Court rejects lawsuit over state use of government bonds
By SARAH MANSUR
Capitol News Illinois
smansur@capitolnewsillinois.com
SPRINGFIELD — The Illinois Supreme Court threw out a lawsuit Thursday that was brought by the head of a libertarian think-tank that challenged the state’s use of bonds to pay back state debt.
The decision marks the end of the legal battle initiated by Illinois Policy Institute Chairman and CEO John Tillman against the state’s use of more than $14 million in bonds to repay pension obligations and other state debt.
Tillman claimed the state laws in 2003 and 2017 authorizing the bonds were unconstitutional because the bonds were not issued for “specific purposes,” within the meaning of the state constitution.
The Illinois Constitution’s revenue article contains a section that provides the state can incur debt for “specific purposes.” Tillman argued that, within the meaning of this constitutional provision, “specific purposes” refers exclusively to projects dealing with capital improvements, such as roads, buildings, and bridges.
He asked the court to declare the bonds invalid and block the state from making any future payments on them.
The court ruled unanimously that Tillman could not bring this case because of his delay in filing his 2019 lawsuit, years after the 2003 and 2017 laws issuing the bonds were passed.
The ruling relies on the doctrine of laches.
Laches refers to the defense used against a party “who has knowingly slept upon his rights and acquiesced for a great length of time,” the opinion states. The second element of laches is whether the party being sued would suffer “prejudice” as a result of the delay in filing the action.
The court found both elements were met to satisfy the laches doctrine in this case.
“(Tillman) offers no excuse for why he waited 2 years (in the case of the 2017 bonds) and 16 years (in the case of the 2003 bonds) to file his action challenging the constitutionality of the bonds,” the court wrote in its opinion.
The justices also decided that it is “patently obvious that the State will suffer some prejudice if relief is granted at this extremely late stage.”
“Enjoining the State from meeting its obligation to make payments on general obligation bonds will, at the very least, have a detrimental effect on the State’s credit rating,” the opinion states.
In a written statement, Tillman said he is disappointed in the Illinois Supreme Court’s ruling and is evaluating his options as to how to proceed from here.
“In the interim, I continue to be profoundly concerned about Illinois’ reckless debt accumulation,” he said in the statement. “All Illinoisans should care about this. If the state doesn’t tackle pension reform now, it will slide into a fiscal crisis beyond repair that will threaten not only taxpayers and the people who depend on government services, but also people who are counting on their public-sector pension in retirement.”
In her own statement, Illinois Comptroller Susana Mendoza said the court’s decision was correct because the bonds were constitutional.
“While the fiscally responsible 2017 bond offering that I championed saved taxpayers $4 to $6 billion in late payment interest penalties and served as a lifeline to businesses across Illinois, it hurt the profit margins of those who chose to bet against Illinois. They gambled and lost. Their irresponsible game is over,” Mendoza said in the statement.
