Following a string of run-ins between the Illinois Gaming Board and Gov. Rod Blagojevich's administration, the board's new chairman said Wednesday he has become dismayed by intrusions on the board's authority and he's going to push for legislation ensuring its independence.
On the job for a little more than a week, Chairman Aaron Jaffe said he has concluded there's a conflict of interest that needs to be addressed: The board is supposed to function autonomously, but the governor's Revenue Department controls its budget and hiring. Jaffe said the relationship, which could seriously undermine the board's credibility, must be severed.
"If ever there was an independent board that was necessary, it's necessary in the gaming industry," Jaffe said. "The people of this state want us to be independent."
Casino regulators argue that they must be allowed to do their jobs free from the influence of politicians, business leaders and others to maintain public confidence in the integrity of the lucrative gambling industry.
Jaffe--whom Blagojevich appointed to the chairman's post last week--was careful not to criticize the governor. But Blagojevich and his administration have been the targets of accusations that hey have meddled with the board.
Early in his administration, Blagojevich asked his friend and chief political fundraiser, Christopher Kelly to help negotiate a deal between the board and Emerald Casino to free up the unused 10th casino license.
Last year, the Revenue Department fought with the board to obtain confidential financial information that casinos submit to the board. The administration said it wanted the financial data for an audit, but the board's staff refused, saying the information was never disclosed to previous administrations. Eventually Illinois Atty. Gen. Lisa Madigan's office determined that the information should not be divulged.
Until last week, Blagojevich left the five-member board one short of a quorum for six months, after several resignations.
During that time, the Revenue Department foisted a number of contracts, at least one employee under contract and a full-time lobbyist from a politically connected family onto the board without its consent. All of this must be paid for out of the board's budget.
On Wednesday, Jaffe said the situation with the lobbyist, Linda Freveletti, was a perfect example of why the Gaming Board should be free from intrusion. The Revenue Department hired her without the board's consent for a job he doesn't think she's qualified to do.
Although Jaffe, a former Cook County judge and state legislator, didn't mention Freveletti by name, he said he wants to hire a liaison who will work in Springfield, not in Chicago as Freveletti does, and knows how to draw up and read legislation.
"I don't believe that that person has the legal ability to do that," he said when asked about Freveletti, the sister-in-law of former state Democratic Party Chairman Gary LaPaille and a former manager at the government agency that runs Navy Pier and McCormick Place. "At this point, my feeling is that she's an employee of the Department of Revenue."
Jaffe said he plans to work with legislative leaders to draft a bill during the current General Assembly session separating the Gaming Board from both the Revenue Department and the state police. Nearly 50 of the board's approximately 120 employees are state police officers or support staff. The rest are officially employees of the Revenue Department. Jaffe believes they should all report directly to the board.
Though Blagojevich's administration has been the subject of the criticism, the governor embraced Jaffe's proposal.
"If Judge Jaffe and the new members of the Gaming Board want to disassociate themselves from the Department of Revenue, all power to them. I appointed them to make independent decisions without any meddling whatsoever, and I'm happy to see what they decide to do," Blagojevich said. "If they think that's right, I've got confidence in this new Gaming Board. ... I would support their efforts."
State Rep. Lou Lang (D-Skokie), who oversaw a House gambling committee meeting in February in which Blagojevich's administration was blasted for interfering with the Gaming Board's duties, said he was happy to hear the governor was endorsing the ideas.
"I think the governor sees this as a train that might be moving, and he decided to jump on. If the governor is all about ethics and accountable government, then this was a train he needed to get on," Lang said, adding that he too has been working on legislation to separate the board from the state's executive branch. "We need to take the Gaming Board out from under the wing of the administration. This ought to be an agency that works separate and distinct from the governor."
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On the job for a little more than a week, Chairman Aaron Jaffe said he has concluded there's a conflict of interest that needs to be addressed: The board is supposed to function autonomously, but the governor's Revenue Department controls its budget and hiring. Jaffe said the relationship, which could seriously undermine the board's credibility, must be severed.
"If ever there was an independent board that was necessary, it's necessary in the gaming industry," Jaffe said. "The people of this state want us to be independent."
Casino regulators argue that they must be allowed to do their jobs free from the influence of politicians, business leaders and others to maintain public confidence in the integrity of the lucrative gambling industry.
Jaffe--whom Blagojevich appointed to the chairman's post last week--was careful not to criticize the governor. But Blagojevich and his administration have been the targets of accusations that hey have meddled with the board.
Early in his administration, Blagojevich asked his friend and chief political fundraiser, Christopher Kelly to help negotiate a deal between the board and Emerald Casino to free up the unused 10th casino license.
Last year, the Revenue Department fought with the board to obtain confidential financial information that casinos submit to the board. The administration said it wanted the financial data for an audit, but the board's staff refused, saying the information was never disclosed to previous administrations. Eventually Illinois Atty. Gen. Lisa Madigan's office determined that the information should not be divulged.
Until last week, Blagojevich left the five-member board one short of a quorum for six months, after several resignations.
During that time, the Revenue Department foisted a number of contracts, at least one employee under contract and a full-time lobbyist from a politically connected family onto the board without its consent. All of this must be paid for out of the board's budget.
On Wednesday, Jaffe said the situation with the lobbyist, Linda Freveletti, was a perfect example of why the Gaming Board should be free from intrusion. The Revenue Department hired her without the board's consent for a job he doesn't think she's qualified to do.
Although Jaffe, a former Cook County judge and state legislator, didn't mention Freveletti by name, he said he wants to hire a liaison who will work in Springfield, not in Chicago as Freveletti does, and knows how to draw up and read legislation.
"I don't believe that that person has the legal ability to do that," he said when asked about Freveletti, the sister-in-law of former state Democratic Party Chairman Gary LaPaille and a former manager at the government agency that runs Navy Pier and McCormick Place. "At this point, my feeling is that she's an employee of the Department of Revenue."
Jaffe said he plans to work with legislative leaders to draft a bill during the current General Assembly session separating the Gaming Board from both the Revenue Department and the state police. Nearly 50 of the board's approximately 120 employees are state police officers or support staff. The rest are officially employees of the Revenue Department. Jaffe believes they should all report directly to the board.
Though Blagojevich's administration has been the subject of the criticism, the governor embraced Jaffe's proposal.
"If Judge Jaffe and the new members of the Gaming Board want to disassociate themselves from the Department of Revenue, all power to them. I appointed them to make independent decisions without any meddling whatsoever, and I'm happy to see what they decide to do," Blagojevich said. "If they think that's right, I've got confidence in this new Gaming Board. ... I would support their efforts."
State Rep. Lou Lang (D-Skokie), who oversaw a House gambling committee meeting in February in which Blagojevich's administration was blasted for interfering with the Gaming Board's duties, said he was happy to hear the governor was endorsing the ideas.
"I think the governor sees this as a train that might be moving, and he decided to jump on. If the governor is all about ethics and accountable government, then this was a train he needed to get on," Lang said, adding that he too has been working on legislation to separate the board from the state's executive branch. "We need to take the Gaming Board out from under the wing of the administration. This ought to be an agency that works separate and distinct from the governor."
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