In and around Peoria courthouse and public media

Lawsuit against ex-WTVP execs off - and on

Peoria Judge Timothy J. Cusack on Nov. 5 granted a motion to dismiss a lawsuit against former WTVP Director of Finance and Human Resources Linda McLaughin and the estate of the late WTVP CEO Lesley Matuszak because the Cincinnati Insurance Company’s claim “lacked specificity.”

Cusack also gave the company 30 days to amend its complaint.

The Cincinnati Insurance Company (CIC) is suing McLaughlin and Matuszak’s estate for $250,000 plus lawyers’ fees and costs tied to its settlement payment for WTVP’s financial losses stemming from an alleged misuse of funds, which Peoria police said was embezzlement.

“As WTVP’s head of the Finance Office, [McLaughlin] directly owed the duty to honestly perform her job,” CIC’s suit says. “In her capacity as head of the HR Department and the Finance Office, she is the person who made misrepresentations to the Board. McLaughlin knowingly presented false financial information to the Board, provided misleading financial statements during board meetings, and falsely certified the accuracy of board meeting minutes and financial documents when in fact said document concealed her fraudulent misappropriation of company funds.”

Filed in March, the suit also states, “As part of the conspiracy, defendant McLaughlin knowingly and intentionally participated in, facilitated, and directed the fraudulent actions carried out by defendant Matuszak. This conspiracy was aimed at deceiving WTVP’s board of directors, ultimately leading to the approval and reimbursement of fraudulent and unauthorized expenses.”

After board members eventually questioned spending, Matuszak committed suicide and McLaughlin resigned, and the station cut about 30% of its budget and laid off nine employees. Most members of the board of directors also quit, and an audited financial statement for the fiscal year ending June 30, 2023, showed an overall loss of more than $870,000.

The Peoria Police Department later found probable cause to charge Matuszak, but declined to file charges since she was dead. Although implicated, McLaughlin never faced charges and “probable cause has not been reached for her arrest, unless she is able to be communicated with,” according to the report from police, who declined to comment further.

However, McLaughlin’s lawyer, Philip O’Donnell of Peoria, said CIC’s claim is “seriously lacking in identified, concrete, factual allegations,” and last month noted a sheer absence of details, saying, “They haven’t said how she [McLaughlin] was enriched.”

O’Donnell also implied that the insurer must have done its own investigation, saying, “$250,000? Insurers don’t pay for no reason.”

Appearing on behalf of CIC, Christopher Hack, an associate with the Chicago law firm of Thompson, Brody and Kaplan, commented, ”We need discovery to get specifics.”

Two days later, The insurer’s lawyers issued a subpoena commanding the Peoria Police Dept. produce its investigation report, “any and all interviews and witness statements, as well as financial records” and other records related to the investigation of the alleged embezzlement of funds at WTVP.

Cusack scheduled a March 13 Case Management Conference on the case.

 

New development director starts at WTVP public TV

Audrey Kamm is the new chief development officer at WTVP.

The former regional adviser for development for the St. Jude Children’s Research Hospital, Kamm started on Nov. 10.

Her experience includes stints at the Midwest Food Bank and the Peoria Area Chamber of Commerce.

At WTVP, Kamm will lead fundraising efforts.\

 

Peoria County ordered to pay attorney for ex-Auditor $124,000 in fees and costs

Peoria Judge Stewart Umholtz on Oct. 16 directed Peoria County to pay attorney Justin Penn of the Hinshaw and Culbertson law firm an additional $124,531.41 in fees and costs stemming from his representation of former County Auditor Jessica Thomas.

Almost two years ago, Thomas’ case against the County was largely resolved after the 4^th District of the Illinois Appellate Court ruled that Thomas had no right to finish her term after some 70% of voters eliminated the office in a 2022 referendum.

Left unresolved, however, was the amount of payment due to Penn, who’d been appointed as a special prosecutor in Thomas’ lawsuit against the County, filed in October of 2021.

In February of last year, Umholtz dissolved Thomas’ motion for a preliminary injunction and awarded some of Penn’s requested fees, but he denied other fees for his work on two counts in an amended complaint. Penn appealed Umholtz ruling, and the Illinois Appellate Court for the 4th District in September filed a decision that reversed that part of Umholtz’ 2024 ruling.

Heartland Health Services weathering the storms from Washington

Since the country's first Community Health Centers opened in the 1960s, the non-profit, community-based clinics have grown to about 1,500 federally funded centers serving millions of low-income people.

Such community health centers (CHCs) provide primary care and other services free or at reduced rates –34 million patients coast to coast, according to the National Association of Community Health Centers (NACHC).

In Peoria, Heartland Health Services provides care for about 22,000 patients a year at its 10 locations in the metro area. That translates to about 260 patient visits each day.

Nationwide, recent changes at the federal level mean some centers could face cuts, difficulties in recruiting and retaining staff, or even closing – leaving patients in need to do without or to turn to hospital emergency rooms for critical care. One change stems from Congressional Republicans voting to not renew the tax credits that help U.S. citizens pay for health insurance under the Affordable Care Act – the reason behind Democrats’ filibuster to block all funding until a compromise on the issue could be reached leading to the 43-day government shutdown.

“Upcoming changes to Medicaid and ACA subsidies may affect both our funding and the patients we serve,” says a Heartland Health Systems spokesperson. “When there are coverage or reimbursement changes at the federal level, it can create real challenges for families seeking care. While many of these policy shifts are still taking shape, we’re closely monitoring their progress and preparing to respond in ways that keep care accessible and affordable for our patients.”

But cutbacks or staffing issues aren’t foreseen at Heartland Health Services (HHS), the spokesperson says.

“Every challenge is serious when it impacts people’s health and stability, but we are resilient,” Heartland says. “Heartland Health Services continues to operate daily with a clear mission: to provide high-quality, affordable health services and remove inequities to improve the lives of all. No matter what changes come, our focus will always remain on serving our patients and our community with compassion and consistency.”

For CHCs, federal funds come in two ways: some reimbursements for patients helped by Medicaid and similar assistance, and grants from the federal Community Health Center Fund. Congress has approved that funding in small doses. This spring, lawmakers extended CHC funding until Sept. 30, but that ended with the government shutdown, when the Supplemental Nutrition Assistance Program (SNAP) also was delayed.

The first government action affecting CHCs was an Executive Order issued by President Trump in January, when he froze domestic funding. The next was the GOP’s tax and spending measure dubbed its “Big Beautiful Bill” passing restriction on the Supplemental Nutrition Assistance Program (SNAP) and cutting some SNAP costs to shift payments to states.

“Roughly 60% of our patients rely on SNAP benefits to feed their families, and with those benefits halted as of November 1, it will be a very difficult time for many in our community,” Heartland says. “Our Community Health Workers have been preparing to help connect patients to available local food resources, though those resources are limited. This is a time when our mission to support the most vulnerable becomes even more critical.”

The Big Beautiful Bill also was where Congress failed to extend ACA tax credits. The consequences is monthly ACA costs expected to increase by a median (or midpoint) of 18% based on proposed rates by private insurers, KFF health news says. However, the amount many individuals pay could go much higher – even doubling if the current tax credits expire as scheduled this month. Without the credits, premiums for those receiving the largest subsidies could increase by more than 70%. For example, enrollees in their 50s and early 60s – who already pay a lot for coverage – will probably have to pay much more, according to Cynthia Cox, KFF’s director of the Program on the ACA, who said an older couple making $85,000 a year could see their premiums skyrocket by more than $20,000 a year.

Such an increase could lead to major sacrifices for many people, from cutting back on other necessities, to just giving up health-insurance coverage.

