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.


* *** UPDATED x1 - Cullerton optimistic but firm *** Rauner slams Madigan for refusing to put forward a budget, wanting a tax hike, stalling to force a crisis
* SUBSCRIBERS ONLY - Leaders meeting notes
* *** UPDATED x2 - AFSCME responds to TRO - Rauner admin blasts AFSCME's "hand-picked judge" *** Judge issues TRO in AFSCME contract case
* *** LIVE *** Leaders meeting coverage
* Question of the day: Golden Horseshoe Awards
* Poll: Illinois crime victims want less prison spending, more education, rehab and mental health/drug treatment
* Report: White Sox trade Sale
* Could a Kentucky case spur local "right to work" in Illinois?
* A bill so nice, he's signing it twice
* *** UPDATED x2 - Radogno responds - GOMB responds *** Harris wants budget working group reinstated
* There are only two "sides" to pick from
* Because being governor apparently isn't enough work
* Yingling's second inartful Madigan dodge
* It's time to start taking this threat seriously
* "Personal economic coercion" harshly denounced
* Emanuel wants Rauner to publicly side with him on sanctuary cities issue
* 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

  
* Apple blames ‘ambient air’ for unexpected iPhone 6s shutdowns, still looking into some complaints
* Verizon Galaxy S7 Nougat beta ends before rest of the world
* Pandora Previews Apple Music and Spotify Competitor 'Premium'
* Huawei’s Android Nougat to debut on P9, Mate 8 today in China
* Square's 'Cash Virtual Card' Now Works With Apple Pay
* US and Canada get official rollout of 4K Google Play Movies
* Apple Names Best Music, Movies, TV Shows, Podcasts, and Books of 2016

* Sale expresses appreciation for White Sox fans
* With Sale gone, White Sox ponder more moves
* Winter Meetings interview with Rick Hahn
* Sale's changing Sox send ripple effect
* Sale's changing Sox send ripple effect
* With Moncada trade, White Sox rebuild underway
* White Sox get Moncada, 3 others for Sale

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


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

Archives
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
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


* Rauner moving on home care OT rules - Hiawatha .....
* Rauner moving on home care OT rules - KPVI News 6..
* Rauner moving on home care OT rules - Herald & .....
* Illinois budget still elusive as leaders lash o.....
* Automatic Voter Registration Last Chance? - Alt.....
* ComEd, Exelon Generation and governor reach agr.....
* Illinois budget still elusive as leaders lash o.....


* EXCHANGE: Flower power prunes adversity for Decatur couple
* Friends remember Rashaan Salaam as more than a football star
* Illinois nurse sentenced for taking drugs meant for patients
* Farmers in Illinois donate portions of crops to charities
* Chicago launches task force to coordinate immigrant services
* Chicago DMV instructor charged with sexually abusing woman
* Honorary Trump street signs removed from downtown Chicago
* Illinois budget still elusive as leaders lash out
* Democrats: McConnell fix for miners' health care inadequate
* Pipeline opponents ride out storm in shelters, casino

* Judge blocks administration from imposing contract on AFSCME
* State budget still elusive as leaders lash out
* Illinois budget still elusive as leaders lash out
* Killer of former central Illinois man sentenced to probation
* Prosecutors: Don't move Aaron Schock trial out of Springfield
* Mendoza on state's financial crisis: 'We're going to get out of this'
* State employee's friends, coworkers rally after stroke
* Labor board formalizes AFSCME ruling; union will fight
* Mendoza sworn in as Illinois comptroller
* Another year of financial uncertainty looms for Illinois

* Hard to keep track of all the rate hikes: ComEd wins one for 2017
* Supreme Court upholds Katrina fraud verdict against State Farm
* Chicago hip-hop artist Chance just nabbed 7 Grammy nominations
* Caesars bankruptcy deal in jeopardy
* Here's where Illinois hospitals rank in patient safety survey


* Burbank construction company faces $80K in OSHA fines
* Man gets 55 years in prison for sexually abusing young girl
* GOP adds measure to stopgap bill to aid Mattis’ confirmation
* Georgia Nicols horoscopes for Dec. 7, 2016
* Dear Abby: May I fantasize my husband’s a woman?
* 2 killed, 10 wounded in Tuesday shootings on South, West sides
* Man, 49, in serious condition after East Garfield Park shooting
* Man shot in back on West Side
* Man shot while walking out of Back of the Yards home
* Police: Married couple shot to death inside Burbank home


* 2 killed, 8 wounded in Chicago shootings
* Top cop: 'Chicago is not out of control' - just parts of it are violent
* Frantic rescue underway after quake kills at least 54 in Indonesia
* Chicago faces political power outage as Trump succeeds Obama
* Myanmar, Asia's new tiger economy, fears currency slide as Fed hike looms
* A jumpy Russia expects to be cyberattacked
* World Series second-guessing doesn't faze Cubs manager Joe Maddon
* Tuesday's recap: Blackhawks 4, Coyotes 0
* Man pronounced dead 5 years after South Side shooting
* Former Bear Rashaan Salaam found dead at age 42


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Judge blocks administration from imposing contract on AFSCME
* Guest Column: Electoral College reforms — be careful what you wish for
* State budget still elusive as leaders lash out
* Michael Gerson: 3 American texts for Donald Trump to read before Inauguration Day
* Guest Column: The Electoral College and prospects for reform — be careful what you wish for
* Catherine Rampell: Trump should keep this part of Obamacare
* E.J. Dionne: The new politics of fear evident in Paris
* Illinois budget still elusive as leaders lash out
* Killer of former central Illinois man sentenced to probation
* Prosecutors: Don't move Aaron Schock trial out of Springfield


* Jewish congregations preparing for Hanukkah
* Robert Patterson
* Margaret Osman
* Claude Hasemeyer
* James Charles Bennett
* Mary Foehner
* Kathryn Varvel
* Kevin Gray
* Jack Lamer
* Martin 'Marty' Filter


* North Aurora house fire displaces family of 4
* Hundreds affected by Arlington Heights ComEd outage
* Images: Waubonsie Valley vs. Neuqua Valley, girls basketball
* Images: Addison Trail vs. Fenton boys basketball
* Images: Larkin vs. West Aurora, girls basketball

* 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

* Chicago launches task force to coordinate ......

* SEIU leaders say planned Monday strike by ......

* Black working class males
* We hear the facts of 75 years ago; but have we really learned a lesson?
* Wilson Avenue Of Yesteryear Makes Brief Return For Filming
* EXTRA: A ‘Cuban connection?’ Or Sox response to Sutter/Maddux moves!
* EXTRA: A ‘Cuban connection?’ Or Sox' answer to Sutter/Maddux moves!
* Sunday mishmosh.
* Breaking. Judge orders TRO against Rauner and for state workers.
* Peace through fear.
* To my Milwaukee friends and readers.
* East St Louis Township Supervisor pleads guilty to wire fraud, embezzling public funds


* IDHR Issues Reminder of Fair Housing Rights During Holiday Season - State law prohibits targeted, discriminatory restrictions on decorations and celebrations
* Honoring Pearl Harbor Remembrance Day - United States and Illinois flags at half-staff from Sunrise to Sunset on Wednesday, December 7, 2016.
* Rauner calls on Democratic legislators to withdraw lawsuit seeking paychecks
* Illinois Department of Labor Moves Registrations to Online Format - Another step in the Rauner Administration’s efforts to modernize government
* Illinois Student Assistance Commission Announces 2017-18 Illinois State Scholars - More Than 19,300 high school students recognized for outstanding academic achievement




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