Illinois Public Media News
President Barack Obama named veteran political manager William Daley to be his new chief of staff Thursday, selecting a centrist with Wall Street ties to help navigate a newly divided Congress and a looming re-election.
"Few Americans can boast the breadth of experience that Bill brings to this job," Obama told reporters in the East Room as Daley, 62, stood at his side.
"But most of all, I know Bill to be somebody who cares deeply about this country, believes in its promise, and considers no calling higher and more important than serving the American people," the president said.
The appointment represented the most significant move in a far-reaching and ongoing staff shakeup that included the departure of Obama's press secretary and several key deputies and economic advisers. It came the day after Republicans officially assumed control of the House and increased their numbers in the Senate.
Daley, who served as commerce secretary for President Bill Clinton, offers criteria Obama wants for the new environment in Washington: an outsider's perspective, credibility with the business community, familiarity with the ways of the Cabinet and experience in navigating divided government.
"I'm convinced that he'll help us in our mission of growing our economy and moving America forward," Obama said.
Daley made a pledge to the president: "This team will not let you down - nor the nation."
Daley replaces Pete Rouse, the interim chief of the last three months and a behind-the-scenes Obama adviser who did not want the position permanently and recommended Daley for it. Rouse, who received warm praise from Obama and sustained applause from staffers watching in the East Room, will remain as a counselor to the president, an elevated position from his former job as senior adviser.
Daley was expected to start as chief of staff within the next couple of weeks. His brother, Richard Daley, is the mayor of Chicago, the post that Obama's first chief of staff, Rahm Emanuel, left his job in October to seek. The Daley brothers are sons of Richard J. Daley, who was Chicago's mayor from 1955 to his death in 1976.
Although Chicago is also Obama's hometown, the president has not had a close relationship with his new chief of staff. But Obama alluded to the Daley political legacy, joking that he "has a smidgen of awareness of how our system of government and politics works. You might say it is a genetic trait."
Daley will assume one of the most important and influential jobs in American government as an adviser and gatekeeper to Obama. He will be thrust into the heart of national politics just as Obama adapts to a new reality in Washington, with Republicans working to gut his signature health care law and pushing for major cuts in spending.
Although Daley has not sought elective office himself, he has long been immersed in politics.
He helped Clinton pass the North American Free Trade Agreement before joining his Cabinet. Later, he ran Al Gore's 2000 presidential campaign and the historic recount effort that ended with Gore conceding the race to George W. Bush.
When Obama launched his presidential campaign, the Daley family put aside its deep connections to Bill and Hillary Rodham Clinton and endorsed the young Illinois senator. Until then, Obama and the Daleys had largely operated separately in Illinois politics - not helping each other much but not attacking each other, either. After Obama's victory, Daley helped oversee the presidential transition.
Daley, a lawyer and banker, now serves as Midwest chairman of JPMorgan Chase. His appointment could raise questions about the White House's closeness with Wall Street just as Obama is eager to enforce reforms that benefit the little guy.
Liberal groups reacted negatively to the announcement, with MoveOn.org calling it "troubling" because of Daley's "close ties to the big banks and big business." By contrast, the choice won praise from the U.S. Chamber of Commerce, which Obama has recently begun to woo after clashes with business groups. The chamber called Daley "a man of stature and extraordinary experience in government, business, trade negotiations and global affairs."
The reactions underscored Obama's determination to play to the middle as he ramps up for his re-election fight in 2012, even if it means alienating allies on the left.
Daley laid out his political ideology last year upon joining the board of Third Way, a moderate Democratic think tank.
"We must acknowledge that the left's agenda has not won the support of a majority of Americans - and, based on that recognition, we must steer a more moderate course," he said at the time.
Obama is ushering in changes across his senior leadership - the result of internal staff fatigue, a need to shift energy and people to Obama's re-election campaign, and an adaptation to the fresh limits on Obama's power. Although many of the names of the players may not be familiar to the electorate, the collective personnel changes will influence not just Obama but the national agenda.
