SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s numbers are mind-boggling

Friday, Mar 14, 2014

* We got caught up in politics yesterday and I didn’t get around to this story. Sorry about that. Greg Hinz has a solid take on the state comptroller’s Comprehensive Annual Financial Report…

Illinois’ net cumulative deficit for “governmental activities” — a broad measure of obligations the state has accrued, relative to resources it has to pay bills — rose an additional $1.2 billion in the fiscal year ended June 30, to $47.8 billion. The overall figure is nearly triple what it was just seven years ago, though the annual increase was the smallest it’s been since at least fiscal 2006.

“Governmental activities” includes almost all the programs and spending normally run by state government, from prisons and education aid to Medicaid and highway construction. Some, though not all, pension obligations are included. Excluded are self-contained business activities, including the unemployment insurance trust fund, the college tuition assistance program and the Illinois Lottery. […]

In his analysis, [Auditor General Bill Holland] reported that the net deficit for governmental activities has steadily risen from $18.7 billion in fiscal 2006 to $47.8 billion in fiscal 2013. Only one other state, Massachusetts, has a negative net position in the governmental activities account, he reported. Even other Midwestern states such as Michigan and Ohio are in the black.

Illinois is doing somewhat better by a narrower measure, the net balance in its general (or operating) funds, Mr. Holland found. It improved from a negative $9.1 billion in fiscal 2012 to “only” negative $7.3 billion in fiscal 2013, the lowest since the 2009 recession.

But the good news is limited, Mr. Holland conceded. “The deterioration is slowing,” he said. Ending the deficit entirely is going “slowly — very, very slowly.”

The CAFR is here. The Auditor General’s analysis is here.

* Meanwhile

Interest payments on Illinois’ late bills cost the state $318 million last year – enough to cover the annual budget of the Illinois State Police, according to a published report.

The state auditor’s overview of Illinois’ finances shows interest payments from fiscal year 2013 were more than double what was paid in the previous year when the figure was $136 million, according to a report by the Springfield bureau of Lee Enterprises newspapers.

The state’s interest on unpaid bills was $91 million in 2011, $97 million in 2010 and $36.9 million in 2009.

Brad Hahn, a spokesman for Illinois Comptroller Judy Baar Topinka, said this year’s interest payments should be much lower because the state has been “aggressive” about working to reduce the backlog of unpaid bills.

* And

An Illinois State Board of Education report released Wednesday shows more Illinois schools are in poor financial shape and borrowing money or dipping into reserves than previous years, a problem that could worsen as the state faces overall budget cuts next year.

The annual review, which places school districts into four categories ranging from high financial strength to high risk, shows an overall downgrade in the financial position of the state’s districts. About 120 of Illinois’ 862 districts are in the two categories that indicate higher risk — an increase of nine from last year. And the problems are only expected to get worse as about 60 percent of school districts forecast they’ll have a deficit in the 2014 fiscal year, an increase of more than 10 percent the previous year.

State education officials say the state has underfunded education for the past three years, causing the overall downgrade in financial strength.

* Not to mention this mess

Proposed state rules designed to crack down on sales tax havens are running into heavy fire from key business and tax policy groups — a possible sign that the highly contentious issue is headed back to the Illinois General Assembly.

Both the Illinois Retail Merchants Association and the Taxpayers Federation of Illinois told me that proposed rules issued in the wake of the state Supreme Court’s Hartney decision are still too vague on who owes how much and where.

I hear that a third influential group, the Illinois State Chamber of Commerce, also is prepared to ask for major revisions at a public hearing scheduled next week in Springfield.

The proposed rules were issued by the Illinois Department of Revenue after the high court on Nov. 21 tossed out old rules that the state and agencies such as the Regional Transportation Authority charged had been exploited by firms that established “order acceptance centers” in low-tax jurisdictions including Kankakee and Channahon to avoid paying higher taxes on goods that ended up in Chicago and its metropolitan area.

Taken together, it’s almost too much to fathom.

- Posted by Rich Miller        


29 Comments
  1. - Tweed Jacket - Friday, Mar 14, 14 @ 9:39 am:

    Wait, What? That’s asinine. We have a structural revenue issue that has existed for decades. I would argue since the ConCon and going for a flat instead of a graduated income tax. We’ve had a spending issue since the Cold War between Blago and Madigan. Along with a host of other things. However, a back room deal this was not.


