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* Tribune…
Republican Comptroller Leslie Munger has scheduled an afternoon news conference, focusing on what her staff calls “significant cash flow constraints” as a result of the political impasse that has kept the state without a budget since July 1. Munger previously has warned of a balance of unpaid bills approaching $9 billion by the end of 2015, and her office has expressed concerns about making payments mandated by the courts and the state constitution.
* We’ll be cranking up the ScribbleLive thingy at 1:30…
posted by Rich Miller
Wednesday, Oct 14, 15 @ 1:26 pm
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Oh oh…I hope after this presser she doesn’t have a “$%#^# problem” with her boss.
Any thoughts on how many times Madigan is mentioned? To early for a drinking game.
Comment by How Ironic Wednesday, Oct 14, 15 @ 1:31 pm
Munger Crew;
It’s about not having a budget, do NOT tie the Turnaround Agenda to the actual duties and constraints of the burden the Constitutional Office to prop up the Governor and the Turnaround Agenda.
Do NOT pick a side, let Comptroller Munger actually be the Constitutional Officeholder.
No “Wingman”, no “support Turnaround Agenda”.
Crisis. Need a Budget. Judicial Mandates. No Budget. Constraints. Not the way to run Illinois.
…
Please….
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 1:31 pm
Yeah, I’d say that being about $6 billion down in revenue from last year is a pretty significant cash flow constraint.
Comment by Emily Miller Wednesday, Oct 14, 15 @ 1:33 pm
Any audio?
Comment by Anon221 Wednesday, Oct 14, 15 @ 1:36 pm
Can anyone tell me if it is correct to assume the backlog is even higher as agencies are sitting on some vouchers while they wait for a budget to be passed?
Comment by Anonymous Wednesday, Oct 14, 15 @ 1:41 pm
Skipping a pension payment…. Why am I not surprised?
Comment by UIC Guy Wednesday, Oct 14, 15 @ 1:43 pm
Thanks Bruce. Didn’t need that continued revenue from the higher tax rate.
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:44 pm
As of Labor Day the state portfolio had about a $10 billion balance. Whatever political objections there are to sweeping legally permissible state funds have to be less awful than missing pension payments. If you don’t want to sweep them do interfund borrowing, but skipping pension payments is going to have a snowball effect on other state finances.
Comment by The Captain Wednesday, Oct 14, 15 @ 1:45 pm
Bruce Rauner failed where Pat Quinn didn’t;
Pension payments.
It’s not on the Comptroller, it’s on the Governor.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 1:46 pm
Thanks Bruce. You have the record for growing debt at the fastest rate in history.
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:46 pm
“It’s one of the few areas we have some flexibility because it is not covered under a Court Order and delay will not cause immediate hardship” - No hardship for billionaire Rauner, maybe . . . not so much for retirees who rely on their pension. Maybe the Gov will float us a loan??
Comment by Waldi Wednesday, Oct 14, 15 @ 1:46 pm
Delay pension payment or just take a “holiday”??
Comment by Nieva Wednesday, Oct 14, 15 @ 1:46 pm
Thanks Bruce. You are doing a great job.
Very Truly Yours,
Chicago Tribune Editorial Board
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:48 pm
Ah. So Quinn never skipped a pension payment — but savvy businessman Rauner does. Sure, a “delay”. Whatever.
Comment by Frenchie Mendoza Wednesday, Oct 14, 15 @ 1:48 pm
While she’s announcing this horrific news, Governor Rauner tweets his support for Charlie Parker’s Diner in an online “breakfast battle”. The man is truly depraved.
Comment by Snucka Wednesday, Oct 14, 15 @ 1:49 pm
Dear Bruce,
Keep up the good work. Send more donations.
We’re giving ourselves raises next year because of your great work.
Love,
Illinois Policy Institute
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:50 pm
So this is how businesses are run, eh?
Why do I suspect that this skipped — er, delayed — pansion payment was something had planned for months and months?
Comment by Frenchie Mendoza Wednesday, Oct 14, 15 @ 1:51 pm
Rich Miller: “Keep in mind that retirees will still get their pension checks. This payment is state money handed over to pension funds to invest.”
****
True, but I’ll bet it won’t get spun that way.
Comment by Anon221 Wednesday, Oct 14, 15 @ 1:51 pm
BTW — I’m sure the Trib (and Radogno and Barickman) will praise the governor’s courage for skipping this pension payment.
Comment by Frenchie Mendoza Wednesday, Oct 14, 15 @ 1:52 pm
Dear Bruce,
What did I ever do to you to deserve your dislike for me?
Sincerely,
Retired Teacher
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:52 pm
And Nero ate breakfast shoes as Springfield burned.
Comment by Tuesday's pizza Wednesday, Oct 14, 15 @ 1:55 pm
Was this news conference from the Thompson center?
Comment by Foster brooks Wednesday, Oct 14, 15 @ 1:56 pm
Oh my gosh, governor. Stop tweeting.
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 1:58 pm
Dear Leslie:
Make sure to blame Democrats.
Or else,
Bruce
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 1:58 pm
“Tweeters are gonna Tweet”
The Rauner Press Shop is literally hanging Munger’s Crew out to show the damage, and the Governor, “ck”, whomever is tweeting a “thumbs-up” pandering smiling like a Jamoke touting a breakfast online poll?
That would fry my eggs, breakfast or no breakfast if I was on the Munger Crew…
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 1:58 pm
First of all, the retirees have nothing to worry about as the pension systems have plenty of assets to tide them over for now.
More importantly, Madam Comptroller, read the law. “Cash flow” or even “lack of a budget” are not acceptable reasons for stiffing pension payments. In the vernacular, “they don’t need no stinking budget.”
Comment by Arthur Andersen Wednesday, Oct 14, 15 @ 1:58 pm
Does the pension ramp not require payments?
Comment by Elo Kiddies Wednesday, Oct 14, 15 @ 1:59 pm
And no, it’s not “State money handed over to pension funds to invest.” Not even close.
Comment by Arthur Andersen Wednesday, Oct 14, 15 @ 2:01 pm
See you in court Bruce.
Comment by PublicServant Wednesday, Oct 14, 15 @ 2:02 pm
==tweeting a “thumbs-up” pandering smiling like a Jamoke touting a breakfast online poll==
One of the most unintentionally hilarious things ever. Munger is being an adult. And Bruce is … I think OW said it best above.
Stop tweeting, Superstar Team. Put the twitter down. Slowly back away from the twitter.
Comment by Roamin' Numeral Wednesday, Oct 14, 15 @ 2:02 pm
“Agencies providing shelter for domestic violence victims have shut their doors.”
But don’t worry, the governor had a nutritious breakfast at a local eatery.
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 2:03 pm
Leslie - how is that “wingman” thing working out for you?
Comment by Anonymous Wednesday, Oct 14, 15 @ 2:03 pm
Keep tweeting, Rauner.
Maybe it’s time for some ribs now? Or some brisket? Yummy.
Two thumbs up and a smile while I stand here in my wrinkled pants holding a plate of fried, fatty carbs.
What, me worry?
Comment by Frenchie Mendoza Wednesday, Oct 14, 15 @ 2:04 pm
“More than 130,000 college students have had their grant funding cut off”
But you should try the biscuits and gravy. Mmmm Hmmmmm Good.
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 2:05 pm
So, is the joke suppose to be…that at the exact time the Comptroller is announcing that the Nov. pension payment will not be made, the Gov. is giving the thumbs up to a cook off being held? (see picture and comment at 1:42 @GovRauner)? Really?
Comment by Former Hoosier Wednesday, Oct 14, 15 @ 2:06 pm
No words.
Comment by Nick Name Wednesday, Oct 14, 15 @ 2:06 pm
Since the courts wouldn’t go along with sticking it to retirees who paid in every penny, this is just another option to take. Starve the pension funds and eventually……..voila! Mission accomplished, just a different tactic. Who couldn’t see this one coming?
Comment by AnonymousOne Wednesday, Oct 14, 15 @ 2:08 pm
Dear Austin Blvd
You were a member of a union.
Best regards,
Bruce
Comment by Huh? Wednesday, Oct 14, 15 @ 2:08 pm
TeamBungle handles the problem
Forget about those silly bills let’s turn up at 1:42 p.m. (After we raced home — to Springfield)and get some breakfast.
Huh
Did Wingman forget to check with Supreme ATC `1
Comment by Anonin' Wednesday, Oct 14, 15 @ 2:11 pm
The Munger Press Shop, and her Crew for cripes sake, deserves, at minimum, an apology from the utterly ridiculous Rauner Press Shop.
Minimum.
Who does that? Seriously. Munger is taking the heat for Rauner and his Crew and they tweet… That?
It infuriates me.
I can’t stand watching two things done poorly;
Politics and baseball.
Ugh. C’mon, that tweet couldn’t wait an hour?
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 2:13 pm
So, do residents get the complete irony of all of this? While the Gov. is out schmoozing, his Comptroller is telling us that the sky is now, officially, falling?
