Capitol Fax.com - Your Illinois News Radar » The once-over *** UPDATED x1 ***
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
The once-over *** UPDATED x1 ***

Monday, Jun 16, 2008 - Posted by Rich Miller

[Updated and bumped to the top.]

* Let’s look at this Tribune article piece by piece

Gov. Rod Blagojevich suggested Friday he would sign a new state budget set to take effect July 1 after making substantial cuts to account for an estimated $2 billion hole left by lawmakers in the proposal.

What the governor is really suggesting here is that he will use the threat of reduction and item vetoes to get what he wants: revenue streams.

In a signal that he would sign it, the administration released letters sent to agency directors Friday advising them to prepare for significant cuts in what they expected to receive. Among the items Blagojevich suggested were a hiring freeze, stopping all “non-essential” state spending and ending programs that “do not address key priorities of the state.”

That letter wasn’t an indication that he would sign the bills. It was an indication that he plans to threaten deliberately scary cuts to next year’s budget so he doesn’t have to make the cuts. I’m thinking he’ll have to make the cuts anyway, however.

“I haven’t decided what I’m ultimately going to do with the budget,” Blagojevich said.

What he’s gonna do is threaten huge cuts and hope the interest groups, vendors and contractors put pressure on House Democrats, so that they in turn will force Speaker Michael Madigan to allow floor votes on the pension obligation bond and the special funds skims. Even if Madigan does so, several House GOP votes will be needed to pass the bills, and those votes aren’t yet there.

* Related…

* Dugan tells Alliance everyone must come togetherin state capital budget battle

* Rutherford Expects Budget Debate To Bring About Special Session

* GOP leader responds to governor’s threat

* State budget process not entirely flawed

* Governor warns of deep cuts

* State Capitol Notebook

* Issue Forum with Paul Caprio

*** UPDATE *** The fear begins

State Sen. Debbie Halvorson is concerned a new program to help homeless veterans could fall victim to the state budget crisis.

“I’m very worried about the governor cutting that money right out of the budget,” the Democrat from Crete said. “Every day, George W. Bush is creating more and more war veterans. We have an obligation to help these returning veterans.” […]

“We are going to have to make some incredibly difficult decisions in the coming weeks. Any program that is not one of the governor’s key priorities is vulnerable,” said Kelley Quinn, a spokeswoman for the Governor’s Office of Management and Budget.

She added those priorities are health care and education.

Quinn declined to comment on whether the homeless veterans program is vulnerable.

       

28 Comments
  1. - OAD - Monday, Jun 16, 08 @ 2:29 am:

    So, it looks to me like they sent him a budget that was lean in pork and other areas, but thicker in his ‘priority’ areas like healthcare and education. They may be fighting the last battle - given his line item vetoes and reductions last year, that strategy might make sense, but it’s a whole new year.


  2. - A Citizen - Monday, Jun 16, 08 @ 11:27 am:

    My guess is that that this year we will see MOUs by guv And Emil. Wonder if they’ll be worth the paper they are printed upon?


  3. - Pot calling kettle - Monday, Jun 16, 08 @ 12:01 pm:

    New revenue would not guarantee that there wouldn’t be program cuts. The gov. could very well choose to still cut and move the new revenue wherever he wants to. That what he has done in the past. MOUs or no MOUs. I think the Madigan budget is structured to prevent that–even after cuts, there is no additional money to move around.


  4. - Squideshi - Monday, Jun 16, 08 @ 1:26 pm:

    Rich Miller wrote, “What he’s gonna do is threaten huge cuts and hope the interest groups, vendors and contractors put pressure on House Democrats, so that they in turn will force Speaker Michael Madigan to allow floor votes on the pension obligation bond and the special funds skims.”

    How do you think House Democrats will be able to force Madigan to do anything? What real leverage do they actually have over him?

    Also, I think we’re still missing the big picture, longer term issue here. What structural changes have Blagojevich and House Democrats proposed to reduce the likelihood that we will again get stuck in budget gridlock? Have they proposed an automatic continuation of the previous year’s budget in cases where the Governor and legislature can’t seem to agree upon and pass a new budget within a reasonable amount of time?

    All parties involved should know that this is a problem that is likely to reoccur; so my question is, what are they doing to fix the problem for the long term? What we need are sustainability and future focus here.


  5. - Rich Miller - Monday, Jun 16, 08 @ 1:27 pm:

    ===How do you think House Democrats will be able to force Madigan to do anything? What real leverage do they actually have over him?===

    You must’ve missed this line…

    ===I’m thinking he’ll have to make the cuts anyway, however.===


  6. - Squideshi - Monday, Jun 16, 08 @ 1:38 pm:

    Rich Miller wrote, “You must’ve missed this line…”

    No. I saw that; but my thinking was, if you believe that Blagojevich’s strategy is to set up a scenario where House Democrats are putting pressure on Madigan, then obviously, Blagojevich must believe that House Democrats actually have significant leverage over Madigan. If not, why else would he try to create such a scenario?


  7. - Rich Miller - Monday, Jun 16, 08 @ 1:40 pm:

    ===If not, why else would he try to create such a scenario?===

    Um, where have you been for the past six years?


  8. - Squideshi - Monday, Jun 16, 08 @ 1:49 pm:

    Rich Miller wrote, “Um, where have you been for the past six years?”

    LOL. You predicted Blagojevich would try to do this. So are you’re saying that (1) Blagojevich is mistakenly putting stock in a belief that House Democrats can actually force Madigan to allow floor votes, (2) Blagojevich is just being spiteful and trying to cause trouble, (3) this is just your personal prediction about what Blagojevich’s next random action (without any reasoning behind it) will be, or (4) something entirely else?

    I really am curious, because if Blagojevich has found a way to truly put pressure on Madigan, I want to know about it. I haven’t thought of a real good way to do that other than going into Madigan’s district and doing some serious and sustained anti-Madigan campaigning sufficiently in advance of the next election.


  9. - Princeville - Monday, Jun 16, 08 @ 1:53 pm:

    “Any program that is not one of the governor’s key priorities is vulnerable”

    That line with and governor with a pen in his hand is a scary thought. Who has annoyed the governor this year? Who is getting a favor this year? If we had a governor that didn’t play the such games and really went line by line to see what could go or at least just hold study would be one thing. But the ‘governor’s key priorities’ and what’s good for the state/citizens ect. is the biggest problem in letting Blago do this. As the saying goes, the man would cut off his nose to spite his face.


  10. - A Citizen - Monday, Jun 16, 08 @ 1:56 pm:

    Madigan must certainly be the happiest guy in the world when he wakes up every morning, knowing that when he gets to the office, (Yes he goes to work every day) some new round of puffery and disillusionment awaits him from the guv’s office. He has effectively reduced the guv to a blindfolded Pinata thrashing buffoon! This time around though guv may well go too far and alienate Emil and find himself the odd man out in the game of musical budget bucks!


  11. - Crystal Clear - Monday, Jun 16, 08 @ 1:57 pm:

    Rich is right on this one.

    The Gov simply is out of plays and the ‘leak’ of the ‘memo’ with follow up by Emil, Cross, the Unions, tax-eaters and Punkin Haid was his desperate attempt to salvage something. His only real hope is a capital plan that gives him enough ‘undesignated money’ to play with as he sees fit.

    The Gov will have to make some cuts. Those cuts that come sooner will be those that will make Madigan look bad. Those cuts that will come later, if ever, are those that will make Blago look bad.

    This is a classic case of ‘if you don’t feed it, it will die’, and Madigan knows that.


  12. - fed up - Monday, Jun 16, 08 @ 2:29 pm:

    Rich
    any update on how much Blagos plane rides are costing the state? I’m guessing the money for the blago air force wont be cut in the budget.


  13. - Rich Miller - Monday, Jun 16, 08 @ 2:41 pm:

    In the grand scheme of things, it’s a rounding error of a rounding error.

    That said, it is one of those issues that can resonate with citizens: Cut people off needed programs, but continue to fly around in comfort.


  14. - VanillaMan - Monday, Jun 16, 08 @ 2:43 pm:

    The Illusion:
    “I’m very worried about the governor cutting that money right out of the budget,” the Democrat from Crete said. “Every day, George W. Bush is creating more and more war veterans. We have an obligation to help these returning veterans.” - State Majority Leader Halvorson

    The Reality:
    ==So far, the program has served seven veterans, said Deanna Mackey, program director for homeless and displaced veterans. Of those veterans, some served in Iraq, others in Vietnam and still others during peacetime, she said. “I wouldn’t say there is a connection between being homeless and being a veteran,” Mackey said.==

    So Halvorson is making news about supporting a program that spends $1,700,000 a year for 7 veterans that has served in Vietnam, Iraq and, um - peacetime service. The maximum capacity for the program is 15. Considering that only a handful of Iraq veterans are actually being served under this multi-million dollar program, their number could double and still have seats left over on a short yellow bus.

    But it is Bush’s fault? LOL!


  15. - Muskrat - Monday, Jun 16, 08 @ 2:44 pm:

    So is there another “leaders’ meeting” scheduled, or are just into the “glaring at each other to see who blinks first” phase of the proceedings?


  16. - wordslinger - Monday, Jun 16, 08 @ 2:47 pm:

    The governor has to be real careful here.

    He can fuss and fulminate all he wants about Madigan and House Democrats, but the reality is he will wear the jacket for the cuts that hurt. Fair or not, that’s public perception.

    This isn’t Washington circa 90s, a Clinton-Gingrich showdown that he can work to his advantage.

    It’s 2008. Springfield isn’t Washington, and the public is paying even less attention to details. Madigan obviously is no Gingrich in any way, shape or form. And governor, for the last time, you’re no Clinton.


  17. - OneMan - Monday, Jun 16, 08 @ 2:57 pm:

    I caught a pro capital-plan ad today on WBBM 780 over lunch, it mentioned the the 700K jobs and the federal matching funds.

    It was from the Three Rivers Contractors or something, I don’t seem to recal their web site. It had a tag line like “we are ready to to fix it, patch it, widen it and build it” or something like that.

    They asked you to call your rep.


  18. - Rob_N - Monday, Jun 16, 08 @ 3:11 pm:

    Blago intones: “Among the items Blagojevich suggested were a hiring freeze, stopping all “non-essential” state spending and ending programs that “do not address key priorities of the state.””

    …Sounds like corporate America during a downturn… Tough choices, yes, but decisions need to be made.

    One, I hope that ad didn’t try to claim Illinois would “lose” Federal dollars… Several politicians, including some Congressmen, have been going around trying to scare people by claiming the Federal matching funds may magically disappear if a capital bill isn’t passed.

    The Federal dollars are there and will stay there. What we’re missing out on is that money’s purchasing power as ‘construction inflation’ is outpacing other inflationary measures.


  19. - the Patriot - Monday, Jun 16, 08 @ 3:12 pm:

    I can’t figure out which is worse, the democrats causing a complete breakdown of the state government, or the republicans having no real viable answers.

    I do find it interesting that it took the dems 6 years to figure out the no tax all spend policy would bite them in the long run. I hope the 5 years of pork was worth it, it will take 25 years to fix this mess.


  20. - Cassandra - Monday, Jun 16, 08 @ 3:29 pm:

    There won’t be a complete breakdown of state government.

    State agencies and the nonprofits they support to the tune of millions always exaggerate what they need to run their organizations. It’s part of the game. Maybe some of those six figure nonprofit execs could forego part of next year’s raise, or hold off on the new agency-provided SUV. State agencies could slow their patronage hiring slightly, especially since most patronage hires don’t do much work anyway. A hiring freeze is a great idea. Fewer state employee jaunts to Springfield or Chicago and more videoconferencing. Cut back on some of those not very productive state contracts. The list is endless.

    And the legislators, of course, could vote down their nice upcoming raises.

    Cut away. The guv could cut pretty deep before getting to anything substantive.


  21. - Princeville - Monday, Jun 16, 08 @ 4:08 pm:

    “A hiring freeze is a great idea” (Cassandra)

    Uh, that would have to be upperlower and upper management. Has the governor allowed any front line workers hired under his admistration? Ryan tossed them out left and right and Blago has never replaced them plus lost more through retirement and a few layoffs. When a site is down a third of it’s workforce now what is it for Blago to announce a hiring freeze? Worthless air spent.

    “Cut away. The guv could cut pretty deep before getting to anything substantive” (Cassandra)

    That’s likely true in some areas in some agencies but way too general a statement. Once again the cutting as in hiring freeze gets down at the bottom.


  22. - Capitol View - Monday, Jun 16, 08 @ 4:34 pm:

    My prediction:

    Nothing or almost nothing gets done on June 24th, a lot gets done in terms of revenues (gaming, etc.)and the “sweeps” bill for special funds - and with sweeps at a higher level than the earlier $350 million cap on June 25th. But no action on the budget until one more Special Session day on June 30th just for final budget numbers.

    This adds up to just 3 days, as the Senate needs — and not long enough for House members to be sitting around doing nothing and therefore starting impeachment informational hearings.

    Nothing happens until the last possible moment around here, so the June 30th supplemental budget action should surprise no one if I happen to be correct.


  23. - Arthur Andersen - Monday, Jun 16, 08 @ 5:37 pm:

    Cassandra, you need some new talking points, sweetie.

    Some number crunchers with fresher figures than AA can fix my rounding errors, but here’s the deal: The budget hole, including a) the $2 billion that most everyone agrees upon, b) the structural deficit that has never been fixed, and c) the effect on b) of Blago’s solution to a) has either never been calculated or never been publicly released. Regardless of the amount, I would suggest two points:

    1) The budget can not be balanced solely by a) a hiring freeze, let alone laying off State employees and b) by cutting “fraud, waste and abuse.” Taking Federal and other non-GRF/Road out of the mix and walling off only State Police and Corrections (we’ll assume that the front office bloat in both agencies is offset by frontline staff shortages that need to be fixed for this example) and taking that PS/Fringe down by 50%, I’m still short at least a billion. Open up your budget CD’s (no more books) or go to the Comp’s Website, and find me a billion in F, W, and A. Bill Holland has found a lot of misfeasance, stupidity, arrogance,, and maybe crime, but AA doesn’t recall that even his crew has toted up a bunch of auditable peed-away money.

    I’m no grant expert, but I don’t see any grantee agency heads around here in the ‘Patch driving any fancy “taxpayer-provided SUV”s. The ones I know personally are struggling to retain staff because the State is months behind in reimbursement, hasn’t raised rates in years, and generally has total nimrods overseeing their programs.

    Cut the unneeded travel? Absolutely. Oh, but that might force GUMB-y to allow CMS to actually write some Travel Rules which would take the power away from GUMB-y and which would involve, let’s see, oh, never mind.

    2) Why would the people of Illinois want to see a bunch of discredited proposals that were stupid last month and think they’re smart now?

    In brief, the markets haven’t improved- bad time for pension bonds. Debt, schmedt.

    Crunch the numbers-Lotto is worth $5 billion- why should we assume State can get $10 for 80% of it?

    Gaming-Zero analysis of gaming saturation point, why tracks need subsidy, why Pritzkers need subsidies, yada yada yada.

    Young people, leave Illinois now. If it isn’t the floods, State Government will drown you.


  24. - Squideshi - Monday, Jun 16, 08 @ 6:27 pm:

    Rich Miller wrote, “That said, it is one of those issues that can resonate with citizens: Cut people off needed programs, but continue to fly around in comfort.”

    I will vouch for that. As a resident of Will County, the fastest growing county in the nation, I know all too well the frustration of residents stuck sitting in traffic on I-55. How convenient for Blagojevich that he never needs to sit in that traffic on his way to or from Springfield.


  25. - Mister Roarke - Monday, Jun 16, 08 @ 10:41 pm:

    Blago intones: “Among the items Blagojevich suggested were a hiring freeze, stopping all “non-essential” state spending and ending programs that “do not address key priorities of the state.””

    Blago announced doing these very things the first year of his first term, as part of “cleaning up” after Ryan’s administration.

    And he never canceled the “freeze”. I think you could look it up with a keyword search of old newspaper articles from that time.

    “hiring freeze” is code and has nothing to do with actually freezing hires, as they added a bunch of new “management” people in my section… at least I *think they did, because while they got an office carved out for them, they have not been inside of it in 11 months now, preferring to “work” or whatever it is they do, in Chicago. But we’re holding their empty office here for them, I guess so they’ll have a place to sleep off the Christmas pizza party. No a “freeze” is just an excuse to try and go around the CMS hiring rules and safeguards so croneys, carpetbaggers, and clout-assisted living can be awarded to Blago friends.
    it was under this “freeze” that they went around veterean’s preferences to move jobs to where the favored wanted to live, to change job qualifications so the unqualified could have a job they knew not how to do.

    Meanwhile, they slashed the actual working staffs not just tot he bone but into the marrow, to create “head count” room for these invaders.

    our office would LOVE it if they actually froze hiring, and the so-called management people we’re saddled with went to work for a living.


  26. - Gregor - Monday, Jun 16, 08 @ 10:54 pm:

    Blago can write all the press releases he wants, the capital plan is deader than disco for the year. He can accept the operations budget and hack away with his veto pen, or call special sessions where he’s as likely to get impeached as he is to get a better budget, but either way he’s going to take all the blame for the cuts that make people angry, nobody else.

    I believe that with Rod now crippled by Rezko and not getting any better over time, Emil is going to break away at some point, if only for self-preservation. And if he doesn’t, I’m fine with Emil and Rod going out together in a blaze of… well, whatever it is Emil smokes these days. They cannot defeat Madigan, because regardless of why he’s doing it, Madigan’s path on this is ultimately the right way to go. It will come down to a tax increase or massive spending cuts, because everybody wants to get to Heaven, yet nobody ever wants to die. In their hearts, the House Repubs know and believe this too. They just look at it from the cuts point of view and not the tax increase side, but the logic behind the math is inescapable. To everyone but Rod.


  27. - Frustrated - Tuesday, Jun 17, 08 @ 6:34 am:

    Rich -

    Thanks for saying this - I’ve been saying it for a long time, but you’re a better writer (and have a blog). Madigan may be slow, but eventually he figures out an opponent. FY 2009 will be the second budget, unless something changes, where he has figured out how to deprive Blagojevich and Filan of fund sweeps. Per se, don’t think Madigan is opposed to them, just he prefers the FY 2006 model - fund sweeps in the budget implementation legislation. I think Madigan would rather have a root canal without novocaine before ever again giving Blagojevich and Filan the authority to decide which funds to sweep.

    Personally, I think Madigan is trying to force a fix of the tax structure and its lack of natural growth BEFORE the 2010 election? Anyone feel the same? Different?


  28. - Squideshi - Tuesday, Jun 17, 08 @ 8:20 am:

    Frustrated wrote, “Personally, I think Madigan is trying to force a fix of the tax structure and its lack of natural growth BEFORE the 2010 election?”

    I suppose that depends on what you mean by “fix.”


Sorry, comments for this post are now closed.


* Open thread
* Isabel’s morning briefing
* Live coverage
* Selected press releases (Live updates)
* Isabel’s afternoon roundup (updated)
* SUBSCRIBERS ONLY - Fundraiser list
* Feds approve Medicaid coverage for state violence prevention pilot project
* Question of the day
* Bost and Bailey set aside feud as Illinois Republicans tout unity at RNC delegate breakfast
* State pre-pays $422 million in pension payments
* Dillard's gambit
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller