* A recent Wall Street Journal editorial contains a horribly fatal flaw…
llinois gained nationwide notoriety in January when Governor Pat Quinn signed into law a 67% hike in the personal income tax rate while lifting the corporate tax rate to 9.5%, the fourth highest in the nation. How is that working out?
The good news is that corporate tax receipts in Springfield are up by about $300 million amid the economic recovery—though the state comptroller’s office announced in April that the state still faces $8 billion in unpaid bills. The bad news is that, according to the state’s Department of Commerce, Illinois has already shelled out some $230 million in corporate subsidies to keep more than two dozen companies from fleeing the state. And more are on the way.
Illinois has most definitely not “already shelled out some $230 million in corporate subsidies” this year. Those subsidies will be handed out over time, as many as ten years in the case of Motorola Mobility. So subtracting a decade-long subsidy from five months of corporate tax receipts to make some sort of a point is just beyond ridiculous.
* Rod Blagojevich’s defense attorneys have filed yet another mistrial motion. My favorite line from the filing…
The Court has not only made findings of fact, but it has effectively ruled that it does not believe certain aspects of the testimony of Blagojevich.
That’s a wise court. Of course he can’t be believed.
More background here.
* From a column written by then-Lt. Gov. Paul Simon on November 3, 1971…
The Downstate Teachers’ Retirement System is funded only at 34%.
That means that we can get by this year and next year, but 10 years from now or 15 years from now there will be a great many teachers retiring and someone is going to suddenly say, “What happened to all that money?”
There’s almost nothing new at the Statehouse. And worries about imminent doom of the pension system go back decades before that column was written.
* Oy…
Gov. Pat Quinn is withholding $52 million in transportation payments for Illinois’ cash-strapped schools so he can use that money instead to get the most out of federal Medicaid stimulus funds.
“After the buses are in the garage and the students are home for the summer, how’s a school district supposed to make a cut?” asked state Rep. Roger Eddy, R-Hutsonville, and Hutsonville School District superintendent. “Those expenses have been incurred. There is no way that we can do that. This is the most ridiculous proposal I’ve ever heard.”
As part of the 2009 stimulus plan, the federal government offered states more Medicaid money if they didn’t decrease Medicaid eligibility and followed certain guidelines. Illinois receives 60 cents from the federal government for every dollar it spends, but that will drop to the pre-stimulus amount of 50 cents for every dollar spent starting next month. So far, the state has received $3.6 billion from the federal government’s stimulus plan.
“We have to manage our resources right now in order to get that match. That’s worth maybe $100 (million) to $200 million to our state,” Quinn said at a news conference earlier this month. “I have to do everything necessary to get the most money that we can.”
Quinn said he is using school transportation funding, because the school districts have flexibility in how they spend their general state aid, or GSA. Schools can dip into their GSA to cover the lack of bus money over the summer and fall months, Quinn’s office said, until they are reimbursed for their transportation outlays.
Quinn’s office plans to pay the districts the $52 million by December for expenses incurred during the fourth quarter, which ends June 30.
* I really wanted to avoid this topic, but the NRCC apparently intends to make it an issue here…
Republicans are beating the drums, asking if former Democratic Congressman Bill Foster of Batavia plans to return $1,000 in “tainted contributions” he received from disgraced New York Rep. Anthony Weiner. […]
“Will Bill Foster return his scandal-tainted Weiner money … or will he silently condone his former colleague’s unacceptable and potentially ethically-compromised behavior?” a GOP email blast asked. Foster, who plans to run again, has not replied to our request for comment.
“Scandal-tainted money?” Really? Was Weiner sending X-Rated Tweets to potential donors? C’mon.
Try your very best to keep your comments clean, people. Thanks.
*** UPDATE *** Sheesh. I can’t believe I forgot to do this. I mean, the whole point of writing this post was to show you this photo…
* Along with this story…
On the average day, the man attends between five to ten events, meets dozens of people, has regularly scheduled media appearances, is responsible for $15 billion in investments, and manages a staff of close to two hundred employees. Meet Dan Rutherford, the banker for the State of Illinois. […]
Treasurer Rutherford recently announced the state’s purchase of $10 million worth of bonds from the State of Israel as a portion of the treasury’s sovereign bond holdings. “State of Israel bonds is a secure investment with an outstanding track record; they produce a strong rate of return and Israel has never defaulted on payments of principal or interest,” Rutherford said.
In praising the purchase, Israel Bonds president and CEO Joshua Matza noted, “The state of Illinois has been a loyal, consistent purchaser of Israel bonds. We are gratified by the state’s continued recognition of Israel bonds as dependable securities, as well as the fact that Israel bonds represent an investment in a sister democracy with shared values and ideals.”
Sounds like a decent idea, but apparently Illinois has been buying these bonds for years. Dude, could you make it any more obvious that you’re running for governor?
Just sayin’…
- :-) - Friday, Jun 10, 11 @ 2:12 pm:
Wow!!! NRCC is even pushier than those texts from Rep. Anthony Weiner
- wordslinger - Friday, Jun 10, 11 @ 2:19 pm:
–The good news is that corporate tax receipts in Springfield are up by about $300 million amid the economic recovery…–
I’m amazed that an editorial at the WSJ used the phrase “economic recovery.”
Rupert is going to have some copy editor’s liver with some fava beans and a nice chianti.
- Bulbous1 - Friday, Jun 10, 11 @ 2:20 pm:
Wow…to this day Paul Simon is still relevant. Nice.
- Precinct Captain - Friday, Jun 10, 11 @ 2:26 pm:
The NRCC will have credibility when it’s director for this cycle stops shaking down his car dealership employees for campaign contributions. As for some of this Weiner business, the goofball from Dairyville who runs the RNC demands that the New York Democrat must quit (note that he broke no laws), but the brothel attending (in DC & Nawlins) Louisiana Senator can stay in office?
- OneMan - Friday, Jun 10, 11 @ 2:27 pm:
Well we don’t know if any those women were donors
I have a lot more but you said keep it clean.
- Anon - Friday, Jun 10, 11 @ 2:30 pm:
Also with the EDGE credits which I imagine most, if not all of those beneftis are, only 40% or so are ever redeemed. Some companies fail to meet the job creation numbers and others don’t have an income tax liability, so they aren’t worth anything. So if Illinois awards $100 million, only $40 million will actually come out of the cofers if you will.
- TwoFeetThick - Friday, Jun 10, 11 @ 2:49 pm:
*keep your comments clean*
Once. Just once, I would like to see all of the humor, brain power and sarcasm demonstrated daily on this Blog unleashed in an anything goes comment stream.
Oh, perhaps it could happen on a sunny, post Spring Session Friday afternoon, much like today in Springfield. Rich would post a topic that included, I don’t know, maybe a congressman with an unfortunate last name who’s involved in a sort-of sex scandal. And, just this once, all of these intelligent, smarmy commenters could be allowed to, nay, encouraged to, even better, commanded to, say whatever they wanted.
That popping sound echoing everywhere would be the sound of aortas rupturing from laughter.
Just once?
- Vote Quimby! - Friday, Jun 10, 11 @ 2:49 pm:
==Wow…to this day Paul Simon is still relevant. Nice. =
I often wonder how different Illinois would be if Paul would have won the ‘72 gubernatorial primary…
- Rich Miller - Friday, Jun 10, 11 @ 2:51 pm:
TwoFeetThick, it’s mighty tempting, but I ain’t gonna do it.
- Shore - Friday, Jun 10, 11 @ 3:06 pm:
showing up at the civil union bill signing was also a major play. that won’t get him jewish votes-especially with what he’ll have to say in a primary, but it might help with donors. still hard to see a rural republican making in roads in that community in 3 years.
the check thing is a stunt as old as politics.
- Scott - Friday, Jun 10, 11 @ 3:08 pm:
I’m a big fan of Rutherford, and proud of his investments. The man has a future, for sure! Great article…
- 47th Ward - Friday, Jun 10, 11 @ 3:14 pm:
As Siriusly pointed out yesterday, somebody mis-spelled Illinois on that check. Hilarious.
- RFR - Friday, Jun 10, 11 @ 3:14 pm:
“Was Weiner sending X-Rated Tweets to potential donors? C’mon.”
Please don’t give the politicians any ideas.
- wordslinger - Friday, Jun 10, 11 @ 3:16 pm:
I’m starting to think this Dan Rutherford is just a wee bit political and self-serving in his credit risk assessments.
Here’s a guy who made noise for himself by saying he was going to ring the phone off the hook on Wall Street to undermine his own state’s credit — despite the fact that Illinois has not been late on or missed a bond payment in nearly 200 years.
But the same guy touts Israel as a great investment for Illinois money because it “has never defaulted on payments of principal or interest.”
Huh?
I’m a big supporter of Israel. But since 1948, it has had to fight six major wars against enemies with vastly superior numbers, is under constant threat of missile attacks from Lebanon and Gaza plus internal terrorism, and has theocrats in Teheran that want to wipe it off the face of the earth.
All we have to worry about here are noxious gas attacks from the governors’ mansions in Madison, Indy and Trenton. Annoying, but hardly existential threats.
Maybe Rutherford should just stick to his job and not make baldly self-serving political statements on credit risk under his “treasurer” title.
For the record, S&P has both at investment grade — Illinois at A+, Israel a notch below at A. Then again, they had the subprime mortgage-backed securities at AAA, so it’s not like they’re not political as well.
- Ahoy - Friday, Jun 10, 11 @ 3:30 pm:
= Rep. Roger Eddy, R-Hutsonville, and Hutsonville School District superintendent. “Those expenses have been incurred. There is no way that we can do that. This is the most ridiculous proposal I’ve ever heard.”=
Representative, is it really ridiculous for the state to incur a cost and not pay the bill for more than 9 months? As a Superintendent, you should be use to this since you serve as a de facto bank for the State. In fact your party doesn’t want to restructure the debt, so this is going to continue for a while.
Onto Rutherford, it’s good to know that he will probably not be calling up bond companies asking them to raise the interest rates on Israel’s bonds. Maybe he should run for office there.
- TwoFeetThick - Friday, Jun 10, 11 @ 3:38 pm:
Perhaps the Treasurer shouldn’t have used that box of ceremonial checks they found shoved in a corner and leftover from Alexi. There was a reason those ones didn’t ever get used.
- Anonny - Friday, Jun 10, 11 @ 3:46 pm:
Isreal’s debt to GDP is 44% what’s Illinois?
- Anonny - Friday, Jun 10, 11 @ 3:55 pm:
“For the record, S&P has both at investment grade — Illinois at A+, Israel a notch below at A.”–Thank you!! Is he aware of the irony?
- Both Sides Now - Friday, Jun 10, 11 @ 3:58 pm:
Thanks for pointing out the typo on the check - 47th Ward. OMG! Ryan’s already in prison, Blago wanted to go after Bin Laden and Rutherford can’t even type the name of the state he represents right! No wonder the world thinks the people in ILLenoize are such dufuses!!!
- just sayin' - Friday, Jun 10, 11 @ 4:13 pm:
“scandal-tainted Weiner money”
I think we can all go home now. Attempts at serious work will be useless.
- truthman - Friday, Jun 10, 11 @ 4:18 pm:
If the State of Illinois owes its vendors and service providers billions of dollars, how do we have any money to “invest” in Israeli bonds?
- siriusly - Friday, Jun 10, 11 @ 4:19 pm:
I don’t get how Weiner’s money is tainted. Did he somehow threaten donors with more pictures if they didn’t write big checks? I don’t get it. Its not like Tom DeLay money which was actually illegally transferred.
Both Sides - 47 tried to give me credit . . . I don’t get credit for anything at home but here on the blog it counts for something so please - yes, I spotted the typo first!
But no, Rutherford didn’t type that. I don’t even think that check was actually there for the photo op - it looks like it was added after the fact maybe by the magazine it was featured in. The article itself was lame and pandering.
- TwoFeetThick - Friday, Jun 10, 11 @ 4:24 pm:
I can’t touch the Weiner jokes. There’s just no way to keep it clean.
See? You can’t even mention it, they write themselves!
Serious attempts at work ceased some time ago.
- South of 64 - Friday, Jun 10, 11 @ 4:26 pm:
Rutherford running for Governor? That’s the BIGGEST understatement you’ve EVER made. Can anyone say From Day One!
Thankfully he’ll never make it. A complete light weight.
- dupage dan - Friday, Jun 10, 11 @ 4:32 pm:
My friends in Des Plianes think the world of Dan Ruthrefrod.