Fun with money
Monday, Apr 28, 2014 - Posted by Rich Miller
* So, the question becomes, where the heck does the governor expect to find hundreds of millions or even billions a year to fund this idea?…
Gov. Pat Quinn is offering a possible new solution to Chicago’s pension crisis suggesting the state could do more to share revenue with local municipalities.
Following a City Club of Chicago luncheon today, Quinn told reporters that a discussion needs to happen over giving local municipalities a larger percentage share of the state’s revenue. That means that the percentage of state money Chicago or other muncipalities receive from the state would increase. Quinn said the plan would work through his budget proposal, which called for an extension of a income tax hike as well as a $500 property tax rebate.
“I believe in that. I think that’s a good way to help local units of government and the school districts to some extent reduce their reliance on property taxes,” Quinn said. “That has to be one of our foremost missions in Illinois. The property tax collects more money every year than the income tax and sales tax combined. I want to reduce our property taxes.”
Killing off the $700 million “property tax relief” plan would be a start, but even that may not be enough.
- wordslinger - Monday, Apr 28, 14 @ 2:11 pm:
–…the state could do more to share revenue with local municipalities.–
It could?
Quinn can’t compete with Rauner on phony-baloney budget pipe dreams. He shouldn’t try.
- Norseman - Monday, Apr 28, 14 @ 2:14 pm:
If anyone reading this doesn’t understand why we have a fiscal problem in the State of Illinois, then get yourself a guardian. Candidates and elected officials love to offer up new ideas for programs and services to ingratiate themselves with the voters, but rarely support the funding to pay for them.
- OneMan - Monday, Apr 28, 14 @ 2:18 pm:
Looking forward to Quinn proposal to tax those running for public office who make more than 1,000,000 a year who are not named Madigan plan to pay for this…
- Befuddled - Monday, Apr 28, 14 @ 2:20 pm:
But we can’t afford to operate Murray Center.
- A guy... - Monday, Apr 28, 14 @ 2:20 pm:
Meet your Governor….plop!
- Commonsense in Illinois - Monday, Apr 28, 14 @ 2:22 pm:
I’m heading under my desk now…please let me know when the election is over…
- Formerly Known As... - Monday, Apr 28, 14 @ 2:26 pm:
The “old” math does not add up any longer. Both the media and the public are savvy to this.
Looks like the pols are the last ones to figure this out.
- OneMan - Monday, Apr 28, 14 @ 2:28 pm:
If you cut the slices of pizza differently than before you end up with more pizza…
Take it from a large guy, this totally works….
- RNUG - Monday, Apr 28, 14 @ 2:33 pm:
Quinn has obviously found the jar of magic beans left in the bottom desk drawer by his predecessor …
- VanillaMan - Monday, Apr 28, 14 @ 2:35 pm:
Does anyone working for Quinn have the job of just telling him to stop talking? Whoever had that job, just blew it.
You could almost make out his train of thought - but then the train jumps track, rolls down a mountainside and then explodes into a fire ball the size of our debt.
- OneMan - Monday, Apr 28, 14 @ 2:40 pm:
Dear Governor
It is very simple, government state and local wants to spend X, it takes in via taxes, fees and the like Y.
Right now X is greater than Y and that is a problem, you can increase Y, you can decrease X or you can do both to try and solve the problem.
However how much of Y goes where doesn’t solve anything…
X > Y
You have to fix this, and you can’t fix it without changing the value of either X or Y or both X and Y.
- Formerly Known As... - Monday, Apr 28, 14 @ 2:42 pm:
== He shouldn’t try. ==
After so many decades of experience, Quinn can not help himself. Don’t hold it against him. It’s in his DNA by now.
- Anon - Monday, Apr 28, 14 @ 2:43 pm:
Cash strapped and I bet the Obama Library will be built
- Norseman - Monday, Apr 28, 14 @ 2:45 pm:
OneMan, don’t try to confuse the Governor with story problems. He’s struggling with his work as is.
- stoney - Monday, Apr 28, 14 @ 2:57 pm:
RUNG - Quinn may have found something in the bottom desk drawer of his predecessor but it wasn’t magic beans. Considering he must be living in a separate reality it must have been magic mushrooms.
- Tom Joad - Monday, Apr 28, 14 @ 2:58 pm:
Have schools take more money from local TIF districts. These have been pork barrel projects for 20 years. Just look at the DePaul new stadium, as a start.
- Walter Mitty - Monday, Apr 28, 14 @ 3:05 pm:
He also doubled down on the Obama library… How out of touch…
- Pete - Monday, Apr 28, 14 @ 3:06 pm:
- OneMan -
Y becomes greater that X when the income tax remains at 5%. X will again exceed Y shortly after Nov. 4th.
-Quinn said the plan would work through his budget proposal, which called for an *extension of a income tax hike* as well as a $500 property tax rebate.-
- Anon - Monday, Apr 28, 14 @ 3:24 pm:
Illinois Municipal League Lobby Day is Wednesday…enough said.
- Formerpol - Monday, Apr 28, 14 @ 3:25 pm:
I see a landslide building in November to sweep Quinn out of office. It will not even be close.
