member initiatives" or "pork barrel" spending. Senate Appropriations Committee Chairman Steve Rauschenberger, R-Elgin, said they were not included because it was not a major source of money and it could be politically difficult to pull off.
Gov. George H. Ryan said about $50 million could be reallocated from that pot to help the state pay its bills.
Late Wednesday, he released a statement supporting the Senate Republican effort. "While we might disagree over some of the details, I support the plan's underlying premise: the ultimate solution to our budget dilemma must include a combination of additional spending cuts and modest revenue increases."
Senate President James "Pate" Philip, R-Wood Dale, said all members of the Senate Republican caucus, which is the majority in the Senate, support the plan "in concept." However, he said the plan is an outline rather than specific legislation, which means it will not be subject to a yes-or-no vote.
"This is just a start. This isn't the final product. But we think somebody has to stand up to the plate," Philip said.
House Majority Leader Barbara Flynn Currie, D-Chicago, welcomed the Senate plan as a starting point from which serious budget negotiations could develop.
The Senate Democrats could unveil their own budget plan today. Late Wednesday, the Senate's minority party gathered for a closed-door caucus to finalize details. A spokeswoman said she did not know if it would propose any tax increases.
The Republican plan made almost everyone in the Capitol at least somewhat unhappy.
State Sen. David S. Luechtefeld, R-Okawville, is in a tough position, caught between Philip and his district.
Even though Vienna prison is not in Luechtefeld's district, about half the prison's workforce lives there. And he represents many employees of other prisons who are strongly opposed to other elements of the proposed budget, including privatization of some prison operations.
"I like the concept of putting something out there that is responsible. I disagree with the fact that you're going to really put Vienna and that whole area in real economic stress," he said.
He said his support for the concept should not be seen as going along with closing the prison or privatizing jobs at other prisons.
"My goal is to try to stop the privatization issue and to keep Vienna open," he said. "There's a lot of things that are going to happen to this before we're finished."
Besides the cost to the lives and economy in the region, he said closing Vienna would make no sense because both major party candidates for governor have pledged to keep the facility open. Luechtefeld said closing Vienna now and having a new governor open it after the election would be a costly mistake.
Luechtefeld's district borders Missouri, and merchants near other states complain that they are hurt badly when cigarette taxes are increased because their customers cross the border and end up doing lots of their shopping in other states. However, Luechtefeld said the tax increase proposals, including the one for cigarettes, are a reasonable way to avoid deeper budget cuts.
The plan would avoid closure of several other Southern Illinois institutions that were threatened two weeks ago by the Ryan administration as the budget problems deepened. The Clyde L. Choate Mental Health and Developmental Center in Anna and the region's state parks would remain open.
Todd Maisch is vice president of government affairs at the Illinois State Chamber of Commerce. He said he liked the proposal for borrowing money so the state could pay vendors faster instead of letting bills back up. He also said budget cuts are good because "state government has gotten pretty fat on unprecedented state revenue growth in recent years."
Maisch criticized the tax increases and the move to head off the reduction in corporate income taxes. "The package is going to take more money out of the economy," he said. "The focus should be getting the economy growing again, and higher taxes are going to make that harder to do."
Philip said Republicans were willing to abandon their traditional anti-tax stand because the state financial picture is so bad. State income this year is expected to be lower than last year -- something that has not happened since 1955.
Currie said the Republican willingness to propose tax increases is significant. "It's important that we begin talking about revenues, and I'm delighted that the Senate GOP has said yes we need to increase taxes in the state of Illinois in order to avoid blood all over the floor for the state's vulnerable, fragile populations."
anthony.man@lee.net or (217) 782-4043.

 

GOP budget plan calls for more layoffs
 
By DOUG FINKE
STATE CAPITOL BUREAU
24 April 2002
 
SPRINGFIELD As many as 1,000 additional state workers would lose their jobs, and many more would pay more for their health insurance under a Senate Republican budget outline released Wednesday.
The plan calls for increasing cigarette and gambling taxes, which would help restore some of the Medicaid cuts to hospitals, doctors and nursing homes. However, the plan also would eliminate a proposed 10 percent increase in basic welfare grants and cut the share of state income taxes that goes to local governments.
"This is just the start," said Senate President James "Pate" Philip, R-Wood Dale, whose members came up with the proposal. "Were flexible. We can adjust to almost anything except a statewide tax increase."
Philip said a statewide tax increase means a hike in either the income or sales tax.
"Without a question of a doubt, we are not for any kind of general income tax increase, period, or a sales tax (increase), period," Philip said.
Republicans relied on a roughly even combination of tax hikes and budget cuts to close what they believe is a $1.2 billion budget hole. They would raise cigarette taxes by 22 cents per pack, making the state cigarette tax 80 cents per pack. They would raise $150 million from gambling proceeds, although they havent determined how that would work.
The plan calls for cutting $105 million from state money sent to cities and counties from the state income tax and the photoprocessing portion of the state sales tax.
At the same time, the plan calls for changes in state law that would prevent Illinois from losing $225 million as a result of the federal economic stimulus package. If the change is made, local governments will save $175 million in potentially lost revenue. As a result, Senate Republicans argue their plan would actually save money for local governments, even if their share of income and sales tax money is reduced.
Business groups said they oppose changing state law because that means businesses would continue paying $225 million to the state that they otherwise would avoid.
"If you pass the legislation, thats a higher tax than it would be without the legislation," said Todd Maisch of the Illinois Chamber of Commerce.
Senate Republicans also want to close 11 Department of Human Services offices throughout the state, including ones in Putnam and Scott counties. Hours would be reduced at offices in Brown, Christian, Menard, Fulton, Stark and Marshall counties. Staff would also be cut at a number of agency headquarters in Springfield.
Sen. Steve Rauschenberger, R-Elgin, the lead architect of the plan, said an additional 1,000 jobs could be cut, in addition to the net loss of 3,800 called for by Gov. George Ryan in his February budget speech. Also, state workers enrolled in the fee-for-service health insurance plan would be required to pay significantly more, an effort aimed at getting them to move into a less-expensive managed care program.
"They didnt restore any of the cuts to state employees," said Henry Bayer, executive director of the American Federation of State, County and Municipal Employees Council 31. "They restored cuts to some other groups. Obviously, they have something against state employees."
Reaction to the Senate Republican plan was guarded.
"I congratulated Pate and the Senate Republicans for coming up with an idea," Ryan said. "Pate made it very clear this was not written in cement. People should look at it and come up with some suggestions."
"I think it is interesting," said House Speaker Michael Madigan, D-Chicago. "The significant point is the Senate Republicans said they are in favor of revenue enhancements."
House Republican Leader Lee Daniels, R-Elmhurst, said the state should first worry about borrowing money to pay off a $1 billion backlog of bills. After that, lawmakers can worry about crafting a new budget, he said.
Senate Minority Leader Emil Jones, D-Chicago, plans to develop his own budget outline that relies heavily on closing so-called business tax loopholes.
Senate Republicans did not tinker with "member initiative" money, which is set aside to finance projects selected by lawmakers. Those projects came up during a meeting Wednesday between Ryan and the four legislative leaders, but there is no agreement on what was said.
Madigan came away from the meeting believing Ryan plans to halt member initiative projects for the time being. Daniels also said he understood that Ryan plans to put a hold on the projects.
Thats not how Ryan remembered the meeting.
"I asked once again if (the leaders) wanted to take it off the table," Ryan said. "There wasnt a whole lot of sentiment for that."
Although Illinois FIRST is a multibillion-dollar program, it is financed largely with bonds. If the projects dont proceed, the money could not be diverted for other programs, Ryan said.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Senate Gop Offers Budget Plan; Governor Says Time Running Out
 
By CHRISTOPHER WILLS
Associated Press Writer
24 april 2002
 
SPRINGFIELD, Ill. (AP) -- Senate Republicans offered a plan Wednesday to balance the state's budget by cutting government programs $650 million, raising taxes on cigarettes and casinos, and dipping into funds set aside for various programs. Their proposals would restore some education programs that Gov. George Ryan proposed cutting and give doctors, hospitals and nursing homes more money for treating the poor. They would require roughly 1,000 more layoffs of state workers than the governor initially suggested. "We don't see any of these locked in concrete," said Sen. Steve Rauschenberger, R-Elgin, the chairman of the Senate Appropriations Committee. "They're a starting point." This marks the first time in the debate over the $1.2 billion budget deficit that one of the legislative caucuses has taken the potentially risky step of calling for higher taxes. Senate President James "Pate" Philip, R-Wood Dale, said at a Statehouse news conference that he had a positive initial reaction to the proposal from the governor and House Republican leader Lee Daniels. They and the Democratic legislative leaders planned to discuss the budget later in the day. Ryan said Wednesday morning the state is "running out of time" to solve the budget crisis. After a prayer breakfast at a Springfield hotel, the governor said he and legislative leaders can come up with a budget that "everybody can be halfway happy with." "I'm doing everything I can to get the problem solved. We're kind of running out of time," Ryan said. The Senate GOP plan would raise casino taxes $150 million and cigarette taxes $132 million. That amounts to 22 cents a pack, bringing the total state tax to 80 cents, Rauschenberger said. It also calls for changing state tax law so Illinois does not automatically lose money because a tax break approved at the federal level. That would keep Illinois from losing about $225 million. The plan suggests reducing local governments' share of state income taxes by about $80 million. The 32 Republican senators did not detail exactly which special funds would be tapped or which state grants would be cut. Some cuts they did list include reducing subsidies to the horse-racing industry, cutting college scholarships $50 million and trimming anti-smoking programs. They said no additional prisons or mental facilities would have to be closed. They would go forward with Ryan's plan to close a prison in Vienna, a mental health center in Peoria and a juvenile detention center in St. Charles. The plan is just the latest in a series of proposals and counterproposals as officials wrestle with the massive deficit. But the call for higher taxes could be key to breaking the budget deadlock. "I just think my colleagues have recognized it really is past time to exercise a little courage and leadership," said Rauschenberger. "We don't like taxes in a redistricting election year (but) our political concerns should, to some extent, take a back seat." Every legislative seat is up for re-election this year because new legislative districts have been drawn to reflect population changes. But many current lawmakers are retiring after this session or face no challenger in the fall election -- meaning they could afford to take the political risk of voting for a tax increase. Other lawmakers may not want to talk taxes, even if the Senate Republicans do. House Speaker Michael Madigan, D-Chicago, would not comment on the tax proposals and said, "I just don't know" how House Democrats would feel about the plan. Republican leaders also pressed Tuesday to borrow money to pay the state's overdue bills. Democrats balked, and the state comptroller and treasurer -- one a Democrat and one a Republican -- also opposed it. The state has about $1 billion in bills piled up, and businesses are waiting three or four months to be paid for their services, such as filling prescriptions for the poor. The businesses complain the state is forcing them to borrow money to pay their own bills or face bankruptcy. Republican leaders say it would be better for the state to take that burden off the businesses. Democrats argue it would be foolhardy to borrow without a clear plan for solving budget problems.

Ex-con kills daughter, sister-in-law, self
 
SHAWN CLUBB,
Telegraph staff writer
April 24, 2002
 
dCARLINVILLE -- Three lives ended Tuesday amid fire and gunshots as an ex-convict went on a rampage, targeting the family of his ex-wife before killing himself.
Police said the man had a criminal history that involved a prison sentence for murder, reportedly for killing a former wife.
Carlinville Police Chief Steven Stone said police responded to a call of a fire at 3:38 p.m. Tuesday at the Neal House residence on Illinois Route 108, about 1.5 miles east of Carlinville. He said that when firefighters and an ambulance responded, the ambulance crew noticed odd activity and heard gunshots on South Center Street.
The ambulance responded to that scene and found Janie Goesmann, 45, of 115 S. Center St., shot in her back yard, Stone said. The crew spotted a suspect running and getting into a car. The suspect then shot himself with a pistol.
That man, George Setzekorn, 53, also known as George Young, and Goesmann, his former sister-in-law, were taken to Carlinville Area Hospital, where they both were pronounced dead.
Meanwhile, firefighters found the body of another person inside a rear lower-level apartment at the House residence. Macoupin County Sheriff Gary Wheeler confirmed the body was that of Skyler Young, 14, the daughter of Setzekorn and his ex-wife, Patricia Young. Young and Goesmann were sisters. Authorities said Patricia Young and at least two of her four children had been living with her parents at the house.
Wheeler said it was unclear whether the teen-ager died from the fire or from other causes.
Patricia Young's parents, Neal and Margaret House, were taken to Carlinville Area Hospital for treatment for smoke inhalation, as was a firefighter, Stone said. Wheeler said the fire completely engulfed the house.
Police believe Setzekorn might have set the fire, Stone said, because he reportedly had threatened to do so.
"They had had problems with him making threats in the past," Stone said.
Goesmann's family had obtained an active order of protection against Setzekorn.
Young, Goesmann's husband and Goesmann's three children were not home at the time of the slayings and were unharmed.
Stone said Setzekorn previously spent time in the Illinois Department of Corrections reportedly for killing his ex-wife.
"It makes me wonder why he was out walking around," Stone said.
The Carlinville Police Department had no previous dealings with Setzekorn, who reportedly lived most recently in Centralia, but it had been notified in May 2001 that he was being released from prison and might pose a threat, Stone said.
"I just think, from what I understand, he wanted her back and didn't like that her family was giving her assistance," Stone said. "He wanted her to be desperate."
Carlinville police handled the South Center Street scene, while the Macoupin County Sheriff's Department handled the scene of the fire. Illinois State Police and the South Central Illinois Drug Task Force assisted.

higgins35023may02.gif

Judge issues restraining order blocking May 15 closure of Vienna C.C
 
April 23, 2002
 
VIENNA, ILLINOIS Judge James Robert Williamson in Johnson County Circuit Court issued a temporary restraining order today (TRO) to halt the closing of Vienna Correctional Center. The TRO stops all transfer of inmates and all layoffs that would be related to closing the facility on May 15.
"We know that rushing to close Vienna risks the security and stability of the state's correctional facilities. Now a court has affirmed that to do so may also be illegal," said Henry Bayer, executive director of AFSCME Council 31.
The minimum-security facility was slated to be closed as a budget-cutting measure. When the closure date was moved up to May 15, AFSCME, along with two state legislators, filed suit against Gov. George Ryan on the grounds that he could not close the facility without the approval of the General Assembly, which had already approved funding for the facility through June 30.
The state has until May 2 to appeal to today's ruling. In addition, the Attorney General's Office, which is representing the state, has filed a motion to dismiss, which will be heard on April 30.
"We were shocked that Governor Ryan suddenly decided to speed up the closure," said Bayer. "It was creating chaos. It's a relief that the court has put the brakes on this potentially dangerous decision."
Ryan and Donald Snyder, director of the Illinois Department of Corrections, are among the state officials named as defendants in the suit. The plaintiffs are AFSCME Council 31; Jeff Jackson, the president of Local 415, which represents most of the employees at Vienna; Sen. Larry Woolard (59 th senate district); Rep. Jim Fowler (118 th House District).
 

NO EASY ANSWERS: SUPPORTERS QUESTION DECISION TO CLOSE PRISON
 
 

BY JEFF SMYTH
THE SOUTHERN
Mon Apr 22 2002
 
MARION -- They gathered Monday at Marion high school hoping Gov. George Ryan gets the point.
Southern Illinoisans do not want the governor to close the Vienna Correctional Center.
They came from around the region -- including a caravan of as many as 50 vehicles from Johnson County -- to participate in a town meeting hosted by Rep. Tom Dart, D-Chicago, chairman of the Illinois Prison Management Reform Committee.
For more than two hours they shared with Dart and Southern Illinois legislators their worries about the more than 350 jobs that would be lost if the prison closes as scheduled on May 15.
"We can't do it," said Max Ray, Johnson County commissioner. "The northern part of the state can absorb the loss of 400 jobs; probably the middle part of the state can, not Southern Illinois."
Dart said he held the meeting because he wanted to hear what toll the closure would have, not just on employees of the prison, but on the region.
"We want to hear from real people, on
how the closure will affect them," he said.

eddiewright.jpg

Eddie Wright, a guard at Vienna, asked Sen. Tom Dart if Cook County jail was full. Dart's reply was yes. To the approval of the crowd, (above) Wright said, 'We have 600 empty beds at Vienna. Send them here.'

Comments were consistent with what has been said since Ryan announced the closure plans Feb. 20: It would devastate the region economically.
"The trickle-down effect is so far-reaching," Don Sanders, president of the Vienna Chamber of Commerce, said.
More than 250 people attended the meeting and listened to some harsh realities from an unexpected guest speaker, Steve Schnorf, the governor's budget director.
"I wish it were as simple as every agency cutting its budget 1 to 2 percent," Schnorf said. "With the exception of education, corrections and the Department of Central Management's group health insurance for state employees, we cut everyone's budget by 5 percent.
"We can cut the highway program. We can cut it, but we can't use the cuts to pay for operations of prisons. We will cut funding to schools, but we can't spend the money ... on the operations of prisons. That is the way our state financial system is set up," he added.
Schnorf said three-fourths of the state's more than $22 billion budget goes to four areas: corrections, Medicare, human services and employee insurance.
"Once you get past those four areas of general revenue spending, believe me, you can, for all practical purposes, wipe out the rest of government and you won't save enough money to deal with the issues that we are dealing with," Schnorf said.
He told the group the state has two options: cut spending or raise taxes.
"It's going to mean voting for a very large tax increase. That's what is going to have to be done to keep Vienna Correctional Center open," he said. "No one is going to come out of this budget situation whole. Everyone is going to take hits. People need to be thinking about what the compromises are going to be."
Buddy Maupin, representing the American Federation of State, County and Municipal Employees, said sacrifices need to start at the top.
"You find from the period of 1995-2000 the number of front-line rank and file state employees has declined by about 500," Maupin said. "During this same period, the number of supervisors and management personnel has increased by 2,000.
"In 1995 we weren't short on people telling us what to do. Now we are tripping over (them)," he added.
Eddie Wright, a guard at Vienna, said he can't make sense out of the state wanting to close the prison when the state is releasing 4,500 inmates to ease overcrowding and the Cook County Sheriff's Department is purchasing 500 tents to house the overflow.
"Tell them we have 600 empty beds in Vienna and send them down here," Wright said. jeff.smyth@thesouthern.com/618-529-5454 x 15073

 

jackhigginsopinion.gif

Statehouse Insider
 
By DOUG FINKE
STAFF WRITER
21 April 2002
 
Here we are near the end of April, and Gov. GEORGE RYANs assessment of budget talks is a succinct, "right now, were no place." Hes right, but thats not very reassuring.
The spring session is scheduled to adjourn May 17, which is four weeks away. For lawmakers, thats at most 16 working days. Its a lot of time to negotiate a budget when theres a lot of money to spread around, but its not much time when youve got serious budget problems.
The options are to cut spending or raise taxes or do a little of both. So far, lawmakers do not want to cut spending or raise taxes or even borrow money to pay bills faster.
Apparently, the strategy is to hope for the prompt arrival of the Budget Fairy, who will make everything better without any lawmaker having to cast a vote that could come back to haunt him or her during the fall election.
You can pretty much forget about this mess being resolved by May 17. More and more, its even getting hard to find someone who will bet that a new budget will be hammered out by May 31.
That means working into June, which means the session is in overtime. That also means no more $85 a day in expense money for lawmakers. Theres a little-noticed law on the books that says when lawmakers are in session past May 31, they are no longer entitled to daily expense money.
That is, theres no more expense money unless Ryan pulls a fast one and declares a "special session" to deal with the budget, in which case lawmakers can still pocket per diems. However, that would further honk off voters, and it would take away some of the leverage the leaders have over the rank-and-file to finally reach some agreement on a budget.
If the hoi polloi have to stay overtime in Springfield AND not get paid for it, they might be more amenable to a budget compromise. At least the leaders better hope it works out that way, or this could drag out a very long time.
Wednesday was the day Ryan got the lifetime achievement award from the Illinois Library Association. Ryan received the award at the Illinois State Library in Springfield. After the ceremony, Ryan hopped into his van for the ride back to the Capitol which is directly across the street.
By the way, Wednesday was also "Shape Up Illinois Day" to promote physical fitness among the states citizens.
Speaking of the library, someone suggested the state could solve its budget crisis by selling naming rights to state buildings. How does the Unistat State Library sound?
There seems to be a little, shall we say, tension between Sen. CHRIS LAUZEN, R-Aurora, and Comptroller DAN HYNES. Whether its left over from Hynes drubbing Lauzen during the 1998 race for comptroller, we dont know. We do know it bubbled to the surface last week when Hynes appeared before the Senate Appropriations Committee to discuss his proposed office budget.
It started with Hynes explaining some cuts he will make to his office budget next year. Lauzen wasnt satisfied and wanted Hynes to identify areas of "ineffective spending" in the state budget.
"There was $10,000 spent to provide stained-glass windows for a parking garage," Hynes said. "I think that was money that was misspent. Do you know anything about that?"
Ouch. That was money Lauzen got for his district under one of those infamous "member initiative" pork projects. Lauzen said the Hynes statement was a "mischaracterization" of the project.
Later, Lauzen pushed Hynes about employing both a press secretary and a communications director, suggesting that was a waste of money. Hynes gave a sort of non-answer answer, which got Lauzens ire up even more.
"Non-responsive," Lauzen sniffed.
"Thats tough," Hynes responded.
Finally, the two dueled over the wording of some budget accountability legislation, with Lauzen objecting to Hynes statements.
"Id be careful not to criticize people who are more familiar with this issue than you are," Lauzen shot at Hynes.
"I take issue with the characterization (of the bill) and the insult that you just gave me," Hynes said.
Boys, boys, boys. Cant we all just get along?
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 
 

UNION FIGHTING PRISON CLOSING
 
BY JEFF SMYTH
THE SOUTHERN
[Sat Apr 20 2002]
 
MARION -- Union members seeking to protect the state prison jobs of their brethren will gather Tuesday in the Johnson County Courthouse to fight for the doomed Vienna Correctional Center.
At 9:30 a.m. Tuesday, attorneys for the American Federation of State, County and Municipal Employees will present arguments before a judge of the circuit court of Johnson County on why a temporary restraining order blocking Gov. George Ryan from closing the prison May 15 should be allowed to stand.
Ryan announced in February plans to close Vienna July 31 as part of a state cost-saving measure, but recently moved up the date to May 15.
AFSCME filed a complaint on the grounds that the General Assembly last year approved funding for the facility through June 30 -- the end of the state's fiscal year. The union's lawyer wants the judge to decide if Ryan has the authority to shut down a facility in the middle of a funding cycle.
On the same front, Rep. Tom Dart (D-Chicago), chairman of the House Prison Management Reform Committee, seeks the public's input on the closing of the prison at a meeting at 4 p.m. Monday at the Marion Senior High School auditorium, 1501 S. Carbon St.
"The thrust of the meeting is that I want to hear from the people of Southern Illinois on how the closing of Vienna will impact them," Dart said. "I know that it will hurt communities, but I did not comprehend the full impact until I started listening to people in those communities.
"I am deeply concerned about the financial decisions emanating from the Ryan administration. Is state government ready to close Vienna and devastate the economy of Southern Illinois? The real issue is that Southern Illinois can ill-afford to have bureaucrats in Springfield playing politics with the lives of hard-working families in this region," he added.
Dart took issue with an April 17 editorial that appeared in The Southern claiming he is using the forum as a means to promote his candidacy for state treasurer.
"For six years, I have shared my leadership role with my Republican colleague Rep. Tom Johnson (R-West Chicago)," he said. "Our committee is one of the few that operates in a bi-partisan manner. We have convened dozens of hearings throughout the state of Illinois to listen to the concerns of local prison officials and community members, and to learn first-hand the impact of the decisions that are being contemplating in Springfield."

IMPRISONED BY UNCERTAINTY: LIKE SO MANY OTHERS CAUGHT IN THE BUDGET CUTS, LOOMING LAYOFFS CLOUD THIS FAMILY'S FUTURE

johnevans.jpg

IMPRISONED BY UNCERTAINTY: John Evans of De Soto is one of 267 corrections employees who received layoff notices in recent weeks. Despite the news, his wife, Colleen, and his daughter, Ashley, have been supportive.

BY JEFF SMYTH
THE SOUTHERN
Sat Apr 20 2002
 
DE SOTO -- John Evans lies awake at night, staring toward uncertainty in the darkness of his bedroom.
Evans spends most nights this way now and he knows that throughout Southern Illinois, many of his co-workers and others employed by the Illinois Department of Corrections are doing the same.
These are troubled times for the thousands of men and women who believed that landing a prison job also meant securing a stable future for themselves and their families.
But the state of Illinois is in a financial downturn to the tune of $1.4 billion and now the future seems uncertain for those affected.
Gov. George Ryan believes that job cuts and wage freezes will help ease the shortfall. The American Federation of State, County and Municipal Employees isn't buying it. The union contends the governor is forcing its members to shoulder too much of the burden for solving a budget mess they didn't create.
The two sides are at loggerheads on the issue with finger pointing, backbiting and fear taking the place of compromise and reason. As Ryan and the union remain deadlocked, Evans and his brethren are left whirling within the maelstrom.
"There is a lot of tension at work," Evans, a maintenance craftsman at the Pinckneyville Correctional Center, said. "The morale couldn't be lower. I've never seen it this bad in my 18 years with corrections."
Evans is one of 267 IDOC employees who received layoff notices in recent weeks. His came April 4 and, to what he says added insult to injury, he was issued another one April 18.
"They are jerking us around; jerking our lives apart," Evans, 38, said. "It almost makes me wonder if they are doing this just to mess with people. It makes no sense at all."
Evans also doesn't understand why IDOC administrators aren't coming forward with information about options he has as a result of the pending layoff.
Under union guidelines, his seniority allows him to "bump" an employee less vested with the department. That chain reaction would continue until the lowest person on the totem pole was put out on the street.
But prison officials have not released which position is available to him. Nor have they given him a list of positions, throughout all agencies statewide, to which he might consider transferring. The uncertainty is taking its toll.
"He's normally an easygoing, mellow guy," said wife Colleen Evans. "Now he is a very restless, very worried husband. That's just not him. He's never been like that."
"He grouchier," adds 11-year-old daughter Ashley.
The situation is tearing Evans up emotionally. Colleen made him see a doctor after his blood pressure shot up. The medication prescribed has had little effect.
"I want to puke from what I've seen the last four years," he said. "These people play with our lives like they are toys."
As much as it is hurting Evans, he also knows others are suffering more. He said his seniority will likely protect him from having no job at all.
"I feel bad because there others who will lose more than we will. People will lose their homes over this," he said.
"I'm just thankful we have two incomes," said Colleen, who is a paramedic with the Jackson County Ambulance Service.
But life for Evans has changed because of the layoff. If he returns to working as a correctional officer he'll take a $6,000 pay cut. The maintenance position he was given three years ago is a desired post among prison jobs.
The family has already canceled plans for its annual vacation to South Carolina. Work on finishing their garage has been put on hold. Evans believes he won't be able to afford payments on the used pick-up truck he purchased recently.
"There are things you do based on what you make," Evans said. "It is the simple things people take for granted that we no longer can."
Colleen was undergoing therapy for a ruptured tendon in her right arm when talk of the layoffs surfaced. She returned to work sooner than her physician had advised because she knew hard times were around the corner.
"My doctor was a little iffy about my going back to work. I put a rush on my therapy when I knew the layoffs were going through," she said. "Now I'm working as much overtime as I can."
Evans is a second generation IDOC employee. His father retired after working at the Menard Correctional Center for more than 20 years.
Evans took a job as a guard at Menard in 1984 when he was 20 years old. It was a time, he said, the department had trouble attracting and retaining employees.
"When I started they couldn't get people who wanted to work there. The turnover was high," he said. "I thought it was a job that would never be threatened by something like (this). There were always going to be inmates and a need for guards to watch them."
Evans transferred to the Pinckneyville prison in December 1998 soon after it opened. He qualified for the maintenance position the following February.
As a member of that department Evans and four others are responsible for maintenance throughout the facility. He makes sure the 256 heating and cooling units at the prison work, welds broken tables and builds recreation equipment such as pull-up bars used by inmates. Evans and two others are being laidoff.
"We are talking about a little city contained in itself," Evans said about the prison.

 
 
 

WARDEN PERKS RANKLE PRISON RANK AND FILE
 
BY TRAVIS DENEAL
THE SOUTHERN
Thu Apr 18 2002
MOUNT VERNON -- Ten Man, Big Moe, Fat Daddy, Gino and Cornell.
Sounds like the members of a music group. Right?
Wrong. Don't be fooled by the cute nicknames. These gangsters are the real thing, armed and dangerous and wanted by the FBI.
Corey Lamont Crosby, aka Ten Man; Kendal R. Mays, aka Big Moe; Derek A. Waithe, aka Fat Daddy; Kerwin D. Jones, aka Gino; and Cornell Allen Davis are wanted in connection with Mount Vernon investigations and are on the FBI's Web site, listed as fugitives.
All five men are wanted on charges of conspiracy to distribute and possession with intent to distribute more than 50 grams of a mixture and substance that contains crack cocaine.
The FBI Web site contains mug shots as well as descriptions of the fugitives, including height, weight, eye color, and scars and marks.
For example, Waithe has tattoos on his left hand and both arms. Mays has tattoos on his chest and speaks with a "deep, raspy voice and wears flashy gold jewelry." Jones has a scar on his forehead and wears a long ponytail. Crosby has the tattoo "3 Fellas" under his upper right arm and "Ten" on the right side of his neck and the Black Gangster Disciples street gang's six-pointed star on his stomach.
All five men are affiliated with the Black Gangster Disciples street gang. All five men should be considered armed and dangerous.
The Mount Vernon Police Department, the Jefferson County Sheriff's Department and the FBI joint task force conducted the investigation that resulted in the federal grand jury indictments of the five.
In December, Crosby and Davis were named along with five other men in a 23-count indictment, which included charges of conspiracy to distribute crack cocaine, 21 counts of distributing crack cocaine and one count of possession of crack cocaine with intent to distribute.
Those charges were based on violations that occurred at various times from 1995 through 2001 in Mount Vernon.
Anyone with information is asked to call the joint drug task force at 618-242-6800, the FBI in Carbondale at 618-529-5121, or the Jefferson County Crime Stoppers at 618-242-TIPS (8477).
An FBI spokesman late Thursday said additional information about the men was unavailable.
-- Osamu Tsukimori contributed to this story.

State wont borrow to pay bills

Leaders opposed to short-term loan

By DOUG FINKE
STATE CAPITOL BUREAU
 Apr 18 2002

Gov. George Ryan floated the idea Wednesday of borrowing money to pay state bills faster and to help balance the budget, only to watch it get shot down almost immediately.

Ryan suggested two alternatives: obtaining a short-term loan that must be repaid within a year or tapping unused money sitting in hundreds of separate funds in state government.

However, Comptroller Dan Hynes and Treasurer Judy Baar Topinka both said they oppose short-term borrowing. Both of them, along with the governor, must sign off on any short-term borrowing plan.

House Speaker Michael Madigan also opposed the idea of the state essentially borrowing from itself by tapping into cash reserves in other state funds. Ryan needs the General Assemblys approval before he could borrow from those funds.

"There was a real lack of leadership shown here today," Ryan said after meeting Wednesday with Hynes, Topinka and the four legislative leaders. "Nobody is willing to step up and solve our problems. I can tell you right now, were no place."

The backlog of state bills is well over $1 billion, and some bills go unpaid for four months or longer. Ryan and lawmakers alike said they are being besieged by people whom the state owes. Some of those vendors are facing their own financial crises because of the late payments.

Ryan suggested the bills could be paid more quickly if the state obtained a loan to be repaid within a year, when state revenues are expected to improve. The state took similar steps during the last major budget crisis in the early 1990s.

However, both Hynes and Topinka said they will not sign off on any short-term borrowing plan.

"I personally am against short-term borrowing, and I said it would be a mistake if it wasnt coupled with long-term reform," Hynes said.

Topinka also wont sign off on a short-term borrowing plan, and she doesnt think much of the idea of the state borrowing from itself. Tapping into other funds could cut the states investment income, she said, while providing only temporary relief.

"It certainly doesnt solve any problems long term," Topinka said.

The state puts its revenue into more than 600 separate funds, large and small, under the treasurers office. Asked which funds could be tapped, Senate President James "Pate" Philip, R-Wood Dale, said, "anything thats got extra capital sitting around that is not invested."

For example, Philip said, the motor fuel tax fund into which gasoline taxes are deposited, "has a lot, a lot of money."

Philip said it is easier for state government to borrow money for short periods than it is for the vendors who are waiting for the state to pay its bills.

Under the Prompt Payment Act, the state also must pay interest on overdue bills, although Hynes was unable to say Wednesday how much is owed.

"Right now, we dont know because we are just getting to the point where the Prompt Payment Act may kick in," Hynes said.

He could not say whether it might be cheaper for the state to borrow to pay bills on time rather than delay payments and pay interest on the late payments.

Madigan said he wants to avoid borrowing because "all youre doing is digging a bigger budget hole."

The idea of the state borrowing from itself was rejected during the meeting in Ryans office Wednesday, Madigan said.

However, the idea of using short-term borrowing as a final piece to balance a budget for the next fiscal year is not dead, Madigan said. If all of the other pieces are in place and Ryan again calls for a short-term loan, Topinka and Hynes may be persuaded to go along, Madigan said.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

WANTED BY THE FBI: FIVE ARMED AND DANGEROUS FUGITIVES
 
BY TRAVIS DENEAL
THE SOUTHERN
Thu Apr 18 2002
 
MOUNT VERNON -- Ten Man, Big Moe, Fat Daddy, Gino and Cornell.
Sounds like the members of a music group. Right?
Wrong. Don't be fooled by the cute nicknames. These gangsters are the real thing, armed and dangerous and wanted by the FBI.
Corey Lamont Crosby, aka Ten Man; Kendal R. Mays, aka Big Moe; Derek A. Waithe, aka Fat Daddy; Kerwin D. Jones, aka Gino; and Cornell Allen Davis are wanted in connection with Mount Vernon investigations and are on the FBI's Web site, listed as fugitives.
All five men are wanted on charges of conspiracy to distribute and possession with intent to distribute more than 50 grams of a mixture and substance that contains crack cocaine.
The FBI Web site contains mug shots as well as descriptions of the fugitives, including height, weight, eye color, and scars and marks.
For example, Waithe has tattoos on his left hand and both arms. Mays has tattoos on his chest and speaks with a "deep, raspy voice and wears flashy gold jewelry." Jones has a scar on his forehead and wears a long ponytail. Crosby has the tattoo "3 Fellas" under his upper right arm and "Ten" on the right side of his neck and the Black Gangster Disciples street gang's six-pointed star on his stomach.
All five men are affiliated with the Black Gangster Disciples street gang. All five men should be considered armed and dangerous.
The Mount Vernon Police Department, the Jefferson County Sheriff's Department and the FBI joint task force conducted the investigation that resulted in the federal grand jury indictments of the five.
In December, Crosby and Davis were named along with five other men in a 23-count indictment, which included charges of conspiracy to distribute crack cocaine, 21 counts of distributing crack cocaine and one count of possession of crack cocaine with intent to distribute.
Those charges were based on violations that occurred at various times from 1995 through 2001 in Mount Vernon.
Anyone with information is asked to call the joint drug task force at 618-242-6800, the FBI in Carbondale at 618-529-5121, or the Jefferson County Crime Stoppers at 618-242-TIPS (8477).
An FBI spokesman late Thursday said additional information about the men was unavailable.
-- Osamu Tsukimori contributed to this story.
 
 

FORMER RYAN AIDE PLEADS GUILTY TO MAIL FRAUD CHARGE
 
Thu Apr 18 2002
 
CHICAGO (AP) -- Gov. George Ryan's former deputy chief of staff pleaded guilty Thursday to mail fraud for his role in what federal prosecutors called a criminal racket that secretly used public money and state employees for political purposes.
Richard Juliano was deputy chief of staff for Ryan -- in both the secretary of state's and governor's offices -- and deputy chairman of Ryan's 1998 campaign for governor. His plea came as part of an agreement with prosecutors who plan to call him as a witness in the racketeering trial of Ryan's campaign committee and campaign manager.
Prosecutors said Juliano faces a sentence of anywhere from probation to 30 months in prison, depending on his continuing cooperation, and on the discretion of the judge.
The charge against Juliano was included in a 10-count federal indictment returned April 2. The indictments came down after a four-year investigation that began as a probe of the licenses-for-bribes scheme when Ryan was secretary of state.
The other defendants were the Citizens for Ryan campaign committee and Scott Fawell, who was Ryan's campaign manager and his chief of staff in the secretary of state's office.
Fawell and the campaign committee have pleaded innocent to all charges against them. U.S. District Judge Rebecca R. Pallmeyer said she would sentence Juliano after their trial.
His defense attorney, James Montana, would not say whether Juliano has offered testimony that incriminates the governor.
"All he is going to do is answer the questions that are asked of him and he's going to tell the truth."
 

VOICE OF THE SOUTHERN: FOCUS ON THE PEOPLE MONDAY, NOT THE POLITICS
 
Tue Apr 16 2002
 
Look for emotions to run high next Monday evening in Marion's high school auditorium. The town hall meeting is putting the spotlight on Gov. George Ryan's hellbent-for-leather mission to close Vienna Correctional Center, and it is sure to draw hardhats from across Egypt.
With over 1,000 American Federation of State, County and Municipal Employees (AFSCME) workers statewide staring at layoffs, you can expect union members to swell the crowd. And, certainly, alongside AFSCME will be rank-and-file representatives from the Laborers' International, United Mine Workers of America, International Brotherhood of Electrical Workers and other area labor organizations.
The mass gathering comes as Ryan's target date for closing Vienna has been accelerated from June 30 to May 15, along with new warnings issued by the governor that additional state facilities may be closed -- and Choate Mental Health Center sits at the top of the hit list.
State Rep. Tom Dart, chairman of the House Prison Management Reform Committee, is hosting the session.
The Southern questions what -- if any -- productive weight such a gathering will carry with the governor, regardless of whether five or 5,000 people show up. So far, George Ryan has shown little inclination to be swayed by public sentiment.
With the General Assembly in spring session and desperately crunching budget numbers, it is clear Monday's demonstration is intended to influence incumbent lawmakers around the state who are in close re-election fights. An unusually strong union vote might make the difference in many November races, just as union ballots carried U.S. Rep. Rod Blagojevich to victory over Paul Vallas in the Democratic gubernatorial primary.
And call us cynical, but we suspect Rep. Dart cares less about the correctional officers who are set to lose their livelihoods than he does about his own chances of remaining employed in the fall. A Chicagoan with zero Downstate recognition, Dart is giving up his House seat as the Democratic candidate for state treasurer.
Dart is facing incumbent state Treasurer Judy Baar Topinka. Topinka, a former state representative, was the first Republican to be elected state treasurer in 32 years with her 1994 victory. She made history again in November 1998, when she won a second term. In doing so, Topinka became the first woman ever to be re-elected to a statewide office.
Of all the Democrats' constitutional candidates, Dart's race against Topinka is seen as the toughest -- and being the center of a highly emotional town hall meeting should go a long way toward raising Chicagoan Dart's fortunes south of I-64.
Finally, we fear the specter of violence which has so often permeated labor issues throughout the history of our region. The last thing we need right now is to give Southern Illinois a black eye as the result of injudicious words or actions.
We support AFSCME's right to seek a temporary restraining order against the governor's closing of Vienna. And we hope when arguments are heard on AFSCME's motion Tuesday at 9:30 a.m. in Johnson County circuit court, that Vienna remains open.
More important, though, is our two-fold desire regarding Monday night's town hall meeting: that it show the terrible human cost of closing Vienna prison -- rather than serve as a campaign rally -- and that all of Southern Illinois turns out for the meeting . . . peaceably.
 

Legislators will see budget plan today

'We're asking them to go into the abyss'

By DOUG FINKE
STATE CAPITOL BUREAU
16 April 2002

Rank-and-file lawmakers will take a trip into state government's budget abyss today.
Legislative budget negotiators have finished a broad outline of a spending plan for the next fiscal year that avoids a tax hike by cutting state spending. The plan is expected to be presented to lawmakers in private caucuses at the Capitol today.
"We're asking them to go into the abyss and see how dark it is," said Sen. Donne Trotter, D-Chicago, negotiator for Senate Democrats. "Right now, looking over the edge isn't doing it."
Last week, the General Assembly's four leaders - Senate President James "Pate" Philip, R-Wood Dale, Senate Minority Leader Emil Jones, D-Chicago, House Speaker Michael Madigan, D-Chicago, and House Republican Leader Lee Daniels, R-Elmhurst - directed their budget negotiators to draft a budget plan that avoids any tax hikes.
Using Gov. George Ryan's proposed budget as a starting point, the negotiators quickly sliced away at programs to produce the outline that will be given to lawmakers.
"They take place everywhere," Trotter said. "We asked everyone to look deeper."
Both Sen. Steve Rauschenberger, R-Elgin, and Rep. Gary Hannig, D-Litchfield, said the plan to be shown to lawmakers is not a final budget proposal.
"It's not a budget they can vote on," Hannig said. "It's a budget close to the best you get without revenue enhancements."
Hannig said the outline is intended to "make members who are not in tune focus on the budget."
Negotiators said the outline does not call for more facility closings beyond those already announced by Ryan. However, it assumes all of the four dozen state parks, prisons and mental health facilities where Ryan halted maintenance projects last week will be either closed or downsized. Ryan stopped the projects because budget cuts might force the facilities to close.
Additional layoffs are in the plan, but negotiators told state agencies to start cutting central office administrators and spare the jobs of field workers.
Madigan said Monday he hadn't seen the outline.
"You can presume that it's going to be a really difficult proposal, and a lot of worthwhile causes are going to lose out," Madigan said. "I'm talking about day care for people who just left welfare. I'm talking about services to the mentally ill and for the disabled. These are the areas where people are right on the cutting edge, and the reduction budget that we're looking at would just ruin their lives."
Madigan also said Monday that he had told Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees, that he ought to consider reopening the union's contract with the state. Ryan wants the union to accept a one-year wage freeze and possibly make other concessions.
"I raised with him the possibility that they reopen their contract, and I told him that it's something they really ought to consider," Madigan said.
Bayer, though, didn't remember the conversation that way.
"I can't say my recollection is he presented it in a way that he thought was a good idea," Bayer said. "We have no intention of opening our contract."
Bayer, meanwhile, said the union will go to court to stop the closure of the Vienna Correctional Center and the Valley View Youth Center. Both prisons are slated to close May 15, tossing nearly 700 Department of Corrections employees out of work.
In his February budget plan for the next fiscal year, Ryan said he would close both prisons but not until August or September. The closings were moved up because of the state's worsening financial problems.
The union will contend that Ryan doesn't have the authority to close the prisons before June 30, the end of the state's current fiscal year. To close them would circumvent the will of the General Assembly, which allocated enough money to keep the prisons operating until then, Bayer said.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

PRISON DIRECTOR BLAMES UNION; SNYDER: LACK OF COOPERATION LEFT NO OTHER OPTIONS FOR CUTS

BY KATHERINE SCHOTT
SPRINGFIELD BUREAU
Mon Apr 15 2002
 
SPRINGFIELD -- The state prison director said Monday that the biggest state employee union's refusal to cooperate in saving money is a major reason why prisons are on the budget chopping block.
Donald N. Snyder Jr. said leaders of the American Federation of State, County and Municipal Employees hurt themselves when they did not cooperate with a proposed furlough day and blocked the privatization of food service operations at prisons, including Vienna.
"The only thing that was left in our budget to look at was closure of facilities," Snyder said. "We have to find that money somewhere."
Gov. George H. Ryan has ordered the closure of Vienna Correctional Center and the Illinois Youth Center-Valley View in St. Charles, blaming the state's financial crisis, a shortfall estimated at about $1 billion.
Last week, the closing of both facilities was accelerated from June 30 to May 15 because "we need savings now," Snyder said.
If the union had agreed to concessions, Snyder said it would have given the agency and lawmakers time to discuss the 2003 budget. AFSCME Spokeswoman Marianne McMullen said the Ryan administration has never guaranteed that jobs would be saved if workers agreed to a furlough day and other concessions.
"This is the lie that is being perpetuated," she said. "The governor has never come to our union and said if you take this, we won't lay off people. Never were we offered a deal like that."
Snyder said Vienna was slated for closure because it is a minimum security prison. Snyder said he could move Vienna's inmate population to a more secure facility, but he couldn't move prisoners in a higher security facility as easily.
As the revenue shortfall continues to worsen, Snyder said the agency is looking at closing additional facilities in Sheridan, Centralia and East Moline, as well as some transition centers and work camps.
Snyder said laying off employees is painful.
"Nobody should have to go through that," he said. "It hurts you professionally and personally. You have mortgage payments, kids you are trying to put through school, car payments. Those are the obvious things. On the professional side, you're going, 'Why me? Is it because I didn't do a good enough job?' No. It doesn't have anything to do with that. The bottom line is that we need money."
Late last week, Ryan said he was considering the early release of about 4,500 prisoners as another way to save money.
Sergio Molina, chief of communications for the Corrections Department, said details for the proposal are not firm yet but that one option would be to put non-violent drug offenders on parole.
Snyder, speaking to a group of graduate students at the University of Illinois at Springfield, said the early-release idea "has merits" but would not say if he supported it. He did say that the Illinois parole system would be able to monitor these people if the program does go into effect.
katherine.schott@lee.net or (217) 782-4043.

AFSCME files suit to keep IYC Valley View open
 

April 15, 2002

CHICAGO, ILLINOIS A suit was filed today in Cook County Circuit Court that challenges the May 15 closure date that Gov. George Ryan has set for the Illinois Youth Correctional Center at Valley View. The suit holds that the state is legally obligated to implement the legislature's appropriation plan, which calls for the funding of the facility through June 30.

"We believe the Governor's decision to close IYC Valley View risks the security and stability of the state juvenile facilities, which are already operating at over capacity," said Henry Bayer, executive director of AFSCME Council 31. "But we also contend that his decision to do so is illegal. He cannot unilaterally override a decision already made by the General Assembly."

In addition, by a unanimous voice vote last week, the Illinois House of Representatives expressed its opposition to Ryan's closure plan.

Bayer added that IYC Valley View provides a level of education and drug treatment programs that are unique within the juvenile correction system, and that provide these minimum-level juvenile inmates a strong opportunity for rehabilitation.

Gov. George Ryan and Donald Snyder, director of the Illinois Department of Corrections, are among the state officials named as defendants in the suit. The plaintiffs are AFSCME Council 31; James Howell, the president of Local 117, which represents most of the employees at IYC-Valley View; state Rep. Lovana Jones (5 th House District); and state Rep. William Delgado (3 rd House District).

 

UNION FILING TO DELAY PRISON CLOSING: GROUP HOPING ORDER WILL BUY MORE TIME

BY JEFF SMYTH
THE SOUTHERN
Sun Apr 14 2002

VIENNA -- Lawyers for the union representing 350 employees at Vienna Correction Center are asking the Johnson County Circuit Court to halt Gov. George Ryan's plan to close the prison next month.

Attorneys filed the request via overnight mail on behalf of the American Federation of State, County and Municipal Employees. It is expected to arrive at the Johnson County courthouse today.

The group wants a temporary restraining order against Ryan on the grounds that the prison should remain open because the Illinois legislature had appropriated operating funds for the facility through June 30.

Ryan announced plans in February to close Vienna at the end of this fiscal year as a cost-saving measure. But last week, officials from his office announced the date had been pushed up to May 15.

The governor also said in February that a youth center in Valley View would be shut down.

"The issue here is the governor's attempt to break his agreement with the General Assembly to fully fund Vienna through June 30th," said Buddy Maupin, regional director of AFSCME. "Whether or not he has that authority is a question of law. We want a restraining order against his plans to accelerate the closing date of the Vienna Correctional Center."

The union is represented by the Chicago law firm Cornfield and Feldman. The lead attorney is Steve Yokich. Also named as plaintiffs are Sen. Larry Woolard, D-Carterville, and Rep. Jim Fowler, D-Harrisburg.

"He's saying 'we're not going to give the facility a chance to remain open.' I say let's give it a chance," Woolard said. "I think we have a responsibility to do anything we possibly can to ensure the correctional facility remains open."

This isn't the first time the union and governor have locked horns in the courtroom. Earlier this year the union sued Ryan in a Grundy County court to block plans to privatize food and commissary services at state prisons.

The Ryan administration countered by asking a higher court to lift that temporary restraining order, but a three-judge panel of the 3rd District Appellate Court in Ottawa refused.

The union also sued the administration in March in St. Clair County to stop the governor from forcing its 45,000 members to take a day of unpaid leave. The injunction remains in effect, and a hearing date is pending.

Maupin said Ryan's attempt to close Vienna at a time the General Assembly is tackling the state's fiscal problems is presumptuous and circumvents the legislative process.

"The House put Vienna and Valley View back in the budget," he said. "The Democratic process has to be allowed to wend its way. He's attempting to make sure they don't have the opportunity."


 

RYAN'S TOP LAWYER ON THE HOT SEAT

Associated Press
Sun Apr 14 2002
 
CHICAGO (AP) -- A former state police commander claims Gov. George Ryan's chief legal counsel tried to pressure him into dropping an investigation of alleged corruption in the secretary of state's office.
Earl Hernandez, former state police deputy commander, said Diane Ford approached him in the summer of 1998 while she was chief counsel in secretary of state's office when Ryan headed the agency. He said Ford tried to intimidate him by reminding him that Ryan was about to be elected governor and would be his boss, the Chicago Tribune reported in its Sunday editions.
"Her exact words were, 'The secretary isn't very happy about the way you're pursuing this,' " Hernandez said. "She clearly was invoking the man's name in an effort to get me to change my mind."
Hernandez was investigating whether staffers in the secretary of state's office were doing political campaign work while on duty. Last month Ryan's campaign committee and two former aides were indicted for allegedly using state employees and equipment in his campaign and for depositing bribes for commercial drivers licenses into the campaign fund.
Ford declined to comment to the newspaper about Hernandez' allegation. Ryan spokesman Dennis Culloton issued a written statement backing Ford but saying the indictments keep him from saying more.
"Diane Ford is a highly regarded attorney who well represents her clients and respects the rule of law," he said. "She has had a long career in public service and it is unfortunate that because of the pending criminal case, we are not able to respond in detail to these wild and inaccurate claims."
Hernandez said the intimidation never succeeded in ending the investigation, but it did cause him to retire in Dec. 1998, just before Ryan became governor. He is now police chief in Platteville, Wis.
"Every indication at that time was that Ryan would win and I knew I would never survive," he said. "It's the first time I've ever had an investigation where somebody came in and tried to talk me out of it."
Allan Lolie, a special prosecutor in the case, said Ford obstructed his investigation by blocking access to computers in the secretary of state's office.
"My attitude was these were taxpayer-paid computers," he said. "If they had nothing to hide, what's the problem?"
Lolie is now a Democratic state's attorney in Shelby County.
Federal prosecutors have indicted Ryan's former campaign manager, Scott Fawell, campaign aide Richard Juliano and the Citizens for Ryan Campaign.
Fawell and the campaign fund have pleaded not guilty. Juliano is cooperating with authorities.
Others have been prosecuted in what eventually became known as Operation Safe Road, a federal investigation into the illegal sale of trucking licenses and the use of part of the money for campaign contributions.
Culloton said Ryan and his office always have cooperated with investigators and will continue to do so.

 

higgins35014april2002.gif

Statehouse Insider
 

By DOUG FINKE
STAFF WRITER
14 April 2002

Gov. GEORGE RYAN has declared next week as "National Credit Education Week" in Illinois. Part of the purpose is to teach people how to maintain good credit, such as paying bills on time and not getting too deep in debt by spending money you dont have.
Yeah, we thought it was pretty hilarious, too.
Much to the secret glee of Republicans, you can now add House Speaker MICHAEL MADIGAN to the list of Illinois officials on the speed dial list of federal prosecutors.
For public consumption, most Republicans are declining comment, but you know that deep down they love it. For four years now, you couldnt heard the words "federal investigators" without hearing "Republican" pretty close by. Now you can also say federal investigators and Madigan/Democrats in the same sentence.
Mind you, Madigans not accused of any wrongdoing. All hes had to do so far is turn over some records to investigators. On the surface, the issue being investigated Madigan getting involved in a labor dispute at Eastern Illinois University doesnt exactly look like a federal offense.
The point is the fearsome Madigan was subpoenaed and someone made sure the news media found out about it. Its a fair bet those same people will make sure the media doesnt forget about it.
Ryans former chief of staff, SCOTT FAWELL, made his first appearance in federal court last week to plead innocent to a variety of corruption charges.
The appearance drew an overflow crowd of the news media, forcing some of them to sit in the jury box during the proceeding. The news media as jury. Ryan probably wouldnt find it amusing, but some reporters did.
With Fawells indictment, attention again focused on the record of corruption in the secretary of states office while Ryan was in charge and the failure of the inspector general, DEAN BAUER, to stop it.
Theres still a bill floating around the General Assembly to beef up the powers of the secretary of state inspector generals office. Senate President JAMES "PATE" PHILIP, R-Wood Dale, said he doesnt necessarily oppose the bill, but he also isnt sure what good it will do.
"How many inspector generals do we have? Five?" Philip said. "Tell me if any of them have ever done anything."
At this point Philips flack tried to terminate the meeting with reporters, but Philip forged ahead.
"If you guys can tell me what theyve done, Id like to know," he continued. "We fund these people, we give them power, but I dont think theyve ever stopped anything that I can figure out."
Well, now, thats not true. Bauer maybe didnt stop the corruption, but he did a great job stopping the investigations.
Ever since Ryans campaign fund, Citizens for Ryan, was labeled a criminal enterprise by federal authorities, some elected officials have been nervous about keeping campaign funds Ryan may have given them over the years.
Some have returned the money to Ryan or declared they will donate a similar amount to charity. The idea is to rid the books of the boodle.
Shedding tainted contributions is the trendy thing to do nowadays. It seemed to start with Enron contributions last fall. It continued when people dumped money given by MICHAEL SEGAL, the indicted head of the politically connected Near North Insurance Co. And now we have the Ryan contributions.
You know, if this keeps up, the poor pols may not have enough clean money left to run for office in November.
House Republican Leader LEE DANIELS, R-Elmhurst, last week won another term as state Republican Party chairman.
In a departure from previous practice, the election itself was closed to the news media. This raised eyebrows, since there was speculation that the GOP meeting might become heated and Daniels possibly ousted as party chairman. The disgruntlement stemmed from Daniels hiring a firm repeatedly mentioned in the Fawell indictment to help in House Republican campaign efforts.
As it turned out, Daniels was re-elected, and he insisted there was nothing sinister about closing the meeting. He said Republican leaders were discussing election strategy, and they didnt want any House Democrats infiltrating the meeting and picking up valuable tips.
This sort of begs the question: Given the House Republicans record in elections, why would the Democrats want to spy on their strategy sessions?
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Gov's Campaign Fund Under Fire

By JOHN KELLY
Associated Press Writer
April 13, 2002

sCHICAGO -- Over the years, Gov. George Ryan's campaign fund has provided him with money for everything from Christmas gifts to country club dues to a fleet of cars and vans.

The days of spending may be over.

It isn't clear just how much is left of what once was a multi-million-dollar war chest. But federal prosecutors want to freeze the money to make sure there's at least $1 million -- the amount the campaign, Citizens for Ryan, could owe in restitution if convicted of federal racketeering charges announced April 2.

The indictment charges that from 1990 to 1998, when Ryan was secretary of state, state workers did campaign work while on the job, that state equipment was used for political campaigns and that bribe money was deposited in the campaign fund.

The campaign has pleaded innocent. Ryan, who says he won't seek a second term, has not been charged with any wrongdoing.

The Citizens for Ryan fund had $2.3 million left as of mid-February, when the committee last filed a state report. Since then, "large sums" have been paid to lawyers, prosecutors said.

Neither Ryan nor his aides would say what the Republican governor had intended to do with the money if lawyers' bills hadn't piled up. Under Illinois law, he could have turned the money, vehicles and other assets into his personal retirement nest egg when he leaves office next January, as others have done before him.

Income tax summaries released by the governor show he reported converting at least $30,000 of campaign money for personal use over the last three years. Ryan won't say what he did with it.

Campaign disclosure records filed with the state show that in 2001, Ryan used campaign funds to pay more than $1 million to lawyers handling his response to the four-year federal probe of alleged bribe-taking and other wrongdoing by state employees.

And for years, the fund has paid Ryan's $300 to $450 a month membership dues at the Kankakee Country Club. Last year, it paid for $16,000 worth of tickets to Chicago Bulls games and other sports and entertainment events, records show.

The campaign account also has picked up the tab on at least $44,000 worth of jewelry and other gifts Ryan has charged over the last three years.

On Aug. 8, the day Ryan announced he would not seek another term, the campaign paid $35,000 to a Chicago car dealership. Two cars and two vans are registered to the campaign, but state documents give no information about who uses them.

Ryan's spokesman, Dennis Culloton, noted some are used to transport the governor and his aides around the state on official business.

Ryan's use of his campaign fund follows a long tradition in Illinois. One former state senator used more than $200,000 in campaign money to build his family a new house after he left office. Dozens of state and local politicians have bought cars and computers while in office, or after they retired. One former state legislator paid his parking tickets with campaign money, according to records filed with the state.

In Illinois, personal expenditures of campaign money are neither unusual nor illegal, as long as they are reported as income on federal tax returns.

"You could write yourself a check and use the money as your retirement fund as long as you report it and you're willing to take the political heat," said political scientist Kent Redfield of the University of Illinois in Springfield.

By contrast, candidates for federal offices are barred by law from using campaign money for personal expenses, as are candidates in 30 other states. Most of the remaining states impose at least some restrictions.

State woes deepen

Possible closure of Panther Creek, Greene County Boot Camp

By Darren Burnett and Maggie Borman
Jacksonville Journal-Courier
12 April 2002

Gov. George Ryan's proposed cuts in food service at the state's  prisons a few weeks ago appears to be only the first round of state cuts that might affect West Central Illinois.
A recent release of an internal memo makes it clear the Ryan administration is considering closing parks and prison facilities including several in this area.
  As previously reported, an April 10 memo from Gov. George Ryan's budget director orders a stop to maintenance projects at 42 prisons and boot camps, mental health centers and state parks that might be targeted by the financially troubled state government.   The burgeoning Jim Edgar Panther Creek State Fish and Wildlife Area in eastern Cass County appears to be an expense under consideration for the chopping block.
That has people who benefit from the tourist attraction crying foul. Instead, they argue, the state should look at parks that see fewer visitors or which have lost the interest of people seeking recreation.
Panther Creek known locallv for years as Site M, employs nine people and had nearly 190,000 visitors in May, June and July of last year, according to park employees.
Cass County Board Chairman H.O. Brownback said that a relatively new facility like Panther Creek should not be on the list of potential closings.
"I would hope the state of Illinois would focus its efforts on existing facilities that are not meeting their goals for attendance," he said. "It would be wrong to take these budget cuts out on a developing facility. I would suggest that there are plenty of state parks and facilities that have already had their day in the sun and where attendance and interest is declining, " he said.
The park is used for hunting, bird-watching, hiking and mountain biking. During the prime hunting months of October and November last year, there were about 135,000 visitors.
The number of visitors does not appear to be the prime criteria for the state list of possible closures, which lawmakers cringed at Wednesday. Starved Rock State Park near Ottawa is also on the list. It had nearly 530.000 visitors in May, June and Ju)y of last year.
Other parks on the list are Bean Woods in Mount Carmel, which brought in 55,000 people in those same three months, and Fox Ridge in Charleston, which had about 130,000 visitors over that period.
As interest in the Panther Creek site grows, potentiaL for development in the county grows as well, Mr. Brownback said.
"This facility is growing enormously," he said. 'The public's interest is already manifest. To remove the money at this point would cut the project off at its knees." To the south of Jacksonville, the lllinois Department of Corrections Impact Incarceration
Program in Greene County, known as the Greene County boot camp, is also being considered for closure because of the state's continuing budget woes.
"Closing Greene County (boot camp) is one of the options we have on the table," Department of Corrections chief public information officer Sergio Molina said Thursday.
"We have put together a list of possibilities with the Bureau of the Budget and are looking 'at several facilities," he said. "At this point, no decision has been made to close Greene County.
It is strictly exploratory." The boot camp near White Hall opened in March 1993 and is a 200 bed, all male facility for non-violent first-time offenders 17- to 29-years--old.
"I would hate to see the boot camp close, if that is what eventually happens." Greene County State's Attorney Elliott Turpin said. 'The faciliy offers job opportunities in the county, and in a county that is financia1ly challenged, it needs as many jobs as possible," he said.
It is also a good approach to rehabilitation. "For those who do something serious enough to be sent to the boot camp are the very ones that need that kind of structure and discipline, and probably won't get it anywhere else, Mr. Turpin said.
White Hall Police Chief said the boot camp's closure would have a detrimental effect on the surrounding Greene County communities.
"The closing would definitely have an economic impact on the county, as several of their employees reside in the county, and others that commute still do business here," the chief said. "It would bring down an the communities' revenues, because they would have to hire a lot of the services that the boot camp inmates render free.
Boot camp prisoners often perform various labor tasks for municipal governments and not-for-profit organizations.
Mr. Molina said inmates would be dispersed throughout the other state jails when facilities are closed, and staff would follow the American Federation of State, County and Municipal Employee contract when it comes to any layoffs.
'These are very difficult decisions to make for everybody involved," Mr. Molina said. "It's not a reflection of the job our staff have performed, but a doI1ar-and-cents issue."

Ryan may free inmates early

Suggestion could prod lawmakers to yield on budget

By Christi Parsons and Adam Kovac, Tribune staff reporters. Tribune staff reporter Rudy Bush at Starved Rock State Park contributed to this report
April 12, 2002

SPRINGFIELD -- Gov. George Ryan upped the ante in his battle to win budget concessions from lawmakers Thursday, suggesting he might move to free as many as 4,500 inmates before their sentences are completed to shut down more prisons and save money.

The inmates are all convicted of non-violent crimes, most of them drug offenses, and are within seven months of their scheduled release dates from the Illinois Department of Corrections. They would be allowed to cash in good-time and other credit to go home early, but they would be required to undergo intensive substance-abuse therapy and close monitoring by parole agents.

"We may have to let those folks out early to accommodate the closure of another prison or two, to save the money that we need to save," Ryan said after a meeting with legislative leaders.

The pronouncement came as House Speaker Michael Madigan (D-Chicago) and Senate President James "Pate" Philip (R-Wood Dale) insisted they can still craft a balanced budget without raising taxes.

Ryan is skeptical this can be accomplished, but even he refused to offer tax increases as a solution.

The Economic and Fiscal Commission, the fiscal arm of the legislature, now thinks the state could end the year with as much as $1.4 billion less in income than Ryan and the General Assembly counted on when they put their budget together last spring.

With that in mind, Ryan's budget director put a hold on maintenance projects at 42 facilities of the Human Services, Corrections and Natural Resources Departments this week as a prelude to their possible closure or downsizing. The facilities are scattered throughout the state--and throughout the districts of many of the lawmakers who Ryan hopes will help come up with a budget solution.

Though the early-release plan is meant to cut costs, state prisons chief Donnie Snyder argues it also is an effective way to help inmates with substance-abuse problems.

"I have always felt that there are some who could be better served in some community-based treatment program than incarcerated in the Department of Corrections," Snyder said.

According to a memo drafted by his budget director, Ryan also is considering shutting or downsizing prisons in East Moline, Sheridan and Centralia, as well as several work camps, transitional centers and a boot camp. Other targets for possible closure or trims are the Ann Kiley Developmental Center in Waukegan and mental health centers in Downstate Anna and Alton.

Two dozen state parks also are on the list for cutbacks or shutdown, among them Starved Rock State Park near Ottawa, Illinois Beach State Park in Zion and Mazonia State Fish and Wildlife Area in Bourbonnais.

In all cases, state officials said they have not decided which to close, which to downsize and which to leave untouched. But many lawmakers said they believe Ryan is using the closure list to scare them into compromise or into pushing politically risky budget-balancing moves.

Faced with the possible closure of two facilities in his district, Sen. Larry Woolard (D-Carterville) called for a temporary surcharge on the state income tax that would raise the rates on personal income to 3.5 percent from 3 percent and on corporate income to 5.3 percent from 4.8 percent. Such suggestions have long been considered heresy in an election year.

Rep. Frank Mautino (D-Spring Valley), said Ryan was clearly trying to avoid advocating a tax increase, but trying to get legislators to do it instead. "The strategy would be to show that you can't craft a budget that could pass without raising taxes," he said.

On Thursday, Mautino's office was flooded with phone calls from constituents worried about Starved Rock, which is in his district. He said he believes Ryan officials have no plan to close Starved Rock, considered one of the crown jewels of the state park system. Rather, Mautino said he believes officials want to delay opening an interpretive center to save the salaries of four employees.

But officials won't confirm that, so local residents were left to wonder. At the park Thursday afternoon, the news stunned workers and visitors alike.

Park Supt. Jon Blume said it was all news to him.

"We're getting calls from people who want to know what to do about their family reunions," he said. "Nobody really knows where this comes from. Some people think this is just one of those `what-if' lists but don't know the reason we're on it."

 

Illinois House unanimously passes resolution opposing
Governor's May 15 closings of Vienna CC and IYC-Valley View

April 11, 2002

SPRINGFIELD, ILLINOIS AFSCME Council 31 praised the Illinois House of Representatives today for sending a strong message to Governor Ryan that he should not unilaterally accelerate the planned closing dates for the Vienna Correctional Center and the Illinois Youth Center Valley View.
The Ryan administration had originally announced that Vienna and Valley View would be closed July 31 and September 30, respectively. But on Tuesday, the Governor's representatives informed AFSCME and the 561 employees it represents at the facilities that they planned to move up the closing dates to May 15 and lay off virtually all employees at that time.
"The acceleration of the closures ignores the will of the House of Representatives, which just voted to include funding in its fiscal year 2003 budget to keep Vienna and Valley View open," said Henry Bayer, executive director of AFSCME Council 31.
Swiftly responding to the Governor's move, the House today acted to pass a bipartisan resolution by voice vote with no objection that called on the Governor to keep his commitment to allow the legislature to complete its work on the FY 2003 budget. The resolution, sponsored by Rep. James Fowler (D-Harrisburg) and other legislators, says, "we strongly oppose the Department of Corrections' actions in moving inmates during the course of legislative deliberations and oppose any closure or downsizing of Vienna CC or Valley View IYC without legislative approval."
"Once again the House has sent a strong message to Governor Ryan, warning him not to usurp its authority with respect to funding these facilities," added Bayer. "The Governor should now realize that the overwhelming majority of legislators are concerned with the safety and security of the prison system."
Shuttering the doors of the Vienna and Valley View facilities would require rapidly transferring more than 1,000 inmates to other Illinois prisons within a system that is already overcrowded. The overall system is currently running at 141 percent of capacity, with minimum-security adult facilities such as Vienna at 151 percent of capacity and juvenile facilities at 127 percent. In recent weeks, incidents of violence have been reported in several correctional facilities, and two facilities have been placed on 24-hour lockdown.
"Today's move by the House is a strong step in the right direction of keeping these facilities open for the communities they benefit and the dedicated security personnel who protect the public," added Rep. Dan Reitz (D-Steeleville), a co-sponsor of the resolution.
Other co-sponsors included Reps. Mike Bost (R-Murphysboro), John Jones (R-Mount Vernon), Gary Forby (D-Benton), Thomas Johnson (R-West Chicago), Tim Schmitz (R-Batavia), Douglas Hoeft (R-Elgin), and Mike Boland (D-East Moline).

15,000 PEOPLE SIGN PETITIONS TO KEEP VIENNA PRISON OPEN

BY JEFF SMYTH
THE SOUTHERN
Thu Apr 11 2002

MARION -- The effort to save the Vienna Correctional Center from closure continued both on a grassroots level in Southern Illinois and on the legislative front in Springfield Thursday.
Johnson County Republican Party Chairman Bob Pippins delivered to Gov. George Ryan's Southern Illinois office in the morning petitions signed by 15,000 people opposing plans to mothball the prison.
Ryan announced in February he would close the Vienna prison and Illinois Youth Center in Valley View as cost-saving measures.
The governor did leave the door open to saving the facilities if the American Federation of State, County and Municipal Employees, the union representing many state employees, would agree to wage freeze and furlough day concessions.
Petitions were circulated throughout Johnson and adjacent counties soon after the news. Pippins said Tuesday's announcement by the Illinois Department of Corrections that it moved up the date of closure from July 31 to May 15 expedited delivering the petitions to Ryan's Southern Illinois representative, Brad Cole.
"It puts emphasis on it," Pippins said. "It is a squeaky-wheel thing: The more vocal we are, the better the chance they'll keep it open."
Pippins said he is concerned that no progress has been made in finding a solution to keep the prison open. He said the governor, legislature and union must share in the blame.
"The legislature has a roll to play in this. It can give up member-initiative funds and an expected pay raise," he said. "There are things the union can do. They can take a furlough day. There is also something the governor can do.
"There is room to negotiate. We need the legislature to propose a budget that meets the state's needs, but keeps these jobs," he added.
At least one legislator agrees. Sen. Larry Woolard, D-Carterville, proposed Thursday that the state impose temporary 0.5 percent personal and corporate income tax surcharges that he said would generate more than $3 billion over two years.
The revenue would take Illinois out of financial jeopardy and protect state employee jobs, as well as health care and education programs threatened by cutbacks, he said.
"(This is) something not necessarily, do I believe, that the majority of the people in the legislature at this time are prepared to say they stand with me," Woolard said. "No one likes to talk about tax surcharges but something must be done."
Debbie Lippincott, AFSCME staff representative for District 14, said she was encouraged by Woolard's announcement, but also is discouraged that other legislators haven't developed firm alternative plans to help in the Illinois' fiscal crisis while preserving state jobs.
"It was hundreds, now it is thousands of families, applauding your courage of being one of the first legislators to have the leadership to say this is how we need to fill this revenue gap," Lippincott said. "It is disappointing we haven't seen more legislators step up to this challenge.
"We've got a serious fiscal problem and we are not hearing enough from the legislators. What would they do to raise money if they don't agree with raising taxes," she asked.
The Illinois House Thursday also passed a resolution asking Ryan to postpone closing both the Vienna and Valley View facilities until lawmakers have had the opportunity to finalize a budget.
"Overall the next several weeks, the General Assembly will be reviewing the budget closely, and offering input on how we can deal the shortfall," 115th District State Rep. Mike Bost, R-Murphysboro, said. "Everyone knows cuts are inevitable, but those cuts need to be made in areas that are least likely to hurt."
State Rep. James "Jim" Fowler, D-Harrisburg, sponsored the house resolution. Although it is only a recommendation, Fowler said the action tells the governor of Republican and Democratic representatives' opposition. The measure passed on a voice vote without dissent.
Whether the governor heeds the advice "remains to be seen," Fowler said. "We hope he does."
Woolard said that saving the Vienna prison is imperative not only because the state needs it and many families depend on the jobs it provides, but also because both gubernatorial candidates, Republican Jim Ryan and Democrat Rod Blagojevich, have vowed to reopen the facility if elected.
"I don't care if we close it a month earlier or six months earlier. It doesn't save the state money knowing it will reopen," he said. "Jim Ryan and Rod Blagojevich, if we don't solve something, are going to have a major undertaking because they are going to have to find dollars to make it happen because they pledged they'd make it happen.
"If it doesn't cost us a ton of money to close that facility and a ton of money to reopen it, I'll kiss your hat," he added.
The resolution is HR 798.

 

Bill would freeze pay for top officials

Cost-of-living adjustments would end for one year

By DOUG FINKE
STATE CAPITOL BUREAU
11 April 2002

Gov. George Ryan, state lawmakers, judges and other top state officials would have their pay frozen for a year under a bill being pushed by Senate President James "Pate" Philip, R-Wood Dale.
The Senate Executive Committee on Wednesday approved Philips plan, which will eliminate the 3.8 percent cost-of-living raises that automatically kick in for those officials July 1. The plan was attached to Senate Bill 2313, which now goes to the full Senate.
"We appear to have a $900 million (budget) hole, Philip said. "It seems to me we ought to show a little restraint around here. If were going to be cutting the budget and asking people to sacrifice, we ought to do it ourselves.
Philip acknowledged that eliminating the cost-of-living adjustments, or COLAs, for one year will save only about $5.6 million, a pittance in the context of the states budget problems. However, he said it sends the right message to the public.
"Everybody ought to take a little pop, Philip said.
Lawmakers, statewide elected officials, judges and agency directors have their salaries set by the Compensation Review Board, which makes pay-raise recommendations to the General Assembly every election year.
However, in addition to whatever the pay board recommends, those same officials qualify for automatic COLAs each year that are based on the official rate of inflation. Money to pay the COLAs was included in the governors budget plan for fiscal 2003 even as the state was talking about slashing jobs and services. Ryan said the state Constitution forced him to include the money in the budget.
However, state employees and others reacted angrily to the idea that well-paid state officials will get a raise while other state jobs and programs are being cut.
Ryan has pressured union employees to forgo their scheduled 3.75 percent pay raise July 1 or face thousands of additional job cuts.
Also Wednesday, the Senate Executive Committee approved a resolution rejecting the latest pay recommendations of the Compensation Review Board.
The board recommended no raises (outside the COLAs) for anyone other than associate circuit judges.
The panel said those judges salaries should be raised 1.9 percent to $129,719 a year.
If the resolution is adopted by both the House and Senate, the judges raises will be rejected.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Repairs are next for state cutbacks
Targets include prisons, parks

By Christi Parsons and Gary Washburn,
April 11, 2002

Gov. George Ryan's administration edged toward a new round of austerity measures Wednesday by ordering that maintenance work be halted at 42 state facilities, including prisons, mental health facilities and state parks, as a prelude to their possible closure or downsizing.
In a memo to the state agency that oversees building projects, Ryan budget director Steve Schnorf called a halt to any more fix-up work at facilities the governor might decide to close. On the list are Ann Kiley Developmental Center in Waukegan, Illinois Beach State Park in Zion and Starved Rock State Park near Ottawa.
The facilities are on a working list of suggestions from agency directors, Schnorf said. Not all of the facilities on the list will be shut down, he said, but some likely will.
"I decided that, while we're waiting for a decision, we shouldn't go ahead and invest money in a facility that, two weeks later, we're going to announce we're closing," Schnorf said. The governor could make his choices in the next couple of weeks, he said.
The decision comes as funds entering the state's coffers plummetand the state's budget picture worsens by the day.
The cash flow problem is so bad that the state delayed passing along income tax payments due 600 local governments in January and February, according to aides to comptroller Dan Hynes. The late payments amounted to $87.3 million for January and $54.9 million for February.
Walter Knorr, Chicago's chief financial officer, said the state was a month late in passing along $20 million in income tax money owed the city in February, worsening the city's own budget pinch. As a result, the City Council's Finance Committee advanced a measure Wednesday that would allow the Daley administration to issue short-term notes to generate money to continue to pay bills if the flow of tax revenues from Springfield becomes a serious problem.
Knorr hinted that layoffs may be the only way to solve the city's own budget shortfall, estimated recently at $25 million. The deficit persists even after 5 percent reductions in non-personnel spending were implemented in many departments, he said.
"There were very significant cuts made in the non-personnel area," Knorr said. "You are doing all of those things, [so] you are getting to the point where you have to look at the personnel side of the equation. I think that is basically in the mix right now."
The state has more than $1 billion in unpaid bills, owing to the cash flow problem. But income tax payments to municipalities now are up-to-date, said Karen Craven, a spokeswoman for Hynes.
Meanwhile, lawmakers are preparing to craft a new state budget while they face a growing hole in the current $53 billion budget. Although election-year concerns have left leaders unwilling to openly discuss raising taxes, House Speaker Michael Madigan said Wednesday that "everything should be on the table" as the talks begin.
"We're in a real bad situation," Madigan said.
No one knows that better than Ryan, who has dealt with the budget crisis, in large part, with drastic cuts in the state agencies. Schnorf's memo suggests even more might be on the way. In it, he instructs capital development officials to hold all repair and maintenance projects at the 42 facilities.
Union leaders suspect that the budget memo might be a scare tactic meant to influence current negotiations. But even if it isn't, said one official, it is still irresponsible.
"If they are idle threats, that's a violation of the public trust," said Roberta Lynch, deputy director for the American Federation of State, County and Municipal Employees. "If they're serious, it's still a violation of the public trust. These would be wholesale, reckless cuts."
As talks of new cuts swarmed the Capitol, senators began advancing measures to give up cost-of-living wage increases for themselves, statewide officers and top state agency officials, and to deny salary hikes for judges. The measures now go to the full Senate.

Copyright © 2002, Chicago Tribune
 

AFSCME: Prison closings will jeopardize guards, inmates

STATE CAPITOL BUREAU
10 April 2002

The union representing state prison workers said Tuesday the planned closing of two prisons this spring will jeopardize both the guards and the inmates.
The Illinois Department of Corrections will lay off nearly 600 workers at the Vienna Correctional Center in southern Illinois and the Valley View Youth Center in St. Charles by May 15.
Gov. George Ryan called for closing the two prisons as part of his fiscal 2003 budget plan, but he originally said they would stay open until late August.
"We believe these facilities are critical to maintaining security in the prison system," said Buddy Maupin, of Council 31 of the American Federation of State, County and Municipal Employees. "This proposal doesnt just flirt with disaster, it ensures disaster. Its a reckless and irresponsible act."
Both AFSCME and state Sen. Larry Woolard, D-Sesser, said the current state budget provides money to keep both prisons open until June 30, the end of the current fiscal year.
"Theres no way we can justify the total irresponsible approach we are taking to the lives of individuals who live in a particular area of the state," said Woolard, whose district includes the Vienna prison.
About 500 jobs will be lost there, while 190 jobs will be cut at Valley View.
Ryan administration officials have said a number of budget cuts the governor proposed for next fiscal year must be speeded up because the states financial condition continues to deteriorate.
They also blame AFSCMEs rejection of a wage freeze for forcing layoffs to be accelerated.
AFSCME says the state is trying to solve its budget problems on the backs of state workers. The union is suggesting a series of tax increase as an alternative to budget cuts.
 

Corrections confirms over 130 to be laid off

By John O'Conner
Associated Press
06 April 2002

The Illinois Department of Corrections announced Friday it is laying off 88 correctional sergeants and 44 maintainance workers at nearly  two dozen prisons next month. The announcement follows earlier layoffs of Corrections employees but marks the first time that cuts Include secunty guards, raising concerns about prison safety.
But a Corrections spokesman said the 23 prisons where the layoffs occur will remain safe because officials are eliminating positions only after carefully choosing them to ensure security is not weakened.
The Jacksonville Correctional Center will lose one sergeant and one maintenance worker.
The job-cut announcement came as the House Friday overwhelmingly voted to restore $74 million that Gov. George Ryan proposed cutting in the Corrections budget that begins July 1.
Those cuts included closing two prisons after Ryan closed the maximum security Joliet Correctional Center last fall.
"We already have overcrowding and as you suggest that we cIose prisons and reduce staff I think we are asking for trouble said Rep. Gary Hannig of Litchfield, the Democrats' budget negotiator.
"There's going to be a riot break out somewhere on a big scale or Include a bunch of little fights will happen that we could have avoided." Ryan announced last month that the budget crisis - a $1 billion dollar deficit in the current spending plan - and no help from stubborn Democratic lawmakers and an intransigent union forced him to layoff 1,000 workers.

Corrections earlier laid off 120 employees who coordinate leisure time activities and last week announced laying off maintenance workers. But this is the first time direct security staff will get pink slips.
"Security is our primary concern," Corrections spokesman Brian Fairchild said. " We have targeted these layoffs very precisley on an individual basis so we do not compromise security."
That is little comfort to the American Federation of State, County and Municipal Employees, which was informed this week about the cuts. The union protests not only guard layoffs but those of maintenance workers who supervise inmate

crews and do crucial jobs such as fixing locks and keeping plumbing unclogged, said Buddy Maupin, AFSCME regional director.
"We're very concerned the administration continues to target the front-line security staff to bear the brunt of the proposed cuts," said Maupin.
" A good sergeant makes the prison run. They are the lynchpin to good security." Corrections Director Donald Snyder has been criticized for adding several layers of management to his administration. Fairchild said dozens of vacant administrator positions have gone unfilled because of the budget crisis.

 

 

House restores budget cuts

Republican-led Senate reviews plans next week

By DEAN OLSEN
STATE CAPITOL BUREAU
06 April 2002

Using their majority in the Illinois House and taking heat from top Republicans, Democrats engineered an effort Friday to restore more than $400 million in budget cuts proposed by Gov. George Ryan.
"We laid out the priorities," said Rep. Gary Hannig, D-Litchfield. "In the end, it gives us a place to begin the final bargaining with the Senate and with the governor. We know that were only part of the process."
The action, supported by several rank-and-file Republicans, was far from the final word on the Republican governors proposed $46.5 billion budget.
The GOP-controlled Senate will consider the proposals next, and legislative leaders will sit down with Ryan to work out a final plan by mid-May for the fiscal year that begins July 1.
But a member of the Houses Republican leadership group, Rep. Art Tenhouse of Liberty, chastised Democrats for ignoring the states fiscal crisis and not proposing specific tax increases needed to pay for their plan.
"Youre not sending a responsible message to the people of Illinois," he said. "The reality is this is a cruel hoax."
Democrats didnt restore all the cuts proposed by Ryan, including ongoing changes in the operations of the Lincoln Developmental Center that would lead to 400 layoffs and the closure of Joliet Correctional Center.
But the restorations would call off the closure of Peorias Zeller Mental Health Center and the downsizing of Elgin Mental Health Center and Singer Mental Health and Developmental Center in Rockford.
The proposals also would eliminate the need for most of Ryans proposed 3,800 layoffs of state workers, the privatization of food services at state prisons and other prison job layoffs.
Many of Ryans proposed cuts in Medicaid reimbursements to hospitals would be restored, although the House plan didnt touch proposed Medicaid cuts to nursing homes.
The states recession-related revenue picture has worsened since Ryan introduced his budget outline Feb. 20. Lawmakers acknowledge the state would need to raise $800 million, probably through tax increases, to fund Ryans budget. With the more than $400 million in restorations, almost $1.3 billion more would be needed in revenue-increasing measures.
Most of the votes opposing bills that would restore programs came from Republicans.
The House bill containing the state budget for elementary and secondary education didnt exceed Ryans budgeted level, but it still failed to receive the required 60 votes for passage. The legislation would direct $6.18 billion to education a $19 million cut in general revenue fund spending compared with the current fiscal year.
Bill sponsor Rep. Julie Curry, D-Mount Zion, said many lawmakers most of them Republicans didnt want to vote to spend less money on education despite their concerns about the budget crisis. She told legislators on the House floor, "The budget you have today is one that reflects reality."
The bill reflected changes in the way Ryan planned to divvy up money for education. The House committee that Curry heads deleted Ryans plan to funnel $410 million into no-strings-attached general state aid.
Ryan wants to get the $410 million by eliminating 22 different grant programs and give local districts more say over how to spend the money. But Currys committee, with the support of some Republicans, proposed to restore funding for the largest grant programs, including early childhood education, reading improvement, summer school and grants for vocational, bilingual, alternative and gifted education.
The committees plan would put an additional $74 million into general state aid.
Gregg Durham, a spokesman for House Republicans, said most voted against the education bill because it would harm their local school districts more than other spending alternatives.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

Bill lets state workers drop insurance

By STATE CAPITOL BUREAU
05 April 2002

The Illinois Senate approved legislation Thursday that would allow state employees to opt out of mandatory participation in the states health insurance plan if they are covered by another insurer.
Senate Bill 1859 would affect employees who are covered through a previous employer, by a spouses insurance plan or through the military.
The largest state union, the American Federation of State, County and Municipal Employees, proposed the bill, said the sponsor, Sen. Larry Bomke, R-Springfield. He said the measure could save the state $24 million in health insurance payments, as well as spare some employees the cost of insurance premiums. At present, state workers must purchase state health insurance.
The bill passed 56-0 and goes to the House. It does not affect families where both spouses are state employees.
Mansion curator
Legislation the Senate passed Thursday would create the position of curator of the Executive Mansion.
The governor would appoint the curator with approval of the Senate. The curator would serve a five-year term and would manage the collections of art, furnishings and artifacts at the Executive Mansion in Springfield, the governors offices in Springfield and Chicago and the Hayes House in DuQuoin.
The curator also would oversee conservation and preservation of the Executive Mansion itself and the grounds surrounding it.
The governor would set the salary for the job, said the bills sponsor, Senate President James "Pate" Philip, R-Wood Dale.
Sen. Vince Demuzio, D-Carlinville, questioned whether the Senate should create a position when the state is laying off workers in other areas. Philip replied the job has existed since 1968 and that Senate Bill 2130 would simply include it in state statute.
Furlough benefits
A bill the Senate passed would give state employees service credit for days they take off voluntarily or involuntarily during the current state budget crisis.
Gov. George Ryan has ordered state employees under his control to take an unpaid furlough day to save money. AFSCME, the largest state government union, has won a temporary restraining order in court to prevent the state from implementing the mandatory furloughs. The state, in turn, has gone to court to prevent AFSCME from pursuing further legal action.
Senate Bill 1779 would allow employees to continue to accumulate pension credits for furlough days.

Democrats hoping to reverse Ryan cuts

$400 million would be put back in budget

By DEAN OLSEN
STATE CAPITOL BUREAU
05 April 2002

Democrats who control the Illinois House intend today to restore more than $400 million in recession-related state budget cuts proposed by Gov. George Ryan.
But top Republican lawmakers on Thursday protested the tactic and said it will send the wrong message to poor, disabled and elderly people who depend on the state for services and may be bracing for cuts.
"I think they're misleading a lot of people," Senate President James "Pate" Philip, R-Wood Dale, said after a meeting of legislative leaders and Ryan, a Republican. "Unless you have a gigantic tax increase, you can't do these things."
The proposed budget restorations in a pivotal election year for the General Assembly would eliminate the need for most of Ryan's proposed 3,800 layoffs of state workers.
Also off the chopping block would be other human-service cuts, a wage increase for personal-care workers, the privatization of food service in state prisons, the closure of two prisons and a mental health center, and cuts in Medicaid reimbursements to hospitals.
But Philip and House Minority Leader Lee Daniels, R-Elmhurst, pointed out that new and gloomier forecasts for state revenues in the fiscal year beginning July 1 indicate the state would need to raise taxes and fees by $800 million just to support Ryan's proposed $46.5 billion budget.
Adding $400 million to the total through the restorations of some of Ryan's proposed cuts would create a budgetary hole of $1.2 billion that they said probably wouldn't be filled entirely - even if limited tax increases were adopted.
Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said the current plan to alter Ryan's budget proposal, supported by rank-and-file Democrats and some Republicans in the House, won't mislead the public.
He said most people don't follow the inner workings of the General Assembly this early in the budget process. Legislators plan to adjourn the current session and complete the budget by mid-May.
Brown said the efforts of rank-and-file House Democrats show they "are not willing to throw in the towel on preserving state services."
Some House Democrats want to consider boosting state revenues through a cigarette tax increase of 75 cents a pack and higher taxes on riverboat casinos, among other measures.
House Democrats plan to pass individual budget bills for all state agencies by tonight, but no revenue-boosting measures are among them.
The passage of individual agency budget bills represents a level of legislative scrutiny not seen for about 10 years, but common before then, Madigan said. In the recent past, lawmakers have put the entire state budget into a handful of bills, instead of separate legislation for each agency.
Sen. Steve Rauschenberger, R-Elgin, said the House Democrats' plan to restore cuts without passing revenue increases is "the height of irresponsibility."
House Democrats, he said, are "big talkers over there about how they're going to support their plans with revenues, but they don't want to put a single political butt on a roll-call vote for an increase in revenue."
"So this is the first step in the process," Rauschenberger said. "The next step will be over in the Senate. The final step will be in the governor's office."
Interestingly, Ryan, who is not running for re-election, didn't have harsh words for House Democrats after meeting with legislative leaders. In the past, he has criticized Democrats for not participating enough in budget negotiations.
"There's no question we can't afford it," Ryan said of the Democrats' plan. But he added, "This is a good start."
Ryan hasn't ruled out a tax increase to help resolve the shortfall, and neither have Madigan, Daniels and Philip.
After the House passes the bills today, they will go to the Republican-controlled Senate. The entire budget, whether contained in one bill or 50, will need approval from both chambers and Ryan.
The restorations by House Democrats wouldn't include a proposed cut in Medicaid reimbursements to nursing homes, money saved by the layoff of 400 workers at the Lincoln Developmental Center and spending cuts in education.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.

Convict seeks clemency in 1946 killings

By Associated Press
April 4, 2002

Advocates for convicted murderer William Heirens argued for clemency today, saying he was the victim of overzealous police and prosecutors who were under intense pressure to solve three 1946 killings that rocked Chicago.
Two Northwestern University law professors who have taken up Heirens case told Illinois Prisoner Review Board that Heirens was railroaded for the murders of two women and a 6-year-old girl.
Steven Drizin of the Children and Family Justice Center at Northwestern said that Heirens case has "all the earmarks of a wrongful conviction." He asked the 13-member board to "right wrongs which the courts have failed to right."
Advocates for Heirens also say the 73-year-old is sick and is no threat to society. They say he gave a false confession under duress.
In December, three men imprisoned for 14 years for a 1986 rape and murder were ordered freed after the countys chief prosecutor said there was no evidence against them. A fourth man convicted in the crime remains in prison on a theft conviction. Their clemency case is also before the board.
In addition, the death sentences of 13 people have been overturned since Illinois resumed capital punishment in 1977. In some cases, evidence showed they were innocent; in others, they received unfair trials.
Heirens was 17 when he was arrested for the slayings of the child, Suzanne Degnan, whose remains were found scattered through Chicago sewers, and of Josephine Ross and Frances Brown.
The killings received tremendous publicity at the time, with newspapers frequently mentioning the message, "Catch me before I kill more," found scrawled in lipstick on the bathroom mirror of one of the adult victims.
Colin Simpson testified on behalf of the Cook County States Attorneys office, saying nothing has changed in the last 56 years.
"William Heirens was guilty of these murders in 1946, and he is just as guilty of these murders today," Simpson said.
The review board will make a recommendation to Gov. George Ryan, who will decide Heirens fate.

U.S. probe indicts `political culture'

Many blur the line between campaign, government duties

By Rick Pearson and Matt O'Connor, Tribune staff reporters. Tribune staff reporters Ray Long, Andrew Zajac and Rudolph Bush contributed to this report
April 4, 2002

When the federal government indicted Gov. George Ryan's campaign committee and two of his former top aides, it also took direct aim at an anything goes political system that for generations has relied on subtle--and sometimes not so subtle--coercion of public employees to provide funding and fieldwork.
"This is an indictment of a political culture," said political scientist Kent Redfield of the University of Illinois at Springfield. "It reinforces the attitudes among those people who believe all state workers are hacks and all politicians are corrupt."
A day after the indictments were announced, Democrats and Republicans wasted little time trading shots over who was more culpable in using public funds to further their political futures and who was more likely to clean up government corruption.
Yet privately, many political insiders said the campaign-related indictments would have a chilling effect on both political parties in the fall races, as each side groped for ways to avoid any appearance that their operations were tainted by misuse of public funds and resources.
For decades, a wink-and-a-nod understanding has been pervasive at all levels of Illinois politics. Politicians looked for ways to advance their careers on the cheap, taking advantage of what had been a system with few rules, lax enforcement and no incentive to make reforms.
Top government workers routinely would explain they were on a "coffee break" when they offered lower-level workers the "opportunity" to buy fundraising tickets to help their political patrons. Hundreds of state employees would take a late "lunch hour" to attend midday political rallies in the Capitol rotunda.
Many government workers understand that political duties are an accepted price they must pay for their job, whether it means ponying up for a fund-raising ticket, staffing a phone bank or working a precinct on Election Day. Often, they give up vacation time and comp time from taxpayer-funded jobs to work on political campaigns directed by the bosses to whom they owe their livelihood.
But often such activities by Illinois politicians blatantly cross the line.
Only last month, former Calumet City Mayor Jerry Genova, an unsuccessful 1998 candidate for the Democratic nomination for state treasurer, was sentenced to 5 years in federal prison for taking kickbacks and using city workers to help his political campaigns on city time.
Former Chicago Congressman Dan Rostenkowski pleaded guilty in April 1996 to federal mail fraud charges, using taxpayer funds to buy gifts for friends and for using congressional staffers for personal and political errands.
The practice of ghost-payrolling--the hiring of employees who perform little or no governmental work but do political tasks--has been pervasive in Illinois. A decade ago, federal authorities mounted a probe called "Operation Haunted Hall" to exorcise ghost payrollers from city government.
In the 1970s, then Democratic Gov. Dan Walker placed several political operatives in ghost jobs at state commissions. One of them allegedly was self-styled reformer Pat Quinn, now the Democratic nominee for lieutenant governor. Quinn has long disputed the allegation.
Some political insiders said the new federal charges mean campaigns must become more scrupulous in trying to separate the official from the political. And rather than representing reform, it could mean campaigns may become more expensive--and even more dependent on special interest money--if they are forced to hire a full-time professional political staff that is totally divorced from the cheaper "volunteer" force of government laborers.
Political and governmental commingling has "been pervasive at the state and local level, in southern Illinois, in Springfield and in Chicago for generations," Redfield said. "The standards have been low. If somebody is doing political work on state time, it elicits a yawn from everybody."
The federal charges filed against Scott Fawell, Ryan's former chief of staff and 1998 campaign manager, included allegations that he ordered taxpayer-funded workers to staff campaigns for the legislature, the presidency and Ryan's bid for governor, then rewarded their efforts with raises and new government jobs.
But the indictment alleges that Fawell went far beyond the loose standards of Illinois politics by using state funds to compensate workers for their political work as well as requiring subordinates to falsify time sheets and destroy records in a coverup.
Most campaigns attempt to create a firewall between the political and governmental duties of their staff. Public employees are usually taken off the government payroll and paid by campaigns for their political work to create at least an appearance of a clean break.
But the indictments have some campaign consultants fretting over whether the traditional lines defining where government work ends and political work begins will still be considered distinct enough to pass prosecutorial muster.
"We work in a political environment. We work 12 to14 hours a day. It's a political process to pass a bill," said Greg Durham, a spokesman for Rep. Lee Daniels of Elmhurst, the House Republican leader and chairman of the state GOP. "But the line is clear that you can't work on campaigns or make signs or brochures while being paid by the taxpayers. If the scrutiny is going to be higher, bring it on."
It was Daniels' House Republican Campaign Committee that turned over to the federal government last fall documents of payments made to Unistat, a campaign election list and direct-mail firm owned by former state legislator Roger Stanley. The indictment charged that Fawell steered a taxpayer-funded contract to a company--identified by a well-placed source as Stanley's--in exchange for campaign funds and payments to himself and campaign workers.
The federal investigators told attorneys for the House Republican campaign fund that it was not a target or a subject of an investigation, Durham said.
"We got a request for records. We put them in a box and sent them to [investigators]. That's the last we heard," Daniels said. "No House Republicans, nor is the House Republican Campaign Committee, under any kind of investigation."
The 80-page indictment detailed how Citizens for Ryan, Fawell and former Ryan aide Richard Juliano routinely used employees in the secretary of state's office when Ryan ran it to do campaign work on state time.
The charges included the allegation that Fawell, during the summer of 1996, promised "numerous" secretary of state office employees "work-related benefits and other compensation" as a reward for their work for Republicans in House races.
The charges also allege state-issued vehicles, computers, cell phones and quantities of office supplies and equipment were improperly used in Ryan's 1998 governor's campaign to cut costs.
Even an industrial shredder bought with taxpayer funds by the secretary of state's office was diverted to the campaign and used as part of what prosecutors allege was the wholesale destruction of records linking state employees to the 1998 campaign effort.
After the shredding was completed, numerous garbage bags full of shredded material were hauled away to ensure law enforcement didn't learn of the destruction of documents, authorities charged.
Fawell also directed campaign employees to use "wiping" equipment to delete campaign-related materials from computer files, the indictment charged.
Fawell was alleged to have lied in a grand jury appearance in 1998 about his knowledge of how employees, under pressure to raise campaign money, sold commercial driver's licenses in return for campaign contributions and bribes.
The indictment alleged that Fawell enforced mandatory political fundraising goals for departments within the secretary of state's office and that supervisors imposed fundraising quotas on employees.
"Obviously running for public office costs money, but we never want anybody to feel pressured to do anything. It's not worth it to us," Fawell told the grand jury.
 

Layoff notices issued for 12 DNR workers

By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
04 April 2002

Twelve employees of the state Department of Natural Resources are the latest slated to lose their jobs.
DNRs human resources division chief, April Cook, notified the American Federation of State, County and Municipal Employees in a letter Tuesday.
Ten of the employees targeted for dismissal work in Springfield. One each is in Champaign and Franklin counties. All could lose their positions on or after May 3.
Spokeswoman Carol Knowles said Wednesday the department may decide that a reduction so soon is not necessary but sought to reserve the latitude to initiate the layoffs next month "in case we need additional budget savings."
Otherwise, Knowles said, the 12 workers will be laid off after the new fiscal year begins July 1. She said the official notice went out because AFSCMEs collective bargaining agreement requires 30 days notice of layoffs.
"Ill bet (management) isnt being laid off, but front-line workers are," said AFSCME executive director Henry Bayer. "Thats happening in agency after agency."
He noted that the Department of Corrections has issued layoff notices to the entire 121-member class of leisure-activity specialists, but none of their supervisors.
Knowles said that even if administrators were being dismissed, they are not required to receive as much notice because they do not belong to the union.
Nevertheless, Knowles said the 12 DNR employees named for release are not management level and that the agency does not anticipate any layoffs of management. She said that in the coming fiscal year, at least 18 more positions will be eliminated by attrition and that some of those will be managerial.
Also Wednesday, Bayer appeared with Sens. Larry Bomke, R-Springfield, and Patrick Welch, D-LaSalle, to support a measure allowing state employees to decline state health-care coverage.
Bomke said all state employees are currently required to make the state their primary insurer, but some may have spouses through whom they could get coverage with minimal or no premiums. He said employees who take advantage of the program and get insurance elsewhere can re-enroll with the state later in their employment, regardless of changes in health.
Bayer said health-care consultants estimate the plan will save the state at least $24 million, even on an entirely optional basis.
Welch acknowledged that although such a savings would have a minimal effect on the state budget, he hopes the idea will open the floodgates for more inventive moves to balance the budget.
Bomke and Welch are sponsoring the plan as an amendment to Senate Bill 1859, an empty piece of legislation that serves as a "shell" for an idea such as this.
Jeff Druchniak can be reached at 544-2819 or jeff.druchniak@sj-r.com.
 

 

 

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Ryan committees assets could be frozen

By DEAN OLSEN
STATE CAPITOL BUREAU
04 April 2002

Federal prosecutors could try to freeze assets in Gov. George Ryans $2 million-plus political fund in the wake of criminal charges filed this week against his campaign organization and two former top aides.
A spokesman for Chicago-based U.S. Attorney Patrick Fitzgerald wouldnt speculate on prosecutors next move or explain why they havent sought a judges approval to seize all or part of the assets of Citizens for George Ryan.
Fitzgerald spokesman Randall Samborn wouldnt even describe the offices legal options.
But Solomon Wisenberg, a former assistant U.S. attorney in San Antonio, Texas, who now works as a defense lawyer in Washington, said "anything that can be traced to a criminal activity" can be frozen.
Wisenberg was a federal prosecutor for 10 years and was on the staff of independent counsel Kenneth Starr in the Monica Lewinsky investigation.
Fitzgerald said Tuesday his office eventually wants Ryans fund to forfeit at least $1 million believed to have been illegally obtained through bribes and a corrupt campaign organization.
Wisenberg said in a telephone interview that tactical concerns might be behind Fitzgeralds decision not to seek an immediate freeze on the assets.
The required method of swiftly freezing the assets a civil forfeiture action in federal court would force prosecutors to reveal some evidence at court hearings earlier than they may have planned, Wisenberg said.
He said prosecutors also might not want the public to think they are trying to restrict the fund to influence the outcome of the general election on Nov. 5. The governor, who is not seeking re-election, in the past has used his campaign fund to support other Republican candidates running for statewide office and seats in the General Assembly.
But Wisenberg, who isnt involved with either side of the case, said the tactical concern probably is the most important.
"Its more likely that they dont want to mess up their criminal case," he said.
Assets in Ryans fund now could be quickly spent to retain legal counsel, Wisenberg said.
Tuesdays announcement of grand jury indictments of Citizens for George Ryan and former Ryan aides Scott Fawell and Richard Juliano marked only the third time a campaign organization has faced federal charges.
The only other two were the Committee to Re-Elect the President, Richard Nixons 1972 campaign, and a presidential campaign by Lyndon LaRouche.
Ryan, 68, hasnt been charged with any wrongdoing in the ongoing investigation.
Fawell, 44, of St. Charles, Ryans former campaign director, plans to fight the charges. Juliano, 35, of suburban Washington and formerly of Park Ridge, plans to plead guilty and is cooperating with prosecutors.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

Ryan refuses to discuss charges against campaign organization

By Christopher Wills
Associated Press Writer
April 3, 2002

SPRINGFIELD -- Gov. George Ryan refused Wednesday to address key questions raised by the indictment of his campaign organization, including whether he has testified before a grand jury.

Trailed by reporters as he left the state Capitol, Ryan again and again refused to discuss what he knows about allegations that his campaign was a corrupt organization that used government employees and resources for political work.

"If thats all youve got to talk about, goodbye," the Republican governor said angrily. "Dont ask me any more questions about it, because Im not going to answer."

Named in the indictment are Scott Fawell, 44, Ryans former campaign manager and chief of staff, and Richard Juliano, 34, a former Ryan campaign manager. Juliano has agreed to plead guilty and cooperate with investigators.

Earlier in the day, in an interview with The Associated Press, Ryan said, "Theyre friends of mine, and theyve been friends of mine, and I hate to see their lives destroyed like this."

Ryan, who was planning an evening appearance in Chicago, refused to discuss the investigation.

"Theres been a lot of rumor, innuendo, bad reporting, inaccurate stuff thats come out about it; now its where it belongs, its in the courts, and the investigation continues, so I really have no comment on any of it," he said.

Tuesdays indictment alleges that Ryans campaign organization illegally used secretary of state employees to help GOP candidates for the House in 1996. House Republican leader Lee Daniels denied any wrongdoing, saying he is not a target of the investigation and has not been called before a grand jury.

Federal prosecutors asked Daniels in the fall for records of payments between his GOP committees and a company owned by former lawmaker Roger Stanley. The 80-page indictment alleged that Ryans campaign arranged for Stanleys companies to secretly pay secretary of state employees for work on House GOP campaigns for Daniels sometimes on state time and while drawing state salaries. Daniels was not implicated in any wrongdoing and the indictment did not say that he was aware of the alleged arrangement.

"We got a request for records. We put them in a box and sent them to (investigators). Thats the last we heard," said Daniels, R-Elmhurst. "No House Republicans (are), nor is the House Republican Campaign Committee, under any kind of investigation."

The fallout from the indictment was a topic in the halls of the Capitol. Sen. Patrick OMalley, R-Palos Park, renewed his call for Ryan to resign, and many Democrats predicted they would be able to turn the scandal to their political advantage.

Rod Blagojevich, the Democratic nominee for governor, already is using the issue against his opponent, Attorney General Jim Ryan, no relation to the governor. Jim Ryan should have investigated wrongdoing under George Ryan, Blagojevich argues.

"We want to know if Jim Ryan was doing that job or not," said Blagojevich campaign chairman David Wilhelm. "The people of Illinois deserve better. After 25 years of one-party rule, its time for a change."

Jim Ryan says he has a strong record of prosecuting corrupt officials, both in his current position and as DuPage County states attorney. Blagojevich cannot say the same, Ryans campaign said.

"Where has Rod Blagojevich been during his public career while Jim Ryan has been cleaning up public corruption?" asked Jim Ryans campaign director, Steve Culliton.

The federal indictment alleges that Citizens for Ryan was a corrupt organization that essentially turned Ryans secretary of state office into a political machine.

A Ryan spokesman said Tuesday that the governor was "unaware" of any wrongdoing. "Whatever my spokesman said, I guess he knew what he was talking about," was all Ryan would say.

Ryan has been charged with no wrongdoing, but his standing in the polls has dropped sharply and he declined to run for a second term as governor.

Federal prosecutors say they are far from finished with the investigation, which started with low-level employees taking bribes to issue illegal drivers licenses and has reached the highest levels of Ryans organization.

Fawell, Juliano and attorneys for Ryans campaign committee were scheduled to appear before U.S. District Judge Rebecca Pallmeyer on Tuesday for arraignment on the indictment.
Copyright © 2002, The Associated Press

 

Ryan: Give accused 'benefit of the doubt'

The Associated Press
 April 3, 2002

SPRINGFIELD -- One day after two of his former top aides were indicted on federal corruption charges, Gov. George Ryan declined to comment directly on the government investigation.
But, speaking outside the Executive Mansion in Springfield this morning, Ryan expressed regret over the charges against Scott Fawell, 44, his former campaign manager and chief of staff; and Richard Juliano, 34, a former Ryan campaign manager who resigned last week as the U.S. Transportation Departments liaison to the White House.
``Theyre friends of mine, and theyve been friends of mine, and I hate to see their lives destroyed like this, Ryan said. ``But you know, there isnt much I can do about it.
``The nice part about living in America is youre innocent until proven guilty, and all of these charges are going to have to be proved, so lets ... give them the benefit of the doubt. Thats what Im going to do, added Ryan, who refused to comment directly on the indictment.
Federal prosecutors Tuesday brushed off questions about the possible future direction of the 4-year-old Operation Safe Road investigation, which began by focusing on bribes paid in exchange for drivers licenses and thus far has resulted in charges against 48 individuals and the conviction of 42.
Ryan has not been accused of any wrongdoing.

Former Top Ryan Aides Indicted

Charges Closest To Ryan Of The 48 Defendants Thus Far

 02 Apr 2002

CHICAGO -- Saying that "Citizens for Ryan broke the law with considerable vigor," and that the federal investigation of those illegalities has been pursued with equal vigor, U.S. Attorney Patrick Fitzgerald announced that federal indictments were filed against Citizens for Ryan and Gov. George Ryan's former campaign manager, and a third party on Tuesday.
These indictments from the Operation Safe Roads investigation are the closest to the governor of any criminal charges so far.
Ryan's former chief of staff and campaign manager, Scott Fawell, and another top aide are charged with federal corruption. 
The governor himself is not touched by any of the 48 indictments connected to the investigation.
It is believed that hundreds of drivers illegally obtained driver's licenses in exchange for bribes. Federal investigators say that bribe money went into Gov. Ryan's campaign fund.
Included in the most recent indictment is "Citizens for Ryan," George Ryan's campaign committee which, for some time has been accused by Ryan critics of funneling money from bribes into the campaign coffers that helped elect the governor.
Allegations of abuse of state workers on state time, forcing them to do campaign work, have also been fired at the governor's office. This indictment represents Ryan's biggest nightmare to date.
Named in the indictment is Scott Fawell, Ryan's former chief of staff. Fawell is also the former chief of the campaign and, worst of all for the governor, he is the man who knew the most about the fund-raising apparatus.
The indictment refers to "Citizens for Ryan" as a racketeering enterprise guilty of mail fraud, bribery and obstruction of justice.
"Tax dollars are not free money," U.S. Attorney Patrick Fitzgerald told reporters at a Tuesday news conference. "Tax dollars belong to the taxpayers. They are not free money to be used by a campaign for campaign purposes, for the benefits of friendly campaigns or for the personal benefit of those who work there."
Tuesday's indictment states that, as the federal investigation picked up steam, Fawell and others shredded documents, erased computers and eventually lied to a Grand Jury.
George Ryan was the Illinois Secretary of State during his run for governor.
"Personnel and resources were fraudulently diverted from the Secretary of State's office for the benefit of 'Citizens for Ryan' and the campaigns it supported," Fitzgerald said. "Personnel was diverted. Assets were diverted. Campaign work was performed on state time and raises and promotions within the secretary of state's office were awarded on behalf of campaign activities."
The indictment further states that as the license for bribes investigation began to expand, Fawell recommended the termination of investigators looking into the deaths of 6 members of the Scott Willis family, killed in an automobile accident that involved a truck driver operating on an illegally obtained license.
Fawell subsequently ordered the dismantling of the Inspector General's office to prevent further investigation of Ryan fundraising activities, the indictment states.
Fitzgerald stated that "the response by defendant Scott Fawell in December, 1994 was, as Chief of Staff, to seek to basically disband the Inspector General's office as it was. And, in fact, some of the investigations were terminated and some of the investigators were terminated."
Edward Gennson, the attorney for Scott Fawell, said his client intends to plead not guilty to all of the charges.
 "Mr. Fawell is very disheartened by (the indictments)," Gennson said. "He's very sad. Mr. Fawell hasn't committed any crimes ... and he will answer the charges in a court of law."
For some time the Better Government Association in Chicago has contended that the George Ryan campaign apparatus was a criminal enterprise and that there was a lot of wrongdoing going on in the organization.
Terrence Brunner, the former head of the B.G.A., responded to Tuesday's indictment and the governor's possible involvement.
"He's the boss. He's in charge. He spent most of his time with Scott Fawell. They ran these campaigns together. They used the Secretary of State's office simply as one big extortionist enterprise. As the government is suggesting, as a criminal enterprise. To shake people down who they regulated in order to get campaign contributions."
 
 
 Former Ryan Associates Indicted   
 
 
Also named in Tuesday's indictment is Richard Guiliano, a former head of the Ryan campaign and a man who worked in the U.S. Dept. of Transportation. Reports are that Guiliano intends to cooperate in the investigation.
So far in the Operation Safe Roads Investigation there are 48 defendants named; 42 convicted, 39 sentenced and 6 awaiting trial.
.
 

