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* It’s already almost impossible to convince even people who understand these things that the state’s new capital spending is affordable in light of the state’s crushing budget deficit. Gov. Pat Quinn isn’t helping matters much with stuff like this…
Despite the budget deficits in Illinois, Governor Pat Quinn is optimistic that if Missouri doesn’t find a way to help build a new stadium for the St. Louis Rams in the next decade, his state could become a player.
Teachers are being laid off by the thousands, crucial social service organizations aren’t being paid, but we’re gonna help some millionaire sports owners from across the river (OK, the new, unapproved to date owner is from Illinois, but the team is still across the river) build an expensive new stadium that’ll be used 8 times a year? Great. Wonderful idea, governor. Keep up the good work. You’re not undercutting your position whatsoever.
* Bill Brady’s position on eliminating the gasoline sales tax took a whacking from his hometown newspaper today…
If fairness and competitive advantage for border communities were the only factors on which to judge Republican gubernatorial candidate Bill Brady’s call for ending the state sales tax on gasoline, it would be easy to say, “Go for it!” But there is another factor — a more compelling factor, at this point — and that’s revenue. […]
Brady argues that the revenue lost by eliminating the sales tax on gasoline would be made up by travelers buying other items in the convenience stores that are part of many of today’s gas stations. That might be true in communities near bordering states — we emphasize the “might” — but it would make little difference in other parts of the state.
Brady has formed a border commission run by his lt. governor nominee Jason Plummer. Border issues are legitimate grounds for debate because we have such long borders and we abut several metropolitan areas across the lines. But this idea was tried under George Ryan and pretty much universally denounced as a failure…
A six-month break on sales taxes on gasoline in 2001 did not trigger an increase in other sales, according to a study by the Commission on Government Forecasting and Accountability.
One reason is pay at the pump, which is even more prevalent now.
* In other news, the Gaming Board apparently screwed up and now video gaming has been postponed for another four months because of it…
Bar patrons hoping to gamble on video gaming machines in Illinois may have to wait until next summer for the opportunity. […]
This August, the Illinois Gaming Board bidded a contract to a company, Scientific Games International, to help develop a communications system for video gaming.
Earlier this month, the board retracted that contract and will redo the bidding process at a date to be determined.
More…
The gaming board bid out the system at the end of last year, and awarded it to Scientific Games International in May, sealing the deal with a contract estimated at about $90 million in August. Yet competing Greek-based Intralot complained its bid was actually lower after filing a Freedom of Information Act request later that month and looking the final bids over.
The gaming board issued a release over the weekend confirming “miscalculations were made, due, in part, to assumptions made by the gaming board and by vendors that were not uniform and not verified.” Parts of the bid that were actually included in the Intralot offer were re-added by mistake and applied to its total cost.
O’Shea said the new bidding process would proceed from scratch, and “it would be open to anyone,” not just those two companies.
Great. Just great. Nice job, Gaming Board.
* Related and a roundup…
* Why do most cigarette smokers tolerate massive state tax increases?
* State probes why more voters than residents in Alexander County
* State, U.S. invest in broadband through La Salle County
* Quinn no longer coming to Central groundbreaking: But according to the governor’s published schedule released last night, he will be in Chicago at 1:30 p.m. to announce a capital project at the University of Illinois at Chicago.
* Governor Quinn Breaks Ground on $26 Million Project to Redevelop Brownfield Site in East Peoria
Street Extension to Create Jobs, Stimulate Local Economy* Illinois ‘too broke to fix’ death penalty?
* New law helps Homer Glen in water takeover crusade
* ICC promotes program to help pay phone bills
* Quinn Announces Illinois to Receive Nearly $100 million in New High-Tech Investment
* Quinn Announces Federal Assistance Approved for Seven Counties Affected By July Floods
* Chicago airports don’t fare well in on-time ratings
posted by Rich Miller
Tuesday, Sep 14, 10 @ 11:50 am
Sorry, comments are closed at this time.
Previous Post: *** UPDATED x4 - Tyrrell wants in - Rasmussen polls Emanuel - Raoul out - Hoffman thinking about it *** Daley retirementpalooza continues unabated
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In general, temporary tax cuts such as what they tried in the Ryan Administration don’t have the same impact as permanent tax cuts. So we really can’t rely all that much — which is different than saying past experience tells us nothing — on the Ryan experience.
It would be great if there examples out there that would give us a better indication.
Also, were the Ryan tax tried when gas prices were spiking? If that’s the case, of course it didn’t lead to more spending in other areas.
