McHenry County Blog

A press release from the U.S. Attorney’s Office:

FORMER DIXON COMPTROLLER RITA CRUNDWELL PLEADS GUILTY TO FEDERAL FRAUD CHARGE, ADMITS STEALING $53 MILLION FROM CITY

ROCKFORD — The former comptroller of the City of Dixon, Ill., Rita A. Crundwell, pleaded guilty to a federal fraud charge today, admitting that she stole more than $53 million from the city since 1990 and used the proceeds to finance her quarter horse farming business and lavish lifestyle. Crundwell p
eaded guilty to one count of wire fraud and also agreed that she engaged in illegal money laundering as part of her plea agreement with the government.

Crundwell, 59, formerly of Dixon, faces a maximum sentence of 20 years in prison and a $250,000 fine, or a fine totaling the greater of twice the gross gain or loss from her crime. The government anticipates that the advisory United States Sentencing Guidelines range will be 15 years and 8 months to 19 years and 7 months (188-235 months), while the defense position is that the advisory range is 12 years and 7 months to 15 years and 8 months (151-188 months). The plea agreement allows the government and defense attorneys to recommend whatever sentence they deem appropriate.

Crundwell remains free on her own recognizance pending sentencing, which Senior U.S. District Judge Philip G. Reinhard set for Feb. 14, 2013.

Crundwell agreed that she owes restitution to the city of Dixon totaling $53,740,394, minus any credit for funds repaid prior to sentencing. She also agreed to the entry of a forfeiture judgment in the same amount. Since she was arrested on April 17 this year, Crundwell has agreed to the liquidation of assets that she had acquired with proceeds from her decades-long fraud scheme. To date, the United States Marshals Service has recovered approximately $7.4 million from the online and live auctions of approximately 400 quarter horses, vehicles, trailers, tack, and a luxury motor home, with additional auctions of personal belongings and real property in Illinois and Florida still pending. The net proceeds from the forfeited property will be held in escrow pending further proceedings on restitution to the victim of the offense. Under federal law, the government may continue to seek additional assets of a defendant and obtain restitution for up to 20 years after a defendant is released from prison.

“Since the outset of this case, we have used every available means, including both criminal and civil forfeiture proceedings, to ensure the recovery of as much money as possible for the City of Dixon, its residents and taxpayers,” said Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois.

Gary Shapiro

Mr. Shapiro praised the FBI agents who conducted the investigation and the U.S. Marshals Service for its efficient management of the seized assets. He announced the guilty plea with William C. Monroe, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Daryl McPherson, United States Marshal for the Northern District of Illinois.

Dixon, with a population of approximately 15,733, is located about 100 miles southwest of Chicago. Crundwell served as comptroller and handled all of the city’s finances from 1983 until she was arrested in April.

According to the plea agreement, on Dec. 18, 1990, Crundwell opened a bank account, which she alone controlled, in the name of the City of Dixon and RSCDA, known as the RSCDA account. Between December 1990 and April 2012, Crundwell used her position as comptroller to transfer funds from Dixon’s Money Market account to its Capital Development Fund account, as well as to various other city bank accounts. She then repeatedly transferred city funds into the RSCDA account and used the money to pay for her personal and private business expenses, including horse farming operations, personal credit card payments, real estate and vehicles.

As part of the fraud scheme, Crundwell created fictitious invoices purported to be from the State of Illinois to show the city’s auditors that the funds she was fraudulently depositing into the RSCDA account were being used for a legitimate purpose. In one instance, described in the plea agreement, on Sept. 8, 2009, Crundwell wrote checks for $150,000 and $200,000 drawn on two of the city’s multiple bank accounts. She deposited both checks into Dixon’s Capital Development Fund account and, later the same day, wrote a check for $350,000 payable to “Treasurer” and deposited that check into her secret RSCDA account. Crundwell created a fictitious invoice to support the payment of $350,000 to the State of Illinois that falsely indicated the payment was for a sewer project in Dixon that the state completed. Later on Sept. 8, 2009, Crundwell wrote a check drawn on the RSCDA account for $225,000, which she deposited into her personal RC Quarter Horses account. She used that money to cover a $225,000 check, dated Sept. 1, 2009, drawn on the RC Quarter Horses account to purchase a quarter horse named Pizzazzy. The purchase check would not have cleared if Crundwell had not deposited $225,000, using city funds, into her horse account on Sept. 8.

