Alexi Giannoulias, State Treasurer in the
crossfire
by Norm Winick
At age 32, Alexi
Giannoulias is the youngest statewide elected official in the nation. And heÕs
also surrounded by and expected to work with political leaders of the state who
arenÕt talking to him — or each other. Add to that confusion his long-time
association with his close friend and mentor, Barack Obama, and youÕve got a
Treasurer whoÕs been keeping extremely busy.
He was in Galesburg
Tuesday on a trip through western and central Illinois to promote two
initiatives of his office, a plan to cut interest rates for
environmentally-friendly businesses and another to help homeowners facing
foreclosure an opportunity to refinance their mortgages.
Giannoulias won the
2006 Democratic primary for State Treasurer by defeating Knox County StateÕs Attorney
Paul Mangieri who had the endorsement of the democratic Party and most of the
major political figures in the state — save one, Senator Barack Obama.
Obama endorsed an unknown Chicago banker, Alexi Giannoulias, and he went on to
victory. I sat down with him at McGillicuddyÕs on S. Cherry St. Giannoulias
sees Barack often and joins him on the basketball court frequently — including
just this last weekend. ÒHe my mentor and a close friend. He opened up a lot of
doors for me.Ó
With his good
friend a little busy on the national scene, Giannoulias is on the front lines
of the budget battles in Springfield. While he tried to make nice with Governor
Rod Blagojevich early in his term, Giannoulias and the Governor havenÕt been
communicating much lately. ÒI wouldnÕt say IÕve ÔsplitÕ with the governor but I
would say weÕve been disagreeing on a lot of issues. I think heÕs had several
bad ideas and not shown the leadership he should. I still respect my role as
Treasurer and his role as Governor.Ó You would think that the Governor and his
financial advisors would be in constant discussions with the State TreasurerÕs
office about financial matters and budget issues. ThatÕs not the case. ÒHe
never called my office for advise or consultation at any time.Ó The GovernorÕs
used his veto pen to slash all the statewide officialsÕ budgets and the TreasurerÕs
office is not exempt. Giannoulias says that he doesnÕt know how that will play out.
ÒWeÕre still trying to figure out what weÕre going to cut. What bothers me is
the appearance that so many of the cuts were made out of vengeance or vendetta.Ó
Giannoulias says heÕs
proud of what he has accomplished in his short time in office. ÒWeÕve made some
major changes in my office and weÕre proud of that. One of the most publicized
action was finally unloading two hotels the state financed in a sweetheart deal
over 20 years ago. ÒThose hotels were the worst deals IÕve ever seen. It wasnÕt
easy to get that resolved. None of the Treasurers before me had been able to.
They were a fiasco that was compounded by bad loans, political insider deals,
and ethical problems at many levels.Ó
ÒI am also proud of
what weÕve done with the Bright Start College Savings Program. I brought in a
new fund manager, tripled portfolio options and cut fees by one-half. ItÕs the
most inexpensive plan in the country. We were ranked 49th out of the 50 states
when I came into the office, now our plan is one of the top five in the nation
with $2.7 billion invested and helping 162,000 families. Ò Giannoulias realizes
that the state, like many others, is facing difficult times. ÒThe economy is
creating havoc throughout the state of Illinois. Costs, especially fuel and
food, are skyrocketing; unemployment and foreclosures are on the rise; wages
are stagnant.Ó
ÒMy office tries to
help people in ways that we can without putting any of the state funds at risk.
We are offering incentives to business owners to retrofit their facilities to
make them more energy efficient. We are offering guarantees on 10 percent down
payments for first-time homebuyers or homeowners trying to refinance to avoid
foreclosure.: Giannoulias says Illinois had not invested in asset-backed
securities and the stateÕs investment portfolio was one of only a few in the
nation not impacted by the sub-prime mortgage crisis. ÒNot only is our portfolio
secure, we have outperformed our investment benchmark every single month IÕve
been in office.Ó
He says that his
experience in the private sector (as a banker) was invaluable to his service as
State Treasurer. ÒI think that perspective is amazingly helpful and not shared
by a lot of state officials. I know what a budget is and how to streamline
operations and make them more efficient. IÕm willing to look at new ideas. Just
recently, we discussed offering the stateÕs unclaimed property for sale on
eBay.
As a statewide
elected official, Giannoulias is in the middle of the political maneuvering that
permeates Springfield and Chicago. HeÕs still unsure whether recall would be a
good idea. ÒPeople should pay attention to who they are voting for. IÕm also
afraid that recall could keep officials from taking chances or making correct
but unpopular decisions. ThereÕs a real lack of courage being displayed now and
having recall might make it even worse.Ó
He does think that
a constitutional convention where recall and other major changes are discussed
would probably be good for the state. A referendum on having such a convention
is on the November statewide ballot and the battle lines are just being drawn.
When I asked what
people didnÕt know about him, Giannoulias said that most folks didnÕt realize
he was a professional basketball player in Europe after graduating from Boston
College.
State Treasurer is
probably not GiannouliasÕ top rung on his political ladder. He says that he has
not thought about filling the Senate seat that may open up if his good friend becomes
President. But he has thought about seeking the GovernorÕs office. ÒA lot of people
have approached me — people who see how Barack has changed the landscape of
Illinois politics and the benefits of new leadership in the state with new
energy and new ideas. ThereÕs a new wave of capable, intelligent people in
state government and I think I could be successful leading them.Ó
If he decides to
seek the stateÕs top post, heÕll be vying with other well-known individuals with
similar aspirations. Giannoulias has some friends in some pretty high places.
7/17/08