Blagojevich Corruption Scandal Paralyzes Illinois Government

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CHRISTOPHER WILLS | December 27, 2008 12:58 PM EST | AP

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In this Dec. 13, 2008 file photo, Illinois Gov. Rod Blagojevich leaves a downtown building where a high profile defense attorney has an office, in Chicago. Blagojevich's arrest on federal corruption charges has clearly complicated his work as the state's chief executive and already cost the state some $20 million. The state is facing a potential $2.5 billion budget deficit and the governor doesn't have the same horsepower _ or clout _ to address the problem that he had just a month ago. (AP Photo/Paul Beaty, file)

SPRINGFIELD, Ill. — Embattled Illinois Gov. Rod Blagojevich has made a point of regularly going to work at his office in Chicago. He has signed legislation and issued pardons. He has sent out press releases about predatory lending and fighting poverty.

But his arrest on federal corruption charges has clearly complicated his work as the state's chief executive and already cost the state some $20 million. The state is facing a potential $2.5 billion budget deficit and the governor doesn't have the same horsepower _ or clout _ to address the problem that he had just a month ago.

No one in the state capital trusts Blagojevich enough to give him authority to trim the budget on his own, as he requested in November. Any other idea he advances would probably be rejected out of hand. Yet no other official can take the lead.

"Everything just comes to a halt. You have complete paralysis," said House Republican Leader Tom Cross of Oswego.

Blagojevich, a second-term Democrat, was arrested Dec. 9 on charges accusing him of scheming to swap President-elect Barack Obama's vacant Senate seat for profit, shaking down a hospital executive for campaign donations and other wrongdoing.

The governor has defiantly insisted he's done nothing wrong and that he will not resign. His aides say he is going about business as usual.

His chief of staff, who was arrested along with Blagojevich, has resigned and been replaced by a deputy governor. Another deputy, one with a background in budget matters, has resigned and may not be replaced. Plus, a committee is expected to recommend in early January whether the state House should vote to impeach Blagojevich.

"I think it's difficult for him to manage government in the way a governor normally would," said state Rep. Gary Hannig, a Democrat from Litchfield. "This is a time when you need strong leadership from the governor's office."

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The state must find a way to eliminate its deficit. If nothing is done, the most likely outcome is that it won't pay its debts to hospitals, pharmacies and nursing homes that care for the poor, forcing more of them out of business.

The problem cropped up two weeks ago when an effort to borrow money to pay overdue bills _ one social-service vendor was owed $8 million and garbage collection stopped for 10 days at a state prison last month _ was sidelined because the state attorney general's office refused to give immediate consent.

The delay _ blamed on the governor's legal woes _ cost Illinois $20 million in extra interest, according to Treasurer Alexi Giannoulias. Because the short-term borrowing plan was put off for several days after Blagojevich's arrest, the state ended up paying higher interest rates.

Standard & Poor's recently put out a negative "credit watch" on the state's AA bond rating, noting the budget deficit and the governor's legal situation could hamper efforts to find a remedy.

The governor's budget director declined an interview request. Blagojevich spokesman Lucio Guerrero said the governor is expected to soon get an update on the budget deficit _ including potential solutions _ from his staff.

"I think the governor has shown that he continues to govern the state and is performing his duties," he said.

Critics acknowledge that government will grind on despite Blagojevich's problems. State police will patrol. The Revenue Department will collect taxes. Snowplow crews will clear highways.

But when an emergency hits, Illinois will lack a real leader to solve the problem and smaller problems may pile up in the meantime.

Will Blagojevich be able to find people willing to serve under him on the boards and commissions that help set policy? Would those appointments even be approved? Can he hold on to his current staff and agency directors? If he delivers a State of the State address, will anyone even attend, let alone seriously consider his proposals?

"Everything he touches is tainted," said Jay Stewart, executive director of the Better Government Association in Chicago. "We know his thought process: Legal, personal, political. I don't see public interest anywhere in that."

Blagojevich won't be able to call on federal officials for help, even though Obama and some top officials in his incoming administration are from Illinois and Sen. Dick Durbin, D-Ill., is the No. 2 Democrat in the Senate.

And though Obama plans a huge public works program next year, Illinois may not be in position to get its share. State officials have failed year after year to approve construction money that would qualify for federal matching funds. That appears unlikely to change.

Some of the governor's critics say his new problems actually won't mean a dramatic change for Illinois because he wasn't trusted or deeply involved in government even before his arrest.

"We've been leaderless for a long time," said Sen. Christine Radogno, R-Lemont. "Consequently, our state is floundering."

___

Associated Press Writers John O'Connor in Springfield and Deanna Bellandi in Chicago contributed to this report.

SPRINGFIELD, Ill. — Embattled Illinois Gov. Rod Blagojevich has made a point of regularly going to work at his office in Chicago. He has signed legislation and issued pardons. He has sent out pr...
SPRINGFIELD, Ill. — Embattled Illinois Gov. Rod Blagojevich has made a point of regularly going to work at his office in Chicago. He has signed legislation and issued pardons. He has sent out pr...
 
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Il's politicians & voters could start exploring a way to allow rust belt states to merge & avoid de facto bankruptcy. Ohio, Michigan & Indiana are short of funds. If they merged with Il, they could dispense with the excess state capitols, merge state agencies & colleges. The new mega-state might no longer have 2 US Senators for each of the former states but that's a small price to pay to avoid bankruptcy. Other states might allow parts of their state join the new mega-states. Western NY & Pa could join the rust belt's new mega-state. New England states could merge with eastern portions of NY & Pa plus NJ, De, Md, & possibly the urbanized portions of eastern Va. W Va, western Va, Ky, possibly Tn could merge too. The deep south states could also merge. The states west of the Mississipii & states above Il which border on the Mississippi could work out their own mergers. A recession & a possible depression could be used to economize by merging the states. There is a shortage of competent politicians to be governor of the fragmented lower 48 states. Each mega-state could find a competent elected chief executive among the politicians in a new mega-state.
The USA would have a smaller senate if the mega-states had only 2 senators. Some of the present 100 senators are much less than mediocre. This is time to reorganize the USA to save money. It would take a lot of work & compromises but

    Favorite    Flag as abusive Posted 11:42 PM on 12/28/2008

This state is run almost exclusively by Democrats, it is where Obama cut his political teeth and it is now being unleashed on the country... You were warned.

    Favorite    Flag as abusive Posted 10:40 PM on 12/27/2008
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I can fly.

    Favorite    Flag as abusive Posted 09:52 PM on 12/27/2008

Maybe this is what the Republicans want?

    Favorite    Flag as abusive Posted 07:38 PM on 12/27/2008
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ugh can't we speed this impeachment up a bit?

This clown is only concerned about himself. If Blago really cared about Illinois he would step aside, fight his corruption charges and then if cleared could attempt to be re-instated. He's got 'guilty' written across his forehead, and I think he's trying to cover it up with that helmet hair.

So glad I'm moving to California. Oh wait....crap.

    Favorite    Flag as abusive Posted 03:47 PM on 12/27/2008
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