Comment by Former Hoosier Wednesday, Oct 14, 15 @ 2:15 pm
Governor Ahab, your ship is sinking.
But just ignore the leaks that are filling the hold, and keep an insane eye on that white whale.
Comment by PolPal56 Wednesday, Oct 14, 15 @ 2:15 pm
===Who does that? Seriously. Munger is taking the heat for Rauner and his Crew and they tweet… That?===
Did the gov’s office not get the memo? You would think a pronouncement of this magnitude would have the gov or atleast his staff preparing for some sort of comment instead of tweeting breakfast.
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 2:16 pm
The arrogance knows no bounds.
Epic fail as a Governor!
Comment by Jack Stephens Wednesday, Oct 14, 15 @ 2:18 pm
Which is worse;
Rauner and his “Press” Shop actually tweeting that picture to undercut Comptroller Munger…
Or… that Governor Bruce Rauner just doesn’t care that the Illinois Press Corps is being told bad Illinois is hurting right now, while Rauner tweets about frivolous things.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 2:19 pm
I love the contrast.
Governor pushing Charlie Parker food prize while Comptroller talks about the disaster Rauner has cooked up.
Comment by Norseman Wednesday, Oct 14, 15 @ 2:20 pm
Epic timing gives way to great comedy. I am crying…I predict a deleted tweet in 3…2…
Comment by Politix Wednesday, Oct 14, 15 @ 2:21 pm
“It’s one of the few areas we have some flexibility because it is not covered under a Court Order and delay will not cause immediate hardship”
I think you mean “it is not covered under a Court Order yet”
Comment by drew Wednesday, Oct 14, 15 @ 2:21 pm
Wasn’t there a comment from Rauner at the end of yesterday’s presser about how he was immediately going back to Springfield?
Couldn’t get wait to get as far from that building as possible.
Comment by Sam Weinberg Wednesday, Oct 14, 15 @ 2:22 pm
If the Dems haven’t screen shot that tweet by Rauner yet…
Amateur Hour, Amateur Hour…
Before you guys worked for Gov. Rauner you as individuals were better than this. Honest.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 2:23 pm
Could this be the prelude to reaching “impasse”? That whole thing much to quite. I keep remembering the phrase “crisis=opportunity” .
Comment by Blue dog dem Wednesday, Oct 14, 15 @ 2:23 pm
@AnonymousOne @ 2:08 Starving the pension fund doesn’t help them any, just gets them in more trouble as denoted in Lindberg v IFT (read more here page 11 of PDF/page 4 of document). http://cgfa.ilga.gov/upload/2008%20january%20handbook%20of%20illinois%20pension%20case%20law.pdf
The management summary boils down to; The state is under no obligation to fund the pension systems, they are only constitutionally obligated to pay the benefits as they come due to members of said systems.
Comment by Kevin Highland Wednesday, Oct 14, 15 @ 2:27 pm
Wasn’t making the pension payments the one big thing Quinn got right?! The contrast here is priceless; the governor’s interest in playing costume (”It’s Wednesday, the brown blazer and khakis will work”) makes him look profoundly silly here.
Comment by Toffee Wednesday, Oct 14, 15 @ 2:27 pm
Skipping pension payments is an extraordinarily expensive way to borrow money. The state is (still) able to issue tax-free bonds at relatively low interest rates.
I was going to say: not what one might have expected from a business-person Gov., but given the record of people in finance over the last decade (or three), perhaps not so surprising. But still an amazing disaster.
Comment by UIC Guy Wednesday, Oct 14, 15 @ 2:31 pm
Who didn’t know this was comin’ ??
Comment by forwhatitsworth Wednesday, Oct 14, 15 @ 2:33 pm
Re: tweet.
See Governor? This is what happens when you keep your calendar secret from everyone!
Comment by GraduatedCollegeStudent Wednesday, Oct 14, 15 @ 2:34 pm
So, borrowing already. Not paying the pension fund is borrowing although I’m surprised it may happen so soon. Of course, the general public may not be too distressed about that, given that few in the private sector have defined benefit pensions, an antiquated concept now to so many.
How about some early fund sweeps. You know they’re coming. Why wait until June.
Comment by Cassandra Wednesday, Oct 14, 15 @ 2:35 pm
===Who didn’t know this was comin’ ??===
Those who don’t subscribe?
lol
Comment by Rich Miller Wednesday, Oct 14, 15 @ 2:36 pm
= in the private sector have defined benefit pensions, an antiquated concept now to so many.=
“So many” workers who think that they’re better off without a defined benefit pension?
