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* During overtime session, the media almost always uses dollars per day calculations to shame legislators into wrapping things up. So, I think that Gov. Pat Quinn’s number may have a fairly big impact, at least with the press…
New figures demonstrate how Illinois is getting deeper and deeper into the unfunded pension liability hole.
Gov. Pat Quinn says what’s now an $83 billion dollar debt is increasing by $12.6 million a day.
CBS 2 Chief Correspondent Jay Levine reports the state could be another $1 billion or so in the hole before the Illinois General Assembly does anything. […]
According to Quinn’s accounting, at $12.6 million a day, the delay would cost $441 million; by the veto session just after Election Day — the soonest most believe a bill could be introduced — it would be $1.7 billion. If they took a full year, the state would be another $4.6 billion in the hole.
“It’s time to go and put the taxpayers first, not politics first,” Quinn said.
* As I mentioned below, however, the can was kicked down the road again…
Negotiations between Gov. Pat Quinn and legislative leaders about public employee pension reform hit another roadblock Thursday, with talks morphing from a discussion about retirement benefits to education funding equality in Illinois.
The issues became entwined as Democrats continue to push a proposal that would shift some pension costs from the state now pays on to suburban and Downstate school districts. Republicans oppose the plan, saying it would force property taxes to rise as schools try to recoup the extra costs.
GOP leaders say the cost-shift idea shouldn’t be connected to pension reform because it’s a school funding issue, and on Thursday asked for more time to study how money is distributed to schools across the state. […]
By asking for more time to study education funding, Republicans are attempting to force Democrats to back away from the cost-shift idea. Either Democrats peel that portion off and move forward with broader pension reforms this summer, or Republicans can put the blame on Democrats for inaction during the fall election.
“When you don’t want to talk about the free lunches for local school districts, you talk about school funding,” said House Speaker Michael Madigan, D-Chicago.
But Madigan said he was confident an agreement could eventually be reached, saying it can be difficult to move plans forward in Springfield “but if you stay with it, there will be accomplishments.”
* The SJ-R editorialized on the latest delay…
With negotiations now pushed almost to August, it’s looking more and more like this is an issue that is destined for dormancy until the post-election veto session in November. How convenient. Now lawmakers from both parties can campaign on the fact that they really, really want pension reform and they are certain it won’t cost anyone anything.
We can only hope that the bond ratings agencies have more faith in and patience with our elected officials than we do.
posted by Rich Miller
Friday, Jun 22, 12 @ 10:43 am
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–…and on Thursday asked for more time to study how money is distributed to schools across the state. […]–
What happened, did the dog eat the homework? They don’t know how education money is distributed across the state? You can’t make that stuff up.
Comment by wordslinger Friday, Jun 22, 12 @ 10:48 am
This is very dissappointing.
What on earth is Radogno going to “study” that she doesn’t already know?
Comment by mark walker Friday, Jun 22, 12 @ 10:57 am
Out of everyone is this process so far, Quinn is smelling most like roses to the public and the media compared to Madigan and GOPers. Seems like he actually is acting like a governor should for once.
Comment by Niles Township Friday, Jun 22, 12 @ 11:11 am
You mean to tell me that the vaunted strategy of “bringing everyone to the table” isn’t working?
Comment by The Elderly Man You Used to Love Friday, Jun 22, 12 @ 11:27 am
=== Time is also critical because the rating agencies are becoming increasingly impatient and are poised to lower Illinois’ bond rating if the state doesn’t take quick and concrete steps to halt the downward spiral toward complete pension collapse. ===
MSNBC did a story today on how irrelevant the Ratings Agencies have become.
These are, after all, the Geniuses that didn’t see the housing collapse coming.
Apparently, everyone who is anyone in the debt market does their own analysis, which explains why Moody’s downgrade of US debt was completely ignored.
It still makes for fun politics, though.
Comment by Yellow Dog Democrat Friday, Jun 22, 12 @ 1:56 pm
===It still makes for fun politics, though. ===
There will be no fun when we hit junk bond status and lots of institutions will be barred from buying our debt issues.
Comment by Rich Miller Friday, Jun 22, 12 @ 2:00 pm
@Rich -
It’ll take some imagination for the bond agencies to place Illinois in the same category as Portugal and Greece.
Comment by Yellow Dog Democrat Friday, Jun 22, 12 @ 2:47 pm
Illinois’ Gross Domestic Product is twice that of Greece, and three times that of Portugal.
Per capita, 1o states have a higher debt load than Illinois.
When Alaska, Connecticut, New York, Rhode Island etc. start circling the drain, we should fret.
Comment by Yellow Dog Democrat Friday, Jun 22, 12 @ 3:00 pm