Questionable Investments Cost College Illinois! Program $12 Million

A good government measure co-sponsored by state Sen. Sandack (R-Downers Grove), unanimously passed the Senate April 8. The legislation gives local county boards oversight of their operations and will serve to prevent non-compliance and other mismanagement situations. 

Sen. Sandack also passed his first solo piece of legislation, which creates the offense of unlawful use of recorded sounds or images. The bill was passed after  Sandack endured the good-natured teasing from Senate colleagues that always meet senators passing their first bill.

College Illinois! Program Loses $12 Million

Also last week, a state audit revealed the “low-risk” College Illinois! program lost more than $12 million as a result of questionable investments in 2010. The Auditor General’s report noted that the prepaid tuition program overseen by the Illinois Student Assistance Commission (ISAC) awarded a contract for investment due diligence services “without following established procurement law, administrative rules or sound business practices.”

The audit found that a company hired by ISAC advised the commission to proceed with a $12.78 million investment in ShoreBank Corp., even though the potential enterprise was flagged as risky. The bank was later closed by federal regulators and the investment lost. The audit questioned ISAC’s business decisions relating to the investment, including the commission’s failure to properly bid the related contract and questionable fees included in the contract which the audit suggests may have created a financial incentive for the vendor to pursue the riskier investment.

Auditor General William Holland reportedly questioned ISAC’s investment decisions, noting that a running deficit within the College Illinois! program should provide additional incentive to exercise vigilance and prudence in the Commission’s investments. College Illinois! had a $338 million deficit on June 30, which is a little less than the $342 million deficit the program had in 2009. 

Senate Redistricting Committee hears testimony

On April 6, community organizations and citizens traveled to the Illinois Statehouse to testify before the Senate Redistricting Committee, including several downstate residents who said having too many representatives in one area causes confusion among voters. 

A number of organizations also journeyed from Chicago to attend the hearing. Witnesses once again testified strongly in favor of keeping together communities with strong racial or ethnic ties. The witnesses stressed their belief that dividing these communities dilutes their collective voting voice. Representatives from the Asian American Institute said that in addition to drawing district boundaries that preserve racial and ethnic communities, lawmakers should also make an effort to draw districts that keep vital educational and social services within the communities they serve.

Several other witnesses advocated for prisoners to be counted in their community of origin, as opposed to the current system where inmates are counted in the community in which they are incarcerated.  

Whitney Woodward from the Illinois Campaign for Political Reform (ICPR) also testified before the committee, stressing the need for a public vetting and editing of a draft redistricting map. She noted that while the redistricting committee has made significant strides towards opening the redistricting process to the public, transparency efforts made by the committee will be viewed as "hollow gestures” if draft maps are not made public.  

Before adjourning, Redistricting Chairman Kwame Raoul (D-Chicago) noted that map-drawing public work stations will soon be made available in both Springfield and Chicago.  

Staff, computers and software will be available for community activists, organizations and people interested in drawing legislative district boundaries. The census data that is used to draw the maps will also be available, and members of the public will be able to save their maps and take them home with them.  

Other Bills

Finally, the Senate approved a number of bills including Senate Bill 1836, which requires a state agency to submit a voucher to the state comptroller for payment of a vendor’s bill within 10 business days of receiving the bill, or return the bill to the vendor if it is determined to be incorrect. The legislation also mandates the comptroller post a copy of the voucher on his or her official website within five days of receipt. The goal is to bring transparency and accountability to the process by which the comptroller pays state vendors, many of which wait months for payment.

From a press release submitted by the Illinois Senate Republican Staff.