Budget roundup
Thursday, Feb 16, 2006 - Posted by Rich Miller
The Daily Herald does the big picture.
Gov. Rod Blagojevich unveiled a spending plan Wednesday that cements the Chicago Democrat’s dramatic political about-face: from fiscal penny-pincher to leader of a major expansion of government programs that likely will cost taxpayers more each year.
During Blagojevich’s first two years, he played the role of fiscal conservative, battling his own party’s efforts to inflate spending and blasting lawmakers as “drunken sailors†engaged in a “spending orgy.â€
But as re-election looms, he’s increasingly become the politician many conservatives and Republicans feared he would be after he ended a quarter-century of Republican rule in 2002.
In the last six months alone, he’s proposed sweeping increases in government entitlements, although he says he’s investing in the future and protecting children. Even critics admit giving health care to children and creating state-paid preschool sound like good ideas, but they add that once enacted, the ideas don’t go away and every year become more expensive.
Copley touches on the conflict.
To loud cheers from Democrats, Gov. Rod Blagojevich presented a $55.4 billion state budget Wednesday that gives more money to preschool programs, a tuition tax credit and health care.
But Republican lawmakers literally jeered the governor when he said state pensions are better off under his leadership and that he has eliminated the budget deficit.
The Tribune hits the campaign theme.
Transforming his budget speech into an election-year political rally, Gov. Rod Blagojevich drew cheers from Democrats and jeers from Republicans Wednesday as he implored lawmakers to pass a $55.3 billion spending plan that boosts social programs.
Delivering his address from the ornate House chambers, the Democratic governor at some points sounded like a polished sales representative in a corporate suite, at others a fiery preacher in the pulpit.
…And gives us a good example of how much the Republicans are opposing the governor’s spending increases.
House Minority Leader Tom Cross (R-Oswego) said Blagojevich’s suggestion that the budget is balanced and the state’s fiscal house is in order is “absurd.”
Cross, the father of a child with juvenile diabetes and an ardent advocate for stem-cell research, said he was unsure whether the state could afford many of the governor’s proposals, including one for a 5-year, $100 million research program.
And the Sun-Times, via the AP, breaks down the numbers.
BOTTOM LINE: $45.4 billion in operating expenses, a 4.2 percent increase, plus $9.95 billion for building and maintenance.
WHERE IT GOES: 33.2 percent to welfare; 25.7 percent education; 16.1 percent human services; 11.2 percent government services; 7.1 percent economic development; 5 percent public safety; 1.6 percent business and environmental regulation.
NEW MONEY: $1.38 billion, including $878 million in natural tax-revenue growth.
EDUCATION: $440 million in new funding, including offering preschool to every 3- and 4-year-old and $10 million in grants to schools to reduce class sizes.
PENSIONS: $437 million to government pension systems; additional money possible from selling state assets for $30 million, selling the long-dormant 10th casino license.
HEALTH: $10 million for a program to offer health coverage to low-income veterans who live far from veterans’ medical centers; $3 million for more nurses; $15 million for stem-cell research.
PRISONS: Partly open Thomson Correctional Center with 75 guards and 200 inmates; open 200-bed unit to treat methamphetamine users at Southwestern Illinois Correctional Center.
CIGARETTE TAX: $10 million from a tax on cigars.
ENVIRONMENT: $16.5 million more for the Department of Natural Resources, including $1 million for a statewide water supply survey and enhancements at parks and natural areas.
- Krenzler - Thursday, Feb 16, 06 @ 8:36 am:
I just saw Rod’s new commercial during the WGN morning news…I’m not a fan, but the commercial is really good…he’s gonna be tough to beat.
- Randall Sherman - Thursday, Feb 16, 06 @ 8:44 am:
That speech by the Governor was just further proof that all he can do is govern by polling. At this point, I’ll push for Eisendrath in the Democratic Primary like there’s no tommorrow, but if that fails, I (and I suspect a LARGE percentage of Democratic voters in this state) will support whoever survives the Republican Primary, just to rid this state of this wretched creature that has infested the Governor’s office.
RANDALL SHERMAN
Secretary/Treasurer, Illinois Committee for Honest Government
- Budget Watcher - Thursday, Feb 16, 06 @ 8:54 am:
There’s always a lot of attention on spending priorities, but too often not enough scrutiny about the revenue assumptions. The FY2006 and FY2007 budgets each are based upon $130 million per year in state revenues that would come from a hospital assessment tax that has not been approved by the federal government. A decision from Washington is not expected until mid April, and many close to the process (other than the governor’s team) are not optomistic about it chances for approval. Failure to gain approval would be devasting for Illinois hospitals who stand to gain $470 million per year, but it also puts a very sizable hole, $260 million, in the state’s revenue assumptions.
These are the kind of fact checking issues that most in the media will either forget or be easy dismissed by the governor’s media team. It’s worth watching.
- southernilrepub - Thursday, Feb 16, 06 @ 9:06 am:
Rich
Take a look at the political puffery of Blago, that Southwestern facility has been doing the same sort of stuff for years. He’s hardly opening anything new in Southern IL. And again why has the budget increased every year that he has been in office.
