“Things aren’t going well for Democrats all over the country. Mary Burke is being attacked because her company hasn’t paid net Wisconsin income taxes in over thirty years. Ed FitzGerald is coming under fire for his hypocrisy on transparency. Pat Quinn has become even more vulnerable after news surfaced that his administration is under investigation by the FBI. John Hickenlooper’s ObamaCare exchange website is facing serious financial challenges. John Kitzhaber’s problems are growing as the FBI begins investigating his ObamaCare exchange. While Republican governors continue to provide the country with a blueprint for success, Democrats nationwide can’t seem to rescue themselves from a sinking ship.” – RGA Communications Director Gail Gitcho
In Wisconsin, Mary Burke Is Running From News That Her Family Company, Trek, Has A More Than Three-Decade History Of Not Paying Any Net Wisconsin Income Taxes
FOX6 News: “Burke’s Campaign Doesn’t Want To Talk About The Company’s Record On Taxes.” (Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
Burke Doesn’t Believe That Tax Reform Is On Trek’s Top 25 List Of Things To Make Sure It’s A Successful Company. “‘Do you feel that taxes are a significant detriment to business and economic development in this state?’ Burke was asked at Marquette. ‘I will go back to my experience at Trek. Trek has started from a couple of people to nearly 1,000 people, and has been successful, and thinks that Wisconsin is a great place to do business and has never considered leaving it. Do they feel the taxes need to change? I don’t think that’s on their top 25 list of things in making sure Trek Bicycle is a successful company,’ Burke said.” (Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
“There May Be A Reason For That.” (Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
Despite Having Annual Sales Of $900 Million, “…Trek Bicycle Has Not Paid Net Income Taxes For More Than Three Decades — At Least As Far Back As 1982.” (Alex Duff, “Former Lance Armstrong Ally Trek Acquires Tour Team,” Bloomberg, 7/17/13; Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
Trek’s Tax Avoidance Is “Something That Ultimately Shortchanges The Public.” (Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
Burke And Trek Were “Given Multiple Opportunities To Comment On This Story, But Declined.” “FOX6 News asked Trek for comment, and even submitted written questions, but the company spokesman did not respond. Burke was given multiple opportunities to comment on this story, but declined. (Mike Lowe, “Corporations Not Paying State Income Taxes? What’s Mary Burke’s Position?,” FOX6 News, 5/4/14)
In Ohio, The Plain Dealer Penned A Scathing Editorial Calling Ed FitzGerald’s Refusal To Release Records “Unconscionable”
The Plain Dealer Headline: “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“Ed ‘Ethics’ FitzGerald Trumpets Transparency And Accountability. Except When It Pertains To Certain Public Records.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“The Key-Card Data Serve The Public’s Right To Know How Well The County’s Top Elected Official Is Performing His Duties.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“It’s Clearly A Matter Of Public Record.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“The Weak-Kneed Justification [For Not Releasing The Records] – Does Not Withstand Scrutiny.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“The Fitzgerald Stonewall Flies In The Face Of Longstanding Local Precedent To Turn Over Such Records.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
“By Not Turning Over These Public Records, The Giant Sucking Sound You Hear Is Fitzgerald’s Credibility Going South.” (Editorial, “Cuyahoga County Executive Ed FitzGerald Must Release Public Key-Card Data,” The Plain Dealer, 5/4/14)
In Illinois, Federal Investigators And “A Criminal Grand Jury” Are Probing Pat Quinn’s Neighborhood Recovery Initiative
Headline: “Pat Quinn’s Anti-Violence Program Faces Federal Probe.” (“Pat Quinn’s Anti-Violence Program Faces Federal Probe,” The Associated Press, 5/1/14)
“Federal Prosecutors Are Asking For Information Related To A Troubled Anti-Violence Program Started By Illinois Gov. Pat Quinn.” (“Program Backed By Illinois Gov. Quinn Probed,” The Associated Press, 5/1/14)
“Sources With Knowledge Of The Inquiry Said Investigators Asked For Vendor Information, Copies Of Contracts And Copies Of Signed Checks Tied To The Neighborhood Recovery Initiative.” (Natasha Korecki, “Feds Looking At Quinn Anti-Violence Program,” Chicago Sun-Times, 5/2/14)
“The U.S. Attorney’s Office Out Of The Central District Of Illinois Asked The Illinois State Comptroller’s Office To Turn Over Payment Information From The NRI, Which Quinn Launched In 2010.” (Natasha Korecki, “Feds Looking At Quinn Anti-Violence Program,” Chicago Sun-Times, 5/2/14)
