* Check out the last line in this excerpt of a story about how the House and Senate are coming back to session next week…
Quinn has been meeting with legislators to build support for his budget proposals - borrowing billions of dollars, raising cigarette taxes and giving the governor broad new power to cut spending where he sees fit.
Republicans, who have been largely shut out of budget discussions, are refusing to support the proposals. Some Democrats object, too, and want assurances that Quinn won’t cut programs they see as vital.
“He has not made any commitments,” Kraft said. “He has definitely heard from legislators about things they’re interested in preserving.”
Quinn better start making some commitments if he wants to finish up this session. We’re getting down to the wire here, and it’s time to make some tough choices.
* Subscribers know more details, but here is a little about what to expect on Monday…
In the two weeks since lawmakers suspended their work, Gov. Pat Quinn’s been meeting with groups of Democrats in an attempt to structure a budget compromise that can get enough votes to pass. Some of them are planning a Monday news conference.
“Our philosophy is that we have to reform the process,” said Sen. Susan Garrett, D-Lake Forest.
That means, she said, targeted budget cuts, a thorough review of state contracts and how they are awarded, and giving rank-and-file lawmakers more input into crafting a budget.
“Cuts are going to be some things brought up to move us forward,” Garrett said. “We want to be more specific so certain agencies can plan ahead. … I’m assuming everyone is going to have to deal with some cuts.”
Here’s a little bit of what subscribers know…
A group of House Democrats, the Capitol Fax Blog reports, plans to propose $1.3 billion in cuts on Monday.
* The Senate is waiting until Wednesday to return. Here’s why…
Cullerton spokeswoman Rikeesha Phelon said there is no reason for the Senate to come into session earlier since the chamber already passed all of the components of a new budget earlier this month and sent it to the House.
* Gov. Quinn’s top aides met with the Daily Herald editorial board to explain why they want to borrow to make the pension payment…
Quinn’s Chief of Staff Jerry Stermer pointed out that the state can borrow at a 4.5 percent interest rate, whereas if the pension payment is shorted, the state is automatically hit with 8.5 percent interest in making up the shortfall. And pushing off billions in state payments to vendors to make the budget look balanced incurs a 12 percent interest rate under late-payment laws.
Given those choices and the rejection of other proposals, Stermer said borrowing at 4.5 percent makes the most sense.
“Our analysis is we ought to do the most fiscally conservative thing,” he told the Daily Herald editorial board.
The Sun-Times editorialized in favor of the borrowing option today…
Borrowing is a miserable solution. But the alternatives — skipping or delaying a payment to the pension system — are far worse. Illinois is obliged to make this payment sooner or later — whether we resent those public union pensions or not — and the longer it’s delayed the more it costs the state.
* And Rep. Frank Mautino gets out quote of the day for his prediction of what the final state budget will look like…
“This will keep the trains running, though not on time.”
* Related…
* Press release: United Way of Metropolitan Chicago wants a revenue increase as part of budget deal
- A.B. - Friday, May 21, 10 @ 12:03 pm:
What a mess….
To bad the closed door policy continues and the majority isn’t willing to cross the aisle to find bi-partisan support….
That being said, after years of being shut out of the process, I am not sure the minority party would be willing to play along at this point.
- 47th Ward - Friday, May 21, 10 @ 12:12 pm:
Nice try A.B.,
What, pray tell, would the minority party support to close the budget gap? The majority party is perfectly willing to cross the aisle. And every time they’ve reached across, they come back with zero GOP votes.
It seems to me there are 3 ways out of this year’s mess: higher taxes, major cuts, or massive borrowing. How many GOP votes are there for these choices? Which specific major cuts would the GOP vote for?
Will the GOP rally around Bill Brady’s budget proposal? Oh wait, he doesn’t have one.
You can’t say you’ve been shut out of the process without even once offering an alternative. The GOP members really are nonparticipating dropouts. But feel free to collect your paychecks, GOP House members, and cry that you’re being shut out of the process.
More pathetic spin.
- DuPage Dave - Friday, May 21, 10 @ 12:14 pm:
There’s a great article in the New York Times today about the DHS office in Blue Island, where a minimal workforce is trying to help hundreds of people in need.
This is the reality of our state (and nation). The Governor and the legislators need to step up to the plate and make tough decisions about how to continue to function as a government.
Sadly it seems they will do no such thing.
http://www.nytimes.com/2010/05/21/us/21cncwarren.html?ref=us
- Pot calling kettle - Friday, May 21, 10 @ 12:38 pm:
There is nothing to prevent the Republicans from proposing their own entire budget…except for the fact that it would either raise taxes or cut popular programs. That’s also why the Democrats won’t put up a realistic budget. And when cuts are proposed, it’s either a vague percentage or cuts to things the proposer does not value. Of course, the only acceptable taxes are on alcohol & cigarettes.
The longer both sides continue to put off a real solution, the more painful that solution will be.
- cassandra - Friday, May 21, 10 @ 12:39 pm:
One question I have about the NYT article is, why
is “so much not computerized.” I’m sure we’ve paid zillions over the years towards the administrative costs of the sate’s welfare system. Let’s stop hiring all the hacks and get the whole system automated. Not just easier for the staff, easier for the applicants. And much more humane.
- SangamoGOP - Friday, May 21, 10 @ 12:42 pm:
“Our analysis is we ought to do the most fiscally conservative thing,” Jerry Stermer said with no sense of irony.
- CircularFiringSquad - Friday, May 21, 10 @ 12:42 pm:
Wow DuPageDan pushing NYT/Tribune Exiles coverage of Chicago & ‘burbs. FYI that is a story that could have told every day for many years.
Speaking of “minority support” it has been pretty clear for about three or four years that the GOPers unless it is stuff video poker for pork barrel stuff, keeping the precious state parks open or fronting for the payrollers.
Hence the moniker do-nothing drop outs. A handle that has stuck but good
- Excessively Rabid - Friday, May 21, 10 @ 12:56 pm:
Amazing that the prospect of action generates so much partisan finger-pointing. The GOP is irrelevant at this point. The dems have control of everything. Now use it and do something, or face losing it in November.
- Robert - Friday, May 21, 10 @ 1:12 pm:
I’m sure I’m missing something here - why would quinn shut republicans out of the process? why not invite them to propose some specific cuts so they share the pain/blame as well? it would allow repub ideas to come to the table and to be more scrutinized - e.g., if they propose across the board cuts, do they also want cuts in spending that would cost the state matching federal revenue?
- dupage dan - Friday, May 21, 10 @ 1:20 pm:
CFS,
Please note that someone created the name “DuPage Dave long after I created my name “dupage dan”. We are 2 seperate persons. Mr Dave could easily have picked another name but didn’t. It is not hard to tell the difference, actually. One must only open eyes and connect to the brain. Try it.
Otherwise, you post was nearly unreadable - syntactically challenged, IMO.
- George - Friday, May 21, 10 @ 1:23 pm:
The problem isn’t that there are no serious Republican ideas at this point to address the budget issue.
Why would the Republicans want to be in negotiations right now? So they make tough decisions and take responsibility for the budget? No… it would be to get some pork out of it.
- dupage dan - Friday, May 21, 10 @ 1:23 pm:
BTW, the whole tired “the GOP should come to the table” stuff is just that - tired. And boring, too. However, I’m sure the voters will agree come Nov and re-elect the same tired wastrels who have had their hands on the throttle for the last 8 years or so. I can’t wait.
- George - Friday, May 21, 10 @ 1:23 pm:
The problem “IS” that there are no serious Republican ideas at this point…
oops
- Ghost - Friday, May 21, 10 @ 1:27 pm:
If I may quote aliens to describe our states future….
“Game over man, game over….”
- Small Town Liberal - Friday, May 21, 10 @ 1:34 pm:
- However, I’m sure the voters will agree come Nov and re-elect the same tired wastrels who have had their hands on the throttle for the last 8 years or so. -
Are you just being “elitist” and suggesting that most voters are stupid? Can’t be that, only liberals do that.
- Aldyth - Friday, May 21, 10 @ 1:41 pm:
How many Democratic legislators are actually “at the table”? It appears that the decisions are being made by a very few. If the Democratic vast majority isn’t getting meaningful input, why should Republicans think that they would get any at all?
- Rich Miller - Friday, May 21, 10 @ 1:42 pm:
===How many Democratic legislators are actually “at the table”? ===
Those who want to be.
- Louis G. Atsaves - Friday, May 21, 10 @ 1:49 pm:
I’ll give Senator Garrett and the group of North Suburban Democrats some kudos for taking the bull by the horn on this issue. I would be very interested in seeing how they arrived at $1.3 billion in cuts.
For the past few months, tax increase proponents keep arguing that there is nothing left to cut. Nice to see these legislators take some initiative that may actually contradict that tired argument.
Does this make Garrett and the group the Democratic party faction of “No:?” If so, welcome aboard!
- dupage dan - Friday, May 21, 10 @ 1:50 pm:
STL,
You don’t know sarcasm when you see it?
- Small Town Liberal - Friday, May 21, 10 @ 1:57 pm:
dupage dan - My mistake, I’d ask you to put some money on how many incumbents are re-elected, but I recall that you’re not a gambler.
- dupage dan - Friday, May 21, 10 @ 2:07 pm:
STL,
You have a good memory. In this election cycle anything could happen. With the current slate at the executive level it could go either way. I have no confidence in the dems and am not thrilled about the GOP choices. Oh well.
The undecided voters are the ones to watch. And there are alot of them.
- steve schnorf - Friday, May 21, 10 @ 2:08 pm:
Louis, I don’t think most proponents of a tax increase say there is nothing left to cut, more along the lines of there is nothing left that should be cut. I also believe there are many people who believe we need to raise more revenue who also believe cuts must be made, if for no other reason than we aren’t going to get a tax increase without cuts, and the tax increase won’t be enough to finance our spending unless there are cuts.
There are some fairly informed constituencies out there who have, over the years, said to the state, if you have to cut us, fine, just don’t embarrass us by cutting us more than you cut our peers. Part of the problem the GA and Gov face is that every nickel in every line item has someone, somewhere, who believes it’s very important (that’s why it’s there in the first place), and so talking about specific cuts rallies opponents.
- Small Town Liberal - Friday, May 21, 10 @ 2:29 pm:
- You have a good memory. -
Thats my only similarity to an elephant
- Small Town Liberal - Friday, May 21, 10 @ 2:30 pm:
Ummm, that was political party joke by the way, I just kind of realized how that could possibly be taken a lot of different ways…
- dupage dan - Friday, May 21, 10 @ 2:54 pm:
I will take it in the spirit in which you intended - good humor on a Friday. This stuff is much too painful to watch and even tho we might be on different sides I’d rather have a good debate than be gratuitously rude. I hope to see humor in stuff even if it might be at my expense.
- VanillaMan - Friday, May 21, 10 @ 3:00 pm:
Republicans, who have been largely shut out of budget discussions, are refusing to support the proposals.
Imagine going to a carnival where you are not allowed to ride on the rides. You can buy a ticket, and stand in line, but when you get to the gate - the barker tells you that you can’t ride.
Then the ride start breaking down, tossing riders out, but when you point this out, the Barker tells you that the ride is dangerous because you are not riding on it. So you ask, and the Barker tells you, “No!”.
Then the ride stops because it malfunctioned completely. When you point this new development out, the Barker tells the riders handing on the broken ride, that the reason for the malfunction is due to the fact that you never ride on the ride.
Then the Barker asks for your help, but when you tell him that he has to remove the riders on the broken ride, he tells you that you can’t help. When the riders complain, the Barker tells them that it is your fault because you didn’t build a new ride.
Now, do you really expect the riders to believe the Barker?
Unless you are one of the sugar-high kids still swinging in one of the cars on the broken ride, you will not.
No one is going to blame the GOP for this, except for those on a sugar-high.
- Rod - Friday, May 21, 10 @ 3:43 pm:
There were several statements in the various articles that Rich linked in his post relating to the now infamous Cigarette Tax Act, SB 44 as amended. One of those articles basically claimed that SB44 was enacted, along with the Emergency Budget Act could make education funding in Illinois flat in relation to last year’s formal appropriation. The key word is formal funding. As of today ISBE has $1,401,555,108 in unpaid vouchers to schools outstanding (number given at today’s ISBE meeting), so formal appropriations currently have very limited meaning.
I have no way of knowing what funds the Governor could allocate to k-12 education using the powers in the Emergency Budget Act. But the fiscal note in relation to the Cigarette Tax Act indicates $350 million in revenue from the increased tax on cigarettes over two years.
This is in no way enough to offset the education budget reductions listed in the Governor’s budget proposal, or funding bill HB859, or the competing funding bill SB1211. Fundamentally the Governor would have to use the vast powers in the Emergency Budget Act of 2011 to transfer well over $700 million to the common school fund to get anywhere near flat funding for FY2011.
I am aware that there are arguments being made that if an appropriation is made by the General Assembly, then school districts can issue State Aid Anticipation Certificates on what they are owed. Section 18-18 of the Illinois School Code (105 ILCS 5/18-18) limits school districts’ issuance of state aid anticipation certificates, general obligation notes, and tax anticipation warrants so that the total amount of state aid certificates, notes, and warrants outstanding for any fiscal year may not exceed 85% of the taxes levied by the district for that year. Some districts are now at that limit.
State Aid Anticipation instruments are a form of short term borrowing and because of the fiscal collapse of Illinois they are in some cases having to be rolled into longer term debt. The Harrisburg School District announced yesterday it will borrow $1 million to make payroll because the State of Illinois still has not paid its share of the school’s funding. Harrisburg School Board President Todd Fort said yesterday ” We’ve borrowed all we can borrow. No matter what the state does, no matter if they pass a tax increase or not after the elections, they’re not going to dig out of it in a year.” The Chicago Public Schools are not publicly discussing what their fiscal reserve situation is, but it has to be low. Yes, it is getting ugly.
- A.B. - Friday, May 21, 10 @ 3:44 pm:
VM -
That is a beautiful analogy!
- DuPage Dave - Friday, May 21, 10 @ 3:53 pm:
Cassandra- DHS has spent millions in updating computer systems, but very inefficiently due to the Blago-era CMS policy of spending twice as much money as needed for computers and computer services. Ask around- it has been a nightmare. Goodness only knows where the money ended up.
Also ask about the “framework”- a huge money-waster that will supposedly computerize everything at DHS sometime just before hell freezes over.
Also- I doubt the newspaper reporter has any point of comparison- to other states or to how the old Public Aid offices used to work- in evaluating how much paper is used. There’s a lot less than there used to be but it probably looks like a lot to an outsider.
- dupage dan - Friday, May 21, 10 @ 4:13 pm:
VM - LMAO - very funny!
Please, oh please, Mr Wizard, I don’t want to be on this carnival ride anymore!
- wordslinger - Friday, May 21, 10 @ 5:02 pm:
Of course, you could always propose an alternative budget — one with numbers and stuff like that. Let people check it out. It’s pretty easy to do, and everyone has a lot of time on their hands.
- Posttosties - Friday, May 21, 10 @ 7:52 pm:
For a year all I’ve heard about is folks taking about Blago. When is some self-respecting reporter going to start questioning what the Feds are doing? How much of our tax dollars have the Feds spent chasing Blago? If the Feds knew Blago was a crook in 1994 when they reportedly tried to shake down the movie producer — why didn’t the Feds arrest Blago then? Does anyone else find it odd that right after the Senate impeached Blago the Feds dropped the charges and had to refile them at a later date? Was the first charge so full of wholes that it wouldn’t hold up?
How much do these Feds get paid? Who in the heck are they? Do they really have the power to tape your conversations without probable cause or a warrant?
Now I’m not suggesting Blago didn’t give the Fed’s something to chase. I’m just wonder who is watching the Fox?
- Reality - Saturday, May 22, 10 @ 1:37 pm:
the dems don’t deserve any defense for their budgets of the last several years; however, the gop conveniently forgets they weren’t exactly uninvolved.
the house r’s voted for 3 of 6 blago budgets, the fiscal 04,05 and 08 budgets. and the senate r’s voted for 05 and 08.
they both actively participated and led in both the 05 and 08 passed budgets (both were overtime sessions) - and 08 was passed way over their own revenue estimate and was where the big deficit problems started.
so both parties haven’t shown much interest in balanced budgets, not to mention 30 years of massive pension underfunding going back to the 70’s and compounding ever since.
the true budget will require significant revenue increases, AND significant cuts and,also, significant borrowing (for several years) until the revenues increases and spending decreases have time toc catch up. no one of these 3 options will be near enough by themselves.