Ryan should do the right thing

OUR OPINION
The State Journal-Register
02 April 2002

WE HAVE BEEN consistent in urging the American Federation of State, County and Municipal Employees union to show some flexibility. It is our belief that if AFSCME, the largest state employee union, were willing to make some concessions this year, fewer layoffs would be needed.
We still would like to see this happen because as painful as it may be to delay a scheduled pay raise, it would be much more painful for hundreds or even thousands of workers to lose their jobs.
But AFSCME has not been our only focus. We also urged Gov. George Ryan and the other constitutional officers to give back any scheduled pay increases for the next fiscal year. Of course, the money saved from not giving raises to these six elected officials would be more important as a symbol than as savings - though the governor also could save a very large sum by not hiking the pay of those 10,000 non-union employees in his control.
Five of the six constitutional officers saw the wisdom of forgoing raises during these desperate economic times. Unfortunately, the one who has decided to play games rather than to take a principled stand is the most important - Gov. George Ryan.
LAST FRIDAY, Ryan announced that he would only give up his raise and freeze the salaries of his non-union workers if AFSCME also agreed to a wage freeze.
If this were a true bargaining tool, we would have no problem with it, but it is not.
"Gov. Ryan knows full well that we will not reopen our contract," said Henry Bayer, executive director of AFSCME Council 31. "So what he's really saying is he will not give up his pay raise."
We'd have to agree with Bayer on that one.
A Ryan spokesman last week said that there "is not much point" in acting unilaterally on the wage freeze. The Ryan administration could not be any more wrong on this point.
It is true that not giving raises to the 10,000 non-union employees under Ryan would not completely solve the state's fiscal crisis. It also is true that many of those workers would be perturbed that AFSCME employees would get their 3.75 percent increase -at least those AFSCME workers who keep their jobs.
But part of leadership is the ability to take a principled stand. Ryan knows that the right thing to do is to freeze wages. If he didn't believe this, he would not have asked AFSCME to reopen its contract.
Instead of showing courage and leadership, Ryan has resorted to an immature level of negotiating. "I'll give mine back if you give yours back!" The tactic is particularly galling given that Ryan already makes more than $150,000 and surely could forgo his nearly $6,000 raise.
IT IS IMPOSSIBLE to make a case that this is the proper time for the state to be giving raises. Illinois is hundreds of millions of dollars in the hole. It is closing mental health facilities and prisons. It is drastically cutting back on programs that are lifelines for the poor, the disabled and the aged. It is delaying further and further payment to vendors for services already rendered.
State employees shouldn't feel too picked on - there's plenty of sacrificing to go around.
Thanks to its contract with AFSCME and the union's decision not to negotiate, the state likely will have to give pay raises to the union workers. It also will have to layoff many of those workers. Freezing those wages may be out of Ryan's control, but he's in full control of freezing wages for the 10,000 non-union workers. The governor should remember - two wrongs don't make a right.
 

Statehouse Insider

By DOUG FINKE
STAFF WRITER
30 March 2002

For those of you scoring at home, five of the six statewide elected officials in Illinois say they will give up the 3.8 percent cost of living increase they are scheduled to get July 1. No conditions, no questions asked, no raise.
Then there is Gov. GEORGE RYAN, whose position, as usual, seems to be fluid. A little over a week ago, Ryan wrote another one of his famous letters in which he blames everyone but himself for the states budget problems. It was sent to newspapers around the state, many of which chose not to run it.
In it, Ryan said this about his pay raise: "To help balance the upcoming budget for Fiscal Year 2003, I am willing to forego any salary increase allocated for me this year. I am willing to order no salary increase for my staff. I am also willing to order my cabinet if their pay is set by state law to refuse any salary increase this year. I call on other state officials to follow my lead."
Do you see any conditions in there? The letter goes on and on, but trust us. There is nothing in it that says Ryan will give up his pay raise only if the American Federation of State, County and Municipal Employees gives up the 3.75 percent raise its members will get July 1. Nor is there any other condition, for that matter.
A few days after the letter was largely ignored by the media, Ryans press staff repackaged it as a news release, in which the governor again said he would give up his pay raise. However, now Ryans office says that the governor will give up his raise only if AFSCME also gives up its raise. Ryans staff also says that was the governors position all along.
So Ryan is or isnt giving up his raise, depending or not on whether the union also gives up its raise. More and more this place is like something out of a bad "Twilight Zone" episode.
There are people talking about raising taxes on cigarettes and gambling to help solve the states budget problems, since so-called sin taxes dont carry the political fallout attached to regular taxes. If people want to tax sin, maybe its time to bring back the old porn tax idea.
This concept was promoted by House Republican Leader LEE DANIELS, R-Elmhurst, back in 1997. The idea was to impose a sales tax on adult videos and magazines, with the proceeds going to school construction. It made for some wonderful slogans, none of which can be repeated here.
Daniels actually outlined the idea to then-Gov. JIM EDGAR and the other legislative leaders. Alas, it went exactly nowhere.
But now that we have a bona fide budget meltdown and some people think sin taxes are the way to go, it seems only fair that all sin ought to be taxed. Plus, taxing porn has the added benefit of giving lawmakers an in to taxing Internet sales. Some lawmakers covet the idea of taxing Internet sales and all the extra state revenue that would generate. True, they were thinking about taxing stuff sold by the likes of Amazon.com, but the lucrative Internet porn trade might be a good start.
Ryans budget director, STEVE SCHNORF, discussed the states budget problems with the Senate Appropriations Committee last week. In the course of this discussion, Schnorf said there are four ways to solve the budget problems. The state can raise revenues (also known as a tax increase), it can cut spending, it can play "I pretend," or it can use any combination of the above.
Schnorf was asked to explain what he meant by "I pretend." Did it essentially mean fudging the numbers (overestimating revenues and underestimating expenses) and leaving the problem for the next governor?
"That would be another way of describing it," Schnorf said.
At last, truth in budgeting.
U.S. Rep. ROD BLAGOJEVICH, the Democrat nominee for governor, traveled to the Metro East area after the election to thank voters for their support. While there, the Chicago resident declared that he is a St. Louis Cardinals fan. Blagojevich explained that his baseball loyalties reflect the fact that downstate voters handed him the primary victory while he ran last among Democrats in Chicago.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

At least 182 more jobs cut

By DOUG FINKE
STATE CAPITOL BUREAU
30 March 2002

At least another 182 state government job cuts were announced Friday, bringing to more than 900 the number of layoff warnings issued this week.
The job toll could be even higher with conflicting statements about whether 497 layoff notices have been issued to the union representing workers at the Vienna Correctional Center and the Valley View Youth Center, two Department of Corrections facilities slated to close in the next few months. A Corrections spokesman said the notices had not been sent, while the Department of Central Management Services - the state's personnel agency - said they had.
Corrections acknowledged that the American Federation of State, County and Municipal Employees union has been notified that all 105 maintenance worker, maintenance craftsman and maintenance supervisor positions are potentially on the chopping block by the end of May.
"We don't have any firm numbers as to how many of these positions will be eliminated,'' said Corrections spokesman Brian Fairchild. "The letter says we intend to reserve the right to notify (the union) that we could lay off these employees.''
AFSCME Council 31 executive director Henry Bayer said it is unconscionable for the state to issue layoff warnings when it doesn't know how many jobs will actually be cut.
"They just send out layoff notices willy-nilly," Bayer said. "It is just callousness."
Despite their job titles, the maintenance workers do not actually perform maintenance at state prisons, Fairchild said. Instead, they supervise inmates who do landscaping work.
"I'm not going to say we're going to have someone else in a different union title do that work because that would be a contract violation," Fairchild said. "It might be there won't be as many tulips planted."
CMS said Friday that layoff notices also are going out for nearly 500 employees at Vienna and Valley View, both of which Gov. George Ryan has said he wants to close to save money. Fairchild would say only that the layoff warnings have not yet been sent to the union.
Under Ryan's budget proposal for fiscal 2003, both facilities are to close shortly after July 1 in any case.
Also Friday, the Department of Revenue notified AFSCME that it would lay off 29 employees sometime after April 30. That includes 20 people in Springfield.
In Ryan's budget plan, Revenue was going to lose 150 jobs after July 1, but initially hoped to do most of that by not filling vacancies. However, the agency was ordered by Ryan's budget office to speed up the cuts, according to spokesman Mike Klemens.
"This is an acceleration of the reductions in the budget," Klemens said. "They are primarily support positions.''
The Department of Public Aid said it was cutting 25 positions sometime after April 29, with six of those jobs in Sangamon County.
For the week, the number of layoff warnings issued by state agencies is 926. In addition to Corrections, Revenue and Public Aid, jobs are being cut in the Department of Human Services and the Department of Children and Family Services.
Ryan's budget plan calls for more than 3,000 layoffs, but they weren't supposed to start until after July 1, the start of the fiscal year. However, the governor has cited continued financial deterioration and AFSCME's refusal to agree to contract concessions as reasons for speeding up the process.
The union continues to call for taxes to be hiked on cigarettes and gambling proceeds as a way to make up the budget shortfall.
In a related development Friday, the Ryan administration suffered another setback in its myriad legal disputes with AFSCME over layoffs and furloughs. The state Labor Relations Board determined that a union complaint of unfair labor practices, because the state didn't bargain in good faith over the mandatory furlough program, has enough merit for a hearing.
A date for the hearing hasn't been scheduled.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Most top state officials decline raises

Governor using his to bargain with union

By ADRIANA COLINDRES
STATE CAPITOL BUREAU
30 March 2002

Five of Illinois' six elected constitutional officers say the state budget crisis is prompting them to turn down pay raises slated to take effect in July.
The sixth, Gov. George Ryan, said through a spokesman that he is willing to give up his raise if the largest state employees' union agrees to return to the bargaining table and accept a wage freeze.
That won't happen, said Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees. Members of the union, which represents 45,000 state government workers, will get a 3.75 percent cost-of-living increase as part of their four-year contract with the state.
"Governor Ryan knows full well that we will not reopen our contract," Bayer said Friday. "So what he's really saying is he will not give up his pay raise."
Ryan spokesman Ray Serati said the governor, who has already ordered his employees to take an unpaid furlough day, feels he can't ask workers under his control to give up pay hikes unless AFSCME does the same thing.
"We are trying to balance the budget," Serati said.
The governor, other constitutional officers, legislators and judges are to receive 3.8 percent cost-of-living increases July 1. The amounts of the raises range from about $2,000 for senators and representatives to about $6,000 for Supreme Court justices.
If Ryan keeps the raise, his salary will rise from $150,691 to $156,417.
Lt. Gov. Corinne Wood announced in January - during her gubernatorial campaign - that she was returning a 3.3 percent cost-of-living pay raise that took effect in July 2001. The salary increase totaled about $3,700.
Wood also is turning down the upcoming 3.8 percent increase, worth about $4,400, spokeswoman Jennifer Battle said.
Wood wants to "help out in any way she can," Battle said. "She realizes the state probably needs it more than she does."
Karen Craven, a spokeswoman for Comptroller Dan Hynes, said anyone who refuses to accept the cost-of-living increase will have to write a check to the state because the comptroller's office isn't authorized to change the payroll.
Hynes, Attorney General Jim Ryan, Secretary of State Jesse White and Treasurer Judy Baar Topinka also are declining to pocket the 3.8 percent pay hike because of the state's fiscal condition, their spokespeople said.
"It just isn't really appropriate to be accepting a raise when others are losing their jobs in state government," said White spokesman Randy Nehrt.
"She doesn't think she should take any increase right now," said Topinka spokeswoman Carolyn Barry Frost, who added that the move is "just her own personal decision," not an attempt to set an example for others.
State Sen. Larry Bomke, R-Springfield, said he'll turn down his pay raise because of the state's bleak finances. State Reps. Gwenn Klingler and Raymond Poe, both Springfield Republicans, couldn't be reached for comment Friday about whether they intend to accept the extra money.
Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.
 

State rues inmate missed 3 kids' funeral

By Amy E. Nevala
Tribune staff reporter
Published March 30, 2002

The decision to deny an imprisoned Chicago man a funeral visit for his three children who died in an alleged arson was called "regrettable and unacceptable" Friday by the Illinois Department of Corrections.

Family members tried to arrange a visitation for Frank Cruz, 26, who is serving 5 years in a southern Illinois prison on a weapons charge, after smoke and flames killed his children and gutted their Little Village home early on March 22.

But administrators denied permission when relatives arrived late to pay for Cruz's transport and security fees, said Department of Corrections spokesman Sergio Molina.

If prisoners are not considered dangerous and their families can pay for transportation and guards, they are often granted funeral leave when a loved one dies, Molina said.

He said a lack of flexibility by administrators prohibited Cruz a chance to say goodbye to his children--daughters Sammantha, 3, and Erica, 7, and son Franky, 8.

On Tuesday, two days before the children's funeral, Cruz's sister Cynthia and three other sisters drove six hours from Chicago to Big Muddy Correctional Center with the required $720 money order, only to arrive two hours after administrative offices closed.

"No one was there to take their money, and as far as we're concerned, that's regrettable and unacceptable," said Molina. "We need to look at a different policy so we can be somewhat compassionate in these instances."

"They told us there was nothing we could do," Cynthia Cruz said, about the sisters' effort to arrange for her brother to view his children's bodies.

She said she was was allowed to visit her brother that day, an event that ordinarily requires advance permission.

She said when she told him he would not be able to attend the visitation, he lowered his head and cried.

He called her cell phone during the funeral service Thursday morning and listened for 20 minutes to the mass.

"When they said the children's names, I could hear him crying," she said.

With 43,000 men and women in Illinois prisons, the challenge of arranging funeral visits arises "at least every week," said Molina.

"Convicted felons have family members who die just like everyone else, and it's a tough thing to deal with," he said.

Prison officials review each funeral leave request. Approval is often granted for in-state funeral visitation of a prisoner's children, siblings, parents or grandparents, Molina said.

"As long as the inmate is in good standing and we can get money from families to pay for security officers, then they are going to go," he said. "It happens more often than not."

The prisoner cannot attend the public funeral for security reasons but instead has a private visitation, he said.

"[Cruz] met the criteria, and he would have attended. In retrospect, he should have attended," Molina said. "We somehow should have accommodated this family and set up this visit."

Frank Cruz learned of his children's death from television news reports, his sister said, describing his reaction.

"He started kicking the doors for guards, saying `Those are my kids, those are my kids,'" she said. "He told me, `Man, I didn't care how big those flames were, I would have got them."

His daughter Erica died of burns in Cook County Hospital last Saturday night, a day after firefighters crawled into her second-story bedroom, searched through black smoke and carried her limp body out the window.

Sammantha and Franky died from carbon monoxide poisoning March 22, the Cook County medical examiner's office said.

Authorities allege that Harold Phillips, 27, who lived a block north of the Ramos family but did not know them, flicked a cigarette lighter in a trash can near their back porch after arguing with a roommate. Police said Phillips has a history of starting fires in the neighborhood.

Phillips is being held without bond in Cook County Jail. He faces three counts of first-degree murder and one count of aggravated arson, said a spokeswoman with the state's attorney's office. A hearing is set for April 19.

Frank Cruz, who has worked as a janitor, was imprisoned in September. He had been arrested near his Little Village neighborhood while standing in the street with a gun and shouting gang slogans, according to police reports.

He had been convicted the previous year for beating a man and was on probation at the time.

Though estranged from the children's mother, Elzy Ramos, following the 1998 birth of Sammantha, Cruz remained a caring and devoted father, his sister said.

Outings to the park and zoo were common, she said, and his son, Franky, wrote to him in prison with progress reports about schoolwork.

"He loved those kids," she said. "He told Elzy to get a job, and he would stay home with them."

State hits DHS with 418 layoffs

Job cuts pushed up from summer to late April

By DOUG FINKE
STATE CAPITOL BUREAU
29 March 2002

It was the Department of Human Services that fell under the budget ax Thursday, as more than 400 state mental health workers learned they will lose their jobs in the next few weeks.
DHS notified the American Federation of State, County and Municipal Employees that it intends to lay off 418 AFSCME members working in mental health jobs around the state. A series of letters to the union indicate the layoffs could occur anytime after April 27.
More than 80 percent of the job cuts are coming at three facilities: the Zeller Mental Health Center in Peoria, the Singer Mental Health Center in Rockford and the Elgin Mental Health Center in Elgin. Zeller will lose 151 jobs, while Elgin will lose 154 and Singer 41.
The layoffs come as no surprise, although they are sooner than was anticipated. In his budget speech in February, Gov. George Ryan said he wanted to close Zeller because of a declining patient population. The facility has only 93 funded beds, and as few as 60 have been occupied.
At the time, the state anticipated closing the facility in early September, with 50 layoffs by June 30 and the rest after July 1, the start of a new fiscal year.
However, Ryan has said layoffs have to be speeded up because the states financial condition continues to deteriorate and because AFSCME has blocked other efforts to save money, such as a mandatory furlough program and privatization of prison food service.
DHS spokesman Tom Green said Thursday that even with the layoffs, Zeller will remain open until September, although patients gradually will be moved elsewhere. About 90 jobs remain at Zeller even after the round of layoffs.
Rep. David Leitch, R-Peoria, said he and other Peoria lawmakers were hoping to talk to Ryan next week about trying to save the facility.
"I think we still have a lot of unanswered questions that we need to have addressed very, very soon," Leitch said.
AFSCME Council 31 executive director Henry Bayer called the latest layoffs an "outrage" and said the union may go to court to stop them. The union and others won a preliminary injunction Wednesday against the downsizing of Lincoln Developmental Center.
"Heres the governor saying he doesnt like to lay people off, and every day hes adding to the number of casualties," Bayer said. "He seems to be dismantling state government without any input from the state legislature. Maybe since the voters were planning to lay him off, hes going to lay off everyone before he goes."
AFSCME has complained that Ryan is trying to solve the states budget problems on the backs of unionized state employees. In addition to furloughs and job cuts, Ryan wants AFSCME to forego a 3.75 percent pay raise scheduled for July 1.
Ryan said again Thursday that he will give up his own scheduled 3.8 percent raise, but only if AFSCME agrees to a wage freeze. Bayer said the union will not reopen its contract.
Ryan previously announced he was closing a portion of both the Elgin and Singer mental health centers, resulting in the loss of 195 jobs. However, DHS notified the union that it was cutting another 72 jobs at facilities throughout the state.
Among those cuts are five clerical jobs at Springfield DHS offices and six jobs in Jacksonville through the office of developmental disabilities. Other jobs will be eliminated at facilities in Alton, Chester and suburban Chicago.
Adriana Colindres contributed to this report. Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Ryan says he would forfeit raise if union does

By Christi Parsons
Tribune staff reporter
Published March 29, 2002

SPRINGFIELD -- Urging thousands of rank-and-file state workers to forfeit their pay raises in the coming year, Gov. George Ryan on Thursday offered to lead by example and give up the 3.8 percent pay hike he and his Cabinet are guaranteed by law.
But members of the largest union representing state workers, noting the governor's $150,000 annual salary, said they weren't ready to go along.
"He's in a much better position to forgo his pay increase than someone who makes $25,000 a year and supports a family on one income," said Henry Bayer, executive director of the American Federation of State, County and Municipal Employees, which represents 45,000 state employees. "He makes four times our average salary. And he lives in housing provided by the state."
Ryan said he doesn't understand why the union won't talk about forgoing pay raises, which he said is necessary to save jobs.
"I do not understand why AFSCME refuses to negotiate on these reasonable alternatives to thousands of permanent layoffs," Ryan said. "We could save jobs, and this process could be a lot less painful."
The exchange Thursday was the latest chapter in the battle between state workers and the governor, who has been leaning on employees to help close a state budget deficit of around $1 billion.
Ryan has been insisting the union workers agree to allow privatization of some state services and to take an unpaid one-day furlough.
The governor also wants the union to give up the 3.75 percent pay raise state workers are supposed to receive in the budget year beginning July 1.
But Ryan's latest move was little more than a theatrical one.
The governor said Thursday that not only would he and his Cabinet consider giving up their pay raises if they reach an agreement with the union, but he would also freeze the salaries of the nearly 10,000 non-union employees who report to him.
Administration sources said the governor's office hasn't calculated the total amount that would be saved, but they agree it wouldn't amount to much.
"It's a good faith offer," said Dennis Culloton, the governor's spokesman. "It takes off the table any argument for not negotiating. Now there's no excuse. You can't say, `I'm not going to negotiate away our pay raises for next year because the governor and his staff are getting their pay raises.'"
But some of those same employees got outsized raises a little over a year ago, some amounting to $15,000 a year. Increases averaging 12 percent went to almost every top member of the Ryan administration. At the time, Ryan argued the state couldn't attract top-notch agency directors making $125,000 a year in other states if Illinois only offered them $90,000.
"There is no belt-tightening at the top," said Bayer.
But Culloton said that was beside the point.
"AFSCME can bring up all sorts of red herrings," he said. "They can point to all sorts of different-colored fish all across the state. The point is, they are not dealing with the budget realities we are dealing with."

Copyright © 2002, Chicago Tribune

RYAN RAISES POSSIBILITY OF CLOSING MORE PRISONS

BY RICHARD GOLDSTEIN
THE SOUTHERN
Wed Mar 27 2002

SPRINGFIELD -- Gov. George H. Ryan's administration is considering closing more prisons than the two it already has said it would.
Sergio Molina, chief of communications for the Illinois Department of Corrections, said Wednesday the idea is being contemplated to help close the state's $1 billion state budget shortfall.
"We could look at additional facility closures over and above what we've already announced," Molina said. "That's not off the table."
Ryan's press secretary, Dennis Culloton, confirmed that more prisons could face closure. "We're certainly continuing to look at other cuts we can make."
Molina said he had no idea where in the state closures might be recommended. He also didn't know when the agency would decide whether to close more facilities. But he added, "with every day that passes it becomes increasingly more important to make that decision soon because it costs money every day to operate."
The Vienna Correctional Center and the Illinois Youth Center at Valley View, a youth detention facility, are slated to close under Ryan's fiscal 2003 budget.
"We've got difficult decisions to make just because of the crisis we find ourselves in," Molina said.
Brian Fairchild, also a spokesman for the Illinois Department of Corrections, has said that 357 jobs would be eliminated by the closure of Vienna. He said keeping the prison open would cost the state $30.3 million in the next fiscal year.
The prison is scheduled to close July 31, said Henry Bayer, executive director of the Illinois branch of the American Federation of State, County and Municipal Employees.
Molina's disclosure came in response to complaints from prison workers that cuts already announced in the prison system would weaken security.
Gathering at the Illinois Capitol at the behest of their union, prison workers said those cuts would have a ripple effect throughout the system.
Bill Warhausen, a leisure activity specialist at Menard Correctional Center in Chester, said existing problems would only get worse as overcrowding increases. He said inmates have knocked eight toilets off walls and a prison administrator was attacked in the past few weeks.
Closing Vienna and Valley View would make all prisons more dangerous, said Bob Parks, a food service supervisor at the Taylorville Correctional Center. He said inmates at his prison are already shuffled in and out of a cafeteria after 15-minute meals.
Jeff Jackson, a guard at the Vienna Correctional Center and president of the local union, said it would be dangerous for inmates themselves to leave the minimum-security prison. He said most are incarcerated for theft or drug crimes. "A lot of people are there because they can't survive a higher security level."
Molina said a drop of 2,624 inmates in the Department of Corrections in the past year to 42,703 prisoners as of Wednesday means the closures will not make the system more dangerous.
Molina said there are about 1,100 prisoners in Vienna and 150 in Valley View. He said the Lawrence Correctional Center in Sumner, which has only 110 of its 2,200 beds filled, and the Illinois Youth Center at Kewanee, which is half empty, will accommodate the movement caused by the closings. In addition, he said a maximum-security prison meant to house 1,600 prisoners on a temporary basis is set to open in Statesville.
Bayer said layoff notices have gone out to the state's 119 leisure activity specialists who organize recreational activities for inmates.
Warhausen, who said May 14 would be his last day under the layoff notice, displayed a painting by a former prisoner, featuring geese taking flight in swamplands. Warhausen said prisoners need organized activities to relieve stress, which in turn prevents violence.
 

State prison workers: layoffs could jeopardize security

By John O'Connor
Associated Press Writer
Published March 27, 2002,

SPRINGFIELD -- State prison workers worried that Gov. George Ryans layoffs will jeopardize prison security, told reporters at a state Capitol news conference that Illinois prisons are already overloaded with inmates and understaffed.
"It makes me so damned mad that he thinks we can still manage our facilities with less staff," said officer Terry Woods of Hill Correctional Center in Galesburg, which has twice as many inmates as it was designed for.
Ryans administration has started sending layoff notices to 120 correctional leisure activities specialists, who organize and supervise inmates free time, from basketball to painting.
Theyre among 1,000 layoffs Ryan ordered to help solve a billion-dollar budget deficit that he says has grown worse while the prison workers union, the American Federation of State, County and Municipal Employees, has refused to cooperate.
"Safety and security are the top priority of the Corrections department," Ryan spokesman Dennis Culloton said. "Theyll do whatevers necessary to keep the facilities safe and secure and provide essential services to those inmates."
The Associated Press reported last year that Corrections spent about $25 million on overtime through June 30 - a 51 percent increase from 1998 - and in late 2000, had 430 fewer correctional officers and other security personnel than the Legislature had authorized.
AFSCME says it has cooperated, asking for an arbitrator to decide how to fairly carry out Ryans proposal for a one-day unpaid furlough and only going to court to stop a plan to privatize prison cafeterias because it would be against the law.
AFSCME executive director Henry Bayer said he doesnt know whether leisure time activities will be shut down.
Lila Wagner, a Lincoln Correctional Center leisure time worker, says the activities are used as a reward for good prisoner behavior. Take them away and you take away a creative outlet and a way to let off steam, she said.
"Without these programs, you put security at risk and you put inmates at risk of doing something non-productive and negative," she said.
Copyright © 2002, Chicago Tribune

To consider before voting

By Art Wilson
27 March 2002

artwilson.jpg

It looks like George Ryan is continuing right along with his plan to execute thousands of state jobs, no matter how many years these employees have been in service. And for what reasons does he justifiy these actions? To help balance his budget.
By going after the positions he has chosen, he is doing nothing more than pinching pennies, because that's what it will amount to after he' places some of these people into their new jobs that will offer lower pay and perhaps a lot more travel expense and distance to and from work, The union is not planning on reopening its contract so Mr.
Ryan can start butchering it, like he has many of the things that have crossed his desk that might have been worth keeping intact.
Mr. Ryan is on his way out. I know it, you know it, and he has known it ever since the day he turned his back on the citizens of Illinois. That was the day he turned to leave the podium after being sworn in as governor.
It's going to be interesting to see what Mr. Ryan will be doing after his term is over. Will he still be vacationing? I mean visiting in Cuba.
I am sure that whatever he does, he won't be strapped for cash like the thousands of employees whose lifestyles have been changed with the flick of his pen.
I am certain that Mr. Ryan will soon see the type of damage that he has inflicted on this state and to his own political party when the elections occur and the people speak their minds.
It's time that we let the leaders know that we write the check and that they work for us, not we for them.
When you vote this year, vote as if your future depended on it, as if your family's livelihood might be in jeopardy, Several years ago, you voted for who you believed in and what you believed in, and he turned out to be a wolf in sheep's clothing.
As a matter of fact, there was a entire pack of wolves, and we don't need another fairy-tale governor.

Government files lawsuit against state workers union

By DOUG FINKE
STATE CAPITOL BUREAU
27 March 2002

The Ryan administration is suing state governments largest employee union to keep the union from suing the state over impending employee layoffs.

The state also filed an unfair labor practices charge against Council 31 of the American Federation of State, County and Municipal Employees to stop the unions lawsuit over unpaid furlough days for state workers.

"Weve got to do what we can to combat their litigation strategies, which have stymied our efforts to balance the budget," Dennis Culloton, spokesman for Gov. George Ryan, said Tuesday.

Henry Bayer, executive director of Council 31, blasted the lawsuit.

"They are so flush with money they can afford to hire an outside law firm and file a frivolous lawsuit," Bayer said. "They are asking a judge to order that if we want to contest a layoff, we couldnt go to court. The governor has been spending too much time in Cuba. They dont have access to the courts there. Fortunately, we do in the United States.

The states lawsuit, which will be heard in court next week, argues that AFSCMEs contract does not allow the union to litigate a personnel decision. It says the contract requires binding arbitration if the two sides cannot agree on a labor dispute. Culloton said the union has twice gone to court to stop cost-cutting measures Ryan has tried to impose.

"Their argument has been we are not following the collective bargaining agreement," Culloton said. "They are ignoring the contract in their own way."

The administration wanted to privatize food service operations at the Department of Corrections to save an estimated $15 million a year, but AFSCME filed suit, arguing that food service is a security operation and that privatization violates state law prohibiting the use of outside contractors for security services.

A judge put the privatization on hold until the dispute can be resolved in court. In addition, the Illinois House overwhelmingly passed a bill that would block the privatization.

AFSCME also filed suit to stop the administrations temporary layoffs of state workers as a way of unilaterally imposing unpaid furloughs. Ryan had asked all state workers to take an unpaid furlough day to save an estimated $8 million, but AFSCME wanted to make the furloughs voluntary.

Both sides were unable to compromise after several negotiating sessions, so the Ryan administration said it would use temporary layoffs to achieve the same end as furloughs. The difference is temporary layoffs do not have to be negotiated with the union.

AFSCME won a temporary restraining order to block the layoffs until further hearings are held.

This week, Ryan started the process of laying off 1,000 workers by the end of May. His budget plan for the fiscal year that starts July 1 calls for 3,800 layoffs, but the layoffs had to begin sooner because of the states deteriorating financial condition and because AFSCME will not agree to a salary freeze, Ryan said. AFSCME members are scheduled to get a 3.75 percent pay raise July 1.

AFSCME says a wage freeze sets a bad precedent and will save the state only about $63 million. And furloughing union employees will save $7 million, the union says, while theres a $1 billion budget hole to fill.

"Whats he going to do with the other $930 million?" Bayer asked.

The state has to save money wherever it can, Culloton countered.

"That is some real money, and its money we could save relatively painlessly, instead of layoffs and closing facilities," he said.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

AFSCME won't get tax-hike wish

OUR OPINION
State Journal Register
27 March 2002

LAST WEEK, by an overwhelming 61 percent majority, voters in Springfield Public School District 186 rejected a requested - and school officials would say - badly needed property tax hike to assist the cash-strapped school system.
This week Gov. George Ryan began issuing layoff notices to state employees because the state, like the school district, is in a precarious financial position.
ON MARCH 19, voters in District 186 sent a clear message to the public school system. That message, as has been specifically and articulately stated in numerous letters to this newspaper over the past few days, is that the Springfield public schools need to live within their means. They need to tighten their belt and do the best job possible, rather than asking for more money via a property tax hike.
The people have spoken. But who are these people? Many of those who make up the 61 percent "no" vote have to be state employees, given this town's demographics.
So what is their, or at least their union's, philosophy on solving the state's fiscal dilemma? Well, it seems to fly in the face of the apparent anti-tax sentiment expressed during last week's school referendum.
GOV. RYAN HAS asked the state's largest union - the American Federation of State, County and Municipal Employees - to consider several options aimed at avoiding thousands of state worker layoffs. Ryan has said that a temporary wage freeze and taking a day off without pay would save the state enough cash to negate many layoffs.
Yet Ryan's plea for the union to return to the bargaining table has been met with the following response: "Hell, no! Raise taxes to save our jobs."
IT'S FUNNY HOW your perspective changes when it is your own bacon in the fire.
AFSCME's leadership says that by raising taxes on riverboats, raising taxes on cigarettes, and making some business and estate tax changes, the state could solve its budget problem and avoid layoffs.
The school district could have avoided layoffs and program cuts too if taxes were raised. But that wasn't in the cards, and it doesn't appear to be in the cards for the state either. Even if Ryan wanted to raises taxes to solve the problem, he would have a tough time convincing the General Assembly to do so, especially in an election year.
Believe it or not, most of the state's taxpayers are not state workers, and are not clamoring for higher taxes, even on riverboats, rich people and smokers.
IN THE BUSINESS world, when things go sour, workers either get laid off or give concessions or sometimes both. Henry Bayer, AFSCME Council 31 executive director, may have some good ideas about riverboats paying more. He certainly is correct when he says that Ryan's management-level workers need to share in any sacrifice.
But he is wrong in refusing any and all negotiations that might allow thousands of state workers to stay on the job instead of joining the unemployment line.
We realize that unions are not normally in the business of giving up salary or benefits they have fought to win. But the state's current situation is not typical either. Union state employees fared well during the boom years. But the boom has turned to bust.
AFSCME has a choice. It can keep the contract conditions or it can keep its members employed. It likely can't do both.
 

Budget crisis forces DCFS layoffs

By DOUG FINKE
STATE CAPITOL BUREAU
27 March 2002

 The Department of Children and Family Services will begin laying off workers this spring because of the ever-worsening state budget crisis.
A plan to cut nearly 200 jobs after July 1 by not filling vacancies has been shelved in favor of dropping workers during the current fiscal year, DCFS Director Jess McDonald said Tuesday.
"We have been spared any layoffs up until now," McDonald said after appearing before the Senate Appropriations Committee.
"Regrettably, because of the states financial circumstances, we will be going to layoffs.
DCFS is cutting 80 positions in the current budget.
The plan was to eliminate up to 188 positions from the budget that begins July 1 and to meet the goal by not filling vacancies as they occur.
However, McDonald said financial pressures are forcing him to save the money from job cuts as quickly as possible, which means layoffs.
He said the employees union, the American Federation of State, County and Municipal Employees, will be notified this week of the cuts.
Henry Bayer, executive director of AFSCME Council 31, said the action underscores "the fiasco that the Ryan budget is."
"Here we have an agency that has repaired itself over the years and is doing a good job of seeing to the needs of abused and neglected children," Bayer said. "Now the governor is going to slash services.
Bayer renewed his call for the state to block a pending $250 million tax break for corporations and to raise taxes on cigarettes and riverboat gambling proceeds.
Most of the job cuts will take place in Cook County, McDonald said.
However, he assured senators that even with the cuts, caseloads will not balloon for the remaining employees.
Each caseworker averages 14 cases now, McDonald said. That will rise to 17 in Cook County after the layoffs. Accrediting agencies require that caseloads not exceed 20 per person, and DCFS has promised courts that it will not assign more than 25 cases to each worker.
The state this week is notifying the first of 1,000 state workers who will lose their jobs by the end of May. That includes 133 workers at the Department of Human Services and 120 at the Department of Corrections.
Another 400 employees of the Lincoln Developmental Center will be laid off as the facility is downsized.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

CONFRONTATIONAL POLITICS MAKE EVERYONE LOSER

The Southern Illinoian
Tue Mar 26 2002

What we feared most is now happening in the eyeball-to- eyeball confrontation between Gov. George Ryan and American Federation of State, County and Municipal Employees chief Henry Bayer.
Everyone is a loser.
Real people face the prospect of losing real jobs, and are headed for hardship -- and we don't understand why it has to be that way.
The real story here is not two boys in a school yard arguing about whose daddy can whip the other one. It is about leadership.
Rather than engage in fixing the budget blame, our state's executive and legislative leaders should be fixing the budget problem. Thoughtful debate -- not confrontation -- is needed.
Why does George Ryan still insist he's closing Vienna Correctional Center, even though both major-party candidates say they'll reopen the prison if elected? In hard dollars, closing VCC will cost more in employee job-dislocation assistance than any savings that could possibly be realized once tuition, recall rights, the inevitable retraining, unemployment compensation, extended health benefits and other factors are considered.
Why does the governor have $117 million in new "member initiative" projects -- more pork -- in his fiscal year 2003 budget? That's more than twice the amount he says the state would save if AFSCME members agreed to give up their 3.75 percent pay increase due July 1?
And why can't AFSCME offer the governor an olive branch and accept one-day, no-pay furloughs for its members?
Further, we don't understand why Speaker of the House Mike Madigan, D-Chicago, and Senate President James Philip, R-Wood Dale, are sitting on their hands -- rather than giving their respective chambers an inkling as to how they feel about de-linking the state's budget from the federal economic stimulus package.
We don't know why higher taxes on riverboat casinos can't be openly argued, or a cigarette tax increase carefully considered and a compromise reached.
Gov. Ryan's staff is now saying his plan to cut 3,800 jobs must be enlarged. The bulk of those workers are set to come from Corrections and Human Services -- critical employers in Southern Illinois.
We say such radical actions as closing VCC and putting over 4,000 men and women out of work can wait until the legislature has an opportunity to work with the governor and address the budget problem.

 

Layoff notices go out

1,000 state workers to go by end of May

By DEAN OLSEN
STATE CAPITOL BUREAU
26 Mar 2002

Frustrated by a lack of concessions from state employees, Gov. George Ryan on Monday set in motion an accelerated plan to permanently lay off 1,000 workers in April and May.
The first 260 employees, who work for the departments of Corrections and Human Services, could lose their jobs in 10 days.
The rest of the 1,000 workers, the bulk of whom also work for those two departments, will receive notices in coming weeks so the layoffs can be effective in April and May, Budget Director Steve Schnorf said.
Schnorf said Ryan hadn't planned to start laying off workers - a total of about 3,000 workers are scheduled to be laid off statewide, counting the 1,000 included in Monday's announcement - until July.
But newer and bleaker state revenue forecasts, combined with the negative effect on the state of a recently passed federal economic stimulus package, prompted the governor to start the process sooner, Schnorf said.
Schnorf said Monday that he had asked Corrections and Human Services to prepare plans for even more downsizing and facility closings than Ryan proposed in his state budget speech Feb. 20. The governor then announced plans to close two prisons and a mental health center and downsize other facilities in the new fiscal year, which begins July 1.
Because of the continuing slide in state revenues, Schnorf said it's likely that the governor's original plan to eliminate 3,800 state jobs (including the 3,000 layoffs), out of a total of about 65,000 jobs statewide will have to be expanded.
Ryan faulted leaders of AFSCME for refusing to reopen the union's contract in light of the state's budget crunch. He also criticized the union for failing to support his proposal for one-day, unpaid furloughs for all employees under his control and for court actions that have blocked privatization of food services in state prisons.
But Roberta Lynch, deputy director of Chicago-based AFSCME Council 31, said the governor's lack of leadership and "irresponsibility" in dealing with the budget shortfall is "almost incomprehensible."
As AFSCME has done in the past, Lynch suggested a cigarette tax increase, higher taxes on riverboat casinos and legislation to reduce the federal economic package's damage to Illinois' revenues. Ryan has said those steps would require the cooperation of legislators, cooperation that hasn't materialized so far.
Schnorf said Ryan still believes all layoffs could be avoided if AFSCME agreed to a one-year pay freeze and if the legislature authorized an early-retirement package for state workers. About 45,000 AFSCME workers are scheduled to receive a 3.75 percent pay raise July 1.
Schnorf said it's possible that employees laid off before any early retirement deal is reached could be included in such a plan.
Lynch said the union won't reopen its contract. She said AFSCME's members overwhelmingly support the union's stand.
Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.
 

The Endorsements Game


Rich Miller
25 March 2002

Rod Blagojevich was attacked several times in the spring primary campaign's final days, and most of the hits can be traced back to the last Illinois AFL-CIO president's race.
Margaret Blackshere, of the Illinois Federation of Teachers, became the first woman ever elected to that high office in 2000. It wasn't an easy campaign, despite the fact that Blackshere had been the secretary-treasurer - and sec/treasurers had almost always moved up when presidents retired.
A large number of unions, including AFSCME and the Operating Engineers Local 150, worked against her. The low point of the campaign was when the opposition accused Blackshere's running mate of supplying scab workers during a bitter Decatur strike.
Bill Dugan, the boss of Local 150, led the opposition campaign. Dugan is from the trades end of the labor spectrum, and the tradesmen worry a lot that professional unions, like the teachers, will take over the labor movement and leave the blue collar guys behind. Plus, Blackshere was just too liberal for the famously conservative Dugan - who once invited presidential candidate and right-wing pundit Pat Buchanan to march in a parade with him.
One of the knocks on Dugan is that sometimes he seems to treasure gun rights more than worker rights, and he has chafed mightily as the national AFL-CIO has supported gun control candidates throughout the country.
Fast-forward to last December. Blackshere unexpectedly muscled through the Rod Blagojevich endorsement at an executive committee meeting, weeks before a larger meeting where the endorsements were supposed to be addressed. The move infuriated Dugan, partly because the 2000 election wounds had yet to fully heal. But Blackshere had also broken with protocol and denied unions their say in the matter, and, perhaps more importantly, Blago is a liberal, totally anti-gun congressman.
Almost immediately, Dugan endorsed Vallas in retaliation. Vallas is also anti-gun, but that didn't seem to matter. Vallas, eager for any union support at all, welcomed Dugan with open arms, then for weeks avoided talking about guns in public.
One of Dugan's top Local 150 lieutenants also happens to lobby for the National Rifle Association in Springfield. The NRA, along with the Illinois State Rifle Association, soon began issuing regular proclamations about Blagojevich's "radical" anti-gun record, and all but ignoring Vallas' similar position on the issue.
It wasn't long before the NRA turned up a bill that Blagojevich had sponsored when he was in the Illinois House. The measure would have increased the Firearms Owner Identification card fee from $5 every five years to $500. Vallas eventually tested the issue in a poll and discovered that it killed Blago downstate. You probably know the story already. There were the dueling press conferences, Blagojevich tried to spin his way out of it by saying he really proposed a $25 fee, finally, last-minute negative TV ads attacking Blago for the fee increase which were encouraged by Dugan and the NRA.
Meanwhile, Dugan was burning up the phone lines at Local 150 headquarters, cajoling other union leaders into ignoring the AFL's endorsement. But he wasn't having a ton of success with just the gun issue, and Vallas had given several unions fits when he ran the Chicago Public Schools. Plus, the AFL endorsement is a serious thing. Blackshere had placed the organization's full power behind Blagojevich, hundreds of thousands of dollars were funneled into his campaign. Union honchos were naturally loathe to make any waves.
But then Dugan heard an interesting rumor. It seemed that Blagojevich had used non-union labor to remodel his house. The rumor was checked, passed along to the Vallas folks and then shopped around to media outlets.
After his story broke, Dugan blasted a fax to trade union leaders throughout the state, slamming Blagojevich for taking union money but refusing to use union laborers, and saying that any union member who voted for Blago should leave his union card at home.
A huge effort was made to separate just one union local from Blagojevich, on the theory it would make the story even bigger and possibly even create a chain reaction of defections.
None of it worked. No unions defected, and Blagojevich performed better than he hoped downstate, where the gun and non-union worker issues supposedly resonated the most.
Dugan also endorsed Jim Ryan in the Republican gubernatorial primary. He is expected to go all-out for Ryan this fall. But for now, at least, he's all alone.
-30-
Rich Miller also publishes Capitol Fax, a daily political newsletter. He can be reached at www.capitolfax.com

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MADIGAN: BUDGET SITUATION IS DIRE

BY ANTHONY MAN
SPRINGFIELD BUREAU
[Thu Mar 21 2002]

SPRINGFIELD -- In his strongest public comments so far on the state's budget crisis, House Speaker Michael J. Madigan, D-Chicago, said the situation seems worse than it was in the early 1990s when the state slashed expenses and laid off employees.
"We're looking at a very bleak budget picture, very bleak," Madigan told reporters. "The combination of revenue loss in the current budget year, plus reductions in estimated receipts for the next budget year, (make) ... a very difficult situation. And it's going to require some very difficult decision-making by everybody that's involved."
Madigan would not get into details about what he thinks should be done to solve the problem. Asked about tax increases or other ways to bring more money into the state treasury, Madigan said endorsing any ideas right now would allow critics time to mobilize.
"For someone to step out and say X, Y or Z about any of that just encourages others to come up with political responses," Madigan said. "This is a dire budget situation. And if people are interested in fashioning a decent budget, they ought to avoid politicizing the thing at the beginning and to the end. It's not as if we have easy solutions. There are no easy solutions."
The state budget has been hemorrhaging money for months. When crafting the budget for the fiscal year that runs through June 30, the Legislature and governor used the most optimistic possible revenue estimates. Meanwhile, the recession began and things got worse after the Sept. 11 terrorist attacks.
When the economy falters and fewer people have jobs, the state gets less income tax money. When people buy less, the state does not get as much sales tax money.
Various political forces have gone back and forth since late last year about methods to fix the problem. So far, Gov. George H. Ryan has cut spending on hospitals, ordered budget trimming throughout state government, and threatened layoffs of state workers if their union does not make contract concessions. For the next fiscal year, he has threatened elimination of as many as 5,000 jobs and the closure of state institutions including the Vienna Correctional Center.
The House, Senate and governor are supposed to agree on a budget by May 31 for the new fiscal year, which begins July 1.
The governor's office considers Madigan's comments positive.
"We welcome increased participation from members of the General Assembly. We are facing some very difficult financial times. We all need to work together now," said spokeswoman Wanda Taylor.
Madigan was not entirely supportive. While saying it would be a mistake to offer proposals because opponents would take shots at them, the speaker said there were problems with two proposals Ryan offered last month:
Early retirement for state employees might not be a good idea. Madigan said such a plan might add so much to the unfunded liability of the pension systems, which taxpayers are ultimately responsible for, that it might be fiscally irresponsible.
"I think there'd be difficulty in passing the bill," he said. "I think people would be concerned about the cost to the pension systems."
Tax amnesty encourages tax cheats, he said. The Ryan administration estimates that allowing people to come clean on delinquent taxes could bring in a shot of desperately needed cash.
Madigan said he has problems with relieving cheaters of their obligation to pay penalties.
"That's what it did in '84, and that's what it would do again. People ought to pay their taxes." Madigan said House Democrats would "participate at the staff level," in discussions, but he has "a bias against the tax amnesty bill."
anthony.man@lee.net / 217-782-4043
 

Job cuts at Corrections imminent

By DOUG FINKE
STATE CAPITOL BUREAU
21 March 2002

About 120 state Department of Corrections employees will get permanent layoff notices in the next two weeks in another round of budget-cutting by the Ryan administration.

In addition, formal layoff notices will be sent to nearly 400 workers at the Lincoln Developmental Center as part of a downsizing of that facility.

And state agency officials will meet this week with the Department of Central Management Services to identify thousands of other jobs to be eliminated this spring.

The state is required to give its employees 10 days' notice that their jobs are being eliminated. However, CMS spokeswoman Judy Pardonnet said Wednesday it will take until the end of April for all of the current round of layoffs to take effect. The Corrections layoffs will affect workers involved in recreation activities.

Nearly 400 LDC employees got preliminary notices at the end of February that their jobs were in jeopardy as part of Ryan's effort to cut the number of developmentally disabled residents at the facility in Lincoln from 248 to 100. The notice being sent by CMS next week is the final stage before the jobs are actually eliminated.

In his budget speech last month, Ryan said the state will have to drop 3,800 jobs, with 3,000 coming from layoffs. State agencies this week will begin identifying the positions to be cut during talks with CMS. That will enable CMS to start the lengthy process of formally eliminating the jobs.

Last week, Ryan's budget director, Steve Schnorf, warned Council 31 of the American Federation of State, County and Municipal Employees that up to 1,000 workers would start losing their jobs May 1 unless the union agreed to revise its contract and forgo a scheduled pay increase. The union leadership said no.

"We don't see any evidence that they are actually interested in talking to us," said Mike Newman, associate director of Council 31. "We've given them all kinds of suggestions on ways to resolve the revenue crisis. They just don't appear interested."

AFSCME has suggested repealing business tax breaks and approving legislation to keep Illinois from losing a projected $250 million from the federal economic stimulus package recently signed into law by President Bush.

In fact, Ryan and the four legislative leaders discussed ideas for raising revenue during a meeting in the governor's office Wednesday, but there was no support among the Republican leaders.

Asked whether he was ruling out tax or fee increases, House GOP Leader Lee Daniels, R-Elmhurst, flatly said, "I am."

Senate President James "Pate" Philip, R-Wood Dale, said he doesn't think anything that can be construed as a tax increase will pass this spring.

"I don't think tax increases are doable," Philip said. "It's an election year. I don't think that will be popular with anybody."

While permanent layoffs are looming, a state appeals court has sided with AFSCME and ruled the Ryan administration cannot implement temporary layoffs to save money.

The Fifth District Appellate Court in Mount Vernon upheld a lower court decision that blocks temporary layoffs until a determination is made as to whether they violate state labor contracts. A hearing is scheduled for May 3.

Last fall, Ryan said he wanted all state workers to take an unpaid furlough day to help save an estimated $8 million. AFSCME said its contract called for furloughs to be collectively bargained.

When AFSCME and the state could not agree on a furlough plan, the administration said it would impose temporary layoffs instead. Like furloughs, temporary layoffs require state workers to take an unpaid day off and then return to work. Unlike furloughs, temporary layoffs are not subject to collective bargaining, state officials insist.

AFSCME disagrees and obtained the temporary restraining order.

Pardonnet said the state is considering whether to appeal to the Illinois Supreme Court.

Newman argued that the $8 million savings is "practically irrelevant" to the state's estimated $1 billion budget problem.

"Whether the furlough happens or not is not relevant to the fiscal crisis," Newman said.

Pardonnet responded: "We don't consider it nothing. We consider it one step toward fewer layoffs."

The union representing 1,500 Illinois State Police officers also won a court order halting furloughs in that agency. Troopers Lodge 41 of the Fraternal Order of Police obtained a temporary restraining order from a judge in Belleville.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

PRISON CONCERNS PUSH VOTE IN VIENNA

BY JEFF SMYTH
THE SOUTHERN
[Wed Mar 20 2002]

SOUTHERN ILLINOIS -- As light, persistent rains fell over Southern Illinois, many in Johnson County entered the polling booths on a mission: Support the gubernatorial candidate they believe will save the Vienna Correctional Center.
"I voted for Jim Ryan because he says he'll reopen the prison," said Steve Bellamy, a 29-year veteran of the Illinois Department of Corrections from Vienna. "Ryan came to Vienna personally and told us so. It made an impression on me."
Gov. George Ryan announced in January he'd close the prison as part of a budget-saving move. It has cast a cloud of uncertainty over this community that is so dependent on the 300-plus jobs that stand to be lost.
Republicans outnumber Democrats 2-1 here, but that hasn't stopped some from crossing party lines with the belief that backing the right candidate is a vote for the region's survival.
"I'm a Republican but voted for a Democrat," Pat Stapleton, who has worked at nearby Shawnee Correctional Center for 14 years, said. "It seems like the Democrats are more willing to help us out now."
Johnson County Republic Party Chairman Bob Pippins said Gov. Ryan did the party no favors in this area by targeting the Vienna prison for closure.
"People are pretty down," Pippins said from GOP headquarters on the Vienna square. "They feel like the system isn't being fair to them."
John Vaughn, a Vienna voter who works at the Dixon Springs Boot Camp, agreed, "The negative publicity is going to hurt the Republican Party."
But when the final results were tallied Johnson County voters remained consistent to party loyalties with 64 percent voted Republican.
Turnout there was down from years past with 39 percent of the county's 7,437 registered participating. Johnson County Clerk Robin Whitehead-Harper said normal turnout is about 45 percent. Still she was pleased.
"That's pretty good. It's better than we thought it would be," Whitehead-Harper said.
Elsewhere across Southern Illinois, voter turnout varied:
Only 18.5 percent of Jackson County voters took part in the primary. Four years ago 24 percent of the county's 34,000 voters cast ballots.
In Perry County, where voters also decided two new school funding initiatives, the 39 percent turnout was a record for a primary.
Williamson County polls drew 25 percent of eligible voters -- deemed average for a primary.
Back in Johnson County, voters put their faith in gubernatorial candidates Ryan, who garnered 61 percent of the vote, and Democrat Rod Blagojevich, with 57 percent of the votes.
Both men announced they would reopen the Vienna prison should the governor close it. Ryan attended a town pep rally in January to proclaim his support. Blagojevich announced his intention through a press release.
"Ryan is the only chance we're got to keep the prison open," Betty Bellamy of Vienna said.
"This is not a Republican or Democrat issue," Larry McGill of Vienna said. "Ryan and Blagojevich announced they'll reopen the prison. It's not a partisan issue. It's an economic development issue."

 

FORMER PRISON GUARD GETS PROBATION

BY CHRISTI MATHIS
THE SOUTHERN
[Sun Mar 17 2002]

PINCKNEYVILLE -- A former Pinckneyville Correctional Center guard pleaded guilty in Perry County Circuit Court late last week to attempted solicitation of murder and was sentenced to three years' probation.
Steven Reitz, 24, of 13125 Sarah Road in Coulterville, had faced solicitation of murder for hire and solicitation of murder charges.
Authorities said Reitz in October 2001 approached inmate David Roberson and told him he wanted to hire someone to kill Clyde Burns.
Burns was the boyfriend of Reitz's mother and had been arrested shortly before for misdemeanor domestic battery against the woman in Randolph County.
An undercover officer and Reitz had two telephone conversations regarding the plan, and a meeting was arranged at a Nashville hotel. Reitz paid $50 for room rent and expenses to the undercover officer. He said then that he did not want Burns killed but wanted him beaten up and his legs broken, according to evidence.
The arrangements were for the man to perform the job as a favor for Roberson. Reitz then promised to supply cocaine and other drugs to Roberson and to make his prison stay more comfortable.
State's Attorney David Stanton said state police and Judge Jim Campanella agreed that the amended charge was the appropriate disposition.
"When you take everything into consideration, I think this is the best you can do," Stanton said.
Reitz has been dismissed from his position with the prison. He could have received up to 15 years in prison but instead got 36 months probation. He was also ordered to pay $500 total fines and costs.
Burns, 46, has reconciled with Reitz's mother but he is still set for a bench trial March 21 in Randolph County on the charge of domestic battery. Burns is free on $200 bond while awaiting trial on the misdemeanor charge.
Mathis5@hcis.net / 1-618-357-8391

Decatur prison warden removed after campaign e-mail

BY JOHN O'CONNOR
ASSOCIATED PRESS SPRINGFIELD
15 March 2002

Decatur Correctional Center's warden was removed from her post Thursday after using her state computer to round up campaign workers, an aide to Gov, George Ryan said, Dennis Culloton said the warden, Billie Grepr, sent an cmail to state employees earlier this week soliciting assistance for Attorney general Jim Ryan's campaign for governor, The Illinois State Police is investigating the incident, Culloton said, He could not say what that would entail, Corrections Director Donald Snyder found out about the e-mail 'Thursday and reported the incident and thp disciplinary action to Gov, Ryan, "It's inappropriate conduct, it's wrong, we don't have a tolerance for it," Culloton said.
"We have given numerous reminders to the administration (employces) that they're free to work on political campaigns but it must be on their own time
and their own dime," Neither Culloton nor Corrections spokesman Brian Fairchild could say whethcr thc e-mail solicited help for a Specific event before Tuesday's primary election, No one has been fired, said Fairchild, who would not identify thc employee other than to say it was "an administrator in the warden'S office." "There was discipline imposed today to this individual, and that discipline will involve demotion and loss of some pay, Fairchild said. The e-mail went to four or five employees, said Fairchild, who added that the solicitor admitted sending the e-mail when confronted
,Jim Ryan is seeking the GOP nomination for governor against Lt, Gov, Corinne Wood and state Sen, Patrick O'Malley.
Ryan's campaign spokesman, Dan Curry, said no one working for Ryan in thE Decatur area was aware of the e-mail or Greer.
"Our campaign has made it
abundantly clear to volunteers that the law prohibits the use of state resources for campaign  purposes, Curry said, One of the state's larger departments, with more than 18,000 employees,  Corrections is a hotbed of political activity, Snydpr himself was forced to reimburse the state for more than $7,600 in late 2000 after news reports that he regularly used the agency's taxpayer-funed airplane to attend political fund-raisers,

State workers to get letters from governor about possible layoffs

By DOUG FINKE
STATE CAPITOL BUREAU
15 March 2002

Thousands of state employees are getting letters from the Ryan administration telling them that layoffs will start soon unless their union representatives agree to contract concessions by the end of the month.
The letters, which were distributed Thursday, are the same as those sent to leaders of the American Federation of State, County and Municipal Employees warning that 1,000 layoffs will take place starting May 1 if the union doesnt make concessions on wage increases set to take place this summer.
The letters apparently are an attempt by the state to have rank-and-file union members pressure their leaders into making job-saving contract concessions.
"Ordinarily, when they deliver a communication to me, they dont give it to all of the members," said Henry Bayer, executive director of AFSCMEs Council 31. "It is an attempt by their public relations campaign to put the blame for what the governor is doing on the union."
Bayer, whose union represents 45,000 state workers, said the tactic wont work.
"They are operating under the misconception that our members want to open the contract and we are standing in the way," Bayer said. "They will find out our members dont want to open the contract. We have no intention of reopening the contract."
Ryan spokesman Dennis Culloton said the letters were distributed so union members "understand the stakes and the level of the problem with the state budget." "Were simply trying to keep them informed about what I would describe as extraordinary circumstances," he said.
Ryans budget director, Steve Schnorf, sent the letter to Bayer Wednesday. It said that layoffs are imminent if the union doesnt make wage and benefit concessions by March 25.
Schnorf complained that the union has blocked other efforts to cut personnel costs, such as privatizing food service operations at prisons and imposing unpaid furlough days on union workers.
The state wants AFSCME to open its four-year labor contract to forgo a 3.75 percent pay raise scheduled for July 1 and to make health insurance concessions.
But if the union agrees, Bayer said, it will set a precedent that the state can negate labor agreements any time it wants money for other programs.
"What is to prevent them from doing it again next year? Where does it stop?" Bayer said.
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

AFSCME gets deadline to avoid layoffs

By DOUG FINKE
STATE CAPITOL BUREAU
14 March 2002

Hundreds of additional state government jobs will be cut this spring unless the American Federation of State, County and Municipal Employees agrees to contract changes by March 25, Gov. George Ryan's administration warned Wednesday.

