CHICAGO — Illinois Finance Authority executive director John Filan will resign from his post by July 1, the House speaker said yesterday ahead of a vote on legislation that would purge hundreds of state employees and board members appointed by the last two governors. Filan was the state’s top fiscal officer under former Gov. Rod Blagojevich.
House Speaker Michael Madigan, D-Chicago, proposed the legislation aimed at pushing Gov. Pat Quinn to move more quickly to “fumigate” state government ranks of appointees made by Blagojevich and former Gov. George Ryan.
Blagojevich was removed from office by lawmakers following his December arrest by federal authorities on corruption charges alleging he used his power to influence jobs, contracts, and legislation for personal gain. Ryan is in federal prison on corruption and racketeering charges.
While still lieutenant governor, Quinn said early this year he would clean up government, but with the state facing a $12 billion budget deficit he has focused his attention on fiscal matters and pushing for a capital budget and ethics reforms.
“I didn’t think he was moving at a good pace … That’s why I introduced the bill — to accelerate the pace,” Madigan said in support of his legislation. His original plan would have canned about 3,000 employees and appointees and allowed the governor to reappoint ones he wanted to keep.
Under a revised plan unanimously approved by the House, the purge would apply only to those positions — about 700 — that are not protected under the state’s personnel code or anti-patronage court decisions. After a 90-day review period, individuals not reappointed by Quinn would be dismissed.
A prime target of the legislation was Filan. As the chief architect of Blagojevich’s budgets, Filan is blamed in part by some lawmakers for the state’s current structural budget problems and a massive $73 billion unfunded pension liability. Filan showed little deference to lawmakers during his tenure as head of the Office of Management and Budget and then as a chief operating officer, so he has few allies in either chamber.
Filan’s supporters have countered that the budgets he crafted were dictated by Blagojevich’s agenda. Blagojevich sought to shore up deficits without tax increases or cuts in health care and education spending, leaving Filan in many cases to turn to one-time revenue fixes. He also proposed an unpopular business tax that was widely assailed by lawmakers.
Without naming Filan, the legislation had stated that the person holding the IFA executive director’s position on May 1 would be terminated 30 days after the effective date of the legislation. Ahead of the vote yesterday, Madigan stripped the bill of that language. When asked for a reason, Madigan said the governor asked him to remove the language but that the request came with the assurance that Filan would resign by July 1. “He gave me his personal assurance,” Madigan said.
Filan yesterday did not return a call seeking comment.
Quinn had been reluctant to seek Filan’s resignation previously because of their long-standing friendship that goes back decades to their work on former Democratic Gov. Dan Walker’s campaign. An administration source said Quinn “is planning to make changes at the IFA” and the Illinois State Toll Highway Authority.
Blagojevich appointed Filan to the IFA position last November at his request. Filan, who was then chief operating officer, had fallen out of Blagojevich’s favor after disputes with the governor’s chief of staff, John Harris. The federal government arrested both Blagojevich and Harris in early December, so Filan’s distance served him well. No allegations of wrongdoing have ever surfaced over Filan’s stewardship.
However, Filan has asserted he made the final selection of the book-runner on the state’s 2003 $10 billion pension deal and the indictment against Blagojevich alleges that Bear, Stearns & Co. was selected as part of a pay-to-play scheme. Sources have said it was former chief of staff Alonzo Monk, who was indicted with Blagojevich in April, that pushed for Bear Stearns’ selection, not Filan.
The legislation —which still must be approved by the Senate — also could spell impending changes at other boards under the governor’s purview, including the Metropolitan Pier and Exposition Authority, the Illinois Housing Development Agency, the Regional Transportation Authority, the Illinois Sports Facilities Authority, and the state university system.