Comment by Qui Tam Wednesday, Oct 14, 15 @ 2:40 pm
“===Who didn’t know this was comin’ ??===
Those who don’t subscribe?
lol”
Is the governor a current subscription member?
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 2:41 pm
It still comes down to not having the revenue to make the payments… like it or not, she can’t print money and the courts have tied up much of the rest of the revenue coming in. so as a couple have suggested to take it to court to force the payments… payments from where? we already are not paying vendors and are being cutoff day by day. utilities are being cut off… pretty soon fuel will be cut off as well. then what? The state just stops and everyone sits and spins?
Comment by Allen D Wednesday, Oct 14, 15 @ 2:43 pm
Can I point out a couple of things before the hysteria continues?
1. She didn’t say she was shorting the pension systems. She said she was delaying the monthly payment. Two different things. I believe she said her intent was to have made the full pension payment due this fiscal year by the end of the fiscal year.
2. Retirees aren’t going to be impacted. Take a breath.
3. This ain’t the crisis you’re looking for to push this thing over the edge.
Comment by Demoralized Wednesday, Oct 14, 15 @ 2:43 pm
===Munger said she has offered to host leadership meetings, offered sandwiches, chocolate chip cookies.===
There’s the problem. No breakfast.
(I’m sorry. I can’t help it. What a disaster)(I am seriously laughing so hard right now. She offered a leaders’ meeting, complete with cookies and sandwiches. OMG)
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 2:44 pm
allen d. they’re still collecting income taxes. they’re selling lottery tickets. the 1 arm bandit is out in full force. what do you mean not having the revenue to make the payments? there better be a big bag of money somewhere.
Comment by sickntired Wednesday, Oct 14, 15 @ 2:45 pm
- Demoralized -,
I’m pointing out the glaring contrast that Quinn made the payments, Candidate Rauner continually said “Pat Quinn failed”…
Governor Rauner lets income tax levels fall, let’s Illinois continue without a budget, tweets about a breakfast contest as the Illinois Comptroller details Illinois’ continual fiscal mess, and Rauner misses a pension payment, with a “thumbs up”.
Bruce Rauner failed.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 2:49 pm
I don’t understand why Rauner cut the tax in the first place. It wasn’t like anyone noticed - I sure didn’t. Should have left the taxes alone - they will have to go up again anyway - Rauner even said so. But instead - he holds that over everyone and says he won’t even talk about a tax hike or the budget UNLESS he gets all his agenda passed first. Also don’t understand why they are not in session until this is resolved. If we didn’t do our job - we wouldn’t have one.
Comment by Just me Wednesday, Oct 14, 15 @ 2:52 pm
“Leslie? Bruce. You did great…You see my tweet?…”
What a complete lack of professional courtesy and respect for Munger and her Crew, given what Munger is also trying to do by not putting the complete onus on the Governor.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 2:54 pm
Dear Austin Blvd
For those who never outgrew adolescence, you were an authority figure. Those are to be despised and thwarted.
You made me the success I am. I’ll never give you an ounce of credit, after all, I’m a genius who could have done it all without you but that you exist reminds me that I didn’t do it without your guidance and help. It hurts my fragile ego to have to admit that.
Best regards,
Bruce
Comment by AnonymousOne Wednesday, Oct 14, 15 @ 2:54 pm
Let them eat (pan)cake!
Comment by Omega Man Wednesday, Oct 14, 15 @ 2:55 pm
‘ “===Who didn’t know this was comin’ ??===
Those who don’t subscribe?
lol”
Is the governor a current subscription member?’
Maybe we should start a collection for a subscription to CapitolFax for the Gov. Just to help him do better at governin . . .
Comment by RD55 Wednesday, Oct 14, 15 @ 2:57 pm
===Also don’t understand why they are not in session until this is resolved. If we didn’t do our job - we wouldn’t have one.===
The governor won’t deal with a budget until his demands are met. Remember the Blago years? He ordered a special session. They would be in session for about 5 minutes, then adjourn. You can’t do anything when the person that orders you to do something won’t accept any of your work.
Comment by Ducky LaMoore Wednesday, Oct 14, 15 @ 3:00 pm
Well aren’t there other messages here in the pension payment delay? Message 1: debt payments have priority over constitutionally required payments. Message 2: To retirees call your Democrat allies and tell them to sell out the public sector unions to allow for the Governor’s “more than reasonable” language on public sector unions so money can be found for your pensions.
Does anyone believe that Comptroller Munger did not discuss this payment delay with Governor Rauner?
