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I missed this yesterday. Truth be told, I don’t read the Post-Dispatch editorial page much, especially since they flip-flopped on tort reform - firing up the reform argument in 2004 and flip-flopping a few months later when a medical malpractice reform bill appeared close to passage. Anyway, this was blogged on Illinoize yesterday, but I thought it would be worth a post here.
Blagojevich for the condition of the state’s economy makes only slightly more sense than blaming him for the weather. In truth, no governor has much influence over a state’s prosperity during a single term in office.Economies don’t turn on a dime.
Things that a governor really can influence — the quality of schools, job training, public health and transportation infrastructure — take years to produce results in terms of increased business, new jobs and higher wages. […]
The real influence of state government is on long-term prosperity. Improving children’s health and education today will bring rewards in years to come: a healthier, better-educated work force, more higher-paying jobs, higher per-capita income and less spending on crime, welfare and social programs. Investing in transportation improvements pays economic dividends over decades; that’s why a new bridge over the Mississippi River is critical to southern Illinois’ economic future.
By those measures, Gov. Blagojevich has made the right calls.
Your thoughts?
posted by Rich Miller
Thursday, Jun 15, 06 @ 5:15 am
Sorry, comments are closed at this time.
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“In truth, no governor has much influence over a
state’s prosperity during a single term in
office”
I simply refuse to believe this statement. The media has spent YEARS brainwashing me into thinking governors and presidents are solely responsible for my happiness, quality of life, and economic well being. When something goes bad in my life - lost my job, lost my house, had to pay medical expenses, garbage didn’t get picked up….it was clearly due to the president’s or governor’s incompetence.
And now a newspaper comes along and tells me to be patient? Get real. I need instant gratification right now today…not in “the long term”
Comment by Leroy Thursday, Jun 15, 06 @ 6:23 am
Well let’s be honest. While in DC Judy attacked Rod for not putting up the matching funds to get the federal money transportation projects, but she ignores the role of the Republicans in blocking the Capital Bill. Rod has made some mistakes, but he deserves credit for what he has done for healthcare, education and public safety without raising taxes.
I will sit back and watch the expected attack on my character. . .LOL
Comment by wndycty Thursday, Jun 15, 06 @ 6:40 am
Sorry, Rebecca, not today. That’s an out-of-state newspaper so who cares. The majority of this state’s readership of that rag is in SOUTHERN ILLINOIS and the overwhelming majority of them hate Blah-Blah.
Comment by Anonymous Thursday, Jun 15, 06 @ 6:47 am
With Blago the problem is not that the economy has or has not turned it is he has no fiscal responsibility.Massive borrowing ,programs that we can not afford or we can not afford them but he pushes them for 2 years and there is no way they can be paid for.This guy is like a man who gets a lay-off notice on his job and goes out and buys a brand new car.Everything this Governor has done will have to be paid for someday.
Comment by DOWNSTATE Thursday, Jun 15, 06 @ 6:55 am
Government can also have a significant short-term impact on the economy. For example, a lot of trucking firms have left the state. While it hurts the economy in the short-term, the long-term result is more efficient transport using rail.
Comment by Anonymous Thursday, Jun 15, 06 @ 7:00 am
I agree with the P-D.
Anybody but Rod.
Comment by Anonymous Thursday, Jun 15, 06 @ 7:20 am
We can still blame George Ryan, right?
Comment by Ottenhoff Wannabe Thursday, Jun 15, 06 @ 8:03 am
Anonymous 7:00 a.m.
Freight transportation efficiency requires a mix of trains. trailer trains, container trains and trucks. Piling on taxes and fees on the trucking industry has distorted prices.
Fortunately for their owners, trucking firms are mobile. Other businesses are not so licky, they have to sit and take it.
Fortunately for their owners roads from Illinois reach other states where trucker terminals and fuel stops can be had at lower cost.
Unfortunately for the taxpayers of Illinois, the movement of these facilities to Wisconsin, Indiana and Missouri hurts the property tax, corporate income and worker income tax base here.
Camels’ backs can take only so much straw. Give the Rodster credit for one good thing, letting trucks do open road tolling as well as the cars helps the Authority revenue stream.
Here is a flash for the rest of you. Fed receipts from income taxes are 17% higher — indicating that taxpayer income has risen proportionally.
That will reflect itself — as it did in parallel last year — in greater corporate and personal income tax receipts in Illinois as well as increased sales taxes.
Which will give the Guv beaucoup more money than his ‘balanced budget’ showed. Where are they hiding the increased receipts?
The State will be flush again to fund all the wish lists passed without specific appropriation.