A spokesperson for Pritzker said in a statement that the governor’s administration is pleased with court’s decision that ends Tillman’s “frivolous” lawsuit.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Capacity crowd speaks out against Evergreen Park dispensary
Spread the loveBy Joe Boyle Additional chairs had to be brought out to seat an overflow crowd of Evergreen Park residents who attended a meeting April 15 regarding a proposed cannabis dispensary for the village. And many who were in attendance voiced their opposition to having a dispensary in Evergreen Park. Most of the people cited…
Countryside puts dog park on hold, will require leashes in two parks
Spread the loveBy Steve Metsch The city of Countryside has put on hold building a dog park, but canines and their owners are still in store for a treat. The city council has unanimously approved a plan to permit dogs in City Park and Countryside Park this year. Previously, they were not allowed in the…
Bridgeview approves auto repair shop
Spread the loveMoves up time for May 1 village board meeting By Steve Metsch Bridgeview is getting a new automotive repair shop. The village board at its April 17 matinee meeting approved a special use permit that will allow a repair shop at 9010 S. Beloit Ave. There was no discussion among trustees. The board…
Summit Fire Department blood drive draws a crowd
Spread the loveBy Carol McGowan The Summit Fire Department, along with the Village of Summit, and the Argo Summit Lions Club held a blood drive this past Saturday, and it drew a crowd that even impressed the American Red Cross. It took place from 9 a.m. until 2 p.m. with non-stop donors walking through the…
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…
Neighbors
It’s (pizza) party time at OLS
Spread the love. Third graders at Our Lady of the Snows School break into cheers as they learn they’ve won a pizza party for selling more raffle booklets than any other class. The recent Grand Raffle fundraiser brought in about $6,000. Parents looking for a grade school for their sons and daughters for 2024-25 are…
Dart wants free mental health care for first responders
Spread the love. From staff reports The Illinois Senate has passed legislation proposed by Cook County Sheriff Thomas J. Dart that eliminates out-of-pocket expenses for first responders seeking mental health treatment. “We ask first responders to be constantly exposed to traumatic and dangerous situations to protect us,” Dart said. “This legislation is a solid step…
Volunteers give Palos Heights a spring cleaning
Spread the loveBy Kelly White Palos Heights works hard to keep its city beautiful. Gathering residents together for a day of cleaning and fun was the Palos Heights Green Team with a Clean Up Day on April 13. “This event invited everyone in our community to do their part in combating pollution by having a…
Hunt man who tried to rob Chase Bank
Spread the love. FBI looking for tips from public . From staff reports FBI officials are appealing to the public for help in finding a man who attempted to rob a Southwest Side bank branch. The bandit tried to rob the Chase Bank branch at 5687 S. Archer (just west of Laramie) at about 11…
Casten lauds Biden for ‘clean energy’ move
Spread the love. From staff reports A move designed to spur the responsible development of clean energy on America’s public lands was recently lauded by U.S. Rep. Sean Casten (D-6th). The congressman, co-chairman of the House Sustainable Energy and Environment Coalition (SEEC) Clean Energy Deployment Task Force, joined by co-chairman Mike Levin (D-Calif.), released a…
E-Notary makes things easier, Giannoulias says
Spread the love. From staff reports Illinois residents will no longer have to notarize documents in person under a new Electronic-Notary system administered by Secretary of State Alexi Giannoulias’ office. Electronic Notarization, or “E-Notary,” will radically change the way people and use notary services, Giannoulias predicted. Without leaving the home or office, an individual or…
Oak Lawn honor Fire and Public Safety Contest winners
Spread the loveBy Joe Boyle The Oak Lawn Chamber of Commerce presented awards to the winners of the 2023 Fire and Public Safety Coloring Book Contest at the Oak Lawn Village Board meeting on April 9. Fire Bureau Chief David Wheeler and Police Chief Daniel Vittoro were on hand to present the plaques, along with Oak…
Rashid scolds TV news orgs on climate change
Spread the love. From staff reports State Rep. Abdelnasser Rashid (D-21st) recently scolded major news organizations for what he called a lack of attention to climate change. “Last year was marked by alarming climate extremes, from record-breaking heat waves to devastating floods, droughts and wildfires,” Rashid wrote earlier this month in a letter to his…
Comings & Goings: Ross to replace Walt’s at Tinley Park Plaza
Spread the loveBy Bob Bong When Walt’s Foods closed its Tinley Park location almost three years ago, it left a giant hole in the Tinley Park Plaza near 159th Street and Harlem Avenue. That hole will soon be filled with a new 22,000-square-foot Ross Dress for Less store and a 9,800-square-foot Five Below store. A…
SD122 celebrates end of Ramadan at Simmons Middle School
Spread the loveBy Nuha Abdessalam As Ramadan was drawing to a close for Muslims worldwide, District 122’s Superintendent Joseph Matise, Oak Lawn Community High School’s Muslim Students Association club, and the district’s Parents Committee came together to create history. They hosted the first-ever Iftar dinner at Simmons Middle School on April 8, a significant event…