* The Chicago Tribune’s editorial board conducted a survey of 45 CEOs of what it says are “top Illinois-based public companies.” The survey was conducted over the past six weeks and the results were compiled by Market Shares Corp.
To say these CEOs are pessimistic would be an understatement. The Trib decided to show numbers of CEO responses instead of percentages, but I’ve added some highlights to make it slightly easier to read…
* How do overall Illinois economic conditions compare with nearby Midwestern states? Much/somewhat better: 6 About the same: 9 Somewhat/ much worse: 28
* Within the next couple of years, how much confidence do you have that Illinois state government will solve its fiscal problems? A lot/some: 1 Not sure: 1 Very little/none at all: 41
* How effective are Illinois tax credits and other state and local incentives in attracting and retaining businesses? A lot/some: 13 Very little/not at all: 30
* How much progress is Illinois making in funding its public employee pension and retirement benefits? A lot/some: 1 Not sure: 5 Very little/none at all: 36
* How much progress is Illinois making on public school reform? A lot/some: 10 Not sure: 1 Very little/none at all: 32
* How much progress is Illinois making on curbing corruption in government? A lot/some: 6 Not sure: 2 Very little/none at all: 34
* How much progress is Illinois making on transparency in government? A lot/some: 8 Not sure: 3 Very little/none at all: 29
* The state temporarily raised taxes to reduce its budget deficit shortfall and pay overdue bills. How much do you think this will help reduce state budget deficits? A lot/some: 7 Very little/not at all: 36
* Is the state tax rate your company pays today fair or unfair? Fair: 16 Unfair: 24
* And except for Rahm Emanuel, they don’t particularly care for Illinois’ other major leaders…
What grade would you give the state’s political leadership for fostering a favorable business environment in Illinois?
* Pat Quinn, Governor Excellent/good: 3 Not sure: 1 Fair/poor: 37
* Rahm Emanuel, Chicago mayor Excellent/good: 28 Not sure: 3 Fair/poor: 10
* Michael Madigan, House speaker Excellent/good: 2 Not sure: 2 Fair/poor: 37
* John Cullerton, Senate president Excellent/good: 4 Not sure: 8 Fair/poor: 28
* Tom Cross, House minority leader Excellent/good: 8 Not sure: 14 Fair/poor: 19
* Christine Radogno, Senate minority leader Excellent/good: 7 Not sure: 17 Fair/poor: 17
* Again, these CEOs are very pessimistic about the state’s future…
* How will Illinois economic conditions in the next 12 months compare with the last 12 months? Much/somewhat better: 2 About the same: 20 Somewhat/ much worse: 21
* Do you agree or disagree that now is a good time for your business to expand its investment in Illinois? Agree: 13 Disagree: 30
* Do you believe the Illinois economy will grow at a faster rate than the nation, at about the same rate, or at a slower rate than the nation? Faster: 0 About the same: 14 Slower: 29
* How much are Illinois state taxes an impediment to making business investments in the state? Very little/not at all: 8 A lot/some: 34
* Yet, despite all that pessimism and negativity, a significant number of them have done and are planning some sort of expansion…
* This year, how much did your company expand its Illinois workforce versus last year, if at all? A lot/some: 16 Very little/no change: 17 Reduced: 10
* How much is your company planning to expand its Illinois workforce next year, if at all? A lot/some: 13 Very little/no change: 21 Reduced: 10
Of course this last set of numbers could be a whole lot better, but considering the international economic situation the responses were a bit more positive than I thought it would be, especially factoring in the almost universal disdain these people have for the state government and the state’s future.
Your thoughts?
* Related editorials…
* Making Chicago, and Illinois, competitive: Some companies offset these drawbacks by screaming for help until politicians come running with special tax deals and other bribes (invariably at the expense of other companies and individual taxpayers). The flip of that: Other companies don’t scream, they just relocate to more business-friendly states. Or they don’t even come here in the first place. Look at how painfully unresolved our taxpayer debts, our government retirement costs, our tax disincentives and our often underperforming public schools remain.
* Business to pols: Shape up: Gov. Pat Quinn tried to do some cheerleading last week, telling an audience at the City Club of Chicago: “We shouldn’t get down on ourselves. We shouldn’t sell ourselves short. We have a great state, great workers and great companies.” Governor, the leaders of those great companies, the people who hire those great workers and pay taxes in this great state — they want more than cheerleading. They want results.
