Three Illinois Guardsmen killed in Afghanistan
Thursday, Mar 19, 2009 - Posted by Rich Miller
* I’ve neglected to do anything regarding this terribly tragic news, so here it is now…
Three Illinois Army National Guard soldiers were killed by a roadside bomb in eastern Afghanistan on Sunday, the Department of Military Affairs has confirmed.
Sgt. Christopher Abeyta, 23; Spc. Robert Weinger, 24 and Spc. Norman Cain III, 22, were all assigned to Company D, 1st Battalion, 178th Infantry based in Woodstock. An active-duty Airman from Tucson, Ariz., was also killed in the incident
Specialist Cain died at the scene of the incident in Kot; Abeyta and Weinger were transported to Jalalabad, Afghanistan, where they later died.
* Learn more…
* Mt. Morris soldier killed by bomb in Afghanistan
* Gates pays respects to fallen Guardsmen at Dover
* Round Lake Beach Guardsman one of three to die
* Woodstock-based soldiers killed in Afghanistan
* Fallen Freeport Soldier
* 3 Illinois soldiers die in Afghanistan - National Guardsmen killed in explosion on Afghan road
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Question of the day
Thursday, Mar 19, 2009 - Posted by Rich Miller
* What grade would you give to the governor’s budget address and his actual proposed budget?
Please rate both, and explain both grades. Thanks.
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Unions and the pension fight
Thursday, Mar 19, 2009 - Posted by Rich Miller
* Labor unions representing state government workers and teachers are obviously not happy. Yesterday’s announcement by the IFT that it would withhold endorsements from anyone voting for the “pension cuts” was a hugely controversial post here. We have more today…
The American Federation of State, County and Municipal Employees said Quinn is trying to balance the state’s budget problems on the backs of rank-and-file workers. The combination of Quinn initiatives would cost an employee earning $35,000 a year more than $2,500, AFSCME said.
* AFSCME says the pension changes are subject to negotiations…
Quinn chief of staff Jerry Stermer indicated some of the changes could go through even despite union opposition. […]
State employee unions insist the Quinn administration needs their approval for the changes. Stermer said the administration wants to negotiate with the unions, but administration officials believe the pension changes can go ahead as long as lawmakers approve them.
The same question is under examination for health insurance, Stermer said.
Good point…
“If I were AFSCME, I sure wouldn’t open up the contract for negotiations,” said James Nowlan, a senior fellow for the Institute for Government and Public Affairs at the University of Illinois. “What do they have to gain by doing that? This is a nonstarter.”
* A week ago today, Gov. Quinn spoke to the Illinois Education Association and was greeted with a loud standing ovation…
“I think you will see from the budget address next week that I’m willing to stick my neck out and take big chances on behalf of the kids of Illinois, their parents, their teachers …” he said.
Ken Swanson, the IEA state president, responded…
“If you’re willing to stick your neck out and take the lead, we’ll have your back,” he promised.
What a difference a week makes. From a press release entitled: Statement by Illinois Education Association President Ken Swanson on Gov. Quinn’s Proposed Budget…
“Instead of making certain the state meets its obligations to the state pension systems, the governor is asking that the scheduled funding request will be reduced by two-thirds, exacerbating the underfunding of the Teachers Retirement System and the other state systems.
“Instead of offering a plan to fix the state’s broken school funding system, Gov. Quinn allows the current system to stand, even though children in every part of the state are being denied the opportunity for a high quality education due to inadequate funding.
“Instead of directing that the federal stimulus funds be used as President Obama intended, to preserve jobs and programs in public education, Gov. Quinn would use these one-time funds to balance the state budget.
“Instead of supporting efforts to make sure the best and brightest continue to choose education as a career, Gov. Quinn is proposing retirement disincentives that surely will drive some highly qualified young people away from a career in education.
“The governor’s proposal is unacceptable to the 133,000 members of the Illinois Education Association.
Skimming all but about $200 million of the $2 billion in federal education stimulus money is the most underreported aspect of this budget, by far.
* The IFT blasted the governor’s plan to skip billions in state pension payments…
“When the people of Illinois removed Gov. Blagojevich from office, they expected to bid farewell to his budget gimmicks,” IFT president Ed Geppert Jr. said.
Oof.
* The Sun-Times was also critical of the pension skim…
Switching to a two-tiered system would reduce future pension costs but it wouldn’t lower the $73 billion already owed.
For that reason, we were disappointed to see that Quinn wants to make only a $1.5 billion pension payment for next year. Under a 1995 law, the state is supposed to pay $4 billion. That’s unfair to state employees who have faithfully paid their share. The state must either pay that bill or revise the payment schedule. A more reasonable schedule might lower the annual payment to a flat rate — it increases each year — and extend it over a longer period of time.
Quinn, you’ll recall, promised a budget free of gimmicks. That didn’t happen.
But the Tribune was happy to ignore the pension skim, at least for now…
State government’s greatest problem going forward is its huge unfunded pension burden. Quinn’s proposals to raise the retirement age for new hires, and to ask current employees to pay an additional 2 percentage points toward retirement, are a good start on pension reform. But he’s going to skip some payments into the pension system, and we need to know what burden that puts on the state in the near future. Grade, including extra points for having the courage to go there: A-.
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Tax hike react
Thursday, Mar 19, 2009 - Posted by Rich Miller
* Individual taxpayers aren’t the only ones upset with Gov. Quinn’s tax hike plan. Business is furious…
“If this plan were passed, Illinois would have the 5th highest corporate income tax rate in the nation, though we would be close to tied for second. Illinois at 9.7% would be surpassed only by Iowa at 12%, Minnesota at 9.8%, Pennsylvania at 9.99%, and DC at 9.975%. (All three of these states have graduated taxes, but the rates shown are the highest rate for that state.)
“This, in combination with lost incentives, would be one more reason for employers to look elsewhere to avoid Illinois’ long‐standing anti‐business climate.”
* Speaker Madigan was noncommittal…
“I would say that before we move forward on any tax increases, Illinoisans want to know how we’re going to clean up Illinois government,” said influential Illinois House Speaker Michael Madigan, a Chicago Democrat, in an interview with a downstate public television station.
* Senate President Cullerton was more direct…
“With an $11.5 billion deficit, it’s very likely there will have to be a tax increase,” said Senate President John Cullerton, a Chicago Democrat.
* The other Democratic statewide officials were, predictably, less than enthusiastic…
“If taxes are needed to raise more revenue, I’m deeply worried about hurting the middle class, who are struggling,” said [Attorney General Lisa Madigan], the daughter of the House speaker. “And so all steps should be taken to make sure that their taxes aren’t increased.”
Treasurer Alexi Giannoulias, who is exploring a bid for the U.S. Senate next year, said that if the public is asked to “make more sacrifices” in paying higher taxes, “property-tax relief is essential.” An aide to Comptroller Dan Hynes, who also is looking at moving up the political ladder, called the budget plan “a starting point.”
Secretary of State Jesse White, who is looking at running for a fourth term, noted Quinn’s call for higher fees on motorists and said, “Within my [driver’s licensing] facilities, I have a disclaimer to remind the people that I didn’t do it.”
* The Sun-Times makes a forceful case…
This page has already expressed support for Quinn’s deeply unpopular income tax increase.
No one wants it, but Illinois needs it desperately. For years, state revenue has not matched expenses — and not simply because of reckless spending.
* Zorn smacks down Rod Blagojevich’s recent criticisms…
But for many years, Blagojevich had been running up a tab at Café Illinois without having the money to pay for it—using budget gimmicks and deferred payments to disguise that the state was spending and creating financial obligations lots faster than money was coming in.
“He was maxing us out on our credit cards,” said Laurence Msall, president of the Civic Federation, a tax-policy watchdog organization. “He never fixed the structural problems that are compounding this current economic crisis.”
In a WGN-AM 720 interview Wednesday, Roosevelt University political scientist Paul Green compared Blagojevich to an arsonist who sets a house ablaze then complains from the safety of the sidewalk that the firefighters are wasting water.
* And Kristen McQueary blasts the GOP…
Opposing tax and fee increases is the cornerstone of their 2010 campaign strategy.
This stock quote House Republicans sent to the media on behalf of state Rep. Renee Kosel (R-New Lenox) captures exactly what I mean:
“While it is true that Illinois is facing one of the largest budget deficits, turning to taxpayers to get us out of this mess is not the answer. I was hoping that Governor Quinn would have the courage to abort the tax and spend policy of the Blagojevich administration. We need some accountability for the state programs already in existence. We need to re-evaluate, to go back to the table and ask ourselves which state programs are worth funding and which could be eliminated,” Kosel said.
If all we need to do is “go back to the table,” why haven’t legislators done that at some point during the last year as the budget crisis mounted? Instead, they wait for the governor to offer solutions to the state’s problems, and then they excoriate him?
* Democratic Sen. Michael Frerichs does a good job of summing up the no-won situation that Democrats find themselves in here…
“Give me a scenario this year where a Democrat in a tough district wouldn’t be sweating it out,” Frerichs said. “Would I be sweating making billions in budget cuts? Would I be sweating if we were voting again on a gross receipts tax? Would I be sweating if we were talking about expanded gambling at a time when gambling revenues are weak? To those concerned about Democrats in tough districts sweating it out I say, what sort of budget would be easy for us to pass this year? Every month you see declining revenues coming into the state, you realize that this isn’t going to be easy.”
* Republican Rep. Chapin Rose gets a bit hyperbolic, but his response was not atypical…
Rep. Chapin Rose, R-Mahomet, credited Quinn with coming up with a funding source for his spending plans.
“Unlike Rod Blagojevich, who just came up with ideas to spend more money but didn’t suggest ways to pay for it, at least we’ve got a funding source on the table,” Rose said, “but after looking at the (income) tax rates and all the tax increases proposed, the average Joe isn’t going to have anything left for his family to spend after this. The Democrats continue to fail to control spending.”
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A few devilish details
Thursday, Mar 19, 2009 - Posted by Rich Miller
* The Taxpayers Federation of Illinois points to something that I had also noticed this morning…
* Sweetened Tea and Coffee Drinks will be taxed as Soft Drinks
* Tax all grooming and hygiene products at the same rate (presumably the high rate)
That means the full sales tax will be expanded to those items. It’s not a huge thing, but in Chicago and Cook County where the sales tax is a hot topic, it won’t go over well.
Also, from TFI, business won’t like this…
* Decouple from the following provisions of the American Recovery and Reinvestment Act
o Deferral of gain recognition from reacquisition of business debt security
o Five year carry-back of net operating losses by small businesses
* I hadn’t noticed this aspect of Gov. Quinn’s proposed “back to school” sales tax holiday for clothes and school supplies…
Pete Gill of the Illinois Retail Merchants Association said the group likes the theory, but not the specifics, of the governor’s proposal for a 10-day sales tax holiday for back-to-school purchases in August.
Gill said a preliminary analysis of the budget indicates Quinn would pay for the holiday by cutting a 1.75 percent “sales tax allowance” for merchants by more than half. Retailers are reimbursed for collecting state sales taxes.
“It hurts retailers and could potentially raise prices,” Gill said.
Retailers are gonna freak out about losing half of their sales tax allowance. In times like these, when retailers are closing in droves, that will be met with super-stiff resistance.
* And this is an interesting point to ponder…
Kim Clarke Maisch, state director of the National Federation of Independent Business in Illinois, said about 85 percent of small-business owners, including in Illinois, pay the individual rather than corporate tax rates.
* No big deal, but some won’t be happy…
Admission to the Illinois State Fair would increase by $2 per person, to $5 for adults and to $2 for children, who have been admitted free in recent years.
* The Trib picks a nit…
A new advisory board will scour the budget for line-item savings. Outsourcing food, janitorial, technology and other services more economically supplied by private employers ought to be a priority. We hoped Quinn would give privatization of these high-cost internal services a push. He can do better. Grade: D+ .
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Are the proposed tax exemptions necessary?
Thursday, Mar 19, 2009 - Posted by Rich Miller
* Is tripling the state’s income tax exemption really necessary? We’ve already got a pretty darned low income tax, and it would still be somewhat low after the proposed increase. And then there’s this…
Gov. Pat Quinn’s plan to raise the personal income tax exemption to $6,000 from $2,000 per person would make Illinois’ exemption one of the most generous in the nation. Only Connecticut’s $13,000 exemption is more generous. But Connecticut does not apply its exemption to dependents. In addition, Connecticut’s exemption decreases as income increases. Illinois’ is static for all incomes. Therefore, Illinois’ $6,000 per person exemption would top Connecticut’s for a three-person household. A taxpayer does not pay tax on exempted income.
* Sen. James Meeks told Mark Brown what several other legislators were saying yesterday, or at least part of it. Not everybody says that the tax hike is too small, but the exemptions are very contentious…
“The tax increase is too small,” Meeks said. “The exemption is too great.”
Increasing the personal exemption to $6,000 from $2,000, as Quinn proposes, “has not been on anybody’s radar screen,” Meeks complained. “It has no allies.”
He’s right that nobody in the GA has ever really talked about the exemption increase. It’s just way too new to be digested quickly. More…
A partial solution, Meeks says, would be for the state to pass legislation committing itself to use the new income tax revenues for schools by the third year after it takes effect — allowing two years to clear up the deficit.
That might not be a bad compromise, especially if there was something in the law about reducing property taxes, or even sales taxes.
* Quinn’s defense of the increased exemptions and a challenge to his critics…
“It is a principal as old as the bible,” Quinn said. “Taxes should be based on ability to pay.”
Acknowledging growing opposition to his tax hike plans, Quinn warned his foes that they need to come up with better solutions to the state’s damaging shortfall.
“You must tell the people of Illinois what you will do instead,” Quinn said to cheers from lawmakers, adding later, “Saying ‘No’ is not enough unless you are willing to speak the truth and offer real alternatives.”
* The Rockford Register Star is unimpressed…
Quinn has tried to soften the blow by raising the income tax exemption to $6,000 from the current $2,000.
While that would mean a family of four making $25,000 would see a dramatic reduction in state income tax, a single person making $20,000 would see a big increase.
* Neither does the PJ Star…
Not to rain on anybody’s parade, but if 5 million Illinois citizens will come out ahead in this budget, as Quinn contends, that means another 8 million won’t. Arguably Quinn’s proposals will put less money in the pockets of most Illinois citizens in a high-anxiety job climate, which means they’ll be less likely to spend it and get the economy humming again.
We fail to see how these tax increases will convince Caterpillar to hire back the 24,000 workers it has let go in this downturn. Government may have a role where short-term job creation is concerned, but where most of us live, the private sector is the place we look for long-term, steady employment. “If you’re able-bodied and you’re breathing, we want you working in Illinois,” said Quinn. Yes, but will this budget accomplish that?
* The SJ-R likes it…
We favor a graduated income tax instead of Illinois’ flat tax; Quinn’s increased personal exemption proposal would cut taxes for families but leave single people making as little as $20,000 paying higher income taxes. A constitutional amendment allowing a truly progressive tax structure should be on next year’s agenda.
…Adding… Tom Cross…
“(Quinn’s) shifting the bulk of the burden of this tax increase to what I think is truly middle-class,” said House Minority Leader Tom Cross, R-Oswego.
* Let’s keep this focused on the exemptions, not the tax hike. We’ll talk about that subject in another post.
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Not so deep thought
Thursday, Mar 19, 2009 - Posted by Rich Miller
Why is it that when you’re in a hurry to get something done, nothing seems to go right? Browsers crash, files won’t open, etc.
Oy.
Discuss amongst yourselves for a while.
* Also, Wonkish.com has a nifty Quinn tax hike calculator…
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Morning Shorts
Thursday, Mar 19, 2009 - Posted by Mike Murray
* Powerful alderman threatens Art Institute subsidy over admission fee increase
Calling the Art Institute of Chicago’s impending 50 percent admission fee increase a raw deal for taxpayers, a powerful Chicago alderman has threatened to cut off the museum’s free city services.
“They are making it almost impossible for the average Chicago citizen to take his or her family to view these Chicago treasures,” said Ald. Ed Burke (14th).
Burke and Ald. Virginia Rugai (19th) introduced an ordinance that would block city fee waivers to any not-for-profit Chicago Museum that charges more than $10 for general admission.
“Once the proposed increase takes effect, the general admission to the art Institute would top the Louvre Museum in Paris, the Uffizi Gallery in Florence and the National Gallery in London,” Rugai said.
* Chicago Art Institute: Museum’s fee hike angers alderman
* Prosecutor says top DUI cops need squad-car cameras
The department has nearly fulfilled a promise to equip every beat car with a camera. Of its fleet of 2,500 vehicles, many of the 264 video-equipped vehicles are beat cars. But many other cars also make traffic stops and aren’t equipped with cameras.
The city plans to put cameras in 275 more police vehicles with $2 million in federal stimulus money.
* Chicago mayor, top cop shrug off union’s no-confidence vote
The no-confidence vote is symbolic only. Weis has about two years remaining on a three-year, $310,000-a-year contract.
* Daley Confident in Weis’ Job Performance
* CTA slow zones: More CTA trains are going slower than last year
* Chicago reacts to news of IOC revenue deal
* Chicago’s Olympic priorities: City repaves park roads first
Steele acknowledged that the Washington Park work bumped to the front of the line because of the impending visit from Olympic officials.
“We wanted to hit some of the streets near the planned Olympic venues before the IOC visit,” he said.
But the Washington Park roads merited being fixed this year because of “multiple potholes or significant deterioration,” he said.
* Community Groups Threaten Protests During IOC Visit
* Elgin mayor says proposed alcohol ban aims to curb public drunkenness
* LaHood upset by Globe Energy chief’s work ethic comments
* Chicago Sanchez trial: Closing arguments given in hiring fraud trial
* Sanchez Jurors Thinking Race
* Attorney: Al Sanchez deserves ‘civic award,’ not corruption indictment
* Bogus Chicago cops, firefighters to face stiffer penalties
Instead of a ticket with a maximum fine of $100 for impersonating a police officer, impostors now face a misdemeanor punishable by up to 6 months in jail and a fine of $1,000 to $1,500. Firefighter impersonators, who faced only a $10 fine, will be subject to the same penalties.
* DuPage weighs campaign contribution limits
The board does not have the authority to enact campaign-finance laws, so it is considering setting limits on businesses. Any company that donates more than a set amount to a county campaign would be ineligible to receive a county contract. Details, such as the dollar amount for the limit, have not been determined.
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