SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Why did they do it this way?

Monday, Jun 2, 2014

* My Crain’s Chicago Business column

The latest state budgetary meltdown got me wondering: Why did the Democrats decide four years ago to allow the income tax hike to expire in the middle of a fiscal year?

The trouble caused by the Jan. 1, 2015, tax hike expiration has been tremendous.

By putting in that particular “sunset date,” state revenues are scheduled to drop almost $2 billion in the second half of the new fiscal year, which starts July 1 and ends June 30, 2015.

To prevent that dramatic loss of revenue, Gov. Pat Quinn proposed in March that the Illinois General Assembly permanently extend the income tax hike. Fellow Democrats House Speaker Michael Madigan and Senate President John Cullerton both publicly agreed.

Trouble is, statehouse tax hikes almost never get passed before an election. Former Republican Gov. Jim Thompson twice pushed for post-election tax hikes, claiming he’d badly misread the fiscal tea leaves while he was campaigning on a solemn pledge to never raise taxes.

And, sure enough, the combination of an off-year election that’s already going to be bad for Democrats and Republican gubernatorial candidate Bruce Rauner’s endless supply of campaign cash has scared the living daylights out of House Democrats. The tax extension idea was dropped.

Instead, the Democrats passed an alternative budget that kicks a very expensive can down the road, blowing a gigantic, multibillion-dollar hole in next year’s budget.

So why did the Democrats lock themselves into such a mess?

Mr. Cullerton told me a few weeks ago that he’d been asking himself that same question.

Go read the whole thing to find out what Cullerton said.

* Meanwhile, Doug Finke

[Gov. Pat Quinn] didn’t get the tax extension, he didn’t get the $500 pre-election checks for property taxpayers (another of his proposals), he didn’t get an increase in the minimum wage (although he’ll get an advisory referendum), there’s no increase in the earned income tax credit, and most of his budgetary priorities went down the drain. He did get a new capital program of sorts, all of $1 billion for roads and bridges.

But like the Chicago Cubs, there’s always next year and the hope it will prove more successful. Except, depending on the November election, this could have been Quinn’s last spring hurrah.

* Umm

“This was a successful session,” the speaker continued. “The governor didn’t get everything he wanted, but that’s the nature of the Legislature. That’s the nature of American government. But going forward, the Democrats will be together because they’ll be brought together by Republicans.”

- Posted by Rich Miller        


9 Comments
  1. - A guy... - Monday, Jun 2, 14 @ 12:10 pm:

    There’s a lesson in logic. There is none.


  2. - 47th Ward - Monday, Jun 2, 14 @ 12:33 pm:

    I think it’s going to be kind of fun watching Governor Rauner beg the General Assembly to raise taxes next year. Even more fun when Durkin and Radogno put 0 votes on it.

    Be careful what you wish for because you just might get it, good and hard.


  3. - wordslinger - Monday, Jun 2, 14 @ 12:38 pm:

    I don’t buy Cullerton’s explanation at all. The idea that these guys didn’t consider the sunset date is silly.

    Who’s going to take the heat when services get cut? It won’t be individual legislators. It will be whoever is governor.

    Whoever is governor in January will want the money from the current tax rates. They’ll have to make it happen. That’s why they got the Big Chair. Book it.


  4. - Formerly Known As... - Monday, Jun 2, 14 @ 12:46 pm:

    Excellent column as usual. I’m with you all the way until the last sentence.

    Any gains made by anyone this session were offset by the negatives. That stretches from the newest and most idle members of both parties who are tarnished by simply being a part of this session, to the Speaker and Party Chairman who could not cobble together an effective budget despite enjoying a supermajority and single-party control of the Senate, House and mansion. Every politician within a 10-mile radius of Springfield was damaged by this weak and ineffective session.


  5. - Mayor Barrett - Monday, Jun 2, 14 @ 1:01 pm:

    Rich,

    Elections should be about a choice of direction. I think it is good that the legislature did not pass legislation making the temporary income tax permanent before we have heard from the voters on Election Day. One gubernatorial candidate has indicated he is in favor of making it permanent/extended and has from now until the election to tell voters what would be cut if it is not extended or made permanent.

    The other gubernatorial candidate has indicated that he is opposed to making the temporary income tax legislation permanent or extended. For several months, if not more, that candidate has also committed to providing the public with the list of draconian cuts to the state budget that would be necessary and that he would recommend and represent as his position going into the election. While that same candidate has not yet fulfilled that commitment, he has from now until the election to stake out his position.

    While I am not in favor of government by referendum California style, the voters win because they get to choose the vision/direction of the state prior to such an important decision being made.

    Barrett Pedersen | President
    Village of Franklin Park | 9500 Belmont Avenue | Franklin Park, Illinois 60131

    P: 847-671-8235 | E: bpedersen@vofp.com


  6. - Norseman - Monday, Jun 2, 14 @ 1:06 pm:

    Like Word, I don’t buy the Cullerton explanation. They knew when they wanted to do. Staff would have asked them about the effective date. I’m sure they regret the decision now after seeing the bad results.

    Also, like Word expressed in a different post. I’m not sure that we’ll see a lame duck tax increase if Rauner gets elected. Madigan and Cullerton will let Rauner stew in his own rhetoric. If tax increases are suggested, they’ll expect the Republicans to do some heavy lifting.


  7. - Mighty M. Mouse - Monday, Jun 2, 14 @ 1:40 pm:

    ===Why did the Democrats decide four years ago to allow the income tax hike to expire in the middle of a fiscal year?===

    Why indeed? A good question, what’s the answer? I don’t think that was the outcome that Gov. Quinn preferred at the time. I think it was the General Assembly that imposed that course of action. Why?


  8. - lovecraft - Monday, Jun 2, 14 @ 5:56 pm:

    It was successful if you define successful as disastrous, and Mike Madigan can define success however he chooses.


  9. - Formerly Known As... - Monday, Jun 2, 14 @ 6:37 pm:

    As a media member recently said so perfectly to Eddie Arruzza on Chicago Tonight

    “And who is the genius in the Democratic Party who decided this should expire on January 1 2015, while you are budgeting right in the middle of campaign season?”


Sorry, comments for this post are now closed.


* *** UPDATED x1 *** Has the haymaker punch arrived?
* SUBSCRIBERS ONLY - State Senate fundraising report
* Third straight poll shows Rauner leading Quinn
* Last call for tickets!
* Vast Majority of Illinois Voters Support Renewable Energy, Energy Efficiency
* Sun-Times reporters want you to sign their petition
* Same song, different century
* Question of the day
* Quinn finally wins a newspaper endorsement!
* SUBSCRIBERS ONLY - Today's cable TV buy report
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, TV ads
* Report: Another tie between Rauner and CS-T chairman
* Bost's "anger," Cook's ratings, Foster's ad
* $580 MILLION EXELON RATE HIKE?? That’s the price tag for their nuke bailout…EVERY YEAR!
* *** UPDATED x1 *** Rauner pumping dollars
* Rauner pushing IDOT back into the news stream
* Gov. Quinn runs new TV ad featuring FLOTUS
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* No, your eyes didn't deceive you
* Good morning!
* 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

          
        * Moto X (2014) Review
        * Monster Strike arrives for North American Android users
        * Etsy releases Credit Card Reader for budding entrepreneurs
        * How to Get 'Handoff' Working in OS X Yosemite and iOS 8
        * AT&T spoils Apple’s multi-carrier SIM by locking it down
        * Apple mum as Mac owners tussle with Yosemite over Wi-Fi problems
        * Apple Pay tops Tim Cook's to-do list in China

        * What Developers Should Know About Apple Pay
        * Here's a List of More Than 30 Free Image Sites That Don't Look Stock-y
        * Sundar Pichai becomes second-in-command at Google with major reorg
        * Roku could file for IPO soon, raise as much as $150 million
        * Find Battery Saving Tips for Almost Any Phone Model with This Index
        * Exclusive: Google CEO Larry Page Reorgs Staff, Anoints Sundar Pichai as New Product Czar
        * The NYPD will give smartphones to its officers, and it looks like they’ll run Windows

        * Alexei Ramirez and Adam Eaton Gold Glove finalists, but maybe not f...
        * Longtime scout Provas passes away after battle with cancer
        * Eaton, Ramirez named AL Gold Glove finalists
        * Gold Glove Awards finalists revealed
        * White Sox AFL class features talented Anderson
        * Nori Aoki: The White Sox Killer of 2014
        * World Series Game 2: Notes and discussion


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

        Archives
        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


        * IL Gov. Quinn Announces WIU-QC Expansion - KWQC 6..
        * Gov. Quinn annouces $3 million investment in Me.....
        * Illinois governor race turns to support of women..
        * Quinn for Illinois TV Ad - Bruce Rauner "Carolyn"..
        * Quinn Announces $5 Million Investment for WIU-Q.....
        * Madigan, Rauner spend big on Illinois House races..
        * Feminist Gloria Steinem endorses Quinn for gove.....
        * How Well Does the Clinton Brand Still Play in t.....


        * Illinois gov's race focuses on women voters
        * Judge rules against Ameren in power line dispute
        * Feminist Steinem endorses Illinois governor
        * Madigan, Rauner spend big on Illinois House races
        * Cockroach visits Chicago's City Council chambers
        * Chicago police to check bags on transit system
        * Toddler taken from family found in Illinois
        * Man, 2-year-old boy killed by truck in Bloomington
        * Off-duty Chicago police officer shot and wounded
        * Illinois employees rescue woman from house fire

        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes

        * Rauner, the reporter, the Sun-Times and 'appearance of impropriety'
        * Chicago police to check bags at CTA stations
        * Shire CEO Ornskov 'dumbfounded' by collapse of AbbVie deal
        * Tests show child in Chicago does not have Ebola
        * Sun-Times reporters to owners: We want answers


        * Back to the past with mayor’s move
        * Illinois needs better way to deal with terminally ill inmates
        * At panel on school closings, board acknowledges more planning needed
        * Marina City residents reminded to watch their step during Wallenda’s walk
        * Republican senators question Quinn’s IDOT scandal response
        * Child who became ill on plane tests negative for Ebola
        * Tollway might permanently lower cost to open I-Pass account
        * Killer gets 27 years for throwing woman out 3rd-floor window
        * CPS wants to delay new standardized test, even though state already has said 'no'
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85


        * FBI searches Chinatown restaurants, at least 2 owned by famed chef Tony Hu
        * Des Plaines man who tried to hire killers to burn wife, friends alive gets 17 years
        * Man charged with DUI in 2013 crash that killed woman, 78, in Aurora
        * Craft brewery on tap for Oak Park?
        * Police to screen CTA train passengers for explosives
        * Former radio host convicted of mortgage fraud
        * Chicago police to check CTA passengers for explosives
        * Police release surveillance photo in Loop armed robberies
        * Englewood 5K race organizers seek to inspire peace and good health


        * Listen to State Week - October 24, 2014
        * 2014 Election Coverage: Citizens, here's your homework!
        * 2 dead, including gunman, in high school shooting
        * Prosecutors want more of indicted police commander’s 'bad acts' in court
        * Prosecutors want more of indicted police commander's 'bad acts' in court
        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin


        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run


        * Blotter
        * St. Jacob trustee calls for investigation over sizzle in former mayor's spending
        * Politics Notebook: Report names Enyart as vulnerable
        * Music will create a 1920s Parisian experience Friday at JALC
        * State Farm wants to test drones
        * Man to prison for heroin case
        * Coroner identifies Caseyville man killed in crash with police car
        * Woman extricated from vehicle after rollover crash near Walcott
        * No tickets issued in crash that led to woman's death
        * McCrady switching roles; set to become new president of EDC


        * Veteran Daily Herald reporter honored as "Best of the Best" by Illinois parks association
        * Pink squad car in Rosemont is all about breast cancer awareness
        * Sunday package delivery:
        * Police: Carpentersville man groped woman, 22, on sidewalk
        * Governor race focuses on female voters

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Republican Senate candidate Oberweis favor......
        * Military immigrant program halted...
        * Military immigrant program halted...
        * Military immigrant program halted...
        * Military immigrant program halted...

        * U.S. Senator Mark Kirk to talk with Triton......

        * Durbin, Oberweis To Debate Tonight
        * First-Time Candidate Seeks GOP Incumbent's Defeat In 20th State House District
        * Mo Khan, Democratic Candidate For 20th District State Representative
        * The College Football Report: Area Police Top Poll
        * The Beachwood Radio Sports Hour #23: It's All Cutler's Fault
        * Durbin, Oberweis debate Tea Party, immigration, veterans, and gay marriage
        * Illinois judicial candidate encounters signature snafu when attempting to vote
        * The latest from the Blue State Cowboys: Plutocrat: The Ballad of Bruce Rauner.
        * Beverley Holden Johns: SB 16. Why so hard to change special ed funding?
        * Forward to IEA Retired members. We are candidates for the IEA Representative Assembly.


        * Rauner rips Quinn on IDOT patronage oversight
        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * Statement from the Illinois Department of Public Health and Chicago Ebola Resource Network
        * Coordinated Care Enrollment Begins In Chicagoland Region




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