Saturday, September 09, 2006

Blagojevich Beats Dead Lottery Horse

Despite headlines like "Group flunks governor’s schools plan", Governor Blagojevich appears content to ride his lottery proposal all the way to election day. Apparently, a conversation something like this went on in the Blagojevich campaign headquarters:

McScoffield: "We're really taking a hit on our education plan. Polls are showing that there's not much public support out there, the experts are saying our revenue projections are inflated and will leave schools hanging, conservatives are outraged by plans to open keno parlors all over the state and legalize video poker-style instant lottery machines, and the Republicans are accusing the Governor of making a political pay-off to Sen. Meeks and nailing us for refusing to make public the details of such a sweeping proposal. Anybody got any ideas?"

McTusk: "Why not just promise everybody more money?"

McRod: "How about 10, 12, even 15 billion dollars?"

Chorus: "That's why your the governor!"
And believe it or not, inflating their revenue projections even further is exactly what they did. Not surprisingly, the reaction was swift (thanks AP):
The governor's plan has been criticized and Thursday's new details were no exception.

Republican state Sen. Kirk Dillard of Hinsdale said Mr. Blagojevich was "trying to grasp at straws."

"This sell-another-state-asset plan revised today by Blagojevich is a cynical election-year ploy and a result of Treasurer Judy Baar Topinka having a solid financial plan that does include a Chicago-based casino," Mr. Dillard said.

Ms. Topinka unveiled a statewide budget proposal last month that she said generates cash without raising taxes by building a Chicago casino and adding gaming spots at the state's nine riverboat casinos. Her plan also includes a property tax freeze.

Ms. Topinka also has criticized Mr. Blagojevich's lottery plan, saying he only concocted it to keep state Sen. James Meeks, a popular minister, off the November ballot. Mr. Meeks had threatened to run unless the governor promised money for education.

Green Party candidate Rich Whitney also expressed skepticism about Mr. Blagojevich's new lottery numbers.

"My initial reaction is: How convenient," he said. (emphasis added)

Props to Whitney for nailing it on the head. And props to the Blagojevich campaign for managing to accomplish what no other Democratic campaign in Illinois has been able to do so far: make a Green Party candidate look like a credible and sound alternative.


7 comments:

Anonymous,  4:53 PM  

Great post, YDD.

I fear this is not the only place the Blago brain trust going to try the "stretch the lie" approach.

Many people cringed when Rod channeled the voice of John Filan and triumphantly touted in the budget speech, "It's an inarguable fact that the state pensions are better off under this administration than ever before."

The "evidence" for the inarguable fact is the increased funded ratio, or assets over liabilities, of the funds, between FY 03 and 05. 49% to 60% to be specific.

Notwithstanding that's still among the worst in the US, if they want to ride that horse, fine.

More recently, Filan, in his usual half-snit, appeared before a Congressional subcommittee pondering a federal role in State/local pensions and laid down the same stuff as before, plus a couple new whoppers:

-Rod has added "$13.3 billion in contributions to the funds in his term", more than double any of the Repubs.

-Overall, Rod's excellent management has caused the funds to grow $21 billion in just 3 years!

If there had been a bulls*** alarm in that room, it would have gone off so loud that Abe Lincoln would have been awakened.

First of all, the increased funded ratio argument is not a single valid indicator of the health of a pension fund. The ratio can also be improved by cutting all pensions or eliminating disability benefits or widow's pensions, or by assuming a higher rate of earnings on the investments of the funds.

What Filan isn't saying about the inarguable fact is that as part of the "pension reform" he personally crafted last year, the funding reductions are causing the funded ratios to go down and unfunded liabilities to go up. In fact, real fact according to COGFA, by the end of FY 2007, the undunded liabilities of the 5 funds will be higher than they were than when Blago took office. Oops.

As they expand the lie to brag about all the cash they "gave" the pension funds, they forget the source of $9.5 billion, or 70% of it. That's right, those bonds. It's already a little cheeky to call something that has to be repaid a "contribution" but then to brag about it is just a bit too much. And, BTW, they never add the $10 billion owed on the bonds as a liability when they're bragging about improving the funded status.

The last piece is both the biggest whopper and the most ironic. Blago and Co. are responsible for the funds increasing their assets by $21 billion over the past 3 years.

Here's a sampling of the Blago actions related to pension funds over the past 3 years: damned if I can tell how any of these added to the pension funds' bottom line.

-Suggested bond money be invested in short term bonds and Mesirow hedge funds

-Suggested consolidating pension investments

-Reduced FY 06 and 07 contributions by $2.3 billion.

The FACT is that Filan views the pensions as just another set of funds to sweep and Blago stands up and says whatever Filan recommends.

Anonymous,  8:13 PM  

Sen Meeks lied. He told everyone he was going to run.
He said it was definitely a go.
He said he wanted real educational reform, but he got NOTHING.
NOTHING, certainly nothing specific, definite, or a funding mechansim, it has not even passed the house or Senate---and deals with gambling.
MEEKS LOST ALL CREDIBILITY.

Anonymous,  8:29 PM  

When did Meeks have credibility?
LOL
with R Kelly?
with is mentor Jesse James Jackson?

Yellow Dog Democrat 3:01 PM  

Thanks Arthur Andersen for reminding me that Team Rod doesn't count the bond debt as part of our pension debt.

It's like putting your mortgage payment on your credit card and pretending you're suddenly debt-free.

Anonymous,  9:34 PM  

Meeks and Jackson are both phony
Jackson is more phony

no education reform
just empty promises from the young George Ryan

Anonymous,  1:35 PM  

I've said it before, and I will say it again:

You're wrong about Rich Whitney helping Topinka. Rich Whitney will energize many new voters, who would not otherwise vote, and who certainly will not vote for Rod Blagojevich. Rich Whitney will also earn votes from many disgruntled Blagojevich supporters, who would have voted for Judy Baar Topinka in 2006. Would you rather they voted for Topinka?

I respectfully suggest that it is Rod Blagojevich that has the potential to spoil this election, by pulling away a large number of votes that would have gone to Rich Whitney. No candidate is automatically entitled to votes. Candidates must earn the votes that they receive, otherwise the electorate is taken for granted. Besides, let's place blame where blame belongs--Democrats refuse to fix the spoiler problem in Illinois. Despite several Instant Runoff Voting bills having been introduced in the Illinois General Assembly, the Democratic majority on the House Rules Committee won't let this issue be voted or even debated upon.

Anonymous,  10:46 PM  

What's with the Mc?

Seriously.

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