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Question of the day
Monday, Oct 24, 2011 - Posted by Rich Miller
* From Jason Plummer’s Twitter page…
Today I announced my campaign for Illinois’ 12th CD! I very much appreciate all of your help & support, both in the past and again today.
* From his press release…
His campaign will focus on reining in reckless spending, reform of our tax and regulatory structure, and getting government out of the way of small businesses so the U.S. economy can get moving forward again. Plummer said, “Businesses need to be able to get back to doing what they do best – providing stable jobs for hard working people and quality products and services for consumers. The burdens government has put on our small businesses and workers are crushing this economy and putting people out of work.”
“Our family businesses are blessed to have helped create and maintain over 1,000 jobs in Illinois and surrounding states. We have been creating quality jobs in Illinois for over 30 years, but never have we seen an environment as bad as this,” said Plummer. “The announcement last week that the Illinois unemployment rate reached 10% is further proof that what Washington is doing is not working. I am running for Congress to push for common-sense reforms of the way government operates and to use my business experience to find solutions for our stagnant economic growth.”
The 12th is currently represented by retiring Democratic Congressman Jerry Costello. One Democrat may announce soon…
Madison County Chief Judge Ann Callis is expected to jump into the race in the coming days, a top party official confirmed this morning.
If and when Callis announces, she will be the first prominent Democrat to jump in race since Costello’s surprise retirement announcement earlier this month.
…Adding… Democrat Chris Miller of Carbondale is also considering a bid. Miller, no relation, served 7 years in the Army and did two tours of Iraq. He was featured in a 2010 VoteVets TV ad called “Tough.”
* The Question: What are your recommendations for Plummer’s new campaign slogan?
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Vote “Yes” on SB1652 Override
Monday, Oct 24, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Overriding SB 1652 would result in a $3.2 billion investment in Illinois’ economy that would improve reliability, create 2,450 jobs statewide and help make Illinois more competitive with other states.
Statewide Benefits
· Makes over $3.2 billion of electric infrastructure investments
· Creates 2,450 jobs during the peak period of the program
· Reduces and shortens electric outages
· Results in customer savings due to energy efficiencies with smart meters, time of use pricing, and improved voltage control
· Expands opportunities for renewable energy and efficiency measures
· Mandates strict performance standards; consumer protections
Labor, environmental and business groups have all joined to support grid modernization, including:
· Illinois AFL-CIO
· Sierra Club
· IBEW, Laborers and Pipefitters locals
· Chicagoland Chamber of Commerce
· Illinois Black Chamber of Commerce
· Illinois Business Roundtable
· Natural Resources Defense Counsel
Customer savings will more than offset rate increases, which for a typical Ameren Illinois residential customer is an increase of, on average, about $3.40 per year.
Visit ItsAboutIllinois.com to learn more.
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Veto session live blog
Monday, Oct 24, 2011 - Posted by Rich Miller
* There probably won’t be too much live-Tweeting today because we only have committee hearings. But, you can stay tuned anyway via our ScribbleLive thingamabob. BlackBerry users click here. Everybody else can just lean back in your chairs and just watch…
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Still waiting on the “big” pension bill
Monday, Oct 24, 2011 - Posted by Rich Miller
* The House Personnel and Pensions Committee meets this afternoon, but there is only one bill posted and it isn’t “the big one.” The bill, sponsored by House Republican Leader Tom Cross, would forbid Chicago union execs from basing their city pensions on income earned at their union jobs. The bill follows a series of stories a few years ago by the Sun-Times and more recently by the Tribune exposing the practice. There’s nothing in today’s Senate Executive Committee postings, and the same goes for the House Exec postings.
Tomorrow afternoon’s hearing is much the same stuff. It’s all about the union pension fund issue, but the major reform legislation hasn’t yet been posted, nor amended onto an existing bill in committee.
If a major reform bill surfaces, the whole thing could happen very quickly. And even if it manages to pass the House, the Senate is far more questionable. The Senate President doesn’t believe that Cross’ bill is constitutional because it alters the system for current employees. And members just haven’t been lobbied by the proponents like they have been in the House.
* From Gatehouse…
The [Civic Committee-backed pension reform] bill didn’t get a vote last spring. Since then, working groups of lawmakers, pension officials, union representatives and others have met to discuss where to go.
“Our pension expert attended the meetings and made clear our views, but it, frankly, seemed like a dog and pony show to promote the failed legislation from the spring,” Lindall said.
Brown said members are being surveyed to see what support exists for a pension change bill. Rep. Raymond Poe, R-Springfield, ranking Republican on the House Pensions Committee, is skeptical.
“I don’t see them working that bill at all,” Poe said. “No one’s talking too much about it.”
* Tribune…
House Republican Leader Tom Cross of Oswego is expected to push a number of pension reforms following Tribune reports about abuses that allow union officials to collect inflated pensions.
Cross’ legislation is aimed at closing loopholes that allow double-dipping by union officials who collect a city pension and union pension for the same period of work. He also wants to reorganize Chicago and Cook County pension boards to provide what he says is more accountability.
Cross also is working on a measure that would limit pension benefits for current employees, but it’s unclear if the measure will surface during the abbreviated fall session.
That’s the overarching challenge on many of these issues: It took months and sometimes years to put support together, and now lawmakers must find a way to retool in only a few weeks.
* DeKalb Daily Chronicle…
Pritchard said he’s heard rumblings that the pension issue might come up at the veto session, but his gut feeling is that it won’t happen. State Sen. Christine Johnson, R-Shabbona, said she doesn’t expect SB 512 to be called during the veto session, though she’s heard there are different proposals that could come up.
State Rep. Joe Sosnowski, R-Rockford, said legislative leaders will decide what is brought up during the Veto Session, and he noted there’s a lot of issues that will demand attention. […]
Fahner said he believes the chances are good that pension reform will come up at the veto session. The measure is sponsored by House Speaker Michael Madigan, D-Chicago, and Republican House Leader Tom Cross, R-Oswego, and Fahner believes lawmakers have the votes to get it passed. […]
What should occur, Pritchard said, is employees and the state should work together to find a solution. There are many ideas out there, he said, like establishing a later retirement age or capping the amount of pension salary employees can earn.
Rep. Pritchard’s comment about a desire for a negotiated solution is something I’ve been hearing more and more these days. Republicans and Democrats want both sides to try to hammer something out. And the feeling is that has a better chance of happening if action is put off until the spring session. Some of the people pushing reform believe that union members will get antsy about having something jammed down their throats, so they’ll push leadership for a negotiated solution. Time will tell.
It’s possible that Leader Cross will address this issue at today’s committee hearing. Stay tuned.
* Roundup…
* State senator tied to target of ‘large-scale fraud’ investigation: In 2005, George E. Smith, a South Side health-care and social-services provider, bought two unfinished condominiums and a vacant lot from Illinois state Sen. Mattie Hunter for $240,000. Three years later, Smith’s not-for-profit mental-health group got $500,000 in state funding that Hunter — a Chicago Democrat and head of the Senate Human Services committee — helped arrange. That “disability behavioral health services” grant is now among more than $18.5 million worth of government deals that state inspectors say Smith used to commit “large-scale fraud” on Illinois taxpayers.
* Statehouse Insider: Is a smaller gambling bill even possible?: Quinn can complain that the expansion bill that was never sent to his desk is too big and therefore unacceptable. But so far in this state, no one has figured out how to pass a smaller-scale version. Like it or not, it has to be real big or it probably will be nothing at all.
* Illinois veto session expected to focus on budget, differences between Quinn and Legislature
* Hopf: Proposal for ROE funding will generate protest from communities: Has the funding for the regional superintendents’ salaries been put on the back burner? Not exactly. House Speaker Michael Madigan introduced legislation earlier this month to restore the funding with money collected through the personal property replacement tax, which the state collects from corporations and business partnerships and distributes as income tax to schools, counties, cities and other government bodies. This looks like a victory for Quinn, who has made it clear that if regional offices of education remain open, they should remain open with local revenues. However, with talk of moving PPRT from this budget cycle, municipalities and counties across the state will be gearing up for a battle.