White House press secretary Robert Gibbs announced Wednesday he was resigning by early February, senior adviser David Axelrod will be leaving soon, and both of Obama's deputy chiefs of staff, Jim Messina and Mona Sutphen, are exiting soon, too. David Plouffe, a key member of Obama's inner circle as his former presidential campaign manager, will be joining the senior staff of the White House on Monday.
Daley emerged as a natural candidate for the chief of staff post, particularly after other internal candidates ended up in other positions. He is close to some of those in Obama's orbit, including Axelrod, Emanuel and senior presidential adviser Valerie Jarrett.
Illinois lawmakers are considering a major overhaul of the program that provides medical care to the poor, part of an effort to control costs during a budget crisis and build support for a tax increase.
The legislation would emphasize HMO-style "managed care" and reduce the use of costly institutions for people with physical and mental disabilities. It would require the state to pay Medicaid bills sooner, reducing late-payment penalties. It also would take steps to ensure ineligible people don't sign up for medical care.
The lawmakers who negotiated the changes predict they'll save at least $800 million over the next five years. That would amount to roughly 2 percent in a program that costs about $7.6 billion a year.
But with the state budget in a shambles, legislators are searching desperately for any place to save money. In addition, Democratic leaders trying to pass an income tax increase could point to the Medicaid changes as evidence that they're cutting back and not simply grabbing for taxpayers' wallets.
Gov. Pat Quinn met repeatedly with legislative leaders Wednesday, searching for some version of a tax increase that could attract enough support to pass. There were no indications of a breakthrough that might generate the mix of Republican and Democratic votes that would almost certainly be needed to pass such a touchy measure.
Quinn, Senate President John Cullerton and House Speaker Michael Madigan want to pass something before the current General Assembly formally ends Jan. 12. After that, they lose some of their Democratic majority and the outgoing "lame-duck" legislators who might be persuaded to support a tax increase as they leave office.
The state's budget deficit could hit $15 billion this year.
The Medicaid legislation passed in the Illinois Senate 58-0 and now goes to the Illinois House.
Sen. Heather Steans, D-Chicago, acknowledged the changes would save relatively little money. But she and others portrayed it as an important first step toward streamlining Medicaid.
"This is turning an enormous ship. It's hard and it's going to take a lot of work," Steans said.
The bill would require at least half of Medicaid clients to be placed in HMO-style managed care by 2015. It also would make it easier to transfer money to help move disabled people from expensive institutions into cheaper residential care.
Another change would end a policy that allows Medicaid bills to go unpaid for months. That practice costs the state late-payment penalties and disguises the depths of Illinois' financial problems.
Other changes would help ensure that only eligible people enroll in Medicaid. Clients would have to provide additional evidence that they meet income requirements, live in Illinois and, for continuing clients, that they're still eligible.
The head of Champaign's Judah Christian School hasn't given up on plans to relocate in a developing area to the southwest.
Tuesday night the city council rejected the annexation agreement for 50 acres with developer Jacob's Landing, located at Kirby Avenue and Rising Road. School Administrator Tim Hayes the decision comes as a shock after hearing positive remarks in the past from city leaders.
The council voted to 4-4 with one member abstaining, but the item failed since it needed a two-thirds majority. Some council members were concerned that the non-profit school couldn't reimburse property taxes for emergency services, and that building a new school to the Southwest would set a bad precedent as Champaign's Central High School looks to rebuild in a few years.
Hayes said he is working with Judah Christian's real estate attorney to see if the school can go back before the council with an amended request for the same area.
"At this point, we're trying to decide whether it would be in our best interests to move forward," he said. "We'd like for it to be this piece of property, but I don't know what our options are, and I think we're trying to establish that before we make a decision on whether we're going to move forward or look for another piece of property."
Judah Christian is nearly at capacity with just under 600 students, and the lack of athletic facilities means the school has to rent out areas for baseball and soccer games. The school on Prospect Avenue has been trying to re-locate for the last few years, including to an area in North Urbana.
In 2008, city leaders there rejected the plan since the industrial location wasn't compatible with a school. Champaign Planning Director Bruce Knight says it's possible the school could alter its relocation plan to include a payment in lieu of taxes. Unless the city council suspended its rules, Judah Christian would have to wait six months to come back before the council.