“A Criminal Grand Jury Has Launched A Probe Into Gov. Pat Quinn’s Troubled Anti-Violence Program — Once Likened To ‘A Political Slush Fund’ — Delivering A Major Blow To The Democrat As He Seeks Re-Election This Fall.” (Natasha Korecki, “Criminal Probe Of Quinn Anti-Violence Plan Rocks Governor’s Race,” Chicago Sun-Times, 4/30/14)
“On Tuesday, The Quinn Administration Turned Over 1,000 Documents Pertaining To The Neighborhood Recovery Initiative To The Cook County State’s Attorney Anita Alvarez Following A Subpoena From Her Office.” (Natasha Korecki, “Criminal Probe Of Quinn Anti-Violence Plan Rocks Governor’s Race,” Chicago Sun-Times, 4/30/14)
Subpoena Seeks “Records Tied To The Neighborhood Recovery Initiative — Including Those For The Chicago Area Project.” “The request was issued to the Illinois Department of Commerce and Economic Opportunity on March 19 and sought records tied to the Neighborhood Recovery Initiative — including those for the Chicago Area Project, a program tied to the husband of Cook County Circuit Court Clerk Dorothy Brown.” (Natasha Korecki, “Criminal Probe Of Quinn Anti-Violence Plan Rocks Governor’s Race,” Chicago Sun-Times, 4/30/14)
Subpoena Seeks “Extensive Information.” “The subpoena, however, is not limited to that Chicago Area Project, but asks for extensive information about the overall anti-violence program, including ‘files, notes, memos and correspondence pertaining to all grants,’ documents obtained by the Chicago Sun-Times through the Freedom of Information Act show.” (Natasha Korecki, “Criminal Probe Of Quinn Anti-Violence Plan Rocks Governor’s Race,” Chicago Sun-Times, 4/30/14)
Just A Few Days Earlier It Was Also Revealed That The Quinn Administration Was Under Investigation By A State Illinois Inspector General Over “Hiring Practices”
“An Attorney Representing Gov. Pat Quinn’s Administration Publicly Acknowledged Tuesday An Ongoing Investigation By Illinois’ Inspector General Of Hiring Practices Under The One-Term Democrat.” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
“The Topic Came Up At A Status Hearing In A Civil Case In Front Of The U.S. District Court In Chicago.” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
“Attorney Michael Shakman Asked In A Motion Last Week For An Investigation Into Quinn’s Hiring Practices.” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
“Shakman, Who Spearheaded A Decades-Long Court Case Leading To Bans On Political Hiring, Cited In His Filing A Better Government Association Report That Said Illinois’ Department Of Transportation Skirted Rules In Filling Hundreds Of Positions.” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
In Court, “U.S. Magistrate Judge Sidney Schenkier Asked Quinn Administration Attorney Brent Stratton Whether Court Documents Alluding To An Inspector General’s Investigation Were Accurate.” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
“‘That’s Our Understanding That’s Correct,’ Stratton Responded. ‘It Is Our Understanding There Is An Ongoing Investigation.’” (Michael Tarm, “Gov. Quinn’s Lawyer Acknowledges Inspector Probe,” The Associated Press, 4/29/14)
It’s No Wonder The Washington Post Sees Him As The Most Vulnerable Democrat Governor Of 2014
The Washington Post Headline: “Pat Quinn Is The Most Vulnerable Democratic Governor Of 2014. And Things Just Got Worse For Him.” (Sean Sullivan, “Pat Quinn Is The Most Vulnerable Democratic Governor Of 2014. And Things Just Got Worse For Him,” The Washington Post, 5/2/14)
In Colorado, John Hickenlooper’s ObamaCare Exchange Website “Faces Financial Challenges”
Denver Post Headline: “Colorado Health Care Exchange Faces Financial Challenges” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
Despite Spending $100 Million In Federal Funding, Connect For Health Colorado, Colorado’s Heath Care Exchange Website, Is Facing A Funding Shortage. “Connect for Health Colorado officials have touted the state’s insurance exchange as frugal and having relatively low fees. But after spending at least $100 million in federal funding, the exchange is scrambling to figure out how to sustain itself beyond this year. The exchange may find itself in a difficult position as it seeks solutions in coming months because some members of its own board, along with a vocal group of legislators, oppose fee increases. Its financial outlook may have worsened Friday when the state extended through 2015 health plans that aren’t compliant with the Affordable Care Act, which is likely to lower enrollments through the exchange.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
“With No Significant Additional Federal Money Expected To Come To The Exchange, Its Budget Is Expected To Drop From More Than $70 Million This Year To $41 Million In 2015 And Then To $26 Million In The Last Two Years Of The Model.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