  2. - Wensicia - Friday, Mar 14, 14 @ 9:40 am:

    So much for the increase in income taxes is needed for the schools.


  3. - wordslinger - Friday, Mar 14, 14 @ 9:41 am:

    –Interest payments on Illinois’ late bills cost the state $318 million last year –

    That’s a nice score for some vendors out there. Not everyone has a problem with late bills.


  4. - wordslinger - Friday, Mar 14, 14 @ 9:43 am:

    Frosty, that’s not a theory, that’s a mental illness.


  5. - Mason born - Friday, Mar 14, 14 @ 9:49 am:

    I think we’ve found Rauners 2nd general election commercial. Right behind the 54 million to buy the election.

    I may despise Rauner but it’s not hard to see how his I’m not one of the fools that created this mess schtick is working.

    The hair stands up on the back of my neck when someone says they want to change things but can’t share exactly how they want to change things. I guess we will see how many people can imagine him supporting what hey want to change enough to pull the lever for him.


  6. - VanillaMan - Friday, Mar 14, 14 @ 9:51 am:

    This is not surprising.

    What I see our state leaders doing is hoping that somehow the national economy will return and that the tough choices they don’t want to make, can be avoided.

    The national economy will not be returning for another several years. The Boomers aren’t booming anymore and there are not enough younger people to take up the slack demanded by a growing economy. We’ve all seen this coming since the Boomer generation was first labeled. We all knew that when they began to get gray and retire, our economic ducks would need to be in a row to handle the economic downturn and change. This didn’t happen and time marched onwards, catching us unable to handle this Boomer download.

    I have been amazed at how long Illinois has held onto it’s sacred cows as the rest of the country corralled them into the slaughterhouse. I don’t see any economic cavalry appearing on the horizon to protect us soon enough.

    We can’t keep bleeding hundreds of millions of dollars in unwatched legislator grants. We can’t keep bleeding hundreds of millions of dollars in redundant state programs. We cannot be both Good Samaritans and broke.

    We can be both big - and failing. We’ve seen this happening in Illinois for a long time.


  7. - Cassidy - Friday, Mar 14, 14 @ 9:59 am:

    Blago and Quinn have been responsible for creating this fiscal calamity since they took office in 2003. They made the budgets, borrowed the money and we will all pay for their fiscal folly.

    Everytime I hear Quinn announce some new bike path or grant I cringe. They say its all “Capital Money” so it doesn’t require any current increase in taxes. Borrowed money is borrowed money and it eventually has to be paid back. Companies borrow money to acquire assets to increase the ability to generate revenue. Quinn borrows money for political deals and public announcements.


  8. - Frustrated Voter - Friday, Mar 14, 14 @ 10:04 am:

    Why would anyone desire to be the governor of Illinois right now?


  9. - Demoralized - Friday, Mar 14, 14 @ 10:10 am:

    ==Blago and Quinn have been responsible for creating this fiscal calamity since they took office in 2003==

    They have certainly contributed, but they are not the sole culprits. I wish people could be a little more honest in these thinks and acknowledge that this problem began before they were in office and was aided in no small part by the members of the General Assembly. All parties have contributed to the mess we find ourselves in now. Why can’t we be honest about this stuff?


  10. - wordslinger - Friday, Mar 14, 14 @ 10:10 am:

    –The Boomers aren’t booming anymore and there are not enough younger people to take up the slack demanded by a growing economy.–

    I didn’t know young people were at full employment.

    Also, no one wants to get into the United States to do the heavy work? That’s news, too.


  11. - Demoralized - Friday, Mar 14, 14 @ 10:10 am:

    *things* not thinks


  12. - From the 'Dale to HP - Friday, Mar 14, 14 @ 10:12 am:

    @Cassidy, Blago isn’t innocent by any means but it’s not like the state was in a great financial state in 2002, then Blago was elected and it all went ka-boom. The seeds were planted in the 80s and 90s.


  13. - Frustrated Voter - Friday, Mar 14, 14 @ 10:24 am:

    Which party has been in control of the GA for the past 30 years?


  14. - Mason born - Friday, Mar 14, 14 @ 10:29 am:

    Demo

    – Why can’t we be honest about this stuff?–

    Because that makes it harder to root for your team (i.e. d or r). After all wouldn’t want the blame for the mess hurting my party!!