An attorney for imprisoned former Illinois Gov. George Ryan says his wife, Lura Lynn Ryan, is hospitalized in intensive care, and doctors say she may have only hours to live.
Mr. Ryan's attorney, former Gov. James Thompson, told The Associated Press on Wednesday that Ryan's family has been called to Lura Lynn's side. He says an emergency motion has been filed in federal court to allow George Ryan to be released from prison so he can join his wife of 50 years.
Thompson says attorneys have also appealed to prison authorities to release Ryan under a program that enables inmates temporary leave to visit gravely ill family members.
Lura Lynn Ryan was admitted to the hospital Wednesday after apparent complications from chemotherapy. She has been diagnosed with lung cancer.
Champaign city council members have rejected an annexation agreement that would have allowed Judah Christian School to relocate.
The plan called for the re-development of 50 acres just outside Southwest Champaign, at Kirby Avenue and Rising Road. The private school on Prospect Avenue has sought a new location due to space concerns.
Council member Marci Dodds said she has nothing against Judah Christian, but since it is a not-for-profit religious school, she said it does not provide any property taxes for the city, so it will not reimburse for emergency services. The proposed location is not served by Champaign-Urbana's Mass Transit District, and Dodds said heavy traffic will cause wear and tear on the roads. The land was originally zoned for single-family homes.
Council member Tom Bruno said he is troubled by the pressure on Champaign schools to locate in the same area when a new Central High School is built.
"Facilitating the movement of any school to the very periphery of town, out in the cornfields, where every single kid will arrive by private motor vehicle for years, decades, maybe a century to come - just bothered me." Bruno said. "We need to continue to send the message that the community ought to be more compact and contiguous, and we ought to build things in the heart of town and re-build things things in the heart of town rather than just sprawl."
The land was originally zoned for single-family homes. The council tied 4-4 with one member abstaining, but the annexation failed since a two-thirds vote was required.
Those interested in applying for a vacant Champaign city council seat have until next Tuesday to apply, but a name won't be chosen for nearly a month.
Members are expected to choose a temporary appointment to the vacant District 5 seat on Feb. 1. In Tuesday night's study session, the council chose Jan. 11 as the deadline for applicants, and will hold interviews at its Jan. 18 meeting. Gordy Hulten resigned from the seat Tuesday to be sworn in Wednesday morning as the next Champaign County Clerk.
Paul Faraci, Jim McGuire, and Cathy Emanuel have already filed to run as write-in candidates for the District 5 seat in April's election, but applicants will be considered whether or not they plan on running this spring. Council member Deb Frank Feinen said she has real concerns with naming one of those three to the seat, saying it gives them an edge before voters have a say.
"It provides an advantage for someone that we as a group of 8 have decided maybe is the best fit for the council, but that the voters haven't had the opportunity to decide about," Feinen said. "And I find that troublesome."
But Council member Marci Dodds said that is part of the democratic process.
"This sort of idea that we're giving an instant leg up to the three people running as write-ins, I think, is premature," Dodds said. "It also means it voters in District 5 have a chance to say 'yeah, we don't like what you did. You're out of here."
Mayor Jerry Schweighart has already suggested one possible appointment to serve in the seat, but only until May. Mike Hosier formerly served on the city council in the 1980's. Council members decided against leaving the District 5 seat vacant until May, which would violate a state law requiring it to be filled within 60 days. Meanwhile, those seeking a write-in candidacy to run in for the seat in April have until Feb. 3 to file.
Hulten spent less than nine months with the Champaign City Council, but he said last night's resignation was still an emotional one. The District 5 Republican said as a result of serving on the council, he has learned much more about the issues facing his neighbors, and how a well-run body of government should function.
"You can have vigorous disagreements over fundamental issues facing the city," Hulten said. "We can discuss them in a cordial way, we can vote our conscience, we then can move on to the next issue and we don't become mortal enemies. And that's a rare and special thing in politics these days - and I'm glad there's some a commitment to nurturing that on council."
Hulten was given a round of applause by his council colleagues before the meeting adjourned.
A Cook County judge says Rahm Emanuel is eligible to run for Chicago mayor, but the ballot dispute involving the ex-White House chief of staff isn't over yet.
Circuit Court Judge Mark Ballard heard arguments for a bit less than an hour Tuesday morning in a Daley Center courtroom just steps from city hall.
The anti-Emanuel legal team claimed the candidate gave up his residency when he rented out his Chicago house while working for President Obama in Washington. Lawyers for Emanuel argued he left only to serve his country, and always planned to return.
In a written opinion, Ballard sided with Emanuel, upholding a decision last month by the Chicago Board of Election Commissioners.
"We find there was sufficient evidence to support the Board's conclusion that Candidate Emanuel intended to remain a Chicago resident during his temporary absence, and did not, therefore, abandon his Chicago residency," Ballard wrote.
Burt Odelson, an attorney for the objectors, told reporters he expected to lose in circuit court. Oldeson said he will appeal the ruling on Wednesday.
"Those of us who practice election law, we don't look at these as losses. They're just stepping stones to get to the appellate and [state] supreme court," Odelson said.
Emanuel attorney Kevin Forde said "at some point" Odelson has "to call it quits."
"He's lost before a hearing officer," Forde said. "He's lost before three [election board] commissioners - all of whom are very, very familiar with the election law. He's lost before a very experienced judge here."
The legal challenges could drag on for weeks, complicating things for city election officials who, by the end of the month, must prepare ballots for early voting.
Meantime, Odelson declined to provide specifics about who was paying for the lengthy ballot battle.
"Well, for me it's been very expensive. Very time-consuming and very expensive," he said.
Odelson said he is getting paid by the two people officially listed as "objectors" in his filings, Walter P. Maksym, Jr., and Thomas L. McMahon. But when asked if anyone else is chipping in to pay the bills, Odelson told reporters it was none of their business.
"It's my business who's paying me," he said. "Just like it's your business who pays you."
Odelson is not required to publicly report how much he is being paid for the Emanuel challenge. But the Emanuel campaign is required to disclose its bills, though one of its lawyers, Mike Kasper, said he has not done the math.
"I've been busy on the case, I will say that," Kasper said.
(Photo by Bill Healy/IPR)
Residents of the Wilber Heights subdivision are barred by zoning rules from making major house repairs and renovations, because the area is zoned for industry, not homes. Now, the Champaign County Zoning Board of Appeals will consider a change in zoning rules that would allow work on such "non-conforming dwellings" to go ahead.
The proposal was put together at the county board's request by Planning and Zoning Director John Hall. County Board member Stan James (R-Rantoul) said allowing major work on the non-conforming houses will provide relief for the remaining homeowners in Wilber Heights.
"And John's trying to provide some relief so those folks now there can add on and enjoy the homes they do have, with the knowledge that it may come down in the future that even by doing that, it's not going to increase their value much," James said. "Because if it stays Light Industrial, eventually all that will be bought up."
Under the proposal, non-conforming dwellings in Wilber Heights and other parts of the county could receive major repairs and even be enlarged. Garages and other accessory buildings could also be enlarged. Currently, repairs and renovations are barred if they take up more then 10 percent of a building's total area. James said he thinks the residents may be entitled to additional compensation, but believes the zoning change is a good start.
Wilber Heights is located east of the Market Place Mall, in an unincorporated area just outside of the city of Champaign. It contains a mix of industrial and residential development. First built as housing for employees of the nearby Clifford-Jacobs Forging Company plant, Wilber Heights was rezoned all industrial by the Champaign County Board in 1973, with the assumption that the homes would eventually be torn down. But dozens of them are still occupied today.
County Board member James said he thinks the residents of Wilber Heights may be entitled to additional compensation for the burden placed on them by the 1973 zoning change. But he said the proposal to allow greater home repairs and renovation is a good start.
The proposed change in zoning rules will get its first hearing before the Champaign County Zoning Board of Appeals on at its regular meeting, Thursday, January 6th, beginning at 6:30 PM, at the Brookens Center in Urbana. Planning & Zoning Director Hall says he hopes the measure can receive county board approval this spring.
Illinois Democrats edged closer to a vote on raising income taxes during a lame-duck session of the state Legislature, as the governor met with legislative leaders Tuesday and lawmakers considered measures that would put new restrictions on state spending.
