* Apparently, they have no fact-checking requirements at the New York Times…
Facing a budget deficit exceeding $11 billion, the State of Illinois in recent weeks has begun challenging the property tax exemptions of some of its best-known hospitals, saying they should pay more because they are not providing enough charity care.
Wow. So many problems in just one lede.
I asked the reporter how he came up with the $11 billion number and the reply came back: “the state.” Well, whichever person at “the state” said this was completely wrong. Because of the income tax hike, the structural deficit is down to about a billion or so, although the state is struggling to pay off something like half that $11 billion amount in overdue bills.
Also, even if the $11 billion figure was correct, and it’s not, what the heck do property taxes have to do with the state budget? There are no state-levied property taxes. Those are local taxes. There is no push to strip income or sales tax exemptions. It’s all about local taxation.
The rationale given for this push is also incorrect because the state actually started ramping up its property tax exemption challenges after it won a big court case last year.
The rest of the NYT story is pretty good, but that lede is just bizarrely off kilter.
* Meanwhile, this amount of money to pay for the China trade mission doesn’t bother me all that much…
The Democratic governor and his fellow travelers will pay their own way to China, but the trip is expected to run taxpayers about $133,000 for associated costs such as meeting space.
The cost comes at a time when Quinn has proposed mass layoffs and state facility closures due to a lack of money.
Expand economy = more money from taxes = less need for state layoffs and closed facilities. And considering that this trip will likely increase exports, that $100K is money well spent…
Besides Navteq Corp. President and CEO Lawrence Kaplan, the group includes mid-level executives from three large Illinois companies—Archer Daniels Midland Co., United Continental Holdings Inc. and Navistar International Corp.—plus five execs from smaller, privately held firms. Others on the mission include elected officials such as Rockford’s mayor, Lawrence J. Morrissey.
Mr. Quinn expects to preside over the signing of agricultural and telecommunications contracts worth “hundreds of millions of dollars” for Illinois exporters, according to a statement released by his office on Thursday. He also plans to sign agreements for future business exchanges in biotechnology, clean energy and education. […]
While Indiana’s governor or lieutenant governor has visited China or Japan nearly every year for the past decade, this is the first China trade mission by an Illinois governor since former Gov. Jim Edgar went in 1996, when Illinois exports to China were about a sixth of what they are now.
“It’s a very good, positive thing that Gov. Quinn is going to China,” Mr. Ingraham said. “Having the governor go is a real door opener for your state. The Japanese and Chinese really appreciate your top person going.”
More…
China is the third largest export destination for Illinois products, totaling $3.4 billion in sales last year. Products exported include machinery, electronics and agricultural goods.
*** UPDATE *** Big doings on this trip…
Archer Daniels Midland Co. is poised to sign an agreement to sell 180,000 metric tons of soybeans to a Chinese food and supplement manufacturer.
The Decatur-based company announced the pending deal Thursday on the eve of the start of an eight day trade mission to China headed by Illinois Gov. Pat Quinn.
ADM said the agreement with Jiusan Oils and Grains Industries Group Co. Ltd. is part of an effort to boost the company’s ability to serve growing Chinese demand for crops. China is the world’s No. 1 importer of soybeans.
[ *** End Of Update *** ]
* And Mike Riopell at the Daily Herald took a look today at the latest gaming revenues analysis from the Commission on Government Forecasting and Accountability and highlighted this analysis of why casino gaming receipts are down…
These factors include the struggling economy, increased competition from other states, and the effects of the graduated tax structure.
However, the numbers continue to suggest that the biggest contributor to the drop in Illinois casino revenues is the indoor smoking ban. Since the indoor smoking ban began in January 2008, adjusted gross receipts for Illinois riverboats have fallen a combined 30.7% from pre-smoking ban levels.
Yikes.
- Cassiopeia - Thursday, Sep 15, 11 @ 1:49 pm:
So how many staff from DCEO, Agriculture and the Governor’s office are going with the Governor to China? That would be an interesting list.
- Rich Miller - Thursday, Sep 15, 11 @ 1:52 pm:
Cassiopeia, what does it matter? Seriously.
- Carl Nyberg - Thursday, Sep 15, 11 @ 2:07 pm:
There was recently a NYT article that a local journalist linked to on his FB page.
The thesis of the article was about how redistricting had created a large number of safe districts and this increases partisan rancor as members appeal to primary base voters.
Anybody who pays attention to politics should know that the last three election cycles 2006-2010 have produced more turnover in the House of Reps since the early days of the FDR administration.
The NYT based an entire article on a premise that is obviously flawed. The re-election rate for the U.S. House before 2006 was over 99% when first-termers and scandal affected members were excluded. Now, incumbents get beat. Ask Phil Hare and Melissa Bean.
So, the weak fact checking at the NYT isn’t a one article problem or even one department.
- Loop Lady - Thursday, Sep 15, 11 @ 2:09 pm:
I hope he brought LOTS of Asian Carp with him…;)
- Cassiopeia - Thursday, Sep 15, 11 @ 2:10 pm:
The staff to China question is to see how frugal Quinn is still being. I suspect it is very limited.
It is also hard to know who is really in charge of Economic Development in Illinois these days. The staff list for this trip will be an indicator.
- The Captain - Thursday, Sep 15, 11 @ 2:17 pm:
In light of that gaming report, I haven’t looked at any COGFA reports in a while but I wonder if lottery receipts are up in this economy. I remember looking at year to year lottery revenues back during the lottery sale/lease debate and seeing what appeared to be an inverse relationship between the health of the economy and lottery revenues. It seemed like people were more willing to bet on longshot lottery tickets when times were desperate.
- Coach - Thursday, Sep 15, 11 @ 2:33 pm:
What a brilliant catastrophe on the part of the New York Times. There so much good information out there, if only reporters would ask questions and challenge their own assumptions.
- Anon - Thursday, Sep 15, 11 @ 2:37 pm:
You should link to your $1 billion estimate if you’re going to make that claim.
Does that count the Medicaid spending that the budget pushes off by not appropriating, but still accruing liabilities?
- Rich Miller - Thursday, Sep 15, 11 @ 2:39 pm:
Yes, anon, it does.
- Rich Miller - Thursday, Sep 15, 11 @ 2:40 pm:
And there’s no link because it really isn’t a published number. You have to infer the structural deficit by looking at what they pushed off budget.
- sal-says - Thursday, Sep 15, 11 @ 2:42 pm:
“* Meanwhile, this amount of money to pay for the China trade mission doesn’t bother me all that much…”
No probably not…..but…..is Quinn the ‘lead’ of this group? With the ways he’s handling his office in IL?
- Coach - Thursday, Sep 15, 11 @ 2:43 pm:
By the way, if that Times reporter is the same Bruce Jaspen who was a longtime Trib reporter and a recent casualty of Trib layoffs, then one might expect him to have a basic understanding of Illinois government - or, at the very least, enough pride in his coverage of this state to make a few phone calls and ask some questions to get a grasp on his subject matter.
No doubt, the Times will stand by its lede and defend it to the hilt.
- sad - Thursday, Sep 15, 11 @ 3:00 pm:
If we are going to have dens of vice, then let’s have dens of vice. Let people smoke whatever they want in a casino. Mary-jane included.
- Ahoy - Thursday, Sep 15, 11 @ 3:01 pm:
I don’t think we can get a good read on the smoking ban’s effect on casino’s until the economy improves. Both the smoking ban and the economic slowdown took place around the same time. Here’s some numbers Cook Stock Data:
Wynn Resorts:
3/31/07 profits: 39%
3/31/11 profits: 7%
% change -32%
MGM
3/31/07 profits: 9%
3/31/11 profits: -23%
%change: - 32%
If the best in the business (Wynn) was down 30%, I can believe Illinois casino’s are too.
- thechampaignlife - Thursday, Sep 15, 11 @ 3:09 pm:
But Rich, as any good researcher knows, if there’s no link, it’s not true!
And, didn’t you know that pre-tax increase deficit + overdue debt = NYT deficit? Ignoring the size of the deficit, the rest of their lede is technically true, albeit disingenuous. We are facing “a” deficit and we are challenging exemptions, albeit one has nothing to do with the other and don’t belong in the same sentence. A real cynic might suggest that this is Quinn’s way of getting schools to pay for their transportation and regional superintendents by cutting off state funding and giving them more property tax revenue in return.
- Anon - Thursday, Sep 15, 11 @ 3:27 pm:
The government doesn’t have to pay overdue debt, anymore?
- Rich Miller - Thursday, Sep 15, 11 @ 3:29 pm:
Anon, that’s old bills. The structural deficit is different. The state was at one point creating billions of dollars in new past-due bills ever fiscal year. That’s mostly ended.
- Bill Baar - Thursday, Sep 15, 11 @ 3:33 pm:
I don’t doubt Riopell’s right on the impact of the smoking ban. If Illinois and local gov’s going to skim points on the gambling vice, seems like they ought to tolerate a smoking vice if it ups the skim. And after all the tax the heck on those cigs too.
- wordslinger - Thursday, Sep 15, 11 @ 3:45 pm:
I’m surprised Edgar was the last governor to take the Asia tour. Ryan went to Cuba but not China or Japan? That’s odd.
- Rich Miller - Thursday, Sep 15, 11 @ 3:56 pm:
It is odd, Word, especially considering that Ryan’s mantra was “Thompson plus.” Everything Big Jim did, he wanted to do bigger.
- lincoln's beard - Thursday, Sep 15, 11 @ 4:07 pm:
If the smoking ban is really driving down casino revenues, it just goes to show how much more addictive smoking is compared to gambling. I’m inclined to see that as a point in favor of maintaining the smoking ban.
- walkinfool - Thursday, Sep 15, 11 @ 4:20 pm:
While other states, like Indiana, Texas, and Wisconsin brag about moving jobs from one state to another, Illinois competes on the world stage versus other countries. Chicago is steadily becoming a leading world class city, and Illinois is following suit on the international business scene. There’s a reason that the President of China visited only Washington DC and Chicago, last time around.
Money well spent — it should be more and more often.
- John Galt - Thursday, Sep 15, 11 @ 4:23 pm:
Interesting point, lincoln’s beard. Never thought of it that way. Or perhaps when push comes to shove, folks can get their gambling fix in restaurant back rooms & with online poker sites?
At any rate, this all kind of strikes me as how odd it is to try to balance the revenue side of “sin taxes” with the desire to diminish the “sin” aspect of it. On one hand, we want the behavior to diminish because it costs money w/ the negative side effects. On the other hand, we start to rely on the revenue it provides so we don’t want the behavior to diminish TOO much or we lose the revenue. It just creates a really bizarre dynamic. Not sure what the solution is, but it certainly makes for odd public policy.
- John Galt - Thursday, Sep 15, 11 @ 4:25 pm:
And FWIW, I’ll make the prediction right now that a statewide smoking ban will be amended so that municipalities can issue licenses according to their own criteria. I could easily see Chicago making a boatload of money off of annual “smoking licenses” that Aldermen get to hand out to favored bars & restaurants. It could help fill both the city’s coffers, as well as Aldermen’s campaign coffers.
- park - Thursday, Sep 15, 11 @ 7:31 pm:
yes, not well reported. but you can find their point without much trouble. Illinois wants private businesses, whether profit or non profit, to give free medical care so Illinois doesn’t have to. The hospitals can then overbill Obama’s ‘rich’ to keep their profits up (and I’m sure there’s plenty of profits).
Regarding the property tax issue….this is State action to pull the exemption, regardless of where the property tax money goes. And pulling the exemption is meant to be coersive. Lisa Madigan, a constitutional state official, is the driving force. The Times’ allusion to state action is completely appropriate. I don’t recall seeing the City of Chicago pulling Prentice’s exemption. Lisa did this.
- wordslinger - Thursday, Sep 15, 11 @ 8:27 pm:
–Chicago is steadily becoming a leading world class city, and Illinois is following suit on the international business scene.–
I know some folks don’t like to read this, but the facts are:
–Chicago Metro is the fourth largest metro economy in the world, behind only Tokyo, New York and Los Angeles.
–Illinois’ GDP is the fifth largest among the states, and is as large as Mexico’s, a country of 107 million. If Illinois was a country, it would be the 13th largest economy in the world.
Doesn’t fit the U-Haul narrative.
http://bigthink.com/ideas/21182
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29
- Pat Robertson - Thursday, Sep 15, 11 @ 8:28 pm:
==Lisa did this.==
The Provena case that started the latest round of property tax exemption cases started back in 2002. Cases involving other hospitals were put on hold while it went up through the courts. The Department of Revenue is the driving force, not the AG.
- Small Town Liberal - Thursday, Sep 15, 11 @ 9:05 pm:
You know, you’d think Quinn not bending to Madigan’s way of doing things while still presiding over some pretty important doings for the state would make him more popular among the “sick of Illinois politics” crowd. I may not agree with his executive tendencies sometimes, but I think that he’s getting a bit of unfair treatment from those who begged for change. Maybe sparring with Madigan isn’t necessarily new, but would going along step by step be what everyone is looking for?
- Been There - Thursday, Sep 15, 11 @ 9:12 pm:
===It is odd, Word, especially considering that Ryan’s mantra was “Thompson plus.” Everything Big Jim did, he wanted to do bigger.===
maybe there were no casinos in those countries back then
- wishbone - Thursday, Sep 15, 11 @ 10:59 pm:
Well, you learn something everyday. We are only down a billion and change and $9B in unpaid bills. Piece of cake.
- Soccertease - Thursday, Sep 15, 11 @ 11:07 pm:
Sorry about the late post-so Rich is probably the only nerd that will see this, but the state’s deficit can be just about any number you want. The state’s latest audited financial statements (Jun 2010) show a full accrual fund deficit of $37 billion. That includes all long term bonds, pension debt and fixed assets. The total governmental funds deficit (modified accrual)is $4.2 billion. That amount is basically current assets and liablities and excludes the pension and bonded debt and fixed assets. The general fund deficit alone that is included in the $4.2 governmental fund deficit is a $9.2 billion deficit.
So, pick a number. The state guy could have been right depending on what deficit we’re talking about.