  15. - Oswego Willy - Friday, Mar 14, 14 @ 10:30 am:

    ===Which party has been in control of the GA for the past 30 years?===

    Republicans held the Illinois Senate for 10 years with President Phillip in the Chair; Speakers Ryan and Daniels, I recall, were Republican Speakers…

    So what was your point?


  16. - Walker - Friday, Mar 14, 14 @ 10:31 am:

    When Holland speaks, people listen.

    Or they should.

    No surprises here for the well-informed.

    We need to restructure income taxes to net more revenue, add services to the sales tax base, reduce growth in pensions, continue to close some institutions, better manage grants and third-party contracts, establish budgets which are not just technically “balanced”, produce annual operating surpluses to pay down late payables and debt, and stop clogging up the legislature with nonsense bills which just build egos and campaign literature. We need to stop talking about fiscal plans which don’t meet a simple arithmetic test.

    All of the above. No trade offs. All of the above.

    When we get in substantially better fiscal shape, (in 5 years?) we can reconsider.

    There are only maybe a dozen people in the entire legislature willing to stand up and do it all, without concern for their own futures. IMHO. Hope I’m wrong.


  17. - PoolGuy - Friday, Mar 14, 14 @ 10:33 am:

    some of these posts match up with general public views, sadly. blame the Gov, no blame the General Assembly. blame Gov Ryan, Blago, Quinn. blame Madigan. blame the Dems. blame the Repubs. no one can agree on anything, so we all blame each other and things get worse. nothing changes this way, ever. ugh…


  18. - Demoralized - Friday, Mar 14, 14 @ 10:42 am:

    ==Which party has been in control of the GA for the past 30 years?==

    Thanks for proving my point. No honesty in this particular debate.


  19. - Mason born - Friday, Mar 14, 14 @ 10:47 am:

    Walker

    Thanks for saying what we all know. The only thing i disagree with is i doubt a dozen are willing to do it.


  20. - Oneman - Friday, Mar 14, 14 @ 11:05 am:

    Walker,

    You are on target. The only catch I put on this is if we go to a progressive system it stays away from being punitive. I realize if it happens my taxes are going to go up more than other folks, I would just rather not take it in the shorts so others can pay less.


  21. - Mason born - Friday, Mar 14, 14 @ 11:32 am:

    Oneman

    The thing that scares me about the Progressive tax isn’t the tax so much but the habits of IL pols. I have seen no reason to think that they wouldn’t simply continue exactly the same way as the last 20+ years. Just hike the higher end every time they don’t get enough cash for their pet projects.

    That was the best part of Walker’s statement all of the above is what is needed.


  22. - Capitol View - Friday, Mar 14, 14 @ 12:58 pm:

    Walker, political courage in addressing our outdated revenue system is harder to find than the Northern Lights in the Springfield sky.


  23. - Pensioner - Friday, Mar 14, 14 @ 1:28 pm:

    Tax increase in the past was not high enough obviously. Politicians took a hit for doing it, should have gotten something in return. Back to square one. On it goes.


  24. - Last Bull Moose - Friday, Mar 14, 14 @ 1:32 pm:

    Voters want more government services than they want to pay for in taxes and fees. For years they have gotten what they wanted.
    Thus far I have seen no proposals that come close to fixing the problem. A radical reshaping of state government is needed and our choices seem to be a pig in a poke or marginal changes.
    Walkers approach is the right attitude. Execution would be brutal. People of good will and character will fight the cuts. Other people of principle will fight the tax increases
    I hope we have enough people who can create and accept imperfect solutions to get us through these difficult times.


  25. - Anon - Friday, Mar 14, 14 @ 2:00 pm:

    On sales tax sourcing, IDOR has come up with impossible vague and uncertain rules. Business rightfully needs and deserves clear rules, not some set of “factors” to weigh in an imprecise way — no business or local government will ever be assured that they has guessed correctly, with both being subject to possible liabilities down the road from second guessing by IDOR. Tax policy needs to be clear, objective and certain…and this set of rules is vague, subjective and uncertain.


