SPRINGFIELD, Ill. — Underscoring hard feelings left over from Gov. Rod Blagojevich's attempt two years ago to seize examiner funds, the Illinois Credit Union League said last week its political action committee is throwing its support to Blagojevich's Republican opponent this November.
Blagojevich, a Democrat, is seeking a second term and is opposed by State Treasurer Judy Baar Topinka, who has long supported the league position on the so-called fund "raid" as well as retention of the tax-exemption.
League officials point out it is the first time in memory the trade group has opposed an incumbent governor in a bid for re-election.
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The campaign to support Topinka, the three-term state treasurer and lone GOP statewide officeholder, began in earnest in June when the league's Credit Union Political Action Council formally voted to back Topinka, contributing $25,000 to her campaign coffers.
Since then CUPAC is "encouraging all credit unions to become actively involved in her campaign" through member solicitation.
In a formal "statement of support" signed by Topinka and CUPAC, the Riverside Republican pledged to "protect the dedicated credit union fund from future raids" as well as "roll back excess credit union regulatory fees."
Both of those issues figured in a suit brought December 2004 in a Springfield state court by the league and banker groups against Blagojevich over diverting examiner funds to shore up deficits in the state budget.
A Sangamon County court judge in March 2005 granted a temporary injunction against the governor and his administration from diverting the funds as well as reducing part of the increase in regulatory fees. Litigation over that case is still pending.
During that squabble, Topinka had sided with the league, complaining the governor was threatening safety and soundness of financial institutions by his action and for a time blocked the governor's orders to divert the funds.
In the statement of support signed last March, Topinka wrote that she is a "friend of credit unions" and that subjecting CUs to an income tax "is a bad idea."
She also pledged to "develop a business climate that will encourage Illinois credit unions to remain state chartered institutions." She also promises to "provide for adequate staffing/regulation of the industry."
Regarding the Sangamon Court suit, the league noted last week that joined by plaintiff trade groups it is moving ahead with its "regulatory fee litigation regarding the unlawful diversion of funds from the dedicated financial institution funds to a General Revenue Fund.
"Due to the injunction issued in Sangamon County Circuit Court, the state has been unable to initiate further diversions from the funds in question while our lawsuit is pending," said the league adding, "the current status of the suit is now in the 'discovery phase.'"
The league said it anticipates the case "will continue to move forward throughout 2006."
Tory Eckstein, chair of CUPAC and president/CEO of Members Choice CU in Peoria, said Illinois CUs "support Judy because of her track record supporting credit unions in the legislature and as treasurer." Topinka, she said, has long been "helpful to credit unions" across the state.
In its e-mails, the league concluded, "as we begin the home stretch of the campaign season, it is very important that credit unions communicate their support of Topinka's candidacy to their membership."
Calls to Gov. Blagojevich's campaign office in Chicago were not returned as of press time.
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