“Untouchables” Needed

1:36 pm, 3/12/05

"Untouchables" Needed
A Springfield-area judge has issued an injunction against part of the Evil One's scheme to siphon money for education from other state funds.

A Downstate judge Friday issued a preliminary injunction blocking Gov. Rod Blagojevich from paying day-to-day state bills with money siphoned from special state accounts earmarked for the regulation of financial institutions

The state has hundreds of such funds, filled by special assessments and fees, that were set up to bankroll conservation programs, scholarships, financial regulation and a variety of other narrow missions.

But Blagojevich, with legislative backing, has drawn more than $400 million out of the special accounts over the last 18 months to pay day-to-day bills of government, ease the state's cash crunch and avoid a general tax increase. In his budget for the coming fiscal year, Blagojevich proposes to tie all increases in spending for schools to the so-called fund sweeps.

The ruling by Sangamon County Circuit Judge Leo Zappa affected only three of the special funds, from which Blagojevich has taken $5 million. But it raised new questions about whether any of Blagojevich's fund diversions could pass legal muster.

Zappa acted in a case brought by banking industry groups that contend the diversions violate the state Constitution.

It came just days after state Treasurer Judy Baar Topinka announced she would no longer approve Blagojevich administration orders to transfer money from the special funds to the state's general checkbook because of concerns the maneuver may be illegal.

But Becky Carroll, a spokeswoman for Blagojevich budget director John Filan, said the injunction "has no bearing on the merits of the case" and that the administration had not counted on transfers from the affected funds until the court made a decision.

"Comingling Schmomingling!"

In issuing the injunction, Zappa said the improper expenditure of fees paid by the financial institutions for use in paying general state obligations "may jeopardize the statutory regulatory system and prevent the regulators from discharging their duties, which inflicts irreparable harm."

I'm sure the FBI is way ahead of me on this, but if I were Bob Mueller, I'd be talking to the Chicago field division about setting up a task force in an office right across the street from the James R. Thompson Center. Heh.

If we couldn't laugh about it, we'd cry.