Budget roundup
Thursday, Feb 21, 2008 - Posted by Rich Miller
* This piece accurately sums up the general consensus at the Statehouse…
Gov. Rod Blagojevich, in his sixth combination State of the State and budget address, used a rehash of old ideas — leasing the lottery, imposing a payroll tax on some businesses, selling future revenues for a lump-sum payment — to make it all work.
But by doing that, he may already have doomed many of his proposals.
“I think it could be a tough year,” Rep. Gary Hannig of Litchfield, the House Democrats’ top budget negotiator, said afterward. “Many of the proposals the governor talked about are things we rejected in the past. I think those are things that are going to be difficult to resurrect.”
* But the best line goes to Tom Cross…
“If today was a conciliatory speech, then I applaud that,” said House Minority Leader Rep. Tom Cross, R-Oswego. But “it’s going to take a while to rebuild that trust. And it’s going to take some action, not just words.”
* There was no widespread agreement on anything, including from Senate President Emil Jones…
Senate President Emil Jones (D-Chicago) said he would support the governor’s lottery [lease] proposal. But he seemed frustrated by the administration’s resistance to raising income taxes.
“We could put more money into education, we could do property-tax relief, we could do a [construction] bill with that income-tax increase,” Jones said.
Keep your eye on that issue.
* One of Jones’ top lieutenants wasn’t thrilled with the Lottery lease, either…
Leasing the state’s lottery didn’t bode well with some lawmakers including state Sen. Terry Link, a Waukegan Democrat.
“I think that what this will do is cause us to look more closely to what we were doing on the riverboats last year — the expansion,” said Link, who’s backing a new casino for Waukegan.
* Sen. James Meeks, who has a new income tax hike plan, also dumped on the Lottery idea…
“We’re always willing to work with the governor, but I don’t know if any of those plans that he outlined today will go anywhere,” said Sen. James Meeks, D-Chicago.
He mentioned the governor’s idea of privatizing the state lottery as an example of a doomed proposal.
* The governor defended the Lottery lease…
He said privatizing the state lottery to pay for the construction program is a “fiscally sound idea.”
* Business groups weren’t overly impressed with the governor’s proposed, one-time 20 percent tax break…
Chamber president and chief executive officer Doug Whitley summed it up this way: “I’m glad that he’s finally recognizing that he needs to pay a little bit of attention to business, but as far as I’m concerned, he can keep that business tax credit, which is a one-time proposal. While on the other hand, he’s trying to raise over $1 billion annually from employers. That doesn’t make a lot of sense to me.”
The tax increase Whitley referenced is the 3 percent payroll tax for employers that don’t offer health insurance to their workers.
* Senate Majority Leader Debbie Halvorson, a top tier congressional candidate, was even skeptical about the governor’s plan to rebate taxes to some families, which is based on the bipartisan “stimulus” plan just adopted in Washington, DC…
Unlike Washington, however, the state’s chief executive doesn’t appear to have many members of the legislature on board.
“We’re not like the federal government. We cannot print more money,” said Senate Majority Leader Debbie Halvorson, D-Crete.
* The governor’s emphasis on rebating taxes to some families also drew fire from people who are upset at his refusal to increase funding for higher education, which will likely drive up tuition costs next fall…
State Rep. David Miller, D-Lynwood, who leads a House higher education committee, said Blagojevich’s support for working families should extend to keeping tuition costs reasonable. “When you look at an overall package for the middle class that he talked about, they weren’t included in this budget,” Miller said.
* More links…
* Operating budget
* Dot points
* Watch the budget address here
* Read it here
* Illinois GOP leader reacts to State of State
* Gov’s plan funds road upgrades, tax breaks
* Cuts may signal closing time for Stateville
* AP: Blagojevich wants across-the-board cuts of 3% at many state agencies, although some would take even bigger hits. The Department of Natural Resources, for instance, would see a 40% cut in state funds and lose about 200 employees.
* Tribune: The governor nobody trusts
* Bond Buyer: Illinois Gov. Blagojevich Proposes Borrowing Spree in ‘09 Budget
* Growing deficit concerns Lake County lawmakers
- wordslinger - Thursday, Feb 21, 08 @ 10:00 am:
The governor has a lot of friends.
- Levois - Thursday, Feb 21, 08 @ 10:02 am:
Wasn’t Rev. Meeks on board with a plan by the governor to lease the state lottery in order to pay for public education? You’ll have admit that the governor is engaging in a form of kitbashing in using this plan again but for another purpose. It’s too bad Meeks put his eggs in the wrong basket.
