Chicago Area Local News

CHICAGO (CBS) ― New fundraising rules that are part of a new state government ethics bill were likely to take effect in the next few weeks. Meantime, it seems Gov. Rod Blagojevich suddenly has become very busy trying to restock his war chest.

CBS 2 Political Editor Mike Flannery spoke exclusively with the governor about a fundraising tour that stopped in the Kenwood neighborhood Tuesday night.

Ever since the FBI began investigating him, the governor has paid his lawyers more than $1 million from his campaign funds.

The governor was in Kenwood Tuesday night, meeting with contributors at the home of businessman Tim Rand, who controls restaurants at Midway International Airport and elsewhere.

It was the latest of a series of fundraising events the governor has held in the western suburbs and Chicago, attracting plenty of people with state contracts.

The General Assembly passed new rules, expected soon to take effect, prohibiting such contractors from giving to officials like the governor.

CBS 2 asked the governor whether people should think state business has been exchanged for a political contribution when they see contractors attending a political fundraiser for Blagojevich. But the governor said, "There's absolutely no connection between one or the other and they're completely separate and apart. It's not even a question that I even ask, or am I even really aware of it."

Still, evidence at Antoin "Tony" Rezko's federal trial showed the governor's former fundraiser was selling top state jobs in exchange for contributions. The scam helped Blagojevich break all previous records for collecting campaign cash in Illinois, although the governor has not been charged with any wrongdoing.

Mike Flannery asked the governor Tuesday "When you see a state contractor at a fundraiser, do you think 'Gee, maybe I'll give this guy some extra points? Or no."

The governor's response? "That never crosses my mind and I don't see people that way. When I see you, I see Mike Flannery, I don't see anchorman."

Like every other Illinois politician with a campaign fund, the governor must reveal next month exactly how much he's collected and how much he's spent.

Blagojevich belittled speculation that he's had trouble raising money, telling Mike Flannery Tuesday "We're doing very well."

The governor's legal troubles include multiple grand jury investigations into his administration, one reason that potential Democratic challengers were already lining up well in advance of the 2010 Democratic gubernatorial primary.

Former Commerce Secretary Bill Daley is one potential challenger. Now Midwest Chairman of J.P. Morgan Chase, he considered running for governor in 2002, in the election ultimately won by Blagojevich. Bill Daley got high praise Tuesday from his brother, Mayor Richard M. Daley.

"He's doing very well in the private sector. Of course, he was Secretary of Commerce under Bill Clinton. So, that would be up to him, not to me," the mayor said. Asked if he thinks his brother would make a good governor, Mayor Daley said, "I think Bill would be good at anything that he does. He's very dedicated and passionate about what he's done in both public and private life.

Blagojevich said, "It's a long way away, but everyone should feel free to pursue their dreams. Why shouldn't they? This is America."

The governor's people have continued to insist that he will run for re-election in 2010, although most outsiders are very skeptical about that.

On Thursday, he will have his large annual fundraiser at Navy Pier. Lots of big state contractors are expected to attend. Earlier this week, he held at least one other fundraising event and may well have held other smaller events like the one Tuesday in Kenwood.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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