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.


* 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

          
        * Android Wear update comes to LG G Watch
        * How to fix the four most annoying quirks of Yosemite
        * 6 easy ways to show off your best photos
        * Amazon accepting pre-orders for HTC accessories for Nexus 9
        * Review: Photoshop Elements 13 gets Photomerge and content-aware fill
        * Sony sales target lowered once again
        * SensorCore and Lumia: My Experience

        * Microsoft Windows 10 Technical Preview Update Released
        * Sony A7000 Could Be The NEX-7′s Successor [Rumor]
        * Congress Shuts Down FBI Director’s Decryption Law Proposal
        * Raspberry Pi Touch Screen Unveiled By Eben Upton (video)
        * Touching Story Reveals How Siri Came To Be An Autistic Boy’s Best Friend
        * What Are Some Things That Are Legal, But People Think Are Illegal?
        * Alpine Headphones Literally Let You Feel The Music (video)

        * 23 potential MLB free agents as SkyMall items
        * World Series Game 1: Notes and discussion
        * The e-gus off-season plan
        * Reading Room: A wild card of a World Series
        * Following same path as '59 White Sox, KC eyes title
        * larry's Offseason Plan
        * Abreu wins Sporting News' AL Rookie of the Year honors


        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


        * Haine calls on Gov. Quinn to deny clemency to c.....
        * Attorneys due in court for Quinn hiring lawsuit.....
        * Attorneys expected in court for lawsuit over hi.....
        * Gov. Quinn announces almost $1M in funds for Pa.....
        * A ‘Closing Argument,’ Brought to You by the Koc.....
        * Only a Few 2014 Legislative Races Are Competitive..
        * The Clintons, the Democrats' 2014 super surrogates..
        * Illinois' top educator: Funding problems to remain..


        * Self, Weber expected at Wayne McClain funeral
        * Durbin, Oberweis to meet in 1st US Senate debate
        * Attorneys due in court for Quinn hiring lawsuit
        * Vice President Joe Biden to campaign in Illinois
        * Man convicted in officer's killings paroled
        * No trick: Across US, Halloween bumped for football
        * Family, friends remember women slain in Indiana
        * Indiana man was violent long before 7 killings
        * Family, friends remember women slain in Indiana
        * Indiana man was violent long before 7 killings

        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight
        * U of I sees turning point as election nears
        * Chicago Sun-Times endorses Rauner for governor
        * Sun-Times, Belleville, Champaign, Peoria newspapers endorse Rauner for governor
        * Bill Clinton to address workers at pro-Quinn rally
        * Body camera use concerns Illinois police officers

        * What's next for Tribune, Sun-Times in burb paper deal
        * Chicago heating bills will be significantly lower (if winter cooperates)
        * Chicago heating bills will be far lower (if winter cooperates)
        * Walgreen seeks to seal parts of former CFO's lawsuit
        * Big-biz group a big Mike Madigan donor


        * Sparse crowd at CPS HQ before Board of Ed vote on Hancock school
        * Indiana officials identify fourth body found after arrest of suspected serial killer
        * Jail guard smuggled weed in sandwiches, feds say
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Back to the past with mayor’s move
        * Court officials suggest ISIS wannabe could be released from jail on bond
        * Tentative deal at U of I hospital averts threatened nurses’ strike, union says
        * Unemployment rates fall in 31 states, including Illinois
        * Dr. Lawrence Solomon: Renowned dermatologist, book collector loved a mystery
        * Emanuel’s cable tax hike to cost average consumer $28.80 a year


        * Fire fighters battle blaze in Logan Square
        * Woman killed in Park Manor car crash
        * Two injured in Warrenville car crash
        * Public weighs in on Museum Campus plan
        * Waukegan schools remain closed Wednesday
        * 2 from Liberia screened for Ebola in Chicago after falling ill
        * At least 5 people wounded in shootings since Tuesday evening
        * Man dies 5 months after Southwest Side shooting
        * Naperville police ask for help locating "person of interest"
        * Inquiry broadens into suspect in Indiana serial killings


        * Business Report: Former Restaurant Near Statehouse Up For Auction; Downtown Springfield Inc. Update
        * 13th Dist. Candidates Talk NAFTA, Ebola During Springfield Debate
        * Lincoln Legacy Lecture Series To Focus On "Lincoln's Funeral"
        * Small Campaign Contributions Amount To Chump Change
        * Civic Fed: Lawmakers Once Again Taking Illinois Down Bad Budget Path
        * Cheddar's Leaves Springfield WUIS-SJR Business Report
        * Area Cub Scouts Burned In Explosion
        * Notes On The Final Governor Debate
        * Task Force Hopes To Help Turn Students Into Good Citizens
        * Digging up the history of a Civil War camp on Chicago's South Side


        * Our Opinion: Choice for Illinois comptroller comes down to experience
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Joanna McQuillan Weeks: Cheese balls deserve more respect
        * Our Opinion: White, Madigan for another term
        * Quinn, Rauner spar over jobs, taxes
        * Our Opinion: Say yes to Magro’s project
        * John Schick: Letter confirmed aggression toward bicyclists
        * Election 2014: Learn about all the candidates
        * U of I sees turning point as election nears


        * Photographic memories
        * Off the beat: Band’s tour bus ransacked outside popular St. Louis restaurant
        * Upcoming Services (Oct. 22, 2014)
        * Area Calendar 10/22/14
        * A preview of Randolph County election races
        * Race preview: 15th Congressional district
        * Candidate interview: John Shimkus
        * Candidate interview: Eric Thorsland
        * Top of the Morning, Oct. 22, 2014
        * Reservations due for Palms dinner programs


        * Women from Arlington Heights, Elk Grove Village, Geneva and Wheaton to compete in Cook of the Week Challenge cook-off
        * Dawn Patrol: 2 passengers into O'Hare monitored; Biden in Vernon Hills
        * Improvements coming to Lombard Prairie Path crossing
        * Durbin, Oberweis interested in finding O'Hare noise solutions
        * Two historic downtown Des Plaines buildings up for auction

        * 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...

        * Defense firms prefer GOP, but spread campa......
        * Early voting; HRC scores congress; alderma......
        * Early voting; HRC scores congress; alderma......
        * Senate Candidates to Debate...
        * Senate Candidates to Debate...

        * Online Marketplace for Sex Led Indiana Ser......
        * Alleged Serial Killer Used Online Advertis......
        * Chicago Innovation Exchange opens flagship......

        * Pumpkin Carving Contest At Buena Beach Bar & Grill This Thursday
        * Early Voting Taking Place Now
        * Rauner’s Neely talk not as first seems
        * Because it was awesome.
        * Waukegan’s school board president speaks. Crazy talk.
        * New Bost ad hits Illinois 12th Congressional District [video]
        * Batinick says Dunn's desperate campaign charges are "ridiculous"
        * Topinka says reducing income tax would cause a heart attack to the state
        * Early Voting Halted in Winnebago County, Illinois Due to Ballot Mistake
        * Illinois Supreme Court Candidate Exposes Members of Shadowy Political Group


        * New TV Ad: Endorsed
        * Governor Quinn Statement on Positive Economic News - Illinois Led the Midwest in Job Creation in September and Had Second Best Growth in Nation; Unemployment Rate Has Dropped More Than Any Other State in the Last Year
        * Rauner Campaign Statement on Final Debate
        * What They’re Saying About Pat Quinn
        * What They’re Saying About Bruce Rauner




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