Springfield knew it was coming.
The taxpayer will be flushed again. But put a rose in his hand and he will never know he was in a casket.
Comment by Truthful James Thursday, Jun 15, 06 @ 8:15 am
That’s “lucky” not “licky.”
Comment by Truthful James Thursday, Jun 15, 06 @ 8:18 am
Taxes on the trucking industry also raise costs of imported consumer goods, reducing our consumption and decreasing the trade deficit, especially with communist China.
It would be interesting to know if highway death rates changed after trucking firms moved out of state.
Comment by Anonymous Thursday, Jun 15, 06 @ 9:09 am
45th in job creation that’s what all the fees and taxes have done.The reason Honda hasn’t announced where the new plant is going is because they are still rolling around in the floor laughing after AROD ask them to move here.As far as fed reciepts that was Bush’s tax plan that Democrats like Blago did not want.
Comment by DOWNSTATE Thursday, Jun 15, 06 @ 9:19 am
The editors for the PD must be smoking crack. Governor Blagojevich is running a wholly inept and incompetent government. He’s good only at running FOR office while plundering the state coffers for personal gain. That’s it, nothing else.
Comment by Pie-in-the-sky Thursday, Jun 15, 06 @ 9:31 am
I always wondered if anyone in the press actually bought into the Governor’s super slick messaging. The SPD has given me an answer. Ahh St. Louis, figures.
Comment by Goodbye Napoleon Thursday, Jun 15, 06 @ 10:06 am
The Post needs to stick to their own state’s problems, where only their governor rates lower than our resident loser of a governor. Keep your opinions on your side of the Mississippi, we have enough of our own with the ego king of Illinois.
Comment by mateo Thursday, Jun 15, 06 @ 10:12 am
At what point as leader do you take responsibility for what happens on your watch? Going further in debt and the other stuff can not all be pushed off as what was inherited. Do the job, work with the team you got, or get out. Cut the crap and cut the excuses.
Comment by zatoichi Thursday, Jun 15, 06 @ 10:37 am
wndy, wndy, wndy, sigh….. OK you want to blame republicans for not voting to allow governor borrowavich to add billions more in state debt (that he has already TRIPLED) without any sort of plan to repay the borrowing. But you say - he needed the money for the mathcing funds! well wndy if he hadn’t stolen the freakin road fund (you know earmarked dollars to be used on road infrastructure, paid for by people that use the roads)then we would have had plenty of money to get the fed matching dollars. but no, we needed a gay and lesbian hall of fame and a nice tribute to emil jones at Chicago State Univ. (and any other number of ridiculous chicago only projects) I guess you have to get the cash to give fat contracts to your pay to play vendors. anyway, the republicans stopped him from saddling a huge amount of debt on my daughter and for that I applaud them. not only is the debt incredibly increased but borrowavich has backloaded the repayment so heavily that my taxes WILL have to be increased to pay off his re-election schemes. believe it or not but he playing with real actual money here, you know money that comes from my little ownstate pocket and goes straight up the interstate to cchicago never to be seen again. You can play that look what the republicans did card all you want im sure its number 1 or 2 on your dot points that they would like you to follow, but it hold water to anyone that has any idea about how state finances work.
Also, thought it was curious you choose not post on the thread discussing all the “Big Tony” Rezco ties to blago’s appointment and fundraising. Just not that interesting of a post???
Comment by just watching Thursday, Jun 15, 06 @ 10:40 am
My apologies to the readers, I really should have had a couple different paragraphs there.
Comment by just watching Thursday, Jun 15, 06 @ 10:42 am
Ronald Reagan spent most of his 8 years effectively blaming Jimmy Carter for anything that went wrong, so this isn’t exactly new. That said, a fair look at Rod has to take into account not just the crazy stuff that drives so many of us to distraction, but also some of the bold, progressive policy initiatives that were way overdue.
The crazy stuff includes things like:
ethical lapses - cronyism and pay to play
Tony Rezko
the atmospherics - including things like the Hate Crimes Commission
the arrogance of both Rod and his staff (we employ a strategy of not returning lawmakers phone calls)
smoke and mirrors accounting (but really how different is that from past governors like George Ryan and Jim Thompson)
The good stuff:
The commitment to early education funding (ask anyone in the field and they’ll tell you Rod has been the best governor for this stuff ever).
AllKids
Open road tolling
(Ok, I’m drawing a blank on the other good stuff)
The jury is still out:
The Pension bond deal (I was very cynical of this deal - thus my name - but several experts that I respect in this field have convinced me it may have been an ok deal. I’m withholding judgment for now. Now the missed payment, that’s another story.
My point is that while we could all just be Rod haters and condemn every single thing he has done (like many on this board), a fair reading has to look at the whole picture. And the whole picture isn’t all black.
Comment by ChicagoCynic Thursday, Jun 15, 06 @ 10:50 am
Perhaps the Post-Dispatch should have entitled their editorial, “Blagojevich — good for Missouri business”. The Post gives Illinois’ governor praise and passing grades for a state that is 48th in job growth, 41st in gross state product, has the second highest gasoline tax in the nation, $60 billon in debt and is a dead-beat when it comes to paying its healthcare providers. Windy City, sorry, but while the governor has expanded programs and populist causes, he has yet to figure out a way to pay for them and the bills continue to pile up. Education…yep we’re throwing more than $1 billion in new money, $498 million of which was pirated from the Teachers’ Pension Fund, but the results in Chicago alone are appalling; just 54% graduate from High School and an astounding 6% of High School freshmen will earn a four year degree! But they will have a social services net, second to none, paid for by the rest of us.
What, me worry?
Comment by Common Sense in Illinois Thursday, Jun 15, 06 @ 10:51 am
After the first year in Blago’s term he stated when the budget passed that he had balanced the budget in the face of a 5 billion dollar shortfall. Remember him blasting Ryan for his excesses. Every year he brings up the 5 Billion deficit as the reason Illinois is in dire straights. The truth is he never balanced anything. He is robbing Peter to pay Paul.
What the Post Dispatch doesn’t say is what a one term Governor can do to put the long term health of a state in jeopardy. Medicaid is backlogged to the tune of almost 2 Billion dollars. When the democrats changed the pension payment cycle they back loaded payments. Starting in I believe 2011, after the next governors term, there is a 3.7 billion payment due. We are not paying our pension obligations now, where do you think the money will come from?
Yes a governor can have a drastic effect on a state in one term!
Comment by "I have balanced the Budget" Thursday, Jun 15, 06 @ 11:10 am
The P-D is a very respected paper, but since the new editor took over it has moved to the far left on many issues. Any time the economy sees improvement or the country seems to be doing a tad better, the P-D leads the way in negative energy and bundled anger. Nothing a Republican does is ever right, although they do endorse Republicans for office. Health care and wages are two hot-button issues, but when we are lagging in job creation and business attraction, the conversation cannot always come back health care, minimum wage, Wal-Mart and free trade. If anything, I think the P-D wishes it had Rod Blagojevich rather than Matt Blunt.
Comment by Team Sleep Thursday, Jun 15, 06 @ 11:21 am
The governor has funded laudable programs, but has done so with little regard to the state’s financial future — beyond the next four years.
At the same time, at least the Post-Dispatch has its own editorial voice for a little while longer. In a couple of years, you’ll reading the same right-leaning opinions voiced by the Pantagraph, Decatur Herald & Review and the Southern.
Comment by anon Thursday, Jun 15, 06 @ 11:24 am
FYI, the bridge is far better for our IL economy than the MO economy, as studies have shown it would create more growth on the IL side, since St Louis is filled in, blocked by the river, and already sprawling inconveniently far to the West.
MO is holding out for an expensive new bridge option (almost $1B) and more funding from IL, while we want the less costly expansion of an existing bridge for about half a billion.
Comment by Anonymous Thursday, Jun 15, 06 @ 11:30 am
Chicago Cynic –
God bless you sir.
But when financial experts are willing to go no farther out on a limb that to convince you that the $10 Billion Pension Bond issue
“…may have been an ok deal…”!!!
Financial transactions are like pregancy. It either is safe or not
Comment by Truthful James Thursday, Jun 15, 06 @ 11:30 am
While the Guv did cut state government down, it wasn’t enough to fund all the new programs.
Since he’s pledged not to raise sales or income taxes, the options he has are raise fees, more cutting, fewer or smaller new programs, sweep funds, leasing, and borrowing.
There’s also hoping for economic windfalls, like a better economy, energy deregulation raising utility taxes, or higher gas prices with steady demand.
