Ryan has parting gifts for his pals

From the Chicago Tribune:

Ryan has parting gifts for his pals
Governor giving jobs to buddies

By Ray Long and Christi Parsons, Tribune staff reporters. Tribune political reporter Rick Pearson and staff reporter Mickey Ciokajlo contributed
Published November 17, 2002

SPRINGFIELD -- With his time in office waning, Gov. George Ryan is using the last vestiges of power to dispense taxpayer-funded farewell gifts to those who have stuck with him during his scandal-clouded administration.

On Friday alone, the Republican governor named the wife of a political crony to a seat on the Chicago Transit Authority's board; placed his longtime budget director on a state liquor rules-making panel; and put a former Democratic legislative colleague who lost a re-election bid to the Cook County Board on a state labor panel. The positions come with generous stipends and other perks.

Ryan also moved closer Friday toward completing a nearly $21-million purchase of the aging Lincoln Towers office and apartment complex across from the state Capitol, a deal that longtime Ryan pal and former state Sen. Arthur "Ron" Swanson for years has been retained to try and broker.

As they head out of office, Illinois governors have long attempted to pack vacancies on government boards, agencies and commissions with those who have been most trustworthy in furthering their careers.

But Ryan's moves have taken on an added dimension. For the first time in a quarter century, a Republican governor is giving way to a Democratic chief executive and Ryan is filling slots at a time when a generation of hungry Democratic job seekers is forwarding resumes to Gov.-elect Rod Blagojevich.

Moreover, Ryan's reshuffling of his lame-duck administration means pay raises for some as they move up to new positions, others being shifted into jobs that the new Blagojevich administration can't touch and, in some cases, a padding of retirement pensions through some of the lucrative quirks in Illinois pension laws.

And it all comes when the state faces some of the darkest economic times in its history.

With lawmakers set to return to the Statehouse on Tuesday, Ryan's legislative to-do list includes dealing with the budget, pushing for death-penalty reforms and, potentially, a revenue-enhancing expansion of gambling.

But for the final two months of his term, a major portion of his agenda also appears to be taking care of his friends.

Ironically, it was only four years ago when Ryan, as the state's governor-elect, railed at attempts by then outgoing Gov. Jim Edgar to appoint dozens of people to state positions without his consent. Edgar's efforts to win confirmations for more than 100 appointments were blocked by Senate President James "Pate" Philip (R-Wood Dale), who thought Ryan should have his say.

Edgar still managed to fill some posts without Senate confirmation, prompting Ryan to express disappointment with the actions of his Republican predecessor. "It was just one of those tactics I thought was wrong." Ryan said at the time.

This time around, though, with an impending switch to Democratic control of the governor's office and the state Senate, those Ryan appointments that need legislative approval are likely to win handily.

"Edgar did it to George, and now George is doing it to the next guy. I think at some point, we have to study it," said Sen. Vince Demuzio (D-Carlinville). "We are tying the hands of the future governor with too many appointees by a lame duck. I believe it is a detriment to the new governor. We ought to examine this whole process."

Moreover, Ryan's moves are beginning to develop some enmity from the incoming governor-elect. "He's concerned about last-minute appointments and wishes the governor would hold off," said Blagojevich spokesman Doug Scofield.

Ryan's most recent appointments include naming Cindy Panayotovich, 52, of Lansing, to the CTA board. Panayotovich, who most recently worked in the Department of Commerce and Community Affairs, is the wife of the governor's longtime friend and political ally, Sam Panayotovich.

Shortly after becoming governor, Ryan named Sam Panayotovich executive director of the Liquor Control Commission. But Panayotovich resigned a year later amid allegations he solicited political donations from liquor distributors and bars.

Cindy Panayotovich's appointment becomes effective Dec. 2 and runs for seven years. The post pays $25,000 annually, but its most lavish perquisite is the opportunity to qualify for lifetime health benefits.

Her appointment was made possible in part because of a federal corruption probe that hounded Ryan from seeking re-election. She will replace board member Alan Drazek, who is charged with allegedly using his direct-mail company to disguise kickbacks paid to a longtime Republican insider.

Ryan on Friday also named his trusted budget adviser, Steve Schnorf, to a five-year term on the state Liquor Control Commission.

Only weeks ago, Ryan shifted Schnorf from his post as director of the Bureau of the Budget to director of the state's personnel and office management agency. That move led to two of Schnorf's underlings getting promoted for the few months remaining in Ryan's term, giving them extra cash.

Ryan also gave a temporary two-month appointment to the state Labor Relations Board to Cook County Commissioner Ted Lechowicz, who lost his re-election bid in the March primary. The state job, which on an annual basis pays $79,779, takes effect Dec. 2--one day after Lechowicz leaves office--and expires Jan. 27.

Lechowicz could not be reached for comment.

Dennis Culloton, the governor's spokesman, acknowledged that the appointment was brief. "But it is the type of job that you need to have a commission member on there to keep operations going, and Ted's got a lot of experience dealing with these issues," said Culloton.

Culloton said he did not know whether the motivation for giving Lechowicz the job was to help boost his state pension. "To my knowledge, I don't think that entered into the equation. I have no idea," he said.

However, Ryan has a history of providing short-term employment to friends to help boost their pension benefits. In 1993, when Ryan was secretary of state, he gave Lechowicz a six-week job that paid $9,000 but resulted in an extra $20,000 in annual state pension benefits.

Much in the way he took care of Lechowicz, Ryan has always had a soft spot for helping other former members of the legislature, where the governor once served as House speaker.

A year into Ryan's term as governor, Beverly Fawell of Glen Ellyn, the mother of his former chief of staff, Scott Fawell, left her job as a state senator to work for the state Toll Highway Authority. The move raised her annual public salary to $85,000 from $61,737 .

Tollway Chairman Art Philip said the agency hired Fawell under pressure from Ryan, adding that the move "certainly" was made to increase her state pension. A Ryan aide denied that was the case.

More recently, Ryan's administration found a new post for Scott Fawell's estranged wife that will keep her on the state payroll after Blagojevich takes over. Joan Mitnick Fawell was appointed to a four-year term at the Illinois Financial Institutions Department at a salary of almost $84,000 a year. She is seeking a divorce from Scott Fawell, who has been indicted on fraud charges in the federal Operation Safe Road investigation.

Ryan this summer also took care of Republican Walter Dudycz, who stepped down from his Chicago state Senate seat to become executive director of the Illinois Racing Board, a job that pays just over $100,000 a year. Ryan's office admitted Dudycz had little experience in the industry but said it wasn't a concern because he was familiar with the legislative and budget process.

That move came on the heels of the appointment of former Rep. Andrea Moore (R-Libertyville) to become a top official at the Department of Natural Resources, and he named former Sen. Thomas Walsh (R-La Grange Park), who lost a primary re-election bid, as a paid member of the state Labor Relations Board.

Other moves include the appointment of Kevin Wright, a longtime member of Ryan's support staff, as chairman of the Illinois Commerce Commission, at more than $100,000; and Pam McDonough, director of the Department of Commerce and Community Affairs, to the Illinois Labor Relations Board.