Reasons for hope?
Monday, May 2, 2016 - Posted by Rich Miller
* I told subscribers last week that the governor’s people believed the group of legislators and staff working on crafting a conclusion to the impasse will “reach a turning point” this week.
Natasha heard pretty much the same thing over the weekend…
Sources tell POLITICO that one of those groups, which calls itself the Ad-Hoc budget committee, has a draft proposal on the table that calls for addressing both the 2016 and 2017 budgets. The proposal includes an income tax increase and the creation of a sales tax on services, as well as a version of workers compensation reform, which is something Gov. Bruce Rauner’s administration has been calling for.
The Ad-Hoc budget group has met for more than a year, and is steered by rank and file interests rather than directed by leaders. It could present a recommendation this week.
Three committee members told POLITICO over the weekend that a proposal and its timing were still in flux.
Things can always change on a dime around here, so we’ll see. But there is reason for some hope.
* More…
Separately, a bipartisan group of rank and file lawmakers who call themselves “the Budgeteers” have met since mid-April with the backing of four legislative leaders and Rauner. In a rare act of compromise in a hyper-acrimonious era that’s seen unprecedented spending in primary elections, leaders agreed to quietly launch the group in an attempt at finding some path forward on a budget.
The group’s committee has been meeting with Rauner’s budget director Tim Nuding and the governor’s staff. That group has met every session day and on Monday is expected to meet to discuss funding for the Department of Human Services.
The decision to allow the budgeteers to meet was made at the only leaders’ meeting of the year. Subscribers got an update about human services funding today.
Anyway, good stuff by Korecki. Lots of deets. Go check it out.
- Liberty - Monday, May 2, 16 @ 10:40 am:
Rauner says he wants to keep the bipartisan movement going…
LOL
- The Captain - Monday, May 2, 16 @ 10:48 am:
I’m trying to stay optimistic but this feels like Lucy with the football to me.
The Governor has been telling anyone who will listen that what the Democrats really want is to force the state into raising taxes. He even told this to a Chamber of Commerce lunch a mere hour or two before the most recent leaders meeting, the meeting he begged and prodded to have prior to it being scheduled yet still tried to sabotage with his red-meat public comments. Now according to Korecki the framework for the big grand bargain includes both an income tax hike and an expansion of the sales tax to include services and the votes on these taxes will be bi-partisan and the Governor will sign them?
The Governor’s dream scenario is to have a Democrats-only tax increase pass prior to the fall elections so he can use his millions to win legislative seats. I don’t think the Democrats will fall for that trap so this feels like it’s being set up to be the next best thing for the Governor’s political interests: a plan to raise taxes on income and services that he can pin on the Democrats as their real, secret plan.
If this really is an honest effort at a grand bargain it’s going to take an awful lot of trust, exponentially more trust than has been recently available. I’m trying, but struggling to remain optimistic.
- Ms. SHEESH - Monday, May 2, 16 @ 10:52 am:
Did anyone read the front page yesterday– Chicago Tribune “Rauner Ramps up Efforts to Privatize, Initiatives aim to advance agenda despite stalemate”
- wordslinger - Monday, May 2, 16 @ 10:55 am:
The governor has a mighty powerful pen. He can use it to sign bills or veto them. Things will happen when he wants them to happen.
- walker - Monday, May 2, 16 @ 11:11 am:
Outstanding reporting. Some real good names listed in the article.
Let’s see some bills with Republican and Dem co-chief sponsorship.
(Didn’t Rauner say last week that he “heard some rumors” that some legislators were holding meetings. Nuding and other staff have been in them for weeks. Sometimes he just … I don’t know, mystifies me.)
- DuPage - Monday, May 2, 16 @ 11:11 am:
I know several smaller construction contractors that are OK with the 5% income tax but dead-set against the sales tax on services. The jobs they do are very competitive, if they make money, the state makes money. If they don’t make money on a particular job, neither does the state. With the Rauner services tax, the state will make money even if the business loses money on a job.
- Norseman - Monday, May 2, 16 @ 11:15 am:
I’m cynical … Oops, wrong post.
The positives are that folks are talking and Rauner has put his trashing of Dems on hold. I’ll be surprised if they agree to a tax hike in an election year, but it’s necessary to repair the problems.
Keep talking.
- Oswego Willy - Monday, May 2, 16 @ 11:18 am:
Two things MUST happen for all this to bear fruit…
Democrats must give on a few of the obvious points of compromise. No more denying on workmen’s comp, for example…
Rauner must accept wins that are achieved as movement and… move on. Determining the size of wins is no reason to hold up things any further.
Those two things happen, then bipartisan structured roll calls and cleanly signed bills will happen.
The Post above is a sign of that… Hope.
- Allen D - Monday, May 2, 16 @ 11:21 am:
I like all these catchy group code names…
- What the What - Monday, May 2, 16 @ 11:28 am:
As others have said, it should happen if the Gov wants it to happen. So the question is does he want it to happen? Is he just giving the appearance of being “optimistic” and “hopeful” so he has some cover when he pulls the plug on any possible deal? Or is he being sincere? History makes a strong case for the former - but god I hope it is the latter. This has to end, there is just too much unconscionable damage and suffering being inflicted.
- wordslinger - Monday, May 2, 16 @ 11:34 am:
–(Didn’t Rauner say last week that he “heard some rumors” that some legislators were holding meetings. Nuding and other staff have been in them for weeks. Sometimes he just … I don’t know, mystifies me.)–
I’m always wary when people roll that way when there really is no reason to — and when it’s so obviously refutable.
Kind of like traveling the nation, lining up “dozens” of corporations ready to relocate if only….
- R u kidding? - Monday, May 2, 16 @ 11:49 am:
An income tax increase plus a sales tax expansion in exchange for undefined work comp changes? Worst deal of the century. The price of that kind of revenue should be the entire turnaround agenda.
- ChicagoVinny - Monday, May 2, 16 @ 11:51 am:
The devil is in the details with this services tax. I run a boutique consulting biz with customers across the nation in IL and MA, if B2B stuff is going to be taxed in IL I’m probably going to slow down hiring in IL vs MA - right now it’s the opposite.
- Johnny Pyle Driver - Monday, May 2, 16 @ 11:53 am:
“An income tax increase plus a sales tax expansion in exchange for undefined work comp changes? Worst deal of the century. The price of that kind of revenue should be the entire turnaround agenda.”
We either need revenue to balance the budget or we don’t. If we need it, there really shouldn’t be a “price” for doing it, because it’s the thing that needs to be done.
Plus there’s that whole pesky business of being a pretty small minority in the legislature
- Rich Miller - Monday, May 2, 16 @ 11:59 am:
===if B2B stuff is going to be taxed===
Doubtful. It’ll likely be end user stuff.
- wordslinger - Monday, May 2, 16 @ 12:00 pm:
–The price of that kind of revenue should be the entire turnaround agenda.–
The “price” for that zealotry has been wrecking the social service infrastructure, tuning up higher ed but good, plus stiffing Illinois businesses for goods and service already rendered.
That’s quite a hefty price. What’s the ROI?
- ChicagoVinny - Monday, May 2, 16 @ 12:01 pm:
If it’s just end user stuff, that’s a different story, some states have successfully done that already.
- Chicago 20 - Monday, May 2, 16 @ 12:40 pm:
Another regressive tax is not what the middle class in Illinois needs.
Lou Lang’s income tax proposal reduces income taxes on 99% of Illinois residents and will allow for more consumer spending.
Taking money out of the pockets of Illinois consumers will ultimately hurt Illinois businesses.
- Beaner - Monday, May 2, 16 @ 1:07 pm:
Do not hold your breath until Moody’s, S&P and Fitch’s have downgraded Illinois credit rating to junk. Rauner’s goal, as he clearly stated in early 2015, was “to usher in an Era of Financial Irresponsibility.”
- RNUG - Monday, May 2, 16 @ 1:31 pm:
== An income tax increase plus a sales tax expansion in exchange for undefined work comp changes? Worst deal of the century. The price of that kind of revenue should be the entire turnaround agenda. ==
You’re the one that has to be kidding. Increased revenue is simple math; it is mandatory based on BOTH sixes previous budgets. Reforms don’t have to happen, except for political reasons, so you take what you can get.
- Oswego Willy - Monday, May 2, 16 @ 2:11 pm:
===it is mandatory based on BOTH sixes previous budgets. Reforms don’t have to happen, except for political reasons, so you take what you can get.===
Ball Game. Well said - RNUG -
- burbanite - Monday, May 2, 16 @ 4:55 pm:
I am a bit concerned that a service tax would increase bureaucracy, are there any actual numbers on what it would bring in and what the paperwork process would cost?
No one wants a tax increase R U Kidding, it is not a gift to the Democrats and the Republicans need to stop acting like it is. Thank you sir may I have another? seriously!
- Lucky Pierre - Monday, May 2, 16 @ 5:27 pm:
Reforms don’t have to happen? The only Rel that would run on that platform is running unopposed in a safe gerrymandered district. I can see the flyers now- Vote for me for reelection
Illinois No Reform except higher taxes .
- PENSIONS ARE OFF LIMITS - Monday, May 2, 16 @ 5:55 pm:
Reason(1) for hope? November 2018.
- Mama - Monday, May 2, 16 @ 9:52 pm:
Team Ad-Hoc budget committee and Team “the Budgeteers I wish you the best in finding a joint solution. Keep up the good work.