* Who knew eliminating one job could save so much money?…

U.S. postal officials say they can save more than $48 million over the next 10 years by closing the postal station in the Stratton Office Building next to the Statehouse in Springfield.

However, the leader of the local postal workers union said the numbers appear to be inflated and he is launching an effort to keep the facility open. […]

“We only have one person that works there,” O’Connell said. “They used to have two people there. Now they have only one. I’ve put information requests in. They can’t explain where they are getting this figure.”

Postal service spokeswoman Valerie Welsch said she doesn’t know how that figure was computed.

“They don’t share that with me, but I’m sure that probably includes not only salaries, but benefits” Welsch said.

That’s a lot of benefits, man. Is that one worker provided with a full complement of butlers, maids and drivers, all with gold-plated pensions?

* From Postal math to Illinois Policy Institute math…

For most, EITC discourages work…

Because taxpayers lose out on the earned income tax credit as their income increases, there is incentive for workers to keep their income under the “phase-out” level. Specifically, the only time during which the government rewards the worker for earning more money is when the worker’s income is moving from zero to $12,750. The federal earned income tax credit only encourages work effort in the phase-in income range where the effective marginal tax rate is negative 40 percent. The taxpayer is, at best, indifferent during the plateau stage where the effective marginal tax rate is 0 percent. During the phase-out state – $41,000 for a single person and $46,000 for a married couple – the taxpayer is actually penalized with an effective marginal tax rate of 21 percent. Since the income range of the phase-out (21,800 to $46,000) is twice as large as the income range of the phase-in ($0 to $12,750), the federal earned income tax credit is spreading more work disincentive than incentives.

With a hat tip to a commenter, here’s an actual study of the real world which doesn’t rely solely on rigid ideological theories…

The authors use a unique data set of federal tax returns to analyze usage and participation patterns of the Earned Income Tax Credit (EITC) over the period 1989–2006. The authors find that most EITC recipients claimed the EITC for short periods, 61% for 1 or 2 years. Over the period examined, the EITC reached approximately 50 percent of the taxpayers with children. Finally, the authors find considerable income mobility among the EITC eligible population. Only 11 percent of those claiming the EITC in 1990 and in the third decile of income were in the same decile in 2003. They also find that 20 percent of EITC claimants claim the EITC for more than 5 years.

* Reform math…

With special interests handing out more than a million dollars in campaign contributions before a controversial vote, state legislators are starting to point out the elephant in the room and discussing campaign finance reform.

The issue has long been a tightrope walk, hoping to strike a balance in competitiveness, fair play and ensuring every citizen’s politics are appropriately represented.

Legislation allowing Commonwealth Edison and Ameren to make high-tech upgrades to aging state infrastructure that was passed recently came with a price tag of larger annual rate increases for customers. But to the chagrin of some voters and advocates for finance reform, groups that were in favor and in opposition to the bill collectively made about $1.05 million dollars in campaign donations in a non-election year. […]

[Illinois Campaign for Political Reform] Executive Director Brian Gladstein said for many there was at least a perception that big business had an impact over the way legislators voted; possible reforms might eliminate such a perception from even occurring.

“It brings it up, people asking these questions and creating distrust toward our politicians … If it’s true or not, to me, isn’t the point,” Gladstein said. “Without that smoking gun, where there’s an absolute connection between a contributor taking that money and taking back votes, we don’t know … but I do think there’s that perception. And we’re talking about the public good … I think there’s an important role for politicians to play, to say ‘We’re not going to take this money when there’s a public interest battle.’”

“If it’s true or not, to me, isn’t the point.”

Um, OK.

But unless we ban all campaign contributions and move to publicly financed campaigns (something I support, by the way), then we’ll have this problem on just about all legislation, because there are “public interest battles” on pretty much everything under the Dome.

* Not quite…

Officials tinkered with the state budget to come up with extra money that Gov. Pat Quinn can use to run seven state facilities he had planned to begin closing within days. They also shuffled money around to come up with more cash for substance abuse services, community mental health programs and even funerals for indigent people.

There are tradeoffs, however.

…Officials also decided there was surplus money in a special fund that helps support government pension systems; instead of giving that extra $95 million to the struggling pensions, they’re diverting it for other uses.

If the budget had been constructed properly in the first place, that $95 million would’ve never gone to the pension fund, in this case the State University Retirement System. It’s not a “diversion,” it’s a transfer that happens whenever that particular fund shows an excess.

Treasurer Dan Rutherford is actually responsible for this excess cash. His office reportedly notified the General Assembly that the surplus existed, but for whatever reason the House never included it in the budget. There’s no reason to give the pension funds more than they say is required when the rest of the budget is being cut.

* Daily Herald…

Lawmakers scheduled themselves another day in session for the express purpose of getting the massive tax-breaks package approved. But that left details of the final House proposal to be negotiated over Thanksgiving week, so the bill wasn’t filed until Sunday, leaving no time to line up support in the House before committee hearings Monday and that fateful extra session day on Tuesday. On that day, lawmakers once again went home after failing to get support for either of two bills, with the House and Senate disagreeing sharply on elements that have nothing to do with Sears.

So there you have it — a monumental tale of legislative foot dragging. The General Assembly says it’ll keep trying, but it has no more meetings scheduled this year.

We previously have urged lawmakers to separate Sears from the umbrella bill and consider tax breaks for the retailer on their own merits. We reiterate that position, and advise lawmakers to take up Sears tax breaks again with a greater sense of urgency. With a $400 million offer on the table, Ohio leaders certainly seem to have had no trouble assessing the value of having the retailer in their state.

It might already be too late. Sears, while seeking to reassure workers, says it’ll stick to its plan to decide by the end of this year whether to stay or go. In light of that, comments by Senate President John Cullerton and others that the matter will keep until the legislature returns in January seem cavalier.

So many problems with so few paragraphs. The Senate passed its bill with a super-majority, but that’s not even mentioned. Cullerton was referring to the fact that Sears and CME might take heart in the fact that the Senate has already passed a proposal, and since the tax cuts don’t take effect until July 1st of next year there’s plenty of time to get something done. Also, there will likely be another session day this month, and there are no session days scheduled in January.

Sometimes, legislative matters take time. This is obviously one of those times.

* When “recalibrate” means “all but abandon”…

Mayor Rahm Emanuel on Friday disclosed plans to “recalibrate” former Mayor Richard M. Daley’s 10-year plan to end homelessness by creating jobs and permanent housing, improving 311 service and reducing “youth homelessness” that impacts 16,000 Chicago Public School students.

The mayor’s 2012 budget already includes a seven percent boost in city funding for homeless services—to $8.56 million–and a new 20-bed shelter for 18-to-24-year-olds, Chicago’s second “youth shelter.”

But that’s nowhere near enough to accommodate a 98 percent increase since 2003 in the number of CPS students either “doubled-up” with other families or living on the streets, said Ed Shurna, executive director of the Chicago Coalition for the Homeless.

…Adding… Tribune…

Rep. Aaron Schock, R-Peoria, sends every graduating high school senior in his district a congratulatory letter and a “certificate of special congressional recognition,” along with a voter registration form. That would be an exceptionally nice gesture if he paid for it with his own money.

Since April, Schock has been chairman of the House Franking Commission, a six-member panel that reviews taxpayer-funded communications to make sure the privilege isn’t abused. Schock told Skiba (in writing) that the panel is “focused on transparency and giving the public more information regarding member communications,” but he refused to be interviewed and wouldn’t say how much those graduation wishes cost the taxpayers.

We guarantee that if incumbents had to spend their own money, as their challengers do, they’d be more judicious about how they communicate with the people in their districts. Cheaper options abound: Email. Facebook. Answering reporters’ questions.

Since when do challengers, except for wealthy challengers, pay for anything out of their own pockets?