Week in Review: Madigan trial, immigration, pensions & more

MADIGAN TRIAL

Corruption trial of Speaker Madigan draws in convicted former Rep. Eddie Acevedo. Former Chicago Democratic State Rep. Eddie Acevedo, already sentenced to prison on separate charges of tax evasion, has been ordered to the witness stand in the Madigan corruption trial. Prosecutors assert that the longtime legislator was familiar with many of former Speaker Madigan’s clout-heavy maneuverings.

As a senior member of the Illinois House, Acevedo could help the former Speaker pass or block Illinois laws up for debate, and the prosecution team says Madigan and his inner circle used powers like these to peddle influence and advance the interests of Madigan’s private-practice law firm. In addition, clout interactions like these appear to have led to direct payments of money. The U.S. Attorney’s office has already presented evidence in court to show that, in 2017, AT&T Illinois gave Acevedo a no-work contract and frequent “work-related” payments. The payments coincided with AT&T achieving passage of a major business-friendly, consumer-unfriendly state law that altered the terms of AT&T’s statewide customer service franchise and duties to customers.

It is not known when Acevedo will testify in the Madigan trial, as the structure of his questioning has not yet been finalized. The prosecution team is signaling, however, that they expect Acevedo’s testimony could be among the last elements they will present to the jury as they seek to wrap up their case against the former Illinois House Speaker and statewide political party boss. Longtime lobbyist and former State Rep. Mike McClain, a close Madigan ally and confidante, is also on trial in the Madigan case.

IMMIGRATION
More Than 155,000 Standard IDs and Driver’s Licenses Issued to Illinois Noncitizens in 5 Months.
Since Law Went Into Effect. More than 155,000 standardized IDs and driver’s licenses for non-U.S. citizens have been issued in the five months since an Illinois law went into effect that aims to protect noncitizens from discrimination, according to numbers from the Illinois Secretary of State’s office.

The law, which went into effect in July, grants noncitizens regardless of immigration status the ability to obtain a standardized state driver’s license replacing the Temporary Visitor Driver’s License, which displayed a purple banner and the words “Not Valid For Identification.” […]

The four-year driver’s license for noncitizens features a standard red banner and replaces “Not Valid For Identification” with “Federal Limits Apply.” Noncitizens who are unable or choose not to drive also have the option to obtain a standardized ID.

Since the law went into effect, the office has issued 49,852 state IDs and 106,026 driver’s licenses for noncitizens, according to Illinois Secretary of State spokesperson Max Walczyk. Read more from WTTW.

House Bill 3882 was passed into law in 2023, with no House Republicans supporting the legislation to provide standard driver’s licenses to noncitizens.

ISRAEL
House Minority Leader Part of Midwest Delegation to Israel. House Minority Leader Tony McCombie was in Israel this week as part of the State of Israel’s Ministry of Foreign Affairs’ Midwest Delegation. The Delegation met with leaders from the Knesset (Israel Parliament) and the Ministry of Foreign Affairs, toured Jerusalem’s Old City with site visits to the Church of the Holy Sepulchre, Via Dolorosa, and the Western Wall, and visited the World Holocaust Remembrance Center. McCombie has been vocal in her support for Israel, and is refiling a resolution in the 104th General Assembly in remembrance of October 7th:

“I am grateful to have the opportunity to be in Israel and show my unequivocal support at such a pivotal time. Over a year ago, Hamas terrorists initiated a deadly assault on Israel, slaughtering more than 1,200 men, women, and children and wounding thousands more. More than 250 people were taken hostage, several being American. I am eager to listen and learn from elected officials, government leaders, and community-based groups here to understand how the State of Illinois can be a stronger, truthful partner going forward.”

LAW ENFORCEMENT
Rep. Fritts: Rita Crundwell Sentence Commutation Insults Taxpayers, Highlights Corruption of Biden Administration. On Monday, United States President Joe Biden issued the largest one-day pardon action in the history of the country, commuting the sentences and pardoning more than 1500 convicted criminals. One of the individuals listed as having their sentence commuted was the infamous convicted felon and former Comptroller of the city of Dixon, Rita Crundwell. State Representative Bradley Fritts (R-Dixon) issued the following statement in response.

