SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
The cost of corruption

Tuesday, Jul 15, 2014

* A new study on public corruption and state spending started out with five hypotheses

Hypothesis 1: All other things being equal, states with higher levels of public officials’ corruption are likely to have larger total expenditures.

Hypothesis 2: All other things being equal, states with higher levels of public officials’ corruption are likely to spend more on items that may provide a larger rent to corrupt officials, such as capital, construction, and highways

Hypothesis 3: All other things being equal, states with higher levels of public officials’ corruption are likely to spend more on items that may provide larger benefits to corrupt officials. This predicts that debt financing and expenditures on total wages and salaries will become larger in a more corrupt state.

Hypothesis 4: All other things being equal, states with higher levels of public officials’ corruption are likely to spend less on items that provide fewer opportunities for corrupt officials to collect bribes, such as education, welfare, health, and hospitals.

I’d quibble with some of that, particularly that last part. Rod Blagojevich tried to shake down a children’s hospital for a huge campaign contribution, for example.

* But it played out pretty well for the researchers in the end. As the Times of Indiana reports

Spending comparisons between highly corrupt Illinois and Indiana, which placed in the middle tier of corrupt states, seem to bear out the researchers’ conclusions.

In 2013, Illinois spent $932.47 per person more than Indiana, according to the National Association of State Budget Officers. At the same time, Indiana spent more than twice as much from its general fund on education than Illinois.

Illinois lawmakers this year approved a $1.1 billion “mini” capital spending program for road and bridge construction throughout the state. It follows a $31 billion construction spending plan approved in 2009.

Meanwhile, Hoosier legislators have resisted borrowing money to fund state construction programs and this year paid cash for new university buildings and some road projects.

- Posted by Rich Miller        


12 Comments
  1. - Illiana - Tuesday, Jul 15, 14 @ 2:06 pm:

    Perhaps we should pass a rule that says any state spending on road construction can only come from motor fuel taxes. If it is possible, I might even take it a step further & demand that it be spent in the same IDOT district as where the retail purchase of the fuel occurred.


  2. - Been There - Tuesday, Jul 15, 14 @ 2:11 pm:

    ===In 2013, Illinois spent $932.47 per person more than Indiana===
    A little apples to oranges here. Indiana municipalities and counties have an income tax. Those funds don’t show up in Indiana’s financials. Illinois gives a percent of the sales tax to the locals so those funds do show up as revenues and expense to Illinois. There are other comparisons but that jumped out to me why you can’t just look at raw numbers.


  3. - Illiana - Tuesday, Jul 15, 14 @ 2:16 pm:

    Re: Been There’s comment

    As diverse as this state is we should give the locals much more room to choose how they want to generate the revenue they need, including allowing locals to have their own income tax instead of requiring everyone in the state pay the same state rate.


  4. - John A Logan - Tuesday, Jul 15, 14 @ 2:17 pm:

    Not surprising.


  5. - steve schnorf - Tuesday, Jul 15, 14 @ 2:27 pm:

    It’s almost hard to start with such crap, but
    Illinois is a much wealthier state than Indiana, no surprise we spend more
    Illinois schools are funded primarily thru local property taxes, no surprise we don’t spend as much at the state level
    The state tax burden in Illinois is lower than in Indiana
    Illinois has fewer employees per capita than Indiana
    etc.


  6. - wordslinger - Tuesday, Jul 15, 14 @ 2:34 pm:

    Meh, little too dorm room for me.

    I’ve seen “studies” that claim Mississippi and Louisiana are the most corrupt states in the Union, and they don’t spend anything on anything.


  7. - Try-4-Truth - Tuesday, Jul 15, 14 @ 2:35 pm:

    Correlation is not causation. I don’t think the study addresses why Illinoisans spend more per person.


  8. - Lil Squeezy - Tuesday, Jul 15, 14 @ 3:03 pm:

    Its not uncommon for Indiana to have to close highways during winter storms. Happened quite a few times this winter. Just one small example of a difference in services provided.

    Indiana unemployment benefits are much lower. Just one example of a difference in protection/dignity provided to its citizens.

    We could go all day with this one.


  9. - Shark Sandwich - Tuesday, Jul 15, 14 @ 3:38 pm:

    I’ll take my turn throwing the researchers under the ceterus parabus…
    Neat as an exercise, but ultimately meaningless. ‘Most corrupt’ based on federal convictions is flawed. You can be corrupt and not get caught, and still cost money; and that’s all before you get into whether or not they properly compared the way states run their revenue and spending. Vermont has a population on par with Lake County, it’s not just per capita, there is also geography, gdp for a state, etc.


  10. - Formerly Known As... - Tuesday, Jul 15, 14 @ 5:24 pm:

    The “mini” capital spending bill seemed like a flawed idea at the time and remains so, imho.


  11. - Formerly Known As... - Tuesday, Jul 15, 14 @ 5:40 pm:

    == At the same time, Indiana spent more than twice as much from its general fund on education than Illinois. ==

    And while I appreciate the very real and important nuances Steve Schnorf brings up, I still find this disturbing. It’s too bad the entire original study is behind a paywall, since it seems to be getting some attention in media outlets around the country.


  12. - no clever name - Wednesday, Jul 16, 14 @ 9:37 pm:

    A couple of things regarding a few of the criticisms here:

    1(been there/steve): It does appear that the authors attempt to control for fiscal centralization (state spending/state+local spending). I would think this would account for differences in local government responsibilities across state lines.

    2(wordslinger): The authors also control for ideology of both state legislators and citizens which might account for why states like Louisiana and Mississippi have low levels of public spending despite high levels of corruption.

    3(steve): The authors do expect spending to increase with personal income, so they control for that as well.

    4(Shark): A perfectly valid argument about the use of convictions. I’m not sure what I make of their justifications. It might be interesting to see if the results would change if they used perceived corruption, but if they are highly correlated as they claim, it might not change the results much.

    5(Rich): In regards to hypothesis 4, I don’t think they are saying that politicians can’t engage in corrupt activities in these areas, just that it won’t increase spending in these areas in the same way as other areas. Let’s say official X wishes to extract a certain amount personal benefit from their position. I would guess that X starts by looking for the path of least resistance. If X finds this effective, they would likely push for more spending in this area. There might well be more risk in extracting a bribe in one area of government than in another. I would think it to be perfectly plausible for corrupt officials to respond to the risk/reward calculation.

    All in all, I don’t think their findings are too shocking. Why wouldn’t an official looking to benefit from corruption try to increase opportunities for additional corruption by increasing the budget for activities particularly susceptible to corruption?


Sorry, comments for this post are now closed.


* Long list of appointments by Gov. Rauner
* Question of the day
* *** UPDATED x1 *** The Democrats' budget time bomb is starting to explode
* State threatens to zap all Chicago GSA school funding
* Another optics problem
* This is why we can't have nice things
* Tiny, secluded county wants no part of ATV plan
* It's just a bill
* Feds drop drug conspiracy charges
* Governing ain't easy
* 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

          
        * Microsoft DT-903 review: wireless charging is brighter than ever (Video)
        * HTC fesses up to missing 90-day Lollipop update target for One M8, One M7
        * Level Up! Heroes of Might & Magic III HD, OUYA, and cats
        * Get exclusive discounts on cool new tech from CES 2015, plus 96% off lifetime subscription to OSTraining
        * Cell-enabled Nexus 7 tablets finally get access to Android Lollipop
        * Qantas in-flight lounge goes 3D courtesy of Samsung Gear VR
        * Google brings Now support to third-party apps

        * Snapchat to premiere original series starring Sasha Spielberg
        * Uber and Lyft may have to treat their drivers as employees, judge says
        * AOL Promotes Bob Lord in Ad Reorg (Like Re/code Said)
        * Uber Probed by U.S. Judge on Driver Benefits
        * Apple Pay Has Competition Scrambling To Make Acquisitions Of Similar Services [Rumor]
        * Apple Asking Developers For Apple Watch Compatible Apps To Be Ready By Mid-Feb
        * Vine Launches Kid-Friendly Version Of Its App

        * Rodon leads White Sox trio on list of Top 100 Prospects
        * Inbox: How will new-look Sox lineup affect Abreu?
        * Keith Law likes the White Sox (more than PECOTA does, anyway)
        * Which prospects will make the Top 100 cut?
        * White Sox embrace their position as favorites
        * White Sox embrace position as contenders
        * What else is returning with Gordon Beckham?

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


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

        Archives
        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


        * Chicago says farewell, thanks to beloved Mr. Cub..
        * Long list of appointments by Gov. Rauner..
        * Another optics problem..
        * Gov. Abbott declares Feb. 2 'Chris Kyle Day' in.....
        * Underfunded childcare assistance program could .....
        * Gov. Rauner: Quinn to Blame for Medical Marijua.....
        * New DNR director hopes to make 'better use' of .....
        * Rauner uses payroll shuffle to hide office costs..
        * Ernie Banks memorial service and procession det.....


        * Pair sentenced to prison for $665 million financial fraud
        * Gov. Bruce Rauner defends paying staff more than Quinn
        * Illinois threaten to withhold funds if district don't test
        * Cardinal George: Doctors have 'run out of tricks' for him
        * Cullerton: More information needed on high Rauner salaries
        * Pro wrestler cheats at Wing Bowl, hides food in fanny pack
        * Chicago suburb to honor Harold Ramis during Groundhog Days
        * Crundwell court filing says she wants to keep horse trophies
        * SIU student newspaper bids farewell to old printing press
        * AbbVie reports better-than-expected 4Q on Humira sales

        * Bill to ban pure caffeine introduced in General Assembly
        * Rauner defends paying staff more than Quinn did
        * Local lawmakers named to paid committee positions
        * Decision looms on ATV facility in western Illinois park
        * 'Right to Try' bill would give access to experimental drugs
        * Top Rauner staff receiving higher pay than Quinn's
        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Rauner staff receiving higher pay than Quinn's
        * New DNR director Rosenthal touts experience
        * Rauner wants bureaucratic cuts in education, elsewhere

        * Rauner defends paying staff more than Quinn
        * Are a policy wonk and a former NFL player ready for 2016?
        * McDonald's Super Bowl ad announces free food after CEO change
        * Free food for 'lovin': McDonald's shows off new strategy in Super Bowl ad
        * University of Chicago nurses authorize one-day strike


          * Cardinal George says doctors have 'run out of tricks' for him
          * Man charged in West Pullman fatal shooting
          * OSHA to investigate after worker, 45, dies in construction accident
          * 1 dead, 3 injured in separate South Side attacks
          * Man who taught in Wilmington charged with having sex with student
          * Judge allows videotaped police interview for Highland Park murder trial
          * McHenry man convicted of child sex assault skips sentencing
          * Man who crashed into school while fleeing police sent to prison
          * Plainfield woman charged after $17,000 goes missing from Scout troop account
          * State schools will investigate after-hours bullying


          * Springfield Attorney Picked To Chair Illinois Gaming Board
          * Up To 8 Inches Of Snow Forecast For Springfield Area
          * Could Rauner's Spending Hold Derail New Train Routes?
          * Listen to State Week - January 30, 2015
          * Rauner Staff Receiving Higher Pay Than Quinn's
          * Rauner Defends Higher Staff Salaries
          * Unmasking Ernie Banks
          * Guzzardi Wants Parents To Be Able To Opt Kids Out Of Testing
          * National Weather Service Latest Snow Projections
          * Rauner Tells U Of I To Cut Bureaucracy


          * In My View: Remembering Mary Lou "Smokey" Schneider
          * Charles Krauthammer: Auschwitz, today
          * Bill to ban pure caffeine introduced in General Assembly
          * Rauner defends paying staff more than Quinn did
          * Local lawmakers named to paid committee positions
          * Decision looms on ATV facility in western Illinois park
          * 'Right to Try' bill would give access to experimental drugs
          * Our Opinion: Residency not the best gauge of loyalty
          * Cary Collins: Other options for fixing Illinois' pension problems
          * E.J. Dionne: For the Patriots, without apology


          * SportsTalk 01-30-15
          * HS Boy's Basketball: Central vs. Urbana
          * PODCAST: Urbana at Champaign Central 1-30-15
          * Big Ten basketball update: Tough watching this week
          * Groce ready for Illini to get 'ridiculous' again
          * PODCAST: Champaign Central coach Sergio McClain
          * MBB preview: Say hello to the Nittany Lions
          * Snowy weekend on tap for East Central Illinois
          * Winter storm bears down on Q-C area
          * Super Sunday: Q-C chefs go for the culinary championship


          * Naperville Central waits out Glenbard North
          * Big scores downstate for boys bowling tourney hopefuls
          * Geneva's height keeps West Chicago down
          * Jacobs in good position to win first FVC crown
          * Images: Wheaton Warrenville South vs. Wheaton North, boys basketball

          * Lipinski: There's still a lot of work left...
          * Rep. Lipinski Protects the Paychecks of Pa...
          * Rep. Aaron Schock's amendment seeks priori...
          * Is Rep. Aaron Schock addicted to taking se...
          * Lemont HS Student Among Rep. Lipinski's Pi...
          * Rep. Lipinski Announces Service Academy No...
          * Rep. Lipinski Recognizes and Celebrates Na...
          * Kinzinger, Lipinski Offer GOP-Democrat Uni...
          * Chicago March for Life doubles attendance ...
          * Archbishop Blase Cupich, Congressmen Dan L...

          * Hundreds say goodbye to 'Mr. Cub' at Ernie......
          * Mr. Cub gone but never forgotten...
          * "Environment Secretary Elizabeth Truss sai......
          * The Republican Congress Meets Reality...

          * Obama Has Given Iranians “80 Percent of Wh......
          * Are a policy wonk and a former NFL player ......

          * Was Abolitionism a Failure?
          * Video Gambling Revenue In Illinois More Than Doubles In 2014
          * Illinois Ranks Poorly On Well-Being Indicators; African-American Jobless Rate
          * Lee Talley: The Illinois Manufacturer’s Association and Bruce Rauner’s Right-to-Work-for-Less Zones.
          * TRS’s Dave Urbanek explains the problem with Rauner’s pension Plan B.
          * Study: Several U.S. Corporations 'Fleecing' Uncle Sam, Spending More On CEOs
          * O'Hare Catering Workers Kick Off 'Nickel A Ticket' Affordable Health Care Campaign
          * Panel Calls For Reforms To 'Oppressive' Chicago Taxi Regulations
          * Taxi cab
          * Emanuel's Campaign War Chest Grows By $800,000 In Single Week


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




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