Comment by Anonymous Thursday, Jun 15, 06 @ 11:41 am
I think that, yet again, there needs to be an emphasis on facts here in many of these postings and less on the half-informed rhetoric. I taken a good deal of time getting to understand the state’s finances, so take this for what it’s worth…
the debt under this gov has not tripled. the gop has done a good job of turning that claim into a “fact”‘ but it simply is not true. if you look at what the total pension debt and GO bond debt was before blago took office vs today, you’ll find that there’s only about about 5 billion more in “new” debt (tied to infrastructure bonding and a portion of the pension bond that paid for the 04 state pension payment). the far majority of the new GO bond debt is actually tied to projects that were signed off under ryan. so, this continued drumbeat that blago has tripled the state debt is factually inaccurate.
now, as for road funds, I haven’t found any proof that this admin has “raided” the road fund. even if you include the one year raise of the cap in 2004, they’ve done no more or less than the last two administrations have done in regard to road fund dollars. again, another inaccrate statement. if someone can back up that “raid” claim with facts, I’d like to see it.
lastly, as for medicaid “backlog”, check with the comptroller’s office because accoding to them the backlog is at 1.3 b (not 2 billion), which in and of itself isn’t great, but it’s half of what the backlog was when ryan left (somewhere around 2.6 b). I believe that the comptroller’s office had that amount on hand for 03 - before the blago folks issued shortterm borrowing to pay down those bills because there wasn’t enough in the budget to pay them down).
lastly, I think the post dispatch has a better perspective than most of us do. they have their own gov in which to compare ours with and are removed enough to have a fresh perspective, even if I don’t always agree with them either. I always laugh at these postings that attack a columnist or editorial that has anything positive to say about blago, whether or not they’re in the right or the wrong. but, we’re sure fast as lightening to mow them down.
Comment by a friend Thursday, Jun 15, 06 @ 11:42 am
Back in 2002, the Post did not endorse Rod for Governor (one of the few Democrats that didn’t get their nod). Also, I am getting a little tired of those people who fail to realize that the Metro-East is the second largest metro in the State of Illinois and the Post is the paper that covers the entire region with some level of competence. The other daily papers in the Metro-East just don’t even measure up.
Comment by Anon Thursday, Jun 15, 06 @ 12:26 pm
A friend,
I applaud your attempt to use facts not rhetoric, but you’re not as quite as factual as you might think.
The Comptroller’s office only reports the backlog of Medicaid bills that have been sent to his office. The complete picture must include the unpaid inventory that exists at HFS along with the unpaid inventory at the Comptroller’s office. The complete picture is closer to the $2 billion figure. For the record, net growth in unpaid Medicaid bills has been about $1 billion since the governor took office three years ago. That’s $1 billion more in non-bonded borrowing on the backs of the healthcare industry.
One other point - the General Obligation debt has essentially tripled because of the $10 billion pension deal that essentially transferred pension debt to GO debt. Perhaps it is fair to say that net “new” debt is $5 billion, but interestingly, if the inherited deficit was $5 billion (and it wasn’t) then all the governor has done is borrowed to pay for operational purposes. To my way of thinking, that’s not balancing the budget, and that’s part of the reason why Fitch’s bond rating agency issued a negative outlook for Illinois.
And lastly the issue that no one talks about - the recent two year pension deferral is done, and the State’s pension obligation in the next budget year will grow by about $1.6 billion - that’s just the growth.
Virtually every state is experiencing robust revenue growth, and yet despite this growth, Illinois still has a staggering deficit problem.
Comment by Budget Watcher Thursday, Jun 15, 06 @ 12:35 pm
I am confused, it the economy good or bad. Blago says it is rolling along, but if not, its not his fault. Does this mean, the democrats concede the federal economy lagged the first four years of the Bush administration due to Clinton policy? Futhermore, Does it mean, Rod will take responsibility when his social programs are in the tank, the state is broke, and taxes are raised when he leaves office.
Comment by the Patriot Thursday, Jun 15, 06 @ 12:42 pm
One other clarification to a friend - the Medicaid backlog was never $2.6 billion under Ryan. That’s a total mis-statement.
Comment by Budget Watcher Thursday, Jun 15, 06 @ 1:24 pm
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Comment by Hoosier Thursday, Jun 15, 06 @ 1:56 pm
test comment
Comment by Denby Thursday, Jun 15, 06 @ 1:57 pm
12:26: You are correct re: SW IL and the Post-Dispatch. 11:30: Wrong! Missouri is not holding out for a $1 billion bridge. They are acting like they want nothing. MoDot wants tolls on a new bridge. IDOT and Costello have come up with a cheaper alternative and MoDot is still opposed. 1/3 of all workers in downtown STL live in IL. Bridges are important let alone their impact on national trade and commerce. A MO state senator from STL once told me that MO is controlled mostly by rural-outstate interests that don’t want to spend anything on KC or STL and he remarked how IL is the opposite. Seems right to me.
Comment by Wile Coyote Thursday, Jun 15, 06 @ 2:10 pm
The editorial is quite laughable. Maybe Rod should then attribute the April jobs numbers to George.
