How about a little more “management”?
Thursday, Jun 17, 2010 - Posted by Rich Miller
* I know it takes a while to get projects started, and many already are, but you gotta wonder what’s taking so darned long to get these capital projects going…
State budget records, however, reveal that 70 percent of the money allocated for the first year [of the capital bill] is still unused, surprising even the Illinois budget director.
“That’s my attitude exactly, what’s the hold up?” said David Vaught, Illinois budget director. […]
“We sold $4 billion in bonds to get the program moving. The money is available, the projects are authorized, as soon as the agencies, the non profits, you know, the hospitals, as soon as they get their grant applications in and get the paperwork done, or as soon as the bids go out, and people bid on the projects, the cash is flowing,” said Vaught.
According to state records, there is almost $3 billion available for approved Illinois projects and the jobs that go with them; $2.61 billion is currently unclaimed by offices and agencies that include:
# Stateville Prison in Joliet: $4.5 for construction of a new prisoner housing unit
# shoreline stabilization at a state park in Lake County: $1 million
# a new heating and air condition system at the Thompson Center: $4 million
# a back up generator at Reed Mental Health Center: $1.4 million
Vaught isn’t just the budget director. He’s the director of Management and Budget. Vaught needs to find out what the “hold up” is today.
And while the unemployment picture improved ever so slightly last month, those capital bill jobs are still desperately needed. From a press release…
The Illinois seasonally adjusted unemployment rate dropped -0.4 point to 10.8 percent in May, according to data released today by the Illinois Department of Employment Security. The over-the-month decline is the largest since October 1983. The three-month moving average decreased -0.2 point to 11.2 percent in May, its first decline since November 2006. Illinois has added 70,000 jobs so far this year.
* Meanwhile, DC continues to dither on a Medicaid funding extension…
Closing in on 60 votes, Senate Democrats trimmed billions more from their once ambitious jobs and economic relief bill Wednesday in hopes of winning over swing Republicans and breaking the stalemate this week.
The spending reductions — estimated near $20 billion — are accompanied by tax changes tailored to the small-business concerns of Sen. Olympia Snowe (R-Maine) as well as venture capital and real estate interests with influence in both parties.
In the bargaining now, Senate Majority Leader Harry Reid, up for reelection in cash-strapped Nevada, is still holding onto a $24 billion, six-month extension of federal Medicaid assistance from January to June next year.
The money is vital to the finances of states like Reid’s, hit hard by the economic downturn, and he has the support of President Barack Obama. But the cost of the Medicaid funding makes the program an easy target, and the dollars may still have to be scaled back to win the swing vote of Snowe’s fellow Maine Republican, Sen. Susan Collins.
- Niles Township - Thursday, Jun 17, 10 @ 2:07 pm:
Five straight months of IL job growth. The story is turning around for Quinn just in time.
- 47th Ward - Thursday, Jun 17, 10 @ 2:11 pm:
Susan Collins is killing me. It’s deja vu all over again. Now is NOT the time to hit the stimulus brakes. Keep your foot on the gas and prop up these state budgets until income tax receipts recover.
===tax changes tailored to the small-business concerns of Sen. Olympia Snowe (R-Maine) as well as venture capital and real estate interests with influence in both parties===
That sounds like more tax cuts to me. Not a good stimulus, but I’m guessing it’s pretty good politics up in Maine. Sheesh.
- Fed up - Thursday, Jun 17, 10 @ 2:18 pm:
Wow thats some excellant managment by the Blago/Quinn team. The moneys there the projects are approved but even they dont know why nothing is happening. Quinn couldnt manage the fry machine at the local Tastte freze. PS without the census no job growth at all. Temp jobs that end soon.
- Confused - Thursday, Jun 17, 10 @ 2:20 pm:
“’That’s my attitude exactly, what’s the hold up?’” said David Vaught, Illinois budget director.”
The state procurement process. And the July 1st changes are not going to speed it up.
- Small Town Liberal - Thursday, Jun 17, 10 @ 2:22 pm:
- PS without the census no job growth at all. -
I love getting my talking points from Rush Limbaugh too.
- Ghost - Thursday, Jun 17, 10 @ 2:23 pm:
Rich you are totally off base here. More management? you imply that there has been some management, it appears there is zero management here
- George - Thursday, Jun 17, 10 @ 2:43 pm:
Having some experience in this, a lot of the timing is dependent on the bidding process, A&E, permitting, etc.
For those projects that had been bid, and have the A&E work done already (but were waiting for funds), those are ready to go.
For others, it will take some time from the time the funds are approved to the actual work being done.
Furthermore, if they have projects on a reimbursement structure, then the work will get underway well before the money is paid out from the State.
HOWEVER, OMB should know all of these things. If they don’t have a tracking system in place, they should build one ASAP.
- VanillaMan - Thursday, Jun 17, 10 @ 2:49 pm:
Right. The reason we’re under water with unemployed is because we aren’t spending enough.
The bankrupted are running the bank.
- Rich Miller - Thursday, Jun 17, 10 @ 2:53 pm:
VMan, we’re at a point in time when businesses aren’t spending, banks aren’t lending and consumers aren’t buying. So you would rather…. what?
- George - Thursday, Jun 17, 10 @ 2:55 pm:
Also VanillaMan
Money is being taken out of the economy to pay for the capital bonds. That capital money should be spent (at a rate of 10:1 compared to what is being taken out).
- 47th Ward - Thursday, Jun 17, 10 @ 3:11 pm:
VM,
If you think unemployment is bad now, wait until 20,000 teachers are laid-off in Illinois. Then multiply that by 50 states.
PS: How’s your boy Gov. Christie doing these days? How’s that slashy-spendy thing working out in Jersey?
- Amalia - Thursday, Jun 17, 10 @ 3:12 pm:
the management part of the budget and management department probably gives notice to agencies and
grantees re time to spend, ask for reports, etc.
but the management of the money lies with the
ones who get the money. Budget and Management
does not manage an entire government. that would
be the job of….oh, perhaps Jack Lavin.
- Deep South - Thursday, Jun 17, 10 @ 3:42 pm:
Everytime I see the “Blago/Quinn” reference/connection I know its just a right wing talking point and out-of-hand dismiss whatever is being said. It may play well with the base, but how long before a majority of independent voters grow weary of this tired old BS?
- Anonymous ZZZ - Thursday, Jun 17, 10 @ 3:55 pm:
Deep South - I know what you mean. I think the same thing every time I see a “Brady/Bush” connection (see Rich’s latest post).
- A.B. - Thursday, Jun 17, 10 @ 3:57 pm:
@Small town
Last time I checked that same “all the jobs are from the census” statement was quoted as being the reason the market dropped below 10,000. So either the financial sector follows Limbaughs marching orders, OR there is a little fire behind that smoke….
- dupage dan - Thursday, Jun 17, 10 @ 4:03 pm:
All the folk here lining up on their respective sides tossing out their rhetorical bombs is more typical of a friday afternoon than thursday. We should just number our political/economic viewpoints and list them rather than trot out the stuff about how spending money saves it. It’s like a sale at a store. We go and buy stuff on sale because we save money. Forgetting that to not buy saves even more. A simplistic view not intended to contradict the more learned students of economics who post here. Not likely viewpoints are going to change so what is the point? Need to get some licks in with the “slashy-spendy” thing? Make you feel better when you write that? There, there, now - maybe some warm milk will help, too?
PQ wanted us to get all scared with his slash school funding hoping he would get the folk upset and put pressure on the GA to pass a properly funded budget (read tax hikes). How’s that working for ya? Don’t bother mentioning how the GOP ain’t doing anything either, we’ve heard that, too. Yawn.
- 47th Ward - Thursday, Jun 17, 10 @ 4:10 pm:
===Make you feel better when you write that?===
Yeah, it kind of does make me feel better. In case you haven’t noticed Dan, this blog is a virtual conversation about Illinois politics. You aren’t shy about putting your two cents in on a daily basis either, so I’m confused by your whining. If you’re tired of it, you can always go elsewhere.
- Former Downstater - Thursday, Jun 17, 10 @ 4:21 pm:
“We sold $4 billion in bonds to get the program moving. The money is available, the projects are authorized, as soon as the agencies, the non profits, you know, the hospitals, as soon as they get their grant applications in and get the paperwork done, or as soon as the bids go out, and people bid on the projects, the cash is flowing,” said Vaught.
I’m the ED of one of those non-profits with funding in the capital bill. To date, the only contact we’ve received, nearly a year later, is to ask for our Certificate of Good Standing from the SoS office. We have our bids, our plans, everything. We just need something from the state to tell us what to do next. All of my calls to DCEO are met with the answer “we don’t know anything on timing.” What grant applications? What paperwork?
- dupage dan - Thursday, Jun 17, 10 @ 4:37 pm:
Not whining, 47th, just bored - y’all gotta come up with better lines. Drive by snark gets old after awhile, no?
There’s an old joke about a newbie prisoner who learns that all the cons have numbered their jokes since everyone knows them after having served time with each other for so many years. So, trying to get into the swing of things, the newbie stands up at chow time and says “37″. When no one laughs an old timer shakes his head and says, “some people just can’t tell a joke”.
So, even if we don’t number our arguments we can try to be a little more creative in our remarks.
- 47th Ward - Thursday, Jun 17, 10 @ 4:42 pm:
I agree about drive-by comments, but c’mon, “slashy-spendy” was original (if not necessarily funny).
- Anonymous - Thursday, Jun 17, 10 @ 4:42 pm:
==Everytime I see the “Blago/Quinn” reference/connection I know its just a right wing talking point and out-of-hand dismiss whatever is being said.==
Either that, or it’s a state employee — the management/administrative style of the two is indistinguishable from the point of view of the people who live with it every day.
- Robert - Thursday, Jun 17, 10 @ 5:23 pm:
Management problem, I agree. But I’m more concerned that some of these expenses were approved by the legislators and Gov. Quinn. The capital budget http://dig.abclocal.go.com/wls/documents/Ill_Jobs_Now_Projects.pdf seems to include some questionable items, given the state’s budget situation. $15.6 Million for Chicago Zoological Society, $5 Million for Black Ensemble Theater, $27 Million for Rock Valley College to have an Arts Building, $28 Million for a South Suburban Airport (tho that last one is strange, as I’d think an airport would be more expensive)
Yes, I understand the difference between a capital budget and an operating budget, probably not as well as many of the other cap fax participants…the state borrowed money to pay for these projects, so I believe interest on this will be funded by interest on debt in future operating budgets, right?
- In the Sticks - Thursday, Jun 17, 10 @ 5:42 pm:
Following the appropriation, there must be a release of funds from GOMB before projects can begin. If it is through the Capital Development Board, procurement requirements must be followed in the selection of an A/E to design the work.
Design takes time, and that must be completed and reviewed before anything is advertised for bid. Confused is correct that things will slow significantly after July 1st.
Under past administrations, releases followed appropriations on a predictable timeline. That has not been the case in the last two administrations. Bonds may or may not be sold when needed; those sales have been erratic at best for the last 10 years.
- Louis Howe - Thursday, Jun 17, 10 @ 7:24 pm:
Dave Vaught and Jack Lavin are clueless. Quinn’s had nearly 16 months to change the way state government does business. Instead of driving efficiencies with business like best practices, he’s filled up state management slots with young inexperienced attorneys and political hires. It’s a mess. The trend line continues to point south.
- wordslinger - Thursday, Jun 17, 10 @ 10:59 pm:
I’ve been driving all day. I think I hit every road construction project in the Midwest, so the news is kind of counter-intuitive.
- dupage dan - Friday, Jun 18, 10 @ 9:50 am:
47th Ward
Yeah, slashy spendy was funny - gotta admit! Maybe I was having a bad hair day.