Is this the beginning…of the end for Scott Walker?

Multiple media outlets are reporting that former Walker Deputy Chief of Staff Kelly Rindfleisch has reached a tentative plea agreement with prosecutors in the Milwaukee County John Doe Investigation.

The plea hearing has been scheduled at 1:30pm in Milwaukee County Circuit Court this Thursday, five days before Scott Walker was scheduled to appear as a witness for the defense.

Facing four felony campaign fraud counts, the 43 year-old Rindfleisch is very likely ready to cut a deal to save herself possible jail time. One of the only avenues she has to a plea deal is to implicate a superior, who would have been instructing her and have full knowledge of her activities. As Deputy Chief of Staff, there are very few people who fall into that category – one being Scott Walker.

One other former Walker aide has already reached a plea agreement – Darlene Wink. That makes two former high level aides to Walker making a deal…and probably talking to save themselves.

Stay tuned as the investigation continues to get closer and closer…

 

Milwaukee DA – Checkmate to Scott Walker in John Doe

Breaking – Scott Walker has been served a subpoena through his attorney Michael Steinle. Walker has been called by Rindfleisch’s defense to testify. It has been reported that Rindfleisch has been cooperating with prosecutors. Walker was originally called as a prosecution witness, but was released and then called by the defense.Walker is being called to testify in the misconduct trial against one of his former Milwaukee County aides, Kelly Rindfleisch.

Walker is scheduled to testify on Tuesday, October 16.

 

County personnel records have shown that Walker was personally responsible for hiring Rindfleisch when he was Milwaukee County Executive. Rindfleisch stands accused of conducting  campaign activities while serving as Deputy Chief of Staff to Scott Walker, just steps down the hall through a secret computer server system.

The investigation has recently expanded to encompass current Walker Administration communications at the State Capitol, including former Walker Chief of Staff Keith Gilkes.

Milwaukee County DA John Chisolm and his investigators have placed Walker in checkmate. Walker must either testify under oath and perjure himself by denying any knowledge of the overt illegal campaign activities, or plead his fifth amendment right against self-incrimination. It would appear the sources quietly hinting that Walker is the likely John Doe target are accurate.

Those predicting an indictment by the end of the year may be closer than they thought. Stay tuned…

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New Marquette-Franklin Poll Vilified by Thompson, GOP

The new Marquette Law School Poll run by Charles Franklin was released yesterday (Wednesday, September 19). It didn’t take Thompson and the GOP long to attempt to discredit the poll – one they have always held in high esteem. The reason – the new poll told them something they didn’t want to hear.

On August 12, 2012 in an interview on Capitol City Sunday (Madison WKOW-TV), Thompson had this to say about the Marquette Poll:

“I think the Marquette poll which is considered pretty much the golden rule or the gold standard, came out and says I was 8 points up. So, I feel very good about going in, and I sincerely believe the momentum is with me and I feel very comfortable about the election.”

On Tuesday, the day before the poll was released, Thompson expressed confidence:

“Let’s see what the Marquette poll says tomorrow,” he said. “I feel very good about where I am at – feel very comfortable about the future of this race.” (MJS article)

After the poll was released, Thompson spokeswoman Lisa Boothe accused the poll of “oversampling for Democrats,” giving an edge to Baldwin. From the Thompson statement:

“We do not believe that today’s Marquette poll reflects the opinions of Wisconsin voters,”

An analysis of the poll shows in this most recent sample, there was a slightly higher number of respondents who identified as Democratic. While Franklin adjusts slightly for that in post-stratification, there is still a slightly higher number identifying as Democrats. The Thompson/GOP vilification is unwarranted. The Marquette poll over the past four months has been very consistent, showing an emerging pattern in the electorate conservatives will be desperate to stop. To the tables…

Marquette Law Poll Demographics (link to graph)

The demographics of the poll remain extremely consistent from July-September. The 45+ age group is slightly over-represented, as is respondents with a post-secondary degree. In political party identification, it is the norm in the poll for Republicans to be slightly over-represented; while Independents are under-represented. The September poll is an exception – showing Dems slightly over-represented. While this is leading to Thompson dismissing the poll – he should not. Even as the party ID appears to lean more Democratic, the big picture of the poll shows there is more at work in the results.

Marquette Law Poll Political trend (link to graph)

The poll shows consistently that about 66% of respondents (low 63-high 69%) follow politics “most of the time,” and 83% are “absolutely certain” to vote in the November election (low 81-high 85%). The next set of numbers disputes the Thompson/GOP bias claim in the poll – political leaning.

The fluctuation of respondents identifying as Conservative, Moderate, or Liberal is relatively consistent in a poll with a +/-3.8% margin of error (MoE). From the August 16-19 poll to the September poll, the values of respondents identifying is within the MoE for each category respectively – Conservative (41-39%), Moderate (30-32%), and Liberal (23-26%). The shift from Thompson to Baldwin has been with moderates, and also with those who previously “did not know enough” about Baldwin, now changing to voting for her – and against Thompson. The slight increase in “Liberal” or “Democratic” respondents does not account for the huge swing to Baldwin.

Marquette Law Poll Favorable rating (link to graph)

The favorability rating of the candidates and Scott Walker show part of the story. Barack Obama’s favorable rating has increased from 51-55%, Baldwin’s from 26-36%. Mitt Romney’s favorable rating is flat at 36%; while at the same time Scott Walker’s has fallen from 50-46%, Tommy Thompson’s from 44-39%.