In a letter to Council 31 of the largest state employee union, Ryan's budget director, Steve Schnorf, said that without concessions, layoff plans will have to be accelerated.

"Unless a comprehensive compromise solution can be developed within the next 10 days, we will have no choice but to begin the process for the permanent layoff of state employees to be effective starting May 1," Schnorf wrote.

The state wants AFSCME to reopen its four-year contract to negotiate money-saving changes in wages and benefits. In a separate letter, Nancy Pittman, chief labor relations counsel for the Department of Central Management Services, asked the union to "negotiate a change in the rates of pay and benefits effective July 1, 2002, and July 1, 2003" and to discuss other contract changes.

AFSCME members are scheduled to get a 3.75 percent pay raise July 1 and 4 percent more on July 1, 2003. State officials earlier suggested delaying this summer's raise but have not previously said the 2003 raise might also be in jeopardy.

Schnorf said it is more imperative than ever for the union to agree to concessions because revenues are even lower this year than previously estimated. Moreover, the federal economic stimulus package approved last week contains business tax breaks that will cost the state an additional $250 million.

The union has blocked other administration efforts to reduce personnel costs, such as imposing furlough days and privatizing food-service operations, Schnorf complained. Now, without concessions by the union, he wrote, "we do not believe it is possible to continue . . . without a further reduction in work force and still maintain a balanced budget."

Council 31 executive director Henry Bayer said the union will not renegotiate the contract.

"Members have no interest in opening the contract," Bayer said. "I think it is outrageous that this administration would suggest that people who earn on average $35,000 forgo a pay raise to give a $250 million tax break to the largest corporations in the state."

Bayer called on the General Assembly to pass legislation to prevent the state from losing the $250 million because of the federal stimulus package. Bayer also said the state has rejected AFSCME's suggestions for dealing with the financial problems, including repealing other business tax breaks and raising taxes on riverboat gambling proceeds.

"They are determined to make state employees pay for the state fiscal crisis," Bayer said. "It's been their intention since day one to lay off workers."

Ryan already has announced plans to close some state prisons and mental health facilities. Bayer said those alone could cost more than 1,700 jobs. In addition, Ryan's proposed budget for the fiscal year beginning July 1 calls for 3,000 layoffs as part of a net reduction of 3,800 state jobs.

However, Bureau of the Budget spokeswoman Julie Dutton said Wednesday that number also will increase if the union doesn't agree to concessions soon.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

Says corrections workers face many hardships

David Killebrew
Winchester,IL
13 March 2002

To the Editor:
I have been reading and hearing about the State of lllinois' budget crisis for several weeks now. I am a state employee so I hear this argued from - many Perspectives.
I have been publicly silent about this so far because I believe that opinions are like noses ... etc. But your Feb. 27 editorial compelled me to write. I will, unlike the author of your editorial, sign my name to this.
Members of AFSCME would not take a cut in pay if a private vendor were to provide meals and / or services in Illinois Correctional Facilities. They would become unemployed.
To those who have no knowledge of how a correctional facility operates, it might make sense to hire a Private Vendor to provide services for its operation.
To those of us who work there five days a week, the idea is ridiculous.
Let me explain. In order to become a correctional officer, one must first make application to the Department of Correcnons. The applicant then takes a battery of tests: a written test, physical agility test and interview.
If the candidate passes this testing he or she is placed on a waiting list until a county the applicant wants has a vacancy for a correctional officer.
After being hired, the individual is now called a cadet and is sent to the training academy for six weeks of training. This is an in-residence course, and no one is allowed to leave the grounds during the training. Cadets are trained in such subjects as use of firearms and management of people. Cadets are also trained in the rights of prisoners.
Cadets are treated as an inmate might be treated in an impact incarceration program (boot camp). The premise is that they will more fully realize what it is like to be incarcerated.
Once the cadet has graduated from the training academy, which is not guaranteed, he or she reports to the facility for assignment. The probationary officers Will not see another weekend or holiday off for a long time. They will most likely be assigned to the 3-11 shift and given Tuesdays and Wednesdays off. For a single person this presents no problem. For a family Person, this means that you will not spend weekends off with your family, and you Will probably be at work on such holidays as the Fourth of July, Thanksgiving and Cbristmas.
After finishing six weeks of training, the probationary officer will receive one week of additional training at the facility in order to become acquainted with the daily oPeration of the facility and receive any specific training. Additionally the officer will be scheduled for a one, weeklong continuing training session each year.
The new officer will start off at Step One on the pay scale and become stepped out a step seven in
five years. At the end of this five years, the officer will most likely be working the 3-11 or 11-7
shift, with possibly Friday-Saturday or Sunday-Monday off I have gone into great detail to explain
the hardship placed on employees and their families in order to be a public servant We have the
highest divorce rate of any profession that I know. We have many employees who have problems
that are associated with stress.
We are subject to a random drug tests on any given day. We have procedural work rules and rules
of conduct that the average state employee or private sector employee are not subjected to.
Yet, we do this job day-in and day-out because, for the most part, we like what we do and derive
some satisfaction from keeping the public safe.
Says corrections workers face many hardships
We are recognized nationally as the leader in corrections. We are the best at what we do. All
other states model their corrections-training programs on how we do it in Illinois!
I know of several private corrections providers. Corrections Corporation of America and
Wackerihut are just two examples. I have never visited one of their facilities, but I do know that
they don't provide the same security that we do.
Oh, I forgot to mention - fingerprinting and F.B.I.. background checks for the employees. What
private company that provides security could even begin to provide the training, the security
checks or have a record as good as the Illinois Department of Corrections? None I say!
I have read about bid requirements in the commentary section of your newspaper that would
require the vendor to charge the state accordingly. I thought the emphasis was on cost savings.
What private company could offer the state cost savings and still provide adequate training to
their employees? None.
I read about cost savings by combined purchasing of food and materials. I wonder if the local
businesses that provide food, services, supplies and materials would like this? I think not!
From a business point of view, combined purchasing does make sense for some items. The agency
could, for example' buy all of its paper clips or Xerox paper from one supp1ier. This would save
some money initially, but then the savings would be lost in transportation costs to get the supplies
to the agency locations across the state.
Does anyone know what Illinois Correctional Industries is? No? Then I will tell you to the best of
my limited ability, because this is not my area of expertise.
The Illinois Correctional Industries provides goods to all agencies in the , state and to
not-for-profit organizations ( Illinois. Basically, anything that any agency needs is produced by
inmate labor and provided to state agencies. I Examples are office furniture, floor wax, It
cleansers, garbage bags. o Commodities such as milk, bread and meat are also produced by inmate
labor. What private vendor in the United States ) could provide these things cheaper?
Additionally, there are the foods and  commodities that are provided by the  U.S. to tire state.
These are free items In such as cheese and meat Again, which  vendor can provide these items
cheaper?
I am continually amazed that everyone continues to attack the Illinois Department of
Corrections. People, we  are working people just like you with a  job to do. We do the best that
we can with what we are given, and for the most part, we don't complain.I know that corrections has one of the .
largest budgets of the agencies, if not the  single largest We don't put convicted offenders into Illinois correctional facilities. Judges do.
We are charged with keeping them incarcerated in a safe, secure and clean environment. I wish, for once, that someone would write something about the Illinois Department of Revenue or any other agency and talk about privatizing their programs or services (sorry Department of Revenue) and leave us alone to do the job that the citizens of Illinois expect us to do.


Against private prison food service

Linda Irlam
Correctional Food Service Supervisor 
Pittsfield Work Camp
11 March 2002

In the Feb. 27 editorial, the Journal-Courier editor termed the men and women employed as prison food service supervisors as "hysterical" because, for some bizarre reason, they don't want to lose their jobs. The editors logIc was that , the State of Illinois should sell itself to the lowest bidder because a "for profit" private company can provide prison food service for less money;
then obviously, it makes economical sense to do so.  Surely, a company could come into a prison, work alongside as many as 50 inmates, provide service, make a profit and still save Illinois money. Surely, the well-qualified type of person willing to work in a prison for minimum wage around the most manipulative, unscrupulous, dangerous criminals in the United States would not provide a security risk. As the Journal Courier so figuratively pointed out, that would be nothing but a "red herring." With such a well thought-out blueprint for budgetary responsibility, why stop there, one might ask. Even more inspiring is the overwhelming possibility of privatizing all local and state law enforcement. For example, if someone comes in with an attractive bid to take over the responsibilities of the Illinois State Police, only someone manipulated by puppet masters would pass on such an obvious gold mine.
And why shouldn't the State of Illinois taxpayers insist on privatizing the expensive, burdensome court system? One could only guess what these measures would do to help alleviate Gov.
George Ryan and the Journal Courier's budgetary concerns.
The editor's logic is that, if someone is willing to do your job for less than you are, then you are, obviously, being overpaid.
If someone came in and wanted to be an editor for the Jacksonville Journal-Courier and would do the job for say half as much, then the editors would be overpaid. This would, of course, mean a drop in the Jacksonville Journal-Courier's subscription rate and the savings would be passed on to the readers - just as the State of lllinois does for its taxpayers. Would the potential applicants be truly qualified? In the same Feb. 27 editorial,
the author referred to a legally bargained, compromised contract signed last year between Gov. Ryan and the State of lllinois. and the correctional food service supervisors and officers as "extorted" taxpayer money.
The definition of extortion is someone being forced to make an agreement with a gun held to their head, so to speak.
Interestingly enough, these same lowly correctional food service supervisors do get the overpaid opportunity to monitor lllinois' finest, who literally have held a gun to a person's head.
By the way, it is illegal for correctional employees to strike , because of the unique security I responsibilities.
You can't hand out jobs such as governor, newspaper editor or prison food service supervisor to just anyone. He or she must be low-paid, but well-deserving.
I thank the House of Representatives for having the guts to stand up for what is right, and, hopefully, the State Senate will do the same.
The writer of the Feb. 27 editorial didn't have the guts to sign his name.

Double whammy for state budget

Economic stimulus plan will cut revenue; judge blocks layoffs to start next week

By DOUG FINKE
STATE CAPITOL BUREAU
09 March 2002

Illinois got a double dose of bad economic news Friday with passage of a federal economic stimulus package that will cost the state an estimated $250 million and a judge's ruling that Gov. George Ryan cannot begin temporary layoffs of union workers next week.
A circuit judge in St. Clair County issued a temporary restraining order preventing the state from proceeding with the layoff plan that was supposed to start Friday. The state plans to appeal.
Meanwhile, Congress passed an economic stimulus package that will cost state government $250 million in the next fiscal year alone. Local governments - primarily schools - will lose an additional $150 million next year, Ryan's office said.
"We now have a much more difficult situation," said Ryan spokesman Dennis Culloton.
Just two weeks ago, the governor proposed a bare-bones state budget that called for slashing nearly 5,000 jobs; closing two prisons and two mental health centers; cutting Medicaid payments to doctors, nursing homes and hospitals; and increasing co-payments for services like state-subsidized day care. With the action by Congress Friday, even that austerity budget has a $250 million hole in it.
"At this point, we're not able to say what we will do," Culloton said. "If any members of the General Assembly have been hesitant to be involved (in budget-cutting talks), we hope they see the problem now."
The state is losing money because the stimulus package allows businesses to accelerate the depreciation allowance they can take on new equipment. That changes the amount of income businesses report to the federal government. Illinois' corporate income tax is based on income that companies report to the federal government, just as the personal income tax is based on income reported on federal tax returns.
Local governments that get money from the personal property replacement tax will also lose an estimated $150 million in the fiscal year that begins July 1. Nearly $80 million of that goes to school districts.
State Department of Revenue spokesman Mike Klemens said it would be possible for lawmakers to change state law so that state corporate income taxes are not tied to federal tax returns.
"It would make it a lot more complicated for both us and the taxpayer, but it could be done,'" he said.
Culloton would not rule out the idea.
"The governor has said he is willing to look at all sorts of proposals as long as they are serious proposals," Culloton said.
While the stimulus package will cost the state, Congress ignored Ryan and other governors who asked for more money to cover the costs of Medicaid, the joint state/federal program that pays for health care for the poor.
Ryan pushed for a $200 million increase for Illinois but got nothing. However, Culloton said the extra money wasn't built into next year's budget plan.
Friday's judicial ruling on temporary layoffs will add to the state's financial woes. The Ryan administration had planned to start temporary layoffs March 15 for the 45,000 members of Council 31 of the American Federation of State, County and Municipal Employees.
The state and union had bargained over a mandatory, one-day furlough program but could not agree. State officials declared the talks at an impasse and said temporary layoffs of the same workers would be used instead. Temporary layoffs work essentially like an unpaid furlough day, only the union and state do not have to negotiate over them.
AFSCME went to court arguing that temporary layoffs are just another name for furloughs and should be subject to collective bargaining. The judge didn't rule on that argument, but said the temporary layoffs should be stopped until further hearings are held May 3.
The Department of Central Management Services, the state's personnel agency, will notify agency directors not to implement layoffs next week. An estimate was not available Friday for the number of workers that faced a temporary layoff March 15.
CMS spokeswoman Melissa Hahn said the state will immediately file an appeal to lift the restraining order.
AFSCME executive director Henry Bayer said the union remains willing to discuss voluntary furloughs.
"There would have been people taking voluntary furlough days by now," he said. "Now the state is not only not realizing any savings, the lawyers are costing them money."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.
 

Senate passes bill to allow sharing of sick leave

FROM STAFF AND WIRE REPORTS
08 MARCH 2002

The Illinois Senate passed a bill Thursday that would allow state employees to transfer unused vacation, sick leave or personal time to spouses who also are state workers.
The legislation calls for the Department of Central Management Services to allow spouses to transfer time off to each other if the recipient has used all of his or her allotted paid leave.
The time could be transferred among spouses within an agency or those employed by different agencies.
Sen. Vince Demuzio, D-Carlinville, sponsored Senate Bill 1710.
"If my spouse is recovering from surgery or a bout with the flu or some sickness of some sort, and I have time ... and I want to be able to share, I ought to be able to do so," he said after the vote.
Demuzio said the practice wouldnt harm the operations of state government because the workers already have earned the time off.
CMS spokeswoman Melissa Hahn Moseley said there is no current state policy to allow spouses to transfer paid leave to each other. She said, however, that employees in agencies under the governor can contribute leave days to a "bank." They and others can then apply to the bank for up to 25 additional days off per year to cover catastrophic illnesses.
She said CMS will develop specific rules for the transfer program if Demuzios bill becomes law.
"We would also want to make sure there are safeguards, so that it is used as it is intended," she said.
The bill passed the Senate, 52-0, and now goes to the House.
Early pensions
Senate President James "Pate" Philip said Thursday he opposes letting local officials start collecting pensions even before they retire, although he introduced a bill to make that possible.
Philip said he thought the bill would make a simple technical change in pension laws. When he realized the true effect, Philip said, he decided to hold the bill in committee.
"It was a request from a local official. It was described to me as a technical change," said the Wood Dale Republican. "Quite frankly, I didnt know thats what it did."
Philip said he actually thinks pension laws should be tightened.
He said some cities have let key employees retire from one job so they can start collecting a pension and then have rehired them in a slightly different job at the same salary.
"Now my members are starting to get a few phone calls on it, and I think the attitude is we ought to pass a bill to prevent it," he said.
DuPage County Treasurer John Novak supports the bill, although Philip said he was not the official who suggested it.
"Heres what it really does: It allows a person to stay in the job they enjoy while receiving the pension to which theyre entitled and getting the salary theyre earning on the job," Novak told the (Arlington Heights) Daily Herald. "Im entitled to both."
The bill would let Novak collect a pension of at least $79,000 a year while drawing his treasurers salary of $99,236, bringing his total compensation to more than $178,000 a year.
Pledge of Allegiance
The Senate Thursday also passed a bill to require public high school students to recite the Pledge of Allegiance every school day.
State law now requires that practice among elementary students but not their older counterparts. Illinois is the only state that splits the policy that way, said Philip, one of the sponsors of the legislation.
The other sponsors of Senate Bill 1634 are Sens. Walter Dudycz, R-Chicago, and Dick Klemm, R-Crystal Lake.
The bill passed, 54-0, and now moves to the House.
 

Unpaid bills hit $1 billion

First time for state, says Hynes; maybe not, says governors staff

By DOUG FINKE
STATE CAPITOL BUREAU
08 March 2002

 

The backlog of state bills awaiting payment by the comptroller's office has topped $1 billion for the first time ever, Comptroller Dan Hynes' office said Thursday.
However, Gov. George Ryan's budget office questioned whether a dubious new budget milestone has been reached. An administrator there said the backlog may well have been just as bad or worse in the early 1990s, when the state last went through a severe budget crisis.
Hynes spokeswoman Karen Craven said the office believes this is the first time state government has had $1 billion worth of bills waiting to be paid. Prior to this, the biggest backlog was $923 million in April 1993, she said.
"What normally would have taken three days (to pay) now takes close to a month," Craven said. "We just hold onto it. We can't cut a check for it."
She added that the backlog does not include state agencies' bills that haven't yet been forwarded to the comptroller's office for payment.
Bills for services are sent to individual agencies first for processing. The agencies then send them to the comptroller's office, which writes the checks. However, the comptroller's office cannot pay until there is enough money in state accounts to cover the checks.
For the first time in years, municipalities also will see delays in their state payments. Cities are entitled to a share of state income tax revenue, and the comptroller's office normally issues monthly checks. Now, though, cities are owed $87 million that the comptroller's office cannot pay because of insufficient funds, Craven said.
"Right now, local governments are standing in line like everyone else," she said.
So far, general state aid payments to public schools have not been delayed. However, money for so-called categorical programs that pay for services such as bilingual education and transportation are seeing delays. The State Board of Education has $95 million in backlogged bills for categorical reimbursements and to pay expenses at the board's central office.
Other agencies with substantial backlogs are the Department of Public Aid, $333 million in outstanding bills; the Department of Human Services, $137 million; community colleges, $91 million; and the University of Illinois, $64.9 million.
Public Aid bills are mostly for Medicaid payments to health-care providers for treating the poor. The DHS backlog is primarily for grant programs and payments to social service providers, Craven said.
Ryan's budget office acknowledges that payments are slow but questions whether the current backlog is the worst in state history. Deputy budget director Mike Colsch said that in the early 1990s, the state took 110 days to pay Medicaid bills.
"That backlog would be well over $1 billion," he said.
Colsch also said the budget office of Ryan, a Republican, has tried repeatedly and unsuccessfully to get details from the office of Hynes, a Democrat, about what bills are stacking up and why.
"It's kind of hard to opine on the validity of that (backlog) if they don't share information," Colsch said. "If they want to talk about bills, they should share the information."
Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Madigan takes care of his pals

State Journal Register
Opinion
7 March 2002

THIS WEEK the largest state employee union - AFSCME - announced it is suing Gov. George Ryan in an attempt to block him from forcing about 60,000 state workers to take an unpaid day off.
Also this week, a coalition of advocacy groups who represent people with disabilities announced that it has "rejected" Gov. Ryan's proposed fiscal 2003 budget, which would significantly cut funding for agencies serving the mentally and physically disabled.
And just a couple of weeks ago, AFSCME, lots of advocacy groups, and, yes, even we were highly critical of the fact that the governor, his Cabinet, the other constitutional officers and state lawmakers will be getting a 3.8 percent wage hike at a time when thousands of state employees may lose their jobs and state services may be severely curtailed.
Such criticism can be expected when economic times are tough. But the governor certainly shouldn't be the sole recipient.

SPEAKER OF THE House Michael Madigan, D-Chicago, has built an incredible base of power in the Statehouse, and thanks to his powerful position in state government and the Democratic Party, he seldom takes a back seat to the governor or any other state officials.
So it should come as no surprise that Madigan has led the way in padding his buddies' and his loyal troops' wallets despite the state's precarious financial situation.
Madigan managed to dole out more than $424,000 in tax money in the form of bonuses to his staff in the last several months - much of it well after the serious budget problems had taken center stage.
The powerful speaker also used his muscle to move a bill in the House this year that will give his friend Cook County Sheriff Mike Sheahan (one guess on his party affiliation - it starts with a 'D') a big pay hike and bonus as well - a $12,000 pay increase and $36,000 in "back pay." Madigan's help was needed because Sheahan's real bosses had told him "no."
It pays - literally - to have friends in high places.

POSSIBLY THE most infuriating abuse by Madigan was to pay almost $130,000 in bonuses to 13 people, primarily for their work on redrawing the state legislative district map. Madigan's spokesman defended the bonuses, noting that these people spent many overtime hours on the project and that it conceivably could have cost even more to farm the work out to consultants.
Of course, the job could also be done in a matter of minutes by a computer if it were simply a matter of dividing the state into districts that equally and fairly represent the state's residents. But that's not what the map is about.
It's about keeping the Democrats in power for the next 10 years until another census is taken and another map is drawn and, presumably, other political minions are rewarded with tax dollars.

MADIGAN AND his party like to paint themselves as champions for the common man. Madigan did an excellent job championing a huge bonus ($35,000) for his chief of staff, Tim Mapes, who made more than $165,000 last year.
Meanwhile, about 3,800 state employees are wondering how to pay the bills when they're laid off, and human service agencies are trying to figure out how to make cuts without destroying the lives of the elderly, sick, poor and disabled.
Now that the bonus checks are cut, maybe Madigan can get back to helping the common man.
 

Bill would require inmates to help fund commissaries


By STATE CAPITOL BUREAU
7 May 2002

State prison inmates would help pay to keep their commissaries open under a bill approved Wednesday by the Senate Executive Committee.

Sponsored by Sen. Frank Watson, R-Greenville, Senate Bill 1982 allows the Department of Corrections to charge more for products it sells to inmates at the commissaries.

Any extra money made will be applied to the cost of operating the prison stores, Watson said.

"Obviously, there is a budget situation in which privatization effort is trying to save money," Watson said. "Im looking at this as a means by which to raise some additional funds to (hopefully) not privatize the commissary positions."

Currently, Corrections can only mark up a product by 3 percent to 10 percent over its cost. Watsons bill allows Corrections to add another 10 percent on top of that. Now, all profit made from the sales is deposited into an inmate benefit fund.

Prison commissaries sell toiletries, snacks and even TVs and clothing. Watson said it costs about $2 million a year to run the commissaries, which sold $41 million worth of items last year. If prices were raised another 10 percent, Corrections could clear $4 million annually.

The bill now goes to the full Senate.

Wirtz bill

The Senate Executive Committee also voted to repeal the controversial "Wirtz Bill" that critics said gave near monopoly power to the states liquor distributors.

Sen. Kathy Parker, R-Northbrook, said Senate Bill 2052 will formally eliminate a law declared unconstitutional earlier this year by a federal court.

The law was named after Chicago Blackhawks owner William Wirtz who also owns Dolph&Judge, one of the largest liquor distributorships in the country. Wirtz hired a small army of lobbyists and pushed through a bill making it extremely difficult for liquor manufacturers to change distributors.

Soon after the bill was signed into law, liquor distributors hiked the price of their products.

Union Seeks Support

Art Wilson
06 March 2002

artwilson.jpg

The employees are attempting to keep the governor from occupying their positions within the Illinois Department of Corrections. 'These state warriors are fighting to keep their jobs and their lives intact.
They also want to maintain the integrity that is established through experienced workers, rather than allow it to be breached by those who would not be paid enough to have any concern for security, custody and control over the incarcerated.
The Journal-Courier's aerial assault came like a bomb out of the sky, totally unsuspected by the union forces and their supports, who had only weeks ago given praise for the paper's coverage of their plight.The impact stunned the correctional workers, but did little damage to their cause.
Whoever this nameless pilot was flew like he or she was on a
training mission rather than a seek-and-destroy sortie, because all the fly-by did was to alert ilie union-led collation of where the Journal-Courier's allegiance really lies.
This was not the Journal Courier's fight, but it has chosen to provide support for the govcrnor's assault against the union, thereby making it very clear how the paper feels about the community's need for stateworker dollars and the right for these state employees to keep their jobs.
Mr. Ryan has lost his sense of direction - not that he ever started out in the right direction in the first place. He has led Illinois into a desert, and now he wants to start killing Illinoisans off by cutting their employment, like one would cut their throats, causing a slow and painful death of financial disaster and family stress that would eventually affect the economy of this city and other surrounding areas, as well.
The untrained individual who piloted this commentary did not have his or her data correct to successfully complete the mission. The editorial said that the union has been screaming about having to take a cut in pay if private vendors are hired.
You must have been in a tailspin when you wrote that comment.Tne union is fighting to save the jobs of thousands of employees while, at the same time, attempting to fend off the governor's attempt to get an state workers to give up a day of pay.
These are two different issues, geared at providing the same result, which is to replace misused funds spent by Mr.
Ryan's administration.
Representatives like Jim Watson, R-Jacksonville, and Art Tenhouse, R- Liberty, are supporting the unions because
unions represent the people, and the people are who our politicians are supposed to be supporting. Anyone who thinks differently will find out at the polls.
It is not that individuals are unable to be trained in the ways of security, but rather, the low pay and lack of experience that privatization would bring would create a situation in which secu.
rity might be breached or even totally ignored.That is too high a risk factor to even think of taking the chance of privatizing any part of the Department of Corrections.
We continue to ask for the support of the people and our representatives, for whom we are grateful. We Marines have a motto, "semper ti," which is Latin for always faithful, and We will remember who supports us.
Jacksonville resident Art Wilson's views appear each Wednesday.

 

Mike's little House of horrors

Chicago Tribune
March 4, 2002

No, he hasn't yet turned the venerable state Capitol into an AFSCME union hall. Nor has he knocked on the door of Lincoln's tomb to hustle a donation to his daughter's campaign for attorney general. But in other ways arrogant and small, House Speaker Michael "That's my money!" Madigan is making a mockery of campaign ethics and ripping off the poor, sick and disadvantaged taxpayers whom his Democrats in the legislature pretend to protect.
Some of Madigan's cheesy antics involve not taking, but giving. Among the beneficiaries of his largesse with other people's money is Cook County Sheriff Michael Sheahan. Just weeks before the state primary election in a certain race for attorney general, Madigan is pushing a bill to give Sheahan, who oversees a little army of Democratic precinct workers, a fat raise.
The ingenious stroke of this Madigan shenanigan is that it would override Cook County's control of its checkbook and force the county to give Sheahan a $36,000 payment--plus $57,000 to three of his aides. Team Madigan's cover story: The money is overdue compensation for running the Cook County Boot Camp.
When none of Madigan's flunkies is around to take notes, Democratic pols in Springfield, Chicago and across Illinois are complaining loudly of having their arms twisted by Madigan. This is a politician so brassy that he telephones his cronies to ask for their wedding invitation lists, the better to squeeze their friends and families to fatten Lisa Madigan's campaign coffers.
Which brings us to Mike Madigan's most egregious stunt: giving members of his staff taxpayer-funded bonuses of more than $424,000--part of it doled out even as money for Medicaid and other programs for the poor was being slashed to balance the state's bleeding budget.
And why were those people programs targeted? Because Mike Madigan repeatedly refused to help Gov. George Ryan pass legislation to spread the cuts more fairly. While cynically forcing the state's budget to be balanced on the backs of the poor, Madigan also rejected Ryan's proposal to cut pork-barrel spending with the immortal words: "That's my money! You can't touch it!"
Springfield hands are having a har-de-har-har over the almost one-third of the bonus money that Madigan gave to employees who helped draw the decennial map of legislative districts. At a time of genuine hardship for his state, Madigan used tax dollars to reward workers whose creative mapping helped lock in his power.
And power is the coin of Madigan's realm. His primary election strategy is transparent: Demand support for his daughter, and his legislative candidates, from those who owe him favors--or simply fear him. His calculation is that loyal Democrats aren't smart enough to think for themselves, and will vote as they're told.
Among those assumed to be stupid: state workers represented by AFSCME. The union's bosses aren't barking about Madigan's bonuses, even as the cash-strapped state seeks to lay off AFSCME members. Hey, who's more important to AFSCME--Madigan or the dues-paying AFSCME members about to lose their jobs?
But so goes life in Mike Madigan's little House of horrors: the shabby Sheahan stunt, the muscle on Lisa Madigan's behalf, the costly redistricting bonuses, the refusal to responsibly budget, the shameful betrayal of poor citizens who rely on the state for their health and welfare.
Oh, yes--and the sleazy pork payouts from Madigan's crew to groups with political clout. Of course that's something the next attorney general can investigate--whoever he or she may be.

 

O'MALLEY: JIM RYAN PUT 'PERFUME ON A PIG' IN BRIBE SCANDAL

MARK DURAN SAMUELS
The Southern
Fri Mar 01 2002

In a debate Tuesday night sponsored by the Illinois Radio Network, GOP gubernatorial hopeful Attorney General JIM RYAN said an early retirement plan for state employees would be a good way to painlessly cut payroll costs.
Palos Park state Sen. PAT O'MALLEY immediately creamed Ryan and his idea. O'Malley said the people who would use it are the very patronage workers now bloating the state payroll. He asked, "Are we supposed to offer them a free ticket out through an early retirement package?"
Good question, Pat. I've been wondering the same thing for months. In fact, I've been predicting it.
O'Malley also hammered Ryan for looking the other way in the licenses-for-bribes scandal emanating from current Gov. GEORGE RYAN's years as Illinois secretary of state.
"Jim Ryan's assertion that the licenses-for-bribes scandal is a federal investigation outside the purview of his office is bunk," O'Malley said. O'Malley pointed out that information about the bribes initially came to the attorney general's office, not federal investigators.
"He has tried to put some perfume on a pig," O'Malley said, soaring to new rhetorical heights. "The greatest corruption in the state took place on his watch, and he didn't lift a finger."
I'll be in Chicago next Thursday in the studios of WLS-TV as part of another debate panel quizzing Ryan, O'Malley and Lt. Gov. CORINNE WOOD. E-mail me the questions you'd like answered, and I'll do my best to get you some straight answers.
Perfume on a pig ... you've gotta love O'Malley when he has the wind to his back.
He must be striking a responsive chord; recent polls show O'Malley moving past Wood into second place behind Ryan.
THESE ARE THE DAYS OF OUR LIVES: Du Quoin Mayor JOHN REDNOUR continues to battle a recalcitrant and runaway city council.
First he tried to reappoint MAURICE "BABE" HILL to the police merit board, but no one on the council would even offer a motion. Apparently, feelings are still running high over last April's election-day altercation near Du Quoin's city hall polling place that involved then-council candidate Hill and current Councilwoman ANGIE ROACH's husband, CONRAD ROACH.
Police Chief KEN DEMENT said at the time that Roach wanted Hill to back up his vehicle, and a verbal argument ensued, followed by physical contact. Although considerably longer in the tooth, Hill allegedly hit Roach -- who received stitches for his injuries -- although DeMent said there was a bit of physical contact in both directions.
At the council's last meeting, Rednour tried to appoint retired SIUC cop and world-famous barbecue artist CURTIS JACKSON, rather than Hill -- but still no dice. Da Mayor was told that only two of the three members could be from a single political party. Jackson is a Democrat, as is present member MYRA BOREN. Since the other sitting member, MIKE WILSON, voted in a Democratic primary 13 years ago in 1988, the Roach-led faction says that makes him a Dem, too.
The hirsute-challenged Rednour thinks otherwise. Besides that, he says, selecting a black man (Jackson) to go with a white woman (Boren) and white man (Wilson) would have brought diversity to the panel, and better represented the community.
So Rednour's mad now, and plans to play a little "in your face" basketball by offering the name of former country treasurer CHARLES "CHA" HILL. Hill was elected as a Republican, so there's no problem there -- but he's also "Babe" Hill's son.
I'm reminded of the story told by a governor of Massachusetts about the time President ABRAHAM LINCOLN showed him a long letter from General GEORGE McCLELLAN. McClellan wasn't doing very well leading the Union army, yet the long letter was full of advice as to how Lincoln should run the country.
"What are you going to say in answer to the letter?" asked the governor.
"Nothing," Lincoln replied. "But it makes me think of the man whose horse kicked up and stuck his foot through the stirrup. The man said to the horse, 'If you are going to get on, I will get off.'"
Somehow, I don't think John Rednour plans to get off his horse. Accordingly, the quicker the council figures out who is mayor, the smoother things will run in Du Quoin.
IT DEPENDS WHAT THE DEFINITION OF "IS" IS: In a communication to union members this week, American Federation of State, County and Municipal Employees (AFSCME) officials used the guv's threat to close Vienna Correctional Center as an opportunity to boost mansion-seeker U.S. Rep. ROD BLAGOJEVICH, D-Chicago.
Headlined "One More Reason to Vote for Rod Blagojevich," it touted the "wisdom of the more than 500 delegates to the union's political endorsement conference who voted overwhelmingly to endorse Rod ..." The newsletter went on to say he "has spoken out strongly" against Gov. Ryan's plan to privatize prison dietary and commissary services, and Ryan's plan for AFSCME-member layoffs.
It noted, too, that Blagojevich promises to fire Department of Corrections Director Donald Snyder if he's elected governor.
I quizzed BUDDY MAUPIN, front man for AFSCME in Southern Illinois, about the letter. I told him Blagojevich rival, former Chicago schools CEO PAUL VALLAS, has actually outlined a state budget that won't require furloughs, layoffs or prison closings -- and not just gassed about the crisis.
And any Democrat elected will fire Donnie Boy, I suggested.
Maupin replied, "We believe RB has the best chance of winning in November, the best chance of getting crossover Republican votes, and will run the best-organized campaign." Maupin said the newsletter comment was targeted toward AFSCME's Republican members -- he says in Corrections they are "probably 80 percent" of the membership -- in an effort to get them to cross over into the Democratic primary.
He added Vallas' privatization of 2,000 jobs while heading the Chicago schools would be a "very hard sell" to AFSCME members.
Laborers' International Union is also pushing hard for Blagojevich, so I asked Maupin if he and Laborers' veep EDDIE SMITH had been promised overnight stays in the Executive Mansion by "Hot Rod" if he wins.
Buddy has a sense of humor: "Regarding Eddie Smith and I sleeping in the governor's mansion, I offer the words of a great Democrat, 'I have never had relations with that man.'"
MARK DURAN SAMUELS is opinion editor of The Southern. He welcomes your comments via the e-mail address mark.samuels@thesouthern.com.
 
 

UNION CLAIMS WIN ON PRIVATIZATION

BY RICHARD GOLDSTEIN
SPRINGFIELD BUREAU
[Mon Feb 25 2002]

SPRINGFIELD -- The union fighting the partial privatization of Illinois prisons claimed a victory Monday.
A three-judge panel of the 3rd District Appellate Court in Ottawa refused the state's request to lift a temporary restraining order issued by Judge Lance R. Peterson of the LaSalle County Circuit Court.
Peterson issued the order in a lawsuit filed by the American Federation of State, County and Municipal Employees that seeks to block privatization of food and commissary services at the prisons.
Privatization would cost state prison jobs, but Gov. George H. Ryan said it would save money and help solve the state's budget crisis. Based on a single bid, the Illinois Department of Corrections has estimated that privatization would save $12 million a year for central Illinois prisons alone.
Buddy Maupin, regional director of the American Federation of State, County and Municipal Employees, said he was pleased at the Ottawa court's ruling, but not surprised.
"It was great news," he said. "The law is clear: You can't privatize security functions at prisons, and dietary and commissary are security functions. Hopefully, the governor will modify his position now that this order is in effect."
Henry Bayer, executive director of the Illinois branch of AFSCME, said the ruling shows that privatization of the services will never happen.
"I think it's another nail in the coffin for privatization." Bayer said. "Privatization of dietary and commissary services is not only unwise and illegal, but it is also dangerous."
Ray Serati, Ryan's deputy press secretary, said the ruling would not deter the state.
"We're going to continue to contest the lawsuit," Serati said. "The administration will do what it needs to do to balance the budget despite the obstructionist policies of the AFSCME union."
Jeff Smyth also contributed to this report.

 

Ryan's rhetoric muddies budget

Confusion, 'spin' make it tough to figure out governor's stance

By CHRISTOPHER WILLS
of the Associated Press
February 25, 2002

SPRINGFIELD - Is Gov. George Ryan threatening to veto the entire state budget? Is he proposing an innovative way of funding pensions? Does he feel obligated to stick to deals he has made?

It's hard to tell, at least based on what Ryan has to say.

On these and other important issues, Ryan offers conflicting - or at least confusing - explanations of where he stands.

Misunderstandings between Ryan and reporters shouting questions might account for some of the problem. Attempts to put a certain "spin" on issues accounts for other examples.

But they add up to confusion when Ryan is trying to deliver a firm, clear message about his record and the state's tight budget.

Here's a sampling:


In last week's budget address, the Republican governor said that if lawmakers try spending too much money he will "veto the entire budget." But an hour later, Ryan was asked whether he really would veto the whole thing.
"I don't think I said the entire budget," he responded. "Did I say that? Yeah? Who knows, I may."


Ryan's budget book includes a proposal to borrow billions of dollars and invest the money. The revenue would pay the state's obligation to the teacher retirement fund and possibly generate a little extra.
"Where did you get that? We're not doing that," Ryan said after his speech. "I don't like the idea, either. It's not a proposal that I know of."

The next day, his budget office still was explaining why the proposal was a good idea.


In his speech, Ryan flatly said, "Our schools get more money," and claimed he is keeping a promise to give education at least 51 percent of all new state revenue.
Yet state spending on education would drop $21 million if Ryan's budget is adopted.

Ryan can offer two explanations. One is that schools get more money when you add in federal funds.

The other - the one he favors - is that education and virtually every other state program starts out with a 5 percent reduction in his budget, and then he adds some money back to a few important areas. Education is one of those areas, so Ryan says it gets "more" money than if he had not restored some cuts.


Ryan's budget includes some money left over from last year for unspecified projects in lawmakers' districts. Such "member initiatives" have proven controversial, and Ryan has said he would like to see the money used in other ways. But Ryan did not propose using that money to avoid some of the cuts his budget proposes.
The governor explained that he did not feel free to propose breaking an agreement with legislative leaders. "I didn't do it because it was a deal. It was a program that we sat down and discussed . . . and all agreed to, so I couldn't just unilaterally pull it out," he said.

Some state employees might wonder why Ryan does not feel the same obligation to stick by the union contract he negotiated with the American Federation of State, County and Municipal Employees.

Ryan repeatedly has excoriated the union for refusing to accept a salary freeze or cuts in health benefits that might reduce the number of state layoffs.

Ryan spokesman Dennis Culloton said that any contradictions probably stemmed from confusion as reporters shouted questions at the governor during a noisy news conference.

"It's a little bit unfair to try to juxtapose answers he gives in Q&A with statements he gives in the speech. It's pretty easy to not hear a question or misunderstand a question," Culloton said.

Culloton said Ryan is not embracing the use of bond money to fund teacher pensions; he is simply raising it as an idea worth discussing.

"The governor also feels the possibility of layoffs creates extenuating circumstances" that require him to propose changing the union contract, although not his agreement on member projects, Culloton said.


 

Statehouse Insider

By DOUG FINKE
STAFF WRITER
24 FEB 2002

"I didn't do it because it was a deal. It was a program that we sat down and discussed and negotiated and talked about and all agreed to."
- Gov. GEORGE RYAN, speaking Wednesday
A spirited defense of the four-year labor contract Ryan signed with the American Federation of State, County and Municipal Employees? Nah. A spirited defense of the lawmaker pork called "member initiatives."
For years, lawmakers have taken money that could be spent on employee salaries or education or human services and reserved it for themselves. They then showered this money on community groups or schools or local governments to build buildings or buy equipment. Of course, the legislators won re-election points in the process.
The thing is, more than $100 million set aside in years past hasn't been spent. Some people think maybe that money ought to be used to help get the state through its current financial crisis and that Ryan could have used the bully pulpit of his budget speech to suggest that.
Sorry, no. When it comes to lawmaker pork, a deal is a deal, and you can't go back on it. It's not something frivolous like a labor contract that you want the union to tear up or face having thousands of its members lose their jobs.
One thing the Enron debacle did was expose the corporate mentality that leads management to take care of itself while telling its employees "tough luck" as the company heads into the financial toilet.
Well, heck, who needs Enron when you have Illinois state government? The state is drowning in red ink, so you cut costs by whacking jobs, telling workers to take unpaid days off and pressuring union employees to take a pay freeze and possible cuts in their health insurance. At the same time, management (i.e., Ryan and his Cabinet) are in line to collect 3.8 percent pay raises July 1.
Ryan says he had no choice but to include money for the raises in the budget. The state constitution requires it, he says. Ryan also makes noises like he believes the constitution requires him to pocket the money. Frankly, we can't find that part of the constitution, but we're not legal experts like the governor. And goodness gracious, we wouldn't want the governor to do anything unconstitutional.
We can't blame only Ryan. That 3.8 percent pay raise goes to all the state's elected officials, legislators and the statewide folks alike. That includes people like Attorney General JIM RYAN and Lt. Gov. CORINNE WOOD - who are running for governor - and the rest of the bunch who are running for re-election.
When they show up in your neighborhood looking for votes, you could ask them if they, too, think they are being forced to accept a pay raise. It should be a wonderful conversation starter.
A year ago at this time, Ryan presented the budget plan for the current fiscal year. By the time the General Assembly finished with it in May, $1.2 billion had been added.
Curiously, that's about the same amount as the hole the state now finds itself in.
Anyway, in his budget speech, Ryan told lawmakers not to try the same thing this year.
"If that happens again this year, I will have to veto the entire budget," Ryan said. "You can take that to the bank."
That was during the speech. An hour later, Ryan was asked by reporters to elaborate about his threat to veto the entire budget.
"I don't think I said the entire budget," Ryan said.
Now this stuff changes from hour to hour.
For those of you scoring at home, the House left Springfield on Friday and won't be back in session until after the March 19 primary, more than three weeks from now. During that same time, the Senate will continue meeting.
You could get the impression that House Speaker MICHAEL MADIGAN, D-Chicago, is going to be preoccupied for the next few weeks with something other than legislative business. Like getting his daughter, LISA, elected attorney general. Nice when you can shut down your corner of state government for family business.
And just a reminder, when the House comes back after the election, it will work three days and then take a weeklong Easter break.
Doug Finke can be reached at 788-1527

House backs unions on prison food

By DEAN OLSEN
STATE CAPITOL BUREAU
23 FEB 2002

Responding to pleas from unionized prison workers, the Illinois House on Friday overwhelmingly approved a bill that would stop Gov. George Ryans plans to hire private companies to operate prison cafeterias and commissaries.

"Working in a prison is a dangerous job," said Rep. Gary Hannig, D-Litchfield, the bills sponsor. "This bill recognizes that the people in the kitchens do more than serve food."

Ryan has proposed privatizing food-service operations at the states 27 adult prisons and a total of 54 correctional facilities statewide to save money during a recession and budget crunch.

But supporters of the bill said the savings could come from elsewhere and that the 650 state workers in prison cafeterias and commissaries help keep those facilities secure and deserve job stability.

"These people theyre not just numbers out there," said Rep. Mike Bost, R-Murphysboro. "These are peoples lives."

Support from the lawmakers, many of whom have prisons in their legislative districts, crossed party lines. Only three voted no: Republicans David Leitch of Peoria, Mary Lou Cowlishaw of Naperville and Terry Parke of Hoffman Estates.

Rep. Tom Johnson, R-West Chicago, voted "present."

Leitch said he voted earlier this month for a non-binding House resolution opposing privatization. But Leitch said he voted against the bill, which would have a binding effect, because "I dont think we should restrict the administrations right to manage. I dont think we should handcuff the administration like that."

The bill now goes to the Senate. If the proposal reaches Ryans desk, he could veto it, but the Houses 110-3 decision indicated there would be more than the 71 votes required to override a veto by a three-fifths margin.

Officials from the American Federation of State, County and Municipal Employees union say privatization would lead to hundreds of layoffs of workers earning an average of $30,000 a year.

They also say private workers likely would receive low wages, leading to a high turnover rate and potential security problems. Many state workers in the prison food-service system have been trained as correctional officers.

Ryan has estimated that privatization would save the state $2 million in the remainder of the current fiscal year and $15 million in the next fiscal year, which begins July 1. But a Grundy County judge who issued a temporary restraining order has stopped the privatization plan.

Only one company has bid so far for the first phase of the privatization, which would cover a swath of central Illinois that includes prisons in and near Jacksonville, Pontiac, Danville, Dwight, Lincoln, Decatur and Pittsfield.

Sergio Molina, spokesman for the Illinois Department of Corrections, said the agency hasnt decided whether to award a contract to the company, Aramark. But if the savings reflected in the bid were expanded statewide, he said $22.6 million would be saved in fiscal 2003.

AFSCME officials said Ryan should abandon his plan. But despite the House vote, Ryan spokesman Ray Serati said the governors plan hasnt changed.

Ryan originally proposed also privatizing food service and housekeeping operations at state mental centers but has abandoned that idea.

Tom Green, spokesman for the Illinois Department of Human Services, said, "It was reviewed and decided it wouldnt be cost-effective at this time."

Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.

TALKS KEY TO VIENNA PRISON'S FATE

BY JEFF SMYTH
THE SOUTHERN
[Thu Feb 21 2002]

VIENNA -- Was the door left open or is it just slow to shut? That's the question some were asking the day after Gov. George Ryan dealt a blow to Southern Illinois when he announced he'd close the Vienna Correctional Center.

Corrections Department Director Donald Snyder made an impromptu visit to the prison Thursday afternoon to meet with administrators and the media. While he didn't guarantee Ryan's decision could be reversed, he made it certain it wasn't final.

"Understand, this is a starting point. This is the governor's budget and there is going to be a lot of discussions and a lot of talks between now and when the budget is finally passed," Snyder said. "The problem we face is that year's budget runs until June 30. In our proposed budget for 2003 there will be no inmates at the Vienna Correctional Center after July 31 unless we can find the resources out there to keep it open.

"We are going to work with the union president and try and listen to him. We are going to have to try and find new resource dollars in order to keep this open," he added.

But Jeff Jackson, president of the American Federation of State, County and Municipal Employees Local 415, saw little optimism in Snyder's comments. He met with the director in private and came away certain the prison will be closed.

"The way I look at things, this place is going to be closed," Jackson said. "We asked him if things were done would there be any written guarantees it will stay open and he said 'no.'"

Snyder said closing Vienna would save the Illinois Department of Corrections $25 million -- one-third of the money he needed to pare from his budget under Ryan's orders.

Vienna was targeted because of its age -- parts of the facility opened in 1965. The department estimates the facility will need more than $16 million in improvements over the next five years. It also made the chopping block because it offers IDOC less flexibility in which inmates it can house there.

Vienna is a minimum-security prison. Its inmates can be transferred to facilities with higher security rankings, but not vice versa.

"It made sense for us to look at a minimum-security facility," Snyder said. "We can't take an inmate from a maximum- or medium-security facility and put them in a minimum-security prison.

Snyder said the state's other minimum-security prisons are newer and upkeep of them costs less.

"With Vienna being an older facility it was strictly a money-driven decision," he said. "It is the oldest in that classification."

Snyder said 300 of the 424 employees at the prison will be affected by the closure. That number includes union and non-union workers.

The actual number of employees at Vienna has been a fluid subject. Earlier in the day, IDOC spokesman Brian Fairchild put it at 350. Ryan's budget showed 313 workers.

The remaining 124 employees at Vienna will stay on, Snyder said. Those working at the "boot camp" will be transferred to the authority of nearby Shawnee Correctional Center. Others will continue in maintenance capacities.

"There won't be any management at that facility," Snyder said.

But these plans can change if money can be found to make up Ryan's budget shortfalls, Snyder said. To Jackson and other union officials that means renegotiating their contracts.

Jackson joined AFSCME Council 31 Regional Director Buddy Maupin and another official earlier Thursday to discuss Ryan's plan to close Vienna and their willingness to negotiate.

"We don't have a disagreement with the governor that there is a revenue gap," Maupin said. "We have a disagreement with how to fill that gap.

"The governor proposes to fill it with the bodies of laid-off members and by attacking the wages and benefits of the rank and file workers of the state of Illinois," he added.

Negotiations between the union and administration have been testy with both sides pointing fingers. Ryan even used part of the budget speech to chide the union.

"I will never understand union leaders who would rather see their members laid off than consider temporary contract changes that would allow people to keep their jobs," Ryan said.

One of the negotiation sticking points is the administration's call for 45,000 furlough days from union workers which is expected to save the state $6.5 million.

Maupin said the union is open to furloughs, but has its own ideas on how to employ them.

"We proposed that it be a voluntary plan and that people that wanted to take more than one could do so. We have people that would take weeks or months," he said. "This would net them the days they need but not punish the people at the bottom of economic ladder who can't afford not to work even for a day.

"They said they were not interested in that and that's when they walked out of the discussions," he added.

Maupin said Ryan is painting the union as uncooperative and the two sides are locking horns.

"Our position has been misrepresented," he said. "We are disappointed they walked out of bargaining and tried to mislead the public into thinking we were not willing to negotiate.

"They had one proposal. We had a different one. They said 'take ours, we don't like yours and if you don't like ours then we are done,'" he added.

Maupin said he wants to return to the bargaining table, but also wants changes in the administration's attitude.

"One of the things I've learned as a negotiator is to be flexible on your positions and firm on your interests," he said.

But will that prevail in time to save Vienna?

"This is a long process," Snyder said. "Yesterday was the first day in the process. My suggestion and hope is that we are able to find the revenue to keep these places open."

jeff.smyth@thesouthern.com / 618-529-5454 x 15073

 

 

LDC workers get layoff notices

Jobs eliminated by June 30

By PAUL AYARS
COPLEY NEWS SERVICE
23 Feb 2002

LINCOLN A total of 192 Lincoln Developmental Center employees will be laid off by April 30, and another 180 will lose their jobs by June 30, according to LDC staff members.
The employees, members of American Federation of State, County and Municipal Employees Local 425, began receiving their layoff notices when they reported for work Friday.
LDC currently has a work force of 620, a union representative said.
Members of two other unions, representing Teamsters and nurses, will receive termination notices sometime next week, according to AFSCME officials.
The layoffs, 372 total, are close to the 400 anticipated locally since Gov. George Ryan announced Feb. 4 that LDC will remain open but will be downsized to 100 developmentally disabled residents. Last fall, before residents started being transferred, the center housed more than 370 people, most of them with profound disabilities.
The facility, one of Logan Countys largest employers, has been under fire because of questions about the quality of care it provides to residents. Last fall, inspectors cited the 124-year-old LDC for potentially dangerous violations. The center then temporarily lost the Medicaid funding that makes up about half of its yearly budget.
Laura Sandrolini of Lincoln, a member of Local 425s seven-member executive board with 10 years seniority as an LDC habilitation coordinator, said she knew of two board members being laid off.
"It is very sad," Sandrolini said. "There are many good workers, good employees, loyal, dedicated. They are going to lose their jobs. So many are unskilled labor, without degrees. Their ability to find comparable wages and benefits is slim."
The wave of impending layoffs "wasnt any secret," she added. "Weve heard about 210" employees will be left.
She said no early retirement options were included in the layoff notices, but a list of job openings at other state facilities is in the package.
"Department of Human Services management drew up the list of targeted positions, based on seniority," she said, noting that about 20 to 30 employees will be able to bump into a previously certified classification.
As many as 36 job classifications at LDC will be eliminated with the downsizing, Sandrolini said.
Some laid-off LDC staff could opt to work at privately operated community integrated living arrangements, known as CILAs, although they have lower pay and benefit packages than those provided by union agreement at a state developmental center.
"If it was that or go hungry, Id work anywhere," Sandrolini said. "Would a job in a CILA pay me comparable to what they pay me now? Not even close."
Ryan has ordered the development of group homes on the LDC campus, with $2.5 million in the current state budget earmarked to build four homes, with 10 residents each.
The governor also wants DHS to develop long-range plans to construct six more group homes on the LDC campus and to explore building new CILAs, housing one to eight residents each, in Logan and Mason counties.
Funds for CILAs to house 68 developmentally disabled residents in Logan and Mason counties are provided in this years budget, DHS spokesman Reginald Marsh said Thursday.
And the governors budget proposal for the next fiscal year, beginning July 1, calls for creation of CILAs for an additional 310 developmentally disabled individuals.
CILA residents cost the state an average $46,000 per person per year, according to DHS.
Sixty-eight CILA-eligible LDC residents already have been identified.
The current 159-person population at LDC would be reduced to 90 residents after the 68 are transferred to CILAs.
 

No pay hikes for state leaders

OUR OPINION

STATE JOURNAL-REGISTER
22 FEB 2002

THE STATE is in a sorry financial way. Gov. George Ryan made that abundantly clear during his combined State of the State and budget address this week. While his call for laying off 3,800 state workers and closing several state facilities may have come as a bit of a shock, no one was surprised at the gloomy nature of the economic picture the governor painted.

Illinois, like the rest of the nation, has been grappling with the effects of a recession since the spring of last year. The "help wanted" signs that seemed to paper the town a year ago are fewer and farther between today.

RYAN ALSO made it clear during his speech that it will take compromise and cooperation to work our way out of this financial mess. In fact, he welcomed suggestions on improving his budgetary plan.

"I believe we can fashion compromises that serve the common good, but we must have the resolve to do so," said Ryan.

We agree with the governor. We all should show resolve. And everyone should do his or her part to mitigate the pain of a tighter state budget.

There does seem to be one big difference between our vision of cooperation and the governor's. When we say everyone, we include the governor, his Cabinet, the other constitutional officers, lawmakers and all other state officials who are in line for pay raises during a time when others are being asked to acquiesce to wage freezes, furloughs and layoffs.

