LIVE session coverage...
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.


* First time for everything: Rauner veto overridden in House
* Rauner does about-face, proposes stopgap budget
* *** LIVE *** Session Coverage
* 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

  
* Here are the official US prices and release dates of the entire Sony Xperia X family
* Sony’s Xperia X smartphones coming to the US this summer
* The Surface Pro 4 is finally worth buying
* Samsung Gear Fit 2 specification leak in full
* Lenovo ZUK Z2 sees daylight with Snapdragon 820, 4GB RAM, $275 price tag
* Tenaa steps forward to confirm 6GB RAM OnePlus 3 variant
* Leaked Honor 8 reportedly features dual 12MP rear cameras and a 2.5D glass rear panel

* White Sox call on Latos to halt 7-game skid
* Quintana excellent, out-dueled by Harvey in opener
* Quintana excellent, outdueled by Harvey in opener
* White Sox are built to last in AL Central race
* After Melky bunt, Frazier takes blame for missed chance
* Quintana excellent, out-dueled by Harvey in opener
* Mets 1, White Sox 0: Matt Harvey's rebound date

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


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

Archives
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


* Rauner Would Veto House Budget Plan ... All Of .....
* Editorial: Budget hopes fading fast..
* Jim Nowlan: GOP accepts top of ticket – Champai.....
* Holiday? Not at Capitol..
* Lawmakers Near Session's End Without State Budg.....
* Lawmakers Override Rauner's Veto Of Chicago Pen.....
* Hope Of Illinois Budget Agreement Before Deadli.....
* Illinois lawmakers near session's end without s.....
* AFSCME falls short again - Champaign/Urbana New.....
* Illinois’ medical marijuana industry getting so.....


* Garland gives commencement address at old high school
* Chicago, private company to turn wastewater into fertilizer
* Police promise more West Side patrols as shootings erupt
* Medical pot advocates cheer Illinois governor's about-face
* Ex-fire chief gets jail time for stealing from department
* 15-year-old girl shot dead on Chicago's Lake Shore Drive
* State warns of toxic algae forming on Illinois lakes, rivers
* Illinois budget chief: 2nd year without deal 'devastating'
* 7-year-old Chicago girl dies in tractor accident
* Illinois budget negotiations appear to be going nowhere

* Another year without a budget? Sure looking that way
* Chicago gets some pension relief as Rauner veto overridden
* Illinois Senate OKs bill to give unpaid leave to sexual abuse victims
* Senate passes bill to reopen State Museum, create fairgrounds foundation
* Chicago pension savings plan OK'd over Rauner veto
* Cullerton: Rauner has to back off 'radical demands' in turnaround agenda
* Chicago mayor, unions praise Senate pension break override
* Illinois House OKs plan to expand medical marijuana program
* Senate overrides veto of Chicago pension break
* Senate overrides veto override of Chicago pension break

* Chicago gets some pension relief as Rauner veto overridden
* Women's work? Nonprofit CFO
* West Loop transformation
* Helping Exelon's at-risk nukes helps everybody
* Here's your chance to buy that empty prison


* Man, teen charged with string of North Side robberies
* Man shot in Fernwood
* Four shot, caught in crossfire in East Garfield Park
* Police: Motorcyclist killed in crash on Lake Shore Drive
* 17-year-old girl shot in South Shore
* Police: Man killed in West Rogers Park shooting
* Georgia Nicols horoscopes for May 31, 2016
* Dear Abby: Guy’s female friend too touchy-feely
* Man, 44, critically wounded in Washington Park shooting
* Man shot in South Shore


* Search for 7-year-old boy abandoned in woods in Japan continues
* Holy Cross Hospital's mental health unit aims for alternative to ERs, jails
* Listen up, people: Blame White Sox players before you blame the manager
* Girl, 13, dies after pulled from Kankakee River, search resumes for brother, 12
* Morning Spin: Rauner makes last-ditch pitch for temporary budget on final day of session
* Memorial Day weekend toll: 69 shot, 6 fatally
* After Cincinnati Zoo kills gorilla to protect toddler, critics attack mother
* Jake Arrieta's dominant stretch: How he got here
* Stephen Curry and record-setting Warriors headed back to NBA Finals
* Trial involving 2 whistleblower cops threatens to expose code of silence


* Another year without a budget? Sure looking that way
* Chicago gets some pension relief as Rauner veto overridden
* Illinois Senate OKs bill to give unpaid leave to sexual abuse victims
* Kathleen Parker: A trump too far?
* Senate passes bill to reopen State Museum, create fairgrounds foundation
* Chicago pension savings plan OK'd over Rauner veto
* Cullerton: Rauner has to back off 'radical demands' in turnaround agenda
* Chicago mayor, unions praise Senate pension break override
* Illinois House OKs plan to expand medical marijuana program
* Senate overrides veto of Chicago pension break


* Podcast: Dana Mancuso Urbana Park District 5/31/16
* UI vet tech in running for national award
* Holiday? Not at Capitol
* Check facts why police in schools
* This day in history, May 31, 2016
* Area history, May 31, 2016
* Faces of '16: Central's Tuan Nguyen
* Illinois protects the transgendered
* AFSCME falls short again
* Journalism department going through changes


* Soccer hooliganism still a threat heading into Euro 2016
* Wal-Mart needs to grow overseas, and China's the big prize
* Should 'tiny houses' be allowed in the suburbs?
* Striking Verizon workers to return Wednesday; deal inked
* Taliban attack buses in north Afghanistan, kill 9, abduct 35

* 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

* Senator Durbin Statement on TSA Security D......

* Defence sales: US Senate may vote to bring......

* Happy Memorial Day Weekend!
* Illinois Lawmakers Override Rauner's Veto Of Chicago Police And Fire Pension Bill
* State House erupts after Democrats pass $7 Bil more in spending and abruptly adjourn
* Cook County Clerk David Orr celebrates 9500 same sex marriage mark
* Thorner: 2016 IL GOP Convention observations
* Random thoughts. $25,000 a year health care tax.
* Teachers (Ted Sizer).
* Without tax breaks for the rich and the anti-union Turnaround agenda will people leave Illinois?
* Call Springfield today. Oppose SB231 and HB 3190.
* Norwood Park observes Memorial Day


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller