Will nothing be done?
Wednesday, Mar 28, 2007 - Posted by Rich Miller
* I’m hearing this possibility - that nothing major might be done on anything this year - more and more at the Statehouse….
Despite widespread consensus in Springfield about the need to provide more money to Illinois schools, disagreement over where those funds should come from is growing deeper and has education advocates scrambling to avoid a stalemate that could mean no new funding at all. […]
With the two plans so fundamentally different, and with both sides digging in their heels, there appears to be a real danger that the common goal of giving more money for schools could become bogged down on the issue of how to do it. […]
“Political infighting can’t become an excuse for not getting anything done,'’ [said IFT spokesman Dave Comerford].
That’s a frequent danger with controversial issues lately in Springfield, where the Democrats who control all levers of state government have been fractured by in-party showdowns, often between Madigan and Jones.
* The Tribune has a he said-she said piece today about the tax hikes, with both business and the Blagojevich administration claiming the other side is distorting the GRT issue. It also notes that both business and the governor have created websites to promote their tax agendas.
* The very end of the Tribune piece notes that a group called the Illinois State Black Chamber of Commerce has endorsed the governor’s plan. Not much is known about the organization, but the governor’s press release touting the endorsement was issued after Crain’s reported that a much better known African-American biz group had come out against the proposal.
A group that represents African-American businesses has given what its president describes as a “thumbs down†to Gov. Rod Blagojevich’s proposed $6.3-billion gross-receipts tax.
Echoing concerns of other, larger business organizations, members of the Alliance of Business Leaders and Entrepreneurs (ABLE) posed sharp questions and fired a series of rhetorical shots when two senior gubernatorial aides met with the group earlier this month.
While ABLE formally decided to further review the matter and to examine a possible “alternative solution†to the state’s financial needs, President Hermene Hartman says the organization in fact opposes the proposal.
Looks like they’re running a rapid response operation over at the guv’s office.
* More budget stories…
* Official: Governor ties tax to airport
* Business group ads rap governor’s tax plan
* Richards: Gov is serious about his budget plan: “If I don’t get health care and education, there will be nothing else,” he said.
* Illinois pension systems severely underfunded
* State pension debt, in the end you pay
* Director says IMRF remains solvent
* Audits underscore pension debt
- VanillaMan - Wednesday, Mar 28, 07 @ 9:04 am:
Who do you trust?
Blagojevich? Hardly. He hasn’t shown many reasons to trust him over the past four years, has he?
Madigan? A better choice. He has the experience and support from both parties. If you want a bi-partisan plan regarding tax policies, than Madigan is the go-to guy.
When the Blagojevich administration is history, Madigan’s crew will still be in charge. It is better to listen to the people who look at these issues long-term, than look at a governor who shoots-from-the-lips and doesn’t care about tomorrow.
We have four years to watch Blagojevich turn into a governor. We are still waiting, aren’t we? It seems he doesn’t want to govern, he wants to campaign. We don’t need a campaigner right now, we need a governor. If Blagojevich doesn’t want the job, let Madigan do it until Rod is given the boot. And the sooner the better.
- VanillaMan - Wednesday, Mar 28, 07 @ 9:09 am:
And I want to say that I am sick of these fake groups. Enough already. Everytime some politicians want to hide their scalps, they create a fake group to promote their agenda. It is fraud, and anyone doing it should be publically spanked for it.
Rod, drop those shorts!
- VanillaMan - Wednesday, Mar 28, 07 @ 9:33 am:
Gee, is anyone here?
This is from the new HB 4091 proposed by Madigan:
“These excessive costs and lack of confidence have deterred commerce and industry from locating in Illinois and have caused existing commerce and industry to seriously consider moving out of the State.”
While this is part of his justification for proposing the IPA, what makes anyone believe Madigan would not be listening to businesses regarding the GRT?
Hynes, Giannoulais, Madigan and even Quinn have not come onboard with Blagojevich. If he can’t even get his own running mate on his side, why should we?
And to those who say he is serious, how serious can he be when he doesn’t have discussions among his own party? You can’t avoid doing any work, but then publically claim you are serious. Blagojevich’s actions do not show that he is serious about his GRT except when it comes to talk.
He is quick to use campaign tactics and create bogus citizen groups to tout his proposals, but he has shown no interest in using his duties as governor to make his proposals happen.
He can’t be serious!
- Yellow Dog Democrat - Wednesday, Mar 28, 07 @ 9:42 am:
Cindy Richards thinks we should all get behind the Governor’s plan because it’s bold, and he refuses to compromise.
Pres. Bush has a bold plan that he refuses to compromise on as well.
Gov. Blagojevich says that those who oppose his plan are unpatriotic — worse, not on God’s side. And they are ignoring the big picture.
President Bush says the same thing.