Also, if people drive more as a result of lower gas prices — wouldn’t the economic effects show up in other areas? I don’t recall that ever being discussed.
Comment by Greg B. Tuesday, Sep 14, 10 @ 12:00 pm
Gas prices go up and down so much that fluctuation is now just expected by most people. And my guess is that most people’s driving habits don’t change all that much until gas prices get into the high $3 range. A drop in price from cutting the sales tax would just blend into the regular price fluctuations and not be noticed.
I also agree with Rich that pay at the pump cuts drastically into impulse buying inside the stations. I know it has for myself.
Comment by Been There Tuesday, Sep 14, 10 @ 12:10 pm
A border commission run by his Lt Governor nominee Plummer…
Could this indicate he might let Plummer do something if elected?
Comment by Excessively Rabid Tuesday, Sep 14, 10 @ 12:14 pm
Even if and this is a big ‘if’ the state were in a financial state to build a stadium why not spend that money on some capital project that makes a bit more sense like high speed rail, improving Metra or just about anything…
Comment by OneMan Tuesday, Sep 14, 10 @ 12:15 pm
Before any public funds are committed or TIF district is created for a football stadium, someone should be required to provide even a single example of public funding for a stadium actually actually providing a net public benefit. Every analysis I have ever seen has shown that the public loses money and there is minimal job creation while the already rich owners increase their profits. A football team will only use the stadium 10 times per year. How will it be utilized on any of the other 355 days? Who will be responsible for the stadium’s costs after the initial lease term if the team decides it wants something newer and “better”? When politicians stop chasing the glory of hosting sports team and spend the capital funds on rebuilding roads and bridges, we will be better served.
Comment by Draznnl (Rhymes with orange) Tuesday, Sep 14, 10 @ 12:16 pm
Quinn all hat no horse.
Comment by OldStory Tuesday, Sep 14, 10 @ 12:18 pm
I believe Illinois’ gas tax is $.18/gallon, or roughly 6% (depending on current gas prices).
In order to make up the difference, every driver would have to spend at least as much in the “convenient store” (at a 6.25% rate) as they do on gas. How many of you spend $30-$50 (rough average cost of a full tank) inside of a gas station on purchases other than gas?
Or, in other words, Brady has no clue about what he is talking about.
Comment by dave Tuesday, Sep 14, 10 @ 12:21 pm
Governor Quinn: Please DO NOT try and build an NFL stadium in the Metro East. Gateway Racetrack just closed up shop, Fairmount Park is on its last legs (pun intended) and some wannabe-sports-owner-lawyer tried to build a soccer stadium here.
If St. Louis wants to keep the Rams, they will probably build a new stadium away from downtown… a great spot is at I270 and 44, where Chrysler used to build cars. It makes sense…it’s near 80 percent of the region’s population has great highway access and the infrastructure is already there. So, thanks, but PLEASE do not pursue this idea, no matter what pumpkin head says.
Thanks,
VQ
Comment by Vote Quimby! Tuesday, Sep 14, 10 @ 12:23 pm
I predict that there would be absolutely no noticeable difference in sales of gas or other items if the gas sales tax were repealed. Gas prices already fluctuate by 20-30 cents for no apparent reason. Does anyone notice a surge in sales when prices are at the low end of that cycle?
Comment by bcross Tuesday, Sep 14, 10 @ 12:23 pm
My advice to Governor Ryan and the legislative leaders back then was, since gasoline prices were going up and down by 10-25 cents per day, pick a day that they went down and announce that we had abolished the sales tax. No one would know since they would go back up by a dime tomorrow anyway.
Comment by steve schnorf Tuesday, Sep 14, 10 @ 12:26 pm
Build in Marion use STAR Bonds
Comment by LES Tuesday, Sep 14, 10 @ 12:32 pm
Does that mean that Plummer has been sent over the border? I was wondering where he was hiding.
Comment by Anonymous Tuesday, Sep 14, 10 @ 12:33 pm
There are lots of reasons why gas prices fluctuate. Spikes in demand, spikes in futures, changes in formulas causing short term shortages, distance from pipelines, tax policy, weather and that’s just what I can think of off the top of my head. These are measurable and in my book measurable affects are apparent.
An yes people do tend to drive more when gas prices are lower than they tend curtail driving when prices are high.
Undoubtably over time leaving gas tax money in the productive private sector is going to have an economic impact. The question surrounds the benefits. There is also going to be a short term fiscal impact to state coffers. We can be just as sure about that.
Comment by Greg B. Tuesday, Sep 14, 10 @ 12:34 pm
Apparently Quinn thinks that if we have both the Bears AND the Rams in Illinois, he will look like a winner in comparison.
Comment by Adam Smith Tuesday, Sep 14, 10 @ 12:40 pm
For the record, the Edward Jones Dome is used for more than just Rams home games. Concerts and trade shows come there all the time. But I still don’t agree with the idea. There’s only enough room for one team of lovable losers in this state.
Comment by LN Tuesday, Sep 14, 10 @ 12:43 pm
>state’s new capital spending is affordable in light of the state’s crushing budget deficit.
You mean UNaffordable…
Comment by Segatari Tuesday, Sep 14, 10 @ 12:53 pm
>For the record, the Edward Jones Dome is used for more than just Rams home games. Concerts and trade shows come there all the time. But I still don’t agree with the idea. There’s only enough room for one team of lovable losers in this state.
This dome isn’t all that old either. How is it that this thing needs to be replaced already?
Comment by Segatari Tuesday, Sep 14, 10 @ 12:55 pm
Yeah but to use a dome for a convention you really need lodging close and somewhat traffic free. You would not have that on the Illinois side. also unless they are going to tear the Edward Jones Dome down you would still be competing with it for that business.
Comment by OneMan Tuesday, Sep 14, 10 @ 12:57 pm
Anyone making a list of all the goofy proposals coming from these two goofballs running for governor?
Do people need a gas tax cut so they can stuff their faces with junk food from convenience stores? That should help run up the Medicaid tab.
And yes, waste a bunch of capital spending on sport millionaires … this nice regressive tax on gambling will do that trick just fine.
Comment by Vole Tuesday, Sep 14, 10 @ 1:20 pm
The gaming board screws up again. It has had over a year to get this revenue stream up and running and now it is back to the drawing board. Other States most noticeably Montana have a fair equitable and proven system that has produced a quality revenue stream for years. Let’s lease out the program to the State of Montana
Comment by downstate hack Tuesday, Sep 14, 10 @ 1:31 pm
We need new leadership at the Illinois Gaming Board. Governor Quinn is quite ineffective in his leadership by leaving an ineffective Board and Administrator appointed by the corrupt Blagojevich administration. The Board and Administrator should be replaced immediately. Failure to do so demonstrates to the voters that the current administration is clueless. If these individuals worked in the private sector, they would be fired for incompetence. Government goes by the “dummy theorem” and promotes ineffectiveness.
Comment by average voter Tuesday, Sep 14, 10 @ 1:44 pm
“OK, the new, unapproved to date owner is from Illinois, but the team is still across the river”
First Rich, I am a downstate Rams fan, but this is a stupid idea. No need to elaborate, you made enough points for starters.
But….for accuracy sake, the new owner is Stan Kroenke, who is from Columbia, MO, who married into the Walton (WalMart) family.
Comment by Fed Up State Employee Tuesday, Sep 14, 10 @ 2:14 pm
**In order to make up the difference, every driver would have to spend at least as much in the “convenient store” (at a 6.25% rate) as they do on gas. How many of you spend $30-$50 (rough average cost of a full tank) inside of a gas**
station on purchases other than gas?
Or, in other words, Brady has no clue about what he is talking about.
It’s funny that Quinn short term tax cut for school supplies was such a great idea too many here.
Gas price’s and Convenience stores are a whole lot different then in 2001. For one thing they have all kinds of restaurants connected to them. Many people travel though without buying gas in this state because of its higher gas price choosing to buy in Missouri or Indiana they won’t worry about it after the extra tax is dropped so they will be buying more gas also.
Comment by GotGas Tuesday, Sep 14, 10 @ 2:27 pm
While governor quinn’s fiscal ideas often seem rather strange, they sound like the work of a Nobel Prize winner compared to Sen. Brady, who must believe that the Budget Fairy will slip $14 billion under his pillow before he wakes up on Inauguration morning, to balance the state’s budget for this year.
Comment by fedup dem Tuesday, Sep 14, 10 @ 2:29 pm
Heck at the point a 14 billion dollar fantasy is no different that what those in charge have done to deal with the reality…
Comment by OneMan Tuesday, Sep 14, 10 @ 2:32 pm
Does it really matter: Quinn is on track to lose at least 99 of the 100+counties in Illinois
Comment by ivoted4judy Tuesday, Sep 14, 10 @ 2:34 pm
It somewhat amusing that Quinn would announce support for a publicly funded stadium less than a week after the New York Times work a major story about states still being on the hook for bond payments even after a stadium has vanished. http://www.nytimes.com/2010/09/08/sports/08stadium.html?pagewanted=all
Comment by the Other Anonymous Tuesday, Sep 14, 10 @ 2:46 pm
Quinn + stadium idea = me voting for someone else.
