19 Comments - Mouthy - Monday, Apr 23, 12 @ 11:46 am: I think the pension problem will be dealt with by the end of session in a drastic manner. It’s unfortunate for me,a state retiree, and those still employed by the state. I hope I’m wrong but I don’t think so. - Cincinnatus - Monday, Apr 23, 12 @ 12:30 pm: For the next two years, the GA should have a moratorium on all new legislation unless it measurably cuts spending. No new laws, no new unfunded mandates, no new projects, no road kill bills, nothing. Exception: Infrastructure maintenance projects. Then eliminate legislative scholarships and legislator’s pensions then take a couple of years off. - wordslinger - Monday, Apr 23, 12 @ 12:44 pm: –Sales tax collections are way up and income tax receipts are up. But federal receipts are down almost $2.1 billion, or 48.2 percent.– Don’t expect anything from the feds for a while, not with that crew Boehner has to ride herd on. http://www.washingtonpost.com/politics/book-gop-freshman-class-turned-into-a-monster-for-boehner-other-house-leaders/2012/04/22/gIQAV15PaT_story.html?hpid=z4 - Plutocrat03 - Monday, Apr 23, 12 @ 1:51 pm: I thought that income tax receipts were up less than the percentage of the income tax increase? It was bad Federal policy to bail out states without requiring them to show how they will move forward on their own resources in the future - Robert - Monday, Apr 23, 12 @ 1:56 pm: I wonder if there’d be a way to halt any of the capital budget projects http://www.state.il.us/budget/FY2012/FY12_Capital_Budget.pdf , and instead use some of that money to pay down old bills. Often the capital budget projects come with federal matching funds, so you wouldn’t want to cancel those projects. But $788 million for public university capital projects - let their alumni donors open up a new building if it is justified. - Robert - Monday, Apr 23, 12 @ 2:00 pm: ==I thought that income tax receipts were up less than the percentage of the income tax increase?== From comptroller’s numbers that Rich linked to, income tax receipts Jul-Mar are up $3.7 Billion, +50% from prior Jul-Mar. But $2.1 Billion less in federal support eats up much of the income tax hike. - Cincinnatus - Monday, Apr 23, 12 @ 2:05 pm: “Often the capital budget projects come with federal matching funds, so you wouldn’t want to cancel those projects.” One may possibly want to cancel the project anyway. The fact that the Feds may be giving you one buck for every two you spend, means that YOU still spend two buck. This is the same argument used to say we cannot cut Medicaid and other Federally matched programs. - Yellow Dog Democrat - Monday, Apr 23, 12 @ 2:10 pm: === the GA should have a moratorium on all new legislation unless it measurably cuts spending. No new laws, no new unfunded mandates, no new projects, no road kill bills, nothing. Exception: Infrastructure maintenance projects. === Ah, yes. So we’re going to turn away children from doctor’s offices so that we can fill potholes. Best of luck with that approach. Here’s a tip you ought to learn from every Fortune 500 company. In one way or another, they all resoundingly agree that: “Our People are our most important Asset.” Illinois should learn from the private sector and make investing in its people its top priority. It is the path to job creation and a strong and prosperous future for all Illinoisans. - Robert - Monday, Apr 23, 12 @ 2:41 pm: ==The fact that the Feds may be giving you one buck for every two you spend, means that YOU still spend two buck. This is the same argument used to say we cannot cut Medicaid and other Federally matched programs.== And it probably is closer to say that for every $2 you spend, the Feds give you $0.95, once you subtract out the share of Federal tax revenue that came from Illinois taxpayers to begin with. But I’m still a sucker for matching funds, believing, especially in the Medicaid example, recipients of aid are spending their entire incomes, most in Illinois. So, extending our example, $2 from an Illinois taxpayer becomes, thanks to federal matching funds, $2.95 to a recipient, who then spends most/all of that $2.95 here in Illinois. I’d be all in favor of a moratorium on any new spending without a federal match. - Cincinnatus - Monday, Apr 23, 12 @ 2:56 pm: “Ah, yes. So we’re going to turn away children from doctor’s offices so that we can fill potholes.” Who said that? NEW spending. Freeze everything at current levels, or better yet at 2008 levels. I don’t remember anyone dying in the streets because of the lack of funding, do you? Investing in people. Another way to say spend money. Private companies invest in their people to create wealth (profits). Government is incapable of creating wealth, and at best can establish the infrastructure on which the private sector can create wealth. Actually, YDD, you an I may be closer to being on the same page than you think. The overspending on so many projects and well-intentioned (or more often half-baked) ideas has robbed the State from spending money on what I consider vital priorities, providing an infrastructure, a safety net for the most unfortunate citizens, and educating our young. The problem boils down to that of prioritizing spending. For too many years, Illinois has spent on EVERYTHING. When was the last time we eliminated a program, or just said no… - Cincinnatus - Monday, Apr 23, 12 @ 3:00 pm: Robert, Bike paths are funded using Federal gas taxes on a matching basis. Is it worth the money to build a bike path along a river that is not actually helping people commute to and from work? Just one insignificant example. We get Federal matching money for the bullet train. Worth a billion in bonds in this economic environment? - Robert - Monday, Apr 23, 12 @ 3:21 pm: @Cincinnatus, I do see where you are going with this line of questioning and I’ll go with you anyway. I think you and I would agree that the feds shouldn’t be doing either project. So I still think I would say yes to the bike path from Illinois’ perspective. Continuing our example, essentially we get $2.95 for every $2.00 we put in. The companies and workers who clear the bike paths? Most likely Illinois folks. So yes, definitely yes to that spending, simply because of the return on investment. $2 in Illinois taxpayer dollars out, $2.95 back in (even assuming no benefit from tourism/keeping city residents happy). Bullet train - not so sure. Depends how much of the money goes to Illinois employers and employees and I’m not certain of that. Plus I’m concerned that it would help Missou’s economy at the expense of central Illinois’ economy. - Sir Reel - Monday, Apr 23, 12 @ 3:29 pm: Federal funding for bike paths is 80%, or $4 for every $1 in State funds. Federally-funded bike paths must have a transportation value, so some non-motorized transportation is a given. Finally, bike paths encourage physical activity, which discourages obesity, diabetes, and other medical conditions that are sucking up public funds. I’d say bike paths are a good deal. Bullet trains, the jury’s still out. - Oz - Monday, Apr 23, 12 @ 3:36 pm: Yup of course sales tax receipts are up. Did everyone forget about the out of state purchases tax amnesty program? I don’t think it’s like most Illinoisan’s are rolling in the doe and going on shopping sprees. Also why shouldn’t income tax be up? The State raised the personal State income tax by 66% thereby stealing the entire Social Security payroll tax break Washington gave everyone. It’s a discrete robbing of the Social Security funds and now the public pensions are next. What a surprise! As they play the victims and the hero’s at the same time telling us how they are trying to save us all when it was their false promises, mismanagement, and poor judgement that got us here. - Yellow Dog Democrat - Monday, Apr 23, 12 @ 4:35 pm: @Cincinnatus- I think you and I are VERY close. In fact, most of the regular posters on capfax are realists who represent the policy middle. That said, freezing spending for all programs at current levels is a bad idea for two reasons. 1) It freezes BAD programs in to place, and guarantees funding for underperforming programs and providers. 2) It prevents expanding programs or creating new ones that prevent much bigger and more expensive problems down the road. When Mitch Daniels instituted performance-based budgeting, he eliminated grants to local libraries because they achieved no measurable outcome and were not tied to any state objective. In the same budget, he doubled what Indiana was spending on child abuse investigations because it prevents very big problems, including health care, special education and crime costs, down the road. The solution isnt spending less or spending more, its spending only what is necessary as smartly as possible. - Plutocrat03 - Monday, Apr 23, 12 @ 4:39 pm: Jul-Mar are up $3.7 Billion, +50% from prior Jul-Mar. Didn’t we raise the taxes 66.666%? if that is true, we are moving backwards. - Rich Miller - Monday, Apr 23, 12 @ 4:40 pm: Plutocrat03, your math is faulty. Tax hike happened in the middle of that first Jul-Mar. - Robert - Monday, Apr 23, 12 @ 4:42 pm: ==Federal funding for bike paths is 80%, or $4 for every $1 in State funds.== Wow $4 for every $1 in state funds! Yes, big thumbs up for bike paths from Illinois’ perspective. $2 in, probably $9.80 back after adjusting for share of federal dollars that came from Illinois taxpayers. That’s a heck of an ROI. - wordslinger - Monday, Apr 23, 12 @ 6:37 pm: ==The fact that the Feds may be giving you one buck for every two you spend, means that YOU still spend two buck. This is the same argument used to say we cannot cut Medicaid and other Federally matched programs.== Cincy, you’re missing the point. Illinois, as one of the wealthiest states in the wealthiest country in the history of planet Earth, pays more. That’s why as a capitalistic democracy we’re an economic, social, cultural and military giant, while China, India, Indonesia, Singapore, Brazil and all the other usual suspects flounce around as they discover you can’t escape the dire consequences of unrealized expectations and curtailed freedoms. We’ll be here, still kicking ass, when they figure it out. Sorry, comments for this post are now closed.