Comment by Rod Wednesday, Oct 14, 15 @ 3:01 pm
Just to make sure we understand the talking points from the Administration, I have cross posted this.
We are severely over-taxed with the income tax in Illinois. How can we even dream of raising taxes to work on our $9B deficit!!! /s
In a somewhat regional geographic order, from NW to SE, single filer status at a somewhat decent level of income.
NE — 6.86% over $30K income
KS — 4.6% over $15K
MN — 7.05% over $25K (and higher)
IA — 6.8% over $30K (and higher)
MO — 6% over $9K
WI — 6.27% over $22K (and higher)
IL — 3.75%
KY — 5.8% over $8K (and higher)
MI — 4.25%
IN — 3.3%
TN — 6%
We are beat by one state. If you make over $30K per year, Illinois is a tough place to live and pay income taxes. /s
http://taxfoundation.org/article/state-individual-income-tax-rates-and-brackets-2015
Comment by cdog Wednesday, Oct 14, 15 @ 3:01 pm
cdog, those TN legislators must work quickly - as of yesterday, TN had 0% income tax, nada. Their sales tax is somewhat higher than the IL average (about the same as Cook County’s), but their real estate taxes are VERY low compared to Illinois. And, they are not in the same trouble with respect to pension debt vs. Illinois. Shouldn’t we be calling up the TN governor to ask how they do that?
Comment by Hokey Horner Wednesday, Oct 14, 15 @ 3:12 pm
==debt payments have priority over constitutionally required payments.==
Debt payments are also constitutionally required
Comment by Demoralized Wednesday, Oct 14, 15 @ 3:16 pm
“Tennessee has no income tax but does have a “hall tax” — that is, a 6% tax on interest and dividends, which is specifically allowed by the state constitution. Tennessee also has a 7% sales tax” - USA today
So if you are living off of stocks, bonds and such, you will pay tax.
Comment by a drop in Wednesday, Oct 14, 15 @ 3:26 pm
===We are beat by one state. If you make over $30K per year, Illinois is a tough place to live and pay income taxes. /s====
And Indiana lets their municipalities and counties impose an income tax so most of their residents are paying 4-6% in total
Comment by Been There Wednesday, Oct 14, 15 @ 3:30 pm
What AA said. Thank goodness for tne grown ups like him and RNUG in tne room who actually did their jobs back in the day and know what they’re taking about to rebut these obvious, self-serving lies.
No class in this crew.
Maverick Munger is just pulling a grift, a stunt, for Gov. Goose, or whatever character he is in that movie.
Good luck selling it to fhe judges whom the Rauner brain trust chose to abdicate executive power to. Being a judge is like being Paulie Vario: —- you, pay me.
Willie’s right. Quinn managed to make the payments, in the middle of the biggest downturn since The Depression, for crying out loud.
But he wasn’t a kook willing to drive the state into the ditch so he could use the government to destroy unions and put that trophy in his man cave.
Or choose, from among hundreds of budgetary line items, to get nasty on working women with children looking to stay off welfare and make it in the working world.
Bruce and DI ain’t exactly Bill and Melinda, are they?
Comment by Wordslinger Wednesday, Oct 14, 15 @ 3:31 pm
HEADLINE - Please…? AP? Trib? Somebody?
“ILLINOIS NEAR LOWEST INCOME TAX RATE OF ALL SURROUNDING STATES”
Comment by cdog Wednesday, Oct 14, 15 @ 3:43 pm
This isn’t Rauner’s fault. Do y’all REALLY think after 10 months in office one person could do this?
This ‘disaster’ is a result of Democrat chokehold in our state for the last umteen years!
Thanks a lot Mr. Madigan. You ASS!
Comment by Roma Wednesday, Oct 14, 15 @ 3:46 pm
Incompetence on steroids (no offense cubs fans or blago)!
Comment by Minnie Wednesday, Oct 14, 15 @ 3:47 pm
- Roma -
Governors own budgets.
Sorry. It’s true. Always was, always will be.
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 3:49 pm
That’s U.S., not you ass.
Comment by Demoralized Wednesday, Oct 14, 15 @ 3:53 pm
==This ‘disaster’ is a result of Democrat chokehold in our state for the last umteen years!==
But things are getting worse, and doing a better job overall than Pat Quinn should’ve been easy for a man who was successful at everything he tried.
Comment by AC Wednesday, Oct 14, 15 @ 3:53 pm
@cdog -
NE — taxes ALL retirement income
KS — SS exempt, some retirement income taxed
MN — taxes ALL retirement income
IA — SS exempt, most retirement income taxed
MO — taxes most retirement income
WI — SS exempt, all other retirement income taxed
IL — taxes NO retirement income
KY — SS exempt, most retirement income taxed
MI — SS exempt, most retirement income taxed
IN — SS exempt, most retirement income taxed
TN — no state income tax at all
Care to create a property tax chart as well?
Comment by nixit71 Wednesday, Oct 14, 15 @ 3:53 pm
And I’ll cross post this: @cdog. Not exactly beat by IN, since Indiana counties levy income taxes in addition to the state income tax. Since there are no county income taxes in IL, the total state + local income tax is higher in IN than IL (with the exception of a few counties where it is very close). On average, income tax is considerably higher in IN. Bottom line: IL has the lowest income tax in our region (except TN? Seems they have an effective scheme to tax the wealthy). See here for details: http://www.in.gov/dor/reference/files/dn01.pdf
Comment by X-prof Wednesday, Oct 14, 15 @ 3:55 pm
In any other state that I know of, a development like this this would prompt immediate, bipartisan, productive, legislative and executive meetings and a resolution would be forthcoming.
Only in Illinois would the governor twirl his proverbial moustache and whisper “excelleeeeent”.
Comment by Gumby Wednesday, Oct 14, 15 @ 3:55 pm
Well said Word, but wasn’t it Paulie Cicero?
Comment by 47th Ward Wednesday, Oct 14, 15 @ 3:56 pm
When all taxes are counted, sales, property, fees, income tax, Bruce Rauner pays 4.6% of income. The local Walmart worker pays 13.2%. But of course, his western land holdings and homes are beyond reach, just coincidental.
Comment by ottawa otter Wednesday, Oct 14, 15 @ 3:58 pm
To the post - Willy at 2:49 and 3:49 were to the point.
So what is our Governor doing???????
Comment by illini Wednesday, Oct 14, 15 @ 4:03 pm
I think that was jackie gleason, “the toy”?
Comment by Minnie Wednesday, Oct 14, 15 @ 4:04 pm
Taking what amounts to a short-term loan from the pension system is not an irrational act. Taxpayers will presumably have to pay interest, though. Do we assume she couldn’t do better in the markets.
In any case, I’m convinced that whatever and whenever the tax increase, part of getting out of this fy will be significant borrowing.
Comment by Cassandra Wednesday, Oct 14, 15 @ 4:08 pm
Austin Blvd., 1:46pm: “Thanks Bruce. You have the record for growing debt at the fastest rate in history.”
To say the least, a noteworthy quote. I wish I could make every media outlet read it slowly and carefully. Maybe a sudden, bright lightbulb would appear over their collective heads.
Comment by Gumby Wednesday, Oct 14, 15 @ 4:10 pm
It appears that the best example of waste is a governor and staff tweeting on state time. Damn union employees !
Comment by West Side Willie Wednesday, Oct 14, 15 @ 4:13 pm
Thanks - Wordslinger -, and thanks for trying to keep all of us here honest. Always appreciate that I know you will.
- 47th Ward -
Vario was the “guy” that “Paulie Cicero” was based on.
Like Jimmy Burke was “Jimmy Conway”…
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 4:17 pm
Thanks, Word.
In any case, they’re headed for the Danger Zone.
Comment by Arthur Andersen Wednesday, Oct 14, 15 @ 4:18 pm
Sad but pretty much expected this would eventually happen. I know some people have expected since the middle of LAST summer that this was part of the budget balancing plan.
Comment by RNUG Wednesday, Oct 14, 15 @ 4:20 pm
@X-prof-3:55
In addition some Indiana counties also have a personal property tax on vehicles.
Comment by DuPage Wednesday, Oct 14, 15 @ 4:28 pm
the pension payment is a bit of a misnomer. the payment includes the statutory ramp to pay back prior decades of borrowing. the ramp keeps increasing under the statute based on an artificial payment amortization plan. the GA could adjust the ramp payment and save billions, and still be paying extranin on top of yhe actual pension cost.
we should seperate the ramp from the actual cost to avoid confusion in budget discussions, since the ramp amount is a self inflicted adjustable payment, not the actual pension cost of current workers.
Comment by Ghost Wednesday, Oct 14, 15 @ 4:29 pm
Maybe this is what’s needed to send thousands of retirees to Chicago and Springfield with pitchforks! Next will be the layoff of state employees.
Comment by Roma Wednesday, Oct 14, 15 @ 4:30 pm
I’m declaring now that Illinois is now officially “Detroit!”