In addition to that, the “Big Beautiful Bill” is cutting Medicaid by more than $880 billion, according to the nonpartisan Congressional Office, which estimated that that alone “will increase the number of people without health insurance by 7.5 million in 2034.” In 2023, Medicaid reimbursements meant 43% of CHC’s $46,7 billion in revenue, according to KFF – about $20 billion.

Outside of Washington, D.C., health care is the most important matter for Americans, according to a new poll from Reuters/Ipsos, which shows that, when asked “Which everyday expense do you want Congress to prioritize,” 31% of U.S. adults named health care. (Food and housing were next, both at 22%.)

Last year, the United States’ CHCs together got $4.4 billion in federal grants (The NACHC recommends $5.8 billion in yearly grants.) Long-term funding would give CHCs financial stability, and options could include state or local help.

“We’re not aware of specific state-level funding assistance, but we actively seek philanthropic and private donations to support our mission,” Heartland says. “Anyone interested in helping can visit our website to learn more about how to donate or partner with us to strengthen access to care.”

Some states, including Illinois, are trying to fill the gap. In June, Gov. JB Pritzker signed the state’s FY26 budget, which approved $40 million in General Revenue Funds for an increase in its Medicaid Prospective Payment System. This funding should help CHCs continue tp provide care for individuals who may lose health coverage or face other barriers to access.

Also, some centers are looking for other stakeholders such as physicians, clinics and insurers to support their mission.

Meanwhile, federal changes could mean directly or inadvertently throwing people off health coverage.

“Emergency rooms should not be the front line for primary care,” Heartland says, “but when people lose coverage or can’t afford to see a doctor, they often have no other choice.

“We never turn anyone away based on their ability to pay,” Heartland adds. “We will continue working to ensure patients have access to affordable, quality care and that we help reduce unnecessary ER visits whenever possible.”

Peoria Public Radio looking OK, plans to be sounding better

It’s been five months since Congress cancelled $1.1 billion in funding for public broadcasting at the request of the Trump administration – funding Congress previously approved. About 1,000 local stations have been negatively affected, according to media analyst Bob Sillick.

In central Illinois, WCBU-FM 89.9 is losing approximately $125,000 annually in federal funds (about 15% of its annual budget), and WTVP-TV 47 is losing some $1 million a year (about 30% of its annual budget).

At WCBU, its fundraising drive Sept. 29-Oct. 8 exceeded the National Public Radio affiliate’s goals of $50,000.

“The community showed up to support WCBU,” says R.C. McBride, the Executive Director and General Manager at WCBU and WGLT-FM 89.1.

“The community has been very supportive since rescission, and of course we will need that to continue.  Fundraising has gone well, but long-term viability will require a lot of ongoing effort and support.”

Challenges remain – as do opportunities.

“Stations shouldn’t count on being able to fundraise next year like they are now,” commented Alex Curley, a former public media producer and analyst. “Losing federal funding is a permanent condition. There are plenty of stations that may be financially stable today but not in three years. That’s why layoffs have started at stations that generate plenty of revenue. Stations aren’t just reacting to the immediate funding situation, but what will happen in the next four or five years.”

Nationally, some stations are trimming staff. WCBU has not laid off anyone but also hasn’t filled vacancies.

McBride, who’s also on NPR’s Board of Directors, says, “I’m cautiously optimistic we could add a full-time journalist position next fiscal year, but there’s just too much uncertainty to promise that.”

Other stations are cutting programming and a few are joining forces with other broadcasters, partnering in regional systems.

“In Illinois, all of our public radio and TV stations have been meeting regularly and have established a couple of project working groups,” McBride says. “We’re aligned on the end goal – reduce overhead so that individual stations can maintain, and eventually grow, service to their local communities.”

Meanwhile, work is underway to improve WCBU’s reception, in the next several months replacing its Studio-Transmitter Link, which sends studio sound to its transmitter.

“It should result in a noticeable improvement in audio quality on 89.9 as well as 89.9 HD-1 and 89.9 HD-2 (classical music),” McBride says. “It will also allow for us to place programming information – the title of the NPR news story that’s running, or the title and artist of the song that’s playing – onto car radio screens.”

Finally, stations in vulnerable communities, where the loss of funding can exceed 50%, hope to see some stability from a one-time $36.5 million commitment to public media from a group of charitable donors: the Ford Foundation, the Knight Foundation, the MacArthur Foundation, Pivotal Ventures, the Robert Wood Johnson Foundations and the Schmidt Family Foundation.

5 questions: 'Working on the Hubble Space Telescope, I told 200 men what to do.'

PEORIA’S SOUTH SIDE – At 4-foot, 11-inches tall, Mary Hayes has worked at never being dismissed, whether commenting about Medicare for All at a strategy session at the Peoria Public Library, helping residents at area nursing homes, or meeting with the East Peoria Homemakers at Fon Du Lac Park District or NASA engineers in Huntsville, Ala.

Tracing her family to Irish immigrants, the 76-year-old Hayes arrived in Peoria in a roundabout route. From a childhood in Scottsboro, Ala, through becoming a working woman in Chattanooga, Nashville, and finally Central Illinois. From Calhoun Junior College in Decatur, Ala., to Bradley University and Illinois Central College, she worked her way through school. (“I never had a student loan or anything,” she says). She’s worked as a Certified Nursing Assistant, dietician and a teacher of handicrafts such as knitting and crocheting.

Breaking up her busy day, Hayes responded to the Community Word’s “Five Questions” over coffee.

1. What are some of issues or interests you’re engaged in?

A few things: Let people vote! The environment. And be creative. I spend a lot of time working with yarn and creating patterns and designs for knitting and other projects.

2.  How else do you use your time – and your energy?

I spend a lot of time at my churches – the LDS (Latter Day Saints) and Bethany Missionary Church. And I take good naps, almost every day at 2 o’clock. And I don’t have a car, so if people need me, they pick me up. That’s fine with me.

3. What’s been some of your worst or best jobs?

I’ve taught classes once in a while at the Peoria Park District and Carver Center. I liked that; people wanted to be there. I also dipped ice cream in junior high, worked at a department store to save money to buy a London Fog coat my senior year, then I was a building clerk at Genesco, which made and exported shoes.

I guess my favorite job was working on the Hubble Space Telescope in Huntsville. I was my boss’s eyes and ears, so I told 200 men what to do.

4.  Any advice?

Start learning early; my son went from playing Nintendo as a kid to working with missiles in his 40s in Australia.

5. What’s with the red hat?

I’ve been in the Red Hat Society for years. In fact, I’m one of the ‘Queens,’ one of the chapter leaders.

Art review: Taking solace from ‘Solitude’

The arrival of winter is greeted with glee and dread, maybe like some people are reacting to the entry of 3I/ATLAS in our solar system: Relief? Curiosity? Disappointment?

But feelings at the advent of winter is less about dropping temperatures and the absence or presence of precipitation than isolation and mood – retreating to comfort and enduring the season’s lack of light – and that makes the “Necessity of Art” more than clever marketing.

“Solitude: The Necessity of Art” – ending at the Peoria Riverfront Museum Dec. 7 – may be initially known for single pieces by Grant Wood and Andy Warhol, but the multi-disciplinary, expansive exhibit kindles appreciation and a sense of imminent warmth beyond thermometers.

Especially noteworthy are three landscapes by Neil Welliver and distinctive works by Alfred Conteh glimpsing the life and liveliness of the African American experience in Peoria.

Warhol’s “Hammer and Sickle,” based on graffiti in Italy, seems like an interesting outlier here, and Wood’s “American Golfer” is an amusing take on both, showing an ill-dressed professional man on a background of muted countryside.

As for Welliver, his “Autumn Blueberry Barren” juxtaposes a rocky, if not unforgiving, point with a cool sky; “Frozen Spring” is a stark painting of rural Maine in grays and blues; and “Snow on Alden Brook” somehow exudes celebration in a sparkling monochrome.