  26. - Rod - Friday, Mar 14, 14 @ 3:02 pm:

    Today’s Illinois House Appropriation – Elementary and Secondary Committee held in Chicago discussed some deeply disturbing funding scenarios for K-12 education in Illinois that Rich touched on in his post. The Chicago Public Schools was put under some pressure by chairman Davis and Representative Jeanne Ives to considering calling a referendum (pursuant to 35 ILCS 200/18-185) raise property taxes beyond the PTELL cap. Basically CPS officials at the hearing did not respond.


  27. - Anon. - Friday, Mar 14, 14 @ 3:55 pm:

    ==Business rightfully needs and deserves clear rules, not some set of “factors” to weigh in an imprecise way — no business or local government will ever be assured that they has guessed correctly, with both being subject to possible liabilities down the road from second guessing by IDOR.==

    Tell that to the court that threw out the existing rule.


  28. - Anon - Friday, Mar 14, 14 @ 3:57 pm:

    It’s true that profiles in courage are the smallest caucus in Springfield. Membership grows after each election when lame ducks join the caucus, tho by then it no longer takes much courage.


  29. - Anon - Friday, Mar 14, 14 @ 4:12 pm:

    The Comptroller, the Auditor Gen & the ISBE all describe the lack of adequate revenue in a state that is one of the lowest spenders among the 50 states. Yet
    friends insist there’s only a spending problem insists the rightwing.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Rauner pals give $5 million to Munger
* Question of the day
* SEIU's big error and Madigan's "reign of terror"
* CTBA: Deficit is far higher than both Rauner and COGFA projections
* SUBSCRIBERS ONLY - Update to today’s edition
* *** UPDATED x1 *** Nearly 200,000 kids face new and confusing vaccine rules
* *** UPDATED x1 *** Fair share suit initiated by Rauner dismissed by federal judge
* State's attorneys and their enemies behaving badly
* On the bright side...
* C'mon, the Tribune endorsement makes perfect sense
* Rauner gets way ahead of himself on pension reform claim
* *** UPDATED x1 - Court: Expensive cars can't be seized *** "Every year, police take millions of dollars from ordinary Chicagoans and spend it behind closed doors"
* Is Munger's Rauner money coming soon?
* Report: Tribune relationship with Illinois Policy Institute columnist "under review"
* Kirk not getting Senate super PAC money, won't do some Chicago debates, called "disgraceful" in new TV ad
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Google Hyperdrives to Andromeda, and Blackberry Black-holes | #PNWeekly 220
* iPhone 7 sales expansion happens in three waves through October
* DROID Turbo 2 gets Wi-Fi Calling on Verizon
* French Apple Store smashed by man who felt jilted on warranty
* Android Pay to stop supporting legacy cards from Google Wallet on October 15
* Here’s how you can stop jumping back and forth between Google’s calendar and map apps
* Allo improvements possibly on the way per Google developer

* White Sox win behind Rodon's record-tying start
* Rodon K's 7 to start game, ties AL record
* White Sox win behind Rodon's record-tying start
* Shields to take mound as White Sox face Twins
* Rodon K's 7 to start game, ties AL record
* Rodon K's 7 to start game, ties AL record
* Frazier shows respect to pitchers who get him out

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Crisis pregnancy centers sue governor, Illinois.....
* Crisis pregnancy centers sue governor, Illinois.....
* Munger gets $5M, putting race on track to be No.....
* Munger gets $5M, putting race on track to be No.....
* Munger gets $5M, putting race on track to be No.....


* EXCHANGE: Woodstock resident raising aneurysm awareness
* EXCHANGE: Veteran has PTSD, and desire to help others
* Chicago to redevelop what would have been Olympic Village
* 'Death Wish' remake to cause street closures in Chicago
* Decatur Airport celebrates 70th anniversary at current site
* Prosecutors want crackdown on websites selling illegal sex
* Driver of school bus shot as students look on
* Prosecutors want crackdown on websites selling illegal sex
* Crisis pregnancy centers sue governor, Illinois agencies
* New group to help conserve wilderness areas in 3 states

* Fact check: Kirk ads attacking Duckworth's VA work omit key facts
* WWII vet 'outraged' over being used on local campaign fliers
* Crisis pregnancy centers sue state over abortion-referral requirements
* Fact check: Kirk ads attacking Duckworth's VA work key facts
* Kirk ads attacking Duckworth's work at VA omit key facts
* Federal judge won't reverse ruling on Illinois voter registration
* Rauner's deficit projection $2.4B less than lawmakers'
* Rauner, Democrat lawmakers urge passage of inmate ID bill
* State of Illinois caught up on CWLP bills