WE HAVE URGED the American Federation of State, County and Municipal Employees, the largest state-employee union, to consider options, such as accepting unpaid furlough days, to avoid large-scale, permanent layoffs.

Such a compromise is, no doubt, a sacrifice for all, but if it were to keep a few thousand workers on the payroll, it would be the right thing to do.

Yet how can the governor and other state leaders talk about the need to sacrifice while at the same time saying their hands are tied - that they have no choice but to get pay raises themselves?

Ryan and his administration should be embarrassed to defend in any way pay raises for themselves and lawmakers during such economic times.

"Constitutionally, we're required to submit a budget that fully funds the constitutional officers and whatever," said Ryan, attempting to explain why some of the best-paid state workers' paychecks will grow while thousands of lower-paid workers are laid off.

THE STATE constitution may require the money to be budgeted, but there is nothing that says the money has to be accepted. It would be unconscionable for Ryan to hike his pay to more than $156,000 while waving goodbye to 3,808 other state employees who are targeted to lose their jobs because of the lack of revenue.

The same goes for the rest of those who believe their 3.8 percent, fiscal 2003 wage hikes are protected by constitutional mandate.

If Ryan's call for AFSCME to reopen contract negotiations or to accept unpaid days off is to have any credibility, he must first make sure these nearly $1 million in mandated pay raises are not distributed in the upcoming fiscal year.

Ryan, state lawmakers to receive raises despite cuts

By DOUG FINKE
STATE CAPITOL BUREAU
21 FEB 2001

NAlthough Gov. George Ryan is asking unionized state workers to accept a wage freeze, his proposed state budget contains money to give pay raises to himself, his cabinet and state lawmakers.

The raises 3.8 percent cost-of-living adjustment for those officials, along with paid members of various boards and commissions would add about $943,000 to the budget.

After the increase, Ryan would earn $156,417 annually beginning July 1. Base pay for state lawmakers will increase by the same 3.8 percent to $59,808 (most lawmakers earn more for serving in leadership positions or as committee chairmen).

Ryan said he had no choice but to submit a budget that provides more money for elected officials and the cabinet.

"Constitutionally, were required to submit a budget that fully funds the constitutional officers and whatever," Ryan said.

Ryans budget plan calls for more than 3,000 state workers to lose their jobs from layoffs. He has said those layoffs could be minimized or avoided altogether if the largest state employee union would agree to a one-year wage freeze.

Council 31 of the American Federation of State, County and Municipal Employees represents 45,000 workers throughout state government. AFSCME members will get a 3.75 percent cost-of-living increase July 1 as part of their four-year contract.

Council 31 executive director Henry Bayer sarcastically suggested that if the Ryan administration believes the Illinois constitution requires pay raises, the constitution should be changed.

"Put (an amendment) on the ballot. I bet it would pass," Bayer said.

Ryan spokesman Dennis Culloton said he isnt sure the governor has the discretion to cancel the cost-of-living adjustments for himself and his cabinet. He also noted that the governor and cabinet officials have each worked an unpaid furlough day to help balance the budget.

"Thus far, AFSCME has done nothing to balance the budget," Culloton said.

Automatic cost-of-living raises for lawmakers, statewide elected officials, agency directors and their top aides date to the early 1990s. At the time, the General Assembly regularly rejected pay raise suggestions from the Compensation Review Board because of fear of political fallout.

The automatic raises are based on the official federal inflation rate.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

 

VIENNA RESIDENTS 'STILL CAN'T BELIEVE' PRISON TO CLOSE

BY JEFF SMYTH
THE SOUTHERN
[Wed Feb 20 2002]

foodsups.jpeg

Jim Hambleton, a correctional officer at Vienna Correctional Center, talks to Greg Wasuloski inside Dolly's place on Wednesday.


 

VIENNA -- The crew at Dolly's Place were serving the usual tasty home-style fare Wednesday, but many lunch hour customers lost their appetites when they heard Gov. George Ryan announce that he wants to close the Vienna Correctional Center.
   By MICHAEL DANN 
Officials with the Illinois Department of Corrections said the closure would come within three months of the start of the state's fiscal year 2003 that begins July 1.
About two dozen people gathered around a television in the back room of Dolly's to watch Ryan outline the final budget of his tenure. Most were bracing for the bad news, but they didn't want to accept it until they heard it straight from the governor's mouth.
"I can't believe he did it," Jean Schoemaker said. "I didn't think he was going to go through with it."
Closing the facility will be a blow to a region that has shaped its economy around prisons. Vienna, and adjacent Shawnee Correctional Center are the area's only major employers. Shawnee is not targeted for closure.
Vienna employs 360 with an annual payroll of $17 million, according to IDOC. The loss of those jobs could boost the unemployment rate in Johnson County from the current 4.7 percent to between 11 percent and 14 percent.
"When it came here, the state promised these jobs would help the economy of Southern Illinois," Schoemaker said. "Now they are just taking them away."
IDOC is slated to lose 1,106 workers under the proposed budget thanks to the privatization of dietary and commissary services, the closing of Vienna and the Valley View Youth Center in northern Illinois, and the elimination of recreation supervisors. The 1,100 inmates would be moved to the new Lawrence Correctional Center.
Under Ryan's budget, spending for the Corrections Department would rise by 1.7 percent next fiscal year. That's a $21.4 million increase to $1.3 billion.
"Why is the governor picking on Southern Illinois," Rodger Gossett of Vienna asked. "What is the underlying reason for this? There are other ways to save money."
Ryan said he targeted Vienna because of the age of the facility -- it opened in 1965.
"That's where we determined that we had to make the changes and the cuts and the closures," Ryan said following his budget presentation. "It wasn't anything aimed at Southern Illinois. I love Southern Illinois."
Stephen B. Schnorf, Ryan's budget director, said the state wants to close the aging prison to cope with its budget crisis. The budget Ryan presented includes $4.9 million for Vienna -- enough to keep the place open for three months into the next fiscal year.
"In the last 10 years, and in the department's current budget request, we have spent or have requests for $45 million in capital improvements at that facility," Schnorf said.
IDOC spokesman Brian Fairchild said at least $16.2 million in improvements are projected for the prison in the next five years. He said the facility needs new plumbing, a new power plant and a new water distribution system, among other things.
But Jeff Jackson, president of the union representing workers at the prison, questions if the state will save that much money since Vienna and Shawnee share some systems.
"They'll still have to make those improvements anyway. Shawnee gets water, sewer and steam from Vienna," Jackson said.
Jackson also questioned why -- on the day Ryan dropped the ax on Vienna -- contractors were at the prison bidding on window replacements.
"Why are they still spending money there if they are going to close it down?" he asked.
Patrons of Dolly's also were asking a lot of questions and openly sharing their disdain for Ryan's decision.
Jim Hambleton of Stonefort works in the prison's kitchen. He shook his head and cursed under his breath when Ryan made the announcement.
"They just spent $3 million making improvements. It's in better shape now than it has been in for 10 years."
Hambleton worked construction for 25 years before joining the prison staff seven years ago.
"I got tired of construction and wanted the security and benefits offered here," he said. "Look what that's gotten me now."
Greg Wasuloski, a dietary employee of 25 years from Dongola, was equally as sullen after listening to Ryan.
"I'm 18 months away from retirement and now he wants to close us down and put us out of jobs. I took this job to make a career out of it. I'm 48 years old and now I've got to look for a new job."
Mary Jane Webb rested her chin in her hand while watching the announcement. Webb, who served as Johnson County state's attorney during the 1970s, said she was "shocked" by the news.
"The state has gone back on its promise. They just pulled the rug out from under us," Webb said. "It was a major effort to get it here. We were so happy. We thought we were blessed.
"Now, this means a major upheaval of families. We are insulated and isolated here. It is no solace that they say the people will be absorbed into a prison community somewhere else," she added. -- Richard Goldstein also contributed to this story
jeff.smyth@thesouthern.com / 618-529-5454 x 15073

 

Ryan outlines budget plan

Will trim jobs, shift funds for education

By DOUG FINKE
STATE CAPITOL BUREAU
20 FEB 2002

 Job cuts in the thousands, facility closures and deep cuts to Medicaid programs are needed to balance next years state budget, Gov. George Ryan told lawmakers Wednesday.

In his final budget address as governor, Ryan also called for a major overhaul of state education funding, an early retirement incentive plan for state workers and expanded health-care coverage for the working poor.
Appearing before a joint session of the General Assembly, Ryan outlined a $52.8 billion spending plan for the fiscal year that starts July 1. Amid the doom and gloom, Ryan issued a stern warning to lawmakers not to add hundreds of millions of dollars to his budget plan, as they have in previous years.
"If that happens again this year, I will veto the entire budget," Ryan said. "You can take that to the bank."
As expected, Ryans budget calls for trimming the states workforce by at least 3,800 jobs.
"I dont like saying that, I wont like doing that, but I will do that to ensure the fiscal stability of this state," Ryan said.
The budget plan calls for nearly 1,900 jobs to remain unfilled if they become vacant. An additional 3,000 jobs would be cut through layoffs, mostly at two state prisons and the Zeller Mental Health Center in Peoria, which would close as part of the budget plan.
At the same time, the state expects to hire about 1,170 new workers, almost all of them to staff newly opening prisons. Not included is the Thomson Correctional Center in the Quad Cities area, even though that prison will be built by the end of June. It will remain unused until the state can afford to staff it.
An early retirement incentive plan for state workers would reduce the number of layoffs, Ryan said. Details of the plan were not outlined, but an early retirement program in the early 1990s allowed workers to buy extra age and work credits to make it feasible for them to retire at a younger age.
Some layoffs also could be averted if the largest state employee union would agree to contract changes, Ryan said. Ryan wants Council 31 of the American Federation of State, County and Municipal Employees, which represents 45,000 state workers, to accept a wage freeze and health insurance changes.
"I will never understand union leaders who would rather see their members laid off than consider temporary contract changes that would allow people to keep their jobs," Ryan said.
Council 31 executive director Henry Bayer said the union has suggested money-saving ideas, but they do not include a wage freeze.
"We understand there is a shortfall," Bayer said. "I think his attacks on us have been unfair."
Ryans budget also calls for cuts in payments to nursing homes, doctors, dentists and pharmacists who provide care to the poor through the Medicaid program. Nursing homes will lose $195 million in Medicaid reimbursements under the plan.
Both William Kempiners of the Illinois Health Care Association and Terri McEntaffer of the Illinois Pharmacists Association said the governors plan would put some providers out of business.
Ryan, a former pharmacist, challenged lawmakers to come up with alternatives.
"You may have other and different priorities," Ryan told lawmakers. "If so, lets talk about them."
At a news conference after the speech, Ryan said "everything is negotiable."
"I dont believe its going to come out the way its going in," Ryan said of his budget. "Just dont give me a budget that spends more money than weve got money for."
Ryan did not call for any tax or fee increases. AFSCME, among others, has suggested some tax hikes as a way to balance the budget.
"At this point I dont see any reason to raise taxes," Ryan said.
The governor blamed the states budget problems on declining tax revenues brought on by the recession and fallout from the Sept. 11 terrorist attacks. Ryans budget experts think state revenues will grow by only $480 million in the next fiscal year, a far cry from the $1 billion-plus enjoyed in recent years.
Senate President James "Pate" Philip, R-Wood Dale, said it might be tough to pass Ryans school plan, which would redirect $500 million from specific grants for public schools to no-strings-attached general state aid. Any school district slated to lose money will lobby against the plan, Philip said.
Rep. Gary Hannig, D-Litchfield, the House Democrats top budget negotiator, said the governors speech is only the opening salvo in the budget process.
"Hes laid out a worst-case scenario today," Hannig said. "Well start the process of looking at the details. We have ideas as well."
Although the focus of Ryans speech was the budget, it was also an opportunity for the governor to review his years in office. During his tenure, Ryan said, significant improvements have been made to the states road system, health coverage for needy children, prescription drug coverage for seniors, prison safety and in streamlining state government.
"Unfortunately, if you listen to some of the commercials on TV, you might get the impression that weve accomplished nothing during the past three years," Ryan said. That was a shot at candidates running for governor who have spent time attacking the lame-duck Ryan.
Ryan also defended his Illinois FIRST program, which critics say is larded with pork projects. Ryan said the $12 billion program has been a major economic stimulus.
"To my amazement and to my utter surprise, even some of Illinois FIRSTs harshest critics have gladly accepted funds for projects in their districts," Ryan said to some of the loudest applause of his speech.
Doug Finke can be reached at 788-1527 or doug.finke(at)sj-r.com.

Budget fight has only just begun

Our Opinion
State Journal-Register
20 FEB 2002

 

WHEN GOV. GEORGE RYAN stepped before a joint meeting of the Illinois House and Senate on Wednesday, he began the annual process of crafting a budget the state must live within for the fiscal year beginning July 1.

It's always important to remember that the governor's budget speech is just the beginning of the process. The budget is always massaged and manipulated from March to May or June before it takes its final form. Most often that final form ends up being larger than it started.

Gov. Ryan made it clear that he intends to break with that tradition this year.

"AS WE BEGIN to debate this budget, I would remind you that last May this General Assembly approved a budget that was $1.2 billion more than the budget I submitted to you in February. If that happens again this year, I will veto the entire budget. You can take that to the bank," Ryan warned the legislators.

As expected, the state's dire economic situation forced Ryan to craft a budget that includes some painful cuts. He proposes cutting 3,800 state jobs. He would delay the opening of one southern Illinois prison and close another, as well as close a juvenile prison in the Chicago suburb of St. Charles. Ryan also calls for closing a mental health center in Peoria and downsizing a developmental center in Rockford.

The teeth have already begun gnashing over Ryan's leaner, meaner budget - if $52.8 billion can ever be consider lean. However, complaining won't make the pain go away.

RYAN IS TO be commended for developing a budget with some clear priorities. Prioritizing has not been the strong suit of state government in recent years with revenues flowing in at record levels. But a major belt-tightening episode like the current recession tends to force budget makers to look at what's necessary and what's not.

Ryan has decided that educating Illinois' children, helping to care for the state's neediest citizens and providing money for public safety are his priorities. While even these areas will surely not be funded at a level that will please everyone, his budget manages to provide significant resources for schools, health care for the poor and public safety programs, including new prison beds.

As we said, the budget process is just beginning, and Ryan made it clear he understands that his priorities will not necessarily match those of many legislators - especially the legislators who represent those state workers who may lose their jobs.

THE TONE of Ryan's speech seemed to be one of inviting negotiations on creating a better plan - as long as that plan is realistic.

Those who know him best say that nothing pains Ryan like having to fire people. He said as much in his speech when he announced the need to cut 3,800 state jobs. "I don't like saying that. I won't like doing that. But I will do that to ensure the fiscal stability of this state," he said.

Other options do exist that could help avoid many of these layoffs. But that will require AFSCME, the largest state-worker union, to compromise. The union and others note that options other than wage freezes exist could be used to avoid layoffs - higher cigarette taxes, higher gambling boat taxes and/or license fees, the repeal of certain corporate tax breaks, to name a few. It's true that these are all potential sources of new income that could help ease the proposed budget cuts. The bigger question is whether tax increases are viable options in an election year.

Anyone who believes so might want to review a tape of Ryan's speech. Some of the most eager applause from the legislators followed the line: "This budget contains no tax increases."

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Governor candidates debate budget woes

 

By MIKE RAMSEY
COPLEY NEWS SERVICE

20 FEB 2002 Edit

 

CHICAGO - With Gov. George Ryan ready to offer a gloom-and-doom state budget today, three Democrats seeking his job offered advice Tuesday on how to raise revenue and avoid thousands of layoffs.
Paul Vallas' multi-point plan repackaged some ideas he already suggested on the campaign trail, including a proposal for the state to grab a greater share of Illinois casino proceeds. In the short term, the former Chicago schools chief said, the state could cut all spending by 5 percent and offer a limited "tax amnesty" allowing delinquents to pay up.
"If you did all those fundamental things, you could generate well in excess of $1 billion, without going out and proposing a general tax increase," Vallas said during an hourlong debate broadcast live by Illinois Radio Network from Chicago.
Former state comptroller and attorney general Roland Burris warned that siphoning more casino money would need legislative approval and won't solve immediate budget problems. He again advocated borrowing $300 million to pay bills, the type of strategy he used as comptroller in lean years.
"The law allows the governor, the comptroller and treasurer to go and borrow - you don't need legislative approval," Burris said.
Both Burris and U.S. Rep. Rod Blagojevich of Chicago, the third Democratic candidate competing in the March 19 primary, cautioned against across-the-board budget cuts. They said that approach would harm some state departments more than others.
"I think you cannot have a one-size-fits-all approach," said Blagojevich, who also supports a tax amnesty.
Burris and Blagojevich frowned on potential layoffs, but pink slips for nearly 4,000 state workers reportedly are a possibility in the $54 billion budget Gov. Ryan will propose today to the General Assembly. The fiscal 2003 spending plan, which covers an annual period beginning July 1, will be debated by lawmakers through the spring.
All three Democratic candidates for governor again agreed that unspent "member initiatives" should be used for budget relief. More than $100 million worth of the controversial perk otherwise will be divided among state lawmakers as grants for their districts.
Also Tuesday, the candidates were asked how they would bring more jobs to downstate Illinois.
Blagojevich has called for creation of a private venture-capital fund that would help finance businesses in struggling areas. Vallas ridiculed the idea as "something that a graduate student would come out with" and said economic development springs from solid budget management.
Burris, who like the others lives in Chicago, called for greater attention to Illinois' ethanol industry. He also reminded listeners of his southern Illinois origins as a native of Centralia.
Tuesday's radio forum was peppered with a few political attacks, mostly between Vallas and Blagojevich. The congressman criticized Vallas for spending money on "limousines" for top school officials while he served as Chicago superintendent. Vallas said the chauffeured sedans saw that late-working administrators got home safely.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.

TIME FOR COOLER HEADS TO PREVAIL ON PRISON ISSUE

VOICE OF THE SOUTHERN: OPINION

20 FEB 2002

 

There is no joy in Mudville. Mighty Casey has "struck out" -- though not in the fashion envisioned by Ernest Lawrence Thayer's poem "Casey at the Bat."

Pilloried for months by the unions, the legislature, the press and members of his own party in scathing campaign commercials, a frustrated Gov. George Ryan "struck out" Wednesday in revealing an austere fiscal 2003 budget plan that proposes closing Vienna Correctional Center.

It was a breath-taking shift in corrections policy. Where Illinois once built prisons to meet jam-packed overcrowding, now Ryan's staff is saying 40-year-old VCC is a maintenance burden, it should be shuttered and its inmates shifted elsewhere.

We won't even dignify that argument with a rebuttal. Ryan's gambit is political arm-twisting at its finest. While praising other unions in the state for having worked with him to solve the current budget crisis, the governor singled out the American Federation of State, County and Municipal Employees for being obdurate. He said he couldn't understand a union that would rather see its members lose their jobs rather than even talk about the problem.

AFSCME, of course, represents correctional employees across the state, including those at VCC. By targeting VCC, we believe Ryan is upping the ante with AFSCME, and with Southern Illinois legislators who have stood by AFSCME.

We do not believe Ryan is sincere in his desire to close VCC. Now it is only a question of who blinks first: the governor, legislators who hunger for union votes, or AFSCME. In any event, this is just another example of our region's economic future being held hostage on a larger political stage,while Egyptians sit in the cheap seats.

We are also disappointed that Ryan didn't turn off the billion-dollar faucet of the member initiative slush fund, which should be exposed to the bright light of the budgeting process.

There is one aspect of the governor's plan we heartily commend, however, and that is his continued commitment to education. His bold proposal to dramatically increase foundation levels -- while returning more control to local school boards -- represents to Southern Illinois (at least) more potential for long-term hope and growth than any single correctional center ever could.

Ryan's pledges, too, that he won't raise taxes -- and that he intends to veto any budget document that spends above the level he outlined -- are admirable and rock-ribbed. He said it. We heard it. We believe it.

While we expect much wailing and gnashing of teeth to erupt as the General Assembly digests Gov. Ryan's proposed budget, remember this: It was his singular skill at forging compromise that brought George Ryan to the governor's chair.

No one really wants to see VCC closed, and hundreds of employees lose their livelihoods.

No one wants to see a budget impasse, or a government shutdown.

Now is the time for cooler heads to prevail, and for the legislature to do its work.

And maybe AFSCME might want to give George a jingle and see what he's doing for lunch one day next week.

 

 

3,700-3,800 state jobs to go

Budget to favor per-pupil aid over school program grants

FROM STAFF AND WIRE REPORTS
State Journal Register
19 FEB 2002

Gov. George Ryan will call for reducing the state work force by 3,700 to 3,800 in his budget proposal Wednesday, barring union concessions.

At the same time, Ryan is proposing redirecting $500 million from current education grant programs into a 9.6 percent increase in the base level of support the state provides for each student. Ryan's proposal would cut 22 grant programs used for such areas as reading and bilingual education and bump up the so-called "foundation level" of per-student support by $440, bringing it to $5,000 a student.

Most of the job cuts would come from Corrections and the Department of Human Services, two of the state's largest agencies, according to Ryan spokesman Dennis Culloton. Two unspecified correctional facilities could be closed as part of the budget-cutting effort.

The cuts would come partly through attrition and retirements, but a significant portion could involve layoffs, Culloton said.

Ryan previewed some of the details from his budget address in response to questions after speaking about education funding at Washington Elementary School in Decatur on Monday.

"Basically he said that in the context of if AFSCME sits down and talks with him, some of those layoffs at least could be averted,'' Culloton said. "He's willing to speak with them anytime. Without them at the bargaining table, he will do what he needs to do."

The American Federation of State, County and Municipal Employees represents 45,000 state employees. Ryan has asked the union to agree to a salary freeze and other changes instead of the 3.75 percent raise its contract calls for on July 1. So far, union officials have said they have no plans to reopen the contract and have suggested lawmakers should look elsewhere for spending cuts.

"I don't think I would want to run for office saying, 'You should vote for me because I voted to lay 4,000 people off, '" said Henry Bayer, executive director of Illinois' branch of the AFSCME. "The members of the General Assembly, we hope, are going to be convinced that they have to find an alternative."

Ryan's proposal for fiscal 2003, which begins July 1, is just the first step in writing a new budget.

The most powerful Democrat in the legislature, House Speaker Michael Madigan, has proposed raising minor taxes. He refused to comment on the budget last week.

The Republican-controlled Senate is less likely to support higher taxes and Ryan has said they are unlikely to be seriously considered in an election year.

Budget experts say state revenues will rise by perhaps $300 million to $500 million - a fraction of the $1.6 billion by which revenues rose from fiscal 1999 to 2000.

Out of that small pot, the state must pay its leftover bills, $175 million in higher pension costs, roughly $150 million in higher salaries and an unknown amount for higher medical costs.

Plus, Ryan is determined to give education 51 cents from every new dollar the state takes in during the next fiscal year.

Culloton said the proposed shift in education funding from the grant programs to per-student spending is a move to give schools more flexibility. Schools could use the extra money for reading or bilingual education - without the red tape of applying for grants - or they could use it to meet other needs, he said.

Less than three months ago, the governor's Education Funding Advisory Board suggested a $120 increase in the foundation level, an amount that was seen as unrealistic by some lawmakers who assumed it would take new money to do so.

Ryan said it is fair to make education the priority even if it means cutting jobs.

"Would I want to be unfair to the kids? Is it fair to keep kids out of an education? I don't think so," he said last week.


Union challenges the Governor to renew discussions over fiscal crisis


February 18, 2002

CHICAGO, ILLINOIS A voluntary furlough plan proposed by the largest state employee union could be saving the state money if the governor had accepted that proposal said Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees.

"The governor broke off negotiations with the union over the plan," said Bayer. But furloughs aren't the real issue here, Bayer stressed. "By the governor's own estimates, a one-day furlough would save only $6 million. "The real concern should be: where is the other $990 million that it will take to close the revenue gap going to come from?

"AFSCME stands ready to meet with the governor at any time to discuss our ideas about how to address the magnitude of the crisis," Bayer said.

Along with other community groups, social service agencies, think tanks and rank-and-file legislators, AFSCME has presented a range of alternatives to addressing the state's fiscal crisis.

"This is a far-reaching fiscal crisis," said Bayer. "Its solutions, too, should be far-reaching. The governor shouldn't be attacking state employees and their union, who've been trying to negotiate in good faith as well as to build support for broad solutions to this crisis. Instead he should be taking the lead in generating serious discussions about what it will take to really close the budget gap."

While the governor has repeatedly said revenue-raising measures are politically unfeasible, many Illinois rank-and-file legislators disagree and have introduced a range of bills to enhance state revenues. Governors of other states are increasingly acknowledging that such revenue generation is needed if they are to avoid contributing to a sagging economy. "There is a growing recognition that laying off thousands of state employees would not only have a very real human cost, but would also further harm the state's economy," said Bayer.

Layoffs also mean service cuts precisely when recessionary conditions lead to an increased demand for public services. "We have no reason to believe that the layoffs being considered are going to be among the ranks of upper and middle management in the state," said Bayer. "If front-line employees are cut, that means services are cut.

"We need a willingness to look for real solutions that are good for the entire state, and we need leadership in that effort," said Bayer. "Cutting important programs or laying off workers are not actions anyone is forced to take. There are better options to consider."

Statehouse rallies aim to promote causes, unite followers

BY DANA HEUPEL
STATEHOUSE EDITOR
18 Feb 2002

On a recent legislative session day, state lawmakers, lobbyists and tourists strolling through the Capitol Rotunda wound their way around a dozen yellow-clad practitioners of a Chinese spiritual discipline called Falun Dafa.

The next day, up to 1,000 chanting state workers gathered outside the Capitol to protest a plan to privatize prison food services. They then converged on legislators inside to try to make their point.

And a couple of days later, schoolchildren in the Rotunda sang a rhythm-and-blues medley to a crowd observing African-American History Month.

Statehouse rallies are an enduring tradition. They represent nearly every conceivable cause, from gay rights to the Ku Klux Klan to major political candidates such as George W. Bush. But they all have the same intent:

"It's twofold," says Marrianne McMullen, public affairs director for Council 31 of the American Federation of State, County and Municipal Employees, which sponsored the rally against prison privatization.

"We let the legislators know what the support is, and our members .. . they're feeling under attack, and they need to feel like they can do something about it. And coming to Springfield to talk to their legislators as a group is a very empowering thing for them."

McMullen says AFSCME rallies do get results. She points to House Resolution 588, which opposes Gov. George Ryan's plan to seek private vendors for prison food services. The House passed it unanimously on the day of the protest.

Ryan spokesman Ray Serati says the governor was aware of the rally, though he chose not to speak to the participants and has not changed his mind about prison privatization.

Any group can rally at the Statehouse, says Dodie Stannard, special events bureau chief for the secretary of state's office, which oversees gatherings at the Capitol complex. But "no one can utilize the Capitol building grounds or the Rotunda without obtaining a permit," she says.

A rallying group must fill out a request form from her office and wait about two days for it to be processed. Then it's first-come, first-served for the times and places.

Last year, about 35 rallies were among the 130 or so special events the secretary of state's office authorized at the Capitol. They focused on such issues as child abuse, home education, motorcycle safety, drunken driving, AIDS and state employee concerns. Other groups set up displays, observed ceremonies at the firefighters and police memorials on the Statehouse grounds or celebrated holidays ranging from Veterans Day to Cinco de Mayo.

Stannard says displays are limited to not-for-profit groups, but any group can conduct a rally. The secretary of state's office supplies tables, chairs and staging, "but if they want a sound system, we don't have that available. We suggest they get their own because in the Rotunda, if you're having any large number of people, you're going to need a sound system."

Even with a sound system, rally participants might not always reach the lawmakers or government officials they're trying to persuade.

Gregg Durham, spokesman for House Republican Leader Lee Daniels, R-Elmhurst, says House and Senate leadership offices are on the third floor, and some are out of earshot from what's taking place in the first-floor Rotunda.

Sounds that do make their way upward, he says, are often muffled.

"If they don't have signs, it's hard to tell" from the third floor what a group is rallying about, he says.

Many times, Durham says, the best way for groups to get noticed is to give legislators written materials that outline their concerns.

"Those are the things that get read."

If chanting doesn't always work, silence might. Dongdong Zhang, a doctoral student in special education at the University of Illinois at Urbana-Champaign, says the Falun Dafa group demonstrated at the Capitol to publicize persecution of followers in China.

Although the practitioners in the Rotunda stood still and mute, many passersby stopped at a nearby information table to find out about the practice.

Falun Dafa, also called Falun Gong, follows the concepts of truth, compassion and tolerance, its followers say. They say it is not political.

In a response to criticism by the U.S. Commission on International Freedom, the Chinese government has stated, "Falun Gong is not an organization that promotes health, nor a religious group, but an evil cult that has seriously harmed the safety of the Chinese society and people." It has banned the practice, but has not acknowledged persecution of the followers.

"We are in Springfield for three reasons," Dongdong says. "To bring the awareness of the practice to local people, to make people aware of persecution, and in the hope that government will take notice and do something."

AFSCME's McMullen offers another reason for Statehouse rallies: involving the electorate in the governmental process.

"I can't imagine a way that people can feel more engaged in democracy and their state government than in just going to the Capitol with a group of people who believe as they do on an issue. It's as engaged as you can get," she says.


Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.

Ryan to present budget this week

Proposal likely to include layoffs, facility closures

By DOUG FINKE
STATE CAPITOL BUREAU
17 Feb 2002

One last time Wednesday, Gov. George Ryan will address a joint session of the Illinois General Assembly and outline a spending plan for the states next fiscal year.

But instead of the feel-good, something-for-everyone budgets of his first three years, Ryan will present a nothing-for-nobody budget that even he concedes probably will include layoffs, state facility closures and other unpopular budget-balancing measures.

The only people likely to be happy with the budget plan are educators. Ryan said last week he will give 51 percent of new state revenue to education again next year.

"Its going to be a tough budget," Ryan said last week.

Lawmakers already expect the worst.

"I think it is absolutely going to be doom and gloom," said Rep. Frank Mautino, D-Spring Valley. "Hes got a pretty good mess. Theres not going to be a lot of joy in that budget address."

"For those who werent here 10 years ago, his budget message will scare the holy heck out of some people," said Rep. Bill Black, R-Danville. "It may be were going to be worse off than we were 10 years ago."

A decade ago is when state government last went through a financial meltdown of this magnitude. Agency budgets were slashed, thousands of jobs were eliminated, and Illinois credit rating sank as state administrators struggled to get back to financial stability.

Ryan said last week the state may only have about $450 million in revenue growth to work with in the fiscal year that starts July 1.

Thats the money that has to cover all the increased costs of operating state government for the next year. It is not a great deal more than the state had available during the crisis of the early 1990s, when the budget was substantially smaller than it is now. Coupling lower revenues with drastically higher costs for services like health care for the poor and state workers creates a dire forecast for the state budget.

However, both Ryan and lawmakers know his budget speech is only the opening gambit in a process that will stretch over three more months.

"I think the budget will probably be portrayed as worse than what it needs to be for a starting point in negotiations," Mautino said. "You cant start with what your final budgets going to be. Hes shrewd enough to know that."

Ryan said nearly the same thing last week when, once again, he expressed frustration with what he views as the General Assemblys lack of cooperation in helping him cope with the budgets problems.

"When (legislators) see this budget and see how bad it is, they may be willing to do something," Ryan said.

What they will do is anybodys guess. Some lawmakers have talked of "revenue enhancements" that might include hiking the state cigarette tax, raising taxes on riverboat gambling and reversing some tax breaks given to businesses over the last few years. Council 31 of the American Federation of State, County and Municipal Employees, the powerful union representing 45,000 state workers, also supports those ideas,

"Just from a pure political standpoint, it could be very difficult to get any kind of tax increase in an election year," Ryan said. Nonetheless, Ryan said he would "listen to any proposals that may come."

Black said he thinks the state already has squeezed the cigarette tax as hard as it can.

"The more you raise it, the less money you get," Black said. "I dont think there is any support in either chamber to raise a tax or a series of taxes, temporary or not. The temporary income tax of 1989 is still there."

If the state doesnt increase taxes, the alternative is to cut expenses. Some lawmakers expect Ryan to do most of the cutting himself and wait for legislators to add back in areas they think are critical. Ryan thinks that should come naturally to the General Assembly.

"Thus far in this process, theyve come up with nothing but spend," Ryan said. "I introduced a budget a year ago that was $1.8 billion less than the General Assembly passed out. The General Assembly hasnt stepped up to the plate yet and said, Heres what were willing to do and heres where were willing to participate."

Ryan said he continues to receive letters from lawmakers "asking for money for various and sundry projects."

One way to cut expenses is to trim the states work force, which Ryan is threatening to do. However, there is growing support in the legislature to pass a program to encourage older workers to retire earlier than they may have planned. The idea is the program will reduce the number of layoffs necessary, if not eliminate layoffs altogether.

If nothing else, House Democrats say the budget plan will get much closer scrutiny this year than it has in recent years.

"I think it will be much more serious," said Rep. Kurt Granberg, D-Carlyle. "Hopefully, we will get back to a line-by-line analysis go through every state agency and make reductions where we can with the minimum amount of detriment to the people who can afford it the least."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Ryan to cut jobs instead of hike taxes

Human services, prisons are likely to bear brunt of cost-cutting drive

By Christi Parsons and Ray Long, Tribune staff reporters. Tribune staff reporters Adam Kovac and Aamer Madhani contributed to this report
Published February 16, 2002

SPRINGFIELD -- Gov. George Ryan Friday all but ruled out a tax increase proposal to bolster the state's sagging finances, but administration sources said he will outline a new budget next week that slashes the state payroll by up to 3,800 jobs and closes two additional state prisons.

Ryan's proposed staff reduction would be achieved through layoffs, attrition and possibly an early retirement program, the sources said. Most of the job cuts would come from the Department of Human Services and the Department of Corrections, the sources said.

Although the finishing touches are still to be placed, Ryan's financial blueprint for the 2003 fiscal year, which starts July 1, called for closing the minimum-security Vienna Correctional Center and the Illinois Youth Center in west suburban Valley View--absorbing many workers who don't take early retirement into nearby prisons.

Though the budget includes money to finish construction of a new $140 million maximum-security prison in northwestern Illinois, it also seeks to save money in the prison operating budget by not allowing it to open during the next fiscal year, sources said.

"Layoffs are just a terrible thing for me or anybody to have to be a part of," Ryan said Friday at the Executive Mansion, where he discussed the budget in general terms but declined to give specifics. "But I have an obligation to balance the budget. We can't spend more money than we've taken in, and that's where I am in this situation."

At an appearance earlier in Chicago, the governor said asking for a tax increase to ease the state's budget woes would be a non-starter in an election year. "From a purely political standpoint, a tax increase won't happen this year," Ryan said.

Because of their size, the Human Services and Corrections Departments are being targeted for most of the job reductions, sources said. Closing facilities would help reduce human services jobs by about 1,700 and corrections jobs by 1,100. The reduction in prison jobs would include the already announced closure of Joliet Correctional Center.

Even as Ryan talked about layoffs, he reminded union members that there still is time for them to negotiate before he completes the personnel plan.

Worst fiscal crisis in a decade

The administration is facing the state's worst financial crunch since 1992, when then-Gov. Jim Edgar laid off thousands of workers to help balance the budget. The state's current fiscal picture is grim partly because of too rosy revenue predictions and an economic tailspin after the Sept. 11 terrorist attacks.

Growth in state revenue won't provide much relief. When the current $53 billion budget was passed last spring, the administration predicted key revenue sources such as income and sales taxes and fees would bring in $25 billion. Because of the recession, that figure is expected to be off by as much as $1 billion.

Sources said Ryan's budget anticipates revenues in fiscal 2003 to rise only $300 million to $500 million above the lowered expectations for the current year.

Because Ryan's budget is not expected to include proposals for a tax increase, he will have to push harsh spending cuts for state agencies to cope with the revenue shortfall. In November, Ryan announced nearly $500 million in spending cuts, but he will announce cuts of roughly the same amount in his budget message Wednesday, sources said.

Though he said a tax increase was unlikely, Ryan hinted he would consider signing one if legislative leaders decided to push for it.

"It's tough to do when things are good...," Ryan said of a tax increase. "If they want to put a package on my desk, I'll be glad to look at it and maybe sign it."

But Ryan made it clear Friday that he would keep his 1998 campaign pledge to pump 51 percent of all new state revenues into education and workforce training, for the fourth straight year.

"Is it fair to cheat kids out of an education? I don't think so," Ryan said. "If you want to talk about what's good for an economy, it's an educated workforce. So, during tough times, you don't cut back on education."

As the budget shortfall intensified last fall, Ryan cut health-care benefits for up to 100,000 Medicaid recipients, froze hiring at prisons, cut back services to the developmentally disabled and ordered the one-day furlough of most state workers. In some of his most devastating cuts, Ryan also slashed tens of millions of dollars in payments that the state makes to hospitals in exchange for treating poor patients.

Pork money still flowing

Now the governor, who is not seeking re-election, heads into his fourth and final budget with a message far more austere than in earlier years, when the state treasury was flush. Back then, Ryan was all too happy to help bankroll a spending spree.

In those early years, Ryan and legislative leaders authorized $1.5 billion in spending for pork-barrel projects that lawmakers spread around their districts. More than one-third of the money to pay for those projects was siphoned from the state's main checking account used to pay for day-to-day operations.

Nearly $114 million of that smaller pot of cash was still unspent as of Friday, although it is disappearing fast as checks continue to be cut for pet projects.

Ryan has suggested using the unspent pork money to help plug the budget gap, but that idea has encountered severe resistance from some top lawmakers. It is unclear whether Ryan will try to revive the fund-diversion idea in his new budget.

`People are nervous'

More dire financial news leaking from the administration in recent days has lawmakers bracing for the worst.

"People are nervous about how they're going to explain in their districts why you can be in economic recovery but still cut millions of dollars," said state Sen. Steve Rauschenberger (R-Elgin), the Senate appropriations chairman, who thinks the governor's revenue estimates are optimistic. "This is almost impossible to sell to the Kiwanis Club."

Lawmakers may be tempted to talk about tax increases, Rauschenberger predicted.

"A lot of the members believe in their hearts that the way to get out of a recession is not to raise taxes," he said. "But it's so much easier to support a cigarette tax than to really fight the growth of state government."


Alternatives to budget cuts suggested

By ADRIANA COLINDRES
COPLEY NEWS SERVICE
16 Feb 2002

Less than a week before Gov. George Ryan unveils his proposed state budget for the coming fiscal year, a bipartisan research group on Friday outlined alternatives to budget cuts announced earlier by the governor.

Ralph Martire, executive director of the Center for Tax and Budget Accountability, said his group's proposals make sense and "wouldn't cause a lot of pain."

"Rather than implement spending cuts that may worsen the recession and don't solve the state's fiscal capacity problems, the state should identify ways to build financial resources and satisfy the demand for government services," the group says in a paper explaining its ideas.

Ryan's proposed budget cuts, such as reducing payments to health-care providers, will hurt families, the elderly and others, according to the center.

The group's proposed alternatives "would allow the state to balance the budget and maintain an array of health care and other essential services without taking money out of the economy during a recession," the document adds.

A spokesman for Ryan, who will announce his proposed budget on Wednesday, said the governor's office is reviewing the center's ideas.

One of its proposed alternatives is to revamp the state's prescription drug-purchasing program.

"This should seem like a no-brainer," Martire said at a Statehouse news conference. "We spend over $1.6 billion a year on prescription drugs through various agencies, yet our purchases aren't fully coordinated, and we aren't receiving maximum discounts. Why not?"

Martire said his group estimates that by changing prescription drug purchases, the state could see an extra $158 million a year in revenues.

Martire and James Nowlan, a former state legislator on staff at the Center for Tax and Budget Accountability, outlined nine "alternative approaches" to the state's fiscal crisis. The proposals were put together by officials from the center and from more than 30 other organizations, including the National Center on Poverty Law and Council 31 of the American Federation of State, County and Municipal Employees.

Other proposals include:

Increasing the state's cigarette tax from 58 cents a pack to $1 a pack. That would generate extra revenue for the state and, at the same time, reduce smoking rates among Illinoisans, especially young people, Martire said.

Delaying or eliminating a $226 million repayment to the state's "rainy day fund," which Comptroller Dan Hynes used last fall to pay state bills.

Increasing the state tax on riverboat casinos, which at present ranges from 15 percent to 35 percent, depending on adjusted gross receipts. A higher tax on riverboat casinos, which would range from 20 percent to 40 percent, would generate an extra $90 million a year for the state, according to the center.

Using $117 million in unspent "member initiative" funds to help close the budget gap.

Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.

State wage freeze proposed

Governor says that might avert layoffs

By DOUG FINKE
COPLEY NEWS SERVICE
16 FEB 2002

State government could avoid laying off hundreds if not thousands of employees if 45,000 AFSCME members would agree to a one-year wage freeze, Gov. George Ryan said Friday.

Ryan, who a day earlier had said the state budget plan he will outline Wednesday probably will include layoffs, said the chance to save jobs lies squarely with the American Federation of State, County and Municipal Employees.

"If they would take a freeze on their salary for a year, we probably wouldnt have to have any of these kinds of things," Ryan said. "Thats what weve tried to talk to them about, open their contract. Evidently, they dont want to do that."

AFSCME Council 31 members are scheduled to get a 3.75 percent pay raise July 1. Ryan wants to freeze salaries at their current levels and to change union health benefits to save money.

"AFSCME has refused to sit down and get serious about some negotiations," Ryan said. "They are the only union in state government that hasnt participated in any kind of savings. Unless they want to do to that, were going to have to close some institutions, and were going to have to lay some people off."

Council 31 officials said Friday that Ryan can forget about reopening the union contract.

"That is a flat no," said Council 31 deputy director Roberta Lynch. "Why does it keep coming back to state employees? For the amount of leadership he has given, we might as well not have a governor."

AFSCME has proposed its own plan for alleviating the states budget problems, including raising taxes on riverboat gambling proceeds and repealing a $100 million tax break passed a couple of years ago that primarily benefits six large corporations.

"He says its not politically viable to take on the riverboat gambling industry," Lynch said. "Those are his political cronies that he wants to protect. The only people he wants to punish are state employees."

If AFSCME or anyone else wants to persuade lawmakers to raise taxes in an election year, have at it, Ryan said.

"I dont think it is practical, and I dont think it will pass the General Assembly," Ryan said.

Ryan declined to say Friday how many layoffs he thinks he will need to balance the state budget, nor would he identify facilities he wants to close. He said the possibilities include closing additional prisons or mental health facilities or delaying the opening of new prisons. Already, Ryan has ordered the ancient Joliet Correctional Center and a portion of the Elgin Mental Health Center to be closed.

Ryan also called on all state employees under his control to take an unpaid furlough day. Negotiations between the state and AFSCME on a furlough program broke down last week, and now a temporary layoff program will be imposed on AFSCME workers.

Even as he is preparing to call for layoffs, Ryan said his budget plan will pledge 51 percent of new state revenues to education, as it has the past three years.

"Is it fair to cheat kids out of an education?" Ryan said. "If you want to talk about whats good for an economy, its an educated work force. During tough times, you dont cut back on education, and during good times, you dont have to."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

AFSCME should compromise

OUR OPINION
State Journal Register
15 FEB 2002

IT DIDN'T SEEM like that radical of an idea earlier this year when Gov. George Ryan announced that the state's dire financial situation would force him to ask state employees under his jurisdiction to take an unpaid day off work.

As with any large organization, salaries make up the bulk of expenditures. One of the few ways of slashing large amounts of money from the state expenditures is to target salaries. Ryan believed it would be better to at least try to save money via short layoffs for everyone rather than having to permanently layoff a smaller number.

But the American Federal of State, County and Municipal Employees has fought the plan from day one.

UNIONS EXIST to stick up for their employees, and AFSCME certainly has the right to battle Ryan over his furlough or temporary layoff plan. However, there is a big difference between having the right to do something and being right.

No law exists that says unions cannot compromise, but AFSCME seems to think there is. It's true that fingers can be pointed in many directions to place blame for the state's current fiscal situation. Ryan and the General Assembly were cautioned not to spend so freely during the good times and to save more money for the bad times.

What if the legislators and the governor had listened to Comptroller Dan Hynes and others who cautioned such restraint long before the bottom fell out? What if state reserves had been built up to much greater levels than the $250 million that was finally used to create a "rainy day" fund right before the financial thunderstorm hit?

What if legislative leaders had said no to tens of millions of dollars in pork barrel projects over the past few years?

THESE ARE questions, and the answers are still important for future planning. However, the answers won't solve the problem that exists right now. Ryan has made hundreds of millions of dollars in painful cuts already. Many throughout the state will feel the pinch of the shrunken state budget. The first cuts disproportionately affected the poor, the elderly and the disabled. They have no union to look out for their interests.

However, cutbacks in Medicaid affect more than just Medicaid recipients. Any of us who have medical insurance, and certainly any of us unfortunate enough to have the need for hospital services, will eventually feel the pinch, too. Hospitals have to recoup their costs somewhere.

The pain inevitably will be spread far and wide. How that pain is spread among state employees is largely up to their union. It would seem to us that if permanent layoffs can be avoided or at least mitigated by shorter, temporary layoffs, then the union should be working with rather than against the Ryan administration in implementing such a plan.

THE STATE IS required to bargain collectively furlough days with the union. After four negotiating sessions, the state negotiators said the talks were going nowhere on furloughs. After reaching an impasse on furloughs, Ryan believes he now has the right to impose temporary layoffs, which are not covered by the collective bargaining agreement.

Of course, the union disagrees. One AFSCME official said temporary layoffs are for use in emergency situations such as if there was a fire in a state office building that displaced workers. It's not an office building that's burning; it's all of state government. And AFSCME ought to help put the fire out.

Governor: Layoffs likely in new budget

By DOUG FINKE
STATE CAPITOL BUREAU
15 FEB 2002

Gov. George Ryan said Thursday the budget plan he will present to lawmakers next week "probably" will include layoffs.

Although he would not specify where the jobs would be cut or precisely how many, Ryan said it could be "several hundred, a few thousand."

"Businesses all across the country are (cutting jobs), and state government is no different," the governor said during an impromptu news conference.

Ryan will deliver his budget proposal for the 2003 fiscal year that begins July 1 to lawmakers in a speech Wednesday. It's a budget that will be based on the smallest revenue growth in a decade, prompting widespread speculation that it will call for slashing state agency budgets.

Last month, Ryan's budget director, Steve Schnorf, told The State Journal-Register that the next budget is "going to be bloody." Asked Thursday whether the budget will be bloody, Ryan said, "I don't know what that means."

"There's going to be probably some layoffs," he said. "We may well have to lay off and close more institutions. If that's what you're talking about bloody, then I guess it's probably going to be bloody."

Ryan placed some of the blame on the American Federation of State, County and Municipal Employees, which represents 45,000 state workers. The state and the union had been negotiating over having employees take an unpaid furlough day to save an estimated $8 million. State negotiators declared the talks at an impasse last week.

"If they don't want to have a lot of layoffs and some (facility) closures, they ought to come sit down and talk with us," Ryan said.

Asked what "a lot of layoffs" meant, he added: "It could be several hundred, a few thousand. Our revenues are down. We've got to balance the budget."

Ryan has insisted that layoffs will be a last resort for balancing the budget, but he has never ruled them out. Saying they will probably be part of his spending plan is the clearest sign yet that they are under serious consideration.

The layoffs Ryan discussed are separate from the temporary layoffs the state wants to impose as an alternative to mandatory one-day, unpaid furloughs that are opposed by the union. The temporary layoffs are also single, unpaid days off from work for AFSCME members.

Other employees under Ryan's control - both nonunion and members of other unions - are taking furlough days.

"Everyone in the state pretty much cooperated with the furlough days except AFSCME," Ryan said.

AFSCME officials reacted angrily.

"He is not cooperating in coming up with real solutions to the problem," said AFSCME Council 31 deputy director Roberta Lynch. "I think it is safe to say Gov. Ryan has one of the most mindless, irresponsible approaches to a budget crisis in the country. All he has talked about is chop, chop, chop."

AFSCME is filing both a grievance and an unfair labor practice charge against the state to block the temporary layoffs.

On Wednesday, the union persuaded a Grundy County judge to issue a temporary restraining order to stop another of Ryan's budget-cutting measures - privatizing food service operations in prisons. The state believes it can save $20 million a year by having private companies supply food to prisoners. AFSCME believes many of the 800 union workers who are now employed in prison food service will end up out of work if the switch is allowed.

On Thursday, the House Government Administration Committee approved House Bill 3714, which would prevent food service in state prisons from being privatized. The bill now goes to the full House. To become law, it must also be passed by the Senate and signed by Ryan.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Injunction to block proposal to privatize prison food service

By DOUG FINKE
STATE CAPITOL BUREAU
14 Feb 2002

A Grundy County judge has put a temporary stop to Gov. George Ryans plan to privatize food service operations at Illinois prisons.

Judge Lance Peterson will issue a temporary restraining order today preventing the hiring of private contractors to serve food in state prisons.

"It is a very good sign the judge has put the brakes on this process," said Roberta Lynch, deputy director of Council 31 of the American Federation of State, County and Municipal Employees, which contends privatization will cost hundreds of union workers their jobs. "This will give us time to make our case to the courts and the General Assembly."

"Im sure were planning to appeal the ruling," said Sergio Molina, spokesman for the Department of Corrections.

However, Molina said a final decision would hinge on what Peterson says in his written order.

As part of his effort to cut state expenses by $500 million last fall, Ryan called for the privatization to save the state $20 million when it is in place for a full year.

Bids from vendors interested in taking over the food operations were to be opened Friday, though Corrections believes the bids still can be evaluated, even if contracts cannot be awarded immediately, Molina said.

About 800 AFSCME members are involved in the prison commissary operations, Lynch said. Although the Ryan administration has said it would try to find other jobs for the displaced employees, AFSCME believes most of them will end up out of work.

AFSCME filed suit in Grundy County, in northern Illinois, contending Ryans plan violated state law prohibiting the privatization of certain prison operations. While contractors can do some prison work, such as providing medical service, the food service cannot be privatized because of security issues, the union said.

With the temporary restraining order in place and further hearings in Grundy County before a final decision is issued, the union is continuing its push for a law solidifying its contention that the food service cannot be run by private companies.

That bill is scheduled for a hearing in a House committee Wednesday.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Union to fight states layoff plan

Temporary leaves scheduled to start on March 15

By DOUG FINKE
STATE CAPITOL BUREAU
14 Feb 2002

The largest state employees union said Wednesday it will try to stop temporary layoffs directed at its 45,000 members.

Council 31 of the American Federation of State, County and Municipal Employees said it will file both an unfair labor practice charge and a formal grievance to prevent the layoffs scheduled to start March 15. If neither is successful, the union will go to court.

"The only rational course is to return to the bargaining table and negotiate in good faith," said Council 31 deputy director Roberta Lynch.

In November, Gov. George Ryan said he wanted all workers under his control to take an unpaid furlough day, saving an estimated $8 million, to help alleviate state governments budget crisis.

AFSCMEs contract requires furloughs to be collectively bargained, and four negotiating sessions have been held over the past few weeks. However, the Department of Central Management Services, the states personnel agency, said last week the talks were at an impasse.

That meant temporary layoffs, which are similar to furlough days in that employees take an unpaid day off and then return to their jobs. However, the state does not have to bargain with the union over temporary layoff days.

AFSCME contends its contract is being violated because the temporary layoffs will be across-the-board rather than by seniority. Its grievance would send the issue to immediate arbitration.

The unions unfair labor practices charge argues that what the state is calling temporary layoffs is just another name for furloughs. Lynch said temporary layoffs were intended to deal with emergency situations, such as a fire in a state office building in which workers might have to be sent home for several days while relocation arrangements were made.

CMS spokeswoman Judy Pardonnet said Wednesday the agency has not seen either union filing and would not comment on them.

The agency has notified the union that temporary layoffs will begin March 15 and stretch through the end of the fiscal year, June 30. Union employees are being given forms on which they can list three possible dates for their temporary layoff.

"We are trying to ensure their preferences will be taken into account," Pardonnet said.

AFSCME executive director Henry Bayer sent a memo to union members urging them to "use their own discretion in deciding whether to complete the form that is being distributed."

"... However, there is no way to predict how management will respond if large numbers of employees at the same work location choose the same three days," the memo continues.

Bayer also suggested that employees include a prepared statement at the bottom of the form that management has bargained in bad faith and that "budget cuts should not be targeted at state employees."

Pardonnet accused the union of engaging in stalling tactics by urging workers to ask for the same days off.

"We attempted to work out voluntary furlough days with AFSCME on four occasions," Pardonnet said. "When it became obvious that the talks were at an impasse, we made the decision to impose temporary layoffs. Now, the union appears to be trying to obstruct that action."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Wary of risk

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What would happen if a major,for-profit company like Proctor & Gamble decided to get into the security business? I mean, what if it decided to organize and build a division large enough to provide security to cities the size of
Jacksonville, offering police protection at a cheaper cost than what the city pays its present police force.

How would you, the public, feel about that?
Would you have confidence in the abilities and integrity of a security force whose employees get paid $6 an hour to protect and serve the community? Do you think that these employees for $6 dollars an hour are going to do their job aggressively and proficiently?
Are they going to put their lives on the line every day to ensure your life, your property and the safety of the entire community is well protected? Would you risk your life for $6 an hour? I don't think you would, and that is why police officers are paid an amount that reflects some relationship to the responsibility the job demands.
Although I think the pay is lower than it should be for what they might lose - their lives over something as simple as a traffic stop.
The public would not want a privatized police force. We would rather have a security force that is given enough incentive to do the job, enough incentive that they want to make a career from the work. Similarly, I do not believe that people want their prisons privatized either. Privatized employees work for wages that in no way reflect the level of trust or confidence needed

to maintain the high standards of security that are expected to be upheld in our prisons.
The food supervisors at these institutions enforce and maintain disciplinary, sanitary, security and custodia1 regulations. They report infractions of rules by inmates and employees to superiors for disciplinary action, and they inspect inmates for contraband.
These kinds of responsibilities cannot be entrusted to just anyone off the streets who needs a job, because it takes a lot more than just wanting a pay check. It takes a willing desire and a well groomed, security-conscious mind to be effective in the type of environment, an environment where there is no such a thing as a second chance.
Please support the families and your friends in the , Department of Corrections, because replacing the prison's food supervisors wjth private vendors will lead to something much bigger. Do not let that toe in the door fool you, ~use it " is attached to a giant waiting on the other side.
Jacksonville resident Art Wilson's views appear each Wednesday. He is a corrections officer at the Jacksonville Correctional Facility.

Furloughs will not affect state workers' pensions

By DOUG FINKE
STATE CAPITOL BUREAU
12 Feb 2002

Furloughs and temporary layoffs will have no effect on most state workers' pensions, the head of the State Employees Retirement System said Monday.

SERS executive director Michael Mory said the unpaid days off could have a small impact on pensions of workers who plan to retire soon, although legislation has been introduced to offset that.

Thousands of state employees are required to take an unpaid day off between now and June 30 to help the government cope with a massive budget shortfall. The state will use both furloughs and temporary layoffs to save an estimated $8 million this fiscal year.

Many of those workers are worried that the unpaid days off will affect their pensions, which are based on time served and average salary earned.

For the vast majority of workers, however, there is nothing to worry about, Mory said.