* Regional superintendent, assistant should receive paycheck soon
* Nonprofit hospitals’ huge tax breaks under increasing scrutiny
* Mercy Health systems operates as a ‘church’ for tax purposes
* Chicago hospital helping Haiti rebuild - Chicago’s Children’s Memorial Hospital helping Port au Prince’s Grace Hospital
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*** UPDATE *** Here comes the trailer bill…
Sen. Don Harmon (D-Oak Park) told the Chicago Sun-Times that the package he intends to introduce Monday and position for a full Senate vote Tuesday will “make dramatic improvements to the bill that was passed in the spring, focusing on increased reliability, job creation and protection for ratepayers.” […]
Under Harmon’s trailer bill, which he intends to present Monday afternoon in a Senate committee, the state’s two main utilities, ComEd and Ameren, would be required to invest $1.3 billion in “smart-grid” modernizations and pour another $1.3 billion into beefing up their existing electricity-transmission systems.
That marks a reduction in how much the utilities could spend on smart-grid upgrades. The legislation that Quinn vetoed would have authorized $1.5 billion in smart-grid investments and $1.1 billion in upgrades to existing infrastructure.
Harmon said his legislation would bring down the amount of profit ComEd would be guaranteed from a minimum of 10.4 percent under the bill Quinn vetoed to 9.7 percent, which would cost the Chicago-based utility $30 million.
That return-on-equity benchmark would be “reduced in future out years” to the “high 8 percent to low 9 percent range,” Harmon said.
[ *** End Of Update *** ]
* This is no surprise on any front…
Gov. Pat Quinn on Sunday reacted to an AARP-sponsored poll showing that nearly 7 in 10 Illinoisans oppose annual increases in their electric bills, even if they would improve reliability and prevent outages.
“We want our legislators to listen better to the voters, the consumers of Illinois, both families and businesses,” Quinn said. “It’s very, very important on the eve of a legislative session that’s going to concern some of the most important economic issues for years to come that we take a stand and win for the consumers.”
In September, Quinn vetoed a $2.6 billion bill that would have enabled Commonwealth Edison to lock in a 10.25 percent yearly profit rate (with no cap), part of which would be used to underwrite a roughly $1.5 billion modernization of its power grid.
An override battle begins this week as lawmakers return to Springfield. The legislation is being pushed by ComEd and the downstate utility, Ameren.
Read the full poll by clicking here.
* More…
Nearly half of Illinoisans polled say that a rate-increase bill pushed by Commonwealth Edison should contain greater consumer safeguards and seven in 10 oppose raising rates to improve reliability, according to a new survey to be released Sunday.
The poll of 800 registered voters commissioned by AARP of Illinois and the Environmental Law and Policy Center — two groups fighting ComEd’s legislative push — comes as a major override battle in Springfield begins heating up with lawmakers returning to the Capitol Tuesday for the start of their six-day fall session. […]
The survey, which was performed Oct. 11 by the Joliet-based McKeon & Associates polling firm and had a margin of error of plus or minus 4.1 percentage points, found that 47 percent of those polled believed that bill should be “amended to protect consumers,” while just 11 percent said they believed it should be approved and signed as is.
Half of those surveyed described their monthly utility bills as too high, and 69 percent said they would be against an annual increase in electricity bills to “improve reliability and prevent power outages.”
Finally, reacting to a Better Government Association report in the Chicago Sun-Times, 81 percent of those surveyed believed utility company campaign contributions exceeding $1.3 million had “great” or “some” influence over legislators who voted in favor of bill in May.
Utility consumers are opposed to legislated rate hikes. No surprise. And since the “trailer bill” has not yet surfaced, its details couldn’t be polled. Supposedly, that trailer bill will lessen the vetoed bill’s sting.
* But a result buried way down deep in the poll did catch my eye. It also isn’t much of a surprise, I suppose, but the result ought to make legislators who voted for the income tax hike feel uncomfortable voting for this ComEd bill.
According to the poll, 76 percent said they’d be less likely to vote for a candidate who voted for the recent 67 percent income tax hike. 62 percent would be “not likely at all” to vote for that candidate.
Oof.
Couple that with the rate hike stuff and you’ve got major trouble.
* ComEd’s react…
The poll conducted by AARP is not a legitimate or credible survey. It’s a survey designed to produce a pre-ordained result. The language read to respondents is slanted with inaccurate and misleading information.
ComEd commissioned a poll in the last month that in fact found substantial support for modernizing the electric grid. This poll was conducted by one of the most respected polling firms in the nation, Peter Hart Research Associates.