Marquette Law Poll Unfavorable rating (link to graph)

The unfavorable rating is telling as well – showing a consistent shift apart from any alleged Democratic bias in the sample from a single poll, at a relatively insignificant level. Barack Obama’s unfavorable rating has gone from 42% down to 39%, Baldwin’s has stayed steady at 31%. Romney’s has increased from 42% to 51%, Walker from 45-49%, and Thompson from 36-44%. All increases in Republican unfavorable ratings are outside the MoE – and shifts in “conservative” or “liberal” political ID.

Marquette Law Poll Pres/Senate likely voters (link to graph)

Amongst likely voters, there has been a dramatic shift in the Presidential and Senate campaigns. Much of that shift can be attributed to the GOP Convention disaster, Romney’s campaign failures, and the Dems convention and messaging success. Romney/Ryan received a slight bump, closing them to within 49-46% mid-August. The recent poll has Obama/Biden up 54-40% . The same bump had Thompson up 50-41% on Baldwin; the recent poll has a huge swing, putting Baldwin up 50-41% on Thompson. This eighteen-point swing simply is not explained away by the nominal oversampling of Democratic voters. There is not enough shift in “liberal” vs. “conservative” to account for such a change.

Marquette Law Poll Issues (link to graph)

The August 2-5 poll showed 43% of respondents would agree to “higher taxes for more services.” This recent September poll shows 47% agreeing to “higher taxes for more services.”

In the same August poll, 44% approved of “Obamacare,” in September the number had risen to 49%.

The Bush tax cuts popularity continued decline, from 35% in August to 30% in September.

The above surveyed issues in the poll demonstrate a further shift consistent with the data – the electorate in Wisconsin is trending away from the right-wing GOP issues and candidates. That is why they attempt to discredit the Marquette Poll. The pattern playing out with conservatives is becoming clear.

When facts, data, and science don’t support your ideology-driven agenda, there are three courses of action as a right-wing conservative corporatist. First, ignore. Second, pay someone to write a study that supports your agenda. Third, pay to have your lies repeated to nationwide media.

The full polls cited above can be found here:

MLSP July Methdology          MLSP July Toplines

MLSP August 2-5 Methodology           MLSP August 2-5 Toplines

MLSP10 August 16-19 Methodology         MLSP August 16-19 Toplines

MLSP11 September Methodology              MLSP11 September Toplines

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Prosser, VanHollen, Schimming…and Voter ID

Badger Democracy has obtained  information through open records requests and personal interviews that point to a close circle of friends working together to push the State Supreme Court into taking on the Voter ID question – just in time for the November election.

Conspiracy may be too strong a word, but the trio of David Prosser (Supreme Court Justice), JB VanHollen (Wisconsin Attorney General), and Brian Schimming (lobbyist, state GOP vice chair, former Prosser staffer) have motive, opportunity, and are in position to make it happen. The three have a definitive history; appearing together at Americans For Prosperity conferences (as speakers/presenters) in 2009, 2010, and frequent state GOP events as recently as 2012.

Wisconsin’s voter ID law is on hold after two Dane County judges declared the law unconstitutional in March and July. Wisconsin Attorney General JB VanHollen has previously asked the State Supreme Court to use original jurisdiction, and take the case before the Circuit Courts ruled – the high court declined.

AG VanHollen made a second request of the Court to take the case in late August; in spite of the law being declared unconstitutional by two lower courts. There are also two Federal cases pending against the Voter ID law in Judge Lynn Adelman’s  Eastern District Court. The most compelling of which is “Frank v. Walker” (Case 2:11-cv-01128); challenging whether the law violates the  fundamental right to vote under the Equal Protection Clause, violates the Twenty-Fourth and Fourteenth Amendments as an unconstitutional poll tax, and violates the Equal Protection Clause in arbitrarily refusing to accept certain identification documents.

Based on all these current and compelling Constitutional challenges, and the Court’s previous refusal to intervene; VanHollen’s request of the Court is a significant hill to climb. Unless he knew he had some inside help. Like David Prosser – conservative leader of the Court. Any direct contact with Van Hollen or his office would be too obvious; he needed a middle man…former Prosser clerk, Walker ally, and VanHollen associate Brian Schimming.

In late August, immediately after VanHollen’s second filing, requesting the Court to take the Voter ID case; Badger Democracy followed up on a tip that Schimming was acting as a middle man with Prosser and Van Hollen to lobby the Court to take up Voter ID.  After several phone calls to Supreme Court Justice offices in the Capitol, an anonymous (for obvious reasons) and extremely reliable and non-partisan source stated that while Mr. Schimming was a frequent visitor to Justice Prosser; in July and early August there was a marked increase in these “visits” to Prosser’s office witnessed firsthand by this source.

Badger Democracy immediately filed open records requests with Justice Prosser for the following:

1. Schedule for Justice Prosser to include meetings and conferences from 7/1/12 – 8/21/12

2. Any communication or correspondence with or from Brian Schimming from 7/1/12 – 8/21/12

In addition, the following inquiry to DOJ spokesperson Dana Brueck:

Hi Dana,

I probably know the response to this, but am obligated to ask: Has AG Van Hollen had any meetings recently with Brian Schimming?

Brueck’s response was prompt : “Not to my knowledge…” 

The Prosser Response  came back on August 27. Prosser refused to comply with the schedule request, as it contained “personal” matters which were not subject to open records. In addition, Justice Prosser had no “personal contact” with Mr. Schimming during the time period of concern.

As the response was not pertinent to the request – having to do with “personal matters” a clarification was issued:

1. The schedule request is for his public schedule, in his function as a Supreme Court Justice. Allow me to clarify – the request is for Justice Prosser’s office schedule  for the period 7/1/12 – 8/21/12 regarding Court business and/or conferences regarding matters before Justice Prosser as a Justice of the State Supreme Court.

2. The communication request regarding Mr. Brian Schimming and Justice Prosser is not, as your letter states, regarding “meetings or conferences.” This would be covered by the first request. Nor does it imply “personal correspondence.” Again, this is regarding official Court communication – including emails. I would clarify this request is for Justice Prosser emails and communications referencing Mr. Schimming, or emails to/from Mr. Schimming for the same time period.

A response was received on September 6, 2012 from Prosser’s office. The schedule again was not submitted. A statement was offered explaining that no entries specifically referencing “Court business and/or conferences regarding matters before Justice Prosser as a Justice of the State Supreme Court” were found on the schedule. Although my request was clear in its meaning – scheduled court business and meetings for Justice Prosser; this is clearly an attempt to sidestep the schedule request.

As for the second portion of the request, Prosser’s office reiterated that  “there were no meetings between Mr. Schimming and Justice Prosser during that time period.”  That response presents a problem. By this time, another source within the Court offices in the Capitol had independently verified frequent meetings between Schimming and Prosser during that time period. The two sources have zero motive or partisanship in this matter. They are merely conveying observations.

Badger Democracy has called Justice Prosser’s office twice since September 6, and asked for verification of the information in the open records request. Prosser’s office was also informed that conflicting information existed regarding their response; and asked if they wished to respond to clarify events. As of this writing, no response has been received.

Clearly, Prosser is not being forthright in his responses. In addition, Brueck’s response from DOJ was qualified with “to my knowledge.” Any coordination between VanHollen and Schimming on Prosser’s behalf could easily be done without her knowledge.

Brian Schimming has failed to respond to frequent phone calls regarding this matter.

The fact that there are two sources within the Court itself, independent of each other, corroborating the same information in regard to Schimming’s frequency of “visits” to Prosser’s office – and Prosser’s subsequent omission and denial, make the circumstances more compelling and likely.

The Court could announce the taking up of Voter ID as early as this afternoon; in spite of the GAB being on record that to implement the law now would create “chaos.” Brian Schimming, acting as a go-between for David Prosser and JB VanHollen; to use Prosser’s conservative influence with the conservative majority, to take up and reinstate Voter ID in Wisconsin. Just in time to create chaos.

Sound familiar?

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WMC has the corporate solution to health insurance costs…just drop employees

Two high-level executives at separate Wisconsin Manufacturers and Commerce (WMC) member corporations have informed Badger Democracy of a quiet conspiracy within its membership. According to the executives, WMC is promoting a policy which would have private employers completely drop any employer-paid insurance programs by 2014 – forcing employees into (at the moment) non-existent exchanges in Wisconsin.

Rumors of such an action by employers have been circulating since early 2012.   A May 2012 report from Fox News questioned the ethics, and points out the politics of such an action:

A new survey of Fortune 100 companies finds that the health care overhaul, contrary to the claims of its authors, created some perverse incentives for employers to drop workers from company insurance plans…

“The penalties for the employers who drop coverage are very low, and the subsidies for the workers in the exchanges are very high,” said James Capretta, with the Ethics and Public Policy Center.

If the companies indeed take this step, the move would fly in the face of pledges by the law’s backers, including President Obama, that U.S. workers would not lose their employer-provided health plans.

The Fortune 100 “study” by the partisan Republican House Ways and Means Committee published in May, 2012 ignores the net effect of ACA to control health care costs. Two veteran health economists, David Cutler of Harvard and Karen Davis, president of the Commonwealth Fund, have calculated that over the first decade of Obamacare total spending on health care, in part by employers, will be half a trillion dollars lower than under the status quo.

The  House Ways and Means “study” cites no facts to support these cost increases. It merely cites a survey based on the beliefs of the conservative National Federation of Independent Businesses about what they think the impact of the ACA will be:

Consistent with the findings of this report, a separate survey of benefits and human resources executives managing health care costs shows the vast majority of respondents—about 85 percent—said they expect health care costs to rise in the next five years as a result of the law. 68 percent said they plan to re-evaluate their benefits strategy to offset the law’s impacts.

The report ignores the economic reality of the ACA reported in non-partisan studies (i.e. Cutler/Davis above). Rather, the “study” focuses on rationalizing the action of large employers who would drop any employer-funded health plan. In complete ignorance of the economic consequences of such a cynical, political, and ethically challenged action; the US Chamber of Commerce also sounded a warning:

“Despite promises that the health reform law would build on the existing employer sponsored system, the [employer] mandate will in fact undermine it. It will be more affordable for employers to pay the penalty for not offering coverage than to offer coverage
itself. And so, ironically, the employer mandate incents employers to stop offering health care coverage.”

The economic repercussions of such an action would be severe – especially during the current recession. Just what is the cost to employers for health insurance benefits?

The March 2012 report from the Bureau of Labor Statistics breaks it down by the hour. “Employer costs for private industry workers averaged $2.34 per hour worked for insurance benefits (life, health, and disability insurance).” A year of 40 hour work weeks amounts to 2,080 hours per year. The average cost to employers, from BLS data, is $4,596.80. Let’s give corporations the benefit of the doubt – $5,000/year on average for health insurance premiums.

The savings is obvious. The ACA assessment per employee (over 30 employees) for employers who offer no health insurance is $2,000. The average employer would save $3,000/year for each employee (after the first 30) by dumping their health plan, and just paying the assessment.

The cost to the average employee (and the broader economy) would be devastating. A search on the US Government website for health insurance coverage in Wisconsin, based on a similar, employer-provided health plan; show the cost to the employee would be nearly double the cost to the employer. $7,800 in premiums, coupled with a $2,000 deductible…versus $5,000 in cost to the employer.

The following email was sent to WMC spokesman Jim Pugh on Friday AM, September 7:

Hi Jim,

Having spoken recently to a CEO/President of a WMC member corporation in Milwaukee, I was told by this person that WMC is advising its members that to avoid having to comply with the full scope of the Patient ACA in 2014; if the law still is in force, member corporations should drop its employee benefit regarding health insurance. This would force formerly covered employees into the exchange, and more expensive (for them) premiums.

Do you have any comment on this? I will be forwarding any response to the person who gave me the information for a response.

In the absence of a response, I will assume “no comment.”

No reply has been received as of this writing.

The motivation here is simple – ideology and greed. Many corporations (including those led by Badger Democracy sources) are profitable under the current scenario. Indeed, many of the largest are currently paying little to zero in taxes. As medical costs decrease, and the insured pool expands, those costs to the employer will continue to decline (as most non-partisan studies have reported). The motivation and ideology of profit is taking precedence over simple societal, human decency.

Any corporate entity or lobby which participates in this type of activity, which would be ruinous to a broader economy, should be vilified for the cynical ideologue they truly are. Wisconsin Manufacturers and Commerce, The US Chamber of Commerce, and any of its GOP lackeys are showing their true priorities – profit. At any cost.

Follow Badger Democracy for daily reports from Chicago, and the Chicago Teachers Union strike…starting with Monday night’s post!

Facts elude Scott Walker…along with the truth

Scott Walker’s press release on August 29th fired a shot across the border at Illinois Governor Pat Quinn. Credit rating agency Standard & Poor’s downgraded Illinois from A+ to A with a “negative outlook.” From the Walker press release:

There could not be a more stark contrast between Wisconsin and Illinois. Political leaders in Illinois kicked the can down the road, raised taxes, and ignored fiscal realities.  Now, they’re realizing the consequences of their actions: credit downgrades and negative outlooks. Wisconsin balanced a $3.6 billion budget deficit without raising taxes, reducing services, cutting Medicaid, or engaging in any massive public employee layoffs.  We enacted long‐term structural reforms, which led to another bond house giving our current budget a “credit positive” outlook.

Walker omits the critical part of the story, resulting in a lie of omission. His attempt to take credit for an already sound fiscal policy has been completely missed by Wisconsin media. The Chicago Tribune gets it right:

The agency lowered the state’s credit rating from A+ to A, citing a “lack of action” on changes aimed at lowering the pension system’s unfunded liability that could hit $93 billion by next summer if nothing is done.

The downgrade was regarding the Illinois pension fund – which had been raided to offset budget deficits over a period of several years. The Walker Administration, desperate to receive positive press, is taking credit for a sound state pension fund which Walker inherited; and whose policies to date have had zero impact on. Walker omits this critical piece of information in his press release. The Wisconsin press corps has yet to call out Walker on this lie of omission. 

This is consistent with Walker’s behavior in making public statements throughout his term in office. At the GOP Convention last night, Walker repeated the persistent lie of Barack Obama being responsible for the Janesville GM plant closing. In this case, Rachel Maddow, Ed Schultz, and Al Sharpton call him out on national television; letting Walker paint himself into an uncomfortable corner – all the while maintaining the lie.

The record is clear. GM officially closed the Janesville plant on December 23, 2008; laying off 1,200 workers. A small crew of several dozen workers stayed on to complete a small order of trucks under contract to Isuzu. Yesterday’s Politifact (August 29, 2012) makes this clear, rating Ryan’s assertion false; including the assertion that Obama “promised” to keep the plant open.

Perhaps the Wisconsin media misses this because the status quo is Walker lying. Watch for headlines when he actually tells the truth…or is indicted and forced to admit to the truth.

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New Job Numbers and Paul Ryan – Fiscal Fraud, Moral Hypocrisy

Paul Ryan is being characterized by Republicans and main stream media alike as a “serious, wonkish, economic whiz kid.” He is the quintessential conservative; saviour of capitalism and the free market. Even Democratic pundits and politicians are saying “he’s a good guy”. Here’s something you won’t hear in the mainstream media – the disciple of Ayn Rand is an economic fraud. Moreover, he’s a hypocrite. Ryan recently denied following the philosophy of Ayn Rand, in spite of his own words and actions showing he wholly embraces Rand’s worldview.

The most recent Bureau of Labor Statistics (BLS) data indicates that the 1st Congressional District continues to suffer under policies Ryan has supported since taking office in 1999. In-depth analyses of the Ryan Budget prove it would make a bad situation worse.

The data released today from the BLS was more bad news for the Walker Administration, and DWD Secretary Reggie Newson wasted no time refuting and spinning the data.   The bottom line – Wisconsin’s job “growth” continues to be anemic (that for another day). Badger Democracy wanted to present the data on Ryan’s district with a statistical measure accepted by the Walker Administration. In this case, using the “Local Area Unemployment Statistics” (LAUS) which Newson accepts per his press release today.