That assumes that not every successful person moves out of Illinois by then.
- wordslinger - Monday, Apr 28, 14 @ 3:28 pm:
–That assumes that not every successful person moves out of Illinois by then.–
If they’ve enjoyed success here, why would they move?
- OneMan - Monday, Apr 28, 14 @ 3:33 pm:
Pete –
So basically, he said, I am going to keep revenues about the same (keep the income tax increase) but then reduce your revenues by $700 million (the property tax break)
So again back to the math, X isn’t going down (government spending) but government revenue Y is going to go down…
Still the same problem….
- Formerpol - Monday, Apr 28, 14 @ 3:39 pm:
Word: They are already leaving the North Shore and Lincoln Park in droves for Florida and Texas.I have lost 20 good friends in the last year. Taxes and spending show no signs of moderating under the present ‘leadership’. They all made money despite Illinois recent incompetent government, certainly not because of it.
- wordslinger - Monday, Apr 28, 14 @ 3:44 pm:
Yeah, Lincoln Park and the North Shore are practically ghost towns. That’s why real estate is so cheap.
- I B Strapped - Monday, Apr 28, 14 @ 3:49 pm:
One Man @ 2:40- It’s a good explanation of the problem/solution but could you do it in crayon for Pat?
- RonOglesby - Monday, Apr 28, 14 @ 3:50 pm:
—-
If you cut the slices of pizza differently than before you end up with more pizza…
Take it from a large guy, this totally works….
—–
Thats why I like the square slices over the triangle slices
- From the 'Dale to HP - Monday, Apr 28, 14 @ 3:54 pm:
@Formerpol, hope they realize there is practically no public transportation and the public schools aren’t nearly as good as Illinois down there. Also the summers are terrible. But good on them saving like a seven hundred bucks a year in taxes.
- RonOglesby - Monday, Apr 28, 14 @ 3:57 pm:
@From the ‘Dale to HP
well depends… at 5% someone making 150 or so is probably saving 5-6k or more annually. The question really becomes “is that enough to move out of state?” for lots the answer is no. be acting like its $700 a year minimizes the impact. And of course most of those folks are also reading about the “Fair” tax proposals that could raise their top rate to what? 6 or 7% vs no income tax?
- wordslinger - Monday, Apr 28, 14 @ 4:06 pm:
–They are already leaving the North Shore and Lincoln Park in droves for Florida and Texas.–
Yet median home prices in Lincoln Park are up 14% over last year and 21% on the North Shore/Barrington.
With all those people leaving in droves, you’d think prices would be down.
http://evanston.patch.com/groups/news-from-nsbar-on-evanston-real-estate/p/pricing-is-up-demand-increases-for-homes-on-north-shore
http://www.zillow.com/lincoln-park-chicago-il/home-values/
- From the 'Dale to HP - Monday, Apr 28, 14 @ 4:11 pm:
@RonOglesby, without doing a perfect comparison I still highly doubt it’s $5k, it’s probably closer to $700 than $5k. You also have to factor in property taxes (guessing lower for North Shore, higher for Lincoln Park); sales tax (for sure higher); other fees (I believe higher in FLA, not sure about Texas).
- wordslinger - Monday, Apr 28, 14 @ 4:14 pm:
Formerpol, in case you don’t have time to click the link, here’s the lead from the story on North Shore real estate — one of the area’s you claim people are leaving in droves.
–Supply and demand is no different in the housing market – and definitely not in Barrington and across the North Shore where home inventory is scarce and a buying public is actively seeking to make these two regions their home –and offering top dollar to do so, reports the North Shore-Barrington Association of REALTORS® (NSBAR) in its March housing report release–
- Archimedes - Monday, Apr 28, 14 @ 4:15 pm:
Actually, according to the 2015 budget, the Property Taxpayer Relief Fund is $1.2 billion. Maybe the $700 mil is the amount less the deduction for property tax (so the income tax receipts are higher)?
- RonOglesby - Monday, Apr 28, 14 @ 5:59 pm:
@From the ‘Dale to HP
Already figured mine out. Texas my new home is abt the same size as my current (but on more land) and my property tax bill is about $1400 less a year than today. Sales tax 6.5 in new location vs my current of 8.5. Then my income tax rate (State) drops to 0 which is about 500+ a month for me.
So lets not go with the closer to 700.
- Sue - Monday, Apr 28, 14 @ 6:50 pm:
Too Bad Enron is gone- Quinn have could become its CFO after January 1-Perhaps he will borrow the President’s magic wand which allowed Obama to double count the savings that ACA was to have created based on reduced spending on Medicare- If we need the income tax extended to pay for existing programs how do we suddenly find out Quinn has tons of cash to share with all of our hard pressed municipalities
- dupage dan - Monday, Apr 28, 14 @ 7:21 pm:
Governor Quinn leaves Chicago on the 9:25 am train headed for Springfield at 70mph. His brain leaves Springfield headed for Chicago in a 1978 Yugo at the same time. The question: “at what point do we realize that Quinn is asleep at the wheel?