To conceal the scheme, Crundwell told city officials that the city’s budgetary shortfalls were due to the state being late in its payment of tax revenue to the city, knowing instead she had fraudulently transferred the city’s funds for her own use. Crundwell picked up the city’s mail, including bank statements for the RSCDA account, to conceal the scheme and prevent other employees from learning about the secret account. When she was away, she asked a relative or other city employees to pick up the mail and separate any of her mail, including the statements for the RSCDA account, from the rest of the city’s mail.

Dixon’s mayor reported Crundwell to law enforcement authorities in the fall of 2011 after another city employee assumed her duties during an extended unpaid vacation. Crundwell, whose annual salary was $80,000 annually at the time, received four weeks of paid vacation and she took an additional 12 weeks of unpaid vacation in 2011. While Crundwell was absent, her replacement requested all of the city’s bank statements. After reviewing them, the employee brought the records of the RSCDA account to the attention of the mayor, who was unaware of the account’s existence.

While serving as Dixon’s comptroller, Crundwell also owned RC Quarter Horses, LLC, and kept her horses at her ranch on Red Brick Road in Dixon and the Meri-J Ranch in Beloit, Wis., as well as with various trainers across the country. In addition to the horses and all of their equipment, among the assets seized or restrained were Crundwell’s two residences and horse farm in Dixon, a home in Englewood, Fla., 80 acres of vacant land in Lee County, a 2009 luxury motor home, more than a dozen trucks, trailers and other motorized farm vehicles, a 2005 Ford Thunderbird convertible, a 1967 Chevrolet Corvette roadster, a pontoon boat, jewelry, and approximately $224,898 in cash from two bank accounts.

The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Scott Paccagnini.

From the U.S. Attorney’s Office:

“…defendant Rita Crundwell, former comptroller for the City of Dixon, Ill., is scheduled to change her plea to guilty at 9:00 a.m. tomorrow, Wednesday Nov. 14, 2012, before Senior U.S. District Judge Philip G. Reinhard in Federal Court in Rockford.”

Rarely can it be said that local governmental officials want people looking over their backs.

Dan Duffy

When someone new starts coming to board meetings, it’s not long before one of the officials tries to find out why the newcomer is there.

The audience member might be a threat at the next election.

Last year State Senator Dan Duffy presented the idea of requiring local governments to publish the transactions of their check books.

That, of course, would allow the ordinary hoi poloi to see what their tax dollars are being spent on and the public officials would not know who knew what.

In any event, I noticed that St. Louis Post Springfield reporter Kevin McDermott mentioned Duffy’s bill in an article about the $53 million embezzlement in Dixon, Illinois.

Here’s what McDermott wrote:

“…the story is nonetheless making waves in Springfield and elsewhere, prompting local leaders to double-check the books.

“How many other Dixons might be out there right now?” asked Illinois state Sen. Dan Duffy, R-Barrington.

“His bill to require cities to post their finances online was believed to be dead this year, but it is now revived because of shock in Springfield over the Dixon story.”

The bill’s number is HB3895.

A press release from State Senator Dan Duffy:

Dan Duffy

Senator Duffy calls for government checkbooks to be online

Lawmaker says transparency could have prevented 53M theft from Dixon, IL

SPRINGFIELD, Ill. (May 9, 2012) – Following allegations that a Dixon city official stole $53 million from city coffers, State Senator Dan Duffy is calling for legislation that would require local governments in Illinois to post their checkbooks online.

Senator Duffy’s bill, SB 3392, would require all local governments – including school boards, townships and municipalities – to post their checkbooks online.

The state senator said it’s possible that the alleged Dixon theft could have been flagged earlier if the public had access to this vital information.

Senator Duffy has been pursuing this transparency bill for several years.

In the past, Springfield leadership has not allowed this bill to be called in a senate committee for a hearing.

“These accusations highlight why it’s so important for Illinois to move forward on government transparency,” said Sen. Duffy, R-Lake Barrington.

“If you look at the city of Dixon’s website, there is almost no financial information available to the public.

“Without filing onerous Freedom of Information Act requests, the public had no mechanism for holding its city officials accountable or investigating the finances themselves.”

The Illinois Policy Institute supports this legislation and greater efforts by Sen. Duffy to improve the level of government transparency in Illinois.

Since 2010, the nonpartisan Institute has partnered with local citizen activists to grade governments on how much public information is available online. More than 130 government entities have been graded using the Institute’s 10-Point Transparency Checklist.

The city of Dixon received a failing grade on the [Illinois Policy] Institute’s audit, scoring only 18.1 out of 100 possible points. [Emphasis added.]

In addition to having no budget or financial information available on the city’s website, there also is no information outlining how to file a Freedom of Information Request, how much government employees are paid or tax information.