Service credit (months on the job) isn't affected, so long as a person works 15 or more days in a month, Mory said. At least for now, the state is asking for only one unpaid day per worker.

"If you work 15 or more days in one month, you get a full month's credit," Mory said. "It isn't much of a factor for 90 percent of the people."

An exception might be part-time workers who are working just 15 days in a month to begin with.

The furloughs and temporary layoffs could affect their earnings credit (the salary component of the retirement formula). However, the only people affected are those planning to retire within the next four years.

"You are talking about a small percentage of the (employee) population," Mory said. "For younger employees, there will be no impact."

Most employees' pensions are based on the average salary they earned during the last four years with the state. An unpaid day off will affect that average. A worker with 25 years on the job and an average retirement salary of $45,000 would get a pension of about $1,666 a month, Mory said. The furlough day could knock $1.50 to $1.75 a month off that.

If additional furlough days are ordered, that amount would increase.

Sen. Larry Bomke, R-Springfield, doesn't think workers' pensions should suffer. He's introduced Senate Bill 1779, which would ensure that older employees' pensions are not affected by furlough days.

"I talked to Mike Mory, and we figured it would not be much of a cost to the system to pick that up," Bomke said.

The legislation was only recently introduced and has not been assigned to a committee.

All workers under Gov. George Ryan's control were directed to take an unpaid day off to save the estimated $8 million, but the largest state employees union - Council 31 of the American Federation of State, County and Municipal Employees - demanded to negotiate the issue.

Friday, the state Department of Central Management Services said talks are at an impasse and that temporary layoffs will begin in about a month. Temporary layoffs are similar to furloughs in that employees take an unpaid day off and then return to their jobs. However, the state is not required to collectively bargain temporary layoffs with the union.

Council 31 said last week it was weighing its options. Union representatives did not return telephone calls Monday.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Temporary layoffs coming

Some may lose more than one day of work

By DOUG FINKE
STATE CAPITOL BUREAU
09 Feb 2002

State government will begin temporary layoffs among 45,000 union workers after efforts to reach agreement on a furlough plan failed.

The Department of Central Management Services - the state's personnel agency - will ask each agency under Gov. George Ryan's control to develop plans to have union employees take unpaid days off. It is unclear when the layoffs will begin.

Temporary layoffs are similar to furloughs in that employees forfeit a day's pay and then return to their jobs. However, because of the way layoffs work, union officials concede it is possible that less-senior employees could be forced to take more than one unpaid day off. A furlough plan would have been across-the-board.

CMS and Council 31 of the American Federation of State, County and Municipal Employees have been negotiating over unpaid furloughs since Ryan said he wanted each employee under his jurisdiction to take an unpaid day off as a way to deal with the state's budget crisis.

"We've reached an impasse," said CMS spokeswoman Judy Pardonnet. "We met on four different occasions. Every single time they came back, they had more strings attached."

Council 31 deputy director Roberta Lynch said late Friday afternoon that the state had not notified the union of any temporary layoffs.

"We have not received any word of layoffs," Lynch said. "It is premature to respond until we get notified. We haven't decided what our course of action is."

She did say the union is willing to continue talks.

"They effectively walked away from the table," Lynch said. "We are very disappointed they did that."

Pardonnet said all agency directors will be asked to submit plans to CMS for carrying out temporary layoffs, taking into account that operations must continue. A date for the layoffs to begin hasn't been determined, but it could be in little more than a month.

About 45,000 AFSCME members work in agencies under the govervnor's control.

The state prefers saving the equivalent of one day's pay from each of them, but under temporary layoffs, less-senior employees could lose more while workers with more seniority could escape without forfeiting any salary. Lynch said that's just one of the issues still to be worked out.

"This is not a simple issue," she said.

Non-union workers also were asked by Ryan to take unpaid furlough days. Pardonnet said some of those employees have begun to take their days off, but she could not say how many. Also, she said every other union representing smaller groups of Ryan employees agreed to furloughs.

"The other unions have already totally rolled up their sleeves," Pardonnet said. "The only major bargaining unit not to agree is AFSCME."

Lynch said there is a simple reason for that.

"No other union is being threatened with the (permanent) layoff of over 1,000 members," Lynch said. "Those other unions are in a very different situation."

Ryan wants to privatize food service operations in state prisons and mental health facilities. He also is closing the maximum-security prison in Joliet and a portion of the Elgin Mental Health Center to save money. The governor's office has said it will try to find other state jobs for workers affected by the cuts, but AFSCME is skeptical.

AFSCME maintained that mandatory furloughs were subject to collective bargaining, and union representatives have been talking with CMS officials for the past month. The union came into the talks wanting a guarantee of no layoffs, no facility closings and no privatization of services, Pardonnet said.

Lynch said those demands are reasonable.

"We don't want someone to take a furlough day and then get a layoff notice when they get back," she said.

During a bargaining session Thursday, Pardonnet said, the union added a demand that money saved through furloughs be used to fill jobs left vacant during the hiring freeze imposed by Ryan last fall.

However, Lynch said the union only wanted assurances that money saved from furloughs wouldn't be used to hire more managers or political appointees. If the money is used for jobs, she said, it should fill rank-and-file positions.

"They never made a counter-offer," Lynch said.

AFSCME also pushed for a voluntary furlough program in which employees could take an unpaid day off but would not be forced to. The union thinks some workers would voluntarily take more than one unpaid day off and compensate for workers who took none.

"Whether it would get to 45,000 days, I don't know," Lynch said. "We think a lot of people will have done it."

CMS was willing to consider a voluntary plan, but insisted the union guarantee 45,000 work days would be saved by it.

While the state prepares for temporary layoffs, talks will continue with the union on other money-saving ideas, Pardonnet said. Some of those ideas were raised at a meeting Thursday between Ryan and AFSCME leaders. However, Pardonnet said those talks are separate from the furlough/temporary layoff issue.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Judge delays decision in privatization lawsuit

February 8, 2002

COUNCIL 31 ATTORNEYS APPEARED BEFORE JUDGE PETERSON on Feb. 7 in Grundy County after a LaSalle County judge recused herself and the case was reassigned.
Peterson indicated that he had questions on two key legal aspects of the case. The first was whether the Private Correctional Facilities Moratorium Act does extend to dietary and commissary functions, as the union contends.
The second is whether he should act on an emergency basis, since the privatization of food services at Sheridan CC, in LaSalle County where the suit was filed, is not likely to occur for at least six weeks. To address the judge's concern, AFSCME is taking steps to add plaintiffs who will be more immediately impacted.
A decision is expected on Wednesday, Feb. 13.

AFSCME to Ryan: We won't reopen contract

But union will consider other options to save state money

By DOUG FINKE
STATE CAPITOL BUREAU
08 Feb 2002

Representatives of the largest state employees union told Gov. George Ryan Thursday that they will not agree to reopen their contract to avoid possible layoffs.

However, the American Federation of State, County and Municipal Employees Council 31 said it has some other ideas for saving money, and Ryan said he's willing to listen.

Ryan and Council 31 executive director Henry Bayer met in the governor's Capitol office for a little over an hour Thursday, with Ryan asking the union to consider revisions to its contract that would allow the state to delay scheduled pay increases or change the health insurance.

"We don't agree on reopening the contract," Bayer said afterward. "We had a productive meeting. We talked about some general areas where there might be some cost savings that the state would realize."

Bayer said one of those areas was employee health care, although he would not discuss specifics.

"We think it is possible for our members to get the same benefits at the same cost, but the state could do it at a lower cost," he said. "We think the state could be a smarter purchaser of health care."

Ryan said state officials are willing to discuss any proposals with the union - discussions that will get under way today.

"They are concerned about (prison) privatization and layoffs, as I am," Ryan said. "We want to avoid that in any way possible. They're going to have to give in some fashion if they want to participate."

So far, though, the union has refused to give on anything.

The governor in November called for all state employees to take an unpaid day off that would save $8 million. AFSCME refuses to accept a mandatory furlough plan, preferring one that's voluntary. State officials are skeptical that enough workers will voluntarily take an unpaid day off to save significant money.

If the union doesn't agree to making them mandatory, Ryan could order temporary layoffs, which would fall mostly on workers with the least seniority, as opposed to the across-the-board furloughs.

Ryan said Thursday that no money-saving idea has been taken off of the table. Bayer acknowledged temporary layoffs are a possibility.

"They've indicated that at some point they may do that," Bayer said. "They haven't informed us formally that that's their intention."

Ryan wants to privatize food service operations in prisons and mental health facilities, which will save an estimated $20 million for a full year. The union strenuously opposes privatizing prison food service, and legislation is pending to block it.

The governor indicated he might be willing to back off of the privatization idea if the union makes other concessions. He noted that public employee unions in Iowa agreed to a temporary wage freeze to help avoid layoffs.

"I think it's probably going to be on the table," Ryan said.

AFSCME is in the middle of a four-year contract. Union workers got a 3.75 percent pay hike last July 1 and are in line to get the same this July 1. A 4 percent raise is scheduled for July 1, 2003.

AFSCME has also talked about various tax hikes its members think will solve the state's budget problems, ranging from rescinding business tax breaks passed previously to increasing taxes on riverboat casino profits.

"I don't know if the General Assembly will be in favor of them or not," Ryan said.

However, few observers think lawmakers will pass anything that can be construed as a tax hike during an election year.

Ryan, who is not running for re-election, will present his budget plan for the fiscal year that starts July 1 in two weeks. There is the possibility he could propose hundreds or even thousands of layoffs because of the state's ongoing financial problems.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Ryan says state workers should open contract

Governor grasps to fill budget hole

Nicole Ziegler Dizon
Associated Press
07 Feb 2002



CHICAGO - Gov. George Ryan said Wednesday that he wants unionized state workers to "open their contract" to help fill a gaping hole in the illinois budget But those workers, already angry over the governor's plan to privatize food service at lllinois prisons and mental health institutions, don't plan to give him any concessions.
"We have no intention of opening up the contract, " said Marrianne McMullen, a spokeswoman for the American Federation of State, County and Municipal Employees. "It's just not necessary, and we worked hard to , negotiate a good contract " Ryan said he plans to meet Thursday in Springfield with Henry Bayer, director of AFSCME Counci1 31.
"I want to open their contract and talk about some things that will help us keep our budget balanced," Ryan said. "Everybody's got some pain in this budget problem, Everybody has taken a hit, and we think that they should contribute their part as well." Hundreds of AFSCME members protested at the state Capitol on Thursday, some comparing Ryan to Osama bin Laden for his privatization plan, which would cost union members jobs. The union has sued to keep the changes from taking effect.
The Ryan administration estimates privatizing food services will save $2 million this fiscal year and about $16 million annually in future years. Ryan also wants to close a Joliet prison, which the union opposes.
The Illinois House voted l13-0 for a resolution opposing Ryan's privatization plan. Rep. Tom Dart, D-Chicago, called the idea "stupid and pigheaded."
Ryan criricized the House for endorsing the resolution without coming up with alternatives to fix the state budget House members have refused to pass legislation that would give the governor authoritY to make broader cuts in the current budget 'They all say don't cut: anything, but they haven't come up with any answers about how we balance the budget," Ryan said.
McMullen said the union and other groups have come up with plenty of ways to fill the budget hole. They include eliminating an unspent pot of money for "member initiatives," which lawmakers use for pet projects in their districts, and more aggressively seeking discounts on prescription drugs.


Union protests prison plans

Against privatizing food services, closing Joliet

By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
07 Feb 2002

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A rally Wednesday at the Capitol drew as many 1,000 state employees protesting Gov. George Ryan's plans to privatize operations at all prison cafeterias and commissaries and close the Joliet Correctional Center.

Council 31 of the American Federation of State, County and Municipal Employees organized the rally. The union represents prison employees and estimates the privatization and closing will affect hundreds of workers.

Ryan ordered the moves in November as part of $485 million in budget cuts. His office estimates the savings at more than $6 million, with the food-service privatization accounting for $2 million.

AFSCME president Henry Bayer said bringing low-paid employees with less training than Department of Corrections workers into supervisory contact with serious criminals poses a security risk. He mentioned the privately run Connally State Prison in Texas, which saw seven inmates escape in December 2000, triggering a monthlong manhunt during which two police officers were killed.

Corrections spokesman Sergio Molina said the DOC already spends $4 million on private food-service contracts, which were initiated almost 20 years ago. The maximum-security inmates at Joliet constitute the largest block of prisoners served by the contracts.

Union spokeswoman Marrianne McMullen said prisons have hosted touring representatives of private firms seeking to bid for the food-service contracts. Those visits have drawn union pickets.

Ryan said last week he would not reassess the cuts, which do not require legislative approval. His statement followed a lawsuit AFSCME filed in La Salle County Circuit Court to block the privatization. The suit cites a state law that bars privately run prisons.

Several state representatives, most of whom represent districts with prison jobs, attended Wednesday's rally to show support or speak on behalf of the union's efforts.

Afterward, the union members entered the Capitol and Stratton buildings from four entrances in search of their representatives' offices. The legislators were not yet in session and many found themselves hosting protesters who sought their support.

Rep. Bill Black, R-Danville, said he shared his visitors' concerns because of his district's experience in 1999. CPSI, a Mobile, Ala., firm, pulled out of a private health-care contract at Danville Correctional Center. The firm still owes nearly $400,000 to area health-care providers and 401(k) account funds to local workers it subcontracted.

The Danville prison was without a backup plan at that time, Black said, and he has sought in vain for confirmation that Ryan's plan considers such a contingency.

House Bill 3714, sponsored by Rep. Gary Hannig, D-Litchfield, would specifically block private vendors from running prison food service. That bill was assigned Tuesday to the House State Government Administration Committee, which did not take up the legislation in its meeting Wednesday. The deadline for House bills to pass committees is Feb. 22.

"This plan is a vendetta by (Department of Corrections director) Don Snyder against his own employees," AFSCME associate director Roberta Lynch said at the rally.

Molina said the state would seek to avoid layoffs and find displaced workers other prison jobs.

In the House Wednesday, lawmakers from both parties passed a non-binding resolution opposing Ryan's plans. They cited concerns about security, the money-saving potential of the proposed changes, and not being consulted by the governor.

The resolution passed 113-0 but not without some partisan sniping as Republicans accused the Democratic majority of failing to pass an earlier bill that would have given Ryan broader budget-cutting authority and possibly averted the need for privatization.

Several lawmakers, however, pointed to Ryan's privatization proposal as a key reason for opposing that bill.

Jeff Druchniak can be reached at 544-2819 or jeff.druchniak@sj-r.com.

HUNDREDS PROTEST STATE PRISON PLAN: CORRECTIONS WORKERS RALLY AGAINST PRIVATIZATION EFFORT

BY RICHARD GOLDSTEIN
SPRINGFIELD BUREAU
[Wed Feb 06 2002]

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SPRINGFIELD -- Prison workers from around Illinois converged Wednesday on the Illinois Capitol to protest privatization plans for the state's prisons, which they said would make their job dangerous and would destroy jobs.

Among the signs waived in front of the Capitol by demonstrators estimated at 1,000 by the Secretary of State Police was one that read "Osama Bin Ryan Employee Terrorist."

Paul Graves, a guard at the Pinckneyville Correctional Center, said plans to privatize food service and commissary service, through which prisoners can buy things like clothing and radios, is doomed to failure.

"It won't work. The only thing it's going to lead to is officers getting hurt, inmates getting hurt," he said. "We're going to lose control. It's going to go back to the old days when the inmates run the joint."

Tony McCubbin, president of the American Federation of State, County and Municipal Employees local organization at the East Moline Correctional Center, agreed.

"In the kitchen area you have flammable material, chemicals, knives, any type of tools you can imagine in a large-scale kitchen," said Tony McCubbin, president of the American Federation of State, County and Municipal Employees local at the East Moline Correctional Center. "These are all accounted for by security, by food supervisors, professionals, people that are trained in this area, not by people that are getting paid six bucks per hour that have no training whatsoever."

But Sergio Molina, spokesman for the Illinois Department of Corrections, said there is no risk from contracting out the work. He said employees of firms that get contracts to do the work would undergo background checks, drug screening and orientation before starting work.

"That's what anybody who has been hired outside the realm of security has to go through. That's not going to change," Molina said. "The suggestion that because we're contracting services that we're going to give up our responsibility to have safe and secure facilities is ridiculous."

The department estimates that privatization of the services would save about $2 million for the rest of the current fiscal year, which ends June 30, and between $12 million and $20 million in future years.

Later Wednesday, political opposition to the idea was on display in the Illinois House where members voted 113-0 to approve a non-binding resolution opposing privatization.

"It would jeopardize the security of our correctional system as we know it today," said state Rep. Charles A. "Chuck" Hartke, D-Teutopolis, who sponsored the resolution.

State Rep. Gary F. Forby, D-Benton, said cuts should come from well-paid administrators in the Department of Corrections rather than from the union rank-and-file. "Working men and women pay for this budget and that's not right," he said.

State Rep. Mike Bost, R-Murphysboro, said privatization would hurt current Department of Corrections employees. "Each one of those people who are proposed to be let go have children, have families to support."

richard.goldstein@lee.net or (217) 782-4043.

Ryan clearly incorrect

Art Wilson
Jacksonville Journal Courier
06 Feb 2002

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The cards have been dealt for the privatization gamble, and George Ryan has placed his bet, a bet that will cost state correctional employees their jobs. Right now, it comes down to one of four things:


Who has the better hand, who plays their cards right, the luck of the draw or, perhaps, the courts will follow the letter of the law that prohibits privatization of security jobs in prisons and correctional centers.
The state's appointed duty is to uphold the law, is it not?
AFSCME union leaders and Mr. Ryan are rolling the dice in this winners-take-all craps game. But we all know that Mr. Ryan has been playing with loaded dice ever since he came to office, and this has given him an advantage throughout most of his term.
But that is exactly what all this is: a bunch of crap. I have said it before, and I'll say it again. Why do the citizens of Illinois and the rest of this nation always end up being the ones to pay for political waste?
Every time local, state or government leadership makes a mess, we, the people, have to clean it up.

If the people who the citizens elect have to come back to the voters and take from us to fix their messes, then why don't we privatize their jobs and put professional accountants in their place? At least they will be accurate about were the money is going.
The correctional food supervisors and commissary staff have years of service and have proven their worth as part of the function that make's the entire Department of Corrections work. To remove them would be taking away a vital link in the chain of special trust, confidence and vitality. People working in the different departments share job knowledge and the confidence of working with people they have known for years.
These people have families, homes, bills to pay, d~bts they accrued at a time when they could afford them. If they should lose their jobs, th~ debts just won't dissolve, and I am sure that Mr. Ryan is not

going to absorb them. I wonder. How call the needs of the state be greater than the needs of the people, or how can the needs of the nation, for that matter? Our government has promised millions upon millions of dollars to h<'lp Afghanistan get on to the road to recovery. What have they promised us lately?
Mr. Ryan and his crew need to get into those nic(' cars, drive to Washington, D.C., and do somp picketing outside the White Housp to bring home Illinois' fair sharp of assistance. How about a little Illinois first for real this time
Privatization might save a little money, but not much when all the costs are figured in. It is certain to compromise security and create a need for increased security in places that none was needcd before.
Correctional officers will now need to watch inmates and the privatized employees.
When someone fires or lays off employees for the purposes of hiring others to save money, then the quality of the product they are producing will decreased. We in corrections cannot afford to be lacking one bit in the quality of security that we provide and the level of security that we are entrusted to provide our communities.
We all know that we have been wronged over these past few years, Republicans and Democrats alike, so let's not forget that we are first people, and we should care about each othcr first before our party.
So please, let your voices be heard. Call your representatives and senators.
Heck, call Mr. Ryan collect.
We can afford it. It's taxpayers' dollars, so who cares, right?
We do Mr. Ryan.
Jacksonville resident Art Wilson's views appear each Wednesday. Mr. Wilson is a corrections officer at the Jacksonville Correctional facility.

Governor keeps LDC open

Developmental center to be much smaller, work differently

By ADRIANA COLINDRES
STATE CAPITOL BUREAU
05 Feb 2002

Gov. George Ryan announced Monday that Lincoln Developmental Center will stay open but as "a very different place from what it is today."

Under Ryan's plan, LDC eventually will house just 100 people with developmental disabilities. They will live in small group homes to be constructed on the LDC grounds, rather than in the present ward-style facilities.

It wasn't clear what would happen to the existing buildings.

The revamped LDC will employ about 200 workers, meaning the work force will be slashed by about 400. Ryan said those displaced workers could find jobs at other state-run facilities, such as the Jacksonville Developmental Center, or choose to retire.

LDC has been under fire because of questions about the quality of care it provides to residents. Last fall, inspectors cited the 124-year-old facility for potentially dangerous violations. LDC then temporarily lost the Medicaid funding that makes up about half of its yearly budget.

In January, an administrative law judge in Chicago began listening to arguments in a series of hearings. He is expected to rule later in the year on whether LDC should be decertified and thus become ineligible for Medicaid funding.

Ryan said Monday that deciding whether to close LDC proved "very difficult." In the end, he said, his solution "will create a safer and more manageable situation for everybody."

The governor cited LDC's long history of problems, including three deaths attributed to inadequate care and supervision of residents.

"I cannot and will not keep the children there in a potentially harmful situation," he said. "It's impossible for us to maintain the Lincoln center as it has been in the past. And it's all too obvious that the federal government absolutely won't let us do it."

Under Ryan's plan:

The Illinois Department of Human Services, which runs LDC, will propose to federal officials a plan to downsize the facility to serve 100 residents. That will mean moving 159 residents to other care settings, starting in April. Ryan earlier ordered the transfer of more than 100 LDC residents.

DHS will ask the federal government to suspend the hearings on LDC's decertification.

The state will proceed with plans to build four small group homes on the LDC grounds. Each home would accommodate 10 residents. The current state budget already includes $2.5 million for that project, and the homes are expected to be ready for occupancy next year.

DHS will develop long-range plans to build six additional group homes on the LDC grounds. A total of 60 people could live in those homes by fiscal year 2005 or sooner, state officials said.

DHS will work with the private sector to build new "community integrated living arrangements," or CILAs, away from the LDC grounds but in nearby locations, including Logan County and perhaps Mason County. Ryan said the state has pledged $3.4 million to develop the new CILAs, which would be available for LDC residents.

Ryan's decision drew an angry reaction from the union that represents LDC employees.

"The governor's announcement is filled with vague promises and half-truths - not a sound basis on which to construct a future for individuals with severe developmental disabilities," said Henry Bayer, executive director of Council 31 of the American Federation of State, County and Municipal Employees.

"Every knowledgeable and candid person involved in this situation knows that there are not appropriate alternative placements for 159 LDC residents," Bayer said in a news release. "And the governor's vague promise to build more CILAs is meaningless for the many LDC residents who cannot function well or be adequately protected in such settings."

Bayer said AFSCME will "fight on in the courts and in the state legislature to keep Lincoln Developmental Center open and fully operational."

Reaction was mixed among others who have closely followed the LDC saga.

"It's better than we had thought. We had thought (Ryan) was going to close it completely," said Phyllis Clemens of Rochester. She and her husband, Bob, have a daughter who lives at LDC.

The Clemenses were among the parents of LDC residents who traveled to the Capitol Monday to hear Ryan's decision. They weren't allowed in the governor's office for his news conference, but they later met privately with DHS Secretary Linda Renee Baker.

"I think that was terrible that we, as parents, didn't at least get to hear this firsthand," said Earnest Jones of Springfield, whose son lives at Lincoln.

Jones and the Clemenses are members of the Lincoln Parents Association, which favors keeping LDC open.

Some advocacy groups, including The Arc of Illinois, have pushed for LDC's closure.

"I'm convinced the governor thinks this is a good move," said Tony Paulauski, the group's executive director. "I don't agree with his decision. It's not an easy decision for him to make."

"I think that Lincoln will be problematic for however long it stays open," Paulauski added.

"While we are disappointed somewhat that the governor isn't closing Lincoln, we see this as a step in the right direction. We see this as a virtual closure, if not an actual closure," said Don Moss, executive director of United Cerebral Palsy of Illinois. "Once you downsize it to 100 people, we don't have far to go before it becomes closed."

Doug Finke of the State Capitol Bureau contributed to this report. Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.

Governor should keep LDC open

OUR OPINION
STATE JOURNAL REGISTER
03 JAN 2002

GOV. GEORGE RYAN has been faced with some difficult decisions during his tenure, but few will prove any tougher than the decision he must soon make on whether or not to shutter the Lincoln Developmental Center.

At the center of this controversy is the well-being of about 250 residents of LDC. Most of these people are affected with profound developmental disabilities.

RYAN HAS MADE it clear that his decision will be based on what he believes will provide the best life for the current LDC residents.

"I'm trying to be fair and objective about it. I have one concern about Lincoln Developmental Center: Are the people there getting the kind of treatment that they need to have? We've had three deaths there already from various reasons, and I'm very concerned about that," said Ryan.

We believe Ryan is sincere in putting the residents first. And we certainly concur with his criteria. The question is how - in such a politically, emotionally and economically charged atmosphere - does one arrive at an objective decision on what is best for the residents?

We believe such a decision can be reached, and we believe that decision involves keeping Lincoln Developmental Center operational.

THAT CONCLUSION became more apparent last week after Copley New Service reporter Adriana Colindres revealed that LDC is not out of line with other state facilities concerning reports of abuse and neglect over the past 10 years. In fact, of the nine state institutions for the developmentally disabled, LDC was smack in the middle for the number of reported abuse and neglect incidents.

Obviously, one such incident is too many. But if the state is relying on the quality of care given and the safety of residents, these numbers would indicate that four other facilities ought to be given serious consideration for closing as well.

Of course, the decision is more complicated than that. Three people have died at LDC since 1988 and the governor himself was disturbed by the level of resident care he saw during a recent surprise visit. Keeping LDC open doesn't mean keeping the status quo.

THE LINCOLN FACILITY lost its Medicaid funding in late November. It has since been reinstated, but the LDC remains on thin ice. Given the dire economic forecast for the upcoming state budget, if the federal funding is lost again, the state may have no choice but to close the facility and transfer its residents elsewhere. Medicaid funding of $17 million makes up about half of LDC's total budget.

Ryan may need to further reduce the size of LDC in order to bring the facility into full compliance so that its Medicaid funding is secure and its residents are safe and well cared for.

We do not doubt the sincerity of the advocacy groups who urge that LDC be closed. Illinois has not moved as quickly as some states to shutter larger facilities in favor of smaller group homes. However, moving too quickly without regard for proper funding could spell disaster for profoundly disabled residents. It takes a special group home, and specially trained staff, to deal with people as severely disabled as some of those at LDC. Properly staffed group homes are not cheap to run.

FINALLY, THE parents of the LDC residents ought to have a voice in this matter, and their opinion should be given serious consideration. If parents believe their son or daughter is not receiving adequate care at LDC, a transfer should be provided.

But the truth is, parents are not asking for transfers. They have spoken loudly and unanimously in saying, "Keep LDC open."


Some state officials benefited from Enron campaign donations

By JEFF DRUCHNIAK
STATE CAPITOL BUREAU
2 Feb 2002

Some of the millions of dollars Enron Corp. lavished on nationwide campaign donations found its way to Illinois state officials.

The Houston-based energy-trading company donated nearly $27,000 to the campaigns of Illinois legislators, constitutional officers and government-related political action committees, or PACs. The donations date back to 1997, but more than two-thirds are from the 2000 election cycle or later, and they continued until within months of Enrons December bankruptcy filing.

Enron targeted Senate President James "Pate" Philip, R-Wood Dale, with more than half the money. That included $10,000 to the Republican State Senate campaign committee, which Philip controls; $1,950 to Philips own campaign fund; and $1,480 to the DuPage County Republican Central Committee, which Philip chairs.

Philips office did not return requests for comment Friday.

Once one of the nations highest-revenue companies, Enrons stock price collapsed in a matter of weeks last fall amid allegations of fraudulent accounting practices and years of inflated profit reports. The companys bankruptcy left thousands of employees out of work and deprived of their retirement investments that were dominated by Enron stock.

Enron gave $1,500 to the campaign and leadership funds of House Minority Leader Lee Daniels, R-Elmhurst, since 1998.

Daniels spokesman Gregg Durham said Daniels would withdraw "every penny" and was trying to find out how to donate it to a fund set up to benefit laid-off Enron employees. The company temporarily barred those workers from unloading the Enron stock in their 401(k) plans as its value plummeted.

"Shy of that, were giving it to a charity," Durham said. "Were not giving it to the company, I can tell you that."

Attorney General Jim Ryan, now a candidate for governor, received $1,000 for his 1998 re-election campaign. Ryan returned the money to Enron on Jan. 22.

"He felt uncomfortable using the money in light of what was being done to their employees," his spokesman, Dan Curry, said.

Gov. George Ryan also received a $1,000 contribution but does not intend to return the money.

Ten other state legislators three Democratic and seven Republican received amounts ranging from $200 to $1,500. Among them was former state Rep. Tom Ryder, R-Jerseyville, who resigned his seat in November to work for the Illinois Community College Board. Ryder received $250 in 1999. He said he had not heard about the laid-off employees fund.

The others were Sen. Kirk Dillard, R-Hinsdale; Sen. Ed Petka, R-Plainfield; Sen. Steve Rauschenberger, R-Elgin; Sen. Dave Sullivan, R-Mount Prospect; Sen. Larry Walsh, D-Elwood; Sen. Larry Woolard, D-Carterville; Rep. J. Philip Novak, D-Bradley; Rep. Terry Parke, R-Hoffman Estates; and Rep. Dan Rutherford, R-Chenoa.

Arthur Andersen, the Chicago-based accounting firm accused of shredding documents and helping suppress Enrons improper practices, did not bankroll state candidates but gave $7,500 to U.S. House Speaker Dennis Hastert and $800 to the Mexican American Political Action Committee.

Rauschenberger and Dillard received from Enron $1,500 and $1,000, respectively, before the 2000 election. They said they would not return the money, which has been spent, but would consider making a charitable donation. "Were going to take a look at some kind of victims fund (to see) if were comfortable with how its set up," Rauschenberger said.

Asked whether Jim Ryan considered making a donation instead of writing a new check to Enron, Curry said it was "the policy of the campaign to return donations" directly to their donors. Curry said he hoped bankruptcy proceedings resulted in the money going to the same place.

All but $1,150 of the $26,980 went to Republicans, in keeping with the national trend of Enrons political bestowals. The last two contributions Enron made within the state, in August 2001, went to Daniels House Republican leadership fund for $500 and the DuPage County GOP for $400.

"I see it as just like any other business doing business in Illinois," said Rutherford, who received $1,350 from Enron between October 1998 and September 2000.

Rutherford said he received the donation "as a pro-business type of legislator, not to do with federal energy policy. "Doing something about it now sort of gives it an air of impropriety."

Jeff Druchniak can be reached at 544-2819 or jeff.druchniak@sj-r.com.

GUEST COLUMNIST: FIVE-PERCENT SOLUTION NO SOLUTION AT ALL TO BUDGET

BY BUDDY MAUPIN
GUEST COLUMNIST
[Thu Jan 31 2002]

The Southern's recent editorial "800-lb. Gorilla Run Amok" did a disservice to Southern Illinois and to the American Federation of State, County and Muncipal Employees. By distorting what's at stake in Gov. Ryan's budget cuts it also displayed a surprising confusion about how the state budget process works.

First, the 5 percent budget-reduction authority that Ryan sought would not have cancelled the previously announced cuts. Ryan's budget director testified that even if he were given further authority to cut, the governor would still privatize prison jobs and cut hospital reimbursement rates.

Indeed, the Illinois Hospital Association testified alongside our union against giving Ryan the additional budget-cutting authority. Don't you suppose that if the association thought that hospitals would have been better served by Ryan's plan it would have supported his legislation?

Second, you apparently have the notion that there are some agencies that the governor can cut unilaterally, and others that he cannot -- thus your mistaken conclusion that he will have no choice but to make more cuts in DOC because the 5 percent authorization legislation didn't pass.

In fact, the governor has already made cuts in many state agencies, but there is a dispute over whether he has the authority to cut any agency's budget without legislative approval. Our union and a number of legislators are currently litigating this issue. To strengthen his position in this dispute, the governor pushed for this legislation, which would have given him the approval from the General Assembly to make the cuts.

There's no way anyone can know how he would use that authority. So we cannot imagine why The Southern seems to think that DOC -- or other programs of importance to the local economy -- would be spared the budget axe once the governor starts swinging it.

In the past The Southern has always recognized the importance of creating and preserving good-paying jobs in the region. While Gov. Ryan is now claiming privatization will save the state $20 million, the Department of Corrections is saying $13 million. Yet neither one of them has produced a shred of evidence that the department would save a dime.

On the other hand, there is ample evidence that good-paying corrections jobs the state promised in return for accepting prisons in local communities would disappear under Ryan's privatization scheme. And there is also the damage that would be done to the many small businesses in Southern Illinois that currently provide food and other commodities to prisons -- and that would be displaced by large out-of-state corporations.

At the same time these jobs hang in the balance in Southern Illinois, there sits on the governor's desk in Springfield a bill permitting the Department of Corrections to give away land it owns estimated to be worth at least $20 million to the affluent Chicago suburbs of St. Charles and Geneva. This is but one example of the ways in which DOC continues to waste taxpayer dollars even as the governor insists that prison security and employee jobs must be sacrificed to close the budget gap.

Finally, you summarily dismiss the idea that the state's budget crisis can be addressed by the kind of constructive measures our union and more than 25 civic, community and service organizations proposed, just because Sen. David Leuchtefeld and Rep. Mike Bost won't support them. Fortunately, many other thoughtful legislators are already supporting such alternatives, because they recognize there is no way that $500 million in cuts in the state's budget will not do real damage to vital programs and local economies.

Measures we have proposed are economically sound and politically viable. They include saving $200 million on the cost of purchasing prescription drugs; a tax amnesty program; short-term borrowing; raising more revenues from casino licenses; and closing corporate tax loopholes.

So contrary to your claim that our stance jeopardizes the state's overall fiscal health, AFSCME advances a far more sound approach to solving the state's fiscal problems. And in standing up for our members, AFSCME is defending Southern Illinois communities and the region's economy.

With the disappointing exception of Sen. Luechtefeld, the entire Southern Illinois legislative delegation stood up for Southern Illinois and voted against the deal cut by their party leaders with Ryan. They will undoubtedly come under enormous pressure from these party leaders and Ryan to change their vote in the coming days.

As Southern Illinoisans, we need them to stand up for us regardless of what their party leaders or Gov. Ryan try to pressure them to do.

BUDDY MAUPIN is Southern Illinois Regional Director of the American Federation of State, County and Municipal ^^^^^^^^^^^^^^^^^^^^^^^^^Employees Council. He welcomes your comments via the e-mail address buddym@afscmeillinois.org.

Picketer protest at prison

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Tony Mathewson of Timewell, a correctional food supervisor, joins other members of AFSCME as they picket Wednesday morning at the Jacksonville Correctional Center. The union opposes privatization of food services at Illinois state prisons. Union members also picketed at prison facilities in Pittsfield, Mt.Sterling and Clayton.

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Union opposes contracting out prison food services

BY MARIA NAGLE
Journal Courier
31 Jan 2002

Despite rain and temperatures in the mid-30s, a group of about 45 picketers Wednesday morning gathered outside the entrance to the Jacksonville Correctional Center to protest a recent proposal by Gov. George Ryan to privatize food services at the state's prisons.
The plan to contract out dietary and commissary services to private companies is designed to help make up for a state budget shortfall. But the protesters fear a result will harm the security in the prison.
The Illinois Department of Corrections anticipates that the plan could save $2 million this fiscal year and $10-$13 million in following years, according to Sergio Molina, DOC chief of communications.
"We won't know for sure until we start seeing the bids from the vendors,"said Mr. Molina, adding that it should be by Feb. 15 for prisons in DOC's District 3, which includes the Jacksonville prison. Buying in bulk should bring the expected savings."We prepare possibly over 100,000 meals everyday" throughout the state Mr. Molina said. "So when you start purchasing the commodities to provide that kind of service, on a larger scale, the possibility that you can save a lot of money exists."
The protesters, however, say any savings will come at a risk to prison employees and the communities in which the state prisons are located.
"We want the communities to know that the lllinois Department of Corrections and the governor are not only putting their communities at risk by the safety factor,but there are local companies that supply the foods and supplies.
"And they're going to be. out," said Ron Howard, president of AFSCME Local 3549, which represents Jacksonville prison, the Pittsfield Work Camp and the Greene County boot camp.
"A few people are going to make big money off the top, and the rest of the people are going to suffer,"added Don Olendzki, a psychologist at the Jacksonville prison. "And it's going to be Enron all over again"



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"A few people are going to make big money off the top, and the rest of the people are going to suffer. And it's going to be Enron all over again"

-Don Olendzki, prison psychologist

.......

......

Under the governors plan current state (employees providing prison dietary services would be replaced with private vendors, which typically provide their own employees and food products.
That would mean 11 employees at the Jacksonville prison, 12 at Lincoln's facility and more than 40 at prison facilities located in Mt.Sterling and Clayton would be among those out of a job, according to the Protesters.
Prison security could be compromised because the private vendors typically pay their employees minimum wage, the picketers claimed. ."They hire these people to do it at a lower pay because that's the only way they're going to save any money in the facilities," Mr. Howard
said.
Presently, employees providing food and commissary services directly supervise inmates work in the prison kitchens, where there are potential weapons such as knives and flame.
"If they try to privatize dietary, that's going to be a danger to all of us," Mr. Olendzki said. "When the inmates riot because nobody's watching the tools or the knives, then what's the governor going to say 'Sorry'? Sorry won't be' enough then."
The DOC's Joliet prison is the only state prison that contracts with a private firm for its food and commissary services.
Mr. Howard claims that, since the practice at Joliet began in the early 1980s, there have been related security breaches, including the private food service employees bringing contraband into the facility for inmates.
Management disagrees: "We have experienced (security) issues with staff everywhere, but we have not experienced anything out of the ordinary because of that contractual food service at Joliet," DOC's Mr.
Molina said.
"We will not allow safety and security of our institutions to lapse simply because we have contractual food services," he added. Private vendor employees will have to undergo the same type of background checks, drug screening and training that all other DOC employees do, Mr. Molina said.
The protesters staged the picket Wednesday at the Jacksonville prison to coincide with the expected arrival of private food services vendors, who were scheduled to tour the prison to gather information for their bids. The vendors, however, toured the Jacksonville facility Tuesday.
"(DOC) knew when they were scheduled to come, and they snuck them in," Mr.
Howard claimed.
That's simply not true, according to Mr. Molina. "We don't schedule our business according to whether somebody's going to hold a picket or not," he said. "The vendors want to get into the facilities and get out so they can get back to work in preparing their estimates." AFSCME Council 31 also filed a lawsuit Wednesday against Gov. Ryan and DOC Director Donald Snyder to halt the privatization of DOC services. The suit holds the plan is illegal because the governor cannot privatize these services without approval by the Illinois General Assembly and that the plan violates a state law that bars privatization of any security function.
Picketers arrived at Jacksonville about 7:30 a.m. and were planning to picket a couple hours. Despite the dreary day, they also planned to picket DOC facilities in Pittsfield, Mt.
Sterling and Clayton later Wednesday.
"No, this is a beautiful day," Mr. Olendzki said. "And we all stand together, no matter what the weather is."

An issue of prison security

Art Wilson
Journal Courier
30 Jan 2002

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George Ryan wants to bring outside vendors into the Department of Corrections to replace experienced, correctional food supervisors. The idea is to save some money, or so he says. But anyone who has witnessed the way he has been spending money knows that it is not the money he is trying to save, but his own assets.


He is not slashing up anything dear and near to his own pockets.
He wants to take money out of state employees' pockets to replace the money he and his band on the run spent frivolously on perks like CD players for cars driven by Department of Corrections directors.
If you buy a car worth $38,000 and it didn't come with a CD player, you should have done some comparison shopping, because there are cars out there for less than half that price that have CD players included.
And there's the dishes bought with department funds, the air travel, the parties. ... Oh, I am sorry. I mean work-related functions, and more..
And those were perks for people who already make at least $82,000 working for Corrections. Their pay is practically double that of correctional food supervisors and, in the majority of cases, is more than double.
We have seen over the years what Mr. Ryan is all about I use "Mr." instead of "Governor"

I because I haven't personally I seen him govern over anything that benefited the citizens of I this state, without him having his unfair share first And now he wants to privatize the prisons' food operations. The Private Correctional Facility Moratorium Act says that the state shall not contract with private companies or private vendors for the provision of services relating to the operation of a correctional facility.
Mr. Ryan wants you, the public, to believe that this moratorium does not apply to the food service portion of the Department of Corrections. He obviously has not read the fine print that explains the daily duties of a correctional food supervisor.
Mr. Ryan believes that correctional food supervises are not a part of the security elements relied upon to provide custody and control of inmates.
He couldn't be more wrong.
These supervisors receive each year the same security training as every correctional officer, with the exception of weapons training, and this is
only because their jobs do not require them to carry weapons.
Food supervisors monitor inmates and supervisors just like security. They watch for theft and illegal activity within their assigned areas and write reports and discipline tickets on inmates, just like officers.
When it comes down to a question of security and their responsibilities to the department, their fellow employees and to the safety of those working for them, their job is not any different than that of a correctional officer.
As a matter of fact, the two
positions are so much alike that a correctional officer can be used to temporarily replace a food supervisor. So how is this possible, if food service is not considered a branch of the security function?
Many of these food supervisors are former correctional officers who know how to work with the incarcerated. To bring in private vendors would be to jeopardize the standard and level of security that is maintained by the common knowledge of the job known by correctional officers and food supervisors alike.
But Mr. Ryan wants to take years of responsibility away from state employees and give the job to untrained, underpaid non-security-minded individuals, so he can save a fist full of dollars.
I am asking the public to support the institution in the area, because what happen there affects us all.
Jacksonville resident Art Wilson's views appear each Wednesday. He is a correctional officer at the Jacksonville Correctional Facility.


Ryan stands by privatization plan

SPRINGFIELD -- Despite threats of lawsuits and union pickets, Gov. George Ryan is sticking with his plan to privatize hundreds of jobs at state prisons.

In comments to reporters Tuesday, the governor insisted that the controversial proposal would save the state tens of millions of dollars in the fiscal year that begins July 1.

"I have no plans to change privatization. It is an issue that saves a lot of money in the next year's budget. I think that it's a worthwhile project," said Ryan.

The union representing thousands of workers at prisons and other state-run facilities is planning to fight the proposal in court. Today, the American Federation of State, County and Municipal Employees Union is expected to file a lawsuit alleging that Ryan's decision would violate state law.

In the lawsuit, to be filed in LaSalle County, AFSCME cites a state law saying "the state shall not contract with a private contractor or private vendor for the provision of services relating to the operation of a correctional facility."

Joining the union in the lawsuit are state Rep. Frank Mautino, D-Springfield Valley, and workers at Sheridan Correctional Facility.

The governor acknowledged the union doesn't like the plan, which could result in job losses. He has said, however, that he hopes state workers affected by the changes can find jobs elsewhere in the prison system.

"I know it is distasteful to a lot of members of the union," Ryan said. "I plan on going ahead with the privatization."

The governor also said he was not planning to push layoffs as a solution to the state's budget problems, which have resulted in the cutting of more than $485 million in programs since last fall.

"I am not prepared to say there won't be any, but not prepared to say there will be. It's a last-ditch effort for me to lay anybody off," said Ryan.

Kurt Erickson
Statehouse bureau chief
30 Jan 2002

Prison food-service plan brings lawsuit

By DOUG FINKE and JAYETTE BOLINSKI
STAFF WRITERS
30 JAN 2002

The union representing state prison workers will file a lawsuit today to try to stop Gov. George Ryan from privatizing prison food service.

The suit to be filed by Council 31 of the American Federation of State, County and Municipal Employees will contend the plan violates a state law prohibiting privatization of prison services.

The threatened lawsuit has not dissuaded Ryan from having private contractors provide food service for inmates as a way to save money.

"I have no plans to change the privatization," Ryan said at a Statehouse news conference Tuesday. "Its an issue that saves a lot of money in next years budget. Its a program thats gone on in other areas around the country."

Ryan announced the privatization plan in November during a round of budget cuts. He also called for private contractors to provide food service at Illinois mental health facilities. The change was projected to save $2 million this fiscal year and $20 million for a full fiscal year.

AFSCME has mounted furious opposition, with many lawmakers citing the privatization issue as a major reason the Illinois House voted earlier this month against giving Ryan additional budget-cutting authority.

The lawsuit will be filed in La Salle County, home to Sheridan Correctional Center.

Meanwhile, workers continue to picket state prisons to draw attention to the privatization issue.

And a union official Tuesday night accused the Department of Corrections of knowingly changing a tour schedule so that private vendors could tour facilities at night and at other times when informational pickets would not be set up.

Bill Hess, president of AFSCME Local 2073, which represents workers at the Logan Correctional Center in Lincoln, said the department put out a schedule at the beginning of the week that detailed when vendors would be given tours of specific facilities. The union arranged to have informational pickets at the facilities during those times.

Hess said he found out Tuesday night that the Logan tour, which was scheduled for Friday, was taking place Tuesday night.

"Obviously, we feel very strongly about this. This whole privatization thing is ridiculous to begin with. To me this is a stunt by Corrections to avoid having to see us," Hess said.

"It was just going to be an informational picket. We werent going to stop the vendors from going in. We were just voicing our displeasure at the thought of them privatizing. I feel them sneaking around at night is not negotiating this policy at all, which theyre required to do."

Hess said he also was angered because a union representative was supposed to walk around with the vendors during the tours. He said the union will go ahead with its informational pickets at Logan and at the Lincoln Correctional Center on Friday.

A Corrections spokesman could not be reached Tuesday night.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com and Jayette Bolinski at 788-1530 or jayette.bolinski@sj-r.com.

Pension funds may be diverted

Suggestion to help state through budget crisis

By DOUG FINKE
STATE CAPITOL BUREAU
30 Jan 2002

With state pension funding poised to eat up more of the budget next year than expected, some lawmakers are quietly suggesting that pension money be diverted to other programs.

Fully funding the five state-funded pension plans will cost an extra $173 million for the budget year that starts July 1. That's $55.5 million more than pension experts estimated a year ago.

Moreover, that $173 million pension increase which is required by law will eat up a huge chunk of the revenue growth anticipated in the next fiscal year. The most optimistic forecasts put that growth at $500 million, while some people think it could be significantly less. Revenue growth is used to cover the cost of new programs or higher expenses in existing programs.

"You're looking at a pretty big chunk going to pensions," Sen. Vince Demuzio, D-Carlinville, said Tuesday. "It seems to me we ought to try to make that payment if we can. There are a lot of people around here wondering whether or not we can do it this year."

Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, acknowledged that some state representatives have talked about the possibility of diverting pension money to other programs. Their argument, Brown said, is that underfunding the pension plans for a year won't jeopardize pension payments or the programs themselves.

"That is not the case in many, many other areas of state spending," Brown said.

The idea of using pension money elsewhere is not widespread among House Democrats, Brown said. Several Senate Republicans said they don't like that option, either.

"I don't think it's a very good idea," said Senate President James "Pate" Philip, R-Wood Dale. "We ought to just cut some things that perhaps we ought to cut. When you have a $52 billion budget, a 2 percent cut or a 5 percent cut isn't a big cut."

Philip did not specify where those cuts should be made.

State government makes sizable contributions to five public pension programs: those for state employees, state universities, downstate teachers, judges and legislators. For years, the General Assembly did not provide adequate funding for the pension plans, preferring instead to use the money for other programs.

In the early 1990s, a law was passed requiring the state to put the pension plans on stable financial footing in 45 years. The law requires automatic contributions to the pension plans to meet that financial goal. The contributions each year are determined by actuaries and are the first things funded in the new state budget.

Initially, actuaries thought the state would need to spend $117 million in next year's budget to meet its pension obligations. However, members of the Pension Laws Commission were told Tuesday that amount has soared an additional $55.5 million. Nearly $30 million is from higher payroll costs that are one factor in determining pension contributions. An additional $23 million is needed to make up for losses the pension plans sustained in the stock market last year.

If the pension plans were to get less than the $173 million required by law, the General Assembly would have to pass legislation to do it.

"I would have a problem with that," said Sen. Larry Bomke, R-Springfield. "I would be concerned that we would get ourselves back in the same condition we were in."

Sen. Steve Rauschenberger of Elgin, the Senate Republicans' budget negotiator, said underfunding the pensions will simply put off the problem, and "letting our kids pay it with interest over the next 30 years is not a solution."

"The problems next year are not about the pensions, it's about spending," Rauschenberger said. "You can't spend more than you take in. There's no bankruptcy court for state legislatures."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Governor Reinstates Prison Vocational Programs



SPRINGFIELD Governor George H. Ryan today announced the reinstatement of vocational programs offered by community colleges at Department of Corrections facilities. The decision was made after continued discussions between the Bureau of the Budget, Department of Corrections, Illinois Community College Board and Department of Employment Security staff regarding alternative funding.

The declining economy and the events of September 11 resulted in very difficult and painful budget cuts for states across the country, said Governor Ryan. The decision to cut vocational and educational programs at corrections facilities was not easy and I asked the agencies involved to think of other ways that we might be able to continue to provide rehabilitative programs to prepare inmates for their return to society.
The $4 million needed to continue these programs will come from federal dollars procured by the Department of Employment Security through the Workforce Investment Act grant program. Further review of the grant program by Corrections officials and the Governors staff determined vocational programs in prisons could qualify for the funds.

The continuation of these programs will provide instruction and training for both adult male and female inmates in building trades, culinary arts, commercial custodian, horticulture and auto mechanics courses. Additionally, the Department of Corrections highly touted Helping Paws program will continue. The Helping Paws program provides vocational training to female inmates who learn how to train dogs to assist physically disadvantaged people.

The vocational programs provide training assignments for about 2,500 inmates at a time. Inmates not on a work assignment like the vocational training spend their time in their cells. Numerous research studies indicate released offenders who have completed vocational training are less likely to return to prison than offenders who choose not to participate in the courses.

These programs provide valuable, productive inmate assignments and provide a safer environment for inmates and staff alike, said Corrections Director Donald Snyder.

The vocational and educational programs were scheduled to halt operations on January 18, 2002. The closing date would have allowed college staff to prepare final reports and course grades and submit these reports by January 31, 2002, the last scheduled day of operation for the program. In addition to the restoration of the post-secondary vocational program, the Governor has asked and expects that community colleges will make every effort to continue as much of the post-secondary education programs as possible.

"Today's announcement means a great deal to our program and to the 75 full-time employees," Bob Luther, President of Lakeland College said. "This underscores the fact that this Governor believes in education and we are hoping that this will help in turning peoples lives around."

Securing the grant funds will cancel layoffs for vocational instructors and other staff from 10 community colleges across Illinois.


AFSCME files suit against Governor and DOC director to halt privatization of DOC services

January 29, 2002

CHICAGO, ILLINOISWhat: Press availability prior to the filing of a lawsuit to halt privatization of Department of Corrections dietary and commissary services. The defendants named in the suit are Gov. George Ryan and Donald Snyder, the director of the Illinois Department of Corrections.

Who: The plaintiffs in the suit are:

AFSCME Council 31 (Regional Director Joe Bella will give a statement)
Rep. Frank Mautino (D-Spring Valley)
Robert Fanti, a correctional counselor at Sheridan Correctional Center
Kerry Komater, a correctional officer at Sheridan
James Stalker, food service supervisor at Sheridan
John Morahn, supply supervisor at Sheridan
Sheridan Food Mart, a local vendor which currently provides food to the facility

When: 10:30 a.m., Wednesday, January 30, 2002

Where: First floor lobby, LaSalle County Courthouse, 199 West Madison, Ottawa

Why: This lawsuit argues that the recent proposal by Gov. Ryan to privatize dietary and commissary services is a violationof the Private Correctional Facility Moratorium Act.This act, which went into effect in 1990, holds that "the State shall not contract with a private contractor or private vendor for the provision of services relating to the operation of a correctional facility or the incarceration of persons in the custody of the Department of corrections." Further, the suit holds that the Governor cannot privatize these services without legislative approval from the Illinois General Assembly.

Statehouse Insider


By DOUG FINKE
STAFF WRITER
27 Jan 2002




Gov. GEORGE RYAN reportedly invited his good buddy, FIDEL CASTRO, to Springfield for a state dinner to be held in Castro's honor at the Executive Mansion. That should go over well Ryan using scarce state tax dollars to throw a lavish shindig for Castro.

Don't expect it to happen, however. As things stand now, Castro is allowed into this country only to go to the United Nations. He can't just traipse over to the Executive Mansion for dinner - not unless he gets a visa from the State Department.

That would be the State Department under the control of President GEORGE W. BUSH. That would be the brother of the Florida governor who is running for re-election and wants votes from all those rabidly anti-Castro Cubans living in south Florida. So do you think the feds are going to give a visa to Castro just to please a lame-duck Midwestern governor?

If Castro ever does get to Illinois, he should feel right at home another place where the economy is in the Dumpster and government can't meet its obligations.

Work crews stripped the old wax off the Capitol's marble floors last week. It's one of those classic state things: have one crew slather on a bunch of wax and a few weeks later have another crew strip it off, so the process can start all over again.

They've been doing this for years, but this last week there was a twist. A sign was put up on the first floor apologizing to visitors for the appearance of the marble floors. This struck a nerve with one of our colleagues. His point: Medicaid payments to hospitals have been cut. State employees are threatened with furloughs and layoffs. Who knows what further cuts will be needed to balance next year's budget. So what does the state apologize for? That the floors aren't waxed.

Maybe there should be another sign posted in the Capitol. "To whom it may concern. We, the state's elected officials, have taken a healthy state budget and overspent it into a financial train wreck. We poured money into our beloved pork projects to help get us re-elected. We gave tax breaks to interests that give us campaign contributions. We spent like there is no tomorrow because we never think about tomorrow until it gets here. There's nothing left. If you are now being hurt by our actions, we apologize."

You're right. Fat chance.

Strictly for the visuals, our favorite political ad (TV variety) belongs to Sen. PATRICK O'MALLEY, one of the Republican candidates for governor. This is the ad that attacks Gov. George Ryan, even though Ryan isn't running for re-election.

Not long into the ad, a giant, disembodied Ryan head emerges from the background and gradually fills the screen. You half expect its lips to start moving and a booming voice to say, "I am the great and benevolent Oz," because it sure does remind you of the Wiz.

U.S. Rep. ROD BLAGOJEVICH's staff has chosen an interesting way to deal with the news media - refuse to answer basic questions and basically just irritate the heck out of people. It's almost like they stole a page from Ryan's old press staff, which no longer deals directly with the press.

The occasion was a new TV ad for the Democrat gubernatorial candidate. After the official unveiling which came after the ad was already on the air reporters had a few questions, like where in the state is the ad airing, how long will it run, and how much is being spent on it. Trust us, folks, these are all routine questions regularly answered by other candidates.

Not Blagojevich's operation, however. That information counts as secret campaign strategy stuff. Usually, this "you-don't-need-to-know" crap doesn't set in until after someone is safely elected to office. Moreover, if information about a lousy campaign ad is considered too sensitive for public disclosure, you have to wonder what information will be off limits if Blagojevich is elected governor.