If I’m going to have a pandering idiot for a governor, I’d at least like him to be from a different political party.
Comment by QRBNST Tuesday, Sep 14, 10 @ 2:57 pm
Once again a Democratic Governor decides to spend his day in Chicago instead of attending a groundbreaking and a visit to a Fallen Soldier Memorial outside the city. Furlough Fozzie just lost more votes in our area than he gained at the U of I.
Comment by Irish Tuesday, Sep 14, 10 @ 2:59 pm
Irish, the Peoria Journal Star has photos of the Governor at the groundbreaking. Unless they have taken photoshopping to a new level, looks like the Governor managed to find his way south of I-80.
Comment by soccermom Tuesday, Sep 14, 10 @ 3:14 pm
Say what you want about PQ (and I frequently do) his work with vets in many ways, from attending funerals to promoting their care and welfare, is one of his positives. And he does so quietly without looking for TV time.
You are out of line, Irish.
Comment by dupage dan Tuesday, Sep 14, 10 @ 3:28 pm
Soccermom - the picture in the PJS is from a IDOT groundbreaking project in Peoria. He did not make the Central project.
DD - He has been invited to three events at this memorial over the last 12 months and missed everyone, not even sending a representative. Everytime they were on his schedule and he missed it anyway. His office was the lead for the project initially. So no, I am not out of line.
Comment by Irish Tuesday, Sep 14, 10 @ 3:46 pm
I had no idea Quinn had failed to appear when he promised. Thanks for the info and I retract the out of line statement.
Comment by dupage dan Tuesday, Sep 14, 10 @ 4:04 pm
Once again, both Quinn and Brady are demonstrating that neither of them has any business being governor of a state any larger than my backyard.
I wish I could vote in another state where the candidates are less embarrassing.
Comment by Aldyth Tuesday, Sep 14, 10 @ 4:17 pm
Rich, the owner of the Rams doesn’t live in Illinois, FYI.
Comment by eastsider Tuesday, Sep 14, 10 @ 4:21 pm
I’m starting to wonder if the candidates running for governor have recently escaped from mental health facilities.
Comment by Wensicia Tuesday, Sep 14, 10 @ 4:25 pm
- Wensicia - Tuesday, Sep 14, 10 @ 4:25 pm:
“I’m starting to wonder if the candidates running for governor have recently escaped from mental health facilities.”
Interesting point. Maybe the past two were part of a criminal early release program…
Comment by Cincinnatus Tuesday, Sep 14, 10 @ 4:32 pm
Ladies and gentlemen, lets hear it for your Metro-East Illinois Rams!!!!!!!!!!!!!!!!!!
Sounds like a lower division college or high school team
Comment by concerned voter Tuesday, Sep 14, 10 @ 4:48 pm
It’s funny that Quinn short term tax cut for school supplies was such a great idea too many here.
I sure didn’t say it was a good idea.
Gas price’s and Convenience stores are a whole lot different then in 2001. For one thing they have all kinds of restaurants connected to them.
Sure… I would still place a lot of money on a bet saying that people, on average, spend a lot less inside the store/restaurant than they do on gas. Want to bet on it?
Comment by dave Tuesday, Sep 14, 10 @ 6:12 pm
===It’s funny that Quinn short term tax cut for school supplies was such a great idea too many here.====
Completely different idea, designed to entice shoppers into parting with money they’ve been hoarding. They’re already buying gas.
Comment by Rich Miller Tuesday, Sep 14, 10 @ 6:18 pm
I try to avoid name calling, but using money the state does not have to fund a sports stadium whose prime purpose will be 8 season games plus the occasional playoff and preseason game is simply dumb.
Comment by Plutocrat03 Tuesday, Sep 14, 10 @ 6:47 pm
With all due respect Rich, these shoppers were already going to buy school supplies. It’s not like they were going to skip buying supplies for their kids.
Comment by 4 percent Tuesday, Sep 14, 10 @ 9:24 pm
**Completely different idea, designed to entice shoppers into parting with money they’ve been hoarding. They’re already buying gas.**
People can decide not to travel or to buy gas out of state or before they get into the state.
Comment by really Tuesday, Sep 14, 10 @ 10:21 pm
==Rich, the owner of the Rams doesn’t live in Illinois, FYI==
Yep, Stan Kronke (married to a WalMart daughter) of Missouri was approved over the Champaign businessman.
Comment by Vote Quimby! Wednesday, Sep 15, 10 @ 2:50 am