Comment by Roma Wednesday, Oct 14, 15 @ 4:31 pm
Dear Rich:
Re: ROMA @ 2:36pm
You’ve deleted my comments for a lot less.
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 4:33 pm
Having made the above comment, I agree with -Rich-, -AA-, et al, that the actual payments to the retirees are not in danger. This is just about the monthly payments that should be going into the five funds from the State.
Can they skip, reduce or delay the payments? According to IFT v Lindberg (1975), they answer is yes to all three. That case pretty much said the State could fund it any way they wanted to. But according to the Edgar Ramp bill, the answer is no to skipping / reducing in a given Fiscal Year. Not sure how a delay within the same FY would be viewed under the Ramp legislation. If they do catch it up in the same FY, it may be OK or at least in the gray area.
IMO, in order to be completely legal, I believe the State will have to ask the General Assembly to allow any skipping across FY’s or any reduction within a FY.
Now I’m going to go read everyone’s comments.
Comment by RNUG Wednesday, Oct 14, 15 @ 4:35 pm
That would be 3:46
Comment by Austin Blvd Wednesday, Oct 14, 15 @ 4:35 pm
Austin, every now and then you gotta let a raver rave. For entertainment purposes.
Comment by Rich Miller Wednesday, Oct 14, 15 @ 4:35 pm
So what “magic beans” enable Illinois to get by with such a low income tax? Answer: high property taxes, high sales taxes, underfunding education and social services, and stiffing the pension funds. We dropped that last bean for a while, but with the latest income tax cut, it’s baa-ack.
Comment by X-prof Wednesday, Oct 14, 15 @ 4:40 pm
== Since the courts wouldn’t go along with sticking it to retirees who paid in every penny, this is just another option to take. Starve the pension funds and eventually……..voila! Mission accomplished, just a different tactic. Who couldn’t see this one coming? ==
Might be someone’s plan but it won’t work. the courts have already said, and repeated, the actual pensions have to be paid when due. If it ever were to get to that point years from now, all it would take would be a request that the courts order the pensions paid from GRF.
Comment by RNUG Wednesday, Oct 14, 15 @ 4:41 pm
Thanks Willy. The things I learn on this blog!
Comment by 47th Ward Wednesday, Oct 14, 15 @ 4:45 pm
RNUG, I think you hit on the “unaddressed distinction” between today’s issue and IFT v. Lindberg. The issue today is not failure to fund at “X Level,” but rather the unprecedented failure to fund “a continuing appropriation.” That should be a slam dunk or our bonds aren’t worth their weight in paper.
Comment by Arthur Andersen Wednesday, Oct 14, 15 @ 4:45 pm
- 47th Ward -, respectfully answered, Bud, you’re welcome.
Agreed, the stuff learned here…
Comment by Oswego Willy Wednesday, Oct 14, 15 @ 4:51 pm
Roma, I’m declaring that you are now officially “a troll!”
Comment by Norseman Wednesday, Oct 14, 15 @ 4:58 pm
47, read “Wiseguy” or “The Lufthansa Heist” if you really want to know a lot about “all that.”
Comment by Arthur Andersen Wednesday, Oct 14, 15 @ 4:59 pm
In light of the non-deletion of the entertaining raver raving, I have been thinking for a while that someone needs to develop a board game, so we can all play and increase our posting skills. I have been doing better lately, but I do get edited.
New Game - “Mr. Miller’s Filters”
Comment by cdog Wednesday, Oct 14, 15 @ 5:11 pm
Thanks AA, I somehow skipped Peleggi’s Wiseguy but will gladly accept your assignment. Good stuff there.
Next thing you know, somebody will claim Frank Sinatra was the basis for Johnny Fontaine or something weird.
Comment by 47th Ward Wednesday, Oct 14, 15 @ 5:18 pm
If I remember correctly, the ISC wording in the SB1 decision basically could have been interpreted to read ‘ shut up and pay out the agreed benefits’ or we will order you to ‘pay in ‘. I think there will be a court decision that says ‘pay in’. Please correct me if I am wrong.
Comment by thoughts matter Wednesday, Oct 14, 15 @ 5:29 pm
Umm.. this no different, so far, from cash flow situations the systems have faced with before. Quinn made the payments, nobody has ever said he made them on time. Breathe people.
Comment by Anonymous Wednesday, Oct 14, 15 @ 5:43 pm
== The issue today is not failure to fund at “X Level,” but rather the unprecedented failure to fund “a continuing appropriation.” ==
-AA-, I agree although I didn’t phrase it as clearly as you did. In theory, the first “two things” to be paid are supposed to be the bond(s) interest / repayment and the pension funds. From a cash flow perspective, those are some of the biggest payments, so I can understand the Comptroller wanting to delay the big payments in favor of making smaller ones.