“After seeing how little public information is available on Dixon’s website, it’s no surprise that the alleged theft went under the radar for so long,” said Brian Costin, director of government reform at the Illinois Policy Institute.

“What Dixon and the entire state must do now is create a culture of transparency and accountability. This will help weed out corruption, and restore the public’s faith in local government.”

A press release from the U.S. Attorney’s Officde:

FEDERAL INDICTMENT CHARGES FORMER DIXON COMPTROLLER RITA CRUNDWELL WITH ENGAGING IN $53 MILLION FRAUD SINCE 1990

U.S. files lawsuit seeking civil forfeiture of 311 quarter horses in addition to seeking criminal forfeiture of seized assets

ROCKFORD — The former comptroller of the City of Dixon, Ill., Rita A. Crundwell, was indicted today for allegedly fraudulently obtaining more than $53 million from the town since 1990 and using the proceeds to finance her horse breeding business and lavish lifestyle.

Patrick Fitzgerald

A federal grand jury returned a single-count indictment charging Crundwell with one count of wire fraud, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation.

Since Crundwell was arrested on April 17 and accused of misappropriating more than $30 million since 2006, further investigation resulted in the indictment’s expanded allegation that the fraud exceeded $53 million and spanned more than two decades.

Crundwell, 59, of Dixon, who served as comptroller since 1983 and handled all of the city’s finances, was released on her own recognizance on April 18. She will be arraigned at 10:30 a.m. on May 7 before U.S. Magistrate Judge P. Michael Mahoney in U.S. District Court in Rockford.

The indictment seeks criminal forfeiture of $53 million as well as numerous assets that were seized from Crundwell when she was arrested.

On a parallel track, the United States today filed a civil lawsuit alleging that 311 quarter horses owned by Crundwell are subject to civil forfeiture because she purchased and/or maintained them with criminal fraud proceeds.

The government will seek eventually to sell the horses and apply the proceeds toward restitution to the City of Dixon.

“The government is pursuing both criminal and civil forfeiture proceedings to ensure that every available tool is being used to recover proceeds of the alleged fraud in order to recoup as much money as possible for the City of Dixon, its residents and taxpayers,” Mr. Fitzgerald said. The investigation is continuing, he added.

Dixon, with a population of approximately 15,733, is located about 100 miles southwest of Chicago.

Crundwell owns RC Quarter Horses, LLC, and keeps her horses at her ranch on Red Brick Road in Dixon and at the Meri-J Ranch in Beloit, Wis., as well as with various trainers across the country.

In addition to 311 registered quarter horses, dozens of foals are expected to be born this spring.

As part of the civil lawsuit, the government requested a pretrial restraining order that will secure the government’s interest in the horses and allow officials to take necessary steps to ensure the animals’ health and well-being, including veterinary and dietary care, which has been ongoing.

The U.S. Marshals Service is expected to hire a contractor to manage the horses.

The indictment seeks criminal forfeiture of

• two residences and
• the horse farm in Dixon,
• a home in Englewood, Fla.,
• a $2.1 million luxury motor home,
• more than a dozen trucks, trailers and other motorized farm vehicles,
• a 2005 Ford Thunderbird convertible,
• a 1967 Chevrolet Corvette roadster,
• a pontoon boat,
• approximately $224,898 in cash from two bank accounts, and
• other assets allegedly purchased with fraud proceeds.

Many of these assets were seized when Crundwell was arrested, and the government today requested a restraining order on the real estate that is allegedly subject to criminal forfeiture.

According to the indictment, on Dec. 18, 1990, Crundwell opened a bank account in the name of the City of Dixon and RSCDA, known as the RSCDA account.

Between December 1990 and April 2012, Crundwell used her position as comptroller to transfer funds from the Dixon’s Money Market account to its Capital Development Fund account, as well as to various other city bank accounts.

Crundwell allegedly repeatedly transferred city funds into the RSCDA account and used the money to pay for her own personal and private business expenses, including

• horse farming operations,
• personal credit card payments,
• real estate and
• vehicles.

As part of the fraud scheme, Crundwell allegedly created fictitious invoices purported to be from the State of Illinois to show the city’s auditors that the funds she was fraudulently depositing into the RSCDA account were being used for a legitimate purpose.

To conceal the scheme, Crundwell told the mayor and City Council members that the state was late in its payments to the city, when, in fact, she knew that she had fraudulently transferred the funds for her own use, the indictment alleges.

Wire fraud carries a maximum penalty of 20 years in prison, and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is represented in the criminal case by Assistant U.S. Attorney Joseph C. Pedersen, and in the civil case by Assistant U.S. Attorney Scott Paccagnini.