Postscript: Blagojevich's campaign supplied copies of the ad on videotape to reporters. The 30-second ad was put on a regular, six-hour videocassette, which will come in handy for taping "Roots."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

$700 million tax deficit compounds budget problems



By DOUG FINKE
STATE CAPITOL BUREAU
26 JAN 2002


$700 million tax deficit compounds budget problems

By DOUG FINKE
STATE CAPITOL BUREAU

Illinois officials on Friday confirmed their earlier warnings that state government's budget problems are worse than previously acknowledged.

In an updated financial report, Gov. George Ryan's budget office said state revenues will fall $250 million below previous estimates because of Illinois' staggering economy. In addition, $50 million in federal reimbursements will be lost because state Medicaid payments to hospitals were cut to save money.

The latest numbers mean that, since the current state budget was passed last spring, revenue from income, sales and other taxes is falling $700 million short of projections.

"This report reflects the statements the governor made the last few weeks when he was asking for additional (budget-cutting) authority," said Mike Colsch, deputy director at the Bureau of the Budget.

Two weeks ago, Ryan asked lawmakers to give him authority to cut up to 5 percent from state agency budgets, authority he does not have. Although the Republican-controlled Senate voted to give him that power, the bill fell three votes short of passing the House, where Democrats are in the majority.

At the time, Ryan, a Republican, warned that the state's budget problems might be worse than initially disclosed and that the budget-cutting authority would enable him to spread cuts across a wider range of government services.

Ryan slashed $485 million from the state budget last fall. The shortfall is bigger now, but additional cuts are not imminent, Colsch said. Instead, the state will dip further into the yearend cash balance to pay fiscal 2002 bills. Last June 30, the year-end general fund balance was $1.12 billion. This year, it is now projected to be $650 million.

Friday's report compounds the state's dismal financial situation, just as Ryan's budget office is trying to piece together a budget plan for the 2003 fiscal year that starts July 1. Ryan's budget director, Steve Schnorf, has said the state may need to lay off workers to meet financial projections, and that remains a last-resort option for the administration.

The latest report was based on the state's financial performance from October through December, but the new year isn't starting out any better.

"January hasn't looked real good," said Dan Long, executive director of the Illinois Economic and Fiscal Commission.

Long said neither personal nor corporate income tax receipts for the month are performing well. That leaves only five months in the current budget year for the state's economy to turn around.

"We are running out of time," Long said.

The budget office's report assumes the state's new "rainy day" fund will be needed to cover bills expected to come due in July and August, the so-called "lapse period" when expenses run up this budget year can still be paid.

Comptroller Dan Hynes' office says that will create more problems next year.

"That (rainy day) money is a one-time shot," said Hynes spokeswoman Karen Craven. "They are using the fund as a source of revenue for spending that they will not be able to sustain in the future."


AFSCME: AN 800-LB. GORILLA RUN AMOK HARMS ALL

VOICE OF THE SOUTHERN ILLINOISAN
25 JAN 2002

Gov. George Ryan was stunned -- and angered -- earlier this month when state lawmakers declined to give him broad power to cut almost every area of the state budget.

Ryan wanted the authority to cut up to 5 percent of any agency's budget -- not just those agencies under his direct control. As a prelude to further cost-cutting, last year the governor cut $485 million to help close a $500 million gap in the state's $23.4 billion general revenue fund, the main spending account.

With new predictions of the revenue shortfall growing another $100 million to $250 million, Ryan thought he had cemented a deal with legislative leaders that would have put a mechanism in place for the additional cuts needed to balance the state's books.

"I was somewhat surprised, frankly, because I thought we had a deal, and I thought the caucus leaders would go in and deliver," Ryan said, after the House torpedoed the plan by a 57 "yes"- 58 "no" vote. The Senate had already agreed to the measure by a 42-14 margin.

Ryan blamed election-year politics.

Democratic and Republican leaders in the House each blamed the other for not corralling more votes.

We blame the American Federation of State, County and Municipal Employees (AFSCME), one of the 800-lb. gorillas on the Statehouse lobbying scene.

When he first began casting around for ways to head off the impending fiscal crisis, Ryan said trimming he planned to do on his own included privatizing prison dietary and commissary services, terminating all tax-supported educational services for employees, and streamlining operations at the Joliet Correctional Center.

He initially said those moves would save the state $11 million annually -- a number that has since grown to $20 million.

AFSCME officials immediately put on a full-court press. They began by circulating a five- point proposal they contended could trim more than $1 billion from the state budget. Included were changes in prescription drug purchasing, corporate taxesand federal economic stimulus assistance.

Murphysboro state Rep. Mike Bost was quick to respond that the five-point plan was "not viable": "We need to get away from (House Speaker) Mike Madigan's agenda and get away from Gov. Ryan's agenda and get together and do what's right for the people," Bost said. "We're caught in the middle of a political fight."

State Sen. Dave Luechtefeld said almost the same thing: "It's not something that is realistic and something that would take legislation to change and we're not in session right now," Luechtefeld explained. "Some of those proposals didn't pass when they came before the legislature before; why would they now?"

Ryan countered with the 5 percent plan, which just went down to defeat.

There can be no doubt that this region's legislators voted against the 5 percent plan due to extreme pressure placed upon them by AFSCME. Its 2,000 members in the region linked Ryan's privatization issue to the vote.

AFSCME was dead wrong to link the two issues. Now, because the governor continues to be limited in where he can slice and dice, Illinoisans throughout the state will suffer. As an example, Illinois hospitals are feeling the brunt of cost-cutting imperatives.

After the defeat, Ryan said he was willing to "negotiate" on privatization, but added he would not "give up" his plan to contract out food service because it would save $20 million in the next fiscal year's budget.

In short, the governor is saying that the question of whether prison food operations should be privatized must rest on its own merit. If it can be shown that security won't be compromised, standards will be maintained and savings realized, then it is a good idea. That's just business -- good business. If safety and quality issues are not met, then it is a poor idea. That, too, is just business.

Among Southern Illinois legislators, only state Sen. Luechtefeld voted for the governor's plan. Since then, he has received unceasing grief from vocal AFSCME members.

The Okawville Republican cast a vote intended to help ease the situation. Contrast Luechtefeld's good-faith position with Mike Madigan, who has consistently refused to work with the governor or anyone else.

There were valid arguments on both sides of the issue aside from the political pressure exerted by AFSCME. But for AFSCME to jeopardize the state's overall fiscal health -- for the narrow benefit of a few of its members -- is clearly out of the strike zone, as is its criticism of Luechtefeld for making a vote of conscience.

In reality, AFSCME succeeded only in shooting itself and its members in the foot. If Gov. Ryan can't spread the cuts around, he is certain to pursue cuts in agencies where he is permitted -- among them Corrections -- and that includes privatization of food operations. That's all he can do.

AFSCME members picket vendors conference, delay meeting

January 22, 2002

SPRINGFIELD, ILLINOISLoud chants of "vendors go home" greeted business representatives who arrived at the Department of Corrections today for a mandatory meeting for those seeking to bid on providing dietary services to the Illinois Department of Corrections. The chants came from more than 200 DOC employees from across the state who were protesting the privatization of these services.

"Privatizing these services creates a serious security risk for our members," said Tom McLaughlin, regional director of AFSCME Council 31. "People who provide food service directly supervise inmates who are working with items that can be used as weapons. This work is security work and only people who have that experience and training should be doing it."

The picketers, who gathered outside the Concordia Court building an hour before the meeting was scheduled to begin at 10:30 a.m., went inside to attend the meeting. When told they could not attend, they countered that it was a public meeting and they weren't going to leave. They continued chanting in the hallways.

DOC officials then moved the meeting to the auditorium, and it began 40 minutes after the scheduled starting time. Vendors asked no questions of DOC officials during the meeting.

"People are very angry about this," said McLaughlin, explaining the protesters' unwillingness to leave, even after the meeting. Privatizing services not only presents a security risk, he said, it means taking good-paying jobs and replacing them with lower-paying ones and it violates the Private Prison Moratorium Act. Further, said McLaughlin, there has been no reliable indicatino of how privatizing these services can save the state money without creating a security risk or harming local economies.

Governor George Ryan proposed privatizing prison commissary and dietary services as part of his slate of budget cuts introduced in late November.

Locals participating in today's protest included:

46: East Moline

117: IYC- Valley View

203: Centralia

359: Hanna City

415: Vienna

416: IYC-St. Charles

472: Sheridan

494: Pontiac

501: Lincoln

632: Decatur C.C.

779: IYC-Harrisburg

801: Kewanee

817: Dixon

943: Pinckneyville

993: Vandalia

1133: Dwight

1175: Menard

1274: Hill

1753: IYC-Joliet

1866: Stateville

2052: Danville

2073: Logan

2335: Murphysboro

2758: Tamms

2802: Joliet

2856: Graham

3549: Jacksonville

3436: IYC-Chicago

3567: Western

3585: Canton

3600: Lawrenceville

3605: Shawnee

3649: Robinson

3653: Taylorville

3654: Southwestern

3663: Big Muddy

It's anybody's guess as to what Madigan will do next

By DANA HEUPEL
STATEHOUSE EDITOR
21 JAN 2002

Winston Churchill's quote about Russia could just as easily apply to Illinois House Speaker Mike Madigan: "a riddle wrapped in a mystery inside an enigma."

Right now, the Chicago Democrat has all of Illinois officialdom guessing what he's going to do next about mending holes in the state budget.

Over several months, Madigan had refused to play any role in trimming the budget to make up for a predicted $500 million shortfall in revenue from taxes, fees and other sources.

Conventional wisdom had it that, as party chairman, Madigan didn't want Democrats to anger voters in a redistricting election year that could alter political control of the House and Senate.

And most of the cuts likely would have to come from human services, public aid or education, traditional Democratic issues.

But after meetings with Gov. George Ryan and the other three legislative leaders, Madigan finally buckled on Jan. 10. He brought to a vote House Bill 3495, which would have enabled Ryan to cut up to 5 percent from budgets of agencies he controls and some that he normally doesn't, such as education.

It also would have allowed the governor to reduce the amount the state pays for nursing home patients and similar services.

The measure had already passed the Senate, 42-14, and most observers thought it would sail through the House. The speaker publicly supported it, and no one is better at collaring lawmakers to do his bidding when he's serious about a piece of legislation.

But to the surprise of most Statehouse oddsmakers, the bill failed, 57-58. Only 26 of the 62 House Democrats voted for it, along with 31 of the 56 Republicans. Among the no votes were four members of Madigan's House Democratic leadership team.

"I thought we had a deal," Ryan said afterward.

Steve Brown, Madigan's spokesman, said last week that the speaker tried hard to generate votes.

"If you'd been on the floor, you could have watched Madigan work the roll call," Brown said. "When we started out, the staff count (of Democratic votes) was about 13; he got it up to 26. He felt like he had done a pretty good job of persuading some people."

But Ryan's budget director, Steve Schnorf, thinks otherwise.

"There's no doubt in my mind he could have put more votes (on the bill), enough to pass it," he told The State-Journal Register editorial board last week.

So the question remains: Did Madigan outwardly support the legislation, but secretly set it up to fail? Or was he this time unable to make good on a deal with Ryan and the other legislative leaders - a scenario that many find hard to believe?

More important, with even darker budget forecasts expected soon, what will happen when lawmakers return to Springfield on Jan. 29?

During his 18 years as speaker, Madigan has gradually become more willing to temper hard-line ideologies and work with Republican governors to accomplish his objectives. To some, his obstinacy over budget cuts in this important election year signals an end to that cooperative spirit.

But Brown said that, in this instance, Madigan merely tried and failed.

"Mike Madigan has an image of being all-powerful. That's not always the case. This is one of those examples. And I think there's some pretty easily identifiable reasons."

Brown said many Democrats, including some House leaders, are unhappy with Ryan's budget-cutting plan to privatize food services in prisons and mental health centers, taking away state jobs in their districts.

Some House Republicans also voted against the bill for that reason, Brown said.

Other Democrats, Brown said, fear deeper cuts in human service programs. And others want to see the budget balanced through what they believe to be revenue-producing measures, such as a Democratic prescription drug plan, not more cuts.

After the vote, Ryan said he is willing to "sit down and talk about privatization." If the governor shifts his stance, "that would put a lot of people in support of the bill," Brown said.

"All I know is that I watched Madigan try to win people over. He's indicated he will continue to try and work for the passage of this bill," Brown said.

Others, like Schnorf, aren't so sure, given that the legislation didn't pass the first time around.

"My surmise is that he decided he did not want the governor to make rate cuts in nursing homes. What's left, where we could go for any significant amount of money? .. . There's nowhere else left."

Schnorf said it's anybody's guess what Madigan's next move will be when the legislature returns.

"He is a close-to-the-vest, taciturn enigma. You don't know what he's going to do, and he doesn't say."

Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.

Compromise key to budget accord

OUR OPINION
The State Journal-Register
20 JAN 2002



IT'S NOT SURPRISING that local legislators are horrified by the possibility of state employee layoffs. Unlike much of the rest of the state, area representatives and senators need to keep in the good graces of state workers in order to reap their votes come Election Day.

State workers, at least the unionized ones, do have a powerful voice in AFSCME the American Federation of State, County and Municipal Employees. The union can be generous to those politicians it favors and can be a force to reckon with for those who are not considered an ally.

THAT IS, in part, why Rep. Gwenn Klingler, R-Springfield, wants to believe that Gov. George Ryan will not actually resort to layoffs. That is why Rep. Raymond Poe, R-Springfield, suggests schools and state prisons areas Poe said are treated as "sacred" may need to feel some budgetary pain so more state employees can be spared.

"I think they have to participate also. We shouldn't try to balance the budget on the backs of state employees," said Poe.

Poe and Klingler's comments are to be expected, but state workers should not kid themselves that layoffs are not a distinct possibility. The state is facing at least an additional $200 million hole in its budget, and there are only so many places you can find that kind of cash.

ANY DISPASSIONATE analyst would have to consider state salaries a prime target as they account for $3 billion annually in general revenue funds.

AFSCME is a powerful union but most legislators are not nearly as beholden to state workers as are Poe and Klingler. In fact, in most of Illinois if the decision came down to state layoffs or raising taxes to save state jobs, you can bet layoffs would win.

We don't say this to be antagonistic, only to encourage everyone involved to deal reasonably and rationally with the state's dire financial situation.

UNFORTUNATELY, so far the General Assembly seems unwilling to deal with the situation at all, instead leaving the hard decisions up to Gov. George Ryan. The state government's largest labor union AFSCME , along with several social service allies, has at least made some proposals as to where the state might be able to either save money or raise funds.

The suggestions with the greatest potential for affecting the budget, however, involve raising taxes or "closing tax loopholes," which is the same thing as raising taxes if you happen to be the one with the loophole.

This is an election year for state officials. Election years and tax hikes mix about as well as water and oil. Unfortunately, AFSCME has slammed the door shut on any compromise concerning wages and/or benefits.

WE UNDERSTAND why AFSCME has taken this stance. It is not a union's job to give up benefits or wages; it's a union's job to enhance those items. However, the approximately 47,000 AFSCME members should realize that there will likely be consequences for refusing to compromise.

And the consequences will likely include layoffs. Steve Schnorf, Ryan's budget chief, called the upcoming fiscal year "the bloodiest budget that the state has seen introduced since 1992." Some are scoffing at his warning, saying it is meant to bully the unions into concessions. If 1992 is comparable to today, and we believe it is, people might want to take Schnorf a bit more seriously. That year even after a large-scale early retirement program, about 1,400 area people lost their state jobs.


Statehouse Insider

By DOUG FINKE
STAFF WRITER
20 JAN 2002

This is confusing. Gov. GEORGE RYAN wants expanded budget-cutting authority and doesn't get it.

A week later, Ryan's budget director, STEVE SCHNORF, says, as things stand now, he doesn't see how he can draft a balanced-budget plan for next year without including lots of layoffs.

A day after that, Schnorf's office puts out a statement that says layoffs are a last resort and are being forced on Ryan because House Democrats and the largest union representing state workers, the Association of Federal, State, County and Municipal Employees, won't cooperate in making other cuts. The implication is that if the House Democrats and AFSCME start cooperating, layoffs will be minimized.

However, Ryan said he is done cutting the current budget, so he doesn't need the Democrats to give him budget-cutting authority. And Schnorf said union concessions even if AFSCME would agree to them aren't enough by themselves to prevent layoffs.

This seems to add up to layoffs being included in the Ryan's next budget plan. By the time the budget is passed, they may be averted, but we're betting they'll be there when Ryan makes his budget speech in February.

Attorney General JIM RYAN, one of three Republicans running for governor, certainly has the budget patter down pretty well. In outlining his lengthy fiscal responsibility program last week, Ryan said he will never sign into law a budget that isn't balanced.

Well, it's nice to know he's going to obey the state Constitution, which requires that budgets be balanced. Even the wreck of a budget that the state has now was balanced when Gov. Ryan signed it into law. Estimated expenses were the same as estimated revenues. The problem is, the revenues were estimated way too high and now spending has to be cut.

Ryan (Jim) pledges he won't base a budget on inflated revenue estimates. That's a great position, and we'll see if it stands up if he's elected and the pressure is on to reach a budget compromise and not cut programs.

Ryan also pledged to end the lawmaker pork called "member initiatives." He wants each project identified in the budget before it is passed. Now, the budget is passed and the projects are selected later. Well, good luck. The pork is handled this way because most of the 177 lawmakers like it this way.

It comes down to this: When the budget is hammered out, the governor occupies one seat at the bargaining table and the General Assembly occupies four. You work out the math.

MICHAEL BAKALIS, a Democrat running for governor, outlined the pro-family plank of his platform in Springfield on Friday. He scheduled his news conference at a social service agency that provides day-care services.

Uh, the problem is, the agency never gave Bakalis permission to hold a news conference on its property. Bakalis was forced to hold the news conference on the sidewalk outside the agency.

Then it was on to Peoria for the same announcement at another day-care center. Uh, the problem is, the Bakalis campaign gave the news media the wrong address, although they only missed by a block.

To clarify things, we called one of the media contact people listed on the bottom of a Bakalis press release. Uh, the problem is, the phone number belongs to a hot dog stand in Chicago.

Uh, this campaign isn't going anywhere.

A hearing was held in federal court in Chicago last week on a lawsuit challenging the new legislative district map. It's pretty much the GOP's last gasp at overturning the Democrat-drawn map.

Before the hearing began, the three-judge panel warned everyone in the courtroom to turn off their cell phones, pagers or anything else that might go beep, buzz or otherwise disrupt the proceedings. With that, the hearing started.

A while later, House Republican Leader LEE DANIELS showed up. As Republican Party chairman, he has an intense interest in the case. A short time after that, a cell phone went off. It belonged to Daniels, naturally. He left the courtroom, although we got conflicting reports whether he left voluntarily or was tossed out.

Either way, Daniels was plenty embarrassed. Through a spokesman, Daniels surmises a security guard turned the phone on to make sure it wasn't a bomb, and then neither the guard nor Daniels turned it off again.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Layoffs no laughing matter

By DAVE BAKKE
STAFF WRITER
20 Jan 2002

Those jokes we have been telling all of these years at the expense of state employees dont seem too funny at least, not for now.

Those of us non-state workers who live in Springfield have always had a love/hate relationship with state employees. Poking fun at government workers goes hand in hand with the general distrust Americans have of government work. We will have to put that on furlough for a while.

If the frightening forecast of 4,000 layoffs among state employees comes true, all of Springfield will feel the pain. Joke about state employees all you want, but their presence is crucial to this town. I think we all know that, even if we laugh at the jokes at their expense.

We have been down this road before 10 years ago to be precise. In 1992, under Gov. Jim Edgar, 1,400 state workers were laid off. That is a far cry from the 4,000 layoffs Bureau of the Budget director Steve Schnorf has mentioned this time, but we shall see how many of those 4,000 jobs actually go. Not many believe it will be anywhere near that high. An early retirement program helped cut the number of layoffs last time. People already are discussing that remedy for this go-round. But Schnorf did get our attention, didnt he?

Schnorf also raised eyebrows, and a few hackles, with his estimate that the average state employee earns, including benefits, $55,000 a year. Schnorfs office broke it down for me on Friday base average salary without benefits, $45,000. Add $1,800 a year in retirement contributions, another $3,400 in Social Security and another $5,400 in group health insurance, and you get a $55,600 average salary.

That $45,000 average base still seems high to me, but maybe the executive salaries throw it out of kilter.

In the past two fiscal years ,the rate of salary increase for the states top officers has been more than double the rate of increase given to lower-level state employees. According to the states budget figures, state officers salaries have risen from a total of $21.8 million in fiscal year 2000 to $25.1 million today. That is an approximate 15 percent increase in salaries to the states top people over the past two fiscal years.

Meanwhile, employees covered under the states contract with the American Federation of State, County and Municipal Employees received a 7.25 percent increase over the same two fiscal years. Something seems out of whack there.

But when it comes to cuts in salary and benefits, it is the people who sit in cubicles at places like DCCA or Revenue who are going to be asked to make the biggest sacrifices. The reason for that is the sheer numbers of them. Cutting the pay of only the highest paid employees would not make a dent in the budget deficit Illinois faces.

But how do those double-figure percentage raises Gov. Ryan doled out to his top people just a year ago look now? Twenty-six agency directors and 17 members of Ryans staff got the goodies. The raises were given in the face of the states economic downturn. The story of the raises was sandwiched between reports of massive layoffs at Illinois companies and the closing of the Montgomery Ward store in Springfield.

In the ensuing year, and in light of the fiscal crisis we now are enduring, that largesse from the governor to his people only seems more cynical and outrageous than it did at the time. And that is saying plenty.

The only optimistic note about any state layoffs is that many of those jobs eventually will be restored. The economy will turn around, increased revenue will come back to state coffers and state government will expand again. That is what happened last time.

That doesnt make it any less stressful as Springfield waits to see who and how many.

Dave Bakke can be reached at 788-1541 or at dave.bakke@sj-r.com.

Enron bites Illinois pension funds

Teachers, university and state workers funds lost $34M

By TIM LANDIS
BUSINESS EDITOR
19 Jan 2002

Three Illinois retirement systems covering teachers, state employees and university workers lost approximately $34 million combined from investments in Enron, the failed energy conglomerate, though the losses were only a small part of the systems overall investment funds.

Retirement systems officials said Friday the losses would not affect benefits.

The Illinois attorney generals office also is looking into the Enron losses, though a spokesman said it is too soon to determine if a lawsuit would be filed.

"Its real money, and were mindful of that. But is it an amount of money sufficient to imperil peoples retirement? The answer is clearly, no," said John Day, assistant executive director of the state Teachers Retirement System.

The teachers retirement fund, the largest of the three, lost $14 million on Enron stock investments. But the loss represented only about one-half of 1 percent of the funds $22 billion in assets.

Another of the funds, the State Employees Retirement System, lost $1l million to $12 million out of a portfolio of more than $7 billion.

James Hacking, executive director of the Universities Retirement System, said the overall decline in the stock market in late summer and early fall resulted in heavier losses than investments in Enron stock.

"In July, August and September, we were negative, and that was purely a market effect. The market turned around in October," Hacking said.

The $10.4 billion in assets in the universities fund is down from $10.8 billion at the start of the fiscal year on July 1. Enron stock accounted for approximately $8 million of the losses.

A spokesman for Attorney General Jim Ryan said Friday the office has asked the pension systems for figures on their Enron losses. But Dan Anders said no decisions have been made on joining other states in a class-action lawsuit against Enron.

"We have checked with the various retirement systems. But its all very preliminary right now," said Anders.

The Florida pension system was among the hardest hit, with $308 million in Enron stock losses.

Several other states are examining their ties to Enrons former accounting firm, Arthur Andersen, or weighing legal action against it. Florida has already filed subpoenas for a potential civil lawsuit.

Attorneys general in Georgia, Ohio and Washington state have asked a federal court in Texas to make them the lead plaintiffs in existing investors securities fraud litigation. Others seeking to lead the class-action suit include agencies overseeing pension funds in Florida and New York City, and the university pension fund in California.

The U.S. District Court in Houston has yet to decide who will lead the suit; briefs are to be filed next week, according to Russ Willard, a spokesman for Georgia Attorney General Thurbert Baker.

The Associated Press contributed to this report. Tim Landis can be reached at 788-1536 or tim.landis@sj-r.com.

Ryan urged to minimize job cutting

Lawmakers push early retirements, other reductions in spending



By DOUG FINKE
STATE CAPITOL BUREAU
18 Jan 2002

Lawmakers Thursday urged Gov. George Ryan to minimize possible state employee layoffs by implementing an early retirement incentive program or cutting other parts of the budget for the fiscal year that begins July 1.

On Wednesday, Ryan's budget director, Steve Schnorf, said the governor may be forced to ask for thousands of job cuts because of state government's dire financial condition. The problem is exacerbated by the refusal of House Democrats and a large state employee union to help the governor make cuts that can reduce layoffs, Schnorf said.

Rep. Gwenn Klingler, R-Springfield, said she is aware of two early retirement proposals under discussion, either of which could minimize the number of layoffs that might be necessary to balance the next state budget.

Under one plan, a state employee who is 55 years old and has at least 15 years on the job could participate, as could someone with 30 years on the job regardless of age, Klingler said. About 10,000 workers would be eligible, and it would save about $160 million if 43 percent of those employees retired, she said.

The other plan would be open to anyone who is least 50 years old and has at least 30 years on the job. State officials estimate 20,000 people would be eligible. If 7,000 retire, it would save about $238 million, Klingler said. The idea would be to pass something relatively early in the spring session so it will be ready to start in the next budget year, she said.

"I don't believe there's going to be layoffs like (Schnorf indicated)," Klingler said. "Maybe it's just an effort to make people realize how serious the problem is."

Rep. Raymond Poe, R-Springfield, said deeper cuts should be made in areas that have been spared the worst so far.

"I think we have some sacred areas like corrections and education," Poe said. "I think they have to participate also. We shouldn't try to balance the budget on the backs of state employees."

Schnorf is preparing the budget plan for fiscal 2003 that Ryan will deliver to lawmakers Feb. 20.

Although Ryan has said he views layoffs as a last resort for balancing the budget, Schnorf told The State Journal-Register there may be no other choice.

"Based on what we've looked at so far, I don't see how else we introduce a balanced budget that doesn't involve layoffs, that doesn't involve a lot of layoffs," he said.

The layoffs which Schnorf said could number in the thousands would be accompanied by the closure of additional state facilities. As part of budget cutting already announced for the current fiscal year, portions of the Elgin Mental Health Center will close, as will the century-old Joliet Correctional Center.

According to the budget office, the average cost of a state worker is $55,000 a figure that includes salary and benefits like health insurance and pension. Using those figures, Schnorf's office said the state could save $55 million by cutting 1,000 jobs.

Schnorf expressed frustration Thursday with House Democrats and the American Federation of State, County and Municipal Employees.

"In order to minimize the impact of budget cuts, the administration sought assistance from the General Assembly and the largest union representing almost 45,000 state employees," Schnorf said in a written statement. "The union and the Democratic majority in the House have not agreed to assist in making the necessary, additional cuts, and therefore the governor has fewer and fewer options to balance the budget."

Last week, Ryan asked lawmakers to give him authority to cut up to 5 percent of agency budgets under his control. The authority also would enable Ryan to make cuts in parts of the budget that are currently off limits to him.

The bill failed in the House, and many Republicans blamed House Speaker Michael Madigan, D-Chicago, for not pushing hard enough for its passage.

"I think people should curl up their fingers instead of point them," said Madigan spokesman Steve Brown.

Madigan believes a Democrat-sponsored prescription drug program could save the state substantial money, Brown said. The speaker also supports a plan to impose a temporary tax on nursing homes that would bring in additional federal Medicaid funding.

AFSCME officials have offered their own ideas, including repealing hundreds of millions of dollars in business tax breaks that the General Assembly has passed in recent years. Union officials so far are not willing to have their members make concessions to balance the budget.

As part of this year's belt-tightening, Ryan wants all employees under his jurisdiction to take an unpaid day off, which he said will save $8 million. However, AFSCME said furlough days must be collectively bargained, and the union has not agreed to a furlough.

Beyond that, Schnorf said the administration will seek health insurance concessions from workers, including higher co-payments and reduced benefits. A temporary freeze on pay raises scheduled next year also may be brought to the bargaining table.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Thousands to be laid off

Bloody cuts coming, says budget director

By DOUG FINKE
STATE CAPITOL BUREAU
17 Jan 2002

Gov. George Ryan's budget plan for the next fiscal year likely will include thousands of layoffs, closing additional state facilities and budget cuts for virtually every agency, Ryan's budget director said Wednesday.

"It's going to be bloody," Steve Schnorf said during an interview with The State Journal-Register editorial board. "It's probably going to be the bloodiest budget that the state has seen introduced since 1992."

That was the last time state government was mired in a financial crisis.

Schnorf is working now on preparing the governor's budget plan for the 2003 fiscal year, which starts July 1. Ryan will present it during a speech Feb. 20.

Although many details must still be resolved, Schnorf said he doesn't see how the budget can be balanced without layoffs.

"The governor won't like it. He will look for ways to avoid it. But when it is all said and done, I don't know how he will introduce a balanced budget that doesn't lay off a very significant number of additional employees and close additional facilities," Schnorf said.

He said the number of layoffs could be in the thousands. Including salary and benefits, the average state worker makes $55,000 a year. Using those figures, 1,000 layoffs would save the state about $55 million, Schnorf said.

"If we are trying to solve a $200 million problem, it would be 4,000 employees, if we can get them off for the whole year," he said.

Layoffs and facility closures are only part of the bleak financial picture as Ryan, who's in his final year as governor, tries to craft a new budget. The recession means that revenue increases will be minimal, and what little new money there is will be eaten up by higher employee insurance costs, pension commitments, contractual pay raises and the cost of staffing newly opened prisons for an entire budget year.

"The big agencies in government, with two exceptions, are going to have to take very large reductions," Schnorf said, naming Corrections and the Department of Central Management Services, which pays health insurance claims, as the only agencies likely to escape the ax.

The new cuts would be in addition to those Ryan already made to try to plug a revenue shortfall for the current fiscal year, with more than $460 million having been slashed from the $53 billion budget lawmakers passed last spring. Most of those cuts were in Medicaid payments to hospitals, but the Ryan administration also wants to save money by privatizing food service in prisons and mental health facilities and by reducing education spending.

"Everything we have done so far not only will not be restored but will be worsened" in the next budget under the current revenue estimates, Schnorf said.

With no improvement in the financial picture, the state is looking for additional ways to save money - primarily from state workers.

"It's the single biggest piece left within the governor's control," Schnorf said.

The state spends about $3 billion annually on salaries paid out of the general checking account.

Already, Ryan has asked all employees under his jurisdiction to take an unpaid furlough day. He estimates each statewide furlough day will save $8 million.

In addition, concessions will be sought on health insurance - a combination of higher co-payments and reduced benefits. A wage freeze also will end up on the bargaining table, as union workers are scheduled to get a 4 percent cost-of-living increase July 1, and many will get a longevity raise as well.

"We wouldn't ask them to go a year with no increase; that wouldn't be proper," Schnorf said.

About 65,000 employees are affected by Ryan's furlough directive, 45,000 of whom are members of the American Federation of State, County and Municipal Employees. More than half of the workers under the governor's control are in just two agencies, Corrections and the Department of Human Services.

The union and the state have been negotiating without success over an agreeable furlough plan. Wage freezes and insurance cuts have not been put on the table, and the union won't discuss them, said AFSCME Council 31 executive director Henry Bayer.

"We have a contract, and we expect the state to live up to the contract," Bayer said.

Even if the union agreed to all of the concessions sought by the state, it would not save enough money to avoid layoffs, Schnorf acknowledged. However, he said the union can minimize the impact on its members.

"We're saying to them, 'It's going to be very bad if you don't cooperate,"' Schnorf said. "'If you do cooperate, it will still be bad, but it will be a little better than it would have been."'

"They may try to put the jacket on us, but I think people see through that," Bayer responded. "State employees have wised up to this administration. This administration has embarked on a course of action that is detrimental to them and to citizens generally."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

J. Ryan vows to cut pork, state payroll

By DOUG FINKE
STATE CAPITOL BUREAU
16 JAN 2002

Attorney General Jim Ryan said Tuesday, if elected governor, he will clamp down on legislative pork projects and trim state governments work force by giving employees an incentive to retire early.

The ideas are part of a nine-point plan Ryan outlined to restore what he called financial and ethical responsibility to the state.

"I think its fair to say people have lost trust in the office of governor," said Ryan, one of three Republicans seeking to replace retiring Gov. George Ryan, also a Republican. "They want leaders they can trust. They want leaders who keep their promises."

Jim Ryan said he will clamp down on spending allocated for projects sought by individual lawmakers, identified as "member initiative" money in the state budget.

"We are going to end member initiatives as we know them," Ryan pledged. "As governor, I will veto any budget that includes unidentified projects."

The General Assembly in the past has allocated millions of dollars to each political caucus for member projects without explaining how the money will be spent. Lawmakers decide later which projects will be funded, without any public review.

"This process emasculates the legislature, and it is not fair to taxpayers," Ryan said.

George Ryan negotiated budgets with legislative leaders when the leaders insisted that member initiative money be included. Governors spokesman Dennis Culloton said the attorney general will have his hands full trying to eliminate member projects.

"Good luck to him," Culloton said. "The legislative caucuses were unyielding in their support for member initiatives."

Just last week, Gov. Ryan suggested using more than $100 million in uncommitted member initiative money to help alleviate budget cuts imposed on hospitals, Culloton said. Legislative leaders rejected the idea, he said.

Jim Ryan also said that by 2006 he wants to have fewer employees on the state payroll. He did not say how many jobs he wants to cut.

Ryan wants to offer workers an early retirement incentive, which would be structured to make it financially attractive to retire at an earlier age. When the state last offered such an incentive in 1991, some 4,000 workers took advantage. Ryan said he hopes a similar number would use it now.

In theory, the state saves money by not filling all of the vacancies or by replacing older, more highly paid workers. However, the state is also obligated to pay retiring employees millions for unused sick and vacation time they have accumulated.

Ryan also said he will set up an independent commission to identify "waste, abuse and duplication" in state government, that he will beef up a reserve fund for the budget that could be tapped during economic downturns, and that he will control spending better than it has been the past couple of years.

"We have to rein in state spending," he said. "You cant say yes to every proposal and every special-interest group."

In addition, Ryan said he wants to re-create the state board of ethics as it existed until George Ryan became governor. He also wants top state officials to sign a statement setting out principles of ethical conduct theyll be expected to follow.

Jim Ryan is running in the March 19 Republican primary against Lt. Gov. Corinne Wood and state Sen. Patrick OMalley, R-Palos Park.

OMalley spokesman Dan Proft said Ryans ethics proposal is too late.

"It would have been nice if he had monitored the ethics of state employees as attorney general the last four years," Proft said. "He has the authority and duty to investigate corruption."

OMalley is against wasteful spending, too, but the member initiative money "represents a very small percentage of a $53 billion budget," Proft added.

Wood already has released an economic accountability plan and an ethics proposal, her spokeswoman, Tressa Pankovits, said.

"We welcome Mr. Ryan to the campaign," she said.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

The 5 percent solution

By Rich Miller
14 JAN 2002

If you've read this column more than a couple of times, you're bound to have noticed that I often criticize state legislators for being so lame.

The members have allowed their legislative leaders to usurp just about all the power there is at the Illinois Statehouse. Leaders raise most of the campaign money, control all the staff, decide which bills are voted on and have almost completely taken over the budget-making process. Power in the General Assembly is now divided between four "haves" (the two party leaders in both chambers) and 173 "have nots."

It's pretty pathetic, and the members are mostly to blame. They are enticed into giving up legislative power because they want jobs and contracts for their friends, a choice committee assignment, more campaign cash, or front-row tickets to a Chicago Bulls game for visiting relatives. They have become prisoners in a gilded cage of their own making.

"The process shorts the cloutless, embarrasses clueless back-bench lawmakers and offends the concept of a democratic process," wrote noted Illinois political thinker James Nowlan not long ago. Nowlan was writing about the way the leaders had hijacked the budget process, but he could have been referring to the entire legislative system.

This past week, however, some members of the Illinois House decided enough was enough.

It all started when the governor and the four legislative leaders worked out a deal to allow the governor to cut more money from the still troubled state budget.

Governor George Ryan already sliced $500 million out of the budget last fall, but he wanted the authority to slash even more, so he convinced the legislative leaders to give him the power to cut up to five percent from his state agencies' budgets.

A few months ago, House Speaker Michael Madigan refused to help Ryan make his initial round of cuts. Madigan said his members didn't want to make the tough votes to cut precious programs.

Since then, though, the media has excoriated the General Assembly for its cowardice, and the haranguing appears to have had an impact.

Madigan's members, and several House Republicans, decided that giving George Ryan carte blanche to slash up to $850 million from the state budget without their input was just not right.

So, in a rare move, the House rejected the deal. Members complained bitterly during debate about being left out of the legislative process too often. They wanted more input, they said, and this looked like a good place to start. They pointed out that the last time the state faced a budget crisis, in 1991, members voted on just about every cut that was made.

Afterwards, there was much talk about whether Speaker Madigan, House Republican Leader Lee Daniels or Governor Ryan himself had somehow deliberately sabotaged the budget-cutting deal.

That's not entirely out of the question. Madigan didn't seem too thrilled with the proposal in the first place, and never promised that it would pass. Both Madigan and Leader Daniels were also under intense pressure from nursing home owners, who were reportedly facing $100 million in cutbacks if Ryan received the new cutting authority.

To top it off, the state's largest labor union, the American Federation of State, County and Municipal Employees, was against the proposal. AFSCME was worried about layoffs or other cutbacks if Ryan was given so much power. But AFSCME also wants to block a Ryan proposal to privatize food service at the state's prisons. The privatization plan would eliminate numerous state jobs, and AFSCME has always opposed privatization in any form. So the union hoped to defeat the bill to force Governor Ryan to back off the prison idea.

But Ryan himself even seemed to change his mind about the "5 percent solution." If the bill passed, he would be under enormous pressure to restore cuts to vital social service and healthcare programs that he had made just a few months ago. "It was a Pandora's Box," conceded one top Republican. So, Ryan refused to talk to AFSCME about the prison plan, and even rejected offers to lobby individual legislators on behalf of the new bill.

So, was this a true victory for the rank-and-file? Yes, even though the top dogs who cut the deal may have decided for various reasons that it wasn't worth the trouble.

Killing this bill was the easy part. Grabbing back some of the power they've ceded to their leaders will take guts and lots of hard work. I'm not sure they have it in them.

Big questions after bill failure

SPRINGFIELD (AP)
14 JAN 2002

Money is pouring out of the state treasury faster than it comes in. The deficit has reached $500 million and is still growing. Everyone agrees something should be done.

But Plan A was rejected, Plan B made everyone mad, Plan C failed, and there is no Plan D.

Now what?

No one has a clear answer to that question, although it may determine whether state employees lose their jobs, rural hospitals close their doors or schools lose state money.

"Everyone's belief is that certainly some additional cuts may be necessary. The question is probably not 'if' but 'how much,"' said Stephen Schnorf, Gov. George Ryan's budget director.

Ryan has made it clear that he is done talking about the current budget. Unless lawmakers come to him with some new proposal, Ryan says, he will concentrate on putting together the next budget.

That means the shortfall -- which Schnorf said could range from $100 million to $300 million -- would be carried over, using up much of the new money expected in the coming fiscal year.

"Pay me now or pay me later," said Sen. Steve Rauschenberger, the Elgin Republican who chairs the Senate Appropriations Committee.

Meanwhile, legislative leaders bicker over who is responsible for making the next move, and some rank-and-file lawmakers want across-the-board cuts so they cannot be blamed for favoring one program over another.

And key interest groups hope to avoid budget cuts altogether. They are pushing to reduce expenses in other ways or increase revenue by raising taxes.

"Isn't a cigarette tax to support health care and human services better than cutting health care? That's an idea I think really has merit and could have some greater discussion," said Illinois Hospital Association lobbyist Howard Peters III.

Reaching consensus will be even more difficult than usual because this is an election year. Few lawmakers want to stick their necks out by voting to cut the budget just before facing the voters.

"Everybody's a little cautious about what they're going to do, so they haven't quite got the courage they need to step up and do the job that needed to be done," Ryan said last week.

The problem surfaced last fall, when it became clear that tax money was not coming in as quickly as expected, but costs -- especially for health care -- were rising rapidly.

Ryan said he needed to cut $500 million and asked lawmakers to work with him on trimming the budget. But Ryan was rebuffed by House Speaker Michael Madigan, D-Chicago, who said his members did not want to take part.

So the Republican governor went ahead and cut $485 million from the areas where he already had discretion -- prisons, Medicaid payments to hospitals, state workers' salaries and more.

Lawmakers can turn budget tide

OUR OPINION
STATE JOURNAL REGISTER
13 JAN 2002

CHICKEN. That's what Gov. George Ryan says House members were Thursday when they failed to give him expanded authority to cut parts of the budget specifically nursing home reimbursements should the state's budget crisis worsen.

But that's not how defiant House members described the action. Several downstate members all but cackled at Ryan's assessment that they voted out of election-year fear they'd be saddled with responsibility for whatever cuts the governor might make. No, in their view, the vote was a brave one that of a flag-draped eagle, not a chicken to defy a move that would put so much power in Ryan's hands alone.

Several lawmakers said this vote might well be the turning point in rank-and-file lawmakers finally seizing back from party leadership the right to help decide what the taxpayers' money gets spent on. What a concept!

TIME WILL TELL whether the chicken or the eagle shows up when the legislature comes back Jan. 29. It will be very big news indeed if all of a sudden a majority of state lawmakers turn out to be willing to reject the "guidance" of the party leaders who so generously fund their campaigns.

But there's no reason lawmakers have to wait that long to embark on this brave, new way of life. As Nike says, just do it! They can start today by returning to the general revenue fund an estimated $130 million in unspent, undesignated member initiative money. If it should take a vote of the entire legislature to do so, they can arrange that later. But they can pledge to do it now.

In addition, agency directors, the judiciary and members of state commissions and boards can join them by further slowing down their spending beyond the constraints Ryan has imposed. For his part, Ryan could certainly set a better example of fiscal responsibility by bowing out of the planned Cuba trip with pharmaceutical execs, or at least go on his own dime, not the state's.

THE AVERAGE Illinois voter may not have much idea what other ways the legislature was begged to consider balancing the budget from revoking corporate tax loopholes to adopting cost-saving drug-buying groups.

But they know full well that the legislature has happily signed on for the wild spending ride Ryan has taken this state on in recent years - their mailbox, TV set and newspapers have been filled with smiling pictures of their lawmaker taking credit for this stretch of road and that soccer field. And the savvier voters know the legislature kept spending freely even when their own revenue-forecasting experts, the bipartisan Economic and Fiscal Commission, said not to. In April, The State Journal-Register reported the growing revenue concerns of the legislative analysts under the headline, "Sales taxes may fall way short / New budget may face $400 million deficit."

Nonetheless, come May, the lawmakers led by the nose by their party leadership as always adopted a big, bloated $53 billion budget, based on the rosier assumptions of the governor's Bureau of the Budget instead.

AND NOW some state workers will lose their jobs due to facility closings, and the rest will cough up a day's pay. Some 100,000 Medicaid patients will be dropped from coverage and others are going to find it harder to find care. And the rest of us with private insurance will see our costs continue to soar to make up the difference for financially strapped hospitals.

By November, there's a good chance Illinois voters will forget who called who chicken last week at the Statehouse.

But they will know full well who laid an egg.

Statehouse Insider

By DOUG FINKE
STAFF WRITER
13 JAN 2002

You have to wonder if House Speaker MICHAEL MADIGAN and House Republican Leader LEE DANIELS ever read those polls showing people are fed up with partisan bickering in Congress. Or maybe they think Illinois voters don't have those kinds of feelings about the beloved Illinois General Assembly.

After the House narrowly defeated Gov. GEORGE RYAN's latest budget-cutting plan, Madigan and Daniels engaged in the most vigorous round of finger-pointing you'll see outside of a kindergarten playground.

Madigan: Daniels should have put more Republican votes on the bill, since it's a plan coming from a Republican governor. You can't expect Democrats to support it.

Daniels: It's Madigan's fault. The GOP put up its fair share of the votes. Four of Madigan's top lieutenants voted against the bill. If Madigan really wanted the bill to pass, he would have put the squeeze on them to support it.

This is the abbreviated version, and even it's tiresome, isn't it? Madigan and Daniels are both political experts. Somewhere, somehow, they've determined that they get more political mileage out of this kind of stuff than in actually solving problems.

The worst part is that since this is a redistricting election year, last week represents only the beginning.

The biggest laugh out of last week was all those lawmakers who said they want a chance to vote on which parts of the budget get cut, rather than leaving it to Ryan. Who's kidding whom?

When you have to cut $500 million or more from a budget, someone is going to get hurt. Lawmakers can let Ryan make the cuts and take the heat, or they can put their names and votes on a bill that makes those cuts. Anyone out there really think these 177 profiles in courage are ever going to put their votes on a bill that cuts spending in any real way? Didn't think so.

Confused by all the budget cuts and budget restorations? Don't feel bad. Ryan's office isn't doing much better.

When Ryan announced last week that he was restoring $24 million in Medicaid payments to hospitals, reporters wanted to know where he was getting the money. The money was cut in the first place because the state is in a cash crunch.

Ryan spokesman DENNIS CULLOTON was listed on a press release as the person to contact. He essentially said the money would come from elsewhere in the budget, but he didn't know where. A couple of hours later, the administration sent Budget Director STEVE SCHNORF out to explain to reporters that they'd get the money by further cutting Medicaid payments to doctors and dentists.

The next day, a couple of Public Aid officials appeared before a legislative panel. Asked by the lawmakers how the state is making up the $24 million, they said it was still undecided. So in the space of about 18 hours, the answers were A)We don't know; B)From other cuts; and C)We're still working on it.

And these guys wonder why they have a credibility problem?

Some folks filed a lawsuit against Ryan last week to force him to keep open the Lincoln Developmental Center in Lincoln. Among them is Sen. LARRY BOMKE, R-Springfield, whose district doesn't come within 20 miles of the LDC.

The lawsuit explains that Bomke is "state senator for the 55th district" and that "many of the employees of the LDC live in the 55th district" so there's a reason for him to join the lawsuit. (Attention legal eagles: Bomke represents the 50th District, not the 55th).

Yeah, Bomke's just looking out for all those poor LDC workers living in his district. Or maybe he's just been looking at the new legislative map again. Under the new map, Bomke will be representing most of Lincoln. What better way to get the old name out to new constituents than by suing the governor over a highly emotional local issue?

Cynical people might call that political opportunism. Ryan simply called it stupid. "It wasn't very smart, frankly," is what he said, but you get the point.

Ryan has a long memory for people who cross him, especially if he sees it as a political betrayal. Hope Bomke wasn't expecting to get much from the governor's office this year.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Vocational ed wont be cut from prisons

By DEAN OLSEN
STATE CAPITOL BUREAU
12 JAN 2002

Teachers who do their work behind bars were jubilant Friday after learning that Gov. George Ryan had scrapped his budget-cutting plans to eliminate vocational education programs at Illinois correctional centers.

Ryan previously announced the cuts as part of almost $500 million in state spending reductions to balance this fiscal years state budget amid a recession.

The governor said his staff since has learned that $4 million to keep the free vocational program running at least through June 30 can be funded from federal work force training money the state already has received.

The decision means more than 200 full-time instructors and support staff wont lose their jobs Feb. 1.

"There were people crying and totally thrilled," said Tom Kerkhoff, who heads correctional education programs offered by Mattoons Lake Land College at prisons including those at Dwight, Dixon, Hillsboro, Taylorville, Danville and East St. Louis.

Lake Land employs 73 people full time to operate the programs at seven downstate prisons.

According to Corrections, Ryans announcement also avoids the need to lay off 39 people employed by Jacksonvilles MacMurray College who work at the Lincoln, Logan, Western Illinois and Jacksonville correctional centers and at a Pittsfield work camp.

Studies have shown that inmates who have completed vocational training are less likely to commit more crimes and return to prison.

"These programs provide valuable, productive inmate assignments and provide a safer environment for inmates and staff alike," Donald Snyder, director of the Illinois Department of Corrections, said in a news release.

Between 6,000 and 7,000 inmates at Illinois non-maximum-security prisons can continue to attend classes that prepare them for jobs as custodians and in the building trades, culinary arts, horticulture, auto mechanics, data processing and other specialties.

The teaching staff is employed through state contracts with 11 different Illinois colleges and community colleges.

It was uncertain Friday whether the federal money from the Workforce Investment Act would be available for the next fiscal year, when state revenues also are expected to be tight.

No programs will be cut as a result of the transfer of federal dollars, state officials said.

Federal money wasnt available to retain $1.4 million in state-funded academic classes that can help prison inmates earn associates degrees. State money for those classes also was part of Ryans cuts. About 22,000 inmates annually take part in the classes, which are taught by part-time instructors.

Ryan said in a news release that he hopes colleges and community colleges can continue these programs on their own. But school officials said they doubt the colleges can afford to continue offering the same range of academic classes.

Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.

Health insurance benefits may be cut

AFSCME leader says matter will not be negotiated

By DOUG FINKE
STATE CAPITOL BUREAU
11 JAN 2002

State employee health insurance may have to be scaled back next year, Gov. George Ryan's budget director warned Thursday.

As the administration tries to put together an austerity budget for fiscal 2003 that will start July 1, budget cutting will have to focus on areas of major state spending, Steve Schnorf told the Senate Executive Committee. That includes state employee health insurance, he said.

"The growth in the cost of employee health care is going to be very, very, very significant," Schnorf said.

He declined to specify how the state planned to trim health insurance costs, but agreed that possibilities include higher co-payments for services or fewer benefits offered. Either of those would have to be negotiated with employee unions, although the changes could be imposed on nonunion workers.

Council 31 of the American Federation of State, County and Municipal Employees represents about 45,000 state workers. Executive director Henry Bayer said the union absolutely would not negotiate changes in insurance benefits.

"We don't intend to open our contract," Bayer said. "We're paying a lot of money for insurance now, and we're not interested in paying any more."

Bayer implied that position wouldn't change even if the alternative is layoffs.

"If we start down that path, they can always threaten layoffs when they want to extract something from us," he said. "They should be looking at other places for savings."

In fact, a mail-order prescription drug service for some workers and their families is in the works. The service will be available to about 150,000 people covered by non-HMO health plans, said Judy Pardonnet, spokeswoman for the Department of Central Management Services, and will start July 1. It is expected to save several million dollars annually.

Group health insurance costs for state workers already are skyrocketing this budget year. The state has warned that beginning in early March, workers in non-HMO health plans will start seeing delays in payment of their insurance claims.

At one point, state officials hoped for an influx of money to avoid the payment delays. However, with the state already cutting spending in other area, there is virtually no chance extra revenue will be available for employee health insurance.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

HOUSE TELLS GOVERNOR 'NO,' SCUTTLES DEAL

BY ANTHONY MAN
SPRINGFIELD BUREAU
Fri Jan 11 2002

SPRINGFIELD -- An unusual political drama played out Thursday at the state Capitol as rank-and-file members of the Illinois House defeated a budget-cutting plan crafted by the governor and legislative leaders.

The legislation would have given Gov. George H. Ryan broad power to cut almost every area of the state budget if the state's lousy financial picture deteriorates. The vote was close. There were 57 "yes" and 58 "no" votes in the House, where 60 are needed for passage. The Senate passed the measure 42-14.

"I was somewhat surprised, frankly, because I thought we had a deal, and I thought the caucus leaders would go in and deliver," Ryan said. He blamed election-year jitters and the Democratic and Republican leaders in the House each said the other one should have rounded up more votes.

The result represented a major victory for the American Federation of State, County, and Municipal Employees, which represents state government employees. The union is strongly opposed to a previous budget-cutting decision by Ryan to contract out the food service operations of state prisons.

AFSCME lobbied hard against the legislation.

Legislators with prisons, and prison workers, in their districts are anxious to avoid offending the union in an election year when they are running in new and sometimes unfamiliar territory because of redistricting. That bloc of legislators, both Democrats and Republicans, was greater than the margin of defeat.

House Minority Leader Lee A. Daniels, R-Elmhurst, acknowledged many of his members voted "no" because "they're concerned that the AFSCME was putting additional pressure on them." Henry Bayer, the union's executive director, said he was sure that the privatization was a central factor in convincing many downstate legislators to vote "no."

Ryan said after the defeat that he was willing to "negotiate" on privatization, but said he would not "give up" his plan to contract out food service because it would save $20 million in the next fiscal year's budget. "I can't do that. Again, it's a $20 million hit. We've got to sit down and figure out where we're going to get the money to do that from. Do folks understand we're trying to balance the budget? I mean I'm not privatizing just because I want to do it."

Another big winner is the nursing home industry. Under existing law, Ryan cannot cut payments to nursing homes that provide care for people in the Medicaid health program for the poor and elderly. So far, hospital budgets have been cut deeply because Ryan has the authority to cut there, and future cuts might have hit nursing homes.

Defeat of the legislation does not mean an immediate crisis for state government, and Ryan said he did not know when or if he would have used the enhanced powers anyway.

He wanted the authority to cut up to 5 percent of any agency's budget in case state finances deteriorated more. Last year, he cut $485 million to help close a $500 million hole in the state's $23.4 billion general revenue fund, the main spending account. With new predictions of the gap growing another $100 million to $250 million, Ryan and the legislative leaders wanted a mechanism in place for additional cuts.

"This isn't the end of the world," Ryan said. "Remember why we wanted the 5 percent. It wasn't for anything that we needed to do immediately. It was a precautionary step against future downturns in the revenue field."

The budget problems are attributed to government overspending, use of overly optimistic revenue forecasts, the recession that began 10 months ago, and economic fallout from the Sept. 11 terrorist attacks.


Ryan budget deal unravels in House

By Ray Long and Christi Parsons, Tribune staff reporters. Tribune staff reporter Adam Kovac contributed to this report
Published January 11, 2002

SPRINGFIELD -- A newly minted budget deal struck by Gov. George Ryan and legislative leaders blew up Thursday, as the Democratic-controlled House refused to go along with a plan to give Ryan the flexibility he says he needs to trim spending more fairly and manage the state's fiscal crisis.

While Republicans and Democrats blamed each other, a stunned Ryan complained about the last-minute unraveling of the agreement and was left to ponder what he would do in a worst-case budget scenario.











"It's an election year, and some of these folks are afraid to step up and do what they have to do," Ryan said. "They didn't have the backbone to do it."

The legislation easily cleared the Senate but stalled when the House supplied only 57 votes, three short of the 60 needed to pass. Fifty-eight lawmakers opposed the bill, which would have let Ryan cut 5 percent from his own agencies' budgets, giving him more options on where to trim.

A day before, House Speaker Michael Madigan (D-Chicago) and other legislative leaders had agreed to give Ryan the power to spread the cuts more equitaby rather than concentrating them in areas where he had already been granted complete spending control.

Ryan has blamed the current restrictions for his recent sharp funding cuts to hospitals serving the poor and for requiring, among other things, closure of a children's rehab center and the cut of a day's pay for most state workers. Ryan made the cuts to fill a nearly $500 million budget hole late last year.

On Thursday Madigan walked from seat to seat talking to members during the long debate in the House, where his members hold a 62-56 majority. He said he won some votes, but his side ultimately supplied only 26. House Republicans provided 31.

Speaker's forecast falls short

House Minority Leader Lee Daniels (R-Elmhurst) chastised Madigan, accusing him of arguing out of "both sides of your mouth" and later saying the powerful speaker could have picked up more votes.

Madigan said "it's not easy to convince Democrats to vote for this bill," even though the speaker said a day earlier he thought it would pass.

Ryan's aides say there may still be a $100 million hole in the budget for the fiscal year that ends June 30; other experts think it's bigger. So this week, Madigan dropped his opposition to giving Ryan more power to select his cuts, setting up Thursday's showdown.

Many lawmakers objected to yielding decision-making power to Ryan instead of taking responsibility themselves. But others lent a hand in the defeat.

Unions opposed the bill because Ryan's cuts may threaten members' jobs, especially at prisons. Downstate Democrats with prison workers in their districts say they could have delivered up to 10 votes if Ryan had abandoned a plan--announced earlier--to privatize prison food services.

Lawmakers also worried about whether nursing homes would bear the brunt of Ryan's future cuts if the plan took effect. Hospital advocates objected to the plan because it contains no guarantees that they won't suffer cuts again--and their institutions are reeling from Medicaid payment cuts in November.

The governor tried to blunt the blow to them this week by restoring some money that had been earmarked for hospitals hit hardest last fall.

Hoping to help Ryan spread future budget pain more evenly, Madigan and other leaders agreed Wednesday to pass the new legislation for him. On Thursday, the Senate promptly did so on a 42-14 bipartisan vote.

The House voted it down hours later. Madigan filed a motion to let it come back up when the House returns late this month.

Senate Appropriations Chairman Steve Rauschenberger (R-Elgin) said Thursday's impasse may not cause an immediate budget crisis. But Rauschenberger said it creates "unreasonable uncertainty in those who are trying to provide state services and run state agencies."

It also creates uncertainty for lawmakers heading into the election season, a reality that loomed large over the Capitol on Thursday. "Yes" and "no" votes will draw criticism back home--and, for those aspiring to higher office, statewide.

Voting for the plan were the Republicans in statewide campaigns, including Sen. Patrick O'Malley of Palos Park, who is seeking the Republican nomination for governor; Rep. Bill O'Connor of Riverside, a candidate for lieutenant governor; and Rep. Jim Durkin of Westchester, who is seeking his party's nod to run for U.S. Senate. On the Democratic side, Rep. Tom Dart (D-Chicago), a candidate for treasurer, opposed the bill.

Lisa Madigan votes `no'

The most intriguing vote against the bill was cast by Sen. Lisa Madigan (D-Chicago), a candidate for attorney general, whose father, the House speaker, visited her chamber during Thursday's debate. Lisa Madigan said she thought legislators shouldn't abdicate budget-cutting responsibility.

Sen. Bob Molaro (D-Chicago) said Michael Madigan ventured to the Senate to spread the word that House passage was assured, so Senate Democrats who opposed a similar bill last fall wouldn't be "left out to dry" by voting for the new version.

The speaker also had another mission, Molaro said: "Whenever he goes around talking about anything governmentally, when he's done, he always says, `Oh and by the way, could you give more help to my daughter, Lisa?'"

The speaker said he didn't go to the Senate to discuss the bill.

Later, when asked why he appeared in the Senate, he said, "I forget."


Copyright 2002, Chicago Tribune

Ryan rebuffed on budget

House rejects new power to cut spending

By DOUG FINKE
STATE CAPITOL BUREAU
11 JAN 2002

The Illinois House on Thursday rejected a bill to give Gov. George Ryan broader power to cut the state budget.

The vote was 57-58, three shy of the 60 needed for approval. Democrats and Republicans blamed each other for the measure's defeat.

"I think there should have been more Republicans," said House Speaker Michael Madigan, D-Chicago. "This is a Republican vote. It is a vote for fiscal responsibility, for fiscal austerity."

"If he (Madigan) wanted it to pass, it would have passed," said House Republican Leader Lee Daniels, R-Elmhurst.

House Bill 3495 would have given Ryan, a Republican, the power to cut up to 5 percent of the agency budgets under his control. Only general state aid for public schools would be exempt.

Ryan wanted the power in the event the state's financial condition deteriorates further and he has to make additional cuts to balance the budget. Financial forecasters have said an additional $100 million to $250 million in reductions might have to be made. The bill would allow Ryan to spread those cuts across a wider part of the state budget, some of which is off-limits to him now.

"I thought we had a deal," Ryan said after the House vote, referring to a meeting with the four legislative leaders Wednesday. "We'll see how things happen. This isn't the end of the world."

Ryan praised the GOP-controlled Senate which approved the bill 42-14 and House Republicans for supporting the legislation. Thirty-one of the 56 House Republicans voted for the bill. Twenty-six of the 62 House Democrats supported it.

However, the governor said some lawmakers simply chickened out on a "tough vote."

"I think it's an election year, and some of these folks are afraid to step up and do what they have to do," he said. "They didn't have the backbone to do it."

Lawmakers are not scheduled to return to Springfield until Jan. 29. At that time, Madigan said, he is willing to call the bill for another vote.

"I think they (Republicans) ought to find three votes," Madigan said. "Democrats don't like to reduce (spending) for social services."

"We have a sizable number of members who are concerned about the privatization issue," said Daniels of Republicans voting against the bill. "They (three more votes) just weren't there."

In addition to scaling back health-care providers' Medicaid reimbursements and other social-service cuts, Ryan has embarked on a plan to privatize food service at state prisons and mental health facilities. The move is strongly opposed by the American Federation of State, County and Municipal Employees, which feels it will cost state workers their jobs.

Ryan said no one made an issue of privatization before Thursday's vote. At the same time, he said he's willing to "sit down and talk about privatization."

Because it is occurring late in this budget year, privatizing food service is only estimated to save about $2 million in fiscal 2002, which ends June 30. However, it would save $20 million in the state prisons alone next year, Ryan said.

Earlier in the day, AFSCME executive director Henry Bayer told a Senate committee that HB 3495 takes "a meat ax to the budget."

"I think it would be terribly shortsighted to give the governor this authority," Bayer said. "Why make long-term permanent cuts in the budget if this is only a short-term recession?"

Several House members complained that instead of giving Ryan the authority to make more cuts, they should do it themselves, going line by line through the $53 billion state budget. However, Rep. Gary Hannig, D-Litchfield, said budget negotiators tried for weeks to do just that.

"We had time to make these cuts (before now) if we had shown the backbone to do it," Hannig said.

There should be no immediate effect on state services from the bill failing to pass. Ryan said he's finished cutting the budget for now and only wanted the power to make further reductions if the state's financial condition doesn't improve.

"I'll do what I have to do if the revenues aren't there," Ryan said. "At this point, we don't have to make any further cuts."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Ryan getting a bigger ax

Legislative leaders agree to give governor more spending control

By DOUG FINKE
STATE CAPITOL BUREAU
10 JAN 2002

Legislators are preparing to give Gov. George Ryan the power to cut much of state spending by up to 5 percent to offset a bigger deficit than has previously been acknowledged.

Under a bill scheduled for a vote today, only general state aid to public schools will be off limits. Ryan and the four legislative leaders also agreed Wednesday that money for Illinois FIRST construction projects controlled by lawmakers will be spared the budget ax.

However, any other agency budget under Ryans control could be pared by up to 5 percent if the states financial condition deteriorates further.

House Speaker Michael Madigan, D-Chicago, balked at giving the Republican governor that kind of budget-cutting authority less than two months ago, when the General Assembly was in its fall veto session. On Wednesday, Madigan said he now supports the idea.

"With the economy in free fall, in my judgment, this is merited," he said after a closed-door meeting with Ryan and the other legislative leaders.

The push to give Ryan additional budget-cutting authority came as the governor warned that the states budget hole could be $100 million to $250 million greater than previous estimates.

Already Ryan has proposed $485 million in budget cuts and plans to spend $230 million of state governments bank balance to cover higher-than-expected spending and much-lower-than-expected revenues this budget year, which ends June 30. The cuts include Medicaid payments to hospitals, closing a maximum-security prison and forcing thousands of state employees to take an unpaid day off from work.

Ryan said it is not a foregone conclusion that further cuts will have to be made. However, he said the bill is needed in case some of the more dire forecasts come true.

"We think we have the (current) budget pretty well satisfied, but if we dont, we need to have the authority to go back in and make cuts," he said.

Administration officials met privately with the House Democratic caucus Wednesday to explain the bill and why it is needed. Some Democrats came away feeling the state is worse off than is being acknowledged.

"It (additional cuts) sounded pretty unavoidable," said Rep. Jeff Schoenberg, D-Evanston. "Maybe not the full 5 percent, but it sounded pretty unavoidable."

The bill allows Ryan to slash up to 5 percent of the agency budgets under his control until June 30, when the legislation expires. He cannot cut budgets for the other statewide officials, judges or the General Assembly.

The bill will specifically prohibit cuts to general state aid for public schools. Money for other education programs, such as school lunches and transportation, can be cut, as can other parts of the State Board of Education budget.

Ryan said he suggested that money in the Fund for Illinois Future which finances millions of dollars in construction projects doled out by legislators should be subject to the same reductions.

"It was something that most of (the leaders) didnt want to do, so we didnt do it," he said.

Madigan said money in that fund is under the legislatures control and thus should not be part of the budget-cutting authority given to the governor.

Ryan would not identify what parts of the budget will be cut if that becomes necessary. He also said he does not plan to rescind any of the reductions he ordered in November, if the bill passes, even though he has argued that such authority would allow him to soften the impact of slashing such things as Medicaid reimbursements to hospitals.

Both Democratic and Republican House members said they were not happy about granting Ryan budget-cutting authority.

House Democrats are particularly worried about further cuts to human-service programs. Among Democrats, there is feeling lawmakers ought to vote on specific spending reductions, Madigan said. However, he said he doubted enough lawmakers would ever vote to cut spending for a specific program.

Madigan also said he thinks a better solution to the budget problem is a short-term tax hike.

"I think that we ought to get more revenue in the short term," he said. "There was no support (among the leaders) for increased revenue at this time."

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Rich Myers Letter to George Ryan

8 JAN 2002

As you know we visited Rich at his office in Macomb last month , concerned about the closing of dietarys, here is is letter to George Ryan stating his position.


January 3, 2002

Honorable George Ryan, Governor
207 State House
Springfield, IL 62706

Dear Governor Ryan,


I realize the difficulties you face as Chief Administrative Officer of the State of Illinois in identifying where to make the necessary budget cuts. I share your anguish at the limitations placed upon you as you try lo minimize the impact of the spending cuts on all segments of the population. I wish the legislature had been able to help spread the cuts over a larger area of the State's budget.

While acknowledging your difficult task, I am writing to request that you reconsider your decision to privatize dietary services and housekeeping within the Department of Corrections.

The General Assembly has debated the issue of privatization during the Spring session, as well as previous sessions. For numerous reasons, the issue failed to generate enough support to allow the Department to continue to pursue their efforts. Those reasons have not changed.

Charges of overpayment by Cook County, the State of Ohio, and the District of Columbia for food service in their correctional facilities offer little confidence the Illinois Department of Corrections will be able to realize any cost savings.

Beyond the issue of cost is the issue of safety. Since the bulk of the preparation and serving of the food is done by inmates, DOC food service employees essentially provide security service. These dedicated employees of the State are constantly listening and watching for any sign that the security and safety of fellow employees and the institution could be compromised. They pass any observations on to correctional officers, or others in authority before any problems may arise. Privatized employees working for minimum wage, with limited training, are not likely to exhibit the same concern or alertness of the current food service and housekeeping workers.



My own observations of privatized operations within the Department of Corrections further convinces me that this would not be a beneficial action. The contractors who provlde medical services at the two correctional facilities in my District have changed frequently, and each time the employees are faced with inconsistencies in work policies, wages, benefits. and work schedules. These employees are medical professionals, most of who have worked at these facilities for many years. New contractors implement new wage scales, and many times start the benefit schedule as if the employee were new to the institution. Additionally, these employees frequently encounter authority and control conflicts between Department of Correction management and medical services contractor management, placing these employees in the middle of jurisdictional disputes.

The elimination of post-secondary education should be reviewed as well. Research would indicate that inmates who receive an advance education are less likely to return to prison, reducing the cost to the State and society for those inmates. While in prison facilities, those enrolled in the educational programs occupying their time with a productive activity, and perhaps serving as a role models for other inmates. I urge you to reconsider complete elimination of these programs.


Finally regarding the closure of Joliet Correctional Facility, the 1300 beds in that facility are very necessary to the total prison system. Additional overcrowding at the remaining facilities in my opinion jeopardizes the safety of an already understaffed work force. If those beds are destined for another location, the correctional officers assigned to the Joliet facility should be retained and assigned to other facilities to supplement the staffing levels.

Thank you for considering my concerns. I stand ready to work with you in identifying ways the State may meet the challenge of reduced levels of revenue. Please do not hesitate to contact me if I may be of assistance in this regard.

Sincerely

(signature)

Richard P. Myers
State Representative
95th District






Jim Watson's Letter to George Ryan

4 Jan 2002

As you know, Rep. Jim Watson was at the Union Hall a few weeks ago , as we voiced our concern over the privatization issue . Here is his letter to George Ryan.


The Honorable George H. Ryan December 26, 2001
Governor of Illinois
207 State House
Springfield, IL
62706-1150

Dear Governor Ryan:

I am writing to request that you reconsider some of your recent decisions concerning the Department of Corrections. These decisions have been made in an attempt to cut costs. However, these cuts may in fact have long-term costs to the safety and security of the people of Illinois and the employees of the Department of Corrections.

As you are aware the issue of privatizing food service within prisons has faltered for lack of support, and for good reason. There is significant doubt as to whether or not privatizing would actually save money, and it is certain that privatization would compromise security and eliminate numerous decent jobs.

Food service supervisors are not merely cooks who help the prisons prepare food. They are actually important security professionals that are vital to the overall safety of the prison. They are supervising inmates working with knives, fire, and other potential weapons. They have been trained to keep things safe in the kitchen, how to respond if something happens, and how to keep contraband from getting out into the facility. Many of them have years of valuable experience working within prisons and would not be easily or cheaply replaced.


The only area in which a private company could cut the cost of food service would be through cutting payroll. Currently prisons use inmates to provide most of the labor needed. Some prisons have as many as 75 inmates working in the daily food service operations. Private contractors would have to use inmate workers to be cost effective. The need to use inmates in providing food service would require private companies to hire security personnel to oversee the inmates.


Clearly we must not have a minimum wageworker (with little or no training) supervising inmates in a place as dangerous as a kitchen. If private vendors provide the training and the pay required to hire and retain experienced employees, there will be no cost savings. If they do not, we will pay the price in increased assaults on staff and inmates.


Regarding the closure of Joliet, it would increase the strain put on the Department of Corrections and its' employees. Even with the 1,300 beds currently available at Joliet, the department is over capacity in its maximum-security facilities. Furthermore, moving the inmates from Joliet months before the new reception and classification center is ready ready in Stateville will create a dangerous environment for workers all over the prison system, as well as for inmates and the general public. Even after the new reception center is opened, inmates who otherwise would have been housed in a maximum security facility will be housed in less secure environments. Increasing the security concerns within the prisons is not only a threat to inmates and staff, it creates a real security concern for the surrounding community and state.


Regarding the loss of post secondary education at MacMurray College, statistics show the recidivism rate is 9.1% for released graduates, while the state average is 40%. The statistics suggest that this is a case of pay now or pay later, with higher crime rates and an increased burden on our prisons. The reality is, without post-secondary education, many more inmates will be released upon society only to victimize innocent citizens before they are caught again. I do not believe that the money being saved by the removal of these post-secondary programs is worth the inevitable increase in crime.


I appreciate your consideration of these points and hope that you will reconsider your intentions in view of the dangers and increased long-term costs that these decisions could have.


Sincerely,

Jim Watson
State Representative, 97th District




House may consider budget issue

Proposal on governors budget-cutting authority

By DOUG FINKE
STATE CAPITOL BUREAU
4 Jan 2002

State lawmakers may get another chance to expand Gov. George Ryans budget-cutting authority, and House Speaker Michael Madigan may be willing to help this time.

Madigan, D-Chicago, sent a memo to House members this week advising them that they could be in session next week longer than the scheduled two days. If that happens, the memo says, it will be to consider a bill the governor seeks to give him greater authority to make cuts to fill what is now estimated as a $700 million hole in the state budget.

During the fall veto session, Madigan said House Democrats did not support legislation to help Ryan, a Republican, cut the budget. However, Madigans spokesman, Steve Brown, said Thursday the House will deal with a budget bill if the GOP-controlled Senate passes one.

"The speakers view was if (the Senate) passes the bill, we would try to deal with it," Brown said, insisting this was not a change of position for the speaker.

Madigans memo specifically talks about House Bill 3495, which deals with Medicaid payments to hospitals and nursing homes. The state already has trimmed the payments as part of $485 million in cuts made last fall to help balance the budget for the fiscal year that ends June 30.

But while hospital reimbursements were cut, Ryan cannot reduce payments to nursing homes without legislative approval. The bill essentially would give him that authority.

The Senate twice tried to pass the legislation in the fall. However, HB 3495 failed because in the veto session 36 votes are needed for Senate passage, and only 30 senators voted for the bill.

"That bill is dead. The Democrats killed it," said Patty Schuh, spokeswoman for Senate President James "Pate" Philip, R-Wood Dale.

Schuh acknowledged that a new version of the legislation could surface next week, when only 30 votes would be needed to pass it. She declined to speculate whether that will happen.

However, Sen. Steve Rauschenberger, R-Elgin, said Thursday he will try to revive the legislation. Rauschenberger, who sponsored the bill during the veto session, called the Madigan memo "a real good sign" that the speaker is willing to be more flexible in giving Ryan authority to make cuts.

If a bill comes over from the Senate, Brown said, it will be given a hearing in a House committee, and Democrats will pledge half the votes needed to pass it on to the full chamber. Madigan is not making any guarantees beyond that, Brown said.

In fact, nothing may come over from the Senate. After watching Democrats vote against the budget bill last fall, "the ball is in their court," Schuh said.

"If the Democrats want to step up to the plate and take some leadership on the budget crisis, they will probably have to produce legislation," she said.

Medicaid rates to hospitals were cut about 10 percent at the start of the year, Ryans budget office said. The bill that is hung up in the Senate would limit those cuts to 5 percent while at the same time cutting rates to nursing homes by 5 percent.

"At least you spread those rate cuts out," said Rep. Art Tenhouse, R-Liberty. "Theyre going to be wider but not as deep. Nursing homes arent going to like it at all, but (otherwise) youre putting hospitals out of business."

State budget cuts: jobs on the line

Henry Bayer
3 JAN 2002

PROPOSED FACILITY CLOSURES,
privatization of jobs, threats of days off without pay and other budget cutting measures are rocking state government.

There's less money coming in than going out: by $500 million. The gap must be filled.

What went wrong? Right now there's a lot of finger-pointing. Gov. George Ryan blames the legislature and the legislature faults the governor, while our jobs and vital services hang in the balance.

In January the General Assembly reconvenes. It's time for the blame game to end and for action to begin.

The governor can't keep up his insistence that lost revenue must necessarily transfer into service and job cuts. Why won't he propose an alternative to the cuts he claims he was forced to make? And legislators can't legitimately claim their hands are tied either. They could pass legislation to make up for the revenue shortfall.

They could even agree to forego the $130 million in legislative initiatives that they appropriated last spring and that remains unspent. I hope they'll agree, their pork -- which is not as vital to the well-being of Illinois' citizens as our Human Services facilities and prisons -- should be put on the cutting table first.

I think we'd all agree that before you ask 60,000 state employees to take a day off without pay, you should cut the pork it would take to cover that cost -- a mere 10 percent of the total.

And before you put food and supply supervisors on the street through a privatization scheme; or put multi-handicapped kids on the street by closing the Illinois Center for Rehabilitation and Education; or put the mentally ill on the street by downsizing the Elgin Mental Health Center; or shrink our already too crowded prison bed capacity even more by shuttering Joliet; before you do all those things, shouldn't you cut the added 10 percent of legislative pork it would take to pay for all of those things?

And before you cut the state reimbursement rate to hospitals, thereby jeopardizing everyone's health services, shouldn't you first cut drug industry profits by negotiating lower prices for the state to pay pharmaceutical companies?

Of course you should do all of those things, and the governor and the General Assembly could do them. Those are the real choices. They can't pretend that there's no alternative to the governor's plan. They can't pretend that his cuts are necessary.

To start with, they have to own up to their own culpability in creating this shortfall.

Ryan, after all, signed legislation that cost the state hundreds of millions of tax revenues, money that could have been available to get us through this temporary downturn. Instead, most of it ended up in the pockets of oil companies and the richest among us.

And he continues to feed the bloated bureaucracy with people like Rep. Andrea Moore, a Republican legislator from the metropolitan Chicago suburbs, who resigned her office in mid-December to take a job with the Department of Natural Resources -- in a $96,000 a year position that had been vacant for seven years. Then there's the 16 Department of Corrections deputy director positions his administration created. And I'm sure there are more.

Legislators to whom we've turned for help in battling Ryan's cuts have not, frankly, behaved much better. Most of the senators and representatives we've approached have expressed opposition to Ryan's cuts, but they, too, are reluctant to acknowledge their role in creating the crisis or to offer an alternative plan to make up for the budget shortfall.

The reality is that the tax giveaways enacted in recent years for oil companies and big business were driven by our old nemesis Pate Philip. It's fair to say that the Republicans in the Senate bear a special responsibility.

On the House side, where the Democrats are in control, it's a little different story. Speaker Madigan can rightfully claim that he and his troops only went along reluctantly with the tax cuts. They can also point to the fact that they have passed the prescription drug legislation that would plug a big part of the budget hole. But that's not enough.

When it comes to our members' jobs and their safety and security, "close" is not good enough. We expect Speaker Madigan and his party, who generally support our legislation, to fight just as hard on our behalf as Pate Philip and his caucus fight for the business interests they represent.
And the legislators who elect these leaders can no longer be allowed to tell us they're with us, but their leaders won't allow legislation to come up. We must hold every one of them accountable.

Our jobs are on the line now, and their jobs will be on the line in the Fall. If they fail to act responsibly now, as the sign on the cover says, "We'll remember in November."


AFSCME local to picket Danville CC and Paris Work Camp Monday

January 3, 2002

DANVILLE, ILLINOISMembers of AFSCME Local 2052 will conduct an informational picket from 2 to 4 p.m. at the Danville Correctional Center and the Paris Work Camp on Monday January 7. "The picket is being held to protest Governor Ryan's plan to privatize dietary and commissary in the Illinois Department of Corrections, including the Danville Correctional Center, and the other proposed cuts announced by Governor Ryan," said Danny Adams, president of the local.

Last November, Governor George Ryan announced a plan that would privatize DOC dietary and commissary services, housekeeping and dietary in mental health facilities. The Governor's plan would also close Joliet Correctional Center and the Illinois Center for Rehabilitation and Education and parts of the Elgin Mental Health Center. The Governor also proposed that all state employees be forced to take unpaid leaves.

"These cuts are not necessary," said Jerry L. Wright, AFSCME staff representative. "There are other ways the Governor could solve this fiscal crisis." For example, under the Ryan administration the Department of Corrections has doubled the number of directors, he said. "There is no good reason for so many high paid management positions in the Department of Corrections."

Adams also pointed out that other states, including Florida and Michigan, have implemented prescription drug reform that has saved millions of dollars. "We believe similar legislation in Illinois could save the state $225 million," he said. Wright added that if the state legislature would close the business tax loopholes that provide some of the state's mega-corporations huge tax breaks, the state could save another $110 million.

"All of our proposals would save the state more than $1 billion and not cost anyone their job or jeopardize the security inside our prisons," said Wright.

Art Tenhouse Letter to George Ryan

30 Dec 2001

As you know we visited Art Tenhouse, State Representative, a couple of weeks ago on our Privatization of Dietary. Here's his firm(lukewarm)stance to Governor Ryan:

Dear Governor Ryan, December 20,2001

I realize you are "between a Rock and a hard place" because of the unwillingness of Speaker Madigan and the House Democratic caucus to negotiate on cuts to the Fiscal Year 2002 budget. That inaction severely limits the budget areas you can influence without legislative action.

I do have concerns about the impact of cuts to the Department of Corrections budget - specifically privatization of dietary and the elimination of post-secondary education.

These program cuts could impact the security and safety of corrections officers and negatively impact a struggling economy in West Central Illinois.

The dietary function has been well-handled by a group of professional well-trained personnel who have also served a significant security function. Loss of these jobs and local sales to a private vendor may harm our economic status.

The elimination of post-secondary education may significantly impact our efforts to reduce the recidivism in the pension population. Studies show a four fold reduction in the recidivism rate from inmates who participate in the post-secondary education program.

I appreciate how difficult of a task you face, but I hope you will consider other alternatives on these issues.


Sincerely,
Art Tenhouse

Gov.'s prison plan gets slammed !

By John O'Conner
The Associated Press
28Dec2001

SPRINGFIELD (AP) -- Gov. George Ryan's plan to turn state prison cafeterias over to private companies would violate state law, says the union that represents workers who would be displaced.

Privatizing cafeterias and commissaries would save $2 million this fiscal year, contends Ryan, who made it part of $485 million in cuts he announced last month to try to balance the state budget.

But the American Federation of State, County and Municipal Employees says it would violate state law that prohibits private prisons. The union also worries that its members would lose jobs and prison security would be jeopardized.

"We are unalterably opposed to the privatization of these services," AFSCME Executive Director Henry Bayer said. "We'll do all we can on the political front, at the bargaining table and on a legal front to resist this effort."

And Bayer doubts all of the affected employees, which he estimated at 800 to 1,000, can find other Corrections jobs. Ryan's aides said that would be the goal when they announced the budget cuts.

A Ryan spokeswoman said Thursday that remains the goal but acknowledged layoffs cannot be ruled out.

"The plan is to avoid the layoffs, but it would be foolhardy to say, 'Never,'" Wanda Taylor said.

The Private Correctional Facility Moratorium Act, adopted in the 1980s, bars private vendors from running prisons. But outside companies may provide services that are not directly related to owning, managing or securing a prison.

AFSCME's contract allows jobs to be privatized, and the Corrections Department says dietary and supply supervisors need not be trained as completely as prison guards although they supervise inmates who work in those areas.

But state law defines a "security employee" as a worker "responsible for the supervision and control of inmates at correctional facilities" and includes non-security workers who are part of a union in which most members have supervisory and control duties.

Corrections spokesman Brian Fairchild said dietary and supply workers are trained to interact with inmates and handle altercations. For a problem that escalates, guards are posted nearby in cafeterias while inmates are eating, he said.

The department already spends $4 million a year for private food service, Fairchild said. An outside company has fed inmates at Joliet Correctional Center since 1982, and a private vendor supplies meals at 10 "adult transition centers," where residents leave to work outside jobs but must report back.

"If you're going to talk about litigation and state statutes, you also have to at least acknowledge the fact that there's contractual language that is also legally binding that provides for us to explore this," Fairchild said. "It says we can do it."

Prison services are privatized to varying degrees in 38 states, Fairchild said.

As for finding jobs for displaced commissary and dietary employees, AFSCME must help the department, he said.

AFSCME has argued for several years for more correctional officers at what it says are understaffed prisons. But Bayer said the state can't save money by transferring displaced employees into prison guard slots.

A last-minute gift guide for your favorite politicians

By DANA HEUPEL
STATEHOUSE EDITOR
24 Dec 2001

We're nearing the end of the holiday season, and it's time to hit the streets for those last-minute gifts. If you've failed to find anything appropriate for your favorite politicians, here's a list that you don't have to check twice.

Gov. George Ryan: A scalpel to replace the ax he's been using to whack the state budget.

Lt. Gov. Corinne Wood: More bridges to burn in her TV ads, in which she's trying to separate herself from the party insiders, including her boss, the guv.

Secretary of State Jesse White: A set of tumblers, of course.

Attorney General Jim Ryan: An umbrella, because there's no evidence so far that he'll let a smile be one.

Comptroller Dan Hynes: An abacus to count how our tax money's being spent.

Treasurer Judy Baar Topinka: A "Best of Myron Floren" accordion polka CD. Her vinyl copy's getting pretty well worn by now.

Illinois House Speaker and Democratic Party chairman Michael Madigan: A plastic cover for the catbird seat he's going to be sitting in for the next 10 years when it comes to controlling the legislature.

Illinois House Republican Leader Lee Daniels: His own political party, so he can be just like his counterpart, Madigan. Oh, that's right, Christmas came early for Daniels this year.

Illinois Senate President James "Pate" Philip: A flavored Christmas stocking to wear on the foot that sometimes ends up in his mouth.

Illinois Senate Minority Leader Emil Jones: Who?

Chicago Mayor Richard Daley: A chance to model back braces at a fashion show, so he can get more support on the runway.

State Rep. Andrea Moore, whom the Department of Natural Resources hired during the "hiring freeze" for a $96,000 job that had gone unfilled for at least seven years: Nothing. She doesn't need any more gifts.

State Rep. and GOP lieutenant governor candidate Bill O'Connor, who promised to back Jim Ryan but ended up as Corinne Wood's running mate: A dictionary, to look up the words "unqualified" and "support."

State Sen. Carl Hawkinson, Jim Ryan's running mate: A silver medal for winning second place on the favored ticket.

Springfield Mayor Karen Hasara: Two silver medals, for coming in second place in the race for second place on the favored ticket.

Former Gov. Jim Edgar: One of those laughing novelty gadgets, so he can carry it around and point to it when someone accidentally hears him howling over the predicaments his successor, George Ryan, has gotten himself into.

Democrat gubernatorial candidate and former Chicago schools superintendent Paul Vallas: A sedative, so he can talk at normal speed.

Democrat gubernatorial candidate and former state Comptroller Michael Bakalis: A time machine, so he can go back and fill the gap in his political resume since the 1970s.

Democrat gubernatorial candidate, former attorney general, former comptroller and unsuccessful candidate for senator and governor and Chicago mayor Roland Burris: A recycling bin. Not that he needs one.

Democrat gubernatorial candidate and U.S. Rep. Rod Blagojevich, who's also the son-in-law of a powerful Chicago alderman: An easy-to-remember, simple-to-pronounce moniker, like, oh, Mel(l).

Republican gubernatorial candidate and state Sen. Patrick O'Malley: A holiday party serving only right wings.

U.S. Sen. Peter Fitzgerald: A spoiled brat(wurst). You know what I mean.

U.S. Sen. Dick Durbin: Just one free poke at Fitzgerald, just one .. .

And to all of them, a sense of humor and an understanding of the great American tradition of poking fun at politicians. And, truly, peace and happiness in this holiday season that has caused all of us to remember where our true priorities lie.

Dana Heupel is Statehouse editor for Copley Illinois newspapers. He can be reached at 788-1518 or dana.heupel@sj-r.com.

Statehouse Insider

By DOUG FINKE
STAFF WRITER
23 Dec 2001

For some time now, Gov. GEORGE RYAN and his people have downplayed the prospects for state workers losing their jobs because of the budget crunch. They haven't ruled out layoffs, but they've never said layoffs definitely are coming, either.

Last week, both Ryan and his chief of staff, ROBERT NEWTSON, issued memos about upcoming furloughs for state workers. Both talked about layoffs, but Newtson's was particularly interesting. "This furlough plan is necessary in order to minimize the number of state employees who will have to be laid off in the coming year," Newtson wrote. Saying "who will have to be laid off" seems to remove a lot of the speculation, wouldn't you say?

For the record, Ryan's flacks insist the Newtson memo doesn't reflect a change in position. Any layoffs are still speculative and will depend on how the economy does over the next few weeks. OK, if you say so.

U.S. Rep. JOHN SHIMKUS, R-Collinsville, wrote to Ryan asking him not to privatize the food service operations at state prisons and mental hospitals as a cost-saving measure. Shimkus thinks the privatization plan will end up costing jobs in central and southern Illinois, and he's against that. The letter was readily made available to the news media.

This concern by Shimkus is certainly understandable. The new congressional boundary map gives Shimkus a lot of new territory in which he must run next year. Much of that new territory is in southern and southeastern Illinois, where the only stable part of the economy is state government, particularly prisons and mental health facilities. Plus, Shimkus has a bona fide opponent in U.S. Rep. DAVID PHELPS, D-Eldorado, who already represents a lot of Shimkus' new territory.

Add them together and it doesn't hurt to send a letter expressing your overwhelming concern for the people who may be affected by the budget cuts (and who may be new voters). Score one for Shimkus beating Phelps to the PR punch.

However, HENRY BAYER, whose American Federation of State, County and Municipal Employees union represents the food workers, is not exactly impressed. He noted that Shimkus supported the House Republican stimulus package, a part of which will cost Illinois $400 million in tax revenue, according to state officials. You want to guess how many state jobs are going to go phhtt if there's another $400 million hit to the budget? A heck of a lot more than food service.

No, the corporate tax break didn't pass the Senate. However, it looks like the union isn't going to let Shimkus or anyone else say one thing in the district and do something else in Washington.

Former candidate for everything, PAT QUINN, last week held his first Springfield news conference since announcing he is a candidate for lieutenant governor. His topic? Well, it wasn't about the lieutenant governor's office, that's for sure.

No, Quinn lit into Ryan for not doing more to solve the state's budget problems without cutting human services. He said Ryan should call the General Assembly into special session to deal with the budget shortfall. OK, and since House Speaker MICHAEL MADIGAN, D-Chicago, refuses to have House Democrats vote on any budget cuts, this would accomplish exactly what?

Concerned Democrat Quinn did not criticize Madigan for declining to be a more active participant in the budget-cutting process. This could have something to do with Quinn not wanting to offend the party chairman, while preparing to launch his umpteenth bid for elective office as an outsider.

If he's not careful, Quinn could give demagoguery a bad name.

Sen. LISA MADIGAN, D-Chicago, has filed her nominating petitions to run for attorney general. There was something odd about one of those petitions. There at the top, where it is supposed to say "Lisa Madigan" in one place and "attorney general" in another, the petition says "Michael Madigan" and "representative 22nd district."

Oops. They really should check that stuff out. Or maybe there's something to those Madigan critics who say the two are interchangeable.

A letter was delivered to a Statehouse news bureau last week. It was properly addressed to the bureau, but the recipient listed on the letter is a flack in Ryan's Capitol office, not a reporter.

The letter was sent from Ryan's Chicago office.

Doug Finke can be reached at 788-1527 or doug.finke@sj-r.com.

Untargeted funds not likely to ease budget shortfall

Lawmakers must approve use of own initiative money

By DEAN OLSEN
STATE CAPITOL BUREAU

22 Dec 2001

While the Ryan administration prepares to slash hundreds of millions in spending for hospitals, social services and employee salaries, $66 million set aside for state lawmakers pet projects remains unspent and not tied to any particular grants.

But the governor and legislative leaders arent jumping at the chance to tap that money to help fill a $500 million expected funding gap in the current fiscal year. General Assembly approval would be required to use the money to ease the crisis.

One political observer said its unlikely lawmakers will want to touch the popular "member initiatives."

"It makes it politically very difficult to get to those," Kent Redfield, professor of political studies at the University of Illinois at Springfield, said Friday.

Money for member initiatives helps lawmakers address needs in their legislative districts and wins them support from voters back home. The funding has been critical to winning approval of the state budget for the past several years, Redfield said.

The $66 million is part of $130 million remaining in a state account called the Fund for Illinois Future. Parts of the $66 million may be reserved for certain groups of legislators or Gov. George Ryan to spend, but Ryan budget director Steve Schnorf said specific uses for the money havent been targeted yet.

The other $64 million has been committed for grants to communities and organizations, but the state hasnt yet sent out checks for the money, Schnorf said.

The General Assembly and Ryan agreed to transfer a total of $560 million into the fund in the 1999 and 2000 fiscal years from the states general revenue fund.

The money came from the states budget surpluses, and the $560 million is part of Ryans $12 billion Illinois FIRST infrastructure improvement program. But little, if any, of the $560 million apparently came from the tax and fee increases associated with Illinois FIRST.

Ryan has pointed out that most of the $12 billion is either federal money or proceeds from bonds money for construction and renovation projects that cant legally be used for ongoing state operations or the current budget crisis.

Transfers into the Fund for Illinois Future took place before a recession caused a downturn in state revenues. Ryan recently announced $485 million in budget cuts beginning Jan. 1, including efforts that the Illinois Department of Public Aid says would save $95.3 million by reducing Medicaid spending on hospitals that serve the poor.

The cuts also include a one-day, unpaid furlough for 60,000 state workers that would save $8 million, and $2 million in savings by privatizing food service and other functions at state prisons and mental health centers.

Sen. Larry Bomke, R-Springfield, said the $66 million in untargeted money from the Fund for Illinois Future "absolutely" should be considered for easing the cuts.

The governor hasnt suggested that money remaining in the fund be transferred, but if legislative leaders want to discuss it, "the governor is all ears," Ryan spokesman Dennis Culloton said.

House Minority Leader Lee Daniels, R-Elmhurst is "willing to talk about anything or everything," Daniels spokesman Gregg Durham said.

Senate President James "Pate" Philip, R-Wood Dale, wouldnt rule out using the $66 million for the budget shortfall, but the $64 million in money committed for projects and expected by communities throughout the state shouldnt be touched, Philip spokeswoman Patty Schuh said.

"You cant pull the rug right out from under these communities," she said.

She noted that the $66 million might ease some short-term cuts but wouldnt make a dent in the states harder-to-solve, long-term budget problems.

And she said nothing can happen to the $66 million unless House Speaker Michael Madigan, D-Chicago, participates more fully in budget negotiations with legislative leaders and the governor. Madigan skipped many of those negotiations and said he didnt want to be part of Ryans plans.

Madigan spokesman Steve Brown wouldnt rule out Madigan allowing legislation to be voted on in the House that would tap money in the Fund for Illinois Future.

Dean Olsen can be reached at 782-6883 or dean.olsen@sj-r.com.

Union leaders, state discuss quasi-voluntary furlough plan

By DOUG FINKE
STATE CAPITOL BUREAU
20 Dec 2001

Illinois officials are willing to consider a quasi-voluntary furlough program for unionized state workers if union leaders can prove it will save the state enough money.

Members of the state Department of Central Management Services and Council 31 of the American Federation of State, County and Municipal Employees met for more than four hours Tuesday in an effort to work out a compromise on the unpaid furlough days ordered by Gov. George Ryan.

Although no agreement was reached, state officials for the first time said they will consider a plan that will spare some workers from having to take an unpaid day off. The state wants an unpaid day off from each of the 45,000 unionized workers under Ryan's control. If those 45,000 employee days can be reached by some people taking more unpaid days than others, the state will consider it.

"They (the union) has to come up with a plan that shows 45,000 days covered,'" said CMS spokeswoman Judy Pardonnet. "That's something we would consider. We hope they will roll up their sleeves and work with us to come up with a plan."

Council 31 executive director Henry Bayer said the union still favors a voluntary rather than mandatory program. He believes a voluntary furlough program in the early 1980s worked well, with some union members willingly taking several days off without pay. He believes the same could happen now, which would spare other state workers from having to take an unpaid day off.

Bayer said Wednesday the first meeting between the union and the state didn't resolve anything.

"We will be getting back together after the first of the year," he said. "I would say we are far apart."

As part of a $485 million budget-cutting plan announced last month, Ryan said all state workers under his control would be required to take an unpaid furlough day by June 30, the end of the state's fiscal year. Roughly 60,000 workers are affected by the decision, including the 45,000 AFSCME members.

Bayer contends that union contracts require the administration to collectively bargain over the furlough issue. Ryan maintains he has the authority to simply impose the furloughs.

Non-union workers can begin scheduling their furlough days immediately, Ryan said in a letter to state workers this week. The only stipulation is that agency operations cannot be affected by the furlough schedule, Ryan said.

"You have my commitment that I, my staff and my Cabinet will each take at least one furlough day in the next six months, and we will all be at work on those days," the governor wrote.

In a separate letter, Ryan's chief of staff, Robert Newtson, directed agencies to develop furlough plans for non-union state workers that guarantees agency operations will not be disrupted. Those plans must be completed by Jan. 31, meaning non-union employees will know no later than then when they will be taking a furlough day.

Newtson's memo also states that Cabinet officials and the most senior managers in state agencies - whose salaries are set by state law - will be required to write a personal check to the state in the amount of one day's salary. Those officials are being required to work, but the check represents their furlough day.

Doug Finke can be reached at 788-1527 or
doug.finke@sj-r.com.

Lots of Places to Find Fat in Illinois Budget

By Mike Brown
AFSCME Local 3549
Winchester
14 Dec 2001

Dear Editor,
When I joined Corrections in 1983, there were four deputy directors. Under the Ryan/Snyder administration, there are 28, all of whom have a state vehicle and a salary of at least $82,000!! Snyder has a new jet worth $5 million, and his staff drive loaded Crown Victorias worth approximately $30,000 each.
Someone needs to take a long look at the "CHICAGO FIRST" program,the governor's remaining balance in his campaign fund, corporate tax loopholes, the sales tax exemption on manufacturing equiptment and machinery, the retailer's discount enacted in 1959 that greatly benefits large corporations, and the Fund for Illinois' Future(unspent appropriations authorized the previous fiscal year adding up to about $151 million).
If someone told these politicions that the budget was going to be balanced by eliminating some of them, or that they would have to take at least a 15 percent pay cut, then watch how fast they fix it. You must trim the fat to get to the meat, and the meat of Illinois is the workers - not the administration.

Governor cuts classes for convicts

Phil Luciano
Peoria Journal Star
13 December 2001

It's hard to pity prisoners.

We want to be tough. No mollycoddling, no extras.

But sometimes lending a helping hand isn't just a matter of kindness. It's the prudent thing to do.

Try telling that to Gov. George Ryan. Because of the state's economic downtown, the guv recently slashed the budget and scuttled vocational and college classes for state prisoners. That saves $13.5 million, at a cost of 275 full-time and 300 part-time instructors' jobs.

The full-timers are employed by the state's community colleges, including a dozen from Illinois Central College who work at the Illinois River Correctional Center in Canton. Those 12, along with the rest, will be out of work as of Feb. 1.

Obviously, the instructors are upset. And they say the cuts also will cause safety and other budget woes.

Statewide, 3,500 prisoners a year are full-time students. Vocational classes include job-ready skills such as electronics and auto mechanics, while the college courses can culminate in an associate's degree in many disciplines.

The aim is to prepare inmates to return to society. Most are minimum- and medium-security prisoners who will some day be released.

But come Feb. 1, those 3,500 inmates no longer will have classes.

"What are they going to do?" asks Pat Murphy, president of the Illinois Correctional Education Contractors' Organization. ICECO isn't a union but a professional group that shares information with the state's 575 prison instructors.

Inmates with idle hands might create mischief and cause a security risk to prison guards, Murphy says. Plus, without vocational training or college credits, released inmates have less chance to get a job. They're then more likely to return to crime.

And if they head back to prison, they cost taxpayers more money.

ICECO says that of the general prison population, 39 percent go back to the pen. But of prisoners who complete vocational or college curriculums, only 13 percent return.

Sound impressive? Look at the dollars and cents.

The programs cost $14.5 million - $13.5 million from the state, the rest federal funding. The courses earn inmates day-for-day good time, and early release saves the state $6.7 million in housing costs a year, ICECO says. Moreover, less recidivism saves the state another $9.5 million a year.

That makes for $16.2 million in savings. Subtract the state and federal funding, and the programs net the state $1.7 million a year, ICECO says.

Brian Fairchild, spokesman of the Illinois Department of Corrections, says the agency would prefer not to cut the programs. Still, he says, ICECO overstates the negative outcome.

He says the prisons can safely handle idled inmates. Further, he says prisons offer other programs for prisoners, such as counseling and anger-management - or even college correspondence courses.

Moreover, he says, college and vocation programs are not a panacea for recidivism. Prisoners succeed after prison because they make a commitment not to return, only a part of which includes classes.

Still - and I doubt Fairchild would disagree, because he'd like to see the programs return next year - vocational and college classes can only help ex-cons stay out of prisons. I'd rather inmates get a hands-on education from an instructor than see them languishing in their cells as they get a mail-order philosophy diploma from Wazoo State University.

So what does the governor have to say?

"These are tough economic times," says Ryan spokesman Ray Serati. "The governor had to make some cuts."

He says Ryan wanted the input of legislators, who (at the insistence of crabby House Speaker Mike Madigan) did nothing. So Ryan had to act on his own, Serati says.

That still doesn't explain why the governor wants to be penny wise and pound foolish. Legislative hand-sitting notwithstanding, the governor made a bad call.

But lawmakers, no doubt scared to make cuts going into an election year, shouldn't get off the hook. ICECO says educators and community-college administrators plan to grab legislators by the collars and shake some sense into them.

Surely the state could find $13.5 million elsewhere. The governor should change his mind, or the General Assembly should change it for him.

Otherwise, if they think inmates need no vocational and college education, the governor and our 177 lawmakers should have no problem finding prisoners decent jobs and housing when they get out. Maybe a few dozen could set up bunkbeds in the Executive Mansion and do odd jobs for the master of the house.

Whaddaya say, Guv?

Hundreds protest against Governors plan



December 13, 2001

CHESTER, ILLINOIS Nearly 400 employees from 12 Department of Corrections and three Mental Health Facilities from throughout Southern Illinois gathered at Menard Correctional Center yesterday to protest Governor Ryan's proposed plan to privatize dietary and commissary in all Illinois prisons and dietary and housekeeping in all Illinois Mental Health Centers.

The Governor's proposal would result in all dietary, commissary and housekeeping services being offered out to private companies for bid, resulting in more than 2,000 state employees losing their jobs.

"The Governor's plan does not offer any meaningful cost savings," said Steve Joiner, AFSCME staff representative. "It is bad for the state and local communities since our tax money will be going to out-of-state private companies. But most of all it will compromise the safety and security of our state facilities by having unskilled workers doing these security-sensitive jobs."

Henry Bayer, AFSCME Council 31 Executive Director, attended the picket and addressed the crowd in the rain. "The legislature decided privatization was a bad idea six months ago at Lawrenceville Correctional Center and it's a bad idea now," he said. "We have to send a clear message to Springfield: you are either with us or you are against us."

Bayer said that as a candidate for Governor, George Ryan said he was opposed to the privatization of any state jobs in Illinois prisons or mental health facilities. Bayer said that Ryan had put his opposition to privatization in writing and he expects Ryan to keep his word now.

Also attending were Senator David Luecthefeld, Senator Larry Woolard, Representative Gary Forby and Representative Dan Reitz. All spoke against the proposal to privatize state jobs.

Lisa Madigan wins nod of labor groups

Union chiefs deny House speaker influenced choice


By Douglas Holt and Rick Pearson
Tribune staff reporters
Published December 12, 2001


Two labor organizations with aggressive Springfield
agendas controlled by House Speaker Michael Madigan on
Tuesday endorsed his daughter Lisa for the Democratic
nomination for attorney general.
Leaders of the 1 million-member Illinois State AFL-CIO
and the Chicago Fraternal Order of Police emphatically
denied that concerns of angering the speaker led them
to back Lisa Madigan, a North Side state senator only
seven years out of law school, over former U.S.
Justice Department official John Schmidt.
Police union President Bill Nolan declared Lisa
Madigan "the most qualified candidate" for the state's
highest law enforcement position.
He said the power of her father mattered little in the
17,000-member union's decision, while acknowledging
that the FOP has a package of legislation pending in
Springfield to sweeten police pensions.

"Lisa is standing on her own two feet," Nolan said.

But an FOP member who was involved in the endorsement
process said the decision was motivated by concerns
that the speaker would block the pension package if
the union backed Schmidt.

The union member, who asked not to be named, said the
FOP's 12-member endorsement board was heavily lobbied
on Lisa Madigan's behalf and was told that "bills
sitting down in Springfield would sit down there for
some time" unless it endorsed her.

"The members decided to play it safe and go with Lisa,
because if Schmidt wins, it doesn't matter," he said.
"Michael Madigan will still be the speaker of the
House. For us, it's a no-win situation."

Aides to the House speaker dismissed any criticism of
undue political influence, saying it impugned Lisa
Madigan's own hard work.

"I think her achievements speak for themselves and if
small-minded people want to criticize those
achievements, I think we'll see them for what they
are," said Steve Brown, a spokesman for the speaker.

Lisa Madigan, 35, said having a father who is a
dominant player in state politics sometimes makes it a
struggle to gain recognition for her own
accomplishments.

"In terms of being the daughter of the speaker of the
House, it works both ways," she said. "There are
positive and negative things. The downside is
everyone's perception of, `Oh, you're not doing this
on your own.' It's a constant battle."

Schmidt, 58, and his supporters say the union
endorsements are the result of political coercion
surrounding the clout-heavy speaker, a veteran
Southwest Side lawmaker who also is the state
Democratic chairman.

"I assumed the Madigan political muscle would produce
a certain kind of support," Schmidt said, expressing
no surprise over the endorsements.

The endorsements placed the spotlight on an internal
debate among Democrats over whether those who are
embracing Lisa Madigan's candidacy are doing so
because of her qualifications or her pedigree.

"Is her father able to get endorsements that nobody
else is able to get?" asked one Democratic legislator,
who did not want to be identified. "Probably. But you
tell me what is wrong with that? This is business. If
I want to keep a good relationship with the speaker,
if I'm a labor leader, why would I go against the
speaker?"

But state Sen. James DeLeo (D-Chicago), an ally of the
speaker, said Lisa Madigan would be wise to take
advantage of her family connections.

"She should make speeches and stand up and say, `I
have access in a way no one else has. I'm going to get
things passed,'" said DeLeo. "`When I become attorney
general, these things will become a reality.'"

Lisa Madigan's political rise has been rapid.

She graduated from Loyola University Law School in
1994 and was elected to the state Senate in 1998.

In the Senate, she sponsored legislation that became
law allowing police to seize a vehicle if it contains
a secret compartment that can be used to transport
guns or drugs.

Schmidt, a Harvard Law School graduate, was formerly
Mayor Richard Daley's chief of staff and also served
as the third-ranking official in the Justice
Department during part of the Clinton administration.

In the 1998 Democratic primary for governor, the FOP
also shunned Schmidt in favor of the party's eventual
nominee, former Downstate congressman Glenn Poshard.

At the time, the move was widely viewed as a slap by
the union at Daley.

But the FOP member said Tuesday that Poshard's
endorsement was engineered by the House speaker.

Margaret Blackshere, state AFL-CIO president, said her
organization's endorsement of Lisa Madigan was in
recognition of her "wonderful voting record" on union
issues and a rebuke to Schmidt for past support of
global trade pacts and for corporate takeovers
engineered by his law firm that hurt the pensions of
workers.

The AFL-CIO also endorsed U.S. Rep. Rod Blagojevich's
bid for the Democratic nomination for governor over a
crowded field of challengers.

The AFL-CIO plays an important role in Democratic
primaries for governor.

It was the organization's 1998 endorsement that helped
propel Poshard past Schmidt and two others in that
year's Democratic contest.


The "Irritating Image" of the State Furlough

Jack Connors
December 4-5, 2001

There are a number of elements associated with Illinois' need to cut expenses by half a billion dollars that appear to really aggravate a lot of people. One is obvious---the 60,000 state employees who are going to lose one days pay are going to feel it in the checkbook.

As troubling as that is, we don't believe it's the number one issue. It's a perceived sense of unfairness that really irritates the regular working people who are getting whacked by this George Ryan edict. Things like state cars ordered with CD players instead of regular radios, or new furniture in the office of some mid-level bureaucrat, or elected officials who sit around for days doing nothing during the veto session. The amount of money spent on CD players, desks and legislators' per diem is virtually nothing when compared to the deficit that Governor is trying to cover---probably less than one-tenth of one per cent.

It's all a symbol, something that we can all see and go home and gripe about at the dinner table. "Here I'm being furloughed for a day and this knucklehead at work is getting something he or she doesn't need." It's like the furor over Jim Thompson's rose garden at the mansion years ago. That was a political stinkbomb that wouldn't go away, and we'd imagine, neither will this.

I'm Jack Connors


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RYAN: FURLOUGH STATE WORKERS

Tue Nov 27 2001

SPRINGFIELD (AP) -- As many as 60,000 state workers will lose a day's pay and a 141-year-old Joliet prison will close under $220 million in budget cuts Gov. George Ryan announced Tuesday.

Ryan will implement most of the cuts immediately to help fill a $500 million budget hole created by rising expenses and falling revenues.

He previously cut travel and office expenses and froze hiring to save $50 million and asked education agencies to trim $50 million. That leaves $180 million that needs to be sliced from a $53.4 billion budget.

The Republican governor wants legislative support for cuts in Medicaid spending, payments to hospitals and nursing homes and universities' employee insurance costs. But House Speaker Michael Madigan, D-Chicago, has refused to discuss budget cuts.

The administration has blamed September's terrorist attacks for the drooping state economy, although tax revenues were falling before the attacks.

"All of these cuts are unfortunate, but we need to try to scale back to meet the new revenue challenges in this post-Sept. 11 world, and we need to do it in a way that is as fair as possible to the people of Illinois," Ryan spokesman Dennis Culloton said at a state Capitol news conference.

Culloton, who said Ryan was too busy working on the budget to announce the cuts himself, said the governor presented the package to legislative leaders earlier Tuesday and got no strenuous objection.

Sources familiar with the budget talks, speaking only on condition of anonymity, said Ryan is looking at cuts in two other major areas if he cannot get legislative help.

Hospitals, particularly those specializing in care to the poor, would see about $100 million in Medicaid cuts, the sources said, while community-care workers would lose about $18 million of a planned cost-of-living increase.

Culloton said agencies would determine how to conduct the "furlough" for state workers, expected to save $8 million. He said he didn't know whether some workers would have a day off or be asked to work for free.

"We're going to ask for a bit of sacrifice here. The furlough option is better than some alternatives," Culloton said, declining to say whether layoffs would be used as a threat in dealing with union representatives.

The state would have to negotiate a furlough with union workers. The American Federation of State, County and Municipal Employees is not inclined to agree, said Associate Director Mike Newman.

"We're opposed to the state balancing the budget on the backs of employees," Newman said.

He said AFSCME also would try to block Ryan's plan to save $2 million by privatizing food service and housekeeping at state prisons. State workers in those jobs would be transferred to other necessary posts, Culloton said.

Ryan also wants to close the Joliet Correctional Center to save $4 million. Its 1,500 prisoners and 600 workers would be transferred to other prisons.

Ryan has said for weeks that he could make reductions on his own by making deep cuts in the parts of the budget under his control. But he says the cuts would be less "painful" if lawmakers helped by passing legislation to authorize cuts in other parts of the budget.

"My hope is that the further cuts we have to make will not cause undue pain for the people of Illinois," Ryan said in a statement.

Madigan has refused to participate in talks because of Ryan's assertion he could do it on his own. Madigan said after legislative leaders met with the governor Tuesday morning that Ryan asked them to pass laws to save $175 million.

That would entail increasing Medicaid patient co-payments, reducing state payments to hospitals and nursing homes, and making universities use funds they get from tuition and fees to pay for employees' insurance, Madigan said.

"I told the governor we would take all of these proposals to the House Democratic members today," Madigan said. "We're going to simply explain the nature of the proposal. It's not an easy thing to understand."

Other measures announced Tuesday include cutting $106 million from various social-service agencies; shifting $22 million from a genetics institute to other health care programs; and saving $3 million by closing the oldest portion of the Elgin Mental Health Center.