- Cassandra - Wednesday, Mar 28, 07 @ 10:02 am:
I think that no tax increase (GRT, swap, etc) should be presented to the electorate as a viable option. After all, the state is going to collect billions from us in taxes this year regardless. A status quo year or three or four might motivate our guv and legislators to do more with what they have…and what they have would certainly allow for modest increases in education spending as well as an expansion of state-subsidized health care into higher income ranges. Might have to cut a few earmarks and sqiffy state contracts though.
Fewer patronage jobs.
As the pension liability…why should Illinois taxpayers have to pay for state employee pensions when most non-government employees, making similar salaries, have no access to defined benefit pensions. It is possible to require state employees to pay more for the privilege of a defined benefit pension. It is possible to change the state Constitution too. Nothing is written in stone.
- Siyotanka - Wednesday, Mar 28, 07 @ 10:23 am:
Cassandra…
and why do most non-gov employees making similar salaries not have a pension. Could it be their employer didn’t set one up or the employee didn’t think they needed one? Being a “state employee” for 34 years, I am glad to have this package in place. I know that 34 years ago I didn’t think it would have been necessary, or I had other expenses to worry about. I would gladly pay more to keep what I have owrked for stay solvent… A soon to be retired employee
- anon - Wednesday, Mar 28, 07 @ 10:40 am:
Rich, your opinion on this question would be appreciated. Who wins if nothing happens this session? Who loses? What is the effect on the Democratic Party of Illinois if, while in total control of state government, progress on these important issues cannot be made?
- cermak_rd - Wednesday, Mar 28, 07 @ 10:43 am:
Cassandra,
We have to pay outstanding pension obligations because we promised them to the employees. Now, I would like to provide incentives to get the existing employees to switch to a 401K type system and new hires should only be offered a 401K type system (I believe this has been done already?). Nevertheless, promises already made should be kept.
I agree, I don’t see a status quo year being a problem. Maybe it will encourage school districts to innovate and try new solutions. Maybe it will encourage some non-sustainable districts to consolidate or try distance learning or other cost saving measures.
- Little Egypt - Wednesday, Mar 28, 07 @ 11:06 am:
How to pay back the pension system; to freeze or not freeze electric rates for Ameren, Com-Ed, both, or neither; GRT; who gets the remaining river boat license; to sell or not sell the lottery, that is the question; GRT; income tax - hike or take a hike; real estate taxes; what’s the tax swap all about; GRT; road projects; health care for all or none; GRT; can illegals get a driver’s license; wind power; GRT; school funding; global warming and will it affect only the parcel of land Blago’s house is built on; fossil fuels; GRT; sex predators and what part of the state should they all be forced to live in (I vote across the street from Blago’s house); GRT; understaffed prisons; med mal; collapsing housing market; predatory lending; did I mention GRT? In a good and productive legislative year, perhaps ONE of these issues would be successfully addressed. This year is laughable. Now what was the question?
- Mr Wizard - Wednesday, Mar 28, 07 @ 11:39 am:
As a practical matter, a no-tax budget is extremely difficult for legislators to consider. Check out the estimates for natural general revenue growth for next year and compare it to the required payments to state pension systems. Result: nothing left.
A no-tax budget can only be crafted with major cuts in spending, which means cuts in health and education. Does the middle class want that? In the end, legislators will respond to what their constituents want…
- Rich Miller - Wednesday, Mar 28, 07 @ 11:46 am:
“Inquisitive” try reposting your comment without using inflammatory language like “blackmail.” Thanks.
- Milorad - Wednesday, Mar 28, 07 @ 12:03 pm:
” I’m hearing this possibility - that nothing major might be done on anything this year - more and more at the Statehouse….”
Rich, how is this differnt than any other year?
- steve schnorf - Wednesday, Mar 28, 07 @ 12:05 pm:
Wizard,
I believed that 4 years ago and said so. 4 years later here we are. You should be right. I should have been right 4 years ago. The administration has proven us wrong. We both know how, and we both know why the pressure for new revenue gets greater with each passing year.
- Rich Miller - Wednesday, Mar 28, 07 @ 12:08 pm:
“Milorad,” it’s different because this year the governor is backing some incredibly huge proposals.
- GettingJonesed - Wednesday, Mar 28, 07 @ 12:45 pm:
Who wants to buzz over to the Sun Times and tell Cindy Richards and Rep. Hamose that there is no new money for most state programs…The insurance get most of the dough and school get some, but the other programs get zip.
- RMW Stanford - Wednesday, Mar 28, 07 @ 3:14 pm:
There are a lot of major problems facing the State and it would be to bad if the Governor’s stubbornness over a tax that is bad for the state. It seems that the last election has gone to the Governor’s head and he has no idea how to lead.
- Mr Wizard - Wednesday, Mar 28, 07 @ 3:52 pm:
Steve,
I see your point and agree. Legislators (much maligned here and elsewhere) are simply trying to provide people what they want - to have their cake and eat it too.
- illrino - Wednesday, Mar 28, 07 @ 4:09 pm:
There’s maybe $900M in new revenue in FY08. The pensions and Medicaid eat that up.
The GRT is probably doomed. Too many house and senate dems are saying privately they won’t vote for it.
The gov doesn’t have to increase the sales tax to increase sales tax receipts. Expanding coverage of the sales tax to services brings in a good chunk of money and keeps Blago’s promise not to increase the sales tax. Add a gaming bill to the mix and you have new money for programs and for capital projects.
But it still won’t happen until August.
- Bill - Wednesday, Mar 28, 07 @ 6:32 pm:
illrino,
You could be right but I would still like to see your proposals along with maybe a 1/2 or 1 point increase in income tax and tax on internet sales. Its no GRT, but it would probably do the trick for a while.
Something WILL happen this year to enhance revenue. It has to.
- A Citizen - Wednesday, Mar 28, 07 @ 6:47 pm:
Bill, and remember, abolish the property tax !
- Just the Facts - Wednesday, Mar 28, 07 @ 6:54 pm:
Bill,
The state lacks authority to tax Internet sales. It is limited by the Commerce Clause. Congress would have to act to grant the additional authority to the states
- Bill - Wednesday, Mar 28, 07 @ 7:04 pm:
Just the facts,
You are probably right but I think I remember some sites charging tax on customers in certain states.
- Just the Facts - Wednesday, Mar 28, 07 @ 7:27 pm:
Bill,
They may be required to collect tax in those states in which they have physical presence. If you buy something from an internet seller and are not charged tax tou owe tax to Illinois. However, iilinois has no way to track you down and collect the tax
For once we may agree. The state is entitled to the taxes.
- Anonymous - Wednesday, Mar 28, 07 @ 7:40 pm:
Mr. Speaker’s dilemma -
Significant new revenue gives Blago money and p.r. to set him up well for a possible third term.
No new revenue has the state in a seeming mess if Lisa comes in four years.
Potential solution -
Look for some phased-in new revenue to be approved about Spring of 09.
- steve schnorf - Wednesday, Mar 28, 07 @ 8:38 pm:
Wizard;
and they certainly don’t want to pay for the cake.
- State Worker w/ MBA - Wednesday, Mar 28, 07 @ 9:46 pm:
It is true that if I am a retailer selling a product from Illnois and delivering to a customer in Illinois the collection of sales tax is required.
Currently if I sell you a product and arrange the shipping of this product outside the state boundries this is called interstate commerce and it is tax exempt. Also lets say I am a boat dealer and you come to Danville and buy a boat from me. If we meet at the the rest area in Covington Indiana make delivery of the boat interstate commerce applies and no tax is due.
The internet did not exist when most tax laws were enacted and this presents a great opportunity for generating revenue. It also is a nightmare because it will require a lot of manpower to enforce it.
Yay what you want about raising income tax but Illinois is one of the lowest in the country. Missouri has a 2 tier system where the tax up to X% is taxed at 4% and all income over this is taxed at a different rate. Indiana is 3.5%, Iowa is 4% or higher. Can’t Remember WI and MI off the top of my head. Also the Illnois rate has not changed in something like 27 years so it has really not kept pace with inflation. Revenue has increased due to the fact the salaries have increased. An increase of 0.5% percent would bring us up to Indiana but still be below IA and MO.
- Sahims2 - Thursday, Mar 29, 07 @ 7:21 am:
Funding for the state employee’s retirement has been transferred to the employees, not the state as it once was. The pension fund is short funds as it has been stolen from by politicians who can’t stop over-spending, and those must be paid back to make the fund solvent and legal. They should have never been touched in the first place, but put money in front of a politician and I guarantee you that they’ll find some excuse to spend it.
The state also has a deferred compensation benefit for those who choose to do so, which is similar to a 401k. It lets the employees put pre-tax dollars into a fund for retirement - which the gov can’t steal and spend, a much more secure retirement fund. I’d be happy to take all of my state held retirement funds and put into the deferred compensation plan - thereby eliminating the ability of those generous soles to spend it on pork and then have to come up with a check somehow to pay me, after I retire.
Newspapers, magazines, and the NCAA should all be taxable - the NCAA is operating on about a half a billion dollar budget annually - all tax free - such a deal! Churches should be taxed too - since they can’t seem to make the distinction between church and state and stay out of politics - “render unto Caesar…”
Speaking of state budget - interesting hire at State Police - move a Colonel up to a Springfield based position, of course, he lives in Chicago and then move an underling into his old spot and create another position along with that one to do the Colonel’s job, since he can’t do it, living up in Chicago and not spending the required amount of time in what is supposed to be the capital city….. makes one wonder just what he is doing up there in the windy city…. and the gov wants to “cut staff” - bull - he cuts rank and file employees and adds management levels/employees - costing even more. Business as usual here in the gov….
- Squideshi - Friday, Mar 30, 07 @ 11:41 am:
I think it’s great that the Governor has tied any action on an airport in Peotone to his tax proposal. This way there’s a good chance that neither one will go anywhere, and that’s how it should be.