A Governor and General Assembly absolutely have an impact on the state’s economic climate. Everybody talks about jobs leaving Illinois for other countries. The fact is that MORE jobs leave Illinois for other states than countries. This is because their administrations recognize and value jobs.
Not Gov Hollywood who eliminated the R & D tax credit and job training credit to give a tax break to the film industry. Raised fees and ran the truckers out of Illinois.
He’s a joke.
Comment by 4% Thursday, Jun 15, 06 @ 3:06 pm
Budget Watcher reminded me of another reason why it’s harder and harder to take the P-D seriously. Every time the P-D reads a study or does a story on health care issues, they come out swinging for socialized health care. I give them credit: they argue their points well. However, seeing such a large backlog of Medicaid payments reminds me of why the argument to socialize medicine would falter horribly. And you can’t merely use the rhetoric that just paying our bills works. The system is fundamentally broken and needs overhauled. Even if this causes a hiccup in service for the needy, we need to revise our Medicaid rules and laws. We also have to stop the overuse of emergency rooms by everyone under the sun. A recent news article showed that people who need ER treatment the most, such as people who are being driven up in ambulences, are filled with people who have lesser symptoms. Because of this problem, which is coupled with the sad order of not getting reimbursed for Medicaid, many hospitals have been forced to close their ER facilities. What a shame. I wonder if the P-D takes a hard-line stance against that?
Comment by Team Sleep Thursday, Jun 15, 06 @ 5:01 pm
Regarding the Mississippi River Bridge - D & T Communications received the PR contract for this project. Since most of IDOT’s communications contracts have been chastized by the auditor general, it would be interesting to know if D & T is billing IDOT for PR work for the Mississippi Bridge that is still in limbo. Can someone shed some light on this?
Comment by Anon. Thursday, Jun 15, 06 @ 6:52 pm
A friend
I guess you are correct that GRod hasn’t tripled the states debt. Since our bond debt only went from $7 billion to $20.3 billion, that is not quite tripled. BTW. Bonds have to be repaid. Or am I mistaken?
I have been wondering for quite awhile now. How many of GRod’s vaunted “Programs” have been funded, fully, and where did that money come from? Oh, where they implemented as well?
Also, when I see discussions of how employment in state government has been reduced by blah, blah number of people, I would like to know how many actual living people were eliminated and how many of the total number were just empty postions that just existed on paper?
What are the real answers? Boy details get in the way of saying how good a job you have been doing.
Comment by Papa Legba Thursday, Jun 15, 06 @ 7:35 pm
The number of employee reductions are valid. That’s actually a huge administrative savings, on the order of $900 million per year when you factor in salary and benefits.
Comment by Budget Watcher Thursday, Jun 15, 06 @ 7:53 pm
Thx, BW.
Comment by Papa Legba Thursday, Jun 15, 06 @ 8:08 pm
Papa Legba – I too would like to see the actual figures also. At my District, the state workers who retired (and actually worked) were not replaced by actual workers. What we got were bodies who had to be trained for the simplest tasks; (i.e. one was told to change the ink cartridge in the copy machine, he asked someone how to open the fax machine because he had to change the ink cartridge. This kid was hired straight out of high school and works in our computer department.) BTW, his supervisor cannot discipline him (for playing computer games instead or working) because his dad is a good friend of the administration manager (the one who hired him).
In addition, we have had several created positions that never existed before, how about a count of the newly created positions. Imagine, just in our District we have hired 40-50 political hacks. Multiply that by 8 other Districts plus the Central Office. Don’t forget all the other State agencies!!!!
Comment by state worker #1 Thursday, Jun 15, 06 @ 9:06 pm
#1:
I know that at DCEO, which got some ink in the Tribune today due to Rezko, there are many, many, many unqualified “hires”. I can’t wait for the day there is a list created and made public of these people. DCEO is a veritable dumping ground for the politically connected. As you have described, most of these people aren’t capable of even the most simple of office tasks, yet they make BIG money. It has turned into a very sad place to work. Morale is only a word found in a dictionary in that agency.
Comment by Papa Legba Thursday, Jun 15, 06 @ 10:14 pm
While all this crap has been going on the the current administration, where have our elected officials, House and Senate, been? They see this stuff just like we all do, so why have they done nothing to stop it? The Governor may threaten them but they can go to the media and expose him easily enough. What a bunch of gutless wonders!
Vote for no incumbents, ever!
Comment by Disgusted Thursday, Jun 15, 06 @ 11:10 pm