* Groupon to turn over workforce data in race discrimination case
* Illinois to suspend Wells Fargo from bond, investing work
* Obscure court case could hold key to schools funding reform
* Homegrown banks grab more market share
* Former U of C Law dean, Neal Gerber founder dies


* Man charged with carjacking, fleeing police in Gresham
* Girl, 17, shot in Back of the Yards
* Man critically wounded in Chatham shooting
* Man shot in Homan Square
* 2 shot in Back of the Yards
* Sox could use overhaul; Williams could move on to higher calling
* Boy, 14, shot in Lawndale
* Bridgeport shooting leaves 1 seriously wounded
* Georgia Nicols horoscopes for Oct. 1, 2016
* Dear Abby: Mean girl bullies my daughter


* Experts offer tips for next debate to Trump, Clinton
* Family protests release of killer who tortured Aurora mom
* School bus driver among 11 wounded in city shootings
* Munster taxpayers wary of schools pursuing a second referendum
* Look how far the Bears have fallen, and they can't seem to get up
* For winless Bears taking on beatable Lions at home, it's a matter of pride
* Quick trip around Major League Baseball
* Paul Sullivan's MLB players awards
* Dino Borrelli explodes for 387 yards, 4 TDs as Brother Rice edges Mount Carmel
* Why the India-Pakistan war over water is so dangerous


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Fact check: Kirk ads attacking Duckworth's VA work omit key facts
* WWII vet 'outraged' over being used on local campaign fliers
* Charles Krauthammer: When facts, logic and history don't matter
* U.S. Attorney Jim Lewis: Community policing is realistic, effective
* Crisis pregnancy centers sue state over abortion-referral requirements
* Fact check: Kirk ads attacking Duckworth's VA work key facts
* Kirk ads attacking Duckworth's work at VA omit key facts
* Federal judge won't reverse ruling on Illinois voter registration
* Rauner's deficit projection $2.4B less than lawmakers'
* Our View: You have no excuse not to vote


* After days in a tree, lucky cat gets professional rescue
* World-wide evangelist visits East Moline
* Religion briefs
* Big numbers for prostate screening
* New parochial school to be built in Herrin
* Anthony Zilis's 2016 Helmet Stickers: Week 6
* Velma Gower
* Robert 'Ribs' Savant
* Jams Douglas
* Kenneth Williams


* Police: New charges for driver, bicyclist partly to blame for own death
* Mega-Hurricane Matthew threatens Jamaica, Haiti, Cuba
* Police: New charges for driver, bicyclist partially to blame for her own death
* Larkin knocks off Streamwood
* Parker leads Sparks in 99-84 rout of Sky; 1 win from Finals

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Sen. Dick Durbin to campaign for Hillary C......

* Kirk ads attacking Duckworth's work at VA ......
* Kirk ads attacking Duckworth omit key fact......

* Pet Blessings In Honor Of St Francis Today and Next Sunday
* Will anyone vote for Gary Johnson just because the Chicago Tribune said to?
* Shadow Congressman
* “The Driver’s Side” – News From The Motorist’s Perspective
* VIDEO: Whole Foods Englewood and Starbucks Grand Opening
* They Got It! Yeah, Baby, They Got It!
* Federal Judge Declines To Stay Ruling On Illinois Same-Day Voter Registration
* Lawsuit: Chicago Cops Pressured McDonald Shooting Witness To 'Forget' What She Saw
* Crisis Pregnancy Centers Sue Illinois Over 'Right Of Conscience' Law
* U.S. Students Continue To Face 'Unacceptable Levels' Of Bullying, Survey Finds


* October is National Cyber Security Awareness Month
* Illinois awarded $1 million grant to pilot person-centered supportive services program - Program will help persons living with or those at high-risk of developing Alzheimer’s and related dementia
* Governor Rauner Urges Action on Bipartisan Legislation to Reduce Recidivism
* Governor Rauner Encourages Illinoisans to Receive Flu Shot
* Honoring Former President and Prime Minister of Israel - United States and Illinois flags at half-staff immediately until Sunset, Friday, September 30, 2016.




      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller