Capitol Fax.com - Your Illinois News Radar » *** UPDATED x1 *** More budget deets leak
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 *** More budget deets leak

Tuesday, May 27, 2014

* I told subscribers about this earlier today

Although the so-called “middle of the road” budget plan may be more palatable to election-minded lawmakers, the new approach nearly guarantees Gov. Pat Quinn will have to navigate some serious financial potholes as he runs the state and plots his re-election chances against Republican Bruce Rauner.

The proposal, for example, won’t account for rising wages, higher health insurance bills and other unavoidable cost increases in the fiscal year beginning July 1, meaning even a flat budget in some state agencies could still seem like a significant cut — especially once the temporary tax hike expires at the end of the year.

“It’s still going to feel very draconian,” said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago. “The agencies will have their challenges.”

Without an increase to payroll and health insurance lines, the state may very well be forced to lay off workers.

Earlier this year, the Senate Democrats estimated that total “increased costs from legally binding personnel contracts” for next fiscal year would be $373 million.

*** UPDATE *** So much for that idea

A bid to fight obesity through taxing sweetened drinks lost its fizz Tuesday as a House committee rejected a plan that could have injected $600 million into the state treasury.

The measure, which failed by a 2-7 vote, would have charged a penny more per ounce on sweetened beverages, making a 2-liter bottle of soda cost about 67 cents more than its artificially sweetened, zero-calorie counterpart.

“I think the public policy initiative is good; I just think you’re really hitting the consumer with a substantial tax that, to me, is not consistent,” said Rep. David Harris, R-Arlington Heights, who voted against the legislation.

But state Rep. Robyn Gabel, D-Evanston, the sponsor of the sugar tax, said the difference in cost was necessary because it incentivized choosing the healthier drink.

- Posted by Rich Miller        

24 Comments
  1. - wordslinger - Tuesday, May 27, 14 @ 11:51 am:

    Here come the layoffs. That should be economics everyone can understand. Keep your head down.


  2. - Sir Reel - Tuesday, May 27, 14 @ 12:02 pm:

    I know Illinois has the lowest number of state employees per capita and personnel costs are a fraction of the State budget, but a one third billion dollar increase in personnel costs a year is not sustainable. Unfortunately any layoffs to downsize the State workforce won’t target the patronage positions that are not contributing.


  3. - Ghost - Tuesday, May 27, 14 @ 12:14 pm:

    Keep in mind this includes layoffs at revenue generating agencies, so they will need to reduce the budget more.

    Also since the pension system is kept afloat by using current worker contributions to help offset expenses, reductions in staff increase the burden on the State to cover this expense as well.


  4. - Norseman - Tuesday, May 27, 14 @ 12:22 pm:

    Nothing is sustainable if you act irresponsibly.


  5. - archimedes - Tuesday, May 27, 14 @ 12:22 pm:

    Sir Reel @ 12:02

    So - how is a $373 million increase in total personnel costs not sustainable? What % increase is that of total personnel costs? IS that a one time increase - or do costs increase to that extent each year?

    I get tired of throwing out absolutes like some cost is not sustainable.

    The General Revenue budget goes up about $1 billion a year (barring deliberate actions like not extending the income tax). This $373 million may not be a recurring increase into the future.

    The General Assembly has deliberately created an imbalanced financial system - blaming contractual personnel costs is a red herring.


  6. - Plutocrat03 - Tuesday, May 27, 14 @ 12:35 pm:

    Personel direct and indirect compensation tends to rise each year. e.g. raises and cost of insurance etc.

    It is most likely that the figure quoted is an annual increase.


  7. - Formerly Known As... - Tuesday, May 27, 14 @ 12:36 pm:

    This would be quite a disjointed approach to running things. Mr. Quinn already claims credit for ending the process of fund “sweeps” that Blago started in 2003 https://capitolfax.com/2011/10/28/supremes-to-ga-sweep-away-cogfas-advice-unclear-on-the-concept/ Supporting a funds “sweep” could be risky for him in that regard.

    As that story also notes, however, Mr. Quinn is open to “borrowing” from those funds. Doing so would be consistent with his prior comments and help avoid accusations of flip-flopping.

    Unfortunately, if we borrow money from those funds to cover our expenses now, the problem becomes doubly worse when we have to cover those same expenses next year while also repaying the money “borrowed” from those special funds.


  8. - Union Man - Tuesday, May 27, 14 @ 12:39 pm:

    I think we should pay all the members of the General Assembly, minimum wage as they provide minimal solutions to the states problems. If they were paid based on their merits, they’d be paying us to work there. Most are useless.


  9. - Formerly Known As... - Tuesday, May 27, 14 @ 12:42 pm:

    A shorter way of phrasing things is that I do not envy the Governor’s choice. Neither one is pretty for him should a funds sweep or fund borrowing wind up being “the plan”.

    He might be better off sticking to his guns publicly, advocating for the tax increase and then pleading he has no choice but to sign the bill if this is what the legislature sends him.


  10. - Anon - Tuesday, May 27, 14 @ 12:47 pm:

    == Unfortunately, if we borrow money from those funds to cover our expenses now, the problem becomes doubly worse when we have to cover those same expenses next year while also repaying the money “borrowed” from those special funds.==

    It’s a problem for the winner of the gubernatorial election because he is required to propose a balanced budget for FY 16.


  11. - Ghost - Tuesday, May 27, 14 @ 1:05 pm:

    On the soad thing, we dont need new taxes, we just need to staff up and enforce the taxes and fees we have.

    also we need to stop with the sin taxes! punishing people with taxes for behavior the government does not like is scary stuff. What if we tax all haircuts that are not a certain way, or if your busghes arent trimmed how we like you get a fee….

    this pavlovian use of taxes to direct behaviour is a horrible way to develop a tax code.


  12. - Arizona Bob - Tuesday, May 27, 14 @ 1:08 pm:

    =Earlier this year, the Senate Democrats estimated that total “increased costs from legally binding personnel contracts” for next fiscal year would be $373 million.=

    Seems like SOMEONE in Springfield did a lousy job of negotiating labor contracts if they gave these kinds of raises without funding available to do it.

    How does the GA square negotiating these raises when they didn’t have the money to pay for it?

    What am I saying? When does available funding EVER become a consideration in the GA and Guv appropriating spending? Just look at all the pork bills passed by the Dems a few weeks ago….


  13. - Just Observing - Tuesday, May 27, 14 @ 1:31 pm:

    === But state Rep. Robyn Gabel, D-Evanston, the sponsor of the sugar tax, said the difference in cost was necessary because it incentivized choosing the healthier drink. ===

    I beg differ over what is the “healthier” drink — for health purposes, I would take a naturally sweetened soda over a chemically sweetened soda any day.


  14. - Anon - Tuesday, May 27, 14 @ 1:45 pm:

    Ghost - I think the difference is that many “vices” create negative externalities for society, unlike a haircut or shrubbery. Much like with smoking, drinking soda has demonstrably negative health effects, the costs of which are borne by society in the form of higher health care expenses. A “soda tax” or other such “sin taxes” are attempts to internalize those externalities, so that the person choosing to indulge in the vice is bearing the cost, rather than society at large.


  15. - Jimbo - Tuesday, May 27, 14 @ 1:46 pm:

    AZ Bob, that contract was a major win for the state. The contract provided no raise in the first year, followed by a raise of 2% in July of the next two. Additionally, employees pay a percentage of healthcare cost rather than the fixed amount previously agreed upon. By all means though, Bob, continue to opine on things you know little about from your ivory tower in the desert.


  16. - Formerly Known As... - Tuesday, May 27, 14 @ 1:53 pm:

    == It’s a problem for the winner of the gubernatorial election because he is required to propose a balanced budget for FY 16. ==

    It certainly is.

    “We” is meant in terms of us as a state, rather than any one party.

    Regardless of who the Governor is, fund borrowing would mean that next year Illinois must come up with either more money or even deeper cuts than we already do today. We would still have to address the same shortfalls we face today, plus pay back the “borrowed” money from those funds. It would delay making a decision, but it would also exacerbate the problem for next year.


  17. - Formerly Known As... - Tuesday, May 27, 14 @ 1:56 pm:

    == What % increase is that of total personnel costs? ==

    That’s a good question. I do not recall seeing a specific statewide line item for this in any of the budget docs or anything from CGFA, GOMB, etc.

    You would have to go through every agency and manually tally the numbers, wouldn’t you? Does anyone know a simpler place to find that figure?


  18. - DuPage - Tuesday, May 27, 14 @ 2:09 pm:

    “Borrow from these funds?” The best one I have heard all day. They “borrowed” from the pension funds for many years. The only difference I see is the pensions have constitutional protection, these other funds do not.


  19. - Newbie - Tuesday, May 27, 14 @ 2:11 pm:

    Thank you, Just Observing. Not enough people are pointing out the “health” aspect of this. Diet soda is not the healthier choice. Artificial sweetener is likened to poison and banned in many countries. It causes kidney stones, Parkinsons, cancer, etc. How about taxing the diet soda and hope people learn self control and drink the real stuff in moderation. That would be the “healthier” choice.


  20. - Norseman - Tuesday, May 27, 14 @ 2:26 pm:

    === … demonstrably negative health effects, the costs of which are borne by society in the form of higher health care expenses. ===

    There are very few things in a grocery store where this rationale can’t be used to justify taxes under this criteria. The same can be said of behaviors or lack thereof. Maybe you should be taxed if you fail to exercise for the recommended time.

    If revenue is needed, raise taxes. Just don’t try and convince me this is a more justified tax than any other.


  21. - Both Sides Now - Tuesday, May 27, 14 @ 3:03 pm:

    There has been study after study indicating that artificially sweetened drinks are just as bad or worse for you than those sweetened with real sugar. Therefore the logic of taxing “unhealthy” drinks sweetened with something real rather than artificial is flawed.


  22. - low level - Tuesday, May 27, 14 @ 3:05 pm:

    AZ Bob - you are one of the biggest fools ever to post here.

    State workers have a contract that provided one of the smallest increases in wages of any state in the nation. What’s the average increase each year? $20-50? Big money, for sure.

    Thanks to fanatical opposition to taxes of any sort, now there will be layoffs, which will result in the downward spiral described above (more unemployment claims, less people in revenue collecting agencies, etc).

    This is why I call people like you CONservatives. You are con artists. You want services but don’t want to pay for them.
    When I started out 20 years ago I could have a legitimate discussion with friends in the Edgar Admin over taxes, workforce levels, appropriate role of government.

    Those were conservatives in the truest sense of the word. People like you are radical — so far to the right you think any spending is wasteful, that govt workers should work for free, but God help us if roads have cracks in them. Prisoners excaping because DoC budget was cut?!

    Yes…but at least we got our income taxes to go back to 2011 levels, right? Yay! More of my own money to keep!

    Unbelievable.

    (P.S. Sorry if you need to delete this or if I have violated the guidelines, Rich - but this guy is a perfect example of why a very reasonable solution and compromise cannot be found, IMO).


  23. - Capitol View - Tuesday, May 27, 14 @ 4:39 pm:

    so the state is now doing to itself what it has been dinog to community based providers for years — pretending that a stable budget is not a cut.

    But the state can always have bake sales for itself, which I have believed was the state response to community based human services underfunding — no, wait, Sen Trotter made that unworkable, too.


  24. - steve schnorf - Tuesday, May 27, 14 @ 10:54 pm:

    in the word of a (slightly altered) old country song,
    Here we go down that wrong road again
    Goin’ back where we’ve already been
    Even knowin’ where it will end
    Here we go down that wrong road again

    Read more: Crystal Gayle - Wrong Road Again Lyrics | MetroLyrics


Sorry, comments for this post are now closed.


* Illinois Policy Institute news service scores exclusive Rauner interview
* Dispute erupts over how many people can attend a meeting
* ILGOP unleashes robocalls in wake of Senate tax hike vote
* It's just a bill
* Question of the day
* It's not 4.95 percent, it's 5.81 percent for the rest of this year
* Far more heat than light
* Caption contest!
* *** UPDATED x1 *** "Eyes are back on to the Senate"?
* *** UPDATED x2 *** Mendoza warns of "breaking point"
* Can an oligarch be a progressive?
* *** UPDATED x2 - Kennedy responds - Pawar responds *** Pritzker, Biss respond to Senate budget votes
* In her dreams
* Support High-Performing Charter Schools
* "I’m a big believer in win-win"
* Unkind headlines
* Modernize the Vital Records Act - Support HB 1785
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............
<


Loading


* Morning Spin: Owners who leave Chicago properti.....
* BRIEFS - Herald & Review..
* Day after Senate budget vote, GOP tries to push.....
* Day after Senate budget vote, GOP tries to push.....


* EXCHANGE: Nursing students' real-life experiences are vital
* Family sues Naperville high school, police over teen's death
* Excavation for possible graves starts at future jail site
* Fastest growing US cities are in South; 4 of top 5 in Texas
* Chicago train service to install new camera system
* Chicago schools to borrow about $900 million
* Senate bills seek tougher Great Lakes pipeline standards
* Legislative hearing takes up Illinois child welfare agency
* Former pizzeria operator guilty of drug charges
* Grand jury indicts man in fatal shooting of judge

* Trump budget draws different Illinois reviews
* Bernard Schoenburg: Senate Democrats take action; situation still tense
* Illinois House begins review of Senate Democrats' budget plan
* Senate OKs bill allowing AT&T to shift resources from older technology
* Lawmakers hear about high caseloads, pressure at DCFS
* House Democrats propose college grant program
* Senate Dems approve $5.4B tax increase; budget fight continues
* Budget showdown: Senate Dems approve $5.4B tax increase
* Budget showdown: Senate Dems approve $5B tax increase
* Red-light cameras rake in millions for Chicago suburbs

* Replace Obamacare, yes. Gut Medicaid, no comment.
* Wanna buy a bulldozer? Here's a site for you.
* Massive Union Station project gets a developer
* United CEO: Dragging incident needs 'to be constant reminder'
* A new South Loop high school? CPS will look at it.


* New Volkswagen Passat holds its own against larger car class
* Kids with an adult can ride Metra for free all summer
* 14-year-old boy among 2 shot in Little Village
* Man, woman robbed near Obama’s Kenwood home
* 1 dead, 7 wounded in Chicago shootings Wednesday
* Chicago commuter train service to install new camera system
* Man wounded in Little Village shooting
* Man shot after argument in Lawndale
* 14-year-old boy shot in Austin
* Police: 16-year-old found boy shot to death in South Shore


* All aboard: Joliet Rocket steamin' into town
* Cheap out: Five fun things to do for free
* Quigley says Russia probe is 'in its infancy'
* Chicago in epicenter of charter school teacher contract disputes
* LINDA C. BLACK HOROSCOPES for 5/25/17
* 4 teen boys shot in 4 hours
* Working at Kraft Heinz means competition, cost-cutting, and for some, reward
* French Normandy home in Wilmette: $2M
* Morning Spin: Owners who leave Chicago properties vacant might have to pay more
* Police investigating robbery near Obama home


» Does New Neighborhood Watch Reduce Crime Or Create Resident-Cops?
» Illinois Issues: Should 10-Year-Old Kids Be Kept In Juvenile Detention?
» Chicago Public Schools Look To Borrow $900 Million
» United CEO To Investors: We'll Be More Focused On Customers
» Red-Light Cameras Rake In Millions For Chicago Suburbs
» Judge Delays Decision On How Quickly State Should Pay Medicaid
» How Would Trump’s Budget Affect Illinois?
» Illinois Democrats Pass Budget Proposal in Senate
» Illinois Senate Approves Tax Hike, $37B Budget Plan
» Chicago Teachers Give Schools Chief No Confidence Vote