The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to an indictment by a federal grand jury and a fair trial at which the government has the burden of proving her guilt beyond a reasonable doubt.

The small town of Dixon figured out how to put an employee on unpaid administrative leave.

When one of his Sergeants was arrested and indicted on multiple felony counts, McHenry County Sheriff Keith Nygren could not figure out or refused to put him on administrative leave without pay.

Dixon Mayor James Burke, in office about as long as Nygren, on the other hand, apparently has found a way to do it for his Comptroller, Rita Crudwell.

She was charged yesterday with absconding with $30 million.

The city’s annual budget is $8-9 million per year.

Today’s Chicago Tribune reports on unpaid leave, as well as the replacement of the outside auditors who didn’t notice millions of dollars walking out the door or that financial duties were not segregated.

A press release from the U.S. Attorney’s Office:

DIXON COMPTROLLER ARRESTED ON FEDERAL CHARGE FOR ALLEGEDLY MISAPPROPRIATING MILLIONS OF DOLLARS IN CITY FUNDS FOR OWN USE

ROCKFORD — The Comptroller for the City of Dixon, Ill., was arrested today by FBI agents on a federal charge for allegedly defrauding the City of Dixon of more than $3.2 million in public funds since just last fall.

In addition, a federal criminal complaint alleges that the defendant, Rita A. Crundwell, 58, of Dixon, has misappropriated more than $30 million in city funds since 2006 to finance her own lavish lifestyle, including operating a horse farm.

Crundwell handles all finances for the city and has held the appointed position of Dixon comptroller since the early 1980s.

She is paid an annual salary of $80,000, according to the complaint charging her with one count of wire fraud that was filed last Friday and unsealed today following her arrest.

Location of Dixon, Illinois

Also today, agents executed search and seizure warrants at various locations including, Crundwell’s home, office, and farms in Dixon and Beloit, Wis., and seized the contents of two bank accounts she controlled.

Among other items seized were

• seven trucks and trailers,
• three pickup trucks,
• a $2.1 million motor home, and
• a Ford Thunderbird convertible,

all of which were allegedly purchased with illegal proceeds.

Crundwell is scheduled to appear at 3 p.m. today before U.S. Magistrate Judge P. Michael Mahoney in U.S. District Court in Rockford, where the issue of bond will be addressed.

Dixon has a population of approximately 15,733 and is located in Lee County, about 42 miles southwest of Rockford.

The arrest was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation.

Dixon Mayor James Burke reported Crundwell to law enforcement authorities last fall after a city employee assumed Crundwell’s duties during Crundwell’s extended unpaid vacation.

After reviewing bank statements for September 2011 through March 2012, the FBI expanded the investigation and began reviewing the city’s finances dating back to 2006. The investigation is continuing, officials said.

According to the complaint, Crundwell receives four weeks of paid vacation annually and she took an additional 12 weeks of unpaid vacation in 2011.

In October last year, while Crundwell was away from work, a Dixon employee who served as her replacement requested all of the city’s bank statements.

After reviewing them, the employee brought the records of a particular account to Mayor Burke’s attention.

The September 2011 statement for that account showed three deposits totaling $785,000, as well as 84 checks drawn totaling $360,493, and 40 withdrawals totaling $266,605.

Mayor Burke was unaware that this account existed, the complaint states, adding that he then went to law enforcement since none of the withdrawals appeared to be related to any legitimate business of the City of Dixon.

Although the bank records show that the primary account holder is the City of Dixon, a joint account holder is listed as RSCDA, and the checks written on this account list the account holder as “R.S.C.D.A., C/O Rita Crundwell.”

The City of Dixon maintains numerous bank accounts, including a Capital Development Fund.

Between September 2011 and February 2012, approximately $2,783,912 in various tax funds were electronically deposited into one of the City’s accounts.

Crundwell allegedly caused these funds to be moved around to other bank accounts held by the city, and eventually transferred most of these monies into the Capital Development Fund account.

Between September 2011 and March 2012, in her capacity as comptroller, Crundwell wrote 19 checks totaling $3,558,000 on the Capital Development Fund account payable to “Treasurer,” and deposited these checks into the account listing RSCDA as the joint account holder.

She then allegedly took $3,311,860 from the RSCDA account by checks and online withdrawals, using only $74,274 for the city’s operations.

Crundwell allegedly used the remainder of those funds, more than $3.2 million, for her own personal and business expenses, including approximately

• $450,000 relating to her horse farming operations,
• $600,000 in online credit card payments, and
• $67,000 to purchase a 2012 Chevy Silverado pickup truck

After discovering that Crundwell allegedly had recently transferred $3,558,000 in city funds to the RSCDA account, the FBI obtained additional bank records showing that between July 2006 and March 2012, Crundwell allegedly deposited a total of $30,236,503 in city funds into the RSCDA account, and paid out more than $30 million for her own personal and business expenses.

The complaint alleges that she used fraudulently obtained funds to make additional purchases, including

• a 2009 Liberty Coach Motor Home for $2,108,000,
• a 2009 Kenworth T800 Tractor Truck for $146,787,
• a 2009 Freightliner Truck for $140,000,
• a 2009 Chevrolet Silverado pickup truck for $56,646, and
• a 2009 Featherlite Horse Trailer for $258,698

Between January of 2007 and March of 2012, Crundwell incurred charges of more than $2.5 million on her personal American Express credit card account, including more than $339,000 on jewelry alone, and allegedly used Dixon funds to pay the entire amount of charges.

Wire fraud carries a maximum penalty of 20 years in prison, and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

The public is reminded that a criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to an indictment by a federal grand jury and a fair trial at which the government has the burden of proving her guilt beyond a reasonable doubt.

= = = = =

Does anyone but I wonder where the outside auditors were since 2006?

I think I have concluded that the Marengo Settlers Day Committee puts the politicians and candidates who march or ride in order of importance:

Federal

State

County

Since we did Federal on Sunday and state on Tuesday, we’re now down to county politics.

McHenry County Auditor Pam Palmer is on the left. She is up for re-election in 2012. McHenry County Clerk Kathie Schultz, on the right, is not.

Leading off that section of the parade were McHenry County Clerk Kathie Schultz and Auditor Pam Palmer.

This Model A Ford owner is a member of Henry's A's Region 47.

A neat, green Model A Ford followed them.

Could Jack Sparrow be running for county office? If so, which one?

Then, I noticed a Captain Jack Sparrow impersonator.

Somehow it seemed appropriate that Captain Jack Sparrow see these messages. about repentance.

He was walking straight–or as straight as Captain Jack can walk–toward a part of the crowd carrying religious proclamations.

Part of Marengo Girl Scout Troop 1332's contingent in the Settlers Days Parade. Click to enlarge.

Girl Scouts from Troop 1332 walked behind a flat bed trailer with a man standing on top with a camera.

No one had a problem knowing this was the Marengo Woman's Club's entry in the Settlers Days Parade.

Then, the Marengo Woman’s Club rounded the corner.

This Holar-Ships entry must be related to nutrition. Note the settler woman is wearing gloves, so this must be a special occasion.

I’m not sure what Holar-Ships was all about, but it had a woman and a girl in the back of a pickup truck dressed in pioneer garb.

I wonder if a trainee or an instructor was driving this semi.

A semi-tractor and trailer used by for CDL training by Spirit CDL was the next to turn the corner…very carefully.

Jack Sparrow hadn't made any progress along the parade route. In this shot, I notice he is carrying a big jar with sand.

And Jack was still lurking around the intersection.

Mary McCann was waving to the crowd from the back of a pickup truck.

I don’t know if Sparrow had anything to do with District 6 County Board member Mary McCann or not, but her pickup truck must have driven by him.

At this point in the parade, I'm still wondering how Marengo managed to attract so many high school bands like the Renegade Regiment from Sandwich High School.

Another crowd-pleasing high school band was next–the Sandwich High School Renegade Regiment.

The Sandwich marching band turning onto to Washington Street.

The band held its formation well.

This Shriner on his high wheeled bike is a consistent performer in area parades.

A Shriner high wheeler was the next thing that attracted my attention.

In days of old, I doubt leases would have been used, but the buckskin looks authenic.

Slipping back still farther in time was this buckskin-clan woman with her dog.

Post 192 didn't undergo the training a marching band does, but they were in good order.

Boy Scouts from Explorer Post 192 marched with their American and troop flags.

I didn't catch the Cub Scout Pack 163 leader doing a wheelie, but, when he did, the Cub had a lot of fun.

Next came some Cub Scouts on miniature race cars pushed by leaders.

There is a separate story on the Cub Scout entries here.

The banner of the Dwight Township Marching Trojans led the high school's band.

Behind the Cub Scout entries was yet another high school band, this one all the way down Route 47 to Dwight.

The town of Harvard contributed its Milk Day Queen and attendant royalty to the Marengo Settlers Day Parade.

The Harvard Milk Day Queen and her Court followed the band from Dwight.

This US. Army biplane had a unique view of the Settlers Days Parade.

Overhead planes were periodically flying.

There were more county officials and candidates, but this story is already too long.

The rest will have to wait for another day.

Larry Snow

“While Democrats say Teachers ‘Have Kept Their Part of the Deal?’“

is the title of an April 5, 2011, article by former Huntley School District 158 Board member Larry Snow.  (The quote was in the Chicago Tribune Marcy 31, 2011.  It is from Executive Director Dick Ingram of Teachers’ Retirement System.)

The article was published in “The Champion” with this teaser:

“82,981 of 132,502 Illinois Teachers Pay Nothing or Little into Their Pensions“

That’s 63% of all teachers in Illinois.

The State Journal-Register is reporting that State Rep. Kevin McCarthy (D-Orland Park) is promoting a bill where state and local governments would all pay six percent of payroll toward employee pensions.

In a revealing sentence in reporter Chris Wetterich’s article, he writes,

“What’s unclear is how much more employees themselves would have to pay.“

Because no one has done the research except, I believe, the Illinois Education Association and Snow, how much extra teachers would have to pay if their so-called contribution rate was raised from 9.4% to 13.77% is a really good question.

While not covering every school district in Illinois, Snow did research the teachers’ contracts for all of the large school districts (by law all are supposed to be on the internet) in order to find out how much teachers pay in order to get a “full 75 percent pension after working only 27 years.” He points out, “Most adults work for 27 years before they turn age 50.”

As way of background, Snow notes that teachers are not in the Social Security System and, therefore, are not forced to pay Social Security taxes.

“Ordinary workers get hit with a 6.2 percent deduction for Social Security,” Snow writes. “It’s a deduction they have to pay federal and state income taxes on.

“Democrats gave teachers a huge loophole of not paying income taxes on any of their pension deductions” he continues. “This enormous no-tax handout to teachers amounts to billions of dollars each year.”

Snow’s research leads him to this conclusion:

“Over 51,000 of the total 132,502 teachers in Illinois contribute nothing from their K-12 paychecks into their pensions. Illinois law says it is to be 9.4 percent.

“About an additional 32,000 teachers pay little into their pensions. It is 1.81 percent to be precise for these 31,956 teachers.“

How many teachers pay not a dime toward their retirement?

51,025 teachers in 186 school districts pay nothing for retirement benefits.

They “don’t pay a penny into the 9.4 percent called out by Illinois law.

“There are a total of 868 districts in Illinois.

“The pay-zero teachers listed are 39 percent of all teachers in Illinois,” Snow reveals.

No agency in state government seems to keep track of this information.

Not the Downstate Teachers Retirement Fund, which boldly and incorrectly claims,

“Active TRS members are required to contribute 9.4 percent of their creditable earnings each year…”

The State Board of Education doesn’t keep track either.

My guess is that only the Illinois Education Association has a matrix showing what school districts have given what benefits in contract negotiations.

Snow discovered this about Lockport:

“…on page 14 of the Lockport Township HS 205 teachers contract it reads:

1. The Board will pay the current level of retirement contribution to the Teachers Retirement System of Illinois.”
2. It is expressly understood that figures appearing on this salary schedule include a sum equal to the current level of TRS contribution of the base salary of each Teacher which is, in fact, payable to the Teachers’ Retirement System on the Teacher’s behalf.”

“The ISBE report shows this board paying nothing. A Democrat bureaucracy doesn’t check the teachers contracts to see if what is reported, matches what’s in writing.”

And, if legislation is passed requiring 4.37 percentage points more, how long do you think it will take Lockport taxpayers to pick up the difference?

Given that local teachers’ unions pretty much control school boards wherever they are elected (read everywhere but Chicago), my guess is will be on the top of the collective bargaining list.

Do you wonder if Rep. McCarthy knows that?

Is his proposal just a setting up local taxpayers for an even bigger fall?

Five years from now will 39% of teachers still be paying nothing for their pensions?

Even better for teachers is that this pension payment ups their pension payments.

Take a look at the chart below.  Chances are your school district is on it.

Chart of Pension Contributions by 82,981 District Teachers of 132,502 Total Illinois K-12 Teachers

Name of District	No. of Teachers	Percent of Pension Contributed by Teachers
Thornton Twp 205	428	Zero
Proviso 209	281	Zero
Waukegan 60	1,098	Zero
Morton 201	455	Zero
Kankakee 111	348	Zero
Joliet 204	340	Zero
Round Lake 116	387	Zero
Rockford	1,843	Zero
Decatur 61	454	Zero
Crete Monee	340	Zero
Danville 118	382	Zero
Valley View 365	1,068	Zero
Aurora West 129	706	Zero
East Peoria 309	69	Zero
Galesburg	281	Zero
Bremen 228	313	Zero
Freeport	317	Zero
Leyden 212	219	Zero
Elgin U-46	2,332	Zero
Rock Island	388	Zero
Mattoon	225	Zero
Collinsville	394	Zero
Massac 1	143	Zero
Sterling	219	Zero
Belvidere	531	Zero
Quincy	436	Zero
Dixon	179	Zero
West Chicago	248	Zero
Cook County 130	289	Zero
Cicero 99	738	Zero
Joliet 86	617	Zero
Harvey 152	163	Zero
Crystal Lake 155	412	Zero
Crystal Lake 47	564	Zero
Wheeling 21	489	Zero
Champaign 4	717	Zero
United CUSD 304	68	Zero
Riverdale 100	76	Zero
Reed Custer 255	114	Zero
Wilmington 209U	84	Zero
United Township 30	90	Zero
Summit Hill 161	213	Zero
Plainfield	1,695	Zero
Schiller Park 81	98	Zero
Dolton 149	176	Zero
Township 211 Palatine	799	Zero
Ball Chatham 5	248	Zero
Taylorville 3	152	Zero
Williamsville 15	81	Zero
Harrisburg 3	130	Zero
Belleville 201	281	Zero
Dupo 196	76	Zero
O’Fallon 203	145	Zero
O’Fallon 90	207	Zero
Rochester 3A	142	Zero
Pekin 108	248	Zero
Morton 709	175	Zero
New Lenox 122	287	Zero
Frankfort 157	158	Zero
Marion 2	219	Zero
Carterville 5	110	Zero
Kinnikinnick 131	122	Zero
Tolono 7	116	Zero
Mahomet-Seymour 3	161	Zero
Champaign 4	717	Zero
Urbana	346	Zero
Charleston 1	180	Zero
Park Ridge 64	319	Zero
Evanston 202	222	Zero
Maine HSD 207	508	Zero
Arlington Heights 214	753	Zero
Niles 219	350	Zero
Berkeley 87	165	Zero
Berwyn South	263	Zero
Lyons 204	239	Zero
Lemont 113	144	Zero
Palatine 15	713	Zero
Schaumburg 54	1,003	Zero
Oak Lawn 123	203	Zero
Oak Lawn 229	114	Zero
CHSD 230 Orland Park	519	Zero
Argo 217	111	Zero
Homewood 233	174	Zero
Genoa 424	137	Zero
Sycamore 427	231	Zero
Dekalb 428	362	Zero
Lombard 44	216	Zero
Downers Grove 58	277	Zero
Hinsdale 86	296	Zero
Elmhurst 205	538	Zero
Naperville 203	1,063	Zero
Effingham 40	176	Zero
Canton Union 66	175	Zero
Morris 54	61	Zero
Morris 101	50	Zero
Coal City 1	138	Zero
Jersey 100	164	Zero
Central CUSD 301	224	Zero
Kaneland 302	275	Zero
St. Charles 303	880	Zero
Cahokia	298	0.4
Chicago Public Schools	23,219	2
Peoria 150	988	0.4
Springfield	1,105	0.4
Moline 40	461	0.4
Harvard	149	0.87
Dolton 148	236	1.4
Belleville 118	228	0.4
Pekin 303	125	0.4
Hononegah 207	118	0.4
Arlington Heights 59	444	3
Leyden 212	219	0.4
Summit 104	103	0.4
Palos 118	130	0.4
CHSD 219 Orland Park	519	0.4
Bensenville 2	145	1.4
DuPage 88	266	0.4
CHSD 94	122	0.9
CUSD 300	1,189	4.4
Hawthorn 73	253	1.4
Lake Forest 115	132	0.4
Wauconda 118	273	0.4
Johnsburg 12	158	0.4
Cary 26	192	4.9
Woodstock 200	385	1.4
Keeneyville 20	107	0.4
Winnebago 323	117	0.4
LaSalle-Peru Twp. 120	88	0.7
Prairie-Hills 144	187	0.4
Geneva 304	367	Zero
Herscher 2	126	Zero
Manteno 5	160	Zero
Bourbonnais 53	160	Zero
Bradley 61	103	Zero
Bradley Bourbonnais 307	114	Zero
Momence 1	88	Zero
Yorkville 115	329	Zero
Plano 88	154	Zero
Oswego 308	827	Zero
Streator 44	132	Zero
Ottawa 141	140	Zero
Ottawa 140	102	Zero
Glenview 34	343	Zero
Zion 6	177	Zero
Grayslake 46	266	Zero
Elmwood Park 401	181	Zero
Libertyville 70	159	Zero
North Shore 112	374	Zero
HSD 113 Highland Park	249	Zero
Grant 124	91	Zero
Zion-Benton 126	156	Zero
Evanston 65	547	Zero
Grayslake 127	187	Zero
Meridian 15	64	Zero
Mt. Zion 3	133	Zero
Edwardsville 7	480	Zero
Alton 11	467	Zero
Macomb 185	130	Zero
McHenry 15	282	Zero
McHenry 156	158	Zero
Nippersink 2	92	Zero
Columbia 4	111	Zero
Waterloo 5	166	Zero
Hillsboro 3	114	Zero
Meridian 223	113	Zero
Illinois Valley Central 321	139	Zero
Carbondale 165	76	Zero
Carbondale 95	105	Zero
Riverton 14	85	Zero
Auburn 10	90	Zero
Pawnee 11	47	Zero
Panhandle 2	35	Zero
Sullivan 300	75	Zero
Centralia 135	93	Zero
Litchfield 12	83	Zero
Harlem 122	505	Zero
Granite City 9	617	Zero
Princeton 115	86	Zero
Princeton 500	43	Zero
Bond County 2	120	Zero
Duquoin CUSD 300	101	Zero
Rocton 140	102	Zero
Rochelle Twp. HSD 212	71	Zero
Rochelle CCSD 231	131	Zero
Byron 226	127	Zero
Oregon 220	104	Zero
Farmington Central 265	85	Zero
Porta 202	75	Zero
River Bend 2	71	Zero
Red Bud 132	73	Zero
Sparta 140	105	Zero
Southwestern 9	107	Zero
Staunton 6	87	Zero
Gillespie 7	81	Zero
Hamilton County 10	83	Zero
Midwest Central 191	85	Zero
Tuscola 301	86	Zero
West Carroll 314	99	Zero
Oakwood 76	64	Zero
Hoopeston 11	94	Zero
Westville 2	80	Zero
Beardstown 15	98	Zero
El Paso-Gridley 11	99	Zero
Murphysboro 186	137	Zero
Monticello 25	111	Zero
Paris-Union 95	74	Zero
Mt. Vernon Twp. 210	80	Zero
Mt. Vernon 80	109	Zero
Jasper County 1	101	Zero
Steger 194	128	Zero
Calumet City 155	77	Zero
North Boone 200	116	Zero
CCSD 93 Carol Stream	294	Zero
East Maine SD 63	254	Zero
Lockport Township HS 205	205	Zero
Above Teachers Total	82,981