Senate President John Cullerton, D-Chicago, said Democratic leaders want the House to approve a version of the tax increase that passed in the Senate nearly two years ago. That plan would boost the personal income tax rate to 5 percent, from the current 3 percent.
Meanwhile, a new report from a University of Illinois think tank concludes that the state's budget crisis is even deeper than most people realize. The deficit is usually placed at $12 billion with a possibility that it will reach $15 billion, but the Institute of Government and Public Affairs says the shortfall is really $17 billion and climbing.
"It is hard to overstate the depth of the fiscal hole the state is in," the report said. "If nothing is done soon, the state of Illinois faces a very bleak future."
Cullerton and House Speaker Michael Madigan, D-Chicago, want some Republican support for a tax increase. That would help insulate Democrats from the potential public outcry over higher taxes. So far, however, Republican leaders have opposed any tax talk.
Democrats are pushing several measures that might help attract GOP support and blunt public criticism.
Madigan, for instance, is sponsoring two constitutional amendments. One would limit government spending growth to the same level of growth that Illinois taxpayers see in their own paychecks. The other would make it harder for state and local government to approve costly benefit increases in pension plans.
Both amendments have been approved in committee and now await action on the House floor.
Democrats also are trying to reach deals on Medicaid costs, school management and worker's compensation.
Together, the measures could be used to argue that Democrats are serious about handling tax money more responsibly if an increase is approved.
"I think what we have to do is pay our bills," Cullerton told reporters after meeting with Madigan and Gov. Pat Quinn. "I think we have to make sure our bond rating is improved and people see that, going forward, we can pay our bills. If people look at it from that perspective, I think it's something that they would accept."
A new Legislature will be sworn in Jan. 12. It may be easier to pass a tax increase before then, while Democrats still have a large majority and some outgoing members can act without worrying about a future voter backlash.
Democratic leaders, however, won't say whether they're prepared to try to pass a tax during the lame-duck session if they can't pick up any Republican support.
A spokeswoman said House Republican Leader Tom Cross met with the governor Tuesday morning and Quinn discussed raising income taxes by just half a percentage point and using that revenue to pay off $14 billion in new debt. Spokeswoman Sara Wojcicki said Quinn offered few details and that Cross reiterated his calls for government spending reforms before considering higher taxes.
There was little evidence Tuesday to suggest that Democrats and Republicans were coming to any accord.
The governor and Democratic leaders did not include top Republicans in their meeting. Republicans opposed Madigan's constitutional amendments to control spending, arguing either that they don't go far enough or they go too far. And a Senate committee voted along party lines to borrow roughly $4 billion and use the money to make the state's annual contribution to government pensions.
A longtime columnist for The News-Gazette has left the paper after nearly 60 years.
Malcolm Nygren, a former minister with Champaign's First Presbyterian Church, joined the Gazette in 1953 along with about a half dozen other ministers recruited by the paper. Each of the ministers quit after writing a single column, but Nygren stuck around.
Nygren's columns often described different aspects of his life through the lens of the Christian faith. He said his editorials were never overtly religious, but reflected his feelings about major events ranging from the assassination of President John F. Kennedy to the birth of his daughters. He added that many of his columns could be read and interpreted on multiple levels.
"For some people it came at a time in their life when it was something they really needed, and it was useful for them," Nygren said. "It means different things to different people."
The Gazette's opinions editor Jim Dey was the first person each week to read over the column. He praised Nygren for always meeting a deadline, and writing in clear language that rarely required an edit.
"Writers come and go, and newspapers hopefully are here for the duration, and so people will get used to it," Dey said. "Nothing good lasts forever, and (Malcolm) Nygren's column is an example of that."
Dey said the News Gazette has no immediate plans to replace the column.
In his final editorial, Nygren wrote, "For the writer, it is a lot better to quit before you have to quit." But Nygren said he is not give up writing just yet. Readers can still follow his columns on his blog, "Byline: Malcolm Nygren."
"I will write when I want to, not on a deadline," Nygren said. "I'll get the good part of the job, and not have to have the pressure of it."
(Photo courtesy of Malcolm Nygren)
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