“To say I am outraged by the commutation of the sentence of Rita Crundwell is a great understatement, as Ms. Crundwell stole more than 50 million dollars from the good taxpaying citizens of the city of Dixon, violated the public’s trust, and used the stolen money to live a lavish lifestyle,” Rep. Fritts said. “After pardoning his own convicted felon son for crimes dating back more than ten years, President Biden doubled down on the corruption of his Presidency and lifted Crundwell’s house arrest. The people of Dixon were victimized by this woman, and she still owes money that she stole. This is an unacceptable commutation. This commutation comes just a short time after Crundwell was released from prison early without any notice being given to the city of Dixon of her release. This is a double slap in the face.”

Fritts says that some of the commutations offered by President Biden include the lifting of required restitution and that at the time of the release of the commutation list, it was unclear if Crundwell had been relieved of her responsibility to pay back the money she stole.

“At this time, I am unsure that Rita Crundwell is still required to pay back the money she still owes the citizens of Dixon, and that is also unacceptable,” Fritts said. “The people of my district and the citizens of Illinois deserve answers.”

Illinois Supreme Court reaffirms that smell of cannabis constitutes probable cause to search a motor vehicle. This smell-of-marijuana test had been settled law prior to the legalization of Illinois dispensary cannabis in 2019 (effective January 1, 2020). With legal cannabis, however, the standing of pre-2020 police-search case law came to be questioned, even as law enforcement violations involving Illinois motor vehicles and marijuana continue to multiply. Cannabis consumption should never go together with the act of driving a motor vehicle. Cannabis can create impaired driving and endanger other drivers, passengers, and pedestrians.

Now, the Illinois Supreme Court has reaffirmed that the smell of “raw cannabis” will continue to allow police to search a motor vehicle. The decision reaffirms that any unsmoked, raw cannabis transferred by a private citizen in a motor vehicle must be transported in an odor-proof container. The Illinois Supreme Court decision was handed down on Monday, December 9.

PENSIONS
Illinois’ unfunded pension liabilities at near-record $143.7 billion. The Commission on Government Forecasting and Accountability (CGFA), in its 2024 Special Pension Briefing, reported that Illinois’ unfunded pension liabilities totaled more than $143.7 billion at the end of Fiscal Year 2024 (June 30, 2024). This near-record figure is an increase from the equivalent $142.2 billion figure posted in the previous fiscal year and is only slightly below the all-time-record pension deficit of $144.2 billion posted in FY20.

The five State pension systems covered by the report cover the future costs of non-healthcare retirement benefits payable to vested public-sector employees in the following categories: (a) public school teachers and educators, (b) state employees, (c) employees of Illinois colleges and universities, (d) the judges of the circuit, appellate, and Supreme courts, and (e) members of the Illinois General Assembly. The $143.7 billion deficit reflects the collective unfunded pension liabilities of all five systems. The largest share (more than half of the total) is the $82.9 billion in unfunded liabilities posted by the Teachers Retirement System. TRS is the pension system that pays retirement benefits to teachers and other educational personnel in school districts throughout the state.

CGFA’s report indicates that none of these five systems have even one-half of the funds they will need to have in hand, based on generally accepted actuarial standards, to meet their future contractual obligations. The five systems are funded at ratios ranging from 46.3% (TRS), to only 24.6% for the pension system that supports retired Illinois lawmakers and legislators.

It is important to note that an “unfunded pension liability” is a forward-looking actuarial and accounting concept. It reflects the funds that each pension system actually has on hand for investment returns, to which are added an actuarially-sound estimate (based on current global economic patterns and interest rates) as to likely future investment returns; these assets are balanced against the likely total of benefits that will have to be paid out, based on future life expectancies, to current and future beneficiaries that are vested in the system. If the quantity of expected future benefits exceeds the quantity of expected future assets, the pension system must post an unfunded pension liability total. All five Illinois State-managed pension systems have made this calculation and posted these liabilities, and CGFA has compiled these five data sets to generate this week’s report.

These unfunded pension liabilities are debt-equivalent moral obligations of the State of Illinois and its taxpayers. If pension debts pile up, the State’s credit rating risks downgrades. The State of Illinois must sell debt whenever it needs to make serious investments in its roads, bridges, and other public capital infrastructure. Illinois currently has a single-A credit rating with all three major New York-based credit rating agencies, which is well below average for large public-sector debt issuers (the rating system goes up to ‘triple-AAA’) and is lower than the credit rating posted by most U.S. states.