But they could be leaving themselves open to an unequal treatment lawsuit / request for TRO if they don’t skip the bonds also.
Comment by RNUG Wednesday, Oct 14, 15 @ 5:50 pm
Predicted weeks ago, and not really much alternative for Munger right now. We might slam the overall play by team Rauner, but Munger’s boxed in.
Comment by walker Wednesday, Oct 14, 15 @ 5:55 pm
I did not see if she addressed October payments and she basically left December up in the air. The State is only behind 30 days now which is better than the average cycle during the Quinn administration. Maybe at the end of December they are behind the average, but it won’t be uncharted waters. That’s not to say it won’t become uncharted waters, but we are well within recent norms so far.
Obviously there are costs associated with delayed payments and it is a bad practice, but some here should wipe the foam from their mouths. /Not a Rauner supporter, just someone who is afraid of Springfield becoming more like DC.
Comment by Anonymous Wednesday, Oct 14, 15 @ 5:58 pm
What would Sen Raoul like us to not pay instead next month? Some state employees?
Comment by Anonymous Wednesday, Oct 14, 15 @ 6:22 pm
The Chair of the committee that developed the unconstitutional pension plan to rob retirees is so concerned about making our full monthly pension contribution?
Comment by Anonymous Wednesday, Oct 14, 15 @ 6:30 pm
Part of me wonders if Munger’s pressers are really intended to boost the police powers argument when discussing pensions. She’s Rauner’s self described “wingman” after all.
Comment by Stones Wednesday, Oct 14, 15 @ 6:46 pm
A little off topic but we made the ABC National News Tonight. It was reported that IL will not be able to pay above $600 in lottery winnings.
Just gets better every day.
Comment by Bemused Wednesday, Oct 14, 15 @ 7:08 pm
This is going to be the beginning of a common theme were going to see with more frequency: payments delayed, skipped, etc. What is outrageous is Governor Press Conference’s reaction to all of it and his hope that people have short memories. He’s clearly in over his head and shows his amateur status daily.
Comment by Now What? Wednesday, Oct 14, 15 @ 7:10 pm
stones the problem with that theory is the supremes said you cant drop your taxes then declare a fiscal crisis. so she is not making a police powers case so much as showing the impact of the self inflicted tax decrease
Comment by Ghost Wednesday, Oct 14, 15 @ 7:49 pm
Here’s the thing, Munger: you’re a Rauner puppet. You clear everything through Rauner — so the only reason you say all this is because Rauner’s office has given you thumbs up.
Not cool.
Comment by Macbeth Wednesday, Oct 14, 15 @ 9:52 pm
== Part of me wonders if Munger’s pressers are really intended to boost the police powers argument when discussing pensions. ==
Go read the entire SB-1 pension decision by the IL SC. They made it clear they weren’t going to buy ANY self-created “police powers” argument … and this is clearly self-created by the state’s failure to maintain / raise revenue.
However, this could be some Rauner frat house brain trust idea that it would fly IF they could get it into Federal court … but (a) I don’t see a valid way to get it into Federal court under current laws and (b) if it did get there, the Federal courts have a long history of “hands off” when it comes to States dealing with their own actual State employees. Yes, the Feds do treat state employees differently than private employees and, in some instances, state employees have less rights than they would if they worked for a private company.
Comment by RNUG Wednesday, Oct 14, 15 @ 10:13 pm
All revenue from any new source (riverboats, casinos, fracking companies, anything etc)goes straight into the pension fund, until said fund is fully funded. Once the pension fund has been fully funded, the new sources of revenue may be re-allocated to other areas.
All welfare recipients get drug tested. If they test positive, they are given 1 chance to get clean. A repeat positive test cuts them from the program. If they have money for drugs, they have money for food. If they don’t like it they can leave the state. State employees are subject to drug testing. Welfare recipients receive money from the state, they should be tested as well.
Limit welfare to two years,require recipients to attend school, 20 hours a week to learn a new marketable skill, schooling is paid for by the state. Provide free child care while in class. Child care, school/job training and a term limit on welfare gives an incentive to become productive rather than just a burden. Limiting welfare would help eliminate career free loaders who would otherwise be able to work. Require photos on link cards.
Legislative raises voted on by the public, not the by lawmakers. Lawmakers earn median state income. They want more money, improve the state economic situation.
Comment by My 2 cents Thursday, Oct 15, 15 @ 12:59 am