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.


* Unions file suit in St. Clair County
* Reader comments closed for the holiday weekend
* AG Madigan files TRO
* In re James Dimas
* Question of the day
* Weirdest. Oppo Dump. Ever.
* Big bucks reported by Zopp, Raja
* LIVE Comptroller Munger press conference coverage
* Yet another clock starts ticking down
* Hey, Cardinal fans...
* Rauner makes cheery visit to Illinois State Museum
* The Tier 2 difference
* *** UPDATED x4 *** Attorney General goes to court
* Credit Unions – Protecting Financial Futures
* GOP legislator wants "temporary, balanced budget"
* Food for thought
* The blame game
* Meanwhile, in the real world...
* When Indiana invaded Illinois
* 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

          
        * Collaborate, organize 3D designs with Fusion 360
        * Watch YouTube videos on your Android Wear with new app
        * Google Chrome hits 1 billion downloads on the Play Store
        * The LG Nexus 5 (2015) will not be based on the G4
        * LG G2 to reportedly receive an update to Android 5.1.1 Lollipop
        * Dropbox to offer more free storage if users improve their account security
        * Upcoming Samsung Galaxy A8 appears in South Korean brochure

        * Geeky Gadgets Deals Of The Week
        * Happy Independence Day From Re/code: Here Are Some Patriotic GIFs!
        * Pinterest Buyable Pins: This Week in Social Media
        * Check Out The Latest High-End Gaming PC From iiyama
        * Take Stunning Full HD Video With JVC’s Latest Quad Proof Full HD Camcorder
        * Volvo Want To Make Cars Safer For Kids
        * Japanese Court Orders Google To Scrub Records On Man’s Arrest

        * Danks backs up comments with strong outing
        * Abreu's HR all Danks needs against Orioles
        * White Sox 1, Orioles 0: John Danks, out of nowhere
        * Samardzija takes on Orioles in holiday matinee
        * Abreu's HR all Danks needs against Orioles
        * White Sox sign first-round pick Fulmer
        * Sale given extra day of rest, will face Buehrle

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


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

        Archives
        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


        * Illinois mired in uncertainty over budget - Voc.....
        * Bill would allow cameras in Illinois nursing ho.....


        * Illinois city condemns childhood home of actor Dick Van Dyke
        * Bill would allow cameras in Illinois nursing homes
        * Sandbagging effort keeps floodwater at bay in Meredosia
        * Woman known for trying to sneak on planes released from jail
        * Danville condemns childhood home of actor Dick Van Dyke
        * Thousands truckin' to Chicago for final Grateful Dead shows
        * 8 shot even as Chicago officers work long hours over holiday
        * Could insulin pills prevent diabetes? Big study seeks answer
        * Without a budget, providers prepare, officials go to court
        * Union lawsuit seek full pay despite no Illinois budget

        * Bill would allow cameras in Illinois nursing homes
        * State employee lawsuit seeks assurance of full pay despite no budget
        * U of I freezes administration hiring over budget
        * Attorney General Lisa Madigan seeks court ruling on state payments during budget impasse
        * Illinois EPA: State has landfill capacity for 21 more years
        * State lawmakers point fingers over budget impasse; temporary budget in limbo
        * Former Illinois treasurer employees under Dan Rutherford sue over firings
        * Lawmakers point fingers over budget impasse; temporary budget in limbo
        * Illinois medical marijuana patients now number 2,600
        * Budget impasse shuts down Lincoln's Challenge program for troubled youths

        * Leo Burnett loses Special K
        * Aetna to buy Humana in $37 billion deal
        * Illinois weathers second day without state budget
        * Yelp calls off sale talks—for now
        * How a Reddit rally generated huge turnout for Sanders in Madison


          * 2 teenagers hurt in gang-related crash in Logan Square
          * 4 dead, 10 wounded in Chicago as July 4th weekend begins
          * 1 killed, 5 wounded in shootings
          * Chicago police officers sue over tattoo cover-up rule
          * City pays $1.2 million in penalties to paramedics
          * Madigan is face of Democrats in battle with Rauner
          * Pilot killed after crashing small plane in DuPage Forest Preserve in Bartlett
          * Mayor Emanuel faces tough trek toward 'grand bargain' for shoring up CPS


          * Coping while black: A season of traumatic news takes a psychological toll
          * Rauner proposal would advance $450M to help Chicago schools
          * For same-sex marriage opponents, the fight is far from over
          * Emails show Emanuel, top officials aware of Clinton's private address
          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions


          * Kenny Hartman: EPA stifling input on renewable fuel changes
          * Bill would allow cameras in Illinois nursing homes
          * Charles Krauthammer: The worst agreement in U.S. diplomatic history
          * State employee lawsuit seeks assurance of full pay despite no budget
          * Our Opinion: Springfield's toilet paper caper exposes the worst and best in people
          * Esther Cepeda: Adding a woman to $10 bill an empty gesture
          * U of I freezes administration hiring over budget
          * Attorney General Lisa Madigan seeks court ruling on state payments during budget impasse
          * Illinois EPA: State has landfill capacity for 21 more years
          * Our Opinion: Winslow looks to heal divisions


          * Nicor upgrade program starting soon in Bloomington
          * Founding Fathers would be disappointed
          * Landmark status sought for new Papa Del's location
          * UI credit union makes plans for helping state workers
          * Area fireworks shows ready to explode tonight
          * Weekend planner: Mahomet fest on the 5th
          * What others are saying about ... a notable woman
          * Willard exec search next step for task force
          * Old items don't go to waste
          * 'Knee-high by the 4th' an anachronism


          * Egypt marks 2nd anniversary of Islamist ouster with mourning
          * APNewsBreak: Tentative agreement on Iran sanctions relief
          * UN nuke chief says Iran probe could be done by year's end
          * The Latest: Dustin Brown back on court at Wimbledon
          * Portuguese soccer great Eusebio honored at national pantheon

          * 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

          * Durbin, Kirk working together on U.S. atto......

          * Durbin, Kirk working together on U.S. atto......

          * John Fitzgerald Lyke, Jr. appointed to Biebel vacancy
          * Thorner: Judicial activism prevails on the cusp of Independence Day
          * Happy 4th of July
          * Superheroes Meet Superkids
          * The Week In Chicago Rock
          * Rahm has gone from the F word to the B word.
          * The NEA RA rolls into its first day with a focus on race and racism.
          * Geek Gets Up Early Saturday Morning for WGN Radio 720 AM
          * Parking Patrons Risk Boot At Wilmette Dairy Queen
          * Will we have a state government ‘shutdown’ where nothing shuts down?


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report




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