Conteh offers a thoughtful intersection of media and perspective, subtitled “Our Great Inheritance” (thankfully part of the museum’s permanent collection).

The array in “Solitude” ranges from Susie J. Lee’s playful video portraits; realist George Wesley Bellows’ “Return of the Useless” (a cold – ominously timely – depiction of inhuman treatment of returning survivors from World War I labor camps); Helen Frankenthaler’s chilling, if not icy “Contentment Island”; and Peter Glenn Oakley’s “Sewing Machine,” an impressive marble sculpture on a granite base that’s somewhat odd and completely charming.

Presented with help from the Art Bridges Foundation and art loaned by the Crystal Bridges Museum of American Art in Bentonville, Ark., the exhibit is highly recommended to see before the light dims.

Troubling job numbers indicate weakening economy

Late last month, Rivian announced plans to lay off 600 employees (about 4.5% of its workforce) and General Motors laid off about 1,000 workers in Detroit and another 700 or so in Ohio.

Those are small parts of a growing trend showing significant cooling in the U.S. labor market, foreshadowed in the last federal jobs report (for August, released in September, before the government shutdown). Weeks before, Federal Reserve Chair Jerome Powell said the labor market was starting to show instability through a slowdown in hiring and weaker wage gains (Bureau of Labor Statistics findings that were so unwelcome by the Trump administration that the President fired BLS Commissioner Erika McEntarfer, accusing her of “rigging” the data “to make the Republicans, and ME, look bad.”)

But facts matter; since then, these companies have announced layoffs:

Amazon is reducing its workforce by about 14,000 positions.

Nestle is cutting 16,000 jobs worldwide, citing new automation.

Paramount Skydance is cutting 1,000 jobs.

Proctor & Gamble plans to cut about 7,000 jobs over the next two years.

Target is laying off 1,800 jobs.

UPS is finishing 2025 cutbacks of 48,000 jobs .

Walmart is following layoffs of about 1,500 jobs this spring with a new round of layoffs affecting hundreds of workers across various locations, Bloomberg reports.

Also, Goldman Sachs and JPMorgan both said they’ll scale back hiring as they start to add technologies into operations.

Amazon and Walmart – the nation’s top two private-sector employers – both attributed the job losses to Artificial Intelligence letting them replace human workers.

Why else? Some execs blamed inefficient bureaucracies, mergers or growing costs from uncertainty from chaotic trade policies as well as AI, plus an anticipated downturn in consumer spending when prices from tariffs are inevitably passed on to shoppers.

“It’s taking more time to get a new [job] and as a result, the number of people who have been out of work for more than six months has risen,” said business analyst Jill Schlesinger. “Those dual trends tend to occur when the economy is softening, which usually has one positive benefit: historically, a slowing economy keeps a lid on inflation. But that’s not expected today, where tariff-related increases are expected to push prices higher in the coming months.”

Andy Challenger, senior vice president of executive outplacement firm Challenger, Gray & Christmas, added, “There's a real cooling in the labor market. We're also having lots of individual conversations with companies that are letting us know to expect future layoffs.

“There is more reason to be pessimistic about the labor market than optimistic we'll see some major bounce back,” he continued.

Other troubling signs:

* The unemployment rate is stuck at about 4.3% -- a number that’s sure to rise with laid-off federal workers fired by severe actions by Elon Musk’s DOGE, Russell Vought’s Office of Management & Budget, and Trump;

* the number of jobless young workers is up; and

* this year, U.S. employers have added fewer jobs on a monthly basis than in recent years.

 

The Jobs Posting Index from the Federal Reserve is at its lowest in years, according to Dean Baker, an economist from the Center for Economic and Policy Research and author of “Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer.” And it’s not just progressives who are sounding an alarm. The Illinois Manufacturer Association (IMA) last month said employers need some predictability in the economy.

“Trade and tariff policies that are changing consistently make it very difficult to operate today or plan for the future,” said IMA President and CEO Mark Denzler. “We've seen a number of companies pull back on capital expenditure and hiring until the tariff and trade issue settles down a bit. At the same time, we've seen Illinois manufacturers take advantage of this situation with companies looking to reshore or find new suppliers in the United States.”

Meanwhile, on paper, the stock market has prospered in a bull market dating to October 2022. However, Wall Street is far from Main Street. Gallup reports that 38% of U.S. households have zero ties to the stock market, even taking into account indirect holdings such as mutual funds, IRAs, 401(k) plans, etc.

Americans’ hopes are fading, too, according to a recent Wall Street Journal/NORC poll, which showed that “the share of people who say they have a good chance of improving their standard of living fell to 25%, a record low in surveys dating to 1987.” Even more telling, the poll said 70% of us say we no longer believe in “the American Dream,” meaning that hard work results in a  better life – the highest level in almost 15 years.

Trump must not be ignored. Period. Full stop.

For about 10 years, many labor leaders and union members, politicians and pundits have responded to Donald Trump in two main ways: “This too shall pass” or “He’s just a symptom of a bigger problem – the whole system.”

The former dismisses Trump as a momentary woe that will vanish, if uncomfortably, like a kidney stone.

The latter suggests enduring current pains to muse about future reforms that might be addressed when there’s a chance, like some lazy medical provider who suspects a diagnosis and hopes for a cure down the road.

Both are foolish.

Trump must not be ignored.

The Billionaire In Chief didn’t emerge from a vacuum, of course, but Americans cannot delay addressing current pain and trauma, which puts the body politic in jeopardy of further deterioration. Trump’s rise may be a sign of a diseased democracy, but it’s dangerous to not aggressively fight the malaise before it metastasizes beyond treatment.

Already, without probable cause or evidence of wrongdoing, masked and armed agents in camouflage roam U.S. cities, detaining and “disappearing” people (even U.S. citizens and immigrants “working through the system”), and attacks are ordered against foreign vessels, killing more than 60 people in recent weeks. The rich get richer, and the poor are abandoned. Workers are arbitrarily fired and labor relations are neutered more than Congress. Laws are violated and courts are ignored. Lies about crime, elections and dangers (vaccinations, renewable energy, history, empathy) are tolerated, as is revenge against opposing voices and perceived enemies ranging from universities and law firms to journalists and scientists.

There’s a manufactured air of dread, and regular Americans feel eroding expectations, if not hope.

Meanwhile, the nonpartisan Oxfam America this month released a report, “The Rise of a New American Oligarchy and the Agenda We Need,” that shows that the 10 wealthiest people in the country together have enriched themselves almost $700 billion since Trump’s inauguration.

“Under Trump, wealthy Americans are getting ahead while everyone else is falling behind,” said U.S. Sen. Elizabeth Warren (D-Mass.). “Our economy should work for all Americans, not just the wealthy.”

There’s no doubt that inequality, chaos and crises must be addressed, but postponing treatment of immediate symptoms risks our collective loss of control, worsening vision, and drastic mood swings linked to so-called free enterprise, market economy, 21^st century capitalism, whatever term is used.

Prioritizing the country’s condition – triage – may be logical, but we should not sacrifice action now. This is trauma. So we should apply pressure, as to a wound; relieve pain, like for some acute throbbing in the head or gut; stabilize and comfort in the ways an EMT or nurse, a Good Samaritan or physician makes it easier to breathe  -- or just offer reassurance.

This is an emergency, and critical care in this moment must happen.

Millions of everyday Americans rallying is a vital, urgent step to see others involved and willing to stand together. Millions of voters sending a clear signal from Virginia to California is a sign of strength. But a conversation is still needed to see how we can create a social “medicine” to combat a malady threatening to let society drift into life support.

A serious self-examination of government and society is needed, but not at the expense of handling the real symptoms by refusing, resisting and – yes – ridiculing the disease we’ve contracted.