- DOWNSTATE - Thursday, Feb 16, 06 @ 9:19 am:
Like I said earlier.This bunch is trying to rely on ifs and ifs do not pay the bills.BUDGET WATCHER most people don’t read the fine print like we do.As far as the cheering I think it was more for the fact that he has come up with a plan to keep the Democrats in power.As far as pre-school does anyone realize that some private pre-schoola are open 10 to 12 hours a day because people are working longer shifts.Where are we going to come up with the extra money for that kind of overtime.What at 3:30 have a 3 year old walk or ride a bus home to a empty house.Better than that this parent has to take off from work to pick the child up and take it to another private pre-school and then go back to work.All this speech was short term answers to long term debt and a shot at getting re-elected.On pre-school 45 million today 400 to 500 million tomorrow.
- VanillaMan - Thursday, Feb 16, 06 @ 9:28 am:
WHERE IT GOES: 33.2 percent to welfare; 25.7 percent education; 16.1 percent human services; 11.2 percent government services; 7.1 percent economic development; 5 percent public safety; 1.6 percent business and environmental regulation.
You cannot grow our state with figures like this. You cannot over regulate, over tax businesses and expect them to stay or thrive. You cannot keep taking from working families and giving their earnings to social program recipients. You cannot have a future if you are not investing our state budget in a future.
The idea that we have a governor who is expanding the social welfare programs in this state is simply insane. He has raised our spending every year, and on the backs of everyone who works and tries to raise a family without government help. This guy is buying votes, as the numbers above demonstrate.
We do not have a future if we continue to accept budgets like this. Illinois cannot compete with Georgia, Texas, Florida or Arizona with a budget that looks like it comes from Michigan.
- Anonymous - Thursday, Feb 16, 06 @ 9:45 am:
Vanilla Man flip flops (see Gidwitz post above.)
- DOWNSTATE - Thursday, Feb 16, 06 @ 10:28 am:
Blago knows how to get things done in a big way.With this new budget he will break 3 all time state records.1. spending 2.borrowing 3.unpaid debt.The sad thing is this is not a guy that cares it is all about re-election and the next step Washington.
- steve schnorf - Thursday, Feb 16, 06 @ 2:08 pm:
VM, you must be including medical care for poor and working class children and the elderly and infirm in your “welfare” number. I don’t think of that as welfare. One of our problems as Republicans is our attempt to define government doing anything for anyone (except business) as welfare.
Health care for kids is as much an investment in the future as education. Is education welfare?
- steve schnorf - Thursday, Feb 16, 06 @ 2:12 pm:
Daily Herald; no, actually Jim Edgar played the role of fiscal conservative and penny pincher during his first 3 years in office, and George Ryan did in his last year.
Please just look at the numbers.
I don’t have any problem with the Governor’s policy initiatives, but we need to accept that if we want them we need to pay for them.
- Papa Legba - Thursday, Feb 16, 06 @ 4:13 pm:
I like that 7.1 percent economic development part. Are we planning on throwing large sums of money this coming fiscal year to more companies such as Office Max - headed for bankruptcy, and Mittal Steel - only the WORLDS largest and wealthiest steel company.
Good job boys, keep it up. Looks good in the business section headlines.
- Cassandra - Thursday, Feb 16, 06 @ 4:57 pm:
Blago is probably taking a cue from President Bush who has been the ultimate big spender since he took office. Not the same priorities, but the belief that the money will somehow be there and it’s ok to spend without restraint.
So far, of course, nothing catastrophic has happend on the national level (Katrina was the result of incompetent local, state and federal management, not a lack of money), and our federal taxes haven’t gone up either. They’ve gone down.
If only Blago could pull off the tax reduction part and get our income tax down at least a percent. Or JBT could propose. If my taxes go down, I don’t care what the administration spends it on (although I’d rather not see it go to support our excess of state management employees and to illegal immigrants).
- scoot - Thursday, Feb 16, 06 @ 5:16 pm:
I think the “drunken sailors” were indeed that during the budget address, those that applauded. I mean it’s really clear that the Guv doesn’t understand the state’s budget at all. Borrowing more then the past three governors combined…thats absurb…and there is no way that there will be a balanced budget after this year. He doesn’t see the big picture, and he doesn’t even care. It’s up to the Illinois voters to see through this and vote him out.
- Anon - Thursday, Feb 16, 06 @ 6:44 pm:
Why is there only 1 experimental resurfacing project valued at $300,000 in the 9 county IDOT district has has Sen Dahl & Rep. Mautino as the elected reps?
- anon - Thursday, Feb 16, 06 @ 9:44 pm:
Yo Schnorf. The key word being “played.”
Was he a fiscal conservative or did he “play” a fiscal conservative?
- Budget Watcher - Thursday, Feb 16, 06 @ 11:21 pm:
I don’t wholely agree with Steve Schnorf’s position that healthcare for the poor, the near-poor, the elderly and disabled is not welfare. The term welfare, as used in context my many, is condemning, when in fact, the genesis of welfare in the 60’s was noble. The term since has evolved into a derogatory, and therefore, to retain it’s original noble intent, people like Mr. Schnorf simply redefine it.
In my opinion, if healthcare is a right, and I believe it should be, then government has to ensure it, not just for the poor and disabled, but for all citizens. I didn’t say just subsidize or give it away, but rather ensure it’s available and affordable for all.
Mr. Schnorf can call government sponsored programs for targeted populations something other than welfare if the term offends. I don’t care what you call it. I do agree with Mr. Schnorf that if our elected officials agree to picking up the liability, they better have a plan to pay for it. And from what I’ve seen in Illinois, with $ 2 billion in unpaid Medicaid bills, the plan isn’t working.