For the record – Paul Ryan began serving the 1st CD in 1999. Since then, the nation has experienced 8 years of Bush fiscal policies; for which Ryan has been a staunch advocate. It could be said the Ryan Budget is Bush fiscal policy on steroids – massive cuts in government spending, privatizing of Medicare, cuts to Medicaid, lower taxes on the top-tier earners, corporate rate cuts…how has that policy been working in Ryan’s home district?

Badger Democracy retrieved data from the BLS today, August 16, from the LAUS for key areas in Ryan’s District – Janesville, Kenosha County, Racine County, and Walworth County; from January 1999 – June 2012. The results are available in pdf format here : Bureau of Labor Statistics Data 1999-2012

Unemployment Rate:

Kenosha County – January 1999 – 3.8%     June 2012 – 8.6%

Racine County – January 1999 – 5.5%        June 2012 – 9.2%

Walworth County – January 1999 – 3.1%   June 2012 – 7.8%

City of Janesville – January 1999 – 3.8%    June 2012 – 9.9%

Unemployment (number of persons):

Kenosha County – January 1999 – 3,121     June 2012 – 7,528

Racine County – January 1999 – 5,089        June 2012 – 9,222

Walworth County – January 1999 – 1,625   June 2012 – 4,341

City of Janesville – January 1999 – 1,249    June 2012 – 3,212

Even in contrast to 2007, just prior to the economic crash, as in Wisconsin, Ryan’s district shows virtually zero growth in jobs. The real nature of the jobs crisis resulting from conservative fiscal policy is evident in the employment and labor force data.

Employment (number of persons):

Kenosha County – January 1999 – 79,320     June 2012 – 80,159

Racine County – January 1999 – 87,971        June 2012 – 90,898

Walworth County – January 1999 – 50,490   June 2012 – 51,173

City of Janesville – January 1999 – 31,478    June 2012 – 29,096

Labor Force (number of persons):

Kenosha County – January 1999 – 82,441     June 2012 – 87,687

Racine County – January 1999 – 93,060        June 2012 – 100,120

Walworth County – January 1999 – 52,115   June 2012 – 55,514

City of Janesville – January 1999 – 32,727    June 2012 – 32,308

Again, even in terms of 2007-2012, the creation of jobs does not keep up with population OR labor force growth in Wisconsin, and more specifically dramatic, Ryan’s District. Despite the claims of conservative ideologues Paul Ryan and Scott Walker – their fiscal policies are simply a fraud. They also demonstrate a gross hypocrisy in being accepted as “fiscally responsible.” To wit:

1. Ryan cuts $4.6 trillion in revenue, in tax breaks amounting to $240,000/year to the average 1%er. He makes this “revenue neutral” through “undisclosed closed loopholes.” In addition, a minimum of 14 million people would lose Medicaid coverage due to cuts as a “cost-saving” measure.

2. Ryan has been a vocal critic of monetary policy and government intervention in the bond market, sounding the alarm of inflation. He couldn’t be more wrong. Inflation has been kept in check throughout the recession and both Commodity Index and Treasury Bond rates are stable, if not declining.

3. Ryan’s budget plan projects a fantasy in discretionary spending, according to the Congressional Budget Office. All discretionary spending, now around 12 percent of GDP, shrinks to 3 percent of GDP by 2050. Defense spending alone was 4.7 percent of GDP in 2009. Paul Krugman summarizes it best…”This is just a fantasy, not a serious policy proposal.”

Paul Ryan himself recently admitted on FOX  that he hasn’t actually “crunched the numbers.”  Krugman and others have, and the facts demonstrate the fraud being perpetuated by Ryan, Walker, and their ilk. This is about power, ideology, and political expediency – thus Ryan’s sudden public rejection of Ayn Rand’s philosophy after being tapped for Romney’s VP pick.

Budgets are moral documents. Ryan’s budget tells us all we need to know about him. He doesn’t care about the people he actually represents. He is not a “good guy.” He is a bad man, who chooses fraudulent, hypocritical policies over responsible governance.

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Robb Kahl – Transportation Construction Kingpin…and Democratic Assembly Candidate?

There is an Assembly race progressives should be very concerned about. The story has been under the radar, with many engaging campaigns throughout the state. The outcome of the primary next week could mean that even if a Democratic candidate wins, representation in the 47th will be anything but progressive. If the front-runner in the Democratic primary wins, a powerful special interest group (and the candidate) stands to profit greatly.

Former Mayor of Monona Robb Kahl is running as a Democrat in the 47th Assembly District, encompassing a large portion of Monona and part of McFarland. Democrats were highly critical of Republicans running “fake” Dems in recall elections; it appears that Kahl is a real fake Democrat – begging the question – just what do Dems stand for in the post-recall world…and what will Kahl do with his influence if he wins?

Kahl served four terms as Mayor of Monona, resigning before running for a fifth term. That’s not all – from the candidates’ bio:

Robb currently is Executive Director and General Counsel for a non-profit labor and management organization that serves as a watchdog and educational entity that protects workers and taxpayers rights by monitoring public construction projects for compliance with the various applicable state and federal laws.  Robb is also a small business owner, with five employees working with him at Generations Title in Monona, a company he started with one employee in 2006.

The “non-profit labor and management organization” is the Construction Business Group (CBG). The benign description on the candidate website hardly does the organization justice, nor Kahl’s role as a transportation construction kingpin in Wisconsin. A role he has, and will, continue to profit from even while in public office. Just to be sure, Kahl received an opinion recently from the GAB that he could maintain his position as Executive Director of CBG if he wins an Assembly seat.

It is of minor interest that Kahl has donated twice to JB Van Hollen, a total of $600. Of greater interest are his dealings with CBG, his lobbying efforts, and his relationship with Governor Scott Walker. CBG exists to lobby for legislation that revises prevailing wage laws, and gives private contractors advantage and access over public works contracts awarded by counties and municipalities.

While still Mayor of Monona, on January 8, 2009, Kahl registered as a lobbyist for CBG.  In the 2009-2010 session, Kahl and CBG spent over $230,000 lobbying for private contractor access to public works and prevailing wage modifications. The mayor/lobbyist was already “lobbying” JB VanHollen for a favorable ruling in 2008, requesting an opinion that favored private contractors in public works contracts. Van Hollen denied the request in 2009. Kahl was working for CBG, the International Union of Operating Engineers (IUOE), and Terry McGowan while serving as mayor of Monona in 2008 – 2010; overseeing landmark road construction projects in the city.

On December 18, 2010, Kahl sent an email stating he would not seek re-election as mayor after four terms. IUOE Financial records from 2011 show that in that one year, Kahl was paid $154,536 as “Public Relations Coordinator” (see schedule 12 of the report). 2011 was a banner year for Kahl, CBG, and IUOE.

On April 21, 2011, Kahl and McGowan met with Scott Walker – the IUOE PAC gave $12,000 to the Walker campaign. The Walker budget includes provisions favorable to private contractors’ efforts to gain public road construction contracts away from public employees and county road crews. They also gained modifications to prevailing wage laws, opening loopholes for private contractors to bypass aspects of the law and pay lower wages; using less skilled workers than previously allowed. Progressive Dems were strongly opposed to these provisions.

October 6, 2011 – Kahl is appointed by Scott Walker to the Wisconsin Commission on Transportation Finances and Policy. At this time, Kahl is still a registered lobbyist paid by CBG and IUOE. There is no mention of any potential conflict of interest, nor is this currently disclosed on Kahl’s campaign website.

November 28, 2011 – a commentary from Kahl quietly appears in the LaCrosse Tribune lauding the benefits of the transportation budget provisions he lobbied in favor of, and profits from:

The state budget, which passed four months ago, included provisions that set parameters for public sector vs. private enterprise on highway construction. Sen. Kathleen Vinehout, D-Alma, is now calling for the repeal of those provisions, saying the new law ties the hands of county highway departments.

What Kahl failed to mention, conveniently, is the new system actually DOES take local decision-making away. Local budgets are slashed, and prohibitions are placed on local governments ability to utilize public employees and resources. Instead, turning taxpayer dollars over to a select few contractors whose interest is not the public good – but maximum profit. Kahl is now part of the Walker Transportation Administration, as he profits from his own policy decisions and lobbying efforts.

March 26, 2012, Kahl withdraws his lobbying registration for CBG. Just four days later, on March 30, he announces his candidacy for the 47th AD. Kahl’s “big money” donors list is a who’s who of corporate money in politics…here are a few:

Jason Childress – $100 – prolific Foley and Lardner Lobbyist, formerly for Koch Industries. Still lobbying for Smart Government Inc – the lobby arm of the Greater Milwaukee Committee…champions of municipal privatization.

Terry McGowan – $500 – Lobbyist/President IUOE

Stephen Brown – $500 – Owner of Steve Brown Apartments, gave $5,000 to McCain/Palin in 2008.

John Burke – $500 – President of Trek Bicycles

Shane Griesbach – $100 – Draws a salary of $114,522 (2011) as Executive Board Member of IUOE local 139; also serves on Outagamie County Board.

Glenn A. Solsrud – $500 – Real Estate Developer who has received hundreds of thousands of dollars in low-income housing credits from WHEDA. 1999-2000 received $124,000 in low-income housing credits from HUD. Has given thousands of dollars to Ron Kind campaigns as a thank you. 

Robb Kahl appears secure in the knowledge that the GAB will let him slide on any pending conflicts of interest if he is elected to the Assembly. His entire political career for the last four years has been just that – he has and will continue to profit personally and professionally ( and politically it would seem) from direct business dealings.

What is sad, is that supposed “progressives” Mark Miller and Peter Barca have championed Kahl – especially in courting support of labor. This after Kahl’s CBG and IUOE have thrown its public sector brothers and sisters over the political abyss. Can there be any doubt Kahl will do the same thing – in spite of his campaign rhetoric? Just what do these Democrats stand for?

Robb Kahl did not return two calls to his cell phone asking for an interview.

 

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New Mining Bill in Wisconsin – very much alive…

About four months ago, a controversial mining bill was declared dead. Even Gogebic Taconite President Bill Williams said the company was leaving the state because the Senate sent a “clear message that Wisconsin will not welcome iron mining. We get the message.” An investigation by Badger Democracy has revealed that announcement was misleading and premature.

Even before the failed passage of the mining bill (AB426), Scott Walker appointed Tim Sullivan (President and CEO of Bucyrus – mining equipment manufacturer) as “Special Consultant for Business and Workforce Development.” In mid-June, Sullivan himself admitted that passing a mining bill was still a top priority. However, with the DNR reporting G-TAC withdrawing its exploratory permit and “packing up the operation;” any revised mining legislation easing the permitting and regulatory process seemed unlikely – especially considering the heavy push back from citizens and political fallout.

The lobbying and money trail of G-TAC and mining interests continue to show great interest in mining legislation. It is highly unlikely a company would commit so many resources to an effort it had “given up on.” Gogebic spent over $200,000 in 2011 lobbying for mining legislation. That’s not all – G-TAC has put new lobbyists on the effort – adding 4 in November-December 2011; and one as recently as February 2012. 

Of the new lobbyists, 2 are from “Arrowhead Strategies” in Madison (Thomas Fonfara and Robert Seitz) operating out of 10 East Doty St, the same building as the Koch Industries lobby. Both have lobbied for the American Federation for Children. Jack O’Meara began lobbying for G-TAC in February 2012.

The final two recent lobbyist additions are G-TAC employees – Engineer Timothy Myers, and President Bill Williams. As the lobbying investment continues, it is unlikely G-TAC would give up on such a heavy investment – one that dates back to January 2011.

Recent Mining Bill emails disclosed under open records requests reveal a series of communications between the parties authoring the legislation early 2011. The process started at the law firm Whyte, Hirschboeck & Dudek (WHD) and attorneys Thomas Pyper and Michael S. Rogowski (at the time both lobbyists for Gogebic). Ironically, Rogowski was also a lobbyist for the Ho-Chunk Nation and has since withdrawn from Gogebic. From there, the draft legislation written by  WHD went to Walker’s office for proofing. Next – either to DNR for rule  clarification or directly to the Legislative Reference Bureau attorneys, who wrote the legislation to comport with statutory language.

Of particular interest is the exchange on page  11 of the emails. The email originates from Attorney Rogowski (Gogebic) to “Scott and Keith” – no doubt Keith Gilkes (Gov. office) and Walker himself. The email is an introduction to Marc Holtzman “meeting with Scott (Walker)” to help with his campaign – including “contributing.” Marc Holtzman is Vice-Chair of Barclay’s and failed 2006 GOP candidate for Colorado Governor from Aspen. The contact was initiated by Larry Wolk, President and COO of Correctional Healthcare Management in Colorado – now pushing for privatized correctional healthcare nationwide. Always a campaign for Walker. But we’ve digressed.

WHD senior partners have been rewarded well for their service in writing mining legislation for Walker, GOP, and G-TAC. In February 2011, Mary Stitt (husband Donald is partner with WHD) was paid $215,000 by the Walker Campaign as “lead fundraiser” for Scott Walker. In July 2011, Don Daugherty, Senior Partner at WHD was appointed to Walker’s “Judicial Selection Advisory Commission.” WHD Partners also contributed $6,000 just in individual contributions to the Walker recall campaign.

With all this effort and investment, it would seem unlikely G-TAC would just “pack it up.” This is not mere speculation – they are waiting for the right time, and it will be January 2013.

A letter dated January 16, 2012 from The Wisconsin Mining Association (Tim Sullivan, President) urged Assembly passage of AB426:

Our board is supportive of AB 426 because
we believe the legislation accomplishes…goals critical to creating a reasonable regulatory framework under which we can promote responsible iron mining in this state.

At the bottom of the list of WMA Board Members are two names – Jim and Kennan Wood, of Wood Communications Group. Today, as Badger Democracy was preparing this expose, The Progressive published a July 19, 2012 letter from Wisconsin Manufacturers and Commerce Senior Vice President James Buchen to Kennan Wood. The letter references a meeting between “Kurt (Bauer), Scott (Manley – WMC Director of Environment and Energy Policy), and Buchen. The strategy is laid out, confirming the lobbying activity and connecting the dots. In brief, the strategy is to continue allowing G-TAC to take the lead in any further legislation, and wait out the results of the November election – without mentioning the issue to “George Meyer, Bob Jauch, or anyone else.”

Sorry WMC, WMA, and G-TAC – your secret is out. The question is, why is this being pursued so persistently? Former chief state geologist Bruce Brown has questioned the economic feasibility of the Gogebic Taconite mine. While G-TAC had received permits to do exploratory sample drilling, they have since cancelled those permits. According to the DNR, G-TAC has not taken any core samples at the mine site. According to Brown, there are two major issues. First – the sharp pitch of the iron ore. Normal pitch is around 50-56 degrees; at the Gogebic site, the pitch is 60-70 degrees. Second, the surface  rock, according to Brown, is very deep – and may have a heavy sulfide composition creating additional costly extraction issues.

The DNR considers the Gogebic Mine to be a non-issue, remarking that the company has ceased all operations and cancelled permits. Yet they continue to invest political and financial capital into the project. If they haven’t taken samples, what are they (literally) banking on?

One anonymous DNR scientist shed some light on that question. The current mineral rights are owned by three companies – LaPoint, RGGS, and US Steel. According to the DNR, US Steel had made many exploratory efforts in the Gogebic range from 1950-1970. G-TAC is leasing the mining rights to that land from those companies. It is very possible that G-TAC has already seen results of core tests previously taken by US Steel. The effort being put into this legislative process by G-TAC is consistent with having knowledge, even if slightly outdated, that the mine would be highly profitable.

For the record, G-TAC did not respond to repeated questions regarding this article. Should the GOP take the elections in November, we will see a mining bill, written by G-TAC, again. And they will have an even greater vested interest in its passage.