Connect For Health Colorado Discussed Fee Increases To Cover Future Costs
Connect For Health Colorado’s Chief Financial Officer Put Together A Proposal That Suggested Increasing The Administrative Fee From 1.4 Percent To 3 Percent By 2017. “[Connect for Health Colorado chief financial officer Cammie Blais] put together a financial model of various financial scenarios and how fees might increase to fund the exchange’s budget. The model suggests that the 1.4 percent administrative fee on policies purchased through the exchange could increase to as much as 3 percent by 2017.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
The Board Previously Rejected A Proposal To Raise The User Fee To 1.7 Percent, Which One Board Member Referred To As A “Tax.” “In March, the board rejected a plan to raise the user fee to 1.7 percent, and last month legislators and board members balked at proposals to begin levying the assessment on policies and to explore selling other products such as vision coverage and life insurance. ‘It’s a tax,’ said Dr. Mike Fallon, a board member who sits on the exchange finance committee, about the broad assessment. ‘Anything we can do to eliminate that or keep it as low as possible is best.’” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
“Any Broad Assessment Would Violate The Colorado Taxpayer’s Bill Of Rights Because Voters Did Not Approve A Tax Increase For The Exchange, [Sen. Owen] Hill Said.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
The Exchange Could Also Levy An Assessment On Other Plans That Would Raise $13 Million. “The Colorado exchange can also levy up to a $1.80 a month broad assessment on all small-group, individual and self-insured, stop-loss policies bought outside the exchange. The model suggests that the fee, which will sunset after 2016, be $1.25 a month on 875,000 policies, for a total of just over $13 million.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
Connect For Health Colorado Overspent
“For The Current 18-Month Budget Ending Dec. 31, The Exchange Has Already Overspent Its Current-Year Budget On Certain Line Items As Much As 10 Times Over Projections With Eight Months Left In The Budget Year.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
“A Marketing Category Was Budgeted For About $32,000 Through December, But The Exchange Has Spent More Than $310,000 As Of March 31. Operations Consulting Was Budgeted For About $528,000, But The Exchange Has Spent $802,000.” (Arthur Kane, “Colorado Health Care Exchange Faces Financial Challenges,” Denver Post, 5/5/14)
In Oregon, John Kitzhaber’s Failed Cover Oregon Exchange Website Is Under Investigation By The FBI
The FBI Is Investigating Problems With Oregon’s Failed ObamaCare Exchange Website, Cover Oregon. “The Federal Bureau of Investigation is looking into problems that plagued Oregon’s implementation of the Affordable Care Act, after the state was forced to scrap its problematic health insurance exchange that was never fully functional, according to people familiar with the investigation. The FBI has already interviewed some individuals as part of their inquiry, which was first reported by local station KATU and the Portland Oregonian last week. Cover Oregon, the health exchange created under the Affordable Care Act, has faced major problems for months, and officials last month agreed to scrap their planned state-run exchange that was meant to connect residents with private insurance options.” (Damian Paletta and Devlin Barrett Connect, “FBI Scrutinizing Health Law Implementation Flaws In Oregon,” The Wall Street Journal, 5/4/14)
“Multiple Congressional And Government Probes Into What Went Wrong In Oregon Are Already Under Way, And It Hasn’t Been Determined Whether The Failed Effort Was A Result Of Incompetence Or If Taxpayer Money Was Abused And Mishandled.” (Damian Paletta and Devlin Barrett Connect, “FBI Scrutinizing Health Law Implementation Flaws In Oregon,” The Wall Street Journal, 5/4/14)
Not Surprisingly, Polling Now Shows Gov. Kitzhaber Tied With Dennis Richardson
A Vox Populi Polling/Daily Caller Poll Showed Dennis Richardson Tied With Gov. Kitzhaber, Each Receiving 40 Percent. “The survey also asked 618 registered Oregon voters who they plan to vote for in the governor’s race, and the answer was a tie with Gov. John Kitzhaber and Rep. Dennis Richardson, R-Central Point, both getting 40 percent. The poll was a joint venture between Vox Populi Polling, a GOP polling firm, and The Daily Caller, a conservative news and opinion website. Pollsters called voters from April 28 to April 30, according to the release.” (Anna Staver, “Republican Poll Shows Dead Heat For Senate, Governor,” Statesman Journal, 5/2/14)