Customers were asked their opinions on smart grid development and its potential reliability impacts. After hearing a description of a smart grid, three-quarters (76%) of customers support updating and modernizing Illinois’s electric system to include the technology. And, two-thirds (64%) of customers believe smart grid technology has a great deal or a fair amount of potential to improve the reliability of electric service and reduce outages.
We believe Senate Bill 1652 provides an array of benefits to Illinois in terms of job creation, economic development, environmental protections, consumer savings, regulatory reform and modern infrastructure. We look forward to working with members of the General Assembly to help make these benefits a reality.
* Lawmakers To Override Smart Grid Veto
* Back to ‘on’ for smart grid bill?
* Questions about electrical fires remain unanswered - 2 years after blazes touched off in a number of Naperville area homes, ComEd has not released a report on the cause, which is being sought in a suit filed by a homeowner
* Press Release: GE Backing ComEd’s Efforts to Modernize Power Grid - Upgrades to Electrical Infrastructure Will Power Economic Growth, Reduce Environmental Impact and Improve Lifestyles
* Forum: Illinois power grid needs boost
* Editorial: ComEd investment important, but not at ICC’s expense
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*** UPDATED x1 *** Totally disgusting
Monday, Oct 24, 2011 - Posted by Rich Miller
* I’ve known Steve Preckwinkle for 26 years and I’ve known Dave Piccioli for 21 years. They are both my friends, and many years ago Precky was an invaluable mentor. I would not be where I am without him. But, today, I am ashamed of both of them…
Two lobbyists with no prior teaching experience were allowed to count their years as union employees toward a state teacher pension once they served a single day of subbing in 2007, a Tribune/WGN-TV investigation has found.
Steven Preckwinkle, the political director for the Illinois Federation of Teachers, and fellow union lobbyist David Piccioli were the only people who took advantage of a small window opened by lawmakers a few months earlier.
The legislation enabled union officials to get into the state teachers pension fund and count their previous years as union employees after quickly obtaining teaching certificates and working in a classroom. They just had to do it before the bill was signed into law.
Preckwinkle’s one day of subbing qualified him to become a participant in the state teachers pension fund, allowing him to pick up 16 years of previous union work and nearly five more years since he joined. He’s 59, and at age 60 he’ll be eligible for a state pension based on the four-highest consecutive years of his last 10 years of work.
More…
According to the report, Preckwinkle, 59, could collect $2.8 million by the time he’s 78. Piccioli, 61, could receive around $1.1 million by age 78.
Go read the whole thing. This Tribune story shows more about what’s wrong with Springfield than anything I’ve read in a very long time.
* We all make mistakes in our lives, and I have always been generous with my forgiveness because I know all too well how easy it is to screw up. I’ve done it far too many times to count.
But this goes beyond a simple mistake. This is just out and out piggishness.
*** UPDATE *** From a press release…
Following an investigative report by the Chicago Tribune and WGN-TV, state Rep. Jack D. Franks (D-Woodstock) announced today that he will introduce legislation to rescind the ability of two Illinois Federation of Teachers (IFT) lobbyists to participate in the Illinois Teachers’ Retirement System (TRS).
“With this legislation, we are closing an obscene loophole that harms Illinois’ hardworking teachers,” said Franks. “This type of, all too familiar, insider gamesmanship has contributed to the wide-spread demonization of our public sector employees and has put Illinois’ retirement systems further into debt. I call upon both lobbyists to immediately resign their positions with the IFT. These individuals have a fiduciary obligation to protect their members’ retirement benefits, but instead did just the opposite – they self-dealt for their own interests and harmed their members.”
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* Back in May, Treasurer Dan Rutherford became a darling of the austerity cheerleaders by saying this…
The treasurer said lawmakers must cut spending and live within their means in order for Illinois to pay off the debt.
“You can’t borrow anymore money,” said Rutherford. “And if I need to send letters to the rating companies to tell them the treasurer of Illinois is opposed to any more borrowing, I’ll go ahead and do that.”
Rutherford said alerting national rating agencies and bond houses could make it more expensive for Illinois to borrow. He said hopes that step would give lawmakers pause before asking for a billion dollars.
Rutherford even raised the spectre of bankruptcy back in January…
“If you look seriously at a condition for a sovereign government: To go bankrupt would send the bond market into turmoil, and I believe it would actually break a considerable trust that those have who deliver goods and services to the government.
* But Rutherford has now changed his tune…
One of the few people with a foot in each camp is Treasurer Dan Rutherford, a Republican.
In May, Rutherford sharply condemned the idea of taking on more debt and threatened to lobby credit-rating agencies to reject the borrowing if Illinois were to go that direction.
But last month he told the Illinois State Chamber of Commerce that not paying bills is “criminal” and it might be feasible to borrow money to pay them.
“For those of you that are owed money from the state of Illinois, I support the idea of looking at refinancing some kind of a package to take the burden of the debt load off of you and put it on the state,” Rutherford said.
In politics, a “flip-flopper” is somebody who changes positions away from your viewpoint. A “statesman” is somebody who flip-flops in favor of your viewpoint. I happen to agree with this egregious Rutherford flip-flop, which, I suppose, makes Rutherford a statesman in my eyes. But he really has some explaining to do.
* From the AP…
Don’t look for quick action to reduce Illinois’ huge backlog of unpaid bills, despite universal agreement among state leaders that the debt is unfair to businesses, charities and local governments that provide valuable services.
Progress is blocked by fundamental disagreements on how to solve the problem and a lack of any sense of urgency among officials. Even with the Legislature’s fall session beginning next week, officials report little or no discussion of what can be done to pay the bills, which total billions of dollars.
* But the Paul Simon Public Policy Institute’s latest poll shows a slim majority opposes borrowing…
The State of Illinois is late paying its bills to organizations that perform services and provide goods to the State. By law, it has to pay those vendors a high rate of interest on those late bills. Iʼm going to read two statements some people are making about how the State should deal with this situation, then ask you which statement comes closer to your views. If you havenʼt thought much about the issue, just tell me that.
* The State should borrow money at a lower interest rate to pay off those late bills, saving money on interest and getting money to businesses and organizations that need to be paid. 39.1%
* The State should just pay its bills as well as it can with current funds and not borrow money to try to fix its problems. 50.3%
* Havenʼt thought much about it 8.7%
* Other/Donʼt know 1.9%
Discuss.
*** UPDATE *** From Treasurer Rutherford’s communications director…
Just wanted to clarify TDR’s position on repayment of unpaid bills. These are some direct quotes from my conversation with him this morning:
“My message has been consistent from when I met with Governor Quinn in February after his budget address and through multiple meetings with the governor’s budget director.”
“We cannot keep spending money we do not have. Illinois has the worst credit rating of any state. Bipartisan pension reform is needed to rebuild our economy and credit.”
“While I am open to a short-term cash management tool, we cannot burden the young citizens of our state with more debt. Already people in Illinois owe more to their government than citizens of Indiana, Wisconsin or Missouri.”
“It is nearly criminal that Illinois government is abusing its vendors by not paying its bills.”
“I have negotiated contracts all over the world in the private sector. One cannot agree to only one part of a contract and hope that the rest of it will come together. That is what the General Assembly did when they raised the income taxes, under the pretense of paying current bills, and then did not resolve the largest liability hanging out there…the state public pensions.”
If the state doesn’t have the money to pay off those late bills, then short term borrowing merely reshuffles the deck chairs.
* Related…
* Deadbeat Illinois: Late payments cost millions in interest: Last year, delays on bills paid months or even a year late meant $27.1 million was paid out of state coffers in interest under the Prompt Payment Act. In 2010, at the height of the state’s budget woes, interest payments totaled more than $62.3 million after sharply increasing over the previous five years.
* Deadbeat Illinois: Political stalemate over Illinois’ debt poses dire threat
* Behind on its bills, state shares $5 billion shortfall with businesses, nonprofits
* Social Services Wait as State Pays Lawyers $285K
* Editorial: Deadbeat? Say, no more
* Commentary: JDC closure would be a disaster for community
* Former Illinois DOT chief gets new state job
* Supporters of Tamms inmate: Solitary should not be dumping ground for mentally ill
* What will RTA get for $45,000 public relations contract?
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Is Illinois becoming more governable?
Monday, Oct 24, 2011 - Posted by Rich Miller
* For the first time in a very long time, I was heartened after reading a statewide issues poll…
It’s long been a tenet of public opinion that voters want the government to cut its budget and don’t want new revenues, but also don’t want any actual programs slashed.
However, the latest Paul Simon Public Policy Institute poll shows a slow but sure trend in favor of specific state budget cuts and revenue increases.
A large majority of Illinoisans do still believe in magic. According to the poll, 58 percent say the state budget can be balanced by cutting waste and inefficiency. And because of this belief in an utter fantasy world where faeries reign and magic dust solves all our problems, too few want to actually cut state spending programs.
According to the poll, 80 percent oppose cuts in K-12, 74 oppose cuts to public safety programs and 83.5 percent oppose cuts to programs for people with mental or physical disabilities. About 65 percent oppose cuts to spending on programs for poor people. The Institute’s poll of 1,000 registered voters was taken Oct. 11-16 and has a margin of error of +/- 3 percentage points. This was not an autodial “robopoll.” Real people made the calls.
However, there is growing support for cuts. More Illinoisans wanted to protect programs in the Institute’s poll taken three years ago than they do today.
For instance, back in 2008 just 24 percent of Illinoisans favored cuts to pension benefits for state workers’ retirement. Three years later, that support has grown to 45.5 percent. As of now, 48 percent oppose those cuts, but 66 opposed those same cuts three years ago. And there’s a clear trend every year in between.
Also back in 2008, 73 percent opposed cuts to spending on state parks and environmental regulation, but that opposition has fallen to 55.6 percent (perhaps not a coincidence is the increased national Republican rhetoric over “job killing” government regulations).
Again, there is a clear trend over the years toward favoring more cuts. This is not what’s known as an “outlier” poll. In the 2008 poll, for example, 72 percent opposed cuts to state universities. By 2008, opposition had fallen to 61 percent, then fell again to 57.4 percent in 2010. Now, 54 percent oppose cuts to university funding. That’s still a solid majority, but far less than just a few years ago.
And while support for cuts has grown, so has support for some revenue generating ideas.
For instance, the Institute’s poll found that a very substantial 57 percent of Illinoisans now support gaming expansion, while 39 percent oppose it.
That’s ten points higher than the 47 percent who supported gaming expansion in the Institute’s 2008 poll. Back then, a slight plurality of 46.9 percent actually opposed gaming expansion.
We haven’t heard much from gaming opponents during this year’s months-long debate over expansion. They aren’t as organized or as vocal as they used to be, perhaps because they’re losing public support.
Also according to the poll, a very slight majority, 50.1 percent, support expanding the sales tax to cover services like dry cleaning or haircuts, which are not currently taxed. About 46 percent opposed the idea. But today’s support is way higher than in 2008, when only 28 percent favored expanding the sales tax to services.
And even though just 22 percent favored increasing the state sales tax rate, that’s still five points higher than the 17 percent who backed the idea three years ago.
Among the poll’s other findings, a whopping 69 percent of voters support raising cigarette taxes by a dollar a pack, while just 28.5 percent oppose it. The Institute has not asked this question before, so there’s no way to measure the history of its popularity in this particular poll.
Also, 49 percent opposed applying the state income tax to the retirement income of those earning more than $50,000 a year, while 43 percent favored the idea. This issue hadn’t been polled before, either.
What does all this mean? Well, people are gradually becoming more realistic about the state budget, which is a good thing. They’re becoming more conservative about spending and more liberal about new revenues.
These trends make the state easier to govern. Even with this year’s income tax increase, difficult budget decisions still must be made. The more people who are open to cuts and revenues, the easier it is politically to make those cuts and create those new revenue streams.
Read the poll for yourself by clicking here.
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[The following is a paid advertisement.]
Illinois legislators have already voted against Tenaska Energy’s proposed Taylorville Energy Center (TEC) power plant two times. But during the upcoming legislative session, Tenaska plans to pressure lawmakers to approve SB 1653 and make us pay up to seven times today’s market price for electricity.
Tenaska can’t build and finance the plant without subsidies from Illinois electric consumers because it’s not needed and it’s uneconomic.
That’s why there is broad and diverse opposition to the TEC and SB 1653, including the following groups that have publicly stated their opposition:
• Illinois Manufacturers’ Association
• Illinois Retail Merchants Association
• Illinois Competitive Energy Association
• Illinois Chamber of Commerce
• Illinois Sierra Club
• Environment Illinois
• Over 200 other Illinois businesses and non-profits that operate in Illinois
To join these organizations in saying NO to paying seven times the market price for electricity, take a moment to let your legislator know that you oppose the Taylorville Energy Center and SB 1653.
You can also visit www.STOPCoalition.com to learn more.
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