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US Senator Ron Johnson disposed of securities holdings…by creating a charitable foundation

Tax returns and financial documents filed by Wisconsin Senator Ron Johnson show the first-term Republican has disposed of securities holdings, as promised in his campaign. Instead of a blind trust, however; he and his immediate family started a non-profit charitable foundation which was gifted several large securities formerly held by Johnson. The foundation then converted the securities into cash assets, which have been the source of minor donations over the past three years – keeping much of the cash assets in tact, and in direct control of Senator Johnson.

As early as Fall 2009, Ron Johnson began appearing on the Tea Party speaking circuit. Just prior to that, on May 12, 2009; Johnson and several of his immediate family members (and one faithful campaign contributor) registered a non-profit corporation in Wisconsin – The Grammie Jean Foundation, with Ron Johnson as the Registered Agent. Examination of financial records for Johnson and the Foundation seem to confirm the intent was to help Johnson clear a path for “disposing” of potential financial conflicts in preparation for his 2010 campaign. Johnson had a great deal of work to do.

In August, 2010, it was reported by Daniel Bice that Johnson’s PACUR Corporation had changed the company’s history on its website, to eliminate controversy over a railroad grant to Johnson’s company. According to the Johnson Campaign in 2010 (from the Bice article):

“Ron Johnson moved to Wisconsin in June of 1979 and started Pacur, which has become a true Wisconsin success story,”  (Johnson Campaign Website)

The only problem with Johnson’s timeline, however, was Pacur’s own website, which put its founding in 1977. It is not unusual for companies to adopt the corporate histories of their predecessors or firms they acquire, especially if it makes them look like they have deeper roots in a community. Wisconsin Industrial Shipping was owned by Johnson’s brother-in-law, Pat Curler.

But by Wednesday – voila! – Johnson’s company website had been brought in line with statements by Johnson’s campaign. 

By August 2010, Johnson had been well on his way to getting his finances in order – especially securities which could pose a potential financial conflict of interest.

The 2009 Statement of Economic Interest (SEI) filed by Johnson show significant shares (among many multinationals) of Monsanto and Exxon Mobil stock (page 4 of the document).  According to the 2009 form 990pf filed with the IRS, on May 5, 2009 (3 days before the corporate registration with Wisconsin DFI), Ron Johnson “gifted” the Grammie Jean Foundation 104 shares of Monsanto securities and 2,728 shares of Exxon Mobil securities with a fair market value reported as $194,069. In addition, Ron and Jane Johnson personally gifted $56,347 on the same day – May 5, 2009.

Three days later, on May 12, 2009; The Grammie Jean Foundation (being run by Johnson) sold 104 shares of Monsanto for $8,489, and 1,328 shares of Exxon Mobil for $56,137. Later that year in November (well after Johnson had started the Tea Party circuit), The Foundation sold the remaining 1,400 Exxon Mobil  shares for $83,593. The total net cash assets generated from these transactions was $148,219 + $2,322 in dividends. 

Tax returns show the Grammie Jean Foundation awarded only $68,500 in grants in 2009, leaving the foundation with over $130,000 in cash assets at year-end. All but one award went to out-of-state charities, primarily in Minnesota – Johnson’s home state. Badger Democracy interviewed the administrators of several of the charities who all had consistent accounts of their grants. They had been awarded the grants unsolicited; and the awards (in most cases) have been repeated in the two consecutive years of 2010, 2011.

The Directors of the Foundation are Ron Johnson, Dean Johnson (“Hometime” creator and Ron’s brother from Minnesota), Barry Johnson (Ron’s brother and PACUR officer), Dale Johnson (Ron’s father – also in Minnesota), and Lynn Bleckinger – a faithful Johnson campaign donor from Bloomington, Minnesota.  The Bleckingers gave $7200 to the 2010 Johnson campaign. None of the officers report any salary from the Foundation.

Johnson’s SEI for 2010 and 2011 show a clear pattern of these large securities falling off the Senator’s investment holdings. A June 6, 2011 article in the Appleton Post-Crescent told part of the story, this quote from Johnson:

“I sold every liquid asset so there would be absolutely no chance for conflict of interest,” Johnson said in an interview Wednesday with Gannett. “Throughout the campaign, I had said I’d put money into a blind trust. Those things take so long to set up, I thought the best thing would be to turn all those (stocks) into cash and set up a blind trust in the future.”

Johnson has not set up a blind trust. The 2009 financials show that Johnson has indeed “sold every liquid asset.” It would appear that he has maintained control of the cash assets, however, through the charitable foundation he set up with his family (and donor).

Meanwhile, Johnson continues to promote the interests of big oil (even supporting Great Lakes oil development) and agri-business (like Monsanto and Exxon).

It is important to point out that should the Grammie Jean Foundation dissolve (say, after Johnson leaves office); it’s assets (including cash resulting from securities sale and re-investment) could very well revert back to the registered agent – Ron Johnson. The Senator is poised to maintain complete control over his fortune from sale of securities; and hypothetically, re-invest post Senate tenure – using all the insider knowledge gained from his experience.

For the record, the Grammie Jean Foundation phone number registered with the Wisconsin DFI is that of PACUR. A PACUR spokesperson referred Badger Democracy to Senator Johnson’s office for requests to view the 2010 and 2011 990pf filings (as required by Internal Revenue Code). The Senator’s office has not yet responded to this request.

After speaking with the IRS, Badger Democracy has initiated a request with the IRS to view the financial records for Johnson’s Foundation, and will update as available.

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