- Fire Ron Guenther - Thursday, Feb 21, 08 @ 10:16 am:
You spelled “consensus” wrong. Just sayin’.
- Rich Miller - Thursday, Feb 21, 08 @ 10:19 am:
Thanks. Fixed.
- Cassandra - Thursday, Feb 21, 08 @ 10:34 am:
Oh, that Emil. Even in the middle of a recession,
all he can think about is raising taxes on the same middle class that is suffering most from the recession and (and, worse, impending stagflation).
Not on the rich in flat tax Illinois. Not on the
corporations…although they may have to contribute quite a bit to Dem campaign chests
to head off those business taxes. I’m sure they
are writing out those checks right now.
- Lets Get Serious - Thursday, Feb 21, 08 @ 10:49 am:
Rich –
are there any projections as to whether we are going to have these budget holes every year for the rest of Rod’s Administration?
- Yellow Dog Democrat - Thursday, Feb 21, 08 @ 11:08 am:
I have to agree with wordslinger. A smartly presented budget address has third party allies, whether leading lawmakers or key interest groups, lined up to praise your budget.
I don’t see any experts, any labor unions, any advocates for health care lining up to praise him. That tells me that even the hopelessly optimistic don’t believe that these Blagojevich leftovers have a chance of being the final meal.
I also think the advocates have learned that its better to sit back and see where the legislature is going and try to add on a few crumbs along the way.
Better to get a few crumbs than go to bed with an empty stomach.
- Rich Miller - Thursday, Feb 21, 08 @ 11:13 am:
YDD, this is from a press release….
CHICAGO – On Thursday, February 21, Chicago area business and labor leaders will join Governor Rod R. Blagojevich to voice their support for his Invest in Illinois economic package and the immediate benefits it would bring for both businesses and workers facing a slowing national economy. As part of his fiscal year 2009 budget proposal, the Governor yesterday
announced a comprehensive stimulus package that offers relief for families and businesses, invests in the state’s deteriorating infrastructure, and puts people to work.
WHO: Governor Rod R. Blagojevich
Jack Lavin, Director of Illinois Dept. of Economic
Opportunity
Arturo Chavez, Owner, Meridienne Corporation
Tom Villanova, President, Chicago and Cook County
Building and & Construction Trades Council
Larry Ivory, Chairman and CEO, IL Black Chamber of
Commerce
Omar Duque, President & CEO, IL Hispanic Chamber of
Commerce
Christine Bordman, Local 73 President, SEIU
Sean Stott, Director Governmental Affairs, Laborers’
International Union of North America Midwest Regional
Office
Local Business Leaders
- BannedForLife - Thursday, Feb 21, 08 @ 11:27 am:
Toward a Blago “State of the State” Drinking Game
family/families 28 mentions
children/kids 11
job/jobs 15
tax/taxes 24
any word in Spanish
reference to childhood/father
- Macbeth - Thursday, Feb 21, 08 @ 11:30 am:
What’s the deal with the 40% cuts at DNR? I know it’s a big agency — but I don’t understand Blagojevich’s anti-outdoor, anti-state park approach.
- DOWNSTATE - Thursday, Feb 21, 08 @ 11:48 am:
That 40% cut is on the top of all the cuts that have already been made in the last 4 years.Some parks are at half staff or lower.IDNR is easy picking because no one will speak up or create a problem for the Gov. IDNR brings millions in tourist dollars to this state and the small local business people that are located near any IDNR area.
- Princeville - Thursday, Feb 21, 08 @ 12:16 pm:
I think what most surprised me yesterday was that within minutes of the governor’s speech there was a page up on the states’s web pages to immediately sign on with approval on the gov’s speech–links to all the main papers to write in your support, an area to leave your support comments to be presented to the GA, you could leave your ‘hardship’ story ect. Not being ready to even brief the speech the evening before aside, they moved awfully fast to gather support for it within minutes after presentation. It bothers me. How many people are going to have heard the short speech with no details but that he’s ‘fixing’ everything and giving them $300 to boot and are going to jump on board the support wagon? And as Rich posted above, today is a media moment with Rod surrounded by the mentioned list. Then of course when the plan is not workable/affordable and/or fill in the blank, then it’ll be the evil legislatures fault for being ‘against’ it in the public’s eye. I’m not finding his speech as an attemp at an ‘olive branch’ but instead as a switch in tatics to get what he wants no matter whether it is a good thing. Game on as usual.
- SIU Prof - Thursday, Feb 21, 08 @ 12:17 pm:
To Cassandra and others concerning Illinois’ flat tax constitutional mandate. It would be really simple to reverse engineer a progressive income tax for Illinois. Raise the rate, then use personal exemptions to wipe out enough taxable income to keep the effective tax rate on middle and lower income taxpayers at 3 or lower. that Also would open the way to increase the corporate rate which is constitutionally tied to the individual rate (no more than 8/5-if i remember correctly)
- Irish - Thursday, Feb 21, 08 @ 1:13 pm:
Macbeth, Downstate
IDNR has taken heavy cuts from this joker since he got in office. The reason? Top echelon of IDNR are loaded with Blago appointees, note the article in the Quad Cities paper on the IDNR chief. They won’t disagree with him so the peons take the hits. The other reason, this Gov has not set foot in any state park since he came into office. He has no use for the environment nor the natural resources of the state. He prefers concrete, glass, and steel, to grass, trees, and nature’s beauty. Hence his preference for the Chicago office over the Springfield one. He has referred to IDNR as a luxury.
He does not understand that a lot of lower income people, the very families that he is trying to improve the quality of life for, are the ones that recreate in the state parks and fish & wildlife areas. Sometimes it is their only vacation or way out of the urban setting.
Anyone that is concerned about the status of the natural resources and the sites under the management of IDNR are not going to be happy. If things go as they are in that Department you will see closures much like you are seeing with the Corps of Engineers properties. This guy does not understand that when one of the engines to your economy is tourism you don’t shut down the places tourists want to go.
One often hears philosphers and others who draw connections between people and their connection with nature and the out of doors and their warmness and caring for others. Kinda explains a lot don’t you think?
Or maybe he was just scared by a squirrel when he was little.
- DOWNSTATE - Thursday, Feb 21, 08 @ 1:50 pm:
Thank you Irish and it is a shame that once these places are gone Illinois will never have the money to bring them back.Maybe this time people will call their Reps and Senators and stop this destuction of our Illinois Heritage.
- Irish - Thursday, Feb 21, 08 @ 2:20 pm:
There are ways to save money, or generate money that have been changed to benefit someone ? that could be changed back for the taxpayers benefit.
Example : Central
- Irish - Thursday, Feb 21, 08 @ 2:46 pm:
Rich, what happened to the rest of my last comment?
- Rich Miller - Thursday, Feb 21, 08 @ 2:48 pm:
You got me. No clue.
- Dan S, a Voter - Thursday, Feb 21, 08 @ 2:48 pm:
If the General Assembly does nothing else this session please please impeach the madman that currently holds the title of Governor. Blago has already left his lagacy on this state, a disater that will take decades to repair.
- Arthur Andersen - Thursday, Feb 21, 08 @ 2:55 pm:
Holy Cow, some of those folks from the photo op are on the clout list. Obviously a coinkydink.
- Cogito - Thursday, Feb 21, 08 @ 3:30 pm:
Maybe after we lease or sell the lottery we can lease or sell the state parks.
- Puzzled - Thursday, Feb 21, 08 @ 3:47 pm:
We could try eliminating waste, fraud and abuse…but what would be left of state government? I think many voters would be willing to pay higher taxes IF they thought those dollars were buying anything other than more graft. Not that higher taxes at this time would be very good economic policy.
- Squideshi - Thursday, Feb 21, 08 @ 4:24 pm:
I think Cross gives Blagojevich too much credit. In my opinion, the Governor hasn’t done anything much in order to signal that he’s interested in “rebuilding trust.” It’s ironic that his tax proposal is modeled on that advanced by Bush at the federal level. At least in one way, these two are very similar–they’re both very unilateral.
- Princeville - Thursday, Feb 21, 08 @ 5:06 pm:
What Cogito sad above made me recall the budget battle/crisis of early 1992 and went back and read some old articles from the Springfield paper. Closing Parks, entrance fees, raise taxes, sell off this/that. I was seeing the same issues and the same ’solutions’ sixteen years ago. Most the papers don’t go back far enough to find what I was looking for though–public response to the at that time ‘Conservation’ and parks and historic sites closures or partial season closures. If I remember right there was a loud outcry from the public from casual users to fishers/hunter ect. Edgar was a friend of the parks, he use to ride the bike trail around my area once in awhile, always appreciated nature and his chance to escape a bit for an outing in it. DNR needs a friend if not at the top then at least someone fighting for it in the department. How times have changed.