* Sounding the Alarm: Unacceptable
* Trump budget draws different Illinois reviews
* Bernard Schoenburg: Senate Democrats take action; situation still tense
* Our View: Cohesion needs to be central part of YWCA block decisions
* Illinois House begins review of Senate Democrats' budget plan
* Our View: Cohesion needs to be central part of Y block decisions
* Senate OKs bill allowing AT&T to shift resources from older technology
* Lawmakers hear about high caseloads, pressure at DCFS
* Sounding the Alarm: Unacceptable
* Sounding the Alarm: Time to take action


* Destihl owner: 'My nature is to keep growing'
* Restaurant opens, kayak rentals added at Moraine View
* Enjoy the beautiful weather while you can. Thunderstorms are likely this weekend.
* Upcoming Services for May 25
* Senior Day at Central
* Restaurant open, kayak rentals added at Moraine View
* Police department openings leading to hirings
* Area Calendar 5/25/17
* Unit 5 eyes budget issues from lax state payments
* Rick's Six: Flooding, Muscatine survivor, dark glasses and Central renovations unveiled


* Employee who accused Kane County chairman of intimidation gets six-figure separation deal
* Population decline now reaching into suburbs
* Dawn Patrol: Bail money's source questioned; Antioch woman charged with prostitution
* Melting pot Manchester stresses unity after concert attack
* Workers clean up damage after Indiana cemetery vandalism

* Lester: Suburban lawmaker says he knew Com...
* Local Republicans, Democrats praise appoin...
* House GOP takes first steps to undo financ...
* Teacher raised in Yorkville running agains...
* Protesters continue die-in at US Rep. Rand...
* Jim Walz Will Challenge Randy Hultgren for...
* PHOTOS: Protesters stage die-in at Randy H...
* US Rep. Randy Hultgren's office the scene ...
* Second Democrat announces bid to unseat Hu...
* Sweet: Hultgren, Roskam, Kinzinger avoid b...

* Top Republicans chagrined over proposed cu......
* Dick Durbin statement on CBO's analysis of......
* Dick Durbin statement on CBO's analysis of......

* Congressional Budget Office: House bill to......

* The graphic novel Imagine Wanting Only This turns comics into poetry
* City Council ‘reluctantly’ approves measure to ease gun range restrictions, and other Chicago news
* Police Commanders' Public Meeting For 20th/24th District Residents
* St Boniface to Hold Traditional Field Mass To Honor The Fallen on Memorial Day
* “The Driver’s Side” – News From The Motorist’s Perspective
* Is government too political?
* Queer and proud in a cool protester outfit
* Jon Mueller and Mike Weis meditate with drums at the Zen Buddhist Temple-Chicago
* Hitting Left with the Klonsky Brothers #16. Globalization.
* Losers!


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Garmin VIRB 360 camera throws caution aside with $800 price, unbeatable specs, rugged design
* Gatwick Airport now has 2,000 beacons for indoor navigation
* Apple Design Chief Jony Ive Appointed Chancellor of London's Royal College of Art
* Even Verizon’s modest LG K8 V gets to run Android 7.0 Nougat before the G4 and V10
* Apple Transitions App Store Pricing to Local Currency in 9 Countries
* API Documentation Browser 'Dash' Returns to iOS App Store As a Free Download
* Xiaomi Mi Max 2 amazingly starts at reasonable $250 with a ginormous battery, screen and 4GB RAM

* Kopech, Giolito starting on Thursday
* Abreu, Leury homers not enough in finale
* Quintana: Location culprit for big-inning woes
* Abreu, Leury homers not enough in finale
* Sox welcome Detroit for doubleheader
* Abreu, Leury homers not enough in finale
* Shields pleased with arm after 'pen session


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller