Week in Review: Madigan corruption trial, CPS board resignations, voter integrity and more

CORRUPTION

Madigan corruption trial convenes; jury selection begins. A major criminal trial of former Illinois House Speaker Michael J. Madigan began this week in Chicago.

Madigan faces bribery and racketeering charges.

The former speaker is charged, along with his longtime friend and confidant, Mike McClain.

A 117-page superseding racketeering indictment accuses him of leading what prosecutors call the "Madigan Enterprise," dedicated to enriching himself and his political cronies, while also maintaining his party in power in Springfield. Both men have pleaded not guilty.

The federal trial has commenced with an extensive questioning procedure to select jurors for the trial. The Madigan trial is expected to receive extensive media coverage and to go well into December. Potential jurors are being asked:
  • Whether they feel like there’s an issue with the political system in Illinois;
  • Whether they feel that lobbying is a bad thing; and
  • Whether they feel politicians shouldn’t mix business and politics.
Legal observers believe that evidence will be presented that will dig significantly into issues related to the perceived intermingling of money, power, and political clout in Chicago and Springfield.

BUDGET
Illinois will issue up to $1.7 billion of GO bonds this month. Illinois will sell up to $1.1 billion of general obligation refunding bonds and $600 million of taxable and tax-exempt new money General Obligation (GO) bonds by the middle of October.

“General obligation” bonds are debt that explicitly references the full faith and credit of the State of Illinois and its taxpayers. The rollover issue of $1,087,800,000 in general obligation (GO) debt, and the separate new issue of $600,000,000 in new debt, will be sold in New York City on or about October 16, 2024.

The overall fiscal plan developed by Gov. Pritzker’s Governor’s Office of Management and Budget (GOMB) encompasses approximately $600 million in taxable and non-taxable new GO debt. These are new debts that represent an additional debt load being imposed upon Illinois taxpayers. Even if global interest rates drop over the next 5 to 10 years, Illinois will not be able to pay off many of these new bonds ahead of time. As part of the legal covenant attached to this $600 million loan, the State of Illinois will sign a binding pledge, with the sale, that it will not refund any new debt until October 1, 2033, at the earliest. This means that Illinois taxpayers are about to make a binding promise to pay interest to the bondholders for at least 9 years.

These two debt issuances create an overall package of almost $1.7 billion in new and rolled-over interest-bearing obligations of the State and its taxpayers. While Illinois’ FY25 budget is ostensibly “balanced,” as is required by the Constitution, Illinois continues to roll over its existing debts and to borrow net new money. Although Illinois tax rates are significantly higher than the taxes imposed by most U.S. states, the revenue these taxes bring in is not enough to meet overall State spending obligations.

CHICAGO
Chicago Mayor Brandon Johnson names all new CPS school board after mass resignations. Mayor Brandon Johnson announced six proposed appointees to the Chicago Board of Education on Monday following uproar over last week’s announcement that the entire board was resigning.

During a fiery news conference, Johnson rejected calls to pause the appointment process and shot back at criticism that he has been heavy-handed in his handling of Chicago Public Schools. […]

The stunning resignation announcement of all board members — that drew concern from city and state officials — was preceded by months of strife between Johnson, the teachers’ union and CPS Chief Executive Pedro Martinez over how to address the school system’s financial shortfall.

CPS doesn’t have money to pay a $175 million pension payment for non-teacher school staff or for new collective bargaining agreements for the CTU and the new principals’ union, both still in negotiations.

The CTU has asked for salary raises and more staffing to help unhoused, disabled and migrant students. Johnson’s administration has pushed a short-term, high-interest loan to cover the pension payment and first year of the contracts — an idea rejected by Martinez and the board that is stepping down — and wants to aggressively lobby state lawmakers for more funding.

Martinez and district leaders have instead privately floated furloughs, layoffs and other cost-saving measures for the coming months.

Johnson and the CTU — the mayor’s former employer that helped vault him into office — pushed for Martinez to be fired or resign, but the school board has the final say over the CEO’s contract. The old board also had problems with Martinez, but sources said multiple factors played into the resignations: some board members grew tired of the position they were put in, and Johnson desired a change.

In a scathing editorial published on Tuesday, Oct. 8, the National Review accused Johnson of giving away the store to the Chicago Teachers Union. The editorial stated, in part:

“The CTU has been preparing for years to renegotiate its contract with the city, and as part of the preparations, last year it funded the mayoral campaign of one of its own paid lobbyists and organizers, Cook County commissioner Brandon Johnson. Johnson won the narrowest victory in Chicago history and has proceeded to govern strictly for the union’s benefit. The CTU’s demands contemplate, among other things, Chicago Public Schools assuming $150 million of pension-debt obligations for non-teachers in the CPS system — at a time when the system already has an unprecedented half-billion-dollar budget shortfall. When Chicago Public Schools CEO Pedro Martinez refused to sign off on a $300 million high-interest loan that the CTU (and Mayor Johnson) wanted him to take out to fund these new demands, Johnson began publicly pressuring his own school-board members to fire him.

“Instead, the entire seven-person membership of the city’s Board of Education — personally selected by Johnson when he began his term in office — resigned as a group rather than accede to the unacceptable pressure. Johnson announced a replacement slate of school-board appointees on Monday morning, seven people presumably selected for their greater responsiveness to the mayor’s demands. The new board is almost certain to vote to fire Martinez, allowing Johnson to replace him with an appointee who will rubber-stamp the union’s demands. The Chicago Teachers Union looks likely to win everything it is asking for, which is precisely why its members elected one of their own as mayor.”

ELECTIONS
McCombie Files Voter Integrity Bill, Calls for Proof of Citizenship. This week Illinois House Minority Leader Tony McCombie filed legislation to require proof of citizenship during voter registration. This bill is a proactive step toward enhancing voter integrity and election security, which are cornerstones of a functioning democracy.

“Protecting the democratic process means ensuring that every vote is legitimate and counted. Requiring proof of citizenship during voter registration is a commonsense safeguard that helps protect the integrity of our elections,” said Leader McCombie.

With concerns about election fraud, this legislation is a necessary step to strengthen trust in the electoral process. “As Illinois continues to feel the effects of the ongoing migrant crisis, it’s critical that we make changes to safeguard our elections and free from any doubt,” continued McCombie. “Safeguarding our voting process protects the core of our democracy, and we must take every opportunity to make it better.”

The bill, HB5887, has gained support from the House Republican Caucus and will proceed through the legislative process as a measure to protect both voter confidence and democratic integrity.

GAMBLING
CGFA report indicates strong growth in Illinois sports betting, video gaming. The 2024 report on “Wagering in Illinois,” part of a series published annually by the Commission on Government Forecasting and Accountability (CGFA), continues to display numbers showing strong growth in the key sectors of video gaming and sports betting.

The CGFA report reflects Illinois gaming activity in calendar year 2023 and fiscal year 2024, the 12-month period that ended June 30, 2024. Illinois video gaming terminal counts and revenues continued to swell, with 48,176 video gaming terminals in operation on June 30 of this year. These terminals were in operation at 9,170 Illinois host locations, which include taverns, restaurants, storefront gambling parlors, truck stops, and veterans’ and fraternal organizations’ meeting halls.

In FY24, the Illinois sports wagering handle was more than $12.8 billion, up 23% from FY23. Of this sum, 91.5% was repaid out to bettors, leaving collective adjusted gross receipts of $1.1 billion for all licensee sportsbooks during this 12-month period. The sportsbooks kept most of this sum, spent a small amount on their ongoing expenses (day-to-day sports betting is now almost all electronic, and is moving towards AI algorithms), and paid $166 million in tax revenues to the State and to Illinois local governments.

Illinois land-based casino adjusted gross receipts rose 13.4% in FY24 over the numbers reported in FY23. However, most of this increase did not reflect growth at existing casinos, but rather overall growth of the sector based on additional investment in new casino floor space. In FY24, new floor space was created by the opening up of two new casinos: (a) in Carterville, Illinois (near Marion in far southern Illinois; meant to be permanent), and (b) in Chicago (on the Near North Side, meant to be “temporary”). The Chicago temporary casino licensee, Bally, continues to work on the development of a future permanent 4,000-gaming position Chicago casino. This type of growth is expected to continue with other casino expansions, such as the opening of a permanent casino location in Rockford. However, in contrast to the numbers generated by these new floor spaces, existing casino floors are showing mature customer counts and flat or declining gaming activity.

The Illinois State Lottery continued to enjoy slow but real revenue growth in the most recently concluded fiscal year, with ticket sales moving up 7% from $3.61 billion in FY23 to almost $3.86 billion in FY24. In the context of overall U.S. inflation, this reflected stable customer counts and gross Lottery ticket take-ins. What is now the smallest sector in the Illinois gaming industry, bets placed on live and video horse racing, continued to decline in FY24. Illinois now has only two active horse racetracks, one each in (a) greater Chicago and (b) greater St. Louis, although horseracing bettors can also go to off-track-betting facilities to place interstate bets on races conducted in other states.

OCTOBER
October is Breast Cancer Awareness Month. In October, we recognize Breast Cancer Awareness Month. This is a time to raise awareness about this disease that affects millions of individuals and families across the nation. In Illinois alone, approximately 12,000 women are diagnosed with breast cancer each year, according to the Illinois Department of Public Health. This statistic shows the urgent need for education, early detection, and support for those affected.

Breast cancer is the most common cancer among women in the United States, and while survival rates have improved significantly over the past few decades, early detection remains crucial. The American Cancer Society reports that when detected early, the five-year survival rate is about 99%. This is why regular screenings, such as mammograms, which can detect cancer before symptoms appear, are highly recommended.

Early detection not only saves lives but also reduces the treatment burden and costs associated with advanced stages of cancer. Women aged 40 and older are encouraged to have annual mammograms, while younger women should consult their healthcare providers about their individual risk factors. The Illinois Department of Public Health offers resources and programs to help women access screenings, especially those who may face barriers to care.

State Representative Jeff Keicher has been a strong advocate for increased access to breast cancer screenings and awareness in Illinois. As a co-sponsor of HB 4180, Rep. Keicher is working to ensure that women across Illinois have access to life-saving screenings without having to worry about financial hurdles. The bill addresses a significant gap in coverage by requiring insurance companies to cover both Molecular Breast Imaging (MBI) and Magnetic Resonance Imaging (MRI). Currently, MBIs aren’t covered, leaving many individuals without access to this advanced imaging technique. Rep. Keicher believes that by removing these financial barriers, more women will have the opportunity to detect breast cancer early, improving outcomes and saving lives.

Rep. Keicher is also the sponsor of HR 368, which brings important attention to metastatic breast cancer by marking October 13 as Metastatic Breast Cancer Awareness Day in Illinois. “Metastatic breast cancer, in particular, presents unique challenges, as it represents the stage of the disease where cancer cells have spread to other parts of the body, often making it more difficult to treat,” Rep. Keicher said. “By raising awareness, HR 368 signifies our commitment as a state to promoting continued research in the fight against metastatic breast cancer and, more importantly, to honor the strength and resilience of those who have suffered from this disease.”

For more information on breast cancer resources and support in Illinois, read about the Illinois Breast and Cervical Cancer Program (IBCCP) here: IL Breast & Cervical Cancer Program (IBCCP) (illinois.gov).