Tuesday, I posted an article entitled,

Clue that State’s Financial Situation May Not Be as Bad as Some Would Lead You to Believe

While writing the article, which was based on a Chicago Sun-Times article about Geneva’s getting a gazebo and a mural to commemorate the first national cross-country road–the Lincoln Highway–I asked the Illinois Department of Transportation what the other 17 towns that would get similar amenities.

I have received the answer in an email from Marisa Kollias, which follows:

“The communities slated to receive an Interpretive Gazebo are:

• Aurora
• Batavia
• Creston
• DeKalb
• Dixon
• Frankfort
• Fulton
• Geneva
• Malta
• New Lenox
• North Aurora
• Oregon
• Park Forest
• Plainfield
• Rochelle
• Sterling

“The bulk of the funding is from the federal scenic byway program and the match is provided by the local community.”

More information came from IDOT Communications Manager Paris Ervin:

“The National Scenic Byway Program (NSBP) is a federal program that is administered by each state, along with their Division Federal Highway Administration office. For more information, check out the NSBP website at www.bywaysonline.org.

“In a nutshell, the local grass-roots organizations that apply for and successfully attain National Scenic Byway status are eligible to apply each year for federal funds from the National Scenic Byways Program.

“It is an 80/20 reimbursement program so the federal funding is awarded at 80% and the 20% is provided by local match. Grantees must spend the funds on the project and then apply for reimbursement once performance is proven.

“There are no state funds involved in these projects with the exception of possible Marketing Partnership or Tourism Attraction Development Program grant funds that are administered by the Department of Commerce and Economic Opportunity, Bureau of Tourism.

“Depending on the type of project, a grantee could be eligible to apply for these funds to use as matching dollars for the federal funds.

“The 2009 Scenic Byway projects have not been announced. The FY 2008 National Scenic Byway Program funds awarded to Illinois totaled $1,280,528. The local match amount is $320,132 for a total project amount of $1,600,660.”

So, it appears that my pressumption that state money was being spent on gazebos may be incorrect. At least it seems that the money isn’t road money from IDOT.

It’s the Federal government that has money to spend.