Capitol Fax.com - Your Illinois News Radar » Quinn uses AV powers on pay raises, sales tax
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Quinn uses AV powers on pay raises, sales tax

Monday, Aug 31, 2009 - Posted by Rich Miller

* Gov. Quinn used his amendatory veto power again the other day. This time, it was on legislative pay raises…

Gov. Pat Quinn is taking aim at lawmakers’ annual cost of living raises as a way to help the state’s bottom line.

Legislators had forfeited their annual raise this year, but on Friday Quinn used his amendatory veto power to go even further and propose eliminating yearly pay raises for good.

Lawmakers automatically receive a yearly raise to reflect the rate of inflation unless they vote not to take it, as they did this year in a nod to the state’s budget woes.

“Help the state’s bottom line”? More like “Help Quinn’s reelection.” Very Blagojevichian.

From the governor’s AV

Section 35 prohibits officials from receiving a cost of living adjustment in fiscal year 2010. Given our current fiscal situation, that is an appropriate decision. I applaud the General Assembly for taking this difficult step. I propose that we go even further: eliminate the automatic cost of living adjustment for every year going forward.

More

[Quinn] said such salary adjustments should be done away with in all future years, not just the current budget. He suggested lawmakers change the legislation to garner his approval.

The potential problem is that lawmakers aren’t scheduled to take up the governor’s vetoes until October. So while the General Assembly voted to do away with raises, and Quinn said there shouldn’t be any - ever, the actual law putting a stop to the bigger paydays has now been rejected by Quinn.

It remained unclear Friday if Quinn’s action would trigger higher paychecks for state officials in the meantime.

Lawmakers could accept Quinn’s changes during the October session, or override the change and enact the original pay-raise prohibition. If they do nothing, the prohibition on the raises vanishes.

* And speaking of amendatory vetoes, Gov. Quinn finally acted on the so-called STAR Bonds bill, legislation which I’ve called “The worst bill ever”…

Illinois Gov. Pat Quinn said Friday he would ask the Legislature to cut in half the sales tax benefits sought for [Metro East] University Town Center, a proposed $1 billion entertainment-retail development in Glen Carbon.

The original bill allowed the developer to use all state sales tax money to pay for the project. Quinn cut that in half

Quinn would limit the incentive to 50 percent of new sales tax revenue and only up to 50 percent of total project costs.

Quinn

“We didn’t want to be financing the entire project from state money,” Quinn said after a news conference unrelated to the bill. “We thought, ‘There’s room for the developer to put money in.’”

That’s far more reasonable than the original legislation. But the developer, of course, isn’t happy

“His amendatory veto of Senate Bill 1909 (SB 1909) unnecessarily jeopardizes 10,000 construction jobs and 3,100 full-time equivalent jobs at a time when they are desperately needed,” Holland added. “It is difficult to understand how it is possible to underestimate these tough economic times and the devastating impact of unemployment.”

More

“I hope they haven’t made a mistake that could end up costing us the biggest economic opportunity in our area in probably the last 15 years,” [state Rep. Tom Holbrook] added. “We compete with Missouri, a state that has more incentives. We have higher unemployment. We needed to do something to hook a major development to our area.”

I mostly agree with the Belleville News-Democrat’s take

It’s a change that better protects the interest of the taxpayers while still providing an incredibly sweet incentive to developers. Quinn points out, correctly, that as the bill was written, it was possible that the developer might gain more financially than the taxpayers. The state Department of Revenue estimates the state and local governments might lose $15 million a year in tax revenue, mainly by cannibalization of sales tax-producing businesses in nearby communities.

By scaling back the incentive, Quinn ensures that the state treasury will immediately share in the benefits of any development. We’re still not thrilled with the idea of putting so much public money into private business, but state leaders believe incentives are needed to spur development.

We urge lawmakers to approve this change. If a developer isn’t willing to pay for half of the cost of a project, it probably shouldn’t be built.

       

9 Comments
  1. - wordslinger - Monday, Aug 31, 09 @ 10:33 am:

    In essence, Quinn is giving GA incumbents a second chance to vote against pay raises for themselves before the primary. In the Byzantine world of Springfield, that could actually be interpreted as a gift.


  2. - Jambo - Monday, Aug 31, 09 @ 10:43 am:

    You failed to mention the two worst aspects of this bill:

    1. It requires the parcel be at least 30% floodplain, so once again the taxpayer will end up paying for inevitable flood damage.

    2. One of the primary investors in the Glen Carbon development is U.S. Rep Jerry Costello’s son. Once again, the taxpayer lining the pocket of politically connected hacks!


  3. - 3 beers to springfield - Monday, Aug 31, 09 @ 10:59 am:

    STAR bonds amendatory veto - AMEN! It’s amazing how great developers make a deal sound while saying they need the public’s money to make the “great deal” happen. If the public’s sharing the risk, the public should be sharing the reward.


  4. - Segatari - Monday, Aug 31, 09 @ 11:31 am:

    So the original bill eliminated the pay raises for good and Quinn amend vetoed it to do the same thing? HUH? What the heck did he actually change?


  5. - Bill - Monday, Aug 31, 09 @ 1:10 pm:

    What he did was give the GA a way to get their raises after voting against them. All they have to do is sit on the AV and its happy days.
    Thanks, Gov.!


  6. - Ghost - Monday, Aug 31, 09 @ 2:14 pm:

    I am on the opposite side on this. I support Quinn on this one. I have long thought the legislatures automatic increases was a horrible idea; but no legislature is going to get out in frint of this given it innures to their benefit. This AV is tied to the legislation and is probably the only way we are going to get this issue in front of the legislature.


  7. - wordslinger - Monday, Aug 31, 09 @ 2:54 pm:

    Bill, I bet they vote not to take it again. Doubly virtuous. That’s the gift.


  8. - Anon - Monday, Aug 31, 09 @ 4:14 pm:

    Why is it that state legislators aren’t entitled to a COLA? Not every member of the GA is independently wealthy. And with all this ethics crap going on, when is the last time you saw a member of the rank and file go to jail? Why not a sliding scale for legislators? The more you make outside of the GA, the less your legislator pay should be. Then legislators who actually treat the job like the fulltime job it is aren’t penalized by the rich do gooders who use their legislative pay as play money. Especially since everybody thinks you should volunteer to be a one now.


  9. - No STAR - Sunday, Sep 20, 09 @ 12:23 am:

    As Capital Fax so accurately said - STAR Bond legislation is the “worst bill ever”. The Governor issued a AV and now the matter is in the hands of the General Assembly again. Let’s hope they read it and let’s hope they understand that giving 100% of the states sales tas for this development is non-sense. Good for the Gov to ship the matter back.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* AG Raoul orders 'Super/Mayor' Tiffany Henyard's charity to stop soliciting donations as Tribune reports FBI targeting Henyard (Updated x2)
* Isabel’s afternoon roundup
* Pritzker on 'Fix Tier 2'
* Caption contest!
* House passes Pritzker-backed bill cracking down on step therapy, prior authorization, junk insurance with bipartisan support
* Question of the day
* Certified results: 19.07 percent statewide primary turnout
* SUBSCRIBERS ONLY - Update to today’s edition
* It’s just a bill
* Pritzker says new leadership needed at CTA
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* 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
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